product review by amit & priya s

PRODUCTS REVIEW

N S SIVA SHANMUGA PRIYAAMIT KANABAR

22 February 2012

- A SUCCESS OR FAILURE

PRODUCTS REVIEWED

APPLE iPAD

HONDA JAZZ

SENSODYNE TOOTHPASTE

APPLE iPAD- An Innovation Failure

INTRODUCTION

Launch Date (India) : - 27 January, 2011

Pricing :- Rs. 27,000 – Rs. 32,000 (Premium product).

Positioning (of iPad):- A tablet which fills the gap between mobile and laptop

T.A. :- Higher Segment Businessmen

TABLET MARKET (INDIA)

Samsung46%

Apple18%

Blackberry21%

Others15%

Market Share (%)

SHARE SHIPMENTS

84%

8%6%

2%

Share(%) Shipments

Samsung Apple Olive Others

REASONS FOR FAILURE

Delay in launch gave Samsung the first mover advantage.

Technical Failures like:- low battery backup etc.

Less features. The major complaints of customers included:-

I. No cameraII. No MultitaskingIII. No flash compatibilityIV. Storage Limitations (8GB / 16 GB yet not enough !!!)

Innovation was no longer their competitive advantage.

Increase in rivalry from other players like Motorola, Samsung*, Reliance etc.

Launched Apple iPad-2 within a year of the release of iPad-1

Regained considerable market share from Samsung, however soon enough Samsung also came up new variants.

Is World-wide market leader in tablet industry, however faces tough competition in India to gain every % of market share.

Variants facing pricing issue as Beetle, Reliance and many more have come up with low price models.

Technical glitches still exists.

Samsung is up to the challenge of ‘i’ by Apple.

CURRENT SCENARIO

HONDA JAZZ- SUCCESS AFTER FAILURE.

INTRODUCTION

Launch Date (India) : - June 2009

Pricing :- Initial Price: Rs 7.12 lakh to Rs 7.56 lakh. Slashed by 1.75 lakhs Revised Price: Rs 5.50 lakh to Rs 6.06 lakh

Positioning (of Jazz):- Super-premium hatchback

TA:- People ready to pay more for hatch back

AUTO MOBILE INDUSTRY (INDIA)

2008 – 2009 (CRISL) RESEARCH, SIAM

2% 4% 4%

20%

52%

13%4%

Ford IndiaGeneral MotorsHonda sielHyundaiMaruthiTataOthers

Enquiries for Jazz : 50,000 in June, Conversions : 4,000 Units June : 2,000 units July : 1,037 units August : 1,029 unitsSeptember : 504 units

SALES FIGURES

REASONS FOR FAILURE

• Super-premium hatchback - Sporty hatch• High price in hatchback segment• Other car range: Rs 3.72 - Rs7 lakhs • Honda Jazz starts from Rs7.56 lakh• No special features (for worth of high price)• 1.2 liter engine• Petrol Engine

Market grew at a rate of 25.6 % in 2010 ICRA,

Small car segment – 73% of volume sold.

Small car segment - A1 and A2

A2 - Premium hatchback cars.

Market – Maruthi, Hyundai , Tata Motors , Ford and Chevrolet

INDUSTRY PERFORMANCE

- August 2010, the total sales of A2 cars in the domestic market rose 27% (SIAM).

Gainers - Ford India Pvt Ltd, (Fusion and Figo), Volkswagen and Nissan Losers - Fiat India Automobiles Pvt Ltd, Tata Motors(Indica) and Hundai seil.

INDUSTRY PERFORMANCE

Honda City - Enquiries & Conversions - Upswing City volumes gone up. 30% increase in City sales. Customers walk into showrooms with the intention to purchase Jazz, they landed up buying City.

OTHER HONDA CARS PERFORMANCE

SENSODYNE TOOTHPASTE- DIFFICULT TO TAP PREMIUM MARKET

INTRODUCTION

Launch Date(India):- March 9, 2011

Product price:- Rs. 120 (80gm)-Premium Brand Product

Positioning:- Toothpaste for sensitive teeth

Parent Company:- Glaxo Smith Kine (World leader in toothpaste industry)

MARKET SHARE (TOOTHPASTE INDUSTRY)

52%

20%

18%

1% 9%

Market Share (%)

ColgateClose-UpPepsodentSensodyneOthers

MARKET SHARE (PREMIUM TOOTHPASTES)

35%

10%21%

28%

6%

Market Share (%)

ColgateSensodynePepsodentOral BOthers

REASONS FOR SUCCESS

Already an established parent company in Pharmaceuticals.

Caught Colgate unawares on Non-Sugar toothpaste market and exploited that gap well.

Main target was towards those people who are tooth sensitive and care about teeth a lot.(Didn’t tap much into general toothpaste category).

CURRENT SCENARIO

Has gained 10% market share in premium products thereby reducing the share of top players like Colgate and Oral B

Aims at 5% market growth in general category.

Main focus is premium brand.

The brand is currently running a campaign in visual media with the aim of creating awareness about the condition of sensitive teeth and projects Sensodyne as the dentist's most preferred choice for this condition.

‘Chill Tests’

QUESTIONS ???