The project is the result of the detailed study about the consumer behavior in the soaps catagory in INDIA

1. CONSUMER BUYING
BEHAVIOR & ITS
IMPLICATIONS FOR THE
EXISTING COMPANIES IN
THE INDIAN MARKET
COURSE: - PGCBM 18
FACULTY:- Dr Pingali Venugopal
Subject:- PRINCIPALS OF MARKETING
SUBMITTED BY :- Surojit Kumar Saha
SMS ID:- 2406464
CENTRE:- Patna - South Gandhi Maidan

2. 1ST STAGE: CHOOSING A PRODUCT CATEGORY WHICH
HAS AN INTERNATIONAL, NATIONAL AND LOCAL
RESEMBLENCE.
I will take the SOAP CATEGORY as the topic of our POM project.
This category has a Competition among LOCAL, NATIONAL and INTERNATIONAL
players.
The Category has presence and acceptation in rural as well as urban markets.
This category is seeing entry of Local and national players and extreme rise in
competition.
This category in perusal to the Indian market sees majors like HUL in international
players, ITC in emerging national players and Chhattisgarh Soaps in local players.
We will be studying the activities and marketing procedure implemented by these
companies to motivate buying behavior of the consumer and increase sales.
INDUSTRY ANALYSIS:
The toilet soaps market is estimated at Rs 15,000 pa approx including small imports.
The market is littered over with several, leading national and global brands and a
large number of small brands, which have limited markets. The popular and
premium brands include Lifebuoy, Lux, Cinthol, Liril, Rexona, and Nirma.
Toilet soaps, despite their divergent brands, are not well differentiated by the
consumers. It is, therefore, not clear if it is the brand loyalty or experimentation
lured by high volume media campaign, which sustain them. A consequence is that the

3. market is fragmented. It is obvious that this must lead to highly competitive market.
Toilet soap, once only an urban phenomenon, has now penetrated practically all
areas including remote rural areas. The incremental demand flows from population
increase and rise in usage norm impacted as it is by a greater concern for hygiene.
Increased sales revenues would also expand from up gradation of quality or per
unit value.
As the market is constituted now, it can be divided into four price segments:
premium, popular, discount and economy soaps. Premium soaps are estimated to
have a market volume of about 557611 tonnes. This translates into a share of
about14 to 15%.
Soaps form the largest pie of the FMCG Market with bathing & toilet soaps accounting
for around 30% of the soap market, by value. Currently, the soap industry is divided
into three segments namely Premium, Popular and Economy/ Sub popular.
To fight competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer
Products Ltd (GCPL) and Wipro Consumer Care & Lighting are now drawing up fresh
game plans. And the accent is clearly on innovation to gain mind share as well as
market share in this overcrowded category.
MAJOR PLAYERS:
Hindustan Unilever Ltd.
With over seven brands — LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE and
PEARS — has 51.2% volume share of the overall soap market. HUL is India's largest
Fast Moving Consumer Goods Company; its journey began 75 years ago, in 1933,
when the company was first incorporated. The company stirring the lives of two out
of three Indians with over 20 distinct categories in Home & Personal Care Products
and Foods & Beverages and also one of the country's largest exporters. HUL's brands
includes Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic,
Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's
- are household names across the country. They are manufactured in over 40
factories across India. In the Rs 14915 crore by sales soap market, HUL’s market

4. share has dropped to 51.6% value market share in March 2009 from 55.9% in March
2006.
Godrej Consumer Products
GCPL, India’s second largest soap maker after Hindustan Unilever Ltd, has
nearly9.2% market share. With 11% market share in value terms, it is the second
largest soap maker after Hindustan Unilever. Godrej Consumer Products (GCPL) is a
major player in the Indian FMCG market with leadership in personal, hair, household
and fabric care segments. The company is one among the largest marketer of toilet
soaps in the country with leading brands such as CINTHOL, FAIRGLOW, NIKHAR,
&ALLCARE. Fairglow brand, India's first Fairness soap, has created marketing
history as one of the most successful innovations. It is also the preferred supplier for
contract manufacturing of toilet soaps, some of which are the most well-known
brands in the country.
Wipro
In the Indian market, Wipro is a leader in providing IT solutions and services for the
corporate segment in India. Wipro also has a profitable presence in niche market
segments of infrastructure engineering and consumer products & lighting. Wipro has
made a large acquisition in the Consumer Care business. The presence of Wipro in
the toilet soap industry can be seen through their brands such as SANTOOR and
CHANDRIKA. With industry leading organic growth rates and the acquisition ,
Consumer care business has reached a Revenue run rate in excess of $100 million
per quarter.

5. Nirma
Incorporated as a private limited company, Nirma was converted into a deemed
public company and then to a public limited one in Nov.'93. Nirma has a leadership
presence in Detergents, Soaps and Personal Care Products. To have a greater control
on the quality and price of its raw materials, Nirma undertook backward integration
into manufacture of Industrial Products like Soda Ash, Linear Alkyl Benzene (LAB),
Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerine and SulphuricAcid. During
1996-97, Nilnita Chemicals, Nirma Detergents, Nirma Soaps andDetergents, and
Shiva Soaps and Detergents were amalgamated with the company.The company
created 'Nirma Consumer Care Ltd.' - a wholly owned subsidiary on22nd Aug.'97,
which is the sole licensee of the brand name 'Nirma' within India. Nirma enjoys a
share of 6.74% in soaps.
ITC
ITC, the country’s largest cigarette maker, entered the segment last year and has
made a strong headway in a short time. According to AC Nielsen, its share has grown
to 1.75% in just five months despite the fact that many of its brands such as Superia,
Fiama Di Wills and Vivel are currently sold in only six states

6. 2ND STAGE: IDENTIFING THE BUYING BEHAVIOR OF THE
IDENTIFIED PRODUCT CATEGORY
WHY DO CONSUMERS BUY?
ANSWER: - TO SATISFY THEIR NEEDS.
How Consumers Buy?
Low involvement products
1 Alternatives within the same product class are
similar
2 Does not reflect buyers self concept
3 Frequent brand switching behavior
E.g. buying a bathing bar (Toilet Soap)
Types of Buying Behavior
HIGH INVOLVEMENT LOW INVOLVEMENT
SIGHNIFICANT DIFFERENCE COMPLEX BUYING BEHAVIOUR VARIETY SEEKING BUYING
BETWEEN BRANDS BEHAVIOUR
FEW DIFFERENCES BETWEEN DISSONANCE REDUCING HABITUAL BUYING
BRANDS BUYING BEHAVIOUR BEHAVIOUR

7. What influences consumers to purchase products or services?
The consumer buying process is a complex matter as many internal and external
factors have an impact on the buying decisions of the consumer.
When purchasing a product there several processes, which consumers go
through?
POST
NEED INFORMATION SEARCH FOR PURCHASED
PURCHASE
RECOGNITION SEARCH ALTERNATIVES ICISION
BEHAVIOR
PURCHASE PROCESS
Fig 1.

8. Fig 2
Analyzing the buying behavior of our selected category

9. The soap category falls under the low involvement segment and its buying
behavior does not always follow the whole purchase process.
Here the NEED RECOGNITION is the most important.
Here after the consumer goes straight to the buying option.
HABITUAL Buying Behavior
1 the consumer is aware of his/her choice
2 decision is based on personal experience
3 spends low or no time in choosing an alternative
4 perceives low risks
VAIRITY SEEKING Buying Behavior
This category shows a change when there is a new launch which leads to a
change in the consumer’s decision criteria.
New launches lead to trail purchases
PICKING
The consumer is indifferent to the brands and is motivated by the Place and
Time Utility. The behavior is ruled by CONVINIENCE AND AVABILITY.
IMPULSE
The consumer reacts to his/her sudden urge to purchase the product. This
behavior is dominated by the AVABILITY of products in the store.
RECALL or RECOGNITION

10. The consumer is ruled by the marketing activities of a particular brand and the
decision has already been made.
NEED RECOGNITION IN SOAP CATEGORY
TYPES OF NEEDS
SELF
BASIC SECURITY SOCIAL STATUS ACTUALI
ZATION
Basic needs in SOAP CATEGORY
1 Cleanliness
2 Freshness
Here a consumer searches for a product which will give him/her a feel of
cleanliness and freshness after using it.
The Liril , Vivel-Deo and Cinthol ads shows the fulfillment of this need using the
products.
Security needs in SOAP CATEGORY
1 Health Conscious

11. 2 Skin Friendly
3 Washing hands before entering kitchen
4 Washing hands before eating
5 Washing hands after using the toilet
Here a consumer searches for a product which gives a feeling of security from
germs after using the product. The product should also not have any after use
effects.
The Lifebuoy and Dettol Ads show fulfillment of the security need.
Social needs in SOAP CATEGORY
1 One wants to be clean and odorless to be accepted in the society
2 One wants to look fresh and attractive
Here a consumer wants to satisfy his/her own self as well as the socially
accepted by the people.
The Superia “Father Baby” Ad shows the fulfillment of this Social need.
Status needs of SOAP CATEGORY
1 Feeling proud when demanding the product
2 Pricing
Here a consumer looks at the ingredients of the product, the after effect and the
feel after using the product. The pricing of the product also stirs the need.
Self Actualization need in SOAP CATEGORY
1 Brand loyalty
2 Post used satisfaction

12. 3 Feeling more than using a soap
4 Feeling of Beauty and admiration .
Here a consumer gets more than what are the basic needs from soap. Here
he/she feels or gets more.
The Dove Soap Ad and Godrej No 1 fulfills the self actualization need by making
a woman feel more complete by using the product
Rebel Need in SOAP CATEGORY
1 Soaps for men
2 Soaps restricting body odour
A category which thinks above the basic need and is a very small category.
The Park Avenue Ad projects to fulfill the need of people in this category.
In the SOAP Category the Buying Behavior is often dominated by the
PRICE SEGMENTS AND CLASSIFICATIONS.

13. CLASSIFICATIONS EXAMPLES
Medical Medimix,Chandrika
DISCOUNT Breeze,Superia,Nima,Dyna
POPULAR Lifebuoy,Santoor,Vivel,
PREMIUM Lux, rexona,Liril,
SUPER PREMIUM Dove, Fiama Di Wills
3RD STAGE: UNDERSTANDING THE IMPLICATIONS OF
DIFFERENT COMPANIES.
India is a fascinating country where people of many different communities and
religions live together in unity. Indian Population is polygenetic and is an
amazing amalgamation of various races and cultures.

14. The territory of India, represents a geographical amalgamation of various
features with its mountain ranges, valleys, desert regions, tropical rain forests,
fertile plains, dry plateaus, coastal areas etc.
The population split between RURAL and URBAN areas in INDIA is 72% and 28%
respectively. So the Buying Behavior and the Marketing strategies differ for the
respective areas.
A few charts to explain the contributions before understanding the implications
by different companies.
CATEGORYWISE CONTRIBUTION OF INDIAN MARKET
2% 5%
19%
11%
13%
14%
5% 3%
28%
Washing Powders Dets Cakes Bars Soaps Cakes Bars
Toilet Soaps Shampoos Skin Creams+Talc
Toothpastes Toothbrushes Utensil Cleaners

15. Rural Urban Contribution in the SOAP Category
Urban – 37% and Rural – 63%

16. Strategies of different companies in RURAL Markets
1 Rural Haat Activation
Communicate in media dark regions.
2 Salience in the haat
Brand Communication.
Selling.
Retailer branding for multiplier.
Cinema in the evenings.
3 Interweave brand communication
Pre-publicity for the same in neighboring villages.
Lucky Draw against wrappers.

17. STANDEES
BANNERS

18. CALENDERS
VISIBILITY IS DONE BY COMPANIES IN
BOTH RURAL AND URBAN
1 CLUTER BRECKING VISIBILITY & SHOP BRANDING

19. 2 EYE LEVEL VISIBILITY

20. ON GROUND ACTIVATIONS
1 CONSUMER SCHEMES
Retail activation where the consumer is benefited on purchase of the
product.
2 Wholesale Activity

21. These type of activities attract retailers from the wholesale outlet.
To Attract traders different types of schemes, like trade discounts , QPS and
STPRs are run . these schemes help to sell in depth and block the traders
capital.
CONSUMER PROMOTIONS
To attract customers Consumer promotions are also run. it gives a advantage to
the product over its competitor.
Consumer Wrapper redemption and coupon Schemes.

22. Consumer coupons and wrapper redemption schemes are an important way of
holding and increasing market share.
It also helps in increasing the customer base and helps in increasing the
purchase quantity and frequency of loyal customers.
SAMPLE PICTURES OF PRODUCTS WHOSE NAMES HAVE BEEN USED IN THE
PROJECT

27. Sources. AC Nielsen ,HUL Internal research .