Marketing Assignment - Mosquito Repellent: Submitted by
Marketing Assignment - Mosquito Repellent: Submitted by
Marketing Assignment - Mosquito Repellent: Submitted by
Submitted by
Working Group C2
21F144 – Rohit K
1. Present details of both the companies w.r.t. market share, growth trend, product
mix (L, W, D, SKUs), other competitors etc.
Answer
The mosquito repellent market is placed over INR 10,000 crores in India. It is significantly large
due to the enormous mosquito breeding and the diseases that are caused because of
mosquitos.
Market share:
All out: All out had enjoyed a healthy market share till 2011 in India. They enjoyed 42% market
share in the liquid vaporiser segment which contributed to about 25% of the household
insecticide market in the country. However, when the market share figure under moving
average total (MAT) is considered, All out is the leader with a share of little over 45%.
Good Knight: Until 2011, All out had a major share in the market but post July 2011, Good
Knight took over All out to become the leader in the liquid vaporiser segment with 43%
market share. This was the first time Good Knight overtook All out in this segment. But
considering the MAT, Godrej’s share stands at 39.4%. Godrej claims that the share of Good
Knight is consistently rising over the last 24 months.
Growth trend:
All out: All out had many reasons of success in the Indian market. Some of them were because
of technological innovations, 1st mover advantage, aggressive marketing etc. All out has a
majority in the liquid vaporiser but has a small share in coils.
All out enjoys overall share of voice of 31%, the nearest competitor Good Knight has only 5%
in 2000. All Out did succeed in stemming the previously rapid growth of GoodKnight and stave
off other challenges. This is best exemplified that from about 40 per cent of the vaporizer
market, GoodKnight’s market share decreased to just more than 20 per cent after a few years.
Good advertising cannot alone sustain high sales for any great length of time. Another
important component is pricing. It was here that the company knew that it needed to get its
value proposition right, for purchasing a vaporizer did involve an up-front initial investment
from the customers. All Out initially priced its machine relatively high, as some of the
components had to be imported. However, this was proving to be an albatross around the
company’s neck and, bowing to its customers’ needs, KAPL lowered its price gradually. What
helped was the concomitant shift to indigenous and in-house production of components for
the machine.
All Out, which was launched in the country by Karamchand Appliances Pvt Ltd (KAPL) -
promoted by the Arya brothers, Naveen, Anil and Bimal - not only enjoyed first mover
advantage in the Liquid Vaporizers segment, but reportedly went on to garner a 69% market
share within a decade of launch. The brand was sold to US-based consumer goods giant SC
Johnson, KAPL's 50% stakeholder, in 2005. The Aryas have largely maintained a low profile
ever since, although around 2016-17, Naveen Arya had invested $2 million in Indian Gifts
Portal (IGP) along with another investor.
The all out is at its maturity stage. The sales are stable, and it is not growing The competitors
are rising and there is a stiff competition.
Good Knight: Godrej Consumer Products Ltd (GCPL) in 2012 said its brand Good Knight would
continue to be growth drivers of the company for the fiscal year. "Innovations like this could
make a major difference in years to come. We expect a growth of more than 40 per cent per
annum in this segment," Godrej said. GCPL's net sales for the fiscal 2011-12 stood at Rs
4,850.94 crore while its net profit for the fiscal stood at Rs 726.72 crore. In the last couple of
years, GCPL has been on an aggressive acquisition spree, buying companies in Nigeria,
Indonesia, Malaysia particularly in the hair care and household insecticide space.
As markets evolve consumers seek not just contemporary quality that uses the latest
discoveries and innovations but also a product that looks modern sitting in the shelf. While
this appears to be common sense, the truth is that this piece of wisdom is not caught by
everyone. Goodknight has always been led by consumer research.
GCPL is concentrating its growth strategy in the rural areas. Its aim to increase rural sales to
37% of revenue by 2020 has taken a hit due to the economic slowdown. The owner of brands
like Good Knight will now take another two-three years to grow its rural business to 37% from
31%. The country’s 6200 crore home insecticide market is growing at 7-8% which reflects a bit
of a slowdown. The company, which is a market leader, has seen growth slightly ahead of the
industry. It has increased its market share this year to 49%. Liquid vaporisers account for 56% of
Good Knight’s sales. The Good Knight brand, is turn, makes up more than 40% of the company’s
sales which stood at INR 2801 crore in October-December 2019.
Product mix:
All out: All out has products ranging from coils, spray, fast card, and vaporiser. They enjoy
43% market share in vaporiser and 2% market share in coils.
Good Knight: Goodnight has products ranging in repellent cream, coils, vaporiser, spray,
agarbattis, roll on, and fast card.
Some other products (sprays, fast card, gel, roll on) include:
Other competitors: Although All Out and GoodKnight are leaders in the mosquito repellent
market, they have some serious competition in various segments.
Their main competitors are Odomos, Mortein, Himalaya, Hit, Pee Safe, MamaEarth, Unica,
Bugg Off etc.
Answer
The mosquito repellent market is one of the rapidly developing dynamic business sectors in
FMCG area in India which is growing at a CAGR of more than 5% over the last five years and
is expected to reach new heights in 2021. Because of increasing awareness with respect to
vector borne illness, the interest in mosquito repellent items like coils, strips, liquid
vaporizers, and so on is increasing, giving high momentum to the Indian Mosquito repellent
market. Mosquito Repellent has turned into a big market for new item advancements and
development where makers are attempting to persuade purchasers through aggressive
campaign and advertising by promoting that they ought to take on mosquito repellent items
to work on home cleanliness and to be shielded from mosquito borne infection.
Of the total sales, rural markets constitute 30-35% of the total sales with Godrej being the
market leader with nearly 50% of the market share. Although coils are market leaders
followed by liquid vaporizers, mats, creams etc, but the market dominance is decreasing
because of growing demand for vaporizers and sprays.
https://www.marknteladvisors.com/research-library/india-mosquito-repellent-market.html
3. Describe the target markets and the positioning adopted by them.
Answer
Target Market- Mosquito repellents target mainly the middle class and upper middle-class
households by providing them with innovative advanced technologies which are safe to use.
Although they target the other segments also but in a smaller scale and with a separate set
of products.
4. Describe your product category in terms of the stage of PLC it occupies in the market
Answer
Good Knight, a brand started in 1984 by Transelektra Domestic Products Ltd, was a great
success of that time. It offered electronic mats used to destroy mosquitos and was really
effective due to the chemical Allethrin (1%) present in it. It got success all over India and
especially developing urban regions because of increasing incomes of large segment of
population during that time, adequate electrification and high mosquito incidences.
In a very brief time period of 5 years, it established itself well in the Indian market and
subsequently targeted the middle and lower class population with a cheaper substitutes.
All was going good for Good Knight until Mortein came up with an Allethrin coil. It was cheap
for consumers because there were no hardware costs associated with it. Consumers in no
time shifted their preferences to coils.
Although it wasn’t able to take the first mover advantage, but Good Knight too, soon came
up with its “long-lasting” 10-hour red coil variant.
It was in 1995 that Good Knight entered into the vaporizer segment as well. This time its value
proposition was “Total Protection”.
When the company Godrej Sara Lee Limited realized it still wasn’t being able to capture a
significant market share it came up with an insect repellent lotion this time called “Mosfree”
to compete against the current market leader in the product category – Odomos.
During 1990s, Good Knight also launched Supermats and Jumbo Coils to sustain its market
share.
Throughout 2000-20, Good Knight brought in various product innovations such Supermats,
Jumbo Coils, Neem Low Smoke Coils, Express and Active+ systems to sustain its position in
the market.
Although the company succeeded in doing so and currently occupies a majority share of 51%
in the market, the mosquito repellent industry itself is facing a hard time. There is rising
awareness among people about hazardous effects of repellents like Allethrin on eyes, skin,
respiratory tract and the nervous system. Also, the fact that no mosquito repellent can
provide 100% protection further leads to declining market growth.
Hence people are gradually switching to organic substitutes of repellents like Anti Mosquito
Racquets.
So, after considering all the above we can reasonably infer that Good Knight mosquito
repellents’ product life cycle is at Declining Stage that is characterized by diminishing prices
and profitability, declining sales volumes, profit becoming more of a challenge due to
inefficiencies in production/distribution than sales.
Karamchand Appliances Private Limited (KAPL), a small company run by Arya brothers –
Naveen, Anil and Bimal, launched its brand All-Out in 1990. The company operated in single
product segment – mosquito repellent, to serve a niche market. The brand was pioneer in the
Liquid Vaporizer (LV) segment.
The vaporizer was an easy-to-use product complete with its own machine which came with
the original packing with only refills needed subsequently.
Initially, the company set a high price to meet the manufacturing costs but they were
eventually reduced to target customers in small cities.
In a short span of 9 years of existence KAPL acquired leading market share of 69%.
KAPL's distribution network included 120 distributors across the country. Of the 900,000
outlets across the country, that sold repellents, KAPL was available in only 18%. R&C had 55%
& GSSL had 54%. To reduce costs, it has started in house production
In 2003, US based SC Johnson acquired 50% stake in KAPL at 180 crores and two years later
rest of the 50% at around 200 crores going by what’s known in public.
The brand was performing exceptionally well and had more than 50% of market share during
this time. In 2005, SC Johnson bought rest of the 50% share in the company.
Since then, the brand is expanding its product portfolio and is poised to re-capture its past
popularity under new leadership and innovative marketing strategies.
Again, as mentioned in the case of Good Knight, the customers for the product category of
mosquito repellents are lately looking for organic substitutes and even though the brand has
69% market share in vaporizer repellents segment, the overall market is experiencing a
downturn. Thus, the product life cycle is currently at declining stage.
5. List the participants in buying decision process and the roles played by them in the
Ans. For both the companies, following are the participants who take part in the buying
decision process:
Mothers or women in the house play the role of deciders and approvers by evaluating all the
product requirements and available options in the market and then approving the final
mosquito repellent to be purchased
Fathers or men in the house play the role of buyers. Usually, they go to market to make the
purchase for the mosquito repellent. They play the major role in selecting the vendor and
negotiating. Since mosquito repellents are not an expensive item and do not assume a large
portion of income of consumers, people are usually price insensitive while buying mosquito
repellents.
6. Describe the POD and POP utilized by the two identified companies within this
product category?
When it comes to Point of Purchase (POP), both All Out and Goodknight match their coils and
refills both in terms of volume of contents and pricing.
In terms of ingredients both the companies use D-Trans Allethrin formula for their coils.
Whereas they use Transfluthrin (TFT) for their liquid refills used in their electric repellents.
Mosquito repellent sprays, that last all night Mosquito repellent sprays,
Electic vapourisers
Electric Vapourisers
When it comes to Points of difference (POD), Goodknight has introduced many products that
use natural ingredients. Compared to this All Out concentrates on conventional products such
as electric vaporisers, coils, sprays. But based on our observations Goodknight seems to be
able to achieve some level of differentiation by expanding its product width on offering.
As we can see in the above table that Goodknight is trying to differentiate itself from the
conventional offerings by innovating with new types of products such as gels, patches,
Agarbattis, fabric dots which are not been offered by All out.
Although All Out differentiates its offering by innovating with vaporizer machines by adding
features such as multi modes and fans. As shown from the figure below.
7. Detail the pricing strategy adopted by the two companies for their offers.
Both the brands give discounts offers when buying packs containing multiple units up to 6
each
• All out offers a 6-pack refill for 390/- thereby saving the customer 4-6 rupees on each
refill
• Similarly, Goodknight offers 4 refill pack for 288/-
• The sprays are marketed as 28 paisa per spray by Goodknight
• As apparent from the above table both the brands price their products except for the
combo packs and sprays.
We have not observed any aggressive pricing strategies by both brands and assume that they
must be following cost-based pricing.
8. What sort of distribution network is employed by the two companies for sales of
their products?
Both the companies have employed a similar distribution channel they follow a Multi-channel
Marketing System and a Hybrid Marketing system
Producers
Business segments
Retailer
(Sale Force)
Consumers
Distributor
Dealer
Business
segment
Consumers
(Online)
Multi-channel Marketing System is when a single firm uses two or more marketing channels
to reach their customer segments. When the members of these functions perform
complementary functions like post sale services and demand generation through websites for
the same customer category then it is known as Hybrid system.
Merchants- This includes the retailers and the wholesalers who stock the goods in bulk and
then supply them to other retailers or customers.
Around 120 distributors made up distribution network across the country. KAPL was offered
at only 18% of the 900,000 repellent-selling establishments in the country. Because this was
much lower than R&C's 55 percent and GSSL's 54 percent, KAPL was attempting to increase
its footprint back is 2000 and now they have a huge market share and are found across the
country in all big or small retail chains, local shops, chemist outlets and even online.
All Good knight Coils are widely distributed across the country. You may find it at your nearby
Kirana, big or small retail chains, local shops or chemist outlet. Good knight products are
shipped to Indonesia, Bangladesh, Sri Lanka, Nepal, Fiji, and Yemen, among other countries.
In the last three countries, it is the market leader. It was only recently introduced to Africa.
9. What are the promotional objectives and strategies used by the two companies in
their respective target markets?
All Out
Promotional Objectives
Pre-launch
Karamchand Appliances Pvt. Ltd. (KAPL) hired a research agency to come up brand name for
their new in market product. The agency recommended names like Freedom, Choo Mantar
etc. But the Arya brothers wanted a non- Hindi name and continued with All out as the name.
· While launching they weren’t very satisfied by the advertising agency, so they stared
inhouse advertising and came up with the most famous and the most iconic
advertisement. - The campaign, which featured an animated jumping frog (really an All
Out vape) eating insects, was a huge success. The advertisement was based on Earth's
previous advertisements for the Japanese market.
· Promoted as easy to use product with only a refill required. All Out has made a name for
itself in the home pest control sector, just like Colgate and Godrej have in their respective
product categories. The brand reached its pinnacle, capturing over two-thirds (69%) of
the market share in its category and ensuring that the urban Indian household would
utilise the product.
Post-launch
· Advertised through satellite television stations (mainly Siti Cable and Doordarshan), the
corporation also pioneered the practise of sponsoring song/dance and fight sequences in
movies. Before each song/dance and combat action in the film, All Out commercials would
show. Because Hindi movies usually have 4-5 songs/dances, viewers saw the All Out
commercial at least 4-5 times. As a result, the brand has a very high share of mind among
consumers.
· Karamchand Appliances Pvt. Ltd. (KAPL) finally opted to sell its successful All Out brand to
S. C. Johnson, a US consumer goods business, in 2005, despite having already bought a
50% ownership in the company.
Marketing Strategies
#MujheSabNahiPataHai
On Mother’s Day they interviewed few mothers and asked them why is it assumed that any
problem with their kids will be known to the mother and how do they manage this big
responsibility. The ad has an emotional connotation where the kid was suffering from Dengue
and the society started blaming the mother as to how doesn’t she took care of her son. The
mother breaks out and said “Mujhe Sab Nahi Pata hai”.
Don't let mosquitoes put your child's future in jeopardy. Mosquitoes are kept at bay by All
Out Sattva. It has a scent that is made up of natural elements.
The ads was made with an aim to thank its users for thrusting All out for their family from last
30 years and many more to come.
Good Knight
Promotional Objectives
Pre-launch
Transelektra Domestic Products Limited (TDPL) was formed, and the brand ‘Goodknight' was
introduced to the Electronic Mosquito Repellent (EMR)market. After a deal with Hindustan
Lever fell through in 1994, the Mumbai-based Godrej Group stepped in and bought TDPL (its
first acquisition).
The CEO of Godrej consumer products, Sunil Kataria, planned to make India free from all the
vectors borne diseases such as Malaria, Chikungunya, and dengue.
Making of the product so effective so that no mosquitos are found indoors and so affordable
that all middle-class people can buy.
According to the first pyrethroid-based product, Good Knight, Mohan was dubbed "Good
Knight Mohan" for his innovative invention. The refill machines and coils were the first items,
and they were effective enough to compete with the leading brands.
Launch
· It has always chosen promotion options which are conventional like outdoor advertising,
Radio, televisions, and newspapers. The company depends on the product itself to be the
most effective promotional devices.
· Unique selling proposition (USP)- Brand equity built over a decade through
communication.
· Only brand in the HI category which are able to transcend the coils, mats and vaporisers
and add a emotional association of ‘Nurturance’ and ‘Total Protection’.
· The brand always takes care of users wants and needs. Through research it has been
significantly proven that children are vulnerable to mosquitoes all the time and their
parents are overly concerned about their protection. So Good Knight make much efforts
and communicated themselves as a safe and protected brand.
Post-launch
· To persuade the customer - Good Knight came up with newer and effective product in
regular interval and that too by using few ingredients so that it is cost effective.
· While most people were only used to mosquito nets, lotions, and coils that were
ineffective, Good Knight increased its marketing of hardware add-ons that worked as
EMDs (Electronic Mosquito Destroyers), which were sold alongside the mats. The goods
were created to protect individuals from infections spread by mosquitos.
· Good Knight developed a strategy of deploying powerful Supermats and Jumbo Coils in
the HI or Household Insecticide category to keep ahead of the competition.
· Silver Mat was introduced in 2003 with high-quality modern packaging, high-decibel
promotion, and superior technology as a re-launch of the earlier version, and it now
boasts a market share of roughly 62 percent. In the late 1990s, the 10-hour coil and, in
1995, the LMD (Liquid Mosquito Destroyer Machine) with a three-year warranty and a 24
percent vaporizer market share were prominent marketing techniques.
· Goodknight's latest advertising for "Cool Gel" are aimed at rural households where the
entire family sleeps outside; by portraying its product as non-sticky and "cool," in addition
to being mosquito-repellent, the company hopes to wean users away from other skin-
based repellent lotions.
Marketing Strategies
#MomsOnActivMode-
On Mother’s Day this campaign was launched showing mother knows everything even before
anything is said and how they are always in Active Mode.
#DhapakDhapak
After 4 hours the flash mode gets automatically switched on and no more mosquitoes to
spread diseases.
Advertisement to spread awareness of dengue which is caused through mosquito bites during
the daytime. The advertisement shows a little kid asking his sister to take precautions by using
Good Knight refill machine instead of closing the windows.
demonstrating how a baby's sister obsesses about the insects that will be destroyed by the
machine's normal and active modes. There was also an Active+ Complete Protection
commercial in which a child vows to protect his younger sibling by using Good Knight repellent
to get rid of mosquitoes
#50%MorePower
Goodnight power active plus demonstrating both active and normal mode by showing the
bond between the grandfather and grandson
A woman is shown struggling between altering her son's fancy clothing as Ravana and
fumbling with ineffectual mosquito-eradication. This sent the idea that, rather than installing
repellents in stages, it is preferable to purchase the Advanced Xpress once and for all.