Duckback Marketing Plan Essay Example

Works became Bengal Waterproof Ltd. and was converted into a limited company in 1940. - S.W.

The strengths of O. T Analysis are as follows: India's pioneer company in waterproof products with a strong brand recall for 88 years, dominating the domestic market for protective wear and rubberized consumer durables. The company caters to esteemed customers such as government institutions and defense establishments, with excellent distribution channels and quality standards reaching markets like the UK, Germany, the US and Canada. They are known for their traditional products such as hot bags, ice bags, rainwear and gumboots, and their low-cost structure makes them affordable. However, they have weaknesses in the soft luggage segment since 1986 due to the lack of good shelf-space and lacklustre marketing initiatives by Armchair Marketing. Finally, there is an opportunity to reposition the Duckback brand in the retail market with new product offerings.

The market for large school bags has mostly been served by local players. However, the company has partnered with some prominent multinational brands. The South region of India is the primary market for the company, but there is potential for expansion into other regions of the country. One threat to the company's revenues is that rainwear sales are seasonal.

According to Porter's 5 Forces Model, a weak brand name in the premium segment increases the threat of substitute products and the likelihood of customers switching to alternatives in response to price increases due to high elasticity of demand. Duckback's rainwear product faces a significant threat from umbrellas. Additionally, the low buyer propensity to consume in the luggage and rainwear segment coupled with very small buyer switching costs adds

to the challenge.

In the hospital and rainwear industry, the perceived level of product differentiation is low. This opens up the threat of new competitors entering the market, especially in high-yielding profitable markets. As a result, numerous new firms may enter the market, causing a decline in profitability, unless incumbents can block their entry. The profit rate will eventually reduce to a competitive level if new firms continue to enter the market.

The rainwear industry has low barriers to entry due to its unorganized nature and low setup costs. However, the hospital equipment industry has high barriers to entry due to the high costs of setup and requirement for standardized products. The luggage industry also has low barriers to entry in the lower segment, but high levels of sophistication required in the premium segment make it difficult for new entrants. While access to distribution channels is easy for rainwear and luggage industries, it's not the case for hospital equipment.

Therefore, it is relatively simple for new entrants to participate in these segments. Nevertheless, capturing distribution channels proves arduous for the hospital equipment industry due to its necessity for direct sales and interaction with hospital administrations. The intensity of competitive rivalry is typically the primary determinant of industry competitiveness and may involve aggressive pricing strategies or other non-price dimensions, such as innovation or marketing. The Duck Back product lines face considerable competition, particularly in the unorganized sector.

The Rainwear Industry has a very minimal rate of industrial growth, making it unattractive for competition. For various product lines, there is a high diversity of competitors. Advertising expenses are minimal or almost nil in the rainwear and

hospital equipment industry, but in the luggage industry, there are few major players who incur high advertising expenses to differentiate their products. The bargaining power of customers is affected by their ability to put pressure on the firm and their sensitivity to price changes. With a low buyer concentration ratio for all product lines, customers do not have significant power over suppliers in terms of price or product type. However, in the premium segment of the luggage industry, a high concentration ratio exists, which limits customer bargaining power due to the limited number of options available.

Low buyer switching costs and low price sensitivity create high competition. Additionally, suppliers of raw materials, components, and services have bargaining power over the firm and may refuse to work with them.

The firm may charge unreasonably high prices for its unique resources. Additionally, there are numerous substitute inputs like Nylon and PVC that can be utilized for production. The supplier concentration ratio is higher compared to the firm concentration ratio, resulting in a strong bargaining power for suppliers. However, the cost of inputs relative to the selling price of the product is low.

Bengal Waterproof Limited markets a range of products under the brand name Duckback, which can be categorized into four segments:

1. Waterproof and weatherproof clothing
2. Industrial, protective, and special-purpose footwear
3. Industrial rubber products

Among the products offered are rubber items intended for medical and laboratory purposes, as well as inflatable structures and goods, and soft luggage. A comprehensive study of the target market is presented, taking into account demographic factors, societal and industrial trends, and customer requirements. The clothing line focuses on waterproof and weatherproof garments, with the following product offerings:

a) traditional raincoats, b) raincoats with leggings and hoods, c) designer raincoats, and d) feather-light raincoats. The target market for this line is:

• i.

The goal is to reach customers nationwide, with a focus on regions that experience high levels of rainfall: the western coastal region of Karnataka, Kerala, Maharashtra, and Goa, as well as West Bengal, Orissa, and Bihar in the east. The north-eastern market is currently untapped due to unfavorable conditions but may present an opportunity in the future. Marketing efforts should be aimed at two specific segments: school children and the working class. This is due to the younger generation's perception that raincoats are not fashionable.

The utility factor is more important than the appeal for two segments. The designer raincoats and feather weight raincoats are aimed at school children, while the conventional single piece raincoats and raincoats with leggings and hood are targeted at the working class. These types of raincoats meet their needs when it's raining and they are using a two-wheeler or public transport to go to work. In addition, there are three types of umbrellas offered: conventional black, designer, and travel umbrellas. The conventional black umbrellas are designed for consumers who prefer a formal appearance or traditional-looking umbrellas over designer options.

Designer umbrellas are designed for school children, youth, and women, offering a chance to make a fashion statement while providing protection from the elements. Travel umbrellas cater to the needs of customers who wish to carry an umbrella in their bag, especially working women who require a convenient option for their travel bags and purses.

The category "Wind Cheaters" offers Derby Super Comfort jackets and all weather

jackets, also known as Windcheaters. The target audience for this segment is primarily the youth who aim to make a fashion statement while staying protected from various weather conditions. The Derby Super Comfort jackets provide all weather protection with a focus on unique styling. Similarly, the all weather jackets cater to the needs of the general population by safeguarding their clothing from rain and dust during travel.

On the other hand, "Footwear" includes three types: industrial, protective, and special purpose. The product range within this category comprises safety and work footwear tailored to meet the specific requirements of various industries.

i. Mining ii. Steel iii. Glass iv.

The Cement v. Electrical category includes Boot and shoe lining soles, which are essential products for industries where worker safety is a primary concern. Production of these products does not require a significant capital investment or high operational costs. As an experienced manufacturer, we cater to a niche market with few competitors, resulting in higher profit margins. Dielectric and conductive footwear are critical components for the semiconductor manufacturing and electronics industries.

To produce specialized components, there is a need for latex-based products that provide insulation. This presents an economic opportunity for the company to expand operations and manufacture specialized footwear, such as dielectric Gumboots and Super gumboots for industrial and defence use, including snow ankle boots for different terrains. Our goal is to create these products without requiring significant investment by leveraging existing production facilities. Additionally, Duckback has already established relationships with the Indian Navy and Army due to their use of our inflatable structures.

Our goal is to utilize the existing association and expand presence in the

specialized footwear industry. Additionally, the Defense Forces hold the primary market for our inflatable structures and goods such as assault boats, inflatable boats, and life jackets for the Indian Navy and Army.

With the Defence Services upgrading their equipment, bulk purchase tenders may enter the market. Our objective is to leverage our past transaction experience and reputation to remain a supplier and secure more of the market share. Inflatable boats for recreational use, like adventure sports and whitewater rafting, are also a potential niche market. As disposable income rises and interest in adventure sports grows, this sector is expected to experience substantial growth. We aim to become a significant supplier in this realm. Implementing a promotional campaign, such as associating the Duckback brand with adventure activities, could help cultivate recognition among event organizers who will influence purchasing decisions. The Company should set up service stations in dock areas to service inflatable boats and life rafts.

One of the industries that BWL should consider entering is the one related to Rubber products for medical and laboratory use. This is due to its high growth rate and the company's prior experience in making hospital equipment. With numerous hospitals and healthcare centers being established across the nation, there is a significant potential market for these products. The goal is to identify the major players in the industry and establish long-term relationships with them, both with existing consumers and emerging ones on a B2B platform. Growth in the medical and healthcare industry is influenced by various factors.

The medical industry benefits from continuous investments in research ; development, resulting in improved productivity and better quality of drugs, medicines, medical instruments, hospital

equipment, and other supplies. Additionally, it provides a large number of jobs and serves as a cost-effective solution for those seeking medical treatment. An increase in demand for drugs and medicines has been prompted by rising ailments among the ageing population in both developed and developing nations. Advancements such as innovative drug discovery techniques, new cures, gene testing for insurance, genetic predictions of disease, human cloning, and reproductive technologies are the other driving forces behind the medical industry.

The pie chart above shows the share of medical equipment and supplies in 2006, with a focus on rubber equipment. The products within our region of interest include corrugated drainage sheets, hot water bottles, ice bags, air cushions, Mackintosh sheeting, and soft luggage.

In the luggage industry, major competitors include Samsonite and VIP. Future prospects for companies in this industry look promising due to high growth in the travel and tourism industry. The current size of the luggage industry is close to Rs. 00 crores and is expected to grow at a rate of 15-20% in the current times. The premium segment is expected to experience the most growth, with a rate of 30%.

Duckback targets three customer segments: lower, middle, and upper. Due to high demand, the focus should be on the upper segment. However, Duckback has the opportunity to tap into the untapped middle and lower segments which have only been served by the unorganized sector.

Duckback can establish itself in the market by targeting customers who seek durable yet affordable luggage. The upper-middle-class individuals who frequently travel domestically and abroad prefer convenient and secure luggage that is visually appealing. The middle class, particularly

salespersons who travel often, prioritizes durability and convenience over aesthetics. It is recommended that Duckback not engage with the lower segment, which is oversaturated with unorganized players. Duckback should position itself as a premium brand in the luggage industry, emphasizing four essential attributes: convenience, variety, aesthetics, and safety.

In the luggage industry, the way consumers perceive different products in each segment is distinct. Currently, Duckback is seen as an inexpensive, easily maintainable product catering primarily to the lower class segment. However, its competitors such as VIP and Samsonite believe that despite its reliability, Duckback wouldn't be much of a threat in the premium segment. Therefore, we suggest positioning Duckback as a lifestyle brand rather than just another bag. As a general strategy, Duckback should continue its successful approach to maintaining a positive image among customers in the lower segment while also working on increasing its penetration in that market.

The company should focus on entering the premium market and establish itself as a lifestyle brand rather than just a regular bag manufacturer. To achieve this, the company needs to revamp its image to become a more fashionable and sophisticated luggage company. The company can develop baggage products with special features like imported leather to target the high-end customers. Additionally, they can create luggage made from floral upholstery fabric to attract female buyers and promote an aesthetic sense.

Designing sophisticated and durable luggage that can withstand manhandling by baggage jockeys is the biggest challenge for the company. To address this issue, they incorporate tougher ballistic nylon, retractable handles, and wheels for easy utility and durability while maintaining suave designs. Moreover, to meet the changing customer

preferences, Duckback should include soft luggage in their product line as customers now prioritize convenience and aesthetics in their luggage choices.

All major players are shifting focus to the soft luggage segment, partly due to the increase in cost (by approximately 22% in the last month and nearly 100% in the past year) of polypropylene, a raw material used for hard luggage production (contributing to about 75% of the material). Consequently, the hard luggage industry has experienced negative growth of 15% while the soft luggage industry has grown by over 40%. Duckback's pricing strategy should take into account its lower-income customer base and ensure that prices remain competitive compared to other brands. Currently, Duckback is considered an affordable brand by its customers, so it should continue with this pricing strategy.

Perhaps the Company could develop discount plans and, as an additional incentive, offer gift options to bolster its presence among low-income consumers. Conversely, in order to maintain consumer trust in the quality of premium goods, pricing them too low should be avoided. For distribution channels suiting the premium segment, the Company may establish exclusive outlets located in well-known malls and shopping centers. This approach will allow for the optimal presentation of Duckback's complete range of products in a fitting atmosphere and further enhance the Company's image.

For the medium segment, it is suggested to use local distribution channels in addition to exclusive outlets. This approach will help increase product reach among the middle class, which often purchases luggage from street vendors. Direct B2B selling is another viable channel to widen the market, where Duckback can establish direct tie-ups with companies, schools, colleges, airlines, etc. that offer bags to

their employees or customers. This strategy can help Duckback reach a broader range of customers and increase brand awareness. To promote the brand, innovative advertising using banners at airports, railway stations, metro stations should be used to target relevant consumers. Television can also be leveraged to connect directly with consumers, a strategy that Duckback has not yet explored.

Despite not using advertising as a promotional tool, the company's marketing strategy has focused on B2B sales. However, their recent entry into the soft luggage segment requires establishment of a relationship with consumers. The first step towards this goal is to utilize a visual medium in order to connect with consumers' minds. The company can employ various promotional strategies for this purpose.

One way to increase product visibility is for a company to participate in international trade events like conventions and trade fairs, showcasing their new product range and offering loyalty coupons to target customers. Another effective method is organizing consumer-centric road shows in various locations throughout the city, exhibiting products like luggage and rainwear. These tactics increase brand recognition and encourage repeat purchases. It's essential to continuously improve technology for existing products and develop new ones, prioritizing R&D efforts. The goal is to introduce new methods of production and improve upon current technology, resulting in reduced costs.

The Company's lack of technology imports in the past five years has hindered growth, causing lower efficiency, poorer quality, and decreased customer satisfaction.

The company is confronted with a significant danger from the global market, particularly China, who can inundate the markets with their inexpensive goods. We can acquire the ability to manufacture affordable products without sacrificing quality through technology import.