Case Brief R

Enterprises
Adhesives Industry Key Organisational Actors
Grover Enterprises (market leader) 1. Mr. Ghosh, CEO ,Grover Enterprises
2. Ms. Samhita, Head, MP Business
Competitors Distribution Channels for
the company
National
Distributors & Retailers 50

Mom & Pop stores 30

Online Presence 20

Local
 Problem Statement R
Enterprises

● Pal Singh & Co, a local competitor has eaten away 3%

share i.e. 8 crores worth of sales
● Cheaper and low quality products being pushed by
channel partner
● Local competitor backed by political party
What should be done to check deterioration in revenues of Grover
Enterprises in MP ? 2016 Quarterly sales and market
share for Grover Enterprises

Strength: Weakness:
● Market Leader ● Higher Price
S ● Excellent Brand image
W ● Superior Products
Threat:
O ● Local competition
Opportunity: ● Political
T
● Increasing Market size Interference
(India)
 Root Cause Analysis R
Enterprises

Plausible Issue Stakeholders Marketing Attribute

Low Perceived Quality Difference Customer, Competitors, Grover Product, Price

Enterprises

Channel Partner Incentives Distributor, Retailer, Influencer, Place, Promotion,Price

Grover Enterprises & Pal Singh Co.

Low Product Awareness amongst Influencers, Grover Enterprises Promotion, Place

Influencer

Low Product Feature Benefit Customer, Grover Enterprises Product,Price

 Recommendation R
Enterprises
For Contractors (influencer)
Targeted Communication in the form of brand campaigns highlighting - Exclusive product training
- product quality and features workshops & info pamphlets
- cost and - Grover Enterprise
merchandise tools
Channel incentivisation & channel distribution review are other
options but these are sticky and irreversible options

Hyperlocal Product Innovation

Sachet-isation - product feature innovation
of Grover’s Premium as per regional needs
quality products

Sachet-isation Flanker Brand Strategy

of Grover’s Premium quality products to Creating a cheap, inexpensive standalone brand that
increase visibility with the same premium gives Pal Singh Co run for its current market share
positioning
 Financial Impact
Assumptions: R
1. Marketing budget = 10 Cr for 1000 Cr revenues
2. Distribution of budget in proportion of their contribution in revenues Enterprises
Costs (In Cr)
Channel partner incentive Q1 Q2 Q3 Q4
Distributors 4-5 % 1.84 1.73 1.65 1.63
Retailers 2-3 % 0.73 0.69 0.66 0.65
Influencer
Total no. of influencers 100 100 100 100 100
Per influencer 0.01 0.01 0.01 0.01 0.01
Marketing (10 Cr)
Digital 20% 0.54 0.50 0.48 0.48
TV Commercials 30% 0.80 0.76 0.72 0.71
Newspapers 30% 0.80 0.76 0.72 0.71
Hoardings 10% 0.27 0.25 0.24 0.24

Revenues (In Cr) 273.88 73.49 69.13 66.01 65.25