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PRODUCTS REVIEW
            - A SUCCESS OR FAILURE




     N S SIVA SHANMUGA PRIYA
                AMIT KANABAR




                      22 February 2012
PRODUCTS REVIEWED

   APPLE iPAD




                  HONDA JAZZ



     SENSODYNE
     TOOTHPASTE
- 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)
             Market Share (%)


             Others
              15%
                                Samsung
Blackberry
                                  46%
   21%


             Apple
              18%
SHARE SHIPMENTS

    Share(%) Shipments
Samsung    Apple    Olive     Others
               2%
          6%
  8%




                        84%
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 camera
II.    No Multitasking
III.   No flash compatibility
IV.    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.
CURRENT SCENARIO

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.
- 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




              4% 2% 4% 4%

       13%
                                         Ford India
                             20%         General Motors
                                         Honda siel
                                         Hyundai
                                         Maruthi
        53%                              Tata
                                         Others
SALES FIGURES


Enquiries for Jazz : 50,000 in June,
Conversions :        4,000 Units

June         : 2,000 units
July        : 1,037 units
August      : 1,029 units
September   : 504 units
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
INDUSTRY PERFORMANCE


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.
OTHER HONDA CARS 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.
- 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)

               Market Share (%)


         1%
              9%
   18%                                  Colgate
                                  52%   Close-Up
                                        Pepsodent
    20%                                 Sensodyne
                                        Others
MARKET SHARE (PREMIUM TOOTHPASTES)

                Market Share (%)



            6%
    28%                    35%     Colgate
                                   Sensodyne
                                   Pepsodent
          21%           10%
                                   Oral B
                                   Others
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 ???

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Product Review by Amit & Priya s

  • 1. PRODUCTS REVIEW - A SUCCESS OR FAILURE N S SIVA SHANMUGA PRIYA AMIT KANABAR 22 February 2012
  • 2. PRODUCTS REVIEWED APPLE iPAD HONDA JAZZ SENSODYNE TOOTHPASTE
  • 3. - An Innovation Failure
  • 4. 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
  • 5. TABLET MARKET (INDIA) Market Share (%) Others 15% Samsung Blackberry 46% 21% Apple 18%
  • 6. SHARE SHIPMENTS Share(%) Shipments Samsung Apple Olive Others 2% 6% 8% 84%
  • 7. 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 camera II. No Multitasking III. No flash compatibility IV. 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.
  • 8. CURRENT SCENARIO 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.
  • 9. - SUCCESS AFTER FAILURE.
  • 10. 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
  • 11. AUTO MOBILE INDUSTRY (INDIA) 2008 – 2009 (CRISL) RESEARCH, SIAM 4% 2% 4% 4% 13% Ford India 20% General Motors Honda siel Hyundai Maruthi 53% Tata Others
  • 12. SALES FIGURES Enquiries for Jazz : 50,000 in June, Conversions : 4,000 Units June : 2,000 units July : 1,037 units August : 1,029 units September : 504 units
  • 13. 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
  • 14. INDUSTRY PERFORMANCE 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
  • 15. 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.
  • 16. OTHER HONDA CARS 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.
  • 17. - DIFFICULT TO TAP PREMIUM MARKET
  • 18. 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)
  • 19. MARKET SHARE (TOOTHPASTE INDUSTRY) Market Share (%) 1% 9% 18% Colgate 52% Close-Up Pepsodent 20% Sensodyne Others
  • 20. MARKET SHARE (PREMIUM TOOTHPASTES) Market Share (%) 6% 28% 35% Colgate Sensodyne Pepsodent 21% 10% Oral B Others
  • 21. 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).
  • 22. 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’

Editor's Notes

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