Question

An organization collected preference ratings on various brands they consider.

Market B
		Pre-use
Respondent	Dove	Pears	Lux Supreme	Pure Nature
1	0.5	1	1.5	3
2	1	3	4	2
Pre-Use Probability 1	0.08	0.17	0.25	0.5
Pre-Use Probability 2	0.1	0.3	0.4	0.2
Mind Share	9.17	23.33	32.5	35
		After-Use of soft shine
Respondent	Dove	Pears	Lux Supreme	Pure Nature	Soft Shine
1	1	2	2	3	2
2	3	4.5	3	3	1.5
After Use Probability 1	0.1	0.2	0.2	0.3	0.2
After Use Probability 2	0.2	0.3	0.2	0.2	0.1
Mind Share	15	25	20	25	15
Draw/ Cannibilization	-5.83	-1.67	12.5	10
Given the information above, if the demand and the per-unit profit margins is the same
for Pure Nature and Softshine Should the company launch softshine? Why or why not?

Answer 1

From the preferences data, it can be seen that The pre-use and the post use ratings of other competitor products such as Dove, Pears and specially Lux Supreme and Pure Nature deteriorate by a small amount and the Soft Shine product, which will be a new launch is gaining good preference among the consumers. Although the Second respondent is giving half the preference points to Soft Shine as compared to other products, however Soft Shine being a new entry in to the market, the initial down grading of the product as expected to some extent. Moreover, the Mind Share, which is a critical value to examine, is showing Soft Shine gaining 15 points, against almost equivalent points to other strong competitors in the market.

                      Therefore, the company should launch Soft shine.