Marketing Strategies on Case
The company is currently experiencing declining sales volume due to a stiff competition in the market.
Customers are switching brands based on television commercials. Since the arrival of cable television in the terai region in 1997 ,the companies like HLL , Nirma ,P&G,Tomco started advertising their products heavily. The products include both detergent powder and detergent cake. HLL was focusing on ” SURF” detergent powder and “WHEEL” detergent cake. TOMCO was promoting economy detergent powder called “OK”.
P & G was test marketing Arial microsystem. Nirma was also doing well in detergent cake and detergent powder segment. Decreasing sales volume and lower product demand has lead to an overall decrease in net profits. Moreover , the cost of underutilization of plant capacity has eaten into the space of total cost per unit of soap produced. Therefore ,the company is not being able to enjoy the benefit of lower cost of production than its c