CONSUMER PRODUCTS LTD.

SUBMITTED TO: DR. DARSHANA DAVE

FROM:- NIKHIL DAXINI

ROLL NO:- 18075
DIVISION:- B
G.H. PATEL INSTITUTE OF BUSINESS MANAGEMENT
INTRODUCTION:
The case here discusses about a company named CPL a public limited company which was
set up in the year 1940 and was one of the leading marketing organization of the country. It
manufactured and marketed all kind of consumer’s product of household use, though
washing powder was the product which attracted major profit. It manufactured washing
powder as well as washing soaps, and had distribution in both the rural and urban area, it
was observed that people of rural contributed more towards washing soaps, i.e. three-
fourth of the washing soaps market. The main washing product of the company was
“DAZZLE” which contributed nearly one-third of the profit made by washing product group.

Now along with dazzle, there were three other brands in the market namely BRIGHT,
WHITE, SPARK. Dazzle being the superior quality of product among all, enjoyed a market
share of 80%. Bright and white being at par enjoyed the market share of 10 and 7%
respectively. Spark being the inferior all had a market share of only 3%.

Expect spark every other brand spends heavily on theme advertising, and on some
consumer promotion, which was mainly gifts packs, consisting of free product from the
same brand along with the large pack of washing powder, which cost around Rs. 300 per ton
as the cost of the gift.

Now spark changing it strategy launched spark in two carton pack identical in weight, size,
and price to the large and small cartons of the other three brand. Large pack was supported
by extremely heavy promotion. It offered a free bucket, on exchanging 6 empty packet of
spark which had gift coupons imprinted on it with the shop keeper, while it which cost the
company Rs. 6 due to bulk buying.

As the offer was very generous more people started to shift t0 spark and within a span of
just two months the market share rose from 10% to 25%. While that of dazzle dropped
down from 80% to 68%. Creating a tensed situation in the company.

The marketing director, controller, sales general manager, promotions manager, product
manager of CPL conducts a meeting thinking about every alternative available to win back
its position in the market.
OBJETIVES:
1. Short- term Objectives

a. Increasing the sales volume.

b. Maintaining the brands image.
c. To get back the clients.

2. Long-term Objectives

a. To win back it market shares.

b. To develop such a strategy that doesn’t let the market share drop
down.
c. To cut down the cost of production
d. To develop better marketing statergies.
e. To increase the budget of advertising.

PROBLEMS:
1. Budget problem – as spark quality was inferior it adjusted the cost of its
production and advertisement cost due to which the its profit increased
despite of heavy promotions, while this is not the case with dazzle.
2. Cost of creation of Dazzle is more.
3. Washing powder was mainly limited to urban area as rural area people
mostly preferred washing soaps .

CONSTRAINTS:
1. Operating expense cannot be lessened.
2. Quality cannot be compromised with in order to increase
the production.
3. Mindset of the people that is to get attract easily toward any
free product.
CRITERIA :
1. Time – as it is an alarming situation decision should be
taken as quick as possible.
2. Quality – should be maintained to maintain the brand
picture.
3. Cost of production should be reduced.

ALTERNATIVES:

1. Look for distributers in little and provincial regions.

2. Strong advertisement

3. Offering more or less gifts, by increasing budgets for promotion,

4. Introduce a second brand of same quality as that of spark.

5. Increase deals by reduction quantity of dazzle.

6. Offering trail package to the consumer for better understanding of

difference between the quality of both the product.

Answer to the questions:

Ans 1) No, we can clearly see here that consumer is nowhere conscious about the quality.
Free gift is all that attracted them, thus in order for dazzle to again win back over the market
it should increase the promotion cost, offer exciting offer as against spark or may also offer
some discount on MRP.
APPENDIX: 1
TOTAL TURNOVER AND CONTRIBUTION TO PROFIT

TOTAL TURNOVER(1966) RS. 500million PROFIT

PERCENTAGE
Group A turnover RS. 50million 7%
Group B turnover RS. 100million 13%
Washing products turnover RS. 350million 80%
▪ As per the given information Group-A total turnover 50million
as per the given information Group-A 7% profit.
50*7/100
= 3.5 million
▪ Group- B 13 million
▪ Washing products turnover 280 million

As per the above calculation washing product turnover is highest .

APPENDIX: 2
PACK SIZES & PRICES OF VARIOUS BRANDS
PACK SIZE PACK WEIGHT CONSUMER
PRICE
Dazzle/Bright/White Large 700 g. RS. 4.50
Medium 400 g. RS. 3.00
Small 200 g. RS. 1.75
SPARK Bulk 1 kg. RS. 6.25
Bulk 2 kg. RS. 12.30

▪ If DAZZLE introduces new products of 1kg & 2kg in the market, it would
be available for the customers at RS. 6.43* which is just costly by RS.
0.18 from SPARK . Due to this the customer would be able to purchase a
better product at almost same price.
(*4.50*1000g/700g = 6.43 Rs. ) .

▪ Advertisement palys a major impact over the mindset of people, if

anything is hammered 10 times into the mind of people it is liking to
catch the attention of people once. So there is a fair chances of people
getting back to dazzle if the theme advertisement is increased.