Case study 30: Market Expansion Strategy of Kairali Naturals – A Case of Applying Business Research

🏢 About the Company:

Kairali Naturals is a Kerala-based FMCG company specializing in organic skincare and herbal wellness products. With growing competition and changing customer preferences, the management decided to expand its product line and reach new customer segments across South India.

🎯 Business Challenge:

The company wanted to explore whether launching a new line of Ayurvedic baby care products would be profitable and in demand. To make a well-informed decision, they used various types of business research.

🔍 Research Types Used:

1. Exploratory Research

Objective: Understand if there’s a need for Ayurvedic baby care products.
Method:

• Focus group discussions with young parents
• Expert interviews with pediatricians and Ayurveda doctors

Insights Gained:

• Parents were concerned about chemicals in baby products
• Ayurvedic ingredients like nalpamaram and turmeric had high trust

2. Descriptive Research

Objective: Quantify market demand and customer preferences.
Method:

• Online surveys across 4 South Indian states
• Demographic analysis

Findings:

• 62% of young parents preferred natural baby products
• Tamil Nadu and Kerala showed the highest demand

3. Causal Research

Objective: Find the effect of product packaging on consumer preference.
Method:

• A/B testing with two types of packaging designs in test markets
• Monitored sales, feedback, and repeat purchases

Result:

• Eco-friendly paper packaging increased preference by 34%

📈 Outcome of the Research

Using research insights, Kairali Naturals successfully launched its Ayurvedic baby care line in Kerala and Tamil Nadu. Within 6 months:

• Sales rose by 22% in new categories
• Brand trust among millennial parents improved
• Product return rate decreased by 14%

🏫 Educational Takeaway for MBA Students

This case helps MBA students understand:

• How multiple research types guide business decisions
• The difference between exploratory, descriptive, and causal research
• The role of data in reducing business risk

📢 Suggested Class Activity

Title: “Choose the Right Research Type”
Instructions: Ask students to pick a product idea and identify which types of research they would apply to test its feasibility, marketability, and effectiveness.

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