COMPARATIVE STUDY OF SAVLON, DETTOL AND LIFEBUOY SOAP IN MUMBAI”

Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management COMPARATIVE STUDY OF SAVLON, DETTOL AND LIFEBUOY SOAP IN MUMBAI”

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SR. NO. 1

TABLE OF CONTENT

INTRODUCTION TO SOAP

PAGE NO. 1-3

1.1 Soaps Comparative study of Savlon soap with Dettol and Lifebuoy soap 1.2 Soap history Indira Institute of Business Management 1.3 Ingredients of Soap

2

SOAP INDUSTRY IN INDIA 2.1 2.2 2.3 2.4 2.5 2.6

3

4-6

Soap Category in India Overview of Indian soap Category History of Soap in India Brand Positioning then and now Consumer use today Consumer preferences

MARKETING OF SOAP

7

3.1 Kirana Store 3.2 Pan Beedi Shops 3.3 Departmental Store

4

COMPANY PROFILE

8-9

4.1 About Company 4.2 Facts about Johnson & Johnson 4.3 Facts On Stress In Workplace

5

HEALTH SOAPS

10-12

5.1 About Savlon Soap 5.2 About Dettol Soap 5.2.1 Dettol Original Soap 5.2.2 Dettol Skincare Soap 5.2.3 Dettol Cool Soap 5.2.4 Dettol Fresh Soap 5.3 About Lifebuoy Soap 5.3.1 Some Facts

13-14 6

OBJECTIVE AND SCOPE OF PROJECT 6.1 Objectives 6.2 Scope 6.3 Hypothesis 6.4 Limitations 6.4.1 Strength limitation 6.4.2 Cost limitation 6.4.3 Time limitation 6.4.4 Literature Review limitation

7

LITERATURE REVIEW

15-16

7.1 Savlon heals without hurting 7.2 The Power of Contrast

8

RESEARCH DESIGN AND METHODOLOGY 8.1 Research design 8.2 Research approach 8.3 Sampling Method 8.4 Research instrument 8.5 Data Analysis method 8.6 Data Collection 8.6.1 Primary Data

17-19

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management

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INDEX SR. NO.

TOPIC

PAGE NO.

1

INTRODUCTION TO SOAP

1

2

SOAP INDUSTRY IN INDIA

4

3

MARKETING OF SOAP

7

4

COMPANY PROFILE

8

5

HEALTH SOAPS

10

6

OBJECTIVE AND SCOPE OF PROJECT

13

7

LITERATURE REVIEW

15

8

RESEARCH AND METHODOLOGY

17

9

DATA ANALYSIS

20

10

SPSS ANALYSIS

30

11

FINDINGS AND RECOMMENDATION

39

12

CONCLUSION

42

13

DATA SOURCES

43

14

ANNEXURE

44

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INTRODUCTION TO SOAP 1.1 SOAPS Soaps are useful for cleaning because soap molecules have both a hydrophilic end, which dissolves in water, as well as a hydrophobic end, which is able to dissolve nonpolar grease molecules. Although grease will normally adhere to skin or clothing, the soap molecules can form micelles which surround the grease particles and allow them to be dissolved in water. The hydrophobic portion (made up of a long hydrocarbon chain) dissolves dirt and oils, while the ionic end dissolves in water. Therefore, it allows water to remove normally-insoluble matter by emulsification.

1.2 SOAP HISTORY Traditionally, soap has been manufactured from alkali (lye) and animal fats (tallow), although vegetable products such as palm oil and coconut oil can be substituted for tallow. American colonists had both major ingredients of soap in abundance and so soap making began in America during the earliest colonial days. Tallow came as a byproduct of slaughtering animals for meat, or from whaling. Farmers produced alkali as a by-product of clearing their land; until the nineteenth century wood ashes served as the major source of lye. The soap manufacturing process was simple, and most farmers could thus make their own soap at home. The major uses for soap were in the household, for washing clothes and for toilet soap, and in textile manufacturing, particularly for fulling, cleansing, and scouring woolen stuffs. Because colonial America was rural, soap making remained widely dispersed, and no large producers emerged. The growth of cities and the textile industry in the early nineteenth century increased soap usage and stimulated the rise of soapmaking firms. By 1840, Cincinnati, then the largest meatpacking center in the United States, had become the leading soap-making city as well. The city boasted at least seventeen soap factories, including Procter and Gamble (established 1837), which was destined to become the nation's dominant firm. A major change in soap making occurred in the 1840s when manufacturers began to replace lye made from wood ashes with soda ash, a lye made through a chemical process. Almost all soap makers also produced tallow candles, which for many was 5|Page

Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management their major business. The firms made soap in enormous slabs, and these were sold to grocers, who sliced the product like cheese for individual consumers. There were no brands, no advertising was directed at consumers, and most soap factories remained small before the Civil War. The period between the end of the Civil War and 1900 brought major changes to the soap industry. The market for candles diminished sharply, and soap makers discontinued that business. At the same time, competition rose. Many soap makers began to brand their products and to introduce new varieties of toilet soap made with such exotic ingredients as palm oil and coconut oil. Advertising, at first modest but constantly increasing, became the major innovation. In 1893 Procter and Gamble spent $125,000 to promote Ivory soap, and by 1905 the sales budget for that product alone exceeded $400,000. Advertising proved amazingly effective. In 1900 soap makers concentrated their advertising in newspapers but also advertised in streetcars and trains. Quick to recognize the communications revolution, the soap industry pioneered in radio advertising, particularly by developing daytime serial dramas. Procter and Gamble originated Ma Perkins, one of the earliest, most successful, and most long-lived of the genre that came to be known as Soap Operas, to advertise its Oxydol soap in 1933. By 1962 major soap firms spent approximately $250 million per year for advertising, of which 90 percent was television advertising. In 1966, three out of the top five television advertisers were soap makers, and Procter and Gamble was television's biggest sponsor, spending $161 million. Advertising put large soap makers at a competitive advantage, and by the late 1920s three firms had come to dominate the industry: (1) Colgate-Palmolive-Peet, incorporated as such in 1928 in New York State, although originally founded by William Colgate in 1807; (2) Lever Brothers, an English company that developed a full line of heavily advertised soaps in the nineteenth century and in 1897 and 1899 purchased factories in Boston and Philadelphia; and

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management (3) Procter and Gamble. In 1940 the "big three"—Colgate, Lever, and Procter and Gamble— controlled about 75 percent of the soap market. The following ingredients are often used in hand dishwashing soaps and detergents; not all products contain all ingredients.

1.3 INGREDIENTS OF SOAP  Cleaning Agents/Surfactants lift dirt and soil and produce good greasecutting capability.  Stability and Dispensing Aids keep the product consistent under varying storage conditions and provide desirable dispensing characteristics.  Mildness Additives may include moisturizing agents, certain oils and emollients, certain protein compounds, or other neutralizing or beneficial ingredients.  Fragrance is added to produce a pleasant or distinctive scent.  Preservatives help prevent any microbiological growth in the product that could cause color or odor change, poor performance and/or separation of the ingredients.  Colorants are added to lend individuality and an appealing appearance to the product.  Enzymes help break down tough stains and burned-on soils.  Encapsulates deliver stability for special materials/additives (e.g., moisturizer or fragrance).

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SOAP INDUSTRY IN INDIA 2.1 Soap Category in India Soap is a product that many people might take for granted or consider rather ordinary, but for some, lathering up can be a treasured part of a morning or nightly routine. Scented or unscented, in bars, gels, and liquids, soap is a part of our daily lives. In the United States, soap is a $1.390 million (US$)* industry with over 50 mass market brands. But in some markets the sales potential for soap is only beginning to be realized. At the end 2000, soap was a $1.032 million (US$)* business in India. IFF's marketing experts offer the following overview of this growing category. 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

2.2 Overview of the Indian Soap Category India is a vast country with a population of 1,030 million people. Household penetration of soaps is 98%. People belonging to different income levels use different brands, which fall under different segments, but all income levels use soaps, making it the second largest category in India (detergents are number one). Rural consumers in India constitute 70% of the population. Rural demand is growing, with more and more soap brands being launched in the discount segment targeting the lower socioeconomic strata of consumers.

2.3 History of Soap in India During the British rule in India, Lever Brothers England introduced modern soaps by importing and marketing them in India. However, North West Soap Company created the first soap manufacturing plant in India, which was situated in the city of Meerut, in the state of Uttar Pradesh. In 1897, they started marketing cold process soaps.*

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management During World War I, the soap industry floundered, but after the war, the industry flourished all over the country. Mr. Jamshedji Tata set up India's first indigenous soap manufacturing unit when he purchased OK Coconut Oil Mills at Cochin Kerala around 1918. OK Mills crushed and marketed coconut oil for cooking and manufactured crude cold process laundry soaps that were sold locally. It was renamed The Tata Oil Mills Company and its first branded soaps appeared on the market in the early 1930s. Soap became a necessity for the moneyed class by around 1937. *Cold process soaps are manufactured by mixing all ingredients (soap base, perfume, fillers, actives, etc.) in a large pot and heating them up to 70 degrees while they are stirred manually. Once the mixture is ready, the soap is plodded based on its size with the logo by a machine. In a machine made soap, the mixing process is called milling and this is done by a rotary operated machine and not manually.

2.4 Brand Positioning Then and Now Soap manufacturers originally targeted their products to the lowest income strata in urban as well as rural areas, positioning their brands as a way to remove dirt and clean the body. For some brands, that positioning persists even today with a focus on removal of body odor and keeping the user healthy. However, soap positionings are moving towards skin care as a value-added benefit.

2.5 Consumer Use Today Toilet soaps are always used in the bar form—there is no other form in the Indian market—and they are used in the bath. Showers are a distant dream for 70% of India’s population, who live in the villages where there is not even a regular supply of drinking water. In the urban areas, people bathe by using a bucket of water, mug, and a bar of soap. In villages, they usually bathe by the river bank or village ponds. Although most of the urban houses have a shower facility, showers are seldom used because of the scarcity of water.

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management With increase in disposable incomes, growth in rural demand is increasing because consumers are moving up towards premium products. However, in the recent past there has not been much change in the volume of premium soaps in proportion to economy soaps, because increase in prices has led some consumers to look for cheaper substitutes.

2.6 Consumer Preferences Consumer preferences are varied and are more regionally specific. India is divided into four regions: North, East, West, and South. 

Consumers in the North prefer pink colored soaps, which have floral profiles. Here the fragrance preference is for more sophisticated profiles reflecting their lifestyles. Freshness soaps with lime and citrus notes are also popular preferences as the climate in the North is very hot and citrus/lime scented soaps are seen to be refreshing.



The East is not a big soap market; hence no particular preference skews.



Consumers in the West exhibit preferences for strong, impactful fragrances and somewhat harsher profiles compared to the North. Preferences are more for the pink soaps with floral fragrances, primarily rose, which are positioned on the beauty platform.



In the South, the skew is towards specific soap segments like the Herbal/Ayurvedic profiles and also the Sandal profiles. Consumers here do not exhibit high brand loyalty and are ready to experiment and try out new brands. Hence, most fast moving consumer goods companies tend to launch their new brands in these markets, which they call test launch markets.

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1.

MARKETING OF SOAP

Soap is primarily targeted towards women, as they are the chief decision-makers in terms of soap purchase. Medicated positionings like germ killing and anti-bacterial are marketed to families. About 75% of soap can be bought through these different types of outlets: 3.1 Kirana Store: This is the most common source for buying soap, which usually forms a part of the month’s grocery list (which is purchased from these Kirana Stores). Consumers exhibit loyalty to these stores, which is largely dependent on proximity to consumers’ homes. Here consumers buy across the counter and do not have an option of browsing through display shelves. 3.2 Pan-Beedi Shops: These are really small shops, almost like handcarts, and they are primarily set up to dispense cigarettes and chewing tobacco. However, one would find such a shop at every corner and they are the main sources of soap purchase for the lower socio-economic classes. These kinds of shops exist by the dozen in rural areas. 3.3 Department Store: In India, there are very few department stores and the “Indianised” version of department stores are called “Sahakari Bhandars.” It is still a fairly new concept. However, department stores have good display counters and this is the only place where consumers get a first hand experience of shopping and choosing from available options. Here soap prices are also discounted below the retail prices.

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2. COMPANY PROFILE 4.1 ABOUT COMAPNY Johnson & Johnson was founded more than 120 years ago on a revolutionary idea: Doctors and nurses should use sterile sutures, dressings and bandages to treat peoples’ wounds. Since then, J&J have brought to the world, new ideas and products that have transformed human health and well-being. The company’s Family of Companies is organized into several business segments comprised of franchises and therapeutic categories - Consumer Health Care, Medical Devices & Diagnostics and Pharmaceuticals. Johnson & Johnson spread its roots to the world’s largest democracy, India, during the endemic post-independence turmoil of 1947. It was Mr. Patrick Whaley who set about with confidence and determination during this period of turbulence to begin the work of establishing Johnson & Johnson in the subcontinent. Things progressed quickly and by 1948, Johnson’s Baby Powder was being manufactured by British Drug House in Prabhadevi, Bombay, and marketed by the company. In the 50 years of operating in India, Johnson & Johnson Limited, India has gained a reputation for delivering high-quality products. Today, the company employees more than 2000 people and the businesses span Consumer, Medical Devices and Diagnostics, Pharmaceuticals and Vision Care. Johnson & Johnson India is an employer of choice and is a recipient of several awards, which recognize it as one of the best employers in India Other consumer products like TEK toothbrushes, Johnson’s Baby Cream and Prickly Heat Powder followed suit. However, highly specialized products like Belladonna plasters, pharmaceuticals and Permacel Tapes were imported from the parent company. It was only ten years later that the company began to manufacture its own products.

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In September 1957, a new company, Johnson & Johnson India Ltd. was created and registered with twelve employees on its rolls. In the 50 years since its establishment as a modest 12-employee outfit, Johnson & Johnson Ltd. has gained a reputation for delivering high-quality products at competitive prices. Their success, they believe, stems from their staunch commitment to caring for and catering to the needs of their customers and employees.

4.2 FACTS ABOUT JOHNSON AND JOHNSON  Founded in 1886 in New Brunswick, New Jersey.  Headquarters situated in New Brunswick for more than 120 years.  JOHNSON'S® Baby Powder, from Johnson & Johnson Consumer Products Company, introduced in 1893.  International expansion started in 1919 with Johnson & Johnson, Canada.  BAND-AID® Brand Adhesive Bandages, from Johnson & Johnson Consumer Products Company, introduced in 1921.  Company was family-owned until listed on NYSE in 1944.  Dividends issued to shareowners every quarter since 1944.  TYLENOL® (acetaminophen), from McNeil Consumer & Specialty Pharmaceuticals, launched as a consumer product in 1960.  Family of companies consisting of more than 250 operating companies in 57 countries.  119,400 employees, more than 40,000 in the United States

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5.1 ABOUT SAVLON SOAP Positioned as the “Gentle Anti Bacteria soap” Savlon soap was relaunched in 2007. The gentle equity of Savlon was derived from mother brand Savlon antiseptic liquid while “soft on skin” gives the brand space to meaningfully differentiate it from other anti bacteria soaps. The brand plays in the premium soap category and was extended to the aloe Vera variant in the year 2008. The product is currently available in 75 gm and 125 gm in 2 lead variants namely Glycerin & Aloe Vera

5.2 ABOUT DETTOL SOAP Dettol soap has four variants in the market available nationally - Dettol Original, Dettol Skincare, and newly launched Dettol Fresh. The new improved soap range continues to bear recommendation from IMA - India Medical Association.

5.2.1 Dettol Original Soap New and Improved Dettol Original Soap is specially formulated for everyday use. Dettol Original Soap is 10 times better at fighting germs*. So give Dettol's trusted protection to the entire family. Available in three sizes 120g, 70g and 35g.

5.2.2 Dettol Skincare Soap Dettol Skincare Soap offers the perfect balance between your beauty and protection needs. Dettol Skincare Soap is formulated with moisturisers to help nourish your soft skin. Available in three sizes - 120g, 70g and 35g.

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management Dettol Cool Soap combines Dettol's trusted protection with the coolness of menthol. A bath with Dettol Cool Soap will not only refresh and re-energize you, but also give you protection from germs. Available in three sizes - 120g, 70g and 35g.

5.2.4 Dettol Fresh Soap Dettol Fresh Soap combines Dettol's trusted protection with a pleasant fresh fragrance You not only stay protected from germs but also keep fresh for long. Available in two sizes - 120g and 70g

5.3 ABOUT LIFEBUOY SOAP LIFEBUOY’S vision is, “Making a billion Indians feel safe and secure by meeting all their health and hygiene needs”. True to its vision, 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. The honest & hard working soap, with its distinctive perfume and popular jingle, has carried the Lifebuoy message of health across the length and breadth of the country. Lifebuoy also offers specific health benefits through specialised product formats like Lifebuoy HandWash & Lifebuoy Clearskin, which provides treatment and protection against acne.

5.3.1 SOME FACTS •

Today Lifebuoy is mainly sold in Asia and parts of Africa. It is market leader in every Asian market where it is sold

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management •

Lifebuoy soap has been proven in laboratories to provide 100% more effective germ protection than ordinary soaps

•

To date, 70 million people in rural India along have experienced the pioneering, Lifebuoy sponsored Health Education programme – the single largest private hygiene education programme in the world

•

In 2005, Lifebuoy was awarded a 'Citizen Brand' accolade in Indonesia in recognition of the work the brand has undertaken in hand wash education

•

Nearly half of the Lifebuoy brand's consumption is in rural Asia, where most of the population live on less than US$1 per day

Lifebuoy soap Lifebuoy handwash

Lifebuoy

shower

gel

Lifebuoy clear skin

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OBJECTIVE AND SCOPE OF PROJECT 6.1 Objectives of the project:a. To determine the awareness level of savlon soap with respect to dettol and lifebuoy in the mumbai market. b. To identify the perception of consumers towards SAVLON soap with respect to dettol and lifebuoy in the mumbai market. c. To determine the effect of product promotions including advertising, sales promotions, and public relations on the buying behavior of consumers for soaps. d. To determine the importance of attributes (the driving factors) for the consumers while purchasing the soap.

6.2 Scope of the project:a. Project was specifically carried out in Mumbai region-(City). b. Sample size selected was of 50 respondents. c. Only health category of soap was selected for the project. d. Questionnaire was used for primary data collection

6.3 Hypothesis of the project:H0(1): Consumer Awareness for Savlon soap is through Retail Display. H1(1): Consumer Awareness for Savlon soap is not through Retail Display. H0(2): Dettol and Savlon soap are preferred on basis of hygiene and lifebuoy is preferred on basis of price. H1(2): Dettol and Savlon soap are not preferred on basis of hygiene and lifebuoy is also not preferred on basis of price.

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6.4 Limitations:6.4.1 Strength Limitations: Adequate efforts have been taken to accomplish the research according to the objectives. But as the research team is consisted of only one member therefore it was not possible to cover more additional areas, which would obviously give better result. 6.4.2 Cost limitations: The in-depth interview should be conducted with the help of experience moderator but it was very cost sensitive. So, the interview was taken by self which might crept few errors on the research. 6.4.3 Time Limitation: The type of the study required a detail interview of both man and women residing at homes. Thereby a tremendous difficulty was faced in getting access to different houses, especially in the absence of some male and female during daytime who are service holders. Again these people usually fallback from different offices or businesses after dusk and enjoy their times at home, so taking interview during that time became an irritation for them. On the other hand, maximum of the female who were housewives residing at home were found busy after 11 am with their daily routine jobs like cooking. Therefore a very limited period of day was found suitable for conducting the survey. Also, the interview was conducted only in the Mumbai city because of the time limits 6.4.4

Literature review limitation:

As this study has been done first time in Navi Mumbai Region, the literature reviews were not very healthy enough. Moreover, there was very little information found of some of the topic for the literature review.

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4. LITERATURE REVIEW 7.1 Savlon : Heals Without Hurting

6th Jan 2009

HARISH B Savlon was a brand owned by a pharmaceutical MNC ICI ltd. Later ICI's OTC brands was acquired by Johnson & Johnson . Savlon was relaunched in Indian market in 1993. The brand was expected to give the market leader Dettol, a run for its money. But even after millions of rupees spent, Dettol still rules the antiseptic lotion market. This article shows as to why Savlon was a better antiseptic than Dettol, and then too why Savlon was not able to hold itself in the market. It also shows the strategy adopted by Dettol which was not expected by J&J to fight the upcoming antiseptic brand, the decisions took by J&J and its effect on the brand ‘SAVLON’. It also includes launch of Savlon’s soap, strategies adopted by HUL to compete Dettol soap, and finally the drop of savlon soap by HUL.

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7.2 The power of contrast

22nd Aug 2009

S. Ramesh Kumar and B. Shekar This article says that marketers must use the aspect of contrast creatively so as to lure the consumers. It also shows that the product attributes of a leader (Dettol) create a perception that highlights the contrast when there is a follower brand (Savlon). This approach is extremely useful to fast moving consumer goods where differentiation is difficult to sustain in the long run. Marketers through advertisements, alongwith conveying the positioning of the brand, should create a contrast that consumers will be able to accept and incorporate over a period of time. The contrast would have to be relevant to the positioning of the brand.

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5. RESEARCH METHODOLOGY 8.1 Research Design: The purpose of this study is to gain consumer insights about SAVLON bath soap and comparing it with DETTOL and LIFEBUOY which are the two main soap brands in Health category in the context of Mumbai Region.

8.2 Research Approach: The respondents will be the consumers and users of bath soap (bar shape) who are interested to cooperate. To collect the data the in-depth interview method with help of questionnaire is used.

8.3 Sampling Method: The in-depth interview for this study was limited to Mumbai region only due to certain limitations. Also, it has been mentioned earlier that, the interview was only on the consumers and users of bath soap. They were interviewed for minimum of 10 minutes. The sample size was 50 for this study. Random Sampling method was used for selecting samples.

8.4 Research Instrument: Contacting the customer personally and studying the response from the questionnaire filled.

8.5 Data Analysis Method: The data analysis of this research was represented on qualitative as well as quantitative manner. Application packages like Office XP (Microsoft Word, Microsoft Excel) and SPSS were used.

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management 8.6

Data Collection: 8.6.1 Primary Data; Questionnaires for in-depth discussions with various respondents to be interviewed during primary survey were designed during this phase. List of contacts were also prepared during this phase. This involved in-depth face-to- face discussions using semi-structured questionnaires with various respondents. 8.6.1.1 Pilot field survey Pilot field survey was conducted with the intention of testing the validity of the questionnaires for fulfilling the objectives to the study. The questionnaires and the list of contacts were modified based on responses of pilot field survey. 8.6.1.2 Detailed field survey Detailed field survey was launched simultaneously at various pre-determined centers; information was collected through faceto-face interviews with respondents using semi-structured questionnaires. Questionnaires were also sent through mail and responses were collected.

8.6.2

Secondary Data: Taken data from various magazines, Newspaper and other prominent source of information collected from different websites and search engines.

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8.7 Overview: Research Type:

Objective

Data collection:

Primary source of data (questionnaire), Secondary Data (internet, books, newspaper and various journals)

Research approach:

Survey method

Research instrument:

Questionnaire

Research:

Semi-Structured

Size:

50

Research Sampling:

Convenient sampling

Tools of data analysis:

SPSS and Microsoft Excel

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6. DATA ANALYSIS 9.1CHARTS AND EXPLANATIONS 9.1.1 Variety of Soap Usage

From the above doughnut chart we can see that, among the total respondents 38% people advocated for antiseptic soap and 33% people advised for beauty care soap. After that, 10% people directed about both skin care soap and flower extract soap. Also, there is little number of respondents which is only 3% people recommended about medicated soap, herbal soap and fruit extract soap. So, it is clearly viewed that, antiseptic soap and beauty care soap are more preferable among all the respondents.

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9.1.2

Major Driving Factors

From the above column diagram we can see that, while purchasing new soap both the respondents firstly look for brand and their percentage is 26.67%. Then, secondly they prefer both antiseptic quality and beauty care quality and for these the percentage is 23.33%. After that, 10.00% consumers seek for both price and ingredients. Again, 6.67% people search for both availability and packaging. Finally, only 3.33% people hunt for few other factors which are pack size, advertisements, and shopkeeper’s opinion. Thus companies should majorly focus on the brand and its antiseptic and beauty care qualities.

9.1.3 Soap Preference 25 | P a g e


We can see from the above doughnut that, among the total respondents 58% preferred Dettol as against Lifebuoy and savlon, only 24% preferred lifebuoy and a mere 18% respondents preferred Savlon. Thus we can make out the acceptance level of dettol is much higher than the other two brands of soap.

9.1.4 Responses for various Features 9.1.4.1

Price

We can see from the above doughnut that, among the total respondents 44% people said that Price is an important factor while purchasing soap. 28% respondents stated that price is somewhat important while purchasing and those are mainly beauty and skin care seekers. Only 12% respondents told that price is the most important factor while purchasing soap . 9.1.4.2 Brand Name 26 | P a g e


We can see from the above doughnut that, among the total respondents only 14% people said that Brand name is an extremely important factor while purchasing soap. 30% respondents selected for both important and somewhat important. However 26% people stated that Brand Name is not at all important while purchasing soap. 9.1.4.3 Fragnance

We can see from the above doughnut that, among the total respondents 42% people said that Fragrance is an important factor while purchasing soap. 24% respondents stated that fragrance is somewhat important while purchasing and those are mainly beauty and skin care seekers. Only 10% respondents told that fragrance is the most important factor while purchasing soap.

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management 9.1.4.4.

Hygiene

We can see from the above doughnut that, among the total respondents 48% people said that Hygiene is an extremely important factor while purchasing soap, these are mainly health conscious consumers. 46% respondents stated that Hygiene is important and somewhat important while purchasing soap. Only 6% respondents told that Hygiene is the not important factor while purchasing soap. This shows the importance of hygiene in the soap industry. 9.1.4.5 Freshness

We can see from the above doughnut that, among the total respondents almost 75% people said that they consider freshness while purchasing soap. The remaining respondents stated that freshness is not that important while purchasing soap.

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management 9.1.4.6 Lather

We can see from the above doughnut that, among the total respondents almost 75% people said that they consider lather while purchasing soap. The remaining respondents stated that lather is not that important while purchasing soap.

9.1.5

Responses for Hygiene 9.1.5.1 Dettol

In the column graph above we can see that 37 respondents have rated Dettol as a good soap for hygiene and only 7 have rated it as a bad soap. Thus it shows that consumers who want hygienic soap have dettol in their mindset.

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management 9.1.5.2 Savlon

In the column graph above we can see that 29 respondents have rated Savlon as a good soap for hygiene and only 7 have rated it as a bad soap. Thus it shows that consumers who are aware about savlon rate it as a better soap than dettol. Thus the company should market savlon soap more effectively. 9.1.5.3 Lifebuoy

In the column graph above we can see that 18 respondents have rated Lifebuoy as an average soap for hygiene compared to Dettol and Savlon. 24 respondents have rated lifebuoy as a good soap for hygiene.

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management 9.1.6

Responses for Fragrance 9.1.6.1 Dettol

In the column graph above we can see that only 8 respondents have rated Dettol as a very good soap for fragrance may be because of its hospital kind of smell. 9.1.6.2 Savlon

15

In the column graph above we can see that 24 respondents have rated Savlon as a good soap for fragrance. 14 respondents have rated savlon as not a good soap for fragrance.

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91862

Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management 9.1.6.3 Lifebuoy

In the column graph above we can see that only 5 respondents have rated Lifebuoy as a very good soap for fragrance. 14 respondents have rated lifebuoy as not a good soap for fragrance.

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9.2 ADDITIONAL DATA

THIS TABLE INDICATES THAT THE MARKET SHARE OF SAVLON COMPARED TO DETTOL WAS VERY LESS. DUE TO HEAVY ADVERTISING SAVLON WAS FACING DIFFICULTIES IN INCREASING ITS MARKET SHARE.

PRICING WAS ALSO PREMIUM AS COMPARED TO DETTOL.

THIS

LEAD

TO

SHORTAGE

IN

ACCEPTANCE EVEN THOUGH CONSUMERS WERE AWARE OF THE SAVLON SOAP AND ITS QUALITIES.

THIS TABLE SHOWS THAT MAJORITY OF THE PEOPLE PURCHASE SOAP FOR BEAUTY AND HEALTH.

33 | P a g e


10. SPSS ANALYSIS 10.1 Crosstabs - Awareness Output Created Comments

10-FEB-2010 16:10:38

Input

Missing Handling

Value

Data

C:\Documents Settings\indira\Desktop\spss input.sav

Filter

Weight

Split File

N of Rows in Working Data File

50

Definition of Missing Cases Used

and savlon\spss

User-defined missing values are treated as missing. Statistics for each table are based on all the cases with valid data in the specified range(s) for all variables in each table.

Syntax CROSSTABS /TABLES=Awareness BY savlon_information /FORMAT= AVALUE TABLES /STATISTIC=CHISQ /CELLS= COUNT /COUNT ROUND CELL . Resources

Elapsed Time

0:00:00.55

Dimensions Requested

2

Cells Available

116508

Case Processing Summary Cases Valid Awareness * savlon information

Missing

Total

N

Percent

N

Percent

N

Percent

50

100.0%

0

.0%

50

100.0%

34 | P a g e


Awareness * savlon information Crosstabulation savlon information

Awareness Aware Not Aware Total

Advertising 22 9 31

Total

WOM 3 3 6

Retail Display 7 3 10

Any other 2 34 1 16 3 50

Through the above table of cross tabs which compared Awareness level and information about savlon, we can conclude that majority of the respondents were aware about savlon soap through Advertisng and then through Retail display. From the total of 50 respondents 34 respondents were aware and 16 were not aware about savlon soap even though they had heard the name before.

10.1.1 Chi-Square Tests

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 1.040(a) .982

Df 3 3

Asymp. Sig. (2-sided) .792 .806

.059

1

.807

50

a 5 cells (62.5%) have expected count less than 5. The minimum expected count is .96.

10.1.2 HYPOTHESIS TESTING H0(1): Consumer Awareness for Savlon soap is through Retail Display. H1(1): Consumer Awareness for Savlon soap is not through Retail Display. The level of significance of chi square is more than 0.5, thus we should reject the null hypothesis and accept the alternate hypothesis that Consumer Awareness for Savlon soap is not through Retail Display, it is through Advertising.

35 | P a g e


10.2 Crosstabs - Preference Output Created Comments

10-FEB-2010 16:12:33

Input

Missing Handling

Value

Data

C:\Documents Settings\indira\Desktop\spss input.sav

Filter

Weight

Split File

N of Rows in Working Data File

50

Definition of Missing Cases Used

and savlon\spss

User-defined missing values are treated as missing. Statistics for each table are based on all the cases with valid data in the specified range(s) for all variables in each table.

Syntax CROSSTABS /TABLES=Soap_Preference BY Important_Feature /FORMAT= AVALUE TABLES /STATISTIC=CHISQ /CELLS= COUNT /COUNT ROUND CELL . Resources

Elapsed Time

0:00:00.00

Dimensions Requested

2

Cells Available

116508

Case Processing Summary Cases Valid Soap Preference Important Feature

*

Missing

Total

N

Percent

N

Percent

N

Percent

50

100.0%

0

.0%

50

100.0%

Soap Preference * Important Feature Crosstabulation 36 | P a g e


Soap Preference

dettol savlon Lifebuoy

Total

Important Feature Brand Price Name Fragnance

Hygiene

Freshness

Lathe r

Total

3

2

5

15

1

1

27

1 6 10

1 3 6

2 1 8

3 1 19

1 2 4

1 1 3

9 14 50

Through the above table of cross tabs which compared Soap preference and important feature for purchasing a soap, we can conclude that majority of the respondents selected hygiene as a most important factor for purchasing a soap. However for Lifebuoy unlike Lifebuoy the most important factor was price. From the total of 50 respondents 27 respondents preferred Dettol, 14 preffered Lifebuoy and the remaining 9 respondents preferred Savlon over the other health brands of soap.

10.2.1 Chi-Square Tests

Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases

Value 15.441(a) 16.319

Df 10 10

Asymp. Sig. (2-sided) .117 .091

3.305

1

.069

50

a 15 cells (83.3%) have expected count less than 5. The minimum expected count is .54.

10.2.2 HYPOTHESIS TESTING H0(2): Dettol and Savlon soap are preferred on basis of hygiene and lifebuoy is preferred on basis of price. H1(2): Dettol and Savlon soap are not preferred on basis of hygiene and lifebuoy is also not preferred on basis of price. Since the level of significance of the chi square is less than 0.5 we accept the null hypothesis that Dettol and Savlon soap are preferred on basis of hygiene and lifebuoy is preferred on basis of price.

37 | P a g e


10.3 Discriminant Analysis To screen the perception of consumers based on the following independent variables: 1. Price 2. Quality 3. Brand Null Hypothesis – Out of the sample size of 30 are favourable perception and 20 are unfavourable perception Alternate hypothesis – the classification is incorrect. Notes Output Created Comments Input

14-FEB-2010 23:41:39 Data

C:\Documents and Settings\xyz\Desktop\neha research\New Folder\latest.sav

Filter

Weight

Split File

N of Rows in Working Data File Missing Value Handling

Definition of Missing

50 User-defined missing values are treated as missing in the analysis phase.

Cases Used In the analysis phase, cases with no user- or system-missing values for any predictor variable are used. Cases with user-, systemmissing, or out-of-range values for the grouping variable are always excluded. Syntax DISCRIMINANT /GROUPS=cust_percp(1 2) /VARIABLES=price quality brand /ANALYSIS ALL /PRIORS EQUAL /STATISTICS=UNIVF RAW TABLE /CLASSIFY=NONMISSING POOLED . Resources

Elapsed Time

0:00:00.02

38 | P a g e

Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management Analysis Case Processing Summary Unweighted Cases Valid Excluded

N 50

Percent 100.0

Missing or out-of-range group codes

0

.0

At least one missing discriminating variable

0

.0

Both missing or out-ofrange group codes and at least one missing discriminating variable

0

.0

Total Total

0

.0

50

100.0

Group Statistics cust_percp fav

unfav

Total

Valid N (listwise) Unweighted 39 39

Weighted 39.000 39.000

brand

39

39.000

price

11

11.000

quality

11

11.000

brand

11

11.000

price

50

50.000

quality

50

50.000

brand

50

50.000

price quality

Tests of Equality of Group Means

price quality

Wilks' Lambda .987 .828

brand

.985

F .615 9.993

df1 1 1

df2 48 48

Sig. .437 .003

.746

1

48

.392

INTERPRETATION: This table indicates the significance of each and every variable together. The significance of each of the variable is less than 0.5. Hence it is a good fit.

Analysis 1 39 | P a g e


Summary of Canonical Discriminant Functions Eigenvalues Canonical Eigenvalue % of Variance Cumulative % Correlation .347(a) 100.0 100.0 .507 a First 1 canonical discriminant functions were used in the analysis. Function 1

INTERPRETATION: The significance of canonical correlation is greater than 0.5, hence its significant. So there is no need of including more variables. Thus it tells that the selection of variables to categorize the respondents is correct. i.e. the above mentioned independent variables can differentiate the respondents.

Wilks' Lambda

Test of Function(s) 1

Wilks' Lambda .743

Chi-square 13.842

df 3

Sig. .003

INTERPRETATION: If the significance is greater than 0.5 the variables correlate/overlap each other and if its less than 0.5 the independent variables are different from each other. In this case, significance is only .001, which shows that the variables have high discriminating power as its very close to ‘zero’. Standardized Canonical Discriminant Function Coefficients Function 1 Price Quality

.190 .941

Brand

.741

INTERPRETATION: This table shows the importance of a variable for a particular study, in this case Quality and brand are more important to determine the loyalty of the customers.

Structure Matrix

40 | P a g e

Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management Function 1 Quality Brand Price

.775 .212 .192

Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions Variables ordered by absolute size of correlation within function.

INTERPRETATION: This table shows the extraction of information from the total responses. Var1 – 77.5% information was used Var2 – 21.2% information was used. Var3 – 19.2% information was used.

Canonical Discriminant Function Coefficients Function 1 Price Quality

.270 0.555

Brand

-.976

(Constant)

-1.545 Unstandardized coefficients

INTERPRETATION: This table forms an equation so as to find out the level of risk involved in the study. If the value is positive it denotes that the respondent is at low risk and vice-versa. Y= -1.545 + 0.270 (Price) + 0.555(Quality) - .976 (Brand) Eg: Price – Rs 15 Quality – 7 out of 10 (rating) Brand – 6 out of 10 (rating) Y= -1.545 + 0.270 (15) + 0.555(7) - .976 (6) = -1.545 + 4.05 + 3.86 – 5.856 = 0.509 In this case the centroid is ‘0’ and the value of Y is positive (0.509). Hence the customer perception is favourable.

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Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management Functions at Group Centroids Function cust_percp Fav Unfav

1

-.306 1.086 Unstandardized canonical discriminant functions evaluated at group means

Classification Statistics Classification Processing Summary Processed Excluded

50 Missing or out-ofrange group codes

0

At least one missing discriminating variable

0

Used in Output

50

Prior Probabilities for Groups cust_percp

Cases Used in Analysis

Prior

Fav Unfav

.500 .500

Unweighted 39 11

Weighted 39.000 11.000

Total

1.000

50

50.000

Classification Results(a)

Original

Count %

cust_perc p Fav unfav Fav unfav

Predicted Group Membership Fav

unfav

Total

31 2

8 9

39 11

79.5

20.5

100.0

81.8

100.0

18.2 a 80.0% of original grouped cases correctly classified.

INTERPRETATION: This table shows the final result wherein, out of 39 favourable respondents, 8 are unfavourable and out of 11 unfavourable respondents 2 are favourable, hence there is approx. 80% accuracy in the classification of groups.

11. FINDINGS AND RECOMMENDATIONS

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11.1 FINDINGS 1. As per the survey conducted consumers majorly preferred antiseptic and beauty care soaps. Their purchase decision was based on brand name alongwith the above mentioned factors. 2. 58% of the respondents in the survey preferred dettol, 24% of them preferred lifebuoy and only 18% of them preferred savlon in health and hygiene category. 3. Almost half of the total respondents stated that freshness and hygiene are the most important deciding factors followed by price, fragrance and brand name while purchasing soap. 4. Basically people are using soap primarily for cleaning purpose then for germ protection and beauty care. That is why; under antiseptic soap Dettol soaps has noticeable demand in the market and it is widely consumed by the loyal consumers of antiseptic soaps. 5. Savlon follows Dettol in terms of hygiene while lifebuoy was cited as an average soap in hygiene. 6. Savlon was the most expensive soap as compared to dettol and lifebuoy. According to the survey lifebuoy was mainly preferred by price conscious respondents. 7. Many respondents said that the fragrance of soap and is usage (duration of using) should be increased. 8. Lifebuoy was also receptive because of its durability whereas savlon was least durable among the three health soaps. 43 | P a g e

Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management 9. Many respondents said that the price of the soap should be reduced. 10. Majority of the consumers purchased soaps from their local kirana stores as they trusted them more. 11. On comparision almost everybody said that dettol is much better than savlon and lifebuoy is somewhat better than savlon. 12. More than 50% got information about savlon through advertising and also tried savlon soap, around 25% saw this soap in store but only half of them tried this soap and out of the remaining who heard of savlon soap from friends and family only 5% tried it. 13. The major difference cited by most of the respondents was that they trusted dettol for their family. 14. Some of the respondents said that Dettol has more number of variants as compared to savlon and lifebuoy.

11.2 RECOMMENDATIONS 1. Even though savlon has better healing capacity than dettol the company failed in its positioning. Savlon was positioned as first aid solution. To compete with a major brand, the company should position it firmly and savlon could have been positioned as the germ fighter with no pain or burns. 2. Promotion campaign of savlon was also not competitive enough, although it generated lots of interest in the minds of consumer which made them try this

44 | P a g e

Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management product but the absence of burning sensation miserably harmed the success of the product. 3. The failure of savlon antiseptic did not let the savlon soap brand to come up and it hardly changed the perception of consumers. 4. Thus company should had promoted the advantages of savlon rather than its features. They did it in later stage which was of mere use. 5. Company should thrive on innovation and for this more number of variants should be introduced and if possible soap with combined attributes (health as well as beauty care) should be introduced which can attract consumers. 6. Lifebuoy is more preferred because of its price and durability, so efforts need to be taken to improve savlon’s durability and not increasing the price. 7. More investment should be made in the research and development of the soap as it can provide an USP to the brand and company as a whole. 8. Company should increase the availability of the product, in most of the kirana stores (which are the prime destinations of purchasing soaps for consumers) savlon soap was not available.

45 | P a g e


12. CONCLUSION The soap industry in India has been under a change with the advancement of technology. The major players in soap industry – HUL, J&J, P&G, etc are having a stiff competition to gain maximum market share. The toilet soap sales are declining, eroded by liquid and gel cleansers for the increasingly popular shower toiletries sector. Bar soap producers are fighting back, taking ingredients such as aromatherapy oils and natural extracts to provide added functionality and consumer appeal. From the survey conducted it can be concluded that even though savlon has better attributes than dettol it is unable to compete because of the exceptional strategies adopted by HUL. J&J were not expecting the counter attack of HUL and were also weak in their positioning which was a hurdle in their success. Today soaps are being purchased on major 3 factors: a.

Brand Name

b.

Anteseptic Quality

c.

Beauty care

Any soap which achieves expertise in atleast two of the above mentioned three factors does very well in the Indian market.

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13. DATA SOURCES 13.1 BIBLIOGRAPHY  Claw, Spencer. "The Soap Wars: A Strategic Analysis." Fortune 67 (1963).  Hair and Bush - Marketing Research  Kothari – Research Methodology  Swasy, Alecia. Soap Opera: The Inside Story of Procter and Gamble. New York: Times Books, 1993.  Wilson, Charles. The History of Unilever: A Study in Economic Growth and Social Change. 3 vols. New York: Praeger, 1968. The original edition was published in 2 vols., London: Cassell, 1954.

13.2 WEBLIOGRAPHY  http://www.encyclopedia.com/doc/1G2-3401803910.html  www.google.com (Search Engine).  https://www.iffxpress.com/xpress/na/xhome.nsf/0/83688E1B4D5787D480256 CC900631457  http://www.jnjindia.com/CPD_WoundCare.pdf

47 | P a g e

Comparative study of Savlon soap with Dettol and Lifebuoy soap Indira Institute of Business Management  http://marketingpractice.blogspot.com/2009/01/savlon-heals-withouthurting.html  http://www.naukrihub.com/india/fmcg/overview/soaps/  http://www.scribd.com/doc/21431229/Soap-Prgt-Mba-II  http://www.scribd.com/doc/18275319/Internship-Report-by-Nusrat-Omer  http://www.unilever.com/brands/personalcarebrands/lifebuoy.aspx

14.

ANNEXURES

14.1 QUESTIONNAIRE 1. Person details: a. Name: __________________________Age:_______ Gender_______ Address:_____________________________________________ b. Marital status:_____________________________________________ c. No. of Family members:

_______________________________

2. Currently which soap are you using and why? _______________________________________________________________

3. As you hear about the following brands what comes to your mind first? Savlon: ______________________________________________________ Dettol: ______________________________________________________ Lifebuoy:_____________________________________________________

48 | P a g e


4. Which soap do you prefer? (Rank them)

1. Dettol

__________

2. Savlon

__________

3. Lifeboy

__________

5. Please rate for the similarity between two brands. (Savlon and Dettol) (5= very similar and 1= not at all similar) (Only in coloured cells)

DETTOL

SAVLON PRICE

FRAGRANCE

SIZE

FRESHNESS

PRICE FRAGRANCE SIZE FRESHNESS

6. What difference you think is there in both brands? (SAVLON and DETTOL)

7. Please rate for the similarity between two brands. (Savlon and Lifebuoy) (5= very similar and 1= not at all similar) (Only in coloured cells)

LIFEBUOY

SAVLON PRICE

FRAGRANCE

SIZE

FRESHNESS

PRICE FRAGRANCE SIZE FRESHNESS

49 | P a g e


8. What difference you think is there in both brands? (SAVLON and LIFEBUOY)___________________________________________________

9. To what extent is each of the following features an important consideration to you in selecting your soap? Features

Extremely imp

imp

somewhat imp

not at all imp

Price

[ ]

[ ]

[ ]

[ ]

Brand name

[ ]

[ ]

[ ]

[ ]

Fragnance

[ ]

[ ]

[ ]

[ ]

Hygiene

[ ]

[ ]

[ ]

[ ]

Freshness

[ ]

[ ]

[ ]

[ ]

Lather

[ ]

[ ]

[ ]

[ ]

10. Please rate the foll soap brands In hygiene (1- 5) (1 = very good, 5= very bad) Dettol

__________

Lifebuoy

__________

Savlon

__________

11. Please rate the foll brands in fragrance (1- 5) (1 = very good, 5= very bad) Dettol

__________

Lifebuoy

__________

Savlon

__________

12. Are you satisfied with SAVLON soap? (If ‘YES’ answer Q13, if ‘NO’ answer Q14.) a. YES

b. NO

13. What was the reason for your satisfaction?

14. What was the reason for your dissatisfaction?

50 | P a g e


15. Compared to other soaps (such as Dettol and Lifebuoy) that are available, would you say that SAVLON is? (tickmark)

Much better

______

Somewhat Better

______

About the same

______

Somewhat Worse

______

Much Worse

______

16. How do you get information about SAVLON? Advertising- T.V, Newspaper, Radio

_________

Friends/ Family (word of mouth)

_________

Saw it in store (counter promotion)

_________

Other

_________

17. What additional benefits do you seek in the soap?

18. What are your recommendations for savlon soap? Price:

______________________

Packaging:

______________________

Fragrance:

______________________

Brand Name ______________________ Any other:

______________________

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COMPARATIVE STUDY OF SAVLON, DETTOL AND LIFEBUOY SOAP IN MUMBAI”

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