consumer behavior towards mysore sandal soaps
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financeTRANSCRIPT
A STUDY ON CONSUMER BEHAVIOR TOWARDS MYSORE SANDAL SOAPS
(A BRAND OF KARNATAKA SOAPS & DETERGENTSL.T.D.)
Submitted in partial fulfillment of theRequirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
Under the Esteemed guidance of
PREFACE
With the globalization & liberalization, business management has becomes so difficult
and environment so complex that nothing less than “The Best “can survive in this
business world. So the business manager must not only be acquainted with the latest
management tools and techniques, but he should also know how to implement them.
“Theory without practice is sterile; practice without theory is blind”. So no,
doubt, class room is important but at the same time, project is also an integral part of a
future manager’s curriculum .It gives him a chance to apply the concepts in real life
situations.
As students of management it is learning experience to analyze an industry. It is the
most essentials tools for us to expose our skill as a future responsible managerial post.
So, I decided to take a project on Soap industry. The report contains the detail
information about consumer behavior regarding Mysore Sandal Soap. What are the
factors taken into account while purchasing soap product and what are consumer’s
thinking about Mysore Sandal soap as a brand.
I have tried my best to get the necessary information for project which includes
secondary as well as primary data.
ACKNOWLEDGEMENT
The project of such magnitude cannot be accomplished without the assistance and co-
operation of several people. Exchange of ideas generates a new object to work in a better
way. So, whenever a person is helped and co-operation by others, his heart is bound to
pay gratitude and is not merely formalities but an expression of deep sense of gratitude
and cumulative appreciation.
Now first and foremost, I feel highly obliged to MOHAN (H.R.D), Mr. A. RAVI Asst.
Gen. Manager (Marketing) who got me placed for project and helped me in collecting
necessary information.
I would like to mention something special about my project guide Mr.
_____________________________and making acknowledgement that without his kind
co-operation, attention, wise guidance and a regular feedback from me, my mission
would not have been fulfilled its milestone. I have not the desired word power to express
my heartiest gratitude regards reverence and indebtness to him.
I also acknowledge with a deep sense of reverence, my gratitude towards of my parents
and member of my family, who has always supported me morally as well as
economically.
TABLE OF CONTENT
Chapter No.
Content Page No.
Executive Summary1 Design of the Study
Objectives of the studyResearch MethodologyLimitations of the study
2 Industry ProfileHistory of Soap
Market SizeMarket SegmentationMarket Capitalization
Factors affecting buying behaviorMarket Share
Porter’s five force modelSWOT Analysis
3 Company ProfileHistory of KSDLCurrent Profile
MilestonesObjectives of KSDLQuality Assurance
ISO 14001 policy of KSDLProduction Plants
Product Profile4 Theoretical Framework of Consumer
BehaviorConsumer Behavior
Models of Consumer behaviorFactors affecting consumer buying
behaviorBuying decision processTypes of buying behavior
5 Data Analysis and Interpretations6 Findings7 Suggestions8 Bibliography9 Annexure
EXECUTIVE SUMMARY
Soap became a necessity for the moneyed class by around 1937. Today with increase in
disposable incomes all around the world along with India, growth in rural demand is
expected to increase 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, this was due to the increase in prices which has
led some consumers to look for cheaper substitutes. The major players in the market for
the personal wash (Soap) market are HLL, Nirma and P&G.
Ind i an i s one o f i dea l ma rke t f o r soaps and o the r c l e an ing p roduc t s .
The pene t r a t i on o f bathing soaps is 98% of all households. The research study
shows that the per capita consumption of bathing soap is 513 gm. So there is a very big
market for soap in India.
Toilet soaps, despite their divergent brands, are not well differentiated by the consumers.
It is, therefore, not clear if it is the brand loyalty or experimentation lured by high volume
media campaign, which sustain them. A consequence is that the market is fragmented. It
is obvious that this must lead to a highly competitive market. Toilet soap, once only an
urban phenomenon, has now penetrated practically all areas including remote rural areas.
The incremental demand flows from population increase and rise in usage norm impacted
as it is by a greater concern for hygiene. Increased sales revenues would also expand
from up gradation of quality or per unit value.
As there is fierce competition in the market, it is very much necessary to understand
consumer behavior. This project is about consumer behavior towards Mysore Sandal
Soap. Project starts with design of the study, objectives, research methodology etc.
Second chapter is about industry profile, market size, major players etc. Third chapter is
about company profile, vision, mission and products. Fourth chapter provides details
about theoretical framework of consumer behavior. Last chapter is about analysis of the
survey done of 200 respondents to know about their buying behavior towards Mysore
Sandal Soap. Findings say majority of the consumer are aware about Mysore Sandal soap
and company has good image in the market.
CHAPTER -1
DESIGN OF THE STUDY
OBJECTIVES OF THE STUDY:
To know the awareness towards Mysore sandal soaps by the consumer.
To know the consumer likeliness towards the feature in Mysore sandal.
To know the opinion of consumer about Mysore sandal soaps.
To know the availability of Mysore sandal soap to the consumers.
To know the sales promotion activities that the consumer think is more effective
for Mysore sandal soaps.
To evaluate the perception of consumer towards the Mysore sandal soaps.
To know the effect of advertisement on consumers.
◈ RESEARCH METHODOLOGY
Research Design
A research design is the arrangement of the condition for collection and
analysis of data. Actually it is the blueprint of the research project.
Research design used was descriptive type.
Source of data collection
Primary Source of Data
Primary data are those collected by the investigator himself for the first time and thus
they are original in character, they are collected for a particular purpose. A well
structured questionnaire was personally administrated to the selected sample to collect
the primary data.
Secondary Source of Data
Secondary data are those, which have already been collected by some other persons for
their purpose and published. Secondary data are usually in the shape of finished
products. External Data, was generated from magazines, research books and internet
(websites).
Sampling Design
A sample is a representative part of the population. In sampling technique, information
is collected only from a representative part of the universe and the conclusions are
drawn on that basis for the entire universe. A random sampling technique was used to
collect data from the respondents. A random sample is a sample selected from a
population in such a way that every member of the population has a equal chance of
being selected and the selection of any individual does not influence the selection of
any other. The selection is purely depends on chance. So while conducting the survey,
200 respondents were selected at random.
Sample Size : Sample size denotes the number of elements selected for the study. For
the present study, 200 respondents were selected at random. All the 200 respondents
were the user of soap.
Sample description : The respondents of this dissertation was 200 cosmetics users of
different brand of bathing soap. The respondents were personally contacted for the
purpose of the study. A questionnaire was used for survey and was answered by the
customers. Most of the respondents were in age group of 18-20; which was having a
frequency of 68, 14 respondents were in the age group of 21-24, 10 respondents were
in the age group of 24-29 and 8 respondents were more than 30 years. According to
gender wise, all were female respondents. Nearly half of the respondents were students
and a big chunk of the rest was employed women.
◈ LIMITATION OF STUDY
I have considered Ahmedabad City for survey because of time and cost.
Finding of the study was based on the assumptions that respondents have
given correct information.
Information provided by respondents may be biased.
The sample size is comparatively very small compared to the population
and there are chances that it may not represent the whole population.
The time and cost factors has affected the size of the sample.
The study is academic in nature.
The final conclusion can be also affected by some of the extraneous
variables.
CHAPTER -2
INDUSTRY PROFILE
History of Soap:
Soap is a product for many people and the lathering up can be a treasured part of a
morning or nightly routine. Whether it might be scented or unscented, in bars, gels, and
liquids, soap is a part of our daily lives. During the British rule the Lever Brothers,
England introduced modern soaps by importing and marketing them in the country. The
first company created was North West Soap Company, the soap manufacturing plant in
India situated in the city of Meerut, in the state of Uttar Pradesh. In 1897, they started
marketing cold process soaps. In 1918, Mr. Jamshedji Tata set up India's first indigenous
soap manufacturing unit when he purchased the Coconut Oil Mills at Cochin Kerala. OK
Mills crushed and marketed coconut oil for cooking and manufactured crude cold process
laundry soaps that were sold locally and It was renamed The Tata Oil Mills Company and
its first branded soaps appeared on the market in the early 1930's.
Market Size
The Indian Soap Industry includes about 700 companies with combined annual revenue
of about $770 billion. Major companies in this industry include divisions of P&G,
Unilever, and Dial. The Indian Soap Industry is highly concentrated with the top 50
companies holding almost 90% of the market. The market size of global soap and
detergent market size was estimated to be around 331M tonne in 2014-15, which is
estimated to grow to 630M tonne in the coming years. Toilet soaps account for more than
10% of the total market of soap and detergents. In Asia, the countries like China and
India are showing rapid growth in the toilet soap section. Market share of body wash was
estimated to be around 2% in 2014-15 and is showing signs of healthy growth in these
markets. India's soap market is Rs 441.75 billion.
Indian Soap Industry volume is Rs 4,800-crore. For the purpose of gaining a competitive
edge, Indian companies are now relaunching their brands with value-additions to woo
consumers across India. For instance, Hindustan Lever Ltd (HLL) has recently launched
a host of toilet soap brands which include Lifebuoy, Lux, Breeze and Liril-with value
additions. Also is in the process of rolling out 'Ayush' ayurvedic soap. The aim is to meet
the evolving needs of customers.
The toilet soaps market is estimated at 530,000 TPA including small imports where the
Hindustan Lever is the market leader. The market has several, leading national and global
brands and a large number of small brands. The popular brands include Lifebuoy, Lux,
Cinthol, Liril, Rexona, and Nirma. Premium soaps are estimated to have a market volume
of about 80,000 tonnes. This translates into a share of about 14 to 15%. However, by
value it is as much as 30%.
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.
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 socio-economic strata of consumers. 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 positioning are moving towards skin care as a value-added benefit.
Soap is primarily targeted towards women, as they are the chief decision-makers in terms
of soap purchase and for Medicated positionings like germ killing and anti-bacterial are
marketed to families. About 75% of soap can be bought through the different types of
outlets. This is the most common source for buying soap, which usually forms a part of
the month's grocery list. Pan-Beedi Shops: These are really small shops, almost like
handcarts, and they are primarily set up to dispense cigarettes and chewing tobacco.
Total annual soap sales by companies marketing their brands at national or state levels is
estimated at 14,000 tonnes of a total soap market considered to be about 126,000 tonnes.
The market is growing at 7% a year. This means that the incremental demand
generation is 5% over and above the population growth. With increasing
awareness of hygienic standards, the market could grow at a rate higher than 8%
annually. Interestingly, 60% of the market is now sourced from the rural sector.
This means that the variance between the two segments is not very large. Since
upper-end market focus is the urban areas, margins come from the urban sector.
Market Segmentation:
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 80,000 tonnes. This translates into a share of about
14 to 15%. However, by value it is as much as 30%.
Soaps are also categorized into men's soaps, ladies' soaps and common soaps.
There are a few specialty soaps as transparent Glycerine soaps, sandal soaps,
specially flavored soaps, medicated soaps and baby soaps. Specialty soaps are
high valued but enjoy only a small share of the market in value terms.
Market Capitalization
Today in the Indian economy the popular segments are 4/5ths of the entire soaps
market. The penetration level of toilet soaps is 88.6%. Indian per capita
consumption of soap is at 460 Gms per annum, while in Brazil it is at 1,100
grams per annum. In India, available stores of soaps are five million retail stores,
out of which, 3.75 million retail stores are in the rural areas. 70% of India's
population resides in the rural areas and around 50% of the soaps are sold in the
rural markets.
One of the factors which affect the demand of soaps is the penetration, which the
products have in market. In case of soaps this has not been a major issue as the
penetration in the rural area is as high as 97% and that for urban area is around
99%. Thus approximately the penetration is around 99% for overall India.
Factors affecting buying behaviour
Price is the most important factor which effects the buying behavior of consumer,
by which a consumer goes for the various segment of soap like premium, popular,
sub-popular and carbolic which are basically decided by the cost factor and fat
content in the soap.
The buying frequency is either monthly that is done by the families or in case of
bachelors it is more than once in a month. The occasions when premium soaps are
purchased are usually when there are festivals and ceremonies. Moti Soaps are
usually presented during festivals and occasions for presents and gifts.
The promotional techniques help to boost sales. Various tactics like the price off’s,
buy one get two free, free gifts and other schemes help boost sales in short run and
also help in clearing stocks.
One of the important points a soap marketer should note is that the soaps are
usually purchased by women in urban areas as most of the day to day consumption
of personal care products are made by women. A point to note is that women use
more personal care product than men do and hence premium soaps are mostly
targeted at them. Men normally make purchase decisions in rural areas. Hence the
marketer has to adopt different strategy for such a market.
The market shows a seasonal behavior for some brands, i.e. the brands change as
per the customers' need for that particular season. For e.g. in summer - running
brand popular and sub-popular most of the buyer take bath twice in a day specially
in northern belt, in monsoon - running brand antiseptic and medicated soap, in
winter running brand premium (moisturizer and creamy soap).
Market Share
In terms of market share for Indian Soap Industry the data indicates that HLL had a market share
of 64 % in the soap market, followed by Nirma at 16.8 % and Godrej at 4.4%. Nirma's market
share was in the northern region was 21 %. Lux and Lifebuoy have held the sway of the
market for almost fifty years. While the former brand remained the preserve of the high-
end rich consumers, Lifebuoy ruled the roost with health-conscious users as a hygienic
soap. The products underwent up-gradations with the introduction of versions like
International Lux and Lifebuoy Personal. In between came brands like Nirma Rose,
Nirma Beauty Soap, Breeze, Caress, and LeSancy. In 1993 came Dove. Earlier, Liril
made waves with its lemon touch and bathing acrobatics.
At the medium and lower rungs, brands like Hamam, Moti, Jai, Rexona (third largest
brand) were well supported by OK and later by OK NSD Bar.
The brands have undergone a full foray of launches and relaunches, making each
occasion to give a more vigorous thrust to the marketing effort. Quite a few of the brands
have been acquired: Hamam from TOMCO and Baby Toilet soap from Johnson &
Johnson, for example.
While Pears has dominated as high profile specialty soap, HLL undertook, in 1992, a
project to manufacture the product for the world market at Khamgaon in Maharashtra.
Commercial production commenced in 1993.
To provide a sound base to its toilet soaps operations, HLL has also branched out into
other toiletries like shampoos and related products like glycerine, fatty acids.
Godrej Soaps had a disappointing experience in forging an alliance with Procter &
Gamble (P&G). Infact P&G is withdrawing itself from the premium soap segment like
Camay.
P & G has now a fully-owned subsidiary in India and now it is concentrating more on
personal care products. Godrej retained all soap brands and transferred detergent brands
to P&G in 1993. Godrej found it convenient to shed the detergent brands - Ezee, Key, Biz
and Trilo - as they represented a losing portfolio.
Godrej is promoting a number of brands, Cinthol, Ganga, Shikakai, Fairglow, No.1 and
Crowning Glory, while it has others to bother about such as Vigil and Fresca. Cinthol
ranks third and accounts for 60% of all Godrej Soap's brands. It is an old brand launched
about five decades ago in early 1950s. New Cinthol Lime and Cologne gave it a new look
in 1985. Two variants were introduced in 1989 placing an added emphasis on their brand
of soaps. Its deodorant and complexion soap is styled as Cinthol Spice. Cinthol is
perceived largely as a male soap, as Lux is a lady's soap. The company expects a very
high growth for Cinthol in 1997-98. Ganga did well and a new version Doodh Ganga has
been introduced. Ganga had notched up a 5% market share but declined to 2% later with
sales at Rs 350 mn. Godrej wants to revive it. Godrej Soaps was giving a tough
competition to Hindustan Lever. Crowning Glory was pitched for hair care.
Even Nirma has achieved a significant penetration and has notched up an impressive
60,000 tonnes sale in just three years. Nirma Ltd has been putting up a backward
integration plant to produce soda ash and linear alkyl benzene (LAB).
Capacity utilization in the industry varies from as low as 50% to 80%. Godrej Soaps
Limited (GSL) has been using its capacity by working for other producers. GSL makes
Rexona and Dettol for Reckitt & Colman of India and Johnson's Baby Soap for
Hindustan Lever (Johnson & Johnson). And yet only half of its capacity of 71,000 tonnes
is being used. Also companies like VVF Ltd. has state of the art technology oriented
plants, which they mostly use for producing brands like Dettol, Nivea Creame soap and
also internationally well know brands like Fa for other marketers.
It seems Indians have sacrificed hygiene at the altar of thrift. If numbers are anything to
go by, Indians do seem to be washing themselves, as well as their clothes, rather less.
Data collated by industry certainly points to this rather unpleasant conclusion. The
consumption of soaps and detergents has shrunk substantially with volumes declining by
11.5 per cent and consumption of detergents declining by 4.1 per cent in the year.
The evidence of this decline in consumption is somewhat perplexing in a country with a
growing population as the consumption of soap and detergents should logically be
directly proportional to population growth. "Soaps and detergents are at the back of the
house and are not status products like TVs or refrigerators. It’s possible that consumers
may be economizing on their use or buying cheaper brands during a downturn," explains
an official at a leading FMCG firm.
One possible reason could be increased production in the small-scale sector. For
instance, besides detergents sold as powders and bars, which is produced by organized
players, a large quantum of detergents are sold in the form of laundry soaps, which are
used for washing clothes. Production of laundry soaps are reserved for the small-scale
sector and data is not readily available. There is also a large cottage industry producing
cheap soap, used for personal wash, for which reliable numbers are not available.
Another possible reason for the apparent decline in consumption could be the free
samples of soap which have been handed out as part of incentive schemes, say industry
sources. “The quantum of such samples may not be picked up in the data,” said the
official.
There is another whacky hypothesis. Many households earlier used soaps for twin
purposes: for body wash as well as shampoo substitutes.
However, successful sachet marketing in shampoo seems to have now penetrated this
market, which has directly impacted the sales of soaps.
A detailed analysis of the data shows that sale of premium soaps, the likes of HLL’s Lux
or Godrej’s Cinthol, declined by 13.1 per cent. But even the carbolic or discount soaps —
the likes of HLL’s Lifebuoy or Nirma — saw volumes decline by 9.9 per cent. Even
though the market has shown de-growth in toilet soaps segment, analyst say that it will
grow at a meager rate of 3 to 4 per cent especially in the premium category, which was
previously looking attractive. This can be attributed to factors like excessive dependent of
Indian rural sector on monsoon, which can be uncertain. Also due to high excise duty
prices have remained high enough to keep the huge middle class chunk away from this
market. Thirdly 80% of the raw materials used in premium soap are imports, which
attract high import duty. All this factors lead to increase in cost, which deters the players
to provide value for money product to the middle class consumer.
Porters 5 Forces Model
SUPPLIER POWER
Supplier concentration
Importance of volume to supplier
Differentiation of inputs
Impact of inputs on cost or
differentiation
Switching costs of firms in the
industry
Presence of substitute inputs
Threat of forward integration
Cost relative to total purchases in
industry
BARRIERS TO ENTRY
Absolute cost advantages
Proprietary learning curve
Access to inputs
Government policy
Economies of scale
Capital requirements
Brand identity
THREAT OF
SUBSTITUTES
-Switching costs
-Buyer inclination to
substitute
-Relative price
performance of
RIVALRY
Switching costs
Access to distribution
Expected retaliation
Proprietary products
substitutes
BUYER POWER
Bargaining leverage
Buyer volume
Buyer information
Brand identity
Price sensitivity
Threat of backward integration
Product differentiation
Buyer concentration vs. industry
Substitutes available
Buyers' incentives
DEGREE OF RIVALRY
-Exit barriers
-Industry concentration
ratio
-Fixed costs/Value added
-Industry growth
-Intermittent overcapacity
-Product differences
-Switching costs
-Brand identity
-Diversity of rivals
-Corporate stakes
New Entrants
The major raw material required for toilet soap is palm oil which is required to be
imported from countries like Malaysia. Palm oil is an expensive ingredient and
this gives a low cost advantage to the soap industry of countries like Malaysia,
China etc. The exporters of these countries could supply good quality soaps at
rates less than the Indian competitors.
There are companies like Marico, Kopran, and Anchor to launch soaps in the
premium category. Oriflamme has entered the market recently with premium soap
for the niche segment Milk & Honey (40 Rs 100 Gms) and Kopran has titled its
new offering Shine & Smile.
The new entrants generally cater to small markets for e.g. there are a large number
of soap manufacturers catering the local markets of southern states. Most of these
players are a part of the large unorganized sector, which directly purchases fatty
acids of palm oil from the Indian manufacturers.
HLL takes complete advantage of the economies of scale by procuring huge
quantities of raw material and flushes the market with vast varieties of soaps with
minor variations.
Brands like Liril, Lux, Dettol created by existing players proves a hurdle for the
new entrants like Doy Care (VVF Ltd.) but there are a large number of players
operating at the local level.
The switching cost for the consumers is not very high in the soap category.
Premium Category, although compared to other does enjoy a better Brand Loyalty.
Even in case of specialty soaps like J&J, Santoor, where Brand Loyalty is
generally high.
The capital required for manufacturing process is very high in this sector
especially if one needs to manufacture standardized quality soap. Most
manufacturers in the organized sector like import the machinery from Italy.
Distribution is the key factor in this sector. Companies having a good distribution
network are able to cater to a wider market across the country. Sales are volume
driven and not value driven.
The specialty about this sector is that it has a high level of learning curve that
improves with experience and therefore soap manufacturing is quite often called
an art rather than a science.
The duties applicable to this sector are very high and thus prove to be major
barrier for the new entrant.
Substitutes
Generally one can point at two general broad substitute threats in the Premium
soap category. One threat is from the use of products like body wash and face
wash. Though the use of these products forms a very small part of consumption
this is basically due to the high costs associated with such products. One can see in
the some developed countries which have already registered a cent percent
penetration, the consumption of soap has now decreased due to the customers
upgrading to Body wash and Face wash.
The second threat is from downtrading i.e. the consumers from the premium
category opting for the popular category soap. Any small change in the price of the
Premium soap can cause in the shift of the price conscious consumer to opt for
shifting to a soap in the Popular category. Most companies like HLL, Nirma cater
to both the categories.
Suppliers
The major input for the soap manufacture is vegetable oil (around 80% of the raw
materials). Earlier Animal Fat was used which was even cheaper, but after the
Indian government banning animal fat, one had to shift to vegetable oils. They are
not available in India and thus have to be imported from countries like Malaysia,
Indonesia and China. There are only few players who export palm oil from these
countries and as such these exporters have a commanding position.
There are various grades of palm oil available and the manufacturer can switch
between these grades to save on the cost of inputs. Besides, soap can be
manufactured either from fatty acids or directly from the oil.
The soap manufacturers cater to the current and future needs of consumers through
the development of new formulations and relate these to their suppliers. A prime
example of this is the current trend towards producing higher quality soaps and the
customization of the products for e.g. Soap for different skin types. Such moves
result in new formulations that force suppliers to modify quality of inputs.
Companies like Godrej and VVF who previously used to supply soaps to other
bigger companies have gone for forward integration and started selling their own
brands.
Small players cannot afford to import Oils as the price of Oil keeps on fluctuating
and these fluctuations, if on the higher side cannot be incorporated in the price of
the product in this age of cut-throat competition. So they directly purchase fatty
acids of oils from large-scale Indian manufacturers who import Oil and convert
them to fatty acids.
Buyer
To a large extent, Premium Soap is a price sensitive market. Off late there has
been an increasing trend towards downtrading. And this has forced the
manufacturers to lower the prices or offer temporary discounts to woo the
consumers who are either downtrading from the popular segment or graduating
upwards from carbolic soaps.
This sector faces low level of brand loyalty. Switching costs is very low and these
results in price war and people are concentrating on value-for-money. This forces
a lot of players to go for frequent promotional schemes like 3-on-1, 2-on-1.
Earlier the decision for purchasing the soaps was equally balanced between man
and woman (50:50).
Now the decision ratio is 60:40 in the favor of woman purchaser. This proves the
fact that today most soaps are targeted at the Indian woman.
The buyers, even in the rural area are subjected to the media invasion and are well
informed about the basket of products available in the market and thus take a
rational decision.
Industrial Rivalry
As India has a low per capita consumption of soaps the growth in this sector has
been stagnant. Penetration though on an average is 95%, consumption in our
country, as compared to other developed countries is a bare minimal (In the rural
market, even though penetration is high the frequency of taking a bath with soap is
one out of 5 occasions). Capacity utilization in the industry varies from as low as
50% to 80%. The market is littered over with several, leading national and global
brands and a large number of small brands, which have limited markets.
There exist high exit barriers in the industry due to high capital investment.
SWOT ANALYSIS
Strengths
Soap penetration: soap has a very high penetration of 95% in the urban region
while the rural region contributes to 85% penetration, which shows a potential for
growth in the rural sector.
Soaps is a Delicenced Industry, which symbolizes that any individual with finance
and marketing skills can enter the industry.
Weakness
The duty structure: excise duty is at the rate of 16% on all toilet soaps and the
sales tax structure varies from state to state with a minimum of 8 % in some states
ranging upto 20 % in most of the southern states like Andra Pradesh, Tamil Nadu,
and Orissa
India solely depends on the Imports for vegetable oil mainly from Malaysia &
Indonesia and import duty is as high as 35%.
The fairly high contribution from rural market makes this category sensitive to the
fortunes of the agriculture economy
The large-scale organized sector where the Technology and Capital Invested are
high. The other popular and carbolic soaps are manufactured by small
manufacturing units predominantly existing in the southern sector.
Opportunity
Indian Exports for Soaps are quite insignificant. The reason being other South
Asian countries like Malaysia, Indonesia and China have Palm Oil available in
abundance. Hence exporting Soaps becomes an expensive proposition. India can
concentrate on exports of specialty soaps like ayurvedic, herbal and special
categories like fairness soaps.
Internet is fast emerging as a strong distribution channel and the new players are
finding it easier to launch assaults through this medium very effectively.
In the world of cut throat competition ‘Quality’ at an affordable price is the new
mantra. Companies are trying every measure to improve the quality of the product
by maintaining or at times even decreasing the price to make the product
affordable and competitive.
Presence of a large unorganized market: branded products can wash the
unorganized market by providing value for money products at competitive market
Threats
Industry Growth – the entire soap Industry is growing at a minimal rate of 3 % and
the entire FMCG industry is passing through turmoil, where the soap segment
registered actually a negative growth leading to saturation.
The only players we see are the low (cheap) quality soaps from countries like
Indonesia, Malaysia and China, which has a low freight cost structure and also a
substantially low cost of manufacturing.
CHAPTER -3COMPANY PROFILE
History of KSDL ( Karnataka Soaps and Detergents Ltd.)
India is the land of ivory, silk, sandal, precious gems and magical charms of
centuries the most enchanting perfume of the world got its exotic spell with a twist of
sandal. The world’s richest sandalwood resource is from one isolated stretch of forestland
in South India. Karnataka state is the original home of the perfumed sandalwood and its
oil which is generally used in the making of sandalwood soap. It is due to world war
India faced several crises on the business of trading of sandalwood, which earlier went to
Europe and new destination by the inspiration of “Maharaja of Mysore”. The
Government soap factory started as a very small unit under the guidance of
Sir.M.Vishweshwaraiah wizard engineer of our country. With the help of Sri.S.G.Shastri
a distinguished chemist was sent to England by the Maharaja to master the finer aspects
of the soap manufactures. The perfumed sandalwood and its oil, which is generally used
for making sandalwood soap. It is known as “Fragrant Ambassador of India” sandalwood
also known as “Liquid Gold”.
The factory was started as a very small unit with a capacity of 100 tones per
annum at Bangalore in 1918. The factory was shifted to Rajajinagar Industrial Area,
Bangalore in July 1957. The plant occupies an area of 4 acres, which on the Bangalore-
Pune highway easily accessible by transport service and communications. By this factory
completed its 1st stage ambitious expansion and modernization brings a spectacular
process. KSDL is a public sector under taking wholly owned by Government of
Karnataka engaged in manufacturing satiric acid, glycerin, agarbathies and sandal talc.
The credit for today’s famous Mysore Sandal Soap goes to Sri.S.G.Shastri a
distinguished scientist who improved the process of soaps making and Late
Sir.M.Vishweshwaraiah the great engineer of our country was the brain behind the
project.
Current Profile:
Karnataka Soaps and Detergents Ltd. (A Govt. of Karnataka Undertaking) has been a
supplier of premium quality sandalwood products since 1916. Co. has been awarded the
ISO 9001:2008 for effective implementation of Quality Management Systems. The
visionary Maharaja of Mysore started the manufacturing units initially to deliver the best
properties of sandalwood to the masses. KSDL has carried on the legacy; today Co. has a
significant market share (15% in some states) owing to its dedicated supply services and
premium quality sandalwood products.
Co.’s product range includes Mysore Sandal Soaps, Sandalwood agarbatti and Talcum
Powder. A few other facts about company:
A century of trusted service
ISO certification 9001:2008
Premium Quality Soaps made from 100% pure sandalwood oil
Mysore Sandal Soap and Mysore sandalwood oil are recognized in the
Geographical Indications Registry, making the products uniquely global
Company logo - SHARABHA is a Mythological animal. It is an Elephant headed
LION symbolizing the magnificient blending of the majesty of Lion with the
strength of an elephant
The KSDL's soap factory in Bangalore is one of the largest of its kind in India
having an installed capacity to produce 26,000 tonnes of soap per annum
The Company turnover has increased from 100.00 crores during the year 2003 to
Rs.262.00 crores during the year 2011-12
MILESTONES:
Year History & Milestone
1916 Mysore Sandalwood Oil Factory started at Mysore
1918
Government Soap Factory was started by Maharaja of Mysore with the
capacity of 112MTs/Annum near Cubbon park, Bangalore and the
MYSORE SANDAL SOAP was introduced into the market for the first
time
1932 Toilet soap production capacity was enhanced to 750MTs/Annum
1944 The second Sandalwood Oil extraction plant was started in Shimoga
1954Foundation stone was laid by Sir M. Visvesvaraya for establishment of
new manufacturing facilities at Rajajinagar, Industrial Suburb, Bangalore
1957 Factory was shifted from Cubbon Park to the new premises
1965 Started exporting its products to various Countries
1967 Celebrated its Golden Jubilee
1970Production capacity was increased to 6000MTs/Annum, in a phased wise
with parallel modernization of various manufacturing equipments
1974Mysore Sales International Limited was appointed as the sole selling agent
for marketing its products
1975Synthetic Detergent plant for manufacture of Detergent cake and
Detergent powder was installed with Italian technology
1980
Government Soap Factory was converted into a Public Sector Enterprise
and the Company was incorporated on 9th July 1980 and re-named as
KARNATAKA SOAPS & DETERGENTS LIMITED
1981
Fatty Acid unit was established to utilize ingeniously available minor seed
oils as the raw material for Soap manufacturing and to produce Glycerine
and Stearic acid
1984
Expanded the production capacity with modern manufacturing facilities,
which was available at that time to produce 26000MTs/Annum of Toilet
soaps with different variants
1987
Company has taken over the marketing activities from M/s. MSIL and
established its own marketing network by opening six Branches all over
India
1992
Company has faced very stiff competition after liberalization in the
Country from different multi National Companies. Company was
registered with the Board for Industries and Financial Reconstruction
(BIFR) New Delhi, as the Company suffered heavy losses
1996
The BIFR approved the rehabilitation package in September and Company
has taken stringent measures for the Cost control and improving the
productivity and sales. Company started making profits
1999 Company was certified with ISO 9001:2000 Certification by BSI for its
effective implementation of Quality Management Systems. Company has
launched MYSORE SANDAL GOLD- 125gms and MYSORE SANDAL
BABY-75gms in the premium segment
2000Company was certified with ISO 14001:2004 Certification by BSI for its
effective implementation of Environmental Management System
2003
Company has wiped out entire carry forward losses of Rs.98.00 crores and
come out from BIFR. Company has made profits continuously every year
and it is the only State Public Sector unit, which has come out of BIFR and
making continuous profits in the State
2008
Company has introduced Hand wash liquids under the trade name of
Herbal Hand wash and Rose Hand wash. Company has also introduced
liquid Detergent under the trade name of KLEENOL with different
variants for Floor wash, Dish wash and Automobile wash for Domestic
Market
2009
Company has established In-House state of the Art manufacturing
facilities for manufacture and filling of Mysore Sandal Talcum powder
and Mysore Sandal Baby powder. Company has re-introduced the Talcum
powder variants with new outlook of containers
2010 Company launched Mysore Sandal Dhoop
2012 Launched Super Premium Mysore Sandal Millennium Soap
2012 The Company reached highest sales turnover and Profit
OBJECTIVES OF KSDL:
To serve self and national economy.
To attain self-reliance.
To promote and uphold its image as market of traditional product.
To promote purity and quality product and thus enhance age-old charm.
To maintain the broad loyalty of its customer.
QUALITY ASSURANCE
The Company considers quality as one of the principal strategic objective to guarantee
growth and leadership in the markets of its operation. The Company strives to offer
superior quality products and services.
Certified with ISO 9001:2000 Certification by BSI for its effective
implementation of Quality Management Systems
Certified with ISO 14001:2004 Certification by BSI for its effective
implementation of Environmental Management System
ISO certification upgraded to 9001:2008
ISO 14001 POLICY OF KSDL :
KSDL is committed to preserve natural environment in the production of its
quality products to the satisfaction of its customers.
KSDL will comply with all statutory and regulatory requirements pertaining to
environment stipulated by both state and central authorities.
KSDL would initiate and implement action to reduce all impacts that are likely to
be source of concern to the environment.
KSDL is committed to prevent and minimize risks to the environment and
conserve natural resources by waging was no wastes.
KSDL would strive and set example in protection and promotion of an eco
friendly environment.
KSDL will motivate every employee of the company is preserving the
environment by providing appropriate training.
PRODUCTION PLANTS:
KSDL has three production plants:
Soap Plant:
It has a production capacity of 26,000 tones per annum. It has the largest
production units in India. The sophisticated plant from Italy has wholly integrated
straight-line facility that links up process sequence for straight productivity.
Detergent Plant:
The detergent plant has an installed capacity of 10,000 tones sulphuric oxide.
The detergent plant also produces industrial detergents used in the formulation as well as
pesticides powder for crop protection, while the acid slurry is the main ingredient in the
manufacturers of detergent powders, bars and cakes.
Fatty Acid Plant:
It is the major raw material for soap unit. Forty five million has been invested
in machineries. It was functioning as a feeder plant for several other soap manufacturers
within installed capacity of 10,000 tones per annum.
PRODUCT PROFILE:
1. Toilet Soap
NAME OF THE PRODUCT UNITS OF GRAMS
Mysore Sandal Soap 75
Mysore Rose Soap 100
Mysore Sandal Bath Tablet 150
Mysore Special Sandal Tablet 75
Mysore Sandal Guest Soap 18
Mysore Lavender Soap 75
Mysore Lavender with Tablet 150
Mysore Jasmine Soap 100
Mysore Jasmine Guest Tablet 150
Mysore Rose Guest Tablet 20
Mysore Carbolic Soap 150
Mysore Sandal Classic Soap 75
Mysore Sandal Gold Soap 125
Mysore Sandal Baby Soap 75
Mysore Jasmine Soap 125
Jasmine Soap 150
Mysore Rose Soap Tablet 100
Mysore Rose Guest Tablet 50
Mysore Sandal Jasmine Rose ( 3 in 1 ) 450
2. Detergents
NAME OF THE PRODUCT UNITS IN GRAMS
Mysore Detergent Powder 1000
Mysore Detergent Powder 500
Mysore Cake Powder 250
Mysore Bar 125
Point Detergent Powder 1000
Mysore Cake Powder 125
3. Agarbathies
NAME OF THE PRODUCT
Mysore Sandal
Mysore Rose
Meditation
Mysore Jasmine
Suprabatha
Mysore Sandal Premium
Parijatha
Bodhisathva
4. Talcum Powder
NAEM OF THE PRODUCT UNITS IN GRAMS
Mysore Sandal Baby Powder 100, 200, 300 & 400
Mysore Sandal Talc 20, 50, 100 & 300
CHAPTER – 4
THEORETICAL FRAMEWORK OF CONSUMER BEHAVIOR
PRODUCT :- Anything that can be offered to a market for attention. Acquisition,
use or consumption and that might satisfy a want or need.
CONSUMER :- Persons that have need as well as ability and authority to purchase
that goods and services.
CONSUMER BEHAVIOUR
The term "Consumer Behaviour" refers to the behaviour that consumer display in search
for purchasing, using evaluation and disposition of products and services that they expect
will satisfy their needs. The study of consumer behaviour is the study of how individuals
make decisions to spend their available resources (time, money, effort) on consumption
related items. It includes the study of what they buy, why they buy it when they buy
where they buy it, how often they buy it and how often they use it. In this process the
consumer deliberated within himself before the finally makes a purchase or more.
This deliberation relates to many variables and is aimed to solving consumption problem.
Among these problems the first and foremost is to decide whether to spend money or to
save it.
Once a decision is taken to spend money the second problem is to decide what to buy
because the resources are limited and needs are multiple. Therefore needs are to be
marked in priority terms.
During my study I found that how consumers make a decision for buying a product.
MODELS OF CONSUMER BEHAVIOUR
The bayer's characteristics and decision process lead to certain purchase decision. The
marketers task is to understand what happens in the buyers consciousness. The buyers'
behaviour is stimuli response between the arrival of outside stimuli and the buyers'
purchase decision.
Marketin
g stimuli
Other
stimuli
Buyers'
characteristic
s
Buyers' decision
process
Buyers'
decision
Product
Price
Place
Promotio
n
Economic
Technologic
al Political
Cultural
Cultural
Social
Personal
Psychological
Problem
Recognition
Information Search
Evaluation of
alternative
Purchase decision
Product
choice
Brand
choice
Dealer
choice
Post Purchase
behaviour
Purchase
Timing
Purchase
amount
Factors influencing consumer buying behavior
A consumer buying behaviour is influenced by cultural, social, personal and
psychological factors exerts the product and deepest influences.
It may be shown as follows:-
Factors
Cultural Social Personal Psychological
Cultural Sub-Cultural Social Class
Factor Factor Factor
Reference Group Family Rules and Status
Age & Stage Occupation & Economic Personal and Life Style
Life Cycle Circumstances Self concept & Values
Motivational Learning Perception Believes & Attitude
(1)Culture Factors :-
Culture factors have great impact on consumer behaviour. The roles played by the buyer's
culture, subculture and social class are particularly.
Culture :-
Culture is the most fundamental determinants of a person's wants and behaviour. The
growing child acquires a set of values, perceptions, preference and behaviour through his
or her family and others key institutions. A child growing up in America is exposed to the
following values i.e. achievement and success, activity efficiency, practical progress
material comfort, individualism, freedom external comfort, humanitarianism and
youthfulness.
Sub Culture :-
Each culture consists of smaller sub-culture that provide more specific identification and
socialization for their members, sub-culture includes nationalities, religious, radial group
and geographic regions, many sub-cultures make important market segment and
marketers often design product and market programs according to their needs.
Social Class :-
Virtually all human societies exhibit social stratification. Stratification sometimes takes
the form of a caste system where the members of different caste are reared for certain
roles and cannot change their caste membership. More frequently stratification takes the
form of social classes. Social classes are relatively homogenous and enduring divisions in
a society, which are hierarchically ordered and whose members share similar values,
interests and behaviour.
Social classes are divided into seven terms :-
Upper - upper class
Lower - upper class
Upper - middle class
Middle - Class
Working Class
Upper - lower classes
Lower-lower class
(2)SOCIAL FACTORS :-
A consumer behaviour is also influenced by such social factors as reference group,
family, role & status.
Reference Group :-
Many groups influence a person's behaviour. A person's behaviour group that have a
direct or indirect influence on the person's attitudes and behaviour. Groups having a
direct influence of a person are called membership groups. These are groups to which the
person belongs and interacts. Some are primary groups such as family, friends and
neighbors with which the person interacts fairly continuously. Primary groups tend to be
informal. A person also belongs to secondary groups such as religious, professional and
trade union groups which tend to be more formal and require less continuous interaction.
People are also influenced by groups in which they are not members. Groups to which a
person would like to belongs are called inspirational groups.
Family :-
Most consumers belong to a family group. They influence the pattern of consumption.
Buying habits creates by family influences. The members of the family play different
roles as for deciding, purchaser and user. The housewife may act as a mediator of
products that satisfy wants and desires of the children. Many question arise in the whole
family but a marketer has to think that who is the main purchaser of family.
In the case of expensive products services, husband and wives engage in more joint
decision making. The marketers need to determine which member normally has the
greater influence in choosing various products often it is a matter of who has more power
or expertise.
Here are Typical product patterns
Husband dominant :- Life insurance, Automobiles, T.V.
Wife dominant : - Washing Machine, Furniture, Kitchenware
Equal :- Vacation, Housing, Outside entertainment.
Roles and Status :-
A person participates in many groups:- family, clubs and organization. The person's
position in each group can be defined in term's of roles and status. A role consists of the
activities that a person is expected to perform. Each role carries a status. A supreme court
justice has more status than a sales manager and a sales manager has more status than an
office clerk. People choose products that communicate their role and status in society.
Thus company drive Mercedes, wear expensive suits and drink chives regal scotch.
Marketers are aware of the status symbol potential of products and brands.
(3)PERSONAL FACTORS :-
A buyer's decisions are also influence by personal characteristics not by the buyer's age
and life stage, occupation, economics circumstances, lifestyle and personality and self
concept.
Age and Life cycle stage :-
People buy different goods and services over their lifetime. The eat baby food in the
years, matured foods in the growing and mature years, and special diets in the latter
years. People's taste in clothes furniture and recreation is also age related.
Consumption is also shaped by the stage of the family life cycle. Marketers often choose
life cycle groups as their target market.
Some recent work has identified psychological life cycle stages. Adults experience
certain "passages" or transformations as they go through life markers pay close attention
to changing life circumstances divorce widowhood remarriage and their effect on
consumption behaviour.
Occupation :-
A person's occupation also influences his or her consumption pattern. A blue collar
worker will buy work clothes work shoes, lunch box. A company's president will buy
expensive suits, air travel, country club membership and a large sail boat. Marketers try
to identify the occupational groups that above average interest in their product and
services. A company can even sexualize their computers software companies will design
different computers software for brand manager, engineers, lawyers and physicians.
Economic Circumstances :-
Product choice is greatly affected by ones economic circumstances. People's economic
circumstances consists or their spendable income, its level stability and time pattern,
saving and assets including the percentage that is liquid debts, borrowing power and
attitudes towards spending versus saving.
Lifestyle :-
People coming from the same sub-culture, social class and occupation may lead quite
different lifestyles. A person's life is the person's pattern of living in the world as
expressed in the person's activities, interest and opinions. Lifestyle portrays the "whole
person" interacting with his or her environment. Marketers will search for relationship
between their product and lifestyle groups. A computer manufacturer may find that most
computer buyers are achievement oriented. The marketer may then aim the brand more
clearly at the achiever lifestyle.
Personality and Self-concept
Each person has a distinct personality that will influence his or her buying behaviour. By
personality we mean the person's distinguishing psychological characteristics that lead to
relatively consistent and ending responses to his or her environment. Personality is
usually described in terms of such facts as self confidence, dominance, autonomy
difference, sociability, defensiveness and adaptability.
(4) Psychological Factors
A person's buying choices are influenced by four major psychological factors
Motivation,
Perception
Learning and Beliefs
Attitudes
Motivation :-
A person has many needs at any given time some needs are biogenic they arise from
psychological states of tension such as larger, thirst, discomfort. Other needs are
psychogenic ; they arises from needs are psychogenic they arises from psychological
states of tension such as the need for recognition, esteem, or belonging. A need becomes
motive when it is aroused to a sufficient level of intensity. A motive is need that is
sufficiently pressing to drive the person to act.
Perception:-
Perception is the process by which an individual organization select interprets
information, inputs to create a meaningful picture of the world.
Perception depends not only on the physical stumuli but also on the stimuli relation to the
surrounding field and on condition within the individual.
The key word is the definition of perception of individual. One person might perceive a
fast talking sales person as aggressive and in sincere, another as intelligent and helpful.
People can emerged with different perception of the some object because of three
perceptual process, selective attention, selective distortion and selective retention.
Learning:-
Learning involves changes in an individual's behaviour arising from experience. Most
human behaviour learned learning theorists believe that learning is produced through the
interplay of desirous, stimuli, cues responses and reinforcement.
Beliefs and Attitudes :-
Through doing and learning people acquired beliefs and attitudes. These turns influence
buying behaviour. A belief is a descriptive thoughts that a person holds about something.
Believes may be based on knowledge, opinion or faith. They may or may not carry
emotional charges, of course manufacturer are very interested in the beliefs. People carry
in their heads about their products and services.
An attitude is a persons enduring favourable or unfavourale evaluation emotional feelings
and action tendencies towards some object or ideas.
People have attitude towards almost everything politics clothes music, food. Attitudes put
them into a frame of mind of disliking and object moving towards or away from it.
Attitudes lead people to behave in fairly consistent way towards similar object. People do
not have to interpret and every object in a fresh way, because attitudes economize on
energy and thought, they are very difficult to change. A person attitude settle into a
consistent pattern to change a single attitude may require major adjustment in other
attitudes.
BUYING DECISION PROCESS
1. Problem Recognition
The buying process starts when the buyer recognizes a problem or need by gathering
information from a number of consumers, marketers can identify the most frequent
stimuli that spark an interest in a product category.
2. Information Search
Consumer information sources fall into four groups:
Personal sources: Family, friends, neighbors, acquaintances
Commercial sources: Advertising, salespersons, dealers, packaging, displays
Public sources: Mass media, consumer -rating organizations
Experimental sources: Handling, examining, using the product
3. Evaluation of Alternatives
There are several decision evaluation processes; first the consumer is trying to satisfy a
need. Second, the consumer is looking for certain benefits from the product solution.
Third, the consumer sees each product as a bundle of attributes with varying abilities for
delivering the benefits sought to satisfy this need.
4. Purchase Decision
However, two factors can intervene between the purchase intention and the purchase
decision. The first factor is the attitude of others. The second factor is unanticipated
situational factors that may erupt to change the purchase intention. A consumer’s
decision to modify, postpone, or avoid a purchase decision is heavily influenced by
perceived risk.
5. Post Purchase Behavior
Marketers must monitor post purchase satisfaction, post purchase actions and post
purchase product uses
Post Purchase Satisfaction: the importance of post purchase satisfaction
suggests that product claims must truthfully represent the product’s likely performance.
Post Purchase Actions: satisfaction or dissatisfaction with the product will
influence consumer’s subsequent behavior. If the consumer is satisfied, he or she will
exhibit a higher probability of purchasing the product again. Dissatisfied customers may
abandon or return the product.
Post Purchase Use and Disposal: Marketers should also monitor how buyers use
and dispose of the product. If consumers store the product in a closet, the product is
probably not very satisfying. If they sell or trade the product, new-product sales will be
depressed. Consumers may also find new uses for the product.
TYPES OF BUYING BEHAVIOR:-
Consumer buying decisions making varies with the type of buying decision. As sale
distinguished four types consumers buying behaviour based on the degree of buyer’s
involvement and degree of difference among brands.
1) COMPLEX BUYING BEHAVIOR:-
Consumers engage in complex buying behaviour then they are highly involve in a purchase and
aware of significance differences among brand. This is usually the case when the product is
expensive brought infrequently, risky and highly self-expensive.
2) DISSONANCE REDUCING BUYING BEHAVIOR:-
Sometimes buyers are highly involve in purchase but sees little differences in the brands. The
high involvement is based on the fact that the purchase is expensive, infrequently and risky. In
this case buyer will shop around to learn what is available but will buy fairly quickly perhaps
regarding primarily to good price as to purchase convenience.
3) HABITUAL BUYING BEHAVIOR:-
Many products are brought under conditions of low consumer involvement and absence of
significance brand differences. Consumers have little involvement in this product category. They
go to the store and reach for the salt.
4) VARIETY SEEKING CONSUMER BEHAVIOR:-
Same buying situations are characterized by low consumer involvement but significance brand
differences. Here consumers do a lot of brand switching.
CHAPTER – 5
DATA ANALYSIS AND INTERPRETATIONS
1. Age Group of Respondents
DESCRIPTIONNO.RESPONDENTS PERCENTAGE
Below25 Yrs 26 13%
Between 25 & 35 Yrs 34 17%
Between 35 & 45 Yrs 44 22%
Between 45 & 60 Yrs 54 27%
Above 60 Yrs 42 21%
TOTAL 200 100%
Interpretations:
The above table mentions different age group of respondents. It consists 13% respondents
are below 25 years, 17% are between 25 &35 years, 22% are between 35 & 45 years,
27% are between 45 & 60 years and 21% respondents are above 60 years.
Majority of the respondents are between 35-45 and 45-60 years.
2. Gender of Respondents
DESCRIPTIONNO.RESPONDENTS PERCENTAGE
Male 139 69.5%
Female 61 30.5%
Total 200 100%
Interpretations:
Male respondents are 139 which are 69.5%, and the Female respondents are 61 which is
30.5%.
Majority of the respondents are male.
3. Occupation of Respondents
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Employees 40 20%
Businessmen 66 33%
Executives 48 24%
Labourers 46 23%
Total 200 100%
Interpretations:
The above table shows that the occupations of the respondents are as follows 20% of the
respondents are employees i.e. doing job, 33% are businessmen, 24% are executive and
23% are laborers.
Majority of the respondents are businessmen.
4. Educational Qualification of Respondents
Interpretations:
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Illiterate 20 10%
Below SSC 44 22%
Graduates 72 36%
Professionals 64 32%
Total 200 100%
The educational qualifications of the respondents are as follows Illiterates:10%,
BelowSSC:22%, Graduates:36%, Professionals:32%.
Majority of the respondents are graduate and professionals.
5. Income Level of the Respondents
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Below Rs.10000/- 60 30%
Rs.10000/-toRs.20000/- 46 23%
Rs.20000/-toRs.50000/- 36 18%
Above Rs.50000/- 58 29%
Total 200 100%
Interpretations:
The income levels of the respondents are as follows 30% respondents are below Rs.
10000/ p.m., 23% respondents are between Rs. 10000-20000/- p.m., 18% respondents are
between Rs. 20000 – 50000/- p.m. and 29% of the respondents are above Rs. 50000/-
Majority of the respondents are either below Rs. 10000/- p.m. or above Rs. 50000/- p.m
6. Awareness of Mysore Sandal Soaps
Interpretations:
From the above table 172 respondents i.e. 86% are aware of the Mysore Sandal Soaps
and the remaining 28 i.e. 14% are not aware of the product.
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Awareness 172 86%
Not Awareness 28 14%
Total 200 100%
Majority of the respondents are aware about Mysore Sandal Soap.
7. Factors influencing while purchase of bath soaps
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Price 48 24%
Quality 62 31%
Fragrance 38 19%
Goodwill 20 10%
Quantity 12 6%
Packaging 12 6%
Durability 8 4%
Total 200 100%
Interpretations:
From the above table it is clear that while purchasing the bath soaps 24% of the
respondents are influenced by the price,31% by the quality,19% by the Fragrance,06% by
the packaging,06% by the quantity,10% by the goodwill, and 04% by durability.
Majority of the respondents take into account quality of the soap while purchasing the
soap.
8. Present using brand of bath soaps by the respondents
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Mysore Sandal Soaps 34 17%
Cinthol 22 11%
Santhoor 40 20%
Hamam 12 6%
Lux 18 9%
Lifebouy 32 16%
Rexona 38 19%
Pears 4 2%
Total 200 100%
Interpretations:
From the table it is clear that the users of the Mysore Sandal Soaps are 17%, 11% are
using Cinthol, 16% are using lifebuoy, 6% are using Hamam, 9% are using Lux, 20% are
using Santoor, 19% are using Rexona, 1% are using Dove and remaining 2% are using
Pears.
Majority of the respondents are using Santoor, Rexona, Mysore Sandap soap and
Lifebuoy.
9. How often you buy soap?
Interpretations:
5% of the respondents buy soap on weekly basis, 25% twice a month, 65% monthly and
5% of the respondents occasionally buy the soap.
Majority of the respondents buy soap on monthly basis.
10.Media for the awareness of Mysore Sandal to the
respondents
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Weekly 10 5%
Twice a Month 50 25%
Monthly 130 65%
Occasionally 10 5%
Total 200 100%
Interpretations:
From the above table it is observed that media for the awareness of bath soaps are
Printmedia:15%, Electronicmedia:65%, Friends&Relatives:12%, Peers&Collegues:08%.
Majority of the respondents are aware about bath soap through electronic media.
11.Factors in Mysore Sandal liked by the respondents
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Print media 30 15%
Electronic media 130 65%
Friends Relatives 24 12%
Peers&Collegues 16 8%
Total 200 100%
Interpretations:
The above table shows that 29% of the respondents liked the fragrance, 07% liked the
price, 24%liked the quality, 13%liked the quantity, 20% of the respondents liked both the
quality and the fragrance in the Mysore Sandal Soaps.
Majority of the respondents like fragrance and quality of Mysore Sandal Soap.
12.Opinion about the price of Mysore Sandal by the
respondents
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Price 14 7%
Fragrance 58 29%
Quality 48 24%
Quantity 26 13%
Packaging 14 7%
Quality&Fragrance 40 20%
Total 200 100%
Interpretations:
From the above table it is clear that the opinions of the respondents about the price of the
Mysore Sandal Soaps are as follows: Satisfied respondents are : 23%, 74% respondents
have high satisfaction with price of Mysore Sandal Soap and 3% respondents have low
satisfaction regarding price.
Majority of the respondents have high satisfaction regarding the price of Mysore Sandal
Soap.
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Satisfactory 46 23%
Low 6 3%
High 148 74%
Total 200 100%
13. Availability of Mysore Sandal Soap to the respondents
Interpretations:
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Yes 189 94.5%
No 11 5.5%
Total 200 100%
The above table gives us the clearance of availability of mysore sandal soaps to the
respondents. 94.5% of the respondents said Mysore sandal soap is easily available while
5.5% respondents said availability is not easy.
Majority of the respondents said Mysore Sandal Soap is easily available.
14.Promotional offers suggested by the consumers
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Samples 52 26%
Free gifts 40 20%
Discounts 48 24%
Coupons 40 20%
Others 20 10%
Total 200 100%
Interpretations:
The above table showing the sales promotion activities which are preferred by the
consumers. In that 26% of respondents prefer samples, 20%prefer free gifts, 24%prefer
discount, 10% prefer coupons, and 20% of the respondents prefer other sales promotion
activities.
Majority of the respondents prefer samples and discounts as promotional offer.
15. Specify Sandal Soap you are aware of
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Mysore Sandal 80 40%
Nima Sandal 50 25%
Rexona 20 10%
Santoor 40 20%
Others 10 5%
Total 200 100%
Interpretations:
40% of the respondents are aware about Mysore Sandal Soap, 25% about Nima Sandal
Soap, 10% as Rexona, 20% about Santoor and 5% aware about other local brand.
Majority of the respodnents are aware about Mysore and Nima Sandal Soap.
16.Opinion about improvement of Packaging of Mysore Sandal
Soap
Interpretations:
70% of the respondents said there is no improvement required in Mysore Sandal Soap.
30% respondents said packaging of mysore sandal soap is required to be improved.
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Yes 60 30%
No 140 70%
Total 200 100%
Majority of the respondents said packaging of Mysore sandal soap is good.
17.Opinion about Mysore Sandal Soap by the respondents
Interpretations:
Opinion given by the respondents towards the mysore sandal soaps are as follows: Very
good: 43%, Good: 29%, Up to mark: 12%, Not Satisfactory: 16%.
Majority of the respondents said Mysore Sandal Soap is very good.
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Very good 86 43%
Good 58 29%
Up to mark 24 12%
Not Satisfactory 32 16%
Total 200 100%
18.Suggestions by the respondents
DESCRIPTION NO.RESPONDENTS PERCENTAGE
To reduce Price 118 59%
To improve Quality 7 3.5%
To Provide Promotional Offers 20 10%
To give more Advertising 38 19%
Others 7 3.5%
To make more Awareness 10 5%
Total 200 100%
Interpretations:
The above table is showing 59% of the respondents are suggesting to reduce the price,
3.5% are suggesting to improve quality, 10% are suggesting to provide free gifts, 19%
are suggesting to provide more ads, and 5% respondents are suggesting to make full
awareness.
Majority of the respondents are suggesting to reduce the price of the product.
19.Non availability of customer is shift to
Interpretations:
74% respondents said if Mysore Sandal soap is not available in the outlet from where
they used to purchase, they will go to other outlet to buy Mysore Sandal Soap. 26% of the
respondents said if Mysore Sandal Soap is not available, they will switch to other brand.
DESCRIPTION NO.RESPONDENTS PERCENTAGE
Other outlet 148 74%
Oher Brand 52 26%
Total 200 100%
Majority of the respondents are brand loyal to Mysore Sandal Soap.
CHAPTER -6
FINDINGS
Following are findings of the study:
22% respondents are between 35 & 45 years, 27% are between 45 & 60 years of
age group.
69.5% of the respondents are male and the Female respondents are 30.5%.
33% of the respondents are businessmen, 24% are executive and 23% are
laborers.
Majority of the respondents are graduate and professionals.
30% of the respondents are below Rs. 10000/- p.m. and 29% of the respondents
are above Rs. 50000/- p.m. income group.
86% are aware of the Mysore Sandal Soaps and the remaining 14% are not aware
of the product.
31% of the respondents take into account quality of the soap while purchasing the
soap.
Majority of the respondents are using Santoor, Rexona, Mysore Sandap soap and
Lifebuoy.
65% of the respondents are aware about bath soap through electronic media.
29% of the respondents like fragrance and 24% of the respondents quality of
Mysore Sandal Soap.
74% of the respondents have high satisfaction regarding the price of Mysore
Sandal.
94.5% of the respondents said Mysore sandal soap is easily available.
26% of the respondents prefer samples and 24% of the respondents prefer
discounts as promotional offer.
Majority of the respodnents are aware about Mysore and Nima Sandal Soap.
70% of the people said packaging of Mysore Sandal soap need not to be
improved.
43% of the respondents said Mysore Sandal Soap is very good.
59% of the respondents are suggesting to reduce the price of Mysore Sandal Soap.
74% of the respondents are brand loyal to Mysore Sandal Soap.
CHAPTER – 7
SUGGESTIONS
Following are the suggestions:
There is needed to make more awareness of Mysore sandal soaps.
Most of the respondents are thinking that the price of Mysore sandal
soaps is high when compared to other soaps in the market, so the price
should reduce to some extent.
Company should concentrate more on television for advertisement, as
mostly people get attracted through television only.
The respondents preferred discounts, coupons, freegifts, and samples
for purchasing of bathsoaps.so it has to maintain in an efficient
manner.
Most of the respondents are influenced by the quality while purchasing
bath soaps, hence it is the important factor which should be
maintained.
The increasing sales are possible by adequate availability with the
stock of Mysore sandal soaps.
CHAPTER – 8
BIBLIOGRAPHY
Books:
Marketing management by Philip Kotler.
Marketing research by G.C. Bery.
Research Methodology by Kothari.
Consumer Behavior by David L.Loudon & Albert J.Della Bitta.
Websites:
www.indianfoline.com
www.mysoresandal.com
www.ibef.org
CHAPTER – 9
ANNEXURE
QUESTIONNAIRE
Name of the respondent:___________________________________
Address:___________________________________________________________
Age:__________ Sex:____________ Income level:_______________
Occupation:________________ Educational Qualification:__________--
1. Are you aware of Mysore Sandal Soaps?
a) Yes b)No
2. Which soap are you using at present?_____________________
3. How often you buy the soap?
a) Weekly b) Twice a month c) Monthly
d) Occasionally e) Others _________
4. Which aspects influence you while purchasing bath soap?
a) Price b) Quality c) Fragrance d) Durabality
e) Packaging f) Quantity g) Goodwill h) Others
5. Which feature in the Mysore Sandal Soap do you like?
a) Price b) Quality c) Fragrance d)Packaging
e) Quantity f) Others
6. How do you know about the Mysore Sandal Soaps?
a) Print Media b)Electronic Media c) Friends & Relatives
d) Peers & Colleagues e)Others
7. Which media would you suggest for promotion for Mysore Sandal Soap?
_________________________________________________________
8. What is your opinion about price of the Mysore Sandal Soaps?
a) Satisfactory b) Low c) High d) Competitive
e) Others
9. If there is non availability of the product do you shift to?
a)Other Outlet b)Other brand
10. How do you rate the overall performance of Mysore Sandal Soaps?
a)Excellent b)Good c)Average d)Poor e)Very poor
11. Which sales promotion activity is more effective for the Mysore Sandal Soaps?
a)Samples b)Free gifts c)Discount coupons d)Others
12. Specify sandal soaps you aware of?
a) Mysore Sandal Soaps b)Santoor c)Nima Sandal d)Rexona e) Others
13. Do you feel Mysore Sandal Soaps packaging is to be improved?
a)Yes b)No
14. Any suggestions for KS&DL on the Mysore Sandal Soaps ___________
__________________________________________________________