THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

SUBJECT- BUSINESS ECONOMICS

PROJECT CO-ORDINATOR:

PROF. MR. ABHIK MUKHERJEE

CASE STUDY- STRETCHNIL ON

BY:

HARISH SHARMA (05)

RITU SHAH (31)

BATCH- B1 PGP/FW/2009-11

Central Finance Ltd. A Mumbai based company incorporated in 1984 was engaged in almost all financial activities like loan syndication, merchant banking, advisory services, investments etc. Central finance securities ltd is the subsidiary of this company. In the year 2000 The Company changed its name to GUFIC BIOSCIENCES LTD. The company is listed on BSE and NSE stock exchange.

The company is now involved in manufacturing and distribution of pharmaceuticals. Having sold off its ethical brands to Ranbaxy, the 21 crores company has been steadily increasing its portfolio of consumer products.

Gufic, with one of the finest Tissue Culture labs in India, along with a sophisticated R&D Center and a robust infrastructure, has always relied on nature to make good whatever mankind has lost in modernization.

The Gufic R&D Centre - Technology Development Dept. is a state-of-the-art research laboratory. The centre commenced functioning in July 1995 and has been designed with a view to be fully dedicated towards a newer concept of 'Total Product Development'. It was created to meet the challenges of the emerging global market, as well as the domestic market requirement, by developing New Pharmaceutical Products, New Drug Delivery Systems (NDDS), and New Platform Technologies which will enhance the quality of life, globally.

Products Gufic Biosciences has been known for its products in the area of Pharma, Herbal/Ayurvedic, Consumer Products and Personal Hygiene Products.

Pharma Products: Ridol Tablets, Vipro-Fe Syrup, Zad-G and Eben Tablets & Suspension. Products successfully developed and marketed in the recent years

are Optifer Capsules, Flabone Chewable Tablets, Aquadil-P Syrup, Nucart-OA Tablets, Rabol Tablets, Rabol-D Capsules, Menogia Tablets and Injection, Menogia-MF Tablets, Tocolyte Tablets and Injection, Tocolyte-SR Tablets, Prodox Tablets/Dispersible Tablets and Dry Syrup.

Herbal/Ayurvedic Products: Sallaki Tablets, Sallaki Ointment, Imunocin Tablets and Syrup, Eugynin-L Tablets, Aswal Plus Tablets, Kofend Syrup.

Consumer Products: Stretch Nil Lotion, Roll-On Cold Rub Oil, Care Ointment and Cream.

Personal Hygiene Products: Shapers and Actislim Sanitary Napkins

STRETCHNIL

PRODUCT

Stretch nil is an ayurvedic cream, non oily and non greasy, has a very soothing smell (not very strong). Stretch nil is a unique herbal preparation that has been specifically created for the prevention or minimization of stretch marks. Its natural Ingredients have stood the test of time and ensure that it is completely safe to be used during pregnancy.

PRICE

100ml tube for Rs 249

PLACE

For its market: Priority 1: Delhi, Mumbai, Kolkata, Bangalore, Pune, Ahmadabad, and Chennai. Priority 2: Mysore, Jaipur, Chandigarh. Metros which are their priority 1 markets are paid more attention than priority 2 markets.

PROMOTION

The brand has been inactive for a long period of time. Even when the product was launched the company was unable to promote the product well. There was lack of, or hardly any advertisements of this product on TV. Minimum ads were given in Magazines, newspapers, and other types of media. For around six years the product is there in the market but there was no promotional activities done and the product had hardly any sales or no sales.

Now, The Company wants and is trying to increase the sale of stretchnil. The company is trying to create awareness about the product among the consumers. The company again started giving ads on TV from November 2009 on channels like Colors and Zee TV. The ads are now shown in the afternoon time as they want to target housewives to create a bond with them. Stretchnil is also advertised on India TV for creating awareness, but still not sufficient to create an impact!!!

Stretch nil is the first product in its category.

THE CORE ISSUE

On speaking to Mr. Rajesh S. Shetty (Product Manager), we got to know a lot about this brand. He says, “The problem of stretch marks is such that it is not much spoken about to anyone. Our Indian culture has some natural practices carried on for years during the pregnancy period.

The pregnancy period is very sensitive period for a woman and they do not want to experiment and always turn to their elders for advice related to prevention of stretch marks. Women follow the old traditional methods like using oil, butter, and herbs etc which are also cheaper and are advised by their elders.

Consumers’ lack of awareness about the product and its composition of natural ingredients is also a big issue. Women perceive that the product might contain chemicals which could be harmful to them as well as their babies. Due to wrong positioning this product is used as a stretch mark removal cream whereas it should be used as stretch marks prevention creams.

Women are not accepting this product, unless recommended by the gynecologists. These doctors rarely recommend the brand but that also at 7-8 th

month when the marks become very prominent.”

Problem analysis by us:

Stretch nil is not very successful in the market all over the India and is not being sold. The product is there in the market for a long time but is almost dead. The Company could not position stretch nil properly in the mind of the consumers. The communication is not very effective to shift the consumers from the old traditional methods. Lack of awareness due to insufficient promotion done by the company. Faulty Packaging.

Questions:

1. What are the issues faced by the brand?2. How can the positioning be changed in consumers mind?3. What can be the communication plan that can effectively reach the

consumers and the influencers?4. What are the future opportunities for the brand to grow?

Sources:

Conversation with

Mr.Anil Kamath (Vice President Consumer product Division)

Mr.Rajesh S. Shetty (Product Manager)

www.guficbio.com