'All Out' - Marketing a Mosquito Repellant

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Themes: Marketing Mix
Period : 1989-2003
Organization : Karamchand Appliances Private Limited
Pub Date : 2003
Countries : India
Industry : Home Appliances

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Case Code : MKTG060
Case Length : 9 Pages
Price: Rs. 300;

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The Growth of All Out Contd...

By then, it was clear that the company was treating the vaporizer as a loss leader, to promote the sale of its refill containers. The 'deadly exchange scheme' launched in 1999, gave customers the chance to exchange a mat machine of any make for a Pluggy for just Rs 27. The response to this scheme was phenomenal with the company reportedly selling over half a million pieces in September 1999 alone.

Meanwhile, GSLL, which had launched its own vaporizer in 1996 under the GoodKnight brand, was struggling to maintain its market share in the segment after its initial success. GSLL launched a 60-night refill pack priced at Rs 63, against All Out's 45-night pack at Rs 54.

However, the move did not prove to be very successful and GSLL had to support the launch by introducing promotion schemes. After KAPL's 'deadly exchange scheme,' GoodKnight's share decreased by 9.3% in volume terms between September 1999 and February 2000.

GSLL then reduced the price of its vaporizer, but this too had little effect on sales. KAPL's distribution network consisted of around 120 distributors across the country. Of the 900,000 outlets across the country, that sold repellants, KAPL was available in only 18%.

As this was significantly lower than the 55% figure for R&C and 54% for GSSL, KAPL was working towards increasing its presence.

What Lies Ahead

According to industry reports, the Indian mosquito repellant market was expected to grow rapidly in the early 21^st century. Analysts said that with improvement in literacy and health consciousness in rural areas, the use of mosquito repellants was expected to increase substantially in these areas.

As the per capita usage of repellants was very low in the country, there was considerable scope for the market to expand. However, increasing concern over the harmful effects of the chemicals in mosquito repellants on the health of human beings was expected to be hamper growth.

Allethrin, the chemical used in most of the repellants, was reported to be very dangerous, being potentially harmful to the eyes, skin, the respiratory tract and the nervous system. A study done on rats by the Industrial Toxicology Research Center⁶ showed that the rats suffered brain, liver and kidney damage after prolonged exposure to liquid mosquito repellants.

Research in Sweden and the USA had also shown that long-term and persistent use of products containing Allethrin could cause brain cancer, blood cancer and deformity of fetuses.

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6] An institution in Lucknow, Uttar Pradesh involved in conducting research in toxicology and hazardous chemicals.