How to beat the competition Business Case study in English
How to beat the competition Business Case study in English
In this article, let us know about the amazing Business Case Study of Liquid Soap Market. Small business owners often fail to compete with big companies in business, but in this case study, you will see how a small company competes with a giant by adopting a smart strategy.
Liquid soap is rapidly taking the place of soap bar in the world. People prefer to use liquid soap for washing hands. This liquid soap comes packaged in a bottle. The bottle has a small pump at the top to dispense the liquid soap. The desired amount of liquid soap is used by pressing this pump.
Business Case Study in EnglishSoftsoap Liquid soap from Minnetonka Corporation
Although William Shepherd discovered liquid soap in 1865, it was Minnetonka Corp that made liquid soap reach and popularize door-to-door.
Minnetonka Corporation was based in the city of Chaska in the US state of Minnesota. When Minnetonka Corp decided to make liquid soap, they knew their product Softsoap could be very successful, but they had some big challenges.
What were the challenges facing Minnetonka Corp?- There was no patent for the technology and method of manufacturing the liquid soap. So one could easily start Liquid soap manufacturing.
- There were many big giants like P&G in the market which could copy Minnetonka Corp's Softsoap liquid soap and bring it to market and control the market with their expensive marketing, advertising budget.
There was every possibility of this happening and if this happened, Minnetonka Corp's product would have become a loss-making deal in a few days.
Robert R. Taylor, owner of Minnetonka Corporation, knew very well that his small company could not compete with the big market leaders. Big companies will bring similar liquid soaps in the market only a few days after their product comes in the market.
Robert R taylor Minnetonka Corp softsoapSmart Business Strategy of Minnetonka Corp:
Robert R. Taylor thought that he could not stop big companies, but if the products of those companies could be prevented from coming in the market, then big profits could be earned. Not much is right, but if they can stop big companies from breaking into the market for a few months or even a year, then it can be of great benefit.
Now the management of Minnetonka Corporation has noticed that the pump bottle has a special importance in the experience of using liquid soap. The most important thing is to extract the soap by pressing the pump, otherwise soap is always available in the market.
There were only 2 companies in the USA to make this small pump for a bottle of liquid soap. Only these two companies had the patent license to make this short pump.
- Robert R. Taylor again showed his cunning and intelligence. He ordered both companies to make 100 million (100 million) small bottle pumps in total, so that no competitor company could buy even a single bottle pump for about 1 year.
This would have given Minnetonka Corp enough time to monopolize the market and make their brand name a hit. Even if companies like P&G, Unilever make liquid soaps instantly, but without a bottle pump, how will they bring their liquid soap in the market? And as long as they have a bottle pump supply, Minnetonka Corp will be 1 year ahead of them.
Pleasant result of Minnetonka Corp's efficient strategy:Minnetonka Corp. launched its Softsoap Liquid soap in the market. The soft soap on the shelves of general stores and shopping marts stood out amongst other soaps.
- Softsoap started selling very fast and in just 6 months Minnetonka Corp. sold Liquid soap worth 25 Million Dollar (about Rs 186 crore).
- On the basis of this success, Minnetonka Corp. sold its Softsoap and Village Bath brands to Colgate Palmolive in 1987 for 61 Million Dollars (Rs 455 crores).
- Two years later, Unilever bought Minnetonka Corp for 376 Million Dollar (Rs 2807 crore).
Robert R. Taylor, the charismatic owner of Minnetonka Corp, died in 2013.
Famous Magazines Inc. This monopoly strategy by Robert R. Taylor has been recognized as one of the 3 most prominent business strategies in the world to date. Minnetonka Corp is an example of how an anonymous company became a market leader just by looking at a small thing.
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