All Out.pptx
- 2. Macharoen ka yamraj Allout
- 3. This segment is characterized by low competition & high consumption. The mosquito repellents market is valued at Rs.1600 corers & growing at 15% annually KAPL’s All out created a new segment for mosquito repellants. With in a decade, with a total market share of 60% it has become a market leader. Major competitors for ALL OUT were corporate giants such as GSLL & HLL with strong, established brands such as Goodknight, jet, Tortoise, Baygon, & Mortein, amidst stiff competition.
- 4. Arya brothers with the technology of Japanese Earth chemical Co. Ltd. Launched in April 1990 in Mumbai. KAPL hired add agency such as HAT & other one of the best creative agencies. KAPL designed there own add. KAPL advertised on VCD’s , TV shows, FM radio & test cricket commentary on All India Radio(AIR), to communicate in cost-effective manner. Twin pack, Deadly offer, All Out’s 45-night pack at Rs 54.
- 5. 255 species of mosquitoes and spreading diseases like malaria, dengue fever, yellow fever etc. Alternatives to household repelling methods are various mosquito repellents like mats, coils & vaporizers. By mid 1990s, vaporizers had attained a market share of 5% dominated by KAPL, with Rs.253 million in 1996-97.
- 6. 16.4% - urban areas 22.6% - metros 6.9% - rural areas
- 7. Mats – 51% Coils – 21% (first brand launched ‘TORTOISE’, market leader in this segment with 67% market share) Vaporizers – 7%
- 8. 1600 crore market growing at CAGR of 15%, low competitive market with more consumption. 54 manufacturers with 72 brands. Awareness about mosquito diseases among people leads to the growth of this market showing positive sign for manufacturers, entrants & existing players. Karamchand Appliances Private Ltd. (KAPL) company’s brand ALL OUT (liquid vaporizer), a 4billion market segment in mosquito repellents. Market leader with 69% market share in 1999. It borrowed its technology of vaporizer from Earth Chemical co., Japan by investing in manufacturing the components of product & began developing kep components at its factory in 1989.
- 9. The competition in the mosquito repellent industry just got tougher with the launch of newer forms of repellents like personal sprays and gels Goodknight Jet Tortoise Baygon & Mortein
- 10. Bayer Chemicals Balsara Hygiene Tainwala Baygon spray Odomos(cream) Casper brand(mats & coils) Baygon power mats Baygon knock out
- 12. Creams: these are application based and have to be applied on the body and Indians normally averse to suck creams and lotions (“unless it is a beauty product) its odour is also not that good. Coils: this was a modification to the Burning of incense sticks, fumigation using Neem leaves; it reduces lot of smoke and people have suffocation sensations; burning eyes. Mats: these were a big hit but; as a new segment of vaporizer was created which is much superior & is more effective; the mats lost the share.
- 13. Be aware of the following factors that can lower repellent effectiveness: Use of sunscreens Dilution by rain or swimming Absorption into skin Quick evaporation due to wind and/or high temperatures
- 14. GSLL (market leader in Mats seg. With 68% Share in 2000) Rickitt & Coleman (2nd largest player in coils seg. After Tortoise) HLL Jet fighter (1997) Mortein Raid Jet Jumbo (2000) Mortein King Attack Goodknight Jumbo (1999) Mortein Red Goodknight Instant Goodknight Smokeless Banish (mats) Hit (aerosols) Hit lines (chalks) Mosfree (lotion) Hexit (spray) Goodknight (vaporizer)
- 15. In 1996-97, with 40% market share of vaporizers & increased market size In 1999, gone down to 21% share lending 19% to ALL OUT) GSLL launched 60-night refill pack at Rs.63 against ALL OUTs 45-night pack at Rs.54, but could not be successful. Decline in Goodknight’s share by 9.3% in volume terms between sept.1999 and feb 2000. Then, GSLL reduced the price of vaporizer, but got little effect on sales.
- 16. Catchy Brand name for all segments of people Well-known packaging from Hyderabad, A.P Advertising by Avenues, one of the best creative agencies in India(‘ALL OUT for modern mosquitoes, baseline)
- 17. Advertising by HTA( brought humor to draw attention) Own advertising….using animated frog eating mosquitoes, later with a man competing with frog ( costed-Rs.50,000) Advertisements on videocassettes of Hindi movies in a big way( they justified for being called as ‘down-market’ by saying that these cassettes were sold 20times in grey market- costs fraction of T.V ads)
- 18. Advertising in evening news prog on FM radio & through state-owned AIR in test cricket commentary in a cost-effective manner. On T.V, sponsored for news programs than other costly progs. Sponsored during dance/fight sequences in siticable & doordarshan(4-5times)
- 19. (Matsushita electronics) model : Rs 225 Cord model (1994) : Rs 135 Pluggy model (1995) : Rs 90 Twin pack (offering pluggy & cord model) (1996) : Rs 135 Pluggy & refill pack (1998) : Rs 99(‘deadly offer’ deal, indicated a loss in vaporizers) Exchange offer for mat machine with pluggy (1999) : Rs 27 Extra MMR (2001)
- 20. The increased competition also rationalized the price of vaporizers. Companies began to lower the price of the vaporizers ( captive product pricing) and gain the margins by selling the refills. What is interesting about the marketing of All out is the strategy of using animation in their advertising. Besides the consistent using of the jumping frog, the brand also used animation extensively in their advertising.
- 21. Right now All out have the slogan " Macharoen ka Yamraj " . The brand also uses the acronym MMR to differentiate itself from the competition. MMR stands for Mosquito Mortality Rate. All out claims that it has more MMR than the rest of the competition. Aggressive marketing has made All out a pioneer in creating the vaporizer segment in India. The brand also showed that a small company can create and lead a new category through smart aggressive marketing.
- 22. 120 distributors across country. Of 90,000 outlets for selling repellants, KAPL was available in only 18%(16,200). R&C with 55% & 54% for GSSL
- 23. Illiteracy & less health awareness in rural areas Increasing concern over harmful effects of chemicals used in mosquito repellants on health of man. Reports by researchers(MRC), doctors across the world about the usage of harmful chemical, allethrin in liquid repellants cause breathing problems, cancers, skin diseases, itching, asthma etc.
- 24. Doubts about the efficacy of mosquito repellants as no brand gives 100% protection against mosquitoes. Poor advertising strategy as said by critics Extra MMR i.e. bringing in additional toxins like d-Allethrin in product Disturbance caused to the viewers due to continuous advertising in between songs, fights & dance.
- 25. All Out just does not do what it claims, i.e. drive out/ kill mosquitoes. First things first, the ’60’ nights refill will last max only about 40 nights, that too with the regulated (lab-rested) 8 hours usage per night. So in reality a 45-night refill lasts max 30 nights, so you are not really getting the value for money you deserve.
- 26. Secondly is the fact that the mosquitoes have become resistant to it... after about 6 months of usage mosquitoes happily fly around, buzzing and biting us often at night (ouch!). Mosquito’s have gotten immune of this all-out. Thirdly is the quality control problem... Also the machines seemed to die out in a year or so.
- 27. Competition from multiproduct companies with good budget Duplicate brands came up using adulterants affecting the ALL OUT brand Issues related to health awareness popping up. Problem in sustaining its product demand in the market Power cuts in rural areas affects its sales
- 28. Health issues Quality effectiveness is low. Toxic effects of the chemicals used.
- 29. Listing out of effective contents of product Innovative Advertising to brand themselves as the best mosquito repellent with less harmful side effects
- 30. Use of substitutes for d-allethrin chemical toxin which is less toxic Conducting awareness programs on mosquito diseases like dengue and chicken guinea and promoting mosquito vaporizers.
- 31. All Out should communicate to the customers in terms of health safety. Advertising concept should be changed It should come out with new innovative ideas to sustain in market as a leader. It should concentrate on rural market for high profits.