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Ambassador Torchlight Case Study Analysis

Submitted to Mr. Pankaj Jain Asst. Prof.

Submitted by Harpinder Singh
PGDM-1

PCTE

Awake is priced at 1. Having a good distribution network. The blade market is a highly competitive market.4 per blade but it loses on greater market share. In case of price Morning is priced at Rs 10 per pack. This price is less. in comparison to the average number of shaves per blade they offer than the other competitors. the company want to utilize this strength by taking over the distribution of some consumer items.Introduction to case Ambassador torchlights were the second largest in the market of dry cell batteries and allied products. It caters to all the income levels.1% respectively.8% and 9. It became popular in the Introduction stage but the growth stage was poor as there was low repurchase as faulty blades were found in the pack. Market Situation Analysis The blade market is comprises of Stainless steel blades and Carbon steel blades. company manufacturing blades and also having two own brands. so it loses out on market share in the lower income groups.00 per blade respectively.3% and is the market leader in stainless steel blades. Next in the list “Morning” and “Awake” that have a market share of 11. “Badshah” has a market share of 7.1%. Ambassador has the option to take over distribution of Centrals brands or go for their own brand. 12. . The market leader is “Sharp” with a market share of 26. 1. Stainless Steel blades are used mainly by the upper income groups and the Carbon steel blades are mainly used by the lower income groups.4% and at the second is “Hatari” with a market share of 19.They are priced at Re.8 and 1. They approached Central.8% of the market share is held by the other carbon steel blades.

Patel has the right to terminate Ambassador Torchlight as selling agents if he is not satisfied with their performance.own should the product be poist positioned ?should they go for a carbon steel or stainless steel balde ? What segment of the population should they catrer to ?What should the pricebe ?What should be the advertising and promotionmal strategy ?  and If they opted for Central‟s brands „Splash‟ and „Awake‟ they needed to know why the repurchase rate was low ? What advertising and promotional strategy was called for? To know these things they have to research in the market. This is the big reason for low repurchase rate for Centrals brands. This could be costly for ambassadors.Problems Problems in the way of Ambassador Torchlight. .  whether to opt for their own private brand or to take over distributions of splash and awake? If they took up the distribution then under an agreement Mr.  If they preferred to market their own brand.  Brands Loyalty amongst blade users is very low.

Their short term profits may be low but they may reap good long term profits. And then most effectively exploit their distribution network for achieving their targets. They can concentrate on the rural areas as their network is good in these areas. They can create a value about their brand among the rural masses and use other marketing-mix elements of advertising and sales force to communicate about their brand. Ambassador Torchlight can follow the Market penetration strategy. The Carbon Steel blades are having more Market share than Stainless Steel blade. This is in favour of Ambassador because their rural distribution network is strong and more number of lower income customers are living in the rural areas. If Ambassador can offer highly valuable features then it could take advantage of value-based pricing. Ambassador Torchlight can follow the Value pricing strategy. They can reduce the packaging and distribution cost owing to their good distribution network.Alternatives and Solution There just two alternatives. Lower income people use carbon steel blades. To sustain their brand they can produce good quality and apply low cost. Thus they can use the quality or price positioning. . They can offer the best value for money to the buyers. They can provide more number of shaves per blade and can follow the Benefit positioning for this. But for this purpose they have to ask for quality control by Central Industries. go for own brand or take over the distribution of Centrals brands? The situation demands that they should go for their own brand rather than wasting their resources on Centrals brands. than those of their competitors whose products are relatively of lower value. They should go with Carbon Steel blade market.

and substitutes and alternatives. all of which can make pricing more coherent and complex. competitor pricing practices. price experiments and analysis of past.  It takes into account industry structure. segmentation. Pricing can be based on several customer-focused methods: expert opinion. Value-based pricing can be the only way to price new products or "breakthrough" products.   . present and expected market data and conditions.There are some considerable benefits of Value pricing strategy for Ambassador Torchlight. customer surveys.