HOUSEHOLD PRODUCTS

LIMITED (D)
GROUP B3 (2012)
 SITUATION ANALYSIS

Toilet soap industry segmentation

Medical Benefits
Fragrance
Cosmetic appeal

Average price = Rs. 5, premium price = Rs. 6 to Rs. 25

Company wants to increase share in high price sector,

composing 1/4th share by value, growing at 15%

Market dominated by soaps with animal fat

 SWOT ANALYSIS

STRENGTHS WEAKNESSES
Strong in low end market (40% Low presence in high end soap
market share) market
Established brand High wear rate of new product

OPPORTUNITIES
15% growth rate in the high-end THREATS
market Competition from Jaimala
Absence of monopoly in the Value proposition of Purity is
market untested
High margins on high-end soaps
 KEY DECISIONS
3 new brands in high-end segment
Focus on fragrance plus an additional value on purity of product
Competition with Jaimala primarily due to the Jasmine perfume
Concept
Attractive wrapping in a foil

R&D to compound six Jasmine perfumes

Product testing against competition to select best perfume
Product Experimentation with formulations incorporating vegetable oils
development

Town test Indore and Hyderabad

Training sales managers and salesmen
Test Marketing

Advertising in local press and slides in the cinema house

Discounts of Rs. 2.5 on a cake of Sehra
Advertising
 COMPARISON OF TEST MARKETS
INDORE
Higher penetration (18.1%)
Better penetration in Income
Group B
Lower market share (2.02%)
Lower repeat purchase rate
(20%)
Smaller city
Lesser number of shops
stocking toilet soaps (320)
No. of shops in the panel (50)
HYDERABAD
Lower penetration (9.9%)
Primarily due to lower
penetration in Income Group
B
Higher market share (3.11%)
Higher repeat purchase rate
(30%)
Metro
Higher number of shops
stocking toilet soaps (410)
No. of shops in the panel (60)
 WHAT WENT WRONG

The company has performed tests for the perfume but

the USP is still untested in terms of customer appeal and
viability
The company has not been aggressive in
communicating its USP - Purity / Vegetable oils
The advertisements have focused primarily on the
Jasmine perfume when a stronger brand (Jaimala) exists
in the market and Sehra is priced more than the
competition
High wear rate of product owing to the usage of
vegetable oils - Alternatives should have been explored.
The name of the product is not appropriate for the
target segment of the company i.e. Women in the 18-35
year age group
 RECOMMENDATIONS

Dont launch the product at national level

until following actions are taken:
Invest in R&D to bring out stronger and better
perfumes. If possible, try out Sandalwood
Decrease the price of Sehra and make it
comparable to or lower than Jaimala. The gains
for Sehra have mainly been from low price brands
even @ Rs. 7.5 per soap.
Advertise the purity of the product and the usage
of vegetable oils. Target religious customers
Change the name of the product
Launch the products in Metro cities initially