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'ALL OUT' - MARKETING A MOSQUITO REPELLANT

            

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INTRODUCTION

MAKING WAVES

THE GROWTH OF ALL OUT

WHAT LIES AHEAD

According to industry reports, the Indian mosquito repellant market was expected to grow rapidly in the early 21st 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 Center [1] 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.

There were also doubts about the efficacy of mosquito repellants. In 1998, studies conducted by the Malaria Research Center (MRC [2]) found that none of the leading brands provided 100% protection against mosquitoes. Also, in the 653 households surveyed in eight cities, 193 people complained of various health problems linked to mosquito repellants. They suffered from breathing problems, headaches, eye irritation, skin rashes, suffocation, itching, bronchitis, cold and cough, asthma, nausea, throat and ear pain. Of the 286 doctors questioned, 50% reported cases of acute toxicity following the use of these repellants.
Though these problems concerned the industry as a whole, specific complaints against All Out had also begun to surface. All Out's advertisement in 2001, claiming that the brand had 'Extra MMR' had been severely criticized. The Director of the Central Insecticide Laboratory (CIL [3] , Dr V Ragunathan said, "The advertisement was designed to sound as though MMR was a wonder substance that would eliminate the mosquito menace. In reality, the term is just an abbreviation for 'mosquito mortality rate'. If you look at the product and packaging, there is no mention of what exactly it contains. It contains a variant of a toxic compound called d-Allethrin, and 'Extra MMR' would only mean more toxic components."

All Out also faced criticism for some other aspects of its advertising strategy. Reports indicated that television viewers were unhappy about the brand's advertisements before every song, dance and fight sequence in all the films being telecast. Experts said that now that the brand was firmly established, repetitive advertising was not advisable, and could even prove counterproductive.

KAPL's biggest competitors were large multi-product companies, with the financial muscle to introduce and sustain long and costly advertising and promotional campaigns. In spite of its success, KAPL remained essentially a single product company. With the product and the brand facing various problems, it was difficult to predict how long All Out would remain the leader in the vaporizer segment of mosquito repellants.

QUESTIONS FOR DISCUSSION

1. Analyze the reasons behind the success of All Out, commenting separately on the attention paid by KAPL to each element of the marketing mix. Why do you think players like GSLL were not being able to compete with All Out?

2. In the light of intensifying competition and the allegations of 'toxic hazards' in the mosquito repellant industry, do you think All Out would be able to maintain its success in the future? What steps can the company take to ensure that its market share does not suffer? Give reasons to support your answer?

ADDITIONAL READINGS & REFERENCES

1.   On the Mat, Business Standard, June 19, 1997.
2.   Srinivasan Vidya, The Killer Instinct, Business Standard, August 28, 1997.
3.   Singh Namrata, New Entrants Bite into Tortoise Mosquito Repellant's Share,
      www.expressindia.com, March 15, 1998.
4.   Pande Bhanu & Chandrashekaran, Chasing Pests and Competition, Business Standard,
      December 8, 1998.
5.   Singh Namrata, On the Mat-Prices Drop by 15%, www.expressindia.com, November 17,
      1999.
6.   Venkatesh M & Singh M Mayanka, Buzzing With Energy, A&M, April 15, 2000.
7.   O&M Gets Agency of Year Award, Business Line, September 1, 2000.
8.   The Arya Brothers, A&M, September 30, 2000.
9.   Mir Tariq, Heed the Buzz: Mosquito Repellants May Be Bad For You, Indian Express,
      December 26, 2000.
10. Thukral J Jyotika, Tortoise Loses Race, Market Share Drops to 12%,
      www.responseservice.com, March 2001.
11. Daksha Hathi, Mosquito Mats & Coils: The Real Story, Deccan Herald, June 3, 2001.
12. An Environmental Greenwash, Business Line, June 21, 2001
13. Saxena Madhu & Vajpeyi Roopa, Repellants That Kill Slowly, Tribune India, August 16,
      2001.
14. Sen Shunu, In Good Times, Not in Bad Times, Business Line, October 4, 2001.
15. www.indiainfoline.com
16. www.godrejsaralee.com
17. www.etinvest.com
18. www.equitymaster.com


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

[2] MRC, based in New Delhi is involved in malaria research.

[3] CIL was established by the Government of India under Section 16 of the Implementation of Insecticides Act, 1968. It functions as a referral laboratory for quality control of pesticides, besides carrying out pesticide residue analysis and investigations in medical toxicology.








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