SPICK AND SPAN LTD.

LI CHI SHOE POLISH

70 to 80 % Market Share with growth more than the industry In the market for 40 years Retailer Margin at 12 % of sales Excellent Reach through the distribution 48th brand in a list of 100 brands

DISTRIBUTION
High

Through Bata and other shoe retail

brand outlet turnover grocery stores and small stores visit big stores once a week and small once a month

Distributors

Average stores sell: 2 to 4 dozen and

small ones sell 1 to 2 dozen a month

SHOE POLISH
SHOE POLISH MARKET
growth

Shoe Polish Market

Cuckoo 7% Others 18%

Rs.50 Crores in 1993 with 10% Low Involvement Product Women were less involved than
men

Includes Shoe polish and

accessories to take care of the shoe

[CATEGO RY NAME] [PERCEN TAGE]

PROBLEM IDENTIFICATION
Cuckoo had gained 3 - 4% market share within a short
span of time at the expense of Li Chi

Below the line promotions undertaken by Cuckoo ate

into the sales of Li Chi

Cuckoo was based in South India where Li Chi as a

brand was poorly rated

Consumers could not perceive the difference in quality

ALTERNATIVES

Increase

Below the line and Trade promotion

Reduce the price of Shoe White Brand Extension Leveraging on the parent company

BELOW THE LINE AND TRADE PROMOTION Trade Promotion: To increase the shelf
incentives to dealers

space, higher

Discounts to dealers Incentives, gifts and schemes, etc. As a market leader, disturbing the current incentive system

Below the line Promotion will increase brand awareness

Make cobblers wear t-shirts bearing the brand name of
Li Chi in busy areas like railway stations
and visibility

is not required

REDUCE THE PRICE OF SHOE WHITE

and provided support to its other products

Shoe White is the product from Cuckoo that did well One of the reasons for its success could be its lower
price as compared to Li Chi

Lowering the price at par or below Cuckoo could help

regain the lost market share

However reducing the price might induce a price war

which eventually would not be good for the market and its players

BRAND EXTENSION
fast paced

1992-93: Period of liberalization changing lifestyles slow to

Instant

Shoe Polish was well poised to capitalize on this opportunity promote this product

Li Chi should hence leverage on the long established brand to Launch

Shoe Wax Polish: Dual benefits of convenience and protection of leather that wax polish provided on association with Bata to launch shoe care accessories like shoe conditioners and brushes

Leverage

LEVERAGING ON THE PARENT COMPANY

Spic and Span Ltd. owned well established brand

names which were market leaders in their product categories

Piggybacking on the other brands to increase the

brand awareness

Packaging: From the makers of XYZ (liquid soap,

the most popular brand of Spic and Span)

RECOMMENDATIONS
Opt for Below the line promotions instead of Trade
promotions

Leverage

the established Li Chi brand to promote Instant shoe polish and launch Shoe wax polish

Leverage

Batas accessories to promote Li Chi

brand

to

market

shoe

care

Use a well established brand of parent company brand

THANK YOU