Scribd Logo
Upload

Welcome to Scribd!

  • 72 views

    Sehra' The Soap of Matchless Purity: Household Products (India) LTD

    Uploaded by

    Vishal Vikki Karamchandani
    Household Products (India) Ltd is considering introducing a new jasmine perfumed soap called Sehra in the high price soap segment. This segment is growing at 15% annually but profits from the company's two existing low-cost brands are decreasing. Sehra would target traditional consumers with a monthly income over 15,000 rupees. The company tested perfume formulations and conducted 9-month market tests in Hyderabad and Indore, where soap sales had been declining. The tests found declining trial rates but stable repeat purchase rates. The company should improve marketing communications to increase trials and consider additional test cities.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Sehra' The Soap of Matchless Purity: Household Products (India) LTD

    Uploaded by

    Vishal Vikki Karamchandani
    72 views7 pages
    Household Products (India) Ltd is considering introducing a new jasmine perfumed soap called Sehra in the high price soap segment. This segment is growing at 15% annually but profits from the company's two existing low-cost brands are decreasing. Sehra would target traditional consumers with a monthly income over 15,000 rupees. The company tested perfume formulations and conducted 9-month market tests in Hyderabad and Indore, where soap sales had been declining. The tests found declining trial rates but stable repeat purchase rates. The company should improve marketing communications to increase trials and consider additional test cities.

    Original Description:

    SBR

    Original Title

    SBR2 SMD

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Household Products (India) Ltd is considering introducing a new jasmine perfumed soap called Sehra in the high price soap segment. This segment is growing at 15% annually but profits from the company's two existing low-cost brands are decreasing. Sehra would target traditional consumers with a monthly income over 15,000 rupees. The company tested perfume formulations and conducted 9-month market tests in Hyderabad and Indore, where soap sales had been declining. The tests found declining trial rates but stable repeat purchase rates. The company should improve marketing communications to increase trials and consider additional test cities.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    72 views7 pages

    Sehra' The Soap of Matchless Purity: Household Products (India) LTD

    Uploaded by

    Vishal Vikki Karamchandani
    Household Products (India) Ltd is considering introducing a new jasmine perfumed soap called Sehra in the high price soap segment. This segment is growing at 15% annually but profits from the company's two existing low-cost brands are decreasing. Sehra would target traditional consumers with a monthly income over 15,000 rupees. The company tested perfume formulations and conducted 9-month market tests in Hyderabad and Indore, where soap sales had been declining. The tests found declining trial rates but stable repeat purchase rates. The company should improve marketing communications to increase trials and consider additional test cities.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 7

    Household Products (India) Ltd

    ‘Sehra’ The Soap of Matchless Purity


    Decisions taken at critical stages of new product introduction
    process: Concept Development
    • Type of new product : Product line extension (incremental innovation)
    • TG – Traditional Consumer, >15000 monthly income
    • Why the decision to introduce new product?
    - Profits of 2 low cost brands are decreasing
    - Increase market share in fast growing high price soap segment (15% growth rate)
    - Higher profit margin per tonne, stable profit generation

    1. Decision to introduce jasmine 1. - High price sector is fragmented mkt


    perfumed soap in high price
    - Benchmarking against similar competitor
    sector
    product – 10% growth in 2 yrs
    - Sandalwood > jasmine > rose > khus
    - Decision based on industry growth rate
    - No survey for consumer utility of pure
    vegetable oil soap
    - Could have gone for Sandalwood fragrance,
    2. Why not medicated or cosmetic since Jasmine is already available at 1.5 lower
    soap? than Shera
    Decisions taken at critical stages of new product introduction
    process: Concept Development & Testing

    1. Introduce pure vegetable oil soap 1. - More than just perfumed soap
    - Morphological analysis
    - Utility of vegetable oil soap not tested

    2. Formulation of 6 perfumes
    2. Used screening by perfumer to decide the final 2
    perfumes
    - Used focus group consumer testing to finalise the
    perfume
    Decisions taken at critical stages of new product introduction
    process: Market Testing

    3.Full blown Test Marketing in 2 cities 3. Selection of 2 cities. While the segment is
    Hyderabad & Indore growing at 15% annually, the data shows that
    sales in these 2 cities have declined

    4. Market tests usually last a few months to a


    4. Length of test – 9 months year.

    5. Information collected 5. All possible data has been collected


    Purchase, stock and sales of Sehra as
    well as competitors Bi monthly audit
    of sample retail stores, sample
    households
    More Insights from the case

    1. Jaimala has 10% share of high price segment which is itself only 10% of
    total soap sales
    2. Took 2 years to capture overall 3.5% share in soap category
    3. Shera has been positioned as premium but has gained from low price
    segment
    4. Shera is targeting more than 10% in high price segment while priced
    1.5 INR higher than the closest competitor Jaimala
    5. Did Shera cannibalise on its own sister brands?
    Recommendation

    360
    332.5 328
    320
    315
    280
    266
    240 238
    224 224 217
    210
    208 204

    135 142.5
    120 114
    96 102 93
    90 82 90
    80
    70
    60 56 52 51

    OCT '08 NOV '08 DEC '08 JAN '09 FEB '09 MAR '09 APR '09 MAY '09
    Repeat in Hyderabad Trial In Hyderabad Repeat in Indore Trial in Indore

    The test markets show declining trial rate but stable repeat purchase rate. The company should
    develop more effective marketing communication to get more trials. Overall High price soap has been
    declining in Hyderabad & Indore. Company should choose 2 more test cities and conduct full blown
    market test with better advertisements.
    Additional Information
    • 700 companies, $ 17 billion annual revenue, 90% penetration level

    • Brand loyality in this segment Factors influencing purchase

    Price 25%
    Hard Core Brand 40%
    loyals Quality 40%

    Brand Loyals 30% Hygiene 20%


    Color / Fragrance 10%
    Switchers 30%
    Durability 5%

    Brand Loyality Factors considered for


    purchase

    Hard Core Brand loyals


    Brand Loyals
    Switchers Price Quality Hygiene Color / Fragrance

    Source: International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online), Vol. 2, Issue 1, pp: (211-217), Month: April 2014 -
    September 2014

    You might also like