Grasim Industries Ltd and VSF - Expanding a Commodity Market through Branding and CRM


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:
Case Code : BSTR214 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

Business Strategy | Product Development
Case Length : 22 Pages
Period : 1999-2006
Organization : Grasim
Pub Date : 2006
Teaching Note : Available
Countries : India
Industry : Textile, Apparel, and Accessories

Abstract:

Grasim Industries Ltd. is a dominant player in the Indian Viscose Stable Fiber market and one of the leading players globally. The case begins with a profile of the Indian VSF market. It then outlines the impact of fluctuations in the prices of alternate fibers, mainly cotton and polyester, on the demand for Grasim's VSF. The case describes in detail the unique business strategy, 'Service beyond VSF', adopted by Grasim with the intention of promoting the usage of its VSF and reducing the impact of price fluctuations in substitute fibers. The case outlines the value added services, and branding and product development initiatives, that the company has carried out to realize its objectives. The case ends with a discussion on the future prospects of Grasim.

Issues:

» To provide insights into the nature of commodity markets, and the market for man-made and other fibers in India
» To understand the impact of price fluctuations of substitute products, on the demand for a commodity product
» To appreciate the various problems faced by manufacturers of commodity products, and more specifically, VSF manufacturers
» To provide insights into the means by which a commodity product can transformed into a branded product, with more stable demand and less likelihood of substitution
» To understand the contribution of new product development to the growth of an industry

Contents:

  Page No.
Introduction 1
Background Note 2
VSF: Fluctuating Fortunes 3
Service Beyond VSF 5
Offering Value Added Services to the Entire Value Chain 7
Product Development Initiatives 8
Other Efforts 9
The Impact of 'Service Beyond VSF' 11
Outlook 12
Exhibits 14

Keywords:

Viscose Staple Fiber, Birla, Branding, Value addition, Commodity, Cotton, Polyester, Substitutes, Price fluctuation, Value chain, Spinners, Knitters , Yarn

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