Publication Date: 09/27/2019
Incorporated in 1983 in Uttar Pradesh, India, GHCL Limited had established itself by 2018 as a well-diversified group operating in chemicals, textiles, and consumer products segments. The home textiles division had launched a new line of bedsheets called Rekoop—a polyester fibre, extracted from recycled plastic bottles and combined with cotton to produce Rekoop bedsheets. The fibre also contained a DNA marker that enabled tracing of the product from fibre to finished product. The textile division was known for its low prices and weak business performance; to overcome that, the company believed that Rekoop could sell for higher prices and move the division’s focus from volumes to margins. Rekoop could provide brand salience, visibility, and higher prices. However, the president and chief executive officer of the home textile division faced many decisions—what distribution strategy to follow, how to get stores and customers to buy the product, how to increase customer awareness, what price points to use, how to maintain brand salience, and above all which markets to enter.
Learning Objective:
This case is primarily targeted at post-graduate management students and is suitable for a marketing strategy or sustainability course. After completion of this case, students will be able to:
- analyze a company’s motivations for internationalization;
- analyze a company’s rationale for choosing target markets; and
- identify different entry modes and assess how they can be improved.
Available at : Ivey Publishing