AMRP REPORT

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AMRP REPORT

  1. 1. APPLIED MANAGEMENT RESEARCH PROJECT REPORT Consumer Usage andITC LTD. Attitudes for Shower Gels Submitted By Pooja Gupta Roll No – 11BM60105 Vinod Gupta School of Management IIT Kharagpur
  2. 2. AMRP PROJECT ITC ACKNOWLEDGEMENT The completion of this project would be incomplete without the mention of the people whose constant support and guidance have helped me to complete this project successfully. I would like to express my deepest appreciation to Mr. Kushal (Brand Manager), ITC Ltd., for his words of encouragement and extending all help from his department, necessary for the project. I am thankful to him for giving his valuable time and for providing a systematic way for completing the project in time. I would like to specially thank my Project Mentor, Prof. Sujoy Bhattacharya ,Vinod Gupta School of Management, IIT Kharagpur, for his great help. He provided me necessary guidance and support until the completion of my project. Last, but not the least, I would like to thank my esteemed Institute and my Faculty, for the learning given to me so that I could complete my Project. Pooja GuptaVinod Gupta School of Management, IIT Kharagpur Page 2
  3. 3. AMRP PROJECT ITC Table of Contents Page No. 1. Executive Summary 4 2. Goals 5 3. Methodology 6 4. Results 13 5. References 28Vinod Gupta School of Management, IIT Kharagpur Page 3
  4. 4. AMRP PROJECT ITC Executive Summary The project requires me to perform qualitative market research and customer data analysis using SPSS on the factors that affect the consumer usage patterns and consumer behaviour towards shower gels. I am required to analyze the findings and make recommendations for the marketing and brand positioning strategy of shower gels. At the start of the project, business analysis was done. It involved secondary research, understanding the consumer behaviour by one to one interaction at the point of purchase. I interacted with 50 consumers of different age groups, gender and a healthy mix of users, trailers and non users. With the help of this customer understanding, questionnaire was prepared including all the data parameters necessary to conduct this project. Primary research was done on 90 respondents. Two focus group interviews were conducted, each group having 8-9 participants. The first group consisted of a healthy mix of men and women, users, trailers and non users. This group discussion was focussed to get an overall idea of consumer behaviour targeting at different segments at the same time. The second focus group consisted of either trailers or non users. The discussion was focussed mainly on barriers to trial of shower gel. Analysis was done on the consumer patterns and behaviour towards shower gel. I plan to extend the project by expanding my primary research, visiting distributors if required, detailed analysis of the final collected data using SPSS and recommending marketing strategy to ITC on the basis of the findings.Vinod Gupta School of Management, IIT Kharagpur Page 4
  5. 5. AMRP PROJECT ITC Goals The project requires me to find out and understand the factors that affect the consumer usage patterns with respect to the shower gels in general, what impacts the buying behaviour and consumer attitude towards the shower gels present in the market and what makes them go for the shower gel they choose. I have conducted a qualitative research on consumers to fulfil the above mentioned factors. The consumers consist of a healthy mix of regular users( users who have been using shower gels regularly), trialists(users who have been using shower gels/ want to use shower gels on a trial basis), lapsers(users who have used the shower gels but have decided not to use them any further). The consumers also consist of a healthy mix of consumers buying from different point of purchase (general trade & modern trade). PROJECT OBJECTIVES The project requires me to perform qualitative market research and customer data analysis using SPSS on the factors that affect the consumer usage patterns and consumer behaviour towards shower gels. I am required to analyze the findings and make recommendations for the marketing and brand positioning strategy of shower gels. • Qualitative Market Research • Key value drivers (Factors that affect the consumer usage patterns, buying behavior) • Analysis of consumer behavior • Attitudes towards shower gels • Formulate marketing strategyVinod Gupta School of Management, IIT Kharagpur Page 5
  6. 6. AMRP PROJECT ITC Methodology Data parameters: The data is collected from the consumers keeping the following factors in mind:  Gender  Age group of the consumer  Understand who is the influencer and the decision maker in the purchase decision process  Buying frequency  Perceived end benefits of the product for the consumer  Customer’s price perception in terms of the value proposition  Preferred point of purchase for the consumer  Factors affecting choice: o Ingredients o Fragrance o Effect on skin (eg moisturising effect on skin) o Lather o Consistency o Packaging o Price o Brand Name o Promotional scheme of the product o Seasonal effects (e.g. people might prefer a moisturising shower gel in winter) o Any other  Whether the consumer uses loofah with shower gel or not  What the customer prefers: shower gel or soap? And why?  Awareness about the shower gel benefits  Switching behaviour  Does the consumer exhibit switching behaviour, if yes then why?  How specific marketing programs affect the consumer buying behaviour for shower gels.  Is the customer satisfied with the shower gel he/she is currently using? If yes, why? If no, why not?  Would the consumer like to buy a fairness shower gel if such a product is made availableVinod Gupta School of Management, IIT Kharagpur Page 6
  7. 7. AMRP PROJECT ITC Methods followed for data collection: For collecting the data for qualitative research, three different methodologies were followed. Method 1: Personal interviews were conducted at the point of purchases.  To understand the profiles of people - products are made for aspirational urban consumer: o middle class o aspirational middle class o upper middle class o upper class  To study the consumer reaction towards shower gels  For competitor analysis  To understanding the profit margin of distributors for different kinds of shower gels  What are the different promotional schemes for shower gels  To understanding the switching behaviour - people might buy different shower gel everytime or remain loyal to same shower gel everytime they buy.  To understanding if it’s a high or low involvement product  Pre usage, in use & post usage behaviour analysis Method 2: Focus group interviews. It would help to give insights on consumer behaviour towards shower gels. Method 3: Primary research is collected by floating questionnaire among various people.Vinod Gupta School of Management, IIT Kharagpur Page 7
  8. 8. AMRP PROJECT ITC Activity-Timelines followed: • Method 1 : Personal interviews at point of purchase 4th-15th Oct 16th- 22nd • Preparing the Questionnaire Oct 23rd Oct- • Method 2 : Focus Group Interviews 10th Nov 11th-20th • Method 3 : Primary Research Nov 21st-28th • Analysis and Conclusion Nov Method 1: Personal Interviews at point of purchase Understanding of the Consumer market For a basic understanding of consumer mindset with respect to shower gel, we visited point of purchase and interacted with customers. Consumers of different age group, gender were targeted and data was collected for the same. There was a large difference in thought process of men and women. Most women prefer shower gel because they like the fragrance and the feel on the skin. On the other hand, men prefer shower gel because it takes lesser time to take bath- it is easier to use and it is faster. Some prefer brands like Dove(moisturising effect), Lifebuoy/Dettol(germ kill effect), Fiama Di Wills(fragrance), etc. Factors affecting choice of shower gel (till now) have been fragrance, brand name, feel on skin, cleansing or germ kill. Almost all the customers use loofah irrespective of their usage of shower gel or soap.Vinod Gupta School of Management, IIT Kharagpur Page 8
  9. 9. AMRP PROJECT ITC There were two categories amongst non users of shower gel. Some of them were ready to use shower gel in future if given a chance. Some others were strictly against using shower gel as they are very much used to using bar soaps and do not want to change their habit at any cost. Few others do not bother what they use for bathing purpose. Also some exhibit switching behaviour between shower gel-soap and varieties of shower gels. The major barriers to trial were the following factors: no awareness at all, habit of using soap, people do not understand the need of switching from soap to shower gel. There were some lapsers as well; the reason being the belief that shower gel do not wash off easily from the body, do not suit the skin resulting in allergic effects on skin and price factor mainly. Also the gender factor comes into play here. It was observed that for men, soap is a low involvement product and when it comes to shower gel, most of them are non users either due to lack of awareness or due to the low importance attached to such products. Brand preference of shower gels were seen among the consumers. Most of them preferred Fiama di Wills due to its fragrance, packaging and freshness feel. Dove was preferred mostly due to its moisturising effect on skin. Palmolive was again preferred due to fragrance. Some preferred Fiama di Wills and Lux because of the current promotional schemes- free loofah with the pack. Also, influencer and decision maker vary according to various age groups. For teenagers, decision makers are usually their parents. For people in age group between 20 and 40, influencer and decision makers are usually they themselves or influenced by their social circles. For people with age group greater than 40, many a times the children especially daughters are the influencers and decision makers. Most of them in this age group prefer to use soap, but still use shower gels regularly or on frequent basis since their children are the decision makers. Competitor Analysis at point of purchase: Fiama Di Wills, Dove, Palmolive and Lux shower gels were available in the local retail outlets. Other than Lux, all are priced at MRP of Rs 125 for 200ml of quantity. Lux is priced at lesser MRP for more quantity volume. Even then, the retailers reported that sales quantity of Lux is less than others. According to most of the retail outlets, Fiama Di Wills and Palmolive sell more than Dove. The retail shops have a profit margin of 10-15%(depending on schemes), though some retailers sell the products at a price less than the MRP and have margins of 7-12%. Lux has also come out with packaging same as Fiama Di Wills(free loofah). Only Fiama Di Wills for men does not have a free loofah with it, when all the other 3 varieties have it in their packaging.Vinod Gupta School of Management, IIT Kharagpur Page 9
  10. 10. AMRP PROJECT ITC Method 2: Focus Group Discussion Effective ways to conduct focus group discussion: • Prepare in advance • Greet the participants • Make a relaxed environment • Sit with the group in a circle • Note their age, gender, etc • Define the purpose of the meeting at the start • Either show advertisements of different brands/ put samples/ questionnaire at the start • Thumbs up and thumbs down strategy • Ensure good participation from all • Ensure discussion is relevant to the purpose • Comparison of brands • Preference of product attributes without brand name • Remind participants that there are no right/ wrong answersVinod Gupta School of Management, IIT Kharagpur Page 10
  11. 11. AMRP PROJECT ITC • Participants can write down their points/ summarize • Someone should be taking notes/video of the discussion • Summarize. Results Two focus group discussions were conducted. First group had a mixed group of users, trailers and non users. The second group consisted of all non users and it focussed on understanding the barriers to trial of shower gel. The videos of both the focus group were taken Method 3: Primary Research Primary research was done by floating questionnaire among various people. There were 90 responses collected consisting of a healthy mix of men-women and users-non users. Preparing Questionnaire The questionnaire was prepared keeping in mind the required data parameters for analysis. Link to questionnaire: http://kwiksurveys.com/app/rendersurvey.asp?sid=qkj1d9smzqo8nj619136&refer= The questionnaire was floated on various portals to collect responses creating an exhaustive sample space for analysis purpose. Responses were collected for different age group and genders.Vinod Gupta School of Management, IIT Kharagpur Page 11
  12. 12. AMRP PROJECT ITCVinod Gupta School of Management, IIT Kharagpur Page 12
  13. 13. AMRP PROJECT ITC Results Focus Group Discussion Results  Some men like to buy shower gels which have sporty feel associated to it  Some like to stick to the brand they are using  Some don’t find shower gels worth going for  One(male) tried shower gel sometime back but didn’t find it worth switching  Many think using soap is an easy task rather than shower gel  Some are of the opinion that shower gels are more hygienic  Few think that Loofah reduced the hygiene quotient for shower gels  Many (primarily men) are not aware what Loofah is  Few exhibit switching pattern between soap and shower gels even though they have been long term users of shower gels  Soap is also used for hand wash and other purpose as well. Another deterrent is the cost  Packaging and promotions help lure new customers who haven’t used shower gel before  You can carry a shower gel anywhere you want  A smaller pack for shower gels could be quite useful, many are deterred because of the high cost of a bottle and they don’t know whether they would like it or not.  Freshness is the most important criteria  The packaging for men’s shower gels should be quite differentiated from the others  A shower gel for oily skin possibly? Categorization of shower gels on the basis of skin type.  Friends are one of the biggest influencers for students/people in the age group of 20-30  Word of mouth is the most important mediumVinod Gupta School of Management, IIT Kharagpur Page 13
  14. 14. AMRP PROJECT ITC Responses from questionnaire Following are some charts to represent the findings. 60 50 40 30 Non-users of shower gel Users of shower gel 20 10 0 Men Women 30 25 20 15 Non-users Users 10 5 0 <3 lakhs per annum 3-6 lakhs per 6-10 lakhs per >10 lakhs per annum annum annum Figure: Users and Non-users of shower gel in different income slabsVinod Gupta School of Management, IIT Kharagpur Page 14
  15. 15. AMRP PROJECT ITCVinod Gupta School of Management, IIT Kharagpur Page 15
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  17. 17. AMRP PROJECT ITCVinod Gupta School of Management, IIT Kharagpur Page 17
  18. 18. AMRP PROJECT ITCVinod Gupta School of Management, IIT Kharagpur Page 18
  19. 19. AMRP PROJECT ITCVinod Gupta School of Management, IIT Kharagpur Page 19
  20. 20. AMRP PROJECT ITC Factor Analysis Reports KMO and Bartletts Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .767 Approx. Chi-Square 394.654 Bartletts Test of Sphericity Df 66 Sig. .000 Communalities Initial Extraction VAR00001 1.000 .544 VAR00002 1.000 .566 VAR00003 1.000 .866 VAR00004 1.000 .808 VAR00005 1.000 .642 VAR00006 1.000 .735 VAR00007 1.000 .625 VAR00008 1.000 .628 VAR00009 1.000 .723 VAR00010 1.000 .861 VAR00011 1.000 .727 VAR00012 1.000 .643 Extraction Method: Principal Component Analysis.Vinod Gupta School of Management, IIT Kharagpur Page 20
  21. 21. AMRP PROJECT ITC Total Variance Explained Compone Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared Loadings nt Loadings Total % of Cumulative Total % of Cumulative Total % of Cumulative Variance % Variance % Variance % 1 4.407 36.721 36.721 4.407 36.721 36.721 2.893 24.107 24.107 2 1.740 14.503 51.224 1.740 14.503 51.224 2.086 17.384 41.491 3 1.170 9.750 60.974 1.170 9.750 60.974 1.793 14.945 56.435 4 1.051 8.762 69.736 1.051 8.762 69.736 1.596 13.301 69.736 5 .867 7.228 76.963 6 .646 5.386 82.349 7 .551 4.594 86.943 8 .501 4.175 91.118 9 .382 3.183 94.301 10 .351 2.921 97.222 11 .219 1.829 99.051 12 .114 .949 100.000 Extraction Method: Principal Component Analysis. a Component Matrix Component 1 2 3 4 VAR00001 .540 -.028 .502 .001 VAR00002 .609 -.162 -.240 .334 VAR00003 .866 -.330 -.070 .040 VAR00004 .766 -.438 -.138 -.101 VAR00005 .495 .137 .588 .181 VAR00006 .511 -.174 -.135 .652 VAR00007 .424 .543 .345 .176 VAR00008 .635 .433 -.186 -.056 VAR00009 .623 .160 .214 -.514 VAR00010 .775 -.389 -.062 -.323 VAR00011 .471 .488 -.470 -.215 VAR00012 .329 .682 -.218 .148 Extraction Method: Principal Component Analysis. a. 4 components extracted.Vinod Gupta School of Management, IIT Kharagpur Page 21
  22. 22. AMRP PROJECT ITC Reproduced Correlations VAR00001 VAR00002 VAR00003 VAR00004 a VAR00001 .544 .213 .442 .356 a VAR00002 .213 .566 .611 .537 a VAR00003 .442 .611 .866 .814 a VAR00004 .356 .537 .814 .808 VAR00005 .559 .198 .349 .219 VAR00006 .214 .590 .536 .421 Reproduced Correlation VAR00007 .387 .146 .170 .021 VAR00008 .237 .342 .418 .328 VAR00009 .439 .131 .452 .429 VAR00010 .398 .442 .792 .805 VAR00011 .004 .249 .271 .234 VAR00012 .049 .192 .081 -.032 VAR00001 .141 -.073 -.057 VAR00002 .141 -.062 -.089 VAR00003 -.073 -.062 -.036 VAR00004 -.057 -.089 -.036 VAR00005 -.216 -.060 .029 .075 b Residual VAR00006 -.082 -.227 -.031 -.015 VAR00007 -.120 -.039 .027 .002 VAR00008 .024 -.085 -.016 .010 VAR00009 -.098 .042 -.036 -.046 VAR00010 -.018 -.036 .013 -.064Vinod Gupta School of Management, IIT Kharagpur Page 22
  23. 23. AMRP PROJECT ITC VAR00011 .019 -.046 -.014 .005 VAR00012 .082 .063 .025 .026 Reproduced Correlations VAR00005 VAR00006 VAR00007 VAR00008 a VAR00001 .559 .214 .387 .237 a VAR00002 .198 .590 .146 .342 a VAR00003 .349 .536 .170 .418 a VAR00004 .219 .421 .021 .328 VAR00005 .642 .267 .519 .254 VAR00006 .267 .735 .190 .238 Reproduced Correlation VAR00007 .519 .190 .625 .430 VAR00008 .254 .238 .430 .628 VAR00009 .363 -.073 .334 .453 VAR00010 .235 .262 .039 .353 VAR00011 -.015 .079 .264 .609 VAR00012 .155 .175 .461 .536 VAR00001 -.216 -.082 -.120 .024 VAR00002 -.060 -.227 -.039 -.085 VAR00003 .029 -.031 .027 -.016 b Residual VAR00004 .075 -.015 .002 .010 VAR00005 -.040 -.156 -.029 VAR00006 -.040 .026 .030 VAR00007 -.156 .026 -.059Vinod Gupta School of Management, IIT Kharagpur Page 23
  24. 24. AMRP PROJECT ITC VAR00008 -.029 .030 -.059 VAR00009 -.045 .140 -.040 -.045 VAR00010 -.037 .008 .096 -.052 VAR00011 .108 .024 .039 -.121 VAR00012 .012 -.091 -.186 -.128 Reproduced Correlations VAR00009 VAR00010 VAR00011 VAR00012 a VAR00001 .439 .398 .004 .049 a VAR00002 .131 .442 .249 .192 a VAR00003 .452 .792 .271 .081 a VAR00004 .429 .805 .234 -.032 VAR00005 .363 .235 -.015 .155 VAR00006 -.073 .262 .079 .175 Reproduced Correlation VAR00007 .334 .039 .264 .461 VAR00008 .453 .353 .609 .536 VAR00009 .723 .574 .381 .191 VAR00010 .574 .861 .274 -.045 VAR00011 .381 .274 .727 .558 VAR00012 .191 -.045 .558 .643 VAR00001 -.098 -.018 .019 .082 VAR00002 .042 -.036 -.046 .063 b Residual VAR00003 -.036 .013 -.014 .025 VAR00004 -.046 -.064 .005 .026Vinod Gupta School of Management, IIT Kharagpur Page 24
  25. 25. AMRP PROJECT ITC VAR00005 -.045 -.037 .108 .012 VAR00006 .140 .008 .024 -.091 VAR00007 -.040 .096 .039 -.186 VAR00008 -.045 -.052 -.121 -.128 VAR00009 -.062 -.100 .036 VAR00010 -.062 .007 .010 VAR00011 -.100 .007 -.152 VAR00012 .036 .010 -.152 Extraction Method: Principal Component Analysis. a. Reproduced communalities b. Residuals are computed between observed and reproduced correlations. There are 29 (43.0%) nonredundant residuals with absolute values greater than 0.05. a Rotated Component Matrix Component 1 2 3 4 VAR00001 .343 -.018 .648 .078 VAR00002 .368 .199 .065 .622 VAR00003 .762 .128 .226 .467 VAR00004 .821 .044 .074 .355 VAR00005 .131 .037 .776 .148 VAR00006 .137 .071 .160 .828 VAR00007 -.092 .436 .648 .082 VAR00008 .282 .693 .220 .139 VAR00009 .595 .343 .407 -.294 VAR00010 .906 .076 .120 .137 VAR00011 .247 .809 -.102 .006 VAR00012 -.156 .757 .162 .142 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 6 iterations.Vinod Gupta School of Management, IIT Kharagpur Page 25
  26. 26. AMRP PROJECT ITC Component Transformation Matrix Component 1 2 3 4 1 .706 .417 .425 .383 2 -.493 .789 .270 -.249 3 -.103 -.441 .849 -.273 4 -.498 -.099 .160 .847 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. Component Score Coefficient Matrix Component 1 2 3 4 VAR00001 .050 -.151 .412 -.065 VAR00002 .006 .043 -.090 .401 VAR00003 .220 -.045 -.012 .171 VAR00004 .307 -.065 -.110 .080 VAR00005 -.097 -.130 .523 .032 VAR00006 -.165 -.041 .024 .626 VAR00007 -.200 .140 .402 .021 VAR00008 .022 .332 -.015 -.008 VAR00009 .279 .099 .162 -.432 VAR00010 .393 -.049 -.080 -.123 VAR00011 .080 .463 -.253 -.092 VAR00012 -.192 .409 .002 .102 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. Component Score Covariance Matrix Component 1 2 3 4 1 1.000 .000 .000 .000 2 .000 1.000 .000 .000 3 .000 .000 1.000 .000 4 .000 .000 .000 1.000 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.Vinod Gupta School of Management, IIT Kharagpur Page 26
  27. 27. AMRP PROJECT ITC Interpretation The null hypothesis that the population correlation matrix is an identity matrix is rejected by Barlett’s test of sphericity. The approximate chi-square statistic is 394.654 with 66 degrees of freedom, which is significant at the 0.05 level. The value of the KMO statistic (0.767) is also large (>0.5). Thus factor analysis can be considered an appropriate technique for analysing the correlation matrix. The eigen values for the factors are, as expected, in decreasing order of magnitude as we go down from factor 1 to factor 12. The first four factors account for 69.736 percent of the variance. Hence we consider the number of factors equal to four. Interpretation of factors by rotated factor matrix gives us the following four factors - Factor 1:  Feel on the skin  Good cleansing  Brand name  Suitability to skin type being the most important Factor 2:  Price  Promotional scheme-most imp  Influence of friend-most imp Factor 3:  Fragrance  Lather  Packaging Factor 4:  Ingredient  ConsistencyVinod Gupta School of Management, IIT Kharagpur Page 27
  28. 28. AMRP PROJECT ITC Way Ahead • Meeting distributors • Increasing the scope of primary research • Customer data analysis • Recommendations for the marketing strategy I plan to increase the primary research getting more responses on the questionnaire which would help me give better and true picture of the results for analysis. Also, I could meet some distributors to gain better insights into the market scenario. On the basis of these analyses done, I would be able to recommend marketing strategy to ITC for shower gels.Vinod Gupta School of Management, IIT Kharagpur Page 28
  29. 29. AMRP PROJECT ITC References • N.Pag. The 2011-2016 Outlook for Body Wash and shower gels in India. Country Outlook Reports. Retrieved from http://bit.ly/P9mvAD • Gihan Wijesundera, Ruwan Abeysekera. Factors influencing the demand of beauty soap among female consumers in the greater Colombo region. Retrieved from http://bit.ly/RSwp63 • Mason, S. (2006). Shower Power. Global Cosmetic Industry, 174(11), 47-49. Retrieved from http://bit.ly/Qqx0djVinod Gupta School of Management, IIT Kharagpur Page 29

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