Hul Project Report

Introduction Introduction of Bath Soaps In India, soaps are available in five million retail stores, out of which, 3.75 million retail stores are in the rural areas. Therefore, availability of these products is not an issue. 70% of India's population resides in the rural areas; hence around 50% of the soaps are sold in the rural markets. Hindustan Unilever is, of course, the market leader .The market is littered over with several, leading national and global brands and a large number of small brands, which have limited markets. The popular and premium brands include Lifebuoy, Lux, Cinthol, Liril, Rexona, and Nirma. Bath 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. Bath 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. The segment of bath soap can be segregated into:  Premium  Economy  Popular  Discount The price of the premium segment products is twice that of economy segment products. The economy and popular segments are 4/5ths of the entire soaps market. The penetration level of bath soaps is 88.6%. However, the per capita consumption of soap in India is at 460 Gms per annum. As the market is constituted now, it can be divided into four price segments: premium, popular, discount and economy soaps. Popular soaps are estimated to have market volume of about 835.38crore having the share of 42%. Premium soaps are estimated to have a market volume of about 298.35crore. This translates into a share of 15%. Economy soaps estimated to have market volume of about 497.25crore. This translates into a share of 25% and the discount soaps are estimated to have a market volume of about 377.91crore. And this translates into a share of 19%.

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Bath Soap Industry Overview Bath Soap industry is one of the oldest Fast Moving Consumer Goods (FMCG) industries in India. It is among the highest penetrated category within FMCG sector reaching an estimated 99% urban and 97% of the rural households. The main characteristic of the industry was severe competition and high level of brand creation. HUL saw the share of its soap brands such as Dove, Lux, Hamam, Breeze etc. dip by value to 50.3% in the September quarter, from 53.2% a year earlier, according to market research firm AC Nielsen. Market share slipped from 52.7% at the end of June. The soaps market recorded sales of Rs 1,989 crore in the second quarter this fiscal. Godrej Consumer Products Ltd, or GCPL, whose soaps include Godrej No. 1, Cinthol and Fair Glow, was stood second with a market share of 9.47%, followed by Wipro Consumer Care Ltd‘s 8.34%, according to AC Nielsen. The leading brands in the market are Dove, Pears, Lux, Dettol, Liril, Lifebouy, Godrej No 1, Nirma, and Hamam. The industry had witnessed many innovative sales promotion activities in the recent past. Numerous factors were responsible for such a phenomenon. One of the reasons being that the market being sluggish, companies were trying to increase market share in stagnant to declining (volume terms) market in order to retain consumers, to encourage switching, to induce trials and liquidate excessive inventories. Another reason possible was that with the presence of so many brands the competition had increased severally leading to fight for market share and shelf space. Inflationary trend had made both the consumer as well as trade deal prone. Hence, sales promotion activities in Bath Soap industry posed a very interesting study and consumer and retailer perceptions thereof. On the basis of information collected on various brands and their prices, following three segments emerge. Price Segments of Bath Soaps Segment Premium Popular Economy

Price Above Rs. 20 Rs 13 to Rs. 20 Rs. 8 to Rs. 12

Weight 75 gm 75 gm 75 gm

The brands in popular segments were found to be frequently promoted as there was intensive price competition in this segment. The brands could also be classified based on medicinal benefits, cosmetic benefits, perfumes, and natural/herbal properties. For the purpose of this study, only price segments were considered.

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Price Segmentation of Bath Soap

Segregation of Bath Soap Segments (Total Sale of bath soap segment: 1989 crore)

25 %

19 % Discount Primium 15 %

Popular Economy

42 %

Soaps are also categorized into men's soaps, ladies' soaps and common soaps. There are a few specialty soaps as transparent Glycerin soaps, sandal soaps, specially flavored soaps and medicated 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. Growth With increase in disposable incomes, growth in rural demand is expected increase because consumers are moving up towards premium products. However, the recent past there has not been much change in the volume of premium soaps proportion to economy soaps, because increase in prices has led some consumers look for cheaper substitutes.

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to in in to

Introduction to HUL FMCG Company has been playing a key role in the national economy in both rural and urban sector. Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company‘s Turnover is Rs. 20,239 crores (for the 15 month period – January 1, 2008 to March 31, 2009). HUL is a subsidiary of Unilever, one of the world‘s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of Rs.2368.42 billion in 2008. Unilever has about 52% shareholding in HUL. Hindustan Unilever was recently rated among the top four companies globally in the list of ―Global Top Companies for Leaders‖ by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India. The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to ―add vitality to life". The company meets every day needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity. The vision of HUL is to "meet everyday needs of people everywhere- to anticipate the aspirations of our consumer & customer & to respond creatively & competitively with branded products & services which raise the quality of life." The objectives is achieved through the brands that the company markets. HUL's Brands have been household names. Some of the big Brand in soaps and detergents are LifeBuoy, Lux, Breeze, Dove, liril, Hamam, Surf, Rin, and Wheel In order to know about the effect of the brands LIFE-BUOY, LUX, HAMAM, PEARS, DOVE, LIRIL & ―BREEZE‖, which are very popular among the people? I have tried to study the consumer behavior towards these soaps, although there are other brands. It has also been seen that Life-Buoy, Breeze & Lux are popular among the rural area. Being soap, consumers especially youth are very sensitive while choosing the brand, so this has made me to study the consumer behavior towards these soaps.

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Heritage HUL‘s heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in India. Local manufacturing began in the 1930s with the establishment of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan Unilever Limited on June 25, 2007). The company created history when it offered equity to Indian shareholders, becoming the first foreign subsidiary company to do so. Today, the company has more than three lakh resident shareholders. HUL‘s brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls - are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in over 35 factories, several of them in backward areas of the country. The operations involve over 2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail outlets including direct reach to over 1 million. HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Lever Research Centre (now Hindustan Unilever Research Centre) was set up in 1958.

Principles of the Quality Policy • Putting the safety of their products and consumers first. HUL has stringent mandatory quality standards in place against which compliance is verified through regular audits and self assessments. These standards ensure they design, manufacture and supply products that are safe, of excellent quality, and conform to the relevant industry and regulatory standards in the countries in which they operate. • They actively engage consumers and customers, translating their needs and requirements into products and services, thus creating consumer value wherever they position their products. • Quality is a shared responsibility Quality and consumer safety is the responsibility of every Unilever employee and Unilever demonstrates visible and consistent leadership to meet this policy. The drive for quality, in all that they do, is a passion reflected in their brand development, manufacturing and customer service processes.

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Divisions Home and Personal Care The HPC business is made up of Fabric Wash, Household Care, Personal Wash and Personal Care categories.        

Personal Wash: Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Rexona Laundry: Surf excel, Rin, Wheel Skin care: Fair and Lovely, Ponds, Vaseline. Shampoo: Clinic Plus, Clinic All Clear Oral care: Pepsodent, Close up Deodorants: Axe, Rexona Colour cosmetics: Lakme Ayurvedic personal and health care: Ayush

Foods The Foods Division of the Company comprises Beverages, Processed Foods, IceCreams and Modern Foods businesses.    

Tea: Brooke Bond, Lipton Coffee: Bru Foods: Kissan, Annapurna, Knorr Ice cream: Kwality walls

Water Pureit, a breakthrough offering of Hindustan Unilever (HUL), comes with many unique benefits – complete protection from all water-borne diseases, unmatched convenience and affordability.

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Major Players of Bath Soap Market Hindustan Unilever Ltd. With over seven brands — LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE and PEARS — has 52.7% share of the overall soap market. HUL is India's largest Fast Moving Consumer Goods Company; its journey began 77 years ago, in 1933, when the company was first incorporated. The company stirring the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages and also one of the country's largest exporters. HUL's brands includes Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's - are household names across the country. They are manufactured in over 40 factories across India. In the Rs7, 000 crore by sales soap market; HUL‘s market share has dropped to 52.7% in March 2009 from 55.9% in March 2008.

Godrej Consumer Products GCPL, India‘s second largest soap maker after Hindustan Unilever Ltd, has nearly 9.47% market share. It is the second largest soap maker after Hindustan Unilever. Godrej Consumer Products (GCPL) is a major player in the Indian FMCG market with leadership in personal, hair, household and fabric care segments. The company is one among the largest marketer of toilet soaps in the country with leading brands such as CINTHOL, FAIRGLOW, & NIKHAR. Fairglow brand, India's first Fairness soap, has created marketing history as one of the most successful innovations. It is also the preferred supplier for contract manufacturing of toilet soaps, some of which are the most well-known brands in the country.

Wipro In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate segment in India. Wipro also has a profitable presence in niche market segments of infrastructure engineering, and consumer products & lighting. Wipro has made a large acquisition in the Consumer Care business. The presence of Wipro in the toilet soap industry can be seen through their brands such as SANTOOR and CHANDRIKA. With industry leading organic growth rates and the acquisition, Consumer care business has reached a Revenue run rate in excess of $100 million per quarter.

Nirma Incorporated as a private limited company, Nirma was converted into a deemed public company and then to a public limited one in Nov.'93. Nirma has a leadership presence in Detergents, Soaps and Personal Care Products. To have a greater control on the quality and price of its raw materials, Nirma undertook backward integration into manufacture of Industrial Products like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerin and Sulphuric Acid. During 1996-97, Nilnita Chemicals, Nirma Detergents, Nirma Soaps and Detergents, and Shiva Soaps and Detergents were amalgamated with the company. The company created 'Nirma Consumer Care Ltd.' - a wholly owned subsidiary on 22nd Aug.'97, which is the sole licensee of the brand name 'Nirma' within India. Nirma enjoys a share of 6.74% in soaps.

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ITC ITC, the country‘s largest cigarette maker, entered the segment last year and has made a strong headway in a short time. According to AC Nielsen, its share has grown to 1.75% in just five months despite the fact that many of its brands such as Superia, Fiama Di Wills and Vivel are currently sold in only six states.

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STUDY OF HUL’S BATH SOAP BRANDS IN RESPECT TO 4 P’S OF MARKETING MIX Product

1. LUX

Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Lux continues to be a favorite with generations of users for the experience of a sensuous and luxurious bath. Lux is 2nd grade soap having 70% TFM.

Prominent Variants  Lux almond  Lux orchid  Lux fruit  Lux saffron  Lux sandalwood  Lux rose  Lux international  Lux chocolate  Lux aromatic extracts  Lux oil and honey glow etc. Available in Package Lux available in the size: 45 gm, 75 gm, 100 gm, 150 gm, such as the International Lux is available in the size: 75 gm and 125 gm.

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2. Lifebuoy

Lifebuoy launched in red brick shape as carbolic red soap in the market. It is symbolized as health and hygiene. It has been repositioned in 2002 as family soap. Lifebuoy is 3rd grade soap having 65% TFM. It launched in many variants such as  Lifebuoy Active Red  Lifebuoy Active Orange  Lifebuoy International Plus  Lifebuoy International Gold  Lifebuoy Nature (Neem & Tulsi)

Available in Package Lifebuoy available in the size: 45 gm, 100 gm, 120 gm, 150 gm., it also available in the size of combo pack.

3. Hamam

Hamam bring alive ancient time tested skincare ritual that has been perfected over generation in convenient and contemporary formats. Hamam Soap Is lies in 3rd Grade having 68% TFM. The three variants of Hamam that are as follows:

 Hamam Sampurna Snaan  Hamam Scrub Bath  Hamam Abhyang Snaan Available in Package Hamam is available in the package size of 100gm and 125 gm.

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4. Breeze

Breeze has offered them ‗Beauty at an affordable price‘, make them look and feel beautiful. Breeze comes in four fragrances – rose, sandal, lime and Rajnigandha. All this at a very affordable price for the masses. Breeze is having 63% TFM. and lies in 3rd grade. Prominent variants  Lemon Twist  Rose Mallika  Sandal Sparsh  Rajni Gandha

Available in Package Breeze is available in the package of 45 gm, 100gm×3 and 125gm×4, which is comparatively salable at discount segment.

5. Rexona

Rexona was launched in India in 1947. It is one of the well known brands in soap market. Although the brand does not have any significant market share, it has loyal customer based. Rexona soap was positioned as natural skin care soap for a silky glowing skin. Rexona is the 2nd grade soap having 70% TFM. Available in Package Rexona soap is available in the package size of 100gm and 125gm.

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6. Liril

Liril has come to be synonymous with the freshness of limes, active energy and freedom of expression by its symbolic display of the uninhibited female form. Liril is lies in the 2nd grade having 72% TFM. Available in Package Liril Soap is available in the package size of 75 gm and 125gm.

7. Dove

Dove is known to be a keeper of promises and has given real products to women world over. To help you enjoy your own brand of beauty. Available in Package Dove is available in the package size of 50gm, 75gm. It is also available in the size of combo pack such as 100gm×3.

8. Pears

Pears is available in three variants - the traditional Pure & Gentle variant, a green variant for oil control and a blue variant for germ protection. The story of this popular soap was first created in 1789 by a young man called Andrew Pears. This is from whom it derived its name. Prominent Variants  Pears Pure & Gentle  Pears Germ Shield  Pears oil Control Available in Package A pear is available in the size of 45gm, 80gm and 120 gm.

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9. Moti Moti is special soap which has certain differentiation. The first differentiation point is shape. Unlike over soaps which come in cake form, Moti is round soap. Moti is vernacular term for pearl. So the soap is also in the shape of pearl. Moti is only soap of HUL which is having 76% TFM and lies in grade 1.

Prominent Variants  Moti Rose  Moti Sandal

Available in Package Moti is available in 2 sizes such as 68gm and 135 gm.

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Price If price is too high then a company may never sell a single item of it. If price is too low then one can lose money on every sale once all of costs of doing business are considered. Therefore the key is to price it in such way that it appears attractive to the customer as well as profitable to the company. HUL seems to have mastered this idea. Prices of HUL are considered the most competitive in Indian market. The main fact for this huge success story is the strategic pricing decision the company has adopted from time to time. HUL always gives value for money to their consumers. It is known for its competitive pricing. It has the advantage of quoting a reasonable price due to its economies of scale. HUL also can quote a very competitive price due to its superior technology and optimum utilization of inventory. It has the product range that meets the needs of all classes of consumers. It has the products that are categorized as premium and mass products. HUL matches its prices with the competitor who is operating in the same category. HUL also gives price offs on its products to reward consumers who are using it for a long time and also to attract new consumers. The price of the premium segment products is twice that of economy segment products. The economy and popular segments are 4/5ths of the entire soaps market.

Price segments of bath soaps

Segment Premium Popular Economy

Price Above Rs. 20 Rs 13 to Rs. 20 Rs. 8 to Rs. 12

Weight 75 gm 75 gm 75 gm

However, recently HUL has been forced to hike its price by one rupee, to Rs17 (for 100 gm), giving in to the pressures of inflation. This paves the way for competing soap makers like Godrej Consumer Products (GCPL) to take price increases.

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Price wise Segments of HUL’s Bath Soap Brand Premium (> 20 Rs.)

Popular (> 13 Rs. & < 20 Rs.)

Economy (< Rs. 12)

Brand

Price (Rs.) for 75 gm

Brand

Price (Rs.) for 75 gm

Brand

Price (Rs.) for 75 gm

Dove

33Rs.

Lux

18 Rs.

Breeze

10Rs

Pears

26Rs.

Liril

19Rs.

Lifebuoy

12Rs

Moti

23Rs.

Rexona

17Rs.

Hamam

18Rs.

The bath soaps are available in different sizes - 75 gms. 100 gms, 125 gms. and 150 gms. The popular sizes are 75 gms. and 100 gms.

Promotion The great Indian brand wagon started nearly four decades ago. Great brands sometimes outlast their ambassadors as proven by Lux which celebrated its 75th anniversary in India. The first ambassador, Leela Chitnis featured in a Lux advertisement which flagged off the Lux wagon. She gave way to a galaxy of stars which includes Madhubala, Nargis, Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai, Kareena Kapoor and Priyanka Chopra. The last frontier for most actors aspiring to stardom is becoming a Lux ambassador. The brand has outlasted much soap. From the beginning, Lux became a household name across the country.

All top actresses at their time were the brand ambassador of the Lux soap. They launched the Shahrukh Khan as a first male brand ambassador for the LUX and Abhishekh Bacchan was the second male brand ambassador for the Lux. They also promote the brand through sponsoring the shows such as ―LUX PERFECT BRIDE.‖, sales promotion schemes like ―LUX GOLD COIN OFFER‖, ―Buy 3 Get 1 Free‖. As a promotional activity window display is also run by the company.

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A List of Some offers During the Period (2009 - 2010) Brand

Size

Offers

Pears

75gm

5 Rs. OFF

Pears

75gm

Lux

75gm

Buy 1, get 2 sachets Sunsilk shampoo free worth Rs.5 Gold Coin Offer

Lux

75gm

Save 9 Rs.

Breeze

75gm,

Buy 2 Get 1 Free

Breeze

125 gm

Buy 2 Get 1 Free

Dove

100gm

Buy 3 Save Rs 10.

Lux Honey

75gm

Rs. 2 Off

Place HUL‘s distribution network is recognized as one of its key strengths -- that which helps reach out its products across the every retail outlets. The need for a strong distribution network is imperative, since HUL‘s corporate purpose is ―to meet the everyday needs of people everywhere.‖ At Hindustan Unilever Limited, distribution network is one of the key strengths that help them reach their products across the length and breadth of this vast country. It has 2000+ suppliers and associates 7,000 stockiest and direct coverage in over 1 million retail outlets across India. To meet the ever-changing needs of the consumer, HUL has set up a distribution network that ensures availability of all their products, in all outlets, at all times. This includes, maintaining favorable trade relations and providing innovative incentives to retailers. HUL boasts of placing a product across the country in less than 72 hrs. The first phase of the HUL distribution network had wholesalers placing bulk orders directly with the company. Today, the goods are transferred from the factory to the company warehouses and are sent to the distributor from there on a daily basis. From the distributor, the stock reaches the market through daily sales. Typically, these include the salesman registering the order of a retail outlet and delivering the goods the next day. In addition to the ongoing commitment to the traditional grocery trade, HUL is building a special relationship with the small but fast emerging modern trade. HUL's

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scale enables it to provide superior customer service including daily servicing, improving their range availability whilst reducing inventories. HUL is using the opportunity of interfacing more directly with consumers in this retail environment through specially designed communication and promotions. This is building traffic into the stores while yielding high growth for the business.

Availability Sample Size: 20 Retail Outlet 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1

Availability

LUX

Lifebuoy Hamam Breeze

Liril

Rexona

Pears

Dove

moti

Through above graphical representation it is clear that there is the higher availability of the bath soap products that shows the strong distribution network of HUL.

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Bathing Brands of HUL and Analysis of Competition LUX The name Lux means ‗light‘ in Latin; however the name was chosen for its play on the word ‗luxury‘. Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Lux continues to be a favorite with generations of users for the experience of a sensuous and luxurious bath. Lux is available in seven different variants – white glow, orchid, chocolate, aqua sparkle, almond delight, cool wave, international. All these seven different variants are available in 75g, 100g & 125g pack. Lux was first introduced as toilet soap in 1925. Produced by Lever Brothers, it arrived in the UK in 1928, offering people a chance to pamper themselves for a modest price. From the 1930s right through to the 1970s, Lux soap colours and packaging were altered several times to reflect fashion trends. In 1958 five colours made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap with their bathroom colours. Lux available in the size: 45 gm, 75 gm, 100 gm, 150 gm, such as the International Lux is available in the size: 75 gm and 125 gm.

Major Competitors HUL Brand

LUX

Company

Bath Soap Brand

Market Share

Godrej Consumer product Ltd.

Godrej No 1 Soap

Wipro Consumer Ltd

Santoor Soap

30%

Nirma Beauty soap

4%

Neema Soap

1%

ITC

Vivel Soap

5%

Anchor Health & Beauty Care

Dayna Soap

VVF

JO Soap

17%

Nirma

24%

18

8%

11%

Market Share Godrej No 1

17% 24%

Santoor Nirma Neema Vivel

11% 30%

Dayna Jo

8% 5%

Lux 4%

1%

Interpretation: Lux has the 2nd highest market share of 24% presided by the Santoor having the highest market share of 30% and followed by the Godrej No 1 having 3rd highest market share in Wardha Market.

LIFEBUOY Making a billion Indians feel safe and secure by meeting their health and hygiene needs is the mission of Lifebuoy. The world‘s largest selling soap offers a compelling health benefit to the entire family. Launched in 1895, Lifebuoy, for over 100 years, has been synonymous with health and value. Lifebuoy is now milled bath soap with a new health fragrance and a contemporary shape. The new milled formulation offers a significantly superior bathing experience and skin feel. Life-buoy comes in new curved shape after 109 years. Lab-tested new formulation offers 100% better germ protection than other ordinary soaps. Brick shape, to offer an easy grip and a modern look. The new curved shape is the second major change in Lifebuoy's history, after the re-launch of 2002. In 2002, after 107 years of its existence as a carbolic soap, Lifebuoy was re-launched as a milled toilet soap offering better germ protection. Lifebuoy soap is available in five variants total, gold care, nature, and multani mitti & orange. All the five variants are available in the new curved Shape and in new formulation. The new Lifebuoy is targeted at today's sharp housewife with a more inclusive "family health protection for my family and me" positioning.

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Major Competitors HUL Brand

Lifebuoy 49%

Bath Soap Brand

Company

Market Share

Rackitt Benckiser (India) ltd.

Dettol Soap

37%

Jonson & Jonson

Savlon Soap

14%

Market Share

37% Dettol 49%

Savlon Lifebuoy

14%

Interpretation: In the carbolic range of bath soap market the Lifebuoy plays leading role with the highest market share of 49% followed by the Dettol with 37% market share.

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HAMAM Hamam brings alive the wisdom behind time-less skincare rituals in convenient and contemporary formats.Launched in 1931 as a ‗mild, family soap‘, Hamam soon drew a large natural following long before it was trendy or fashionable. Perhaps the only Indian-made natural soap at the time, Hamam was embraced by mothers and doctors alike, for its purity and safety on skin. Only Hamam brings alive ancient time tested skincare ritual that has been perfected over generation in convenient and contemporary formats. The three variants of Hamam i.e. Smpurna Snaan, Hamam Scrub Bath and Abhyanga Snaan embody traditional skincare practices. Hamam can best leverage this due to its heritage and natural ingredient legitimacy to claim purification of the body and spirit.

Major Competitors

Bath Soap Brand

Company

HUL Brand

Dorcas Market Makers Hamam 43%

Hankel Wipro Consumer Ltd.

Market Share

Medimix Ayurvedic Soap

44%

Margo Soap

9%

Chandrika Soap

4%

Market share

Medimix 43%

44%

Margo Chandrika Hamam

9% 4%

Interpretation: Hamam is playing the second highest market leader with the market share of 43%, presided by the Medimix Ayurvedic Soap with the market share of 44% and followed by the Margo Neem with the market share of 9%.

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BREEZE Breeze is the product of Hindustan Unilever Limited. Breeze was launched in India By keeping in mind the middle class family of India. This soap was launched in different shapes and size to attract all the segments of the consumers. Hindustan Unilever offers Breeze. Breeze scent magic is the soap that fulfils de aspirations of women of rural India. Breeze has offered them ‗Beauty at an affordable price‘, make them look and feel beautiful. Breeze comes in four fragrances – rose, sandal, lime and Rajnigandha. All this at a very affordable price for the masses.

Major Competitors

Company

Bath Soap Brand

Godrej Consumer product Ltd.

Godrej No 1 Soap

Wipro Consumer Ltd

Santoor Soap

33%

Nirma Beauty soap

5%

Neema Soap

1%

ITC

Vivel Soap

5%

Anchor Health & Beauty Care

Dayna Soap

VVF

JO Soap

HUL Brand

Market Share 19%

Nirma

Breeze 16%

9%

12%

Market Share Godrej No 1 16%

19%

Santoor Nirma Neema

12%

Vivel 9%

33%

Dayna Jo

5% 5%

Breeze

1%

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Interpretation: In the discount range of bath soap Breeze has achieved the 3rd highest market leading position with the market share of 16%, presided by the Santoor and Godrej No 1 having market share of 33% and 19% respectively.

LIRIL Over time, Liril has come to be synonymous with the freshness of limes, active energy and freedom of expression by its symbolic display of the uninhibited female form. Through history now, Liril has been the choice of many for the most invigorating and energizing experience in bath. Liril was launched in 1977. Its 30 years old. Liril has been a trendsetter over times. The soap & its advertising have been considered to be revolutionary. The first TV ad dates back to 1985. The Liril expressions, associations & the Liril ads are recalled even till now.

Major Competitors HUL Brand

Liril 35%

Bath Soap Brand

Company

Market Share

Godrej Consumer products Ltd.

Cinthol Soap

43%

Rackitt Benckiser (India) ltd.

Dettol Cool Soap

22%

Market Share

35%

43%

Cinthol Dettol Cool Liril

22%

Interpretation: In the freshness segment of bath soaps, Liril is playing 2nd highest market leader role with the market share of 35% presided by the Cinthol having 43% market share and followed by the Dettol Cool with the market share of 22%.

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PEARS Pears launched in India in 1902, exuberates a long heritage of purity and has a pristine quality. With the goodness of glycerin & natural oils, Pears is gentle enough, even for a baby‘s skin and hence recommended by doctors and pediatricians worldwide. It is so pure that you can actually see through it. Pears is available in three variants - the traditional Pure & Gentle variant, a green variant for oil control and a blue variant for germ protection. The story of this popular soap was first created in 1789 by a young man called Andrew Pears. This is from whom it derived its name.

Major Competitors

Pears 75%

Bath Soap Brand

Company

HUL Brand

Dorcas market Makers Wipro Consumer Ltd.

Market Share

Medimix Glycerin Soap

14%

Santoor Glycerin Soap

11%

Market Share 14%

11%

Medimix GL Santoor GL Pears

75%

Interpretation: In the glycerin soap segment Pears is the market leader with the market share of 75% followed by the Medimix Glycerin and the Santoor Glycerin with the market share 14% and 11% respectively. 24

MOTI Moti is India‘s premium brand of soaps during the seventies. Now there is no trace of this brand. Moti originally was a brand of Tata Oil Mills Company (TOMCO). In 1993, TOMCO merged with HLL. Moti is special soap which has certain differentiation. The first differentiation point is shape. Unlike over soaps which come in cake form, Moti is round soap. Moti is vernacular term for pearl. So the soap is also in the shape of pearl. Uniqueness is the size of the soap. Moti is a big soap. Often one get bored of the soap and it never quit finish fast. Moti comes in popular fragrances like Rose (Gulab), Sandal (Chandan). Moti is promoted as premium soap. The soap is expensive and during the eighties, the soap is priced around Rs 25.

Major Competitors

Bath Soap Brand

Company

HUL Brand

Mysore Sandal Moti 58%

Dorcas Market Makers

Market Share

Mysore Sandal Soap

25%

Medimix Sandal Soap

17%

Market Share

25%

Mysore Sandal Soap Medimix Sandal Soap

58%

Moti

17%

Interpretation: In the market segment of premium soaps the Moti Soap is playing the role of market leader with the market share of 58% presided by the Mysore Sandal Soap with the market share of 25% having the good quality of bath Soap in premium range.

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DOVE Since 1993, Indian women have relied on Dove for beautiful skin. Dove is known to be a keeper of promises and has given real products to women world over. To help you enjoy your own brand of beauty. Dove is growing very rapidly year after year. This yr, we took a vow to make women experience the ‗real‘ Dove difference. The face test campaign demonstrates the real proof of its superiority by using face as the torture test. Thousands of women from around the country put their soap, and dove to the test. And they all ended with the same answer – dove made their skin soft.

Major Competitors HUL Brand Dove 84%

Bath Soap Brand

Company ITC

Fiama De Will Soap

Market Share 16%

Market share 16%

Fiama De Will Dove

84%

Interpretation: In the segment of milk soap Dove has achieved the highest market share i.e. 84% followed by the new entrance in the market i.e. Fiama De Will having the market share of 16%.

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Market Share of HUL’s Bath Soap Products in Wardha City: Company

Market Share

Hindustan Unilever Ltd.

45%

Godrej Consumer product Ltd.

11%

Wipro Consumer Ltd

13%

Nirma

3%

Rackitt Benckiser (India) ltd. ITC

6% 3%

Anchor Health & Beauty Care

3%

Hankel India Ltd

1%

Jonson and Jonson‘s

2%

VVF

5%

Dorcas Market Makers

7%

Mhaysor Sandal Soap

1%

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HUL's Market Share of Bath Soap Products In Wardha City Hindustan Unilever Ltd Godrej Consumer Products Ltd. Wipro Consumer Ltd. Nirma Rackitt Benchiser India Ltd. ITC Anchor Health & Beauty Care Ltd. Hankel India Ltd. Jonson & Jonson VVF 1% Dorcas Market Makers Maysor Sandal soap 7% 2%

5%

1% 3% 3%

45%

6% 3%

13%

11%

Hindustan Unilever Ltd is the highly penetrated company in the bath soap market having the highest market share i.e. 45%, followed by the Wipro Consumers Ltd and the Godrage consumer Product Ltd having market share of 13% and 11% respectively.

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Need of Study The term consumer behavior refers the behavior that consumers display in the searching for purchasing, using, evaluating and disposing of product and services that they expect, will satisfy their needs. Consumer is highly complex individuals, subject to a variety of psychological needs and buying behavior. Need and priorities of the different consumers segment differ effectively. This project has been undertaken to understand the consumer behavior towards different bathing soaps which are of different Brands. There is a wide range of use of bathing soaps to take bath everywhere. How many bathing soaps are in the market especially in non urban area and up to what limit popular product of bathing soaps has been able to compete to the local product in terms of QUALITY, QWANTITY…or INSPIRATION FACTOR to accept buying decision. How the People use a particular bathing soaps and how they show their attitude towards different bathing soaps and why?

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Objectives of Study 1. To know about various brands of bath soaps of Hindustan Unilever Ltd. & their survival in the market. 2. To study the competition held in the bath soap market for Hindustan Lever Ltd. 3. To know about the customers perception while purchasing the bath soap product. 4. To determine the demand of customers. 5. To know about the performance of popular brands of different companies in the market.

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Hypothesis of Study a. Customers prefer the bath soap product on the basis of the advertisement and the promotional activities of the companies.

b. Buyers choose the brands on the basis of their income and choice.

c. Hindustan Unilever Ltd. is the highly penetrated company in bath soap brands having highest market share.

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Research Methodology A research methodology is the arrangement of condition for collection and analysis of data in a manner that to, combine relevance to research purpose with economy in procedure.

Research Design: Research Design is conceptual structure within which research is conducted. It constitutes the blue print of collection, measurement and analysis of data. Research design is needed because it facilitates the smooth sailing of various research operations, thereby making research as efficient as possible yielding maximum information with minimum time, effort and money. Research Design stands for advance planning of methods to be used for collecting relevant data and techniques to be used in the analysis. The design helps researcher to organize his ideas whereby it will be possible for him to look for flaws and inadequacies. Research design is purely and simply the framework plans for study that guides the collection and analysis of data. There are three major types of research design, i.e., exploratory research design, descriptive research design and experimental research design. This study is basically exploratory analysis type.

Exploratory research The idea gets deeper insight into competition in the bath soap market and to get buying behavior of consumers. In order to address above-mentioned objectives (I) study of secondary sources was carried out from internet, books, and Magazines (II) structured questionnaire was designed to seek consumer responses.

Descriptive research The data is analyzed, which was collected.

Target population The target population for ―A Comprehensive Study of Bath Soap Market and Analysis of Buyer Behavior to Purchase the Bath Soap Product – With Special Reference to Hindustan Unilever Ltd.‖ is - Consumers, from different economical & demographical background, which are purchasing & using bath soaps.

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Collection of data The data has collected from primary & secondary sources.

Secondary Data The main aim of the project is to analyze the competition in occupying market shares of various bath soap brands as compare to the brand of the HUL and the consumer‘s buying behavior of bath soap products. Therefore it is necessary to get considerable information about the competing brands. For this I have gone through a lot of secondary data. A lot of issues of Business Today, Economic Times were consulted. Books, magazines, internet, news papers, journals, company information both internal and external by company magazines, data and bulletins related to the project topic.

Primary data A survey was conducted through structured questionnaire. The study was done among consumers who are using bath soap and conducted personal interview for collecting the required information. It is original data, first hand and for the specific purpose of the research project. For this project, I have used the following common research instruments. 1. Questionnaire: Questionnaire development is the critical part of primary data collection job. For this I have prepared a questionnaire in such a way that it is able to collect all relevant information regarding the project. In this questionnaire, I have used mostly close-ended questions that are easier to be answered by respondents (consumers) and also easier for interpretation and tabulation and some open-ended question to take the opinion of the respondents in their own words. The questions were asked to the consumers covering perception towards their purchase, price of the product, purpose for using the product, characteristic of the product, brand image, effectiveness of the advertisements, sales promotional activities, overall opinion about the product, etc. For collecting the answers from the above questionnaire, I have used the following common methods. 2. Interview: It is the most common method for contacting consumers and collecting primary data. For this project I have used following type of interview:a. Personal interview: It is the most extensively used method. It enables better control of the sample and ensures answers from the respondents. It also provides for a tactful approach to the respondent since it is based on a person-to-person talk. But this method is generally more expensive and time consuming.

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I have used this technique to get the information of other competitor‘s brands of bath soap from retailers such as their availability in the shop and their market share in Wardha city. For this project each interview was taking 15 to 20 minutes to complete. Interview was also delayed due to un-availability of respondent in shops. b. Telephonic Interview Telephonic interview is conducted for collecting the company‘s information from the company‘s Sales Executive who is handling the sales of Wardha city or who has known about the bath soap brands of HUL of the wardha city. Company person was always on tour so it was not possible to conduct the personal interview with them. So all the information related to the company and bath soap brands is collected by the telephonic interview.

Sampling Sample unit Consumers using the bath soap.

Sample plan The selection of the samples is done following the two sampling techniques, which are: - Simple random sampling - Convenience sampling

Sample Location: Consumers of bath soap in Wardha city.

Sample size Customers-100 (Both male & female) Retailers – 20 (All type of retail stores)

Scope of Study: The geographical scope of the study was restricted to the Wardha city due to time and resource constraints. The study being exploratory in nature, the sample size was restricted to 100 consumers and 20 retailers. In this study only bath soaps segment and the customers of bath soaps are considered.

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Buyer Behavior The aim of marketing is to meet and satisfy target customers‘ needs and wants. The field of consumer behavior studies how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. Understanding consumer behavior is never simple, because customers may say one thing but do another. They may not be in touch with their deeper motivations, and they may respond to influences and change their minds at the last minute. Still, all marketers can profit from understanding how and why consumers buy. For example, Whirlpool‘s staffs anthropologists go into people‘s homes, observe how they use appliances, and talk with household members. Whirlpool has found that in busy families, women are not the only ones doing the laundry. Knowing this, the company‘s engineers developed color-coded washer and dryer controls to make it easier for kids and men to pitch in. In fact, not understanding your customer‘s motivations, needs, and preferences can lead to major mistakes. This is what happened when Kodak introduced its Advanta camera—a costly bust. The company proudly touted it as a high-tech product, but the marketplace was dominated by middle-aged baby-boomers. In midlife, fancy new technology generally loses its appeal, and simplicity begins to edge out complexity in consumer preferences, so Advanta sales did not skyrocket. Such examples show why successful marketers use both rigorous scientific procedures and more intuitive methods to study customers and uncover clues for developing new products, product features, prices, channels, messages, and other marketing-mix elements. This project explores individual consumers‘ buying dynamics.

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Factors Influencing Buyer Behavior The starting point for understanding consumer buying behavior is the stimulus response model. As this model shows, both marketing and environmental stimuli enter the buyer‘s consciousness. In turn, the buyer‘s characteristics and decision process lead to certain purchase decisions. The marketer‘s task is to understand what happens in the buyer‘s consciousness between the arrival of outside stimuli and the buyer‘s purchase decisions. As this model indicates, a consumer‘s buying behavior is influenced by cultural, social, personal, and psychological factors.

1. Cultural Factors Influencing Buyer Behavior Culture, subculture, and social class are particularly important influences on consumer buying behavior.  Culture. : Culture is the most fundamental determinant of a person‘s wants and behavior. The set of basic values, beliefs, norms, and associated behaviors that are learned by a member of society.

 Subculture: Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Subcultures include nationalities, religions, tribal groups, and geographic regions. Many subcultures make up important market segments, leading marketers to tailor products and marketing programs to their needs.  Social class.: Social classes are relatively homogeneous and enduring divisions in a society. They are hierarchically ordered and their members share similar values, interests, and behavior. Social classes reflect income as well as occupation, education, and other indicators. Those within each social class tend to behave more alike than do persons from different social classes. Also, within the culture, persons are perceived as occupying inferior or superior positions according to social class. Still, individuals can move from one social class to another—up or down—during their lifetime. Because social classes often show distinct product and brand preferences, some marketers focus their efforts on one social class.

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2. Social Factors Influencing Buyer Behavior In addition to cultural factors, a consumer‘s behavior is influenced by such social factors as reference groups, family, and social roles and statuses.  Reference Groups: Reference groups consist of all of the groups that have a direct (face-to-face) or indirect influence on a person‘s attitudes or behavior. Groups that have a direct influence on a person are called membership groups. Some primary membership groups are family, friends, neighbors, and co-workers, with whom individuals interact fairly continuously and informally. Secondary groups, such as professional and trade-union groups, tend to be more formal and require less continuous interaction. Reference groups expose people to new behaviors and lifestyles, influence attitudes and self-concept, and create pressures for conformity that may affect product and brand choices. People are also influenced by groups to which they do not belong. Aspirational groups are those the person hopes to join; dissociative groups are those whose values or behavior an individual rejects. Although marketers try to identify target customers‘ reference groups, the level of reference-group influence varies among products and brands. Manufacturers of products and brands with strong group influence must reach and influence the opinion leaders in these reference groups. An opinion leader is the person in informal product related communications who offers advice or information about a product or product category. Marketers try to reach opinion leaders by identifying demographic and psychographic characteristics associated with opinion leadership, identifying the preferred media of opinion leaders, and directing messages at the opinion leaders. For example, the hottest trends in teenage music and fashion start in America‘s inner cities, and then spread to youth in the suburbs. As a result, clothing companies that target teens carefully monitor the style and behavior of urban opinion leaders.  Family: The family is the most important consumer-buying organization in society, and it has been researched extensively. The family of orientation consists of one‘s parents and siblings. From parents, a person acquires an orientation toward religion, politics, and economics as well as a sense of personal ambition, self-worth, and love. A more direct influence on the everyday buying behavior of adults is the family of procreation—namely, one‘s spouse and children. Marketers are interested in the roles and relative influence of the husband, wife, and children in the purchase of a large variety of products and services. These roles vary widely in different cultures and social classes. Today, traditional household purchasing patterns are changing, with babyboomer husbands and wives shopping jointly for products traditionally thought to be under the separate control of one spouse or the other. For this reason, marketers of products traditionally purchased by one spouse may need to start thinking of the other as a possible purchaser.

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 Roles and Statuses: A person participates in many groups, such as family, clubs, or organizations. The person‘s position in each group can be defined in terms of role and status. A role consists of the activities that a person is expected to perform. Each role carries a status. A Supreme Court justice has more status than a sales manager, and a sales manager has more status than an administrative assistant. In general, people choose products that communicate their role and status in society. Thus, company presidents often drive Mercedes, wear expensive suits, and drink Chivas Regal scotch. Savvy marketers are aware of the status symbol potential of products and brands.

3. Personal Factors Influencing Buyer Behavior Cultural and social factors are just two of the four major factors that influence consumer buying behavior. The third factor is personal characteristics, including the buyer‘s age, stage in the life cycle, occupation, economic circumstances, lifestyle, personality, and self-concept.  Age and Stage in the Life Cycle: People buy different goods and services over a lifetime. They eat baby food in the early years, most foods in the growing and mature years, and special diets in the later years. Taste in clothes, furniture, and recreation is also age-related, which is why smart marketers are attentive to the influence of age. Similarly, consumption is shaped by the family life cycle. The traditional family life cycle covers stages in adult lives, starting with independence from parents and continuing into marriage, child-rearing, empty-nest years, retirement, and later life. Marketers often choose a specific group from this traditional life-cycle as their target market. Yet target households are not always family based: There may be single households. Some recent research has identified psychological life-cycle stages. Adults experience certain ―passages‖ or ―transformations‖ as they go through life. Leading marketers pay close attention to changing life circumstances— divorce, widowhood, remarriage—and their effect on consumption behavior.  Occupation and Economic Circumstances: Occupation also influences a person‘s consumption pattern. A blue-collar worker will buy work clothes and lunchboxes, while a company president will buy expensive suits and a country club membership. For this reason, marketers should identify the occupational groups that are more interested in their products and services, and consider specializing their products for certain occupations. In addition, product choice is greatly affected by a consumer‘s economic circumstances: spendable income (level, stability, and time pattern), savings and assets (including the percentage that is liquid), debts, borrowing power, and attitude toward spending versus saving. Thus, marketers of incomesensitive goods must track trends in personal income, savings, and interest

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rates. If a recession is likely, marketers can redesign, reposition, and reprise their products to offer more value to target customers.  Lifestyle: People from the same subculture, social class, and occupation may actually lead quite different lifestyles. A lifestyle is the person‘s pattern of living in the world as expressed in activities, interests, and opinions. Lifestyle portrays the ―whole person‖ interacting with his or her environment. Successful marketers search for relationships between their products and lifestyle groups. For example, a computer manufacturer might find that most computer buyers are achievement-oriented. The marketer may then aim its brand more clearly at the achiever lifestyle.  Personality and Self-Concept: Each person has a distinct personality that influences buying behavior. Personality refers to the distinguishing psychological characteristics that lead to relatively consistent and enduring responses to environment. Personality is usually described in terms of such traits as self-confidence, dominance, autonomy, deference, sociability, defensiveness, and adaptability. Personality can be useful in analyzing consumer behavior, provided that personality types can be classified accurately and that strong correlations exist between certain personality types and product or brand choices. For example, a computer company might discover that many prospects show high selfconfidence, dominance, and autonomy, suggesting that computer ads should appeal to these traits. Self-concept (or self-image) is related to personality. Marketers often try to develop brand images that match the target market‘s self-image. Yet it is possible that a person‘s actual self-concept (how he/she views himself/herself) differs from his/her ideal self-concept (how he/she would like to view himself/herself) and from his/her others-self-concept (how he/she thinks others see him/her). Which self will he/she try to satisfy in making a purchase? Because it is difficult to answer this question, self-concept theory has had a mixed record of success in predicting consumer responses to brand images.

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4. Psychological Factors Influencing Buyer Behavior Psychological factors are the fourth major influence on consumer buying behavior (in addition to cultural, social, and personal factors). In general, a person‘s buying choices are influenced by the psychological factors of motivation, perception, learning, beliefs, and attitudes.  Motivation: A person has many needs at any given time. Some needs are biogenic; they arise from physiological states of tension such as hunger, thirst, discomfort. Other needs are psychogenic; they arise from psychological states of tension such as the need for recognition, esteem, or belonging. A need becomes a motive when it is aroused to a sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the person to act.  Perception: A motivated person is ready to act, yet how that person actually acts is influenced by his or her perception of the situation. Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. Perception depends not only on physical stimuli, but also on the stimuli‘s relation to the surrounding field and on conditions within the individual. The key word is individual. Individuals can have different perceptions of the same object because of three perceptual processes: selective attention, selective distortion, and selective retention.  Selective attention: People are exposed to many daily stimuli such as ads; most of these stimuli are screened out—a process called selective attention. The end result is that marketers have to work hard to attract consumers‘ attention. Through research, marketers have learned that people are more likely to notice stimuli that relate to a current need, which is why car shoppers notice car ads but not appliance ads. Furthermore, people are more likely to notice stimuli that they anticipate—such as foods being promoted on a food Web site. And people are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli, such as a banner ad offering Rs.50 (on just Rs. 42) off a product‘s list price.  Selective distortion: Even noticed stimuli do not always come across the way that marketers intend. Selective distortion is the tendency to twist information into personal meanings and interpret information in a way that fits our preconceptions. Unfortunately, marketers can do little about selective distortion.  Selective retention: People forget much that they learn but tend to retain information that supports their attitudes and beliefs. Because of selective retention, we are likely to remember good points mentioned about a product we like and forget good points mentioned about competing products. Selective retention explains why marketers use drama and repetition in messages to target audiences.

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 Learning: When people act, they learn. Learning involves changes in an individual‘s behavior that arise from experience. Most human behavior is learned. Theorists believe that learning is produced through the interplay of drives, stimuli, cues, responses, and reinforcement. A drive is a strong internal stimulus that impels action. Cues are minor stimuli that determine when, where, and how a person responds. Suppose you buy an IBM computer. If your experience is rewarding, your response to computers and IBM will be positively reinforced. Later, when you want to buy a printer, you may assume that because IBM makes good computers, it also makes good printers. You have now generalized your response to similar stimuli. A countertendency to generalization is discrimination, in which the person learns to recognize differences in sets of similar stimuli and adjust responses accordingly. Applying learning theory, marketers can build up demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement.  Beliefs and Attitudes: Through doing and learning, people acquire beliefs and attitudes that, in turn, influence buying behavior. A belief is a descriptive thought that a person holds about something. Beliefs may be based on knowledge, opinion, or faith, and they may or may not carry an emotional charge. Of course, manufacturers are very interested in the beliefs that people have about their products and services. These beliefs make up product and brand images, and people act on their images. If some beliefs are wrong and inhibit purchase, the manufacturer will want to launch a campaign to correct these beliefs. Particularly important to global marketers is the fact that buyers often hold distinct beliefs about brands or products based on their country of origin. Studies have found, for example, that the impact of country of origin varies with the type of product. Consumers want to know where a car was made but not where lubricating oil came from. In addition, attitudes toward country of origin can change over time; Japan, for instance, had a poor quality image before World War II. A company has several options when its products‘ place of origin turns off consumers. The company can consider co-production with a foreign company that has a better name. Another alternative is to hire a well-known celebrity to endorse the product or the company can adopt a strategy to achieve worldclass quality in the local industry.

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THE CONSUMER BUYING DECISION PROCESS Marketers have to go beyond the various influences on buyers and develop an in-depth understanding of how consumers actually make their buying decisions. Specifically, marketers must identify who makes the buying decision, the types of buying decisions, and the stages in the buying process.

Buying Roles Marketers can identify the buyer for many products easily. In the India, men normally choose their shaving equipment, and women choose their cosmetics. Still, marketers must be careful, because buying roles can change. After the giant British chemical firm ICI discovered that women made 60 percent of the decisions on the brand of household paint, it began advertising its deluxe brand to women. We can distinguish five roles that people might play in a buying decision. An initiator first suggests the idea of buying the product or service. An influence is the person whose view or advice influences the decision. A decider actually decides whether to buy, what to buy, how to buy, or where to buy. A buyer makes the actual purchase, while a user consumes or uses the product or service.

Buying Behavior Marketers also need to be aware that consumer decision making varies with the type of buying decision. The decisions to buy toothpaste, a tennis racket, a personal computer, and a new car are all very different. In general, complex and expensive purchases are likely to involve more buyer deliberation and more participants.  Complex buying behavior: applies to high-involvement products such as personal computers. Buyers may not know what attributes to consider in these products, so they do research. Knowing this, marketers can help educate buyers about product attributes, differentiate and describe the brand‘s features, and motivate store personnel and others to influence the final brand choice.  Dissonance-reducing buyer behavior: applies to high-involvement products such as carpeting. Carpeting is expensive and self-expressive, yet the buyer may consider most brands in a given price range to be the same. After buying, the consumer might experience dissonance after noticing certain disquieting features or hearing favorable things about other brands. Marketers should therefore supply beliefs and evaluations that help consumers feel good about their brand choices.  Habitual buying behavior: applies to low-involvement products such as salt. Consumers keep buying the same brand out of habit, not due to strong brand loyalty, because they are passive recipients of information conveyed by advertising. Ad repetition creates brand familiarity rather than brand

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conviction. Marketers of such products can use price and sales promotions to entice new customers to try their products.  Variety-seeking buying behavior: applies to low-involvement products such as soaps. In this category, consumers switch brands often because they want more variety. The market leader will therefore try to encourage habitual buying behavior by dominating the shelf space, keeping shelves stocked, and running frequent reminder ads. Challenger firms will encourage variety seeking by offering lower prices, coupons, free samples, and ads that offer reasons for trying something new.

The Stages of the Buying Decision Process Consumer buying decision process is the processes undertaken by consumer in regard to a potential market transaction before, during and after the purchase of a product or service.

Consumer decision making process generally involves five stages:

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchase Behavior

1. Need Recognition Purchase decision making process begins when a buyer becomes aware of an unsatisfied need or problem. This is the vital stage in buying decision process, because without recognizing the need or want, an individual would not seek to buy goods or service. There are several situations that can cause problem recognition, these include:    

Non availability of particular brand Dissatisfaction with Quality Price Changes Change in Financial Situation

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2. Information Search After the consumer has recognized the need, he / she will try to find the means to solve that need. First he will recall how he used to solve such kind of a problem in the past, this is called nominal decision making. Secondly, a consumer will try to solve the problem by asking a friend or goes to the market to seek advice for which product will best serve his need, this is called limited decision making. Sources of information include:  Personal sources  Commercial Sources  Public sources  Personal experience

3. Evaluation of Alternatives Consumers‘ evaluates criteria refer to various dimension; features, characteristics and benefits that a consumer desires to solve a certain problem. Product features and its benefit is what influence consumer to prefer that particular product. The consumer will decide which product to buy from a set of alternative products depending on each unique feature that the product offers and the benefit he / she can get out of that feature.

Total Set

Awarness Set

Consideration Set

Choice Set

Decision

Lux

Lux

Lux

Lux

Lux

Santooe

Santooe

Santoor

Santoor

Godrej No. 1

Godrej No.1

Godreg No. 1

Nirma

Nirma

Dyana

4. Purchase Decision This stage involves selection of brand and the retail outlet to purchase such a product. Retail outlet image and its location are important. Consumer usually prefers a nearby retail outlet for minor shopping and they can willingly go to a far away store when they purchase items which are of higher values and which involve higher sensitive purchase decision. After selecting where to buy and what to buy, the consumer completes the final step of transaction by either cash or credit.

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5. Post-purchase Behavior Consumer favorable post-purchase evaluation leads to satisfaction. Satisfaction with the purchase is basically a function of the initial performance level expectation and perceived performance relative to those expectations. Consumer tends to evaluate their wisdom on the purchase of that particular product. This can result to consumer experiencing post purchase dissatisfaction. If the consumer‘s perceived performance level is below expectation and fail to meet satisfaction this will eventually cause dissatisfaction, and so the brand and/ or the outlet will not be considered by the consumer in the future purchases. This might cause the consumer to initiate complaint behavior and spread negative word-of-mouth concerning that particular product.

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Data Analysis and Interpretation A. Demographic Samples: 1. Gender Gender Male Female Total

No of Samples 80 20 100

Gender (Sample Size 100)

20%

Male Female

80%

Interpretation: In total sample size of 100, there was 80 male and 20 female. So sample has contribution of both male and female respondent.

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2. Age Group Age Group 0 to 20 20 to 30 30 to 40 40 to 80 Total

No of Samples 05 70 10 15 100

80 70 60 50 40

Age Group

70 30 20 10 0

10

5 Up to 20

20 to 30

30 to 40

15 40 to 80

Interpretation: Most of the respondent lie in the age bracket of 20 to 30 i.e. 70. Further 40 to 80 years i.e. 15, 30 to 40 years i.e. 10 and up to 20 years i.e. 5.

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3. Marital Status Marital status Married Unmarried Total

No. of Samples 40 60 100

Marital Status

40% Married Unmarried 60%

Interpretation From the total sample size of 100 there was 40 respondents are married and 60 respondents are unmarried.

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4. Family Members No. of Family Members 1 2 3 4 5 or more Total

No. of Respondents 2 2 17 34 45 100

Family Members 2%

2%

17% 1 2

45%

3 4 5 or More 34%

Interpretation: From the above sample size there are 45% people in the family with 5 or more persons and 34% and 17% people in the family with 4 and 3 persons respectively and 2 % people in the family with each 1 and 2 persons.

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5. Educational Background Educational Background 10th 12th Graduation Post graduation & Above Total

No. of Samples 1 5 52 42 100

Educational Background 1% 5%

10 th

42%

12 th Graduation 52%

Post graduation

Interpretation Most of respondents are quit educated as pie chart is showing 52% respondents are graduate, 42% are Post graduate, 5% are 12th and only 1% is 10th pass.

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6. Occupation Occupation Government service Executive Self Employee Student Others Total

No. of samples 29 11 11 42 7 100

Occupation 7% 29%

Govt. Service Executive Self Employee

42%

Students 11%

Oher

11%

Interpretation From the total sample size of 100, 42% are students, 29% are government employee, 11% are executive, again 11% are self employed, and 7% are lies in other occupations.

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7. Income Group Income Group 0 – 1 Lakh 1 – 2 Lakh 2 – 3 Lakh 3 – 4 Lakh Above 4 Lakh Total

No. of Samples 14 25 12 3 2 56

Income Group 30 25 20 15 25 10 14

12

5 0 0 - 1 Lakh

1 - 2 Lakh

2 - 3 Lakh

3

2

3 - 4 Lakh

Above 4 Lakh

Interpretation As it is very much well known that people are quit reluctant to tell their family income so the above figures are not exact but representative, so according to that the 25% people between 1 – 2 lakh income group, further below 1 Lakh there are 14 people, between 2 – 3 Lakh there are 12% people, between 3 – 4 Lakh there are 3% people and above 4 Lakh there are only 2% people. Rests of the 46% respondents are dependent. They may be students and house wives.

52

B. Usage Usage of Bath Soap Yes No Total

No. of Samples 99 1 100

Usage of Bath Soap 1%

Yes No

99%

Interpretation: From the above pie-chart it is clear that In Wardha 99% respondents are users of soaps and 1% people are not using the bath soap with whom I asked questions.

53

C. Brands People Use Brands Lux Lifebouy Breeze Liril Hamam Pears Dove Others Total

No. of Samples 27 8 13 7 2 16 14 12 99

Brands 30 25 20 15

Brands

27

10 16

13

5

7

14

12

7 2

0 Lux

Lifebuoy

Breeze

Liril

Hamam

Pears

Dove

Others

Interpretation: It is found that most of the people like LUX i.e.27%, then the demand of Pears is 16%, Dove is 14%, Breeze is 13%, Liril and Lifebuoy are 7% and Hamam is 2%. Rest of the people use other soaps like Breeze, Liril, and Margo. Rest of the people use other soaps like Medimix, Dettol, and Dayna etc.

54

1. Brands People Use – Age Group Cross Tabulation Age Group Less Brands 20 to 30 to 40 & than 30 40 above 20

Total

27 2.02% 23.23% 1.01% 1.01% % 27.27% Respondents 0 8 0 0 8 Lifebuoy 0 8.08% 0 0 % 8.08% Respondents 0 5 8 0 13 Breeze 0 5.05% 8.08% 0 % 13.13% Respondents 0 2 0 5 7 Liril 0 2.02% 0 5.05% % 7.07% Respondents 0 2 0 0 2 Hamam 0 2.02% 0 0 % 2.02% Respondents 0 12 0 4 16 Pears 0 12.12% 0 4.04% % 16.16% Respondents 2 12 0 0 14 Dove 2.02% 12.12% 0 0 % 14.14% Respondents 1 6 1 4 12 Other 1.01% 6.06% 1.01% 4.04% % 12.12% Respondents 5 70 10 14 99 Total % 5.05% 70.7% 10.1% 14.14% 100% Lux

Respondents

2

23

1

1

25 20 Less than 20 years

15

20 to 30 years 10

30 to 40 years 40 & above

5 0 Lux

Lifebuoy Breeze

liril

Hamam

Pears

Dove

Others

Interpretation: Lux is highly preferable brand by the age group 20 to 30 years followed by both Pears and Dove. Breeze is highly preferable brand by the age group 30 to 40 years followed by the other soaps and Lux. Liril is mostly used by the age group 40 & above followed by the Pears and other soaps and Lux is mostly used by the age group less than 20 years respectively.

55

2. Brands People Use – Occupation Cross Tabulation Brands

Lux Lifebuoy Breeze Liril Hamam Pears Dove Other Total

Occupation Executiv Self e Employee 3 1

Total

Respondents

Govt Employee 10

%

10.1%

3.03%

1.01%

13.13%

0

Respondents

3

2

1

2

0

%

3.03%

2.02%

1.01%

2.02%

0

Respondents

4

0

4

5

0

%

4.04%

0

4.04%

5.05%

0

Respondents

3

0

0

2

2

%

3.03%

0

0

2.02%

2.02%

Respondents

0

0

0

2

0

%

0

0

0

2.02%

0

Respondents

4

2

2

5

3

%

4.04%

2.02%

2.02%

5.05%

3.03%

Respondents

0

0

0

13

1

%

0

0

0

13.13%

1.01%

Respondents

5

3

3

0

1

3.03%

3.03%

0

1.01%

27 27.27% 8 8.08% 13 13.13% 7 7.07% 2 2.02% 16 16.16% 14 14.14% 12 12.12%

10

11

42

7

99

10.1%

11.11%

5.05% % Respondent 29 s % 29.29%

Students

Others

13

0

42.42% 7.07%

100%

14 12 10

Government Employee

8

Executive

6

Self Employed Students

4

Others

2 0 Lux

Lifebuoy Breeze

liril

Hamam Pears

Dove

Others

Interpretation: The brands Lux and Dove are highly used by the students followed by the both Breeze and Pears. Lux is again mostly preferred brand by government employees followed by the others. Most of the self employed people used pears and others preferred both Liril and Pears mostly.

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3. Brand People Use – Income Group Cross Tabulation Income Groups Less than 1 Lakh

1 to 2 Lakh

2 to 3 Lakh

3 to 4 Lakh

4& Above

Dependents

Respondent s

2

8

5

0

0

12

27

%

2.02%

8.08%

5.05%

0

0

12.12%

27.27%

Respondent s

2

3

0

0

0

3

8

%

2.02%

3.03%

0

0

0

3.03%

8.08%

Respondent s

2

5

2

0

0

4

13

%

2.02%

5.05%

2.02%

0

0

4.04%

13.13%

Respondent s

2

0

1

0

0

4

7

%

2.02%

0

1.01%

0

0

4.04%

7.07%

Respondent s

0

2

0

0

0

0

2

%

0

2.02%

0

0

0

0

2.02%

Respondent s

3

1

0

3

2

7

16

%

3.03%

1.01%

0

3.03%

2.02%

7.07%

16.16%

Respondent s

0

0

0

0

0

14

14

%

0

0

0

0

0

14.14%

14.14%

Respondent s

3

5

4

0

0

0

12

3.03%

5.05%

4.04%

0

0

0

12.12%

14

24

12

3

2

44

99

14.14 %

24.24 %

12.12%

3.03 %

2.02 %

44.44%

100%

Brands

Lux Lifebuo y Breeze

Liril Hama m Pears

Dove

Other

Total

% Responde nts %

57

Total

16 14 12 Less than 1 Lakh

10

1 to 2 Lakh 2 to 3 Lakh

8

3 to 4 Lakh 6

4 & above Dependents

4 2 0 Lux

Lifebuoy Breeze

liril

Hamam

Pears

Dove

Others

Interpretation: The people lies in the category of dependents preferred mostly Dove and then Lux and pears respectively. The people lies in the income group of 1 to 2 lakh used mostly Lux and Breeze respectively. Lux is mostly preferred by the income group of 2 to 3 lakh. A pear is the brand which is highly used by the both 3 to 4 Lakh and above 4 Lakhs income group.

58

D. Association with Existing Brands Duration 1 Month 6 Months 1 Year 2 or more years Total

No of Samples 2 18 27 52 99

Associate with Existing Brand 60 50 40 30

Asociated with brand

20 10 0 1 Month

6 Months

1 Year

2 or more years

Interpretation: Major chunk of population 52% is associated with associated with same brand from more than two years. 27% from about one year, 18% from 6 months and 2% from 1 year. It shows that a good amount of population is brand loyal in terms of bath soap.

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1. Association with Existing Brand – Brands People Use Duration of Using Brands

1 month

6 months

1 year

2 or more years 20

Total

27 0 5.05% 2.02% 20.2% % 27.27% Respondents 0 3 2 3 8 Lifebuoy 0 3.03% 2.02% 3.03% % 8.08% Respondents 0 2 3 8 13 Breeze 0 2.02% 3.03% 8.08% % 13.13% Respondents 0 1 2 4 7 Liril 0 1.01% 2.02% 4.04% % 7.07% Respondents 0 0 1 1 2 Hamam 0 0 1.01% 1.01% % 2.02% Respondents 1 0 7 8 16 Pears 1.01% 0 7.07% 8.08% % 16.16% Respondents 0 6 4 4 14 Dove 0 6.06% 4.04% 4.04% % 14.14% Respondents 1 1 6 4 12 Other 1.01% 1.01% 6.06% 4.04% % 12.12% Respondents 2 18 27 52 99 Total % 2.02% 18.18% 27.27% 51.51% 100% Respondents

Lux

0

5

2

25

20 1 Month

15

6 Months 1 Year

10

2 or more years 5

0 Lux

Lifebuoy Breeze

liril

Hamam

Pears

Dove

Others

Interpretation: The people are highly associated with the Lux, Breeze and Pears respectively.

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E. Switchover to another brand Response No of Respondents Switchover to another Brand Continue with existing brand Not Responded Total

11 89 1 100

Switchover to the another brand 1% 11%

Switchover to another brand Continue with existing brand Not Responded

88%

Interpretation: The consumers thinking regarding with they will be continue with the same brand in near future the response is in favor of companies as 88% people are ready to continue with their existing brand. 11% people are susceptible to brand switching as they are not convinced.

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F. Reason for switchover to another brand Reasons for switchover Lack of changes in existing brand Price Rises Non Availability Packaging & features Effective Advertisement and promotion of other brand Total

No. of Samples 1 2 0 6 sales 2 11

Resones for switchover to anather brand 9%

Lack of changes in existing brand

18%

Price Rises

18%

Non Avaibility 0% Packeging and features Effective advertiesment and sales promotion of other brand

55%

Interpretation: from the above 11 people who are switching over to the another brand 55% people are unsatisfied with the packaging & features of existing brand that‘s why they are switching over and 18% each switchover because of price rises and effective advertisement and sales promotion of other brands and rest of the people are switchover because of lack of changes in their existing brand.

62

G. Source of Information Sources of Information TV Print Radio Store Display Hoardings Friends & Family Total

No. of Samples 85 9 2 0 1 2 99

Source of Information 90 80 70 60 50 40

Source of Information

30 20 10 0 TV

Print

Radio

Store Display

Hoardings Friends & Family

Interpretation: How a consumer came to know about a particular brand it is very much important for marketers, because with the help of this they can reach to their market in better way. It is clear from the finding the T.V Advertisements are the major source of information for customers; rest contributes marginally to the brand awareness.

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H. Place to Purchase the bath soap Place for Purchase Nearest Kirana Shop Super shop Not responded Total

No. of Samples 83 16 1 100

Place for Purchase 1% 16%

Nearest kirana Shop Super Shop Not Responded

83%

Interpretation: 83% of people still rely to their local kirana shops for Bath Soaps and 16% purchase from super shop.

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I. Attributes motivates to purchase the brand Attributes Brand Name Advertisements Attractive Packaging Quality Attractive Offers Health Price Shop Display Retailers Fragrances

No. of Samples 33 16 10 73 7 17 24 5 4 7

Attributes Motivates to Purchase the Brand 2% 2%

Brand Name

4%

Advertiesment

17%

Attractive Packaging

12%

Quality 8% 9% 5%

Attractive Offers Health Price

4%

Shop display Retailers 37%

Fragrances

Interpretation: When it comes to why a customer opts for a brand, which attributes attract him most? The opinion is divided into lot of factors, lot of customer prefer for more than one attribute. But three core attribute on which the whole bath soap market is standing areQuality 37% Brand Name 17% Price 12% Interestingly 9% customers feel health also as a choice criterion.

65

J. Ranking to the Attributes Grade/ attribute Fragrance Quality Packaging Price Advertisement Brand image Health

1st

2nd

3rd

4th

5th

31 51 14 21 12 11 36

48 32 34 43 17 22 26

10 9 42 24 32 29 22

2 7 8 8 31 26 6

8 0 1 3 7 11 9

60

50 Fragrance 40

Quality Packaging

30

Price Advertisement

20

Brand image Health

10

0 1st

2nd

3rd

4th

5th

Interpretation: The graphical representation of all sample size shows that the customer gives 1 preference to the quality, 2nd preference to the fragrance, 3rd preference to packaging, 4th preference to the advertisement and 5th preference to the brand image. Those attributes motivates to the customers to purchase the bath soap brand. st

66

K. Effects of Non Availability of Brand Action Drop the idea to buy Go to another retail shop Try another brand Not Responded Total

No. of samples 9 72 18 1 100

effects on buyer to non availability of brand 1% 9% 18% drop the idea to buy go to another retail shop try another brand Not Responded

72%

Interpretation: As per the collected data it is clear that customers want to stick to their particular brand rather than trying out some different brand.

67

L. Effects of Price increased of existing brand Response Continue to buy the existing brand Try another brand Not Responded Total

No. of samples 70 29 1 100

effects of increases in price 1%

29%

continue to buy the existing brand try another brand Not Responded 70%

Interpretation: Customers are ready to pay even high price because they are satisfied with what they buy.

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M. Effects of Sales Promotion like 3Rs off or 25 gm extra Response Yes No Not Responded Total

No. of samples 78 21 1 100

response to sales promotion 1%

21% yes no Not Responding

78%

Interpretation: Almost 78% customer‘s agreed that sales promotion schemes do effect the buying decisions.

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N. Consumption in package Types of package Single pack Combo pack Not Responded Total

Consumption 44 55 1 100

consumption in package 1%

44%

single pack combo pack Not Responded

55%

Interpretation: Above pie chart shows that 55% people prefers soap in combo pack (i.e. Discount Pack) and the 44% people prefers soaps in single pack.

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O. Reasons of Using Combo Pack Combo Pack For Actual % Consumers Consumption 55

19

35%

For Discount

%

36

65%

Reasons for Combo pack Consumption

35% For Actual Consumption For Discount 65%

Interpretation: From the 55 consumers of the combo pack of bath soaps 65 % people prefer it for the discount purpose and 35% people prefer it for the actual consumption.

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P. Single pack Consumption 1. Size frequently buy and average monthly consumption No. of Average Monthly Size Monthly Consumption buyers Consumption 45gm 1 3 3 75gm 14 62 4 100gm 20 39 2 125gm 8 18 2

Single Pack Buyers 2% 19% 33%

45gm 75gm 100gm 125gm

46%

Monthly Consumption 70 60 50 40 Monthly Consumption

30 20 10 0 45gm

75gm

100gm

125gm

Interpretation: From the above sample size there is 46% users of the 100gm size and 75 gm has high monthly consumption in single size.

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Q. Combo pack consumption 1. Size frequently buy & average monthly Consumption No. of Average Monthly Size Monthly Consumption buyers Consumption 75gm × 4 13 33 3 100gm × 26 44 2 3 125gm × 16 31 2 4

Combo Pack Buyer

24%

29%

75gm × 4 100gm × 3 125gm × 4

47%

Monthly Consumption 50 45 40 35 30 25

Monthly Consumption

20 15 10 5 0 75gm × 4

100gm × 3

125gm × 4

Interpretation: From the above sample size there is 47% users of the 100gm× 3 size and also 100gm× 3 gm has highest monthly consumption in combo pack. 73

R. Satisfaction Level Satisfaction Level

No of Respondents

Highly Satisfied Moderate Satisfied Unsatisfied Not Responded Total

60 35 4 1 100

Satisfaction Level 1% 4%

Highly Satisfied 35%

Moderate Satisfied Unsatisfied 60%

Not Responded

Interpretation: The prime aspect that will decide brand loyalty is the satisfaction level of a customer. Here 60% population is satisfied with their existing brand. The numbers of unsatisfied customers are 4%.

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S. Recommendation to Others Recommendation No of Respondents Yes No Total

90 10 100

Recommendation to others 10%

Yes No

90%

Interpretation: Word of mouth promotion has a deciding impact on consumers. Here finding shows that companies are successful in this as 90% of consumers recommend the brand to others.

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Analysis Factors Influencing the Buyer Behavior 1. Cultural Factors: Following are the heads considered in the cultural factors: a. Occupational Factors b. Educational Factors c. Gender Factors Occupation (students) Education (Graduate) Gender (Male)

No of Respondents 42 52 80

Cultural Factors 90 80 80 70 60 50

52 42

40 30 20 10 0 Occupation (Student)

Education (Graduate)

Gender(Male)

Interpretation: There are three factors considered in the cultural factors i.e. occupation, education and gender. In this study the gender factor highly affect the buying behavior of customers.

Statistical Analysis: Mean of Cultural Factor = 58

76

2. Social Factors a. Marital Status b. No. of Family Members c. Occupational Factors Factors Unmarried 5 or More Students

No of Respondents 60 45 42

Social Factors 70 60 60 50

45

42

40 Social Factors

30 20 10 0 Unmaried

5 or More

Students

Interpretation: Marital status, family members and the occupation are the heads considered in the social factors, in which the unmarried head of the marital status affect majorly affect the buyer behavior.

Statistical Analysis: The mean of Social Factor = 49

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3. Personal Factors a. Age b. Occupational c. Economical Factors 20 to 30 Occupation Economical

No of Respondents 70 42 25

Personal Factors 80 70 70 60 50

42

40

Personal Factors

30

25

20 10 0 20 to 30

Students

1 - 2 Lakh

Interpretation: The age group affects the buyer behavior of customers highly in personal factor.

Statistical Analysis: The mean of personal factor = 45.67

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4. Psychological Factors a. Motivation b. Perception c. Learning Factors Quality Perception (Quality) Satisfaction Level

No of Respondents 73 51 60

Psychological Factors 80

73

70 60 60 51 50 40

Psychological Factors

30 20 10 0 Quality

Perception (Quality)

Satisfaction Level

Interpretation: There are three factors considered in the psychological that are motivational, perception and quality, in which the motivational factors create higher impact on the buyer behavior.

Statistical Analysis: The mean of psychological factor = 61.33

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Major Factors Influencing the buyer Behavior Following are the major factors influencing the buyer behavior, which is come out from the above statistical analysis. Major factors Cultural Factor Social Factor Personal Factor Psychological Factor

No of Respondents 58 49 45.67 61.33

Major Factors 70 60

61.33

58 49

50

45.67

40 30

Major Factors

20 10 0 Cultural Factor

Social Factor

Personal Factors

Psychological Factor

Interpretation: From the above four major factors of buyer behavior the psychological factor affects highly on the buying pattern of the customers behavior.

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Findings Following are the findings of the above analysis. 1. Psychological factor is highly affected to the consumers buying behavior 2. Form this survey based project it has found that consumers preferring the quality as well as fragrance at the time of purchasing the bath soap. 3. HUL having the highest market share in bath soap because it is working in all segments of bath soaps. 4. In a family the consumption of a combo pack of bath soap is 55% as compare to the single pack i.e. 44%, the average consumption of a family in a combo pack is 2 sets per month. 5. Consumers prefer the combo pack as compare to the single pack of the bath soap because of the discount factor. 6. The performance of Santoor soap is as good as HUL‘s LUX because of the continuous promotional activities. 7. The soaps like Godrej No1, Nirma, and Dayna having fewer sales as compare to the HUL, but they are providing the cheapest soaps in the market with better quality, having 76% TFM and lies in the grade I Soap category.

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Suggestions & Recommendations 1)

The market share of HUL‘s Bath Soap is higher than the other bath soap companies but if we see the individual performance of each bath soap of HUL, some brands are lacking somewhere, so it is suggested to the company to pay attention on the individual performance of each bath soap rather than collectively.

2)

Psychological factors influence highly the buyer behavior i.e. quality motivates to customers to buy the products. Customer wants best quality product on any price, so company should improve the quality of their bath soap products such as improvement in TFM.

3)

If company wants to increase their sales and consumption so it is suggested that they should provide their soap in combo pack continuously.

4)

Since Wardha is a town in which there are many schools and colleges hence the most often soap being preferred by the students is Dove and Lux hence it is suggested that more of the fragrances shapes and sizes of the soap should be introduced so that the growth of the soap could be increased in that area.

5)

Majority of the users are from middle class family and they have less consumption of the soaps like Dove and Pears hence it is suggested to reduce the price of that soap and try to make affordable to the Dove and Pears for the consumption of middle class people.

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Limitations 1. It is a hard fact that each study suffer from some limitations. One of the limitations of the study is, as the information is collected from the retailers, the monthly sales figure given by them is based entirely on their own judgment. So a few of them might have given the wrong figures related to their monthly sales. Another limitation was that some of the retailers were busy and could not give appropriate information. And also very few retailers did not want to share any information. 2. Another limitation of the study was the customers who were personally interviewed did not want to share the actual data as few of them were giving fake data. 3. The Sales Executive of the company was always on tour so it is not possible to conduct the personal interview with them. So all the information related to the company is collected by the telephonic interview. Because of their busy schedule sometimes they were unable to give me the information at right time. 4. The sample size being very small, i.e. only 100 consumers and 20 retailers, limited the scope of research 5. Time constraints put boundaries to sample area and hence limited the extent of the study 6. Taking convenience sampling might have led to some bias as people with different age groups have different perceptions

83

Conclusions The most important skill I feel are needed in the project work include: research skills, systematic organizational skills, accuracy and attention to detail, basic computer skills, the ability to communicate effectively the ability to develop and maintain relationship, initiative and the ability to work independently on a project but also be an integral part of the research. Study on the buying behavior towards bathing soap of the respondents of Wardha city gave me a lot of knowledge, information and confidence. And on that basis I can say that the consumption of these brands would be increased through more awareness about the brand, through easy availability at the shop. Following are the conclusions of the study on the basis of data analysis and findings of the study. 1. The customers are highly motivated by the quality of the product i.e. the psychological factors are affecting highly the buying behavior of customers. 2. Advertisement and the sales promotional activity is affected very much the purchasing behavior of the customers. Hence it is conclude that customers prefer the bath soap product on the basis of the advertisement and the promotional activities of the companies. 3. According to the highest market share of the bath soaps of HUL it is concluded that the HUL is highly penetrated company in the bath soap segment. 4. The soaps under the popular range (> Rs.13 & < Rs.20) and economy range (< Rs. 13) are used by the income group from less than 1 lakh to 3 lakh and the premium range (> Rs. 20) soaps are mostly used by income group of above 4 lakh and the respondents lies in the dependent category such as students and house wives choose mostly the premium brands such as dove and Pears, so it is conclude that the buyers choose the brands on the basis of their income and choice.

84

Bibliography Journals: 1. Indian Journal of Marketing, August 2009. Ref. – “Factor Responsible for Choice of FMCG Products: A Case Study of Consumer Dental Care Product.” (Page No. – 24, 25 & 26) -

Dr. Pinaki Ranjan Bhattacharyya

-

Dr. Sainath Mazumdar

2. Indian Journal of Marketing, September 2009. Ref – “A Study of Consumer’s Buying Pattern of Cosmetic products in South Hariyana.” (Page No. – 29, 30, 31 & 33.)

-

Dr. Neeraj Kaushik

-

Deepak Gupta

Books: 1) Business Research – Berry. 2) Kotler Phillip, Marketing Management, Millennium edition. (Prentice hall of India). 3) Research Methodology, Khothri C R

Websites: www.hul.com http://en.wikipedia.org/wiki/Fast_moving_consumer_goods http://www.naukrihub.com/india/fmcg/overview/ http://www.naukrihub.com/india/fmcg/consumer-class/ http://www.naukrihub.com/india/fmcg/consumer- class/income/ http://www.naukrihub.com/india/fmcg/consumer-class/age/

85

Annexure Questionnaire for Consumer Resp. Sir/ Mam

I am the student of Bapurao Deshmukh Engineering College, Sevagram, studying in MBA IInd year. As a part of my curriculum, I am doing a project which has a title ―A COMPREHENSIVE STUDY OF BATH SOAP MARKET AND ANALYSIS OF BUYER BEHAVIOR TO PURCHASE THE BATH SOAP PRODUCTS – WITH SPEACIAL REFFERENCE TO HINDUSTAN UNILEVER LTD.”. I will be very grateful to your valuable time to response the following questions. Kindly tick () or give your words where appropriate.

Name: …………………………………………………………………………………… Address: ……………………………………………………………………………….. Gender:

 Male

 Female

1. What is your age group?  0 – 20 yrs

 20 – 30 yrs

 30 – 40 yrs

 40 – 80 yrs

2. What is your marital status?  Single

 Married

3. From which family are you belonging?  Joint Family

 Nuclear Family

4. How many members are in your family?  Single

2

3

4

 5 or more

86

What is your educational background?  10th  12th  Graduate

 Post graduate & above

5. What is your occupation?  Government Service

 Executive

 Self employee

 Student

 Other ……………………………………….. 6. What is your annual income?  0 – 1 Lakh

 1 – 2 Lakh

 2 – 3 Lakh

 3 – 4 Lakh

 4 & above 7. Do you use the bath soap product?  Yes

 No

8. If No, then which substitute product do you use? And why? ………………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………………… ……………………………………… 9. If yes, then which brand of soap do you use?  Lux

 Breeze

 Lifeboy

 Liril

 Hamam

 Dove

 Pears

 Other …………………………………

10. Since how long time you are using these bath soap brand?  1 month

 6 months

 1 year

 2 or more year

11. Do you want to switchover to another brand?  Yes

 No

87

12. If yes then which is the brand do you want to switchover? …………………………………………………..

13. If yes then what is the reason for switching the brand?  Lack of changes in existing brand  Price raises  Non availability

 Packaging / features

 Effective Advertisement / sales promotion of other brand 14. By which source you get the information about the particular brand?  TV

 Store display

 Print

 Radio

 Hoardings

 Friends / Family

15. Form which place do you frequently purchase your favorite bath soap brand?  Nearest Kirana Shop

 Super shop

16. Which attribute motivate you to purchase the bath soap product?  Brand name

 Advertisement

 Attractive packaging

 Quality

 Attractive offers

 Health

 Price

 shop display

 Retailers

 Fragrance 17. Rank of following attributes according to their importance to you? Grade Fragrance Quality Packaging Price Advertisement Brand image Health

Very High 1st       

High 2nd       

Medium 3rd       

Low 4th       

Very Low 5th       

18. If particular brand is not available with retailers then what will you do?  Drop the idea to buy it another brand

 go to another retail

88

 try

19. If your brand will be few Rs expensive then will you go for it?  Yes

 No

20. A sales promotion schemes like 3 Rs off or 25gm extra; would it affect your purchase decision?  Yes

 No

21. Which type of Package of bath soap do you buy?  Single Pack

 Sets Pack

22. If you buy the single pack then which size of package you normally buy?  45gm

 100gm

 75gm

 125gm

23. How much your monthly consumption of above mentioned package?  1 soap

 2 soaps

 3 soaps

 4 soaps

 More ……….. 24. If you buy the set pack then, which size of package you buy?  75gm×4

 100gm×3

 125gm×4

25. Why do you buy the soaps in sets pack?  It is my actual Consumption

 For discount

26. How much your monthly consumption of above mentioned package?  1 set

 2 sets

 3 sets

 4 sets

 More ……….. 27. Are you satisfied with your existing bath soap?  Highly Satisfied

 Moderate Satisfied

 Unsatisfied

28. If you are satisfied with your existing brand then will you recommend it to others?  Yes

 No

Thank You Signature ……………………

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Questionnaire for Retailers Name of Outlet

: ______________________________________

Name of Retailer : ______________________________________ 1. Which brands of bath soaps are available in your shop?  LUX

 Cinthol

 Nirma beauty soap

 Lifeboy

 Godrej No. 1

 Neema

 Liril

 Santoor

 Vivel

 Hamam

 Chandrika

 Fiama De will

 Breeze

 Wipro Baby Soap  Jonson & Jonson Baby Soap

 Rexona

 JO

 Savlon

 Dove

 Dayna

 Dettol

 Pears

 Margo

 Nivia

 Moti

 Medimix

2. Sales per month of bath soap brands a. LUX ………….. b. Lifeboy ………….. c. Liril ………….. d. Hamam ………….. e. Breeze ………….. f. Rexona ………….. g. Dove ………….. h. Pears ………….. i. Cinthol ………….. j. Godrej No. 1 ………….. k. Santoor ………….. l. Chandrika ………….. m. Moti …………..

n. Wipro Baby Soap ………….. o. Dettol ………….. p. Vivel ………….. q. Fiama De will ………….. r. Nirma beauty soap …………. s. Neema ………….. t. Dayna ………….. u. JO ………….. v. Margo ………….. w. Medimix ………….. x. Savlon ………….. y. Jonson & Jonson Baby Soap………… z. Nivia Premium ……………

Stamp & Signature of Retailer ……………………………….

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