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MARKET RESEARCH: SURF EXCEL LIQUID

Background:-
Our client HUL has launched Surf Excel Liquid a year back in 35 cities having population of
more than 10 Lacs. It is superior in quality and fact shows that it makes clothes 2 times
cleaner than good detergent. The products prices are much higher than the surf excel
detergent and is focused on 20% of the current strata of SEC-A market. The point of
differentiation is its Soft on Hand feature which is a key influencer among affluent
household.
Liquid Surf Excel has strong presence in West and North markets, were we could see strong
hold in cities like Mumbai and Delhi respectively. It has not been doing well in the East
Indian and South Indian markets where only 50% sales target has been achieved in east and
70% in south.
Our client has conducted blind test before to arrive at the product but no test launch test
has been conducted before launch. Client has already tested the packaging of the product
before the launch. They are not doing well in east even when they have very strong market
of surf excel.
HUL has conducted a postlaunch study after 1 month which showed that Chennai,
Bangalore and Kolkata has low brand awareness, to increase the awareness, they did lot of
regional marketing through TV but none of the ad shown the connection of the washing
machine as it cannot be used in front load washing machines.
In this context, our Client would like to conduct a research. Based on the outcome, they
would take a decision on whether any change related to positioning, communication,
promotion, targeting of new sub-segments, new media choice, etc. is possible. Pricing can
be varied +/-5% only but they could open new SKU. They are not looking to go in new
markets but open to move out from any market.
Objective:-
Business Research Problem:-
To identify the key factors responsible for dissatisfactory performance of Surf Excel Liquid
product in East and South Indian market.
Market Research Problem:-
To understand effect of the below mentioned factors on the buying behaviour of the
customer in North & West region compared with South & East region:-
Product Quality(As selection parameter)
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Product Awareness
Price Perception(Value for money)
Usage of product
Perception pack size
Action Standard:-
Based on the perception of customer need to formulate product strategy in terms of
keeping or changing product positioning, communication, promotion, targeting of
new sub-segments, new media choice, etc

RESEARCH DESIGN
We recommend a primary research using both qualitative and quantitative research tools.
Focus Group Discussion would be conducted using predetermined open ended questions.
Two types of focus groups will be used; one comprising of 5 each of retailers and
distributors to understand the role of distributors and retailers in the sale of the product,
and another comprising of 10 homogeneous group of strangers to understand the attributes
for designing the questionnaire.
The quantitative research part will consist of face-to-face interviews using structured
questionnaires by inviting target respondents to a central location.

Target group:
SEC A
Age: 24-55 yrs
Decision maker and/or purchaser of detergent in the household
Regular user of the Surf Excel liquid and other users who do not use surf excel liquid
If a competition brand user is selected for the study, he/she should be at least aware of
Surf Excel liquid.
Markets of study:
We would recommend the study to be conducted in Delhi, Mumbai (Strong markets),
Kolkata, Patna (East/Growing Markets), Chennai and Vishakhapatnam (South/Growing
Markets). The study would be conducted only in towns with more than 10 lakh population.
The tentative list of markets will be as follows:

Sample Size:
AREA NORTH SOUTH EAST WEST
CITIES Delhi Chennai Kolkata Mumbai
Vizag Patna
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The recommended sample sizes are as follows:
N= Sample Size

In each market, the sample will be broken up into Surf Excel liquid users (50%) and Non-
users (50%). The minimum sample size is taken to be 385.
Sampling:
Seeing the above facts, we are thus going to use a quota sampling exercise. It is necessary to
have a good geographical coverage for each towns that we have selected and represents
them in homogeneous group known as quotas.
INFORMATION AREAS
Following information will be captured in recruitment and main questionnaire:
Recruitment
SEC
Age
Decision maker
Product user
Brand of detergent used
Number of times brand has been bought in the last 3 purchase occasions
Some other profiling questions like ownership of durables or media habits

Main
Overall likeability of the detergent
Perception on size of pack
Value for money perception
Quality perception of the detergent (softness on hands)
Usage of this product (machine type, water type, quantity)
Intention to purchase in future, if available in the market



AREA NORTH SOUTH EAST WEST
CITIES Delhi 385 Chennai 385 Kolkata 385 Mumbai 385
Vizag 385 Patna 385
Total 385 770 770 385
Grand Total 2310
N (95% confidence level)
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COST

All cost is in rupees

Research paper reference:-
http://www.niir.org/books/book/market-research-report-on-detergent-industry-in-india-market-
size-opportunities-comparative-financial-analysis-demand-supply-scenario-outlook-forecasts-
upto-2017/isbn-9789381039397/zb,,18b73,a,72,0,3e8/index.html

CITY SURVEY COST FOCUS GROUPS In-Depth Interview
Delhi 385 * 500 = 192500 30000 * 1 = 30000 10000 * 2 = 20000
Mumbai 385 * 500 = 192500 - -
Kolkata 385 * 500 = 192500 30000 * 1 = 30000 10000 * 2 = 20000
Patna 385 * 700 = 269500 - -
Chennai 385 * 500 = 192500 - -
Vizag 385 * 700 = 269500 30000 * 1 = 30000 10000 * 2 = 20000
Total 1309000 90000 60000
Activity Cost
Survey Cost 13,09,000
Focus group (5 Retailer & 5 Distributer) 90,000
In-Depth Interview (1 Retailer & 1 Distributer) 60,000
Secondary research paper 30,330
Total Cost 14,89,330