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Assignment 1

Sagari Dey
June 14, 2016

Case 1
In the last one year, a well known brand of gel toothpaste sees a downtrend in
sales. Will commission MR to find out the reason. What questions do you need
to ask to have a better understanding of the marketing problem.

Formulate the research problem on the basis of this discussion with


the DM

How is the category defined? Chalks and gels ; gels 1/3 of chalk by volume
Category trends: Toothpaste has been growing, more through increasing
penetration in rural. Gels have limited presence in rural
How have gels grown? gels , an urban phenomenon has been largely stable.

Brand shares and sales trends in gel category, any new brands launched?
The market leader and our brand shares have declined marginally; a new
brand has been launched , at the same price per gm as market leader , but
in a smaller pack size and in wintergreen flavour.
Which pack sizes have grown ? The smaller pack sizes have traditionally
grown because gel brands are usually the second paste at home
Any difference in performance in Region? Chennai , the largest and tradi-
tionally our strongest market shows a marginal decline. We are worried..
What is the consumers buying behaviour of our brand has that changed?
No change in non Chennai , but Chennai where we sold more of the 200
gm pack , seems to be moving towards 100 gm. The new brand sells at
75gms. New brand is doing well in Chennai too.
Change in distribution ?No
Change in marketing mix ? Product formulation , pack change, pricing,
ad spends? Share of spends declined because new brand spent fair amount
in first 6 months . We had a pack change , saying new, improved. Also
a promotion in Chennai , 20% extra at same price . Offtake improved ,
but sales in next month slower

1
What has been competitive activity? The new brand sponsored a TV
talent show for 16 weeks . The market leader ran a buy one get one free
for 4 weeks , at the same time that we ran our promotion ( during new
brand launch)
Any tracking data available to show if change in brand health? Yes,
shows some weakening in loyalty . We define loyalty as those who bought
our brand 4 out of 6 . Our loyalist base was 10% of all market ; is how 8%
in Chennai. The market leader continues to be 15%. New brand loyalist
base is 4%.
What is the marketers hypotheses about the problem? None

Case 2
Two brands of anti dandruff shampoo has been launched with similar level of
spends , distribution , sampling. Price points are identical . Brand A is an
extension the parent is a strong and established brand in the skin care cate-
gory (Moisturizer) and Brand B is a new brand. Both are positioned identically
:clears dandruff in 7 days.Both brands have a penetration of around 40% in 6
months but Brand B has higher repeat purchase rates. The marketing question
is why?

Formulate the research problem on the basis of this discussion with


the DM

What is the pattern of trial and repeat rates in the category ? Is Brand
B an exception? No new launches in anti dandruff in last 4 years , but
brand penetration is around 40% in first 6 months ( so we are on track),
but our repeat rate is 7% whereas Brand B and industry norm is around
12%.

What are the differences in the look/ feel of the products? Our shampoo is
in a white opaque bottle , and is white in colour. Brand B has a transparent
bottle , and is green in colour. Ours is slightly thinner in consistency than
Brand B , but you actually need less.
Any difference in actual pdt performance ? R&D reports. Yes , in a lab ,
our product is actually superior because we use a special ingredient ( which
we talk about) which nourishes after it cleans. But no in home consumer
tests.
Any Distribution issues? None our distribution is better than Brand B.
But they did have an attractive scheme for retailers during launch. What
is trade feedback? No specific feedback there has been a few comments
about the product not being very effective. This we know is not true so
there must be something else
Did Brand B have an promotional activity to encourage repeat buying?
No , nothing other than sampling , which we also had on a larger scale.

2
What is the parent equity in the skin care market ? The parent is a 20
year old brand strongly positioned on gentle mild nourishing care. All
communication has shown as gentle as a babys skin. Brand endorsed by
celebrities known for their great skin.
What are the parent image strengths and weaknesses? Image strengths
are gentle , mildness, nourishing care, brand you can trust , brand that
understands how you want your skin to feel . No weaknesses but contem-
porariness , modernity are non strengths. A few years ago , the brand had
ventured into fairness creams but did not do well , because it was felt that
a fairness cream could be harsh on skin and that was felt to be a threat to
the parent positioning..
What was the rationale behind extension to hair care? Were any studies
conducted? Yes, a study was conducted which suggested that consumers
are increasingly more aware of hair problems and are willing to try out
brands which offer something new . The parent brand also had strong
equity among the target group for our skin care product housewives. The
name of our brand is Lily Dandruff Care.