Ujala Case New

7/31/2019 Ujala Case New

http://slidepdf.com/reader/full/ujala-case-new 1/14

UJALA

The Supreme Whitener



Ujala entered the market in 1983 marketed by Jyothi Laboratories.

It introduced a different variant in whitener segment, violet colored liquid that

dissolved easily in water.

The main competitor was Robin blue (market leader during that time).

By the end of 2002, it emerged as a market leader in whitener segment of

Indian fabric care industry (market share was more than 60% by the end of 2001).

It created a strong rural distribution network across the country with 4000

distributors and 2.5 million retailers.

Jyothi spent vigorously on promotional activities and their campaign was very

successful.

They have now diversified into other segments of FMCG sector.



Liquid variant – better product Strong distribution network in

rural area

Large market – Indian psychology

B2B transactions with hotels,railways, airlines, etc.

Competition from existing

players Imitators

Technological development can

make product usage obsolete

SWOT ANALYSIS



QUESTION 1:

Analyze the conditions prevailing in the Indian fabricwhitener market when Jyothi laboratories entered the

whitener segment. Focus separately on each element of the

marketing mix, explain how and why the company’s moves

helped Ujala become the market leader?



Product Description – It’s a product which compliments the use of detergents by making white clothes

brighter.

Its basically is in blue powdered form.

Key players

Robin Blue

Market leader, Marketed by R & C, first player in organized sector

Used by limited number of brand conscious urban consumers

No defense strategies – no major marketing efforts , no significant development in

product.

Ranipal – Confined to limited geographical area.

Other small manufactures – Selling at very low prices.

None of the players tried to fill the gap between customer needs and the product, through

product innovation or product development

PREVAILING MARKET



PRODUCTWHITENER – violet colored liquid

Serving customer needs in a better

way :

•It was easily and uniformly soluble in

water

• Wastage was reduced

PRICEUjala was priced higher than robin

•At 8 for 75 ml, whereas robin was

priced at 7 for the same quantity

•Marginal utility of money was higher

compared to Robin Blue

PROMOTIONAdvertisement over FM radio, state-

owned AIR and TVRegionalized the content of

advertisement

Used the jingle “ aya naya ujala chaar

boondon wala”

No limitation on advertising budget

PLACEFocused on rural markets(flank

attack)

Captured south India market first

(acquired 90% share in Tamilnadu and

Kerala) and then went national



QUESTION 2:

Critically comment on the rationale underlying jyothi’s

decision to diversify into other segments of the FMCG

sector. Do you think jyothi will find it difficult to replicate

ujala’s success with its new products? Justify your answer.



•Market reached saturation point

•

Reduce dependency on flagship product – with technological development, the usage of product might become obsolete.

•With diversification, during economic slowdown, the company would remain

relatively unaffected.

•The well established distribution network can be a great help for diversifying

into FMCG.

•Well known brand identity.



•

High competition across all products- especially POST LPG•Product value

Unlike ujala’s magic most of the FMCG products now cater to

the need of customers and there is very little gap which JLL

would find hard to fill.



QUESTION 3:

What strategies do you recommend for the brands Exo,

Maxo coil, Maya and Jeeva in competitive market and why?



MAXO COIL•PRODUCT LINE EXTENSION

Launch liquid vaporizer- easy to use and store, no smoke.

• They should come up with different sizes to fit in the budget of

customers



EXO-DISHWASHING BAR

•Product line extension

Launch a liquid variant, easy to store and reduced wastage.

•Expand Geographically-It should be launched across the country because

Banana leaf is widely used in south India.

MAYA- INCENSE STICK

• One packet consisting of different fragrances.

• Increase the margin for the dealers.

•Try selling to temples.



JEEVA – AN AYURVEDIC SOAP

Differentiate the product from that of the competitors’ – for e.g.- placeit as an ayurvedic medicinal product; get certification from doctors,laboratories; promote on the basis of key ingredients.

Provide margins to intermediaries

Target and focus on a particular section of customers..



THANK

YOU

Documents

Ujala Case New