7/17/2019 Household Products Limited

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Household Products (India) Limited1. Should the company launch the product nationally? If yes, what marketin plan would you suest for

this product and why?

 !ns. The company should not launch the product nationally based on the test marketing results.Reasons:

(a) Total penetration is high in Indore (18.1%) but the repeat purchase is only approximately !%. Thissuggests that most o" the customers did not "ind enough #alue in the product as compared to competitors.  (b) Total penetration in lo$ in yderabad (&.&%) $hich sho$s that marketing communication $as ine""ecti#e

in getting consumers to try the product.  (c) 'ehra "ailed to achie#e the target market share o" 1!% in high priced sector e#en $ith the concentratede""ort in the target cities.  (d) *a+ority o" sales in test market $ere gained "rom 'lo$ price segment and thus, ehra $as unable toappeal to the target customers, i.e. high priced segment.  (e) -ustomer #alue needs to be assessed in more detail as ma+ority o" customers do not "ocus on the main point o" di""erence o" using '#egetable oils $hile being inter#ie$ed about the product.

(") In Indore, market share o" ehra exceeded that o" 'aimala in /ecember (probably due to hea#y promotions and coupons) but "ailed to retain such high market share.

The marketing campaign needs to be modi"ied.(i) "he focus of ad#ertisin should $e shifted to purity from frarance. 0s customers percei#e "ragrance to be the important "eature o" ehra and subseuently, "ind the smell $eaker than aimala, the repeat purchase is

a""ected.(ii) 2rand positioning could be modi"ied. 3urity aspect can be associated $ith medical bene"its rather than"ocusing on per"ume bene"it $hich does not directly relate to the usage o" pure #egetable oils "or the soap.

%. &hart out the process followed $y the company to introduce the new product.

!ns.

'. #aluate the decisions taken at critical staes of the new product introduction process. .. (i) Product

concept, (ii) product de#elopment and testin, (iii) ad#ertisinde#elopment and testin, and (i#) Plannin

of test marketin.

!ns.

Product Introduction Stae #aluation of *ecisions (comments on contri$utin factors)

3roduct -oncept (i) -onsumer pre"erences "or soap made "rom #egetable oils $ere notassessed.(ii) -ombined bene"its o" per"ume and purity should ha#e been assessedin greater detail. 3urity might be better linked $ith medical bene"its or

elegance.

3roduct de#elopment and testing (i) Testing $as not done on the basis o" primary point o" di""erence, i.e.

 purity.(ii) -onsumer sample and sample si4e should ha#e been rechecked asthe results o" comparison $ith competing brand $ere not statisticallysigni"icant.

0d#ertising de#elopment and testing (i) The claim o" purity $as not highlighted enough to ascertain it as thema+or di""erentiating "actor.

(ii) 5o ad#ertising testing $as carried out.3lanning o" test marketing (i) 3romotional discounts might ha#e obscured the e""ecti#eness o"

ad#ertisements and thus, the results might be misleading.(ii) *aximum gains $ere "rom lo$ price segment and thus, exclusiono" Income groups - 6 / might lead to misleading conclusions.