Case Study Household

Products (India) Limited

PREPARED BY
VIPLAV NIGAM
16FT-140

Household Products (India) Ltd.

About the company
It was set up in 1940 having market capital of Rs 100

crore
Engaged in the manufacturing and marketing of all
kinds of consumer products of household use
Toilet soaps is one of the important division of the
company
Sells 3 kinds of product in toilet soaps category priced at
Rs 15 ( LIG) and Rs 30 ( HIG)
The lower income products accounts for 40% market
share in low price sector of the toilet soap market

SEHRA
Household is launching a new product Sehra targeting high

price of the toilet soaps market

The reasons for targeting high price segment
The high price segment although very low but increasing at a

very fast pace eg jasmine gaining market share of 10% in 2 years

Competition in the low price sector is very intense
Due to fierce competition , there is no prospect to increase the
price of their old products which result into lower profit
margins
The new brand of soap is an addition to existing product line.

New product offering and decision process

Decisions taken at critical stages of the new product

Concept Development

Concepts
Soaps with cosmetic
medicinalor
perfume
appeals
values
scented smells

Concept taken - A toilet soap in the high price sector that contain jasmine

fragrance and made from pure vegetable oils

Market offered good opportunities and considerable potential in high price are
can be exploited

Decisions taken at critical stages of the new product

Product development
R&D developed two different types of jasmine perfume soaps

were developed out of the 6 variants

Consideration was also based on the wearability of the
product
Conjoint analysis It was done between two of the variants
developed with one of the product from the competitor
Findings preference of one experimental product over
another was quite evident in terms of perfume . The perfume
was also liked over its competitors brand .

Decisions taken at critical stages of the new product

Market testing
The product was tested in markets which are responsive,

like Indore as well as in markets which are not

responsive to this product, like Hyderabad.
Run the test for a period of 9-12 months

Decisions taken at critical stages of the new product

Commercialization
Factors taken into for the process of commercialization
I.
The company will go for commercialization, only after the test results
II. Extension of product nationally was based on performance in test
market

Analysis of the test market results

Sales of Sehra
500
450
400
350
300
250
200
150
100
50
0
25112 25143 25173 25204 25235 25263 25294 25324

Initial increase in the sales

is due to introductory
discount period offer, where
many schemes were given
to consumers.

Hyderabad
Indore

Analysis of the test market results

Sales of Sehra
500
450
400
350
300
250
200
150
100
50
0
25112 25143 25173 25204 25235 25263 25294 25324

Initial increase in the sales

is due to introductory
discount period offer, where
many schemes were given
to consumers.

Hyderabad
Indore

Analysis of the test market results

Cumulative market share ( Sehra vs Jaimala) under high price sector

18
16
14
12
10

Sehra
Jaimala

8
6
4
2
0
October

December

Febuary

April

June

Analysis of the test market results

Market Penetration
Market Penetration Among Toilet Soap Buyers
Hy derabad

Indore

17 .4

17 .4

7 .3

7 .9

7 .9

January

February

16.9

1 7 .8

18.1

9.2

9.2

15.3

10
7 .1
6.4
4.1
1.6
October

Nov ember

December

March

April

May

Analysis of the test market results

Market Penetration
Market Penetration Among Toilet Soap Buyers
Hy derabad

Indore

17 .4

17 .4

7 .3

7 .9

7 .9

January

February

16.9

1 7 .8

18.1

9.2

9.2

15.3

10
7 .1
6.4
4.1
1.6
October

Nov ember

December

March

April

May

Analysis of the test market results

Percentage gain from other brands

High Price Brand

Low Price Brand

Sehra

10

20

30

40

50

60

70

80

90

100

Conclusion
Based on the test market data analysis Household company
should go for the production stage with slight changes in its
strategy
They should target more customer from income group A
( salary > 30,000) as they will overall affect the profits
Marketing Strategy
I. Tier 1 city Packaging and fragrance
II. Tier 2 city Points of difference ( Vegetable oil )