7/29/2019 Flitt Case Study

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Situational Analysis

Product

FLITT (or, liquid insecticide) is a simple product that is cost effective and can be used to cover a large area

including habitats of insects like sewer-pipes, bathrooms, open spaces etc.

IndustryIndia has a hot and humid climate, with poor sanitation and drainage systems. As per research agency ORG-

MARG 95 % of the household in India had an insect and (or) pest problem. Institutional bodies in residential

complexes and the government bodies like municipality hired external specialist services for hygiene and

pest control services. Consumer expenditure on health goods and medical services had gone up from Rs.

1,052 billion in 2005 to Rs. 2,068 billion in 2010. Consumers who could afford private, convenient and

more effective measures go for open market insecticides. Hence it can be inferred that there is an

increasing demand for household as well as institutional supply of insecticides.

Consumer

Lifestyle:

Due to enhanced governmental, non-governmental, and corporate-media campaigns, there was widespread

awareness about malaria as well as several other insect borne diseases. Thus there was a growing inclination

towards health care & sanitation among rural & urban consumers. There is a higher propensity to use

branded products

Income:

The urban buyers, mostly middle-class families with double incomes and having growing disposable

incomes (Rs 41,773 per capita in 2009), were spending more towards better and healthier life.Hence it can

be inferred that, the spending levels on hygiene in urban & rural areas have considerably increased. The

rise in income of the rural poorer population, offers good opportunities for low-cost products and services.

Problem Statement

The lack of flexibility in the operations, the inconsistent product availability and the workload of other

products were cited as the key hurdles in the growth and management of this brand.

Objective

Increase the turnover Improve the supply chain

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Alternatives

Revitalize the brand. Introduction of the new product variants. Pruning the product line. Allow the product to die its natural death.

Decision

Revitalize the brand.

The central decision is to revitalize the brand because out of the various alternatives evaluated; this

alternative meets most the objectives and goes in line with the strategy of the firm.

Brief Action Plan

Product:

Only Aerosol & spray variants are available. The other formats that can be made available are coils, chalks

which are more effective and have huge potential.

Price:

The pricing strategy (i.e. cost +margin) is apt.

Promotion:

Push strategy should be adopted to boost the sales of the product which goes in sync with the introduction

of the dedicated sales team.

Thepackage sizes are more than 350ml in size. This does not cater to the need of the rural market. Thus

new package in smaller sizes should be made available. Also FLITT does not have a dedicated sales team as

compared to its competitors.

Place:

The existing distribution infrastructure would work as an advantage in favour of the brand.