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TABLE OF CONTENTS
1 EXECUTIVE SUMMARY.....................................................................................................2
2 INTRODUCTION...................................................................................................................3
2.1.1 BACKGROUND .........................................................................................................3
3 RESEARCH FRAMEWORK.................................................................................................4
3.1.1 RESEARCH PROPOSAL .............................................................................................4
3.1.2 RESEARCH DESIGN...................................................................................................4
3.1.3 RESEARCH PROBLEM – 1.........................................................................................4
3.1.4 RESEARCH QUESTIONS –1.......................................................................................4
3.1.5 RESEARCH PROBLEM - 2..........................................................................................5
3.1.6 RESEARCH QUESTIONS -2........................................................................................5
4 RESEARCH METHODOLOGIES.........................................................................................5
4.1.1 LITERATURE SURVEY ...............................................................................................5
4.1.2 SWOT ANALYSIS ......................................................................................................7
4.1.3 QUALITATIVE RESEARCH .........................................................................................8
4.1.4 Key Findings from Qualitative Research: ................................................................9
4.1.5 Root causes for declining Sales growth:..................................................................9
5 RESEARCH HYPOTHESES DEVELOPMENT.................................................................10
5.1.1 RESEARCH HYPOTHESES DEVELOPMENT..............................................................10
6 DATA ANALYSIS PLAN ...................................................................................................16
7 Hypothesis Analysis according to Questionnaire..................................................................19
7.1.1 For hair gel users...................................................................................................19
7.1.2 For NON SET WET hair gel users ...........................................................................26
7.1.3 For SET WET hair gel users....................................................................................29
7.1.4 For non-users of hair gel .......................................................................................39
8 CONCLUSION.....................................................................................................................46
9 ANNEXURE A (OBJECTIVE OF THE IN-DEPTH INTERVIEW)..............................48
1 EXECUTIVE SUMMARY
Aim: Even as the Men’s Personal Care segment has grown in India in both sales and
product line, Marico noticed that the annual growth of its Youth Segment product portfolio
was slowing down to 6% as compared to the 14%-15% growth it enjoyed in 2009. This
slowdown has been primarily attributed to entry of competitor’s in the Hair Gel segment,
a forerunner for Marico with its Set Wet product line. Through this study, we aim to
understand the reason for such a slowdown and, using consumer perception’s, establish
change parameters.
Research Methodology: Explorative research was initially undertaken through personal,
indepth interviews conducted in Jamshedpur. There results were then collaborated with
Secondary Data obtained through Euromonitor reports and Marico press releases. To
quantify this, and effectively begin change control mechanisms, a quantitative survey was
undertaken among all target groups established through the interview. From the major
parameters that emerged, the ones with maximum correlation were used further and a data
analysis plan emerged. It should be noted that the survey was mainly focussed on target
and converted users.
Conclusion: By the end of this study, we aim to provide Marico with an in depth analysis
of the reasons for a growth slowdown in Set Wet gel sales and what parameters can be
modified to restore normalcy
2 INTRODUCTION
2.1.1 BACKGROUND
According to the Euromonitor Report titled “Men’s Grooming in India”, the segment
registered a growth of 15% in 2014, to reach INR 53.6 billion. Although this was primarily
led by urban consumer demand, a category expansion was seen into Bath and Shower
products along with Skin Care, much beyond the regular Shaving products. During the
forecast period of 014-19, it is predicted that a total (CAGR) increase of 10% would be
observed over 2014 prices. It was seen that men in India today—and especially those who
fall in the age group of 18 to 25— spent more money on grooming and personal care
products than women. 85% men preferred to buy their own products and did not rely on
the women in the household to help them. 75% of the men reported their branded cosmetic
consumption to have gone up by about 65% in last ten years.
The report, “Indian Hair Care Market Forecast to 2015”, says that the increasing desire to
look presentable and stylish is driving the markets. The Indian Hair Care market is derived
by analyzing and studying its sub-segments including: hair oil, shampoo, conditioners, hair
color and gel. The reasons for this ranged from Professional Image building increased
emphasis on personal grooming and not just sex appeal, product innovation, expanding
middle Class to endorsements by celebrities and sports stars Among all other categories,
the Hair Care segment registered the highest growth – 21% in terms of 2015 value terms.
It was mainly driven by market expansion, led by Marico and Emami, to men using styling
gels at an age earlier than ever before – 15 years.
3 RESEARCH FRAMEWORK
3.1.1 RESEARCH PROPOSAL
In 2014, Marico represented the fifth largest share of companies in India by % value – it
stood at 5%, down from 5.6% and 5.4% in 2012 and 2013 respectively. Of this, Set Wet
Gel contributed 3.8%, 4.2% and 4.3% respectively over 2015, 2014 and 2013. Marico’s
Youth portfolio, consisting of Serums and Hair Gels, was 44% in terms of portfolio share
for the quarter ended March in 2015. According to AC Nielsen study, Value of SET wet
hair gel was 53cr in 2012, 73cr in 2013 but declined to 72cr in 2014 and sales growth
declining since then. Thus our Management Decision Problem (MDP) for this study is
“Should Marico invest to revive Set Wet Gel sales growth?”
3.1.2 RESEARCH DESIGN
The Marketing Dictionary of Rona Ostrow and Sweetman R. Smith describes lifestyle as
"a distinctive mode of behaviour centred around activities, interests, opinions, attitudes
and demographic characteristics distinguishing one segment of a population from another”.
Lifestyle marketing involves segmentation of the market on the basis of lifestyle
dimensions, positioning the product such that it appeals to the interests, activities and
opinions of the target customers and doing promotional campaigns such that it exploits
lifestyle appeals to create value to the product offered. We started through Exploratory
Research where we did in-depth interviews and qualitative research to comprehend the
problem situations confronting researchers. We were able to list down various factors
affecting customer perception of the product and effect of promotional campaigns on its
sales. After that we will be doing Conclusive research that involves data collection and
analysis to obtain cause and effect relationships between the variables which will help us
in decision making.
3.1.3 RESEARCH PROBLEM – 1
1. To determine the current perception of Set Wet Gel in the mind of the consumer
3.1.4 RESEARCH QUESTIONS –1
a) What are the main reasons for using hair gel?
1) How important is peer influence on selection of brands (Rate among all factors)?
2) How does usage frequency i.e. Regular, Occasional and Rare affect brand
determination (Rate among all factors)?
b) How has entry of competitors with alternatives to hair gel affected sales?
c) Do hair gels have a negative perception among the youth with regards to hair damage?
d) To what extent does presence of natural ingredients influence customer perception and
affect sales?
e) How significant is packaging’s role in product perception?
3.1.5 RESEARCH PROBLEM - 2
2. To determine the effect of promotional campaigns on market penetration level
3.1.6 RESEARCH QUESTIONS -2
a) In spite of being the market leader, why has sales growth for Set Wet Gel declined in
the past years?
b) What effect does the product tag line have on different demographics?
c) To what extent does advertisement (or change thereof) affect sales?
d) Which is the most effective medium of communication among the target consumers?
4 RESEARCH METHODOLOGIES
4.1.1 LITERATURE SURVEY
Howard and Sheth buying behavior model was proposed in the 1960s to explain buyer
rationality while making purchase decisions even in conditions of incomplete information.
The model focuses on repeat buying/purchase. According to this model we categorize our
factors into four major components, viz., stimulus inputs (input variables), hypothetical
constructs, response outputs (output variables), and, exogenous variables. a) Stimulus
inputs (Input variables): The input variables refer to the stimuli in the environment. They
take the form of informative cues about the product/service offering; these information
cues could relate to quality, price, distinctiveness, service and availability. The
informational cues could be Significative, Symbolic, and Social. All these three types of
stimuli provide inputs concerning the product/brand to a consumer. Significative stimuli
refers to the product/brand information that the marketer provides. It deals essentially with
the brand characteristics. Symbolic stimuli refer to the psychological form with which a
buyer perceives the product and service offering. It is figurative and perceptual and
depends on how the offering has been positioned. It emanates from advertising and
promotion efforts. Social stimuli refer to the information about the product or service
offering that comes from the social environment viz. family, groups, society and culture at
large.
b) Hypothetical constructs: Howard and Sheth classified the hypothetical constructs into
two major groups, viz., perceptual constructs and learning constructs. These constitute the
central part of the model and deal with the psychological variables which operate when
the consumer is undergoing the decision making process.
c) Perceptual constructs: The perceptual constructs deal with how a consumer obtains and
processes information received from the input variables. Once the buyer is exposed to any
information, there is an attention. This attention towards the stimuli depends on the buyers’
sensitivity to information in terms of his urge and receptivity towards such information.
Not all information would be processed and the intake of information is subject to
perceived uncertainty and lack of meaningfulness of information; this is referred to as
stimulus ambiguity. This reflects the degree to which the buyer regulates the stimulus
information flow. Stimulus ambiguity occurs when a consumer does not understand the
message from the environment; it could trigger off a need for a specific and active search
for information and thus lead to an overt search for information. The information that is
gathered and processed may suffer from perceptual bias if the consumer distorts the
information received so as to fit his/her established needs/beliefs/values/experiences etc. -
Learning constructs: The learning constructs relate to buyer learning, formation of
attitudes and opinions, and the final decision. The learning constructs are seven in number,
and range from a buyer’s motive for a purchase to the final satisfaction from a purchase;
the interplay of these constructs ultimately leads to a response output or a purchase. The
motives refer to the goals that a buyer seeks to achieve through a purchase and the
corresponding urge towards action or the purchase activity. The brand comprehension is
the knowledge and information that the buyer has about the various brands in his evoked
set. The buyer forms an order of preference for the various brands; this order of preference
is based on the choice criteria (decision mediators). The decision mediators are the
evaluative criteria and the application of decisions rules by the buyer to the various
purchase alternatives. Based on the choice criteria, the attitudes are formed for the varying
brands. The attitudes reflect the predisposition of the buyer; preference toward alternative
brands; and, feelings of like/dislike towards the offerings. The brand potential of the
evoked set determines the buyer's perception and confidence level of the brands that he is
considering to purchase. The purchase intention is a cumulative outcome of the interaction
of buyer motives, choice criteria, brand comprehension, resultant brand attitude and the
confidence associated with the purchase. Satisfaction, another learning construct, involves
the post purchase evaluation (whether expectation from an offering matches the
performance) and resultant impact (positive/negative) on brand comprehension. c)
Response outputs (output variables): The output variables refer to the buyer’s action or
response to stimulus inputs. According to Howard and Sheth, the response outputs
comprise five constituents, viz., attention, comprehension, attitude, intention and purchase.
These could be arranged in a hierarchy, starting from attention and ending up with
purchase. - Attention refers to the degree or level of information that a buyer accepts when
exposed to a stimulus. It reflects the magnitude of the buyer's information intake. -
Comprehension is the amount of information that he actually processes and stores; here, it
refers to brand comprehension which is buyers’ knowledge about the product/service
category and brand. - The attitude is the composite of cognition, affect and behavior
towards the offering; the attitude reflects his evaluation of the brand and the like/dislike
based on the brand potential. - Intention refers to the buyer’s intention to buy or not to buy
a particular offering. - Purchase behavior refers to the actual act of buying. The purchase
behavior is a cumulative result of the other four constituents. d) Exogenous variables: The
Howard and Sheth model also comprises certain constant exogenous variables that
influence some or all of the constructs explained above, and thereby impact the final output
variables. These are explained as Inhibitors or environmental forces that restrain the
purchase of a favored brand; eg., importance of the purchase, price, financial status of the
buyer, time at the disposal of the buyer, personality traits, social pressures etc.
4.1.2 SWOT ANALYSIS
Strengths
Has a strong brand name and presence in India
Effective advertising and branding targeting the youth
Good distributions, promotions and campaign for luring customers
Also provides a grooming range with deodorant to push sales
Popular TV campaigns and print ads aligned for the youth
Weaknesses
Only an urban market phenomenon
High pricing reduces the target market
Controversial advertisement often leads to legal issues
Opportunities
Limited edition fragrances
Tie up with hotel chains and gyms
Increase market share by tapping into demographics
Couple with other Marico products
Threats
Deodorants sales are seasonal and maximize in summer months
Competition from premium hair wax competitors like Hair Wax
4.1.3 QUALITATIVE RESEARCH
Qualitative research technique aims at understanding people. As our problem statement
deals with declining sales growth rate of the leading hair gel brand in India, we need to
understand the usefulness of the brand as perceived by the consumers. We primarily
focused on secondary data sources and in-depth interviews as research methodology. For
in-depth interview, sampling was done from a population consisting of people of
Jamshedpur. The selection criteria for sampling has been explained in further segments.
Next step involved identifying variables based on research questions. The key variables
identified have been tabulated below:
Variable Parameters
Purchase Intent Professional Image building, Grooming, Styling, Social
Events, Keeping hair in place and acceptance among
peers
Peer Influence Source of information, Need for acceptance
Frequency of Use Daily occasions and Social Gatherings
Personality of Buyer Pre-University Teens, Graduate Students, Young
Professionals
Product Attribute Ingredients – Natural and Artificial, Pricing, Ease of Use,
Strength (Frequency of Application)
Industry Attributes Brand image of Product, Brand image of competitors,
Industry growth rate
Packaging and Tagline Positioning, Demographics
Source of Information Advertisements, Peers, Online Forums, Expert opinion
through magazines, Salons
Advertisement Target Group, Brand Positioning
Following the in depth interview, a questionnaire was developed based on the qualitative
research findings. The findings from the in-depth interview was compared with secondary
data collected to refine the questionnaire. This questionnaire has been attached in the
appendix. The key findings from these interviews is discussed in detail in the next section.
4.2.1 In-depth Interview
Sample 1 – Young working Male
Meeting point – CCD, Brubeck, and popular hangout places in Jamshedpur
Sample 2 – Cousins studying in undergrad colleges
Meeting point – Virtual, through phone and internet
Sample 3 – ex-colleagues
Meeting point – Virtual, through phone and internet
Sample 4 – Classmates at XLRI
Meeting point – XLRI
The subjects fit into following 3 types:
1. Type 1 – pre university/ late teens (15-20 Years)
2. Type 2 – young professionals (20-22 years)
3. Type 3 – Graduate students (22-25 years)
4.1.4 Key Findings from Qualitative Research:
Need States:
Need states Attribute
Daily Usage
All three types are looking for products
that give a natural look and can be used
daily
Regular Formal Usage
Most sought after quality in hair gel by
Type 2 users, ‘Classy’ instead of ‘Sexy’
Occasional Usage
Mostly styling needs, Can be introduced
as a stronger variety of the same product
4.1.5 Root causes for declining Sales growth:
1. 90’s Image of Hair Gel – Hair gel is perceived to be used for extensive styling of hair
and the slick-back look, whereas the audience has matured and is looking for an advanced,
classy product
2. Perception that Gel is Harmful to the Hair – Belief that gels contain chemicals, make
the hair brittle and cause hair fall. None of the beliefs are substantiated by actual data or
evidence, propagated by peer groups. Tendency to blame any adverse hair condition on
styling products. So they tend to stick to products like shampoos and conditioners
3. Technical Problems – Gelled hair tends to attract grime and dust because of its
stickiness. Sticky texture not suitable for Indian weather because heat and sweat causes
the product to leak onto the face
4. In-Your-Face Look – Gel is very evident and noticeable. It doesn’t look natural and
any third person can tell that gel has been used which makes the user look like he’s trying
too hard. Users want a product that’s more understated yet fulfils their styling needs
5. Alternatives Recommended by Primary Reference Groups – Increasingly, stylists
are dissuading customers from using gels and are steering them towards products like hair
wax. Stylists are primary influencers when it comes to hair care and users are quick to
change their styling routines on the advice of stylists
5 RESEARCH HYPOTHESES DEVELOPMENT
5.1.1 RESEARCH HYPOTHESES DEVELOPMENT
 “MDP – Should Marico invest to revive Set Wet Gel sales growth?”
Research suggests that customers go through a five-stage decision-making process in any
purchase. This is summarized in the diagram below
Need Recognition and Problem Awareness
Information Search
Evaluation of Alternatives
Purchase
Post Purchase Evaluation
The Early starters among the Type 2 and Type 3 interviewees stated being influenced
by the sleek ads for hair gel in their teenage years. The need to look ‘Cool’ via flashy
hair gels and trendy hair styles is what initiated gel usage for them. Interestingly,
current teenagers are looking for hair styling options that are quite different – Healthy
products that give a soft hold and sober style
The model implies that customers pass through all stages in every purchase. However, in
more routine purchases, customers often skip or reverse some of the stages. For example,
a customer buying a favourite product would recognise the need and go right to the
purchase decision, skipping information search and evaluation. However, the model is
very useful when it comes to understanding any purchase that requires some thought and
deliberation. The buying process starts with need recognition. At this stage, the buyer
recognises a problem or need or responds to a marketing stimulus. An "aroused" customer
then needs to decide how much information (if any) is required. If the need is strong and
there is a product or service that meets the need close to hand, then a purchase decision is
likely to be made there and then. If not, then the process of information search begins.
A customer can obtain information from several sources:
Personal sources: family, friends, neighbours etc
Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale
displays
Public sources: newspapers, radio, television, consumer organisations; specialist
magazines
Experiential sources: handling, examining, using the product The usefulness and influence
of these sources of information will vary by product and by customer. Research suggests
that customers value and respect personal sources more than commercial sources (the
influence of "word of mouth"). The challenge for the marketing team is to identify which
information sources are most influential in their target markets.
In the evaluation stage, the customer must choose between the alternative brands, products
and services.
How does the customer use the information obtained?
An important determinant of the extent of evaluation is whether the customer feels
"involved" in the product. By involvement, we mean the degree of perceived relevance
and personal importance that accompanies the choice.
Where a purchase is "highly involving", the customer is likely to carry out extensive
evaluation.
Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in
the supermarket) have very simple evaluation processes.
Post-purchase evaluation - Cognitive Dissonance
The final stage is the post-purchase evaluation of the decision. It is common for customers
to experience concerns after making a purchase decision. This arises from a concept that
is known as "cognitive dissonance". The customer, having bought a product, may feel that
an alternative would have been preferable. In these circumstances that customer will not
repurchase immediately, but is likely to switch brands next time.
To manage the post-purchase stage, it is the job of the marketing team to persuade the
potential customer that the product will satisfy his or her needs. Then after having made a
purchase, the customer should be encouraged that he or she has made the right decision.
Customer seeks to utilize maximum features of the products. In case of Set Wet gel, the
consumer links him to features accentuated by the Set Wet marketing team. The usage
conditions and materials used along with the associated risks can be some of the limiting
factors. These factors inhibit the manner in which consumers seek to derive benefits. Thus
we have hypothesized that the pertaining properties of Gel are the most important
inhibiting factors and the ingredients, advertising and packaging are important promoting
factors.
 “RP – To determine the current perception of Set Wet Gel in the mind of the
consumer”
For developing our research Hypothesis, we need to understand the factors behind any
decision making process. In case of hair gel, the main decision triggers can be styling, need
for social acceptance, peer influence. In some of the cases, maintaining unruly hair and
using hair gel as a protective coating for hair has also been seen. In most cases, it is a five
stage decision making process (Kotler, Keller, Koshy and Jha, 2008).
1) What are the main reasons for using hair gel?
H1: Hair gel is preferred because
H2: Stylish hair is an important component of social acceptance at gatherings and
events
H3: Stylish hair increases appeal to the opposite gender
H4: Hair gel helps maintain unruly hair
H5: People use hair gel because of its strength of hold
H6: Hair gel nourishes hair
Frequency of use is a function of type of users (demographics), occasion (need based) and
psychological factors (trade-off between usefulness and perceived damage to hair,
uncertainty and other related factors (Hansen, 1976)). Like any other convenience product,
product pricing and promotion play a major role as compared to product quality. As the
frequency of use increases, brand loyalty becomes important, keeping other variables like
price constant.
2) How does usage frequency i.e. Regular, Occasional and Rare affect brand
determination
H1: For frequent usage, advertisement about sales promotions and discounts are
more important than brand loyalty
H2: For frequent usage, price is more important than quality
H3: For rare usage, advertisement about sales promotions and discounts are more
important than brand loyalty
H4: For rare usage, price is more important than quality
In addition to finding the purchase intent, our research hypothesis is developed
keeping in mind external variables like competitors that affect consumer buying
behaviour. There has been introduction of various competing brands as well as
alternatives of hair gel, like hair wax, in the market. With increasing awareness
generated through promotional channels, consumers are making more informed
decisions while making purchase decisions.
3) How has entry of competitors with alternatives to hair gel affected sales
H1: Better substitutes like hair wax
H2: Set wet quality is lower than competitors’ products
H3: Competitor’s product is priced at a lower per unit rate
H4: Competitor’s product occupies better shelf space and is more readily visible
in stores
Unlike shampoos and conditioners that are a basic necessity for maintaining cleanliness
and hygiene, hair gels are perceived as styling products. In addition to exposing hair to
various harmful chemicals, they also attract dust and pollution due to their sticky nature.
Introduction of non-sticky variants may go a long way in addressing these issues. Also,
hair gels might be considered by some as potent causes of hair falls. All these factors can
lead to decreasing Sales even for the leading brand in the market.
Presence of natural ingredients not only reduces the perceived negative consequences of
sing hair gel, but it also helps in promoting the product as something that can improve the
quality of hair. Thus, it addresses the safety concerns as well as provides added benefits.
These factors can play a crucial role in the urban/high income group consumers, which
will eventually lead to increasing revenues by increasing Sales volume.
4) To what extent does presence of natural ingredients affect sales
H1: Presence of natural ingredients takes precedence over brand loyalty when a
new product is introduced
H2: Products with natural ingredients sell more in urban areas as compared to
rural areas
H3: Presence of natural ingredients increases Consumer rating for a product
In recent years, there has been increasing awareness about health and lifecycle owing to
large number of media channels and online/social discussion forums. While importance to
hygiene and cleanliness has been given prime importance in all the discussions, there has
been increasing words of caution about styling products that expose hair to harmful effects
of chemicals with regular use. With natural ingredients, this issue is addressed and users
are assured of safety of the product.
Packaging has always been an important driver to drive sales. Customers pick up a new
product on the shop if they find the packaging of the product attractive and informative.
Packaging is the first interaction of customer with the product. Also, for the youth
population, flashy packaging may attract attention and drive Sales as they are relatively
less concerned about product attributes and are more likely to be impulse buyers for such
products.
5) What role does packaging play in product perception
H1: The quantum of product information on packaging is proportional to sales
volume
H2: Increase in the amount spent on packaging per unit increases sales volume
 RP - To determine the effect of promotional campaigns on market penetration
level
Hair gel is not a very high involvement product for which people do a lot background
research before buying. However, people don’t buy it blindly because they fear that a
wrong choice might damage their hair. So traditional belief is that most of the times people
go with peer suggestions or stylist’s advice hair gel to usage and not care so much about
the nitty-gritties of product features or advertisement. However, with increase in
competition in recent years, promotional efforts have a direct influence on sales volume.
Advertisement can have profound effect on the sales of a product. Companies spend
millions in advertisement programmes to catch the eyeballs of the potential customer.
Advertisement can change the customer perception for a product. Advertisements are
primarily used to convey the features a product has to offer. However advertisements are
also used to position a product in the minds of the customer. Companies time and again
have changed the advertisements for a product if they intend to change the positioning the
product. Advertisers try to get people to buy their products, by showing them the good
rather than bad of their products. And that’s why advertisement campaigns are such an
important and high involvement exercise for any product.
1. In spite of being the market leader, why has sales growth for Set Wet Gel declined
in the past years
H1: Consumers don’t buy Set wet because it attracts grime and dust
H2: Consumers don’t buy Set wet because sweat causes set wet to leak onto the
face
H3: Consumers don’t buy Set wet because it doesn’t look natural to observer
H4: Consumers don’t buy Set wet because hair gels are considered old fashioned
H5: Hair Gels causes damage
A tagline is a short text which serves to clarify a thought for or is designed with a form of,
dramatic effect. Companies use tagline to position a product in a particular manner. It is
used as an effective tool to appeal to the customers and connect with them. The idea behind
the concept is to create a memorable dramatic phrase that will sum up the tone and premise
of product or reinforce and strengthen the audience's memory.
2. What effect does the product tag line have on different demographics
H1: Change in taglines affects usage in Pre-teens and teens more than office-goers
H2: Change in taglines affects usage in urban areas to a greater extent as
compared to rural areas
There are gamut of ways in which companies try to reach out to target customers but all
means of communication are not applicable for every product. This is because the target
group for each product is different and therefore the chosen communication media should
be applicable to that target group. For example if the target group is kids then social media
can be preferred or if target group is professionals then print media may be the best way.
It is important to understand that there is no one-size-fits-all policy while choosing the
communication media. Company should clearly identify the target group and then select
either one or combination of two or more communication mediums for its product.
3. Which is the most effective medium of communication among the target
consumers
H1: All consumers can be reached through TV commercials
H2: All consumers can be reached through print media
H3: Radio advertisements increase sales
H4: Social media campaigning increases sales
Celebrities have been used by every company in product category to increase Sales. While
industries like Banking, Insurance etc. requires celebrities who adds trust to the product
with their reputation, convenience products like hair gel requires celebrities who are style
icons and youth ambassadors. In addition adding a “cool” image to the product, they help
in increasing brand loyalty. Also, they help in increasing customer base by attracting the
fan base of the said celebrity. With more efforts towards promotion due to high
competition, choosing the right celebrities for advertisements can serve as a leverage.
4. Use of celebrity for endorsement increases sales
H1: Use of celebrity in advertisements increases trust in the brand
H2: Use of celebrity increase target segment
6 DATA ANALYSIS PLAN
S.N Research Question Hypothesis Q. No.
1 What are the main reasons for
using hair gels?
H1: hair gel is preferred because it
gives a shiny look to hair
H2: People use hair gel because of its
strength of hold
H3 Stylish hair is an important
component of social acceptance at
gatherings and events
Q7
H4: Stylish hair increases appeal to the
opposite gender
H5: Hair gel helps maintain unruly hair
H6: Hair gel nourishes hair
2 How does usage frequency i.e.
rare or frequent affect brand
loyalty
H1: For frequent usage, advertisement
about sales promotion is more
important than brand loyalty
Q14
Q15
H2: For frequent usage, price is more
important as compared to brand loyalty
H3: For rare usage, advertisement
about sales promotion is more
important than brand loyalty
H4: For rare usage, price is more
important than brand loyalty
3 How has entry of competitors
with alternatives to hair gel
affected sales
H1: There are better competitor’s
substitutes like hair wax
Q12
Q13
H2: Set wet quality is lower than
competitor’s product
H3: Competitor’s product is priced at a
lower per unit rate
H4: Competitor’s product occupies
better shelf space and is more readily
visible in stores
4 To what extent does the presence
of natural ingredients affect sales
H1: Presence of natural ingredients
takes precedence over brand loyalty
H2: Products with natural ingredients
sell more in urban areas as compared to
rural areas
Q7
H3: Presence of natural ingredients
increases consumer rating for a product
5 What role does packaging play in
product perception?
H1: The quantum of product
information on packaging is
proportional to sales volume Q8
Q9H2: Increase in the amount spent on
packaging per unit increases sales
volume
6 In spite of being the market
leader why has the growth for set
wet gels reduced in the past years
H1: Consumers don’t buy Set wet
because it attracts grime and dust
Q19
Q20
H2: Consumers don’t buy Set wet
because sweat causes set wet to leak
onto the face
H3: Consumers don’t buy Set wet
because it doesn’t look natural to
observer
H4: Consumers don’t buy Set wet
because hair gels are considered old
fashioned
H5: Hair gel causes damage (i.e. hair
fall and early greying)
7 What effect does tagline have on
different demographics?
H1: Change in taglines affects usage in
Pre-teens and teens more than office-
Goers
Q16H2: Change in taglines affects usage in
urban areas to a greater extent as
compared to rural areas
8 What is the most effective
medium of communication
among target audience?
H1: TV commercials are the most
significant medium of communication
Q21
Q22
H2: All consumers can be reached
through print media
H3: Radio advertisements increase
sales
H4: Social media campaigning
increases sales
9 Use of celebrities for
endorsements increases sales?
H1: Use of celebrity in advertisements
sales increases trust in the brand Q15
Q17
Q18
H2: Use of celebrity increases target
segment
7 HYPOTHESIS ANALYSIS ACCORDING TO QUESTIONNAIRE
7.1.1 For hair gel users
Research question: What are the main reasons for using hair gel?
Hypothesis:
 H1: hair gel is preferred because it gives a shiny look to hair
 H2: People use hair gel because of its strength of hold
 H3 Stylish hair is an important component of social acceptance
 H4: Stylish hair increases appeal to the opposite gender
 H5: Hair gel helps maintain unruly hair
 H6: Hair gel nourishes hair
Response Distribution
Serial
No
Assumption
Tested
Validity Proved by
1
Residuals (errors)
of the regression
line are normally
distributed Valid
2
No or little
multicollinearity
of residuals Valid
d = 2.466 (i.e. 1.5 < d < 2.5)
3
Mean of residuals
(errors) is zero
Valid
Mean of residuals as per Residual Statistics is
zero
4
Homoscedasticity
of variances
along the best fit
line
Valid
 For Multi Linear Regression,
H0: R2
= 0
H1: R2
≠ 0
It is assumed that α = 0.05. As p = 0.000 as per ANOVA table, this leads to rejection
of Null Hypothesis which means that at least one of the factors affects the outcome.
Hence, MLR is a valid test for this Research Question.
 Analysis
Assumption: α = 0.05
H0: β = 0
H1: β ≠
Therefore, “Managing unruly hair” is observed to have the highest effect on the
reasons for using hair gel while “shine” is observed to have the lowest effect.
 Variance Inflation Factor (VIF) <10 for all factors. Therefore, no collinearity is
observed between input variables.
 Regression Equation
For y = α + β1x1 + β2x2 + ….. + βnxn
α, the constant has a significance of 0.205, which is >0.05 and therefore this
constant is not significant (null hypothesis is not rejected).
For the current research question of “Reasons for using Hair Gel”, the equation is
Y = 0.279x1 + 0.232x2 + 0.237x3
Where y = Degree of likeness for using Hair Gel
x1 = Managing unruly hair
x2 = Shine
x3 = Appeal to the opposite gender
Research Question: What role does packaging play in Product perception?
Hypothesis:
 H1: Presence of natural ingredients increases Consumer rating for a product
 H2: The quantum of product information on packaging is proportional to sales
volume
 H3: Increase in the amount spent on packaging per unit increases sales volume
Response Distribution (Aesthetics)
Analysis
Assumption: α = 0.05
H0: µ ≤ 3
H1: µ > 3
(Where µ = mean of user preference for aesthetics on a scale of 1-5, 1 being the
least and 5 being the highest preference)
As significance is p/2 = 0, we reject the null hypothesis. Hence µ > 3.
0.00 1.96
27.45
50.98
19.61
PACKAGING EFFECT ON
AESTHETICS
1 2 3 4 5
Therefore, aesthetics of packaging affects decision to buy hair gel.
Response Distribution (Information on packaging)
Analysis
Assumption: α = 0.05
H0: µ ≥ 3
H1: µ < 3
(Where µ = mean of user disliking for packaging containing long sentences on a
scale of 1-5, 1 being the least and 5 being the highest level of disliking)
As significance is p/2 = 0, we reject the null hypothesis. Hence µ < 3.
Therefore, long sentences in packaging does not bother users much and is not an important
deciding factor while buying hair gel.
Research Question: To what extent does the presence of natural ingredients affect
Sales?
Hypothesis:
H1: Presence of natural ingredients takes precedence over brand loyalty
H2: Products with natural ingredients sell more in urban areas as compared to rural areas
H3: Presence of natural ingredients, in a product by a trusted brand, frequency of usage
41.18
41.18
17.65
0.00 0.00
LONG SENTENCES ARE CUMBERSOME
1 2 3 4 5
Independent Samples t test was used to determine if presence of natural ingredients
increases sales in urban areas to a greater extent as compared to semi urban areas. Here,
Group 1 refers to Semi-Urban and Group 2 refers to urban areas.
o By Levene’s test of equality for Variances,
H0: σ1 = σ2
H1: σ1 ≠ σ2
Significance for this is 0.135 > 0.05 therefore Null Hypothesis cannot be
rejected and hence the variances are equal.
o Following this, t test has the following hypothesis
H0: µ1 = µ2
H1: µ1 ≠ µ2
(Where µ1, µ2 are means of usage data from urban and semi-urban areas
respectively)
Significance is 0.000 < 0.05 therefore Null hypothesis is rejected and means
that natural ingredients affect sales in urban and semi urban areas
differently. Looking at the means, it can be seen that natural ingredients
increase sales in urban area to a greater extent than Semi-Urban areas.
Paired samples test was undertaken to see if natural ingredients play a greater role than
brand loyalty in getting new customers.
H0: µ1-µ2 ≥ 0
H1: µ1 -µ2<0
(Where µ1, µ2 are mean of preference data for natural ingredients and brand loyalty
respectively)
Significance is 0.254 (0.508/2) > 0.05 therefore we fail to reject null hypotheses
and natural ingredients do indeed play a greater role than brand loyalty.
7.1.2 For NON SET WET hair gel users
 Research Question: How has entry of competitors with alternatives to
hair gel affected sales?
Hypothesis:
H1: There are better competitor’s substitutes like hair wax
H2: Set wet quality is lower than competitor’s product
H3: Competitor’s product is priced at a lower per unit rate
H4: Competitor’s product occupies better shelf space and is more readily visible in
stores
Serial
No
Assumption
Tested
Validity Proved by
1
Residuals
(errors) of the
regression
line are
normally
distributed
Valid
2
No or little
multicollinear
ity of
residuals
Valid
d = 1.911 (i.e. 1.5 < d < 2.5)
3
Mean of
residuals
(errors) is zero
Valid
Mean of residuals as per Residual Statistics is
zero
4
Homoscedasti
city of
variances
along the best
fit line Valid
 For Multi Linear Regression,
H0: R2
= 0
H1: R2
≠ 0
It is assumed that α = 0.05. As p/2 = 0.000 as per ANOVA table, this leads to
rejection of Null Hypothesis which means that at least one of the factors affects the
outcome. Hence, MLR is a valid test for this Research Question.
 Analysis
Assumption: α = 0.05
H0: β = 0
H1: β ≠ 0
Therefore, “Low Quality” is observed to have the highest effect on the reasons for
not using Set Wet while “preference for hair wax” is observed to be the second
highest effect.
 Variance Inflation Factor (VIF) <10 for all factors. Therefore, no collinearity is
observed between input variables.
 Regression Equation
For y = α + β1x1 + β2x2 + ….. + βnxn
α, the constant has a significance of 0.410, which is >0.05 and therefore this
constant is not significant (null hypothesis is not rejected).
For the current research question of “Reasons for using Hair Gel other than Set
Wet”, the equation is
Y = 0.631x1 + 0.432x2
Where y = Degree of dislikeness for using Set Wet Hair Gel
x1 = Low Quality
x2 = Preference for hairwax
-------------------------------------------------------------------------------------------------------
7.1.3 For SET WET hair gel users
 Research Question: How has entry of competitors with alternatives to
hair gel affected sales?
Serial
No
Assumption
Tested
Validity Proved by
9.80
23.53
29.41
23.53
13.73
CELEBRITY ENDORSMENTS
1 2 3 4 5
1
Residuals (errors)
of the regression
line are normally
distributed
Valid
2
No or little
multicollinearity
of residuals Valid
d = 2.356 (i.e. 1.5 < d < 2.5)
3
Mean of residuals
(errors) is zero
Valid
Mean of residuals as per Residual Statistics is zero
4
Homoscedasticity
of variances
along the best fit
line
Valid
Scatterplot
 For Multi Linear Regression,
H0: R2
= 0
H1: R2
≠ 0
It is assumed that α = 0.05. As p = .000 as per ANOVA table, this leads to rejection
of Null Hypothesis which means that at least one of the factors affects the outcome.
Hence, MLR is valid test for this Research Question.
 Analysis
Assumption: α = 0.05
H0: β = 0
H1: β ≠ 0
Variance Inflation Factor = <10 for all the factors. Therefore, no collinearity is
observed between input variables.
Therefore, “Advertisement” is observed to have the highest effect on the outcome.
“Low Price” is observed to have the second highest effect on the outcome.
 Regression Equation
For y = α + β1x1 + β2x2 + ….. + βnxn
For the current research question of “Reason for using set wet”, the equation is
Y = 0.529X1 + 0.421x2
Where y = Degree of likeness of Set Wet gel
x1 = Advertisements
x2 = Low price
-------------------------------------------------------------------------------------------------------
 Research Question: What effect does tagline have on different demographics?
Hypothesis:
H1: Change in taglines affect usage in pre-teens and teens more than office goers
H2: Change in taglines affect usage in urban areas to a greater extent than in rural areas
 Independent Samples t test was used to determine if the effect of the Set Wet Hair
Gel tagline ‘Sada Sexy Raho’ was different between urban and semi-urban areas.
(The cities have been classified using The Census of India 2011 – Urban
Agglomeration and Cities) Group 1 is urban and Group 2 is Semi-Urban areas.
o By Levene’s test of equality for Variances,
H0: σ1 = σ2
H1: σ1 ≠ σ2
Significance for this is 0.488 > 0.05 therefore Null Hypothesis cannot be
rejected and hence the variances are equal.
o Following this, t test has the following hypothesis
H0: µ1 = µ2
H1: µ1 ≠ µ2
(Where µ1, µ2= mean value of effect of tagline in urban and semi-urban
area respectively)
Significance is 0.026 < 0.05 therefore Null hypothesis is rejected and means
that effect of tagline in urban and semi-urban areas differs. Looking at the
means, it is evident that taglines affect Semi-Urban areas more.
 To check effect of change in tagline on Teens (Between 13 and 18) and Pre-Teens
(Less than 12) as compared to office goers, ANOVA test was undertaken. Here,
Group 1 is Pre-Teens, Group 2 is Teens and Group 3 is Office Goers.
H0: µ1 = µ2 = µ3
H1: At least one mean is different
(Where µ1, µ2, µ3= mean value of effect of tagline for pre-teens, teens and office
goers respectively)
o Significance is 0.001 < 0.05 therefore null hypotheses is rejected and at
least one of the means is different.
o For Post Hoc tests,
H0: µ1 = µ2
H1: µ1 ≠ µ2
(Where µ1, µ2= mean value of effect of tagline on pre-teens and teens
respectively)
It is seen that we fail to reject Null Hypothesis for Group 1 and 2 therefore
the effect of tagline is the same on Pre-Teens and Teens but they both have
different preferences when compared to Office Goers.
-------------------------------------------------------------------------------------------------------
Research Questions: How does celebrity endorsements affect Sales?
Hypothesis:
 H1: Use of celebrity in advertisements sales increases trust in the brand
 H2: Use of celebrity increases target segment
For testing if the use of Celebrity Endorsements increases the target group, one sample t
test was used. 1 refers to very low influence of celebrity in endorsements while 5 refers to
very high influence.
H0: µ ≤ 3
H1: µ > 3
(Where µ= mean value of preference for celebrity endorsement on a scale of 1-5, I
being the least and 5 being the highest value of preference)
Significance is 0.000 (p/2) < 0.05 therefore Null Hypothesis is rejected and use of
celebrity in endorsements does positively influence buying behavior.
Correlation test was used to find if correlation existed between preference for celebrity
in advertisements and brand loyalty.
H0: µ1 - µ2 ≤ 0
H1: µ1 - µ2 > 0
(Where µ1 = Mean of preference for celebrity in endorsements and µ2= Mean of
brand loyalty, on a scale of 1 to 5 where 1 being very low preference and 5 being
very high preference)
Pearson Correlation of 0.158 is obtained. A value between 0.1 and 0.3 indicates very little
correlation and hence it can be inferred that presence of celebrities in endorsements does
not affect brand value to a large extent.
 Research Question: How does usage frequency affect brand loyalty?
Hypothesis:
H1: For frequent usage, advertisement about sales promotion is more important than brand
loyalty
H2: For frequent usage, price is more important as compared to brand loyalty
H3: For rare usage, advertisement about sales promotion is more important than brand loyalty
H4: For rare usage, price is more important than brand loyalty
 High Frequency Users
o Paired samples test was undertaken to see if advertisements played a greater
role in usage than brand loyalty
H0: µ1 - µ2 ≤ 0
H1: µ1 - µ2 > 0
(Where µ1, µ2 = mean of importance of advertisements and brand loyalty
respectively)
0
5
10
15
20
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
HIGH FREQUENCY VS LOW FREQUENCY
BRAND LOYALTY AND ADVERTISMENTS
Brand Loyalty LF Advertisment LF
Brand Loyalty HF Advertisments HF
0
1
2
3
4
5
6
7
8
9
10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
HIGH FREQUENCY VS LOW FREQUENCY
PRICE
Advertisments LF Advertisments HF
Significance is 0.007(0.014/2) < 0.05 therefore we reject null hypotheses and
advertisements do play a greater role in affecting usage for high frequency users than
brand loyalty.
o Paired samples test was undertaken to see if price played a greater role in
usage than brand loyalty
H0: µ1 - µ2 ≤ 0
H1: µ1 - µ2 > 0
(Where µ1, µ2 = mean of importance of price and brand loyalty respectively)
Significance is 0.000 (p/2) < 0.05 therefore we reject null hypotheses and price does play
a greater role in affecting usage for high frequency users than brand loyalty.
 Low Frequency Users
o Paired samples test was undertaken to see if advertisements played a greater
role in usage than brand loyalty
H0: µ1 - µ2 ≥ 0
H1: µ1 - µ2 < 0
(Where µ1, µ2 = mean of importance of advertisements and brand loyalty
respectively)
Significance is 0.067 (0.134/2) > 0.05 therefore we fail to reject null
hypotheses and advertisements play a greater role in affecting usage for
high frequency users than brand loyalty.
o Paired samples test was undertaken to see if price played a greater role in
usage than brand loyalty
H0: µ1 - µ2 ≥ 0
H1: µ1 - µ2 < 0
(Where µ1, µ2 = mean of importance of price and brand loyalty respectively)
Significance is 0.0035 (0.007/2) < 0.05 therefore we reject null hypotheses and price
does not play a greater role in affecting usage for high frequency users than brand loyalty.
7.1.4 For non-users of hair gel
 Research Question: In site of being the market leader why has the growth for set wet
gels reduced in the past years
Hypothesis:
H1: Consumers don’t buy set wet because it attracts grime and dust
H2: Consumers don’t buy Set wet because sweat causes set wet to leak into the face
H3: Consumer don’t buy Set wet because it doesn’t look natural to observer
H4: Consumers don’t buy Set wet because hair gels are considered old fashioned
H5: Hair Gels causes damage ( i.e. hair fall and early graying)
Serial
No
Assumption
Tested
Validity Proved by
1
Residuals (errors)
of the regression
line are normally
distributed
Valid
7.84
19.61
13.73
19.61
13.73
CAUSES HAIR DAMAGE
1 2 3 4 5
2
No or little
multicollinearity
of residuals
Valid
d = 2.356 (i.e. 1.5 < d < 2.5)
3
Mean of residuals
(errors) is zero
Valid
Mean of residuals as per Residual Statistics is zero
4
Homoscedasticity
of variances
along the best fit
line
Valid
Scatterplot
 For Multi Linear Regression,
H0: R2
= 0
H1: R2
≠ 0
It is assumed that α = 0.05. As p = .000 as per ANOVA table, this leads to rejection
of Null Hypothesis which means that at least one of the factors affects the outcome.
Hence, MLR is valid test for this Research Question.
 Analysis
Assumption: α = 0.05
H0: β = 0
H1: β ≠ 0
Variance Inflation Factor = <10 for all the factors. Therefore, no collinearity is
observed between input variables.
Therefore, “Grime and dust” is observed to have the highest effect on the outcome.
“Damage” is observed to have the lowest effect on the outcome.
 Regression Equation
For y = α + β1x1 + β2x2 + ….. + βnxn
For the current research question of “Reason for not liking Hair gel”, the equation
is
Y = 0.412X1 + 0.324x2 + 0.327x3
Where y = Degree of dislikeness for not using hair gel
x1 = Grime and Dust
x2 = Not Natural looks
x3 = Damage
Promotion strategy for the whole population
 Research Question: What is the most effective medium of communication among
target audience?
 Hypothesis:
H1: TV commercials are the most significant medium of communication
H2: All consumers can be reached through print media
H3: Radio advertisements increase sales
H4: Socal media campaigning increases sales
For the question of preference for mode of media, one Sample T test was used. The
following results were obtained (α=0.05). Here, µ is the mean of all the responses for that
particular media type with 1 being very low preference and 5 being very high preference.
o For Print Media consisting of both newspaper and magazine,
H0: µ ≤ 3
H1: µ > 3
(Where µ= mean value of preference for print media)
o For Radio,
H0: µ ≥ 3
H1: µ < 3
(Where µ= mean value of preference for radio)
o For Television,
H0: µ ≤ 3
H1: µ > 3
(Where µ= mean value of preference for Television)
o For Social Media,
H0: µ ≤ 3
H1: µ > 3
(Where µ= mean value of preference for Social Media)
Mode of Media Significance
Value
Result
Print Media –
Newspaper + Magazine
0.000
Rejecting Null Hypothesis
therefore there is significant
preference of print media for
advertisements
Radio
0.000
Rejecting Null Hypothesis
therefore not much preference
for radio advertisements
Television
0.000
Rejecting Null Hypothesis
therefore there is significant
preference of television for
advertisements
Social Media
0.000
Rejecting Null Hypothesis
therefore there is significant
preference of television for
advertisements
o Within Television and Print Media, correlation test was used.
H0: µ1 - µ2 ≤ 0
H1: µ1 - µ2 > 0
(Where µ1, µ2= mean value of preference for television and print media
respectively, on a scale of 1 to 5 where 1 being very low preference and 5
being very high preference)
Significance is 0.0015 (0.003/2) which is lesser than .05 and hence Null Hypothesis is
rejected therefore preference for advertisement on Television is higher than advertisements
in Print Media.
8 CONCLUSION
Our study initiated with an understanding of the various parameters affecting buying
behavior for different demographics in the Hair Gel user segment. We then attempted to
understand ranking of these parameters and sought to establish the perception as per
customer usage. Effect of peer influence, promotional campaigns and presence of natural
ingredients on both perceived quality and sales was studied. At all times, all primary and
secondary sources of information were evaluated comparatively. The current change in
promotion of Set Wet gel and marketing mix was evaluated from both a theoretical and
consumer perspective. From this, all viewpoints that emerged were noted and have been
used to suggest changes in the marketing and promotional strategy. The Limitation of such
a study is that the quantitative survey focusses on perceived product quality and effect of
promotional campaigns to a greater extent as these factors were found to have the highest
correlation. The insights obtained from our research show that:
 Consumers like to use hair gel for primarily three reasons, managing unruly hair,
the shine it provides and its appeal to the opposite gender. Managing unruly hair
has the highest weightage in this decision, while shine has the lowest.
 The presence of natural ingredients increases sales, more so in urban areas than in
semi-urban areas
 The presence of natural ingredients plays a greater role in the consumers buying
decision as compared to brand loyalty
 The aesthetics of packaging is a significant influence on a consumers decision to
buy hair gel
 Longer sentences on packaging (i.e. more than 10 words) does not bother
consumers, and is not a significant factor in their decision to buy hair gel
 The biggest reason that consumers who do not prefer to use Set Wet is because
they perceive it to be a low quality product. The next biggest reason being that they
prefer hair wax over gel. No other significant factors were detected.
 The biggest reasons that consumers prefer to buy set wet is its advertising. The
second biggest reason being its low price. No other significant factors were
detected.
 For consumers which use hair gel frequently i.e. more than 7 times a week, price
and advertisements play a greater role in their buying decision than brand loyalty.
 For consumers which use hair gel occasionally i.e. less than or equal to 7 times a
week, advertisement plays a greater role in their buying decision than brand loyalty,
while price does not.
 For consumers who do not use hair gel at all, the fact that it attracts grime and dust,
does not look natural and that it causes hair damage are significant factors. Here,
grime and dust is observed to have the highest effect on this decision while hair
damage has the lowest effect.
 People prefer newspapers, magazines, television and social media as their preferred
form of media. The preference for television is higher than for newspapers or
magazines.
 The new tag line for promotion of Set Wet, “Sada Sexy Raho”, affects consumers
in semi-urban areas more than in urban areas.
 The tag line has an equal influence on pre-teens (younger than 13) and teens
(between 13 and 19), but different for young adults (older than 19).
 The use of celebrity endorsements has a positive influence on a consumer’s buying
behaviour, when it comes to hair gel. But there is no evidence that it increases the
trust in a brand.
9 ANNEXURE A (OBJECTIVE OF THE IN-DEPTH INTERVIEW)
Reasons for using (not using) hair gels
Stigmas associated with hair gel usage
Perceived quality of Set Wet gel among all hair gel
brands Shortcomings in ingredients in Set Wet gel
Effect of natural ingredients in perceived quality and
sales Effect of medium of communication on sales
Effect of social media campaigns on target consumers
1. Screening Question on gender
2. Awareness of: information, age, profession, economic strata
3. Behaviour with regards to hair gel to hair, gel brand loyalty, frequency of
usage, reasons for usage, reason for non usage
4. Product perception Harmful effects, presence if natural ingredients, ranking of
various qualities
5. Effect of promotion, medium of promotion, social media campaign
9 ANNEXURE B (SAMPLE QUESTIONNAIRE)
1) Please fill up the following details.
Age: ________________ Profession-
Home Town: ________________ a. School student
b. Undergraduate Student
c. PG Student
d. Working professional. Please specify
e. Others, please specify: __________________
2) Which of the following do you buy? Please tick all the applicable items
Shampoo Facewash Deodorant
Conditioner Face Cream Perfume
Hair Oil Moisturizer Sunscreen
Hair Gel Soap Aftershave
Serums Shower Gel Others, please specify: _________
3) Do you use Hair Gel?
a. Yes b. No
-----------------------(Use hair Gel) ----------------------------
4) At what age did you first start using Hair Gel?
a. Below 15
b. 15-20
c. 20-22
d. 22-25
e. Above 25
5) How you were first introduced to Hair Gel?
a. Advertisement
b. Peers
c. Impulse buy at the store/ Supermarket
d. Others, Please Specify: __________________
6) If you do use hair gel, please indicate (tick) below your preferred brand(s).
a. Brylcream d. Set Wet g. Park Avenue
b. L’Oreal e. Himalaya h. Garnier
c. Parachute f. Gatsby i. Other, please specify: _____________
7) If you answered yes to the above question, please rate the following factors for your reasons
of usage
a. Hair styling for special occasions
Very Low Low Neutral High Very High
b. Managing unruly hair
Very Low Low Neutral High Very High
c. Hair Nourishment
Very Low Low Neutral High Very High
d. Strength of Hold
Very Low Low Neutral High Very High
e. Presence of natural ingredients
Very Low Low Neutral High Very High
f. Shine
Very Low Low Neutral High Very High
g. Appeal to opposite gender
Very Low Low Neutral High Very High
h. Other, please specify: __________________
8) Please rate how strongly does the aesthetics of packaging affects your decision to
buy hair gel?
No effect Little Effect Neutral Strong Very Strong
9) “I find reading packaging cumbersome and tend to avoid reading it, especially if it is longer than
ten words” ” Please indicate how strongly you agree with the statement above –
Strongly Disagree Disagree Can’t say Agree Strongly Agree
10) Please rate how much you prefer using Hair Gel
Very Low Low Neutral High Very High
11) In the last 6 months have you used a hair gel other than Set wet?
a. Yes
b. No
--------- IF ANSWER TO ABOVE QUESTION IS YES (Use hair gel but not set wet) -------------
12) If yes, then Rate the reasons for usage of other hair gel
a. Set wet quality is lower than the brand you are using
Strongly Disagree Disagree Neutral Agree Strongly Agree
b. Set wet is more expensive than the brand you are using
Strongly Disagree Disagree Neutral Agree Strongly Agree
c. You prefer hair wax over hair gel
Strongly Disagree Disagree Neutral Agree Strongly Agree
d. You find other hair gels more often in retail stores than set wet
Strongly Disagree Disagree Neutral Agree Strongly Agree
13) Please rate how much you dislike Set Wet Hair Gel
Very Low Low Neutral High Very High
--------------------------------------- (Use hair gel use set wet) --------------------------------
14) In a typical week, how frequently do you use set wet?
a. 0-2 d. 8-10
b. 3-5 e. Greater than 10
c. 5-7
15) Please rate the importance of the following attributes for using set wet hair gel
a.Brand Loyalty
Very Low Low Neutral High
Very
High
b. Advertisement (Frequency / medium / use of celebrity endorsement)
Very Low Low Neutral High
Very
High
c. Low Price
Very Low Low Neutral High
Very
High
d. Other, please specify: __________________
16) How much does Set Wet’s new tagline “Sada Sexy Raho” influence your preference for set
wet hair gel?
No effect Little Effect Neutral Strong Very Strong
17) Does the presence of known celebrity endorsement induce you to change your preferred brand
while purchasing the hair gel?
Very Low Low Neutral High Very High
18) Please rate the degree of your preference for Set Wet Hair Gel
Very Low Low Neutral High Very High
----------------------------------- (Don’t Use hair gel) -------------------------------------
19) If you do not use hair gel, please rate the following factors as per your reasons.
a) It attracts grime and dust
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
b) Sweat causes set wet to leak onto the face
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
c) It doesn’t look natural to an observer
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
d) Hair gels are considered old fashioned
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
e) Hair gels cause hair damage by way of hair fall and early greying
Strongly
Disagree Disagree Neutral Agree
Strongly
Agree
f) Others, please specify: __________________
20) Please rate the degree of your dislikeness for not using Hair Gel
Very Low Low Neutral High Very High
21) Please indicate your preference for the following mode of media.
Television
Very Low Low Neutral High Very High
Radio
Very Low Low Neutral High Very High
Print Media
Very Low Low Neutral High Very High
22) “I usually buy products after having seen advertisements on social media platforms”. Please
indicate below how strongly you agree with the statement above.
Strongly Disagree Disagree Can’t say Agree Strongly Agree

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Strategy to Revive Marico's Set Wet sales

  • 1.
  • 2. TABLE OF CONTENTS 1 EXECUTIVE SUMMARY.....................................................................................................2 2 INTRODUCTION...................................................................................................................3 2.1.1 BACKGROUND .........................................................................................................3 3 RESEARCH FRAMEWORK.................................................................................................4 3.1.1 RESEARCH PROPOSAL .............................................................................................4 3.1.2 RESEARCH DESIGN...................................................................................................4 3.1.3 RESEARCH PROBLEM – 1.........................................................................................4 3.1.4 RESEARCH QUESTIONS –1.......................................................................................4 3.1.5 RESEARCH PROBLEM - 2..........................................................................................5 3.1.6 RESEARCH QUESTIONS -2........................................................................................5 4 RESEARCH METHODOLOGIES.........................................................................................5 4.1.1 LITERATURE SURVEY ...............................................................................................5 4.1.2 SWOT ANALYSIS ......................................................................................................7 4.1.3 QUALITATIVE RESEARCH .........................................................................................8 4.1.4 Key Findings from Qualitative Research: ................................................................9 4.1.5 Root causes for declining Sales growth:..................................................................9 5 RESEARCH HYPOTHESES DEVELOPMENT.................................................................10 5.1.1 RESEARCH HYPOTHESES DEVELOPMENT..............................................................10 6 DATA ANALYSIS PLAN ...................................................................................................16 7 Hypothesis Analysis according to Questionnaire..................................................................19 7.1.1 For hair gel users...................................................................................................19 7.1.2 For NON SET WET hair gel users ...........................................................................26 7.1.3 For SET WET hair gel users....................................................................................29 7.1.4 For non-users of hair gel .......................................................................................39 8 CONCLUSION.....................................................................................................................46 9 ANNEXURE A (OBJECTIVE OF THE IN-DEPTH INTERVIEW)..............................48
  • 3. 1 EXECUTIVE SUMMARY Aim: Even as the Men’s Personal Care segment has grown in India in both sales and product line, Marico noticed that the annual growth of its Youth Segment product portfolio was slowing down to 6% as compared to the 14%-15% growth it enjoyed in 2009. This slowdown has been primarily attributed to entry of competitor’s in the Hair Gel segment, a forerunner for Marico with its Set Wet product line. Through this study, we aim to understand the reason for such a slowdown and, using consumer perception’s, establish change parameters. Research Methodology: Explorative research was initially undertaken through personal, indepth interviews conducted in Jamshedpur. There results were then collaborated with Secondary Data obtained through Euromonitor reports and Marico press releases. To quantify this, and effectively begin change control mechanisms, a quantitative survey was undertaken among all target groups established through the interview. From the major parameters that emerged, the ones with maximum correlation were used further and a data analysis plan emerged. It should be noted that the survey was mainly focussed on target and converted users. Conclusion: By the end of this study, we aim to provide Marico with an in depth analysis of the reasons for a growth slowdown in Set Wet gel sales and what parameters can be modified to restore normalcy
  • 4. 2 INTRODUCTION 2.1.1 BACKGROUND According to the Euromonitor Report titled “Men’s Grooming in India”, the segment registered a growth of 15% in 2014, to reach INR 53.6 billion. Although this was primarily led by urban consumer demand, a category expansion was seen into Bath and Shower products along with Skin Care, much beyond the regular Shaving products. During the forecast period of 014-19, it is predicted that a total (CAGR) increase of 10% would be observed over 2014 prices. It was seen that men in India today—and especially those who fall in the age group of 18 to 25— spent more money on grooming and personal care products than women. 85% men preferred to buy their own products and did not rely on the women in the household to help them. 75% of the men reported their branded cosmetic consumption to have gone up by about 65% in last ten years. The report, “Indian Hair Care Market Forecast to 2015”, says that the increasing desire to look presentable and stylish is driving the markets. The Indian Hair Care market is derived by analyzing and studying its sub-segments including: hair oil, shampoo, conditioners, hair color and gel. The reasons for this ranged from Professional Image building increased emphasis on personal grooming and not just sex appeal, product innovation, expanding middle Class to endorsements by celebrities and sports stars Among all other categories, the Hair Care segment registered the highest growth – 21% in terms of 2015 value terms.
  • 5. It was mainly driven by market expansion, led by Marico and Emami, to men using styling gels at an age earlier than ever before – 15 years. 3 RESEARCH FRAMEWORK 3.1.1 RESEARCH PROPOSAL In 2014, Marico represented the fifth largest share of companies in India by % value – it stood at 5%, down from 5.6% and 5.4% in 2012 and 2013 respectively. Of this, Set Wet Gel contributed 3.8%, 4.2% and 4.3% respectively over 2015, 2014 and 2013. Marico’s Youth portfolio, consisting of Serums and Hair Gels, was 44% in terms of portfolio share for the quarter ended March in 2015. According to AC Nielsen study, Value of SET wet hair gel was 53cr in 2012, 73cr in 2013 but declined to 72cr in 2014 and sales growth declining since then. Thus our Management Decision Problem (MDP) for this study is “Should Marico invest to revive Set Wet Gel sales growth?” 3.1.2 RESEARCH DESIGN The Marketing Dictionary of Rona Ostrow and Sweetman R. Smith describes lifestyle as "a distinctive mode of behaviour centred around activities, interests, opinions, attitudes and demographic characteristics distinguishing one segment of a population from another”. Lifestyle marketing involves segmentation of the market on the basis of lifestyle dimensions, positioning the product such that it appeals to the interests, activities and opinions of the target customers and doing promotional campaigns such that it exploits lifestyle appeals to create value to the product offered. We started through Exploratory Research where we did in-depth interviews and qualitative research to comprehend the problem situations confronting researchers. We were able to list down various factors affecting customer perception of the product and effect of promotional campaigns on its sales. After that we will be doing Conclusive research that involves data collection and analysis to obtain cause and effect relationships between the variables which will help us in decision making. 3.1.3 RESEARCH PROBLEM – 1 1. To determine the current perception of Set Wet Gel in the mind of the consumer 3.1.4 RESEARCH QUESTIONS –1 a) What are the main reasons for using hair gel? 1) How important is peer influence on selection of brands (Rate among all factors)? 2) How does usage frequency i.e. Regular, Occasional and Rare affect brand determination (Rate among all factors)?
  • 6. b) How has entry of competitors with alternatives to hair gel affected sales? c) Do hair gels have a negative perception among the youth with regards to hair damage? d) To what extent does presence of natural ingredients influence customer perception and affect sales? e) How significant is packaging’s role in product perception? 3.1.5 RESEARCH PROBLEM - 2 2. To determine the effect of promotional campaigns on market penetration level 3.1.6 RESEARCH QUESTIONS -2 a) In spite of being the market leader, why has sales growth for Set Wet Gel declined in the past years? b) What effect does the product tag line have on different demographics? c) To what extent does advertisement (or change thereof) affect sales? d) Which is the most effective medium of communication among the target consumers? 4 RESEARCH METHODOLOGIES 4.1.1 LITERATURE SURVEY Howard and Sheth buying behavior model was proposed in the 1960s to explain buyer rationality while making purchase decisions even in conditions of incomplete information. The model focuses on repeat buying/purchase. According to this model we categorize our factors into four major components, viz., stimulus inputs (input variables), hypothetical constructs, response outputs (output variables), and, exogenous variables. a) Stimulus inputs (Input variables): The input variables refer to the stimuli in the environment. They take the form of informative cues about the product/service offering; these information cues could relate to quality, price, distinctiveness, service and availability. The informational cues could be Significative, Symbolic, and Social. All these three types of stimuli provide inputs concerning the product/brand to a consumer. Significative stimuli refers to the product/brand information that the marketer provides. It deals essentially with the brand characteristics. Symbolic stimuli refer to the psychological form with which a buyer perceives the product and service offering. It is figurative and perceptual and depends on how the offering has been positioned. It emanates from advertising and promotion efforts. Social stimuli refer to the information about the product or service
  • 7. offering that comes from the social environment viz. family, groups, society and culture at large. b) Hypothetical constructs: Howard and Sheth classified the hypothetical constructs into two major groups, viz., perceptual constructs and learning constructs. These constitute the central part of the model and deal with the psychological variables which operate when the consumer is undergoing the decision making process. c) Perceptual constructs: The perceptual constructs deal with how a consumer obtains and processes information received from the input variables. Once the buyer is exposed to any information, there is an attention. This attention towards the stimuli depends on the buyers’ sensitivity to information in terms of his urge and receptivity towards such information. Not all information would be processed and the intake of information is subject to perceived uncertainty and lack of meaningfulness of information; this is referred to as stimulus ambiguity. This reflects the degree to which the buyer regulates the stimulus information flow. Stimulus ambiguity occurs when a consumer does not understand the message from the environment; it could trigger off a need for a specific and active search for information and thus lead to an overt search for information. The information that is gathered and processed may suffer from perceptual bias if the consumer distorts the information received so as to fit his/her established needs/beliefs/values/experiences etc. - Learning constructs: The learning constructs relate to buyer learning, formation of attitudes and opinions, and the final decision. The learning constructs are seven in number, and range from a buyer’s motive for a purchase to the final satisfaction from a purchase; the interplay of these constructs ultimately leads to a response output or a purchase. The motives refer to the goals that a buyer seeks to achieve through a purchase and the corresponding urge towards action or the purchase activity. The brand comprehension is the knowledge and information that the buyer has about the various brands in his evoked set. The buyer forms an order of preference for the various brands; this order of preference is based on the choice criteria (decision mediators). The decision mediators are the evaluative criteria and the application of decisions rules by the buyer to the various purchase alternatives. Based on the choice criteria, the attitudes are formed for the varying brands. The attitudes reflect the predisposition of the buyer; preference toward alternative brands; and, feelings of like/dislike towards the offerings. The brand potential of the evoked set determines the buyer's perception and confidence level of the brands that he is considering to purchase. The purchase intention is a cumulative outcome of the interaction of buyer motives, choice criteria, brand comprehension, resultant brand attitude and the
  • 8. confidence associated with the purchase. Satisfaction, another learning construct, involves the post purchase evaluation (whether expectation from an offering matches the performance) and resultant impact (positive/negative) on brand comprehension. c) Response outputs (output variables): The output variables refer to the buyer’s action or response to stimulus inputs. According to Howard and Sheth, the response outputs comprise five constituents, viz., attention, comprehension, attitude, intention and purchase. These could be arranged in a hierarchy, starting from attention and ending up with purchase. - Attention refers to the degree or level of information that a buyer accepts when exposed to a stimulus. It reflects the magnitude of the buyer's information intake. - Comprehension is the amount of information that he actually processes and stores; here, it refers to brand comprehension which is buyers’ knowledge about the product/service category and brand. - The attitude is the composite of cognition, affect and behavior towards the offering; the attitude reflects his evaluation of the brand and the like/dislike based on the brand potential. - Intention refers to the buyer’s intention to buy or not to buy a particular offering. - Purchase behavior refers to the actual act of buying. The purchase behavior is a cumulative result of the other four constituents. d) Exogenous variables: The Howard and Sheth model also comprises certain constant exogenous variables that influence some or all of the constructs explained above, and thereby impact the final output variables. These are explained as Inhibitors or environmental forces that restrain the purchase of a favored brand; eg., importance of the purchase, price, financial status of the buyer, time at the disposal of the buyer, personality traits, social pressures etc. 4.1.2 SWOT ANALYSIS Strengths Has a strong brand name and presence in India Effective advertising and branding targeting the youth Good distributions, promotions and campaign for luring customers Also provides a grooming range with deodorant to push sales Popular TV campaigns and print ads aligned for the youth Weaknesses Only an urban market phenomenon High pricing reduces the target market Controversial advertisement often leads to legal issues Opportunities Limited edition fragrances Tie up with hotel chains and gyms Increase market share by tapping into demographics Couple with other Marico products Threats Deodorants sales are seasonal and maximize in summer months Competition from premium hair wax competitors like Hair Wax
  • 9. 4.1.3 QUALITATIVE RESEARCH Qualitative research technique aims at understanding people. As our problem statement deals with declining sales growth rate of the leading hair gel brand in India, we need to understand the usefulness of the brand as perceived by the consumers. We primarily focused on secondary data sources and in-depth interviews as research methodology. For in-depth interview, sampling was done from a population consisting of people of Jamshedpur. The selection criteria for sampling has been explained in further segments. Next step involved identifying variables based on research questions. The key variables identified have been tabulated below: Variable Parameters Purchase Intent Professional Image building, Grooming, Styling, Social Events, Keeping hair in place and acceptance among peers Peer Influence Source of information, Need for acceptance Frequency of Use Daily occasions and Social Gatherings Personality of Buyer Pre-University Teens, Graduate Students, Young Professionals Product Attribute Ingredients – Natural and Artificial, Pricing, Ease of Use, Strength (Frequency of Application) Industry Attributes Brand image of Product, Brand image of competitors, Industry growth rate Packaging and Tagline Positioning, Demographics Source of Information Advertisements, Peers, Online Forums, Expert opinion through magazines, Salons Advertisement Target Group, Brand Positioning Following the in depth interview, a questionnaire was developed based on the qualitative research findings. The findings from the in-depth interview was compared with secondary data collected to refine the questionnaire. This questionnaire has been attached in the appendix. The key findings from these interviews is discussed in detail in the next section. 4.2.1 In-depth Interview
  • 10. Sample 1 – Young working Male Meeting point – CCD, Brubeck, and popular hangout places in Jamshedpur Sample 2 – Cousins studying in undergrad colleges Meeting point – Virtual, through phone and internet Sample 3 – ex-colleagues Meeting point – Virtual, through phone and internet Sample 4 – Classmates at XLRI Meeting point – XLRI The subjects fit into following 3 types: 1. Type 1 – pre university/ late teens (15-20 Years) 2. Type 2 – young professionals (20-22 years) 3. Type 3 – Graduate students (22-25 years) 4.1.4 Key Findings from Qualitative Research: Need States: Need states Attribute Daily Usage All three types are looking for products that give a natural look and can be used daily Regular Formal Usage Most sought after quality in hair gel by Type 2 users, ‘Classy’ instead of ‘Sexy’ Occasional Usage Mostly styling needs, Can be introduced as a stronger variety of the same product 4.1.5 Root causes for declining Sales growth: 1. 90’s Image of Hair Gel – Hair gel is perceived to be used for extensive styling of hair and the slick-back look, whereas the audience has matured and is looking for an advanced, classy product
  • 11. 2. Perception that Gel is Harmful to the Hair – Belief that gels contain chemicals, make the hair brittle and cause hair fall. None of the beliefs are substantiated by actual data or evidence, propagated by peer groups. Tendency to blame any adverse hair condition on styling products. So they tend to stick to products like shampoos and conditioners 3. Technical Problems – Gelled hair tends to attract grime and dust because of its stickiness. Sticky texture not suitable for Indian weather because heat and sweat causes the product to leak onto the face 4. In-Your-Face Look – Gel is very evident and noticeable. It doesn’t look natural and any third person can tell that gel has been used which makes the user look like he’s trying too hard. Users want a product that’s more understated yet fulfils their styling needs 5. Alternatives Recommended by Primary Reference Groups – Increasingly, stylists are dissuading customers from using gels and are steering them towards products like hair wax. Stylists are primary influencers when it comes to hair care and users are quick to change their styling routines on the advice of stylists 5 RESEARCH HYPOTHESES DEVELOPMENT 5.1.1 RESEARCH HYPOTHESES DEVELOPMENT  “MDP – Should Marico invest to revive Set Wet Gel sales growth?” Research suggests that customers go through a five-stage decision-making process in any purchase. This is summarized in the diagram below Need Recognition and Problem Awareness Information Search Evaluation of Alternatives Purchase Post Purchase Evaluation The Early starters among the Type 2 and Type 3 interviewees stated being influenced by the sleek ads for hair gel in their teenage years. The need to look ‘Cool’ via flashy hair gels and trendy hair styles is what initiated gel usage for them. Interestingly, current teenagers are looking for hair styling options that are quite different – Healthy products that give a soft hold and sober style
  • 12. The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. For example, a customer buying a favourite product would recognise the need and go right to the purchase decision, skipping information search and evaluation. However, the model is very useful when it comes to understanding any purchase that requires some thought and deliberation. The buying process starts with need recognition. At this stage, the buyer recognises a problem or need or responds to a marketing stimulus. An "aroused" customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins. A customer can obtain information from several sources: Personal sources: family, friends, neighbours etc Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale displays Public sources: newspapers, radio, television, consumer organisations; specialist magazines Experiential sources: handling, examining, using the product The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customers value and respect personal sources more than commercial sources (the influence of "word of mouth"). The challenge for the marketing team is to identify which information sources are most influential in their target markets. In the evaluation stage, the customer must choose between the alternative brands, products and services. How does the customer use the information obtained? An important determinant of the extent of evaluation is whether the customer feels "involved" in the product. By involvement, we mean the degree of perceived relevance and personal importance that accompanies the choice. Where a purchase is "highly involving", the customer is likely to carry out extensive evaluation. Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in the supermarket) have very simple evaluation processes.
  • 13. Post-purchase evaluation - Cognitive Dissonance The final stage is the post-purchase evaluation of the decision. It is common for customers to experience concerns after making a purchase decision. This arises from a concept that is known as "cognitive dissonance". The customer, having bought a product, may feel that an alternative would have been preferable. In these circumstances that customer will not repurchase immediately, but is likely to switch brands next time. To manage the post-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision. Customer seeks to utilize maximum features of the products. In case of Set Wet gel, the consumer links him to features accentuated by the Set Wet marketing team. The usage conditions and materials used along with the associated risks can be some of the limiting factors. These factors inhibit the manner in which consumers seek to derive benefits. Thus we have hypothesized that the pertaining properties of Gel are the most important inhibiting factors and the ingredients, advertising and packaging are important promoting factors.  “RP – To determine the current perception of Set Wet Gel in the mind of the consumer” For developing our research Hypothesis, we need to understand the factors behind any decision making process. In case of hair gel, the main decision triggers can be styling, need for social acceptance, peer influence. In some of the cases, maintaining unruly hair and using hair gel as a protective coating for hair has also been seen. In most cases, it is a five stage decision making process (Kotler, Keller, Koshy and Jha, 2008). 1) What are the main reasons for using hair gel? H1: Hair gel is preferred because H2: Stylish hair is an important component of social acceptance at gatherings and events H3: Stylish hair increases appeal to the opposite gender H4: Hair gel helps maintain unruly hair H5: People use hair gel because of its strength of hold H6: Hair gel nourishes hair
  • 14. Frequency of use is a function of type of users (demographics), occasion (need based) and psychological factors (trade-off between usefulness and perceived damage to hair, uncertainty and other related factors (Hansen, 1976)). Like any other convenience product, product pricing and promotion play a major role as compared to product quality. As the frequency of use increases, brand loyalty becomes important, keeping other variables like price constant. 2) How does usage frequency i.e. Regular, Occasional and Rare affect brand determination H1: For frequent usage, advertisement about sales promotions and discounts are more important than brand loyalty H2: For frequent usage, price is more important than quality H3: For rare usage, advertisement about sales promotions and discounts are more important than brand loyalty H4: For rare usage, price is more important than quality In addition to finding the purchase intent, our research hypothesis is developed keeping in mind external variables like competitors that affect consumer buying behaviour. There has been introduction of various competing brands as well as alternatives of hair gel, like hair wax, in the market. With increasing awareness generated through promotional channels, consumers are making more informed decisions while making purchase decisions. 3) How has entry of competitors with alternatives to hair gel affected sales H1: Better substitutes like hair wax H2: Set wet quality is lower than competitors’ products H3: Competitor’s product is priced at a lower per unit rate H4: Competitor’s product occupies better shelf space and is more readily visible in stores Unlike shampoos and conditioners that are a basic necessity for maintaining cleanliness and hygiene, hair gels are perceived as styling products. In addition to exposing hair to various harmful chemicals, they also attract dust and pollution due to their sticky nature. Introduction of non-sticky variants may go a long way in addressing these issues. Also, hair gels might be considered by some as potent causes of hair falls. All these factors can lead to decreasing Sales even for the leading brand in the market.
  • 15. Presence of natural ingredients not only reduces the perceived negative consequences of sing hair gel, but it also helps in promoting the product as something that can improve the quality of hair. Thus, it addresses the safety concerns as well as provides added benefits. These factors can play a crucial role in the urban/high income group consumers, which will eventually lead to increasing revenues by increasing Sales volume. 4) To what extent does presence of natural ingredients affect sales H1: Presence of natural ingredients takes precedence over brand loyalty when a new product is introduced H2: Products with natural ingredients sell more in urban areas as compared to rural areas H3: Presence of natural ingredients increases Consumer rating for a product In recent years, there has been increasing awareness about health and lifecycle owing to large number of media channels and online/social discussion forums. While importance to hygiene and cleanliness has been given prime importance in all the discussions, there has been increasing words of caution about styling products that expose hair to harmful effects of chemicals with regular use. With natural ingredients, this issue is addressed and users are assured of safety of the product. Packaging has always been an important driver to drive sales. Customers pick up a new product on the shop if they find the packaging of the product attractive and informative. Packaging is the first interaction of customer with the product. Also, for the youth population, flashy packaging may attract attention and drive Sales as they are relatively less concerned about product attributes and are more likely to be impulse buyers for such products. 5) What role does packaging play in product perception H1: The quantum of product information on packaging is proportional to sales volume H2: Increase in the amount spent on packaging per unit increases sales volume  RP - To determine the effect of promotional campaigns on market penetration level
  • 16. Hair gel is not a very high involvement product for which people do a lot background research before buying. However, people don’t buy it blindly because they fear that a wrong choice might damage their hair. So traditional belief is that most of the times people go with peer suggestions or stylist’s advice hair gel to usage and not care so much about the nitty-gritties of product features or advertisement. However, with increase in competition in recent years, promotional efforts have a direct influence on sales volume. Advertisement can have profound effect on the sales of a product. Companies spend millions in advertisement programmes to catch the eyeballs of the potential customer. Advertisement can change the customer perception for a product. Advertisements are primarily used to convey the features a product has to offer. However advertisements are also used to position a product in the minds of the customer. Companies time and again have changed the advertisements for a product if they intend to change the positioning the product. Advertisers try to get people to buy their products, by showing them the good rather than bad of their products. And that’s why advertisement campaigns are such an important and high involvement exercise for any product. 1. In spite of being the market leader, why has sales growth for Set Wet Gel declined in the past years H1: Consumers don’t buy Set wet because it attracts grime and dust H2: Consumers don’t buy Set wet because sweat causes set wet to leak onto the face H3: Consumers don’t buy Set wet because it doesn’t look natural to observer H4: Consumers don’t buy Set wet because hair gels are considered old fashioned H5: Hair Gels causes damage A tagline is a short text which serves to clarify a thought for or is designed with a form of, dramatic effect. Companies use tagline to position a product in a particular manner. It is used as an effective tool to appeal to the customers and connect with them. The idea behind the concept is to create a memorable dramatic phrase that will sum up the tone and premise of product or reinforce and strengthen the audience's memory. 2. What effect does the product tag line have on different demographics H1: Change in taglines affects usage in Pre-teens and teens more than office-goers H2: Change in taglines affects usage in urban areas to a greater extent as compared to rural areas
  • 17. There are gamut of ways in which companies try to reach out to target customers but all means of communication are not applicable for every product. This is because the target group for each product is different and therefore the chosen communication media should be applicable to that target group. For example if the target group is kids then social media can be preferred or if target group is professionals then print media may be the best way. It is important to understand that there is no one-size-fits-all policy while choosing the communication media. Company should clearly identify the target group and then select either one or combination of two or more communication mediums for its product. 3. Which is the most effective medium of communication among the target consumers H1: All consumers can be reached through TV commercials H2: All consumers can be reached through print media H3: Radio advertisements increase sales H4: Social media campaigning increases sales Celebrities have been used by every company in product category to increase Sales. While industries like Banking, Insurance etc. requires celebrities who adds trust to the product with their reputation, convenience products like hair gel requires celebrities who are style icons and youth ambassadors. In addition adding a “cool” image to the product, they help in increasing brand loyalty. Also, they help in increasing customer base by attracting the fan base of the said celebrity. With more efforts towards promotion due to high competition, choosing the right celebrities for advertisements can serve as a leverage. 4. Use of celebrity for endorsement increases sales H1: Use of celebrity in advertisements increases trust in the brand H2: Use of celebrity increase target segment 6 DATA ANALYSIS PLAN S.N Research Question Hypothesis Q. No. 1 What are the main reasons for using hair gels? H1: hair gel is preferred because it gives a shiny look to hair H2: People use hair gel because of its strength of hold
  • 18. H3 Stylish hair is an important component of social acceptance at gatherings and events Q7 H4: Stylish hair increases appeal to the opposite gender H5: Hair gel helps maintain unruly hair H6: Hair gel nourishes hair 2 How does usage frequency i.e. rare or frequent affect brand loyalty H1: For frequent usage, advertisement about sales promotion is more important than brand loyalty Q14 Q15 H2: For frequent usage, price is more important as compared to brand loyalty H3: For rare usage, advertisement about sales promotion is more important than brand loyalty H4: For rare usage, price is more important than brand loyalty 3 How has entry of competitors with alternatives to hair gel affected sales H1: There are better competitor’s substitutes like hair wax Q12 Q13 H2: Set wet quality is lower than competitor’s product H3: Competitor’s product is priced at a lower per unit rate H4: Competitor’s product occupies better shelf space and is more readily visible in stores 4 To what extent does the presence of natural ingredients affect sales H1: Presence of natural ingredients takes precedence over brand loyalty
  • 19. H2: Products with natural ingredients sell more in urban areas as compared to rural areas Q7 H3: Presence of natural ingredients increases consumer rating for a product 5 What role does packaging play in product perception? H1: The quantum of product information on packaging is proportional to sales volume Q8 Q9H2: Increase in the amount spent on packaging per unit increases sales volume 6 In spite of being the market leader why has the growth for set wet gels reduced in the past years H1: Consumers don’t buy Set wet because it attracts grime and dust Q19 Q20 H2: Consumers don’t buy Set wet because sweat causes set wet to leak onto the face H3: Consumers don’t buy Set wet because it doesn’t look natural to observer H4: Consumers don’t buy Set wet because hair gels are considered old fashioned H5: Hair gel causes damage (i.e. hair fall and early greying) 7 What effect does tagline have on different demographics? H1: Change in taglines affects usage in Pre-teens and teens more than office- Goers Q16H2: Change in taglines affects usage in urban areas to a greater extent as compared to rural areas
  • 20. 8 What is the most effective medium of communication among target audience? H1: TV commercials are the most significant medium of communication Q21 Q22 H2: All consumers can be reached through print media H3: Radio advertisements increase sales H4: Social media campaigning increases sales 9 Use of celebrities for endorsements increases sales? H1: Use of celebrity in advertisements sales increases trust in the brand Q15 Q17 Q18 H2: Use of celebrity increases target segment 7 HYPOTHESIS ANALYSIS ACCORDING TO QUESTIONNAIRE 7.1.1 For hair gel users Research question: What are the main reasons for using hair gel? Hypothesis:  H1: hair gel is preferred because it gives a shiny look to hair  H2: People use hair gel because of its strength of hold  H3 Stylish hair is an important component of social acceptance  H4: Stylish hair increases appeal to the opposite gender  H5: Hair gel helps maintain unruly hair  H6: Hair gel nourishes hair Response Distribution
  • 21.
  • 22. Serial No Assumption Tested Validity Proved by 1 Residuals (errors) of the regression line are normally distributed Valid 2 No or little multicollinearity of residuals Valid d = 2.466 (i.e. 1.5 < d < 2.5) 3 Mean of residuals (errors) is zero Valid Mean of residuals as per Residual Statistics is zero 4 Homoscedasticity of variances along the best fit line Valid  For Multi Linear Regression, H0: R2 = 0 H1: R2 ≠ 0
  • 23. It is assumed that α = 0.05. As p = 0.000 as per ANOVA table, this leads to rejection of Null Hypothesis which means that at least one of the factors affects the outcome. Hence, MLR is a valid test for this Research Question.  Analysis Assumption: α = 0.05 H0: β = 0 H1: β ≠ Therefore, “Managing unruly hair” is observed to have the highest effect on the reasons for using hair gel while “shine” is observed to have the lowest effect.  Variance Inflation Factor (VIF) <10 for all factors. Therefore, no collinearity is observed between input variables.  Regression Equation For y = α + β1x1 + β2x2 + ….. + βnxn α, the constant has a significance of 0.205, which is >0.05 and therefore this constant is not significant (null hypothesis is not rejected). For the current research question of “Reasons for using Hair Gel”, the equation is
  • 24. Y = 0.279x1 + 0.232x2 + 0.237x3 Where y = Degree of likeness for using Hair Gel x1 = Managing unruly hair x2 = Shine x3 = Appeal to the opposite gender Research Question: What role does packaging play in Product perception? Hypothesis:  H1: Presence of natural ingredients increases Consumer rating for a product  H2: The quantum of product information on packaging is proportional to sales volume  H3: Increase in the amount spent on packaging per unit increases sales volume Response Distribution (Aesthetics) Analysis Assumption: α = 0.05 H0: µ ≤ 3 H1: µ > 3 (Where µ = mean of user preference for aesthetics on a scale of 1-5, 1 being the least and 5 being the highest preference) As significance is p/2 = 0, we reject the null hypothesis. Hence µ > 3. 0.00 1.96 27.45 50.98 19.61 PACKAGING EFFECT ON AESTHETICS 1 2 3 4 5
  • 25. Therefore, aesthetics of packaging affects decision to buy hair gel. Response Distribution (Information on packaging) Analysis Assumption: α = 0.05 H0: µ ≥ 3 H1: µ < 3 (Where µ = mean of user disliking for packaging containing long sentences on a scale of 1-5, 1 being the least and 5 being the highest level of disliking) As significance is p/2 = 0, we reject the null hypothesis. Hence µ < 3. Therefore, long sentences in packaging does not bother users much and is not an important deciding factor while buying hair gel. Research Question: To what extent does the presence of natural ingredients affect Sales? Hypothesis: H1: Presence of natural ingredients takes precedence over brand loyalty H2: Products with natural ingredients sell more in urban areas as compared to rural areas H3: Presence of natural ingredients, in a product by a trusted brand, frequency of usage 41.18 41.18 17.65 0.00 0.00 LONG SENTENCES ARE CUMBERSOME 1 2 3 4 5
  • 26. Independent Samples t test was used to determine if presence of natural ingredients increases sales in urban areas to a greater extent as compared to semi urban areas. Here, Group 1 refers to Semi-Urban and Group 2 refers to urban areas. o By Levene’s test of equality for Variances, H0: σ1 = σ2 H1: σ1 ≠ σ2 Significance for this is 0.135 > 0.05 therefore Null Hypothesis cannot be rejected and hence the variances are equal. o Following this, t test has the following hypothesis H0: µ1 = µ2 H1: µ1 ≠ µ2 (Where µ1, µ2 are means of usage data from urban and semi-urban areas respectively) Significance is 0.000 < 0.05 therefore Null hypothesis is rejected and means that natural ingredients affect sales in urban and semi urban areas differently. Looking at the means, it can be seen that natural ingredients increase sales in urban area to a greater extent than Semi-Urban areas. Paired samples test was undertaken to see if natural ingredients play a greater role than brand loyalty in getting new customers. H0: µ1-µ2 ≥ 0 H1: µ1 -µ2<0 (Where µ1, µ2 are mean of preference data for natural ingredients and brand loyalty respectively)
  • 27. Significance is 0.254 (0.508/2) > 0.05 therefore we fail to reject null hypotheses and natural ingredients do indeed play a greater role than brand loyalty. 7.1.2 For NON SET WET hair gel users  Research Question: How has entry of competitors with alternatives to hair gel affected sales? Hypothesis: H1: There are better competitor’s substitutes like hair wax H2: Set wet quality is lower than competitor’s product H3: Competitor’s product is priced at a lower per unit rate H4: Competitor’s product occupies better shelf space and is more readily visible in stores
  • 28. Serial No Assumption Tested Validity Proved by 1 Residuals (errors) of the regression line are normally distributed Valid 2 No or little multicollinear ity of residuals Valid d = 1.911 (i.e. 1.5 < d < 2.5)
  • 29. 3 Mean of residuals (errors) is zero Valid Mean of residuals as per Residual Statistics is zero 4 Homoscedasti city of variances along the best fit line Valid  For Multi Linear Regression, H0: R2 = 0 H1: R2 ≠ 0 It is assumed that α = 0.05. As p/2 = 0.000 as per ANOVA table, this leads to rejection of Null Hypothesis which means that at least one of the factors affects the outcome. Hence, MLR is a valid test for this Research Question.  Analysis Assumption: α = 0.05 H0: β = 0 H1: β ≠ 0
  • 30. Therefore, “Low Quality” is observed to have the highest effect on the reasons for not using Set Wet while “preference for hair wax” is observed to be the second highest effect.  Variance Inflation Factor (VIF) <10 for all factors. Therefore, no collinearity is observed between input variables.  Regression Equation For y = α + β1x1 + β2x2 + ….. + βnxn α, the constant has a significance of 0.410, which is >0.05 and therefore this constant is not significant (null hypothesis is not rejected). For the current research question of “Reasons for using Hair Gel other than Set Wet”, the equation is Y = 0.631x1 + 0.432x2 Where y = Degree of dislikeness for using Set Wet Hair Gel x1 = Low Quality x2 = Preference for hairwax ------------------------------------------------------------------------------------------------------- 7.1.3 For SET WET hair gel users  Research Question: How has entry of competitors with alternatives to hair gel affected sales?
  • 32. 1 Residuals (errors) of the regression line are normally distributed Valid 2 No or little multicollinearity of residuals Valid d = 2.356 (i.e. 1.5 < d < 2.5) 3 Mean of residuals (errors) is zero Valid Mean of residuals as per Residual Statistics is zero 4 Homoscedasticity of variances along the best fit line Valid Scatterplot
  • 33.  For Multi Linear Regression, H0: R2 = 0 H1: R2 ≠ 0 It is assumed that α = 0.05. As p = .000 as per ANOVA table, this leads to rejection of Null Hypothesis which means that at least one of the factors affects the outcome. Hence, MLR is valid test for this Research Question.  Analysis Assumption: α = 0.05 H0: β = 0 H1: β ≠ 0 Variance Inflation Factor = <10 for all the factors. Therefore, no collinearity is observed between input variables. Therefore, “Advertisement” is observed to have the highest effect on the outcome. “Low Price” is observed to have the second highest effect on the outcome.
  • 34.  Regression Equation For y = α + β1x1 + β2x2 + ….. + βnxn For the current research question of “Reason for using set wet”, the equation is Y = 0.529X1 + 0.421x2 Where y = Degree of likeness of Set Wet gel x1 = Advertisements x2 = Low price -------------------------------------------------------------------------------------------------------  Research Question: What effect does tagline have on different demographics? Hypothesis: H1: Change in taglines affect usage in pre-teens and teens more than office goers H2: Change in taglines affect usage in urban areas to a greater extent than in rural areas  Independent Samples t test was used to determine if the effect of the Set Wet Hair Gel tagline ‘Sada Sexy Raho’ was different between urban and semi-urban areas. (The cities have been classified using The Census of India 2011 – Urban Agglomeration and Cities) Group 1 is urban and Group 2 is Semi-Urban areas. o By Levene’s test of equality for Variances, H0: σ1 = σ2 H1: σ1 ≠ σ2 Significance for this is 0.488 > 0.05 therefore Null Hypothesis cannot be rejected and hence the variances are equal. o Following this, t test has the following hypothesis H0: µ1 = µ2 H1: µ1 ≠ µ2
  • 35. (Where µ1, µ2= mean value of effect of tagline in urban and semi-urban area respectively) Significance is 0.026 < 0.05 therefore Null hypothesis is rejected and means that effect of tagline in urban and semi-urban areas differs. Looking at the means, it is evident that taglines affect Semi-Urban areas more.  To check effect of change in tagline on Teens (Between 13 and 18) and Pre-Teens (Less than 12) as compared to office goers, ANOVA test was undertaken. Here, Group 1 is Pre-Teens, Group 2 is Teens and Group 3 is Office Goers. H0: µ1 = µ2 = µ3 H1: At least one mean is different (Where µ1, µ2, µ3= mean value of effect of tagline for pre-teens, teens and office goers respectively) o Significance is 0.001 < 0.05 therefore null hypotheses is rejected and at least one of the means is different. o For Post Hoc tests, H0: µ1 = µ2 H1: µ1 ≠ µ2 (Where µ1, µ2= mean value of effect of tagline on pre-teens and teens respectively)
  • 36. It is seen that we fail to reject Null Hypothesis for Group 1 and 2 therefore the effect of tagline is the same on Pre-Teens and Teens but they both have different preferences when compared to Office Goers. ------------------------------------------------------------------------------------------------------- Research Questions: How does celebrity endorsements affect Sales? Hypothesis:  H1: Use of celebrity in advertisements sales increases trust in the brand  H2: Use of celebrity increases target segment For testing if the use of Celebrity Endorsements increases the target group, one sample t test was used. 1 refers to very low influence of celebrity in endorsements while 5 refers to very high influence. H0: µ ≤ 3 H1: µ > 3 (Where µ= mean value of preference for celebrity endorsement on a scale of 1-5, I being the least and 5 being the highest value of preference) Significance is 0.000 (p/2) < 0.05 therefore Null Hypothesis is rejected and use of celebrity in endorsements does positively influence buying behavior. Correlation test was used to find if correlation existed between preference for celebrity in advertisements and brand loyalty. H0: µ1 - µ2 ≤ 0 H1: µ1 - µ2 > 0
  • 37. (Where µ1 = Mean of preference for celebrity in endorsements and µ2= Mean of brand loyalty, on a scale of 1 to 5 where 1 being very low preference and 5 being very high preference) Pearson Correlation of 0.158 is obtained. A value between 0.1 and 0.3 indicates very little correlation and hence it can be inferred that presence of celebrities in endorsements does not affect brand value to a large extent.  Research Question: How does usage frequency affect brand loyalty? Hypothesis: H1: For frequent usage, advertisement about sales promotion is more important than brand loyalty H2: For frequent usage, price is more important as compared to brand loyalty H3: For rare usage, advertisement about sales promotion is more important than brand loyalty H4: For rare usage, price is more important than brand loyalty
  • 38.  High Frequency Users o Paired samples test was undertaken to see if advertisements played a greater role in usage than brand loyalty H0: µ1 - µ2 ≤ 0 H1: µ1 - µ2 > 0 (Where µ1, µ2 = mean of importance of advertisements and brand loyalty respectively) 0 5 10 15 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 HIGH FREQUENCY VS LOW FREQUENCY BRAND LOYALTY AND ADVERTISMENTS Brand Loyalty LF Advertisment LF Brand Loyalty HF Advertisments HF 0 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 HIGH FREQUENCY VS LOW FREQUENCY PRICE Advertisments LF Advertisments HF
  • 39. Significance is 0.007(0.014/2) < 0.05 therefore we reject null hypotheses and advertisements do play a greater role in affecting usage for high frequency users than brand loyalty. o Paired samples test was undertaken to see if price played a greater role in usage than brand loyalty H0: µ1 - µ2 ≤ 0 H1: µ1 - µ2 > 0 (Where µ1, µ2 = mean of importance of price and brand loyalty respectively) Significance is 0.000 (p/2) < 0.05 therefore we reject null hypotheses and price does play a greater role in affecting usage for high frequency users than brand loyalty.  Low Frequency Users o Paired samples test was undertaken to see if advertisements played a greater role in usage than brand loyalty H0: µ1 - µ2 ≥ 0 H1: µ1 - µ2 < 0 (Where µ1, µ2 = mean of importance of advertisements and brand loyalty respectively) Significance is 0.067 (0.134/2) > 0.05 therefore we fail to reject null hypotheses and advertisements play a greater role in affecting usage for high frequency users than brand loyalty.
  • 40. o Paired samples test was undertaken to see if price played a greater role in usage than brand loyalty H0: µ1 - µ2 ≥ 0 H1: µ1 - µ2 < 0 (Where µ1, µ2 = mean of importance of price and brand loyalty respectively) Significance is 0.0035 (0.007/2) < 0.05 therefore we reject null hypotheses and price does not play a greater role in affecting usage for high frequency users than brand loyalty. 7.1.4 For non-users of hair gel  Research Question: In site of being the market leader why has the growth for set wet gels reduced in the past years Hypothesis: H1: Consumers don’t buy set wet because it attracts grime and dust H2: Consumers don’t buy Set wet because sweat causes set wet to leak into the face H3: Consumer don’t buy Set wet because it doesn’t look natural to observer H4: Consumers don’t buy Set wet because hair gels are considered old fashioned H5: Hair Gels causes damage ( i.e. hair fall and early graying)
  • 41. Serial No Assumption Tested Validity Proved by 1 Residuals (errors) of the regression line are normally distributed Valid 7.84 19.61 13.73 19.61 13.73 CAUSES HAIR DAMAGE 1 2 3 4 5
  • 42. 2 No or little multicollinearity of residuals Valid d = 2.356 (i.e. 1.5 < d < 2.5) 3 Mean of residuals (errors) is zero Valid Mean of residuals as per Residual Statistics is zero 4 Homoscedasticity of variances along the best fit line Valid Scatterplot  For Multi Linear Regression, H0: R2 = 0 H1: R2 ≠ 0 It is assumed that α = 0.05. As p = .000 as per ANOVA table, this leads to rejection of Null Hypothesis which means that at least one of the factors affects the outcome. Hence, MLR is valid test for this Research Question.
  • 43.  Analysis Assumption: α = 0.05 H0: β = 0 H1: β ≠ 0 Variance Inflation Factor = <10 for all the factors. Therefore, no collinearity is observed between input variables. Therefore, “Grime and dust” is observed to have the highest effect on the outcome. “Damage” is observed to have the lowest effect on the outcome.  Regression Equation For y = α + β1x1 + β2x2 + ….. + βnxn For the current research question of “Reason for not liking Hair gel”, the equation is Y = 0.412X1 + 0.324x2 + 0.327x3 Where y = Degree of dislikeness for not using hair gel x1 = Grime and Dust x2 = Not Natural looks
  • 44. x3 = Damage Promotion strategy for the whole population  Research Question: What is the most effective medium of communication among target audience?  Hypothesis: H1: TV commercials are the most significant medium of communication H2: All consumers can be reached through print media H3: Radio advertisements increase sales H4: Socal media campaigning increases sales For the question of preference for mode of media, one Sample T test was used. The following results were obtained (α=0.05). Here, µ is the mean of all the responses for that particular media type with 1 being very low preference and 5 being very high preference.
  • 45. o For Print Media consisting of both newspaper and magazine, H0: µ ≤ 3 H1: µ > 3 (Where µ= mean value of preference for print media) o For Radio, H0: µ ≥ 3 H1: µ < 3 (Where µ= mean value of preference for radio) o For Television, H0: µ ≤ 3 H1: µ > 3 (Where µ= mean value of preference for Television)
  • 46. o For Social Media, H0: µ ≤ 3 H1: µ > 3 (Where µ= mean value of preference for Social Media) Mode of Media Significance Value Result Print Media – Newspaper + Magazine 0.000 Rejecting Null Hypothesis therefore there is significant preference of print media for advertisements Radio 0.000 Rejecting Null Hypothesis therefore not much preference for radio advertisements Television 0.000 Rejecting Null Hypothesis therefore there is significant preference of television for advertisements
  • 47. Social Media 0.000 Rejecting Null Hypothesis therefore there is significant preference of television for advertisements o Within Television and Print Media, correlation test was used. H0: µ1 - µ2 ≤ 0 H1: µ1 - µ2 > 0 (Where µ1, µ2= mean value of preference for television and print media respectively, on a scale of 1 to 5 where 1 being very low preference and 5 being very high preference) Significance is 0.0015 (0.003/2) which is lesser than .05 and hence Null Hypothesis is rejected therefore preference for advertisement on Television is higher than advertisements in Print Media. 8 CONCLUSION Our study initiated with an understanding of the various parameters affecting buying behavior for different demographics in the Hair Gel user segment. We then attempted to understand ranking of these parameters and sought to establish the perception as per customer usage. Effect of peer influence, promotional campaigns and presence of natural ingredients on both perceived quality and sales was studied. At all times, all primary and secondary sources of information were evaluated comparatively. The current change in promotion of Set Wet gel and marketing mix was evaluated from both a theoretical and consumer perspective. From this, all viewpoints that emerged were noted and have been
  • 48. used to suggest changes in the marketing and promotional strategy. The Limitation of such a study is that the quantitative survey focusses on perceived product quality and effect of promotional campaigns to a greater extent as these factors were found to have the highest correlation. The insights obtained from our research show that:  Consumers like to use hair gel for primarily three reasons, managing unruly hair, the shine it provides and its appeal to the opposite gender. Managing unruly hair has the highest weightage in this decision, while shine has the lowest.  The presence of natural ingredients increases sales, more so in urban areas than in semi-urban areas  The presence of natural ingredients plays a greater role in the consumers buying decision as compared to brand loyalty  The aesthetics of packaging is a significant influence on a consumers decision to buy hair gel  Longer sentences on packaging (i.e. more than 10 words) does not bother consumers, and is not a significant factor in their decision to buy hair gel  The biggest reason that consumers who do not prefer to use Set Wet is because they perceive it to be a low quality product. The next biggest reason being that they prefer hair wax over gel. No other significant factors were detected.  The biggest reasons that consumers prefer to buy set wet is its advertising. The second biggest reason being its low price. No other significant factors were detected.  For consumers which use hair gel frequently i.e. more than 7 times a week, price and advertisements play a greater role in their buying decision than brand loyalty.  For consumers which use hair gel occasionally i.e. less than or equal to 7 times a week, advertisement plays a greater role in their buying decision than brand loyalty, while price does not.  For consumers who do not use hair gel at all, the fact that it attracts grime and dust, does not look natural and that it causes hair damage are significant factors. Here, grime and dust is observed to have the highest effect on this decision while hair damage has the lowest effect.  People prefer newspapers, magazines, television and social media as their preferred form of media. The preference for television is higher than for newspapers or magazines.
  • 49.  The new tag line for promotion of Set Wet, “Sada Sexy Raho”, affects consumers in semi-urban areas more than in urban areas.  The tag line has an equal influence on pre-teens (younger than 13) and teens (between 13 and 19), but different for young adults (older than 19).  The use of celebrity endorsements has a positive influence on a consumer’s buying behaviour, when it comes to hair gel. But there is no evidence that it increases the trust in a brand. 9 ANNEXURE A (OBJECTIVE OF THE IN-DEPTH INTERVIEW) Reasons for using (not using) hair gels Stigmas associated with hair gel usage Perceived quality of Set Wet gel among all hair gel brands Shortcomings in ingredients in Set Wet gel Effect of natural ingredients in perceived quality and sales Effect of medium of communication on sales Effect of social media campaigns on target consumers 1. Screening Question on gender 2. Awareness of: information, age, profession, economic strata 3. Behaviour with regards to hair gel to hair, gel brand loyalty, frequency of usage, reasons for usage, reason for non usage 4. Product perception Harmful effects, presence if natural ingredients, ranking of various qualities 5. Effect of promotion, medium of promotion, social media campaign
  • 50. 9 ANNEXURE B (SAMPLE QUESTIONNAIRE) 1) Please fill up the following details. Age: ________________ Profession- Home Town: ________________ a. School student b. Undergraduate Student c. PG Student d. Working professional. Please specify e. Others, please specify: __________________ 2) Which of the following do you buy? Please tick all the applicable items Shampoo Facewash Deodorant Conditioner Face Cream Perfume Hair Oil Moisturizer Sunscreen Hair Gel Soap Aftershave Serums Shower Gel Others, please specify: _________ 3) Do you use Hair Gel? a. Yes b. No -----------------------(Use hair Gel) ---------------------------- 4) At what age did you first start using Hair Gel? a. Below 15 b. 15-20 c. 20-22 d. 22-25 e. Above 25 5) How you were first introduced to Hair Gel? a. Advertisement b. Peers c. Impulse buy at the store/ Supermarket d. Others, Please Specify: __________________ 6) If you do use hair gel, please indicate (tick) below your preferred brand(s). a. Brylcream d. Set Wet g. Park Avenue b. L’Oreal e. Himalaya h. Garnier c. Parachute f. Gatsby i. Other, please specify: _____________
  • 51. 7) If you answered yes to the above question, please rate the following factors for your reasons of usage a. Hair styling for special occasions Very Low Low Neutral High Very High b. Managing unruly hair Very Low Low Neutral High Very High c. Hair Nourishment Very Low Low Neutral High Very High d. Strength of Hold Very Low Low Neutral High Very High e. Presence of natural ingredients Very Low Low Neutral High Very High f. Shine Very Low Low Neutral High Very High g. Appeal to opposite gender Very Low Low Neutral High Very High h. Other, please specify: __________________ 8) Please rate how strongly does the aesthetics of packaging affects your decision to buy hair gel? No effect Little Effect Neutral Strong Very Strong 9) “I find reading packaging cumbersome and tend to avoid reading it, especially if it is longer than ten words” ” Please indicate how strongly you agree with the statement above – Strongly Disagree Disagree Can’t say Agree Strongly Agree 10) Please rate how much you prefer using Hair Gel Very Low Low Neutral High Very High 11) In the last 6 months have you used a hair gel other than Set wet? a. Yes b. No
  • 52. --------- IF ANSWER TO ABOVE QUESTION IS YES (Use hair gel but not set wet) ------------- 12) If yes, then Rate the reasons for usage of other hair gel a. Set wet quality is lower than the brand you are using Strongly Disagree Disagree Neutral Agree Strongly Agree b. Set wet is more expensive than the brand you are using Strongly Disagree Disagree Neutral Agree Strongly Agree c. You prefer hair wax over hair gel Strongly Disagree Disagree Neutral Agree Strongly Agree d. You find other hair gels more often in retail stores than set wet Strongly Disagree Disagree Neutral Agree Strongly Agree 13) Please rate how much you dislike Set Wet Hair Gel Very Low Low Neutral High Very High --------------------------------------- (Use hair gel use set wet) -------------------------------- 14) In a typical week, how frequently do you use set wet? a. 0-2 d. 8-10 b. 3-5 e. Greater than 10 c. 5-7 15) Please rate the importance of the following attributes for using set wet hair gel a.Brand Loyalty Very Low Low Neutral High Very High b. Advertisement (Frequency / medium / use of celebrity endorsement) Very Low Low Neutral High Very High c. Low Price Very Low Low Neutral High Very High d. Other, please specify: __________________
  • 53. 16) How much does Set Wet’s new tagline “Sada Sexy Raho” influence your preference for set wet hair gel? No effect Little Effect Neutral Strong Very Strong 17) Does the presence of known celebrity endorsement induce you to change your preferred brand while purchasing the hair gel? Very Low Low Neutral High Very High 18) Please rate the degree of your preference for Set Wet Hair Gel Very Low Low Neutral High Very High ----------------------------------- (Don’t Use hair gel) ------------------------------------- 19) If you do not use hair gel, please rate the following factors as per your reasons. a) It attracts grime and dust Strongly Disagree Disagree Neutral Agree Strongly Agree b) Sweat causes set wet to leak onto the face Strongly Disagree Disagree Neutral Agree Strongly Agree c) It doesn’t look natural to an observer Strongly Disagree Disagree Neutral Agree Strongly Agree d) Hair gels are considered old fashioned Strongly Disagree Disagree Neutral Agree Strongly Agree e) Hair gels cause hair damage by way of hair fall and early greying Strongly Disagree Disagree Neutral Agree Strongly Agree f) Others, please specify: __________________
  • 54. 20) Please rate the degree of your dislikeness for not using Hair Gel Very Low Low Neutral High Very High 21) Please indicate your preference for the following mode of media. Television Very Low Low Neutral High Very High Radio Very Low Low Neutral High Very High Print Media Very Low Low Neutral High Very High 22) “I usually buy products after having seen advertisements on social media platforms”. Please indicate below how strongly you agree with the statement above. Strongly Disagree Disagree Can’t say Agree Strongly Agree