06-12-2012, 04:28 PM
MARKETING MANAGEMENT BETA HOUSEHOLD APPLIANCES LIMITED
MARKETING MANAGEMENT.doc (Size: 25 KB / Downloads: 25)
BETA household Appliances Limited (BHAL) is a small-scale manufacturer of household appliances. The firm has successfully negotiated a technology tie up with a leading U.S. company which manufactures toasters, mixers, electric irons, oven grills etc. The company thinks of marketing its products under the brand name Lady help in India. The Indian industry has established players like Philips, Bajaj, Sumeet who have sold their products through aggressive advertising and promotions whereas the small-scale firms have traditionally used dealer incentives to sell their products.
SUCCESS STORY OF NIPPO
Navin Desai, a fresh Chemical Engineer, developed a new detergent during his M.Tech.course. Upon passing out he invested a small capital to start manufacturing and selling the detergent under the brand name ‘Nippo’. Coming from a middle class family himself Desai decided to price his detergent much lower than the other detergents available in the market at that time. His pricing strategy paid rich dividends and ‘Nippo’ became an instant success. Using his newly acquired financial strength Navin Desai developed a premium quality bathing soap with a unique colour and perfume combination. Although the cost of price of this soap was itself high, Navin again priced it substantially lower to comparable products in the market by maintaining a low profit margin against his Marketing Manager Ashok Jain’s advice.