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SECTOR ANALYSIS
• In FMCG sector India’s GDP is 2.5% of the country’s GDP.
• In Personal care it has about 22% of the total FMCG sector and the Soap industry in India
comprises of 400 brands.
• The Personal care product of processing industry is growing at a rate of 7%.
• Overall FMCG market expected to increase at a CAGR of 14.7% to USD110.4 billion during
2012–20.
• Food products are the leading segment, accounting for 43 per cent of the overall market.
Personal care and fabric care come next in terms of market share .
• Personal care is the second leading segment of the sector accounting for 22.0 per cent
followed by tobacco which is 16%.
SECTOR ANALYSIS
SECTOR ANALYSIS
LITERATURE REVIEW
Randy's Research! Information on toiletries ingredients and herbal remedies
There is a large amount of information about the advantages of soap over
the commonly available commercial products. Articles available on the
internet will sing the praises of soap at great length.
The Wonderful World of Handmade Soaps!
by Lisa Salamida (owner of Savor Soaps, an Etsy store)
There is something so pleasurable about handmade items... from
creamyGinger Icing handmade soap from Savor beeswax candles with the
light natural scent of honey, to slow-cooked, thick and tasty pasta sauce, a
perfectly fluffy and flaky handmade biscuit - to handmade soap, lovingly
made and scented.
RESEARCH WORK
• Primary Research objective
• Secondary Research objective
• Methods
• Results
• Analysis
PRIMARY RESEARCH OBJECTIVE
Primary research is new research, carried out to answer specific
issues or questions. It can involve questionnaires, surveys or
interviews with individuals or small groups.
PRO:- To determine factor which influence the consumer buying
behavior of the FMCG product (soap)
P/O
Clarification
Situational
Analysis
Model development Specification for information
1) Cost High Cost 20 Price of the soap/weight
Medium
Cost
50 Price of the soap/weight
Low Cost 30 Price of the soap/weight
2)Brand Loyalty 40 Perception, satisfaction
Quality 60 Ingredients/smoothness/Safety
3)Advertise
ment
Mass Media 40 Hoardings/newspapers
Social Media 60 TV channels/e-commerce/Brand
Ambassadors
Nuclear family/joint family
Upper Class/Middle Class/Lower class
4)Social
Factor
Family Size 70
Life Style 30
5)Types Beauty Soap 60 Fragnence/mosturing/cleansing
Medicated
Soap
30 Germicides/antibacterial
Liquid Soap 10 Cleansing/fragnence/freshness
6)Consumer
Attraction
Point
Packaging 20 Heavy/light packaging
Gender 50 Male/female
Discount 30 Discount offer on single product/multiple
product
7) Income High Income 5 75000 & above
Medium
Income
40 above 15000-75000
Low Income 55 Less than 15000
SECONDARY RESEARCH OBJECTIVE
Secondary research makes use of information previously researched
for other purposes and publicly available
• SRO 1 : To evaluate whether Cost of the product-high
cost/medium cost/ low cost- is adequate to influence consumer
buying behavior of body care Product (soap). With an of weightage
of 20/50/30.
• SRO 2 : To evaluate whether brand of the product –
loyalty/quality is adequate to influence Consumer buying
behavior of body care product (soap) with a weightage of 40/60.
• SRO 3 : To evaluate whether advertisement of the product-
mass media/social media-Is adequate to influence consumer buying
behavior of a body care product(soap) with a weightage of 40/60.
SECONDARY RESEARCH OBJECTIVE
• SRO 4 : To evaluate whether social factor of the consumer
behavior-family size/ life styles adequate to influence the
consumer buying behavior with a weightage of 70/30.
• SRO 5 : To evaluate whether types of the product-beauty
soap/medicated soap/liquidity soap is adequate to influence the
consumer buying behavior with a weightage of 60/30/10.
• SRO 6 : To evaluate whether consumer attraction point-
gender/discount Is adequate to influence consumer buying
behavior with a weightage of 20/50/30.
• SRO 7: To evaluate whether Income of the consumer-high
income/medium income/low income is adequate to influence
consumer buying behavior with a weightage of 5/40/55
METHODS
Scale:
The scales used for the research study are :
Semantic differential scale: Here the rater is required to
rate objects on a number of itemized 5-point rating scale,
bounded by opposite objectives at each end (bipolar
adjectives).
Likert scale: Here respondent needs to indicate
agreement/disagreement to a series of statements related to
objects. Value maybe assigned to each option for analyses.
METHODS
Sample:
The sample used for the research study is judgmental
sampling.
Judgmental sampling is a non-probability sampling
technique where the researcher selects units to be
sampled based on their knowledge and judgment
RESULT & ANALYSIS
RESULT OF CROSS TAB 1
Null Hypothesis, Ho: The Expenditure has no significant
influence on Income of Body care product (Soap).
Assuming that C.L is 95%.
Pobs = 0.281 Pcrit=0.05
From the Chi square table we observe that Pobs < Pcritical.
Therefore we reject the Ho.
• The conclusion : As it is observed that Pobs is greater than
Pcrit therefore expenditure has significant influence on
Income of body care product (soap).
RESULT & ANALYSISRESULT OF CROSS TAB 2
Null Hypothesis, Ho: The price of the product has no significant
influence on income of the consumer for body care product(
soap).
Assuming C.L is 95%.
Pobs = 0.736 Pcrit=0.05
From the Chi square table we observe that Pobs < Pcritical.
Therefore ,we fail to reject the Ho.
• The conclusion : As it can be observed that Pobs is greater
than Pcrit therefore the price of the product has no
significant influence on income of the consumer for body care
product(soap).
RESULT & ANALYSIS
RESULT OF CROSS TAB 3
• Null Hypothesis, Ho: The quality of the product has no significant
influence on brand of the body care product(soap).
Assuming C.L is 95%.
Pobs = 0.00314 Pcrit=0.05
From the Chi square table we observe that Pcrit <Pobs.
Therefore ,we reject the Ho
• The conclusion: As it can be observed that Pobs is lesser than Pcrit
therefore the quality of the product has significant influence on
brand of the body care product (soap).
RESULT & ANALYSIS
RESULT OF CROSS TAB 4
Null Hypothesis, Ho: The price of the product has no significant influence
on number of earning members of the family for the body care
product(soap).
Pobs = 0.085 Pcrit=0.05
From the Chi square table we observe that Pobs< Pcritical.
Therefore ,we fail to reject the Ho
• The conclusion: As it can be seen that Pcrit is smaller than Pobs
therefore the price of the product has significant influence on the
number of earning member of the family for the body care product
(soap).
RESULT & ANALYSIS
RESULT OF CROSS TAB 5
Null Hypothesis, Ho: The social factor of the consumer
has significant influence on advertisement for the body
care product (soap).
Assuming C.L is 95%.
Pobs = 0.02040 Pcrit=0.05
From the Chi square table we observe that Pcrit >Pobs.
Therefore, we reject the Ho
• The conclusion :As it can be seen that the Pcrit is
greater than Pobs therefore social factor of the
consumer has no significance impact on advertisement
for the body care product (soap).
CONCLUSION
• Promotion through Television is the highest followed by
Newspaper and Hoardings respectively. Since, promotion of Margo
is the lowest they should promote itself more to increase sales.
• People use Domestic soap more than imported soap where female
respondents were more in favor of Domestic soap than male.
• People in the urban area they mostly purchase the soap from the
big mart like reliance fresh or big bazaar and where else in the rural
areas they mostly purchase the soap from provision store.
• People mostly change their loyalty towards different soap types on
the basis of quality, variety & discount in the above soap.
• Celebrity endorsement matter a lot by the consumer and the
consumer also thinks that celebrity make product close to the
consumer.
Managerial Implication
 Some products are successful in the market due to the promotion
strategies and modes used by a company. Soap manufacturers adopt good
promotional strategies; hence it is famous among consumers. Thus,
promotion plays an important role in increasing in the sales of soap.
 It was observed that though many people preferred natural ingredient
(Aurvedic) soap more than artificial soap, thus the manufacturer should
focus on using natural ingredient which might benefit the retailers, as it
will increase sell.
 As the frequency of usage of soap is low in the winter, the retailers can sell
soap at a discounted rate or may introduce free gifts with it. Further the
retailers may seek suggestions from customers to make use of soap.
 As it was observed that people are more concerned with the
quality of soap they buy rather than heath or price. Hence,
manufacturers should always focus on providing quality products
or else they might lose customers as there are a number of
competitors available in the market.
 Advertisers can position soap on the basis of fregnence as it is
seen that fregnence influences buying habits of people.
Research methodology presentation.

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Research methodology presentation.

  • 1.
  • 2. SECTOR ANALYSIS • In FMCG sector India’s GDP is 2.5% of the country’s GDP. • In Personal care it has about 22% of the total FMCG sector and the Soap industry in India comprises of 400 brands. • The Personal care product of processing industry is growing at a rate of 7%. • Overall FMCG market expected to increase at a CAGR of 14.7% to USD110.4 billion during 2012–20. • Food products are the leading segment, accounting for 43 per cent of the overall market. Personal care and fabric care come next in terms of market share . • Personal care is the second leading segment of the sector accounting for 22.0 per cent followed by tobacco which is 16%.
  • 5. LITERATURE REVIEW Randy's Research! Information on toiletries ingredients and herbal remedies There is a large amount of information about the advantages of soap over the commonly available commercial products. Articles available on the internet will sing the praises of soap at great length. The Wonderful World of Handmade Soaps! by Lisa Salamida (owner of Savor Soaps, an Etsy store) There is something so pleasurable about handmade items... from creamyGinger Icing handmade soap from Savor beeswax candles with the light natural scent of honey, to slow-cooked, thick and tasty pasta sauce, a perfectly fluffy and flaky handmade biscuit - to handmade soap, lovingly made and scented.
  • 6. RESEARCH WORK • Primary Research objective • Secondary Research objective • Methods • Results • Analysis
  • 7. PRIMARY RESEARCH OBJECTIVE Primary research is new research, carried out to answer specific issues or questions. It can involve questionnaires, surveys or interviews with individuals or small groups. PRO:- To determine factor which influence the consumer buying behavior of the FMCG product (soap)
  • 8. P/O Clarification Situational Analysis Model development Specification for information 1) Cost High Cost 20 Price of the soap/weight Medium Cost 50 Price of the soap/weight Low Cost 30 Price of the soap/weight 2)Brand Loyalty 40 Perception, satisfaction Quality 60 Ingredients/smoothness/Safety 3)Advertise ment Mass Media 40 Hoardings/newspapers Social Media 60 TV channels/e-commerce/Brand Ambassadors Nuclear family/joint family Upper Class/Middle Class/Lower class 4)Social Factor Family Size 70 Life Style 30 5)Types Beauty Soap 60 Fragnence/mosturing/cleansing Medicated Soap 30 Germicides/antibacterial Liquid Soap 10 Cleansing/fragnence/freshness 6)Consumer Attraction Point Packaging 20 Heavy/light packaging Gender 50 Male/female Discount 30 Discount offer on single product/multiple product 7) Income High Income 5 75000 & above Medium Income 40 above 15000-75000 Low Income 55 Less than 15000
  • 9. SECONDARY RESEARCH OBJECTIVE Secondary research makes use of information previously researched for other purposes and publicly available • SRO 1 : To evaluate whether Cost of the product-high cost/medium cost/ low cost- is adequate to influence consumer buying behavior of body care Product (soap). With an of weightage of 20/50/30. • SRO 2 : To evaluate whether brand of the product – loyalty/quality is adequate to influence Consumer buying behavior of body care product (soap) with a weightage of 40/60. • SRO 3 : To evaluate whether advertisement of the product- mass media/social media-Is adequate to influence consumer buying behavior of a body care product(soap) with a weightage of 40/60.
  • 10. SECONDARY RESEARCH OBJECTIVE • SRO 4 : To evaluate whether social factor of the consumer behavior-family size/ life styles adequate to influence the consumer buying behavior with a weightage of 70/30. • SRO 5 : To evaluate whether types of the product-beauty soap/medicated soap/liquidity soap is adequate to influence the consumer buying behavior with a weightage of 60/30/10. • SRO 6 : To evaluate whether consumer attraction point- gender/discount Is adequate to influence consumer buying behavior with a weightage of 20/50/30. • SRO 7: To evaluate whether Income of the consumer-high income/medium income/low income is adequate to influence consumer buying behavior with a weightage of 5/40/55
  • 11. METHODS Scale: The scales used for the research study are : Semantic differential scale: Here the rater is required to rate objects on a number of itemized 5-point rating scale, bounded by opposite objectives at each end (bipolar adjectives). Likert scale: Here respondent needs to indicate agreement/disagreement to a series of statements related to objects. Value maybe assigned to each option for analyses.
  • 12. METHODS Sample: The sample used for the research study is judgmental sampling. Judgmental sampling is a non-probability sampling technique where the researcher selects units to be sampled based on their knowledge and judgment
  • 13. RESULT & ANALYSIS RESULT OF CROSS TAB 1 Null Hypothesis, Ho: The Expenditure has no significant influence on Income of Body care product (Soap). Assuming that C.L is 95%. Pobs = 0.281 Pcrit=0.05 From the Chi square table we observe that Pobs < Pcritical. Therefore we reject the Ho. • The conclusion : As it is observed that Pobs is greater than Pcrit therefore expenditure has significant influence on Income of body care product (soap).
  • 14. RESULT & ANALYSISRESULT OF CROSS TAB 2 Null Hypothesis, Ho: The price of the product has no significant influence on income of the consumer for body care product( soap). Assuming C.L is 95%. Pobs = 0.736 Pcrit=0.05 From the Chi square table we observe that Pobs < Pcritical. Therefore ,we fail to reject the Ho. • The conclusion : As it can be observed that Pobs is greater than Pcrit therefore the price of the product has no significant influence on income of the consumer for body care product(soap).
  • 15. RESULT & ANALYSIS RESULT OF CROSS TAB 3 • Null Hypothesis, Ho: The quality of the product has no significant influence on brand of the body care product(soap). Assuming C.L is 95%. Pobs = 0.00314 Pcrit=0.05 From the Chi square table we observe that Pcrit <Pobs. Therefore ,we reject the Ho • The conclusion: As it can be observed that Pobs is lesser than Pcrit therefore the quality of the product has significant influence on brand of the body care product (soap).
  • 16. RESULT & ANALYSIS RESULT OF CROSS TAB 4 Null Hypothesis, Ho: The price of the product has no significant influence on number of earning members of the family for the body care product(soap). Pobs = 0.085 Pcrit=0.05 From the Chi square table we observe that Pobs< Pcritical. Therefore ,we fail to reject the Ho • The conclusion: As it can be seen that Pcrit is smaller than Pobs therefore the price of the product has significant influence on the number of earning member of the family for the body care product (soap).
  • 17. RESULT & ANALYSIS RESULT OF CROSS TAB 5 Null Hypothesis, Ho: The social factor of the consumer has significant influence on advertisement for the body care product (soap). Assuming C.L is 95%. Pobs = 0.02040 Pcrit=0.05 From the Chi square table we observe that Pcrit >Pobs. Therefore, we reject the Ho • The conclusion :As it can be seen that the Pcrit is greater than Pobs therefore social factor of the consumer has no significance impact on advertisement for the body care product (soap).
  • 18. CONCLUSION • Promotion through Television is the highest followed by Newspaper and Hoardings respectively. Since, promotion of Margo is the lowest they should promote itself more to increase sales. • People use Domestic soap more than imported soap where female respondents were more in favor of Domestic soap than male. • People in the urban area they mostly purchase the soap from the big mart like reliance fresh or big bazaar and where else in the rural areas they mostly purchase the soap from provision store. • People mostly change their loyalty towards different soap types on the basis of quality, variety & discount in the above soap. • Celebrity endorsement matter a lot by the consumer and the consumer also thinks that celebrity make product close to the consumer.
  • 19. Managerial Implication  Some products are successful in the market due to the promotion strategies and modes used by a company. Soap manufacturers adopt good promotional strategies; hence it is famous among consumers. Thus, promotion plays an important role in increasing in the sales of soap.  It was observed that though many people preferred natural ingredient (Aurvedic) soap more than artificial soap, thus the manufacturer should focus on using natural ingredient which might benefit the retailers, as it will increase sell.  As the frequency of usage of soap is low in the winter, the retailers can sell soap at a discounted rate or may introduce free gifts with it. Further the retailers may seek suggestions from customers to make use of soap.
  • 20.  As it was observed that people are more concerned with the quality of soap they buy rather than heath or price. Hence, manufacturers should always focus on providing quality products or else they might lose customers as there are a number of competitors available in the market.  Advertisers can position soap on the basis of fregnence as it is seen that fregnence influences buying habits of people.