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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