CASE STUDY OF CONSUMER PRODUCTS LIMITED

Submitted to : Dr. Dharshana Dave

Roll No : 23013
Division : A
Summary: In January 1967, Consumer Products Limited (CPL) faced a significant challenge in
the washing products market. A competitive brand, Spark, had gained substantial market share
through a generous consumer promotion. This unexpected threat prompted CPL's management to
discuss potential actions to regain their market share.
Objective: The primary objective is to develop a strategy to regain CPL's market share, which
had been eroded by Spark's successful consumer promotion.
Problem: Spark, a brand with an inferior product formulation, had gained a significant market
share through a generous consumer promotion. CPL's Dazzle brand, which had previously held
80% of the market, faced a threat to its dominance.
Criteria:
- Regaining market share.
- Maintaining or enhancing product quality.
- Managing promotional costs effectively.
- Leveraging product formulation and pricing strategies.
Alternative Actions:
1. Introduce a Second Brand with Inferior Formulation:
- Develop a new brand with a formulation equal to Spark but inferior to Dazzle.
- Heavily promote this new brand at a similar expenditure level as Spark.
- Sell this brand at a price equal to Dazzle and Spark, or potentially at a lower price than Spark.
2. Strengthen Dazzle's Position:
- Increase marketing efforts and consumer promotion for the Dazzle brand.
- Highlight Dazzle's superior product quality to justify a higher price.
- Potentially, match Spark's consumer promotion efforts if it aligns with the budget.
Action Plan:
- Conduct a full-scale meeting with the marketing team to analyse the best course of action.
- Assess the potential impact of introducing a new brand with an inferior formulation.
- Evaluate the feasibility of matching Spark's consumer promotion expenditure.
- Consider market research to understand consumer preferences and the impact of pricing.
- Continuously monitor market share changes and adapt the strategy accordingly.

The chosen action should align with CPL's budget constraints and long-term goals while
effectively addressing the challenge posed by Spark's successful promotion.