Strategic Marketing Plan For HIPOLIN

Group No : 5 and 6

Introduction
Started in 1970 Based in Ahmedabad, Gujarat BSE Listed Company since 1994 Decreasing market share Incurred loss of Rs 22 lakhs in FY 2011-12 with sales of Rs 35 crores Rejected an offer of acquisition will focus on increasing sales

Current Marketing Strategy

The company has total production capacity of 14,000 tones per year for its three major products - detergent powder, detergent cake and dish wash bar. The total production would scale up to 18,000 tons per annum for the mix of its three products in this financial year. Plans to spend on TV commercials

Marketing Challenges
High Cost of transportation to UP, Bihar and WB
Production at Gujarat - Supplying finished products from Gujarat to faraway markets like UP, Bihar and WB led to high transportation cost that added Rs 3 on per one kilogram of detergent

Meeting the Cost of advertising Aggressive competition from bigger players in the low-cost segment Unable to absorb the rise in input cost at the same selling price to maintain the market share

Red Ocean Strategy

Compete in Existing market Gujarat space Beat the competition Nirma, Ghadi, Wheel
Exploit existing demand UP, WB, Bihar

Align the system of firms activities with its strategic choice of differentiation or low cost

Ways to reduce production and marketing cost and product differentiation

Market Busting Strategies

Redefining Profit Drivers
Improving Asset Utilization Eg: outsourcing production Improving customers key metrics and productivity by adding value and differentiation
Marketing Strategy

Urban

Rural

Product Differentiation

Variants

Direct marketing through SHGs

THANK YOU