Market Study of Shampoos in India

Since there are various competitors and substitutes in the apparel industry, buyers have variety products that they can choose. Consumer’s switching costs therefore are low as there are large among of different brand name in the market, such as Target, Wal-Mart, Abercrombie & Fitch and J.Crew etc. Hence, companies have to work hard to retain the consumers through differentiation of their products or cost leadership. For instance, majority of buyers were willing to pay for Gap’s moderately priced clothing. On the average, the price of the products which produced by Gap Inc.’s was lower than Abercrombie & Fitch, such as the price range of man’s tee was US$30-$40 while Gap offered US $ 19.5-29.5 for the same type of products. Consumers therefore have some power but not high in apparel industry, due to the low switching costs.

Given the highly competitive nature of today’s markets we as a company must provide high quality products to survive. Quality itself has become a major competitive factor and in many ways is a contributing factor in success or failure. The intent of this memo is to identify, explain and evaluate the three types of cost associated with quality.

Today’s consumers are constantly trying to judge the quality of products. But what is quality? How and by whom is quality determined? Some would say the designer creates specifications, which in turn dictate the quality of a product. That quality is also based on the acceptable value of a part within a whole product.

competitor is able to provide, either a firm would have to be protected by a barrier that

The Moisturizing Black Soap Shampoo is currently placed in the Decline stage of the product life cycle. This stage is always characterized by a shrinking market, something that is observed with the shampoo ("Product Life Cycle Stages", 2017). The product has experienced a consistent decline in the number of sales going by the number of units sold in each quarter. This is something that has led to a decrease in the amount of revenue collected and a loss of market share from 3.8% in 2015 to 2.8% in 2016 (PRODUCT REPORT FOR ALIKAY NATURALS MOISTURIZING BLACK SOAP SHAMPOO, 2017). All these have occurred in a steady manner that gives indication of the general decline of the shampoo. From the survey conducted on the customers of the shampoo,

Price is an important factor in Burberry as price affects the value that costumers perceive they get from buying a product (Jobber & Ellis-Chadwick, 2012). Burberry uses competitive pricing similar to its competitors which produces a psychological effect on Burberry customers (Jacobson, n.d). If Burberry for example lowered its price dramatically then customers may believe the quality has decreased and may presume it’s not worthy to be named a luxury brand. However by being expensive it suggest better quality and desire to sustain its customers as well as making there products seem exclusive.

It is very interesting that the company controls the market price. Men’s Wearhouse are classified as price takers to meet consumers’ need and wants. According to Shmanske (2006), “Most textbook treatments suggest that the market structures worthy of consideration include price-taking competition and uniform-price monopoly; monopolistic competition and classic oligopoly receive less attention” (p. 338). In addition, they produce homogenous products that closely resemble competitors’ products with very few differences. The market that the Men’s Wearhouse competes in allow free enter and exit. This allows smaller companies to enter the market to enter the market without restrictions. In conclusion, the Men’s Wearhouse meets the characteristics

We look around ourselves everyday and see many brands and logos. Some of these brands and logos that we see are fancy and pleasing to the eye, but all come with a price. There are many varieties and many categories that these brands produce products in. Social media, the masses, and resource quantity are all factors of why these sought after products are very pricely. Man or women are willing to pay extra money for a brand name. Whether it may be the elderly, young, man, or woman, if it has a well known name on it, people are willing to pay more money for it than a similar version.

Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.

17.   Reducing the variations in our product or services is an important key to perceived quality TRUE

The industry in which the company operates can be characterized as monopolistic competition. This is because, since there are no barriers to entry in this industry, threats of entry by potential entrants has made the industry some-what competitive. But the brand loyalty gained by the firms through massive advertising has rendered the firms within

Goal should be like that reflect our desire to achieve the dream. In this company as we distinguish our product and focus on the achievement of high quality of product that satisfies the needs of the customers, the company market itself as a high quality product manufacture. The position of the company in the market is the premium segment and targeting the customers who value quality and appreciates creativity. The key objectives are:

Research indicates in Europe there are large price differences among hair care products. P&G has decided that it should place the new shampoo in the premium-priced segment; this is done in order to keep up the image of the shampoo as a high quality and innovative product. P&G should charge premium price in each country to be sold for 4.99 DM for the 200 ml bottle and for 5.99 DM for the 250 ml bottle in all the countries which had had been accepted during the consumer tests. The company cannot charge a price very few people can afford, this will also not be profitable for the company.

Juran’s definition of quality focuses 100% of the customer’s satisfaction of the product. He stresses a balance between product features and products free from deficiencies and believes a quality product is free from deficiencies (Suarez, 1992, p.4). In order to achieve this

a) A search quality is a characteristic that can be easily accessed before purchase.[1] In the case of the car, the customer will be able to research qualities like colour, performance. He can get a feel for the car by looking around the interior, the boot, see what the engine looks like and sounds like. These are qualities he can use his five senses to evaluate. They are tangible. Ford’s reputation should eliminate risk when purchasing. However, this is not the case for the service. He cannot have a pre-purchase experience. There is no tangibility. For this, his behaviour will change. He may seek testimonials from others and depend more on word of mouth. He will seek advice on the reputation of Sullivan’s service. From the case, we see that there are problems with the service. Delays at processing, inconvenient scheduling, availability of parts etc. There is a risk here as the service may not be satisfactory so Sullivan must reassure the customer. Sullivan must