Mar 303 Indian Products Limited (A) Preparing a Plan for Data Analysis e In 1984, Indian Products Limited (IPL) had conducted a market research study to explore the possibility of inuoducing another brand ef refined cooking oil in small packs of one to for IPL was a large multi-division company manufacturing and marketing a variety of products for household use. Its refined groundnut oll brand, as also a competing refined groundnut oil brand, commanded a market share of 40 to 45% in the Small Pack Refined Oil market (SPRO). Background of the Problem ‘The total cooking medium market in India was approximately SQ lakh (50,00,000) toné. ‘OF this, approximately 12% was ghee and butter, 16% vanaspatl (hydrogenated olls), And rorhalning Shout 726 Gils, The refined olls accounted for only about 2% of the total cooking medium tonnage or atui 3% ‘SF the toial cooking oil tonnage. OF the total refined oil market, bulk packs (16 kg. tins) constituted about 4/5th to $/615 and the halance was in gmall packs, Bulk packs of both olls and vanaspa were & major phenomenon in the market. Most of these were opened by retailers and the contents sold loose to consumers ih small quantides. The per kg. price of loose fats to consumers was lower than the per kg. price of small packs. However, the quality of loose fats could not be relied upon by consumers because of possibilities of adulteration, IPL executives observed two trends in the SPRO market over the last few years. Firsy, the SPRO market was either stagnant or declining. However, the second tend observed was of increasing brand proliferation in the SPRO market. IPL executives believed that stagnation in the SPRO market was Primarily because of severe price competition from bulk pack refined oils (which were actually sold loose by retailers), fillered oils (both bulk and small pack), and vanaspati (both bulk and small pack: However, the proliferation of brands in SPRO market by both existing and new marketers pro higher price realization and higher promtability,— A further perusal of SPRO market revealed interesting wends in terms of type of oil base used and the ature of promises made to consumer. More and more of new brands of SPRO were non-groundnut oil brands. This was in contrast to the general wend in oil market where groundnut oil had Conistenly sained ascendancy, The new oils in SPRO market were sunflower oil, com oil, soyabean oil, and Coconut oil, Except for coconut oil, which wes uscd as cooking medium in southem parts of India in 4 limited way, other oils were totally new to the Indian kitchen. In terms of consumer benefits, the new brands of SPRO claimed some specific consumer benefits and were promoted as such at least on 8 modest scale. Several new SPRO brands were claiming nutritional or specific health benefits. Such Claims, panicularly. by non groundnut oil brands, had scientific justification as the oils contained higher proponion of polyunsaturated fatty acids (PUFA). The lauier was found 10 be associated with Prepased by Professor Abhinundun K, Jain on the basis of a project “Coneept Evaluation and Positioning of & New Brand of Refined Oil.” by Arun K, Harit Talwar, Subramuniam, K.R., Raka Garg, nad Kaushal, YN. Panicipanis of MRIS course, 1984-85, Case material of the Indian Institute of Management; Abinedabad, is prepared as a basis for class discussion. Cases are not designed to present illusuations of either eorreet of incorrect handling of adminisuative problems Copyright © 1994 by the Indian Instiwute of Management, Ahmedabad.Mar 303 lower levels of cholesterol in blood and hence was likely to result in lower inciden Pressure and related cardio vascular diseases. of high blood IPL Executives believed that SPRO market was poised for growth in future. They contended that rowth would take place if SPRO brands could offer significant and distinct consumer benefits ‘luding some related to health), ~ IPL executives felt that a second brand offering distinct consumer benefits (particularly related to health) could help the company in i) capturing a substantial share of health conscious segment; and ii) increase overall share of IPL in SPRO market IPL, therefore, was interested in introducing a new brand in the SPRO market, Towards this end, some initial work was done by R&D cell of IPL. The company had two base-oll options: {) com oil: and if) sunflower oll for developing new brand, Objectives of Research ‘The overall objectives of the research were: i) to assess whether there was an opportunity for a new ‘ad in the SPRO market; and ii) if yes, to determine the best product concept in terms of consu: appeal/acceptance, arch was conducted in three sequential phases, Phase I was used for of importa lentifying a concise list nt product attributes and consumer benefits. Phase I] was used to generate a large numbe Of product concepts on the basis of the important auributes/benefits identified in Phase I and screening the same to arrive at table product concepts. At the end of Phase II four product concepts were selected for further investigation. The purposes of Phase II were to achieve the overall objectives of the research, Phase 1 Sno ahis phase, first a list of 18 relevant atiributes/consumer benefits was g view of publ erated on the basis of 1) hed literature, and ii) revicw of research conducted in the past by the company. The sted of study of technical literature of com and sunflower oll and discussions with knowledgeable persons, In this step, those attributes/eonsumer benefits which could not be provided by the two base oils under consideration were found and deleted from the list of 18. A list of eight atuibutes/benefits was abstracted from the original list of 18 (see Exhibit 1), The third step was used to find out the attributes/benefits which were being offered by current SPRO brands and the extent to which the consumers were satisfied on the attributes/beneflis which were being offered by current SPRO brands and the extent to which the consumers were satisfied on the attributes/benefits by using their current brands. Studies conducted by the company and published literature were used for this Purpose, Appropriate benefits/attributes which could be used for developing concepts for the two base oils were then generated as follows: For Corn Oit For Sunflower Oil 1. Colour 1. Easy digestibility 2. Taste/Mavour 2. Energy and Nutrition 3. Energy and Nutrition 3. General Fitness 4, General Fitness 4, Economical in Usage Phase IT Using the above benefits/atiributes of the two base oils, a total of 21 concepts were generated, These concepts were screened by the research team through discussions within the team as well as through iscussions with some expenss. In this process, concepts which did not convey much or did not soundInaion Progutis Lied (A) rperant Atiibted Conair Benefits Sought by Consuers in Refined Oi an ‘ ‘Those which could be Provided by Sunflower/Cora Oi Lhe 2 Good for Haan 3. Enemy and Nustson ‘Tee scibuis economia inte was not included in ising of concep in Phase Ul, This was because Uhaly pies of conceps were aot Knoea fo the canes. Questionnaire 6 6 We ae snutents of the Ind your views with os, ‘Thank you, Qt What cooking mediums) do you wee? cas 1 Pure Ghee 2 Pures 3 | Vena 4 [7] pvourd oft 5 |] Retined O11 - Loose 6 Refined Oi - Packed Tin (0 si5aTTS Q. does not include “Refined Q3, 2 Have you used “Packed Refined Oi” in ne 1 [_] ves (OF answer to Q.2 fs "yes" proceed 19 9, iment, 23 Which brand of mfned oi are you using a 1 Posmta 2 Dries Refined O71 3 Gotdnut 4 7] sats 5 [7] Godee 6 [7] any eave reas sreityy 2.3%, Which ban of refined oil have you used Ia 1 Posman 2 Dalda Refined oi 3 {7} caren 47] stots 5 [D7] Goery 6 [7] nv otter ease specitey Instnte of Manazement, Ahmedabad {2 cooking it and fat. Forts purzose, we wouid lke yout paca ee ence cnuroer Reach We are conducting sure Of» Packed Tin te 19.02, ees paces Presen? (Show Cart 3) he past? 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