Final Report MPI

8/8/2019 Final Report MPI

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LAUNCH OF THE SONIC

STAIN REMOVER

Report by Group1

Nikhil Joseph (08PGHR08)

Kanika Manchanda (08PGHR14)

Rashmi Agarwal (08PGHR33)

Stuti Sharma (08PGHR51)

Sumit Kumar (08PGHR52)

Rudraksh Singh (08PGHR60)1


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Contents

Contents ................................................................................................................ 2

EXECUTIVE SUMMARY ............................................................................................ 2

MAIN REPORT ......................................................................................................... 4

SEGMENTATION .................................................................................................. 4

TARGET MARKET ................................................................................................. 6

POSITIONING ....................................................................................................... 8

MARKETING COMMUNICATION STRATEGY ........................................................ 12

PLACE: DISTRIBUTION CHANNELS ..................................................................... 19

PRICE ................................................................................................................ 21

CONCLUSION ....................................................................................................... 29

EXECUTIVE SUMMARY

The launch of the sonic stain remover presents a unique set of challenges.

The reason for the same is the fact that the offering in itself is so unique.

This concept is almost unprecedented in the Indian market.

We have tried to gather insights in to the psyche of consumers and

understand the considerations that play a role when it comes to decisions

made vis-a-vis their laundry needs. The same was accomplished with the

primary research conducted by us using structured online surveys as the

instruments.

The launch of the product has a lot of pros and cons attached to it, and we

have attempted to delve into the same. Using the marketing concepts we

have tried to identify segments of the market which would respond

favourably to the offering and have targeted specific demographics within

these segments. Accordingly we have decided the positioning and thepromotional strategy of our product. The distribution channels that need

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to be put in place have also been thought about. Since this product is kind

of unique, there are only close substitutes present and highly priced in

context of Indian market so it proved to be a challenge to design the

launch proposal for it.

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MAIN REPORT

SEGMENTATION

GEOGRAPHICAL SEGMENTATION

We would be primarily aiming at the urban segment. Within this segment

we would be considering the Metros and Tier 1 cities such as Ahmadabad,

Pune, Chandigarh, etc. The survey results are the basis for this conclusion.

The success of the rural market still remains a question mark.

DEMOGRAPHIC SEGMENTATION

Here we would be looking for the family size as one of the parameters.

Young and single, young and married with no children, young, married

and with young children. These would be the factors that would be kept in

mind while determining the target market. The income of the families

would be another factor that would be kept in mind while carrying out the

demographic segmentation. Here we would be concentrating on the high

and upper middle class.

PSYCHOGRAPHIC SEGMENTATION

Here, our primary focus would be on the groups with higher resources.

These would be

1) Innovators

2) Thinkers

3) Achievers

4) Experiencers

The reason why we chose to target this segment was the apparent lack

of inhibition in them trying out new and innovative products. They seek

value in the purchases that they make. Variety and excitement is the

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order of the day with this segment and they are constantly looking for

products that reflect their taste for niche products. The quest for this

group to find durability, functionality and value in products goes well

with the message that we intend to pass on to them in our promotioncampaign. The reason why we chose to ignore the group with lower

resources was because it was perceived that there was certain

reluctance when it came to change in this segment.

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TARGET MARKET

For all the rapid strides that the society at large has made, India still

remains a largely patriarchal society. Women continue to be the ones who

are the stain removers of the family. Hence the product would be targeted

at them accordingly. So does that mean we are going to include all of the

500 million members of the fairer sex in the country within this target

market? Well, not exactly. Our objective would be to target the urban

population as much as possible. Notionally, getting people to accept a tiny

little gadget as an effective means of cleaning your clothes would be a

little difficult and the acceptability of the same would be higher in the

urban segment.

Within this market we would like to target the young couples with little

children. (Hence prone to frequent recurrence of stained clothes) Most

urban families in India are undergoing a change with more and more

women taking the professional route. Given this fact we are looking at a

situation where there is an increasing requirement for convenience

gadgets. Ones that are easy to use and save time. The mothers in our

opinion would lap the product up.

Another segment that we would like to target is that of young

professionals. It is important to clear here that we do not intend to

discriminate on the basis of gender. Men are just as likely to use the

product as women. A lot of urban areas such as Bangalore, New Delhi,Mumbai etc are witness an economic boom, providing employment to the

youth of this country (and relative prosperity). A lot of youngsters live by

themselves in cramped apartments, and would have an aversion for bulky

washing machines. Here a portable and relatively affordable stain

remover is certainly going to catch their fancy. Not that we are trying to

imply that the stain remover would act as a substitute to the washing

machine.

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Another option that can be explored is presenting the offering to dry

cleaners. There is merit in doing so although our survey has not covered

many dry cleaners. One dry cleaner that we spoke to was quite

enthusiastic about the stain remover. He mentioned that the cost savingswould be enormous with the stain remover.

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POSITIONING

Our intention is to target the relatively well off sections of the society and

the nouve riche. The benefits that would accrue to them are fairly clear.

Another USP of the product is that it removes difficult stains while wasting

very little water and detergent. The value proposition being that the

consumer gets an offering that is tough on stains while also saving a lot of

time. Hence the positioning of the Sonic Stain Remover would be that of a

product that is unique in terms of the utility that it provides. It is not a

detergent and definitely not a washing machine. The technology is unique

and modern. Hence the positioning would be that of a product that

efficiently zaps the most obstinate of stains with the minimum of effort.

COMPETITIVE FRAME OF REFERENCE

The offering does not have a clear frame of reference as far as the

consumer is concerned. That is because the offering does not fall into

either of the traditional notions of removing stains from clothes i.e. a

washing machine or a detergent. There are offerings in the market such

as Vanish which are dedicated stain removers but the process that they

use is more akin to the traditional methods of removing stains. Hence

there is no particular category to which we can subscribe to.

The points of difference and parity too for this reason cannot beascertained. If one had to still compare the offering with the traditional

the most important point of difference would lie in the convenience that

this product offers them both in terms of time and effort.

The points of parity are self explanatory. Since we have a unique offering,

we also would not need to worry about differentiating our product with the

competition.

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SWOT ANALYSIS OF SONIC STAIN REMOVER

Strengths:

1. Stain removal efficiently.

2. No requirement of water.

3. Instant work.

4. Easy to carry.

5. No harm to the colour of clothes.

Weaknesses:

1. High cost.

2. May cause removal of dye from

dyed clothes.

3. May affect the quality of clothes

by the overuse of ultrasonic

technology.

Opportunities:

1. Growing number of working

women having lesser time.

2. Higher standards of living and a

growing middle class in the

society.

Threats:

1. Biggest threat from detergent

market.

2. Higher price will reduce the

acceptability of the product.

Strengths:

The biggest strength of the Sonic Stain Remover is the fact that it

removes stains very efficiently. For this removal of stains

efficiently, it does not require any detergent and water. Thus, this

can be used even when clothes are put on.

Another important thing in case of this product is the fact that it

doesnt require water, thus differentiating itself from the normal

way of washing clothes. It is thus an innovative way of washing

clothes without wetting them. This is important as it increases

the utility of the product specially for working women and

bachelors.

Sonic Stain remover works instantly and removes stains in

matter of seconds. Its ultrasonic technology removes stains

through 120 vibrations per second.

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The small size, 10*5*2, and the small weight, 0.5 pounds,

makes it a very portable device, thus increasing its usefulness.

The product doesnt harm the natural colour of clothes. Thus the

clothes are safe when used with sonic stain remover.

Weaknesses:

The high cost of the product, makes it difficult to accept by

general public who may not like to invest a large amount of

money for washing clothes.

The problem with this device may occur while using on dyedclothes as it may result in removal of dye along with the stain

form the clothes.

An ultrasonic speed of 120 vibrations per second may harm the

cloth fabric when overused.

Opportunities:

As the number of working women increase, there is lesser and

lesser time available with the members of the family. Thus, in

this kind of an environment, with lesser time, there is a higher

probability for easy acceptance of a product that saves time.

As the standard of living increases in the society, there is a

greater proportion of people who are more conscious about the

way they dress up and the kind of clothes they wear. In this

situation, this kind of a product holds a high importance and thus

can be accepted easily.

Threats:

There is a big threat to the product from the existing detergent

market that offer to clean clothes at a cheaper and more

affordable price.

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Since the product is highly priced, there will be a general low

acceptance of the product among the public.

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MARKETING COMMUNICATION STRATEGY

Marketing communication is a means to inform, persuade and remind the

costumers about the product and the brand being sold. In an early stage of

product promotion, marketing communication is aimed at information of the

product being given to the costumers. In the different stages of a products life

cycle, different kinds of promotion strategies are applied. The various stages in a

product life cycle are:

In the case of a sonic stain remover also, since the product is just being launched

and is in a nascent stage, thus it needs to be informed of to the customers. It

needs to be communicated that this kind of a product exists which shall help the

costumers fulfil their needs more and more efficiently.

The marketing communication mix consists of 8 major channels:

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1. Advertising

2. Sales promotion

3. Events and experience

4. Public relations and publicity

5. Direct marketing

6. Interactive marketing

7. Word-of-mouth marketing

8. Personal selling including any face-to-face interaction.

An effective marketing strategy requires a mix of these marketing channels in

order to reach efficiently to the target market.

In case of the sonic stain remover, we propose the use of 3 marketing channels:

1. Advertising

2. Word-of-mouth marketing

3. Personal selling including any face-to-face interaction.

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PRODUCT

The Sonic Stain remover is a cloth stain remover which falls into the

category ofDurable goods that service a number of users. But it is not a

normal stain remover like a detergent, thus falling into the category of a

speciality product. Speciality goods have some unique features for

which the consumer can make a special effort to buy it. This product has

various special qualities like using Ultrasonic technology to remove stains

without the use of water. Thus, this falls into the category of a speciality

product.

Product differentiation for Sonic Stain Remover would be as follows:

1. FORM: The product measures 10" x 5" x 2" in dimensions. It is a

small and portable device thus increasing its utility. Also it weighs

only 0.5 lbs, thus adding to its portability.

2. FEATURES: The product has got a number of special features like:

a. Removes virtually any clothing stain

b. Utilizes ultrasonic technology120 vibrations per second

c. Will not harm clothing's color integrity

d. Included is a small detergent bottle and water refilling pump.

3. PERFORMANCE QUALITY: The product is propagated as a high

performance product, the only problem arising in case of dyed

clothes where there is a possibility of a loss of the colour of the dye.

4. DURABILITY: The product is quiet durable and uses 4 AA batteries

which are replaceable. In addition one can use an adapter thus

increasing the utility of the product.

5. RELIABILITY: The product has been tested on various types of stains

and has worked well. Also it has gone through various rigorous tests

and has shown impressive results.

6. STYLE: Sonic Stain Remover is a small and handy product. Style of a

product has an advantage of creating distinctiveness. In the case of

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this product, the distinctiveness comes from the portability of the

product.

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PROMOTION

ADVERTISING:

Advertising is a form of non-personal presentation and promotion of ideas, goods

and services. It is required at this stage of product introduction in order to

provide knowledge about the product to the customers specially the early

adopters. Also since the product has new features thus, advertising is required to

explain the features of the product. It is also required to position the product

in a particular way in the minds of the customers. Along with telling the

customers about the various new and interesting features of the product

advertising shall also help to reach out to a variety of customers in various

locations at one time. Although advertising also has a lot of other positive effectslike increased pervasiveness (since the message is repeated several times),

more expressiveness (through the use of graphics, print and sound), yet on

the negative side advertising is an impersonal way of expression wherein there is

no dialogue between the consumer and the product. In case of a sonic stain

remover, we propose to use advertising efforts extensively in the following

forms:

1. TV advertisements: This will help increase the pervasiveness of theproduct and also help to demonstrate its usefulness to a number of target

customers at one time.

2. Billboards: Use of billboards for the advertisement of Sonic Stain

Remover will also help to reach a wider range of target audience.

Billboards are an effective way to promote a product.

3. Print advertisements: Use of print advertisements in some specific

magazines that target the same range of customers as the target

audience of the Sonic Stain Remover will help promote it in a big way.

Putting up advertisements in magazines that target the upper middle class

women and also working women shall help in the correct targeting of

customers using print media advertisements.

WORD-OF-MOUTH

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Word-of-mouth publicity is considered to be the best kind ofpublicity. For one,

it is free of cost. For another, one is almost always sure to convert most of

the prospects that have been referred, since existing clients have already sung

praises about your products and service to the new prospects.

Moreover, clients that have been referred require only a small nudge to make

the purchase, in comparison to completely new customers.

Using word-of-mouth publicity to promote Sonic stain remover is ideal and

possible because of the following reasons:

It is an innovative product with a unique service Since there is nothing

in the Indian market that compares to this product in terms of the

technology used, the stain remover will be discussed and promoted by

customers who have tried it and liked it

Trust in the product Trust in the brand and the product will be based on

the effectiveness of the product. Since the product is extremely effective

and useful, it will gradually build a loyal and dedicated following amongst

consumers

Value for money Even though initially the stain remover seems to be

priced high, on comparing it to the cost of dry cleaning and the lasting use

of the product, one finds it economical and value for money

PERSONAL SELLING

Personal selling occurs where an individual salesperson sells a product or a

service to a client. Salespeople try and match the benefits of their offering to the

specific needs of a client.

It is considered to be extremely effective in the later stages of the buying

process, particularly in building up buyer preference, conviction, and action.

Personal distinction has three distinctive qualities:

1. Personal Interaction: It creates an immediate and interactive episode

between two or more persons. Each party is able to observe the others

reactions.

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2. Cultivation: There is some contact between buyer and seller after the

sale so that an ongoing relationship is built.

3. Response: The buyer may feel under some obligation for having listened

to the sales talk.

The reason why we should use personal selling for marketing Sonic Stain

Remover is that since the product is being sold solely on its effectiveness, it is

important to prove and show its effectiveness to the consumers. They should

not just pass it as an ineffective and misleading TV advertisement. It is important

to focus on the real benefits of the product to the needs of the client, rather than

listing out all the endless features of the product. Personal selling will also help

convince consumers of the ease of using the product.

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PLACE: DISTRIBUTION CHANNELS

Often there is a chain of intermediaries; each passing the product down

the chain to the next organization, before it finally reaches the consumer

or the end-user. This process is known as the 'distribution chain' or the

'channel'. Each element in a distribution chain will have its own specific

needs, which must be taken into account by the producer, along with the

needs of the all-important end-users.

Typically around half the price paid for a product by the consumer is

absorbed by various activities that are there to bring the product to the

consumer. The various routes to the market involve intermediaries like

distributors, wholesalers, retailers, brokers and dealers etc.

Market access for a company depends on the understanding of the role

one wants the channels to play and the cost and the investment that are

involved with the returns.

In order to make Sonic Stain Remover available to the customer, we can

use the Direct Channel as well as a normal retail channel.

The reasons for the Direct Channel are:

Reducing cost

Customer convenience

Variable customer insight

Quicker response to customer feedback

Since the brand of Sonic Stain Remover is built on quality and

performance attributes, it is important that all the channels of distribution

execute on those attributes. This does not stop at the point of purchase,

but even after that if ever the product goes wrong or the consumer needs

ongoing service and support.

Reasons for using the Retail Channel are:

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Increases brand and product visibility

Reaches out to huge numbers

Easily accessible by all consumer segments

For the Business to Business segment and the consumer segment, we

intend to use the push strategy. This is because the B2B buyers and the

consumers will be interested in the live demonstration of the product as it

will increase awareness of the product and establish faith in the

effectiveness of the product. The consumer class market will also be

attracted to the Sonic Stain Remover by highlighting the advantages of

the product through various media channels. So we intend to use a pull

and push strategy for this segment of the target market.

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PRICE

Value Addition to consumers

A) Economic Value addition:-

Findings of our survey indicate that:-

1. People in general spend around Rs. 100-500 per month on

detergents, which this product will not able to substitute. The

reason we make this conclusion is on the basis that.

2. People spend around Rs 200 per month on dry cleaning which again

will not be substitutable. So, we asked people as to how often they

stained their clothes. They were asked to base their answer on the

basis of their memory.

Children topped in this survey with around 10 per month, adults

came second with around 3 per month. However, children scored

low on urgency of the stains with the exception of school uniforms

and some special clothes. School uniforms often require urgent

attention as most schools have white uniform and stains are clearly

visible.

Even though adults scored low on the stains per month count, their

urgency levels are rather high. Young people specifically allot

Sundays as a day for laundry or dry cleaning and are often irregular

on those days too, due to paucity of time.

So, if we calculate the cost to a family we would be able to

determine utility of the product.

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Let us consider a family of 3 members which has one child. And let

us assume that 1 out of every 3 stains is an urgent stain.

Let high urgent stains on childrens clothes per month = 3 stains

High urgent stains on husband and wives clothes be 1*2 = 2 stains

Many people (58%) have confessed that stains do not go away in

normal washing. Cost of dry cleaning in a city ranges from Rs 20 to

Rs 100.Let us assume cost of dry cleaning childrens clothes is Rs 20

per cloth( we made this assumption on basis that children s clothes

are of low urgency) and cost for adults clothes is Rs 40 per cloth.

Cost of removing those stains per month by dry cleaning will be =

20*3 + 40*2

= Rs 140 per month

Hence total cost per year = 140*12 = Rs 1680

Here we concluded that the cost incurred on removing stains is

more than the cost incurred in purchasing the sonic stain remover.

But again, the sonic stain remover would be a onetime purchase.

There are other stain removers available in the market. However

respondents pointed out that stain removers only reduce the

visibility of stains instead of completely removing them. Due to this

reason, they ultimately move towards dry cleaners. However in

lesser urgency levels stain removers are economical.

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B) Quality Value Addition :-

Quality value addition achieved by the Sonic Stain remover:-

1. More effective in removing stains completely compared to other

stain removers in market.

2. More convenient to use.

3. More effective for urgent use when compared to stain removers

as it does not spoil clothes as other stain removers do.

Thus, Quality Value added = High

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Sonic Stain Remover, Survey: Example

1. Age?

less than 25 years

26 to 35 years

36 to 45 years

above 45 years

2. What is your average monthly household expenditure on laundry product ?

Less than Rs.100

Rs.100 to Rs.500

Rs500 to Rs.1000

More than Rs.1000

3. Your marital status:

Single

Married

4. Who does laundry in the home?

Washerman

Maid

Self

Family member

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5. Do you own a washing machine?

Yes

No

6. How comfortable are you with the use of gadgets for removing stain?

Very comfortable

Comfortable

Uncomfortable

Very uncomfortable

7. Does your detergent/stain remover removes all kind of stains from oil, grease etc?

Yes

No

8. Does your stain remover ___________

Removes stain completely

Only reduces visibility of stain , not 100% cleanliness.

9. How often do you give your clothes for dry cleaning in a month?

Never

1-5 times

6-10 times

more than 10 times

10. What's your annual family income ?

less than Rs 2 Lakh

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between Rs 2 Lakh and Rs 5 lakh

between Rs 5 Lakh and Rs 10 Lakh

more than Rs 10 Lakh

11. How urgent it is to remove stains on various clothing?

Very urgent Urgent Doesn't matter

Kids wear

Formal wear

Party wear

12. How many times do you observe stains in your clothes per month?

once

twice

thrice

more than thrice how much?__

13. How many times do you observe stains in your childrens clothes per month?

thrice

five times a month

six times a month

If more than 6 times, How many times ?__10_____

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Survey of various Income Groups

>10lakh

5-10lakh

2.5-5 lakh

2. 5 lakh

Pie Chart on income distribution of prospective buyers vis-a

vis their income

Table

Income

Group

>10 lakh 5-10 lakh 2.5-5 lakh 2.5 lakh

Respondent

s

13 17 10 7

Positive

responses

10 9 2 1

Sample size = 47 respondents

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Survey of Cities

0

10

20

30

Respondents

Positive responses

Respondents 26 21

Positive

responses

14 7

Metro Tier1 & 2

Chart based on survey data on cities

Sample size = 47 respondents

Based on these observations we have come to conclusion that this product

should be targeted on Metros and Tier1 & Tier2 cities on upper middle class

segment and Working population.

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CONCLUSION

Geographically we would aim at urban population of metros and tier1

cities. Family composition and income are the important demographics

here and we would go for high and upper middle class income groups and

single young professionals and families with professionals.

We have decided to target the women mainly from higher and upper

middle segment. Then we would also target families with young children,

single young professionals, without gender bias, and dry cleaners.

Positioning of this product has to be unique as it does not fall into any

particular category rather its a category in itself. Its closest substitute is

vanish which is again not really close as the methodology and experience

of vanish is completely different. So we would position it as a hassle free

product which removes hardest to remove stains quickly without any

usual mess.

The sonic stain remover is in its nascent stage so the consumers need to

be made aware that such a product exists which is capable of fulfilling

their needs very efficiently. The communication channel to be used in

order to apprise the customer would be a mix of advertising, word-of-

mouth marketing and personal selling in order to include face-to-face

interaction and customer feedback.

The product would be promoted by advertising, through bill boards, TV

and print media, word of mouth and personal selling.

We plan to use the direct channel as well as the retail channel as sonic

stain remover is a one of a kind product where customers would demand

a demonstration at least initially. The use of the retail channel increases

visibility for the product, reaches out to large population and makes itaccessible to the consumers.

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The economic as well as quality value addition is high for the customers.

Based on such assumptions we calculated that on an average a family

spends Rs. 1680 annually to remove stains which can be saved to a large

extent. Thus, the product is an economically-wise and a practical solution.Quality value added is also high as it is more convenient and quick to use

and most importantly gives better results.

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Final Report MPI

Documents

Transcript of Final Report MPI