Background of the Company
Rickitt Benckiser PLC is a multinational company which produces Helth, Hygiene & Home Products. The company for its product Cherry blossom was formed in 1900 in collaboration with Rickitt & Colman PLC & Benckiser NV. The Company was able to run operations in 60 Countries with sales in 180 Countries. It was the unique category leader for the market during the beginning of Shoe care products with no Competition until 1990. The company has been producing house hold & personal products which are categorized in to Pest Control, Shoe Care, Antiseptics, Lavatory Care, Floor Care, Fabric Care & the Bands including Dettol, Mortein, Harpic, Disprin, Robin. The history of Cherry Blossom as a Brand for hundred years has been the Market leader with a Market share of 75%. Its Market Share was reduced after the entering of the Brand “KIWI” a product of Sara Lee one of the Core brands of India. With the Heavy involvement of KIWI brand in Shoe care market during 2002, the market share of Cherry Blossom has decreased up to 61% which is a 12% loss of Market. Cherry was able to increase its market share by 4% being the market leader with a turnover of Rs. 91Cores.
Company Market share is more than 50% on Cherry Blossom shoe foolish 100 years Brand equity
The company operation s in 60 countries
The company sales in 180 countries
The company net revenue is $5.5 billion on Cherry Blossom
Other brands of the company, which are in No.1 or 2 position in the respective product categories, they are Dettol, Mortain, Harpic, Easy off Bang, Vanish Lyzol, Veet, Disprin, Robin Powder, Collin Glass Cleaner Common Distribution Channel in the market which has wide and deep reach in the market Well-structured company sales force
Company entire product portfolio is more than 150 SKUs
The company has Trade channel and shoe shops channel for the distribution In Distribution Trade Channel they have over 1 million outlets across length and breadth of the country
Poor domination on Distribution channel of Shoe shops channel Cherry Blossom has not applied media for their consumer promotion campaign till year 2002 They have not done the market study till year 2003
They have not used creative minded young analysts to do even a primary research of market segments Poor attention on rural market
Poor Performing Staff
Untapped rural market and global expansion
Tie-up with show companies, fashion houses and corporates & schools Bringing new products as per changing shoe care segment
Introducing different Shoe types & Shoe Care products.
Substitutes for leather shoes
New entrant of categorized product. Eg Sport Shoes
Availability of cheap Shoe care products in market
Customer doesn’t shift to different product formats
Heavy Media Campaigns for KIWI product.
Level of Competition – Brand Competition
For past years Cherry haven’t carried any kind of promotions & was able to be the Market Leader with 75% of Market Share. After KIWI entering the market KIWI launched its media campaign & pitches its Brand in the Market. This affected the cherry brand on its market share. Other than the Market 2nd KIWI there were few regional brands called ROBIN & BILLI. Level of Competition – Industry
Sara Lee Core brand has become one of the biggest threat & Competitor for the RB brand Cherry Blossom. Even KIWI was formed 100 years back they were able to pitch the Brand in the market. Also the other regional players like ROBIN, BILLI & many others. In 1990 the major difference took place in Consumer preference & habits while the Market was changed to more over Fashionable & different leisure acceptance on casual Occasions suit wears & office wear. Also Sara Lee product made a significant growth on its sales revenue of Rs.50 Cores. The innovative products of Sara Lee designated as the South Asia Hub for innovation. Level of Competition –...
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