Karamchand appliances

Karamchand Appliances

By: Sriparnika BatraPrerna Sanotra

Arnav Jimmy Narang

The company Karamchand Appliances limited has hired you for consultancy for their mosquito repellant brand. Find out all the history / background of their brand , its STP and 4Ps. Also analyze the competitors, Identify the stage of PLC at which the brand is currently and suggest a market strategy accordingly

Traditional Methods

• Burning of incense sticks.• Fumigation using Neem leaves.

• Use of mosquito nets.

Current Methods

• Creams• Coils•Mats• Sprays

• Vaporizers

Introduction

Karamchand Appliances

Background

Background• Arya brothers – Maharashtra based family.

• Decided to get the technology from Japan and planned to launch the vaporizers.

• Inspired by the Vaporizer being manufactured by Earth.• Agreement between Earth and KAPL.

• Development of certain key components started at Baddi(HP) in 1989.

Background (Cont..)• Hired a research agency to help them to come up with the

brand name for their product.• Recommendations – Freedom , Choo Manta.

• ALL OUT was finalized.• High quality packaging from Hyderabad , Andhra Pradesh.

• Finally launched in Mumbai in 1990.

• SC Johnson acquired ALL OUT from KAPL in 2000

Current Situation

• According to the July 2011 market share figures by Nielsen, GoodKnight has overtaken AllOut in liquid vaporizers to

become the leader in this segment of mosquito repellents, when compared to the same period last year.

• Godrej's share in July 2011 was a little over 43%, while that of SCJ India is just about 42%. This is the first time Godrej has

overtaken SCJ in liquid vaporizers, a segment which contributes around 25% to the roughly Rs 3,000 crore

household insecticides market.• AllOut, a brand which SCJ India acquired from Karamchand

Appliances in early 2000s, has the first mover advantage in liquid vaporizers. It has had a clear lead over GoodKnight ever

since its launch.

Competitors

• GoodKnight • Mortien • MAXO• Casper• Tortoise

Substitutes• Baygon spray.

• Mortien Coils, mats.• Mosquitoes net.

• Cream.

Market Shares (As per July2011)

All Out – 42% Godrej GoodKnight – 43%

In vaporizers

4 P’s

Product• First of its kind/ New variant

• Quality/ Technologically sound • Transition – Cord to plug• High Quality Packaging

Price• Price was initially high to recover cost of initial investment

• Flexible pricing strategy• All Out’s 45-night pack at Rs.54 in response to

Good knight’s 60-night refill pack RS.63• Premium Pricing, creating an impression of a premier product

Place• Behind its competitors in terms of accessibility

The only P in which KAPL was behind its major competitors was “Place”.

• GSLL and R&C were multi-product giants whereas KAPL was a newcomer with a single product. Hence the former companies

(before launching vaporizers) already had well established distribution networks.

• Now

Promotion• New advertising strategy

• Offering community outreach and disease prevention programs.

• This monsoon, the frog will not croak, nor will it eat mosquitoes which it has been doing non-stop over the last 15

years. • The frog is out of the business and out of the advertisement of

All Out for the first time since the mosquito repellant brand aired its first TV commercial in 1996.

Segmentation• The urban and the rural areas

• In consideration to Mats and Coils as well in rural areas

Targeting• Targeted the customers who were already using Mats and coils

Positioning

• Repositioning itself. It has put to rest its most powerful brand element and mascot – the

animated frog - and changed its tagline from 'Maccharon Ka Yamraaj' to 'Maccharon Pe Vaar,

Surakshit Aapka Parivaar.'

Porter’s 5 forces model

PRODUCT LIFE CYCLE

PLC – All Out

Introduction(Development and introduction of All Out)

Growth (Establishing a new market segment)

Maturity(Leader in Mosquito Repellant Market)

Decline(Good night bites All out in July 2011)

What could be the new strategies implemented in order to gain its old market position?

Thank You