Consumer Research Report On

Study of buying behaviour of consumers regarding soaps

SUBMITTED BY: SINTU PATRA(222) VIVEK KUMAR GUPTA DIVYA KHATRI(190) PRIYAM DUBEY(207) SECTION- M3 BATCH: 2010-2012

CONTENTS TOPIC PAGE NO.

1.INTRODUCTION 1.1 Brief introduction .3 1.2 Size of the company..3 1.3 Total contribution to the economy/sales...4 1.4 Top leading companies.4 1.5 Latest developments.4 2. PROJECT PROFILE 2.1 Objectives..5 2.2 Problem formulation..5 2.3 Scope of the study..5 2.4 Limitations.5 3. RESEARCH METHODOLOGY 3.1 Research design6 3.2 Data sources..6 3.3 Research approach6 3.4 Research instrument..6 3.5 Variables used...6 3.6 Sample size7 3.7 Sampling technique...7 3.8 Sampling area7 3.9 Method of data collection..7 3.10 Tools and techniques....7

4. ANALYSIS AND INTERPRETATION8-19 5. FINDINGS..20-21 6. RECOMMENDATIONS22 7. STRATEGIES FOR WEAK BRAND..23-24 8. CONCLUSION..25

INTRODUCTION Brief Introduction Soaps are categorized into men's soaps, ladies' soaps and common soaps. There are few specialty soaps like the Glycerine soaps, sandal soaps, specially flavored soaps, medicated soaps and baby soaps. Specialty soaps are high valued which enjoy only a small share of the market in value terms. The market is growing at 7% a year. Soap is a product for many people and the lathering up can be a treasured part of a morning or nightly routine. Whether it might be scented or unscented, in bars, gels, and liquids, soap is a part of our daily lives. In the United States, soap is a $1.390 million (US$) industry with over 50 mass market brands. But in Indian markets the sales potential for soap is only beginning to be realized. At the end of the year 2000, soap was a $1.032 million (US$) business in India. India is a country with a population of 1,030 million people. With the household penetration of soaps is 98%. People belonging to different income levels use different brands, which fall under different segments, but all income levels use soaps, making it the second largest category in India. Rural consumers in India constitute 70% of the population. Rural demand is growing, with more and more soap brands being launched in the discount segment targeting the lower socio-economic strata of consumers total annual soap sales by companies marketing their brands at national or state levels is estimated at 14,000 tonnes of a total soap market considered to be about 126,000 tonnes. Size of the Industry The Indian Soap Industry includes about 700 companies with combined annual revenue of about $17 billion. Major companies in this industry include divisions of P&G, Unilever, and Dial. The Indian Soap Industry is highly concentrated with the top 50 companies holding almost 90% of the market. The market size of global soap and detergent market size was estimated to be around 31M tonne in 2004, which is estimated to grow to 33M tonne in the coming years. Toilet soaps account for more than 10% of the total market of soap and detergents. In Asia, the countries like China and India are showing rapid growth in the toilet soap section. Market share of body wash was estimated to be around 2% in 2004 and is showing signs of healthy growth in these markets. Indias soap market is Rs 41.75 billion. Indian Soap Industry volume is Rs 4,800-crore. For the purpose of gaining a competitive edge, Indian companies are now relaunching their brands with value-additions to woo consumers across India. For instance, Hindustan Lever Ltd (HLL) has recently launched a host of toilet soap brands which include Lifebuoy, Lux, Breeze and Lirilwith value additions. Also is in the process of rolling out Ayush ayurvedic soap. The aim is to meet the evolving needs of customers.
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Total Contribution to the economy / sales In terms of market share for Indian Soap Industry the data indicates that HLL had a market share of 64 % in the soap market, followed by Nirma at 16.8 % and Godrej at 4.4%. Nirmas market share was in the northern region was 21 %. The largest contributor to the toilet soaps market in Indian market is Hindustan Lever with the total contribution to the economy & enjoys almost a two-thirds share, with the second ranked Nirma Soaps placed at a distantly low share of 16.8%. Lux and Lifebuoy have held the sway of the market for almost fifty years. Top Leading Companies In the Rs 4,800-crore Indian toilet soaps market, the lead players include: HUL Godrej Consumer Products Ltd Colgate Palmolive Ltd and Wipro Consumer Care Latest developments In Indian Soap Industry the entry of new players in the 6,500-crore toilet soaps industry is expected to bring about a new twist in the "Indian soap opera". ITC Ltd has started investing in aggressive brand-building and product development projects to promote its brands, Fiama De Wills, Vivel and Superia. Godrej Consumer Products Ltd and Wipro Consumer Care Lighting are established players in the Industry which are beefing up their research projects and advertising plans to take on new rivals. With increasing competition, the Indian Soap Industry is expected to register a healthy growth this fisca. The sector registered a 15% value growth. GCPL is hiking its advertising budget by 20% to gain high visibility for its brands.

PROJECT PROFILE Objective Study the customer buying behavior on various soap brands and finding out which is the strongest and weakest brand and suggesting the best possible strategy for weakest brand among the brands taken under consideration and relating the different aspects of customer buying pattern, habit and preference. Problem Formulation In this competitive era the Indian market is flooded with different brands of soap with a vast variety of qualities differentiating them in different categories. The purpose of the survey is to find out the behavior of customer towards these brands and finding out which brand is weakest. Scope of the study This survey helps in finding the most likely brand. Finding the weakest brand and helping to make the best possible strategy for increasing the sales of that brand. Buying behavior of customer on various aspects such as Which brands customers prefer most, from where the customers prefer to purchase, why they purchase the particular product. Understanding the current market trend Survey also helps in identifying segments of customers on the basis of income, age group, sex and education

Limitations The sample size is small i.e. 163 which certainly not reflect the whole society. Data can vary for different places. Responses can be baised because of human behaviour. Survey was conducted in Sangam Vihar and Devli Extension area which is also a limitation. Placibo effect. For many of the data analysis cases, simple descriptive tests are used. Sophisticated statistical tests might reveal the results with most Statistical significance.
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RESEARCH METHODOLGY Research refers to search for knowledge. It is the pursuit of truth with the help of study, observation, composition and experiment. Research methodology is a systematic way to solve the research problems. It helps in studying the various steps that are adopted by researcher to study the research problems along with the logic behind it. It describes what must be done, how will be done, what data will be needed and how the data will be analyzed.

Research Plan Research design:- Descriptive Research- the descriptive research design is one that describes the things such as the market potential for a product. It describes systematically a situation, problem, phenomenon, service or program and describes attitude towards an issue. The main purpose of such studies is to describe what is prevalent with respect to the issue/problem under study. It includes questionnaire survey and fact finding inquiry. Data sources:- Primary data. Research approach:- Face to face interview. Research instrument:- Questionnaire.

Variables Used Price Brand Income Types of soap Fragrance Packaging Age group Gender Quality Offers Availability

Sample design Sample Size:- We have restricted the sample size to 163 respondents. This was done keeping in mind the time constraints and the fact that we felt this number would be enough to serve the information needs required to show the trends. Sampling technique:- Simple Random sampling. Sampling Area:- Sangam Vihar and Devil Extension.

Method of data collection To know the response, we used questionnaire method. It has been designed as a primary research instrument. Questionnaires were given to the respondents and they were asked to answer the questions given in the questionnaire.

Tools and Techniques As no study could be successfully completed without proper tools and techniques, same is with this project. For the better presentation and right explanation we used tools of statistics and computer very frequently which helped us to analyze the data properly. Basic tools which we used for this project are: BAR GRAPH PIE CHARTS TABLES Bar charts and pie charts are very useful tools for every research to show the result in a clear & simple way. We have used bar graph and pie-charts in this project for showing data in a systematic way, so its not necessary for any observer to read all the theoretical detail. It is simple and on seeing the charts anybody can understand what is being said.

Technological tools: MS-WORD MS-EXCEL

Analysis and Interpretations

Q1. What is your gender?

59 MALE FEMALE 104

Analysis and interpretations:1) There were 163 respondents. 2) 59 of them were females and 104 were male.

Q2. In which of the following age group do you belong?

80 70 60 50 40 30 20 10 0 under 18 18-24 25-35 36-50 above 50 6 24 12 Series1 68 53

Analysis and interpretations:1) There were 163 respondents. 2) 6 of them were under 18years of age. 3) 68 belonged under the age group of 18-24years. 4.53 belonged under the age group of 25-35years. 5.24 belonged under the age group of 36-50 years. 6.12 were above 50 years of age.

Q3.How much formal education have you completed?

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>colage graduate colage graduate

139

Analysis and interpretation:1) There were 163 respondents. 2) 139 were college graduate. 3) 25 were less than a college graduate.

Q4.Which of the following categories your total family or personal income fall?
70 61 60 50 41 40 30 20 10 0 under 10000 11000-25000 25000-49999 above or 50000 15 Series1 46

Analysis and interpretation:1) There were 163 respondents. 2) 15 of them fell under Rs10,000 category. 3) 41 of them fell under Rs11,000-25,000 category. 4) 61 of them fell under Rs.25000-49999 category. 5) 46 of them had salary above Rs 50,000.

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Q.5 What is your profession?

70 60 50 40 30 20 11 10 0 Student Service Unemployed Self employed Housewife 4 29 Series1 65 54

Analysis and interpretation:1) There were 163 respondents. 2) 65 of them were students. 3) 54 of them were servicemen. 4) 4 of them were unemployed. 5) 29 of them were self-employed. 6) 11 of them were housewives.

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Q.6 Which type of soap do you use for bathing purpose?

6 34 48 Beauty Germ Herbal 11 Liquid Mild 28 Other 42

Analysis and interpretation:1) There were 163 respondents. 2) 48 people use beauty soap. 3) 42 people use germ soap. 4) 34 people use mild soap. 5) 28 people use herbal soap. 6) 11 people use liquid soap. 7) Rest of the 6 people use other type of soap which includes natural soap, glycerin soap, home-made soap etc. 8) We conclude that most of the people prefer using a beauty soap to improve their skin quality, and the least used type of soap is liquid soap.

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Q7. Which brand of soap do you often buy?

35 30 25 20 15 10 5 0 8 4 5 4 14 11 14 16 12 7 4 8 Series1 25 31

Analysis and interpretation:1) 31 people use Dove 2) 25 people use Dettol. 3) 16 people use Margo. 4) 14 people use Lux and the same number of people use Fiama Di Wills. 5) 12 people use Pears. 6) 8 people use Savlon. 7) 7 people use Rexona. 8) 5 people use Cinthol. 9) 4 people use Santoor 10) 4 people use Breeze. 11) We conclude that majority of the respondents use Dove which shows it is the strongest brand, and soaps like cinthol, santoor, and breeze represents weak brand.

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Q8. Which factor influences you the most in buying soap? Rate them from 1-7. (1-highest 7-lowest)

Chart Title
180 160 140 120 100 80 60 40 20 0 12 14 11 9 20 26 71 22 35 28 25 27 11 15 34 41 14 8 6 19 41 6 13 23 36 35 32 18 16 24 24 23 27 23 26 37 26 35 20 14 16 15 45 23 9 6 14 4 Rate 7 Rate6 Rate5 Rate 4 Rate3 Rate2 Rate1

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Analysis and interpretation:1) There were 163 respondents. 2) According to the survey conducted, it is found that it is the quality of the product that influences the customer most while making a purchase. 71 people have given rate-1 to the quality 3) Price is another major influencer which stands 2nd. 4) Fragrance stands 3rd in terms of rating. 5) Availability and offer influences least while making a purchase.

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Q9.From where do you buy your soap?

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High Street 46 Supermarket Retail Shop 98 Internet

Analysis and interpretation:1) There were 163 respondents. 2) Majority of the respondents i.e. 98 people buy their soap from retail shop. 3) 46 people buy it from supermarket. 4) 16 people buy it from high street. 5) Only 3 respondents buy soaps from internet. 6) We conclude that people find it easy and convenient to buy soaps from retail shop or supermarket rather than purchasing it online.

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Q10. Rate your product on the basis of given criteria. (5-highly satisfied least satisfied)

1-

180 160 140 120 100 80 60 40 20 0 47 30 7 5 Quality 17 Offer 13 4 Price 48 58 36 24 7 Availability 54 49 46 75 20 30 34 50

Rate5 Rate4 Rate3 Rate2 Rate1

Analysis and interpretation:1)The survey shows that people were highly satisfied with the quality of soap that they are using. 2)People were satisfied with the price that they are paying for the soap. Hence it is rated-4. 3) Availability is also not a major issue. Rated-3. 3) Respondents were not much satisfied with the offers and discounts available with the soap.

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Q11.How much soap do you buy?

100 90 80 70 60 50 40 30 20 10 0

91

38

34

Series1

1 PIECE

2 PIECE

MORE THAN 2 PIECE

Analysis and interpretation:1)There were 163 respondents. 2) Majority of the respondents (i.e. 91 people) purchased 2 pieces of soap at a time. 3) 38 people purchase 1 soap at a time 4) 34 people purchase more than 2 soaps at a time.

Q12. How much are you ready to spend on soap?

100 90 80 70 60 50 40 30 20 10 0 13-25 25-49 50-100 ABOVE 100 <13 8 1 34 32 Series1 88

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Analysis and interpretation:1) There were 163 respondents. 2) Majority of the respondents(i.e.88) were ready to spend between Rs25-49 on buying soap. 3) 34 people were ready to spend between Rs.13-25 on buying soap. 4) 32 people were ready to spend between Rs.50-100 on buying soap. 5) and there was just 1 respondent who spent less than Rs13 to buy soap.

Q13.Which of the following promotions regarding the soap interests you?

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BIGI 86 46 B3G2 LCS MONP

Analysis and interpretation:1) There were 163 respondents. 2) 86 people opted for buy 1 get 1 free offer. 3) 46 people opted for buy 3 get 2 free offer. 4) 18 people opted for loyalty card scheme. 5) 13 people opted for money off next purchase scheme.

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Q14. How often do you buy soap?

120 100 80 60 40 20 3 0 MONTHLY WEEKLY DAILY YEARLY 5 Series1

108

47

Analysis and interpretation:1) There were 163 respondents. 2) 108 respondents buy soap on a monthly basis. 3) 47 respondents buy soap on weekly basis. 4) 5 respondents buy soap on yearly basis. 5) 3 respondents buy soap on daily basis. 6) We conclude that majority of the people prefer buying soap on monthly basis, and buying soap on yearly basis is least preferred.

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Findings People now a days prefer beauty soap, mild soap and germ soap over refreshing soaps like Cinthol, Liril etc. The buying pattern and behaviour has changed. While purchasing a soap peoples 1st preference is the quality of the product, then comes price accompanied by packing , fragrance and brand. Soaps are easily available in every retail stores, outlets, and showrooms. So people normally purchase soaps from retail stores rather than making the purchase complex by buying it from the internet. People are highly satisfied with the quality of soap they use. They dont mind paying more if the product gives them the desired benefits and value. Majority of the customers go for Buy 1, get 1 free offer. Dove is the strongest brand available in the market according to the survey conducted because it offers a rich quality as desired by the customers.

25 20 20 14 12 10 6 5 2 0 rate1 Rate2 Rate3 Rate4 Rate5 1 3 2 7 5 8 4 11 Quality offer Price Availability

15

(rate-5 highest

rate-1 lowest)

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 The weakest brand according to the survey, is Santoor. Liril, Breeze, Cinthol because of its low quality, less visibility and promotion.
10 9 8 7 6 5 4 3 2 1 0 Rate1 Rate2 Rate3 Rate4 Rate5 1 2 1 1 3 2 5 4 3 3 3 2 2 2 4 4 3 6 Quality Price Offer Availability 9 8

(rate-5 highest

rate-1 lowest)

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Recommendations Indian customers are price sensitive so in order to increase sale, some lucrative offers like discount should be given to customers. Since majority of customers have favored this promotional tool. There should be no compromise with quality in order to reduce price since majority care about quality more than price. Customers want to associate her with the brand and they dont feel more impact of celebrities on her buying decision. There is fewer need of going for ad involving high profile celebrity. Instead some favorable should be done directly to the customer. Purchasing power of Indian customers is going up so it needs to expand geographically.

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Strategy for weak brand

Target Segment: Need to identify the new target segment since Cinthol and Liril is refreshing soap so we can target the athletes or the people who do more of a physical work. Breez and Santor can be targeted to the teenagers. Positioning: The positioning is not strong as compared to its competitors. It is not able to differentiate itself from the other brands available in the market. Cinthol and Liril can be reposition as deodorant soap or soap for men. Breez can be repositioned as beauty soap. Santoor can be reposition as Natural soap. Packaging and Designing: In this competitive world you need to be more attractive so there is need to change the packaging and designing. Give a new look to the product. Product: Provide quality because it caters todays demand .The customer is more concerned about their skin rather than price. Promotion: Increase the advertisements. Brand promotion through various shows. Provide offers and discounts. Provide schemes like- if you can collect 100 point then you can get a chance to meet this star. Effective advertising which should touch the minds and emotions of the people. Impressive taglines which should be easy to remember. It should be short and meaningful. Renew its website. Motivational quotes.

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Increase the visibility: Need to increase the visibility either by promotion or either organizing some games in malls or other public places or putting up banners . By hiring shelf space in supermarkets and retail stores By giving margin to retailers.

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Conclusion: This project titled Study of the buying behaviour of consumers regarding soaps has helped in studying the buying behaviour of the consumers. It has helped to understand the consumer perception and also the behavior of consumer towards a particular product. This project has helped to understand the needs and requirements of the consumer. The survey conducted has helped us to identify the strong and weak brands of soaps available in the market. We have also suggested marketing strategies for weak brand so that they are able to compete in a better manner.

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