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Analyzing Consumer Behavior of Detergent Purchases: Local vs National Brands

CASELET, BUSINESS ANALYTICS
ET Cases, 5 Pages

Case Preview

Analyzing Consumer Behavior of Detergent Purchases: Local vs National Brands

 

Sambasiva Rao (Rao) was General Manager at Supreme Retail. In May 2017, Supreme Retail launched a house brand called 123* in the laundry detergents category and positioned as a cost-effective detergent, giving comparable wash results like other established brands in the market. Rao took direct responsibility of Supreme Retail’s food and grocery house brands. Along with other store brands at Supreme Retail, it was looked upon as a value proposition for shopping at Supreme Retail and also as an alternative to costly brands. During blind pre-launch testing, customers ranked 123* higher than national brands in many product features. However, the questions that Rao had in his mind were: would the customers who had been habitually purchasing a certain brand for many years switch to a local brand or a house brand? Is there a need to generate a demand by creating a strong incentive for consumers to buy the house brand? How to place orders effectively for its house brand 123*?

Teaching Note Preview

Analyzing Consumer Behavior of Detergent Purchases: Local vs National Brands

 

Synopsis

Sambasiva Rao (Rao), General Manager at Supreme Retail Pvt. Ltd.(Supreme), a retail chain from Varun Group (real estate conglomerate), was pondering on launch of its household private label detergent product 123*. As he planned to launch 123* brand in all its stores, he wanted arrive at an effective demand estimation. Besides, Rao wanted to know if there is a need to generate a demand by creating a strong incentive for consumers to buy the house brand. Discriminant Analysis could help in answering to these queries.

Case Positioning and Setting

This caselet can be used in MBA Program/MDPs/EDPs in Advanced Statistics, Analytics and Marketing Research Courses for teaching Discriminant Analysis.

Prerequisite Conceptual Understanding

The students/participants should be encouraged to read the following as it would provide appropriate perspectives on Discriminant Analysis and help gain insights:

• Naresh K. Malhotra and Satyabhushan Dash, “Discriminant Analysis”, Marketing Research an Applied Orientation, 6th Edition, Pearson Education, 2010 – To understand Discriminant Analysis

Assignment Questions

I. What are the Price Promotions? What would be the general effects of Price promotions? Why did Rao choose price promotion for 123* detergent brand?
II...........

Preamble to this Case Study Analysis

This caselet was used to introduce the participants/students to the idea of Discriminant Analysis. This concept/technique was discussed and analyzed in the light of Supreme Retail’s proposed launch of its house brand product 123*. Accordingly, this caselet was orchestrated as follows [Exhibit (TN)-I]:..........

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Abstract

This caselet can be used in Analytics course to help participants in understanding the insights from discriminant analysis. In May 2017, Supreme Retail launched its house brand called 123* in the laundry detergents category as a cost-effective detergent, giving comparable wash results like other established brands in the market. However, Sambasiva Rao (Rao), the GM at Supreme Retail, had to identify answers to the following questions: Could customers who had been habitually purchasing a certain brand for many years switch to a house brand or a local brand? Is there a need to generate a demand by offering a strong incentive for consumers to buy the house brand? How to place orders effectively for its house brand 123*? Discriminant analysis could be used for this.



Pedagogical Objectives

  • To understand Indian detergent market
  • To understand the various promotions that could be used for 123*
  • To discuss and understand the general effects of price promotions
  • To discuss and identify whether there is an impact of Price Promotion on the Supreme Retail’s 123* sales
  • Case Positioning and Setting

    This caselet can be used in MBA Program/MDPs/EDPs in Advanced statistics, Analytics and Marketing Research Courses for teaching Discriminant Analysis



    This Case Pack Includes:
    - Abstract
    - Caselet
    - Supplement
    - Teaching Note (**ONLY for Academicians)

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