What attributes should the company focus on while designing the communication plan For the exclusive use of J Barry, 2020 A00183 March 31, 2014 Revised 18 June 2019 Cerenity Sanitiser Marketing Research for New Product Launch (A) It was a cloudy afternoon in August 2013, and Manan Shah, Manager Sales, CERA Sanitaryware Limited (Cera), surveyed the busy Ahmedabad street below his office window He had just returned from a meeting with senior executives of Cera Atul Sanghvi, Chief Operating Officer P K Shashidharan, Vice President Marketing and Abbey Rodrigues, Vice President Sales The company had made its first foray into the fast moving consumer goods (FMCG) industry with its latest product Cerenity, a toilet seat sanitiser The concept behind the product was to introduce hygiene inside the bathroom, and it was primarily targeted at women who used public or shared restrooms frequently This was a crucial juncture for Cera as it had synchronised the product launch with the strategic positioning of the company as an overall bathroom solutions provider Cerenity would be one of the first products of its kind to be launched in the Indian market by a sanitaryware company, and Shah felt it was critical that Cera undertake a consumer behaviour study before the launch Cera, a company focused on innovation and market leadership, had developed Cerenity as an FMCG product that aligned with CERA's capabilities in creating bathroom solutions Shah glanced over the product test results on his desk He was very happy with the results They showed that Cerenity killed 99 of germs within 10 seconds of its use on the required surface The product had demonstrated the right amount of germ killing ability and fast action that Cera would claim in its product launch campaign Though the product looked excellent from a performance and reliability perspective, Shah was yet to determine what positioning and communication strategy the company should adopt to achieve the maximum product trial rates in the first few months of the launch The biggest question was whether the customers would accept this new concept We wanted to know what features would attract customers so that we could use them in our communication strategy, said Shah He needed help from marketing research to devise an effective marketing strategy A research team comprising a group of Indian Institute of Management, Ahmedabad (IIMA) students had conducted market research on Cerenity The team had used a variety of qualitative marketing research tools such as focus groups with users and non users, in depth interviews and participant observation As Shah went through the market research findings discussed in the report submitted by group, he wondered whether the research team had used the right research design He was not sure about the appropriateness of using various qualitative research methods when his objective was to use the marketing research to develop a plan for a successful product Prepared by Professor Anand Kumar Jaiswal and PGP students (2012 14), Sachin K Singh and A Manu of Indian Institute of Management, Ahmedabad This case is based on a marketing research project done by Sachin K Singh, A Manu, Abheet Dwivedi, Shaili Yadav, Renu Verma, Vikalp Jhambhulkar, and Arvind Maddireddy as a part of the Marketing Research and Information Systems course Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for class discussion They are not designed to present illustrations of either correct or incorrect handling of administrative problems 2014 by the Indian Institute of Management, Ahmedabad This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 2 of 14 A000183 launch and devise a supporting communication strategy He had his share of doubts about the sample size and selection of respondents for the study Company Overview Cera Sanitaryware Limited was an India based sanitaryware production company The company was in the business of manufacturing and selling sanitaryware products and was also involved in trading of bathroom accessories As a brand, Cera always aspired to stand out as a style icon in tiles and sanitaryware products and services available at affordable prices It positioned itself as an overall bathroom solutions provider It enjoyed high brand equity in the minds of consumers and was selected as a Power Brand in 2012, 1 an award conferred on the top 100 brands in the country Among the most prominent players in the industry, Cera was involved in a wide spectrum of businesses related to the manufacturing of ceramic and sanitaryware and various other bathroom related products It was also actively engaged in the import and export of such products in overseas markets Cera won the Product of the Year award in 2012 in the sanitaryware segment for the second consecutive year The company was one of the top five brands the other four were Hindware, Parryware, Jaguar and Kohler based on popularity in the sanitaryware segment 2 It was the third largest company in the organised sector of the sanitaryware industry with a market share of 24 as against 40 and 28 of its two competitors, Hindustan Sanitaryware and Industries Limited (Hindware brand) and Parryware (Roca brand), respectively 3 The company earned revenue of INR 191 36 crore (1,913 6 million) in 2009 10, which increased to INR 487 87 crore (4,878 7 million) in 2012 13 4 It had maintained a steady annual growth of 35 for the past three years and had shown a significant commitment to innovation and leadership Besides sanitaryware and faucets, it maintained a diverse product portfolio that included premium showers, steam cubicles and whirlpools Its products were often the preferred choice of customers who wanted fashionable products with a modern sensibility It endeavoured to provide complete bathroom solutions designed with a strong focus on style While other manufacturers struggled with price wars and rising costs, Cera took several initiatives keeping in mind the long term interests of the company It entered the luxury segment and aimed for aggressive retail expansion Cera was a pioneer in using natural gas in its manufacturing plants, which increased production by nearly 35 Cera had state of the art manufacturing plants that adhered to high quality standards Right from its inception in 1980, it had made efforts to equip itself with advanced backend technology and had given due importance to sustainability Sanitation Issues in India In India, the issue of hygiene and sanitation in public and shared toilets had long been an area of concern As the country moved away from the traditional Indian style toilet (i e , the squat toilet) to Western commodes, the issue of health and hygiene, especially in the case of toilet seats, had come sharply into focus It was no surprise that women were particularly prone to contracting bacterial infections from toilet seats As women increasingly took jobs that required travel, their use of common toilets at airports, workplaces, hostels, restaurants and malls significantly increased, exposing them to infections Urinary tract infection was the most common form of infection due to unhygienic toilet conditions The health problem was estimated to be affecting This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 3 of 14 A000183 150 million people every year globally, the majority of whom were women 5 Clearly, there was a need for a product that could protect women from infections caused by unhygienic toilet seats Cerenity The Concept The idea behind launching Cerenity was to introduce the dimension of personal hygiene to the company's product portfolio Cerenity was a novel product that was designed to address the issue of hygiene on the go This category, at that time, was at a nascent stage in India 6 The concept for Cerenity grew out of the need for a sanitiser for women travellers who had to use common restrooms This need was accentuated by women's restroom usage patterns and behaviour, which was significantly different from men and which increased their risk of contracting urinary infections Cerenity was a one stop solution for women It was a small sanitiser spray that could easily be carried in a handbag All the user had to do was spray the product on the toilet seat cover It aimed to provide women with a feeling of safely and protection when using common toilets The product offered a number of features it was a sanitiser and deodoriser in the form of an easy to apply, hand held aerosol based spray (Exhibit 1) The target segment for the product was higher income women, that is, women belonging to socio economic class (SEC) A, a especially those who worked, travelled frequently or lived in shared apartments or hostels The product was for women who did not want to compromise on hygiene and safety The company decided to focus on cities that were information technology (IT) hubs such as Bangalore, Mumbai, Pune and Delhi As a high involvement product, Cerenity was expected to improve Cera's brand salience and imagery Apart from brand reinforcement, it would also broaden the brand's reach as the product would be sold through a large number of channels, thereby eventually establishing its footprint in diverse marketplaces THE RESEARCH STUDY The aim of the research study was to help the company better understand customers' needs, their attitude towards the product and their usage behaviour The study was also expected to help Cera design the product launch programme and develop a communication and positioning strategy for Cerenity Another goal was to test the acceptance of the product as a solution to a specific need Explaining the rationale for the market research, Shah said Through a creative approach to market research, we would like to know what the pre usage and post usage behaviour patterns are that drive trials and repurchase rates in our target customers Also, the research should examine the customers' acceptance of this new product concept and their likelihood of purchase a The SEC classification system of households is based on two variables (a) education level of the chief wage earner or head of the family (b) ownership of the consumer goods For further information, see The Market Research Society of India (2011 May 3) Socio economic classification The new SEC system Retrieved from http imrbint com research The New SEC system 3rdMay2011 pdf This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 4 of 14 A000183 Defining the Problem Determining decision problems Shah wanted to know what marketing strategy the company should develop to launch the new product Cerenity was a new concept that was developed to cater to the existing unmet need of target customers for hygiene on the go It was, therefore, crucial for the company to understand how the concept would be perceived and whether the product was fulfilling that need The company wanted to know whether the customers would accept the product, and if yes, then what should be its communication strategy to ensure the maximum trials during its launch Also, the company had to decide on the right positioning strategy to gain consumers' acceptance of the product and create the right image of the product in their minds Cerenity was a first mover in the Indian market in this product category Hence, it was very essential for Cera to devise a communication programme to appropriately communicate the key benefits of the product to its customers Being the first mover, it also faced a major threat from competitors who could copy its idea if the product failed to penetrate the market quickly Therefore, an effective launch strategy was needed to maximise trials and repeat purchases of the product in the initial phase Formulation of research questions The team, after discussions with company executives, outlined the following research questions to address the above mentioned decision problems Which specific consumer segment(s) should the company primarily target for the new product Was there any secondary target segment that could also be potentially looked at Does the product concept fit with the needs of the target consumer segment How should the product be positioned What attributes of the product should be focused on What are the key attributes of the product that the consumer values when making a purchase decision What are the product shortcomings and perceived benefits for the user in the target segment What would be the optimum price range for the product that would be acceptable to users in this category Information required To address these research questions, the following information was required Target consumer segment What would be right basis on which to segment the market Is there a specific customer segment(s) that could be readily targeted Were there consumers who were actively looking for this product Attributes of the product Information on the basic need for such a product and on the various product attributes that the consumer values also, information on possible features that enhance the usability of the product for consumers Positioning An appropriate positioning strategy had to be developed for the product The most valued attributes and most intense and relevant consumer needs would drive the positioning of the product Importance of attributes Customer perceptions about the various attributes of the product and the relative importance given to each of them This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 5 of 14 A000183 Pricing After deciding on the target segment and product attributes, information would be needed on the price sensitivity of customers in this segment Communication An effective communication strategy had to be designed for the product launch (in its initial phase) Locations Information was needed to decide on locations where the product could be launched so as to enhance trials The goal of the market research was to also to understand the product usage behaviour of its target customers This would help unveil the best method of advertising to encourage customers to not only purchase the product in the initial launch phase but to also make repeat purchases and recommend it to others RESEARCH DESIGN Exploratory Research The first phase of the research involved a review of the relevant literature and analysis of secondary data gathered from published sources In addition, the team collected primary data from target customers using a qualitative research approach which was conducted with users as well as non users of the product The information collected from test users of the product related to their evaluation of the product attributes, their level of satisfaction or dissatisfaction with the product, and their actual experience and issues faced while using the product The insights generated from non users focused on their awareness of and reactions to the product concept Also, the team observed various locations in which the product was expected to be primarily used to capture consumer insights in a natural setting Literature Review The key objectives of the literature review were 1 To review existing studies on improving hygiene conditions for public and shared restroom toilet seats and how women perceive risks associated with the use of public and shared toilets 2 To review extant research on the probable risks, in the form of infections or disease, associated with the use of common toilet seats Various studies pointed to different health related problems faced by women using common toilets A patent application filed in the United States for a public restroom toilet seat sanitising apparatus states the following 7 Many people in need of using such facilities common toilets hesitate to do so because of the fear that sitting on the toilet seat might result in the catching of generally sexually transmitted diseases, resulting from germs, virus and bacteria left on the seat by previous occupants In those circumstances where the toilet seat was nevertheless used, many of the attending public first attempt to cover the seat with toilet paper, while others first rinse the toilet paper in an adjacent sink before washing down the seat Urinary tract infection (UTI), defined as the colonisation or invasion of the structures in the urinary tract by a microorganism, 8 was a common health problem Further, women were more This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 6 of 14 A000183 susceptible to UTIs than men because they had a shorter urethra UTI occurrence was more common in the developing world, primarily due to poor sanitation, lower levels of personal hygiene and less hygienic working and living conditions 9 Another study highlighted the general perception that a common or shared toilet was unclean It also found that people were likely to try to avoid direct contact with a toilet seat The study further examined various health hazards that could be caused by infections contracted from sharing toilets It observed that although the risks associated with the transmission of such diseases were minimal, the perceived risk was generally high among women 10 From their review of various studies and published literature on the subject, the team generated the following insights Women took more precautions then men when using sanitary facilities There was a general fear in the minds of users that shared or common toilet seats and sanitary facilities were more likely to be unclean and unhygienic They also wanted to avoid direct contact with toilet seats and, if possible, use precautionary measures They also perceived high risks (in the form of bacterial infections) from unhygienic sanitary conditions UTIs were one type of bacterial infection that had a serious impact on the health of women Qualitative Research As their next step, the team adopted qualitative methods to generate insights on consumer acceptance of the new product Qualitative research helped in developing a comprehensive understanding of context and product usage behaviour, which was not possible through quantitative research such as surveys or experiments Key insights from the qualitative research were as follows Participant Observation The primary goal of using this approach was to study different settings where the new product could be used by consumers The goal was also to assess the attitude and usage behaviour of consumers, which would provide the context for developing the sampling approach and interview guidelines for subsequent phases of research The research team selected and observed the following sites, broken down into three main categories, for approximately 10 days to study women's usage of sanitation facilities in actual settings and generated qualitative insights to further guide the interview and focused group discussion Malls and multiplexes Users of sanitation facilities at malls were more sophisticated and looked for extreme levels of hygiene Most of them first checked the cleanliness of the floor and then the washbasin, and only if they found these appropriate would use the toilet Many even requested the person in charge of cleaning the restroom to clean the toilet seat and toilet before they used it In judging the hygiene level of the facilities, they checked for the presence of tissue paper and dustbins Typically, the frequency of cleaning was high at these locations but suffered during peak periods, such as a movie interval Workplaces Toilets at workplaces were observed to be hygienic as they were cleaned more often Apart from cleaning, care was also taken to keep the air fresh and pleasant This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 7 of 14 A000183 Here too, women generally checked the washbasin and the floor to gauge the cleanliness of the toilet They also requested the janitor to clean the toilet if required The frequency of cleaning was highest in this setting as the janitorial staff cleaned the toilet after almost every use Hostels, dormitories or shared residential apartments The frequency of cleaning at these sites was found to be the lowest among the three roughly once or twice a day However, there were comparatively fewer users of the toilets in these places The users did not have any other option but to use the facilities Hence, each user followed the unwritten rule of leaving the toilet clean after using it Scented candles were often used in the toilets to keep the air fresh Residents did not use toilets that were in an extremely unhygienic state and instead chose to use one on another floor or at another location Long Interviews The team conducted face to face interviews with SEC A women using shared hostel sanitary facilities as well as professional women using shared toilets in workplaces in order to analyse their behaviour and capture insights Selection of Interviewees Based on their background research, the team identified interview candidates who could share their opinions on the new product with them A demographically diverse group of people were interviewed within the following categories hostel residents (college going SEC A women and paying guests), professionals and frequent travellers The two interview formats were as follows 1 Traditional A pre determined set of questions employed in all the interviews 2 Laddering Free wheeling or additional questions aimed at obtaining certain specific responses from the interviewees The team conducted one on one interviews with 22 respondents Of these, 15 interviews were conducted face to face and eight were conducted by telephone The telephonic interviews helped the team reduce any regional bias that might have come from convenient sampling Interviewees were given no context about the product They were asked about their hygiene related needs and habits Based on the interviews, the team generated various insights and identified key factors that would help in determining the desirable product attributes of a toilet seat sanitiser (Exhibit 2) The team felt these insights were specific to SEC A consumers and might not extend or apply to other socio economic classes Focus Groups Focus group (FG) discussions got participants to share their feelings and actual experiences on the subject and they were quite willing to do so as the topic was very important to them Essentially, the FGs helped the team understand how the target segment looked at a particular product feature, what value they would derive from it and how important it was for them The FG discussions were recorded and subsequently transcribed for analysis The team held separate FGs with users and non users of the product This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 8 of 14 A000183 FGs Non users These FGs were conducted with an understanding of the potential user's views on restrooms hygiene and the viability of the concept of a toilet seat sanitiser The team ensured that the FGs were homogeneous in terms of socio economic characteristics, i e , participants were all female students of IIMA in the age group of 2228 years Two FG discussions were held with nine participants in each group The team conducted a preliminary check to make sure that all FG participants were unaware of the product launch FGs Pilot Test Product samples were given to a group of 30 young female students at IIMA A week later, the team conducted an FG with nine participants to learn about their experience with the product and their evaluation of it During the 30 minute discussion, the group touched on various aspects of the product such as portability, durability, bottle design perception and preferred usage of the product The key findings from the discussion are provided in Exhibit 3 The Findings Through their exploratory research involving secondary data analysis, participant observation, in depth interviews and FGs, the team gained an understanding of the overall need and potential for such a product in the market The team also found common attributes that people valued in the product There were a number of differences among respondents in terms of their usage behaviour and their motives for using the product for personal care While many of the responses were related to the past experiences of the respondents, others were a result of their first experience of using the product in the trial The following were the key insights of the qualitative research constituting participant observation, long interviews and focus groups, along with some direct quotes from participants 1 Meaning of toilet hygiene Clean and comfortable to use Toilet hygiene to me means everything from the cleanliness of the washbasin to the cleanliness of the floor Toilet hygiene to me is not just how clean a toilet is but also how comfortable I am in using it 2 Use of shared common toilets High perception of risk of using shared common toilets without any protection I do not sit directly on the seat but squat over it, keeping some space between myself and the seat I would definitely not use it at any cost I am scared of various infections that I might catch due to the unhygienic conditions of the toilet I would definitely avoid it as I have seen the consequences of using unhygienic toilets 3 Willingness to try and use the product regularly Willingness to try the product was very high Participants showed a strong inclination for trial This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 9 of 14 A000183 I generally do not use the toilet if I do not find it clean enough, but if I have to, I use tissues and hand sanitiser to clean it for my own comfort I generally avoid the use of such toilets and would love to try anything that would make it more comfortable for me to use them I still do not know about buying it regularly, but I definitely would like to give it a try 4 Awareness of the product concept Low awareness about such a product existing in the market Well, I have heard of some spray for the seat and then an automatic system to dry it, but this is not found in India I really do not know A spray cleaning the toilet seat Can you tell me more about the way this product is made to be used 5 Idea of carrying the product in public places They doubted the effectiveness of such a product in public toilets and also found the idea of carrying the product uncomfortable, signalling that the product could face a tough time generating regular users Well, as I said, in the places where I find toilets unhygienic to use, I still doubt if this product would work in those places 6 Use at the workplace Workplaces are generally clean, but the use of the product may still be essential My office has a very clean toilet My floor has very few ladies there so I can use it without any apprehensions They have a proper dispenser, which can be used to spray disinfectant on a tissue and wipe off the seats to clean them 7 Key places identified for use Hospitals, malls, trains, railway stations, restaurants and airports I think in public lavatories Not in homes because there is already a strong focus on keeping personal toilets clean 8 Response to the product formula Spray, gel or liquid A spray would work best, as I would not have to touch the seat with my own hand 9 Experience with first trial (for pilot users) Ease of use difficult to figure out the proper way of using the product When the sanitiser was sprayed on the toilet seat, it didn't evaporate quickly Thus the waiting time was quite long and unnecessarily exhausting Packaging and portability Its packaging makes it appear more like a pain relieving spray If it is meant for travellers, it should be available in small spray packs The bottle design looks like that of a deodorant If it is kept in retail shops for consumers to buy, it should have the look and feel of a sanitiser with a transparent bottle This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 10 of 14 A000183 10 Other insights and derived implications Many women avoided drinking water two to three hours prior to a journey as they were reluctant to use public restrooms Traditional Indian style toilets were preferred to Western style toilets for public use as the former made no contact with the skin Many users were looking for a product that could be kept in the restrooms and not something that they had to carry around Along with killing germs, the product should ensure that toilets look clean and dry The exploratory research identified the following variables as being potentially important from the perspective of customers 1 2 3 4 5 6 7 Germ killing effectiveness Ease of use Portability Fragrance strength and type of fragrance Time of action instant dryness after application Product form spray, gel and liquid Price (three levels at INR 100, INR 150 or INR 200) Evaluating the Marketing Research The results of the market research study gave Shah confidence in the market potential of Cerenity He felt that the results of the study clearly supported the main assumptions behind the development of the product The study showed that women were uncomfortable using public and common restrooms They wanted a product that could effectively sanitise the seats of public toilets However, Shah was not sure of the appropriateness of the team's research design He was hoping to see crisp quantitative figures, charts and tables that could be interpreted easily and without any biases The team argued that since they did not have any testable hypotheses regarding product acceptance and usage behaviour, adopting qualitative research was an appropriate choice Further, Shah was sceptical about the team's choice of adopting a complex approach using multiple methods such as participant observation, in depth interviews and focus group discussions He felt that the team could have obtained similar results by conducting in depth interviews alone Were FGs the right choice when the research study dealt with a product that was of quite a personal nature for consumers What was the need to use the participant observation method He also had questions regarding the size and representation of the sample and how these might have affected the results of the study This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 11 of 14 A000183 EXHIBIT 1 Product Package Look Source Company records This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 12 of 14 A000183 EXHIBIT 2 Insights from Customer Interviews 1 Places where participants had concerns about toilet hygiene They were not afraid of using the toilet at home as they knew with whom they were sharing the toilet They preferred not to travel by train and avoided public toilets, which they found to be very unhygienic Their major contact with public toilets was in offices and malls In offices with dedicated cleaners, they did not have hygiene concerns However, at workplaces catering to a larger employee base, participants said they were reluctant to use the commode and preferred not to sit directly on the seat In malls with high footfalls, it was the same case 2 Responses on finding unclean toilets If they found that the toilet seat was wet, they either skipped that particular commode, or if they had no other option, they did not sit directly on the seat They were reluctant to use tissue to wipe it dry 3 Perceived health concerns of using unclean toilets Rashes on the body were one major issue They also felt that, in unhygienic restrooms, they faced the risk of being infected with the disease of the person who had used that toilet previously They did not particularly identify urinary tract infection as an issue 4 Remedial measures Proper cleaning staff should be maintained at public places People sometimes did not observe proper restroom etiquette Public places were, in general, dirty and the problem would be resolved only when people learned to behave more civic mindedly On an individual level, they could not think of any product that could aid hygiene under such conditions 5 The role of a sanitiser in one's daily routine It could be used on one's hands before eating, etc Using it on any surface was a new concept, indicating that the person was over sensitive about hygiene In the case of toilet seats, participants preferred not to apply sanitisers on tissue to wipe them clean On describing the concept of a spray on product for toilet seats to respondents, further insights were obtained Such a product was good only if it dried quickly after use It should be handy and available in a convenient packaging This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 13 of 14 A000183 EXHIBIT 3 Excerpts from Focus Group Discussions Characteristics Ease of use Remarks When the sanitiser was sprayed on the toilet seat, it didn't evaporate quickly Thus, the waiting time was quite long and unnecessarily exhausting The product should evaporate quickly after spraying because no one wants a wet toilet seat to begin with Portability If it is meant for travellers, then it should be available in small spray packs Substitutes Hand sanitiser, which is easy to carry Can be dabbed on a piece of a tissue paper and used for the same purpose Bottle design The bottle design looks like that of a deodorant If it is kept on retail shelves for consumers to buy, it should have the look and feel of a sanitiser with a transparent bottle If it is kept in restaurants or malls, it should be in a dispenser where the same product can be used for sanitising hands and seats Possible enhancements The product should have the option of a multipurpose usage where it can be used as a hand sanitiser and in other places settings Places where it can be used Places where there are a lot of people and activity and hence cleanliness is jeopardised, such as restaurants Public toilets such as Sulabh can be also considered, but in India, public toilets are so dirty that users prefer not to use the Western style commode anyway Thus the product may have limited use for consumers This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 14 of 14 A000183 REFERENCES Cera India website Corporate Style Innovation Leadership Retrieved from http www ceraindia com Content aspx conId 6, on August 10, 2013 2 Top 5 best sanitary ware brands in India Era Technologies Retrieved from http www era la top 5 bestsanitary ware brands in india html, on August 10, 2013 3 CRISIL IER Independent Equity Research (2003) Cera Sanitaryware Ltd Retrieved from http www cera india com Content aspx conId CorporatePresentation, on March 20, 2014 4 Cera India website (2013) Corporate presentation Analyst meet Retrieved from http www ceraindia com Content aspx conId CorporatePresentation, on March 20, 2014 5 Kumar, A (2013, March 14) Urinary tract infection an evaluation Indian Health Journal Retrieved from http indianhealthjournal wordpress com 2012 03 14 urinary tract infection an evaluation on August 1, 2013 6 Cera India website Retrieved from http www cera india com Content aspx conId 6, on August 11, 2013 7 United States Patent (2011) Dipano, Patent Number US8079094 B2, Date of patent Dec 20 Retrieved from http www google com patents US8079094, on July 25, 2013 8 Kumar A (2013, March 14) Op cit 9 Ibid 10 Shmerling, R H (2011) The hazards of bathroom seats Beth Israel Deaconess Medical Center on January 13 Retrieved from http www intelihealth com IH ihtIH c 9273 35323 330519 html d dmtHMSContent on August 10, 2013 1 This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 A00184 March 31, 2014 Revised 18 June 2019 Cerenity Sanitiser Marketing Research for New Product Launch (B) It was September 2013, and Manan Shah, Manager (Sales) at Cera Sanitaryware Limited, pored over the findings of a recently concluded market research study at the company headquarters in Ahmedabad, India His company had decided to enter the Indian fast moving consumer goods (FMCG) industry with its first product, Cerenity, a toilet seat sanitiser The product was conceptualised and developed keeping in mind the needs of women who frequently used public washrooms The idea behind the product was to make it hygienic and safe to use public or shared toilets This was consistent with the market positioning of Cera as an overall bathroom solutions provider Cerenity was a one of its kind product in the market, and Shah was well aware of the need for a carefully formulated product launch strategy He knew that it would be important to develop a thorough understanding of consumer attitude towards the new product Thus, he approached a group of second year MBA students of Indian Institute of Management, Ahmedabad (IIMA) to carry out a market research study for the company The research team conducted comprehensive marketing research on Cerenity in two stages In the first stage, the team did an exploratory study using a mix of qualitative research tools such as focus groups with users and non users, in depth interviews and participant observation Shah had already analysed the findings of the exploratory study In the second stage, the research team conducted a conclusive study in which they adopted a quantitative research approach and analysed the collected data using quantitative research methods such as factor analysis, multiple regression, cluster analysis and conjoint analysis Now, as Shah studied the results of the quantitative survey, he wondered how best to use the findings to formulate a strategy to successfully introduce the product in the market The short term goal of the strategy was to maximise trials leading to the product's acceptance among target customers, while its long term aim was to establish Cerenity as a quality brand in the market and build customer loyalty for it The Study The objective of the marketing research study was to develop a thorough understanding of customers' needs and assess their attitude towards Cerenity It aimed at testing consumers' acceptance of the product The findings of the study were expected to help the company introduce Cerenity in the market and design an effective communication plan for its launch Also, it would Prepared by Professor Anand Kumar Jaiswal and PGP students (2012 14), Sachin K Singh and A Manu of Indian Institute of Management, Ahmedabad This case is based on a marketing research project done by Sachin K Singh, A Manu, Abheet Dwivedi, Shaili Yadav, Renu Verma, Vikalp Jhamblulkar, and Arvind Maddireddy as a part of the Marketing Research and Information Systems course Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for class discussion They are not designed to present illustrations of either correct or incorrect handling of administrative problems 2014 by the Indian Institute of Management, Ahmedabad This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 2 of 21 A000184 help in deciding the target segment for the product and developing an appropriate positioning strategy Findings from the Exploratory Research In the first stage, the team did a review of the literature, analysing information gathered from various published sources Next, it conducted qualitative research to obtain consumer insights on their evaluation of the new product The team employed different qualitative research techniques such as focus groups, in depth interviews and participant observation The qualitative research generated the following insights Meaning of toilet hygiene For most women, toilet hygiene meant clean toilets that were comfortable to use Perception of shared common toilets Most women felt that using shared common toilets without any protective measures involved a high level of risk and could lead to a variety of infections They preferred to use Indian style (squat) toilets to Western commodes in public restrooms Willingness to try the product Women participating in the study showed a high degree of willingness to try a new product that would make it comfortable for them to use shared toilets Low awareness of the product concept Participants, in general, were not aware if such a product existed in the market Doubts regarding product effectiveness Some participants were sceptical about the efficacy of such a product Need for product at workplace Workplace toilets were generally perceived to be clean However, consumers still felt that the product would give them an added sense of protection and comfort when using workplace toilets Locations for product use Participants felt that the product would be needed in public restrooms in such places as hospitals, malls, trains, railway stations, restaurants and airports It was very unlikely to be used in private spaces such as homes, as the toilets in these areas were perceived as being adequately clean Spray as preferred product form Of the different product forms such as spray, gel and liquid, spray was the preferred choice of respondents as it did not require them to touch the toilet seat with their hands Experience with product trial among pilot users Participants had some difficulty in understanding the right way to use the product Many pointed out that after spraying the sanitiser, the seat did not dry quickly, thus increasing the waiting time to use the toilet This was unnecessarily tedious In addition to killing bacteria, respondents felt that the product should also keep toilets clean and dry Packaging and portability Participants felt that the product should be offered in small spray sizes so that it could be carried easily when travelling They felt that carrying the product in the present form would be inconvenient Some users suggested that the product should be kept in the toilets rather than carried around They thought that the product should have the look and feel of a sanitiser and come in transparent bottles With the help of the exploratory research, the team identified the following variables as being important for customers and potentially affecting their purchase decisions This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 3 of 21 1 2 3 4 5 6 7 A000184 Germ killing effectiveness Ease of use Ease of carrying Fragrance strength and type of fragrance Time of action Instant dryness after application Product form spray, gel and liquid Price (three levels at INR 100, INR 150 or INR 200) Conclusive Research The exploratory research was followed by a quantitative study, which was the conclusive phase of the research As a part of this phase, the team conducted a pilot test of the product concept among female students at IIMA who were already part of the target segment The research team distributed a total of 40 product samples within the IIMA campus They prepared different questionnaires for pilot users and non users to capture similarities and differences in their evaluation of the product The team also conducted surveys to collect primary data, which was then analysed to address the project research questions Non user group survey The team administered the non user survey to various customers from the target group Respondents were randomly selected from the target group for the survey The team used the survey analysis tool Qualtrics to collect data online (the survey questionnaire for the non user group is given in Exhibit 1a) The data was used to understand the purchase decision making process, to identify the target segment and to determine the optimal combination of features in the product Pilot test survey Out of the 40 samples that were distributed for this study (based on convenience), the team received 35 responses to the questionnaires administered to the pilot test user group (the survey questionnaire is provided in Exhibit 1b) The data collected was used to analyse product performance related features and post purchase decision making Data Analysis Identifying Purchase Drivers Regression Analysis The team performed a regression analysis to understand the factors driving customers' willingness to purchase the product The following variables were identified Likelihood of purchase Frequency of public toilet usage Health problems experienced in general public toilets Health problems experienced in toilets at workplaces study areas Health problems experienced in toilets at malls multiplexes Health problems experienced in toilets at airports This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 4 of 21 A000184 They conducted multiple regression analysis by considering the likelihood of purchase as a dependent variable while perceived health problems related to infections contracted from unhygienic toilet seats in public restrooms at workplaces, study areas, malls, multiplexes and airports were regarded as independent variables After cleaning up the data and removing the outliers for the analysis, the data was regressed to get the results shown in Exhibit 2 The regression results showed that perceived health problems related to infections from airport toilets were insignificant in deciding the likelihood of purchase, whereas perceived health problems from unhygienic toilet seats at workplaces, study areas, malls and multiplexes drove the likelihood of purchase Perceived health problems due to unhygienic toilet seats in general public toilets also positively influenced the likelihood of purchase Identifying Dimensions Underlying Evaluation of Product Factor Analysis Through the qualitative study, the research team identified variables on which the new product was evaluated by the respondents In order to identify dimensions out of these variables, factor analysis was conducted on the collected data Cerenity was a new product and hence it was critical for the team to carefully identify the underlying dimensions in customers' purchase behaviour, which would help the company develop an effective communication programme The exploratory research identified eight different attributes that could possibly affect the purchase behaviour of the customer for this new product segment likelihood, comfort, ease, confidence, carry, fragrance, price, germ killing and dryness The team conducted a factor analysis of these attributes to extract dimensions that could later be evaluated separately The primary indicator used to measure the adoption rates of the product by consumers was likelihood of purchase It was also considered a dependent variable The correlation among the variables is provided in Exhibit 3a The correlation matrix showed that confidence was related to comfort, ease and price The first stage was to analyse whether it was appropriate to use factor analysis on the data A key concern was whether there were enough correlations among the attributes to support the use of factor analysis The Kaiser Meyer Olkin measure of sampling adequacy value was 0 730, which was above the threshold of 0 5 Therefore, it was clear that factor analysis could be effectively performed on the data Dependent Variable Independent Variables Variable Likelihood Description Likeliness of purchasing the product Comfort Comfort using the product Ease of use Ease of using the product Confidence Confidence in the product Carry Ease of carrying the product Fragrance Fragrance of the product Price Price of the product Germ killing Germ killing capability of the product Dryness Seat drying capability of the product This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 5 of 21 A000184 To decide the total number of factors dimensions to be extracted, the team used an eigenvalue of greater than 1 Results indicated that two dimensions could be extracted out of the eight attributes Hence, the group selected a two factor model to identify the dimensions that could be used to represent the attributes The results showed that the two factors together accounted for a total variance of 54 17 The unrotated factor loadings of these attributes on the two factors are given Exhibit 3b The rotated factor loadings after Varimax rotation are indicated in Exhibits 3c and 3d The next stage involved examining the associations of the attributes with either of the two dimensions The team first decided to use a factor loading cut off value of 4 Only factor loadings above this were considered to be significant others were ignored The results showed that all the attributes had clear loading on both the dimensions, except ease of carrying, which had cross loading on both the dimensions Through careful examination, the team felt that the ease of carrying variable would be more aptly associated with the set that contained ease of use, comfort and confidence and not price, fragrance and germ killing After considering the constituent attributes, the two dimensions extracted were convenience and effectiveness The attributes of comfort, ease of use, confidence, ease of carrying and dryness were clubbed together in the rotated factor D1, identified as convenience Fragrance, price and germkilling were part of the rotated factor D2, labelled effectiveness The next step was to compute the empirical values for these two dimensions This was computed by using the factor score method The two factors were then used in the regression model as independent variables The results of the regression analysis are provided in Exhibit 4 The results indicated the following Likelihood 0 15 0 15 Convenience 0 17 Effectiveness The results showed that the effectiveness dimension did not play a significant role in the purchase decision as the corresponding coefficient was not significant at 5 However, the convenience dimension had a statistically significant effect on the likelihood of purchase The team concluded that the convenience dimension, comprising of comfort, ease of use, confidence and ease of carrying, played a major role in consumers' decision to purchase the product The team identified the utilities attached to each attribute from a conjoint analysis done at a later stage in the study Identifying Customer Segments Cluster Analysis The next step was to understand the primary sub segments that could be targeted for this new product This was done using cluster analysis Data was collected from respondents on the six attributes they looked for in the product on a scale of 1 5 and their favourability toward the product A cluster analysis was then performed to identify the possible clusters and see which cluster displayed the maximum favourability This analysis could potentially help the company decide on its primary customer target group(s) The primary cluster analysis identified seven possible clusters However, four of these clusters were formed by individual outlier observations These observations were removed from the This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 6 of 21 A000184 analysis and a second cluster analysis was performed This analysis identified three optimal clusters (Exhibit 5a) that could be examined to decide on the customer target segment Each of these clusters were further analysed based on their choices in the survey Based on their mean ratings on the importance of attributes and favourability, the team made several important observations As illustrated in Exhibits 5b and 5c, the team classified two clusters as economy and premium sub segments based on their mean rating scores of the pricing variable The third one fell between the two clusters on the mean rating of the pricing variable and was moderately price sensitive It was classified as the middle sub segment The economy sub segment exhibited greater favourability towards the product compared to the other two sub segments, which had similar ratings on the importance of attributes and favourability Also, germ killing was equally important for all three clusters The team drew the following conclusions Cluster 1 was the economy sub segment that frequently visited malls and multiplexes and planned to use this product in these places Their ratings on the importance of price, ease of use, and ease of carrying were the highest Cluster 2 was the premium sub segment, which did not frequent malls but rather planned to use this product at home Maids would be the primary users of this product Ratings on the importance of price, ease of use and ease of carrying were the lowest in this segment for these reasons Cluster 3 was the middle sub segment and it was moderately price sensitive This segment visited malls regularly and was not very price sensitive They gave higher importance to ease of use and ease of carrying the product Germ killing efficiency was very important for all three clusters Deciding Product Formulation and Pricing Conjoint Analysis The team then conducted a conjoint analysis to help the company decide on product formulation and pricing In the survey, respondents rated a set of concept cards, each representing a potential product with a specific attribute combination The aim was to identify the relative importance of different attributes of the product and predict the likely market share of different product concepts Six main attributes were varied across concept cards as shown in Exhibit 6a A total of 18 concept cards were created and responses were analysed using conjoint analysis Conjoint analysis yielded the relative importance of the attributes as shown in Exhibit 6b This showed that among the selected attributes, the form of the product was the most important, followed by its germ killing capacity and time of action The other three attributes were relatively insignificant The utility (part worth) values are provided in Exhibit 6c It was also observed that the optimal product would be one with the following features Germ killing capability 99 Fragrance lime fresh Time of action less than one minute Form spray Price INR 151 200 Ease of carrying 50 ml size This document is authorized for use only by James Barry in 2020 For the exclusive use of J Barry, 2020 7 of 21 A000184 After a discussion with Cera executives, the team decided to estimate the likely market share of six different product variants These six variants had the following profiles Product A Germkilling 99 Jasmine Time of Action

Question

What attributes should the company focus on while designing the communication plan  For the exclusive use of J  Barry, 2020  A00183 March 31, 2014 Revised 18 June 2019 Cerenity Sanitiser  Marketing Research for New Product Launch (A) It was a cloudy afternoon in August 2013, and Manan Shah, Manager Sales, CERA Sanitaryware Limited (Cera), surveyed the busy Ahmedabad street below his office window  He had just returned from a meeting with senior executives of Cera Atul Sanghvi, Chief Operating Officer  P  K  Shashidharan, Vice President Marketing  and Abbey Rodrigues, Vice President Sales  The company had made its first foray into the fast moving consumer goods (FMCG) industry with its latest product Cerenity, a toilet seat sanitiser  The concept behind the product was to introduce hygiene inside the bathroom, and it was primarily targeted at women who used public or shared restrooms frequently  This was a crucial juncture for Cera as it had synchronised the product launch with the strategic positioning of the company as an   overall bathroom solutions provider    Cerenity would be one of the first products of its kind to be launched in the Indian market by a sanitaryware company, and Shah felt it was critical that Cera undertake a consumer behaviour study before the launch  Cera, a company focused on innovation and market leadership, had developed Cerenity as an FMCG product that aligned with CERA's capabilities in creating bathroom solutions  Shah glanced over the product test results on his desk  He was very happy with the results  They showed that Cerenity killed 99  of germs within 10 seconds of its use on the required surface  The product had demonstrated the right amount of germ killing ability and fast action that Cera would claim in its product launch campaign  Though the product looked excellent from a performance and reliability perspective, Shah was yet to determine what positioning and communication strategy the company should adopt to achieve the maximum product trial rates in the first few months of the launch    The biggest question was whether the customers would accept this new concept  We wanted to know what features would attract customers so that we could use them in our communication strategy,   said Shah  He needed help from marketing research to devise an effective marketing strategy  A research team comprising a group of Indian Institute of Management, Ahmedabad (IIMA) students had conducted market research on Cerenity  The team had used a variety of qualitative marketing research tools such as focus groups with users and non users, in depth interviews and participant observation  As Shah went through the market research findings discussed in the report submitted by group, he wondered whether the research team had used the right research design  He was not sure about the appropriateness of using various qualitative research methods when his objective was to use the marketing research to develop a plan for a successful product Prepared by Professor Anand Kumar Jaiswal and PGP students (2012 14), Sachin K  Singh and A  Manu of Indian Institute of Management, Ahmedabad  This case is based on a marketing research project done by Sachin K  Singh, A  Manu, Abheet Dwivedi, Shaili Yadav, Renu Verma, Vikalp Jhambhulkar, and Arvind Maddireddy as a part of the Marketing Research and Information Systems course  Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for class discussion  They are not designed to present illustrations of either correct or incorrect handling of administrative problems  2014 by the Indian Institute of Management, Ahmedabad  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  2 of 14 A000183 launch and devise a supporting communication strategy  He had his share of doubts about the sample size and selection of respondents for the study  Company Overview Cera Sanitaryware Limited was an India based sanitaryware production company  The company was in the business of manufacturing and selling sanitaryware products and was also involved in trading of bathroom accessories  As a brand, Cera always aspired to stand out as a style icon in tiles and sanitaryware products and services available at affordable prices  It positioned itself as an   overall bathroom solutions provider    It enjoyed high brand equity in the minds of consumers and was selected as a   Power Brand   in 2012, 1 an award conferred on the top 100 brands in the country  Among the most prominent players in the industry, Cera was involved in a wide spectrum of businesses related to the manufacturing of ceramic and sanitaryware and various other bathroom related products  It was also actively engaged in the import and export of such products in overseas markets  Cera won the   Product of the Year   award in 2012 in the sanitaryware segment for the second consecutive year  The company was one of the top five brands the other four were Hindware, Parryware, Jaguar and Kohler based on popularity in the sanitaryware segment  2 It was the third largest company in the organised sector of the sanitaryware industry with a market share of 24  as against 40  and 28  of its two competitors, Hindustan Sanitaryware and Industries Limited (Hindware brand) and Parryware (Roca brand), respectively  3 The company earned revenue of INR 191 36 crore (1,913 6 million) in 2009 10, which increased to INR 487 87 crore (4,878 7 million) in 2012 13  4 It had maintained a steady annual growth of 35  for the past three years and had shown a significant commitment to innovation and leadership  Besides sanitaryware and faucets, it maintained a diverse product portfolio that included premium showers, steam cubicles and whirlpools  Its products were often the preferred choice of customers who wanted fashionable products with a modern sensibility  It endeavoured to provide complete bathroom solutions designed with a strong focus on style  While other manufacturers struggled with price wars and rising costs, Cera took several initiatives keeping in mind the long term interests of the company  It entered the luxury segment and aimed for aggressive retail expansion  Cera was a pioneer in using natural gas in its manufacturing plants, which increased production by nearly 35   Cera had state of the art manufacturing plants that adhered to high quality standards  Right from its inception in 1980, it had made efforts to equip itself with advanced backend technology and had given due importance to sustainability Sanitation Issues in India In India, the issue of hygiene and sanitation in public and shared toilets had long been an area of concern  As the country moved away from the traditional Indian style toilet (i e , the squat toilet) to Western commodes, the issue of health and hygiene, especially in the case of toilet seats, had come sharply into focus  It was no surprise that women were particularly prone to contracting bacterial infections from toilet seats  As women increasingly took jobs that required travel, their use of common toilets at airports, workplaces, hostels, restaurants and malls significantly increased, exposing them to infections  Urinary tract infection was the most common form of infection due to unhygienic toilet conditions  The health problem was estimated to be affecting This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  3 of 14 A000183 150 million people every year globally, the majority of whom were women  5 Clearly, there was a need for a product that could protect women from infections caused by unhygienic toilet seats  Cerenity The Concept The idea behind launching Cerenity was to introduce the dimension of   personal hygiene   to the company's product portfolio  Cerenity was a novel product that was designed to address the issue of   hygiene on the go    This category, at that time, was at a nascent stage in India  6 The concept for Cerenity grew out of the need for a sanitiser for women travellers who had to use common restrooms  This need was accentuated by women's restroom usage patterns and behaviour, which was significantly different from men and which increased their risk of contracting urinary infections  Cerenity was a one stop solution for women  It was a small sanitiser spray that could easily be carried in a handbag  All the user had to do was spray the product on the toilet seat cover  It aimed to provide women with a feeling of safely and protection when using common toilets  The product offered a number of features  it was a sanitiser and deodoriser in the form of an easy to apply, hand held aerosol based spray (Exhibit 1)  The target segment for the product was higher income women, that is, women belonging to socio economic class (SEC) A, a especially those who worked, travelled frequently or lived in shared apartments or hostels  The product was for women who did not want to compromise on hygiene and safety  The company decided to focus on cities that were information technology (IT) hubs such as Bangalore, Mumbai, Pune and Delhi  As a high involvement product, Cerenity was expected to improve Cera's brand salience and imagery  Apart from brand reinforcement, it would also broaden the brand's reach as the product would be sold through a large number of channels, thereby eventually establishing its footprint in diverse marketplaces  THE RESEARCH STUDY The aim of the research study was to help the company better understand customers' needs, their attitude towards the product and their usage behaviour  The study was also expected to help Cera design the product launch programme and develop a communication and positioning strategy for Cerenity  Another goal was to test the acceptance of the product as a solution to a specific need  Explaining the rationale for the market research, Shah said    Through a creative approach to market research, we would like to know what the pre usage and post usage behaviour patterns are that drive trials and repurchase rates in our target customers  Also, the research should examine the customers' acceptance of this new product concept and their likelihood of purchase    a The SEC classification system of households is based on two variables  (a) education level of the chief wage earner or head of the family  (b) ownership of the consumer goods  For further information, see  The Market Research Society of India  (2011  May 3)  Socio economic classification  The new SEC system  Retrieved from http   imrbint com  research The New SEC system 3rdMay2011 pdf  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  4 of 14 A000183 Defining the Problem Determining decision problems  Shah wanted to know what marketing strategy the company should develop to launch the new product  Cerenity was a new concept that was developed to cater to the existing unmet need of target customers for   hygiene on the go    It was, therefore, crucial for the company to understand how the concept would be perceived and whether the product was fulfilling that need  The company wanted to know whether the customers would accept the product, and if yes, then what should be its communication strategy to ensure the maximum trials during its launch  Also, the company had to decide on the right positioning strategy to gain consumers' acceptance of the product and create the right image of the product in their minds  Cerenity was a first mover in the Indian market in this product category  Hence, it was very essential for Cera to devise a communication programme to appropriately communicate the key benefits of the product to its customers  Being the first mover, it also faced a major threat from competitors who could copy its idea if the product failed to penetrate the market quickly  Therefore, an effective launch strategy was needed to maximise trials and repeat purchases of the product in the initial phase  Formulation of research questions  The team, after discussions with company executives, outlined the following research questions to address the above mentioned decision problems  Which specific consumer segment(s) should the company primarily target for the new product  Was there any secondary target segment that could also be potentially looked at  Does the product concept fit with the needs of the target consumer segment  How should the product be positioned  What attributes of the product should be focused on  What are the key attributes of the product that the consumer values when making a purchase decision  What are the product shortcomings and perceived benefits for the user in the target segment  What would be the optimum price range for the product that would be acceptable to users in this category  Information required  To address these research questions, the following information was required  Target consumer segment  What would be right basis on which to segment the market  Is there a specific customer segment(s) that could be readily targeted  Were there consumers who were actively looking for this product  Attributes of the product  Information on the basic need for such a product and on the various product attributes that the consumer values  also, information on possible features that enhance the usability of the product for consumers  Positioning  An appropriate positioning strategy had to be developed for the product  The most valued attributes and most intense and relevant consumer needs would drive the positioning of the product  Importance of attributes  Customer perceptions about the various attributes of the product and the relative importance given to each of them  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  5 of 14 A000183 Pricing  After deciding on the target segment and product attributes, information would be needed on the price sensitivity of customers in this segment  Communication  An effective communication strategy had to be designed for the product launch (in its initial phase)  Locations  Information was needed to decide on locations where the product could be launched so as to enhance trials  The goal of the market research was to also to understand the product usage behaviour of its target customers  This would help unveil the best method of advertising to encourage customers to not only purchase the product in the initial launch phase but to also make repeat purchases and recommend it to others  RESEARCH DESIGN Exploratory Research The first phase of the research involved a review of the relevant literature and analysis of secondary data gathered from published sources  In addition, the team collected primary data from target customers using a qualitative research approach which was conducted with users as well as non users of the product  The information collected from test users of the product related to their evaluation of the product attributes, their level of satisfaction or dissatisfaction with the product, and their actual experience and issues faced while using the product  The insights generated from non users focused on their awareness of and reactions to the product concept  Also, the team observed various locations in which the product was expected to be primarily used to capture consumer insights in a natural setting  Literature Review The key objectives of the literature review were  1  To review existing studies on improving hygiene conditions for public and shared restroom toilet seats and how women perceive risks associated with the use of public and shared toilets  2  To review extant research on the probable risks, in the form of infections or disease, associated with the use of common toilet seats  Various studies pointed to different health related problems faced by women using common toilets  A patent application filed in the United States for a public restroom toilet seat sanitising apparatus states the following  7   Many people in need of using such facilities  common toilets  hesitate to do so because of the fear that sitting on the toilet seat might result in the catching of generally sexually transmitted diseases, resulting from germs, virus and bacteria left on the seat by previous occupants  In those circumstances where the toilet seat was nevertheless used, many of the attending public first attempt to cover the seat with toilet paper, while others first rinse the toilet paper in an adjacent sink before washing down the seat    Urinary tract infection (UTI), defined as   the colonisation or invasion of the structures in the urinary tract by a microorganism,   8 was a common health problem  Further, women were more This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  6 of 14 A000183 susceptible to UTIs than men because they had a shorter urethra  UTI occurrence was more common in the developing world, primarily due to poor sanitation, lower levels of personal hygiene and less hygienic working and living conditions  9 Another study highlighted the general perception that a common or shared toilet was unclean  It also found that people were likely to try to avoid direct contact with a toilet seat  The study further examined various health hazards that could be caused by infections contracted from sharing toilets  It observed that although the risks associated with the transmission of such diseases were minimal, the perceived risk was generally high among women  10 From their review of various studies and published literature on the subject, the team generated the following insights  Women took more precautions then men when using sanitary facilities  There was a general fear in the minds of users that shared or common toilet seats and sanitary facilities were more likely to be unclean and unhygienic  They also wanted to avoid direct contact with toilet seats and, if possible, use precautionary measures  They also perceived high risks (in the form of bacterial infections) from unhygienic sanitary conditions  UTIs were one type of bacterial infection that had a serious impact on the health of women  Qualitative Research As their next step, the team adopted qualitative methods to generate insights on consumer acceptance of the new product  Qualitative research helped in developing a comprehensive understanding of context and product usage behaviour, which was not possible through quantitative research such as surveys or experiments  Key insights from the qualitative research were as follows  Participant Observation The primary goal of using this approach was to study different settings where the new product could be used by consumers  The goal was also to assess the attitude and usage behaviour of consumers, which would provide the context for developing the sampling approach and interview guidelines for subsequent phases of research  The research team selected and observed the following sites, broken down into three main categories, for approximately 10 days to study women's usage of sanitation facilities in actual settings and generated qualitative insights to further guide the interview and focused group discussion  Malls and multiplexes  Users of sanitation facilities at malls were more sophisticated and looked for extreme levels of hygiene  Most of them first checked the cleanliness of the floor and then the washbasin, and only if they found these appropriate would use the toilet  Many even requested the person in charge of cleaning the restroom to clean the toilet seat and toilet before they used it  In judging the hygiene level of the facilities, they checked for the presence of tissue paper and dustbins  Typically, the frequency of cleaning was high at these locations but suffered during peak periods, such as a movie interval  Workplaces  Toilets at workplaces were observed to be hygienic as they were cleaned more often  Apart from cleaning, care was also taken to keep the air fresh and pleasant  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  7 of 14 A000183 Here too, women generally checked the washbasin and the floor to gauge the cleanliness of the toilet  They also requested the janitor to clean the toilet if required  The frequency of cleaning was highest in this setting as the janitorial staff cleaned the toilet after almost every use  Hostels, dormitories or shared residential apartments  The frequency of cleaning at these sites was found to be the lowest among the three roughly once or twice a day  However, there were comparatively fewer users of the toilets in these places  The users did not have any other option but to use the facilities  Hence, each user followed the unwritten rule of leaving the toilet clean after using it  Scented candles were often used in the toilets to keep the air fresh  Residents did not use toilets that were in an extremely unhygienic state and instead chose to use one on another floor or at another location  Long Interviews The team conducted face to face interviews with SEC A women using shared hostel sanitary facilities as well as professional women using shared toilets in workplaces in order to analyse their behaviour and capture insights  Selection of Interviewees  Based on their background research, the team identified interview candidates who could share their opinions on the new product with them  A demographically diverse group of people were interviewed within the following categories  hostel residents (college going SEC A women and paying guests), professionals and frequent travellers  The two interview formats were as follows  1  Traditional  A pre determined set of questions employed in all the interviews 2  Laddering  Free wheeling or additional questions aimed at obtaining certain specific responses from the interviewees The team conducted one on one interviews with 22 respondents  Of these, 15 interviews were conducted face to face and eight were conducted by telephone  The telephonic interviews helped the team reduce any regional bias that might have come from convenient sampling  Interviewees were given no context about the product  They were asked about their hygiene related needs and habits  Based on the interviews, the team generated various insights and identified key factors that would help in determining the desirable product attributes of a toilet seat sanitiser (Exhibit 2)  The team felt these insights were specific to SEC A consumers and might not extend or apply to other socio economic classes  Focus Groups Focus group (FG) discussions got participants to share their feelings and actual experiences on the subject and they were quite willing to do so as the topic was very important to them  Essentially, the FGs helped the team understand how the target segment looked at a particular product feature, what value they would derive from it and how important it was for them  The FG discussions were recorded and subsequently transcribed for analysis  The team held separate FGs with users and non users of the product  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  8 of 14 A000183 FGs Non users  These FGs were conducted with an understanding of the potential user's views on restrooms hygiene and the viability of the concept of a toilet seat sanitiser  The team ensured that the FGs were homogeneous in terms of socio economic characteristics, i e , participants were all female students of IIMA in the age group of 2228 years  Two FG discussions were held with nine participants in each group  The team conducted a preliminary check to make sure that all FG participants were unaware of the product launch  FGs Pilot Test  Product samples were given to a group of 30 young female students at IIMA  A week later, the team conducted an FG with nine participants to learn about their experience with the product and their evaluation of it  During the 30 minute discussion, the group touched on various aspects of the product such as portability, durability, bottle design perception and preferred usage of the product  The key findings from the discussion are provided in Exhibit 3  The Findings Through their exploratory research involving secondary data analysis, participant observation, in depth interviews and FGs, the team gained an understanding of the overall need and potential for such a product in the market  The team also found common attributes that people valued in the product  There were a number of differences among respondents in terms of their usage behaviour and their motives for using the product for personal care  While many of the responses were related to the past experiences of the respondents, others were a result of their first experience of using the product in the trial  The following were the key insights of the qualitative research constituting participant observation, long interviews and focus groups, along with some direct quotes from participants  1  Meaning of toilet hygiene  Clean and comfortable to use Toilet hygiene to me means everything from the cleanliness of the washbasin to the cleanliness of the floor  Toilet hygiene to me is not just how clean a toilet is but also how comfortable I am in using it  2  Use of shared common toilets  High perception of risk of using shared common toilets without any protection I do not sit directly on the seat but squat over it, keeping some space between myself and the seat  I would definitely not use it at any cost  I am scared of various infections that I might catch due to the unhygienic conditions of the toilet  I would definitely avoid it as I have seen the consequences of using unhygienic toilets  3  Willingness to try and use the product regularly  Willingness to try the product was very high  Participants showed a strong inclination for trial  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  9 of 14 A000183 I generally do not use the toilet if I do not find it clean enough, but if I have to, I use tissues and hand sanitiser to clean it for my own comfort  I generally avoid the use of such toilets and would love to try anything that would make it more comfortable for me to use them  I still do not know about buying it regularly, but I definitely would like to give it a try  4  Awareness of the product concept  Low awareness about such a product existing in the market Well, I have heard of some spray for the seat and then an automatic system to dry it, but this is not found in India  I really do not know  A spray cleaning the toilet seat  Can you tell me more about the way this product is made to be used  5  Idea of carrying the product in public places  They doubted the effectiveness of such a product in public toilets and also found the idea of carrying the product uncomfortable, signalling that the product could face a tough time generating regular users  Well, as I said, in the places where I find toilets unhygienic to use, I still doubt if this product would work in those places 6  Use at the workplace  Workplaces are generally clean, but the use of the product may still be essential My office has a very clean toilet  My floor has very few ladies there so I can use it without any apprehensions  They have a proper dispenser, which can be used to spray disinfectant on a tissue and wipe off the seats to clean them  7  Key places identified for use  Hospitals, malls, trains, railway stations, restaurants and airports I think in public lavatories  Not in homes     because there is already a strong focus on keeping personal toilets clean  8  Response to the product formula  Spray, gel or liquid A spray would work best, as I would not have to touch the seat with my own hand  9  Experience with first trial (for pilot users)  Ease of use difficult to figure out the proper way of using the product When the sanitiser was sprayed on the toilet seat, it didn't evaporate quickly  Thus the waiting time was quite long and unnecessarily exhausting  Packaging and portability Its packaging makes it appear more like a pain relieving spray  If it is meant for travellers, it should be available in small spray packs  The bottle design looks like that of a deodorant  If it is kept in retail shops for consumers to buy, it should have the look and feel of a sanitiser with a transparent bottle  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  10 of 14 A000183 10  Other insights and derived implications  Many women avoided drinking water two to three hours prior to a journey as they were reluctant to use public restrooms  Traditional Indian style toilets were preferred to Western style toilets for public use as the former made no contact with the skin  Many users were looking for a product that could be kept in the restrooms and not something that they had to carry around  Along with killing germs, the product should ensure that toilets look clean and dry  The exploratory research identified the following variables as being potentially important from the perspective of customers  1  2  3  4  5  6  7  Germ killing effectiveness Ease of use Portability Fragrance  strength and type of fragrance Time of action  instant dryness after application Product form  spray, gel and liquid  Price (three levels at INR 100, INR 150 or INR 200)  Evaluating the Marketing Research The results of the market research study gave Shah confidence in the market potential of Cerenity  He felt that the results of the study clearly supported the main assumptions behind the development of the product  The study showed that women were uncomfortable using public and common restrooms  They wanted a product that could effectively sanitise the seats of public toilets  However, Shah was not sure of the appropriateness of the team's research design  He was hoping to see crisp quantitative figures, charts and tables that could be interpreted easily and without any biases  The team argued that since they did not have any testable hypotheses regarding product acceptance and usage behaviour, adopting qualitative research was an appropriate choice  Further, Shah was sceptical about the team's choice of adopting a complex approach using multiple methods such as participant observation, in depth interviews and focus group discussions  He felt that the team could have obtained similar results by conducting in depth interviews alone  Were FGs the right choice when the research study dealt with a product that was of quite a personal nature for consumers  What was the need to use the participant observation method  He also had questions regarding the size and representation of the sample and how these might have affected the results of the study  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  11 of 14 A000183 EXHIBIT 1 Product Package Look Source  Company records  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  12 of 14 A000183 EXHIBIT 2 Insights from Customer Interviews 1  Places where participants had concerns about toilet hygiene  They were not afraid of using the toilet at home as they knew with whom they were sharing the toilet  They preferred not to travel by train and avoided public toilets, which they found to be very unhygienic  Their major contact with public toilets was in offices and malls  In offices with dedicated cleaners, they did not have hygiene concerns  However, at workplaces catering to a larger employee base, participants said they were reluctant to use the commode and preferred not to sit directly on the seat  In malls with high footfalls, it was the same case  2  Responses on finding unclean toilets  If they found that the toilet seat was wet, they either skipped that particular commode, or if they had no other option, they did not sit directly on the seat  They were reluctant to use tissue to wipe it dry  3  Perceived health concerns of using unclean toilets  Rashes on the body were one major issue  They also felt that, in unhygienic restrooms, they faced the risk of being infected with the disease of the person who had used that toilet previously  They did not particularly identify urinary tract infection as an issue  4  Remedial measures  Proper cleaning staff should be maintained at public places  People sometimes did not observe proper restroom etiquette  Public places were, in general, dirty and the problem would be resolved only when people learned to behave more civic mindedly  On an individual level, they could not think of any product that could aid hygiene under such conditions  5  The role of a sanitiser in one's daily routine  It could be used on one's hands before eating, etc  Using it on any surface was a new concept, indicating that the person was over sensitive about hygiene  In the case of toilet seats, participants preferred not to apply sanitisers on tissue to wipe them clean  On describing the concept of a spray on product for toilet seats to respondents, further insights were obtained  Such a product was good only if it dried quickly after use  It should be handy and available in a convenient packaging  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  13 of 14 A000183 EXHIBIT 3 Excerpts from Focus Group Discussions Characteristics Ease of use Remarks When the sanitiser was sprayed on the toilet seat, it didn't evaporate quickly  Thus, the waiting time was quite long and unnecessarily exhausting  The product should evaporate quickly after spraying because no one wants a wet toilet seat to begin with  Portability If it is meant for travellers, then it should be available in small spray packs  Substitutes Hand sanitiser, which is easy to carry  Can be dabbed on a piece of a tissue paper and used for the same purpose  Bottle design The bottle design looks like that of a deodorant  If it is kept on retail shelves for consumers to buy, it should have the look and feel of a sanitiser with a transparent bottle  If it is kept in restaurants or malls, it should be in a dispenser where the same product can be used for sanitising hands and seats  Possible enhancements The product should have the option of a multipurpose usage where it can be used as a hand sanitiser and in other places  settings  Places where it can be used Places where there are a lot of people and activity and hence cleanliness is jeopardised, such as restaurants  Public toilets such as Sulabh can be also considered, but in India, public toilets are so dirty that users prefer not to use the Western style commode anyway  Thus the product may have limited use for consumers  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  14 of 14 A000183 REFERENCES Cera India website  Corporate Style  Innovation  Leadership  Retrieved from http   www ceraindia com Content aspx conId 6, on August 10, 2013  2 Top 5 best sanitary ware brands in India  Era Technologies  Retrieved from http   www era la top 5 bestsanitary ware brands in india html, on August 10, 2013  3   CRISIL IER Independent Equity Research  (2003)  Cera Sanitaryware Ltd  Retrieved from http   www cera india com Content aspx conId CorporatePresentation, on March 20, 2014  4 Cera India website  (2013)  Corporate presentation  Analyst meet  Retrieved from http   www ceraindia com Content aspx conId CorporatePresentation, on March 20, 2014  5 Kumar, A  (2013, March 14)  Urinary tract infection an evaluation  Indian Health Journal  Retrieved from http   indianhealthjournal wordpress com 2012 03 14 urinary tract infection an evaluation  on August 1, 2013  6 Cera India website  Retrieved from http   www cera india com Content aspx conId 6, on August 11, 2013  7 United States Patent  (2011)  Dipano, Patent Number US8079094 B2, Date of patent  Dec 20  Retrieved from http   www google com patents US8079094, on July 25, 2013  8 Kumar A  (2013, March 14)  Op  cit  9 Ibid  10 Shmerling, R  H  (2011)  The hazards of bathroom seats Beth Israel Deaconess Medical Center on January 13  Retrieved from http   www intelihealth com IH ihtIH c 9273 35323 330519 html  d dmtHMSContent on August 10, 2013  1 This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  A00184 March 31, 2014 Revised 18 June 2019 Cerenity Sanitiser  Marketing Research for New Product Launch (B) It was September 2013, and Manan Shah, Manager (Sales) at Cera Sanitaryware Limited, pored over the findings of a recently concluded market research study at the company headquarters in Ahmedabad, India  His company had decided to enter the Indian fast moving consumer goods (FMCG) industry with its first product, Cerenity, a toilet seat sanitiser  The product was conceptualised and developed keeping in mind the needs of women who frequently used public washrooms  The idea behind the product was to make it hygienic and safe to use public or shared toilets  This was consistent with the market positioning of Cera as an   overall bathroom solutions provider    Cerenity was a one of its kind product in the market, and Shah was well aware of the need for a carefully formulated product launch strategy  He knew that it would be important to develop a thorough understanding of consumer attitude towards the new product  Thus, he approached a group of second year MBA students of Indian Institute of Management, Ahmedabad (IIMA) to carry out a market research study for the company  The research team conducted comprehensive marketing research on Cerenity in two stages  In the first stage, the team did an exploratory study using a mix of qualitative research tools such as focus groups with users and non users, in depth interviews and participant observation  Shah had already analysed the findings of the exploratory study  In the second stage, the research team conducted a conclusive study in which they adopted a quantitative research approach and analysed the collected data using quantitative research methods such as factor analysis, multiple regression, cluster analysis and conjoint analysis  Now, as Shah studied the results of the quantitative survey, he wondered how best to use the findings to formulate a strategy to successfully introduce the product in the market  The short term goal of the strategy was to maximise trials leading to the product's acceptance among target customers, while its long term aim was to establish Cerenity as a quality brand in the market and build customer loyalty for it  The Study The objective of the marketing research study was to develop a thorough understanding of customers' needs and assess their attitude towards Cerenity  It aimed at testing consumers' acceptance of the product  The findings of the study were expected to help the company introduce Cerenity in the market and design an effective communication plan for its launch  Also, it would Prepared by Professor Anand Kumar Jaiswal and PGP students (2012 14), Sachin K  Singh and A  Manu of Indian Institute of Management, Ahmedabad  This case is based on a marketing research project done by Sachin K  Singh, A  Manu, Abheet Dwivedi, Shaili Yadav, Renu Verma, Vikalp Jhamblulkar, and Arvind Maddireddy as a part of the Marketing Research and Information Systems course  Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for class discussion  They are not designed to present illustrations of either correct or incorrect handling of administrative problems  2014 by the Indian Institute of Management, Ahmedabad This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  2 of 21 A000184 help in deciding the target segment for the product and developing an appropriate positioning strategy  Findings from the Exploratory Research In the first stage, the team did a review of the literature, analysing information gathered from various published sources  Next, it conducted qualitative research to obtain consumer insights on their evaluation of the new product  The team employed different qualitative research techniques such as focus groups, in depth interviews and participant observation  The qualitative research generated the following insights  Meaning of toilet hygiene  For most women, toilet hygiene meant clean toilets that were comfortable to use  Perception of shared common toilets  Most women felt that using shared common toilets without any protective measures involved a high level of risk and could lead to a variety of infections  They preferred to use Indian style (squat) toilets to Western commodes in public restrooms  Willingness to try the product  Women participating in the study showed a high degree of willingness to try a new product that would make it comfortable for them to use shared toilets  Low awareness of the product concept  Participants, in general, were not aware if such a product existed in the market  Doubts regarding product effectiveness  Some participants were sceptical about the efficacy of such a product  Need for product at workplace  Workplace toilets were generally perceived to be clean  However, consumers still felt that the product would give them an added sense of protection and comfort when using workplace toilets  Locations for product use  Participants felt that the product would be needed in public restrooms in such places as hospitals, malls, trains, railway stations, restaurants and airports  It was very unlikely to be used in private spaces such as homes, as the toilets in these areas were perceived as being adequately clean  Spray as preferred product form  Of the different product forms such as spray, gel and liquid, spray was the preferred choice of respondents as it did not require them to touch the toilet seat with their hands  Experience with product trial among pilot users  Participants had some difficulty in understanding the right way to use the product  Many pointed out that after spraying the sanitiser, the seat did not dry quickly, thus increasing the waiting time to use the toilet  This was unnecessarily tedious  In addition to killing bacteria, respondents felt that the product should also keep toilets clean and dry  Packaging and portability  Participants felt that the product should be offered in small spray sizes so that it could be carried easily when travelling  They felt that carrying the product in the present form would be inconvenient  Some users suggested that the product should be kept in the toilets rather than carried around  They thought that the product should have the look and feel of a sanitiser and come in transparent bottles  With the help of the exploratory research, the team identified the following variables as being important for customers and potentially affecting their purchase decisions  This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  3 of 21 1  2  3  4  5  6  7  A000184 Germ killing effectiveness Ease of use Ease of carrying Fragrance  strength and type of fragrance Time of action  Instant dryness after application Product form  spray, gel and liquid  Price (three levels at INR 100, INR 150 or INR 200)  Conclusive Research The exploratory research was followed by a quantitative study, which was the conclusive phase of the research  As a part of this phase, the team conducted a pilot test of the product concept among female students at IIMA who were already part of the target segment  The research team distributed a total of 40 product samples within the IIMA campus  They prepared different questionnaires for pilot users and non users to capture similarities and differences in their evaluation of the product  The team also conducted surveys to collect primary data, which was then analysed to address the project research questions  Non user group survey  The team administered the non user survey to various customers from the target group  Respondents were randomly selected from the target group for the survey  The team used the survey analysis tool Qualtrics to collect data online (the survey questionnaire for the non user group is given in Exhibit 1a)  The data was used to understand the purchase decision making process, to identify the target segment and to determine the optimal combination of features in the product  Pilot test survey  Out of the 40 samples that were distributed for this study (based on convenience), the team received 35 responses to the questionnaires administered to the pilot test user group (the survey questionnaire is provided in Exhibit 1b)  The data collected was used to analyse product performance related features and post  purchase decision making  Data Analysis Identifying Purchase Drivers  Regression Analysis The team performed a regression analysis to understand the factors driving customers' willingness to purchase the product  The following variables were identified  Likelihood of purchase Frequency of public toilet usage Health problems experienced in general public toilets Health problems experienced in toilets at workplaces  study areas Health problems experienced in toilets at malls  multiplexes Health problems experienced in toilets at airports This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  4 of 21 A000184 They conducted multiple regression analysis by considering the likelihood of purchase as a dependent variable while perceived health problems related to infections contracted from unhygienic toilet seats in public restrooms at workplaces, study areas, malls, multiplexes and airports were regarded as independent variables  After cleaning up the data and removing the outliers for the analysis, the data was regressed to get the results shown in Exhibit 2  The regression results showed that perceived health problems related to infections from airport toilets were insignificant in deciding the likelihood of purchase, whereas perceived health problems from unhygienic toilet seats at workplaces, study areas, malls and multiplexes drove the likelihood of purchase  Perceived health problems due to unhygienic toilet seats in general public toilets also positively influenced the likelihood of purchase  Identifying Dimensions Underlying Evaluation of Product  Factor Analysis Through the qualitative study, the research team identified variables on which the new product was evaluated by the respondents  In order to identify dimensions out of these variables, factor analysis was conducted on the collected data  Cerenity was a new product and hence it was critical for the team to carefully identify the underlying dimensions in customers' purchase behaviour, which would help the company develop an effective communication programme  The exploratory research identified eight different attributes that could possibly affect the purchase behaviour of the customer for this new product segment  likelihood, comfort, ease, confidence, carry, fragrance, price, germ killing and dryness  The team conducted a factor analysis of these attributes to extract dimensions that could later be evaluated separately  The primary indicator used to measure the adoption rates of the product by consumers was likelihood of purchase  It was also considered a dependent variable  The correlation among the variables is provided in Exhibit 3a  The correlation matrix showed that confidence was related to comfort, ease and price  The first stage was to analyse whether it was appropriate to use factor analysis on the data  A key concern was whether there were enough correlations among the attributes to support the use of factor analysis  The Kaiser Meyer Olkin measure of sampling adequacy value was 0 730, which was above the threshold of 0 5  Therefore, it was clear that factor analysis could be effectively performed on the data  Dependent Variable Independent Variables Variable Likelihood Description Likeliness of purchasing the product Comfort Comfort using the product Ease of use Ease of using the product Confidence Confidence in the product Carry Ease of carrying the product Fragrance Fragrance of the product Price Price of the product Germ killing Germ killing capability of the product Dryness Seat drying capability of the product This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  5 of 21 A000184 To decide the total number of factors  dimensions to be extracted, the team used an eigenvalue of greater than 1  Results indicated that two dimensions could be extracted out of the eight attributes  Hence, the group selected a two factor model to identify the dimensions that could be used to represent the attributes  The results showed that the two factors together accounted for a total variance of 54 17   The unrotated factor loadings of these attributes on the two factors are given Exhibit 3b  The rotated factor loadings after Varimax rotation are indicated in Exhibits 3c and 3d  The next stage involved examining the associations of the attributes with either of the two dimensions  The team first decided to use a factor loading cut off value of  4  Only factor loadings above this were considered to be significant  others were ignored  The results showed that all the attributes had clear loading on both the dimensions, except ease of carrying, which had cross loading on both the dimensions  Through careful examination, the team felt that the ease of carrying variable would be more aptly associated with the set that contained ease of use, comfort and confidence and not price, fragrance and germ killing  After considering the constituent attributes, the two dimensions extracted were convenience and effectiveness  The attributes of comfort, ease of use, confidence, ease of carrying and dryness were clubbed together in the rotated factor D1, identified as convenience  Fragrance, price and germkilling were part of the rotated factor D2, labelled effectiveness  The next step was to compute the empirical values for these two dimensions  This was computed by using the factor score method  The two factors were then used in the regression model as independent variables  The results of the regression analysis are provided in Exhibit 4  The results indicated the following  Likelihood   0 15   0 15 Convenience   0 17 Effectiveness The results showed that the effectiveness dimension did not play a significant role in the purchase decision as the corresponding coefficient was not significant at 5   However, the convenience dimension had a statistically significant effect on the likelihood of purchase  The team concluded that the convenience dimension, comprising of comfort, ease of use, confidence and ease of carrying, played a major role in consumers' decision to purchase the product  The team identified the utilities attached to each attribute from a conjoint analysis done at a later stage in the study  Identifying Customer Segments  Cluster Analysis The next step was to understand the primary sub segments that could be targeted for this new product  This was done using cluster analysis  Data was collected from respondents on the six attributes they looked for in the product on a scale of 1 5 and their favourability toward the product  A cluster analysis was then performed to identify the possible clusters and see which cluster displayed the maximum favourability  This analysis could potentially help the company decide on its primary customer target group(s)  The primary cluster analysis identified seven possible clusters  However, four of these clusters were formed by individual outlier observations  These observations were removed from the This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  6 of 21 A000184 analysis and a second cluster analysis was performed  This analysis identified three optimal clusters (Exhibit 5a) that could be examined to decide on the customer target segment  Each of these clusters were further analysed based on their choices in the survey  Based on their mean ratings on the importance of attributes and favourability, the team made several important observations  As illustrated in Exhibits 5b and 5c, the team classified two clusters as economy and premium sub segments based on their mean rating scores of the pricing variable  The third one fell between the two clusters on the mean rating of the pricing variable and was moderately price sensitive  It was classified as the middle sub segment  The economy sub segment exhibited greater favourability towards the product compared to the other two sub segments, which had similar ratings on the importance of attributes and favourability  Also, germ killing was equally important for all three clusters  The team drew the following conclusions  Cluster 1 was the economy sub segment that frequently visited malls and multiplexes and planned to use this product in these places  Their ratings on the importance of price, ease of use, and ease of carrying were the highest  Cluster 2 was the premium sub segment, which did not frequent malls but rather planned to use this product at home  Maids would be the primary users of this product  Ratings on the importance of price, ease of use and ease of carrying were the lowest in this segment for these reasons  Cluster 3 was the middle sub segment and it was moderately price sensitive  This segment visited malls regularly and was not very price sensitive  They gave higher importance to ease of use and ease of carrying the product  Germ killing efficiency was very important for all three clusters  Deciding Product Formulation and Pricing  Conjoint Analysis The team then conducted a conjoint analysis to help the company decide on product formulation and pricing  In the survey, respondents rated a set of concept cards, each representing a potential product with a specific attribute combination  The aim was to identify the relative importance of different attributes of the product and predict the likely market share of different product concepts  Six main attributes were varied across concept cards as shown in Exhibit 6a  A total of 18 concept cards were created and responses were analysed using conjoint analysis  Conjoint analysis yielded the relative importance of the attributes as shown in Exhibit 6b  This showed that among the selected attributes, the form of the product was the most important, followed by its germ killing capacity and time of action  The other three attributes were relatively insignificant  The utility (part worth) values are provided in Exhibit 6c  It was also observed that the optimal product would be one with the following features  Germ killing capability  99  Fragrance  lime fresh Time of action  less than one minute Form  spray Price  INR 151 200 Ease of carrying  50 ml size This document is authorized for use only by James Barry in 2020  For the exclusive use of J  Barry, 2020  7 of 21 A000184 After a discussion with Cera executives, the team decided to estimate the likely market share of six different product variants  These six variants had the following profiles  Product A Germkilling 99  Jasmine Time of Action

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