CASE ANALYSIS

HOUSEHOLD PRODUCTS (INDIA) LTD.

Made By:Deepanshu Sachdeva10PGDM075

In Company Analysis

• Reasons for new product- SERA, the company’s new toilet soap.Internal force: higher profit margin and growth of the companyExternal force: low price sector profits on decline , due to fierce competition; jasmine perfume soap of competitive brand, achieved 10% share of high price sector in 2 years.

• The new brand of soap is an addition to existing product line.

Market Focus

• Product is a substitute for customers who need features of jasmine perfume, an existing need.

• In addition, the focus is on widespread vegetarianism and religious feeling among customers, latent need is considered.

• So, pure vegetable oil was introduced in place of animal fat in soap.

• Economic value for customers of this product is 50 paisa more than competing product but the customer here, will get an added advantage of using a soap made of vegetable oil.

Product Launch Plan

• Product test was conducted and test market plans were developed.

• Three plans were introduced:1. Internal sources like sales data were used.2. Audit of a sample of retail shops like

information about purchases, sales of this product and other brands of toilet soap.

3. Survey among consumers by Marketing Research department.

SALES DATA of Sehra (Exhibit 1) ( S in ‘000 Units)

Oct/68 Nov/68 Dec/68 Jan/69 Feb/69 Mar/69 Apr/69May/690

50100150200250300350400450500

HyderabadIndore

Initial increase in the sales is due to introductory dis-count period offer, where many schemes were given to consumers.

Market Share By Retail Shop AuditSehra vs. Jaimala (Exhibit 2)

October December Febuary April June0

2

4

6

8

10

12

14

16

18

SehraJaimala

Month by Month Analysis of % of households buying Sehra and Jaimala

( Exhibit 4)

Oct+Nov

Dec+ Ja

n

Feb+M

ar

Apr+May

02468

101214161820

SehraJaimala

Oct+Nov

Dec+ Ja

n

Feb+M

ar

Apr+May

0123456789

SehraJaimala

I.C. ‘A’- Income above 10,000 I.C. ‘B’- Income between 5,000 and 10,000

Market Share as measured on consumer panel, by value

(Exhibit 5)

Oct+Nov

Dec+ Ja

n

Feb+M

ar

Apr+May

0

1

2

3

4

5

6

7

8

SehraJaimala

Oct+Nov

Dec+ Ja

n

Feb+M

ar

Apr+May

00.5

11.5

22.5

33.5

44.5

5

SehraJaimala

FOR HYDERABAD FOR INDORE

1. Decisions taken at critical stages of product development:

• Concept development and testing:Concept taken- A toilet soap in the high price sector that contain jasmine fragrance and made from pure vegetable oilsTesting was done with the approach of standard test markets

• Product development:Task was given to R & D to develop two different jasmine perfumes, with better impact than perfume of competitive brand.

• Market testing:Test the product in markets which are responsive, like Indore as well as in markets which are not responsive to this product, like Hyderabad. Team decided to run the test for a period of 9-12 months.

• Commercialization:The company will go for commercialization, only after the test results .Extension of product nationally was based on performance in test market.Sales of the company’s existing brand was used as benchmark to evaluate the performance of new product.

2. Launch of product nationally:product should be launched with some consideration-- Focus more on income group ‘A’ and that too more on non responsive states, as they can make the overall strategy in loss.- Target Jaimala customers in responsive state like Indore, as Sehra is not able to gain share from Jaimala.