Improving Positioning In The Rural Markets Commerce Essay

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Eveready Industries India Ltd. a 103 year old company is known for its distribution strength and People Development. Eveready Industries India Limited is one of India's most reputed FMCG companies. The company has a portfolio comprising dry cell batteries (carbon zinc batteries, rechargeable batteries and alkaline batteries), flashlights (torches) and packet tea. It has recently forayed into the mosquito repellant industry under the brand name, 'Poweron'.

Eveready is India's largest selling brand of dry cell batteries and flashlights (torches), with dominant market shares of about 46% and 85% respectively.

Eveready is the world's third largest producer of carbon zinc batteries, selling more than a billion units a year. Its carbon zinc batteries dominate the Indian market with a complete range for all equipment types.

The turnover in the financial year 2005-06 for Eveready Industries India Limited was approx. US $ 176 million. Eveready celebrated its centenary year in India in 2005. The new tagline "The Next Century of Power" affirms Eveready's commitment to being technology leaders well into the future, evolving with consumers to meet their changing needs. From small beginnings with an import consignment in 1905 of Rs 500, Eveready today dominates the Indian market and stands for portable power and light to millions of consumers.

TQM

Eveready has always pursued and advocated the best prevailing management practices.

The team is alert to changes in the domestic and international markets resulting in higher standards of excellence. When the TQM wave from Japan hit India in the mid 80's, the organization planned the realignment of its management system with focus towards customer satisfaction.

The acceleration of the 'Change Management' was visible around 1991. The organization was restructured and a Basic Training Program (BTP) launched for deployment & implementation of TQM practices.

Today TQM is institutionalized in all manufacturing units with the quality management system (QMS) based on ISO 9000 standards following the TQM guidelines of ISO 9004.

Further enhancing its competitiveness and product reliability, Eveready initiated World Class Maintenance (WCM) management system in1997, based on the philosophy of focus on defect and variability reduction through planning of maintenance to keep the production equipment in "As designed condition always".

Product Mix

Batteries

Torch

Packet tea

CFL

Coils

Vaporizer

Dish wash

Pencil AA

Brass ( Jeevan sathi Range)

TEZ

EL Range

8 HR

60(45+15) NIGHTS

DW-100

Pencil AAA (Remote Battery)

Aluminum

JAGO

PL Range

10HR

DW-200

D size(Big size Battery)

Plastic

CLASSIC

Metal Halides (Industrial)

12HR

DW-400

C size(Medium Size Battery)

Led Torches (Digi Led)

GOLD

Halogens

Rechargeable Batteries &Chargers 700 mAh

Rechargeable Torch

Rechargeable Batteries &Chargers 2100 mAh

Recharge Batteries - AAA - 600mAh

Cordless Phone Batteries - T107,110,109

THEORETICAL FRAMEWORK

Eveready Industries has enjoyed a great monopoly till the recent past. Today the company is facing tough competition since there are many competitors in the market. It has been following an old system of working. Now in order to maintain its cash flow, I think Eveready should consider rural markets as in these areas the competition is less and Eveready should be the first one to dominate these areas so that their cash flow remains normal or in fact better.

SWOT analysis:

Eveready India Pvt. Ltd has a wide range of products as seen in the company's product mix. This means that if one of their products fails in one region, there are other products which may save the company which is a huge strength of Eveready. The effective distribution channel also helps Eveready to certain that its products are reaching to the people. The brand name of the company is well established that people can avoid it. If the company launches a new product, it is most likely to be accepted by the people because of its brand image. Eveready enjoys a good competitive advantage over its new competitors as its brand name is already set in the market in and around India. It is more likely to maintain its monopoly in the Indian market because of its presence in the country for more than hundred years.

Though the company has quite a few strengths, they do have weaknesses as well. The company follows an outdated system of work which includes excess of paper works which wastes energy and time when the right technology is just next door. Eveready is unable to cope up with the market changes because of its wide spread. As the competition is becoming tuff, the market share of the company is going down rapidly as it is being shared by its different competitors. Due to less cash flow unlike its previous years, the company is saving on advertisements which is not helping them in any way as the people are not informed of the company's new products and prices. The company has is failing in adopting new technologies whereas its competitors are entering the market fully equipped with the latest technology which gives them economies of scale as well as better quality products. There are no unique products produced by Eveready India PVT. Ltd. The products they make has nothing extraordinary than the product of its competitors.

There are some opportunities for Eveready that if made use of can get its monopoly back in the market. There are still major portions of the rural segment to be tapped by Eveready. If it does so, the company will increase its customer base as well as brand name. There are loads of new technology is available which if utilised, will give the company a lot of advantage over its competitors with its high quality product and already established brand name. The company can also start more advertisements to maintain its brand name and loyalty. Company can also invest in R&D to expand its product mix and target all kinds of customers. In some of the rural areas, it is believed that if the tea packet is red, it means that the tea is better. As Eveready sells its tea in green packets, it may think on changing the colour of the retail packets from green to red to increase its sales. Eveready can easily takeover small companies ruling in the rural areas. Some areas are not feasible for the company to sell goods. So I think they can develop E-marketing where they can sell their goods to any person in the world and can reach them in no time. Eveready can also think of developing products which have alternate usage such as torches which can be used in the dark and also help in detecting counterfeit currency.

After a list of opportunities, the company needs to be aware of the threats to it. The competition is increasing day by day and the consumers are getting greedy to get the best quality product in the least price and all the companies are fighting to get to that stage keeping their profits in mind. A new player in the market maybe a threat as he will be aware of the current market and will have the latest technologies on his side to compete with. Eveready should also be cautious of its competitors that it does not take away its biggest customers. All the companies fight for the price as the least price takes it all. So Eveready also need to assign competitive prices to survive in any market. If the competitor has a superior access to channels of distribution, then their will products would easily reach the people and faster too. So Eveready should also take care of its distributing channels to become successful or remain one.

Strengths

Wide product range

Effective distribution channel

Known brand name

Competitive advantage

Familiar with the Indian market because of its presence for more than hundred years.

Weaknesses

Outdated system of work

Unable to cope up with the changes

Decreasing market share

Excess of paper works

Decreasing advertisement

Failure to adopt modern technology

Undifferentiated products

Opportunities

Still major portion of rural segment to be tapped

New technology is available

Can use advertisements to utilise its brand name

Research and Development to expand product mix

Change packets green to red.

Can takeover small companies.

Developin e-market

Product with alternate useage

Threats

Increase in competition.

New player in the market

Rival technology with improved version

Competitor having a strong hold on its biggest customers

Price war

Competitor has superior access to channels of distribution.

PEST analysis:

Political

Environmental regulations

Tax policy

Trade restrictions

Tariffs

Political stability

Employment laws

Pressure groups

Economical

Exchange rates

Economic growth

Interest rates

Inflation rate

Social

Health consciousness

Career attitudes

Emphasis on safety

Population growth rate

Advertising and publicity

Technological

Automation

R&D activity

Rate of technological change

Technology incentives

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