PRODUCTS REVIEW

- A SUCCESS OR FAILURE

N S SIVA SHANMUGA PRIYA AMIT KANABAR

22 February 2012

PRODUCTS REVIEWED
APPLE iPAD

HONDA JAZZ

SENSODYNE TOOTHPASTE

- An Innovation Failure

INTRODUCTION

Launch Date (India) : - 27 January, 2011

Pricing :- Rs. 27,000 Rs. 32,000 (Premium product).

Positioning (of iPad):- A tablet which fills the gap between mobile and laptop T.A. :- Higher Segment Businessmen

TABLET MARKET (INDIA)

Market Share (%)

Others 15% Blackberry 21% Apple 18% Samsung 46%

SHARE SHIPMENTS
Share(%) Shipments
Samsung Apple Olive Others

2%
8% 6%

84%

REASONS FOR FAILURE

Delay in launch gave Samsung the first mover advantage.

Technical Failures like:- low battery backup etc.

Less features. The major complaints of customers included:-

I. II. III. IV.

No camera No Multitasking No flash compatibility Storage Limitations (8GB / 16 GB yet not enough !!!)

Innovation was no longer their competitive advantage. Increase in rivalry from other players like Motorola, Samsung*, Reliance etc.

CURRENT SCENARIO
Launched Apple iPad-2 within a year of the release of iPad-1 Regained considerable market share from Samsung, however soon enough Samsung also came up new variants. Is World-wide market leader in tablet industry, however faces tough competition in India to gain every % of market share. Variants facing pricing issue as Beetle, Reliance and many more have come up with low price models.

Technical glitches still exists.

Samsung is up to the challenge of i by Apple.

- SUCCESS AFTER FAILURE.

INTRODUCTION
Launch Date (India) : - June 2009 Pricing :Initial Price:

Rs 7.12 lakh to Rs 7.56 lakh. Slashed by 1.75 lakhs Revised Price: Rs 5.50 lakh to Rs 6.06 lakh

Positioning (of Jazz):- Super-premium hatchback TA:- People ready to pay more for hatch back

AUTO MOBILE INDUSTRY (INDIA)

2008 2009 (CRISL) RESEARCH, SIAM

4% 2% 4%

4%
Ford India

13%
20%

General Motors Honda siel Hyundai Maruthi

53%

Tata Others

SALES FIGURES Enquiries for Jazz : 50,000 in June, Conversions : 4,000 Units June July August September : 2,000 units : 1,037 units : 1,029 units : 504 units

REASONS FOR FAILURE

Super-premium hatchback - Sporty hatch High price in hatchback segment Other car range: Rs 3.72 - Rs7 lakhs Honda Jazz starts from Rs7.56 lakh No special features (for worth of high price) 1.2 liter engine Petrol Engine

INDUSTRY PERFORMANCE
Market grew at a rate of 25.6 % in 2010 ICRA, Small car segment 73% of volume sold.

Small car segment - A1 and A2

A2 - Premium hatchback cars. Market Maruthi, Hyundai , Tata Motors , Ford and Chevrolet

INDUSTRY PERFORMANCE

- August 2010, the total sales of A2 cars in the domestic market rose 27% (SIAM). Gainers - Ford India Pvt Ltd, (Fusion and Figo), Volkswagen and Nissan Losers - Fiat India Automobiles Pvt Ltd, Tata Motors(Indica) and Hundai seil.

OTHER HONDA CARS PERFORMANCE

Honda City - Enquiries & Conversions - Upswing City volumes gone up. 30% increase in City sales.

Customers walk into showrooms with the intention to purchase Jazz, they landed up buying City.

- DIFFICULT TO TAP PREMIUM MARKET

INTRODUCTION

Launch Date(India):- March 9, 2011

Product price:- Rs. 120 (80gm)-Premium Brand Product

Positioning:- Toothpaste for sensitive teeth Parent Company:- Glaxo Smith Kine (World leader in toothpaste industry)

MARKET SHARE (TOOTHPASTE INDUSTRY)

Market Share (%)
1% 9% 18% 52% 20% Colgate Close-Up

Pepsodent
Sensodyne Others

MARKET SHARE (PREMIUM TOOTHPASTES)

Market Share (%)

6% 28% 35%

Colgate
Sensodyne Pepsodent Oral B Others

21%

10%

REASONS FOR SUCCESS

Already an established parent company in Pharmaceuticals. Caught Colgate unawares on Non-Sugar toothpaste market and exploited that gap well. Main target was towards those people who are tooth sensitive and care about teeth a lot.(Didnt tap much into general toothpaste category).

CURRENT SCENARIO
Has gained 10% market share in premium products thereby reducing the share of top players like Colgate and Oral B Aims at 5% market growth in general category.

Main focus is premium brand.

The brand is currently running a campaign in visual media with the aim of creating awareness about the condition of sensitive teeth and projects Sensodyne as the dentist's most preferred choice for this condition. Chill Tests

QUESTIONS ???