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SURVIVAL STAKES

CASE STUDY

Excelsior acquired WIC as a part of a deliberate diversification strategy because of the risks faced by its core business. Rs. a cosmetic company. It was acquired by the Excelsior Group.  . was established in 1992 at Aurangabad (Maharashtra).INTRODUCTION  Western India Cosmetics (WIC). 1000 crore company whose core business is liquor.

The Current Scenario   Excelsior Group. Acquires Western India Cosmetics(WIC) To Further Diversify. Diversified Into Real Estate. Is A Rs 1000 Crore Conglomerate Its Core Business Is Liquor.Excelsior Group . Consumer Products. Finance Etc. Liquor Business Under Threat Of Possibility Of Take-over Consu mer Financ Produc Others e t 4% 10% 6% Real Estate 10%    Liqour 70% SALES . It Is Diversifying To Overcome The Threat Of Prohibition On Liquor Sales In Different States (Such As AP. Haryana).

. Little product differentiation. Excelsior.PROBLEMS FACED BY WIC • • • • • Burdened with unsuccessful brands.e. Labor strikes and bloated workforce Relatively less market share Erratic support by the parent company i.

crore .Annual Sales of WIC Brands 30 25 20 15 10 5 0 Bharat Herb Wash Bonjour Sparkle Annual Sales in Rs.

.BHARAT • Medium-priced. • Bread and Butter for the company. ayurvedic and ethnic soap. • Direct competition from Chandrika(South India) and Medimix(Pan India). • Introduction of smaller sizes to cater to lower-middle class as well. Solutions/Improvements • Add new features to the product by adding new ingredient like assortment of healing oils. • Flat Market share. • Implicit threat from Mysore Sandal and Santoor but neither of them are ayurvedic products.

Short term strategies Discontinue Production If there are lack of buyers. Long term strategies Invest only in day to day operations and slowly divest. Focus on product design and packaging. Solutions/Improvements 1.Sparkle     Bonjour 1. Divest the product 2. A premium/high-priced soap. Currently on a refreshing soap platform. No proper promotional campaign. . Toilet Soap Annual Sales : 5 Crores Half Dead Product 4. Quite unsuccessful in product positioning. 3. No sign of revival Lack of adequate promotion Solution/Improvement1. 2. 2. 5.

. Not Having Idea Of Shifted Into Gel Tooth Paste Solutions/Improvement • Follow The Strategy Of MARKET PENETRATION. Lacks New Idea 5. • Market Development Strategy By Launching Product As Tooth Powder In Rural Areas. Has Gone Down Well With Consumers Occupies A Place In The Competitive Market Competitors : High-end : Close Up And HUL. 3. 2. Gel Toothpaste Medium : Low Colgate : Babool SALES Babool Pepsode Others nt Promise Colgate Gel CloseUP Colgate 4.HERB Herbal Toothpaste 1. Launch The Product In Sachets.

2. Annual Sales : 8 Crores Competitors : High-end : Ariel. Surf Ultra Low Priced: Ariel Supersoaker.WASH Detergent Powder 1. Others : Shudh. Sales 12% 2% 6% 36% 8% 10% 26% Nirma Wheel Surf Ultra Ariel Super Soaker Rin Power White . Henko. 3. Nirma & Wheel. Flanks Covered By Other Players Solution/Improvements • Remove The Product From the Portfolio. No Money To Made At Top End 4. Rin Power White.

Market Penetration (Intensive Growth) Increase Market Share Herb and Bharat III.Ansoff’s Model (Market Expansion Grid For WIC) PRESENT PRODUCTS NEW PRODUCTS Present Market I. Market Development (Intensive) Herb IV. Diversification  Introduce ayurvedic shower gel  Launch herbal mouthwash New Market  Target new segments Toothpowder for consumers of rural area . Product Development (Intensive) Sparkle Product reformulation strategy Feature Addition-Anti Bacterial Convert nonusers into users Advertise their Health benefits Product feature additions strategy Offer product in different colors II.

Questions  Should WIC phase out its existing consumer products and bring in its current range of products or retain them all? Should it sell of its assets and cut its losses before it is too late? Should it strengthen its consumer goods business through backward and forward integration?  or   IS THERE A FUTURE FOR WIC?? .

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