Introducing a New Product
On 9 FEBRURY, 1968, Mr. Rahul, the marketing manager for toilet soaps, was examining the draft ‘test market proposal’ for a new toilet soap which was prepared by the product manager. Mr. Rahul had already cleared with the marketing director the commencement of test marketing around mid-year. He knew that test marketing activities were expensive and therefore wished to learn as much as possible from the test about various aspects of marketing mix for evolving a suitable mix for use in full scale national marketing. He felt that it would be useful to make a list of question for which he wanted answers from the test and then list the type of information which would require to answer these questions. He wanted to do a proper evaluating of the test market activity to enable him to make sound recommendation for a national operation. Company Background
Households Products (I) Ltd is a public limited company which was set up in 1940. The company has as authorized capital of Rs. 10 crores. The company is a leading marketing organization in the country and is engaged in the manufacturing and marketing of all kinds of consumer products of household use.
Household products (I) Ltd., is a professionally managed company and has a profit centre organization. Marketing Is the coordinating function in this organization and the marketing management has the profit responsibility for a particular product/product group. Toilet soaps Group is one of the important division of the company.
Toilet Soap Market
The toilet soaps market consist a large number of brands marketed by organized sector of the industry either nationally or regionally. Nearly 90 percent of the toilet soaps market (by weight)
Is made up of the brands selling at around 50 paise a cake. The rest of the market comprises of brands priced between 60 paise to Rs. 2.50 per cake. With a majority of them selling at around 80 paise.
Although the high