Household Products(i) Ltd_new

7/27/2019 Household Products(i) Ltd_new

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HOUSEHOLD PRODUCTS(I) Ltd.

Submitted By:-

Shradha Devidan



IN COMPANY ANALYSIS

• Reason for the New product

– Internal Force

• Vegetable oil introduction as a soap ingredient – citing innovation

•

Introduction in high price sector : Higher profit margins per tonne – External Force

• Marginally declining profits in low priced soaps

• Extent of Newness• Addition to existing product line



MARKET FOCUS

• Focus on Latent Needs of Customer

– Vegetarianism

– Religious Needs



PRODUCT LAUNCH PLAN

• Test launch in October 1998 in

– Hyderabad (AP)

– Indore (MP)

• Information System based on

– Company sales data

– Bi-Monthly audit of sample retail shops

– Monthly checks of a sample of households



SALES DATA ANALYSIS

• Potential overall decrease in fragrance soap market

• Increase in Dec -98 subject to the discounts offered.

0

50

100

150

200

250

300

350

400

450

500

Oct-98 Nov-98 Dec-98 Jan-99 Feb-99 Mar-99 Apr-99 May-99

Hyderabad

Indore



SALES DATA ANALYSIS

• Indore : More Responsive State

SEHRA MARKET SHARE BY VALUE

0

1

2

3

4

5

6

7

Jaimala

Sehra



SALES DATA ANALYSIS

• No. of rebuy :

Hyderabad: 30% Indore: 20%

From Exhibit 1 and 3:

Hyderabad:

Penetration of Sehra in IC A and B in Oct 1988- 1.6%. This corresponds to asale of 400,000 units of Sehra.

In April 1999 the additional buyers are 1.3% while the sales are 300,000.

Thus this indicates that the sales are mostly due to the new buyers than theold buyers rebuying the product in the latter part of the product trial.



% of new buyers in each month- Hyd





SALES DATA ANALYSIS

• The percentage of families buying ‘Sehra’ hasincreased while ‘Jaimala’ has gone down inHyderabad.

•However the sales of ‘Sehra’ has gone down overthe trial period.

• This indicates that either the market size hasreduced for the combined sales of ‘Sehra’ and‘Jaimala’ or the no. of units bought per family hasreduced for Sehra.



% of families buying Sehra and Jaimala

in HyderabadOct Nov Dec Jan Feb Mar Apr May

Sehra 1.58 2.52 3.82 3.42 3.18 4.14 3.83 4.00

Jaimala 7.05 6.40 6.87 5.84 5.51 5.52 4.07 4.28



SALES DATA ANALYSIS

• Since in Hyd where the product was tested forbeing negatively treated the figures show that ithas been accepted by an increasing no. of families than in Indore.

• Also there has been a drop in market share of both Sehra and Jaimala in Hyderabad.

• The drop in sales is to be attributed to thereduction in the market for the jasmine fragrancetoilet soap category.



Evaluation of SEHRA decisions

• Concept development

• CONCEPT – “Jasmine perfumed soap brand made

exclusively from vegetable oils”

• Vegetable Oil – distinguishing feature




• Concept Testing

– No consumer testing of the concept before it was

converted into actual product.

– Based on the Marketing Manager and the Product

Manager perceptions.

– Sent to the R&D department directly for

transformation into product




• Product Development

– Consumer research done for the two chosen

perfume fragrances

– R&D was able to develop a vegetable oil soap

which tended to wear down at comparatively

lower rate

–

Although no STATISTICALLY SIGNIFICANTdifference was found between the competition

and the main experimental perfume, it was still

launched.




• Market Testing

– Standard Test Marketing followed

– Test run in two cities

• Indore (responsive to the “vegetarianism feature”

added)

• Hyderabad ( non- responsive to the “vegetarianism

feature” added)




• Commercialization

– Near-Perfect choice of test centers

• Indore : 57% vegetarian : would prefer Vegetable oil compared to

animal fats

• Hyderabad : < 10% vegetarian : not essentially a criteria for

selection

– Advertising campaign : Legendary bride decorated with

jasmine flowers.

• Initial, marketed as high price – apt advertisement

• Results showed hit the low price sector majorly – bad choice of

advertisement

– Sehra Gained more from Low Price

» Hyderabad – 28.3 v/s 23.1

» Indore : 23.7 v/s 19.4



Product Launch at National Level

•Wrong POSITIONINGof the product in Test

Market

–

Was pitched as a high priced soap costing at

Rs. 7.5 (market average

was 8)

– Sehra Gained morefrom Low Price

• Hyderabad – 28.3 v/s

23.1

• Indore : 23.7 v/s 19.4




• Decline in market for fragrance soaps

• Preliminary Results show that perfume of

Sehra was considered weaker than that of

Jaimala

• Not many respondents identified the claim of

“made from pure vegetable oils”.




• If launched at the same price with same

results- the purpose of launching a soap in

premium segment fails.

• Also since it is gaining more from the low

price segment, the test marketing should

have also included income groups C &

D(income below Rs.5000 per month)




• If price is increased and repositioning done, the

entire Campaign will change and again it needs to

be test marketed to see results.

• Also there is a change in the overall trend in themarket (exhibit 4) as families buying both Sehra and

Jaimala have decreased. It might mean that people

no longer relish the Jasmine perfume.

• Considering all this we do not recommend the

product to be launched at the National Level at this

stage.

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Household Products(i) Ltd_new