Submitted by:

Section C
Group 7:
Archit Arora 13p198
Avneet Sikka 13P201
Nikhil Saini 13P218
Palak Khaneja 13P219
Raj Kumar 13P226
Background
India was the worlds largest shaving market in terms
of volume (2.4 billions blades annually in 1992)
Carbon steel blades lower end of technology
Malhotras dominated the market with a 80-90%
market share
Distribution networks- Very large wholesalers to semi
wholesalers and retailers
Use stock push through trade promotion
Wiltech the leader in twin blade segment with 50%
share
Current Situation
ISPL has less than 3% of the total market
End of financial year 1995-96 gillette accumulated losses worth 7.24
crores
In Urban Markets the share is close to double digits
Customer studies reveal no serious flaws in product, positioning or
price
Reversal of decision to have its own distribution system
Adversely effect ISPLs position in the market place
Study required to find out distribution costs, resources
needed
Require large financial commitments








No procedure for reporting
b/w Gillette and Lipton
No Monitoring as actual retail
coverage to ISPL products by the
Lipton channel not available
ISPL is using liptons
distribution channel products
are not complementary
No feedback for ISPL



Issues Identified
ISPL
Lipton
Stockist
Retailer
Consumer
N
o

F
e
e
d
b
a
c
k


I
S
P
L

Readymade distribution
network
Deep market reach
Instant Access at launch
time
Provides low cost
distribution
No investment required
Natural fit with synergies
Possible higher sales in
future
L
i
p
t
o
n

No Investments required
Distribution channel at a
better utilization level for
Lipton
Natural fit with synergies
Opportunity to increase
profits
Distributing ISPLs products
at 5% commission to itself
Liptons stockists got a 7%
margin on ISPLs products
and only 5% on Liptons
products

Recommendation
Design process for information and report
sharing
Monitoring visits by ISPL representatives
Low cost option with intensive market reach

Use Liptons
network
Create own rural distribution channel in
addition to Liptons distribution channel
Will help address the single digit market
share
Close to consumer
Better communication
Own
distribution
channel
Thank You