TABLE OF CONTENTS

Chapters
Industry profile
Company profile
Introduction to the topic
Research methodology
Analysis and Interpretation
Findings
Suggestions
Conclusion
Appendices
Bibliography

INDUSTRY
PROFILE

Introduction to FMCG Industry:

FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily
deals with the production, distribution and marketing of consumer packaged goods. The Fast
Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the
consumers at a regular interval. Some of the prime activities of FMCG industry are selling,
marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain,
production and general management.
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples
of FMCG generally include a wide range of frequently purchased consumer products such as
toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as
other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG
may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks,
tissue paper, and chocolate bars.
A subset of FMCGs are Fast Moving Consumer Electronics which include innovative electronic
products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These
are replaced more frequently than other electronic products.
White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music
Systems, etc.
In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India.
According to the AC Nielsen India study, the industry grew 5.3% in value between 2004 and
2005.

What are FMCG products?

FMCG is an acronym for FAST MOVING CONSUMER GOODS, which refer to things that
we buy from local supermarkets on daily basis, the things that have high turnover and are
relatively cheaper.

Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples
of FMCG generally include a wide range of frequently purchased consumer products such as
toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as
other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG
may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks,
tissue paper, and chocolate bars

FMCG and its categories:

1. Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps);
2. Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products;
3. Household care fabric wash including laundry soaps and synthetic detergents; household
cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners,
insecticides and mosquito repellents, metal polish and furniture polish.
4. Food and health beverages, branded flour, branded sugarcane, bakery products such as
bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled
water etc, snack food, chocolates, etc.
5. Frequently replaced electronic products, such as audio equipments, digital cameras,
Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc.

SECTOR OUTLOOK
FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000
crores. FMCG sector generates 5% of total factory employment in the country and is creating
employment for three million people, especially in small towns and rural India

ANALYSIS OF FMCG SECTOR

Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector

Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale, especially in small
sectors
2. Low exports levels
3. "Me-too" products, which illegally mimic the labels of the established brands. These products
narrow the scope of FMCG products in rural and semi-urban market.

Opportunities:
1. Untapped rural market
2. Rising income levels i.e. increase in purchasing power of consumers
3. Large domestic market- a population of over one billion.
4. Export potential
5. High consumer goods spending

Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
Tax and regulatory structure

FMCG industry economy

FMCG industry provides a wide range of consumables and accordingly the amount of
money circulated against FMCG products is also very high. The competition among
FMCG manufacturers is also growing and as a result of this, investment in FMCG
industry is also increasing, specifically in India, where FMCG industry is regarded as the
fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is
estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New
Zealand which accounts for 5% of Gross Domestic Product (GDP).

Common FMCG products

Some common FMCG product categories include food and dairy products, glassware, paper
products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing
and stationery, household products, photography, drinks etc. and some of the examples of FMCG
products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes,
watches, soaps etc.

Market potentiality of FMCG industry

Some of the merits of FMCG industry, which made this industry as a potential one are low
operational cost, strong distribution networks, presence of renowned FMCG companies.
Population growth is another factor which is responsible behind the success of this industry.

Leading FMCG companies

Some of the well known FMCG companies are Sara Lee, Nestl, Reckitt Benckiser, Unilever,
Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi and Mars etc.

Scope of the Sector

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the
economy. A well-established distribution network, intense competition between the organized
and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over
60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been
estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores
in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and
confectionery categories are estimated to be the fastest growing segments, says an HSBC report.
Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine
recovery since then.
For example, Hindustan unilevers Limited (HUL) has shown a healthy growth in the last quarter.
An estimated double-digit growth over the next few years shows that the good times are likely to
continue.

Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural
FMCG market is something no one can overlook. Increased focus on farm sector will boost rural
incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure
facilities will improve their supply chain. FMCG sector is also likely to benefit from growing
demand in the market. Because of the low per capita consumption for almost all the products in
the country, FMCG companies have immense possibilities for growth. And if the companies are
able to change the mindset of the consumers, i.e. if they are able to take the consumers to
branded products and offer new generation products, they would be able to generate higher
growth in the near future. It is expected that the rural income will rise in 2007, boosting
purchasing power in the countryside. However, the demand in urban areas would be the key
growth driver over the long term. Also, increase in the urban population, along with increase in
income levels and the availability of new categories, would help the urban areas maintain their
position in terms of consumption. At present, urban India accounts for 66% of total FMCG
consumption, with rural India accounting for the remaining 34%. However, rural India accounts
for more than 40% consumption in major FMCG categories such as personal care, fabric care,

and hot beverages. In urban areas, home and personal care category, including skin care,
household care and feminine hygiene, will keep growing at relatively attractive rates. Within the
foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth
categories in both rural and urban areas.

Indian FMCG Sector

The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1
billion. Well-established distribution networks, as well as intense competition between the
organised and unorganised segments are the characteristics of this sector. FMCG in India has a
strong and competitive MNC presence across the entire value chain. It has been predicted that
the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The
middle class and the rural segments of the Indian population are the most promising market for
FMCG, and give brand makers the opportunity to convert them to branded products. Most of the
product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita
consumption as well as low penetration level, but the potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well. According
to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the
balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned
by Hindustan Lever. Pepsi is at number three followed by Thums Up. Britannia takes the fifth
place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft
drink and cigarette companies have always shied away from revealing. Personal care, cigarettes,
and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of
the top 100 brands.

TOP TEN PLAYERS IN FMCG SECTOR

1) Hindustan Unilever Ltd
2) ITC (Indian Tobacco Company)
3) Nestl India
4) GCMMF (AMUL)
5) Dabur India
6) Asian Paints (India)
7) Cadbury India
8) Britannia Industries
9) Procter & Gamble Hygiene and Health Care
10) Marico Industries

Soap Industry In India

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

Overview of the Indian Soap Category

India is a vast country with a population of 1,030 million people. Household penetration of soaps is
98%. People belonging to different income levels use different brands, which fall under different
segments (see table below), but all income levels use soaps, making it the second largest category in
India (detergents are number one). Rural consumers in India constitute 70% of the population. Rural
demand is growing, with more and more soap brands being launched in the discount segment targeting
the lower socio-economic strata of consumers.
Soap Price (per 75 gram cake)
Segment
in
in US$
Carbolic*
Discount
Popular
Premium
Super

rupees
5.00
7.00
11.00
17.00
35.00

10 cents
15 cents
23 cents
36 cents
75 cents

Premium

History of Soap in India

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

started marketing cold process soaps. During World War I, the soap industry floundered, but after the
war, the industry flourished all over the country.
Mr. Jamshedji Tata set up India's first indigenous soap manufacturing unit when he purchased OK
Coconut Oil Mills at Cochin Kerala around 1918. OK Mills crushed and marketed coconut oil for
cooking and manufactured crude cold process laundry soaps that were sold locally. It was renamed
The Tata Oil Mills Company and its first branded soaps appeared on the market in the early 1930s.
Soap became a necessity for the moneyed class by around 1937.

Brand Positioning Then and Now

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

Consumer Use Today

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

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

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

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

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

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

Marketing
Soap is primarily targeted towards women, as they are the chief decision-makers in terms of soap
purchase. Medicated positionings like germ killing and anti-bacterial are marketed to families.
About 75% of soap can be bought through these different types of outlets:
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.

COMPANY
PROFILE

HINDUSTAN UNILEVER LIMITED

Introduction
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with
leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread
across 20 distinct consumer categories, touch the lives of two out of three Indians. They endow
the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.13,718
crores.
The mission that inspires HUL's over 15,000 employees is to "add vitality to life". With 35
Power Brands, HUL meets every day needs for nutrition, hygiene, and personal care with brands
that help people feel good, look good and get more out of life.
It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the equity.
A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about
100 countries worldwide.

Products & Services of HUL: 1. Home & Personal Care

Personal Wash
Lux

Breeze

Lifebuoy

Dove

Liril

Pears

Hamam

Rexona

Laundry
Surf Excel

Skin Care
Fair & Lovely

Rin

Pond's

Wheel

Vaseline
Aviance

Hair Care

Oral Care

Sunsilk Naturals

Pepsodent

Clinic

Closeup

Deodrants
Axe

Color Cosmetics
Lakme

Rexona

Ayurvedic Personal and Health Care

Ayush

2. Foods: Tea
Brooke Bond

Coffee
Brooke Bond Bru

Lipton

Foods
Kissan
Annapurna
Knorr

Ice Cream
Kwality Wall's

LUX SOAP

The name Lux means light in Latin.

In the country since 1929 and endorsed by popular film stars, Lux is the biggest brand in
the soap category.

First brand ambassador: Leela Chitnis (1929)

Everything about the brand from the look and feel of the products and packaging to the subtle
fragrances is a delight to the senses. In fact, Lux has been making waves since 1924, when it
launched the world's first mass-market beauty soap at a fraction of the cost of some expensive
brands.

How it all started

Lux was first introduced as a toilet soap in 1925. Produced by Lever Brothers, it arrived
in the UK in 1928, offering people a chance to pamper themselves for a modest price.

From the 1930s right through to the 1970s, Lux soap colours and packaging were altered
several times to reflect fashion trends. In 1958 five colours made up the range: pink,
white, blue, green and yellow. People enjoyed matching their soap with their bathroom
colours.

In the early 1990s, Lux responded to the growing trend away from traditional soap bars
by launching its own range of shower gels, liquid soaps and moisturising bars. Lux
beauty facial wash, Lux beauty bath and Lux beauty shower were launched in 1992.

In 2004, the entire Lux range was relaunched in the UK & Ireland to include five shower
gels, three bath products and two new soap bars. 2005 saw the launch of three exciting
new variants with dreamy names such as Wine & Roses bath cream, Glowing Touch
and Sparkling Morning shower gels.

Advertising

In 2004, Sarah Jessica Parker featured in the Lux 'Brings Out the Star in You advertising
campaign. Sarah Jessica Parker epitomizes the modern Lux woman: comfortable and
confident in her femininity.

Prominent Variant:

Lux fruit
Lux saffron
Lux sandalwood
Lux rose

 Lux international
Lux chocolate
Lux aromatic extracts
Lux oil and honey glow etc.

Aishwarya Rai in a print advertisement featuring Lux international

DOVE SOAP
Hindustan unilever limited offers dove. Dove soap, which was launched by unilever, has been
available in India since 1995. It provides a refreshingly real alternative for women who
recognize that beauty is not simply about how you look, it is about how you feel.
The skin`s natural ph is slightly acidic 5.5-6. Ordinary soaps tend to be alkaline, with ph higher
than 9. Dove is formulated to be ph neutral [ph between 6.5 and 7.5] and to be mild on skin. This
makes it suitable for all skin types for all seasons. While dove soap bar is widely available across
the country, dove body wash is available in select outlets.
Dove has been positioned throughout its history without referring to it as "soap", but as a "beauty
bar" with one-fourth cleansing cream. Doves logo is a silhouette profile of a dove, the colour of
which often varies. Doves products include: antiperspirants/deodorants, body washes, beauty
bars, lotions/moisturizers, hair care and facial care products.

PEARS SOAP
Pears transparent soap is a brand of soap first produced and sold in 1789 by Andrew Pears at a
factory just off Oxford Street in London, England. It was the world's first transparent soap.
Under the stewardship of Thomas J. Barratt, A. & F. Pears Ltd. company initiated a number of
innovations in sales and marketing. According to Unilever records, Pears Soap was the world's
first registered brand and is therefore the world's oldest continuously existing brand.

Benefits of Pears Soap

Pears soap is hypo-allergenic and non-comedogenic so it will not clog pores, and contains no
color that may irritate sensitive skin. It is designed to be a gentle and mild cleanser. It is made
with quality ingredients including glycerin and natural oils. It contains no animal byproducts.

How is Pears Soap Made?

Very little has changed from the first process started by Andrew Pears, which basically follows
the same process used for other soaps. Each bar is aged under controlled conditions for three
months. This time frame allows for the curing period of the soap. The longer each bar cures, the
more it allows for a harder bar and gentle cleansing. After each bar has matured, it is individually
polished and packaged.

Specialty of Pears Soap :

Perhaps the most prominent feature of Pears Soap is the transparency of each bar. The glycerine
that is a natural byproduct of the soap-making process is retained in the soap, causing the
transparency. Another feature is the concave shape of each bar. According to the
thesoapopera.com, this is caused by the curing process and not a mold.

Where is Pears Soap Made?

Pears soap was introduced in India in 1902. The facility in India is the only facility in the world
that makes the famous Pears soap. The same quality that made Pears famous is still as important
today as it was when it was first started.

Significance of Pears Soap:

Andrew Pears revolutionized the soap world when he developed his formula for Pears Soap. He
claimed his soap as "safe and healthy and made its users beautiful." When Pears soap first came
on the market in the late 18th century, other soaps were indeed harsh and would sometimes
damage delicate skin. Pears soap offered a more gentle cleanser.

Different Types of Pears Soap:

Pears soaps have expanded into different product lines. It now offers the traditional transparent
soap along with shower gels, body washes, facial cleansers and hand washes. It comes in three
variants: the traditional Amber; Lemon Flower Extract using the "oil clear formula" and Tea Tree
Oil, which is known for its antibacterial properties.

Consumer Perception Towards Bathing Soap:

Consumer is a broad label for any individuals or households that use goods and services

INTRODUCTION
TO
THE TOPIC

generated within the economy. The concept of a consumer occurs in different contexts, so that
the usage and significance of the term may vary.

Types Of Consumers:-

Karma Queen "A woman aged in her 40s or 50s who tends to buy organic food, wear
Birkenstock footwear, practice yoga and buy high-end bath products.

Geek Gods "Men aged under 35 who can't live without the latest gadget and are eager to help
others understand their electronics. They are considered the most benevolent of the consumer
types.

Innerpreneurs "The rebels, people who ignore trends and focus on their own peace of mind.
Such consumers may be in the market for a life coach or challenging vacation in the wilderness.

Denim Dads "Active in raising children and embrace a balance between life and work. They
might buy expensive jeans and pick the same music player their kids use.

Parentocrats "Upper middle class parents consumed with their children's well-being who
may invest heavily in music lessons or videos promising to make children smarter.

Perception
Perception is the process through which a person forms an opinion about the various stimuli he
receives from his sensory organs. In marketing, perception is concerned with understanding how
the consumer views a product or service. The five senses of a person help him in this process.
The marketer uses various props to stimulate the consumer, that is, through the use of colors,
sound, touch, taste, or smell, to observe the product.
The marketer must distinguish his message from the competitor's message. This is when Just
Noticeable difference (JND) comes to their aid. JND is the minimum difference that the
consumer can detect between two stimuli he receives. It helps the consumer to distinguish
changes in prices among purchase alternatives. Marketers thus use stimuli to grab customers'
attention and most often these efforts are clearly visible and known to the customer.
However, they sometimes use indiscernible stimuli that are just below a consumer's threshold so
as to influence him. This is called subliminal message. Of all the stimuli a consumer comes into
contact with, he pays attention to only a few and interprets the messages that he remembers. This
is called the process of perception and has the three steps: 1) exposure, 2) attention, and 3)
interpretation.
How well the consumer pays attention will depend on the stimulus, and also the consumer's
interest and need for that product. The consumer interprets the information in two ways: 1) the
literal meaning or the semantic meaning and 2) the psychological meaning. Hence we are guided
by our learning as well as the semantic meaning of a word. A consumer also interprets the
symbols and other physical features of the product on the basis of his experience and cultural
beliefs. This is called semiotics.
Marketers make use of perception to formulate marketing strategies. The marketers use a
perceptual map, wherein they find out the attributes or the characteristics that the consumer
associates with the product and they create the product accordingly. Thus, development of a
brand or the logo of the product, packaging of the product, etc., have to be made keeping the
consumer's perception in mind.

BATH SOAP:

Soap is a cleansing agent made from the salts of vegetable or animal fats.
Bath soap is used as a toiletry face soap, toilet soap. Bath soap is something that we all use when
taking a shower or a bath. Choosing the right soap can be important, especially for someone with
sensitive skin or allergies. Selecting the characteristics of soap such as price, fragrance, ingredients,
color and form such as bar, liquid or powder must also be considered when buying bath soap.

REVIEW
OF
LITERATURE

FRAYAN MAMA (2006-07), gives an overview in his study that the author discusses the
definition of market segmentation and elucidates which definition is most meaningful for the
dissertation. The follow up discussion relates to key literature areas that are relevant to the study.
The main aim of these discussions is to understand the segmentation process and to highlight the
existing body of literature that informs this study. This study contributes to the literature
available on market segmentation with a focus on the FMCG industry. As previously mentioned
in the introduction of this dissertation, the current literature on segmentation tends to be based
primarily on telecoms and banking. However, the earlier work on segmentation was written in
reference to FMCGs, as they were the first to conduct segmentation. However, interestingly,
there was no mention of FMCGs as an industry in the literature. The purpose of presenting three
case studies (all FMCG based) was to determine how they clarify and extend our understanding
of segmentation within the FMCG industry. This dissertation provides a current application of
segmentation within this industry and explains it through the 5 Is segmentation process model.
According to Tynan and Drayton (1987), segmentation is a crucial marketing strategy.

Dibb (1999) believes that segmentation is a means of imposing a structure on the market in
order to simplify the formulation and implementation of marketing strategies. To support this
further, Wedel and Kamakura (2000) state that homogenous segments do not naturally exist
within a market; but it is the marketers strategic view of the market that determines these
segments. Hence, different segments in the same market may need to be identified for different
strategic objectives (Wedel and Kamakura, 2000).

Urban (1978) assumes that there are existing differences among segments; therefore the
marketers job is not to actually segment the market but to learn how it is naturally segmented
(Urban, 1978). Consequently, when the structure of the segmentation is understood, the marketer
can either select the most favourable target segment for his brand and ignore others, or develop
different marketing strategies designed to reach and influence different segments (Urban, 1978).

Twedt (1975) stated that market segmentation is about the development of two or more
different marketing programs for a product or service, with each marketing program aimed at a

different grouping of individuals whose expected reaction to sellers marketing efforts will be
similar during a specific time period. The author believes that this definition takes into account
consumers needs and preferences which change over time, and therefore segments need to be
reevaluated. In order to acknowledge a definition of segmentation, it is vital for the marketing
mix to be considered in the definition as this dissertation is about actioning segmentation.
Therefore, the definition by Twedt (1975) would be appropriate to use for this dissertation as it
refers to dividing up the market according to the consumer needs which are then entertained
through the marketing mix.

Doyle (1998) and Yankelovich (1964) provide practical reasons for segmenting markets
which are:
Better matching of customer needs.
Enhanced profits: Customers differ in their price sensitivity and by segmenting the market; the
marketer can raise average prices which would result in enhanced profits (Doyle, 1998;

Yankelovich 1964).
Retain customers: By providing the right products at each family lifecycle stage, the marketer
can retain customers.
Targeted communications: Segmenting the market can aid in delivering a targeted USP (unique
selling proposition) to a certain segment (Doyle 1998; Yankelovich 1964).

According to Wind (1978), design and evaluation of data collection procedures have
received little attention in academic market segmentation literature but commercial researchers
have made significant contributions in this area. However, he stresses that few innovative data
collection approaches have been used in segmentation studies (Wind 1978).

Haley (1995) argues that if marketers segment their markets based on benefits rather than
customer characteristics, they are more likely to uncover the customers reasoning regarding
purchase and consumption. Most empirical benefit segmentation studies do not generally
differentiate between product attributes and benefits sought. Haley (1995) also argues that both
geographic and demographic segmentation are not efficient predictors of future buying behaviour
as they rely on descriptive factors rather than causal factors. Therefore, benefit segmentation is

the identification of market segments by causal factors rather than descriptive factors (Haley,
1995). The basis of benefit segmentation is that the benefits people are seeking in consuming a
given product are the basic reasons for the existence of true market segments
(Haley, 1995).

Myers (1976) sees benefit segmentation study as a method of finding new product
opportunities in very broad product/services categories, such as food, drinks, etc.
According to Beane and Ennis, (1987) a benefit segmentation study should accomplish
three factors:
1) Find out the benefits individuals are looking for in a product
2) The different kinds of people looking for a benefit
3) The matching of existing brands to these benefit needs.

Young et al (1978) argue that on several occasions, a segmentation analysis based on benefits
is not relevant. These situations are:
The benefit is based around the occasion for which the product is used e.g., clothes suitable for
one occasion may not be suitable for another.
The appearance or style of the product becomes the overriding criteria of success.

Dickson (1982) states that segmentation bases are generally divided into two types: general
customer characteristics such as demographics, socioeconomic, and lifestyle measures and so
called situationspecific customer characteristics based on measures of customer brand attitudes,
brand preferences, benefits sought, product usage and response sensitivity to various elements of
the marketing mix.
Occasionbased segmentation is based on purchase occasions and is normally used as a
segmentation method for consumer goods (Dubow 1992). The occasion based approach to
segmentation was first reported at the 1976 AMA Attitude Research Conference (Stout et al.,
1977) and has since then been used into categories such as beer, gasoline, clothing, restaurants
and automobile rentals (Dubow 1992). According to Dubow (1992) diffusion of the technique
has been slow and reference to it in reference journals and the teaching literature has been

virtually nonexistent. According to Dubow (1992) national analysts have only discussed the
approach at proceedings (McDonald and Goldman 1979; Greenberg 1982) or as commentary
(Greenberg and McDonald 1989), all without any hard data.

Dickson (1982) has also

discussed the technique on a theoretical basis but diverted it towards a situation based approach
and thereby into a priori segmentation scheme and away from a cluster derived benefits approach
(Dubow 1992).

RESEARCH
METHODOLOGY

MEANING:
RESEARCH METHODOLOGY Is a way to systematically solve the research problem. It
may be understood as science of studying how research is done scientifically. In it we
study the various steps that are generally adopted by a researcher un studying his
research problem along with the logic behind them. It is necessary for the researcher to
know not only the research methods but also the methodology.

1. Objectives of the study:

To study the consumer perception towards bathing soaps

To study the awareness regarding various brands of soap.

To identify the factors considered before buying bath soap.

To identify the soap having best range of prices , attractive packaging and easy
availability

2. Need of the study:

The need of the study is to determine the consumer perception towards the bathing
soap.

3. Scope of the study:

The scope of the study is restricted to analyze the consumer perception towards the
bathing soap with reference to lux dove and pears within the city of Ludhiana only.
4.

Research design: In the study Descriptive research design is used.

5.

Data collection: data has been collected both from primary and secondary
sources.
Primary- Questionnaire
Secondary- internet, magazines

6.

Sample size: 100 respondents

7.

Sampling technique: convenient sampling

8.

Sample area: Ludhiana city

9. Limitations of the study:

This study is done in Ludhiana city hence it is applicable only in this particular region
and not elsewhere. .
Time frame of this study was limited. The result could be different if the time frame
would have been long.
Sometimes some respondents were not in full mood to give the answers to the
questions so some of the answers may not be exact.

DATA
ANALYSIS AND
INTERPRETATION

PERSONAL INFORMATION:
1. Gender of respondents:
Gender

Respondents

Percentage

Male

48

48

Female

52

52

Total

100

100

sex
52%

2. Income Group:

48%

Male
Female

Income group

Respondents

Percentage

< 1 lakh

13

52

52

35

24

24

16

16

100

100

5
Total

income group
16% 8%
24%

52%

< 1 lakh
1--3
3--5
>5

3. Age group of the respondents:

Age group

Respondents

Percentage

12-18
19-25
26-35
36-45
> 45
Total

10
50
22
10
8
100

10
50
22
10
8
100

age group
10%
22%

8%
10%
50%

12--18
19--25
26--35
36--45
> 45

4. Number of family members:

Family

Respondents

Percentage

members
<5

58

58

57

34

34

710

>10

Total

100

100

Family members
6%
34%

2%
58%

<5
5--7
7--10
>10

1. Awareness regarding various brands of soap:

Options

Lux
Dove
Pears
Cinthol
Liril
lifebuoy
Rexona

Aware
Respond
ents
100
96
94
92
84
92
92

Unaware
Percenta Respond
ge
ents
100
0
96
4
94
6
92
8
84
16
92
8
92
8

percenta
ge
0
4
6
8
16
8
8

Margo
Santoor
Fair
glow
Park
avenue

78
82
84

78
82
84

22
18
16

22
18
16

58

58

42

42

aware

Column1

100 96 94 92
84 92 92 78 82 84

16

22 18 16

58
42

Interpretation:100% of the respondents are aware of lux soap.96% are aware of dove.94%
are aware of pears. The least awareness is regarding Park Avenue (58%).

2. Number of soaps purchased every month:

Option

Respondents

Percentage

13

30

30

46

34

34

>6

36

36

Total

100

100

36%

30%
34%

1--3
>6

4--6

Interpretation: The above chart shows that 36% of

the respondents purchase more than 6 soap every month.
34% purchase 4-6 soap every month. 30% of the
respondents purchase 1-3 soaps.

3. Frequency of purchase:
Options
Weekly
Bimonthly
Quarterly
Semi

Respondents
12
80
8
0

Percentage
12
80
8
0

annually
Total

100

100

8%

freq uen cy
12%
8 0%

Interpretation:

It is very much clear from the

above chart that 80% respondents purchase soaps
bimonthly,12% purchase soap weekly and a minimum
of 8% respondents purchase soap quarterly
4. liking towards the bath soap:
Options
Herbal soap
Beauty soap
Medicated

Respondents
23
38
39

Percentage
23
38
39

we
bi
quarte
m
ekl
onthl
y
r lyy

soap
Total

100

100

t ype
23%
39%
3
8%

bea
herbal
m
edi
u ty
cated

Interpretation:

out of 100 respondents 39%

respondents like medicated soap 38% like beauty
soap and 23%respondents like herbal soap.
5. Bath soap currently in use:
Options
Lux

Respondents
32

Percentage
32

Dove
Pears
Others
Total

15
22
31
100

15
22
31
100

31% 31%
22% 15%

lux
pears

dove
others

Interpretation:

It is very much clear from the

above chart that 32% use lux, 22% use pears, dove is
been used by 15% respondents while 31% respondents
are using other soaps( such as 16 use dettol 4 use
fairglow,)
6. Source of information about bath soap:
Options

Respondent

Percentage

Family
Relatives
TV
Newspaper
Shopkeeper

s
29
3
55
4
0

29
3
55
4
0

reference
Others
Total

9
100

9
100

9% 29%
4%
4%
55%

Interpretation:

family
TV
shopkeeper

relative
newspaper
others

out of 100 respondents 55% of

the respondents got the information about the soap from
TV, 29% from their family members,3% from the
relatives, 4% from newspaper and 9% got the
information from other sources( doctor, display in
shops)

FINDINGS
OF
THE STUDY

Findings of the study:

100% respondents were aware of lux soap while 42% respondents were not aware about
park avenue.
36% of the respondents purchase more than 6 soaps every month.
80% respondents purchase soap bimonthly.
39% respondents like medicated soap.
32% of the respondents were currently using lux soap.
55% of the respondents got the information about their soap from TV.
41% of the respondents consider quality as the most preferred factor before buying a
soap.
60% of the respondents feel that lux have the best range of prices.
39% of the respondents feel that pears have zero side effects.
41% of the respondents were of the view that pears have the most attractive packaging.
46% of the respondents were able to recall the ad of lux out of which 60% were able to
recall the ad featuring Abhishek and Ashwariya.
96% of the respondents were satisfied with the soap they are currently using.
22% of the respondents were planning to switch over to some other brand of soap (out of
which 63% would switch to pears).

RECOMMENDATIONS

Recommendations:
Dove should try to attract more customers by reducing its prices.
Lux should improve its packaging.
Pears and dove should make use of celebrity endorsement in order to increase their
customers.
Efforts should be made by lux to increase the moisturizing ingredients.
Pears lux and dove should go for an medicinal variant.

Dove and Pears should add floral fragrance to their soap.

CONCLUSION

Conclusion:
This project was a combination of both theoretical and practical knowledge. From this
survey one can conclude that in the recent years the awareness regarding the varieties and
effects of soaps have increased many folds. While buying soaps quality is preferred over
the price. It was also found that packaging and celebrity endorsements influence the
buying decisions of the consumers. At last It can be said that if the recommendations are
followed the sales of the companies can be improved.

APPENDICES

QUESTIONNAIRE
Dear participants I will be very thankful to you for your cooperation. The topic of this
questionnaire is consumer perception towards toilet/bath soaps (Lux, Dove, Pears). This
questionnaire is for research purpose. Please provide information with confidence.

Personal Information:
Name:
Gender:
Age:
Education qualification:
Occupation:
Annual income: <1 lakh ( ), 1-3 lakh ( ), 3-5 lakh ( ), >5 lakh ( )
Family members: <5 ( ), 5-7 ( ), 7-10 ( ), >10 ( )

QUESTIONS
1. What r the brands of soap you are aware of?
Products
Spontaneous
Aided
Lux
Dove
Pears
Cinthol
Liril
Lifebuoy
Rexona
Margo
Santoor
Fair glow
Park avenue
2. How many bath soap do you purchase for your household every month?
1-3

4-6

more than 6

3. What is the frequency of purchase?

Weekly

Bimonthly

quarterly

semi-annually

4. Which kind of bath soap do you like?

Herbal soap

Beauty soap

Medicated soap

5. Which bath soap do you use?

Lux

Dove

Pears

Other (specify)

6. How did you come to know about your favorite bath soap?
Family

relatives

TV

Shopkeeper reference

newspapers

others (specify)

7. What are the factors you take into consideration before buying soap?
Price

Fragrance

Quality

Hygienic

Special offer

Brand name

Availability

Others

8. Which brand does u think has the best range of prices?

Lux

Dove

9. Which brand is easily available in stores?

Pears

Others (specify)

Lux

Dove

Pears

Others (specify)

Pears

Others (specify)

10. Which soap do u think has zero side effects?

Lux

Dove

11. Which brand is having most attractive packaging?

Lux

Dove

Pears

Others (specify)

12. Which Ad do you recall?

Lux _______________________________________________________________
Dove _______________________________________________________________
Pears_______________________________________________________________

13. Are you satisfied with your soap? Y / N

14. If no what do you expect more from your soap?

15. Do you have any plan to switch over? Y / N

16. If yes, to which brand?_______________________________________________

17. Which celebrity is most suitable for endorsing bath soap?

18. Rank the following soaps with respect to corresponding attributes.

Attributes
Price

Lux

Dove

Pears

hygiene
Brand image
Skincare
Easy availability
Packaging
Celebrity
endorsement
Moisturizing Effect
Gsood
effect
on
germs

BIBLIOGRAPHY

BIBLIOGRAPHY
BOOKS:

Marketing Management

Philip Kotler

Research Methodology

C.R.Kothari

WEBSITES:
www.hll.com

www.wikipedia.org

www.google.com

www.fmcg.com