BY:

JASMEET SINGH GREWAL

TOPIC:

CONSUMER PREFERENCE TOWARDS SOAPS

Introduction

Soap is a product that many people might take for granted or consider

rather ordinary, but for some, lathering up can be a treasured part of a

morning or nightly routine.

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 some markets the sales potential for soap is

only beginning to be realized. At the end 2000, soap was a $1.032 million

(US$) business in India. IFF's marketing experts offer the following

overview of this growing category. India is a vast country with a population

of 1,030 million people. 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 (detergents are number one). 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 Toilet soap industry is one of the

oldest Fast Moving Consumer Goods (FMCG) industry in India. It is among

the highest penetrated category within FMCG sector reaching an estimated

95% urban and 87% of the rural households. It is also a sector which is

characterized by a high level of intense competition. The competitors in this

sector ranges from MNC’s like Unilever, Henkel, P&G to local bigwigs like

Wipro, Nirma and Godrej.

With an array of products in all category of soap markets HUL is the market

leader in all category. They are the leaders in economic category with

Lifebuoy, in popular category with Lux and in premium category with Dove.

There is a paradigm shift taking place in toilet soap industry. The economic

category which used to be the most popular category in the past has been

experiencing sluggish growth for the past few years. The premium category

and the popular category are the sectors which are experiencing high

growth rate. The popular and economy segments account for about four-

fifths of the entire market for soaps. The future growth of soap is in the

premium category.

To fight competition, major players HUL, GCPL, Dabur India and Wipro

consumer care & lighting are now drawing up fresh game plans. And the

accent is clearly on the innovation to gain mind share as well as market

share in this overcrowded category.

Soaps, despite their divergent brands, are not well differentiated by the

consumers. It is, therefore, not clear if it is the brand loyalty or

experimentation lured by high volume media campaign, which sustain them.

A consequence is that the market is fragmented. It is obvious that this must

lead to a highly competitive market. soap, once only an urban phenomenon,

has now penetrated practically all areas including remote rural areas. The

incremental demand flows from population increase and rise in usage norm

impacted as it is by a greater concern for hygiene. Increased sales revenues

would also expand from up gradation of quality or per unit value.

As the market is constituted now, it can be divided into four price segments:

premium, popular, discount and economy soaps. Premium soaps are

estimated to have a market volume of about 80,000 tonnes. This translates

into a share of about 14 to 15%. However, by value it is as much as 30%.

Soaps are also categorized into men's soaps, ladies' soaps and common

soaps. There are a few specialty soaps as transparent Glycerine soaps,

sandal soaps, specially flavored soaps, medicated soaps and baby soaps.

Specialty soaps are high valued but enjoy only a small share of the market

in value terms.

The market is growing at 7% a year. This means that the incremental

demand generation is 5% over and above the population growth. With

increasing awareness of hygienic standards, the market could grow at a

rate higher than 8% annually. Interestingly, 60% of the market is now

sourced from the rural sector. This means that the variance between the

two segments is not very large. Since upper-end market focus is the urban

areas, margins come from the urban sector.

Review of literature 

HARISH B

Savlon was a brand owned by a pharmaceutical MNC ICI ltd. Later ICI's

OTC brands was acquired by Johnson & Johnson . Savlon was relaunched in

Indian market in 1993. The brand was expected to give the market leader

Dettol, a run for its money. But even after millions of rupees spent, Dettol

still rules the antiseptic lotion market.This article shows as to why Savlon

was a better antiseptic than Dettol, and then too why Savlon was not able to

hold itself in the market.it also shows the strategy adopted by Dettol which

was not expected by J&J to fight the upcoming antiseptic brand, the

decisions took by J&J and its effect on the brand ‘SAVLON’.It also includes

launch of Savlon’s soap, strategies adopted by HUL to compete Dettol soap,

and finally the drop of savlon soap by HUL.

The power of contrast S. Ramesh Kumar and B. Shekar

This article says that marketers must use the aspect of contrast creatively

so as to lure the consumers.It also shows that the product attributes of a

leader (Dettol) create a perception that highlights the contrast when there

is a follower brand (Savlon). This approach is extremely useful to fast

moving consumer goods where differentiation is difficult to sustain in the

long run. Marketers through advertisements, alongwith conveying the

positioning of the brand, should create a contrast that consumers will be

able to accept and incorporate over a period of time. The contrast would

have to be relevant to the positioning of the brand.

Allison E. Aiello, Elaine L. Larson, and Stuart B. Levy

In this article Much has been written recently about the potential hazards

versus benefits of antibacterial (biocide)-containing soaps. The purpose of

this review was to assess the studies that have examined the efficacy of

products containing triclosan, compared with that of plain soap, in the

community setting, as well as to evaluate findings that address potential

hazards of this use—namely, the emergence of antibiotic-resistant bacteria.

Soap makers oppose excise duty move Handmade soap manufacturers in Tamil Nadu have opposed the proposal in the Union Budget to reintroduce excise duty on their produce, saying it would force the small enterprises in the sector to close down.

It would be very difficult for them to survive in the industry as they would not be able to face the onslaught by the mechanised soap making units, run by multinationals, Tamil Nadu Small Scale and Tiny Soap and Detergent Manufacturers Association President V S Krishnan told reporters here last night.

He said for manufacturing 1,000 kgs of handmade soap 30 workers were needed while in the mechanised sector five persons could do the job.

Janice L. Fuls*, Nancy D. Rodgers, George E. Fischler,Antimicrobial hand soaps provide a greater bacterial reduction than nonantimicrobial soaps. However, the link between greater bacterial reduction and a reduction of disease has not been definitively demonstrated. Confounding factors, such as compliance, soap volume, and wash time, may all influence the outcomes of studies. The aim of this work was to examine the effects of wash time and soap volume on the relative activities and the subsequent transfer of bacteria to inanimate objects for antimicrobial and nonantimicrobial soaps. 

How rural Indian shoppers are changing,Amit Bapna,In this article rural awareness is shown which has been changed significantly . The study is a global consumer research study conducted in 52 countries to understand shopper attitudes and behavior, and the agency has released the Indian study that was done across 14 cities. The study shows that the companies that win in rural markets are more adept at ensuring the right promotion and better distribution growth than their competitive set. The rural audience no longer wants to be seen as poor second cousins of their urban counterparts. They have the money and they are willing to experiment

Synthetic detergents in the soap industry

H. C. Borghetty and C. A. Bergman

It is the opinion of the authors that much can be done to improve the efficiency of soap in hard water by building it on a ternary system, which will make it more competitive against built synthetic detergents in areas of low and medium hard water. This appears to be particularly advantageous because of the present low prices of fat and greases and the large stocks that are available today

alt.franceIt has been ascertained by numerous reports that the soap industry in France is losing money at an alarming rate.  Considering the average Frenchman showers less than once a month, the French government has declared the 15th of each month "shower day."  This act was also bolstered by the horrible smell of the stinking Frenchman in the French rail system.  Many tourists have been forced to where masks to protect themselves from this horrible stench.  It is also mandatory that a Frenchman uses deodorant at least once a week and brushes his teeth twice per month.  Such laws may, however, be impossible to enforce as the average Frenchman enjoys his own stench

Juliet F. Birda

Many areas of intertidal vegetation in eastern Australia which today are

relatively free from human interference were once subject to extensive

exploitation as a source of alkaline ash or barilla for use in the manufacture

of soap. The production of ash, which involved cutting and burning several

different plant species, took place at many sites along the eastern and

southern mainland coast, as well as in Tasmania and the Bass Strait Islands.

While it is difficult to determine the legacy of this activity in the landscape

today, it is nevertheless clear that biogeographers should consider it as a

possible ecological factor in determining patterns of coastal vegetation.

Soaps and detergents: North American trends, Theodore E. Brenner

North America, the U.S. and Canada, produces nearly one third of the world

supply of soaps, detergents, and cleaners, primarily for household

consumption. The U.S. contributes 95% of North American production.

Cleaning product demand is steady and expected to remain so, but new

demographic trends affecting households and living arrangements will

probably stimulate consumer needs for more convenience-oriented

products. Environmental considerations and government actions in recent

years have caused drastic changes in detergent composition, especially

affecting laundry detergents. Government involvement in business decision-

making has expanded enormously with no prospects of reduction because

legislators perceive government regulation of industry to be necessary for

the attainment of broad social goals.

Davies, Jean,Babb, J. R.,Ayliffe, G. A. J.,Ellis, S. H.

The effect on the skin flora of bathing with three different detergent antiseptic preparations (chlorhexidine, povidone-iodine and hexachlorophane) was assessed in staff and patients. Contact plate samples from the skin showed an increase in the numbers of bacterial colonies after bathing with soap and either a decrease or less often a smaller increase after bathing with an antiseptic. Although significant differences between soap and antiseptic baths were found in samples from individual sites on staff no overall difference between soap and other preparations was obtained. A reduction occurred more frequently with chlorhexidine, particularly 4 h after bathing, and the low counts from the bath water after three baths with chlorhexidine showed some residual effect.

Arjun chaudhary

Discusses and contrasts the theories of double jeopardy and brand equity. A

model of attitudes, habit, brand loyalty and brand equity outcomes is

proposed in order to reconcile the two theories. Results of a study designed

to test the model are presented. Results indicate support for both theories

of brand equity and double jeopardy since both direct and indirect

relationships were found between attitudes/habit and brand equity

outcomes. The indirect relationships were mediated by the concept of brand

loyalty. Implications for managers are discussed.

Perceived risk: A cross-cultural phenomenon? Bronislaw J. Verhage

The existence of a positive relationship between perceived risk and brand loyalty has been accepted in the United States since the 1960s. Recognizing this, marketers frequently give out free samples or coupons and provide reassurances through warranties to induce trial and subsequent acceptance of their brand by the consumer. However, validity of the concept of perceived risk with respect to international markets has been lacking.This paper responds to the call for cross-national research of behavioral concepts and tests the applicability of perceived risk in a cross-national setting. While the limited scope of the study (four countries and two products) does not permit definitive statements, results indicate that perceived risk can be used to analyze consumer behavior patterns in different cultures. The findings also suggest that the risk reduction strategy of brand loyalty may not be widely employed by consumers outside the U.S.A.

What Will Consumers Pay for Social Product Features?Pat Auger, Paul Burke, Timothy M. Devinney and Jordan J. LouviereThe importance of ethical consumerism to many companies worldwide has increased dramatically in recent years. Ethical consumerism encompasses the importance of non-traditional and social components of a company''s products and business process to strategic success – such as environmental protectionism, child labor practices and so on. The present paper utilizes a random utility theoretic experimental design to provide estimates of the relative value selected consumers place on the social features of products.

Organization, Market and Community as Strategies for Change: What Works Best for Deep Changes in Schools

Thomas J. Sergiovanni

How one approaches changing a school or an educational system depends, fundamentally, on one’s views about what kinds of places schools really are or should be. In this chapter, Tom Sergiovanni describes three dominant perspectives on schooling and the change strategies that spring from them — schools as bureaucratic organizations, schools as market systems, and schools as communities.In each of these models, Sergiovanni describes how different forces of change can be used to leverage change in schools — bureaucratic forces of rules, requirements, procedures and outcomes; personal forces of leadership and personality; market forces of choice and competition; professional forces of self-set standards, codes of conduct and norms of service; cultural forces of values and relationships; and democratic forces of contracts and commitments to the common good.Sergiovanni then charts how these forms and forces of schooling play themselves out in different patterns of reform — evaluating the strengths and weaknesses of each. In the end, he argues, “deep changes in schools, may well require that the basic metaphor for the school itself be changed from formal organization or market to community

Effects of superfatting agents on cracking phenomena in toilet soap

Ainie Kuntom, Iftikhar Ahmad, Hamirin Kifli and Zainon Mat Shariff

Palm stearin (POs) is one of the cheapest sources of C16–C18 fatty acids for use in soap making. Toilet-soap formulations containing a high content of POs, however, would result in hard soaps with a tendency to form cracks on the surface. This phenomenon can be overcome by addition of superfatting agents to increase plasticity of the finished product. In this study, two different blends of soap made from distilled POs, palm oil (PO), and palm kernel oil (PKO) fatty acids in the ratio of 40POs/40PO/20PKO and 70POs/30PKO were evaluated. The soaps were superfatted with glycerin, palm kernel olein, coconut oil, olive oil and canola oil. The levels of incorporation of each superfatting material were 1, 2, 4, and 6%, respectively. The samples were subsequently tested for both wet and dry crackings using the Hewitt Soap Company methods (numbers 78 and 79, respectively). The superfatted soaps had a total fatty matter of 73–83% and an average moisture content of 10%. The penetration value which indicates hardness increased with increasing amount of superfatting agents. Foaming or lathering property was good with the exception of the formulation using

palm kernel olein and canola oil as superfatting agents. At all the above levels of superfatting agents added, no cracks were observed during both wet and dry cracking tests. A sample of soap superfatted with 2% canola oil, however, developed cracks during the wet cracking test. This resulted in a test score of 7. Superfatting soaps with 1–2% neutral oils or glycerin resulted in better quality soaps that were free of cracks.

The new toilet soapsA. B. Herrick and Eric Jungermann

Toilet soap bars have undergone few major technical changes in the last century. Noteworthy improvements were floating soap, the development of effective deodorant and antibacterial soaps, the so-called “hard water” bars, and advances in packaging technology. The trends in these areas toward product and process improvement will accelerate in the 1970’s. New raw materials are becoming available which will give greater formulation flexibility, with emphasis towards greater mildness and effectiveness. Among these products are the synthetic fatty acids which could partially replace coconut acids, more effective broad spectrum antibacterial agents for better control of skin microorganisms, and mild detergent additives with good physical properties and less defatting tendency. In processing, the move is toward continuous soap-making equipment in place of the old kettle processes which are still widely used. More powerful and specialized plodders are available; these will facilitate the development of new product types.

A new approach to continuous soap making-constant composition control

Fredrik T. E. Palmqvist and Frank E. Sullivan

A new continuous process for the manufacture of soap is described, detailing the three main operations in soapmaking, that is, saponification, washing, and fitting.In the new process all operations involved in the production of soap are carried out in a hermetically closed system. The amounts of lye necessary for the saponification as well as of brine for the washing and fitting operations are regulated by the automatic constant-composition control system, which eliminates the older method of control of the soapmaking process by cumbersome chemical analyses.The process is based on the use of the Hermetic separator, a centrifuge of special design which allows the regulation of the separation efficiency during operation and which prevents any admixture or contact of the soap with air and consequently any oxidation of the product during processing.All type of soap, high grade toilet soap as well as laundry soap and industrial soaps, can be produced by this process, which is characterized by

high flexibility, low operation-costs, and a high quality of the finished product.

Advances in bar soap technology E. Jungermann

This paper reviews recent trends in bar soap technology. Toilet soap markets are highly competitive and the supporting technology is changing rapidly. New equipment and processing techniques have been developed, such as high caustic-high solids saponification, high speed finishing equipment, and more efficient dryers with better pollution controls. Multicolored, marbleized soaps have become important in the marketplace and new plodder designs have been developed for their manufacture. A large number of new ingredients for use in soap-synthetic combination bars have been reported. Also, the antimicrobial/deodorant soap segment, representing over 50% of U.S. market, has undergone considerable shifts due to governmental actions which has resulted in restrictions on hexachlorophene. Future regulatory actions on other antimicrobial agents are probable.

Kara Chan 

Market segmentation is one of the useful tools for marketers to define target markets. An intercept sample survey of 704 shoppers in Hong Kong was conducted to segment the marketbased on the past purchase of environmentally friendly as well as not-so-friendly products. Chi-square analysis and stepwise discriminant analysis were conducted to differentiate heavy and light green consumers using demographics and other environmental variables including green consumerism knowledge and perception about environmentally friendly products. It was found that heavy green consumers were more likely to have a higher education and a higher household income. They perceived that environmentally friendly products were good for their health and helped to save resources. Heavy green consumers were more likely to report that they perceived influence from other persons, the government and the green groups. They had a strong self-identity and think of themselves as green consumers and as someone who was concerned with environmental issues. They possessed a better knowledge about green consumerism and more frequently used the mass media for environmental news. Light Green consumers found environmentally friendly products difficult to access. Implications for green marketers and manufacturers are discussed.

The effect of advertising on sales and brand sharesJ.M. Samuels,

Tests a new series of models which attempt to describe the relationship

between advertising and sales. Describes an attempt to obtain information

of this kind by investigating the effect of advertising on sales and brand

shares. States that a number of researchers are now attempting to develop

models to explain the workings of the market for a particular product.

Emphasises that the prime area of interest of the study is the effect of

advertising on sales and brand shares. States the study does not have the

objective of constructing a complete marketing model involving all the

variables that are thought to influence a brand's share of a product.

Concludes that many results herein are disappointing, but it is perhaps too

optimistic to expect the models dealt with earlier to be successful.

RESEARCH METHODOLOGY

The task of data collection begins after a problem has been defined and

research design/plan chalked out. While deciding about the method data

collection, the research should keep in mind two types of data viz, primary

and secondary.

The primary data are those which are collected fresh and for the first time

and thus happen to be original in character. The secondary data are those

which have already been collected by someone else and which have already

been passed through the statistical process. The methods of collecting are

to be originally collected, while in case of secondary data the nature of data

collection work is merely of compilation

PRIMARY SOURCE- A structured questionnaire to be prepared and data will

collected from respondents. The sampling technique used in this survey is

convenience sampling.

SECONDARY SOURCE- Secondary data means the data already available,

which has already been collected and analyzed by someone else. It includes

the published data available in the form of:

Various publications

Journals

Books, magazines, Newspapers

Internet

SAMPLE SIZE

The sample size of respondents will be 30. Convenience sampling method will

used.

Tools used for data collection:

Data was collected by using a self-constructed questionnaire from 30

respondents.

TOOLS USED IN SURVEY

The various tools used in conducting the survey are as follow:

Questionnaire

Personal Interview

INTERVIEW METHOD: The interview method of collecting data involves

presentation of oral verbal stimuli and reply in terms of oral verbal

responses. Personal interview method is the face to face contact to the

other preson.This method is particularly suitable for intensive

investigation.

QUESTIONNAIRE METHOD: This method of data collection is quite

popular in case of big queries. In this method a questionnaire is

presented to a concerned person with a request to give answers of the

questions. The general form of questionnaire can be either structured or

unstructured. Structured questionnaires are those in which there are

definite, concrete and predetermined questions. When these

characteristics are not present in the questionnaires, it is termed as

unstructured. The questions included can be in the form of closed ended

which involves choice of answers or it can be open ended questions

which asks for the respondents personal opinions and views.

Overview:

Research Type: Objective

Data collection: Primary source of data (questionnaire), Secondary

Data (internet, books, newspaper and various journals)

Research approach: Survey method

Research instrument: Questionnaire

Research: Semi-Structured

Size: 30

Research Sampling: Convenient sampling

Tools of data analysis: SPSS and Microsoft Excel

ObjectivesObjectives of the study

To find out brand preference of customers in a particular town.

To find out category preference.

To find out brand loyalty of customers.

To find out the source of influence of customer purchase.

To rank the various attributes while selecting a brand

To find out the attitudes, needs, tastes and preferences of consumers

towards Soaps

DATA ANALYSIS AND INTERPRETATION

The purpose of the questionnaire was to identify the usage and buying pattern of the

consumers of toilet soap. For this, questionnaires were administered to 30 respondents. The

analysis is done on the basis of the answers given by the respondents to the questionnaire.

1. Gender wise classification

The respondents group includes males and females. 57% of the respondents are females and 43

% are males. There is high proportion of males.

The following bar graph will illustrate the gender wise classification.

Gender Frequency PercentageFemale 13 43Male 17 57Total 30 100

2. Marital Status

The respondents are classified into married and single to see any difference in the usage

pattern and the buying behavior. The respondents are 90% single and the rest 10% are married

which shows a comparable distribution for the analysis. The data analyzed is shown in the table

below.

Marital Status Frequency Percentage

Single 27 90Married 3 10Total 30 100

Hence majority of the user base lies in the single youth but the married people also forms a

comparable share in the bar graph.

The following bar graph will illustrate the classification based on marital status

3. Age group

This consists of classification of respondents according to age group. The following pie chart

illustrates this.

Age Group Frequency Percentage

15-25 14 47

26-35 9 30

36-45 6 20Above 45 1 3

Total 30 100

Fig 1: Classification according to age group

The age groups of the respondents are divided into certain range and the range is 10. The ages

are grouped as 15 to 25, 26 -35, 36-45 and above 45. Here majority of the respondents belong

to the age group of 15 to 25 and is about 47%. 30% of them are from the age group of 26 to 35.

4. Occupation

The respondents group includes 3 categories of people- employees, professionals, self-

employed and others. The student group forms the chunk of the user base as per the research

with 44%. Employed form 3 7% of the population. The data in table format is shown below.

Category FrequencyPercentage

Employed 11 37Self-Employed 4 13Professional 0 0Student 13 44Others 2 6Total 30 100

The analyzed data is illustrated in the following bar graph

The following bar graph will illustrate the Classification based on occupation.

5. Buying pattern

The buying pattern has been divided as per the frequency and includes , once in 15 days, once

in month, once in 2 months

once in 15 days

once in month

once in 2 months

The percentage of respondents who buy soap once in a month forms the maximum. This is

illustrated in the bar graph shown below.

The following bar graph will illustrate the based on usage pattern.

6. Using Specific Brand

Frequency of the people using a specific brand for a considerable period of time constitutes

34% of the population. The remaining doesn’t have a specific brand preference. This is

illustrated in the following bar graph. From the bar graph we can find that more than half of the

respondents are those who do not use a specific brand for a considerable period of time. This

shows that brand loyalty among soap buyers in city is very low.

The following bar graph will illustrate the specific brand preference

7. Category of soap

Popular category soaps forms the most popular among the respondents. More than 50% of the

customers favors popular category. It includes brands like lux, pears, cinthol, dettol etc. The

following bar graph will illustrate this.

The following bar graph will illustrate the Category preference.

8. Brand Preference

The most popular soap brand among the customers is Lux. Pears is the second popular soap

among the respondents. The preference is shown in the bar diagram shown below.

The following bar graph will illustrate the Brand preference.

9. Preferred Packet size

Out of the sample surveyed majority of the people purchase 75 gm packets. The second

position is for 125 gm packets. This is illustrated in the bar graph shown below.

The following bar graph will illustrate the Packet size preference.

10.Buying behavior when brand is not found

When a brand is not available in the store the possible events from the consumer side can be-

select another brand, go to another shop for purchasing that particular brand or try the same

brand to buy that particular brand. The buying behavior is illustrated in the bar graph shown

below.

11.Purchase decision influence

Purchase decision also plays an important role in brand preference. Different categories of

people effect consumer decision .A person make sole decision among others while friend

contribute second highest influence in decision while children is least

12. Store preference

From the survey it’s found out that majority of the people prefer to buy soaps from

supermarkets. This may be due to the popping up of large number of supermarkets across the

city. Thus it is essential for soap companies to formulate strategies focused on customers who

buy the product from supermarkets. This is illustrated in the bar graph shown below.

13.Product characteristics

Consumer sees a variety of different attributes in product .for different consumers there are different characteristics which they favor in a product. Respondents rank the different attributes on scale of 5. Different attributes were Product Characteristics (Quality, Packaging, Fragrance, Ingredients, Dirt removal, etc) which was highest rated because if product delivers its value then consumer buy it, Price and Convenience of place of purchase (Super Market, Retail Shop, Groceries etc) are on the equal scale ,Promotional Activities(TV/Radio advertisement, Free Issues, Money-Offs, Discount, etc), Influence/Suggestion of a person(Family Member, Friend, etc), Suitability to the skin type plays the least role.

14. Factors to be considered in soaps for ranking

From the survey it is found that quality of soap is the paramount criteria while selecting soap.

Attractive packaging of the product is another criterion along with the fragrance of the soap.

Size is another criterion which is rated high but is found to have less rating than skin protection.

This shows a shift in consumer taste from being price conscious to look conscious. This data

shows that customers tend to have a liking for quality products and for famous brands. The

various factors are ranked from 1 to 7. The highest rank, i.e. 7 is for quality and the last rank,

i.e. 1 is for packaging. This is illustrated in the following diagram.

15.Promotional activities

Promotional activities of the soaps are governed by different factors. TV advertisement,

hoardings, newspapers are the major factor that influences purchase decision. Majority of the

respondents subscribed these as the major factor. This is illustrated in the bar graph given

below. Respondents has to select top three promotional activities among different activities

CHI-SQUARE Test

4.2.1 Age group and specific brand preference

Age group Using specific brand

Yes No

Total

15-25

26-35

36-45

Above 45

Total

0

4

5

1

10

1

5

7

7

20

1

9

12

8

30

Null Hypothesis (H0):

The brand preference is independent of different age groups.

Chi-square test:

Observed Value Expected Value (Oij – Eij )2/Eij

0

1

4

5

5

7

1

7

0.333

0.666

3

6

4

8

2.666

5.333

0.333

0.1675

0.333

0.1666

0.25

0.125

1.0410

0.5210

df= (c-1)(r-1)= (2-1)(4-1)=3

χ2 = Σ (Oij – Eij )2/Eij [14]

= 2.937

The table value of χ2 for 3 degree of freedom at 5 per cent level of significance is 7.815. Since

the calculated value of χ2 is much less than the table value the null hypothesis is accepted.

4.2.2 Age group and usage

Age group Alternate

days

Once a day Twice a day Others total

15-25

26-35

36-45

Above 45

Total

0

0

0

0

0

0

1

6

4

11

1

7

8

1

17

0

1

0

1

2

1

9

14

6

30

Null hypothesis (H0):

Soap usage pattern is independent of different age groups.

Chi-square test:

χ2 = Σ (Oij – Eij )2/Eij = 8.488

Degree of freedom is 9 and level of significance is 0.05. The table value of χ2 for 9 degree of

freedom at 5 per cent level of significance is 16.919. Since the calculated value of χ2 is much

less than the table value the null hypothesis is accepted.

Findings1. It is found that the people in the age group of 15-25 form the major chunk of customers.

They form about 47% of the customers and most of them are students

2. More than half of the customers buy soap once in a month.

3. Only 10% respondents use specific brand for a considerable period of time.

4. The popular category soaps forms the most selling category of soaps.

5. 75 g was found to be the most popular volume among customers.

6. Supermarkets are preferred by majority of the respondents to buy soaps.

7. The experience from the product in terms of its attractive packaging, value for money etc

has a higher say in purchase decision.

8. For a customer the quality of the soap is the paramount criteria while selecting soap. Brand

name of the product is another criterion along with the fragrance of the soap.

SuggestionsFor soap:

Reduce burning sensation

Adopt aggressive marketing strategy for toilet soaps.

Smaller size of toilet soap’s to enable the travelling people to be brand loyal

More attractive packaging should be adopt e.g.: chinthol come with new packaging and

thus higher there sales

For sales:

Attractive Packaging

Incentive to dealers/ distributors

TV commercials telecasted especially during prime time

Advertisements through Radio channels during morning and evening

Outdoor media: billboards at railway stations, buses etc

Since advertising has a critical role in purchasing decision in store promotions, offers and

discounts, media advertisements etc for toilet brands should be increased. Efforts should be

made to improve the purchasing volume of the customers. For that discounts can be given for

multi packet purchase. Special measures must be taken to woo the customers.

ConclusionThe average consumer has become sensitive to value offered by brands, either in terms of price

or in terms of the intrinsic benefit offered at a higher price point. The emergence of several

discount brands and higher-priced improved offerings can be seen in the soap category. Lux is

an example of how the brand initiated the strategy of offering several variants (like almond) in

the lower segment when such variants have been associated with higher segments in the

category.

Apart from expecting value, the consumer is also caught in generic competition which may

force him/her to downgrade in a few categories while testing other categories. For instance,

the consumer, in order to balance her household budgets, may alternate between a good brand

of soap and a low-priced soap [8].

Balancing functional benefits, symbolic appeals and timing the right combination of good

functional attributes and symbolic brand orientation (which can be beyond advertising like an

event associated with beauty care/hair care) within a price band is likely to be a conceptual

approach to get over the complexities of the FMCG markets.

PERSONAL INFORMATION

1. NAME

2. GENDER

 MALE

 FEMALE

3. MARTIAL STATUS

 Married

 Unmarried

4. Age Group

 15-25

 25-35

 35-45

 Above 45

5. Occupation

 Employed

 Self-Employed

 Professional

 Student

 Other

About the soaps

6. How often do you buy bath soaps?

 Once in 15 days

 Once in month

 Once in 2 months

7. Do you use a specific soap brand?

 yes

 no

8. Which category of soap do you generally use?

 Economic

 Premium

 Popular

9. What is your brand preference?

 Lux

 Lifebuoy

 Dettol

 chintol

 pears

 Johnson and Johnson

 Other:  

10. What is the Preferred Packet size you purchase?

75gm

100gm

125gm

others

11. If you do not get your brand in a shop then will you?

 Go to another shop

 Try the same type of brand

 Try another brand

12. Who influence/suggest you to make the purchasing decision of the brand?

Children

Friends

Yourself

Husband

Presenter/Sales Person Other

13. From where you like to buy the soap?

Super Markets

Premium Groceries

Retails Pharmacy

Fancy Shops

14. Rank the following attributes you consider while buying?

  1 2 3 4 5

Product Characteristics (Quality, Packaging, Fragrance, Ingredients, Dirt

  1 2 3 4 5

removal, etc)

Price

Convenience of place of purchase (Super Market, Retail Shop, Groceries etc)

Promotional Activities(TV/Radio advertisement, Free Issues, Money-Offs, Discount, etc)

Influence/Suggestion of a person(Family Member, Friend, etc)

Suitability to the skin type

15. What are the factors to be considered in soaps for purchasing

(Please indicate the rank using only number 1 to 7, 1 least and 7th highest)

Attractive packaging

Fragrance/Odor /Smell

Size/Weight

Ingredients

Moisturizing effect

Lathering/Foaming effect

Softness

Dirt removal /Cleansing

Skin protection

16. What are the top 3 most influenced promotional activities to soap?

TV Advertisement

Radio Advertisement

POSM (Posters, Danglers, etc

Hoardings

Newspaper/Magazine

Discounts

Free Banded issues (ex: Buy 2 get 1 free, etc)