Case Name :      Vibhava Chemicals: Pursuit of a Cleaner Space

Authors :           N Ramesh, N. Barnabus

Source :             Ivey Publishing

Case ID :            W12904

Discipline :        Marketing

Case Length :    15 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

In April 2011, Vithal Gambhir, the marketing director of Vibhava Chemicals (Vibhava), an entrepreneurial venture and leader in the black phenyl category in the home cleaning agents (HCA) market in South India, was faced with a marketing challenge. A slew of multi-national corporation (MNC) brands in the emerging new category of specialty cleaning agents had whittled down Vibhava’s share of the traditional black phenyl category by 50 per cent over the previous eight years. The marketing efforts of the MNCs had also led to a gradual transformation of the HCA market, expanding and segmenting it in terms of applications (e.g. floor-cleaning agents and toilet-cleaning agents) and benefits (e.g. disinfecting, cleaning and deodorizing). As a result, Vibhava’s leading brand, ‘Black Belt’ black phenyl disinfectant, began losing ground in the market. Vibhava had successfully responded to this decline by launching Ozone, a pine-oil-based floor cleaner, in 2003. Positioned as an herbal, eco-friendly, deodorizing floor cleaner, Ozone managed to keep out of the way of Domex, the leading MNC brand of disinfecting floor cleaner; however, during the last couple of years Domex had been available in many variants serving many segments and the market became flooded with both MNC and established Indian brands. While the sale of Ozone rose in absolute terms, Vibhava’s share in the growing home cleaning market dropped from 25 per cent in a predominantly traditional product market in the 1990s, to 11 per cent in the transformed market of 2010. Gambhir now faced the daunting challenge of meeting an ambitious sales target of INR1 billion for 2011/12, which was double the sales of the previous year.