COMPARATIVE STUDY OF SOAPS OF HUL, P&G, GODREJ, NIRMA AND JOHNSON & JOHNSON A SUMMER TRAINING PROJECT REPORT Submitted By KSHITIZ (M.B.A Batch 2009-11) In partial fulfillment of the requirements of the degree of MASTER OF BUISNESS ADMINISTRATION SUBMITTED TO:CORPORATE GUIDE:-
ACADEMIC GUIDE:-
Mr. ANKUR CHAWLA T.S.O. Ghaziabad
Mr. ASIM ROY Assistant professor Department of Management studies SRM University Delhi-Meerut Road, Sikri Kalan, Modinagar, Ghaziabad.
SRM UNIVERSITY NCR CAMPUS
1
DECLARATION
I, Kshitiz, MBA programme, SRM University, batch of 2009-2011 do hereby solemnly declare that this dissertation is an original work of mine and this has not been submitted to any other institute/University towards any other degree/diploma. Whatever information furnished in this project report is true to the best of my knowledge.
KSHITIZ DATE:
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ACKNOWLEDGEMENT Business World is very much competitive and moving fast with lots of changes every minute in strategies and policies of market.
This work is a synergistic product of many minds. I am grateful for the inspiration and wisdom of many thinkers and for the trans-generational sources and roots of this wisdom.
It has been a great opportunity to undertake research on the subject Comparative study of Soaps of HUL, P&G, Godrej, Nirma and Johnson & Johnson. No amount of words can express the benevolence and supportive help given to me by my guide Mr. ASIM RAY (Faculty, Management). I am also extremely grateful to Dr. N.C. Bansal, H.O.D., Department of M.B.A. SRM University, NCR Campus, Modinagar, . I also want to thank my family members for their guidance and support in the completion of this project successfully. Last but not least I extend my gratitude to all the people whose constant guidance and support made the completion of this project a much more enriching experience. I hope this project would be liked and appreciated by faculty members and students.
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CERTIFICATE TO WHOM IT MAY CONCERN
This is to certify that Sri Kshitiz, of batch 2009-2011 has completed his summer training report and duly submitted it after my approval.
Mr. Asim Ray Assistant Professor SRM University, Modinagar Date:
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TABLE OF CONTENTS 1.
Declaration
i
2.
Acknowledgment
ii
3.
Company certificate
iii
4.
College certificate
iv
5.
Executive summary
v
Introduction Introduction of FMCG
1
Company profile
3
Indian soap market Objective of Project
77
6.
Research methodology
79
7.
Data Analysis
91
8.
Findings of Study
103
9.
Suggestions and Recommendations
104
10.
Conclusion
105
11.
Bibliography
106
12.
Questionnaire
107
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EXECUTIVE SUMMARY Projects and research works are integral part of academic curriculum. During the process a student gets an opportunity to study the market scenario and set the practical aspects of theory which makes the concept clear. This is an outcome of the research work and study of market that undertaken on the subject related to “Comparative study of Soaps of HUL, P&G, Godrej, Nirma and Johnson & Johnson” for the partial fulfillment of Master of Business Administration. The project is done with the objective to study the Purchasing Procedure of soaps. This study and research is also to understand the value of sales and ads promotion campaign so also the perception of soaps users and its circulation power. This project has been analyzed by meeting a proper number of soap users in NCR region by direct interviews and questionnaire method.
It has been quite exciting and enjoying
experience to perform this job. My detailed research and analysis has been followed in a sequential manner. It has been presented hereby.
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INTRODUCTION
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INTRODUCTION FMCG FMCG refers to Fast Moving Consumer Goods, requirement for daily or frequent use. Typically, a consumer buys these goods at least once a month.
The sector covers a wide gamut of products such as detergents, toilet soaps, toothpastes shampoos, creams, powders, food products, confectioneries, beverages, cigarettes.
Typical characteristics of FMCG products.
Individual items are of small value. But all FMCG products put together account for a significant part of the consumer’s budget.
The consumer keeps limited inventory of these products and prefers to purchase them frequently, as and when required. Many of these products are perishable.
The consumer spends little time on the purchase decision. Rarely does he/she look for technical specification (in contrast to industrial goods). Brand loyalties or recommendations of reliable retailer/dealer drive purchase decisions.
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Trail of a new products i.e. brand switching is often induced by heavy advertisement, recommendation of the retailer or neighbours/friends.
These products cater to necessities, comforts as well as luxuries. They meet the demands of the entire cross section of population. Price and income elasticity of demand varies across products and consumers.
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Company Profile
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HUL - BRIEF HISTORY The company was incorporated on 17th October, 1933 under the name of Lever Brothers (India) Pvt. Ltd. (LBIL). It set up its manufacturing units in Bombay and Calcutta an associated company viz., Hindustan Vanaspati Mfg. Co. Pvt. Ltd. (HVM), was earlier incorporated on 27th November 1931 which set up a vanaspati factory in Bombay. Both LBILK and HVM were wholly owned subsidiaries of Unilever Ltd., London, U.K. HVM later acquired three more vanaspati factories at Shamnagar (West Bengal), Tirchirapalli (Tamil Nadu) and Ghaziabad (U.P) In order to market the toilet preparations manufactured by LBIL or imported from Unilever companies, a marketing company under the name United Traders Pvt. Ltd. (UTL) was incorporated on 11th may, 1935 as a wholly owned subsidiary of LBIL. In 1944, the management of LBIL and HVM was integrated. In November 1956, HVM and two small associated companies viz. William Gossage & Sons (India) Pvt. Ltd and Joseph Crossfield & Sons (India) Pvt. Ltd., which were wholly owned subsidiaries of Unilever Ltd., were amalgamated with LBIL and the name was changed to Hindustan Lever Ltd. From 23rd October, 1956 activities of UTL were taken over by its holding Company LBIL. With the amalgamation of business under one company, Indian capital was introduced in this integrated business in 1956. HUL has been growing very rapidly, especially in 1996 the growth was 88.6% HUL became the second private company in India after Reliance Industries to cross the Rs 10000 crore mark in 1998. At present it’s valued at Rs. 11764.31 crore. 1 Its rapid growth has given HUL place in the top 5companies regularly in annual BT-500 survey. This huge success has come due to:-
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Merger with Ponds India Limited
Launch of 40 new products
Doubling of rural distribution network from 50,000 to one lakh villages
n present situation to address the "The soprano problem", advertisers resort to shadow advertisement where the products become endemic to the setting of the show. Where the products are shown being consumed or brand name is exhibited in the background. In India, the first shadow advertisement was used in movie "Bobby" where motorcycle "Rajdoot" was advertised. Recently, there was shadow advertisement of Coca-Cola in Hindi blockbuster "Kaho Na pyar hai". But the problem with shadow advertisement is that positioning message of the product can't be conveyed to consumers. Hence, the concept of shadow advertisement can be extended further so that the theme of the advertising would become endemic to entertaining show. This would be no more exclusive advertising. Rather, advertising will be a part of the entertainment. But this has to be done in a delicate manner so that the information about the product is passed on to the viewers without disturbing the entertaining element of the show. If this succeeds, that would be a great break-through for advertisement.
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INDIAN SOAP MARKET
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HUL
Hindustan Lever Limited (HUL) is India’s largest fast moving consumer goods company with leadership in Home and Personal Care Products and Foods & Beverages. HUL’s brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians.
If Hindustan Lever straddles the Indian corporate world, it is because of being single minded in identifying itself with Indian aspirations and needs in every walk of life.
HUL is the market leader with 59% of share followed by Godrej. Other major players’ are Nirma Ltd., Colgate Palmolive Ltd. Henkel Spic India Ltd.
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The soap market is not only segmented on the basis of price and benefits but even a range of emotions within that outlining frame work. For simplicity soap market can be divided into four categories.
1.
Economy/Functional brand It comprise of 35% of the market. The red carbolic cakes are low price germ killers. The names of few of the functional brands are OK, Nirma bath and Lifebuoy. The prices of this brand soaps range from Rs. 5 to Rs. 8 per 75 gms.
2.
Popular soaps The biggest share in the soap market, popular soap have a market share of 55%. The price of this category of soaps ranges from Rs. 8-12 for a 75 gm cake. Each soap wants to posses a special benefit like fragrance, freshness etc. 3.
Premium soaps It comprises of 7% of the total market. Premium brands are priced in Rs. 12-30 range for 75 gm cake. People are willing to pay more for this category of soap and several other brands have special relationship and people. Some of the premium brand rolling market once Cinthol ultimate, Lux International, Palmolive extra care, Le Sancy, Dettol, etc. to name a few.
4.
Super premium soaps : This category soap is the most tiniest part in the soap market and have a share of only 24% of the total soap market. The price range starts from Rs. 30 and above for 75 gm.
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Market Share (Soap)
7% 3% 35%
Economy Popular Premium Super Premium
55%
The economy soap constitute 35% of market share, popular soap constitute major portion of market share, 55% then premium and super premium constitute 7% and 3% respectively.
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Segmentation of soap on the basis of price
4%
10%
Rs. 5-8 Functional Rs. 9-12 P opular Rs. 13-30 P remium Rs. 30 above supre P remium
43% 43%
From the above figure, it is very much clear that most of the toilet soaps available in India fall into the category of popular and premium soaps, both of these groups accounts 43%, functional soaps accounts 10% and there is small percentage for the super premium soaps.
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List of soaps with their segments and prices (prices 75-100 gms.)
Functional /Economy
Popular
Premium
Super Premium
Rs. 5-8
Rs. 9-12
Rs. 13-30
Rs. 31 and above
Breeze
Nima
Palmolive Extra
Dove
Jai
Medimix
Lux Skin Care
Palmolive Natural
Hamam
Pears
Lifebuoy
Rexona
Nevia
Borosoft
Johnson Baby Soap
Margo
Doy
Liril
Johnson Kids
Neem
Denim
Fair Glow
Fa
Cinthol
Park Avenue
Segmentation of soap on the basis of TFM (Total Fatty Matters ) contents
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4%
10% Rs. 5-8 Functional Rs. 9-12 Popular
43%
Rs. 13-30 Premium 43%
Rs. 30-above Super Premium
TFM 60-65%
TFM 66-70%
TFM 71-75%
TFM 76-80%
Medimix
Jai
Breeze
Dove
Palmolive natural
Lux
Hamam
Nima
Lifebuoy
Neem
Rexona
Fairglow
Lifebuoy gold
Borosoft
Liril
Dettol
Pears
Cinthol
Denim
Nevia Lux Skin Care Palmolive Extra care Park avenue
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Doy Fa Johnson Baby soap Aramusk
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People who wants natural products •
Medimix
•
Hamam
•
Margo
•
Neem
•
Rexona
•
Borosoft
•
Palmolive
Soaps which are general to all •
Dettol
•
Hamam
•
Margo
•
Lifebuoy
Soaps which were launched specially for men •
Cinthol 21
•
Park Avenue For kids and children
•
Johnson baby soap
•
Johnson kids
•
Doy For women specially
•
Lux skin care
•
Pears
•
Nevia
•
Dove
•
Palmolive extra care
•
Fairglow
•
Rexona
•
Nima
•
Borosoft
•
Breeze
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HINDUSTAN UNILEVER LIMITED
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Breeze scent magic is the soap which fulfills the aspirations of women of rural India. Breeze has offered them ‘beauty at an affordable price, making them look and feel beautiful.
Research and consumer visits have shown that the desire for great fragrance featured highest in the daily beauty regime of discount soap users.
Breeze explores this through the
proposition of scent in a soap scent ka kamala, ab sabum mein’ and explicitly propagates the brand promise of the Hameshaa Kuchh extra. It delivers all this and still matches consumer’s needs in terms of price and quantity offered staying true to its word.
Breeze has been enriched with 19 special scent oils, which ensure that one smells good for a long time though the day. Introduced in variants like scent magic, scent magic lime, and scent magic sandal, Breeze strives towards fulfillment the company’s mission of being inventive in creating value.
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Brand Name : Breeze About the Brand : Originally launched in 1989, Breeze is today perceived to be a good value for money brand – with outstanding sensory experience. Its strengths are its fragrance, lather and the soft feeling it has on the skin. Target : Breeze is a mass market soap that sells in the economy segment. It targets to the people who wants to feel fragrance during the bath. Positioning : Breeze is positioned for her who considered it as more than just soap. It is, in fact, her beauty aid, her only cosmetic, and one that she can afford. She regards Breeze as her only way of fulfilling her dream of looking beautiful.
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Brand Name:- Dove About the Brand:-Dove soap, which was launched by Uniliver in 1957, has been available in India since 1995. It provides a refreshingly real alternative for women who recognize that beauty is not simply about how you look, it is about how you feel. Target:- It targets specially women of rich class. Positioning:- Dove is being positioned as an alkaline substance free soap with one fourth moisturizer for highly sensitive skin. Price:- Rs. 45 (100gms.) Advertising objective:- to influence the rich women who wants moisturizer not the soaps. Advertisement strategy:- It project itself as not a soap but as moisturizer. Sales promotion:- Rs. 10 off. Available range & size : 100 gms
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Brand Name : HAMAM About the Brand : It is a product from HUL Target : It targets to the middle class Indian Family. Positioning : It positioned as a family soap with natural ingredients. Price : Rs. 10 (100 gms) Advertising objective : It is to emphasis on the natural quality of the soap. Advertisement Strategy : It project as a natural product for every Indian middle class family. Sales Promotion : No scheme Available range & size : 100 gms
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Brand Name : Lifebuoy About the Brand : Launched in the year 1895, Lifebuoy, for over a 100 years, has been synonymous with health and value. Target : The new Lifebuoy is targeted at today’s discerning housewife with a more inclusive “family health protection for my family and me” positioning. Positioning : Lifebuoy has made a deliberate shift from the male, victorious concept of health to a warmer, more versatile, more responsible benefit of health for the entire family. Brand Name : Lifebuoy International Gold About the Brand : The brand was launched by Hindustan Level Ltd. This soap is not a red carbolic soap as Lifebuoy normally is. Target : It targets to the every Indian family starting middle class. Positioning : It positioned as a family a soap Price : Rs. 10. Advertisement strategy : The strategy they followed was to emphasis on the quality aspect of the soap as well as the colour of the soap as it is totally a white in colour.
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Brand Name : LIRIL About the Brand : Product from HUL. Target : it targets to the women of upper middle class Positioning : Positioned as a beauty soap for female. Price : Rs. 15 Advertising objective : To popularize the brand by using beautiful model. Advertisement Strategy : It presented the soap as a product for women who doesn’t gave it up in any condition. Sales Promotion : No scheme. Available Range & Size : Liril Lime, Liril Aqua (75 gms)
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Brand Name : Lux About the Brand : Lux is one the biggest brands in the soap category. Lux was launched in India in the year 1905. A unique soap, which protects the skin’s fairness against darkening by the sun. Target : Lux targets the women of age group of 15-40 having the monthly family income Rs. 10000-20000 who are more concerned about taking care of skin and wants dazzling skin. It targets at the women from the middle class and above. In short, Lux has worked it charm on millions of women making their dreams of beauty come true. Positioning : Lux wants to position itself as the premium beauty care product for women, which gives them glowing skin and will help in taking care of different type of skin. Lux positiones as a Filmi Sitaron ka Soundarya Sabun” Price : 14 Advertising objective : The advertising objectives of HUL for Lux are to cover vast area (whole of India) and influence women from 350 million middle class family to use Lux according to the type of skin for radiance or glowing skin. Advertisement Strategy : The advertising agency responsible for Lux is HTA. The main aim of HTA is to project Lux as a product for dreamy women who have her skin glow like a film Stars after her bath. The recent model for this advertisement is Aishwarya Rai. 30
Brand Name : Pears About the Brand : It is product from Hindustan Liver Limited Target : It basically target to women from age group 15-45 Positioning : It positions as a clear soap as it contains glycerin
Price : Rs. 19.50 (75 gms)
Advertising objective : The objective is to popularize the brand Advertisement Strategy : The strategy they took was to project pears as a soap which contains “Kuch nehin” mean no harmful chemical. Sales Promotion : Buy 3 pears and save Rs. 8.50
Available Range & Size : 75 gms.
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OTHER COMPETITORS
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Brand Name : PALMOLIVE EXTRA CARES About the Brand : Palmolive extra care is a product from stable of Colgate – Palmolive company. Introduce in 1998 and it was able to capture a market share of 11% of the total premium market in the urban area a mainly metro and semi-metro. Target : Palmolive extra care aiming at upper middle class women and above. It target women from age group of 15-40. Positioning : Endorsed by Famina Miss India (Top model) it positioned as the extra skin care taker, i.e. for different skin, different soaps are used. Price : Rs. 14.50 (75 gms) Advertising objective : The advertisement objective of Golgate Palmolive Ltd. was to popularize the brand and to influence the upper middle class women of urban and semi-urban area. Advertisement Strategy : Redeffussion Dy & R who is handling this account apply certain strategy to achieve the advertisement objective. Available Range & Size : Palmolive extra care green for normal skin Palmolive extra care white for dry skin, Palmolive extra care pink for oily skin. (75 gms and 125 gms). 33
Brand Name : FA SOAP About the Brand : The strength of the fa soap is its mild fragrances. Target : It targeted the women class from middle class and upwards. Positioning : It position as a soap for women. Price : Rs. 15 Advertising objective : The advertising objective of Henkel India Ltd. to influence the women. Advertisement Strategy : The advertisement strategy is to present Fa as a soap for women who wants soft skin. Sales Promotion : No scheme. Available Range & Size : 75 gms and 125 gms
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Brand Name : Dettol
About the Brand : It is a product from Reckitt Benckiser. Ltd. Target : It targets every upper Indian middle class family. Positioning : It positioned as a soap which makes family “Surakshit” Advertising objective : It is to present Dettol as a product for skin security. Advertisement Strategy : Emphasis on Suraksha part of dettol, i.e. “dettol suraksha” Sales Promotion : No scheme.
Available Range & Size : 125 gms
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Brand Name: NIMA About the Brand: It is the product from Nirma Ltd. Target: It caters to the needs of women of age group of 16-30. Positioning: It positioned as a soap for women. Price: Rs. 10 Advertising Objective: To attract the women from middle class and upward family. Advertisement Strategy: Strategy was to project the soap that could make women more beautiful and feel young. Sales Promotion: No scheme
Available Range & Size: Nirma Rose, Nima Sandel (100 gms)
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Brand Name: FIAMA DI WILLS About the Brand:. Launched on September 15, 2007, the brand was the second to roll out of ITC’s personal care stable. Its USP is the blend of "nature and science" across its portfolio of products, resulting from four years of intensive research at the ITC Research and Development Centre in Bangalore Target: It targets to the women who likes to take care of her skin by intense moisturizer. It targets women of age group from 15-35. Positioning: Position as soap with natural ingredients. Advertising Objective: to influence the women who want star gazing. Advertisement Strategy: Promote Wills Lifestyle Fashion Week 2010 was also sponsored by Fiama Di Wills. Sales Promotion: heavy consumer schemes Price: Rs.18 Available Range & Size: 120 gms. 37
Brand Name: JOHNSON BABY SOAP About the Brand: Enriched with Johnson’s Baby Oil, this is the mildest gentlest and completely safe soap, to use on baby’s delicate skin. Target: Johnson baby soaps targets all the baby upto the age of 2 years. Positioning: It position as a soap without any harsh chemical and will take care of baby’s sensitive skin. Price: Rs. 23 Advertising Objective: To influence the parents and wants their baby should taken care by mildest and completely safe soap. Advertisement Strategy: The main aim of advertisement strategy is to project Johnson baby soap with no strong perfumes, no colouring agents or any harsh chemicals that will strip away the skin’s natural microbial flora. Causing no allergy or irritation to baby’s skin. Sales Promotion: No scheme is available now. Available Range & Size: 100 gms. 38
Brand Name: Fairglow About the Brand: Fairglow has a unique Bio-extract ‘Natural Oxy-G’ that is of vegetable origin and absolutely safe. Its natural action involves reduction of the black melanin in the skin without changing the skin’s natural balance. The Natural Oxy-G also helps remove blemishes to give the user a smooth and glowing complexion.
FAIRGLOW therefore,
provides fairness for the face and the whole body without any extra effort. Target: It targets to the every women of India who wants to have fair-bright complexion. That is why it was one of the top successful brand of 2001. Positioning: It position as a beauty soap with Natural Oxy-G which help the skin to reduce black melanin without changing skin’s natural balance. Price: Rs. 10 Advertising Objective: The objective is to attract every women of the country who looks for better complexion. Advertisement Strategy: It project the soap which could make the face and whole body more fairer without any extra effort and give twin advantage of clean and fresh bath. Sales Promotion: No scheme is given. Available Range & Size: 75 gms and 125 gms.
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Brand Name: NEW CINTHOL SKIN FRESH About the Brand: NEW CINTHOL SKIN FRESH is a unique toilet soap with Orange extracts which gives freshness along with skincare. Orange is an ingredient known for its skin benefits since times immemorial and CINTHOL SKIN FRESH offers the same benefits in the form of soap for a Fresh and Lively skin to all its consumers. Target: First it targeted to the men now the new Cinthol Skin Fresh targets to the all people from young to old. Positioning: It position itself as the beauty soap which keeps the people fresh. Advertising Objective: The objective is to influence all the people who always try to keep themselves fresh. Advertisement Strategy: The advertisement strategy is to project new Cinthol Skin Fresh soap as an element of freshness as well as cleaning. Available Range & Size: Cinthol Regular (100 gms), Cinthol International Lime (100 gms), Cinthol Lime Fresh (75 gms, 125 gms.).
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OBJECTIVE OF THE STUDY
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OBJECTIVE OF THE STUDY
Study the comparative study of HUL, P&G, Nirma, Johnson & Johnson and Godrej in respect of Price, Promotion and consumer demands. To study the market share of HUL in Ghaziabad territory. The check out the how much population uses HUL of P&G products. To analysis the sales trend in three years.. My research objective is to do the survey of small samples in various parts of Ghaziabad and fill up the Questionnaire by them. To study the consumer behavior pattern in Ghaziabad. My research objective is to make out the research for the companies with the less expenditure on the research process with the maximum amount of profit by the research done. To check out which one of the company expands more money on their advertisement. To study the future strategies of HUL for Ghaziabad territory
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RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY Classification of Marketing Research (Based on subject of research) The various marketing research problems can be classified based on subject matter of research as shown below:
Research on products
Research on market
Research on consumer
Research on advertising and promotion
Research on distribution
Research on price
Research on competition
Research on sales
This project has followed all the above criteria’s and following things are taken into consideration for the preparation report :
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Research Design A research design is purely and simply the focus of the study in on studying the banner advertising is conclusive in nature that guides to the collection and analysis of data. The descriptive research design has been used in this project, because consumer’s feedback was necessary for obtaining the data. Data sources Primary data was collected by the questionnaire based marked survey. Secondary data was obtained from journals, magazines newspapers, books and the internet. Research Instrument For doing the survey research, structured questionnaire with both open ended and close ended questions were used. Mode of Survey The mode of survey was personal interview with the respondents during the filling up of the questionnaire. Sampling The sampling used for this study was probability sampling. Since the study is only meant for certain specific categories within the total population, a stratified random sample was used. Three groups of categories have been taken into account viz. students professionals and general public. Sample Size A sample size of 150 respondents is used for the study. 45
Sample Unit This study was basically an opinion survey of the male of female in category of students, professionals and section A, B, & C people. Place of study The study and survey is done in national capital region only.
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COMPARISON OF MARKET SHARE OF HUL, P&G, GODREJ, NIRMA, AND J&J
10%
4%
12% 59% 15%
HLL P&G Godrej Nirma Johnson & Johnson
After research done by me I analyze that the market shares of the HUL products was greater than other companies, which shows that the acceptance of HUL products are more by consumer.
The percentage of market shares are as follow:
The market share of HUL is 59% of the total of consumed products.
The market share of P&G is 15% of the total of consumed products.
The market share of GODREJ is 12% of the total of consumed products. 47
The market share of NIRMA is 10% of the total of consumed products.
The market share of JOHNSON & JOHNSON is 4% of the total of consumed products. Therefore HUL is considered as the one of the most branded and reliable company and the product are frequently accepted and used by each and every category of consumer. And the HUL put its all effort to maintain its standard with respect to price and the quality of the products.
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2.
The brands generally demanded by the consumer. I.
HUL demanded approximately 60%.
II.
P&G demanded approximately 15%.
III.
NIRMA demanded approximately 15%.
IV.
JOHNSON & JOHNSON demanded approximately 10%.
70% 60%
HLL demanded (Approx.)
50% P&G demand (Approx.)
40% 30%
Nirma demanded (Approx.)
20%
Johnson & Johnson demanded (Approx.)
10% 0% 1
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Graphical representation of the brands demanded by the consumer 1.
On the question that how much the brand name of the soap is important for the consumer during the purchasing of the soap. Near about 40% are causes about the brand names of the soap, 25% are not, about 20% used regular brands and 15% of them are not answered.
50% Serious about the brands
40%
Not serious
30% 20%
Usually used same brands
10%
Not answered
0%
50
DATA ANALYSIS 1.
After the survey (150 samples) the population understands the soap by its brands regarded with quality. The results are: I
30% known by the company name.
II 45% known by the quality of the soap. III 10% known by the identifying the name. IV 15% known by the types of the soaps.
50%
Company name
40%
20%
Quality of the soap Identifying name
10%
Types of the soap
30%
0% 1
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2.
Mostly consumer uses. I
HAMMAM 5%
II
DETTOL 9%
III
LUX 28%
IV
LIRIL 20%
V
BREEZE 8%
VI
DOVE 3%
VII
PEARS 4%
VIII
LIFEBOUY 13%
IX
NIRMA 14%
X
OTHERS 6%
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30% 25% 20% 15% 10% 5% 0% 1
53
Hammam Dettol Lux Liril Breeze Dove Pears Lifebouy Nirma Others
The individual rates their present soap by the following qualitiesI
Packaging of soap 15%
II
Company name 20%
III
Price of the soap 30%
IV
All of the above 35%
40% 30% 20%
Series1
54
All of the above
Price of the soap
0%
Company name
10% Packaging of soap
3.
All the individuals preferred to change new brand of the soap. I
Frequently changes the brands 10%
II
Rarely changes the brands 40%
I
Punctual on one brand 45%
II
Changes according to the climatic situation 5%
40% 30% Series1
20%
55
All of the above
Price of the soap
0%
Company name
10% Packaging of soap
4.
5.
The factors which make the consumer to purchase the soap as rated. I.
Parent suggestion 35%
II.
Friends suggestion 15%
III
T.V. advertisement 25%
IV
Owned suggestion 25%
40% 35% 30% Parent suggestion Friends suggestion T.V. advertisement Owned suggestion
25% 20% 15% 10% 5% 0% 1
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6.
After the survey of 50 samples I analyse that large family uses-. I.
HUL 45%
II.
P&G 15%
III
JOHNSON & JOHNSON 10%
IV
NIRMA 30%
V
OTHERS 5%
45% 40% 35% HLL P&G Johnson & Johnson Nirma Others
30% 25% 20% 15% 10% 5% 0%
1
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7.
After the survey of 50 samples I analyse that small family uses-. I.
HUL SOAPS 30%
II.
P&G 15%
III
JOHNSON & JOHNSON 20%
IV
NIRMA 30%
V
OTHERS 5%
35% 30% 25%
HLL Soaps P&G Nirma Johnson & Johnson Others
20% 15% 10% 5% 0% 1
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8.
In the premium segmentation of the soap the rich people usesI.
Pears 30%
II.
Dove 55%
III
Camey 10%
IV
Doy 5%
60% 50% 40%
Pears Dove Camey Doy
30% 20% 10% 0% 1
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PRODUCT DIFFERENTIATION Product differentiation is apart of marketing tools so it is very common in FMCG sector also. Differentiation means variation of product by means of form, feature, style and many more. The product differentiation which occur in soap industries are as follows:
•
FORM: Some soap are oval some are rectangular and some are almond shape some also have the shape of animals, some found in 75 gms, and some are 125 gms and are found 150 gms.
•
FEATURE: Some soaps are herbal, some are non alkaline and alkaline.
•
PERFORMANCE: Some soap melt less in water and some melt quickly.
•
PACKAGING: Little soap is wrapped in paper pack and little soap is found in visible plastic pack.
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ADVERTISEMENT EXPENDITURE
Advertisement plays a vital role in marketing of products. Few years’ back the ratio between advertisement and sales promotion was 70:30 but this ratio changed dramatically. Now the ratio between advertisement and sales is 40:60. It is believed that sales promotion is effective if it is backed by advertisement. All the manufacturer of FMCG product spent huge money in advertisement. Advertisement Expenditure of HUL Advertising spends increased by 5 percent in CY 2004 unlike popular market perception that HUL had cut back ad spend.
However, the company is now focusing attention on
rationalizing its brand portfolio from 110 to 30.
Rs in mm Advertising
2006 Dec
2005 Dec
14,040
13,540
86,230
81,850
16.3
16.5
and Promotions Sales % of Sales
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140 120 100 80
Advertisements
60
Sales
40
2005 Dec
0
2004 Dec
20
Godrej Consumer Private Limited, the other major player in Indian soap market has decided to spend Rs. 1bn in advertisement and promotion in 2004. In 2003 they spent Rs. 500 mn advertisement and promotion.
Colgate – Palmolive, Nirma, HENKEL-Spic Ltd., VVF Limited, the other player in Indian soap market are not behind too much in spending for advertisement and promotion.
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FINDINGS OF STUDIES After the research of my study I found that •
Lower class people use Nirma & Lifebuoy because it cost price is very less and they can afford to buy it.
•
Middle class people uses Lux, Cinthol & Liril because these are economical soaps.
•
Upper class people use Camay, Pears & Dove these soaps tell of high society.
•
Most people like HUL products because it has got varieties of products.
•
Lux & Breeze are favorites of women.
•
Johnson & Johnson have targeted the children and they have achieved it.
•
People say that price of Dove & Pears should be economical to all categories.
•
People demands for Nirma soaps mostly because it is economical.
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SUGGESTION AND RECOMMENDATION
On the basis of my studies I want to suggest that P&G has to make out the more products varieties according with different product segmentations same as the HUL did to grasp the market shares. Because any company stands in the competitive market should have lot of varieties of products to overtake the entire market. The P&G has to check out there pricing strategy because the price of the HUL is much lesser than P&G and other companies. The sales and promotional activities of HUL is very effective than other competitive companies. The HUL invest more money on advertisement and it also emphasize on the dealer network distribution with the help of there talented marketing executives. Therefore, I suggest to other related companies that they should emphasis on there sales and promotional activities and should make there proper marketing strategy. Last but not least the channel of distribution, packaging, segmentation and moreover only after the proper marketing research they should launch their new products in the market to grasp the entire market and increase their market shares.
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CONCLUSION Heat and dust are integral part of Indian climate. This makes Indian as one of the ideal market for soaps and other cleaning products. As we know that the consumer keeps limited inventory of soap products and prefers to purchase them frequently, as and when required. Many of these products are perishable. The penetration of bathing soaps is 98% of all households. The research study shows that the per capita consumption of bathing soap is 513gm. So there is a very big market for soap in India. The total turnover of soap or market in India is 54 lakhs tone per annum and is increasing at the rate of 5% per annum. In which HUL is the market leader with 59% of share followed by godrej. Other major players are Nirma Ltd., Colgate-Palmolive Ltd., Henkel-Spic India Ltd.
The soap market is not only
segmented on the basis of price and benefits but even a range of emotions within that outlining frame work. Therefore according to research done on the soap industries I have reached to the following conclusions•
The frequent used soap was Lux (28%) then Nirma (14% the second position.
•
The appealing factors are soaps were price which was followed by size then the medicinal qualities and so on.
•
The person ‘self’ was having the highest percent in decision making for buying soaps.
•
58% were male respondents and 42% were female.
•
The age group of the respondents was highest between 20 – 30 years in the sample design.
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BIBLIOGRAPHY 1. •
www.HUL.com Marketing Research (Author- G C Beri) (Publish by Tata McGraw Hill Publishing Co. LTD., New Delhi) Third Edition (2002)
•
Marketing Management (Author- Rajan Sexana) (Publish by Tata McGraw Hill Publishing Co. LTD, New Delhi) Second Edition (2001)
•
Marketing Management (Author- R S Sexana) (Publish by Himalaya Publication, New Delhi) Ninth Edition (2000)
•
Marketing Management (Author- Philip Kotler) (Publish by Pren Tice-hall of India PVT. LTD., New Delhi) Ninth Edition (2002)
•
Research Methodology (Author- Bhandrai) Print 2004, second edition
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QUESTIONNAIRE Information Requirement I.
Consumer perception of brands and the important they attach the brand name.
II.
The extent to which the consumer think the following attributes company name, shape, skincare.
III.
The buying process involved in the selection of soap.
IV.
Consumer attitude towards retreating.
Questions1)
which company’s soap do you use regularly?
HUL 2)
P&G
Godrej
What do you understand by the term “brand” of soap? i)
Company Name
ii)
Quality of the soap
iii)
Identifying name
iv)
Type of the soap 67
Nirma
J&J
3)
Please name some soap companies that you have heard of.
4)
How important us the brand name of a soap?
5)
6)
i)
Not important
ii)
Important
iii)
Very important
How do you rate your present soap the following qualitiesi)
Packaging of soap
ii)
Company name
iii)
Price of the soap
Are you satisfied with the overall performance of your present soap? i)
7)
Satisfied
ii)
dissatisfied
Have you ever change new brand of soap. i)
Yes
ii)
No
8)
Did you change both the soap at the same time and one time?
9)
What do you want change over to the present soap?
10)
How did you decided that your replacement? i)
Your friend
ii)
your own 68
11)
12)
13)
What are the factors that you considered when you purchase the soap? i)
Parents suggestion
ii)
Friend suggestion
iii)
T.V. Ads
In the premium segment which soap do you use?
(i)
Pears
(ii)
Dove
(iii)
Fiama di wills
(iv)
Doy
What are the factors that you considered when you purchase the soap? i)
Company name
ii)
Price of soap
iii)
Past experience
iv)
Advertising
69
14)
KINDLY TICK the once you have heard of company
i) Lux vi)
ii)
Hamam
Doy
iii)
Dove
iv) Cinthol
vii) Liril
viii
Breeze
ix) Nivia
v)
Dettol
)
15)
Which company’s advertisement do you prefer more?
i)
HUL
ii) P&G
iii)
Nirma
PERSONAL INFORMATION 16)
17)
Your age group
i)
18 – 25
ii)
25 – 35
iii)
35 – 50
iv)
50 - above
Your family income
i)
4000 – 6000
ii)
6000 – 8000
iii)
8000 – 12000
iv)
12000 - above
70
iv) Godrej
v)
J&J
18)
18)
Your educational qualification
i)
High school
ii)
Intermediate
iii)
Graduation
iv)
Above
What is your occupation status?
i)
Own business
ii)
Service
iii)
Students
iv)
Unemployed
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