cherry blossom final word

8/9/2019 Cherry Blossom Final Word

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University of Sri

Jayewardenepura

Submission Date : 21/09/2014

Lecturer: Dr. P. G. S. Amila

Jayarathne

Advance Diploma in Marketing

Management Intake VII

Subject: Case Analysis

Registration Numbers: ADMM/2014/006

ADMM/2014/010

ADMM/2014/011

ADMM/2014/022

ADMM/2014/024

ADMM/2014/026

Assinment !ame: Cherry Blossom Shoe

Polish


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Acnowled!e"ent

We have made lot o eorts to complete this assignment! "o#ever$ it #ould not have been

possible #ithout the kind support and help o man% individuals #ho #orked together and

contributed in various #a%s and helped each other$ #hen is most matters!

&ur 'ecturer Dr! (! )! S! Amila *a%arathne$ $ #ho has done a lot o hard #ork during the class

room lecturers to enhance the subject kno#ledge o Marketing Research and speciall% the

lectures conducted under case anal%sis! Also #e thank our madam or paving the path to this

assignment #hich helped to broaden the kno#ledge o practical application o the theories taught

in class$ since #e actuall% absorbed a lot out o this!

We #ould like to e+tend our sincere thanks to all o them and man% all riends and oicials #ho

helped us to complete this assignment!

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Table of Contents

&bjective....................................................................................................................... 1

,!- .ackground o the /ompan%.....................................................................................2

,!, /orporate and Social responsibilit% o R..................................................................."

0!- Situation Anal%sis...................................................................................................4

0!, Internal Anal%sis................................................................................................. 4

2.1.1#$%L&s Strenths...........................................................................................4

2.1.2 #$%L&s 'ea(nesses......................................................................................)

0!0 1+ternal Anal%sis................................................................................................)

0!0!, /onsumer Anal%sis 2 /haracteristics 3 .ehavior ....................................................)

2." *om+etitor Analysis.......................................................................................,

2.".1 $ran- Leel..............................................................................................,

2.".2 %n-ustry Leel..........................................................................................,

2."." orm Leel...............................................................................................

2.4 PSAL Analysis.............................................................................................3

4!- (roblem Identiication........................................................................................... 10

5!- Alternatives........................................................................................................115!, Alternative Identiication..........................................................................................11

6!- Anal%sis o Alternatives.........................................................................................12

6!, Anal%sis o Alternative -,...................................................................................12

6!0 Anal%sis o Alternative -0........................................................................................1"




7!- Recommendations................................................................................................14

8!- Reerences.......................................................................................................... 14

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#$%ective

9he objective o our eort is to careull% stud% the given case o /herr% .lossom Shoe polish

compan% and to identi% the dierent #a%s to improve the e+pand the market and increase the

gro#th rate #hile at the same time remaining committed to keep the proitabilit% o the brandintact and also ensuring to guard itsel rom an% more market share losses similar to the ones that

had occurred earlier!

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1&0 'ac!round of t(e Co"pany

/harles Mason and his brother Dan #ere born in /anterbur%$ later moving to 'ondon

#ith their amil%! 9he most amous shoes polish brand #as invented b% this duo

marking the beginning o a #hole ne# industr%!

In around ,8 the% started a small soap actor% in /his#ick! .% the beginning ,;-- the% called the

compan% the /his#ick Soap /ompan% and the% #ere making polish and soap #ith brands such as renchGs >oods$ )lass Mates$ )lass (lus$

)lasse+$ "omannGs$ Intima 'iasan 3 Intima .ide+$ Halia$ Haltron$ H?$ 'anacane

2

http://en.wikipedia.org/wiki/Air_Wickhttp://en.wikipedia.org/wiki/Air_Wickhttp://en.wikipedia.org/wiki/Calgonhttp://en.wikipedia.org/wiki/Calgonhttp://en.wikipedia.org/wiki/Calgonhttp://en.wikipedia.org/wiki/Cillit_Banghttp://en.wikipedia.org/wiki/Cillit_Banghttp://en.wikipedia.org/wiki/Dettolhttp://en.wikipedia.org/wiki/Dettolhttp://en.wikipedia.org/wiki/Dr._Scholl'shttp://en.wikipedia.org/wiki/Dr._Scholl'shttp://en.wikipedia.org/wiki/Durexhttp://en.wikipedia.org/wiki/French'shttp://en.wikipedia.org/wiki/Gavisconhttp://en.wikipedia.org/wiki/Harpichttp://en.wikipedia.org/wiki/Lemsiphttp://en.wikipedia.org/wiki/Lemsiphttp://en.wikipedia.org/wiki/Lemsiphttp://en.wikipedia.org/wiki/Lysolhttp://en.wikipedia.org/wiki/Lysolhttp://en.wikipedia.org/wiki/Morteinhttp://en.wikipedia.org/wiki/Morteinhttp://en.wikipedia.org/wiki/Mucinexhttp://en.wikipedia.org/wiki/Mucinexhttp://en.wikipedia.org/wiki/Mucinexhttp://en.wikipedia.org/wiki/Nurofenhttp://en.wikipedia.org/wiki/Nurofenhttp://en.wikipedia.org/wiki/Nurofenhttp://en.wikipedia.org/wiki/Strepsilshttp://en.wikipedia.org/wiki/Strepsilshttp://en.wikipedia.org/wiki/Strepsilshttp://en.wikipedia.org/wiki/Vanish_(brand)http://en.wikipedia.org/wiki/Vanish_(brand)http://en.wikipedia.org/wiki/Vanish_(brand)http://en.wikipedia.org/wiki/Veethttp://en.wikipedia.org/wiki/Veethttp://en.wikipedia.org/wiki/French'shttp://en.wikipedia.org/wiki/Glass_Plushttp://en.wikipedia.org/wiki/K-Yhttp://en.wikipedia.org/wiki/Air_Wickhttp://en.wikipedia.org/wiki/Calgonhttp://en.wikipedia.org/wiki/Cillit_Banghttp://en.wikipedia.org/wiki/Dettolhttp://en.wikipedia.org/wiki/Dr._Scholl'shttp://en.wikipedia.org/wiki/Durexhttp://en.wikipedia.org/wiki/French'shttp://en.wikipedia.org/wiki/Gavisconhttp://en.wikipedia.org/wiki/Harpichttp://en.wikipedia.org/wiki/Lemsiphttp://en.wikipedia.org/wiki/Lysolhttp://en.wikipedia.org/wiki/Morteinhttp://en.wikipedia.org/wiki/Mucinexhttp://en.wikipedia.org/wiki/Nurofenhttp://en.wikipedia.org/wiki/Strepsilshttp://en.wikipedia.org/wiki/Vanish_(brand)http://en.wikipedia.org/wiki/Veethttp://en.wikipedia.org/wiki/French'shttp://en.wikipedia.org/wiki/Glass_Plushttp://en.wikipedia.org/wiki/K-Y


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1&1 Corporate and Social responsi$ility of )'

With the rational thinking improving in customers all over the #orld and also #hen consumer po#er is

getting bigger and bigger the concept o /SR activities has become a mandator% actor or lots o major

pla%ers in the market!

R. has also ensure that this actor is met in there compan%! "ence globall% the compan% has initiated

signiicant number o /SR activities placing them at the (latinum status in the .usiness communit% /R

inde+ and in the /arbon Disclosure 'eadership inde+!

>e# o R.@s /SR programmes!

,! Save the /hildren

0! /arbon 0!-

4! .etter .usiness

5! R. 9rees

2&0 Situation Analysis

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9he eective case anal%sis is concerned #ith gaining right rame o understanding o a situation!

9his /herr% .lossom Shoe (olish case stud% is all about shoe care products$ its comple+it% o

issues makes it a diicult task or management to ind straight or#ard solutions to the problems

aced b% the R.I'! 9hereore it is necessar% to conduct an anal%sis o the situation across

ollo#ing main areas in order to develop an eective solution! In a general situation anal%sis it

emphasiCe on s%mptoms rather than problems and their causes!

,! Internal Anal%sis o an organiCation

0! 1+ternal Anal%sis eecting the organiCation

In this anal%sis #e are tr%ing to identi% the Internal and 1+ternal actors o /herr% .lossom that

are avorable and unavorable to achieve the intended organiCational objectives!

2&1 *nternal Analysis

An% given business management process starts #ith internal anal%sis! In this given scenario

internal anal%sis #ill enable R. to identi% its strengths and #eakness b% anal%Cing their

competencies!

2.1.1RBIL’s Strengths

I! ,st major shoe polish brand to the market

II! ,st to introduce the ke% products

III! &ver ,-- %ears@ 1+perience in shoe care business

IV! )enerations o .rand Image < /herr%= 2 9op o the mind brand recallV! Jualit% product and packaging

VI! Market 'eader in terms o Revenue in trade channelVII! 76K Market Share

VIII! )lobal (resence

IL! (roduct distribution through ll common channelsL! Well?structured sales orce

2.1.2 RBIL’s Weaknesses

I! 'imited (roduct penetration in rural areasII! tiliCation o limited resources or marketing

III! Does not concentrate shoe shops to market the product

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IV! Slo# in innovations

V! 'imited SH@s

VI! Weak product portolioVII! (oor IM/ Strategies

VIII! 'imited (romotional .udget

IL! (oor Marketing Mi+ Strategies

2&2 +,ternal Analysis

1+ternal anal%sis is also as important as internal anal%sis or an organiCation in order to identi%

the opportunities that are available in the market place in order to e+ploit and develop strategies

to minimiCe the eects o threats rom e+ternal environment!

Anal%sis o e+ternal environment can be divided in to three main areas!

I! Anal%sis o /herr% .lossom /onsumers

II! Anal%sis o /herr% .lossom /ompetitorsIII! Anal%sis o (1S9A' >actors!

2&2&1 Consu"er Analysis - C(aracteristics / 'e(avior

When anal%Cing consumers o /herr% .lossom shoe care products$ number o actors needs to be

evaluated in order to correctl% identi% their needs and #ants! 9hereore cherr% blossom must

ocus on characteristics and behavior o shoe care consumers!

2&2&1&1 C(aracteristics of Consu"ers

)enders characteristics 2 7-K o Males and emales are shoe polish users

Age characteristics 2 Age bet#een ,6?05 3 06?55 3 56?66

Age bet#een 06?55 %ear olds are highest shoe o#ners

70K o Age bet#een 06?55 %ears old are shoe polish users

Income 'evel ? S1/ A 3 S1/ . 3 S1/ /

.ehavior 2 .rand lo%alt%

)eographical 2 Northern India 3 Western India 3 1astern India and Southern India

2.3 Cometitor !nalysis

A competitive anal%sis is ver% much critical or an% business organiCation despite the industr%

the% operate! 9his is a critical part o the entire marketing plan and proper anal%sis enable

organiCations to highlight the actors that make companies product or service dierentiate rom

its competitors!

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9here are number o models available or anal%sis o competitors and in this chapter #e use ho#

level o competition model can be used to anal%Ce the competition aced b% /herr% .lossom!

When it comes to the level o competition there are dierent aspects o competition needed to be

evaluated careull% in order to determine the strengths and #eaknesses o competitors! In

general$ strengths and #eaknesses o competitors are based on assets and skills the% possess!

2.3.1 Bran" Le#el

9his is #here that competition bet#een /herr% .lossom brand and Hivi brand in the shoe?care

industr%! 9hose t#o are the onl% brands that are established as amous brands in the industr%!

9here are e# other small pla%ers too catering to the shoe care market$ but onl% on a regional basis %et cannot be considered strong brands in terms o their positions!

2.3.2 In"$stry Le#el

Industr% level competition is #here the competition #ithin the shoe?care industr%! Since /herr%

.lossom #as irst to the shoe care industr% the% #ere enjo%ing the monopol% beneits and not

much competition is aced #ithin the industr% until Hi#i enters in to the shoe?care market! I #e

take #hole market in the shoe?care market in India these t#o pla%ers account or ;-K o market

share and number o regional pla%ers like Robin$ .illi and man% others share the balance ,-K o

market share and #ere active onl% local markets to enjo% their competencies #ithin the speciic

market!

2.3.3 %orm Le#el

When considering the orm level competition bet#een /herr% .lossom and Hi#i there are three

areas to be considered!

>orm competition is #here the product is oered in dierent composition or orms to meet

customer needs!

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.or" of roduct

When it comes to the >orm$ both /herr% .lossom and Hi#i oers the product in t#o ormats!

Wa+ polish and liEuid shoe polish ormat!

Wa+ Range o /herr% .lossom is onl% 8 compared to Hi#i@s ,!

'iEuid Range o /herr% .lossom is onl% 4 compared to Hi#i@s ;

9his sho#s that Hi#i oering #ide range o products to cater dierent customer segments in the

target market segments!

Co"position of roducts

When it comes to composition o the product Hi#i has a #ide range o products such as

/leaners$ Shampoos$ Sponge shiners$ .rushes$ Aerosols$ /ombo packs and (olish kits compared

to ver% limited composition o products #hich has onl% t#o /leaners and Sponge shinersB to

attract dierent markets!

9hereore Hi#i has notable advantage in the competition in the orm level competition compared

#ith /herr% .lossom!

2.3.4 Generic Level

)eneric level competition is #here that competitionamong product or service that are dierence

but provide solution or a particular problem or else enjo%ing the same beneits rom t#o

dierent products!

9here is no such generic product that can be identiied as a competitive to shoe?care industr% in

India!

2.& P'ST!L !nalysis

(1S9A' is simple and eective tool that can be used to anal%Ce ke% e+ternal orces #hich eect

an organiCation! 9hese orces can create both opportunities and threats or the organiCation

concern! 9hereore (1S9A' anal%sis #ill help R.I' to e+ploit the market opportunities and

reduce the causes o threats better than its competitors do!


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2.4.1 Political Factors

(olitical actors are all about ho# and to #hat degree that the Indian government intervenes in

the econom%! )enerall% this includes government policies$ political stabilit%$ trade polic%$ ta+

polic%$ labour la#$ environmental la#$ trade restrictions and etc!

Although these actors aect greatl% in an% business organiCation$ in this given scenario it is not

clearl% noted an% o the above is inluencing in this market!

2.4.2 Economic Factors

nder economic actors there are number o areas must take into consideration! 9his includeseconomic gro#th$ interest rates$ e+change rates$ inlation$ disposable income o consumers$ 1tc!$

Again according to the acts available in the situation$ there is no impact rom economic actorsto shoe?care industr%!

2.4.3 Socio-Cultural Factors

When it comes to the Socio? cultural actors$ this includes shared belies and values o

consumers #hich have a great inluence on consumer behavior! >ollo#ing actors have a great

eect on the shoe care industr%!

/hanging lie st%le o Indian consumers 2 'eisure has become ashionable and sports shoes

become ashion$ (eople used to #ear sports shoes to #ork as #ell as casual occasions!

/hanging Shoe /are habits among consumers

)ro#ing popularit% o ne# shoe t%pes 2 )ro#ing customer acceptance o non?leather shoes

2.4.4 Technological Factors

9echnological actors inluence in man% #a%s in the business operation$ (roduction$ distribution

and communication #ill have a great eect on inding best #a%s to enhance the eicienc%!

2.4.5 Environmental Factors

It is becoming a trend in all societies in the #orld$ that the% are more concern than ever beore on

environmental actors! Scarcit% o ra# materials$ pollution targets$ doing business as an ethical

and sustainable manner has signiicant importunac% or an% organiCation!

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2.4. Legal Factors

In general conte+t$ legal actors include health and saet%$ eEual opportunities$ consumer rightsand la#s$ product Eualit% and product saet%! It is obvious that organiCations must adhere to the

legal reEuirement o environment in order to operate successull%!

Ater proper and s%stematic (1S91' anal%sis #ill help R.I' to identi% the strengths and

#eaknesses that create rom e+ternal orces #hich be%ond the control o R.I'!

&pportunities: ,untappedmarket rural market

0 9ie?up #ith shoe manuacturers$ ashion outlets$ corporates F schools

4Develop ne# products to meet changes in shoe care segment

9hreats: ,Substitutes or leather shoes

0Increase o customer preerence on cheap polishes

&0 ro$le" *dentification

In an% /ase Anal%sis it@s important to identi% the true root cause or the real problem or the current

situation or dra#back o the organiCation is acing!

Most o the time there can be man% problems #hich management identiies as problems #hich are

actuall% s%mptoms o the root cause or the real problem!

9he true problems are the conditions or situations reEuiring solutions! Identi%ing and listing s%mptoms

earl% tends to reduce the temptation to label s%mptoms as problems!

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RecogniCing s%mptoms also important as s%mptoms are indicators o problems Fit #ill lead us to#ards

the real problem! "o#ever solutions should be provided to real problem but not or the s%mptoms!

Anticipating to identi% the problem o /herr% .lossom #e use the Ishika#a@s diagram ishbone

diagramB!

Main problem o the compan% is declining the market share! "o#ever there are man% causes aected to

market share decline! "ere #e can identi% above cause as the major reasons or decline market share o

/herr% .lossom!

4&0 Alternatives

4&1 Alternative *dentification

1& Strategic S9(!

Identi% dierent segments in the market$ dierent trends$ and international inluences and

target them in dierent #a%s and position the brand in dierent #a%s!

2& (roduct F 'ine e+tension to increase SHs F opportunit% #indo#

.eing on alert #ith opportunit% #indo# and having comparativel% a large number o SHs!

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9hough some signiicant changes had taken place in consumers preerences and habits in

,;;-@s$ onl% the Hi#i #as able to grab that opportunit% and adapt #ith those changes #hile

/herr% #as just selling their products as usual closing its opportunit% #indo#! In range

comparison o /herr% and Hi#i$ 64 SHs have been launched b% Hi#i #hile /herr% comes

#ith ,0!1+tensive varieties in product portolio ma% lead the customer convenience

& Ne# (romotional strategies 2

Advertising campaigns #ith celebrities!

1stablish an M& #ith a shoe compan%!

9he trend laid on shoe care market in mid?0--7$ #as a d%namic$ oungsters driven and more

to sport% t%pe one! .% identi%ing this Hi#i used M!S!Dhoni the ne# cricket hero or their ne#

advertising campaign! Hi#i made an arrangement #ith .A9A to be present in all their outlets

and gained 50K market share!

4& 1nhance the market penetration #ith high retail margins!

/herr% had deeper penetration and present in over a one million outlets across the countr%!

6-K o market contribution and 00K o categor% sales respectivel%! Hi#i captured a big share

o /herr%@s market b% giving a big relie to their retailers b% the margin$ and also highadditional discounts!

& More investments on innovations!

C(erry changed the ormula o #a+ polish and introduced #a+ #ith special oil or the leather

shoes!

iwi introduced polish or suede and #hite shoes #hich #ere almost noncompetitive!

Introduction o ne# t%pes o shoes and shoe materials in the Indian oot care market Sport

shoes 3 sneakersB signed the need o more innovations!

Criteria3

Criteria riority Description

-, Revenue 1ssential Increase b% attracting ne# users

-0 Market share "igh 1+pect to capture the lost market share

-5 .rand image "igh 1nhancing Reach and the Visibilit%

-6 /ompetition "igh se competencies to overcome competition

&0 Analysis of Alternatives

O /riteriaMarket

shareRevenue

.rand

image/ompetition 9otal

, Strategic S9( LL LL LLL LL -;

0

(roduct F 'ine

e+tension to

increase SHs F

opportunit%

#indo#

LL L LL LL -8

4(romotional

StrategiesLL LL L LLL -

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51nhance the

Market (enetrationLL LL L LL -8

6Invest on

innovationsL L L LLL -7

Scale? LP'ess important ,B

LLPImportant 0B

LLLPhighl% important 4B

&1 Analysis of Alternative 01

Strategic S9( is to identi% the market and to properl% identi% suitable segments o it and then to

pick the most proitable3suitable segment and to target the product$ and then to position the


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9hough this is ollo#ing a competitor strateg% ater all$ ater such a marketing campaign /herr%

could also have an understanding #ith shoe outlets and companies manuacturing them in order

to make their brand visible to the public!

& Analysis of Alternative 04

/herr% has not being ver% good in taking their product to the regional level! .ecause o this

reason /herr% could use a much more eective market penetration to ensure that their product

has reached each and ever% consumer!

Secondl%$ it is visible that a proper distribution channel is vital or the success o this penetration!

"ence to make it more eective /herr% could give a signiicant retail margin to motivate

distributors to sell their product!

&4 Analysis of Alternative 0

As HIWI India had been the innovation hub or the south Asian market$ it has proven ho#

important it is to ensure that ne# products are innovated to cater the ne# market as the trends

change drasticall% #ith the open econom% and the updating thinking patterns o the people!

6&0 )eco""endations

According to the careul evaluation o alternatives based on the criteria used$ We can identiied the best

alternative as strategic segmentation$ targeting and positioning /herr% .lossom products among target

customers to recap its market share!

According to the statistics given in Anne+! 7$ in the %ear 0--6 most number o shoe o#ners are belong tothe group$ age bet#een 0-?55 and it comes to 70K o the shoe polish users! 9hereore strategic

identiication o the segment$ 9arget this group #ith appropriate marketing mi+ strategies and positioning

in this group #ith the product match position strategies to attract this group must be the prime objective!

We urthermore suggest strategic S9( is the best alternative since their main competitor$ HIWI had

proven to the market that proper S9( to#ards %oung consumers has #orked or them ver% #ell! In the

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other hand /herr% .lossom had not used an% sort o an S9( so ar though the% are going to carr% out a

marketing research no# ater a signiicant amount o ,-- %ears being in the market!

.ecause o all these acts ater anal%sis the alternatives #e suggest that strategic and a sound S9( is the

best alternative!

&0 )eferences

We have used e# reerences #hen #e tried to identi% and e+plore more and more o /herr%

.lossom Shoe /ompan% and the due credit is given to them or sharing all the inormation #ith

the public!

No Due credit or the Author 'ink

-, Mr! David (ratt

http:33###!blancoandbull!com3boot?

cleaning3the?cherr%?blossom?stor%3

-0 Wikipediahttp:33en!#ikipedia!org3#iki3ReckittQ.enckiser

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