Strategic Marketing Plan For HIPOLIN

Group No : 5 and 6

Introduction• Started in 1970 • Based in Ahmedabad, Gujarat• BSE Listed Company since 1994• Decreasing market share• Incurred loss of Rs 22 lakhs in FY 2011-12 with

sales of Rs 35 crores• Rejected an offer of acquisition – will focus on

increasing sales

Current Marketing Strategy• The company has total production capacity of

14,000 tones per year for its three major products - detergent powder, detergent cake and dish wash bar.

• The total production would scale up to 18,000 tons per annum for the mix of its three products in this financial year.

• Plans to spend on TV commercials

Marketing Challenges• High Cost of transportation to UP, Bihar and WB– Production at Gujarat - Supplying finished products

from Gujarat to faraway markets like UP, Bihar and WB led to high transportation cost that added Rs 3 on per one kilogram of detergent

• Meeting the Cost of advertising• Aggressive competition from bigger players in

the low-cost segment• Unable to absorb the rise in input cost at the

same selling price to maintain the market share

Red Ocean Strategy

Compete in Existing market space

Gujarat

Beat the competition Nirma, Ghadi, Wheel

Exploit existing demand UP, WB, Bihar

Align the system of firm’s activities with its strategic choice of differentiation or low cost

Ways to reduce production and marketing cost and product differentiation

Market Busting Strategies• Redefining Profit Drivers– Improving Asset Utilization Eg: outsourcing production– Improving customer’s key metrics and productivity by

adding value and differentiation

Marketing Strategy

Urban

Product Differentiation Variants

Rural

Direct marketing

through SHGs

THANK YOU