All Out case Study

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All Out case Study
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Background

• All Out launched in April 1990 in Mumbai.
• All Out is a Liquid Vaporizers introduced by
  Karamchand Appliances Private Limited (KAPL)
• Within a decade of its launch, All Out
  established itself as the market leader, with a
  69 percent market share in 1999 in vaporising
  segment
• KAPL is a small family owned firm which is
  essentially dealing with single product.

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Background

• In terms of value, the mat segment in 1997 was
  the largest (51), followed by coils (21) and
  vaporizers (7).
• Mosquito repellants are used in larger scale in
  urban areas than in rural areas
• Major players in the sector are Bombay Chemicals
  Ltd, Bayer, GSLL,Reckitt Coleman , Balsara
  Hygiene ,KAPL etc
• In 1996 vaporiser segment was mainly dominated by
  KAPL

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Need identification
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Need identification

• Watching a small mosquito repellant company in
  Rajkot, the brothers decided to venture into the
  business and set up KAPL.
• KAPL decided to get the technology they from
  Japanese manufacturers.
• Most of the modern mosquito repellants were
  developed in Japan

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Need identification

• KAPL people saw a vaporizer being sold by Earth.
• It was reportedly doing extremely well in the
  Japanese market, as it was much more effective
  than mats.
• Vaporizers could function consistently throughout
  the night.
• It lowered the price of its product identifying
  the market sentiment.

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Technology and innovation

• Got the technology from Japan where most of the
  modern mosquito repellant were produced.
• Brought the concept of vaporizer in India
• Attractive use of animated ad and ads in
  videocassettes etc
• Launch of a small apparatus, Pluggy.

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Segmentation,Positioning,Targeting
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Segmentation,Positioning,Targeting
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Packaging and pricing
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Packaging and pricing

• All Out, a name suggested by the youngest Arya
  brother, Naveen.
• To ensure that the packaging was of high quality,
  KAPL commissioned a well-known packaging unit in
  Hyderabad, Andhra Pradesh.
• Initially KAPL priced the All Out vaporizer
  fairly high, but later on decreased the price
• Launched at Rs 225

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Packaging and pricing

• In 1994, the price reduced to Rs 135 for a cord
  model
• In 1995, KAPL launched the 'Pluggy' (a small
  apparatus, in which the refill could be fitted
  and plugged in directly) for Rs 90.
• In 1996, a twin pack (offering the Pluggy and a
  cord model) was launched for Rs 135.
• In 1998, KAPL came out with deadly offer ,a Rs
  99 pack consisting of the Pluggy and a refill.

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Packaging and pricing

• 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.

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Distribution
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Distribution

• KAPL's distribution network included 120
  distributors across the country.
• Of the 900,000 outlets across the country, that
  sold repellants, KAPL was available in only 18.
• RC had 55 GSSL had 54.
• To reduce costs it has started in house
  production

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Advertisement
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Advertisement

• KAPL hired handle the advertising for All Out
  but wasnt satisfied with the advertisements
• It then hired bigger advertising firm, HTA ,but
  the ads lost out on what the brand wanted to say.
  
• KAPL then decided to handle the advertising for
  All Out on its own.
• They launched a campaign featuring an animated,
  jumping frog (actually an All Out vaporizer)
  eating mosquitoes

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Advertisement

• Later on, the advertisement included a man
  competing with All Out in a mosquito 'eating'
  competition and losing out.
• The short, funny advertisement cost KAPL just Rs
  50,000 to make.
• Using new promotion schemes KAPL advertised on
  videocassettes of Hindi movies in a big way

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Advertisement

• To communicate in a cost-effective manner evening
  news program on FM Radio and cricket commentary
  on All India Radio (AIR) were used
• They also pioneered the concept of sponsoring
  song/dance and fight sequences in movies on many
  satellite television channels
• Advertisements would appear before each
  song/dance and fight sequence in the movie and
  hence got mind share of customers

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Current Situation
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Current Situation

• Improvement in literacy and health consciousness
  will increase use of mosquito repellants
• Considerable scope for the market to expand
• Increasing concern over the harmful effects of
  the chemicals in mosquito repellants on the
  health of human beings is expected to hamper the
  growth
• Allethrin, the chemical used in most of the
  repellants, is reported to be very dangerous

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Current Situation

• All Out's advertisement in 2001, claiming that
  the brand had 'Extra MMR' had been severely
  criticized.
• MMR is just an abbreviation for 'mosquito
  mortality rate'.
• All Out faced criticism for aggressiveness in its
  advertising strategy.
• KAPL remained essentially a single product
  company.
• Dificult to say for how long all out will remain
  the market leader

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Learning
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Learning

• Its always good to be innovative
• Small firms can also become very successful
• Learn from your national and international
  counterparts
• Advertising helps create awareness about the
  brand
• Innovative advertising techniques can save money
  yet promote your brand

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• Thank you