Harvard Case - Dettol: Marketing Research for Understanding Consumer Evaluations of Brand Extensions
"Dettol: Marketing Research for Understanding Consumer Evaluations of Brand Extensions" Harvard business case study is written by Anand Kumar Jaiswal, Arpita Srivastava. It deals with the challenges in the field of Marketing. The case study is 9 page(s) long and it was first published on : Nov 8, 2007
At Fern Fort University, we recommend a comprehensive marketing research strategy for Dettol to understand consumer evaluations of brand extensions. This strategy should encompass a combination of qualitative and quantitative research methods, including focus groups, surveys, and market testing, to gain insights into consumer perceptions, preferences, and willingness to pay for Dettol products beyond their core antiseptic offerings.
2. Background
This case study focuses on Dettol, a well-established brand known for its antiseptic products. The company is considering expanding its product portfolio by introducing new product lines, such as hand washes, body washes, and even skincare products. However, Dettol faces the challenge of understanding how consumers perceive these brand extensions and whether they are willing to pay a premium for them.
The main protagonists in this case are the Dettol marketing team, who are tasked with developing a successful marketing strategy for the brand extensions. They need to understand consumer behavior, competitive landscape, and potential market opportunities to ensure the success of their new product launches.
3. Analysis of the Case Study
To analyze the case, we will utilize a combination of frameworks:
1. SWOT Analysis:
- Strengths: Strong brand recognition, trusted reputation for hygiene and health, established distribution channels, loyal customer base.
- Weaknesses: Limited product portfolio, potential for brand dilution, reliance on antiseptic image, limited experience in new product categories.
- Opportunities: Expanding into new product categories, leveraging brand equity for growth, tapping into emerging markets, utilizing digital marketing channels.
- Threats: Increased competition from established brands, consumer skepticism towards brand extensions, economic downturns impacting consumer spending, changing consumer preferences.
2. Consumer Behavior Analysis:
- Target Market Segmentation: Identifying distinct customer segments based on demographics, psychographics, and usage patterns.
- Consumer Needs and Preferences: Understanding consumer motivations for purchasing hygiene and personal care products, their expectations regarding product features and benefits, and their willingness to pay a premium for Dettol's brand name.
- Brand Perception: Assessing consumer perceptions of Dettol's existing brand image and how it translates to potential brand extensions.
3. Competitive Analysis:
- Direct Competitors: Identifying key competitors in the target market and analyzing their product offerings, pricing strategies, marketing campaigns, and brand positioning.
- Indirect Competitors: Identifying potential competitors from other product categories that could offer similar benefits or solutions to consumers.
- Competitive Advantage: Determining Dettol's unique selling proposition and how it can differentiate itself from competitors in the new product categories.
4. Product Lifecycle Management:
- Product Development: Developing innovative product formulations and packaging that meet consumer needs and preferences.
- Product Introduction: Strategically launching new products to maximize market penetration and minimize risk.
- Product Growth: Optimizing marketing strategies to drive sales and build brand loyalty for the new product lines.
5. Value Proposition Development:
- Clear and Compelling Value Proposition: Defining the key benefits and value that Dettol brand extensions offer to consumers.
- Differentiation Strategy: Highlighting the unique selling points of Dettol's new products and how they stand out from competitors.
- Pricing Strategy: Developing a pricing strategy that aligns with consumer value perception and maximizes profitability.
4. Recommendations
1. Conduct Comprehensive Market Research:
- Qualitative Research: Utilize focus groups and in-depth interviews to gain a deep understanding of consumer perceptions, preferences, and concerns regarding Dettol brand extensions. Explore their willingness to pay a premium for Dettol's brand name in new product categories.
- Quantitative Research: Conduct surveys and online polls to gather data on consumer demographics, usage patterns, brand awareness, and purchase intent for potential new products.
- Market Testing: Pilot launch new products in select markets to gather real-world consumer feedback and refine product formulations, packaging, and marketing strategies before a wider release.
2. Develop a Clear Brand Positioning Strategy:
- Brand Extension Strategy: Define a clear strategy for extending the Dettol brand into new product categories, ensuring consistency with the core brand values and maintaining brand equity.
- Target Market Selection: Identify specific target markets for each new product line, considering their unique needs, preferences, and buying behaviors.
- Value Proposition Development: Craft compelling value propositions for each new product line, highlighting the unique benefits and value they offer to consumers.
3. Implement a Multi-Channel Marketing Strategy:
- Digital Marketing: Leverage social media platforms, search engine optimization (SEO), and influencer marketing to reach target audiences and build brand awareness.
- Traditional Marketing: Utilize television, print, and radio advertising to reach a wider audience and reinforce brand messaging.
- In-Store Marketing: Implement point-of-sale displays, product demonstrations, and promotional offers to drive sales and encourage trial.
4. Build Strong Customer Relationships:
- Customer Relationship Management (CRM): Implement a CRM system to track customer interactions, preferences, and purchase history to personalize marketing messages and enhance customer experience.
- Loyalty Programs: Develop loyalty programs to reward repeat customers and encourage continued engagement with the Dettol brand.
- Customer Service Excellence: Provide exceptional customer service to address concerns, build trust, and foster brand loyalty.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Dettol's core competencies in hygiene and health, while extending the brand's reach into new product categories.
- External Customers and Internal Clients: The recommendations address the needs of both external customers and internal clients, ensuring that the new product launches are successful and meet the company's strategic objectives.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate Dettol's new products from competitors.
- Attractiveness: The recommendations are expected to be attractive from a financial perspective, considering the potential for increased market share, revenue growth, and profitability.
6. Conclusion
By implementing a comprehensive marketing research strategy, developing a clear brand positioning strategy, and utilizing a multi-channel marketing approach, Dettol can successfully launch new product lines and achieve its growth objectives. The key to success lies in understanding consumer perceptions, preferences, and willingness to pay for Dettol brand extensions.
7. Discussion
Alternatives:
- Focusing solely on existing product categories: This approach would limit growth potential and could lead to stagnation in the market.
- Launching new products without sufficient market research: This approach could result in product failures and damage to the Dettol brand.
Risks:
- Brand dilution: If the new product lines are not carefully positioned and marketed, they could dilute the Dettol brand and damage its reputation.
- Consumer skepticism: Consumers may be skeptical of Dettol venturing into new product categories, potentially impacting their willingness to try new products.
- Competitive response: Competitors may respond aggressively to Dettol's brand extensions, potentially impacting market share and profitability.
Key Assumptions:
- Consumers are willing to pay a premium for Dettol's brand name in new product categories.
- Dettol can effectively differentiate its new products from competitors.
- The new product lines will be successful in meeting consumer needs and preferences.
8. Next Steps
- Phase 1 (3 months): Conduct market research, analyze data, and develop a brand positioning strategy.
- Phase 2 (6 months): Develop product formulations, packaging, and marketing materials for the new product lines.
- Phase 3 (9 months): Pilot launch new products in select markets and gather consumer feedback.
- Phase 4 (12 months): Roll out new products to the wider market, implement marketing campaigns, and monitor performance.
By following these steps, Dettol can successfully navigate the challenges of brand extension and achieve its growth objectives while maintaining its strong brand reputation.
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Case Description
This case is about a marketing research study conducted on brand extensions of Dettol. Dettol as a brand has got immense trust and loyalty from consumers. To achieve fast growth and leverage the Dettol brand name, Reckitt Benckiser India Limited introduced a number of brand extensions. Some of these extensions such as Dettol Soap and Dettol Liquid Hand Wash were are very successful, but most of the other extensions failed to perform in the market. The case discusses how a marketing research study can help in predicting the success of different brand extensions of Dettol.
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