Household Products (India) Limited (D)

By Saloni Kapil (PGP 15300)

Ans 1. Before launching the product in the national market, the following changes are
suggested:
Price: The sales by both weight and value increased when the price was decreased
through the Rs 2.50 coupons. However, as the manufacturing costs may be higher
for vegetable oil soap production, a price of Rs 7.50 seems reasonable for the
premium segment. Also considering that most of premium soaps sold for Rs 8.00,
our price offering is fairly competitive.
Product: The name of the product should be changed from Sehra to something
more feminine, in accordance with the target segment of women between 18-35
years. It should stress on purity due to vegetable oils, not just on jasmine
fragrances.
Promotion: Our point-of-difference the fact that Sehra was made with vegetable
oils was not recalled by the survey respondents. The advertisement also highlights
only the benefits of Jasmine, and not the vegetable oil differentiation, thus the value
is not being delivered, while putting us in direct competition with Jasmine. The
premium of Rs 0.50 charged over Jaimala, despite a poorer fragrance, needs to be
justified.
Ans 2.
1.Idea Generation - The marketing manager suggested introduction of a new perfumebased soap for the high price segment, as it was a growing segment with greater
returns and profit margins.
2.Idea Screening A decision was made regarding the type of product to be created.
The features of jasmine fragrance and usage of vegetable oils in its manufacturing
were agreed upon, based on both judgment and concept test results.
3.Business Analysis Rough cut sales estimates were made using the segment wise
growth data, competitor sales analysis etc.
4.Development The R&D department carried out the product development, by
generating two prototypes and performing customer tests to evaluate these two
offerings and the competitors product. Simultaneously, the ad agency had
developed two advertising campaigns, one of which was chosen based on the
managements intuition and judgment.
5.Test Marketing The product and promotions were tested in the markets of Hindudominated city of Indore, and Muslim-dominated city of Hyderabad.
Ans 3.
Stage

Decision Taken

Product
Concept

Product
Developm
ent and
Testing

Introduce new soap in high price

segment
Launch in the appeal to perfume

segment
Point of differentiation purity due

to use of vegetable oils

Conduct consumer testing to

select one of the two fragrances

Ensure that the selected perfume
is better than the competitor,
Jaimala

Evaluation and Reasons

High price segment had growth
rate of 15% year-on-year; greater
profit margins
Appeal to traditional-minded
customers
Feasibility report prepared by
manager
Statistically insignificant
preference of one fragrance over
Jaimala taken for incorporation into
product, which later came up in
test marketing results

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g
Developm
ent and
Testing

Planning
of test
marketing

Adopt an advertising strategy

highlighting the two product
qualities fragrance and purity

Introduce the product in two cities

Indore and Hyderabad
Analyze sales data, data from shop
audits and consumer panels

Only jasmine fragrance point of

parity was highlighted in the final
advertisement
Ad chosen only on basis on
management judgment; may not
be in line with consumer
requirements
Cities chosen to establish whether
the point of difference (purity) is
valuable/being effectively
communicated to consumers
through analyzing various data
sources (repeat buying, feedback)