BRAND PREFERENCES AND SALES PROMOTION SCHEMES OF

KARNATAKA SOAPS AND DETERGENTS LIMITED

Introduction

Toilet soap industry in India valued at Rs.7, 500 Crores with production

exceeding 8 lakh tonnes. The toilet soaps have a growth rate of 6-8% in toilet soap

industry roughly has 150 brands. The demand in urban market is relatively stagnant but

the rural market experiences healthy growth.

The toilet soap market can segment into 4 types:-

Carbolic / Economy Segment (e.g. Lifebuoy, Nirma bath)

Popular Soaps (e.g., Lux, Nirma, Hamam)

Premium Soaps (e.g., Palmolive, Pears, Mysore Sandal Soap)

Super Premium Soap (e.g., Dove, Le-Sancy, Camay)

Soap buying is a low involvement purchase decision. The most important attributes

are price, perfume, packaging & advertising. The buyers in the soap industry make a tacit

elevation of these dimensions in their quest of “Value of Money”. As a result buyers find

to have a low brand loyalty. However, market being pull based advertising is used to

create considerable brand equity.

Significance of the study

The product Mysore Sandal Soap is a popular product of Karnataka Soaps and

Detergents Ltd. Formerly it was known as Government Soap Factory of Mysore. It is

wholly owned by Government of Karnataka a Public Limited Company. It is also known

as the “Fragrant Ambassador of India”. It has 3 main lines of production namely Fatty

Acid, Detergent and Soap plant. This is apart from sandal wood and distillation and

refining units at Mysore and Shimoga. The agarbathi units are also located at Mysore. It

has a licensed capacity of 60000 metric tones but current capacity is 28,000 tonnes. It can

process 10 different soap formulations. Mysore Sandal Soap is priced at Rs.20 for 125

gm. This makes its cheaper than competing brands. However, some consumers perceive it

to be extensive popular soap. Sandalwood price is revised twice in a year where as prices

of other product is done once in a year.

Objectives of the study

1. To study the buying behaviour and purchasing practices of Mysore Sandal soaps and

detergents.

2. To know the buying influence & different buying motives of customers.

3. To know the consumers psychology in brand awareness, preferences and brand

image.

4. To study the effectiveness of the sales promotion schemes and sales performance of

said product.

Research Design & Methodology

Hypothesis tested

1) “It is assumed that consumers in the age group of 18 to 35 years are aware about the

brand of KSDL/Mysore sandal soap.

2) Sandal soaps & detergents are mainly used in the state of Karnataka.

Sample Design

The Bangalore is a mega fast developing industrial and computerised city. The

total population of Bangalore city is approximately 22-25 lakhs. Due to time and cost

constraints it is not possible to deal with all the customers, by the help of convenience

method 50 customers from four major parts of the city have been selected for the study

purpose .i.e. Jayanagar, J.P. Nagar, Big Bazars and Food Worlds etc.

Scope & Limitations of the study

1. As organisation is working at 3 main lines of production namely fatty acid

detergent and soap plant then definitely is a wider scope to study each of them.

2. As organisation is exporting in 2 types i.e., Direct Exports and Indirect Exports, it

provides better scope to study it separately.

Limitations of the Study:-

1. This study is conducted in Bangalore City only hence it can not be generalised.

2. Consumers often change their preferences and responses in time and hence there

is possibility of certain unreliable data.

3. Certain peoples have preconceived and pre-conditional perceptions about product

hence the chance of them being bias.

Karnataka Soaps And Detergents Limited

1. The ravages of war didn’t spare even sandal wood and it lay stockpiled achiest dust

heaps in dock yards. This urged the Maharaja of Mysore to set up the Sandal Wood oil

factory on the outskirts of Koti Forests near Bangalore. Subsequently, another factory

was started on the west bank of the river Tunga & Shimoga.

The next project to go on stream was in 1918 when the government soap factory

was established. Thus established due to the pioneering efforts of the Maharaja of

Mysore, the project took shape under the engineering skills of Sri. M.

VISHVESWARAIAH, solely to manufacture sandal soaps. The credit for perfecting the

process of manufacturing sandalwood oil and the famous Mysore Sandal Oil soaps goes

to Mr. S.G. Sastry. The initial capacity was set up to manufacture 1000 tones of soaps.

It is a wholly Government owned company and is a leading manufacture of

quality soaps, detergents, agarbathis and industrial products. KSDL occupies a prime

states the world over in the manufacture of quality sandal wood. It is a hundred percent

Government owned company under limited liability and has an authorised capital of

Rs.20 Crores, and paid up capital of Rs.17.65 Crores. Its loans have been soured by

Financial Institutions like I.D.B.I, IFCI (Industrial Financial Corporation of India), ICICI

(Industrial Credit and Investment Corporation of India), Corporation Bank, Canara Bank

and the Government of India. It is presently located in the Rajajinagar Industrial area on

the Bangalore to Mumbai Highway. It has its branches in Chennai, Hyderabad, Calcutta,

Delhi, Mumbai and Kanpur.

The total land area in possession of KSDL is about 39 acres of which about 15

acres have been occupied by the existing soaps and detergents units. The factory in it’s

present scale began working in July 1957, to meet the increasing demand the Government

of Mysore expanded their industry in the year 1950 in two phases:-

Further improvisation took place in the year 1954 with a total cost of 21 lake and

was completed by 1974 producing 10,000 tones of detergents product per annum for

1975 onwards.

Production Highlights

KSDL has three main line production plant. The fatty acid and Hydrogen plant,

the detergent plant and the soap plant, at their Bangalore complex. This is apart from the

Sandal Oil Distribution and refining units at Mysore and Shimoga. The agarbathis (joss

stick and incenses) units are also located at Mysore.

With a 45 million investment in machinery, the fatty acid plant is the major raw

material source for KSDL’s soap units. The plant has process facilities for continuous fat

splitting, glycerine concentration, distillation and refining, fatty acid hydrogenation and

satiric acid.

The distribution channel if a five level channel and is as follows:-

The company also exports its products to countries like USA and Dubai directly and

indirectly, through merchandise agents. The earnings in foreign exchange for the year

1996-1997 was Rs.2, 16, 45,342.00

On 1st October 1980 the government soap factory i.e, public sector industry was

renamed as Karnataka Soaps and Detergents Limited. The trade mark of K.S. & D.L.

“THE SHARABHA”. The carving on the cover is the Sharabha the trade mark of K.S &

D.L.

Socio- Economic Profile Of Selected Respondents Indian markets Is captured by the different organizations. Every organization is

trying to inculcate their own brand name in the minds of consumer by using different

skills for sales promotion.

With this it is necessary to see the socio-economic profile of respondents and for

this purpose 90 respondents are taken as samples amongst the population by assuming

that their responses will be applicable to whole population.

It was seen that the respondents were of different occupations.

The following table shows their occupations.

Table No. 1

Distribution of respondents on the basis of their occupation

Sr. No. Occupation Frequency

1 Govt. employees 10

2 Businessmen 8

3 Students 15

4 Private Organisations 16

5 Housewives 21

6 Servants 06

7 Professionals 14

Total 90

Source: Field Survey 2009 – 2010

Table no. 1 shows the different occupation of the respondents. It was necessary to

chose them like that to study the brand preferences and sales promotion schemes in

KSDL. Out of 90 respondents 10 are Govt. employees, 8 are businessmen, 15 are

students, 16 from private organizations, 21 housewives, 06 servants and 14 are from

different professions. To study the socio-economic profile of respondents it is also

necessary to study area and gender wise distribution.

Marketing Strategy Of Karnataka Soaps & Detergents Ltd.

Distribution Channel

KS & DL has a annual transportation contract for its transportation. The selection

of contractors is to call tenders from reputed registered firms. Payment will be arranged

after one month on the receipt of stocks at destinations. For shortages/ damages stock at

destinations cash are recovered from them and the bills are initially recovered from

insurance company. For speedy dispatch of finished goods KS & DL has opened depots

all over the country. These C & F depot will work under the control of concerned

branches. There are 7 branches & 22 depots of KS & DL all over India.

Advertisement

KS & DL sponsors spot advertisement in national network for about 10-20 sec on

important occasions and also in selected by branch depending on viewers of local

television serials and advertisement in leading news papers, magazine and periodicals.

The advertisement is more in local paper when compared to national papers because the

cost is more.

Printing on posters, sign boards, hoardings, TV, Selected railway & bus station.

This is mostly used in south India. The present year budget for advertisement is 8 Crores.

f) POP (Point of Purchase):- Point of Purchase displays and demonstrations are

taken at Point of Purchase and sale.

Sales Promotion

The company is adopting more sales promotion tools in their marketing strategies.

These tools attract brand switchers who can be lured by offering premium and product at

fewer prices.

Like wise the company has adopted a few trade push methods for growth during

last 3 years and judiciously applied its funds towards sales promotions as there were

severe each crunch. The trade push method guarantee the customer off take through the

working capital required becomes relatively high when compared to other method of

concentration on consumer pull by way of advertising campaign.

The following are the sales promotion schemes adopted by the company.

1. Premium Gift:- The company gives one pencil free with every purchase of

Mysore Sales Corporation & 2 Alpha ball pen with every purchase of talcum

powder.

2. Sponsorer:- KSDL was the official Sponsor / Supplier of soap at National

Games in 1997 held at Bangalore and all the participants were given 2 cakes

of Mysore Sandal Soap as gift.

3. Gift Vouchers:- To promote & get demand nationwide. The company gives

gift voucher to television viewers. The company gives Rs.1,000/- gift voucher

to prize winner of Surabhi the cultural weekly program. Anchored by Renuka

Shahane & Siddarth Kak. It is very effective ways to promote company

products nationwide.

4. Trade Exhibitions:- The company participate in Indian Trade Exhibition Fare

(ITEF) on all India basis ITEF conducts exhibition for a period of 15 days.

KSDL participates every year in Mysore Dasara Exhibition for exhibiting and

sale of products. It also took part in the inauguration of I.T. Com The

Technology Park.

5. Price Off’s:- To encourage dealers the company gives price reduction to its

dealers the trade discount given by company is

12.5% Discount on Detergent. 8.5% Discount on Popular Soaps. 4.17% Discount

on Premium Soaps.

6. Allowances:- The company gives advertising allowance to its retailers /

dealers who display its products.

Table No. 3

Sales Turnover Of The Company

Sr. No. Year Sale of Soaps &

Detergents(Rs. in Crores)

1 2004-2005 125

2 2005-2006 132

3 2006-2007 150

4 2007-2008 170

5 2008-2009 200

Source:-Companies Annual Report (2009–10)

Table No 4

Data Analysis And Interpretation

Area wise distribution of Respondents

I

NDEX AREA FREQUENCY PERCENTAGE

1 Jaynagar 25 28%

2 J.P.Nagar 29 32%

3 Big Bazars 22 24%

4 Food Worlds 14 16%

Total 90 100%

Source:- Field Survey 2009-10

0%0%0%14%

0%

16%

0%

12%

0%8%0%

50%

Table representing Area wise distribution of respondents I NDEX AREA

I NDEX 1 Jaynagar

1 2 J.P.Nagar

2 3 Big Bazars

3 4 Food Worlds

4 4 Total

Chart no.1 Area wise distribution of respondents

There are 90 respondents and all of them are from Bangalore city only. Amongst

them 25 respondents are from Jaynagar area and their percentage is 28. Respondents

from J.P.nagar area are 29 and having percentage of 32. 22 respondents from Big bazaars

having percentage of 24. 14 respondents are from Food worlds having percentage of 16.

It means over all JP Nagar is leading and food world is at last. Jaynagar and Big Bazaar’s

are on the middle about the selected Overall respondents.

Table No. 5

Distribution of respondents on the basis of their occupation

Index Occupation Frequency Percentage

1 Govt. Employees 10 11%

2 Businessmen 8 8%

3 Students 15 17%

4 Private organizations 16 18%

5 Housewives 21 23%

6 Professionals 14 16%

7 Servants 6 7%

Total 90 100%

Source :- Field survey 2009-10

The above table represents distribution of respondents on the basis of their

occupation. These respondents are of different fields. There are 90

respondents in all. Out of which 10 govt. employees having 11%, 8

businessmen with 8%,15 students with 17%, 16 from private organizations

with 18%, housewives are 21 with 23%, 14 from different professions with

16%, and 6 servants with 7% .

Distribution of respondents on the basis of their occupation Frequency

108

15

16

21

146

90

1 Govt. Employees

1

2 Businessmen

2

3 Students

3

4 Private organisations

4

5 Housewives

5

6 Professionals

6

7 Servants

7

7 Total

Chart no 2 Distribution of respondents on the basis of their occupation

Table No. 6

Choice and Attributes of respondents with respect to reasons

Index Reasons Frequency Percentage

1 Quality 16 18%

2 Skincare 20 22%

3 Fragrance 14 16%

4 Colour 6 7%

5 Price 4 4%

6 Natural Ingredients 18 20%

7 Motivated by

Advertisements 12 13%

Total 90 100%

Source: - Field Survey (2009-10)

Table No. 8 indicates that from overall 90 respondents 18% of them prefer to use soap to

quality, 22% prefer to use as a skin care and 16% respondents believe in fragrance.

Colour of the soap is one preference, 7% respondents prefer colour as a basis,

4% prefer price as a preference and 20% and 13% of the customers prefer to purchase the

soap as a natural ingredients and soap advertisement respectively.

Source: - Field Survey 2009-10

From the above table we see that 87 (97%) respondents are aware of the product while 3

(3%) of the respondents are unaware about the product.

Awareness and nonawareness of Mysore Sandal Soap Frequency

87

3

90

1 Awareness of MSS 1 2 Non-awareness of MSS 2 2 Total

Charts no. 3 awarness and non awareness of mysore sandal soap frequency

Table 7

Awareness and no awareness of Mysore Sandal Soap

Awareness Frequency Percentage

Awareness of MSS 87 97%

Non-awareness of MSS 3 3%

Total 90 100%

Source:- Field survey 2009 – 2010

Table 8

The frequency of switchover of brands by the respondents

Index Duration Frequency Percentage

1 Monthly Nil Nil

2 Half yearly 20 22%

3 Yearly 32 35%

4 Rarely 38 43%

Total 90 100%

From the above table we can say that respondents are not ready to switchover

of brands immediate in a month but 20 respondents out of 90 switchover half

yearly, 32 yearly and 38 of them switchover rarely.

Table No.2.6

0

0

20

32

38

90

Index Duration Index 1 Monthly 1 2 Half yearly 2 3 Yearly 3 4 Rarely 4 4 Total Chart no. 4 index duration

Table No 9

The attributes of the respondents look in for an ideal soap

Index Attributes Frequency Percentage

1 Caring to skin 15 17%

2 Fragrance 20 22%

3 Medicinal value 7 8%

4 Natural Ingredients 15 17%

5 Price 5 5%

6 Durability 12 13%

7 Quality 16 18%

Total 90 100%

Source:- Field survey 2009-2010

From the above table it may be conclude that, out of 90 respondents 15 respondents look

for a soap as a caring to skin, 20 for fragrance, 7 for medicinal value, 15 as a natural

ingredients, 5 for price and 12 as durable and 16 as a quality product.

Table No.2.7

0

15

20

7

15

512

16

90

Index Attributes

Index

1 Caring to skin

1

2 Fragrance

2

3 Medicinal value

3

4 Natural Ingredients

4

5 Price

5

6 Durability

6

7 Quality

7

7 Total

Chart no. 5 Index attributes

Table No.2.9

0

69

21

Respondents interest in sales promotion scheme Respondents interest in sales promotion scheme

Index Interest Index

1 Yes 1

2 No 2

Chart no. 6 respondents interest in sales promotion

Table No.2.10

0

11

13

12

10

46

Index Age

Index

1 18-22

1

2 22-26

2

3 26-30

3

4 30&above

4

4 Total

Chart no. 7 index age

Table No.10

Different brand of soaps used by respondents

Index Brandname Frequency Percentage

1 Mysore Sandal Soap 23 26%

2 Dove 3 3%

3 Liril 5 6%

4 Pears 7 8%

5 Santoor 10 11%

6 Lux 12 13%

7 Cinthol

8 9%

8 Medimix 5 5%

9 Hamam 5 6%

10 Lifebuoy gold 6 7%

11 Breeze 4 4%

12 Camay 2 2%

Total 90 100%

Source:- Field survey 2009 – 2010

Chart no..8 customer behaviour

CONCLUSION AND SUGGESTIONS

To study Brand Awareness and Sales promotion schemes of Karnataka Soaps and

Detergents Limited was the difficult task. Consumers purchase decision in soap

buying is of low involvement. Important attributes in buying decision are price,

perfume, packaging, advertising, quality etc.

The product Mysore Sandal Soap is available in different brands like sandal classic,

sandal jasmine, sandal rose, sandal lavender, gold soaps etc. The study is undertaken

by keeping in view some objectives like brand awareness, market share of KS&DL

sales promotion. To study the effectiveness of the sales promotion schemes KSDL

sponsors spot advertisement in national network, in newspapers, magazines &

periodicals. In South India, company is printing on posters, signboards, hoardings,

TV, selected railways and bus stations. Company is using different Medias of

advertising. Company is applying different tools like premium gift, sponsorship, gift

vouchers, trade exhibitions, price offs and advertising allowances to dealers/retailers

etc. to display its products. Since last 40 years KSDL is exporting all varieties of its

products to the world. Company undertakes 2 types of exports i.e. direct exports

which directly deal with the foreign company and Indirect exports which deals

through merchandiser agent who acts as a link between KSDL and foreign company.

Exporting of KSDL is under the direct control of marketing department and managed

along with administrative department. The study has undertaken through sampling

method for research. 90 respondents are taken as samples amongst the population and

it is assumed that the results of these respondents are applicable to the whole

population.

Table No.3.1

0

10

14

12

8

44

Index Reasons

Index

1 Costly

1

2 Allergic

2

3 Colour

3

4 Satisfied with present brand

4

4 Total

Major Conclusions

KSDL deals with variety of products in the market and it is seen that its products does

not have more demand except Mysore Sandal Soap. The demand for Mysore Sandal Soap

is more only because of its non-chemical contains and it is not harmful to skin. It softens

the skin, gives healthy glow and free from blemish. Its skin care is by nature and

Ayurveda sandal oil is good for skin. The consumers benefits to that, it is good value for

money. It is an association of sandalwood oil with purity and back of nature trend.

Consumers are of different types/behavior. Some of them are using the product because

of its quality, while some of them are using because of its price, color, natural

ingredients, fragrance etc. All these attributes are necessary to study the consumer

behavior regarding Mysore Sandal Soap.

Company is trying to maintain the quality of its products through quality control and

quality assurance department.

Few complaints have been received about the quality of soap

perfume retention. Complaints have also been received for shortage of

Mysore Sandal Soap trio packing from stockiest / distributors.

Company has taken action regarding consumer complaints and action

has been taken by sending complaints to the soap quality control for

detailed analysis with reference to samples.

The company takes decision for their marketing strategy based

on feed back information from the branch personnel/consumers regarding introduction of

new product by competitors, packaging and maximum retail price and trade discounts.

Important Suggestions:-

1. The company is targeting people of age group 25 and above. The teenagers are

not attracted towards company’s products. Therefore the company needs to

change its target strategies to attract teenagers.

2. Presently KSDL has occupied South Indian market but other parts of India are left

untouched and its market share is less. Therefore is desirable for the company to

adopt suitable strategy to penetrate other parts of India. It is suggested to open

wide dealer’s network in other parts of India to increase sales.

3. Advertising strategy is weak when compared to competitors. Therefore, it is

desirable to adopt aggressive advertising policy and sales promotion activities.

4. The company should undertake advertising to maximum extent during popular

television serials by introducing role models in advertisements.

5. The company should undertake advertising in national magazines and papers

which has more circulation network among public.

6. At most important is that the company must participate in trade fairs within India

and abroad to exhibit to product to attract more customers.

7. The number of sign boards, neon sign hoarding should be increased for reminding

people about products of KSDL they must locate centre places of commercial

business and advertise there.

KSDL products do not have more demand in market except Mysore Sandal Soap.

This Mysore Sandal Soap which is 80 years of tradition soap does not contain chemicals

which are harsh to skin. It softness skin, keep healthy glow, free from blemish. Its skin

care is by nature and Ayurveda Sandal oil is good for skin the consumers benefits to that

it is good value for money. It is an association of Sandal Wood oil with purity & back to

nature trend.

Few complaints is being received about the quality of soap perfume retention,

complaints is also received for shortage of Mysore Sandal Soap trio packing from

Stockiest / Distributors.

Company has taken action regarding consumer complaints and action is taken by

sending soap quality control for detail analysis with reference to sample help in quality

department. The company takes decision of their marketing strategy based on feed back

information from the branch personnel that is introduction of new product by

competitors, packaging and maximum retail price and trade discount.

References

1. Wilkinson & Bhandarkar “Methodology & Techniques of Social Research” PP –

160 – 166, 265- 268.

2. Company’s Half yearly Manual 2005-06 PP – 22 – 24.

3. Company’s Research & Development Centres Report – 2005 PP – 20 -21.

4. Business India (September 2008) PP – 18.

5. Deccan Herald News paper 15th December 2005 PP – 08.

6. Company’s Annual Report (2007) PP – 22.

7. Company’s Annual Report (2006) PP – 20.

8. Company’s Annual Report (2005 – 06) PP – 12.

9. Company’s Exhibition Reports 2006–07 PP – 6, 14 & 18.

10. Times of India Bangalore Edition 18th Nov. 2007.

11. B.S. Raman “Marketing Management” PP – 68-72, 84-90.

12. Subba Rao “International Business Environment” PP – 84.

13. Alfred Della Bitta – “Consumer Behaviour” PP – 43.

14. Dr. Amar Chand and Vardrajan “Marketing Management”

15. Wilkinson & Bhandarkar “Methodology & Techniques of Social Research” PP –

160 – 166, 265- 268.

16. Company’s Research & Development Centres Report – 2005 PP – 20 -21

17. Dr. Amarchand and Veradharajan “Marketing Management” PP – 28.

18. Leo Bogart & Charles Lehman – “Journal of Marketing Research (2005) PP – 21.

19. Leo Bogart & Charles Lehman – “Journal of Marketing Research (2005) PP – 21.