Gillete
INDIA LTD.
(INDIAN SHAVING PRODUCTS LIMITED-ISPL)
SUBMITTED BY:
GROUP B-6
PALASH AGARWAL (11P095) ANAND KUMAR (12P127) ANKUSH SINGLA (12P129) ASHWIN BHOOMI (12P131) ADITYA CHADHA (12P132)
INDIAN SHAVING BLADE MARKET
• WORLD’S LARGEST MARKET BY VOLUME: 2.4 BILLION BLADES • SMALL MARKET BY VALUE: RS. 250 CRORES AT RETAIL PRICES • SHAVING MALE POPULATION RANGE IS 15-20 CRORES • AT A LOWER END OF TECHNOLOGY CARBON STEEL BLADES MAKING THE BULK OF THE MARKET STAINLESS STEEL BLADES ARE PRICED HIGHER BUT GAVE 1.5 TIMES THE NUMBER OF SHAVES; SMOOTHER AND CLOSER • TWIN BLADES INTRODUCED BY WILTECH AND MALHOTRAS ACCOUNTED FOR LESS THAN 2% OF TOTAL MARKET
COMPETITORS
ISPL
Shaving Blade Industry
Malhotras
Wiltech
ISPL’S DISTRIBUTION CHANNEL
• WORKED OUT A DISTRIBUTION AGREEMENT WITH LIPTON INDIA LTD. MOST INTENSIVE DISTRIBUTION REACH NETWORK OF STOCKISTS COVERING ENTIRE COUNTRY STABLE SALES FORCE • LIPTON TO DISTRIBUTE ISPL PRODUCTS AT A 5% COMMISSION TO ITSELF • LIPTON’S STOCKISTS GOT A MARGIN OF 7% ON ISPL PRODUCTS AS AGAINST 5% ON LIPTON PRODUCTS • SITUATION AFTER 2 YEARS CAPTURED ONLY 3% OF TOTAL MARKET AND WORSENING FINANCIAL POSITION CUSTOMER SURVEYS REVEALED NO SERIOUS FLAW AGAINST PRODUCT, PRICE OR POSITIONING IMPLYING THAT THERE WERE PROBLEMS WITH THE DISTRIBUTION CHANNELS • ISPL NEEDS TO TAKE DISTRIBUTION OF ITS PRODUCTS UNDER ITS OWN CHARGE
ISSUES
• ANY NEW DECISION REGARDING DISTRIBUTION CHANNELS INVOLVED HIGH RISK • VARIOUS ALTERNATIVES FOR SETTING UP A NEW DISTRIBUTION CHANNEL • RESOURCES REQUIRED BY THE COMPANY AND COST IMPLICATIONS OF VARIOUS DISTRIBUTION ALTERNATIVES • LACK OF PROPER AND RELIABLE DATA REGARDING ACTUAL RETAIL COVERAGE BEING PROVIDED BY LIPTON CHANNEL
MARKET SHARE IS LESS THAN 3% - NO PROBLEM IN PRODUCT , PRICING , POSITIONING
- PROBLEM IN DISTRIBUTION THROUGH LIPTON’S CHANNEL
OBJECTIVE
DECISION WHETHER TO CONTINUE WITH EXISTING CHANNEL
OR DESIGN OWN CHANNEL
SHORT TERM
(INDIAN SHAVING PRODUCTS LIMITED-ISPL)
SUBMITTED BY:
GROUP B-6
PALASH AGARWAL (11P095) ANAND KUMAR (12P127) ANKUSH SINGLA (12P129) ASHWIN BHOOMI (12P131) ADITYA CHADHA (12P132)
INDIAN SHAVING BLADE MARKET
• WORLD’S LARGEST MARKET BY VOLUME: 2.4 BILLION BLADES • SMALL MARKET BY VALUE: RS. 250 CRORES AT RETAIL PRICES • SHAVING MALE POPULATION RANGE IS 15-20 CRORES • AT A LOWER END OF TECHNOLOGY CARBON STEEL BLADES MAKING THE BULK OF THE MARKET STAINLESS STEEL BLADES ARE PRICED HIGHER BUT GAVE 1.5 TIMES THE NUMBER OF SHAVES; SMOOTHER AND CLOSER • TWIN BLADES INTRODUCED BY WILTECH AND MALHOTRAS ACCOUNTED FOR LESS THAN 2% OF TOTAL MARKET
COMPETITORS
ISPL
Shaving Blade Industry
Malhotras
Wiltech
ISPL’S DISTRIBUTION CHANNEL
• WORKED OUT A DISTRIBUTION AGREEMENT WITH LIPTON INDIA LTD. MOST INTENSIVE DISTRIBUTION REACH NETWORK OF STOCKISTS COVERING ENTIRE COUNTRY STABLE SALES FORCE • LIPTON TO DISTRIBUTE ISPL PRODUCTS AT A 5% COMMISSION TO ITSELF • LIPTON’S STOCKISTS GOT A MARGIN OF 7% ON ISPL PRODUCTS AS AGAINST 5% ON LIPTON PRODUCTS • SITUATION AFTER 2 YEARS CAPTURED ONLY 3% OF TOTAL MARKET AND WORSENING FINANCIAL POSITION CUSTOMER SURVEYS REVEALED NO SERIOUS FLAW AGAINST PRODUCT, PRICE OR POSITIONING IMPLYING THAT THERE WERE PROBLEMS WITH THE DISTRIBUTION CHANNELS • ISPL NEEDS TO TAKE DISTRIBUTION OF ITS PRODUCTS UNDER ITS OWN CHARGE
ISSUES
• ANY NEW DECISION REGARDING DISTRIBUTION CHANNELS INVOLVED HIGH RISK • VARIOUS ALTERNATIVES FOR SETTING UP A NEW DISTRIBUTION CHANNEL • RESOURCES REQUIRED BY THE COMPANY AND COST IMPLICATIONS OF VARIOUS DISTRIBUTION ALTERNATIVES • LACK OF PROPER AND RELIABLE DATA REGARDING ACTUAL RETAIL COVERAGE BEING PROVIDED BY LIPTON CHANNEL
MARKET SHARE IS LESS THAN 3% - NO PROBLEM IN PRODUCT , PRICING , POSITIONING
- PROBLEM IN DISTRIBUTION THROUGH LIPTON’S CHANNEL
OBJECTIVE
DECISION WHETHER TO CONTINUE WITH EXISTING CHANNEL
OR DESIGN OWN CHANNEL
SHORT TERM