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CLAUDIA MANISHA
[COMPANY NAME]
Marketing
Research
Lifebuoy Vs Dettol
contents
CHAPTER 1 : SECONDARY LITERATURE
AN INTRODUCTION TO MARKETING RESEARCH:
Marketing research is "the process or set of processes that links the consumers,
customers, and end users to the marketer through information information used to identify
and define marketing opportunities and problems; generate, refine, and evaluate marketing
actions; monitor marketing performance; and improve understanding of marketing as a
process. Marketing research specifies the information required to address these issues,
designs the method for collecting information, manages and implements the data collection
process, analyses the results, and communicates the findings and their implications. It is the
systematic gathering, recording, and analysis of qualitative and quantitative data about
issues relating to marketing products and services. The goal of marketing research is to
identify and assess how changing elements of the marketing mix impacts customer
behaviour. The term is commonly interchanged with market research; however, expert
practitioners may wish to draw a distinction, in that market research is concerned specifically
with markets, while marketing research is concerned specifically about marketing processes.
Marketing research is often partitioned into two sets of categorical pairs, either by target
market:
Thus, marketing research may also be described as the systematic and objective
PRODUCT:
A product is the item offered for sale. A product can be a service or an item. It can be physical or
in virtual or cyber form.
Definition: A product is the item offered for sale. A product can be a service or an item. It can be
physical or in virtual or cyber form. Every product is made at a cost and each is sold at a price.
The price that can be charged depends on the market, the quality, the marketing and the
segment that is targeted. Each product has a useful life after which it needs replacement, and a
life cycle after which it has to be re-invented. In FMCG parlance, a brand can be revamped, re-
launched or extended to make it more relevant to the segment and times, often keeping the
product almost the same.
Description: A product needs to be relevant: the users must have an immediate use for it. A
product needs to be functionally able to do what it is supposed to, and do it with a good quality.
A product needs to be communicated: Users and potential users must know why they need to
use it, what benefits they can derive from it, and what it does difference it does to their lives.
Advertising and 'brand building' best do this.
A product needs a name: a name that people remember and relate to. A product with a name
becomes a brand. It helps it stand out from the clutter of products and names.
A product should be adaptable: with trends, time and change in segments, the product should
lend itself to adaptation to make it more relevant and maintain its revenue stream.
Product Research:
component of market research whereby the characteristic of a good or service, that will satisfy a
recognized need or want are identified.
Marketing research that yields information about desired characteristics of the product or service.
research that gathers and analyses information about the moving of good or services from
producer to consumer.
INTRODUCTION TO SOAP
1.1 SOAPS
Soaps are useful for cleaning because soap molecules have both hydrophilic end,
which dissolves in water, as well as a hydrophobic end, which is able to dissolve
nonpolar grease molecules. Although grease will normally adhere to skin or
clothing, the soap molecules can form micelles which surround the grease
particles and allow them to be dissolved in water. The hydrophobic portion (made
up of a long hydrocarbon chain) dissolves dirt and oils, while the ionic end
dissolves in water. Therefore, it allows water to remove normally-insoluble matter
by emulsification.
Traditionally, soap has been manufactured from alkali (lye) and animal fats
(tallow), although vegetable products such as palm oil and coconut oil can be
substituted for tallow. American colonists had both major ingredients of soap in
abundance and so soap making began in America during the earliest colonial
days. Tallow came as a by-product of slaughtering animals for meat, or from
whaling. Farmers produced alkali as a by-product of clearing their land; until the
nineteenth century wood ashes served as the major source of lye. The soap
manufacturing process was simple, and most farmers could thus make their own
soap at home.
The major uses for soap were in the household, for washing clothes and for toilet
soap, and in textile manufacturing, particularly for filling , cleansing, and
scouring woollen stuffs. Because colonial America was rural, soap making
remained widely dispersed, and no large producers emerged.
The growth of cities and the textile industry in the early nineteenth century
increased soap usage and stimulated the rise of soap making firms. By 1840,
Cincinnati, then the largest meatpacking centre in the United States, had
become the leading soap-making city as well. The city boasted at least
seventeen soap factories, including Procter and Gamble (established 1837),
which was destined to become the nation's dominant firm. A major change in
soap making occurred in the 1840s when manufacturers began to replace lye
made from wood ashes with soda ash, a lye made through a chemical process.
Almost all soap makers also produced tallow candles, which for many was their
major business. The firms made soap in enormous slabs, and these were sold to
grocers, who sliced the product like cheese for individual consumers. There were
no brands, no advertising was directed at consumers, and most soap factories
remained small before the Civil War.
The period between the end of the Civil War and 1900 brought major changes to
the soap industry. The market for candles diminished sharply, and soap makers
discontinued that business. At the same time, competition rose. Many soap
makers began to brand their products and to introduce new varieties of toilet
soap made with such exotic ingredients as palm oil and coconut oil. Advertising,
at first modest but constantly increasing, became the major innovation. In 1893
Procter and Gamble spent $125,000 to promote Ivory soap, and by 1905 the
sales budget for that product alone exceeded $400,000. Advertising proved
amazingly effective.
(2) Lever Brothers, an English company that developed a full line of heavily
advertised soaps in the nineteenth century and in 1897 and 1899 purchased
factories in Boston and Philadelphia; and
(3) Procter and Gamble. In 1940 the "big three"Colgate, Lever, and Procter and
Gamble controlled about 75 percent of the soap market.
The following ingredients are often used in hand dishwashing soaps and
detergents; not all products contain all ingredients.
Cleaning Agents/Surfactants lift dirt and soil and produce good grease-
cutting capability.
Stability and Dispensing Aids keep the product consistent under
varying storage conditions and provide desirable dispensing
characteristics.
Mildness Additives may include moisturizing agents, certain oils and
emollients, certain protein compounds, or other neutralizing or
beneficial ingredients.
Fragrance is added to produce a pleasant or distinctive scent.
Preservatives help prevent any microbiological growth in the product
that could cause colour or odor change, poor performance and/or
separation of the ingredients.
Colorants are added to lend individuality and an appealing appearance
to the product.
Enzymes help break down tough stains and burned-on soils.
Encapsulates deliver stability for special materials/additives (e.g.,
moisturizer or fragrance).
Soap is a product that many people might take for granted or consider rather
ordinary, but for some, lathering up can be a treasured part of a morning or
nightly routine.
Scented or unscented, in bars, gels, and liquids, soap is a part of our daily lives.
In the United States, soap is a $1.390 million (US$)* industry with over 50 mass
market brands. But in some markets the sales potential for soap is only
beginning to be realized. At the end 2000, soap was a $1.032 million (US$)*
business in India. IFF's marketing experts offer the following overview of this
growing category.
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
Mr. Jamshedji Tata set up India's first indigenous soap manufacturing unit when
he purchased OK Coconut Oil Mills at Cochin Kerala around 1918. OK Mills
crushed and marketed coconut oil for cooking and manufactured crude cold
process laundry soaps that were sold locally. It was renamed The Tata Oil Mills
Company and its first branded soaps appeared on the market in the early 1930s.
Soap became a necessity for the moneyed class by around 1937.
*Cold process soaps are manufactured by mixing all ingredients (soap base,
perfume, fillers, actives, etc.) in a large pot and heating them up to 70 degrees
while they are stirred manually. Once the mixture is ready, the soap is plodded
based on its size with the logo by a machine. In a machine made soap, the
mixing process is called milling and this is done by a rotary operated machine
and not manually.
METHODOLOGY:
More insight?
How marketers sustain,problem,complaint,middlemen?
Scope of the project:
a) Project was specifically carried out in Hyderabad region.
b) Sample size selected was of 30 respondents.
c) Only health category of soap was selected for the project.
d) Questionnaire was used for primary data collection.
e) For secondary data collection, magazines, newspapers and websites
were used.
RESEARCH METHODOLOGY:
a)Research Design:
The purpose of this study is to gain consumer insights about the soaps
Lifebuoy and Dettol, which are the two main soap brands in health
category.
B) Research Approach:
The respondents will be consumers and users of both soaps who are
interested to co-operate. To collect the data, the in-depth interview
method with the help of questionnaire is used.
C) Sampling method:
The in-depth interview for this study was limited to Hyderabad region
only. Also, it has been mentioned earlier that, the interview was only on
the consumers & users of bath soap. They were interviewed for minimum
of 10 minutes. The sample size was 30 for this study. Random sampling
method was used gor selecting samples.
D) Research Instrument:
Contacting the customer personally and studying the response from
the questionnaire filled.
F) Data Collection:
i) Primary Data:
Questionnaires for in-depth discussions with various respondents to be
interviewed during primary survey were designed during this phases. List
of contacts were also prepared during this phase. This involved in-depth
face-to-face discussions using semi-structured questionnaires with various
respondents. Information was collected through face-to-face interviews
with respondents using semi-structured questionnaires. Questionnaires
were also sent through mail and responses were collected.
ii) Secondary Data:
Taken data from various Magazines, Newspapers &other prominent source
of information collected from different websites and search engines.
COMPANY PROFILE :
LIFEBUOY
Lifebuoy is a product of Hindustan Unilever Ltd., India, which
was earlier called the Unilever ltd. Lifebuoy is actually a brand
which was invented globally before the term 'global branding'
itself was invented. It was invented in 1894 in UK as the royal
disinfectant soap by William Hesketh Lever.
In India Lever brothers introduced Lifebuoy in 1895 with the set
up of offices for sales and marketing in Chennai, Mumbai,
Kolkata and Karachi.
Consistent in Lifebuoy's 110+ year history has been its
championing of health through hygiene. The brand's core
promise of protection and a commitment to support life through
unbeatable protection is at the heart of the brand name itself
Lifebuoy, the guarantee of protection when you are threatened.
While brands have managed to upgrade their image and evolve
together with their consumers Lifebuoy is a great example,
having moved from a carbolic, sweaty association to desirable
health imagery there has been no example of a brand that
has moved to the top of the pole after residing at the bottom.
The re-launch of the soap in 2002, 2004 & again in 2006 have
been turning points in its history.
In 2004, Lifebuoys product offering was revamped with
contemporary packaging and an upmarket look. While that
went down well with existing users, new users were still elusive;
they continued to perceive the product as a cheap soap for
poor people. That perception had to be changed without
alienating the Lifebuoy loyalists. The objective for HUL was to
launch a campaign that helped the soap shed its old-fashioned
image and gain an entry into two million urban households.
Lifebuoy before the end of the first quarter of 2011 was the
leader in soap market in India after which they lost the
competition to Reckitt Benckiser's Dettol. Dettol is now the
market leader with 42% of the market share whereas lifebuoy
has 41% of the market share in the same market.
RANGE OF PRODUCTS:
Bar soaps, body wash, hand wash, talcum powders, hand
sanitizers
Place:
Place in marketing refers to the market and the market
conditions. As far as lifebuoy is considered, it does not have a
very strong influence in the market. In the initial days the
target customers of lifebuoy were only the people who require
cost-efficiency soap as a necessity. Later on they developed
themselves into a company who is ready to deliver products to
almost all range of customers in the industry itself. The
diversification of products helped them in increasing their
customer base heavily even though they have not diversified
much. The market is the deciding factor and lifebuoy has
complied with it and has set pricing its strategy. The fact is that
Dettol has diversified in such a way that there is a need for
their products in different varying market conditions but
lifebuoy is not that much adoptable to market conditions but
lifebuoy has been constantly performing even in changing
market conditions. When speaking about the market conditions,
the influence of economics has to be taken into consideration.
Since Dettol is safely into FMCG sector, the effect of economy
on the product is comparatively less.
Promotion:
Lifebuoy as a company, in early stages when they had a very
huge market share were not concentrating in advertisements
and promotions even though there were a few. And later on
when they started feeling the heat of the competition, they
started creating innovative ads and TV commercials. But if u
follow the ads of lifebuoy u can easily say that they are little bit
bullish. And because of this once in 2008 they were fined for
telecasting an ad which directly criticized the use of their most
potential competitor- Dettol. And they ended up paying some
amount to the court as well as Dettol as a compensation. And
one more important thing about lifebuoy is that they were the
1st to start this- global hand wash day ad campaign but
however they finally lost the game to Dettol in this as Dettol
launched each day is a hand wash day concept. And lifebuoy
has been in CSR activities such as supplying bathing bars in
time of natural crises and calamities and they are also doing
some good educational trust activities which has increased the
trust value of the brand and lifebuoy has been very inconsistent
in maintaining a tag line or punch line for their brand.
Range of Products:
Healthy kitchen gels, Antiseptic liquid, Bar soaps, Liquid hand-
wash, No touch hand wash, Hand sanitizer, Body wash, Shaving
cream, Medicated plaster.
Price:
Pricing is one area where Dettol has been consistent. All their
brand products had a very good premium pricing strategy,
which led them into fierce price wars with other able
competitors like lifebuoy and savlon and others. Actually the
heavy competition in the sector forced Dettol to reduce their
prices. Now almost they are on the same page with the other
competitors' pricing. And if the market share in this industry
should be studied, it will be impossible to miss out the influence
of pricing in market capitalization. FMCG market is generally a
very price sensitive market and the effects of increase or
decrease in pricing will directly affect the presence of a firm in
the market.
Place:
Place in marketing refers to the market and the market
conditions. As far as Dettol is considered, it has a very strong
influence in the market. In the initial days the target customers
of Dettol were only the people who require antiseptic soap as a
necessity. Later on they developed themselves into a company
who is ready to deliver products to almost all range of
customers in the industry itself. The diversification of products
helped them in increasing their customer base heavily. And it
has been observed that the sale of Dettol is kind of dependent
on market conditions. Say, when there is a change in weather,
in rainy and winter seasons, people start buying more of Dettol
products starting from the antiseptic liquid to the soaps like
Dettol original, and in summers the sale of Dettol products like
Dettol cool and fresh has been observed increasing. The fact is
that Dettol has diversified in such a way that there is a need for
their products in different varying market conditions. When
speaking about the market conditions, the influence of
economics has to be taken into consideration. Since Dettol is
safely into FMCG sector, the effect of economy on the product
is comparatively less.
Promotion:
Promotion is a marketing term which refers to advertising and
endorsement of the product. Dettol's advertisements have
been always emphasizing only on cleanliness and safety. And
the tag line of Dettol is something which every person who has
seen TV will recognize- Be 100% sure. And all the Dettol
ads released so far have never been caught in slandering which
steps on other brands to endorse their own brand. And
moreover, the Dettol initiatives like
Mother's day(skincare), Each day is a global hand-wash day
have captured the attention of viewers and customers and
have also ensured the customers that Dettol is something
which everybody can trust at any time. And these promotions
also held up to the CSR activities of the firm which increased
the trust level. As far as we have studied the case, Dettol has
never been caught for malicious or inexplicit content in
promotion and advertisements.
Comparative analysis of
Dettol on lifebuoy:
Dettol Lifebuoy
1) Reckitt Benckiser product 1)HUL product
2) Has been a prominent brand in the 2) Has been a prominent brand in the
market for more than 50 years market for more than 110 years
3)introduced as a antiseptic soap 3) introduced as a disinfectant soap
4) high brand value and brand 4) high brand value and recognition
recognition
5) has a wide variety of products 5) not that much diversified as that of
Dettol
6) started with premium pricing and 6) price setter in FMCG market for
came down soaps
7) has a very big market share in urban 7) king of rural market
markets
8) recommended by IMA 8) no such recognitions
9)design is sleek and nice 9)modified design to fit in the
competition
10) sales of different products depend 10) not that much market sensitive
upon market conditions.
11) less durable 11) more durable
12) less aggression in advertisements 12) aggressive advertisements and
promotions
13)clean ad strategies 13) fined for delivering slander.
14)good in CSR activities 14) good in CSR activities
15) india's 3rd most trusted brand 15) no such claims but has a huge trust
in rural areas
16) be 100% sure- is the tagline 16) has been using many tag lines.
DATA ANALYSIS:
usage of soaps
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
lifebuoy dettol others
usage
Interpretation:
Response for price of both the brands
70%
60%
50%
40%
30%
20%
10%
0%
lifebuoy dettol
moderate low
Interpretation:
Awareness about the soap
Interpretation:
Impact of Advertisements on buying decision for soaps
70%
60%
50%
40%
30%
20%
10%
0%
lifebuoy dettol
Interpretation: