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

SALES DATA of Sehra

(Exhibit 1)
( S in 000 Units)

Initial increase in the sales

500
is due to introductory
450
discount period offer, where
many schemes were given
400
to consumers.
350
300
250
Hyderabad
200
Indore
150
100
50
0
25112 25143 25173 25204 25235 25263 25294 25324

Market Share By Retail Shop Audit

Sehra vs. Jaimala (Exhibit 2)
18
16
14
12
10

Sehra
Jaimala

8
6
4
2
0
October

December

Febuary

April

June

Month by Month Analysis of % of households

buying Sehra and Jaimala
( Exhibit 4)
18.16
16.6

16.6

16.74
13.4

13.36
12.48

Feb+Mar

Apr+May

9.96

Oct+Nov

Dec+ Jan

Sehra

9
8
7
6
5
4
3
2
Sehr
1
a
0
Oct+Nov Dec+ Jan Feb+Mar Apr+May

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)

8
7
6
5
4
3
2
1

Sehra

0
Oct+NovDec+ JanFeb+MarApr+May

FOR HYDERABAD

5
4.5
4
3.5
3
2.5
2
1.5
1
Sehr
0.5
a
0
Oct+Nov Dec+ Jan Feb+Mar Apr+May

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.