CASE ANALYSIS

HOUSEHOLD PRODUCTS (INDIA) LTD.

Made By:
Deepanshu Sachdeva
10PGDM075
In Company Analysis
Reasons for new product- SERA, the
companys new toilet soap.
Internal force: higher profit margin and
growth of the company
External 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)
0
50
100
150
200
250
300
350
400
450
500
Hyderabad
Indore
Initial increase in the sales
is due to introductory
discount period offer, where
many schemes were given to
consumers.
Market Share By Retail Shop Audit
Sehra vs. Jaimala (Exhibit 2)
0
2
4
6
8
10
12
14
16
18
October December Febuary April June
Sehra
Jaimala
Month by Month Analysis of % of
households buying Sehra and Jaimala
( Exhibit 4)
0
2
4
6
8
10
12
14
16
18
20
Sehra
Jaimala
0
1
2
3
4
5
6
7
8
9
Sehra
Jaimala
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)
0
1
2
3
4
5
6
7
8
Sehra
Jaimala
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Sehra
Jaimala
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
oils
Testing 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 companys 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.