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BUS 120 (Monday): Essentials of Marketing
Case Study 4
GROUP – 2
SOFT SOAP – A NEW IDEA – NEW MARKETS!
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ACKNOWLEDGEMENT
We are very grateful to Dr. Shyam Vyas for giving us such an interesting and excellent case
study on “SOFT SOAP – A NEW IDEA – NEW MARKETS!” which gave us a brilliant
learning experience. Your lecture taught us practical marketing approach that made the project
easier as we were able to analyze the company’s current situation and progress.
We would also like to thank all the external sources which help us gather the necessary
information required for the project. Then we would like to thank our friends who have helped
us with their valuable suggestions and guidance has been helpful in the various phases of the
completion of the case study.
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CERTIFICATE OF ORIGINALITY
▪ We have written our own words ONLY
▪ We have not copied
▪ We have not plagiarized
▪ We have cited all sources from where the text was quoted or adapted
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SUMMARY
Soap’s annual consumption is increasing exponentially both in volume and in unit terms in
America and India. For almost a century, Americans and Indians have typically purchased their
soap in a bar or cake shape. But in the 1980s-a small firm in Minnetonka changed its form to
liquid, with a product called Soft-soap-which was immediately hit and nearly 50 competitors
followed. While they had a strong 9-8% market share, others came along with many
promotional tactics by flyers, demos, product marketing schemes and funding for print & TV
advertising. Many even began offering discounts, larger exchange quotas, and price reductions
to increase their individual market share. Consumers saw liquid soap as being used primarily
for washing their hands – and not simply because they used the standard soap bar, which
resulted in a limited market opportunity for the small firm. Consumers were also disappointed
with the price at which they were available, for which the company altered their view by saying
that it was more affordable on a ‘per-use basis.’ Large-scale rivals such as P&G and Armour-
Dial began selling their own varieties of liquid soap to overpower smaller competitors,
including Minnetonka, with their marketing skills, greater resources, and wider distribution
channels and brand power. To solve them, SVMARC was commissioned by their CEO John
Takos to perform extensive customer and industry analysis. Based on their testing, the brand
also produced a new product called “Tub and Shower,” enhanced their controllability and
introduced new products with a modern understanding for girls, construction workers, fitness
and beauty-conscious women.
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QUESTION AND ANSWERS
Q1. 1. Do a situation analysis of the soap market in Indian context – and see if liquid soap
has made any headway in market place? What would your group suggest to the major
players and why – in Indian context?
ANSWER 1.
Soaps in India fall under the category of FMCG (Fast Moving Consumer Goods).
According to the India Bath and Shower Market by Size, Analysis, Forecast and
Opportunities 2017-2022 report, the market has advanced with an impressive CAGR of over 9
percent during the 2012-2016 review period and is projected to grow by more than 6 percent
through 2022. The young population of the country is looking for bath & shower products with
added benefits, which will help the market to grow further.
