Vizag Case Solution

Published: 2021-06-29 07:06:11
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VIZAG CASE SOLUTIONSubmitted By:Divyang Sinha P36112Gaurav Sharma P36113Himanshu Gupta P36116Sanjeev Kumar P35177Sukriti Dang P36165IntroductionAriel detergent powder launch by P&G in the test market of Vizag triggered intense marketing war in detergent market of India. At this point of time, major players in detergent market Hindustan Lever (HLL) and Nirma had market share of 40% and 30% respectively, with a market size well over us $ 1,000,000,000.In response to Ariel the first concentrate or compact detergent powder to be launched in India, HLL launched Triple Power Rin (TPR) a competing, less expensive concentrate NSD powder.HLL intensified market research by setting up a consumer panel in Vizag soon after Ariel’s test launch. Answers to the questions raised are as follows:How significant is the demand for concentrates?From Exhibit 3, we can see that Ariel and Triple Power Rin (Concentrates) gain market share in volume from 7.2% to 10.6%, i.e. an increase of 47.22%. What was the impact of concentrates on the demand for detergent powder and detergent bar?From Exhibit 8, we can see that consumption of powder has decreased from 1116 gm in Nov’90 to 1007 gm in Mar’91 to 1035 gram in Jun’91 which shows that concentrate has decreased the volume sale of detergent powder.

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