Soaps Project Report
Soaps Project Report
Soaps Project Report
In fulfillment for the degree of M.B.A. Session 2011-2013 UNDER THE GUIDANCE OF: MS. NIDHI PUNJ Asstt P rofessor M.B.A (Dept.)
Swami Devi Dayal Institute Of Engineering & Technology Barwala, Panchkula (Haryana)
ACKNOWLEDGEMENT
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The best way to have a good idea is to have a lot of ideas. I sincerely feel the credit of the project work could not be narrowed done to only one individual. Large number individual have contributed directly or indirectly in this project. I am thankful to all of them for their help and encouragement. I am also grateful to all the respondent who have really taken time out of their busy schedule & responding quickly which helped me to completed the study in time. Lastly , I would also like to thank my faculty Ms. NIDHI PUNJ for his constant guidance and support.
PREFACE
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In todays competitive age, practical knowledge is more significant than theoretical knowledge. Today practical training and knowledge play very important role in every discipline. One should be practical in this competitive age. As a management student, I have got opportunity for practical training. Through which I understood of practical training. It is truth that no work is completed in itself. In fact, completion of job is actually the beginning of another job. I have prepared report on CREATIVE STUDY ON DIFFERENT BRAND OF SOAPS The project report is made very clear with the help of relevant data gathered from the company through survey conducted at employees. If any mistake or fault has occurred in this project report, it is purely due to over sight. Any advice or suggestion regarding this report will be appreciated.
THANK YOU
DECLARATION
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I hereby declare that the report on CREATIVE STUDY ON DIFFERENT BRAND OF SOAPS. Is a result of my own work and my indebtedness to other work publication, if any have been duly acknowledged. I also declare that this project report has not been submitted previously to any other university or institute for the award of any degree.
TABLE OF CONTENTS
Sr. NO.
CONTENTS
PAGE NO.
III IV V VI
Chapter I
7-19
Chapter II
INDUSTRY PROFILE
20-23
Chapter III
RESEARCH METHODOLOGY 25-30 Research design Data Collection Techniques Scope of the study Objectives of study Significance Limitation of the study 31-39
Chapter IV
Chapter V
40-42
Chapter VI
41 42 44-46 47
(1) INTRODUCTION
Introduction
Every business is trying to make their products more popular and thereby try to be successful. But all the businesses do not attain success due to several reasons. One of the most important reasons is customers' behavior. It is very difficult to predict and understand this. Obviously, it becomes important for every business to concentrate on consumer and their behavior. The primary work of the business in the olden days was to concentrate only in the production areas. But the trend today is totally different as the important goes on with marketing production. In the competitive world of business without paying importance on marketing the business will never be successful. Brands may occupy a particular niche in consumer mind. Powerful brands influence consumer so much that it becomes difficult for them to shift their (customer) preference to other products, lux, rexona dove santur & lifebuoy. In this competitive modern age, where different qualities and types of goods exist, branding is of special importance in the business world. Branding not only gives a separate identity brand preference. Branding is a powerful instrument of demand creation and demand retention. Customers are aware of and prefer a particular brand when it is available for purchase. In the earlier days people used to buy any brand available in the market. But now days they make enquiries regarding the best brand available. They have realized that quality of product matters most. Thus the buyer displays a good deal of awareness regarding the brand. In India there exists a cutthroat competition among the soap makers. The competition among them is growing day by day. Indian customers today not only have a wide variety of brands to choose from, but also the option to buy soap, which they think, is better for use.
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One great challenge to the soap industry that there are a lot of unbranded soaps in the market. At one end of the market of soaps branded segment is there and at another end unbranded soaps are there. This study is totally confined to the brand preference of the branded soaps customers and various factors that initiate them to buy them among different available brands.
transportation, luxuries services even ideas. The consumption behavior affects the demand for basic raw materials for transportation, for production, for banking, they affect the employment of workers and the deployment of resources, the success of some industries and the failure of the others. Thus consumer behavior is an integral factor in the ebb and flow of all business in a society. To understand the meaning of consumer behavior lets understand what different authors of consumer behavior have included in this subjectThe study of Consumer Behavior includes the study of what they buy, why they buy it, where they buy it, how often they buy it and how often they use it. Take the simple product : Chocolates- Consumer want to know what types of chocolates the consumers buy ( pure, almonds & nuts stuffed, rice crisps stuffed, wafer coated etc.), what brand ( national brand, private brand, generic brand), why they buy it (as snacks, as a sweet, mood lifter), when they buy it (super market, gift shop, convenience shop), how often they eat it (between meals, evenings, movies, on outings, with friends), how often they buy it (weekly, biweekly, monthly). In shortConsumer Behavior encompasses all the behavior that consumer display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. The person who makes a product purchases is not always the user, or the only user of the product in question. Nor is the purchaser necessarily the person who makes the product decision. A mother may buy books for her children (who are the users); she may buy food for dinner (and be one of the users); she may buy a lipstick and be the only user. Clearly, buyers are not always the users, or the only users of the product they neither buy, nor do they always the decision regarding the product selection them selves.
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SUBCULTURE Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experiences and situations. Subcultures make up important market segments and marketers often design products and marketing programs tailored to their needs. SOCIAL CLASS Almost every society has some form of social class structure. Social classes are societys relatively permanent and ordered divisions whose members share similar values, interests and behaviors, social class is not determined by a single factor, such as income, education, wealth, and other variables. In some social systems, members of different classes are reared for certain roles and cannot change their social positions,. Social classes show distinct product and brand preferences in areas such as clothing, furnishings, leisure, activity and automobiles. SOCIAL FACTORS A consumers behavior also is influence by social factors, such as the consumers small groups, family and social roles and status. GROUPS A group is two or more people who interact to accomplish individual or mutual goals. A persons behavior is influenced by many small groups.
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Groups that have a direct influence and to which a person belongs are called membership groups. Reference groups serve as direct face to face or indirect points of comparison or reference in forming a persons attitudes or behavior. An aspiration group is one to which the individual wishes to belong. Reference groups expose a person to new behaviors and lifestyles, influences the persons attitudes and self concept and create pressures to conform that may affect the person products and brand choices. Opinion leaders are people within a reference group who, because of special skills, knowledge, personality or other characteristics exert influence on others. Marketers try to identify opinion leaders for their products and direct marketing efforts towards them. FAMILY Family members can strongly influence buyers behavior. The family is the most important customer buying organization in society and it has been researched intensively. Marketers are interested in the role and influence of the husband, wife and children on the purchase of different product and services. ROLES AND STATUS A role consists of the activities people are expected to perform according to the persons around them. Each role carries a status reflecting the general esteem given to it by society. People often choose products that show their status in society.
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PERSONAL FACTORS A buyers decisions also are influenced by personal characteristics such as the buyers age and life cycle stage, occupation, economic situation, life style and personality and self concept. AGE & LIFE CYCLE STAGE People change the goods and services they buy once their life times. Tastes in food; furniture and recreation are after all age related. Buying is also shaped by the stage of the family life cycle- the stages through which families might pass as they mature over time. Marketers often define their targets markets in terms of life cycle stage and develop appropriate products and marketing plans for each stage. OCCUPATION A persons occupation affects the goods & services bought. Bluecollar workers tend to buy most work clothes, whereas white collar workers buy more suits and ties. Marketers try to identify the occupational groups that have an above average interest in their products and services. ECONOMIC SITUATION A persons economic situation will affect product choice. Marketer of income sensitive goods watch trends in personal income, savings and interest rates.
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LIFE STYLE Life style is a persons pattern of living as expressed in his or her activities, interests and opinions. Researchers have made various lifestyle classifications. PERSONALITY & SELF CONCEPT Each persons personality influences his buying behavior. By personality- we refer to the unique psychological characteristics that lead to relatively consistent and lasting responses to ones own environment. Personality can be useful in analyzing consumer behavior for certain products or brand choices. PSYCHOLOGICAL FACTORS A persons buying choices are further influenced by the following psychological factors like motivation, perception etc. MOTIVATION A person has many needs at a given time. Some needs are biogenetic. They arise from physiological status of tension such as hunger, thirst, discomfort. Other needs are psychogenesis. They arise from psychological status of tension such as need recognition, esteem, and belonging. A need becomes a motive when it is aroused to a sufficient level of intensity. A motive is a need that is sufficiently driving the person to act. Satisfying the need reduces the felt tension.
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PERCEPTION A motivated person is ready to act. How actually he acts is influenced by his or her perception of the situation. A perception is defined as the process by which an individual reflects, organizes and interprets world. Perception depends on physical stimuli and also a stimulis relation to the surrounding. LEARNING When people act, they learn. Learning describes changes in an individual behavior arising from experience. Most human behavior is learned. Persons learning is produced through the interplay of drives, stimuli, cues and reinforcement. CONSUMER BUYING DECESION PROCESS Whenever a consumer has to make purchases regarding products, he or she passes from the following five stages, which together constitute the consumer buying decision process. The following stages are as follows:
1) NEED RECOGNITION The buying process starts when the buyer recognizes a problem or need. The buyer senses a difference between his or her actual state and a desired state. The need is triggered by a external or internal stimuli. The marketers
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need to identify the circumstances that trigger a particular need and then develop marketing strategies accordingly. 2) INFORMATION RESEARCH Aroused consumer will be inclined to search for more information. Various sources of information for the consumer are personal, commercial, public and experimental source. The relative amount and influence of these information sources vary with the product category and buyers characteristics. The marketers should identify them and evaluate their relative importance. 3) EVALUATION OF ALTERNATIVES Consumer will pay attention to those attributes of the product that will deliver the sought benefits. The market for a product can be often be segmented according to the attributes that are salient to different consumer groups. The marke5ter should be more concerned with the importance of attributes than their salient benefits. They should measure the important weights that the consumer attaches to various attributes. 4) PURCHASE DECESION The consumer forms preferences among the brands in the choice set. The consumers may also form a purchase intention to buy the most preferred brand. Two factors can intervene between the purchase intention and purchase decision. These are: Attitude of Others
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Unanticipated situational factors In executing a purchase intention a person may make up to five purchase sub division. A) Brand Decision C) Quantity decision E) Payment method decision 5) POST PURCHAE BEHAVIOR After purchasing a product the consumer will experience some level of satisfaction or dissatisfaction. The buyer satisfaction is a function of the closeness between the buyers product expectation and products perceived performance. If performance falls short of consumer expectation, consumer is disappointed; if it meets expectations consumer is delighted. These feelings make a difference in whether the customers buys a product again and talks favorably or unfavorably about the product to others. B) Vendor decision D) Timing Decision
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The industry has also witnessed increased activity in the industrial variety of soaps with the entry of MNCs, which has been gaining steadily over soaps in the last one decade. The report covers both the segments of decorative & industrial varieties of soaps along with elaboration on product sub-segments within these two product segments. The typical characteristics of the Indian soaps industry have been discussed in depth covering the typical features of the Indian industry viz., raw material intensiveness, working capital intensiveness, seasonality of demand, price elasticity of demand and low entry barriers. The current global scenario with reference to the soap industry has been covered in the report with special focus on auto-coats market, which is a key growth area in the International market. The current scenario prevailing in the Indian soap industry has been pictured in detail. The share of the organized & unorganized sector has been dealt with in detail, discussing the impact of recent issues & trends (like excise duty rationalizations, quality consciousness in user segments) on the industry dynamics. The demand-supply scenario existing in the industry has been covered, detailing soap production trends in India, consumption across user segments, the trends in the exports & imports front and factors influencing pricing. Raw material is a major cost-driver in the soap industry, and thus the report provides comprehensive coverage on duty structure applicable for raw materials, the organized sector has been given an in-depth focus detailing major players, their forte, market shares of majors across product mixes & price categories.
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LUX DOVE SANTUR WHEEL JOHNSON BABY LIFEBOUY LIRIL CINTHOL FA DETTOL NIRMA FAIREVER HAMAM PEARS JAI MOTI MYSORE SANDAL
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REVIEW OF LITERATURE
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1.
2.
3. As this total study is confined to brand preference of Paints but there exists a lot of unbranded paints, coverage of which could not be possible.
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Research Methodology
Research Design The research design is Descriptive because there was no data available before.
Sampling Technique
The sampling technique used is Snowball Sampling because of the time and constrain. Sample Size Sample size is 90. Data Used The Primary Data is used in this research study. Method chosen for the research Survey and observation Method for the research is chosen in this research study.
Questionnaires are used as the data collection technique for the research study.
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Type of Questions Closed Ended and open ended both questions are used in the questionnaires for the study.
Analytical Tools
The data thus collected has been tabulated, interpreted and analyzed with a view to make the study meaningful. Data has been analyzed by using various statistical tools. Ordinal scale is used in the study to get the customers preference towards various factors and it is analyzed by Rank Total method. Bar diagram/ Pie charts are used in form of graphs for data analysis.
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(4)
DATA ANALYSIS & INTEREPRETATION
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Interpretation:- According to this table we can see that lux is the most preferable brand in. It has about 51% market share in the branded segment in the Dist. After that dove is preferred and it has about 37% market share in the Dist. Cinthol and fa has a little market share 9% & 3% respectively in the Dist.
Diagram 4.1
lux dove cinthol fa 51.11 36.67 8.89 3.33
Switched 5 11 2 1
Table 4.3
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23%
20% 7%
e m se i t r ve
nt ie Fr
s nd
i ly m a F
th O
er
< 1 lakh 12 15 0 0
1-2 lakh 18 10 2 0
>2 lakh 16 8 6 3
Interpretation: - According to this table we can see that lux is the most popular brand among soaps. Person at all income level prefers lux but at moderate & higher level it is preferred most. But lower and moderateincome level people prefer cinthol. High-income people prefer dove&fa.
Relationship b/w Income Level & Brand Preference Diagram 4.4
0 0 2 0 6 3 cinthol fa
20 15 10 5 0
18 16 12
lux
dove
cinthol
Rank 1 2 3
Neighbor
239
Interpretation: - Here we can see that Friends have a major influence on purchase decision regarding brand, so it is ranked 1 st. After friends dealer have great influence because he is the person who provide various services to the customers. After that painter & neighbors have almost equal impact on the decision regarding brand choice. Diagram 4.5
friends dealer family neighbour
1 2 3 4
300 250 200 150 100 50 0 1 friends 2 dealer 3 family 235 3 4 neighbou r 239 4 total rank 207 219 235 239
dissatisfied with other aspects of the soaps. Thus it is a difficult task to identify a single factor, which influences the preferences of the customers. It was found that the factors like quality, price, advertisement; availability, advertisement, brand image & packaging are influencing factors. It was felt that ranking the influencing factors would be reasonable. Hence Ordinal scale was used and data is analyzed by the rank total method.
Ranking of factors
Factors Quality Price Availability Advertisement Brand Image Packaging Rank total 134 270 346 374 406 411 Table 4.6 Rank 1 2 3 4 5 6
Interpretation: - From the above table we can see that quality matters a
lot for the paint customers. Whenever customers purchase any soaps they look for the quality first. So quality is the most important factor in soaps. After quality it comes the price and availability. People look at the prices and availability while purchasing paints. Other factors such as advertisement, brand image, and packaging are relatively low important factor. During the study it was also interpreted that advertisement was the major source of information but it has low impact regarding brand choice. Means advertising is not an important factor for the brand choice for the customers.
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Diagram 4.6
374
406
411
e av ai la bi l it ad y ve r ti se m en br t an d im ag e pa ck ag in g
qu al it
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(5)
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Conclusions &Suggestions
CONCLUSION
Today there are numbers of brands available in the market and they differ in price, quality, capacity, type etc. In the present technological era, it can be easily said that all middle class as well as lower class people are using branded paint because they see the long-term benefits. By considering this situation producers have come up with different brands. But customers prefer to purchase their favorite brands due to various reasons. It is obvious that the quality, price, advertisement, brand name, dealers network and after sales service together decide the purchase. The present study reveals that
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majority of the respondents prefer to buy the lux for its best quality and reasonable price. So the manufacturers shall pay special attention to the factors and to the problems revealed by the customers. If these things have been seriously considered by manufacturer of soaps their business will increase and can enjoy with good amount of goodwill
Suggestions
1. The first suggestion is to the manufacturers of sopas should improve the quality of soaps and the coverage should be more than the present so that the people are willing to buy at the same prices. 2. One suggestion to all producers to reduce the prices because the people think that the prices are high and as compared to that quality is low.
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(6) ANNEXURE
QUESTIONNAIRE
Dear Sir/Madam, I am conducting a survey on issue Brand Preference of soaps:. It is part of my MBA Program. Therefore kindly provide necessary information. (Personal Information) Name __________________ Age Below 20 20-30 30-40
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More than 40
Occupation/Profession Business Income (pa) Below one Lakh Residence In Village Town City 1 to 2 Lakh More than 2 Lakh Service Farming Other________
-------------------------------------------------------------------------------------------Q1. Have you ever purchased soaps? Yes No (If no than go to question no. 7.) Q2. Which brand you purchased? ____________ Q3. When you purchase most?
Q4. How did you get known about that brand? Family Friends Advertisements other______
Q5. Who influence your decision regarding brand choice? (Give Rank) ____________Rank Dealer friends Neighbors Q6. Will you recommend this brand to others?
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Yes
No
Q7. Which soaps brand u remember ________ ________ ________ ________ ________ ________ Q8. Are you planning to purchase this brand in future Yes No
If yes, which brand you will like to purchase? __________ Q9. Rank the factors given below which influence you while purchasing paint Factors Rank --------------------------------------Quality Price Advertisements Availability Brand Image Packaging Q11. What are the problems ever faced by you using soaps 1. 2. 3. 4. 5. Less coverage Low quality but high price Lack of knowledge for usage None of these All of these
Suggestions if any
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________________________________________________________ ________________________________________________________
(Thank You)
BIBLIOGRAPHY
Beri,G C; Marketing Research, Tata Mc Graw Hill, New Delhi, 2002 Cothari,C R ; Research Methodology, New age International (P) Ltd., 2003 Selvaraj, A; Brand Preference of soaps an journal Marketing, New Delhi, Volume: XXXIII, October 2003.
Internet.
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http:www.indiainfoline.com http:www.google.com
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