Apr 9, 2023 1
Roll Numbers:(6002-6011).
• Sequence of Presentation:1. Ashish Banka (6009).
2. Ankita Mehrotra (6004).3. Atish Jadhav (6010).4. Arpit Upadhyay (6008).5. Atul Baranwal (6011).6. Anup Anand (6006).7. Amit Kumar Singh (6002).8. Anil Venugopal (6003).
9. Anushree Kumar (6007).10.Shashikant Anpat (6005).
Apr 9, 2023 2
Market Research.
Analysis of the Case to Evaluate The Design Methodology used
by
“Household Products (India) Limited”
Apr 9, 2023 3
We Will Discuss……• Introduction to The Case.• Company’s Preparation for Development,
Production & Promotion of the Product.• Analysis of the Test Results.• Defining Management Problem.• Defining Research Problems.• Comparison of Design Methodology Used
by the Company with Appropriate Ones.• Conclusion.
Apr 9, 2023 4
Synopsis. • The company Introduced a New
Soap-”Sehra” in Indore and Hyderabad.• Claims Twin Benefits of:
– Pure Vegetable Oil.– Exotic Jasmine Fragrance.
• The Soap has been in Test Cities for Nine Months.
• The Decision for National Extension has to be Taken.
Apr 9, 2023 5
The Company….
• Established in 1940.
• Manufacture & Market All Types of Consumer Products.
• Toilet Soap Group is One of The Main Divisions of The Company.
Apr 9, 2023 6
The Soap Market…..• Organised Sector Consists of large Number of Brands.• There were Basically Two Sectors.
– Low Price Sector.
– High Price Sector.
Market Sector
High Price Sector(10%)
Low Price Sector(90%)
Price Category
0
5
10
15
20
25
30
1
Market Sectors
Price
Rang
e
Apr 9, 2023 7
The Soap Market….• The Company Sold Three Brands of Soaps.
– Low Price Sector (Two Brands).• Major Profit Earner, Low Profit, Growth Rate of 4%.
– High Price Sector (One Brand).• High Profit, High Growth Rate of 15%.
Low Price Sector
Two Brands at Rs.5/-(40%)
Others 60%
High Price Sector
One Brand at Rs.10/-.
Others
Apr 9, 2023 8
“Mr. Rahul”-New Marketing Manager…
• Appointed Marketing Manager for Soaps Division.• He, After Going Through Past Data, Concluded That
Company Needs to Introduce New Brands for:– High Profit margin.– Stable Profit Base.– Growth Potential for Company.
• Zeroed on to Three Main Segments of High Price:– Medicinal Soaps.– Perfumed Soaps.– Cosmetic/Beauty Soaps.
Apr 9, 2023 9
“Mr. Rahul”……..• Targeted Perfume Soaps Market as Best Suited for
the Company to Launch New Brand.• Major Competitor “Jaimala” Came in Strong Jasmine
Perfume with Attractive Packaging achieved 10% Market Share of High Price Sector in 2 Years Time.
• Discussed His plans with Marketing Director and R & D Team about His Product’s Concept.• Product Manager Recommended The Price Tag of
Rs.7.50/- for The Product as Against Rs.7/- of Their Biggest Competitor “Jaimala”.
Apr 9, 2023 10
Product Development Team…
• Developed Two Different Jasmine Perfumes for Market Evaluation.
• Requested Market Research team to Conduct Survey to Select One Amongst The Two.
Apr 9, 2023 11
Market Research Team….• Conducted Laboratory Testing on 18-
35 Age Group Women.• Three Panels were made:
– Two Tested With One of Company’s and One of Competitor’s Soap.
– One Tested With Both of the Company’s Soap.
• After Test Result, They Concluded That One of Company’s Soap is Better.
Apr 9, 2023 12
Test Market Plans….
• Test to be Run in Two Test Market:– Indore.–Hyderabad.
• Test will be Run for The Period of 9-12 Months.
Apr 9, 2023 13
Test Market Objectives….
• To Achieve Comparable Market Share To that of Competitor.
• Brand Positioning in The Premium Price Sector, Having Distinct Image of a Luxury Soap Based Upon:
–Exotic Fragrance.–Purity.
Apr 9, 2023 14
Test Results….• Sales Of Sehra:
Hyderabad (Figures in Gross)
0100
200300
400500
Months
Volum
e
Indore (Figures in Gross)
0100
200300
400500
Months
Volum
e
Apr 9, 2023 15
Test Results….• Market Share – High Price Sector.
0
5
10
15
20
Percentage Share
October February June
Months
Hyderabad (Figures in %)
Sehra
Jaimala
02468
10121416
Percentage Share
October February June
Months
Indore (Figures in %)
Sehra
Jaimala
Apr 9, 2023 16
Test Results….• Sehra Market Share (By Value).
012345678
Value
October January April
Months
Indore
Income Group "A"
Income Group "B"
Total
Jaimala0
2
4
6
8
10
Value
October January April
Months
Hyderabad
Income Group "A"
Income Group "B"
Total
Jaimala
Apr 9, 2023 17
Test Market Activity….• Sales Team Advised to Achieve
Distribution channel as That of Competitor.
• Display Contest was carried on for Retail Shops accompanied by Launch.
• More Visible Shelf Space in Retail Outlets.
• Advertisement:– Local Newspapers.– Movie Screening Houses.– Discount Coupons (Rs.2.50/-) Given During
Second Month.– Leaflet Distributed Showing Story of Sehra.
Apr 9, 2023 18
Consumer Panel….
• Both Town has Consumer Panel of 600 Households Each.
• Divided into Four Income Groups:– Income Group “A”:
» Income > Rs.10,000/-. – Income Group “B”:
» Income Between Rs.5,000/- to Rs.10,000/-.– Income Group “C & D”:
» Excluded from Panel Due to low Income Level.
Apr 9, 2023 19
Test Results….• Analysis of Cumulative Penetration of
Sehra Among Toilet Soap Buyers.
0
5
10
15
20
Cumulative Penetration
October January April
Months
Hyderabad
Income Group "A"
Income Group "B"
Total
0
5
10
15
20
25
Cumulative Penetration
October January April
Months
Indore
Income Group "A"
Income Group "B"
Total
Apr 9, 2023 20
Test Result….• Whom Did “Sehra” Cannibalise?
Indore
43%
12%6%5%
1%1%1%6%
11%
14%
Sehra
Beauty Queen
Sea Green
Glow
Jaimala
Fresh
Gulab
Tender Touch
Chandan
Others
Hyderabad
48%
14%1%
13%
8%1%3%2% 8% 2%
Sehra
Beauty Queen
Sea Green
Glow
Jaimala
Fresh
Gulab
Tender Touch
Chandan
Others
Apr 9, 2023 21
Test Result….
% Of Families Buying Sehra and Jaimala in Hyderabad
012345678
Month
% Of
familie
s
Sehra Jaimala
% Of Families Buying Sehra and Jaimala in Indore
02468
1012
Month
% Of
familie
s
Sehra Jaimala
Apr 9, 2023 22
Case Analysis.
Apr 9, 2023 23
Management Problem….
1. To Increase Profitability of the Company.
2. To Create Stable Profitability Base.3. To Create Potential for Growth.
Apr 9, 2023 24
Management Question….
How to Increase the Profitability and Growth?
Apr 9, 2023 25
Research Problem….
1.Which Soap to Launch to Increase Growth and Profitability?
2. What Attributes to Include in Soap?
3. Which Fragrance to Choose?4. Which Advertisement to Select?5. Test Marketing of the Soap.
Apr 9, 2023 26
Design Methodology….Exploratory Design Followed by
Conclusive Research Design.
Apr 9, 2023 27
Research Problem (1)….
Which Soap to Launch to Increase Growth and
Profitability?
Apr 9, 2023 28
• Case Approach:• Use of Secondary Data. •Discussion with Management. •Competitor’s Product Analysis
(Jaimala).• Idea of the Product Manager to
Differentiate the Product.
• Flaws observed:•Validity and Reliability of Secondary
Data Not Checked.•No Discussion with Retailers/
Distributors.•Customers are Not Involved.
Apr 9, 2023 29
• Appropriate Solution:– Retail Store Audit:
•Movement of Which Fragrance is More.•Price Range of Product with Different
Fragrances.•Customer’s Willingness to Pay for Certain
Fragrance.•Repeat Customer for Fragrance Soap.•Number of Competitors (Brands).•Market Share of These Brands (With
Fragrance).•Pricing and Promotional Activities of
Competitors.
Apr 9, 2023 30
•Appropriate Solution (Cont)…
– Secondary Data Validity Through Selected Retail Store Audit.
– Projective Techniques to Select Product or Fragrance.
– Word Association Technique.– Sentence Completion Method.– Focus Group with Customers to
Know Their Needs.
Apr 9, 2023 31
Research Problem (2)….
What Attributes to Include in Soap?
Sehra
Apr 9, 2023 32
• Case Approach:•Purity Concept is Given by the Product
Manager.
• Flaws:•Validity of Concept is Not Checked.•Product Attributes are Not Discussed
with Customer.
Apr 9, 2023 33
Appropriate Solution:
• Descriptive Research Design.•Questionnaire Design.
Which Kind of Soap do You Prefer? Medicated. Perfumed. Beauty/Cosmetic.
Which Fragrance You Like the Most in a Soap?
Sandalwood. Jasmine. Rose. Khus.
Apr 9, 2023 34
What Should be Shape of Soap According to You?
Square. Circular. Oval. Rectangle.
What Should be the Colour of The Soap? White. Pink. Blue. Any Other (Please Specify)…………….
Apr 9, 2023 35
Which Type of Soap will you Appreciate?
Made from Vegetable Oil. Made from Animal Fat.
What Should be the Price of The Soap in Accordance with Attribute you Prefer?
Rs.6/- to Rs.8/-. Rs.8/- to Rs.10/-. Rs.10/- to Rs.12/-.
Apr 9, 2023 36
Constant Sum Method.S. No ATTRIBUTES Category A Category B
1. Moisturizing
2. Mildness
3. Lather
4. Shrinkage
5. Price
6. Purity
7. Fragrance
8. Cleaning Power
9. Packaging
TOTAL 100 100
Apr 9, 2023 37
Research Problem (3)….
Which Fragrance to Choose?
Apr 9, 2023 38
• Case Approach:•Blind Test.
• Flaws:•No Flaw.
• Appropriate Solution:•Case Approach is Correct.
Apr 9, 2023 39
Research Problem (4)….
Which advertisement to select?
Apr 9, 2023 40
Advertising Campaign….
1. “Now! The Fragrance of a Million Jasmine Flowers. The Soap of Matchless Purity. The Pure Soap made From Pure Vegetable Oil”.
2. “There is a Sound of Wedding Bells in the Jasmine Perfume of Sehra”.
Apr 9, 2023 41
• Case Approach:•Advertisement Campaign Developed by
the Agency in Consensus with Management.
• Flaws:•Effectiveness of Advertisement Appeal
was Not Evaluated.
• Appropriate Solution:•Focus Group with Customers.
Apr 9, 2023 42
Focus Group….
Group Size: 8-12 Members.
Group Composition:
Customers, Respondents Prescreened.
Physical Setting: Relaxed, Informal
Atmosphere.
Time Duration: 1-3 Hours.
Recording:Audio-Cassettes, Video-Tapes.
Moderator: Trained & Skilled.
Apr 9, 2023 43
Research Problem (5)….
Test Marketing
of The Soap.
Apr 9, 2023 44
Test Marketing
Application of Causal Research Design.
Objectives:• To Determine Market Acceptance
of Product.• To Test Alternative Level of
Marketing Mix Variables.
Apr 9, 2023 45
• Case Approach:– Standard Test Market.
• Criteria for Selecting Test Market.• Selection of Test Market.• Duration of The Test.• Descriptive Research with the Consumer Panel
• Flaws:• No Data Stating the Effect of Discount Coupons.• No Data Regarding Competitor’s Move and its
Impact.
• Appropriate Solution:• Data Regarding Competitor’s Move Should be
Collected.• Causal Research Design Need to be Used to
Analyze Effect of Coupon Discount.
Apr 9, 2023 46
Conclusion
• Stages in New Product Development are Not Followed Properly. – They are:
• Idea Generation: – Customers, Dealers, Suppliers, Competitors,
R&D People, Top Management.
•Screening: – Present Line, Market Opportunities, Policies
with Respect to Investment, Return on Investment, Pay Back Period.
Apr 9, 2023 47
Conclusion (Cont)…..
– Concept Testing.– Feasibility Studies:
•Legal, Marketing, Technical, Financial
– Product Development.– Test Marketing.– Commercialization.
Apr 9, 2023 48
Thank You……• Team Members:
– Amit Kumar Singh (6002).– Anil Venugopal (6003).– Ankita Mehrotra (6004).– Anpat Shashikant (6005).– Anup Anand (6006).– Anushree Kumar (6007).– Arpit Upadhyay (6008).– Ashish Banka (6009).– Atish Jadhav (6010).– Atul Baranwal (6011).