Professional Documents
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Market Segmentation FMCG
Market Segmentation FMCG
CONSUMER GOODS)
(SOAP) PRODUCT IN SATNA
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INDEX
CHAPTER TOPICS COVERERD
CHAPTER 1. INTRODUCTION
CHAPTER 4. OBJECTIVES
CHAPTER 7. CONCLUSION
CHAPTER 9. RECOMMENDATION
CHAPTER 9. FINDING
CHAPTER11. BIBLIOGRAPHY
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MARKET SEGMENTATION
INTRODUCTION
The market for any product is normally made up of several segments. A
‘market’ after all is the aggregate of consumers of a given product. And,
consumer (the end user), who makes a market, are of varying characteristics and
buying behavior. There are different factors contributing for varying mind set of
consumers. It is thus natural that many differing segments occur within a
market.
In order to capture this heterogeneous market for any product, marketers usually
divide or disintegrate the market into a number of sub-markets/segm
ents and the process is known as market segmentation market segmentation.
Thus we can say that market segmentation is the segmentation of markets into
homogenous groups of customers, each of them reacting differently to
promotion, communication, pricing and other variables of the marketing mix.
Market segments should be formed in that way that difference between buyers
within each segment is as small as possible. Thus, every segment can be
addressed with an individually targeted marketing mix. The importance of
market segmentation results from the fact that the buyers of a product or a
service are no homogenous group. Actually, every buyer has individual needs,
preferences, resources and behaviors. Since it is virtually impossible to cater for
every customer’s individual characteristics, marketers group customers to
market segments by variables they have in common. These common
characteristics allow developing a standardized marketing mix for all customers
in this segment.
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Through segmentation, the marketer can look at the differences among the
customer groups and decide on appropriate strategies/offers for each group.
This is precisely why some marketing gurus/experts have described
segmentation as a strategy of dividing the markets for conquering them.
Segmenting markets is the foundation for superior performance. Understanding
how buyer needs and wants vary is essential in designing effective marketing
strategies. Segmenting markets may be critical to developing to developing and
implementing market driven strategy.
The need to improve an organization’s understanding of buyers is escalating
because of buyers demand for uniqueness and an array of technology available
to generate products to satisfy the demands. Companies are responding to the
opportunities to provide unique customer value with products.
Buyers vary according to how they use the products, the needs and preferences
that the products satisfy, and their consumption patterns. These differences
create market segments. Market segmentation is the process of identifying and
analyzing subgroups of buyers in a product market with similar response
characteristics. Recognizing differences between market segments, how they
change better and faster than competitors is an increasingly important source of
competitive advantage.
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ATTRIBUTES OF EFFECTIVE SEGMENTATION
Market segmentation is resorted to for achieving certain practical purpose. For
example, it has to be useful in developing and implementing effective and
practical marketing programs. For this to happen, the segments arrived at must
meet certain criteria such:-
a. Identifiable - The differentiating attributes of the segments must be
measurable so that they can be identified.
d. Profitable - There is no use in locating segments that are sizeable but not
profitable.
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Criteria for selecting Market Segments
Measurable
A segment should be measurable. It means you should be able to tell how many
potential customers and how many businesses are out there in the segment.
Accessible
A segment should be accessible through channels of communication and
distribution like: sales force, transportation, distributors, telecom, or internet.
Durable
Segment should not have frequent changes attribute in it.
Substantial
Make sure that size of your segment is large enough to warrant as a segment
and large enough to be profitable
Unique Needs
Segments should be different in their response to different marketing efforts
(Marketing Mix).
Geographic variables
Demographic variables
Psychographic variables
Behavioral variables
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Geographic Segmentation
Demographic Segmentation
Age
Gender
Income
Occupation
Education
Social Class
Generation
Family size
Family life cycle
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Home Ownership
Religion
Ethnic group/Race
Nationality
Demographic factors are most important factors for segmenting the customers
groups. Consumer needs, wants, usage rate these all depend upon demographic
variables. So, considering demographic factors, while defining marketing
strategy, is crucial.
Psychographic Segmentation
Interests
Opinions
Personality
Self Image
Activities
Values
Attitudes
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Behavioral Segmentation
Usage Rate
Product benefits
Brand Loyalty
Price Consciousness
Occasions (holidays like mother’s day, New Year and Eid)
User Status (First Time, Regular or Potential)
Business market can be segmented on the bases consumer market variables but
because of many inherent differences like
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Purchasing approaches: Purchasing-function organization, Nature of
existing
relationships, purchase policies and criteria.
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better match its products and capabilities to buyer’s value requirements.
Customer satisfaction can be improved by providing a value offering that
matches the value proposition considered important by the buyer in a segment.
To get a product or service to the right person or company, a marketer would
firstly segment the market, then target a single segment or series of segments,
and finally position within the segment.
Market Segmentation is the process of placing of subsets of buyers within a
market that share similar needs and demonstrate similar buyer behavior. The
world is made up of billions of buyers with their own sets of needs and
behavior.
A segment is a possible market target for an organization competing in the
market. Segmentation offers a company an opportunity to better match its
products and its capabilities to buyer’s value requirements. Customer
satisfaction providing a value offering that matches the value proposition
considered important by the buyers in a segment.
There are many ways that a segment can be considered. For example, the auto
market could be segmented by: driver age, engine size, model type, cost, and so
on. However the more general bases include:
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By geography - such as where in the world was the product bought.
By psychographics - such as lifestyle or beliefs.
By socio-cultural factors - such as class.
By demography - such as age, sex, and so on.
A company will evaluate each segment based upon potential business success.
Opportunities will depend upon factors such as: the potential growth of the
segment the state of competitive rivalry within the segment how much profit the
segment will deliver how big the segment is how the segment fits with the
current direction of the company and its vision.
Firm's policy or strategy guided by market trends and customer needs instead of
the firm's productive capacity or current products.
Process:-
1. Segments
2. Value opportunities
3. Capabilities/segment match
4. Target
5. Positioning
Market analysis may identify segments which are not recognized or served
effectively by the competitors. There may be opportunities to tap into new areas
and create a unique space in the market.
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For example, in France Accor has established the highly successful formula 1
hotel chain by building a new market segment in between the traditional
strategic groups in the hotel market.
In general one –star hotels offer low prices; on the other hand two-star hotels
offer more amenities and charge higher prices.
Accor analysis of customer need found that customer choose the one star hotel
because it is cheap, but trade up from the one star hotel to the two star hotel for
the “sleeping environment “that is clean ,quiet rooms with more comfortable
beds –not all the other amenities that are offered.
While formula 1 provides the superior “sleeping environment” of the two star
hotel, but not the other facilities, which allows it to offer this at the price of the
one star hotel. Formula1 had built a market share larger than sum of the next
five largest competitors.
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INTRODUCTION ABOUT THE FMCG
The sector covers a wide gamut of products such as detergents, toilet soaps,
toothpastes shampoos, creams, powders, food products, confectioneries,
beverages, cigarettes.
Individual items are of small value. But all FMCG products put together
account for a significant part of the consumer’s budget.
The consumer keeps limited inventory of these products and prefers to purchase
them frequently, as and when required. Many of these products are perishable.
The consumer spends little time on the purchase decision. Rarely does he/she
look for technical specification (in contrast to industrial goods). Brand loyalties
or recommendations of reliable retailer/dealer drive purchase decisions.
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PRODUCTS
HINDUSTAN
LEVER
LIMITED
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Breeze scent magic is the soap which fulfills the aspirations of women of
rural India. Breeze has offered them ‘beauty at an affordable price,
making them look and feel beautiful.
Research and consumer visits have shown that the desire for great
fragrance featured highest in the daily beauty regime of discount soap
users. Breeze explores this through the proposition of scent in a soap scent
ka kamala, ab sabum mein’ and explicitly propagates the brand promise of
the Hameshaa Kuchh extra. It delivers all this and still matches
consumer’s needs in terms of price and quantity offered staying true to its
word.
Breeze has been enriched with 19 special scent oils, which ensure that one
smells good for a long time though the day. Introduced in variants like
scent magic, scent magic lime, and scent magic sandal, Breeze strives
towards fulfillment the company’s mission of being inventive in creating
value.
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Brand Name: Breeze
Target: Breeze is a mass market soap that sells in the economy segment. It
targets to the people who wants to feel fragrance during the bath.
About the Brand : The new, patented technology called the ‘Sunscreen
Formula’ contains a combination of sunscreen ‘actives’, which are
deposited on the skin as a protective layer, even as the soap washes away
dirt and grime. This unique formula is the climax of a long search for a
product that’s easy to apply, safe to use, affordable and provides optimal
protection from UV ray.
Target: It target at the women from upper middle class above. It target to
the women of age group of 15-45 who were very much concerned about
their skin under the sun.
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Dove soap, which was launched by Uniliver in 1957, has been available in
India since 1995. It provides a refreshingly real alternative for women who
recognize that beauty is not simply about how you look, it is about how you
feel.
Globally, Dove has been extended too many other countries. Since the
1980s, for example, Unilever has launched a moisturizing body-wash
deodorants, body lotions, facial cleansers and shampoos and conditioners,
providing a comprehensive range of solutions to bring out true inner
beauty.
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Brand Name: HAMAM
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Making a billion Indians feel safe and secure by meeting their health and
hygiene needs is the mission of Lifebuoy.
The world’s largest selling soap offers a compelling health benefit to the
entire family. Launched in 1895, Lifebuoy, for over 100 years, has been
synonymous with health and value. The brick red soap, with its perfume
and popular Lifebuoy jingle, has carried the Lifebuoy message of health
across the length and breadth of the country.
The 2002 and 2004 re-launches have been turning points in its history. The
new mix includes a new formulation and a repositioning to make it more
relevant to both new and existing consumers.
Lifebuoy is now milled toilet soap with a new health fragrance and a
contemporary shape. The new milled formulation offers a significantly
superior bathing experience and skin feel. This new mix has registered
conclusive and clear preference among existing and new users.
At the upper end of the market, Lifebuoy offers specific health benefits
through Lifebuoy Gold and Plus. Lifebuoy Gold (also called Care) helps
protect against germs which cause skin blemishes, while Lifebuoy Plus
offers protection against germs which cause body odors.
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Brand Name: Lifebuoy
About the Brand: Launched in the year 1895, Lifebuoy, for over 100 years,
has been synonymous with health and value. The brick red soap, with its
perfume and popular Lifebuoy jingle have carried the Lifebuoy message of
health across the length and breadth of the country, making it the largest
selling soap brand in the world.
Positioning: Lifebuoy has made a deliberate shift from the male, victorious
concept of health to a warmer, more versatile, more responsible benefit of
health for the entire family.
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About the Brand: The brand was launched by Hindustan Level Ltd. This
soap is not a red carbolic soap as Lifebuoy normally is.
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LIRIL
For 28 years, freshness has been clearly identified with one name Liril.
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Lux stands for the promise of beauty and glamour as one of the India’s
most trusted personal care brands. Lux continues to be a favourite with
generations of users for the experience of a sensuous and luxurious bath.
Since its launch in India in the year 1929, Lux has offered a range of soaps
in different sensuous colours and world class fragrances. 2003 saw one of
the biggest milestones in the history of Lux. From being just a beauty soap
of film stars, Lux recognized the need for a compelling message about
beauty that would resonate with women of today.
Lux is available in four different variants – Exotic flower petals and Jojoba
Oil, Almond Oil and Milk Cream, Fruit Extracts and Honey in Milk
Cream and Sandal Saffron in Milk Cream.
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Brand Name : Lux
About the Brand : Lux is one the biggest brands in the soap category.
Lux was launched in India in the year 1905. A unique soap, which protects
the skin’s fairness against darkening by the sun. The product contains a
combination of sunscreen actives, which are deposited on the skin as a
protective layer, even as the soap washes away dirt and grime. This
breakthrough, for the first time in the world, is the result of technology
patented by HUL.
Target : Lux targets the women of age group of 15-40 having the monthly
family income Rs. 10000-20000 who are more concerned about taking care
of skin and wants dazzling skin. It targets at the women from the middle
class and above. In short, Lux has worked it charm on millions of women
making their dreams of beauty come true.
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care of different type of skin. Lux positiones as a Filmi Sitaron ka
Soundarya Sabun”
Price : 11.50
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Introduced in India in 1902, Pears soap has no equal. It is gentle enough,
even for baby’s skin.
Pears are manufactured like any other soap, but unlike in conventional
soaps, the glycerin is retained within the soap. That is the cause if its
unique transparency. After manufacturing, the soap is mellowed under
controlled conditions over weeks. At the end of this maturing process, it is
individually polished and packed in cartons.
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Brand Name: REXONA
Advertising Objective: To influence the middle class women who looks for
smooth and soft skin.
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Brand Name: DENIM
Target: it targets all the men from upper middle class and upwards.
Advertisement Strategy: It project the soap as a product for the men who
doesn’t have try to hard.
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Brand Name: DOVE
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GODREJ
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Brand Name: Fairglow
About the Brand: Fairglow has a unique Bio-extract ‘Natural Oxy-G’ that
reduction of the black melanin in the skin without changing the skin’s
natural balance. The Natural Oxy-G also helps remove blemishes to give
provides fairness for the face and the whole body without any extra effort.
In sum, it gives the twin advantages of a clean and fresh bath while also
Target: It targets to the every women of India who wants to have fair-
bright complexion. That is why it was one of the top successful brand of
2001.
the skin to reduce black melanin without changing skin’s natural balance.
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Brand Name: NEW CINTHOL SKIN FRESH
About the Brand: NEW CINTHOL SKIN FRESH is a unique toilet soap
with Orange extracts which gives freshness along with skincare. Orange is
an ingredient known for its skin benefits since times immemorial and
CINTHOL SKIN FRESH offers the same benefits in the form of soap for a
Target: First it targeted to the men now the new Cinthol Skin Fresh targets
Positioning: It position itself as the beauty soap which keeps the people
fresh.
Available Range & Size: Cinthol Regular (100 gms), Cinthol International
Lime (100 gms), Cinthol Lime Fresh (75 gms, 125 gms.).
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Market Share (Soap)
The economy soap constitute 35% of market share, popular soap constitute
major portion of market share, 55% then premium and super premium constitute
7% and 3% respectively.
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Segmentation of soap on the basis of price
From the above figure, it is very much clear that most of the toilet soaps
available in India fall into the category of popular and premium soaps, both of
these groups accounts 43%, functional soaps accounts 10% and there is small
percentage for the super premium soaps.\
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List of soaps with their segments and prices
Rs. 5-8
Soap
Margo Doy
Neem Denim
Fair Glow Fa
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Segmentation of soap on the basis of TFM
(Total Fatty Matters ) contents
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Fa
REVIEW
OF
LITERATURE
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A literature review is a body of text that aims to review the critical
points of current knowledge including substantive findings as well as
theoretical and methodological contributions to a particular topic.
Literature reviews are secondary sources, and as such, do not report
any new or original experimental work. Also, a literature review can
be interpreted as a review of an abstract accomplishment.
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OBJECTIVE OF STUDY
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OBJECTIVE OF STUDY
Every study has certain objective there is no study without the objective,
because objective are the purpose of study. No study serves any existence
without its significant thus; they are the backbone on which the body study
stands.
c) To find out from where the customer prefer to buy the FMCGI
Products.
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SCOPE OF STUDY
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research. Marketing research too generates and utilizes marketing
information but its purpose is problem solving.
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Research Methodology
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Research Methodology
Research on products
Research on market
Research on consumer
Research on advertising and promotion
Research on distribution
Research on price
Research on competition
Research on sales
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4. Research Design: Research design of project to be done and
sample size to be taken as per the requirement.
5. Collection of Data: Method of collection of primary and
secondary data to be achieved.
6. Analysis of Data: The data to be analyzed with respect to the
theories given in the books which are referred and known to us.
7. Interpretation and Reporting: This is the resultant of analysis of
data, which is collected by survey and company visit.
This project has followed all the above criteria’s and following things are
taken into consideration for the preparation report:
Research Design
A research design is purely and simply the focus of the study in on studying
the banner advertising is conclusive in nature that guides to the collection
and analysis of data. The descriptive research design has been used in this
project, because consumer’s feedback was necessary for obtaining the data.
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Data sources
Research Instrument
For doing the survey research, structured questionnaire with both open
ended and close ended questions were used.
Mode of Survey
The mode of survey was personal interview with the respondents during
the filling up of the questionnaire.
Sampling
The sampling used for this study was probability sampling. Since the study
is only meant for certain specific categories within the total population, a
stratified random sample was used. Three groups of categories have been
taken into account viz. students professionals and general public.
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Sample Size
Place of study
The study and survey is done in SATNA region only.
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DATA ANALYSIS
1. After the survey (50 samples) the population understands the soap
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2. Mostly consumer uses.
I HAMMAM 5%
II DETTOL 9%
IV LIRIL 20%
V BREEZE 8%
VI DOVE 3%
VII PEARS 4%
IX NIRMA 14%
X OTHERS 6%
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3. The individual rates their present soap by the following qualities-
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4. All the individuals preferred to change new brand of the soap.
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5. The factors which make the consumer to purchase the soap as rated.
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6. After the survey of 50 samples I analyze that large family uses-.
I. HUL 45%
IV NIRMA 30%
V OTHERS 5%
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7. After the survey of 50 samples I analyze that small family uses-.
IV NIRMA 30%
V OTHERS 5%
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8. In the premium segmentation of the soap the rich people uses-
I. Pears 30%
IV Dove 5%
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CONCLUSION
Heat and dust are integral part of Indian climate. This makes Indian as
one of the ideal market for soaps and other cleaning products. As we know
that the consumer keeps limited inventory of soap products and prefers to
The research study shows that the per capita consumption of bathing soap
is 513gm. So there is a very big market for soap in India. The total
leader with 59% of share followed by godrej. Other major players are
market is not only segmented on the basis of price and benefits but even a
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The frequent used soap was Lux (28%) then Nirma (14% the second
position.
The appealing factors are soaps were price which was followed by
The person ‘self’ was having the highest percent in decision making
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LIMITATION
During the working of this project, I faced many problems, which has led to the
limitation of the work. These limitations could not be controlled even after
taking enough preventing measures. I hope the following limitations will not
affect the study of the project and its analysis.
a) Those sample sizes for the customer could not have been large due to
time constraints, it was at 100 only.
c) While conducting the survey unavoidable error kept in such as, non-
response error, and inaccuracy in response.
g) The information is collected from the web sites, broachers and books
only.
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h) The customer bases analysis on the information collected by the
questionnaire.
After research done by me I analyze that the market shares of the HUL
products was greater than other companies, which shows that the
acceptance of HUL products are more by consumer.
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The market share of GODREJ is 12% of the total of consumed
products.
The market share of NIRMA is 10% of the total of consumed
products.
The market share of JOHNSON & JOHNSON is 4% of the total of
consumed products.
Therefore HUL is considered as the one of the most branded and reliable
company and the product are frequently accepted and used by each and
every category of consumer. And the HUL put its all effort to maintain its
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2. The brands generally demanded by the consumer.
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1. On the question that how much the brand name of the soap is
important for the consumer during the purchasing of the soap. Near
about 40% are causes about the brand names of the soap, 25% are
not, about 20% used regular brands and 15% of them are not
answered.
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SUGGESTION AND RECOMMENDATION
On the basis of my studies I want to suggest that P&G has to make out the
Because any company stands in the competitive market should have lot of
varieties of products to overtake the entire market. The P&G has to check
out there pricing strategy because the price of the HUL is much lesser than
The sales and promotional activities of HUL is very effective than other
and it also emphasize on the dealer network distribution with the help of
on there sales and promotional activities and should make there proper
marketing strategy.
Last but not least the channel of distribution, packaging, segmentation and
moreover only after the proper marketing research they should launch
their new products in the market to grasp the entire market and increase
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FINDINGS OF STUDIES
Upper class people use Camay, Pears & Dove these soaps tell
of high society.
of products.
to all categories.
economical.
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QUESTIONNAIRE
Information Requirement
brand name.
II. The extent to which the consumer thinks the following attributes
Questions-
i) Company Name
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3) Please name some soap companies that you have heard of.
i) Not important
ii) Important
i) Packaging of soap
6) Are you satisfied with the overall performance of your present soap?
i) Yes ii) No
8) Did you change both the soap at the same time and one time?
11) What are the factors that you considered when you purchase the
soap?
i) Parents suggestion
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iii) T.V. Ads
13) What are the factors that you considered when you purchase the
soap?
i) Company name
iv) Advertising
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PERSONAL INFORMATION
i) 18 – 25 ii) 25 – 35
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BIBLIOGRAPHY
1. www.HUL.com
2. www.gpcl.com
3. www.jjibp.com
4. www.nirma.com
5. www.colgate.com
6. www.jkhc.com
7. www.henkel.com
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