household products limited case solution
HOUSEHOLDS PRODUCTS (INDIA) LIMITED (D)
Indore (in % of all toilet soap buyers)
Total
Penetration
Total
Buyers
New
Buyers
Repeat
Buyers
Repeat
Rate%
7.1
7.06
7.1
10
5.48
2.9
2.58
36.34
15.3
8.59
5.3
3.29
32.90
16.9
5.18
1.6
3.58
23.40
17.4
3.8
0.5
3.3
19.53
17.4
1.73
0
1.73
9.94
17.8
1.97
0.4
1.57
9.02
18.1
2.11
0.3
1.81
10.17
The above table depicts that the following characteristics in the 2 cities
Hyderabad:
a) Low penetration (9.9%) suggesting that the marketing communications was ineffective.
b) Moderate repurchase rate(35%) suggesting that the product was perceived as providing value by 35% of the households who tried the product.
Indore:
a) High penetration rate (18%) in the High Price Segment of the market suggests that the marketing communication was effective in getting across the value of the product.
b) Low repurchase rate (10% in last 3 months) suggesting that only 10% of the households who tried the product found value in it.
The target segment of the soap is women in the age group 18-35 years. The name “Sehra” is a headdress worn by grooms during weddings. Giving a masculine accessory’s name to a soap targeted at women is a case of incorrect positioning.
The ad campaigns developed focused more on the Jasmine fragrance than the ‘purity’ aspect.
Decision: “Sehra” should be launched nation-wide.
Marketing Plan:
Price: The purchase value as well as quantity increased when the price was decreased through the Rs 2.50 coupons. However, the higher cost of producing soap out of vegetable oils means that the price should remain Rs 7.50
Product: The name of the product should be changed from “Sehra” to something more feminine.
Promotion: The survey respondents had very little recall of the fact that “Sehra” was made with vegetable oils. The benefit of ‘purity’ was not sufficiently highlighted. The only differentiator in our product with respect to Jaimala is its
Indore (in % of all toilet soap buyers)
Total
Penetration
Total
Buyers
New
Buyers
Repeat
Buyers
Repeat
Rate%
7.1
7.06
7.1
10
5.48
2.9
2.58
36.34
15.3
8.59
5.3
3.29
32.90
16.9
5.18
1.6
3.58
23.40
17.4
3.8
0.5
3.3
19.53
17.4
1.73
0
1.73
9.94
17.8
1.97
0.4
1.57
9.02
18.1
2.11
0.3
1.81
10.17
The above table depicts that the following characteristics in the 2 cities
Hyderabad:
a) Low penetration (9.9%) suggesting that the marketing communications was ineffective.
b) Moderate repurchase rate(35%) suggesting that the product was perceived as providing value by 35% of the households who tried the product.
Indore:
a) High penetration rate (18%) in the High Price Segment of the market suggests that the marketing communication was effective in getting across the value of the product.
b) Low repurchase rate (10% in last 3 months) suggesting that only 10% of the households who tried the product found value in it.
The target segment of the soap is women in the age group 18-35 years. The name “Sehra” is a headdress worn by grooms during weddings. Giving a masculine accessory’s name to a soap targeted at women is a case of incorrect positioning.
The ad campaigns developed focused more on the Jasmine fragrance than the ‘purity’ aspect.
Decision: “Sehra” should be launched nation-wide.
Marketing Plan:
Price: The purchase value as well as quantity increased when the price was decreased through the Rs 2.50 coupons. However, the higher cost of producing soap out of vegetable oils means that the price should remain Rs 7.50
Product: The name of the product should be changed from “Sehra” to something more feminine.
Promotion: The survey respondents had very little recall of the fact that “Sehra” was made with vegetable oils. The benefit of ‘purity’ was not sufficiently highlighted. The only differentiator in our product with respect to Jaimala is its