Lightwell Matchstick Case Analysis
Problem identification:
The performance of Ligthwel Match Company in relation to the total match industry had not been very satisfactory for the last two years. Sales have declined and seasonal fluctuations which were a regular phenomenon for the match industry have become more severe than before. Though LMC has a great reputation in India, its market share is continuously decreasing. Due to the excise rebate and other incentives, the small scale sector has been steadily gaining the market share of match industry. Black bird matches made by a small Haryana based firm had become phenomenally popular in some large urban markets. The brand awareness of LMC is very high in consumers as well as in retailers, but the retailers were actively pushing the lower price brands .The small manufacturers were gaining the retailers loyalty by offering better margins, easier terms and flexible supply patterns. Also a major portion of consumers were indifferent to the brand of match box they got.
The high price perception of LW brands was a distinctly unfavorable factor in existing market conditions.
Decision issues: Forecasting of sales, Inventory and stock planning, terms and norms to the retailer, mode of supply patterns, and price of the product.
2)
➢ Four Ace brand was the most well-known brand in market.
➢ Chetak and snowax were also well known but Black bird is used by maximum number of people.
➢ Price perception of various brands:
➢ 82% thought Black Bird is 7p, 18% thought it was at 8p… 76% thought Four Ace was at 8p and 21% thought it was at 7p.3% thought Four Ace was at 10p.
➢ 92% thought Snowax was at 10p , 8% thought it was at 8p.
➢ 10% thought chetak was at 9p, 60% thought it was at 8p, 30% thought it was at 7p.
Percentage of respondents using Black Bird is 31 and Four aces is 20 , Chetak is 4, Snowax is 5 .
29% use LW brands. Black bird is the large one.
More people are buying low priced matches in the
The performance of Ligthwel Match Company in relation to the total match industry had not been very satisfactory for the last two years. Sales have declined and seasonal fluctuations which were a regular phenomenon for the match industry have become more severe than before. Though LMC has a great reputation in India, its market share is continuously decreasing. Due to the excise rebate and other incentives, the small scale sector has been steadily gaining the market share of match industry. Black bird matches made by a small Haryana based firm had become phenomenally popular in some large urban markets. The brand awareness of LMC is very high in consumers as well as in retailers, but the retailers were actively pushing the lower price brands .The small manufacturers were gaining the retailers loyalty by offering better margins, easier terms and flexible supply patterns. Also a major portion of consumers were indifferent to the brand of match box they got.
The high price perception of LW brands was a distinctly unfavorable factor in existing market conditions.
Decision issues: Forecasting of sales, Inventory and stock planning, terms and norms to the retailer, mode of supply patterns, and price of the product.
2)
➢ Four Ace brand was the most well-known brand in market.
➢ Chetak and snowax were also well known but Black bird is used by maximum number of people.
➢ Price perception of various brands:
➢ 82% thought Black Bird is 7p, 18% thought it was at 8p… 76% thought Four Ace was at 8p and 21% thought it was at 7p.3% thought Four Ace was at 10p.
➢ 92% thought Snowax was at 10p , 8% thought it was at 8p.
➢ 10% thought chetak was at 9p, 60% thought it was at 8p, 30% thought it was at 7p.
Percentage of respondents using Black Bird is 31 and Four aces is 20 , Chetak is 4, Snowax is 5 .
29% use LW brands. Black bird is the large one.
More people are buying low priced matches in the