Henko Brand

Positioning in
Detergent Industry
Factor Analysis Approach

Analytical Marketing
Under guidance of
Prof. Srinivas Prakhya

Prepared by:
Dharmesh Gandhi
Alok Shukla
Kaveri Ingale
Kumar Ashutosh
Venkata Phani Prasad Chavali
Apurva Pushpen Thanawala

Contents
1

Introduction...........................................................................................................................................3

Approach ...............................................................................................................................................3

Qualitative Analysis ...............................................................................................................................4

Analysis for detergent brands ...............................................................................................................7

4.1
4.1.1

No rotation ............................................................................................................................................11

4.1.2

Varimax rotation....................................................................................................................................12

4.1.3

Promax rotation (allow the factors to be correlated) ...........................................................................13

4.2

Two Factor Solution: .................................................................................................................................... 9

Three Factor Solution: ...............................................................................................................................14

4.2.1

No rotation ............................................................................................................................................15

4.2.2

Varimax rotation....................................................................................................................................16

4.2.3

Promax rotation.....................................................................................................................................19

Analysis with Surf Excel, Ariel and Henko ...........................................................................................22

5.1

Two Factor Solution: ..................................................................................................................................24

5.2

Three Factor Solution: ...............................................................................................................................25

5.2.1

No rotation ............................................................................................................................................26

5.2.2

Varimax rotation....................................................................................................................................27

5.2.3

Promax rotation.....................................................................................................................................28

Recommendation and Conclusions.....................................................................................................31

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1 Introduction
The case we have taken here is of the detergent industry. The motive was to select a brand that has not been
doing well and do a repositioning exercise. From the newspapers sources, we found that approximately share
for the HULs Surf Excel is 14%, P&Gs Ariel is 3% and Henkels Henko is 1%. Considering the fact that Henkel is
operating in India since early 90s, and still has not make any significant progress in terms market share, we
selected this brand for repositioning.
The idea is to find out the core factors driving the consumer choice. The approach was to do a dip stick survey
to find out the observable attributes that are important to the consumer (decision maker). From this we try to
find the unobservable latent factors that are driving these attributes. Then we map the chosen brands on these
factors to get a perceptual map.
We also reduce the consideration set to just the competing brands of Henko to see if the results make more
sense. This perceptual map is then used to get an insight of where these different brands figure in the minds of
the consumer. Hopefully, then it can become very clear where Henko is going wrong and an approach to correct
that can be figured out.

2 Approach
Firstly, we do a qualitative analysis to get a feel of the situation on the ground. To do that we analyze the
advertisements for the different brands in the industry and try to understand what the brand managers are trying
to portray and what is the positioning stance taken by the different brands.
To be able to figure out the factors, we needed to have data at our disposal which would quantify the various
perceptions of different users of detergents.
To design our survey attributes, we first went ahead with a dip stick survey to understand the various factors that
are considered by a consumer while buying his/her choice of detergent powder.
The factors thus distilled out of the dip-stick survey were as follows.

Wash Quality
Price
Fragrance
Packaging
Appropriateness for washing machine
Brand Recall
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 Gentle on Hands
We gave equal weight age to these attributes. Probably, the weight ages of these attributes would be different in
a consumers mind. However, we shall start with this and see whether the results are intuitive enough.
Once these variables were decided, the next task was to define the questionnaire. The idea of the end result of the
survey was to be able to create a perception map of the brands in question and figure where Henko figures among
those.
To meet the goal we decided to pick up well known brands (along with Henko) to figure in our questionnaire. The
brands thus picked up were Surf Excel, Ariel, Rin and Nirma.
Sample set of questions (that were put for each of these brands) is as follows.

How would you rate the "wash quality" of Surf Excel?

How do you rate the fragrance of Surf Excel?
How attractive is the packaging of Surf Excel?
Do you think Surf Excel is appropriate for a washing machine?
Do you think that Surf Excel is gentle on your hands?
How do you rate the brand recall of Surf Excel?

The survey was a web survey and was floated to decision makers mainly in the IT segment. We got around 80
responses which we used for the analysis.

3 Qualitative Analysis
Brand Positioning and Imagery as conveyed through the advertisements
Brand
S.No.

Proposition/Positioning

Advertising Imagery*

Name
Specific emphasis on school kids
.Mothers now have the freedom to

Stain Removal, Less Water,

let their kids experience life without

Special offering for Washing

worrying about stains. An

Machine, Extra Bright Clothes.

association with colour BLUE to

Middle and premium segment.

imply a whitening characteristic,

Surf Excel

though the new offerings have white

color detergent.

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Middle class woman going to a bank

"Best clean with less effort", For
to send money order to his old
heavty duty laundry. Mass
2

Wheel

father. Clear focus on savings.

market consumers.
Economy brand. Empowerment of
Lower & medium-price segment.
women.
Typical rainy season problems
Whiteness, Value proposition
associated with wearing white
when offering some smaller
clothes. Humorous ad. "White ho to
packs at Rs. 11/- motivating
Tide ho is a nice way to rhyme the
intention to buy aspect, reaching

Tide

word and make it easy to recall.

both lower & upper class
Trying to create transaction utility by
segment consumers through
crossing out 43 and promoting the
these introductory packings.
price as Rs. 23/- . Significantly above
For mid-priced segment
the JND.
Celebrity(Juhi Chawla) used along
with a person in a doctor's apprin -

Stain Removal, Oxygen power,

shining WHITE. Use of oxygen

Kills germs. washing machine

baloon to attract attention. Trying to

Henko
portay country of origin (Germany)
Middle and premium segment.

to highlight quality, but not stated

that explicitly. Boring informational
ad.

Whiteness benefit. Lime and

College going guy and housewife

indigo ingredient. Mass market

emphasizing on whiteness of clothes

consumers.

Monotonous, Boring ad with not

Lower & medium-price segment.

much audio video for quick recall.

Mr White

The flash of light is synonymous with

the brand Rin The characters used in
Whiteness, Superior cleaning.
6

Rin

a regular day to day environment so

Lower price segment
that people can relate with them,
middle class environment
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Ariel

Stain removal, fragrance, washing

Technology focus. Packaging with

machine. Medium and premium

celebrity Zaheer khan. No audio

segment. oxygen-oxyblue, oxyrich

video repetition, jingle etc.

"Washing powder Nirma" a popular
jingle etched in consumer's mind.

Whiteness. Lower price

Dancing girl imagery. Same audio /
8

Nirma

segment.No special benefits of

visual identity since many years.
the powder mentioned.
Good brand recall. "sabki pasand
nirma"- mass market appeal.

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4 Analysis for detergent brands

The analysis of the detergent survey data is done for finding the factors and their loading. We started with two
factor analysis on the given set of data. The brands in consideration are Surf Excel, Henko, Rin, Ariel and Nirma.

The scree plot indicates the fact that most of the variance is explained by the first factor.

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Correlation Matrix

Correlation

Wash
Quality
1

Wash Quality

Fragrance
0.708

Packaging
0.631

Washing
Machine
Appropriateness
0.693

Gentle
on
hands
0.589

Brand
Recall
0.595

Price
0.526

Fragrance

0.708

0.672

0.681

0.612

0.481

0.506

Packaging

0.631

0.672

0.631

0.521

0.497

0.497

Washing
Machine
Appropriateness

0.693

0.681

0.631

0.591

0.467

0.651

Gentle on
hands

0.589

0.612

0.521

0.591

0.427

0.445

Brand Recall

0.595

0.481

0.497

0.467

0.427

0.335

Price

0.526

0.506

0.497

0.651

0.445

0.335

There is a significant amount of correlation across the factors underscoring the usefulness of factor analysis. (They
have to be correlated if they are representing the same underlying set of latent variables).
Determinant=.02 => there is no singularity in the data.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure

.908

of Sampling Adequacy.
Bartlett's Test of Sphericity

Approx. Chi-Square
df
Sig.

1549.372
21
.000

KMO value of 0.908 indicates suitability of factor analysis. Bartletts test is also significant.

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4.1 Two Factor Solution:

Communalities
Extraction
Wash Quality

.739

Fragrance

.689

Packaging

.586

Washing Machine

.793

Appropriateness
Gentle on hands

.491

Brand Recall

.445

Price

.544

Extraction Method: Maximum Likelihood.

However if we see the communalities matrix, the Gentle on hands and Brand Recall attributes have less than
50% of their variance explained. Even price and packaging have very less variance explained by the 2 factors.
Hence we might need to move onto 3 factors because of this significant data loss.

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Total Variance Explained

Extraction Sums of Squared Loadings
Factor

Total

% of Variance

Cumulative %

4.023

57.478

57.478

.264

3.772

61.250

Extraction Method: Maximum Likelihood.

In fact the second factor explains only 3.772% of the variance.

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4.1.1 No rotation
The factor loadings for two factor analysis shows that the first factor describes all the variables and the second
factor does not give any specific information about the loadings of the attributes.
Factor 1

Factor 2

Wash Quality

.842

.171

Fragrance

.823

.107

Packaging

.761

.085

Washing Machine Appropriateness

.862

-.223

Gentle on hands

.699

.056

Brand Recall

.609

.273

Price

.675

-.298

2 Factor No Rotation

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4.1.2

Varimax rotation

Factor 1

Factor 2

Wash Quality

.729

.455

Fragrance

.671

.488

Packaging

.610

.462

Washing Machine Appropriateness

.473

.755

Gentle on hands

.545

.440

Brand Recall

.630

.221

Price

.285

.681

2 Factor Varimax Rotation

Varimax rotation provides two factors which explain two choices. First factor explains the brand, wash quality,
packaging etc. The second factor explains washing machine appropriateness and price.
Total Variance Explained
Extraction Sums of Squared Loadings
Factor

Total

% of Variance

Cumulative %

Rotation Sums of Squared Loadings

Total

% of Variance

Cumulative %

4.023

57.478

57.478

2.353

33.620

33.620

.264

3.772

61.250

1.934

27.630

61.250

Here, the variance is distributed across the 2 factors in a much more even manner and a perceptual map makes
more sense here.

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4.1.3

Promax rotation (allow the factors to be correlated)

Pattern Matrix
Factor 1

Factor 2

Wash Quality

.752

.128

Fragrance

.638

.223

Packaging

.567

.230

Washing Machine Appropriateness

.129

.783

Gentle on hands

.485

.248

Brand Recall

.784

-.151

Price

-.099

.816

2 Factor Promax Rotation

Factor Correlation Matrix

Factor

1.000

.811

.811

1.000

Here you can see that the factors are highly correlated

As discussed earlier, a 3-Factor solution might be more appropriate

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4.2 Three Factor Solution:

Objective: We further tried to go for three factor solution to see if it provides additional information on the
detergent attributes.

Communalities
Extraction
Wash Quality

.708

Fragrance

.867

Packaging

.580

Washing Machine

.805

Appropriateness
Gentle on hands

.485

Brand Recall

.707

Price

.534

The communalities show a better result compared to the 2 factor solution. However the Gentle on Hands is
still not adequately explained.
Extraction Sums of Squared Loadings
Total

% of Variance

Cumulative %

4.056

57.945

57.945

.366

5.234

63.179

.262

3.742

66.921

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The 3 factor solution explains around 5% more variance than the 2 factor solution and the communalities also
suggest a better explanation of the attributes.
4.2.1

No rotation

The factor loadings for three factor analysis for all the five products shows that the first factor describes all the
variables and the second & third factor does not give a lot of information about the loadings of attributes.
Factor 1

Factor 2

Factor 3

Wash Quality

.831

.130

.012

Fragrance

.882

-.165

-.248

Packaging

.761

.023

-.014

Washing Machine

.842

-.083

.300

Gentle on hands

.696

-.014

.009

Brand Recall

.631

.552

-.061

Price

.647

-.098

.325

Appropriateness

Three Factor Analysis with No Rotation

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4.2.2

Varimax rotation

Factor 1

Factor 2

Factor 3

Wash Quality

.481

.488

.488

Fragrance

.380

.805

.273

Packaging

.443

.500

.364

Washing Machine Appropriateness

.756

.395

.279

Gentle on hands

.430

.458

.300

Brand Recall

.208

.235

.780

Price

.661

.257

.175

Three Factor Analysis with Varimax Rotation

4.2.2.1 Perceptual Map Three factor Varimax Rotation

Factor-1:
Factor-2:
Factor-3:

Price,
Washing
machine
appropriateness
Wash Quality, Packaging, Gentle to hand
Brand Recall

Three-factor perceptual map has been broken into three two-dimensional perceptual map for better
understanding. The three maps are drawn against three factor solutions achieved in the previous section.

Basic Features

Washing Machine
Appropriateness (Premium-ness)

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The first perceptual map shows that Henko is placed poorly with factor 2, which means wash quality and
packaging is not so good. Also it is not perceived as gentle to hand. It scores positive on the washing machine
appropriateness and price, but again it scores low with respect to other brands.

Brand
Recall

Washing Machine Appropriateness

(Premium-ness)
Henko is having a very poor brand recall; in fact it is having the lowest brand recall in the five brands studied. Surf
scores the highest and Nirma is the only other brand which is having negative score in brand recall. <Please explain
further>

Brand
Recall

Basic Features
This perceptual map shows brand positions with respect to Factor-2 and Factor-3. Henko is very poorly placed if
these two factors are considered.

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Total Variance Explained

Extraction Sums of Squared Loadings
Factor

Total

% of Variance

Cumulative %

Rotation Sums of Squared Loadings

Total

% of Variance

Cumulative %

4.056

57.945

57.945

1.810

25.856

25.856

.366

5.234

63.179

1.622

23.169

49.024

.262

3.742

66.921

1.253

17.897

66.921

Extraction Method: Maximum Likelihood.

The rotation spreads the variance across these factors which might make the perceptual map more relevant.

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4.2.3

Promax rotation

Factor Correlation Matrix

Factor

1.000

.818

.681

.818

1.000

.730

.681

.730

1.000

There is a high degree of correlation amongst these factors as expected.

The significant factors have been highlighted.

Factor 1

Factor 2

Factor 3

Wash Quality

.269

.337

.318

Fragrance

-.059

1.046

-.095

Packaging

.235

.435

.151

Washing Machine

.837

.085

-.016

Gentle on hands

.264

.396

.084

Brand Recall

-.070

-.051

.922

Price

.817

-.051

-.070

Appropriateness

Three Factor Analysis with Promax Rotation

The 3 factor promax solution has the cleanest output.

The factor 1 is the clearly the washing machine appropriateness factor which commands a premium in the
market probably because of the target segment differentiation.

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Factor-1: Washing Machine Appropriateness (and/or price)

(Premium-ness)
Factor-2: Fragrance
Factor-3: Brand Recall
4.2.3.1 Perceptual Map- Three factor promax rotation

The axes are shown orthogonal just for the sake of representation

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The analysis till now has been over the five brands that have been assumed to constitute the industry.
However, Henko effectively competes only with Surf Excel and Ariel. So it might make sense to only look at the
data for Surf Excel, Henko and Ariel.

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5 Analysis with Surf Excel, Ariel and Henko

Correlation Matrix

Packaging
0.623

Washing
Machine
Appropriateness
0.666

Gentle
on
hands
0.578

Brand
Recall
0.753

Price
0.511

1
0.618

0.618
1

0.608
0.603

0.535
0.459

0.547
0.69

0.343
0.504

0.666

0.608

0.603

0.492

0.631

0.483

Gentle on hands

0.578

0.535

0.459

0.492

0.523

0.235

Brand Recall

0.753

0.547

0.69

0.631

0.523

0.544

Price

0.511

0.343

0.504

0.483

0.235

0.544

Wash
Quality
1

Fragrance
0.653

Fragrance
Packaging

0.653
0.623

Washing
Machine
Appropriateness

Wash Quality

There is a significant amount of correlation across the factors underscoring the usefulness of factor analysis.
(They have to be correlated if they are representing the same underlying set of latent variables).

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As was the case with the all-brands case, most of the variance can be explained by one factor itself.
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure

.891

of Sampling Adequacy.
Bartlett's Test of Sphericity Approx. Chi-Square
df
Sig.

936.039
21
.000

KMO value of 0.891 indicates suitability of factor analysis. Bartletts test is also significant.
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5.1 Two Factor Solution:

Communalities
Extraction
Wash Quality

.737

Fragrance

.881

Packaging

.610

Washing Machine

.583

Appropriateness
Gentle on hands

.402

Brand Recall

.804

Price

.390

As can be seen in the communalities output, the Gentle on Hands and Price attributes are not explained
significantly
Extraction Sums of Squared Loadings
Factor

Total

% of Variance

Cumulative %

3.964

56.629

56.629

.441

6.305

62.934

The 2 factors explain around 63% of the variance which is about the same as when compared with the all
brands case.

The factor loadings for two factor analysis shows that the first factor describes all the variables and the second
factor does not give any specific information about the loadings of the attributes.
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Factor 1

Factor 2

Wash Quality

.842

.168

Fragrance

.854

-.390

Packaging

.771

.124

Washing Machine Appropriateness

.758

.094

Gentle on hands

.633

.001

Brand Recall

.814

.376

Price

.543

.309

2 Factor No Rotation

So looking at the above scenario, it makes sense to look at the 3 factor solution.

5.2 Three Factor Solution:

Objective: We further tried to go for three factor solution to see if it provides additional information on the
detergent attributes.
Communalities
Extraction
Wash Quality

.755

Fragrance

.999

Packaging

.624

Washing Machine

.583

Appropriateness
Gentle on hands

.549

Brand Recall

.776

Price

.514

All the variables have more than 50% of their variance explained which can be termed satisfactory.
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5.2.1 No rotation
The factor loadings for three factor analysis shows that the first factor is strongly loaded with most of the variables
but mostly with fragrance, wash quality and packaging. The second factor is strongly loaded with brand recall ,
wash quality and price. The 3rd factor has relatively weaker factor loadings.
Factor 1

Factor 2

Factor 3

Wash Quality

.656

.560

.101

Fragrance

.999

-.005

.000

Packaging

.621

.472

-.124

Washing Machine

.611

.458

-.013

Gentle on hands

.537

.337

.383

Brand Recall

.551

.687

.003

Price

.346

.537

-.324

Appropriateness

Three Factor Analysis with No Rotation

So this makes a strong case for rotating the solution and getting a cleaner solution that is more intuitive.

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5.2.2

Varimax rotation

Wash Quality

Factor 1
.552

Factor 2
.582

Factor 3
.333

Fragrance

.267

.355

.895

Packaging

.605

.346

.373

Washing Machine
Appropriateness

.527

.425

.353

Gentle on hands

.186

.660

.280

Brand Recall

.679

.525

.201

Price

.695

.117

.130

Three Factor Analysis with Varimax Rotation

In contrast with the all brands case, the washing machine appropriateness is not that strong an attribute in driving
the factor loadings.
Factor-1: Price, brand recall, packaging
Factor-2: Gentle on hands, brand recall, wash quality
Factor-3: Fragrance

Extraction Sums of Squared Loadings

Factor

Total

% of Variance

Cumulative %

Rotation Sums of Squared Loadings

Total

% of Variance

Cumulative %

2.900

41.430

41.430

1.998

28.540

28.540

1.622

23.172

64.602

1.491

21.294

49.834

.278

3.968

68.570

1.312

18.736

68.570

Around 6% more variance is explained by a 3 factor solution compared to a 2 factor solution. The variance is
much more equitably distributed

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5.2.3

Promax rotation

Pattern Matrix
The significant factors have been highlighted.
Factor 1

Factor 2

Factor 3

Wash Quality

.351

.519

.058

Fragrance

-.028

.030

.995

Packaging

.589

.062

.207

Washing Machine

.420

.254

.163

Gentle on hands

-.244

.895

.036

Brand Recall

.607

.409

-.127

Price

.935

-.270

-.041

Appropriateness

Three Factor Analysis with Promax Rotation

As can be seen from the above factor loadings, the promax gives the cleanest solution which is expected given the
extent of correlation amongst the factors.
Factor Correlation Matrix
Factor

1.000

.798

.628

.798

1.000

.722

.628

.722

1.000

Factor-1: Price, brand recall

Factor-2: Gentle on hands, wash quality
Factor-3: Fragrance

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5.2.3.1 Perceptual Map- Three factor promax rotation

The axes are shown orthogonal just for the sake of representation

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6 Recommendation and Conclusions

It is very clear where Henko is lagging. It does not have the brand strength to compete with either Surf Excel or
Ariel in its category. It is interesting to note that as soon as we remove the brands Nirma and Rin, the washing
machine appropriateness as a driving factor is no longer there. Probably, that is what defines this particular
segment.
So, the obvious thing as expected would be to build its brand through better advertising, marketing reach and
channel reach to reach its target segment.

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