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Vicco Laboratories: Designing a Strategic Road Map

CASELET, STRATEGY
Institute of Management Technology, Nagpur, 4 Pages
AUTHOR(S) : Anil Kshatriya, Assistant Professor, Finance & Accounting, Institute of Management Technology, Nagpur

Case Preview

Vicco Laboratories: Designing a Strategic Road Map

 

The late K V Pendharkar founded the Vicco Group (Vicco) in 1952. The promoters of the company aimed at introducing consumer products with traditional Indian medicinal properties. Over the years, Vicco carved a niche as a maker of distinct ayurvedic (herbal) products in India. The best-known products of the company today are Vicco Vajradanti tooth powder, Vicco Vajradanti toothpaste, ‘Vicco Turmeric’ skin creams and ‘Vicco Narayani’ pain relief cream (Exhibit I).

Presently, the Vicco Group’s annual turnover is INR400 crore and the sale of its Vicco Vajradanti toothpaste account for 4% of the country’s toothpaste market. Vicco  Turmeric was the first-ever herbal fairness cream launched in India. The pioneers of this fairness cream were successful in building the product’s brand image as  natural and ayurvedic product in the minds of its consumers.......................

Strategic Analysis of Vicco Products

Vicco used advertising methods that could not connect with the customers. This has resulted in missing an opportunity of creating an impact on the minds of the consumers. Vicco has failed to revive the brand image keeping in mind the priorities of young consumers. Over the years the product was stereotyped as a brand for ‘would be brides’. The target group has changed but Vicco failed to gain an insight on the needs of consumers. This approach saw Vicco losing its market share to HUL’s Fair &lovely. Competitors such as Cavin Kare have positioned their fairness brands to meet the growing demand for creative and modern outlook perceived by consumers of such products...........

Customers Mapping of Vicco Brand

The market for Vicco products is segmented into many categories. Mainly, the segmentation employed in case of Vicco is Demographic- based on age, gender and economic status, The Vicco ‘Vajradanti’ powder is targeted towards the low-income group and the semi urban to rural customers. Traditionally, these customers have been inherently using Neem twigs for ‘Datoon’ i.e., brushing their teeth. Therefore, it has been easier for the company to gain acceptance for tooth powder as a substitute for their conventional brushing.............

The Challenge of Brand Revival

Vicco as a brand could not resonate for a longer period with the Indian customers because of its stagnant approach. It was stuck with its traditional communication for several years without upgrading itself in accordance with the changing times. It has lost its premium status of being an innovative company offering herbal products to consumers..........

Exhibits

Exhibit I: Products from Vicco Laboratories

Exhibit II: Major Players in the Herbal Products Market

Teaching Note Preview

Vicco Laboratories: Designing a Strategic Road Map

 

Synopsis

This caselet is about the challenges faced by Vicco (Vicco) Laboratories, a veteran ayurvedic products (herbal medicinal) brand from India. The brand is losing its significance in Indian markets due to issues like incorrect positioning and lack of clear marketing strategy. The caselet is apportioned into four sections:

  • • About the company
  • • Strategic Analysis of Vicco Products
  • • Customers Mapping of Vicco Brand
  • • The Challenge of Brand Revival

 

Expected Learning Outcomes

  • • To understand how to develop marketing strategies for reviving a brand
  • • Competitor analysis under changing market scenario

 

Case Positioning and Setting

  • • The caselet can be used at both undergraduate and post-graduate level courses mainly for subjects like Strategy Formulation, Strategic Brand Management and Strategic Marketing
  • • This caselet is best suitable to be taught in a single session of 90 minutes. The caselet can be used to demonstrate use of Segmentation, Targeting and  Positioning (STP) approach to analyze potential revival of an established yet dormant brand

 

Assignment Questions

  • I. Discuss the factors, which have led to sluggish growth and loss of market share for brand Vicco and design a new Segmentation, Targeting and Positioning (STP) approach for the brand.
  • II. Carry out competitor analysis using the Ansoff ’s Matrix to discuss the position of brand Vicco as compared with its market competitors.
  • III. .................


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Abstract

Best Selling Caselet

This caselet enables a discussion on the challenges faced by Vicco (Vicco) Laboratories, a veteran ayurvedic products (herbal medicinal) brand from India. The brand is losing its significance among Indian consumers due to issues like incorrect positioning and lack of clear marketing strategy. An unprecedented rise of several medium and large players in Indian herbal product market has posed a severe threat to Vicco’s traditional business model. Rapidly decreasing market share and falling  revenues for its flagship products is a cause of concern for top management of the group. In order to regain its lost glory the company needs change its strategic  direction and revive its marketing strategies to survive the onslaught of competition from bigger players like Patanjali and Dabur. The caselet evaluates possible options available to overcome dilemmas faced by the management of Vicco.



Pedagogical Objectives

The caselet is structured to achieve following teaching/learning objectives:

  • To understand how to develop strategic roadmap for reviving a traditional brand
  • To conduct a competitor analysis under dynamic market scenario

Case Positioning and Setting

This caselet can be used at both undergraduate and post-graduate level courses mainly for subjects like Strategy Formulation, Strategic Brand Management and Strategic Marketing



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