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Executive Summary

Hindustan Unilever Limited (HUL) is an Indian consumer goods company based


in Mumbai, Maharashtra. It is owned by Anglo-Dutch company Unilever which owns a 67%
controlling share in HUL. HUL is the market leader in Indian consumer products with
presence in over 20 consumer categories such as soaps, tea, detergents and shampoos
amongst others with over 700 million Indian consumers using its products. Its soap brands
include
Hamam
Pears
Lifebuoy
Dove
Breeze
Liril
Rexona
Axe
Here, the objective is to understand who the primary decision maker in a household is and
what the parameters which decide the buying behavior are. This will help HUL to better
position and target a particular market segment for its product LUX.

I.

Introduction

Soap was introduced in India by the Lever Brothers during the British reign in the
country. There after soaps were imported from England and marketed in India. However the
first local soap manufacturing unit was set up by Mr. Jamshedji Tata in Cochin, Kerala
around the period 1918.
Since then soaps have become an important part of the lives of the people of the
country. Today India has one of the most developed soap markets and is dominated by
numerous multinational and also quite a few major domestic companies. Some of the most
popular soap brands in India include Lux, Cinthol, Lifebuoy, Liril, Shikakai, Rexona, Nirma,
Dettol etc.
The soap market in India which was once only restricted to the urban regions has now
covered practically the remotest corners of the country. The ever increasing demand for
personal care products in India is mostly due to the sizable population, greater hygiene
concerns and the rising income levels of the people of the nation.
But the per capita consumption of soap in India is 800 gms as against USA 6.5kgs,4 kgs in
china and 2.5 kgs in Indonesia.
Market Capitalization:
The Indian soap market is ruled by three major giants; Hindustan Unilever Limited,
Godrej and Nirma. These three companies alone account for 84% of the total market share in
India. H.U.L. with its brands like Lux and Lifebuoy has dominated the Indian lather industry
since the last few decades. Nirma another top soap brand in India is one of the major
competitors of HUL and holds a 16% market share in the Indian soap market.
The primary aim of the top soap brands in India today is to expand the number of
rural consumers since the rural consumers consists of 70% of the total population of the
country . The overall soap penetration in Indian households is 88%. The top soap brands in
India are ranked according to usage and popularity since people belonging to different strata's
of societies use different brands of soap.

Overview of LUX Soap:


1916 Laundry soap
1925 Bathroom soap
India 1929
First brand ambassador: Leela Chitnis (1929)
Market share is almost equal to Lifebuoy
Prominent Variants:
Lux almond
Lux orchid
Lux fruit
Lux saffron
Lux sandalwood
Lux rose
Lux international
Lux chocolate
Lux aromatic extracts
Lux oil and honey glow etc.

Packaging:
Different colors Different variants( Saffron Saffron variants & Pink Rose extracts
etc.
)
Package

size

100gm,

120gm,

150

gm

Launched Mini Lux 45gm - Rs 5

Sales Promotion:
Lux gold star offer: 22 Carat Gold coin in the Soap First 10 caller (Extra 30 gm
gold)
Lux star bano, Aish karo contest: A special promotional pack of lux soap Scratch
card -50 lucky winner got the chance to meet Aishwarya rai.
Internal competitors
Lifebuoy: 1895, 18% Market shares
External competitors
Godrej consumers products limited (GCPL):
2nd Largest soap maker after HUL
9.2% Market share
Brands: Cinthol, Fairglow, Nikhar
Wipro:
Brand: Santoor (No 1 in AP) and Chandrika
ITC:
1.75% growth in initial five months
Brand: Superia, Fiama di wills and Vivel
Sold in six states
II.
Research Objectives
1. To understand the role of the husband, wife and children in the decision making
process for purchase of soap and determine who is the decision maker-male or female.
2. The decision maker can be dependent on a lot of demographic factors and this report
was commissioned to study the impact of these variables on the decision maker.
III.
Research Methodology
A disguised research approach has been adopted for this study. The flow of the research
process followed is as depicted below:

Exploratory Research and FGDs:


Keeping in mind the research objectives, the initial task undertaken was to conduct
one-on-one interviews from the Rau village (near Gate 2, IIM Indore) and students inside
campus. We also conducted FGDs consisting of 7-8 members inside campus. This generated
insights on buying and usage patterns in the category under study.
Questionnaire Design:

After the initial exploratory research, a set of focus areas and variables were zeroed
in, following which the questionnaire was designed. A thorough design and test of projective
techniques was carried out and a plan for conclusive research was prepared.
Data Collection:
The data was basically primary in nature. It was obtained from students of IIM Indore
and households nearby campus.
Data Analysis:
Data collected was analyzed using SPSS and excel.

IV.

Research Design

Type of research: Descriptive research


Sources of data: Primary Data
Primary Data: Questionnaire
Data collection method: Survey Method
Survey instrument: Questionnaire, method of communication
Sampling technique: Simple Random sampling
Sample size: 115 Sample unit
The first step of doing survey is to calculate the sample size needed. We calculated sample
size for interval scale verification:
n = [Z*s/e]2
Where
Z = Z score for the confidence level of 95%, z-1.96
s = population standard deviation for the variable to be measured
e = tolerable error in estimating the variable = 0.125
We have used interval from 1 to 5 in our questionnaire so for a scale rating from 1 to 5, range
can be calculated as
R=51=4
So, standard deviation, s = R/6
Thus,
s=4/6=0.666

(based upon 6 sigma)

n=[(1.96*0.66)/0.125]2
= 107.09
Hence we collected 115 surveys for our market research.
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V.

Analysis:

Descriptive Statistics
Dependent Variables: Decision Maker which is a Non-Parametric variable
Independent variables:
All demographic variables listed above, which are also non parametric
Dummy variables for non-parametric variables to assume them as metric

Data Analysis

Tests Run: The following tests were run for analyzing the data:
i. Kendalls Tau Correlation
ii. Logit Analysis

1. KENDALLS TAU CORRELATION


Kendall's rank correlation provides a distribution free test of independence and a measure of
the strength of dependence between two variables
Results of Kendalls Tau: The test examines the associative relationships between the two
non-metric variables in the following ways:
Determines whether a relation exists
Strength of the relationship
Significance of the relationship
Determining whether a relation exists:
To find the correlation between decision maker and all the demographic variables, we ran
Kendalls Tau and got the following results:
a) Soap Category: There is a significant correlation between the decision maker and
o Education level of both male and female
o Profession of female
Statistical Results from the test:
Soap Decision
Education Level Male
Education Level Female
Profession Female

Sig. (2-tailed)
0.021
Significant co-relation
0.026
Significant co-relation
0.048
Significant co-relation

Correlation Coefficient
-.163*
negatively co-related
-.156*
negatively co-related
.142*
positively co-related
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Inference:
Education level: When education level of male or female increases the value of
dependent variable decreases( move towards 0) i.e. a decision maker shifts from male
to female (Dependent variable: Male=1, Female=0)
Profession of female: when the female is more independent (lesser value of
independent variable) i.e. when she is a government employee or owns any business
or provides any service, decision maker shifts from male to female
Strength of the relationship
Though we are able to infer deviations in decision maker with the help of sign of coefficient
but the magnitude of Coefficient of correlation is not very strong. This may be due to a
relatively small sample size of the target group.
Significance of the relationship
The variables mentioned above have a relation with the decision makers of the soap
category, though the strength of the relationship is not very strong (correlation coefficient is
quite small)
Also factors other than one in the table do not make any difference to the decision. Hence,
the decision making may be considered independent of these variables on the basis of this
report.
2. LOGIT ANALYSIS
Logistic regression, also called a logit model, is used to model dichotomous outcome
variables. In the logit model the log odds of the outcome is modeled as a linear
combination of the predictor variables.

The related independent variables as per the results from Kendalls Tau test were
converted into dummy variables, and Logit analysis was ran on them.
The binary logit model deals with the issue of how likely is an observation to belong to
each group, and estimates the probability of an observation belonging to a particular
group
Binary groups: 1 = Decision maker is male; 0 = Decision maker is female

Inference:
The results from Logit analysis is shown below. There are no variables in the equation as per
significance level, except the constant part. Therefore, the logit equation (decision maker) is a
function of only the constant part, and no shortlisted demographic variable.

Results of LOGIT ANALYSIS


Soap Decision Maker
Variables in the Equation
B
Step 0 Constant .045

S.E.
.151

Wald
.091

df
1

Sig.
.763

Exp(B)
1.047

Variables not in the Equation

Step 0

ME2
ME3
ME4
ME5
FE2
FE3
FE4
FE5
Variables
FP2
FP3
FP5
C2
C3
C4
C5
C6
C7
Overall Statistics

Score
.008
1.061
3.221
1.486
.039
.554
2.674
.255
1.387
.015
1.201
3.240
.505
.118
1.997
1.933
3.929
21.173

df
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
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Sig.
.929
.303
.073
.223
.844
.457
.102
.613
.239
.903
.273
.072
.477
.731
.158
.164
.047
.219

Model Summary
Step
-2 Log likelihood
Cox & Snell R Square
Nagelkerke R Square
1
220.449a
.125
.166
a. Estimation terminated at iteration number 20 because maximum iterations has been
reached. Final solution cannot be found.

3. Simple Tabulation:
We have collected total 115 surveys out of which 79 people reside in urban area, 27 in semiurban area and rest 9 has belong to rural.
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1. Regional division

2. Brand of soap mostly used at home


Brand

Percentage

Lux

Number
of people
18

Lifebuoy

4%

Hamam

14

11%

Pears

32

28%

Others

45

39%

Total

115

100%

15%

3. Decision maker

4. Effective Communication Media

Media

Word
Mouth
TV Add

Number Percentage
of
people
of 45
39%
43

37%

Newspaper

4%

Celebrity
endorsement
Others

6%

15

14%

Total

115

100%

2) Tabulation of various parameters of soap:


Price

Lather giving property

Packaging Design

10

Colour

Moisturizing attribute

Shape
11

Demographics:
Gender

Marital status

Family structure

Education qualification
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VI.

Findings:

We found that
15% people use Lux at their home
We found that price and moisturizing attribute is an important factor which
influences the purchase of soap.
TV advertisement and word of mouth are the most important medium of
communication.
56% of the time, female of the household decides the brand of soap to be used
VII.

Final Recommendations:
i. Based on the analysis done and inferences, we recommend that
communication strategy of each category can be tweaked based on:
1. who is the decision maker
2. when does (at what stage) he/she becomes the decision maker
Both male and female are decision makers here, slightly skewed
towards female, mostly women takes charge when
She is educated
She is earning and independent and decided what she will use
ii.

iii.
iv.

Hence customer satisfaction plays a major role in this industry as existing


customer do word of mouth publicity, which in turn helps in bringing new
customer.
Also it is seen from survey that TV ads plays a critical role while deciding
for purchase of soap. Hence more focus should be given to it in future.
To increase the customer base and to enhance the customer satisfaction,
HUL (for its product LUX) should focus on price, product quality (such as
lather giving capability, fragrance, moisturizing capability etc.).

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