Reliance Retail sold a house brand called “Sudz”.
Sudz was envisioned as a cost-effective detergent, giving comparable wash as some of the costly, established brands in the market.
A general manager of Reliance Retail, Parul was going through the dilemma- promote or not to promote.
Will promotion really increase the sales of Sudz
2. Business Dilemma
• Reliance Retail sold a house brand called “Sudz”.
• Sudz was envisioned as a cost-effective
detergent, giving comparable wash as some of
the costly, established brands in the market.
• General manager of Reliance Retail, Parul was
going through the dilemma- promote or not to
promote.
• Will promotion really increase the sales of Sudz?
3. Types of promotion
• SKU(stock keeping unit)
• TPR(temporary price reduction)
• Parul planned to go for TPR model as value
proposition for sudz arose from the fact of
lower price.
4. Effects of price promotion
• Brand switching.
• Adverse impact on perceived quality.
• Purchase acceleration.
• New customers.
• High demand less supply.
5. Laundry Detergent Market India
• HUL accounted for 35% market share
nationally (with product brands Rin, wheel,
surf)
• Proctor& Gamble was with about 10% market
share.
• Reliance Retail sold aerial, tide(P&C);Rin,
wheel,surf(HUL);Henko from Henkal and its
home brand Sudz.
6. DATA ANALYSIS
• Data has been analyzed by using markov chain
model to understand the purchase behavior of
customer.
• To use loyalty card program and tag each
purchase to a unique customer which helps in
identify brand switching.