Product Line

House hold
Viz, Brite, Klear Floor Wax, Rain Barrel Fabric softner etc

Personal care products
 Hair conditioner and shampoos

Standard established procedures for New Product development
◦ Product Feasibility study ◦ Performance test against competitive product ◦ Test market before national introduction

Company launched Agree hair instant conditioner in 1977 ASSESSOR Test was conducted on Agree product – performed fairly well 1978 Market share Agree conditioner – 15.2%

With success of Agree conditioner Company decided to launch Enhance- Sequel of Agree in 1979 Target Market Dry Hair 25-45 Yr Old Women Existing Competitors Brands: Ravlon’s Flex, Brek Clean, Tame, Loreal, Sassoon, W Balsam and AGREE

Blind Test was conducted to establish preference levels on specific and overall attributes against competitor products Viz Revalon Flex Test was conducted on 400 hair conditioner users for six weeks usage period Users were given Enhance and Flex condiioners in blind labeled, identical non-identifiable packages form

The Key preference attribute to be tested was ‘women with specific hair care’ problem relevant to

Enhance strategy and positioning

The ASSESSOR Pre-Test Market was resorted to estimate the ongoing market share of Enhance and determine the consumer reaction to the product

2 Independent techniques were used namely
◦ Trail and Repeat Level method- for Market Share prediction of new product ◦ Preference Level method – for Measurement of Brand Preference

Test Phases Laboratory Phase Call Back Phase Pre Use Post Use
 initial Questionnaire – Evoke Set  The preference questionnaire – Pairing of brand Advertising recall Laboratory Purchasing Brand Ratings Information Collection – After use preferences, repeat purchase rate, and diagnostics concerning product performance Call back test was conducted 4 weeks after the Lab test

ASSESSOR provided 08 major result
◦ Market Structure – for segmentation of market ◦ Advertising recall – to estimate impact of advertisement ◦ Trial Estimation- to simulate anticipated competitive environment ◦ Repeat Purchase Estimation ◦ Product Acceptance- Like and dislike of product ◦ Market Share Prediction
 Trial and repeat model  Preference model

◦ Cannibalization ◦ Incremental Share from Sampling

Provided a measure of how well an ad broke through the clutter of competitive advertising Ad recall reasons (Exhibit-4)
◦ ◦ ◦ ◦ ◦ For dry hair – 47 % Conditioning – 20% Penetrates - 20 % Manageability – 11% Texture of hair – 6%

  

 

Is designed to reflect local conditions and simulate the anticipated competitive environment The test product is showcased like a real market condition Enhance was offered in 8 and 16 ounce sizes at $1.31 and $ 1.94 Agree was offered in 8 and 12 ounce sizes at $1.31 and $ 1.67 Flex was offered in 16 ounce size at $ 1.67 Out Come
◦ Enhance trial rate 23% where as Agree had achieved trial

rate of 33% in the past

Administered by telephone call back – 04 weeks after Laboratory Interviews. Out of 215 respondents, 42 did not use Enhance because it is specifically formulated for DRY HAIR

The performance on PRODUCT MAP post sample usage by the respondents.(Exhibit-3)
◦ Condition Vs Clean – improved on clean and declined on conditioning ◦ Condition Vs Effects – Declined on conditioning as well as effects

The respondents feedback was obtained about ‘what she liked best about Enhance’ The response was for Manageability rather than conditioning which was the main copy point of market structure Even repeat purchasers voted for Manageability

Market Share was estimated with two convergent methods
◦ Trial and Repeat ◦ Preference Model

Trial and Repeat: Model was based on the purchase information gathered during laboratory shopping and follow up telephone calls The Formula used was M=TS Where M= Market Share T= the ultimate cumulative trial rate (Penetration or Trial) S = the ultimate repeat purchase rate among those buyers who have made a trail purchase Retention (S) was a function of the initial repeat purchase rate and the rate at which previous tiers returned to Enhance after buying another product (called switch back)

Preference Model Estimates of Share – Model market share predictions was based on the respondents answers to questions about product attributes and the degree to which they perceived these attributes to be present in competing brand.  The preference model predicted that Enhance would attain 27.5% share of those consumers (in evoked sets)  Penetration rate – 14%  Base Market Share Estimate – 3.8%

 It was estimated that the launch of Enhance will lead to 2.4% cannibalization among Agree users

 The analysis shows to draw more than proportionate share of cannibalization from competitive products Viz. Wella, Balsam etc
 The analysis also shows to draw less than proportionate share of cannibalization from competitive product Viz Loreal, Clirol Condition

 The analysis shows to draw more proportionate share of cannibalization competitive product Viz, Wella Balsam.

than from

 The analysis also shows to draw less than proportionate share of cannibalization from competitive product Viz, Loreal, Clirol Condition.

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