KoruKlean is a mid-sized manufacturer of home cleaning products. It sells mainly through supermarkets and hardware stores.
KoruKlean is considering launching a new product line: KoruKlean Refill Tabs, small dissolvable tablets that customers drop into a reusable spray bottle and add water. The proposed product aims to reduce plastic packaging and shipping weight.
The marketing manager has gathered the following market research.
Secondary research (industry report and internal data)
- In the last 12 months, the “eco-cleaning” category grew by 18% in value, but most growth came from premium-priced brands.
- Supermarkets report that shelf space is constrained; new products are more likely to be listed if they can show higher sales per centimetre of shelf than existing products.
- KoruKlean’s current all-purpose spray sells for an average retail price of \$4.50 and has a repeat purchase rate of 27% within 8 weeks.
Primary research method 1: Intercept survey (in-store, \(n = 240\))
Respondents were approached at the exit of three supermarkets in different suburbs.
| Survey item | Result |
|---|---|
| Had heard of “refill tabs” before today | 22% |
| Said they are “very likely” to try refill tabs | 46% |
| Main stated concern (open response, coded) | “Will it clean as well as my current spray” (39%) |
| Preferred purchase location | Supermarket (61%), Online (21%), Hardware store (18%) |
Primary research method 2: A/B concept test (online, \(n = 600\))
Participants were randomly shown one of two concept cards.
After viewing the concept card, participants answered the same questions.
| Measure | Concept A | Concept B |
|---|---|---|
| “Would consider buying in the next month” | 34% | 41% |
| “Seems trustworthy” (1–7 scale, mean) | 4.8 | 5.6 |
| Expected fair price per 3-tab pack | \$3.80 | \$4.40 |
Primary research method 3: Two-week pilot (one supermarket chain, 12 stores)
- KoruKlean negotiated an end-cap display in 6 stores (Group 1) and standard shelf placement in 6 stores (Group 2).
- Retail price during the pilot: \$4.20 per 3-tab pack.
- Units sold per store per week (average): Group 1 (end-cap) = 38; Group 2 (shelf) = 14.
- Store managers reported that customers frequently asked staff “what are tabs?” and some customers assumed the product was for dishwashers.
KoruKlean has a launch budget of \$120,000 for the next 10 weeks. Senior management wants a recommendation that links market research evidence to the marketing process and an integrated marketing mix.
Analyse two limitations of KoruKlean’s market research evidence for deciding whether Refill Tabs should be launched nationally. Use specific data from at least two different research methods.
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