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MARKET RESEARCH

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MARKET RESEARCH Powered By Docstoc
					Roll Numbers: (6002-6011).
• Sequence of Presentation:
1. Ashish Banka 2. Ankita Mehrotra 3. Atish Jadhav 4. Arpit Upadhyay 5. Atul Baranwal 6. Anup Anand 7. Amit Kumar Singh 8. Anil Venugopal 9. Anushree Kumar 10.Shashikant Anpat
15-Jan-10

(6009). (6004). (6010). (6008). (6011). (6006). (6002). (6003). (6007). (6005).
1

Market Research.
Analysis of the Case to Evaluate The Design Methodology used by

“Household Products (India) Limited”

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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.
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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.

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The Company….
• Established in 1940.
• Manufacture & Market All Types of Consumer Products. • Toilet Soap Group is One of The Main Divisions of The Company.

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The Soap Market…..
• Organised Sector Consists of large Number of Brands. • There were Basically Two Sectors.
– Low Price Sector. – High Price Sector.
Market Sector
Price Range

Price Category
30 25 20 15 10 5 0 1 Market Sectors
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High Price Sector(10%)

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Low Price Sector(90%)

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

High Price Sector

One Brand at Rs.10/-.
Two Brands at Rs.5/-(40%) Others 60%

Others

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“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.

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“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”.

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Product Development Team…
• Developed Two Different Jasmine Perfumes for Market Evaluation. • Requested Market Research team to Conduct Survey to Select One Amongst The Two.

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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.
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Test Market Plans….
• Test to be Run in Two Test Market: – Indore. – Hyderabad. • Test will be Run for The Period of 9-12 Months.

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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.

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Test Results….
• Sales Of Sehra:
Hyderabad (Figures in Gross)
500 400 300 200 100 0
Ma y ry rch ril r ry mb er mb er Oc t ob e Ap rua nu a Ma

Indore (Figures in Gross)
500 400 300 200 100 0
mb er Oc t ob e mb er nu a rua Ma Ap Ma y ry rch ry ril r

Volume

Fe b

Volume

No ve

De ce

No ve

De ce

Months
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Fe b

Ja

Ja

Months
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Test Results….
• Market Share – High Price Sector.
Hyderabad (Figures in %)
20 15 Percentage 10 Share 5 0 October
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Indore (Figures in %)
16 14 12 10 Percentage 8 Share 6 4 2 0 October February Months
15

Sehra Jaimala

Sehra Jaimala

February Months

June

June

Test Results….
• Sehra Market Share (By Value).
Hyderabad
10 8 Value 6 4 2 0 October January Months
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Indore
8 7 6 5 Value 4 3 2 1 0 October

Income Group "A" Income Group "B" Total Jaimala April

Income Group "A" Income Group "B" Total Jaimala January Months
16

April

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.
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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.
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Test Results….
• Analysis of Cumulative Penetration of Sehra Among Toilet Soap Buyers.
Hyderabad
20 15 Cumulative 10 Penetration 5 0 October Income Group "A" Income Group "B" Total January Months April

Indore
25 20 Cumulative 15 Penetration 10 5 0 October January Months April Income Group "A" Income Group "B" Total

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Test Result….
• Whom Did “Sehra” Cannibalise?
Hyderabad
Sehra Beauty Queen 2% 3% 1% 8% 8% 2% 48% Sea Green Glow Jaimala Fresh 13% 1% 14% Gulab Tender Touch Chandan
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Indore
Sehra Beauty Queen 14% 11% 43% Sea Green Glow Jaimala 6% 1% 1% 5% Fresh Gulab 6% 12% Tender Touch Chandan Others
20

Others

Test Result….
% Of Families Buying Sehra and Jaimala in Hyderabad
8 7 6 5 4 3 2 1 0
No vem be r De cem be r Fe br u ar y J an ua ry Ma rc h Ap ril ber Ma y Oc to

% Of Families Buying Sehra and Jaimala in Indore
12 10 8 6 4 2 0
No vem be r De cem be r J an ua ry Fe br u ar y Ma rc h Ap ril ber Oc to Ma y
21

% Of families

% Of families

Month
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Month
Jaimala

Sehra

Sehra

Jaimala

Case Analysis.

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Management Problem….
1. To Increase Profitability of the Company. 2. To Create Stable Profitability Base. 3. To Create Potential for Growth.

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Management Question….
How to Increase the Profitability and Growth?

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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.

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Design Methodology….
Exploratory Design Followed by Conclusive Research Design.

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Research Problem (1)….
Which Soap to Launch to Increase Growth and Profitability?

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• 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.

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• 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.
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•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.

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Research Problem (2)….
What Attributes to Include in Soap?

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• Case Approach:
• Purity Concept is Given by the Product Manager.

• Flaws:
• Validity of Concept is Not Checked. • Product Attributes are Not Discussed with Customer.

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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.
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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)…………….

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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/-.
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Constant Sum Method.
S. No
1. 2. 3. 4. 5. 6. 7. 8. 9.
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ATTRIBUTES
Moisturizing Mildness Lather Shrinkage Price Purity Fragrance Cleaning Power Packaging

Category A

Category B

TOTAL

100

100

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Research Problem (3)….
Which Fragrance to Choose?

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• Case Approach:
• Blind Test.

• Flaws:
• No Flaw.

• Appropriate Solution:
• Case Approach is Correct.

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Research Problem (4)….
Which advertisement to select?

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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”.
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• 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.

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Focus Group….
Group Size: 8-12 Members. Customers, Respondents Group Composition: Prescreened. Relaxed, Informal Physical Setting: Atmosphere. Time Duration: Recording: Moderator:
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1-3 Hours. Audio-Cassettes, Video-Tapes. Trained & Skilled.
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Research Problem (5)….
Test Marketing of The Soap.

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Test Marketing
Application of Causal Research Design. Objectives: • To Determine Market Acceptance of Product. • To Test Alternative Level of Marketing Mix Variables.

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• 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.
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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.

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Conclusion (Cont)…..
– Concept Testing. – Feasibility Studies:
• Legal, Marketing, Technical, Financial

– Product Development. – Test Marketing. – Commercialization.

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Thank You……
• Team Members:
– – – – – – – – – – Amit Kumar Singh Anil Venugopal Ankita Mehrotra Anpat Shashikant Anup Anand Anushree Kumar Arpit Upadhyay Ashish Banka Atish Jadhav Atul Baranwal (6002). (6003). (6004). (6005). (6006). (6007). (6008). (6009). (6010). (6011).

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