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A STUDY ON CONSUMER BEHAVIOUR TOWARDS KSDL PRODUCTS (toilet soaps) Internship Report on “CONSUMER BEHAVIOUR TOWARDS KSDL PRODUCTS (toilet soaps)” Subject Code: 12MBA47 BY ARCHANA BHAT USN: 1MV12MBA12 Submitted to VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGUAM In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the guidance of INTERNAL GUIDE EXTERNAL GUIDE Mrs. Lakshmi H Sri Uma Shankar Apali (Assistant Professor) Dy.Gen.Mgr (MID) Department of Management Studies Sir MVIT Page | 1

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Page 1: Final Report - Copy

A STUDY ON CONSUMER BEHAVIOUR TOWARDS KSDLPRODUCTS (toilet soaps)

Internship Report on

“CONSUMER BEHAVIOUR TOWARDS

KSDL PRODUCTS (toilet soaps)”

Subject Code: 12MBA47

BY

ARCHANA BHAT

USN: 1MV12MBA12

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGUAM

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Mrs. Lakshmi H Sri Uma Shankar Apali

(Assistant Professor) Dy.Gen.Mgr (MID)

Department of MBA

SIR M.VISVESVARAY INSTITUTE OF TECHNOLOGY

Hunasamaranahalli, Bangalore 562157

2012 – 2014

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DECLARATION

I, Archana Bhat hereby declare that Internship report entitled “a study on consumer behaviour

towards KSDL products (soaps)” with reference to Karnataka soaps and detergents limited

Bangalore prepared by me under the guidance of Mrs. Lakshmi H (Assistant Professor) faculty of

MBA Department, Sir MVIT and external assistance by Sri Uma Shankar Apali, Dy.Gen.Mgr

( MDI ).

I also declare that this Internship work is towards the partial fulfillment of the university regulations

for the award of degree of master of Business Administration by Visvesvaraya Technological

University, Belgaum.

I have undergone a summer project for a period of Twelve weeks. I further declare that this project

is based on the original study undertaken by me and has not been submitted for the award of any

degree/diploma from any other University/Institution.

Place: Signature of the student

Date:

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INDEX

No. PARTICULAR Page No

1 Executive Summary

2 Industrial Profile

3 Company Profile

4 Organization Structure

5 Product Profile

6 Introduction to topic

7 Research Methodology

8 Data analysis & Interpretation

9 Test Hypothesis

10 Finding

11 Suggestions

12 Conclusion

13 Bibliography

14 Annexure

15 Executive Summary

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CHAPTER 1

1.1 TITLE OF THE PROJECT

“Study of Consumer Behavior towards KSDL products (toilet soaps)”

The project is being carried out in Bangalore city with a clear objective of understanding the

consumer behavior towards KSDL products (toilet soaps). The primary data is collected through

survey technique and field work by interviewing the consumers and general public. The secondary

data is collected through company websites and past records. The questionnaires consisting mostly of

open ended questions which has been designed to obtain the required information from the

respondents, keeping in mind the objectives of the study. Analysis has been made out of the opinions

of the respondents, based upon this conclusion and recommendations are aimed at.

1..2.1 INTRODUCTION TO TOPIC

Marketing deals with identifying and meeting the human and social needs. It is a comprehensive

term and it includes all resources and a set of activities necessary to direct and facilitate the flow of

goods and services from producer to consumer in the process of distribution. The American

marketing association offers the following definition; “marketing is the process of planning and

executing the conception, pricing, promotion and distribution of ideas, goods and services to create

exchanges that satisfy individual and organizational needs.

Importance of marketing: Marketing is recognized as the most significant activity in our society,

marketing is all around us. Our delivery existence, our entire economic, life our life style are

continuously affected by a wide range of marketing activities.

• Marketing is a connecting link between the consumer and the producer, marketing process brings

new & new items to retail shops from where the consumer can have them. Marketing has achieved

social importance because it is entrusted with the task of creation & delivery of standard of living of

society.

• Marketing facilitates the development of business and creates employment opportunities for people.

• Marketing studies continuously consumer demand which is varied and dynamic.

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• Marketing removes the imbalances of supply by transferring the surplus to deficit areas, through

better transfer facilities.

• Marketing include all activities in the creation of utilities from places time and possession.

Consumer Behavior: Consumer behavior is defined as all psychological, social and physical behavior

of potential customers as they become aware of evaluate, purchase, consume and tell others about

products and services. Each element of this definition is important.

• Buyer behavior involves both individual (psychological) processes & group (social) process.

• Consumer behavior is reflected from awareness right through post purchases.

Importance of consumer behavior:

• The importance of studying consumer behavior is routed deeply in the modern concept, by studying

the consumer behavior business can help consumer to solve their consumption problems by

understanding them and trying to analysis the buying process and factors influencing it.

• The Emerging buyer movement necessitates market to understanding buyer behavior, their needs,

aspirations, expectations and problems. It will be useful in exploiting marketing opportunities and

meeting challenges of the markets.

• The marketing is consumer oriented, consumer is the king of the market. The marketers must try to

offer the product favored by the customer at the price he is to pay through the distribution channel

convenient to him with the right type of promotion. To do this a study of buyer behavior is

necessary.

Scope of consumer behavior: The study of the consumer behavior is the study of how individuals

make decision to spend their available resources on the consumption related items. It includes the

study of what they buy, why they buy it and how often they buy it.

1.4 NEED FOR CONSUMER BEHAVIOR STUDY

o For effective market segmentation and target marketing, it is essential to have an

understanding of consumers and their behavior.

o The growth of consumer protection movement has created an urgent need to understand how

consumers make their consumption and buying decision

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o It is significant for regulating consumption of goods and thereby maintaining economic stability.

o It is useful in developing ways for the more efficient utilization of resources of marketing. It

also helps in solving marketing management problems in more effective manner.

o The study of consumer behavior for any product is vital importance to marketers in shaping

the fortunes for their organization.

1.5 OBJECTIVE OF THE STUDY

o To analyse the consumer’s decision making process.

o To analyse factors which influence customer’s preference towards toilet soaps.

o To examine the customers opinion.

o To know the status of different offers, discounts and customer response.

o To determine effect of product ingredients on the consumer.

o To understand the role of the individual in a family.

1.6 SCOPE OF THE STUDY

The study is undertaken in KSDL Bangalore, in order to find out the ‘consumer behavior towards

KSDL products (toilet Soaps)’. The scope of the study involves only for 300 respondents, the time

frame for study is only 2 months.

Geographical Coverage: No work can be undertaken without the co-operation of respondents who

were interviewed from which data was collected through questionnaire. Therefore respondents play a

very important role in this study. The study was conducted in Bangalore city, the areas from which

data has been collected and respondent’s approaches are mainly in: Yeshawanthapur, Rajajinagar,

Malleshwaram, Yalahanka and Devanahalli.

1.7 RESEARCH METHODOLOGY

Research design:

Descriptive

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Source of data

Primary data

For primary data respondents arepersonally contacted and administered. People from different age

groups and different socio economic backgrounds are included.

Secondary data

Secondary data are collected from various sources including magazines, newspapers and internet and

other sources.

Sample design:

Sampling unit (Product Users).

Sampling technique (Purposive Sampling).

Method of data collection:

Questionnaire.

Tools to be used:

Percentage Analysis.

Sampling area: Bangalore

Sample size: 300

1.8 LITERATURE REVIEW

1) A Study on Consumer Behavior towards Selected Fast Moving Consumer Goods in

Coimbatore City

S. Mahalingam, P. Nandha Kumar

ABSTRACT

The researcher has assessed the socio-economic profile, shopping pattern of consumers and found

out the factors influencing the consumer to purchase the selected FMCG products. The primary data

required for the study was collected through questionnaire which was distributed to 400 samples

chosen from Coimbatore city .The tools used for analysis are percentage analysis, Garrett ranking

and chi-square.

From this study it was found that most of the consumers are influenced by brand and quality in

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purchase of FMCG products. There by the researcher has suggested to improve the quality in FMCG

product through product development and external monitoring.

2) A Brief Literature Review on Consumer Buying Behavior

Posted on July 1, 2013 by John Dudovskiy

Understanding consumer behavior has become a factor that has a direct impact on the overall

performance of the businesses. It is worth noting that consumer buying behavior is studied as a part

of the marketing and its main objective it to learn the way how the individuals, groups or

organizations choose, buy use and dispose the goods and the factors such as their previous

experience, taste, price and branding on which the consumers base their purchasing decisions

One of such studies conducted by Variawa (2010) analyzed the influence of packaging on consumer

decision making process for Fast Moving Consumer Goods. The aim of the research was to analyze

the impact of packaging for decision making processes of low-income consumers in retail shopping.

A survey method has been used in order to reach the research objectives. In a survey conducted in

Star Hyper in the town of Canterville 250 respondents participated.

The findings of the research indicate that low-income consumers have more preferences towards

premium packaging as this can also be re-used after the product has been consumed. Although the

findings indicate that there is a weak relationship between the product packaging and brand

experience. However, it has been proven by the findings of the research that low-income consumers

have greater brand experience from the purchase of ‘premium’ products when compared to their

experience from purchasing ‘cheap’ brand products.

Lee (2005) carried out study to learn the five stages of consumer decision making process in the

example of China. The researcher focuses on the facts that affect the consumer decision making

process on purchasing imported health food products, in particular demographic effects such as

gender, education, income and marital status. The author employed questionnaire method in order to

reach the objectives of the research. Analysis of five stages of consumer decision making process

indicate that impact of family members on the consumer decision making process of purchasing

imported health food products was significant

1.9 LIMITATION OF THE STUDY

Limited number of respondents i.e. 300

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Survey is confined for a period of two months.

Survey is confined to the city of Bangalore.

The study was conducted under the assumption that the information given by the respondents

is authentic.

The analysis and suggestion are given only with respect to marketing aspects as technical

suggestion with respect to the product could not be given.

There may be a chance of individual's experience dominating the interpretation of the data.

Some discrepancies may have occurred due to random sample method used.

Respondents may not have given their exact views or hidden some information deliberately.

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CHAPTER 2

2.1 INDUSTRY PROFILE

Soap is one of the commodities, which have become an indispensable part of the life of modern

world. Since it’s a non-durable consumer goods, there is a large market for it. The whole soap

industry is experiencing changes due to innumerable reasons such as government relations,

environment, toxicological energy problems increase in cost of raw material etc.

The changing technology and ever existing desire by the individual and the organization to produce a

better product at a more economical rate has also acted as catalyst for the dynamic process of change.

More and more soap manufactures are trying to capture a commanding market share by introducing

new products. The soap industry in India faces a cut throat competition with Multinational

companies dominate the market. They are also facing severe threat from dynamic and enterprising

new entrance especially during 1991-92.

If we look back into the history of soaps & detergents, mankind knew about soaps nearly 2000 years

back i.e. in 70 A.D. when Mr. Elder accidentally discovered the soap, when Roasted meat over

flowed on the glow in ashes. This lump like product was soap & had Foaming & cleansing

character. In 1192 A.D. the first commercial batch of soaps was made &Marketed by M/s Bristol

soap market in London, from there in 1662A.D. the first patent for making soap was taken in

London. The world consumption of soap in 1884A.D. was said to be 2lakh tones p.a.

Soap is one of the fast moving consumer goods, which have become an indispensable part of life in

modern fantasy world. Since it is non-durable consumer goods. There is a large market for it. The

whole soap industry is experiencing changes due to innumerable reasons such as government

relations. Environment, toxicological allergy problems, increase in cost of raw materials etc.

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2.2 HISTORY OF THE SOAP

Soap manufacturing was started in North America. Some American companies with well known

names were started 200 years ago. During middle age soap was made at various places in Italy,

France, England & other countries. France became famous & many small factories were established

there.

In India the first soap industry was established by North West soap company in1897 at Meerat

following the Swadeshi Movement. From 1905 onwards few more factories were setup.

They are:

Mysore soap factory at Bangalore

Godrej Soap at Bombay

Bengal Chemicals

Tata Oil Mills

1930 Lever Brothers Company

THE INDIAN SOAP INDUSTRY SCENARIO:

The Indian soap industry has long been dominated by hand full of companies such as:

1. Hindustan Levers Limited.

2. Tata Oil Mills (taken over by HLL).

3. Godrej Soaps Private Limited.

4. Recent entrants include- Colgate Palmolive Ltd.

- Proctor & gamble ltd.

- Nirma Soap Works.

- Wipro ltd.

The Indian soap industry continued to flourish very well until 1967-68, but began to stagnate & soon

it started to recover & experienced a short upswing in 1974. This increase in demand can be

attributed due to:

1. Growth of population.

2. Income & consumption increase.

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3. Increase in urbanization.

4. Growth in degree of personal hygiene.

Soap manufacture has 2 classifications, organized and unorganized sectors. KSDL comes under

organized sector.

Following the Swedish movement in 1905, few more factories set up and they were:

1. Mysore Government factory at Bangalore.

2. Godrej Soaps in Bombay.

PRESENT STATUS:

India is the ideal market for cleaning products. Hindustan liver, which towers over the cleaning

business, sells in all over the cleaning business but the tiniest of Indian settlements. The 7.4lakhs

tons per annum soap market in India in crawling along at 4%. The hope lies in raising Rupee worth,

the potential for which is high because the Indian soap market is pseudo in nature & it is amazingly

complex being segmented not only on the basis of price benefits, but even a range of emotions within

that outlining framework.

MARKET SENARIO:

India is the ideal market for cleansing products. The country’s per capita consumption of detergent

powders and bars stands at 1.6 kg and soaps at 543 gms. Hindustan lever, which heralds over the

cleaning business, sells in all over the cleaning business but the tiniest of Indian settlements. The

7.4lakhs tons per annum SOap market in India in crawling along at 4%.The hope lies in raising

rupees worth, the potential for which is high because the Indian soap market is pseudo in nature of it

is amazingly complex being segmented. Not only on the bars of price, have benefits, but even a

range of emotions wit in that out lining framed market.

PROBLEMS OF SOAP INDUSTRY:

Soap industry faces some problems in case of raw materials. The major ingredients are soap ash,

linear alkyl, benzene& sodium. Tripoli phosphate poses number of serious problems in terms of

availability. The demand supply gap for vegetable oil is 1.5 to 2 lakhs tons & is met through

imports. In recent times, caustic soda and soap ashes in the cheaper Varieties of soaps are quite high.

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2.2 COMPANY PROFILE

INTRODUCTION

Incorporated Name : KARNATAKA SOAPS & DETERGENTS LTD.

Address : Karnataka Soaps And Detergents Limited KS & DL,

Bangalore- Pune Highway Post Box No. 5531 Rajajinagar, Bangalore -

560055.

Phone : 0803377691/3370469/ 23371103 to 06 / 22376902 to 24.

E-mail : [email protected]

Website : www.mysoresandal.com

Year of Establishment

of Constitution : 1918.

Management : Wholly owned by Government of Karnataka undertaking. Government of

Karnataka nominates and appoints Board of Directors, Chairman and

Managing Director.

Products : Toilet soaps, bar soaps, Detergent Cakes, Powders, Agarbathies, Cosmetics,

Baby Products, and Sandalwood Oil.

Renamed Trademark: The trademark is SHARABHA. It is the body of lion with the trunk of an

elephant, means blending the intelligence of lion with the strength of an elephant.

BACKGROUND AND INCEPTION OF THE COMPANY:

Karnataka soaps & Detergents Limited, a successor to the government soap factory, which is one of

the premier factories among the Indian soap industries? After world war 1, there was a slump in the

sandal wood export to the west. It dropped a blanket of gloom over business & trading in India. The

Maharaja of Mysore turned this threat in to an opportunity, by sowing the budding seeds of KS &

DL on the out skirts of Koti forest, near Bangalore in 1918.

The project took shape with the engineering skill and expertise of a top-level team with the

inspection of the Diwan of Mysore late Sir.M.Viswesvaraya & with the service of scientists late

Sir.S.G.Shastry,Professor Watson & Dr.Sub rough. The entire

Credit goes to Sir.S.G.Shastry, who improved & made the process perfect of manufacturing of

sandalwood oil & world famous Mysore Sandal Soap. The factory was started a very small unit near

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K.R.Circle, Bangalore with the capacity of 100 tons p.a in 1918. Then, the factory shifted its

operations to Rajajinagar industrial area, Bangalore in July 1957. The plant occupies an area of 42

acres(covering soap, detergent & fatty acid divisions) on the Bangalore-Pune Highway easily

accessible by transport services and communication. In November 1918, the Mysore Sandal soap

was put in to the market after sincere effort & experiments were undertaken to evolve a soap

perfume blend using sandalwood oil as the main base to manufacture toilet soap.

RENAMING OF COMPANY

On October 1st 1980, the Government Soap Factory was renamed as “KARNATAKA SOAPS &

DETERGENTS LIMITED”. The company was registered as a Public Limited company. Today the

company produces varieties of products in toilet Soaps, Detergents, Agarbathis and Talcum powder.

KS & DL has been built up with rich tradition forth quality of its products. Mysore Sandal Soap is

the No:1 any where in the world. The Karnataka state is the original home of the sandal oil, which

uses Original perfume sandalwood in manufacturing of Mysore Sandal soaps.

It is also known as the “FRAGRANT AMBASSADOR OF INDIA”.

NATURE OF BUSINESS CARRIED.

The company KARNATAKA SOAPS & DETERGENTS LIMITED is a premiere soap

manufacturing company based in the state of Karnataka. Its nature of business is basically

manufacturing of toiletries including soaps, detergents, incense sticks, talcum powders and the like.

The company is in operation for almost hundred years with a wide range of product range is tailored

to meet the needs of the customers from both the higher and lower income strata of the society. The

company believes in the philosophy of carrying on business not only with the aim of making a profit

it serves society and protects culture.

TRADEMARK OF KS & DL

“THE SHARABHA” the carving on the cover is the Sharabha, the trade mark of

KS & DL.

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The SHARABA is the mythological creation from “PURANAS” which has a body of lion and head

of an elephant, which embodies the combined virtues of wisdom and strength. It is adopted as an

official emblem of KS & DL to symbolize the philosophy of the company.

The SHARABHA thus symbolizes a power that removes imperfection and impurities. The Maharaja

of Mysore has his official emblem adopted it, and as soon as took its pride of place as a symbol of

the Government soap factory of quality that reflects a standard of excellence of Karnataka soaps and

Detergents limited.

BIRD EYE VIEW OF KS & DL

1918 – Government soap factory was started by maharaja of Mysore and the Mysore sandal soap was

introduced in to the market for the first time.

1950 – The factory output was raised to 500 metric tons with the following modifications:

1. Renovating the whole premises

2. Installing new boiler soap building plant and drying chamber.

1954 – Received the license from Government to manufacture 1500 tons of soap and 75 tons

glycerin per year.

1957 – Factory shifted its operation to Rajajinagar Industrial Area.

1974 – Mysore sales international limited (MSIL) was appointed as a sole selling agent, for

marketing the products.

1975 – Rupees 4 corers synthetic detergent plant was installed based on Italian technology by

Ballista SPA.

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1980 – On 1st October the government soap factory was converted into a public sector enterprise and

renamed as “KARANATAKA SOAPS & DETERGENTS LIMITED”.

1981- A). Production capacity increased to 6000 tons.

B). Rupees 5 Crores fatty acid plant was installed.

1984 - Manufacturing of premium quality of Agarbathies at Mysore division.

1985 – Production capacity was raised to 26000 metric tones per annum. A large variety of toilet

soaps at attractive shapes, colours and fragrances, introduced to meet the verities and tastes of

consumers.

1992- The company was registered with the Board for Industries and financial reconstruction

(BIFR), New Delhi in December for rehabilitation, as the company suffered losses continuously

since 1980 at net worth fully eroded.

1996 – The BIFR approved the rehabilitation scheme in September and the company started making

company profits.

1999- ISO-9002- certificate for quality assurance in production, installation and servicing.

2000- ISO-14001 – certificates pertaining to environmental management system.

2003 – The company has undergone losses of RS .98 corers wiped out and in May BIFR, declared

the company to be out of its preview.

2004 – The ISO-9002 was upgraded to ISO-9001-2004 quality systems.

2005 – Launched new herbal care soap of 100gram contains 19herbs and leaves extracted perfumes.

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2007- ICWAI national awards for excellence.

2008- It introduced hand wash liquids under the trade name of herbal hand wash and rose hand wash

liquids.

2010- Won Karnataka chief ministers Ratna award for profited government.

2011- The research and development department of the company is in the process of development

the millennium soap.

2012- India’s most expensive Mysore sandal millennium soap launched on Jan 25th.

2.3 VISION, MISSION AND QUALITY POLICY

VISION STATEMENT

Keeping pace with globalization, global trends & the State’s policy for using technology in

every aspect of governance.

Ensuring global presence of Mysore Sandal products while leveraging its unique strengths to

take advantage of the current Tech scenario by intelligent & selective diversification.

Secure all assistance & prime status from Government India all Tech alliances. Further,

ensure Karnataka’s pre-eminent status as a proponent & provider of Tec Services to the

world, nation, and private sectors.

Making available technology product and services at the most affordable price to the people

at large, in keeping with policy of a welfare state.

Making all out efforts to achieve reasonable profits.

Most importantly to earn the invaluable foreign exchange, both to the state and to the

country.

MISSION

To attain self-reliance.

To promote purity & quality products

To maintain the Brand loyalty of its customers.

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To build upon the reputation of Mysore sandal soap based on pure sandal oil.

To serve the national economy.

QUALITY POLICY OF KS & DL

Seek purchase of goods and services from environment responsible suppliers.

Communicate its environment policy and the best practices to all its employees’ implications.

Set targets and monitor programs through internal and external audits.

Strive to design and develop products which have friendly environment impact during

manufacturing.

Reuse and recycle materials wherever possible and minimize energy consumption and waste.

2.4 PRODUCTS PROFILE

PRODUCT MANUFACTURED BY KS&DL

TOILET SOAPS

NAME OF THE PRODUCT UNITS OF GRAMS

Mysore sandal soap 75, 125

Mysore sandal classic soap 75

Mysore sandal gold soap 75, 125

Mysore sandal baby soap 75

Mysore special sandal soap 75

Mysore rose soap 100

Mysore sandal herbal care soap 100, 125

Mysore jasmine soap 100

Wave soap 100

Mysore lavender soap 150

Mysore sandal bath tablet 150

Mysore sandal classic bath tablet 150

Mysore jasmine bath tablet 150

Mysore special sandal tablet 150

Mysore sandal rose tablet 150

Mysore sandal guest tablet 17

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OTHERS

Washing half bar

Washing sandal baby wash

DETERGENTS

NAME OF THE PRODUCT UNITS IN GRAMS

Mysore detergent powder 1000

Mysore detergent powder 500

Mysore detergent cake 125

Mysore detergent cake 250

TALCUM POWDER

NAME OF THE PRODUCT UNITS IN GRAMS

Mysore sandal talc 20, 50, 100, 300

Mysore sandal baby talc 100, 200, 400

AGARBATHIES

NAME OF THE PRODUCT

Mysore sandal premium

Mysore sandal regular

Mysore rose

Nagachampa

Mysore jasmine

Sir M.V.100

PICTURES OF SOME PRODUCTS MANUFACTURED AT KARNATAKA SOAPS &

DETERGENTS LIMITED

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GIFT RANGE

SBT

SJR

06 IN 01

GOLD SIXER

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Mysore Sandal Soaps

This soap is made from vegetable oils,contains pure natural mysore sandal oil, along with skin care

conditioner & moisturizers. Sandalwood oil- a nature’s gift,emanates lingering fragrance, keeps

your skin glowing ,soft, blemish-free,forever young &beautiful.

It is also available in 17g &125g.

Mysore Sandal Bath Tablet (150

This soap is made from vegetable oils,contains pure natural mysore sandal oil, along with skin care

conditioner & moisturizers. Sandalwood oil- a nature’s gift,emanates lingering fragrance, keeps

your skin glowing ,soft, blemish-free,forever young &beautiful.

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Mysore Sandal Bath Tablet Trio (150g*3)

This soap is made from vegetable oils,contains pure natural mysore sandal oil, along with skin care

conditioner & moisturizers. Sandalwood oil- a nature’s gift,emanates lingering fragrance, keeps

your skin glowing ,soft, blemish-free, forever young &beautiful.

It is gift packed in a set of 3 bath tablets.

Mysore Sandal’s Millenium Super Premium soap

This super premium soap is made for all seasons,all kind of users for wellness, nourishment,

rejuvenation, soothing, cooling with the enthralling aroma of pure natural sandalwood oil, added

with other key essentials oils viz vetivert, patchouli, geranium, cedarwood, clove, guaiacwood,

orange etc…, which the user deserves in the new millenium

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Mysore Sandal Classic Bathing Bar

This bathing bar contains skin conditioners, moisturizers & pure natural sandalwood oil with

therapeutic and antiseptic properties which makes your skin soft, smooth &glowing.sandalwood oil

is nature’s gift, with a lingering fragrance and keeps you skin blemish-free,forever young &beautiful.

Mysore Sandal Gold

This soap is made from vegetable oils & contains natural mysore sandalwood oil,popularly known as

‘LIQUID GOLD’.sandalwood oil is recommended in ancient ayurvedic texts for soothing skin care

&has been cherished for centuries for its exotic fragrance. The soap enriched with moisturizers and

conditioners nourishes,rejuvenates and keeps the skin wrinkle and blemish free bringing a radiant

glow.

Mysore Sandal Gold Sixer

This soap is made from vegetable oils & contains natural mysore sandalwood oil,popularly known as

‘LIQUID GOLD’.sandalwood oil is recommended in ancient ayurvedic texts for soothing skin care

&has been cherished for centuries for its exotic fragrance. The soap enriched with moisturizers and

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conditioners nourishes,rejuvenates and keeps the skin wrinkle and blemish free bringing a radiant

glow.

3-In-1 Gift Pack

The luxury bath soap with the traditional fragrances of natural sandal, jasmine and rose specially

given in one single pack for family use ,for all occasions and for all customers

Mysore sandal soap

Mysore jasmine soap

Mysore rose soap

6-In-1 Gift Pack

The ideal gift of 6 fragrances in an aesthetically designed gift pack, in a re-usable plastic container.

Mysore sandal soap

Mysore jasmine soap

Mysore sandal classic soap

Mysore special sandal soap

Mysore rose soap

Mysore lavender soap

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Mysore Sandal Rose Soap

Get the dew-drop freshness of just plucked roses captured in soap form to give a feeling of shower

with rose petals.

Mysore Carbolic Soap

It is made from pure vegetable oils, mild antiseptic and disinfectant ingredients to give the soap users

a pleasant and fresh feeling all day long.

Mysore Sandal Herbal Soap

This is made from vegetable oils, 100 % biodegradable ingredients, natural essentials oils, skin

conditioners, anti-bacterial agents and enriched with neem extracts. Freshness for the family.

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Mysore Sandal Baby Soap

This soap is made from vegetable oils,contains pure natural mysore sandal oil. Specially created with

the baby in mind, this soap is endowed with antiseptic properties. Formulated with special care for

infants, it is enriched with moisturizers and almond oil.mysore sandal baby soap keeps the skin

blemish-free and lessens the chances of a nappy rash.

Mysore Sandal Wood Oil

Also called has liquid gold for its unique value and enchanting fragrance.pure and natural sandal

wood oil was also recommended in ancient ayurvedic texts as an antiseptic and skin care

ingredients.this product presented in an exclusive packing.

Mysore Sandal Baby Talc

The use of baby talc will help in keeping the baby clean & dry.the mild fragrance of natural

sandalwood oil has a soothing effect and helps to keep the baby calm &cool.

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Mysore Sandal Talc

The talc is available in 3 conveninent packs.sprinkle ms talc on your body to feel cool,fresh

&fragrant all day long.

Wave Herbal & Rose Liquid Hand Wash

The hand wash, ph balanced and with scientific blend of mixed surfactants along with moisturizers,

skin conditioners and vit-e is available in 2 fragrances viz., natural herbal with 19 essential oils and

in exotic rose fragrance.

Mysore Sandal Room Freshners

Mysore sandal’s room freshener is made of pure natural sandal wood oil, blended with other exotic

natural essential oils with a lingering fragrance of sandal wood a day long of cool, calm & freshness.

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Mysore Sandal Coconut Oil

It is a natural hair conditioner which is perfect for hair care and for smooth hair texture. The

internationally accepted anti-oxidant preservatives ensure that the coconut oil remains fresh till the

last drop.

Mysore Detergent Cake

Quality at affordable prices.

Point Excel Detergent Powder

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It is powerful & effectively penetrates the layers of wide variety of fabrics & removes tough stains

hidden in the prone areas. Point excel is formulated scientifically for the optimum washing both by

conventional methods & washing machine at economic cost.

Mysore Detergent Powder

It contains special dirt busters to clean your clothes of the toughest dirt effectively.

Kleenol Multipurpose Liquid

The product ph balanced & is concentrated for multipurpose applications, with the pleasant lime

fragrance.

Mysore Sandal Agarbathies

Exotic agarbathies available in wide range of fragrances for all preferences. Sandal raised jasmine,

sandal premium, and sir. M.v 100, nagachampa.

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Mysore Sandal Dhoop

The “royal tradition for divine bliss” .the product is made from de-oiled sandalwood powder. The

enduring fragrance from the dhoop has soothing, calming effect, for holistic experience during the

prayer.

2.5 AREA OF OPERATION

GLOBAL FAVOURITES FOR THEIR NATURAL GOODNESS

KS & DL has a long tradition of maintaining the highest quality standards, right from the selection of

raw materials to processing and packing of the end of the product. The reason why its products are

much in demand globally & are exported regularly to UAE, Bahrain , Kuwait , Qatar, South-East

Asian countries as well as North America and South America.

The sandalwood oil, of course, is much sought after by the leading perfumes houses of the world. All

the toilet soaps of KS&DL are made from oils and fats of vegetable origin & totally free from animal

fat.

OWNERSHIP PATTERN:

“Wholly owned by Government of Karnataka”.

2.6 COMPETITORS INFORMATION AND THEIR MARKET SHARE

COMPITITORS OF KS & DL PRODUCTS

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KS & DL in facing cut throat competition in national and international market. Some of its main

competitors are:

M/S. HINDUSTAN UNILEVER Ltd.

M/S. KS&DL.

M/S .GODREJ SOAPS PRIVATE Ltd.

M/S. PROCTOR & GAMBLE.

M/S. WIPRO.

M/S. OTHERS.

MARKET SHARE OF COMPETITORS

TABLE:1

SL/NO PARTICULARS PERCENTAGES

1. HLL[Hindustan Lever Ltd] 64%

2. KS&DL 11%

3. Godrej soaps 10%

4. Procter & Gamble 04%

5. Wipro 4.6%

6. Others 6.4%

2.7 INFRASTRUCTURAL FACILITES:

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Canteen facility: KSDL have a good space to create canteen to its employee with a hygienic

food.

Library: KSDL is also provide a library to its employee to relax the employee.

Car stand: KSDL have a separate space to stands the car and vehicles.

Waiting room: There is a wide space to waiting all to relax the employee as well as visitors.

Medical benefit: Workmen card: Domically Rs,400/- per month is given along with wages &

group insurance policy for self family.

ACHIVEMENTS AND AWARDS FOR KS & DL

Government of Karnataka, department of industries and commerce. State export promotion advisory

board “EXPORT AWARD”1974-75.

1. Detergent plant.

2. Geographical indication GI-2005.

3. ISO 9001-2000 in the year 1999.

4. ISO 14001-2004 in the year 2000

5. ICWAI national award for excellence in cost management in the year 2007.

6. Best exporter award 2007-08.

It also received “The Best exporter award” in 2007-2008.

It also received “ICWAI national award for excellence in cost management – 2007” from

Sri. Premchand Gupta honorable union minister of corporate affairs.

For the maintenance of garden they received prize since 10 years from horticulture

department.

MARKET LEADERSHIP OR PRICE COMPETATIVENESS

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Through the strategy, we found how strategies were formulated to overcome the rigorous

competition. Strategy is very much essential for the company to survive in the market. Supply chain

management is one of the strategies adopted by KS&DL, through which they are able to reduce the

cost of production ad increase profitability.

MARKETING STRATEGY (ADVERTISEMENT, SALES PROMOTION)

As part of the sales promotion activities, KS&DL is participating in Indian Trade Exhibition& fare

(ITEF) every year on all India bases. ITEF conducts exhibition for a period of 15 days & the

company is participating in Karnataka Government Stall.

KS&DL is participating in Mysore Dasara exhibition conducted for a period of two months every

year in Mysore.

KS & DL is participating in the Navarathri celebrations conducted in Calcutta for the festival season

for a period of 9 days. It exhibits products & sells its products.

WORK FLOW MODEL

SILOS (Silos are closed chambers)

Soaps Noodles

Container Mixer

Simplex Plodder

It becomes NOODLES

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Milling

It becomes soap ribbons

Duplex plodder

Cutting Machine

Cakes are led to

Stamping Machine

Wrapping machine

Led through the conveyor belt

2.8 SWOT ANALYSIS OF KS&DL

STRENGTHS:

Only soap in India that contains pure sandal and almond oil.

Certified by ISO.

World’s largest producer of sandalwood oil.

Brand name from decades in soap market.

It has very good dealership network in south which ensures that the products reach every

customer.

Diversified product range helps the company to maintain Stability.

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WEAKNESSES:

Distribution network is weak in north and east India.

Absence of television advertisement

Neglecting freshness aspect.

High oriented cost due to excessive labor force.

Low turnover resulting in low profit.

OPPORTUNITIES:

Traditional benefits that sandal is good for skin

Skin care is just gaining importance among consumers

Government support and large production capacity

Advantages of being in the industry for a long times

Existence of vast market and huge demand.

THREATS:

Other competitors’ products such as Rexona, Moti, and Santoor etc.

There is a need for renovation of plant and machinery.

Government Policy may reduce growth potential

Entry of new multinationals in soap business.

2.9 FUTURE GROWTH AND PROSPECTS

The competition in the FMCG sector is rising day by day and all most all competitors are

offering heavy consumer offer to capture market share, incentives and trades schemes to the

traders and consumers.

Non supply of sandalwood by the Karnataka state forest department has necessitated sourcing

sandalwood from public action at very exorbitant to rates.

To attain market leadership.

Introduction of new trade schemes to increase sales.

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During the current year the company launched wave talcum powder with cologne perfume,

liquid soaps, body wash in sandal and raised variants and hopes to increase its sales column

substantially in the days ahead.

Cost reduction in all areas.

Instant decision making in certain procurement activities.

Timely introduction and implementation of market driven decisions.

Ensuring effective internal control.

SHARED VALUES

VALUES OF THE ORGANISATION UPHOLDS MOST

Thus company has embraced an extended role of trusteeship that reaches beyond the assets

reflected in the balance sheet to encompass societal assets.

Customer satisfaction

Committed to total quality

Cost and time consciousness

Innovation and creativity

Trust and term spirit

ORGANISATION ENSURING ADSERENCE TO THE VALUES

Values refer to the institutional standards of behavior that strengthen commitment to the vision, and

guide strategy formulation and purposive action. The core values are shaped around the belief that

enterprise exist to serve society. In terms of this belief, profit is a means rather than an end in itself a

compensation to owners of capital linked to the effectiveness of contribution to society and the

essential ingredient to sustain such enlarged societal contribution.

2.10 FINANCIAL STATEMENT ANALYSIS OF THE COMPANY

BALANCE SHEET AS AT 31 ST MARCH (AMOUNT IN CRORES)

Sources of Funds 2009 2010 2011 2012

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Capital 31.82 31.82 31.82 31.82

Reserves and Surplus 26.77 34.34 39.16 49.46

Exchange fluctuation

Reserve 0.17

-

-

-

Secured 10.72 8.09 - -

Unsecured 8.35 8.35 8.35 8.35

Total Funds

Employed

77.83 82.52 79.32 81.28

Application of funds

1.Fixed assets

a)Gross block 30.96 32.72 33.65 34.16

Less depreciation 23.98 24.14 24.36 24.51

b)Net block 6.98 8.59 9.30 9.76

2.Deferred Tax

Liability (net)

5,25 6.14 6.25 5.40

3.Current assets,

loans and advances

a. Inventories 40.75 51.61 52.52 48.95

b. Sundry debtors 16.35 17.27 16.58 14.90

c. Cash and bank

balance

25.51 28.53 24.03 37.78

d. Loans and

Advances

21.53 21.40 18.97 10.42

e. investment in

gratuity fund

5.00 5.00 5.00 5.00

Total 109.14 123.10 120.11 117.05

Less:-Current

liabilities & provision

1. Current liability 24.67 29.23 27.35 37.35

2. Provisions 20.50 26.91 28.99 32.21

Net Current Assets 63.98 67.81 63.76 74.71

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(6) Less (7)

Miscellaneous

Expenditure

1.64 - - -

Total Assets(net) 82.91 82.53 78.32 79.70

CHAPTER 3

3.1 INFORMATION ABOUT THE TOPIC

CONSUMER BEHAVIOR

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Types of consumers

The term consumer behavior describes two different kinds of consuming entities: the personal

consumer and the organizational consumer. The Personal consumer buys goods and services for his

or her own use, f o r t he u se o f t he househo ld , o r a s a g i f t f o r a f r i end . I n e ach o f

t he se contexts, the products are bought for final use by individuals, who are r e f e r r e d

t o a s e n d u s e r s o r u l t i m a t e c o n s u m e r s .

T h e Organizational consumer inc ludes p ro f i t and no t - fo r -p ro f i t bus ine s se s ,

gove rnmen t agencies (local, state, and Federal), and institutions (such as schools,

hospital, and prisons), all of which must buy products, equipment, and service in order to

run their organizations

The term consumer behavior is defined as the behavior that consumer  display in

searching for purchasing, using, evaluating and disposing of  product and services that they

expect will satisfy their needs. Consumer behavior focuses on how individuals make decisions to

spend their available resources (time, money, effort) on consumption related items. This includes

what they buy, why they buy it, when they buy it, where t h e y b u y i t , h o w o f t e n

t h e y b u y i t , h o w o f t e n t h e y u s e i t , h o w t h e y e v a l u a t e i t a f t e r t h e

p u r c h a s e a n d t h e i m p a c t o f s u c h e v a l u a t i o n o n future, and how they dispose of

it. In another words, consumer behavior can be define as the behavior of  i nd iv idua l s i n

r ega rds t o a cqu i r i ng , u s ing , and d i spos ing o f p roduc t s , s e rv i ce s , i dea s o r

expe r i ence s . Consumer behav io r a l so i nc ludes t he a c q u i s i t i o n a n d u s e o f

i n f o r m a t i o n . T h u s , c o m m u n i c a t i o n w i t h consumers and receiving feedback

for them is a crucial part of consumer behavior which is of great interest to marketers.

In addition to understanding the needs of your customers, you also need to understand what

motivates them to purchase, and how you can influence the buying process to ensure that your

products or services are on the shopping list.

Understanding your customers will help you to develop and distribute your product, as well as

getting the right price point and developing successful promotional activities.

The psychology of the buying process has been widely studied, and no matter what size your

business, knowledge of this process can help you become more successful.

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Consumer Buying Behavior

There are many models of consumer buying behavior, but the steps below are fairly common to most

of them.

 

The customer identifies a need This is often initiated by PR coverage,

including word of mouth. The customer

may have seen a friend or celebrity

using a product or service, or awareness

may have been sparked off by

advertising.

 

Looking for information At this stage the customer wants to

know more and is actively seeking

information. Advertising and PR are still

important but product demonstrations,

packaging and product displays play a

role. This is the time to deploy your

sales personnel, and customers find

videos and brochures are useful. Word

of mouth is still very important.

 

Checking out alternative products

and suppliers

The customer is now trying to choose

between products, or firm up on the

purchase decision. This is a place for

promoting product guarantees and

warranties, and maximizing packaging

and product displays. Sales personnel

can greatly influence the customer at

this stage and sales promotion offers

become of interest. Independent sources

of information are still of interest,

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including product test reviews.

 

Purchase decision This is the time to 'tip the balance'. Sales

promotion offers come into their own,

and if appropriate, sales force incentives

need to ensure that your sales personnel

are incentivized to close the deal.

 

Using the product Expensive purchases can lead to what is

known as cognitive dissonance - a fear

that the customer has not made the right

decision. Your job is to reassure the

customer by offering good customer

care, simple instruction manuals and

loyalty schemes. They should still be

exposed to testimonial advertising to

reassure them that they have made the

right decision.

Consumer purchases are influenced strongly by or there are four factors.

01. Cultural Factor

02. Social Factor

03. Personal Factor

04. Psychological Factor.

01. Cultural Factor:-

Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class

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Culture: - The set of basic values perceptions, wants, and behaviors learned by a member of society

from family and other important institutions. Culture is the most basic cause of a person’s wants and

behavior. Every group or society has a culture, and cultural influences on buying behavior may vary

greatly from country to country.

Sub Culture: - A group of people with shared value systems based on common life experiences and

situations.

Each culture contains smaller sub cultures a group of people with shared value system based on

common life experiences and situations. Sub culture includes nationalities, religions, racial group

and geographic regions. Many sub culture make up important market segments and marketers often

design products.

Social Class:- Almost every society has some form of social structure, social classes are society’s

relatively permanent and ordered divisions whose members share similar values, interests and

behavior.

02. Social Factors:-

A consumer’s behavior also is influenced by social factors, such as the (i) Groups (ii) Family (iii)

Roles and status

Groups:-Two or more people who interact to accomplish individual or mutual goals.

A person’s behaviors is influenced by many small groups. Groups that have a direct influence and to

which a person belongs are called membership groups.

Some are primary groups includes family, friends, neighbors and coworkers. Some are secondary

groups, which are more formal and have less regular interaction. These includes organizations like

religious groups, professional association and trade unions.

Family:- Family members can strongly influence buyer behavior. The family is the most important

consumer buying organization society and it has been researched extensively. Marketers are

interested in the roles, and influence of the husband, wife and children on the purchase of different

products and services.

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Roles and Status:-A person belongs to many groups, family, clubs, and organizations.

The person’s position in each group can be defined in terms of both role and status.

For example. M & “X” plays the role of father, in his family he plays the role of husband, in his

company, he plays the role of manager, etc. A Role consists of the activities people are expected to

perform according to the persons around them.

03. Personal Factors:-

It includes Style (v) Personality and self-concept.

Age and Life cycle Stage:-People changes the goods and services they buy over their lifetimes.

Tastes in food, clothes, furniture, and recreation are often age related. Buying is also shaped by the

stage of the family life cycle.

Occupation: - A person’s occupation affects the goods and services bought. Blue collar workers

tend to buy more rugged work clothes, whereas white-collar workers buy more business suits. A Co.

can even specialize in making products needed by a given occupational group. Thus, computer

software companies will design different products for brand managers, accountants, engineers,

lawyers, and doctors.

Economic situation: - A person’s economic situation will affect product choice

Life Style: - Life Style is a person’s Pattern of living, understanding these forces involves measuring

consumer’s major AIO dimensions.

i.e. activities (Work, hobbies, shopping, support etc) interest (Food, fashion, family recreation) and

opinions (about themselves, Business, Products)

Personality and Self-concept:- Each person’s distinct personality influence his or her buying

behavior. Personality refers to the unique psychological characteristics that lead to relatively

consistent and lasting responses to one’s own environment.

04. Psychological Factors:-

It includes these Factors.

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i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes

Motivation: - Motive (drive) a need that is sufficiently pressing to direct the person to seek

satisfaction of the need

Perception: - The process by which people select, Organize, and interpret information to form a

meaningful picture of the world.

Learning:- Changes in an individual’s behavior arising from experience.

Beliefs and attitudes: - Belief is a descriptive thought that a person holds about something

Attitude, a Person’s consistently favorable or unfavorable evaluations, feelings, and tendencies

towards an object or idea

Consumer behavior is the study of individuals, g r o u p s , o r o r g a n i z a t i o n a n d t h e

p r o c e s s t h e y u s e t o s e l e c t , u s e a n d dispose of products, service, experience, or ideas

to satisfy needs and the impact that these processes have on the consumer and society. Several

discipline collectively referred to as the behavioral science have s t u d i e s h u m a n b e h a v i o r

f o r s o m e t i m e , a n d w e c a n d r a w u p o n t h e i r   contribution for understating

consumer behavior. This borrowing has been quite extensive and includes theories used in

explaining behaviors as well as methods useful in investigating it.

The behavioral sciences disciplines that have most contributed to our  understanding

of consumer are:

Psychology - s t u d y o f t h e b e h a v i o r a n d m e n t a l p r o c e s s e s

o f   individual

Sociology - study of the collective behavior of people in groups.

Social psychology - s t u d y o f h o w i n d i v i d u a l s i n f l u e n c e a n d a r e influenced by

groups.

Economics –s t u d y o f p e o p l e ’ s p r o d u c t i o n , e x c h a n g e , a n d

consumption of goods and services.

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Anthropology - study of people in relation to their culture.

M a r k e t i n g S t r a t e g y a n d C o n s u m e r B e h a v i o r

To survive in a competitive environment, a marketer must provide target cu s tomer s more

va lue t han i s p rov ided by i t s compe t i t o r s .

Customer Value i s t he d i f f e r ence be tween a l l t he bene f i t s de r i ved f rom a

t o t a l  product and all the cost of acquiring those benefits. Providing superior customer value

requires the organization to do better job of anticipating a n d r e a c t i n g t o c u s -

t o m e r n e e d s t h a n t h e c o m p e t i t o r s d o e s . A n understanding of

customer behavior is the basis for strategic marketing formulation. Consumers’ reactions to

this marketing strategy determine t he o rgan i za t i on ’s succe s s o r f a i l u r e . How -

eve r, t he se r e ac t i ons a l so determine the success of the consumers in meeting their

needs, and they have significant impacts on the larger society in which they occur. M a r -

k e t i n g s t r a t e g y i s c o n c e p t u a l l y v e r y s i m p l e . I t b e g i n s w i t h a n

a n a l y s i s o f t h e t a r g e t m a r k e t   wh ich i nc ludes company, cond i t i ons ,

competitors, and consumers.

Market segmentation

This involves identifying product-related need sets, grouping customers with

similar need sets, describing each group and selecting an attractive segment to

serve. T h i r d s t a g e i s marketing strategy a n d i t i n v o l v e s m a n i p u l a t i o n

o f   m a r k e t i n g m i x . T h e m a r k e t i n g m i x i n c l u d e s t h e p r o d u c t ,

p r i c e , c o m m u n i c a t i o n s , d i s t r i b u t i o n , a n d s e r v i c e s p r o v i d e d t o

t h e t a r g e t market. The final stage Outcomes Involves analysis of firm’s prod-

uct position and customer satisfaction resulting from implementation of the strategy.

The marke t i ng app l i c a t i on a r ea s o f consumer behav io r knowledge in-

clude;

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Market-Opportunity Analysis: Th i s i nvo lve s examin ing t r ends and conditions in

the marketplace to identify consumers’ needs and wants that are not being fully satis-

fied.

Target-Market Selection: T h i s h a s t o w i t h i d e n t i f y i n g d i s t i n c t

g r o u p i n g s o f c o n s u m e r s w h o h a v e u n i q u e w a n t s a n d n e e d s a n d

t h e selection of segment that matches the firm’s strength and offer better  oppor-

tunities.

M a r k e t i n g M i x D e t e r m i n a t i o n : I t i n v o l v e s d e v e l o p i n g a n d

imp lemen t ing a s t r a t egy fo r de l i ve r i ng an e f f ec t i ve combina t i on

o f  w a n t - s a t i s f y i n g f e a t u r e s t o c o n s u m e r s w i t h i n t a r g e t m a r k e t .

T h e m a r k e t i n g m i x i s m a d e u p o f f o u r c o m p o n e n t s ; p r o d -

u c t , p r i c e ,  promotion and place.

M a r k e t i n g s t r a t e g y : M a r k e t i n g s t r a t e g y a c t i v i t i e s r e -

q u i r e s u n d e r s t a n d i n g o f c o n s u m e r b e h a v i o r . T h i s i s b e c a u s e

m a r k e t i n g s t r a t eg i e s and t a c t i c s a r e ba sed on exp l i c i t o r imp l i c i t be -

l i e f s abou t consumer behavior

TYPES OF CONSUMER BUYING BEHAVIORS & PRODUCT DECISIONS

Consumers make purchase decisions when they buy small items, such as a cup of coffee, and when

they buy larger items, such as a house. After recognizing a need or a want, consumers begin

searching for products or services that fit their needs. They evaluate their options, taking note of

everything from pricing to a brand's reputation, before marking a purchase. Four types of consumer

buying behavior outline product purchase decisions.

Impulse Purchases

When a consumer stands at the checkout and notices lip moisturizer, magazines and gum, and adds

one of the items to his cart of groceries, it's often referred to as an impulse purchase. The consumer

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makes a purchase with little to no thought or planning involved. In most instances this happens with

low-priced items.

Routine Purchases

There are items consumers are used to purchasing every day, once a week or monthly. These can

range from a morning cup of coffee from a nearby convenience store, to milk, eggs and cheese from

the supermarket. Customers spend very little time deciding whether or not to purchase these items

and don't typically need to read reviews or consult with friends for their opinions before they make

routine purchases.

Limited Decision Making

When customers engage in purchases that require limited decision making, they may seek advice or a

suggestion from a friend. For example, if a young professional is preparing for an interview and

wants to get her hair colored the week before, she might solicit advice from friends to find out which

salon does good hair coloring work. As she shops for a suit for the interview, she might also ask for

suggestions on which store to go to and which brand of suit is the best. The consumer may research a

few options, but the search is not as thorough, or as time consuming, as with a higher priced item.

Extensive Decision Making

Purchases for high priced electronics, such as a television, computer or camera, or major purchases

such as a home or car require consumers to use extensive decision making. Consumers spend sub-

stantial amounts of time researching a high number of potential options before they buy. They speak

with trusted friends, family, colleagues and sales professionals, and read reviews and ratings online

and in consumer magazines. The decision making process lasts longer, as the consumer is investing a

substantial amount of money.

SOAPS

The product categories can be classified into three segments; premium (Lux, Dove), popular (Nirma,

Cinthol), and economy (Nirma Bath, Lifebuoy). The price differential between the premium and

economy segments is about 2X. The popular and economy segments account for about 4/5ths of the

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entire market for soaps. Penetration of toilet soaps is high at 88.6%. However per capita consumption

levels remain low India's per capita consumption of soap at 460 gms per annum is lower than that of

Brazil at 1,100 gms per annum.

Distribution network

Soaps are available in 5 m retail outlets in India, 3.75 m of which are in the rural areas.

Therefore availability of these products is not a problem. 75% of India's population is in the

rural areas; hence about 50% of the soaps are sold in the rural markets.

Growth

Rural demand growth is expected to occur mainly with consumers moving up towards pre-

mium products. But in the past, the proportion of premium soaps to economy soaps has not

changed much, in volume terms. This is because as some consumers move up the value chain

with increase in disposable incomes, some consumers move down looking for cheaper substi-

tutes as prices move up. This has been the case especially, as growth in soap prices has gener-

ally outpaced overall consumer inflation.

CHAPTER 4

QUESTIONNAIRE

Dear Sir/ Madam,

I am Miss. Archana Bhat a student pursuing M.B.A. from Sir MVIT. I am doing a project titled “Consumer Behavior towards Toilet Soaps” hence I request your kind co-operation in this regard. Please spare your precious time & give your valuable opinion to improve the product/services.

DEMOGRAPHIC PROFILE OF RESPONDENT

Name __________________________

Age

20 – 25 years 25-30 years 30-40 years 40-50 years Above 50 years

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Gender

Male Female

Qualification Employee Professional Business

Others

Marital Status: Married Unmarried

Monthly Income 10,000 – 15,000 15,000 – 25,000 25,000 – 35,000 35,000 & above

1. Number of Family members: a) 1 – 2 b) 3 – 4 c) 5 – 6 d) 7 & above

2. How often do you buy bath soaps? a) Once in 15 days b) Once in a month c) Once in 2 months d) When there is discount on products

3. Which kind of soap do you generally use? a) Chemical b) Herbal/Ayurvedic c) Medicinal d) Others (please Specify) _____________

4. Which brand of soap do you use?a) Cinthol b) Fiama D wills c) Dove d) Mysore sandal gold d) Others ___________

5. How many people in your family are using the same soap which you use? a) 1 – 2 b) 3 – 4 c) 5 – 6 d) More than 6

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6. Why do you buy toilet soaps? a) For Cleansing b) Bathing c) Fresh feeling d) germs protection

7. Which soap categories do you prefer the most?a) Premium b) Popular c) Economy

8. Specify the reasons for using your soap? a) Quality b) Fragrance c) Brand Image d) worth of its pricee) Availability

9. Which factor influenced you the most to use your soapa) Groups (ii) Family (iii) Roles and status

10. Rate the quality of your soap? a) Excellent b) Good c) Satisfactory d) Poor

11. What is your opinion regarding the price of the soap which you use?a) Low b) Reasonable c) High d) Very High

12. What should be the ideal price of a toilet soap?a) 25-30 b) 30-40 c) 40-50 d) 50 and above

13. What should be the ideal weight of a soap? a) 75g b) 100g c) 125g d) 150g and above

14. How did you come to know about soap which you are using? a) Friends/Family b) Shop keeper c) Advertising / publicity d) Others (please specify) _______________

15. Where do you prefer to buy soaps? a) Retailer b) Super market c) Factory outlet d) online e) Others (please specify) __________________

16. What improvement do you want in your Brand? a) Price b) Fragrance c) Quality d) Availability e) Awareness

17. How often do you change the soap?a) once in a six month b) once in a year c) 2 years d) more than 2 years

18. The major reason to change your branda) Change in the trend b) Availability c) Advertisement d) Pricee) Social media

19. Which personal factor do you consider the most when it is about the soaps?a) Age and life cycle stage b) Occupation c) Economic situation d) Lifestyle

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20. Which of the following promotions entice you?a) Buy one get one free b) Sample selection c) Money off next purchase d) Loyalty card scheme e) High discount

21. Which is the major factor you look while buying your soapa) Brand name b) Antiseptic quality c) Beauty care d) Price

22. Which role do you play in your family regarding purchasing of a soap?a) Influencer b) Decision maker c) Buyer d) User

THANK YOU

4.1 ANALYSIS AND INTERPRETATION

DEMOGRAPHIC PROFILE OF RESPONDENT

Age

Frequency Percent20 - 25 years 96 32 %25 - 30 years 87 29 %30 - 40 years 66 22 %

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40 - 50 years 30 10 %50 and above 21 7 %Total 300 100%Interpretation: The above chart shows that 32% of consumers are from 25 - 25 years, 29% are from 25 – 30 years, 22 % are from 30 – 40 years, 10% are from 40 – 50 years and 7% are from 50 and above. It can be inferred that the majority of the consumers belongs to the age group of 20 – 25 years.

Gender

Frequency PercentMale 142 47.3 %Female 158 52.7 %Total 300 100 %

Interpretation: The above chart shows that 47.3 % of consumers are male and 52.7 % of consumers are female. It is clear that the female consumers are more than male consumers.

Qualification

Frequency PercentEmployee 114 38 %Professional 53 17.7 %Business 34 11.3 %Others 99 33 %

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Total 100 100 %Interpretation: The above chart shows that 38 % consumers are employees, 17.7 % are professionals, 11.3 % doing business and 33 % are others. Majority of the consumers are employees.

Marital Status:

Frequency PercentMarried 184 61.3%Unmarried 116 38.7 %Total 300 100 %Interpretation: The above chart shows that 61.3% customers are married and 38.7% are unmarried. So it is clear that married consumers are more than unmarried customers.

Monthly Income

Frequency Percent10,000 – 15,000 54 18%15,000 – 25,000 78 26%25,000 – 35,000 99 33%35000 and above 69 23% Total 300 100%Interpretation:

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The above chart shows that 18% of the consumers belonging to the income level of 10000 – 15000, 26% belongs to 15000 – 25000, 33% belongs to 25000 – 35000, 23% belongs to 35000 and above. So it clears that majority of the consumers belongs to the income level of 25000 – 35000.

1. Number of Family members: a) 1 – 2 b) 3 – 4 c) 5 – 6 d) 7 & above

Frequency Percent1 - 2 members 46 15.3%3 – 4 members 162 54%5 – 6 members 78 26%7 and above 14 4.7%Total 300 100%Interpretation: 15.3 % consumers are 1 -2 members in family, 54% consumers are 3 – 4 members in family, 26% consumers are 5 – 6 in a family and 4.7 % are 7 members in a family. The above chart showing that majority of the consumers have 3 – 4 members in their family.

2. How often do you buy bath soaps? a) Once in 15 days b) Once in a month c) Once in 2 months d) When there is discount on products

Frequency PercentOnce in 15 days 73 24.3%

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Once in a month 130 43.3%Once in 2 months 55 18.4%When there is discount on products 42 14%Total 300 100%Interpretation:

The above chart shows that 24.3% consumers buy toilet soaps once in 15 days, 43.3% consumers buy once in a month, 18.4% consumers buy once in 2 months, 14% buys when there is discount on products. From the analysis of the table it is clear that majority of the consumers buy toilet soaps once in a month.

3. Which kind of soap do you generally use? a) Chemical b) Herbal/Ayurvedic c) Medicinal d) Others (please Specify) _____________

Frequency Percent

Chemical 152 50.7%Herbal/ayurvadic 119 39.7%Medicinal 28 9.3%Others 1 0.3%Total 300 100%

Interpretation:

The above chart shows that 50.7% of the consumers use chemical based soaps, 39.7% of the consumers use herbal/ayurvadic soap, 9.3% of the consumers use medicinal soap and 0.3 of the consumers use other soap. By this chart we can interpret that majority of the consumers use chemical soaps.

4. Which brand of soap do you use?a) Cinthol b) Fiama D wills c) Dove d) Mysore sandal gold d) Others ___________

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Frequency Percent

Cinthol 31 10.4%Fiama D wills 25 8.3%Dove 19 6.3%Mysore sandal gold 53 17.7%Others 172 57.3%Total 300 100%

Interpretation:

The above chart shows that cinthol soap is being used by 10.4% of the consumers, 8.3% consumers use Fiama D wills, 6.3% of the consumers use Dove, 17.3% of the consumers use mysore sandal gold and 57.3% of the consumers use other soaps. It clearly shows most consumers are using different soaps than above mentioned soaps.5. How many people in your family are using the same soap which you use? a) 1 – 2 b) 3 – 4 c) 5 – 6 d) More than 6

Frequency Percent

1 – 2 112 37.3%3 – 4 139 46.3%5 – 6 41 13.7%6 and above 8 2.7%Total 300 100%

Interpretation:

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In case of 37.3% of the consumers up to 1 – 2 in their family use the same soap that the consumer is using, in case of 46.3% of the consumers upto 3 - 4 members use the same soap, in case of 13.7% of consumers 5 – 6 members use the same soap and in case of 2.7% consumers 6 and more members use the same soap. In majority of the case 3 – 4 members in a family use the same soap.6. Why do you buy toilet soaps? a) For Cleansing b) Bathing c) Fresh feeling d) germs protection

Frequency Percent

For Cleansing 37 12.3%Bathing 177 59%Fresh feeling 51 17%Germs protection 35 11.7%Total 300 100%

Interpretation:

The above chart shows that 12.3% of the consumers use soap for cleansing purpose, 59% of the consumers use for bathing, 17% of the consumers use soap for fresh feeling, 11.7% of the consumer use soap for germs protection. So we can conclude that most of the consumers use toilet soap for bathing.7. Which soap categories do you prefer the most?a) Premium b) Popular c) Economy

Frequency Percent

Premium 29Popular 123Economy 148

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Total 300Interpretation:

The above chart shows that8. Specify the reasons for using your soap? a) Quality b) Fragrance c) Brand Image d) worth of its pricee) Availability

Frequency Percent

Quality 92 30.6%Fragrance 83 27.7%Brand Image 71 23.7%Worth of its price 12 4%Availability 42 14%Total 300 100%Interpretation:

The above chart shows that9. Which factor influenced you the most to use your soapa) Groups (ii) Family (iii) Roles and status

Frequency PercentGroups 41 13.7%Family 204 68%Roles and status 55 18.3%Total 300 100%

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Interpretation: The above chart shows that

10. Rate the quality of your soap? a) Excellent b) Good c) Satisfactory d) Poor

Frequency Percent

Excellent 47 15.7%Good 160 53.3%Satisfactory 91 30.3%Poor 2 0.7%Total 300 100%

Interpretation:

The above chart shows that11. What is your opinion regarding the price of the soap which you use?a) Low b) Reasonable c) High d) Very High

Frequency Percent

Low 15 5%Reasonable 246 82%High 37 12.3%Very High 2 0.7%Total 300 100%

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Interpretation:

The above chart shows that

12. What should be the ideal price of a toilet soap?a) 25-30 b) 30-40 c) 40-50 d) 50 and above

Frequency Percent

25-30 121 40.3%30-40 132 44%40-50 42 14%50 and above 5 1.7%Total 300 100%Interpretation:

The above chart shows that

13. What should be the ideal weight of a soap? a) 75g b) 100g c) 125g d) 150g and above

`Frequency Percent

75g 109 36.3%100g 137 45.6%125g 42 14%150g and above 12 4%Total 300 100%

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Interpretation:

The above chart shows that

14. How did you come to know about soap which you are using? a) Friends/Family b) Shop keeper c) Advertising / publicity d) Others (please specify) _______________

Frequency Percent

Friends/Family 80 26.7%Shop keeper 69 23%Advertising / publicity 148 49.3%Others 3 1%Total 300 100%

Interpretation:

The above chart shows that15. Where do you prefer to buy soaps? a) Retailer b) Super market c) Factory outlet d) online e) Others (please specify) __________________

Frequency PercentRetailer 144 48%Super market 121 40.3%Factory outlet 20 6.7%

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Online 12 4%Others 3 1%Total 300 100%Interpretation:

The above chart shows that16. What improvement do you want in your Brand? a) Price b) Fragrance c) Quality d) Availability e) Awareness

Frequency Percent

Price 90 30%Fragrance 113 37.7%Quality 55 18.3%Availability 33 11%Awareness 9 3%Total 300 100%

Interpretation:

The above chart shows that

17. How often do you change the soap?a) once in a six month b) once in a year c) 2 years d) more than 2 years

Frequency PercentOnce in a six month 63 21%Once in a year 114 38%2 years 51 17%

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More than 2 years 72 24%Total 300 100%Interpretation:

The above chart shows that18. The major reason to change your branda) Change in the trend b) Availability c) Advertisement d) Pricee) Social media

Frequency Percent

Change in the trend 68 22.7%Availability 121 40.3%Advertisement 49 16.3Price 09 3%Social media 53 17.7%Total 300 100%

Interpretation:

The above chart shows that19. Which personal factor do you consider the most when it is about the soaps?a) Age and life cycle stage b) Occupation c) Economic situation d) Lifestyle

Frequency Percent

Age and life cycle stage 106 35.3%Occupation 57 19%Economic situation 74 24.7%Lifestyle 63 21%

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Total 300 100%Interpretation:

The above chart shows that

20. Which of the following promotions entice you?a) Buy one get one free b) Sample selection c) Money off next purchase d) Loyalty card scheme e) High discount

Frequency Percent

Buy one get one free 101 33.7% Sample selection 59 19.7%Money off next purchase 10 3.3%Loyalty card scheme 37 12.3%High discount 93 31%Total 300 100%Interpretation:

The above chart shows that21. Which is the major factor you look while buying your soapa) Brand name b) Antiseptic quality c) Beauty care d) Price

Frequency Percent

Brand name 127 42.3%Antiseptic quality 67 22.3%Beauty care 56 18.7%Price 50 16.7%

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Total 300 100%Interpretation: The above chart shows that

22. Which role do you play in your family regarding purchasing of a soap?a) Influencer b) Decision maker c) Buyer d) User

Frequency Percent

Influencer 68 22.7%Decision maker 64 21.3%Buyer 130 43.3%User 38 12.7%Total 300 100%

Interpretation:

The above chart shows that

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