Abstract

An entrepreneur, who did not have much experience in the soft drink industry in India, planned to enter the market with a lemon-flavored soft drink. He asked a reputed marketing research firm to help him to effectively position the new soft drink product in the market. SMSS employed the Multidimensional Scaling (MDS) technique for the purpose. Looking at the results, the entrepreneur wondered to what extent the MDS ‘Perception map’ would be helpful to his company RMS in launching the new product in the existing lemon flavored soft drinks industry in India.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To discuss and understand Multidimensional Scaling (MDS) technique
• To understand the benefits of using Multidimensional Scaling
• To understand how Multidimensional Scaling is used for effective market positioning
• To know about the limitations of the study carried out by the Market Research firm.

Keywords

Multidimensional Scaling (MDS), Marketing Research, Consumer Preferences, Market Positioning, Goodness of Fit, Likert Scale, Dependent Variable, Independent Variables, New Product Launch