Hul Project Report

Introduction

Introduction of Bath Soaps

In India, soaps are available in five million retail stores, out of which, 3.75 million retail stores are in the rural areas. Therefore, availability of these products is not an issue. 70% of India's population resides in the rural areas; hence around 50% of the soaps are sold in the rural markets.

Hindustan Unilever is, of course, the market leader .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.

Bath 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 market is fragmented. It is obvious that this must lead to a highly competitive market. Bath 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.

The segment of bath soap can be segregated into:  Premium

 Economy  Popular  Discount

The price of the premium segment products is twice that of economy segment products. The economy and popular segments are 4/5ths of the entire soaps market. The penetration level of bath soaps is 88.6%. However, the per capita consumption of soap in India is at 460 Gms per annum.

As the market is constituted now, it can be divided into four price segments: premium, popular, discount and economy soaps. Popular soaps are estimated to have market volume of about 835.38crore having the share of 42%. Premium soaps are estimated to have a market volume of about 298.35crore. This translates into a share of 15%. Economy soaps estimated to have market volume of about 497.25crore. This translates into a share of 25% and the discount soaps are estimated to have a market volume of about 377.91crore. And this translates into a share of 19%.

Bath Soap Industry Overview

Bath Soap industry is one of the oldest Fast Moving Consumer Goods (FMCG) industries in India. It is among the highest penetrated category within FMCG sector reaching an estimated 99% urban and 97% of the rural households. The main characteristic of the industry was severe competition and high level of brand creation.

HUL saw the share of its soap brands such as Dove, Lux, Hamam, Breeze etc. dip by value to 50.3% in the September quarter, from 53.2% a year earlier, according to market research firm AC Nielsen. Market share slipped from 52.7% at the end of June.

The soaps market recorded sales of Rs 1,989 crore in the second quarter this fiscal. Godrej Consumer Products Ltd, or GCPL, whose soaps include Godrej No. 1, Cinthol and Fair Glow, was stood second with a market share of 9.47%, followed by Wipro Consumer Care Ltd‘s 8.34%, according to AC Nielsen.

The leading brands in the market are Dove, Pears, Lux, Dettol, Liril, Lifebouy, Godrej No 1, Nirma, and Hamam. The industry had witnessed many innovative sales promotion activities in the recent past. Numerous factors were responsible for such a phenomenon. One of the reasons being that the market being sluggish, companies were trying to increase market share in stagnant to declining (volume terms) market in order to retain consumers, to encourage switching, to induce trials and liquidate excessive inventories. Another reason possible was that with the presence of so many brands the competition had increased severally leading to fight for market share and shelf space. Inflationary trend had made both the consumer as well as trade deal prone. Hence, sales promotion activities in Bath Soap industry posed a very interesting study and consumer and retailer perceptions thereof. On the basis of information collected on various brands and their prices, following three segments emerge.

Price Segments of Bath Soaps

Segment Price Weight

Premium Above Rs. 20 75 gm

Popular Rs 13 to Rs. 20 75 gm

Economy Rs. 8 to Rs. 12 75 gm

The brands in popular segments were found to be frequently promoted as there was intensive price competition in this segment. The brands could also be classified based on medicinal benefits, cosmetic benefits, perfumes, and natural/herbal properties. For the purpose of this study, only price segments were considered.

Price Segmentation of Bath Soap

Soaps are also categorized into men's soaps, ladies' soaps and common soaps. There are a few specialty soaps as transparent Glycerin soaps, sandal soaps, specially flavored soaps and medicated soaps. Specialty soaps are high valued but enjoy only a small share of the market in value terms.

The market is growing at 7% a year. This means that the incremental demand generation is 5% over and above the population growth. With increasing awareness of hygienic standards, the market could grow at a rate higher than 8% annually. Interestingly, 60% of the market is now sourced from the rural sector. This means that the variance between the two segments is not very large. Since upper-end market focus is the urban areas, margins come from the urban sector.

Growth

With increase in disposable incomes, growth in rural demand is expected to increase because consumers are moving up towards premium products. However, in the recent past there has not been much change in the volume of premium soaps in proportion to economy soaps, because increase in prices has led some consumers to look for cheaper substitutes.

19 %

15 %

42 % 25 %

Segregation of Bath Soap Segments

(Total Sale of bath soap segment: 1989

crore)

Discount Primium Popular Economy

Introduction to HUL

FMCG Company has been playing a key role in the national economy in both rural and urban sector. Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company‘s Turnover is Rs. 20,239 crores (for the 15 month period – January 1, 2008 to March 31, 2009).

HUL is a subsidiary of Unilever, one of the world‘s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of Rs.2368.42 billion in 2008. Unilever has about 52% shareholding in HUL.

Hindustan Unilever was recently rated among the top four companies globally in the list of ―Global Top Companies for Leaders‖ by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India.

The mission that inspires HUL's more than 15,000 employees, including over 1,400 managers, is to ―add vitality to life". The company meets every day needs for nutrition, hygiene, and personal care, with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds about 52 % of the equity.

The vision of HUL is to "meet everyday needs of people everywhere- to anticipate the aspirations of our consumer & customer & to respond creatively & competitively with branded products & services which raise the quality of life." The objectives is achieved through the brands that the company markets. HUL's Brands have been household names. Some of the big Brand in soaps and detergents are Life-Buoy, Lux, Breeze, Dove, liril, Hamam, Surf, Rin, and Wheel

In order to know about the effect of the brands LIFE-BUOY, LUX, HAMAM, PEARS, DOVE, LIRIL & ―BREEZE‖, which are very popular among the people? I have tried to study the consumer behavior towards these soaps, although there are other brands. It has also been seen that Life-Buoy, Breeze & Lux are popular among the rural area. Being soap, consumers especially youth are very sensitive while choosing the brand, so this has made me to study the consumer behavior towards these soaps.

Heritage

HUL‘s heritage dates back to 1888, when the first Unilever product, Sunlight, was introduced in India. Local manufacturing began in the 1930s with the establishment of subsidiary companies. They merged in 1956 to form Hindustan Lever Limited (The company was renamed Hindustan Unilever Limited on June 25, 2007). The company created history when it offered equity to Indian shareholders, becoming the first foreign subsidiary company to do so. Today, the company has more than three lakh resident shareholders.

HUL‘s brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Sunsilk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls - are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured in over 35 factories, several of them in backward areas of the country. The operations involve over 2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail outlets including direct reach to over 1 million.

HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Lever Research Centre (now Hindustan Unilever Research Centre) was set up in 1958.

Principles of the Quality Policy

• Putting the safety of their products and consumers first.

HUL has stringent mandatory quality standards in place against which compliance is verified through regular audits and self assessments. These standards ensure they design, manufacture and supply products that are safe, of excellent quality, and conform to the relevant industry and regulatory standards in the countries in which they operate.

• They actively engage consumers and customers, translating their needs and requirements into products and services, thus creating consumer value wherever they position their products.

• Quality is a shared responsibility

Quality and consumer safety is the responsibility of every Unilever employee and Unilever demonstrates visible and consistent leadership to meet this policy. The drive for quality, in all that they do, is a passion reflected in their brand development, manufacturing and customer service processes.

Divisions

Home and Personal Care

The HPC business is made up of Fabric Wash, Household Care, Personal Wash and Personal Care categories.

 Personal Wash: Lux, Lifebuoy, Liril, Hamam, Breeze, Dove, Pears, Rexona  Laundry: Surf excel, Rin, Wheel

 Skin care: Fair and Lovely, Ponds, Vaseline.  Shampoo: Clinic Plus, Clinic All Clear  Oral care: Pepsodent, Close up

 Deodorants: Axe, Rexona  Colour cosmetics: Lakme

 Ayurvedic personal and health care: Ayush

Foods

The Foods Division of the Company comprises Beverages, Processed Foods, Ice-Creams and Modern Foods businesses.

 Tea: Brooke Bond, Lipton

 Coffee: Bru

 Foods: Kissan, Annapurna, Knorr

 Ice cream: Kwality walls

Water

Pureit, a breakthrough offering of Hindustan Unilever (HUL), comes with many unique benefits – complete protection from all water-borne diseases, unmatched convenience and affordability.

Major Players of Bath Soap Market

Hindustan Unilever Ltd.

With over seven brands — LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE and PEARS — has 52.7% share of the overall soap market. HUL is India's largest Fast Moving Consumer Goods Company; its journey began 77 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 Rs7, 000 crore by sales soap market; HUL‘s market share has dropped to 52.7% in March 2009 from 55.9% in March 2008.

Godrej Consumer Products

GCPL, India‘s second largest soap maker after Hindustan Unilever Ltd, has nearly 9.47% market share. 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. 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.

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, Glycerin and Sulphuric Acid. During 1996-97, Nilnita Chemicals, Nirma Detergents, Nirma Soaps and Detergents, and Shiva Soaps and Detergents were amalgamated with the company. The company created 'Nirma Consumer Care Ltd.' - a wholly owned subsidiary on 22nd 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.

STUDY OF HUL’S BATH SOAP BRANDS IN

RESPECT TO 4 P’S OF MARKETING MIX

Product

1.

LUX

Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Lux continues to be a favorite with generations of users for the experience of a sensuous and luxurious bath.

Lux is 2nd grade soap having 70% TFM.

Prominent Variants  Lux almond  Lux orchid  Lux fruit  Lux saffron  Lux sandalwood  Lux rose  Lux international  Lux chocolate

 Lux aromatic extracts  Lux oil and honey glow etc.

Available in Package

Lux available in the size: 45 gm, 75 gm, 100 gm, 150 gm, such as the International Lux is available in the size: 75 gm and 125 gm.

2.

Lifebuoy

Lifebuoy launched in red brick shape as carbolic red soap in the market. It is symbolized as health and hygiene. It has been repositioned in 2002 as family soap.

Lifebuoy is 3rd grade soap having 65% TFM. It launched in many variants such as  Lifebuoy Active Red

 Lifebuoy Active Orange  Lifebuoy International Plus  Lifebuoy International Gold  Lifebuoy Nature (Neem & Tulsi)

Available in Package

Lifebuoy available in the size: 45 gm, 100 gm, 120 gm, 150 gm., it also available in the size of combo pack.

3.

Hamam

Hamam bring alive ancient time tested skincare ritual that has been perfected over generation in convenient and contemporary formats.

Hamam Soap Is lies in 3rd Grade having 68% TFM. The three variants of Hamam that are as follows:







Available in Package

4.

Breeze

Breeze has offered them ‗Beauty at an affordable price‘, make them look and feel beautiful. Breeze comes in four fragrances – rose, sandal, lime and Rajnigandha. All this at a very affordable price for the masses.

Breeze is having 63% TFM. and lies in 3rd grade.

Prominent variants

Breeze is available in the package of 45 gm, 100gm×3 and 125gm×4, which is comparatively salable at discount segment.

5.

Rexona

Rexona was launched in India in 1947. It is one of the well known brands in soap market. Although the brand does not have any significant market share, it has loyal customer based. Rexona soap was positioned as natural skin care soap for a silky glowing skin.

Rexona is the 2nd grade soap having 70% TFM.

Available in Package

6.

Liril

Liril has come to be synonymous with the freshness of limes, active energy and freedom of expression by its symbolic display of the uninhibited female form.

Liril is lies in the 2nd grade having 72% TFM.

Available in Package

Liril Soap is available in the package size of 75 gm and 125gm.

7.

Dove

Dove is known to be a keeper of promises and has given real products to women world over. To help you enjoy your own brand of beauty.

Available in Package

Dove is available in the package size of 50gm, 75gm. It is also available in the size of combo pack such as 100gm×3.

8.

Pears

Pears is available in three variants - the traditional Pure & Gentle variant, a green variant for oil control and a blue variant for germ protection. The story of this popular soap was first created in 1789 by a young man called Andrew Pears. This is from whom it derived its name.

Prominent Variants

 Pears Pure & Gentle  Pears Germ Shield  Pears oil Control

Available in Package

9.

Moti

Moti is special soap which has certain differentiation. The first differentiation point is shape. Unlike over soaps which come in cake form, Moti is round soap. Moti is vernacular term for pearl. So the soap is also in the shape of pearl.

Moti is only soap of HUL which is having 76% TFM and lies in grade 1.

Prominent Variants

 Moti Rose  Moti Sandal

Available in Package

Price

If price is too high then a company may never sell a single item of it. If price is too low then one can lose money on every sale once all of costs of doing business are considered. Therefore the key is to price it in such way that it appears attractive to the customer as well as profitable to the company. HUL seems to have mastered this idea. Prices of HUL are considered the most competitive in Indian market. The main fact for this huge success story is the strategic pricing decision the company has adopted from time to time.

HUL always gives value for money to their consumers. It is known for its competitive pricing. It has the advantage of quoting a reasonable price due to its economies of scale. HUL also can quote a very competitive price due to its superior technology and optimum utilization of inventory. It has the product range that meets the needs of all classes of consumers. It has the products that are categorized as premium and mass products. HUL matches its prices with the competitor who is operating in the same category. HUL also gives price offs on its products to reward consumers who are using it for a long time and also to attract new consumers.

The price of the premium segment products is twice that of economy segment products. The economy and popular segments are 4/5ths of the entire soaps market.

Price segments of bath soaps

Segment Price Weight

Premium Above Rs. 20 75 gm

Popular Rs 13 to Rs. 20 75 gm

Economy Rs. 8 to Rs. 12 75 gm

However, recently HUL has been forced to hike its price by one rupee, to Rs17 (for 100 gm), giving in to the pressures of inflation. This paves the way for competing soap makers like Godrej Consumer Products (GCPL) to take price increases.

Price wise Segments of HUL’s Bath Soap Brand

Premium (> 20 Rs.)

Popular (> 13 Rs. &

< 20 Rs.)

Economy (< Rs. 12)

Brand

Price

(Rs.) for

75 gm

Brand

Price

(Rs.) for

75 gm

Brand

Price

(Rs.) for

75 gm

Dove 33Rs. Lux 18 Rs. Breeze 10Rs

Pears 26Rs. Liril 19Rs. Lifebuoy 12Rs

Moti 23Rs. Rexona 17Rs.

Hamam 18Rs.

The bath soaps are available in different sizes - 75 gms. 100 gms, 125 gms. and 150 gms. The popular sizes are 75 gms. and 100 gms.

Promotion

The great Indian brand wagon started nearly four decades ago. Great brands sometimes outlast their ambassadors as proven by Lux which celebrated its 75th anniversary in India.

The first ambassador, Leela Chitnis featured in a Lux advertisement which flagged off the Lux wagon. She gave way to a galaxy of stars which includes Madhubala, Nargis, Meena Kumari, Mala Sinha, Sharmila Tagore, Waheeda Rehman, Saira Banu, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi, Aishwarya Rai, Kareena Kapoor and Priyanka Chopra. The last frontier for most actors aspiring to stardom is becoming a Lux ambassador. The brand has outlasted much soap. From the beginning, Lux became a household name across the country.

All top actresses at their time were the brand ambassador of the Lux soap. They launched the Shahrukh Khan as a first male brand ambassador for the LUX and Abhishekh Bacchan was the second male brand ambassador for the Lux. They also promote the brand through sponsoring the shows such as ―LUX PERFECT BRIDE.‖, sales promotion schemes like ―LUX GOLD COIN OFFER‖, ―Buy 3 Get 1 Free‖. As a promotional activity window display is also run by the company.

A List of Some offers During the Period (2009 - 2010)

Brand

Size

Offers

Pears 75gm 5 Rs. OFF

Pears 75gm Buy 1, get 2 sachets

Sunsilk shampoo free worth Rs.5

Lux 75gm Gold Coin Offer

Lux 75gm Save 9 Rs.

Breeze 75gm, Buy 2 Get 1 Free

Breeze 125 gm Buy 2 Get 1 Free

Dove 100gm Buy 3 Save Rs 10.

Lux Honey 75gm Rs. 2 Off

Place

HUL‘s distribution network is recognized as one of its key strengths -- that which helps reach out its products across the every retail outlets. The need for a strong distribution network is imperative, since HUL‘s corporate purpose is ―to meet the everyday needs of people everywhere.‖

At Hindustan Unilever Limited, distribution network is one of the key strengths that help them reach their products across the length and breadth of this vast country. It has 2000+ suppliers and associates 7,000 stockiest and direct coverage in over 1 million retail outlets across India.

To meet the ever-changing needs of the consumer, HUL has set up a distribution network that ensures availability of all their products, in all outlets, at all times. This includes, maintaining favorable trade relations and providing innovative incentives to retailers. HUL boasts of placing a product across the country in less than 72 hrs.

The first phase of the HUL distribution network had wholesalers placing bulk orders directly with the company.

Today, the goods are transferred from the factory to the company warehouses and are sent to the distributor from there on a daily basis. From the distributor, the stock reaches the market through daily sales. Typically, these include the salesman registering the order of a retail outlet and delivering the goods the next day.

In addition to the ongoing commitment to the traditional grocery trade, HUL is building a special relationship with the small but fast emerging modern trade. HUL's

scale enables it to provide superior customer service including daily servicing, improving their range availability whilst reducing inventories. HUL is using the opportunity of interfacing more directly with consumers in this retail environment through specially designed communication and promotions. This is building traffic into the stores while yielding high growth for the business.

Through above graphical representation it is clear that there is the higher availability of the bath soap products that shows the strong distribution network of HUL. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

LUX Lifebuoy Hamam Breeze Liril Rexona Pears Dove moti

Availability

Sample Size: 20 Retail Outlet

Bathing Brands of HUL and Analysis of

Competition

LUX

The name Lux means ‗light‘ in Latin; however the name was chosen for its play on the word ‗luxury‘. Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Lux continues to be a favorite with generations of users for the experience of a sensuous and luxurious bath.

Lux is available in seven different variants – white glow, orchid, chocolate, aqua sparkle, almond delight, cool wave, international. All these seven different variants are available in 75g, 100g & 125g pack.

Lux was first introduced as toilet soap in 1925. Produced by Lever Brothers, it arrived in the UK in 1928, offering people a chance to pamper themselves for a modest price. From the 1930s right through to the 1970s, Lux soap colours and packaging were altered several times to reflect fashion trends. In 1958 five colours made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap with their bathroom colours. Lux available in the size: 45 gm, 75 gm, 100 gm, 150 gm, such as the International Lux is available in the size: 75 gm and 125 gm.

Major Competitors

HUL Brand

Company

Bath Soap

Brand

Market Share

LUX 24%

Godrej Consumer

product Ltd. Godrej No 1 Soap

17%

Wipro Consumer Ltd Santoor Soap 30%

Nirma

Nirma Beauty soap 4%

Neema Soap 1%

ITC Vivel Soap 5%

Anchor Health &

Beauty Care Dayna Soap

8%

Interpretation:

Lux has the 2nd highest market share of 24% presided by the Santoor having the highest market share of 30% and followed by the Godrej No 1 having 3rd highest market share in Wardha Market.

LIFEBUOY

Making a billion Indians feel safe and secure by meeting their health and hygiene needs is the mission of Lifebuoy. The world‘s largest selling soap offers a compelling health benefit to the entire family. Launched in 1895, Lifebuoy, for over 100 years, has been synonymous with health and value. Lifebuoy is now milled bath soap with a new health fragrance and a contemporary shape. The new milled formulation offers a significantly superior bathing experience and skin feel.

Life-buoy comes in new curved shape after 109 years. Lab-tested new formulation offers 100% better germ protection than other ordinary soaps. Brick shape, to offer an easy grip and a modern look. The new curved shape is the second major change in Lifebuoy's history, after the re-launch of 2002. In 2002, after 107 years of its existence as a carbolic soap, Lifebuoy was re-launched as a milled toilet soap offering better germ protection.

Lifebuoy soap is available in five variants total, gold care, nature, and multani mitti & orange. All the five variants are available in the new curved Shape and in new formulation. The new Lifebuoy is targeted at today's sharp housewife with a more inclusive "family health protection for my family and me" positioning.

17% 30% 4% 1% 5% 8% 11% 24%

Market Share

Major Competitors

HUL Brand

Company

Bath Soap

Brand

Market Share

Lifebuoy 49%

Rackitt Benckiser

(India) ltd. Dettol Soap 37%

Jonson & Jonson Savlon Soap 14%

Interpretation:

In the carbolic range of bath soap market the Lifebuoy plays leading role with the highest market share of 49% followed by the Dettol with 37% market share.

37% 14% 49%

Market Share

HAMAM

Hamam brings alive the wisdom behind time-less skincare rituals in convenient and contemporary formats.Launched in 1931 as a ‗mild, family soap‘, Hamam soon drew a large natural following long before it was trendy or fashionable. Perhaps the only Indian-made natural soap at the time, Hamam was embraced by mothers and doctors alike, for its purity and safety on skin.

Only Hamam brings alive ancient time tested skincare ritual that has been perfected over generation in convenient and contemporary formats. The three variants of Hamam i.e. Smpurna Snaan, Hamam Scrub Bath and Abhyanga Snaan embody traditional skincare practices.

Hamam can best leverage this due to its heritage and natural ingredient legitimacy to claim purification of the body and spirit.

Major Competitors

HUL Brand

Company

Bath Soap

Brand

Market Share

Hamam 43%

Dorcas Market

Makers Medimix

Ayurvedic Soap 44%

Hankel Margo Soap 9%

Wipro Consumer

Ltd. Chandrika Soap 4%

Interpretation:

Hamam is playing the second highest market leader with the market share of 43%, presided by the Medimix Ayurvedic Soap with the market share of 44% and followed by the Margo Neem with the market share of 9%.

44% 9% 4% 43%

Market share

BREEZE

Breeze is the product of Hindustan Unilever Limited. Breeze was launched in India By keeping in mind the middle class family of India. This soap was launched in different shapes and size to attract all the segments of the consumers.

Hindustan Unilever offers Breeze. Breeze scent magic is the soap that fulfils de aspirations of women of rural India. Breeze has offered them ‗Beauty at an affordable price‘, make them look and feel beautiful. Breeze comes in four fragrances – rose, sandal, lime and Rajnigandha. All this at a very affordable price for the masses.

Major Competitors

HUL Brand

Company

Bath Soap

Brand

Market Share

Breeze 16%

Godrej Consumer

product Ltd. Godrej No 1 Soap

19%

Wipro Consumer Ltd Santoor Soap 33%

Nirma

Nirma Beauty soap 5%

Neema Soap 1%

ITC Vivel Soap 5%

Anchor Health &

Beauty Care Dayna Soap

9% V V F JO Soap 12% 19% 33% 5% 1% 5% 9% 12% 16%

Market Share

Interpretation:

In the discount range of bath soap Breeze has achieved the 3rd highest market leading position with the market share of 16%, presided by the Santoor and Godrej No 1 having market share of 33% and 19% respectively.

LIRIL

Over time, Liril has come to be synonymous with the freshness of limes, active energy and freedom of expression by its symbolic display of the uninhibited female form.

Through history now, Liril has been the choice of many for the most invigorating and energizing experience in bath. Liril was launched in 1977. Its 30 years old. Liril has been a trendsetter over times. The soap & its advertising have been considered to be revolutionary. The first TV ad dates back to 1985. The Liril expressions, associations & the Liril ads are recalled even till now.

Major Competitors

HUL Brand

Company

Bath Soap

Brand

Market Share

Liril 35%

Godrej Consumer

products Ltd. Cinthol Soap 43%

Rackitt Benckiser

(India) ltd. Dettol Cool Soap 22%

Interpretation:

In the freshness segment of bath soaps, Liril is playing 2nd highest market leader role with the market share of 35% presided by the Cinthol having 43% market share and followed by the Dettol Cool with the market share of 22%.

43% 22% 35%

Market Share

PEARS

Pears launched in India in 1902, exuberates a long heritage of purity and has a pristine quality. With the goodness of glycerin & natural oils, Pears is gentle enough, even for a baby‘s skin and hence recommended by doctors and pediatricians worldwide. It is so pure that you can actually see through it.

Pears is available in three variants - the traditional Pure & Gentle variant, a green variant for oil control and a blue variant for germ protection. The story of this popular soap was first created in 1789 by a young man called Andrew Pears. This is from whom it derived its name.

Major Competitors

HUL Brand

Company

Bath Soap

Brand

Market Share

Pears 75%

Dorcas market

Makers Medimix Glycerin

Soap 14%

Wipro Consumer Ltd. Santoor Glycerin

Soap 11%

Interpretation:

In the glycerin soap segment Pears is the market leader with the market share of 75% followed by the Medimix Glycerin and the Santoor Glycerin with the market share 14% and 11% respectively.

14% 11% 75%

Market Share

MOTI

Moti is India‘s premium brand of soaps during the seventies. Now there is no trace of this brand. Moti originally was a brand of Tata Oil Mills Company (TOMCO). In 1993, TOMCO merged with HLL.

Moti is special soap which has certain differentiation. The first differentiation point is shape. Unlike over soaps which come in cake form, Moti is round soap. Moti is vernacular term for pearl. So the soap is also in the shape of pearl.

Uniqueness is the size of the soap. Moti is a big soap. Often one get bored of the soap and it never quit finish fast.

Moti comes in popular fragrances like Rose (Gulab), Sandal (Chandan). Moti is promoted as premium soap. The soap is expensive and during the eighties, the soap is priced around Rs 25.

Major Competitors

HUL Brand

Company

Bath Soap

Brand

Market Share

Moti 58%

Mysore Sandal Mysore Sandal

Soap 25%

Dorcas Market

Makers Medimix Sandal

Soap 17%

Interpretation:

In the market segment of premium soaps the Moti Soap is playing the role of market leader with the market share of 58% presided by the Mysore Sandal Soap with the market share of 25% having the good quality of bath Soap in premium range.

25%

17% 58%

Market Share

Mysore Sandal Soap Medimix Sandal Soap Moti

DOVE

Since 1993, Indian women have relied on Dove for beautiful skin. Dove is known to be a keeper of promises and has given real products to women world over. To help you enjoy your own brand of beauty. Dove is growing very rapidly year after year. This yr, we took a vow to make women experience the ‗real‘ Dove difference. The face test campaign demonstrates the real proof of its superiority by using face as the torture test. Thousands of women from around the country put their soap, and dove to the test. And they all ended with the same answer – dove made their skin soft.

Major Competitors

HUL Brand

Company

Bath Soap

Brand

Market Share

84%

ITC Fiama De Will

Soap 16%

Interpretation:

In the segment of milk soap Dove has achieved the highest market share i.e. 84% followed by the new entrance in the market i.e. Fiama De Will having the market share of 16%. 16% 84%

Market share

Market Share of HUL’s Bath Soap Products in Wardha

City:

Company

Market Share

Hindustan Unilever Ltd. 45% Godrej Consumer product

Ltd.

11%

Wipro Consumer Ltd 13%

Nirma 3%

Rackitt Benckiser (India) ltd.

6%

ITC 3%

Anchor Health & Beauty Care

3%

Hankel India Ltd 1%

Jonson and Jonson‘s 2%

V V F 5%

Dorcas Market Makers 7%

Hindustan Unilever Ltd is the highly penetrated company in the bath soap market having the highest market share i.e. 45%, followed by the Wipro Consumers Ltd and the Godrage consumer Product Ltd having market share of 13% and 11% respectively. 45% 11% 13% 3% 6% 3% 3% 1% 2% 5% 7% 1%

HUL's Market Share of Bath Soap Products In

Wardha City

Hindustan Unilever Ltd

Godrej Consumer Products Ltd. Wipro Consumer Ltd.

Nirma

Rackitt Benchiser India Ltd. ITC

Anchor Health & Beauty Care Ltd. Hankel India Ltd.

Jonson & Jonson VVF

Dorcas Market Makers Maysor Sandal soap

Need of Study

The term consumer behavior refers the behavior that consumers display in the searching for purchasing, using, evaluating and disposing of product and services that they expect, will satisfy their needs. Consumer is highly complex individuals, subject to a variety of psychological needs and buying behavior. Need and priorities of the different consumers segment differ effectively.

This project has been undertaken to understand the consumer behavior towards different bathing soaps which are of different Brands. There is a wide range of use of bathing soaps to take bath everywhere. How many bathing soaps are in the market especially in non urban area and up to what limit popular product of bathing soaps has been able to compete to the local product in terms of QUALITY, QWANTITY…or INSPIRATION FACTOR to accept buying decision. How the People use a particular bathing soaps and how they show their attitude towards different bathing soaps and why?

Objectives of Study

1. To know about various brands of bath soaps of Hindustan Unilever Ltd. & their survival in the market.

2. To study the competition held in the bath soap market for Hindustan Lever Ltd.

3. To know about the customers perception while purchasing the bath soap product.

4. To determine the demand of customers.

5. To know about the performance of popular brands of different companies in the market.

Hypothesis of Study

a. Customers prefer the bath soap product on the basis of the advertisement and the promotional activities of the companies.

b. Buyers choose the brands on the basis of their income and choice.

c. Hindustan Unilever Ltd. is the highly penetrated company in bath soap brands having highest market share.

Research Methodology

A research methodology is the arrangement of condition for collection and analysis of data in a manner that to, combine relevance to research purpose with economy in procedure.

Research Design:

Research Design is conceptual structure within which research is conducted. It constitutes the blue print of collection, measurement and analysis of data. Research design is needed because it facilitates the smooth sailing of various research operations, thereby making research as efficient as possible yielding maximum information wi th minimum time, effort and money. Research Design stands for advance planning of methods to be used for collecting relevant data and techniques to be used in the analysis. The design helps researcher to organize his ideas whereby it will be possible for him to look for flaws and inadequacies. Research design is purely and simply the framework plans for study that guides the collection and analysis of data. There are three major types of research design, i.e., exploratory research design, descriptive research design and experimental research design. This study is basically exploratory analysis type.

Exploratory research

The idea gets deeper insight into competition in the bath soap market and to get buying behavior of consumers. In order to address above-mentioned objectives (I) study of secondary sources was carried out from internet, books, and Magazines (II) structured questionnaire was designed to seek consumer responses.

Descriptive research

The data is analyzed, which was collected.

Target population

The target population for ―A Comprehensive Study of Bath Soap Market and Analysis of Buyer Behavior to Purchase the Bath Soap Product – With Special Reference to Hindustan Unilever Ltd.‖ is - Consumers, from different economical & demographical background, which are purchasing & using bath soaps.

Collection of data

The data has collected from primary & secondary sources.

Secondary Data

The main aim of the project is to analyze the competition in occupying market shares of various bath soap brands as compare to the brand of the HUL and the consumer‘s buying behavior of bath soap products. Therefore it is necessary to get considerable information about the competing brands. For this I have gone through a lot of secondary data. A lot of issues of Business Today, Economic Times were consulted. Books, magazines, internet, news papers, journals, company information both internal and external by company magazines, data and bulletins related to the project topic.

Primary data

A survey was conducted through structured questionnaire. The study was done among consumers who are using bath soap and conducted personal interview for collecting the required information. It is original data, first hand and for the specific purpose of the research project. For this project, I have used the following common research instruments.

1. Questionnaire:

Questionnaire development is the critical part of primary data collection job. For this I have prepared a questionnaire in such a way that it is able to collect all relevant information regarding the project. In this questionnaire, I have used mostly close-ended questions that are easier to be answered by respondents (consumers) and also easier for interpretation and tabulation and some open-ended question to take the opinion of the respondents in their own words. The questions were asked to the consumers covering perception towards their purchase, price of the product, purpose for using the product, characteristic of the product, brand image, effectiveness of the advertisements, sales promotional activities, overall opinion about the product, etc.

For collecting the answers from the above questionnaire, I have used the following common methods.

2. Interview:

It is the most common method for contacting consumers and collecting primary data. For this project I have used following type of interview:-

a. Personal interview:

It is the most extensively used method. It enables better control of the sample and ensures answers from the respondents. It also provides for a tactful approach to the respondent since it is based on a person-to-person talk. But this method is generally more expensive and time consuming.

I have used this technique to get the information of other competitor‘s brands of bath soap from retailers such as their availability in the shop and their market share in Wardha city.

For this project each interview was taking 15 to 20 minutes to complete. Interview was also delayed due to un-availability of respondent in shops.

b. Telephonic Interview

Telephonic interview is conducted for collecting the company‘s information from the company‘s Sales Executive who is handling the sales of Wardha city or who has known about the bath soap brands of HUL of the wardha city. Company person was always on tour so it was not possible to conduct the personal interview with them. So all the information related to the company and bath soap brands is collected by the telephonic interview.

Sampling

Sample unit

Consumers using the bath soap.

Sample plan

The selection of the samples is done following the two sampling techniques, which are:

- Simple random sampling - Convenience sampling

Sample Location:

Consumers of bath soap in Wardha city.

Sample size

Customers-100 (Both male & female) Retailers – 20 (All type of retail stores)

Scope of Study:

The geographical scope of the study was restricted to the Wardha city due to time and resource constraints. The study being exploratory in nature, the sample size was restricted to 100 consumers and 20 retailers. In this study only bath soaps segment and the customers of bath soaps are considered.

Buyer Behavior

The aim of marketing is to meet and satisfy target customers‘ needs and wants. The field of consumer behavior studies how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. Understanding consumer behavior is never simple, because customers may say one thing but do another. They may not be in touch with their deeper motivations, and they may respond to influences and change their minds at the last minute.

Still, all marketers can profit from understanding how and why consumers buy. For example, Whirlpool‘s staffs anthropologists go into people‘s homes, observe how they use appliances, and talk with household members. Whirlpool has found that in busy families, women are not the only ones doing the laundry. Knowing this, the company‘s engineers developed color-coded washer and dryer controls to make it easier for kids and men to pitch in.

In fact, not understanding your customer‘s motivations, needs, and preferences can lead to major mistakes. This is what happened when Kodak introduced its Advanta camera—a costly bust. The company proudly touted it as a high-tech product, but the marketplace was dominated by middle-aged baby-boomers. In midlife, fancy new technology generally loses its appeal, and simplicity begins to edge out complexity in consumer preferences, so Advanta sales did not skyrocket.

Such examples show why successful marketers use both rigorous scientific procedures and more intuitive methods to study customers and uncover clues for developing new products, product features, prices, channels, messages, and other marketing-mix elements. This project explores individual consumers‘ buying dynamics.

Factors Influencing Buyer Behavior

The starting point for understanding consumer buying behavior is the stimulus response model. As this model shows, both marketing and environmental stimuli enter the buyer‘s consciousness. In turn, the buyer‘s characteristics and decision process lead to certain purchase decisions. The marketer‘s task is to understand what happens in the buyer‘s consciousness between the arrival of outside stimuli and the buyer‘s purchase decisions. As this model indicates, a consumer‘s buying behavior is influenced by cultural, social, personal, and psychological factors.

1. Cultural Factors Influencing Buyer Behavior

Culture, subculture, and social class are particularly important influences on consumer buying behavior.

 Culture. : Culture is the most fundamental determinant of a person‘s wants

and behavior. The set of basic values, beliefs, norms, and associated behaviors that are learned by a member of society.

 Subculture: Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Subcultures include nationalities, religions, tribal groups, and geographic regions. Many subcultures make up important market segments, leading marketers to tailor products and marketing programs to their needs.

 Social class.: Social classes are relatively homogeneous and enduring divisions in a society. They are hierarchically ordered and their members share similar values, interests, and behavior. Social classes reflect income as well as occupation, education, and other indicators. Those within each social class tend to behave more alike than do persons from different social classes. Also, within the culture, persons are perceived as occupying inferior or superior positions according to social class. Still, individuals can move from one social class to another—up or down—during their lifetime. Because social classes often show distinct product and brand preferences, some marketers focus their efforts on one social class.

2. Social Factors Influencing Buyer Behavior

In addition to cultural factors, a consumer‘s behavior is influenced by such social factors as reference groups, family, and social roles and statuses.

 Reference Groups: Reference groups consist of all of the groups that have a direct (face-to-face) or indirect influence on a person‘s attitudes or behavior. Groups that have a direct influence on a person are called membership

groups. Some primary membership groups are family, friends, neighbors, and

co-workers, with whom individuals interact fairly continuously and informally. Secondary groups, such as professional and trade-union groups, tend to be more formal and require less continuous interaction. Reference groups expose people to new behaviors and lifestyles, influence attitudes and self-concept, and create pressures for conformity that may affect product and brand choices.

People are also influenced by groups to which they do not belong.

Aspirational groups are those the person hopes to join; dissociative groups

are those whose values or behavior an individual rejects.

Although marketers try to identify target customers‘ reference groups, the level of reference-group influence varies among products and brands. Manufacturers of products and brands with strong group influence must reach and influence the opinion leaders in these reference groups. An opinion leader is the person in informal product related communications who offers advice or information about a product or product category. Marketers try to reach opinion leaders by identifying demographic and psychographic characteristics associated with opinion leadership, identifying the preferred media of opinion leaders, and directing messages at the opinion leaders. For example, the hottest trends in teenage music and fashion start in America‘s inner cities, and then spread to youth in the suburbs. As a result, clothing companies that target teens carefully monitor the style and behavior of urban opinion leaders.

 Family: The family is the most important consumer-buying organization in society, and it has been researched extensively. The family of orientation consists of one‘s parents and siblings. From parents, a person acquires an orientation toward religion, politics, and economics as well as a sense of personal ambition, self-worth, and love. A more direct influence on the everyday buying behavior of adults is the family of procreation—namely, one‘s spouse and children.

Marketers are interested in the roles and relative influence of the husband, wife, and children in the purchase of a large variety of products and services. These roles vary widely in different cultures and social classes.

Today, traditional household purchasing patterns are changing, with baby-boomer husbands and wives shopping jointly for products traditionally thought to be under the separate control of one spouse or the other. For this reason, marketers of products traditionally purchased by one spouse may need to start thinking of the other as a possible purchaser.

 Roles and Statuses: A person participates in many groups, such as family, clubs, or organizations. The person‘s position in each group can be defined in terms of role and status. A role consists of the activities that a person is expected to perform. Each role carries a status. A Supreme Court justice has more status than a sales manager, and a sales manager has more status than an administrative assistant. In general, people choose products that communicate their role and status in society. Thus, company presidents often drive Mercedes, wear expensive suits, and drink Chivas Regal scotch. Savvy marketers are aware of the status symbol potential of products and brands.

3. Personal Factors Influencing Buyer Behavior

Cultural and social factors are just two of the four major factors that influence consumer buying behavior. The third factor is personal characteristics, including the buyer‘s age, stage in the life cycle, occupation, economic circumstances, lifestyle, personality, and self-concept.

 Age and Stage in the Life Cycle: People buy different goods and services over a lifetime. They eat baby food in the early years, most foods in the growing and mature years, and special diets in the later years. Taste in clothes, furniture, and recreation is also age-related, which is why smart marketers are attentive to the influence of age.

Similarly, consumption is shaped by the family life cycle. The traditional family life cycle covers stages in adult lives, starting with independence from parents and continuing into marriage, child-rearing, empty-nest years, retirement, and later life. Marketers often choose a specific group from this traditional life-cycle as their target market. Yet target households are not always family based: There may be single households.

Some recent research has identified psychological life-cycle stages. Adults experience certain ―passages‖ or ―transformations‖ as they go through life. Leading marketers pay close attention to changing life circumstances— divorce, widowhood, remarriage—and their effect on consumption behavior.

 Occupation and Economic Circumstances: Occupation also influences a person‘s consumption pattern. A blue-collar worker will buy work clothes and lunchboxes, while a company president will buy expensive suits and a country club membership. For this reason, marketers should identify the occupational groups that are more interested in their products and services, and consider specializing their products for certain occupations.

In addition, product choice is greatly affected by a consumer‘s economic circumstances: spendable income (level, stability, and time pattern), savings and assets (including the percentage that is liquid), debts, borrowing power, and attitude toward spending versus saving. Thus, marketers of income-sensitive goods must track trends in personal income, savings, and interest

rates. If a recession is likely, marketers can redesign, reposition, and reprise their products to offer more value to target customers.

 Lifestyle: People from the same subculture, social class, and occupation may actually lead quite different lifestyles. A lifestyle is the person‘s pattern of living in the world as expressed in activities, interests, and opinions. Lifestyle portrays the ―whole person‖ interacting with his or her environment.

Successful marketers search for relationships between their products and lifestyle groups. For example, a computer manufacturer might find that most computer buyers are achievement-oriented. The marketer may then aim its brand more clearly at the achiever lifestyle.

 Personality and Self-Concept: Each person has a distinct personality that influences buying behavior. Personality refers to the distinguishing psychological characteristics that lead to relatively consistent and enduring responses to environment. Personality is usually described in terms of such traits as self-confidence, dominance, autonomy, deference, sociability, defensiveness, and adaptability.

Personality can be useful in analyzing consumer behavior, provided that personality types can be classified accurately and that strong correlations exist between certain personality types and product or brand choices. For example, a computer company might discover that many prospects show high self-confidence, dominance, and autonomy, suggesting that computer ads should appeal to these traits.

Self-concept (or self-image) is related to personality. Marketers often try to

develop brand images that match the target market‘s self-image. Yet it is possible that a person‘s actual self-concept (how he/she views himself/herself) differs from his/her ideal self-concept (how he/she would like to view himself/herself) and from his/her others-self-concept (how he/she thinks others see him/her). Which self will he/she try to satisfy in making a purchase? Because it is difficult to answer this question, self-concept theory has had a mixed record of success in predicting consumer responses to brand images.

4. Psychological Factors Influencing Buyer Behavior

Psychological factors are the fourth major influence on consumer buying behavior (in addition to cultural, social, and personal factors). In general, a person‘s buying choices are influenced by the psychological factors of motivation, perception, learning, beliefs, and attitudes.

 Motivation: A person has many needs at any given time. Some needs are

biogenic; they arise from physiological states of tension such as hunger, thirst,

discomfort. Other needs are psychogenic; they arise from psychological states of tension such as the need for recognition, esteem, or belonging. A need becomes a motive when it is aroused to a sufficient level of intensity. A

motive is a need that is sufficiently pressing to drive the person to act.

 Perception: A motivated person is ready to act, yet how that person actually acts is influenced by his or her perception of the situation. Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. Perception depends not only on physical stimuli, but also on the stimuli‘s relation to the surrounding field and on conditions within the individual. The key word is individual. Individuals can have different perceptions of the same object because of three perceptual processes: selective attention, selective distortion, and selective retention.

 Selective attention: People are exposed to many daily stimuli such as ads; most of these stimuli are screened out—a process called selective

attention. The end result is that marketers have to work hard to attract

consumers‘ attention. Through research, marketers have learned that people are more likely to notice stimuli that relate to a current need, which is why car shoppers notice car ads but not appliance ads. Furthermore, people are more likely to notice stimuli that they anticipate—such as foods being promoted on a food Web site. And people are more likely to notice stimuli whose deviations are large in relation to the normal size of the stimuli, such as a banner ad offering Rs.50 (on just Rs. 42) off a product‘s list price.

 Selective distortion: Even noticed stimuli do not always come across the way that marketers intend. Selective distortion is the tendency to twist information into personal meanings and interpret information in a way that fits our preconceptions. Unfortunately, marketers can do little about selective distortion.

 Selective retention: People forget much that they learn but tend to retain information that supports their attitudes and beliefs. Because of

selective retention, we are likely to remember good points mentioned

about a product we like and forget good points mentioned about competing products. Selective retention explains why marketers use drama and repetition in messages to target audiences.

 Learning: When people act, they learn. Learning involves changes in an individual‘s behavior that arise from experience. Most human behavior is learned. Theorists believe that learning is produced through the interplay of drives, stimuli, cues, responses, and reinforcement. A drive is a strong internal stimulus that impels action. Cues are minor stimuli that determine when, where, and how a person responds.

Suppose you buy an IBM computer. If your experience is rewarding, your response to computers and IBM will be positively reinforced. Later, when you want to buy a printer, you may assume that because IBM makes good computers, it also makes good printers. You have now generalized your response to similar stimuli. A countertendency to generalization is

discrimination, in which the person learns to recognize differences in sets of

similar stimuli and adjust responses accordingly. Applying learning theory, marketers can build up demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement.

 Beliefs and Attitudes: Through doing and learning, people acquire beliefs and attitudes that, in turn, influence buying behavior. A belief is a descriptive thought that a person holds about something. Beliefs may be based on knowledge, opinion, or faith, and they may or may not carry an emotional charge. Of course, manufacturers are very interested in the beliefs that people have about their products and services. These beliefs make up product and brand images, and people act on their images. If some beliefs are wrong and inhibit purchase, the manufacturer will want to launch a campaign to correct these beliefs.

Particularly important to global marketers is the fact that buyers often hold distinct beliefs about brands or products based on their country of origin. Studies have found, for example, that the impact of country of origin varies with the type of product. Consumers want to know where a car was made but not where lubricating oil came from. In addition, attitudes toward country of origin can change over time; Japan, for instance, had a poor quality image before World War II.

A company has several options when its products‘ place of origin turns off consumers. The company can consider co-production with a foreign company that has a better name. Another alternative is to hire a well-known celebrity to endorse the product or the company can adopt a strategy to achieve world-class quality in the local industry.

THE CONSUMER BUYING DECISION PROCESS

Marketers have to go beyond the various influences on buyers and develop an in-depth understanding of how consumers actually make their buying decisions. Specifically, marketers must identify who makes the buying decision, the types of buying decisions, and the stages in the buying process.

Buying Roles

Marketers can identify the buyer for many products easily. In the India, men normally choose their shaving equipment, and women choose their cosmetics. Still, marketers must be careful, because buying roles can change. After the giant British chemical firm ICI discovered that women made 60 percent of the decisions on the brand of household paint, it began advertising its deluxe brand to women.

We can distinguish five roles that people might play in a buying decision. An

initiator first suggests the idea of buying the product or service. An influence is the

person whose view or advice influences the decision. A decider actually decides whether to buy, what to buy, how to buy, or where to buy. A buyer makes the actual purchase, while a user consumes or uses the product or service.

Buying Behavior

Marketers also need to be aware that consumer decision making varies with the type of buying decision. The decisions to buy toothpaste, a tennis racket, a personal computer, and a new car are all very different. In general, complex and expensive purchases are likely to involve more buyer deliberation and more participants.

 Complex buying behavior: applies to high-involvement products such as personal computers. Buyers may not know what attributes to consider in these products, so they do research. Knowing this, marketers can help educate buyers about product attributes, differentiate and describe the brand‘s features, and motivate store personnel and others to influence the final brand choice.

 Dissonance-reducing buyer behavior: applies to high-involvement products such as carpeting. Carpeting is expensive and self-expressive, yet the buyer may consider most brands in a given price range to be the same. After buying, the consumer might experience dissonance after noticing certain disquieting features or hearing favorable things about other brands. Marketers should therefore supply beliefs and evaluations that help consumers feel good about their brand choices.

 Habitual buying behavior: applies to low-involvement products such as salt. Consumers keep buying the same brand out of habit, not due to strong brand loyalty, because they are passive recipients of information conveyed by advertising. Ad repetition creates brand familiarity rather than brand