Soap Introduction

Indian Premium Soap Market
Soap Market :
The Indian Soap market consists of retail sales of bath and shower products. The
Indian soap and hygiene market has experienced strong double digit growth in
recent years(13.4% in 2013 to a value of $ 23.16 Billion Dollars). This is predicted to
continue through the forecast period, but at a decelerated rate (Market Line
Industry profile : Personal Hygiene in India, August 2014). Unilever is the biggest
player in the Indian Soap Market, generating 44.7 % share of the market value.
Additionally, Market consumption volume increased with a CAGR of 7.3% between 2009 and 2013, to reach a total of
6,800.6 million units in 2013. The market's volume is expected to rise to 8,859.9 million units by the end of 2018,
representing a CAGR of 5.4% for the 2013-2018 period.
Indian Soap Market 2009-2013

Market Value
Market Share
Unilever is the leading player in the Indian soap Market with multiple products across the price points . It has 44.7%
share of the market value . Godrej is the second in the list with 12.2 % of the market.
The market has several, leading national and global brands and a large number of small brands.
The popular and premium brands include Lux, Cinthol, Liril, Rexona, and Dove.
As the market is constituted now, it can be divided into four price segments: premium, popular,
discount and economy soaps. Premium soaps are estimated to have a market volume of about 14 to
15% of the market size.
Market Distribution :
Independent retailers form the leading distribution channel in the personal hygiene market , 68.2 %
of the market share . The table below from Marketline gives a better picture of the distribution
channel:
Project Scope :
The scope of the project is to study the premium Indian soap market marketing mix. Though we have
analyzed the marketing mix of the premium Indian soap market, we have taken specific example of Dove
soap of Unilever brand to justify our analysis.
CUSTOMER DECISION MAKING PROCESS

The customer decision making process for soap encompasses the following methodology, going
through five stages which are as follows:
Initial problem awareness and need recognition are often triggered by a feeling or desire to fulfill
a need. Individuals, who purchase premium soap, do so for personal reasons, but one of the main
reasons is for skin nourishment. Therefore, consumers purchase it to fulfill both the basic and the
augmented needs. Family and advertisements are often the first stimuli which trigger need
recognition and problem awareness Need recognition and problem awareness could arise from
perceived quality differences or be triggered by a desire for higher quality product.
Information search is where individuals will obtain information. This could begin with members
of his/her peer group including friends, family regarding their own perceptions and knowledge
These individuals may also utilize other sources such as Marketing mix touch points to further
his or her knowledge about the product.
The evaluation of alternatives will be different for each individual, but would often include
assessments of the product itself for features such as skin care, hygiene, and fragrance etc. It
would also include brand perception of the product and its parent company. In the context of
purchasing a soap, consumers feel it to be a low involvement but a habitual purchase. The woman
of the house is normally considered as the ultimate decision-maker in terms of this kind of purchase.
After the final purchasing decision, the last stage includes the post-purchase evaluation, whereby
the individual would examine the purchase. Often, cognitive dissonance arises when the
individuals expectations are not met. Therefore, companies spend a lot of money on quality
control and R/D so that the consumers get a consistent and a good experience of using the
product.
About 75% of soap can be bought through these different types of outlets:
Kirana Store: This is the most common source for buying soap, which usually forms a part of the months
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.
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.
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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Indian Premium Soap Market

Indian Soap Market 2009-2013

CUSTOMER DECISION MAKING PROCESS

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