CHIK SHAMPOO BLUE OCEAN STRATEGY

PRESENTED BY:
KRUTIKA TALWADE(EBIZ BATCH1-2011-13)

Blue Ocean Strategy

Blue Ocean Strategy provides high growth and profits of an organization by creating new demand in an uncontested market space. It is totally opposite of competing head-to-head with other suppliers for known customers in an existing industry. Key concepts of blue ocean strategy includes Value Innovation the simultaneous pursuit of differentiation and low cost. Key analytical tools and the four actions framework are based on eliminate-reduce-raise-create grid.

The four principles of blue ocean strategy formulation

I. how to create uncontested market space by reconstructing market boundaries II. focusing on the big picture III. reaching beyond existing demand IV. getting the strategic sequence right.

Value Innovation: The Cornerstone of Blue Ocean Strategy

Value creation alone improves value but is not sufficient to make you stand out in the marketplace Innovation alone will often create a product that buyers are not willing to pay for Value innovation occurs only when companies align innovation with utility, price, and cost positions

Value innovation:
Make the competition irrelevant Create a leap in value for both buyers and your company Open up new and uncontested market space

CHIK SHAMPOO-STRATEGY
Shampoo for Rural Market It pioneered attempt to offer shampoos in small pillow packs Chik used right distribution strategy that made the brand available to the rural consumer at a cost he is willing to pay Accessibility and Affordability of shampoo increased as the success of the sachet changed the structure of the shampoo industry Extremely cut-throat market emergedng

CONTD
Chik endeavoured to provide to the masses a significantly superior product than those available at similar price points. Chik shampoo used French perfume to differentiate itself on the plank of superior fragrance. For promotion Innovative it used radio ads based on popular cinema dialogues, unlike plain radio jingles of competitors.