Transcript All-Out-case
All Out case Study
Background
• • • • All Out launched in April 1990 in Mumbai. All Out is a Liquid Vaporizers introduced by Karamchand Appliances Private Limited (KAPL) Within a decade of its launch, All Out established itself as the market leader, with a 69 percent market share in 1999 in vaporising segment KAPL is a small family owned firm which is essentially dealing with single product.
Background
• • • • In terms of value, the mat segment in 1997 was the largest (51%), followed by coils (21%) and vaporizers (7%).
Mosquito repellants are used in larger scale in urban areas than in rural areas Major players in the sector are Bombay Chemicals Ltd, Bayer, GSLL,Reckitt & Coleman , Balsara Hygiene ,KAPL etc In 1996 vaporiser segment was mainly dominated by KAPL
Need identification
Need identification
• • • Watching a small mosquito repellant company in Rajkot, the brothers decided to venture into the business and set up KAPL.
KAPL decided to get the technology they from Japanese manufacturers. Most of the modern mosquito repellants were developed in Japan
Need identification
• • • • KAPL people saw a vaporizer being sold by Earth.
It was reportedly doing extremely well in the Japanese market, as it was much more effective than mats. Vaporizers could function consistently throughout the night. It lowered the price of its product identifying the market sentiment.
Technology and innovation
• • • • Got the technology from Japan; where most of the modern mosquito repellant were produced.
Brought the concept of vaporizer in India Attractive use of animated ad and ads in videocassettes etc Launch of a small apparatus, Pluggy.
Segmentation,Positioning,Targeting
Segmentation,Positioning,Targeting
Packaging and pricing
Packaging and pricing
• • • • All Out, a name suggested by the youngest Arya brother, Naveen.
To ensure that the packaging was of high quality, KAPL commissioned a well-known packaging unit in Hyderabad, Andhra Pradesh.
Initially KAPL priced the All Out vaporizer fairly high, but later on decreased the price Launched at Rs 225
Packaging and pricing
• • • • In 1994, the price reduced to Rs 135 for a cord model In 1995, KAPL launched the 'Pluggy' (a small apparatus, in which the refill could be fitted and plugged in directly) for Rs 90. In 1996, a twin pack (offering the Pluggy and a cord model) was launched for Rs 135.
In 1998, KAPL came out with “deadly offer “,a Rs 99 pack consisting of the Pluggy and a refill.
Packaging and pricing
• • The 'deadly exchange scheme' launched in 1999, gave customers the chance to exchange a mat machine of any make for a Pluggy for just Rs 27.
The response to this scheme was phenomenal with the company reportedly selling over half a million pieces in September 1999 alone.
Distribution
Distribution
• • • • KAPL's distribution network included 120 distributors across the country.
Of the 900,000 outlets across the country, that sold repellants, KAPL was available in only 18%.
R&C had 55% & GSSL had 54%.
To reduce costs it has started in house production
Advertisement
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Advertisement
KAPL hired handle the advertising for All Out but wasn’t satisfied with the advertisements It then hired bigger advertising firm, HTA ,but the ads lost out on what the brand wanted to say. KAPL then decided to handle the advertising for All Out on its own. They launched a campaign featuring an animated, jumping frog (actually an All Out vaporizer) eating mosquitoes
Advertisement
• • • Later on, the advertisement included a man competing with All Out in a mosquito 'eating' competition and losing out. The short, funny advertisement cost KAPL just Rs 50,000 to make.
Using new promotion schemes KAPL advertised on videocassettes of Hindi movies in a big way
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Advertisement
To communicate in a cost-effective manner evening news program on FM Radio and cricket commentary on All India Radio (AIR) were used They also pioneered the concept of sponsoring song/dance and fight sequences in movies on many satellite television channels Advertisements would appear before each song/dance and fight sequence in the movie and hence got mind share of customers
Current Situation
Current Situation
• • • • Improvement in literacy and health consciousness will increase use of mosquito repellants Considerable scope for the market to expand Increasing concern over the harmful effects of the chemicals in mosquito repellants on the health of human beings is expected to hamper the growth Allethrin, the chemical used in most of the repellants, is reported to be very dangerous
Current Situation
• • • • • All Out's advertisement in 2001, claiming that the brand had 'Extra MMR' had been severely criticized.
MMR is just an abbreviation for 'mosquito mortality rate'. All Out faced criticism for aggressiveness in its advertising strategy. KAPL remained essentially a single product company. Dificult to say for how long all out will remain the market leader
Learning
Learning
• • • • • Its always good to be innovative Small firms can also become very successful Learn from your national and international counterparts Advertising helps create awareness about the brand Innovative advertising techniques can save money yet promote your brand