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Consumer Behaviour Analysis
Kashyap Mitra
Unitedworld School
of Business
PGPM VI (2014-
2016)
Wild Stone
• Leading male grooming brand with presence
across multiple categories such as deodorant,
talc, perfume, soap a...
Indian FMCG Market
• Fourth largest sector in the Indian Economy.
• Expected to increase at a growth rate of 14.7%
to touc...
0
20
40
60
80
100
120
2020 (F) 2015 (F) FY 12 FY 11 FY 10 FY 09 FY 08 FY 07 FY 06
FMCG MARKET SIZE
FMCG REVENUES ($ Bn)
So...
Food Products
43%
Personal Care
22%
Fabric Care
12%
Hair Care
8%
Households
4%
OTC Products
4%
Baby Care
2%
Others
5%
Mark...
0
1000
2000
3000
4000
5000
6000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
INDIA GDP PER CAPITA PPP ($)
INDIA GDP P...
Demand-Side Drivers
• Consistent GDP Growth.
• Increasing Consumer Income.
• High Private Consumption
– India has a very h...
Deodorant Industry Overview
• Has come up very fast in the FMCG category.
• Market size (2007): Rs. 283 Cr.
• Market size ...
0
500
1000
1500
2000
2500
2007 2008 2009 2010 2011 2012 2014
Deodorant Market Size in India
Deodorant Market Size in India...
Market Share
• According to an Economic Times report –
based on the March 2014 quarter Nielsen
data:
– Fogg leads the mark...
The Market Leader: Fogg
• Owned and marketed by Vini Cosmetics.
• Found out that deodorants can be
differentiated by havin...
The Market Leader: Fogg
• The functionality was also adopted well in the
promotion of the product with the tagline ‘No
Gas...
Market Research
OBJECTIVE OF THE STUDY
To understand, analyse and compare consumer
behavioural patterns and influencing factors.
METHODOLOGY
• Sampling Techniques:
– Convenience Sampling
– Snowball Sampling
• Sample Size: 336
DATA COLLECTION
• Instrument Used: Questionnaire.
• Questionnaire Type: Closed ended and Open
ended.
• Number of Questions...
DATA ANALYSIS
• Techniques used: Pie Charts.
• Statistical Tools used: Hypothesis testing.
Demographic Distribution: Break-up
of age.
Age Group
15-20 21
21-25 160
26-30 107
31-35 37
36 & above 11
Total 336
15-20
6...
Demographic Distribution: Break-up
of Occupation
Occupation
Student 147
Service 168
Self-employed 21
Total 336
Student
44%...
Consumer Preference
Gender
Deodorant
Users %
P.
Deodorant
Users %
Perfume
Users %
Female 51 28 54.9 6 11.7 17 33.3
Male 28...
Hypothesis Testing
• To test for the equality of two proportions, we can
perform a z-test.
• Null Hypothesis (H0): p1 = p2...
Brand Preference
Brand Preference
Wild Stone 52
Park Avenue 33
Fogg 21
Engage 5
Axe 34
Layer 13
Wild
Stone
33%
Park
Avenue...
Brand Loyalty
Brand Loyalty
Non-switchers 118
Switchers 218
Non-
switchers
35%
Switchers
65%
Brand Loyalty
Hypothesis Testing
• Z-type test.
• Null Hypothesis (H0): P=1/2 (the number of
switchers = the number of non-switchers)
• ...
Key Findings
• This acts both as an advantage and a
disadvantage for Wild Stone or any other
deodorant brands.
• It sugges...
Wild Stone
Have you used Wild Stone?
Yes 173
No 155
This table shows that 53% of the sample size or
173 out of 336 people ...
New Deodorant
Interest in buying a new
deodorant in the market
Yes 227
No 97
Maybe 11
Yes
68%
No
29%
Maybe
3%
Openness to ...
Price
Reasonable price range
100 - 149 4
150 - 199 88
200-249 188
250 & above 52
100 -
149
1%
150 - 199
26%
200-249
57%
25...
Influencing Factors
What influences you to make
purchase decisions?
Advertisements 28
Price 71
Recommendations 41
Fragranc...
Medium of Promotion
Medium of Brand
Awareness
TVC 314
Others 22
93% of the respondents said
that they’ve come to know of
W...
Consumer Preference
Preference
Deodorant 236
Perfumed Deodorant 70
Perfume 30
Deodorant
70%
Perfumed
Deodorant
21%
Perfume...
Deodorants v/s Perfumed Deodorants
• Fogg leapfrogged their competition and became
the market leader with the help of prod...
Recommendations
• How to bridge the gap: intensive growth; integrative growth;
and diversification growth.
• Wild Stone is looking into an...
• All deodorant brands are concentrating their focus on
Perfumed Deodorants.
• In my opinion, what Wild Stone can do is to...
New Market
• To maximize market share, you’ll have to
maximize revenue by acquiring either new
customers or by hijacking y...
Focus
• This is where their focus on Deodorants
instead of Perfumed deodorants will pay-off.
• The price-sensitive nature ...
Going Public
• ROI in the West Zone < East Zone.
• To increase their market share, they need to
make an impact all over th...
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Consumer Behaviour Analysis - Wild Stone Deodorants

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Consumer behaviour analysis of Wild Stone deodorants.
This was done as a part of my Summer Internship Program for McNROE Consumer Products Pvt. Ltd.
The survey was done in Kolkata.

Published in: Marketing
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Consumer Behaviour Analysis - Wild Stone Deodorants

  1. 1. Consumer Behaviour Analysis Kashyap Mitra Unitedworld School of Business PGPM VI (2014- 2016)
  2. 2. Wild Stone • Leading male grooming brand with presence across multiple categories such as deodorant, talc, perfume, soap and shaving products. • Is among the top three deodorant brands in the country. • Believes in continuously offering new choices to their consumers, by constantly evaluating potential categories in the male grooming space.
  3. 3. Indian FMCG Market • Fourth largest sector in the Indian Economy. • Expected to increase at a growth rate of 14.7% to touch US$ 110.4 billion (INR 7019.50 billion) during 2012 – 2020. • Rural FMCG market anticipated to increase at a rate of 17.7% to reach US$ 100 billion (INR 6358.24 billion) during 2012 – 2025.
  4. 4. 0 20 40 60 80 100 120 2020 (F) 2015 (F) FY 12 FY 11 FY 10 FY 09 FY 08 FY 07 FY 06 FMCG MARKET SIZE FMCG REVENUES ($ Bn) Source : India Brand Equity Foundation (www.ibef.org)
  5. 5. Food Products 43% Personal Care 22% Fabric Care 12% Hair Care 8% Households 4% OTC Products 4% Baby Care 2% Others 5% Market break-up of Indian FMCG industry Source : India Brand Equity Foundation (www.ibef.org)
  6. 6. 0 1000 2000 3000 4000 5000 6000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 INDIA GDP PER CAPITA PPP ($) INDIA GDP PER CAPITA PPP ($) (Source: www.tradingeconomics.com | World Bank)
  7. 7. Demand-Side Drivers • Consistent GDP Growth. • Increasing Consumer Income. • High Private Consumption – India has a very high rate of private consumption of 61%. – Of that, a further 60% is due to retail spends - goods and products that people consume, as opposed to services or essential consumption items like rent and education. • Rising Urbanization – India has 70% of its population living in rural areas.
  8. 8. Deodorant Industry Overview • Has come up very fast in the FMCG category. • Market size (2007): Rs. 283 Cr. • Market size (2014): More than Rs. 2100 Cr. • Fastest growing product in the FMCG category. • FMCG growth rate: 9% • Deodorant industry growth rate: 16% • India is the fastest growing deodorant market in the world.
  9. 9. 0 500 1000 1500 2000 2500 2007 2008 2009 2010 2011 2012 2014 Deodorant Market Size in India Deodorant Market Size in India (Rs. Crore) (Source: Euromonitor International)
  10. 10. Market Share • According to an Economic Times report – based on the March 2014 quarter Nielsen data: – Fogg leads the market with 17% market share. – Followed by Park Avenue with 8%. – Axe has slipped to third place with only 6% market share and its market share is now almost identical to Wild Stone.
  11. 11. The Market Leader: Fogg • Owned and marketed by Vini Cosmetics. • Found out that deodorants can be differentiated by having less gas and more perfume. • Guaranteed their customers to have 800 sprays from a bottle of Fogg Royal priced at around Rs.200/- in 2014. • The working functionality of Fogg was to have more number of sprays in a bottle.
  12. 12. The Market Leader: Fogg • The functionality was also adopted well in the promotion of the product with the tagline ‘No Gas, Only Deo’. • This kind of positioning was also different from the competition, including Axe, which emphasized only on the seduction aspect to sell their deodorants. • Used a Rational Appeal instead of an Emotional Appeal.
  13. 13. Market Research
  14. 14. OBJECTIVE OF THE STUDY To understand, analyse and compare consumer behavioural patterns and influencing factors.
  15. 15. METHODOLOGY • Sampling Techniques: – Convenience Sampling – Snowball Sampling • Sample Size: 336
  16. 16. DATA COLLECTION • Instrument Used: Questionnaire. • Questionnaire Type: Closed ended and Open ended. • Number of Questions: 20.
  17. 17. DATA ANALYSIS • Techniques used: Pie Charts. • Statistical Tools used: Hypothesis testing.
  18. 18. Demographic Distribution: Break-up of age. Age Group 15-20 21 21-25 160 26-30 107 31-35 37 36 & above 11 Total 336 15-20 6% 21-25 48% 26-30 32% 31-35 11% 36 & above 3% Age Group
  19. 19. Demographic Distribution: Break-up of Occupation Occupation Student 147 Service 168 Self-employed 21 Total 336 Student 44% Service 50% Self- employe d 6% Occupation
  20. 20. Consumer Preference Gender Deodorant Users % P. Deodorant Users % Perfume Users % Female 51 28 54.9 6 11.7 17 33.3 Male 285 208 72.9 64 22.4 13 4.5 Total 336 236 70.2 70 20.8 30 8.9
  21. 21. Hypothesis Testing • To test for the equality of two proportions, we can perform a z-test. • Null Hypothesis (H0): p1 = p2 (deodorants are as popular to women as to men) • Alternate Hypothesis (H1): p1 is not equal to p2 • Result: z = -2.583 • Table Value @ 95% level of confidence: 1.96 • Therefore, |Calculated Value| > |Table Value| • Hence, we reject the null hypothesis, proving that the deodorant market in India is dominated by the men’s deodorant category.
  22. 22. Brand Preference Brand Preference Wild Stone 52 Park Avenue 33 Fogg 21 Engage 5 Axe 34 Layer 13 Wild Stone 33% Park Avenue 21% Fogg 13%Engage 3% Axe 22% Layer 8% Brand Preference Key Findings: Even though Fogg is the market leader, Wild Stone has a really good presence in this part of the country. Wild Stone’s Red and Park Avenue’s Good Morning are the two most popular deodorant fragrances in this region.
  23. 23. Brand Loyalty Brand Loyalty Non-switchers 118 Switchers 218 Non- switchers 35% Switchers 65% Brand Loyalty
  24. 24. Hypothesis Testing • Z-type test. • Null Hypothesis (H0): P=1/2 (the number of switchers = the number of non-switchers) • Alternate Hypothesis (H1): P is not equal to ½ • Result: z = 5.55 • Table Value @ 95% level of confidence: 1.96 • Therefore |Calculated Value| > |Table Value| • Hence, we reject the null hypothesis that the number of switchers and the number of non- switchers are the same.
  25. 25. Key Findings • This acts both as an advantage and a disadvantage for Wild Stone or any other deodorant brands. • It suggests that it might be easy for a brand to acquire customers from the competitors but at the same time it is very hard to retain customers as well.
  26. 26. Wild Stone Have you used Wild Stone? Yes 173 No 155 This table shows that 53% of the sample size or 173 out of 336 people have used Wild Stone out of which only 52 are still using it. • Good demand in the sub-urban regions due to a good relationship between the firm and the retailers and aggressive sales mechanisms. • The problem lies within the urban areas - tough to convert non Wild Stone users into Wild Stone users, even though almost everyone has heard of and knows the brand Wild Stone. Do you know about Wild Stone? Yes 334 Blank 2
  27. 27. New Deodorant Interest in buying a new deodorant in the market Yes 227 No 97 Maybe 11 Yes 68% No 29% Maybe 3% Openness to Experience
  28. 28. Price Reasonable price range 100 - 149 4 150 - 199 88 200-249 188 250 & above 52 100 - 149 1% 150 - 199 26% 200-249 57% 250 & above 16% How much is a customer is willing to spend on a deodorant
  29. 29. Influencing Factors What influences you to make purchase decisions? Advertisements 28 Price 71 Recommendations 41 Fragrance 195 Advertise ments 9% Price 21% Recomme ndations 12% Fragrance 58% Influencing Factors
  30. 30. Medium of Promotion Medium of Brand Awareness TVC 314 Others 22 93% of the respondents said that they’ve come to know of Wild Stone through TV commercials. • In the present-day scenario, due to technological advancements, people spend more time on the internet than watching TV. • Almost non-existent online presence. • Last Facebook post: December 31st 2014. • No presence in other social networking sites such as Instagram and Twitter.
  31. 31. Consumer Preference Preference Deodorant 236 Perfumed Deodorant 70 Perfume 30 Deodorant 70% Perfumed Deodorant 21% Perfume 9% Preference
  32. 32. Deodorants v/s Perfumed Deodorants • Fogg leapfrogged their competition and became the market leader with the help of product innovation in the form of perfumed deodorants. • Majority of the population still prefers using deodorants. • Pareto Analysis: you can say that 80% of the market demands deodorants while 20% demands perfumed deodorants; where 80% of this 20% demand is catered by Fogg alone. (Used just as an example and these are not actual values)
  33. 33. Recommendations
  34. 34. • How to bridge the gap: intensive growth; integrative growth; and diversification growth. • Wild Stone is looking into and integrative growth plan and aspires to have under them a full portfolio of men’s personal care products in order to increase their brand equity and sales volume.
  35. 35. • All deodorant brands are concentrating their focus on Perfumed Deodorants. • In my opinion, what Wild Stone can do is to focus on Deodorants and not Perfumed Deodorants. • The effort should lie in shifting from the “Market penetration” quadrant to the other quadrants.
  36. 36. New Market • To maximize market share, you’ll have to maximize revenue by acquiring either new customers or by hijacking your competitor’s customers. • Changing their target segment would not be feasible as they’ve already created a deep brand image within the mind of the customers. • Rural FMCG market. (growth) • Smaller SKUs priced at around Rs. 99/-.
  37. 37. Focus • This is where their focus on Deodorants instead of Perfumed deodorants will pay-off. • The price-sensitive nature of the rural markets would make it hard, if not impossible, at this time for Perfumed Deodorants to be sellable. • If the industry is going one way, this might be a good time for Wild Stone to go the other way.
  38. 38. Going Public • ROI in the West Zone < East Zone. • To increase their market share, they need to make an impact all over the country, not just in the Eastern region. • Going public would be a good option. • They could use that capital in order to expand their operations in the future.

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