Study Of Indian Soap Market 1d3pa

INSTITUTE OF PROFESSIONAL EDUCATION & RESEARCH BHOPAL BATCH: 2014-16

A WINTER PROJECT On “COMPARATIVE STUDY OF INDIAN SOAP MARKET”

Submitted by: Ankit Bhardwaj TRIMESTER II

Under the Guidance of Prof. Mahesh Soni

1

ACKNOWLEDGEMENT

I wish to express my gratitude to those who helped me in completion of the project “Comparative study of Indian soap market” in India.

I have received immense guidance from my guide Prof. Mahesh Soni who motivated me to receive enormous amount of input & inspiration at the various stages during my project preparation & also assisted me to make many valuable improvements that helped me to enhance my project. I would like to convey my sincere gratitude to him.

Finally I would like to thank to all the Faculties of Institute of Professional Education & Research (IPER), who ed me in various ways & enlightened me about the valuable information pertaining to my research work.

2

DECLARATION I, ANKIT BHARDWAJ, student of PGDM- Trimester-II, Institute of Professional Education & Research, hereby declare that this project work titled “Comparative study of Indian Soap Market” is based on the research work conducted by me and to the best of my knowledge I have undergone through each and every process required to accomplish the project work in the most effective manner.

BHOPAL

Ankit Bhardwaj

DATE

PGDM (TRIM II)

3

Table of contents Pg.no.

Chapter 1- Introduction

5-7

1.1 Indian FMCG Sector

6

1.2 Characteristics of FMCG

7

Chapter 2-Research Methodology

8-9

2.1 OBJECTIVES

9

2.2 METHODOLOGY

9

Chapter 3-Theoretical Background

10-38

3.1 BRIEF INTRODUCTION

11

3.2 SIZE OF THE INDUSTRY

12

3.3 HUL

13

Chapter 4- Comparison & Data Analysis

39-50

Chapter 5- Findings & Conclusion

51-53

BIBLIOGRAPHY

54

4

Chapter -1

5

INTRODUCTION 1.1 Indian FMCG Sector India’s FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. Its principal constituents are Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess of Rs. 8500 Crores. It is currently growing at double digit growth rate and is expected to maintain a high growth rate. It has a strong MNC presence and is characterized by a well-established distribution network intense competition between the organized and unorganized segments and low penetration cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market value is set to treble from 7200 Crores in 2003 to 33,000 Crores in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin-care, hair wash etc. in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumers ‘upgrading’ in the matured product categories. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in of consumption. At present, urban India s for 66% of total FMCG consumption, with rural India ing for the remaining 34%. However, rural India s for more than 40% consumption in major FMCG categories such as personal 203 care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas. Indian FMCG industry is expected to grow at a base rate of at least 12% annually to become an Rs 4,000 billion industry in 2020, according to a new report by Booz & Company. The Report titled “FMCG Roap to 2020 - The Game Changers” was released at the CII FMCG Forum 2010 in New Delhi Thursday. The Report noted that the positive growth drivers mainly pertain to the robust GDP growth, opening up and increased income in the rural areas of the country, increased urbanization and evolving consumer lifestyle and buying behavior. The report further revealed that if some of the positive factors – driven mainly by improved and ive government policy to remove supply constraints – play out favorably, the industry could even see a 17% growth over the next decade, leading to an overall industry size of ₹ 6,200 Billion by 2020. The last decade has already seen the sector grow at 12% annually as result of which the sector has tripled in size.

6

1.2 Characteristics of FMCG To implement the branding in FMCG successfully, it is necessary to understand the characteristics of this market. The following are the typical characteristics of FMCGs: From the consumers' perspective: 1. Frequent purchase 2. Low involvement 3. Low price From the marketers' perspective: 1. High volumes 2. Low margins 3. Extensive distribution networks 4. High stock turnover

Individual items are of small value. But all FMCG products put together for a significant part of the consumer’s budget. The consumer keeps limited inventory of these products and prefers to purchase them frequently, as and when required. Many of these products are perishable. The consumer spends little time on the purchase decision. Rarely does he/she look for technical specification (in contrast to industrial goods). Brand loyalties or recommendations of reliable retailer/dealer drive purchase decisions. Trail of a new products i.e. brand switching is often induced by heavy ment, recommendation of the retailer or neighbors/friends. These products cater to necessities, comforts as well as luxuries. They meet the demands of the entire cross section of population. Price and income elasticity of demand varies across products and consumers.

7

Chapter-2

8

 Research Methodology 2.1 OBJECTIVES 

Comparative study of Indian Soap Market in respect of Price, Promotion and consumer demands.



To examine the strategies of the selected MNCs of FMCG sector in India. Particularly Personal Care products (Soaps).



To study the consumer preference towards the Indian soap market.

2.2 METHODOLOGY 

The research design chosen is both exploratory and conclusive in nature. This study is done using the secondary data i.e. internet, company’s website, customer’s reviews, articles, previous surveys etc.



This study is restricted only to the Personal care products (Soaps) of FMCG sector in Indian market.

9

Chapter -3

10

 THEORETICAL BACKGROUND INDIAN SOAP MARKET 3.1Brief Introduction Soaps are categorized into men's soaps, ladies' soaps and common soaps. There are few specialty soaps like the Glycerin soaps, sandal soaps, specially flavored soaps, medicated soaps and baby soaps. Specialty soaps are high valued which enjoy only a small share of the market in value . 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 for the Soaps 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. Soap is a product for many people and the lathering up can be a treasured part of a morning or nightly routine. Whether it might be 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 Indian markets the sales potential for soap is only beginning to be realized. At the end of the year 2000, soap was an Rs.80 crore business in India. India is a country with a population of 1.2 billion people. With the household penetration of soaps is 98%. People belonging to different income levels use different brands, which fall under different segments, but all income levels use soaps, making it the second largest category in India. Rural consumers in India constitute 70% of the population. Rural demand is growing, with more and more soap brands being launched in the discount segment targeting the lower socio-economic strata of consumers. Soap manufacturers originally targeted their products to the lowest income strata in urban as well as rural areas, positioning their brands as a way to remove dirt and clean the body. For some brands, that positioning persists even today with a focus on removal of body odor and keeping the healthy. However, soap positioning are moving towards skin care as a valueadded benefit. Soap is primarily targeted towards women, as they are the chief decision-makers in of soap purchase and for Medicated positioning like germ killing and anti-bacterial are marketed to families. About 75% of soap can be bought through the different types of outlets. This is the most common source for buying soap, which usually forms a part of the month's grocery list. Pan-Beedi Shops: These are really small shops, almost like handcarts, and they are primarily set up to dispense cigarettes and chewing tobacco. Total annual soap sales by companies marketing their brands at national or state levels is estimated at 14,000 tonnes of a total soap market considered to be about 126,000 tonnes.

11

3.2 Size of the Industry

The Indian Soap Industry includes about 700 companies with combined annual revenue of about Rs. 105 billion. Major companies in this industry include divisions of P&G, Unilever, and Dial. The Indian Soap Industry is highly concentrated with the top 50 companies holding almost 90% of the market. The market size of global soap and detergent market size was estimated to be around 32M tonne in 2011, which is estimated to grow to 35M tonne in the coming years. Toilet soaps for more than 10% of the total market of soap and detergents. In Asia, the countries like China and India are showing rapid growth in the toilet soap section. Market share of body wash was estimated to be around 4% in 2010 and is showing signs of healthy growth in these markets. India's soap market is Rs 41.75 billion. Indian Soap Industry volume is Rs 4,800-crore. For the purpose of gaining a competitive edge, Indian companies are now relaunching their brands with value-additions to woo consumers across India. For instance, Hindustan Unilever Ltd (HUL) has recently launched a host of toilet soap brands which include Lifebuoy, Lux, Breeze and Liril-with value additions. Also is in the process of rolling out 'Ayush' ayurvedic soap. The aim is to meet the evolving needs of customers. One of the factors which affect the demand of soaps is the penetration, which the products have in market. In case of soaps this has not been a major issue as the penetration in the rural area is as high as 97% and that for urban area is around 99%. Thus approximately the penetration is around 99% for overall India.

12

3.3 HUL

Hindustan Unilever Limited (HUL) is India’s largest fast moving consumer goods company with leadership in Home and Personal Care Products and Foods & Beverages. HUL’s brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians.

If Hindustan Unilever straddles the Indian corporate world, it is because of being single minded in identifying itself with Indian aspirations and needs in every walk of life.

HUL is the market leader with 59% of share followed by Godrej. Other major players’ are Nirma Ltd., Wipro Customer care ltd., Colgate Palmolive Ltd. Henkel Spic India Ltd. The soap market is not only segmented on the basis of price and benefits but even a range of emotions within that outlining frame work. For simplicity soap market can be divided into four categories.

13

1.

Economy/Functional brand

It comprise of 35% of the market. The red carbolic cakes are low price germ killers. The names of few of the functional brands are OK, Nirma bath and Lifebuoy. The prices of this brand soaps range from Rs. 5 to Rs. 8 per 75 Gms. 2.

Popular soaps The biggest share in the soap market, popular soap have a market share of 55%. The price of this category of soaps ranges from Rs. 8-12 for a 75 gm cake. Each soap wants to possess a special benefit like fragrance, freshness etc.

3.

soaps

It comprises of 7% of the total market. brands are priced in Rs. 12-30 range for 75 gm cake. People are willing to pay more for this category of soap and several other brands have special relationship and people. Some of the brand rolling market once Cinthol ultimate, Lux International, Palmolive extra care, Le Sancy, Dettol, etc. to name a few. 4.

Super soaps:

This category soap is the tiniest part in the soap market and have a share of only 24% of the total soap market. The price range starts from Rs. 30 and above for 75 gm.

14

Market Share (Soap)

3% 7% Economy

35%

Popular Super

55%

The economy soap constitute 35% of market share, popular soap constitute major portion of market share, 55% then and super constitute 7% and 3% respectively.

15

Segmentation of soap on the basis of price

4% 10% Rs. 5-8 Functional

43%

Rs. 9-12 Popular 43%

Rs. 13-30 Rs. 30 above supre

From the above figure, it is very much clear that most of the toilet soaps available in India fall into the category of popular and soaps, both of these groups s 43%, functional soaps s 10% and there is small percentage for the super- soaps.

16

List of soaps with their segments and prices (Prices 75-100 gms.)

Functional /Economy

Popular



Super

Rs. 5-8

Rs. 9-12

Rs. 13-30

Rs. 31 and above

Breeze

Nima

Palmolive Extra

Dove

Jai

Medimix

Lux Skin Care

Palmolive Natural

Hamam

Pears

Lifebuoy

Rexona

Nevia

Borosoft

Denim

Margo

Fa

Liril

Neem

Fair Glow

17

Segmentation of soap on the basis of TFM (Total Fatty Matters) contents

4% 10% Rs. 5-8 Functional Rs. 9-12 Popular 43%

Rs. 13-30 43%

Rs. 30-above Super

TFM 60-65%

TFM 66-70%

TFM 71-75%

TFM 76-80%

Medimix

Jai

Breeze

Dove

Palmolive natural

Lux

Hamam

Nima

Lifebuoy

Neem

Rexona

Fairglow

18

Lifebuoy gold

Borosoft

Liril

Dettol

Pears

Cinthol

Denim

Nevia

Lux Skin Care

Palmolive Extra care

Park avenue

Aramusk

Fa

19

People who wants natural products 

Medimix



Hamam



Margo



Neem



Rexona



Borosoft



Palmolive

Soaps which are general to all 

Dettol



Hamam



Margo



Lifebuoy

20

Soaps which were launched specially for men 

Cinthol



Park Avenue

For women specially 

Lux skin care



Pears



Nevia



Dove



Palmolive extra care



Fairglow



Rexona



Nima



Borosoft



Breeze

21

INDIAN SOAP BRANDS

22

HUL

Breeze scent magic is the soap which fulfills the aspirations of women of rural India. Breeze has offered them ‘beauty at an affordable price, making them look and feel beautiful.

Research and consumer visits have shown that the desire for great fragrance featured highest in the daily beauty regime of discount soap s. Breeze explores this through the proposition of scent in a soap scent ka kamala, ab sabun mein’ and explicitly propagates the brand promise of the Hameshaa Kuch extra. It delivers all this and still matches consumer’s needs in of price and quantity offered staying true to its word.

Breeze has been enriched with 19 special scent oils, which ensure that one smells good for a long time though the day. Introduced in variants like scent magic, scent magic lime, and scent magic sandal, Breeze strives towards fulfillment the company’s mission of being inventive in creating value.

23

Brand Name: Breeze About the Brand: Originally launched in 1989, Breeze is today perceived to be a good value for money brand – with outstanding sensory experience. Its strengths are its fragrance, lather and the soft feeling it has on the skin. Target: Breeze is a mass market soap that sells in the economy segment. It targets to the people who wants to feel fragrance during the bath. Positioning: Breeze is positioned for her who considered it as more than just soap. It is, in fact, her beauty aid, her only cosmetic, and one that she can afford. She regards Breeze as her only way of fulfilling her dream of looking beautiful.

24

Brand Name: - Dove About the Brand:-Dove soap, which was launched by Uniliver in 1957, has been available in India since 1995. It provides a refreshingly real alternative for women who recognize that beauty is not simply about how you look, it is about how you feel. Target: - It targets specially women of rich class. Positioning: - Dove is being positioned as an alkaline substance free soap with one fourth moisturizer for highly sensitive skin. Price: - Rs. 45 (100gms.) Advertising objective: - to influence the rich women who wants moisturizer not the soaps. ment strategy: - It project itself as not a soap but as moisturizer. Sales promotion: - Rs. 10 off. Available range & size: 100 gms

25

Brand Name: HAMAM

About the Brand: It is a product from HUL Target: It targets to the middle class Indian Family. Positioning: It positioned as a family soap with natural ingredients. Price: Rs. 10 (100 gms) Advertising objective: It is to emphasis on the natural quality of the soap. ment Strategy: It project as a natural product for every Indian middle class family. Sales Promotion: No scheme Available range & size: 100 gms

26

Brand Name: Lifebuoy

About the Brand: Launched in the year 1895, Lifebuoy, for over a 100 years, has been synonymous with health and value. Target: The new Lifebuoy is targeted at today’s discerning housewife with a more inclusive “family health protection for my family and me” positioning. Positioning: Lifebuoy has made a deliberate shift from the male, victorious concept of health to a warmer, more versatile, more responsible benefit of health for the entire family. Brand Name: Lifebuoy International Gold About the Brand: The brand was launched by Hindustan Level Ltd. This soap is not a red carbolic soap as Lifebuoy normally is. Target: It targets to the every Indian family starting middle class. Positioning: It positioned as a family a soap

27

Price: Rs. 10. ment strategy: The strategy they followed was to emphasis on the quality aspect of the soap as well as the colour of the soap as it is totally a white in colour.

28

Brand Name: Lux

About the Brand: Lux is one the biggest brands in the soap category. Lux was launched in India in the year 1905. A unique soap, which protects the skin’s fairness against darkening by the sun. Target: Lux targets the women of age group of 15-40 who are more concerned about taking care of skin and wants dazzling skin. It targets at the women from the middle class and above. In short, Lux has worked it charm on millions of women making their dreams of beauty come true. Positioning: Lux wants to position itself as the beauty care product for women, which gives them glowing skin and will help in taking care of different type of skin. Lux positions as a Filmi Sitaron ka Soundarya Sabun” Price: 14 Advertising objective: The advertising objectives of HUL for Lux are to cover vast area (whole of India) and influence women from 350 million middle class family to use Lux according to the type of skin for radiance or glowing skin.

29

ment Strategy: The advertising agency responsible for Lux is HTA. The main aim of HTA is to project Lux as a product for dreamy women who have her skin glow like a film Stars after her bath. The recent model for this ment is Aishwarya Rai.

30

Brand Name: Pears

About the Brand: It is product from Hindustan Liver Limited Target: It basically target to women from age group 15-45 Positioning: It positions as a clear soap as it contains glycerin Price: Rs. 19.50 (75 gms) Advertising objective: The objective is to popularize the brand ment Strategy: The strategy they took was to project pears as a soap which contains “Kuch nehin” mean no harmful chemical. Sales Promotion: Buy 3 pears and save Rs. 8.50 Available Range & Size: 75 gms.

31

OTHER COMPETITORS

32

Brand Name: PALMOLIVE MOISTURE CARES

About the Brand: Palmolive is a product from stable of Colgate – Palmolive Company. Introduce in 1998 and it was able to capture a market share of 11% of the total market in the urban area a mainly metro and semi-metro. Target: Palmolive moisture care aiming at upper middle class women and above. It target women from age group of 15-40. Positioning: Endorsed by Famina Miss India (Top model) it positioned as the extra skin care taker, i.e. for different skin, different soaps are used. Price: Rs. 14.50 (75 gms) Advertising objective: The ment objective of Colgate Palmolive Ltd. was to popularize the brand and to influence the upper middle class women of urban and semi-urban area. Available Range & Size: Palmolive extra care green for normal skin Palmolive extra care white for dry skin, Palmolive extra care pink for oily skin. (75 gms and 125 gms).

33

Brand Name: Santoor

About the Brand: The strength of Santoor soap is its mild fragrances. Target: It targeted the women class from middle class and upwards. Positioning: It position as a soap for women. Price: Rs. 18 Advertising objective: The advertising objective of Wipro consumer care is to influence the women. ment Strategy: The ment strategy is to present Santoor as a soap for women who wants soft and glowing skin. Sales Promotion: Buy 3 and get 1 free. Available Range & Size: 100 gms

34

Brand Name: Dettol

About the Brand: It is a product from Reckitt Benckiser. Ltd. Target: It targets every upper Indian middle class family. Positioning: It positioned as a soap which makes family “Surakshit” Advertising objective: It is to present Dettol as a product for skin security. ment Strategy: Emphasis on Suraksha part of dettol, i.e. “dettol suraksha” Sales Promotion: No scheme.

Available Range & Size: 125 gms

35

Brand Name: NIRMA

About the Brand: It is the product from Nirma Ltd. Target: It caters to the needs of women of age group of 16-30. Positioning: It positioned as a soap for women. Price: Rs. 10 Advertising Objective: To attract the women from middle class and upward family. ment Strategy: Strategy was to project the soap that could make women more beautiful and feel young. Sales Promotion: No scheme Available Range & Size: Nirma Rose, Nima Sandal (100 gms)

36

Brand Name: FIAMA DI WILLS

About the Brand: Launched on September 15, 2007, the brand was the second to roll out of ITC’s personal care stable. Its USP is the blend of "nature and science" across its portfolio of products, resulting from four years of intensive research at the ITC Research and Development Centre in Bangalore Target: It targets to the women who likes to take care of her skin by intense moisturizer. It targets women of age group from 15-35. Positioning: Position as soap with natural ingredients. Advertising Objective: to influence the women who want star gazing. ment Strategy: Promote Wills Lifestyle Fashion Week 2010 was also sponsored by Fiama Di Wills. Sales Promotion: heavy consumer schemes Price: Rs.18 Available Range & Size: 120 gms.

37

Brand Name: NEW CINTHOL

About the Brand: NEW CINTHOL is a unique toilet soap with Orange extracts which gives freshness along with skincare. Orange is an ingredient known for its skin benefits since times immemorial and CINTHOL offers the same benefits in the form of soap for a fresh and lively skin to all its consumers. Target: First it targeted to the men now the new Cinthol targets to the all people from young to old. Positioning: It position itself as the beauty soap which keeps the people fresh. Advertising Objective: The objective is to influence all the people who always try to keep themselves fresh. ment Strategy: The ment strategy is to project new Cinthol Skin Fresh soap as an element of freshness as well as cleaning. Available Range & Size: Cinthol Regular (100 gms), Cinthol International Lime (100 gms), Cinthol Lime Fresh (75 gms, 125 gms.).

38

Chapter-4

39

Comparison and Data Analysis COMPARISON OF MARKET SHARE

4% 10% 12%

59%

15%

HUL

Godrej

Nirma

Wipro

Others

The market shares of the HUL products was greater than other companies, which shows that the acceptance of HUL products are more by consumer. The percentage of market shares are as follow:

The market share of HUL is 59% of the total of consumed products.

40



The market share of GODREJ is 15% of the total of consumed products.



The market share of NIRMA is 12% of the total of consumed products.



The market share of WIPRO is 10% of the total of consumed products.



The market share of others is 4% of the total of consumed products.

Therefore HUL is considered as the one of the most branded and reliable company and the product are frequently accepted and used by each and every category of consumer. And the HUL put its all effort to maintain its standard with respect to price and the quality of the products.

The brands generally demanded by the consumer. I.

HUL demanded approximately 60%.

II.

GODREJ demanded approximately 15%.

III.

NIRMA demanded approximately 15%.

IV.

Others demanded approximately 10%.

41

70% 60% 50% HUL demanded (Approx.)

40%

Godrej demand (Approx.) 30%

Nirma demanded (Approx.) Others

20% 10% 0% 1

42

Graphical representation of the brands demanded by the consumer

Data shows that how much the brand name of the soap is important for the consumer during the purchasing of the soap. Near about 40% are causes about the brand names of the soap, 25% are not, about 20% used regular brands and 15% of them are not answered.

50% 45% 40% 35% Serious about the brands

30%

Not serious 25%

Usually used same brands

20%

Not answered

15% 10% 5% 0% 1

43

DATA ANALYSIS The population understands the soap by its brands regarded with quality. The results are: I

30% known by the company name.

II 45% known by the quality of the soap. III 10% known by the identifying the name. IV 15% known by the types of the soaps.

50%

40%

30%

Company name Quality of the soap

20%

Identifying name Types of the soap

10%

0% 1

Mostly consumer uses. I

SANTOOR 10%

44

II

DETTOL 9%

III

LUX 25%

IV

LIRIL 7%

V

BREEZE 8%

VI

DOVE 3%

VII

PEARS 4%

VIII

LIFEBOUY 13%

IX

NIRMA 16%

X

OTHERS 5%

30% Santoor

25%

Dettol Lux

20%

Liril 15%

Breeze Dove

10%

Pears Lifebouy

5%

Nirma Others

0% 1

45

The individual rates their present soap by the following qualitiesI

Packaging of soap 15%

II

Company name 20%

III

Price of the soap 30%

IV

All of the above 35%

15% 35%

packaging of soap Company name 20%

Priceof soap All of the above

30%

All the individuals preferred to change new brand of the soap. I

frequently changes the brands 10%

II

Rarely changes the brands 40%

I

Punctual on one brand 45%

II

Changes according to the climatic situation 5%

46

We found that large family uses I.

HUL 45%

II.

GODREJ 15%

III

WIPRO 10%

IV

NIRMA 30%

V

OTHERS 5%

45% 40% 35% 30%

HUL Godrej

25%

Wipro 20%

Nirma

15%

Others

10% 5% 0% 1

47

Small family uses-. I.

HUL SOAPS 30%

II.

GODREJ 15%

III

WIPRO 20%

IV

NIRMA 30%

V

OTHERS 5%

35% 30% 25% HUL Soaps 20%

Godrej Nirma

15%

Wipro Others

10% 5% 0% 1

48

In the segmentation of the soap the rich people usesI.

Pears 30%

II.

Dove 55%

III

Camey 10%

IV

Fiama Di Wills 5%

60%

50%

40%

30%

20%

10%

0% Pears

Dove

1

Camey

Fiama Di Wills

NOTE: Data based on survey done by SRM University NCR.

49

PRODUCT DIFFERENTIATION Product differentiation is a part of marketing tools so it is very common in FMCG sector also. Differentiation means variation of product by means of form, feature, style and many more. The product differentiation which occur in soap industries are as follows:



FORM: Some soap are oval some are rectangular and some are almond shape some also have the shape of animals, some found in 75 gms, and some are 125 gms and are found 150 gms.



FEATURE: Some soaps are herbal, some are non-alkaline and alkaline.



PERFORMANCE: Some soap melt less in water and some melt quickly.



PACKAGING: Little soap is wrapped in paper pack and little soap is found in visible plastic pack.

50

Chapter-5

51

Findings and Conclusion 

Lower class people use Nirma & Lifebuoy because it cost price is very less and they can afford to buy it.



Middle class people uses Lux, Cinthol & Santoor because these are economical soaps.



Upper class people use Camay, Pears, and Dove these soaps tell of high society.



Most people like HUL products because it has got varieties of products.



Lux & Breeze are favorites of women.



People want that price of Dove and Pears should be economical to all categories.



People demands for Nirma soaps mostly because it is economical.

52

CONCLUSION Heat and dust are integral part of Indian climate. This makes Indian as one of the ideal market for soaps and other cleaning products. As we know that the consumer keeps limited inventory of soap products and prefers to purchase them frequently, as and when required. Many of these products are perishable. The penetration of bathing soaps is 98% of all households. The research study shows that the per capita consumption of bathing soap is 513gm. So there is a very big market for soap in India. The total turnover of soap or market in India is 54 lakhs tone per annum and is increasing at the rate of 5% per annum. In which HUL is the market leader with 59% of share followed by Godrej.

Other major players are Nirma Ltd., Wipro Customer care, Colgate-

Palmolive Ltd., and Henkel-Spic India Ltd. The soap market is not only segmented on the basis of price and benefits but even a range of emotions within that outlining frame work. Therefore according to research done on the soap industries I have reached to the following conclusions

The frequent used soap was Lux (28%) then Nirma (16%) then Santoor (10%).



The appealing factors are soaps were price which was followed by size then the medicinal qualities and so on.



Mostly consumer prefer popular soap category which is having a mix bag of good pricing and good quality.



Most people like HUL products because it has got varieties of products and also assurance of good quality and it caters in all the categories of soap market.

53

BIBLIOGRAPHY



www.slideshare.net



www.hul.co.in/



http://www.indianmirror.com/indian-industries/soap.html



https://www.pwc.in/en_IN/in/assets/pdfs/rc-publications/innovation-in-fmcg



https://www.idoub.com/



https://en.wikipedia.org/



wcclg.com



Marketing Management (Author- Rajan Sexana) (Publish by Tata McGraw Hill Publishing Co. LTD, New Delhi)



www.authorstream.com



http://www.academia.edu/



www.google.co.in



Marketing Management(Author- Philip Kotler) (Publish by Pren Tice-hall of India PVT. LTD., New Delhi)

54