Marketing Strategies on Case Study
CASE STUDY RAVI SOAP FACTORY COMPANY OVERVIEW PROBLEM DEFINITION: DECLINING SALES VOLUME The company is currently experiencing declining sales volume due to a stiff competition in the market. Customers are switching brands based on television commercials. Since the arrival of cable television in the terai region in 1997 ,the companies like HLL , Nirma ,P&G,Tomco started advertising their products heavily. The products include both detergent powder and detergent cake. HLL was focusing on “ SURF” detergent powder and “WHEEL” detergent cake. TOMCO was promoting economy detergent powder called “OK”. P & G was test marketing Arial microsystem. Nirma was also doing well in detergent cake and detergent powder segment. DECREASING PROFIT Decreasing sales volume and lower product demand has lead to an overall decrease in net profits. Moreover , the cost of underutilization of plant capacity has eaten into the space of total cost per unit of soap produced. Therefore ,the company is not being able to enjoy the benefit of lower cost of production than its competitors. This has also lead to the consumers shifting based from their products. Thus , decreasing sales and overall profits. INABILITY TO OPERATE AT FULL CAPACITY Due to decrease in the market demand of their product ,the company is not being able to operate its plant at full capacity. The company is thus at present manufacturing soap cakes below the full capacity level. This has lead to the under utilization of resources in the company. Thus the company is occurring huge losses. INCREASE IN THE NUMBER OF COMPETITORS Terai region is becoming attractive prime market for many FMCG companies to sell their products. The advent of cable television in the region has increased consumer awareness. Booming Indian economy had led to the growth of per capita income in the country as well. Modernization and technological advancements have not left the terai region untouched. Increased purchasing power