Market Research

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).