8. M/S Godrej & Boyce and Hindustan Lever Ltd. have been selling competing products Cinthol and Liril
Question:
8. M/S Godrej & Boyce and Hindustan Lever Ltd. have been selling competing products Cinthol and Liril respectively. The brand manager ofCinthol raised the following question:
What should be the firm's strategy in terms ofadvertising for Cinthol? The market Research group of Godrej & Boyce developed data for varying degrees of advertising by Liril and Cinthol:
1. No advertising, medium advertising and high advertising by both the firms will result in equal marketing share for Liril and Cinthol.
2. No advertising by Cinthol will result in a market share of 40 per cent and 28 per cent if medium level of advertising and heavy level of advertising respectively is adopted by Liril.
3. IfCinthol adopts medium level ofadvertising it will achieve a market share of70 per cent with no advertising by Liril and 45 per cent market share with heavy advertising by Liril.
4. If Cinthol resorts to heavy advertising it would achieve a market share of 75 per cent with no advertising by Liril and would get a 4 7 .5 per cent market share with medium advertising by Liril.
Based upon the foregoing information, what strategy should the brand manager ofCinthol adopt?
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