MBA Project (Ariel Excel Gel & Surf Excel)

Project: CONSUMER BUYING BEHAVIOR FOR DETERGENTS IN KARACHI

Nadeem A. Siddiqui – 2452-‐412024 Preston University, Karachi, Pakistan

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Preston University North Nazimabad, Karachi, Pakistan

MBA Project

Submitted to:

Ms. Sabeen Project Instructor

Prepared By:

Nadeeem Ahmed Siddiqui (2452-412024)



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CONSUMER BUYING BEHAVIOR FOR DETERGENTS IN KARACHI

VS.



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Contents

EXECUTIVE SUMMARY ................................................................................................. 6

LETTER OF TRANSMITTAL ........................................................................................... 7

LITERATURE REWIEW ................................................................................................... 8

The History of Detergents ................................................................................................ 8

KEY FINDINGS ............................................................................................................... 12

PROBLEM STATEMENT ................................................................................................ 13

RESEARCH OBJECTIVES .............................................................................................. 13

RESEARCH QUESTIONS ............................................................................................... 14

INDEPENDENT VARIABLES ........................................................................................ 15

DEPENDENT VARIABLES ............................................................................................ 15

METHODOLOGY ............................................................................................................ 15

RESEARCH DESIGN ....................................................................................................... 15

Data sources ....................................................................................................................... 15

Secondary Sources .......................................................................................................... 16

Research Strategy .............................................................................................................. 16

SAMPLE SIZE .................................................................................................................. 16

Research Instruments ......................................................................................................... 16

Respondent Profile ............................................................................................................ 17

Age .................................................................................................................................... 17

Gender ............................................................................................................................. 17

Location ........................................................................................................................... 17



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QUESTIONNAIRE ........................................................................................................... 18

Quantitative ....................................................................................................................... 23

Sampling ............................................................................................................................ 23

Sampling Procedure ........................................................................................................... 23

Questionnaire Design ........................................................................................................ 24

Secondary Sources .......................................................................................................... 24

Limitations ......................................................................................................................... 24

Lack of Experience ......................................................................................................... 24

Lack of Resource ............................................................................................................ 24

Lack of Extensive Research ........................................................................................... 24

DETAILED FINDINGS .................................................................................................... 25

Secondary Data: .............................................................................................................. 25

FUTURE ............................................................................................................................ 27

STATISTICAL ANALYSIS ............................................................................................. 29

HYPOTHESIS ................................................................................................................... 44

CONCLUSION ................................................................................................................. 46

RECOMMENDATION ..................................................................................................... 47

APPENDIX ....................................................................................................................... 48

ARTICLES ........................................................................................................................ 49



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ACKNOWLEDGMENT Firstly, I would like to thank All mighty ALLAH (SWT) for giving me the energy and

knowledge of putting this report together. Secondly I would like to thank my supervisor Teacher

Ms. Sabeen for being there and helping me throughout in combining and overlooking this report.

I would also like to thank our family members (specially my niece Nabiha Saif) and close friends

for providing me with the much needed moral support.



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EXECUTIVE SUMMARY This report contains research on consumer research regarding the use of detergents in

Karachi.

The main purpose of this report is to find out the market share of different detergents prevailing

in the market, use of detergents in the various market segments, as well as the impact of

marketing mix i.e. four P’s (Price, Place, Promotion and Product) on the purchase of detergents,

and the reasons behind preferring a particular formula or brand.

The data of this research was collected through surveys conducted on the sample of 100 people,

who uses any kind of formula to wash their clothes. From our survey we concluded that majority

of the respondent uses detergent to wash their clothes and, the consumers rank Surf Excel among

the top most preferred detergent. While selecting a detergent most of the consumers’ rate washing

capacity or performance (product) attribute as the preferred criteria. And according to our survey

people do get influence to buy any detergent for its price as well.

As for the survey regarding the usage of detergents, we conclude that Surf Excel is being used by

majority of customers to wash their clothes. Secondly product and price is the most influential

category to pursue customers to buy a detergent. Thirdly that most of the market segments uses

washing powder to wash their clothes in comparison with washing bars.



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LETTER OF TRANSMITTAL Ms. Sabeen, Project Instructor Final MBA Project Subject: Consumer research regarding detergents and consumer buying behavior relative to the marketing mix (Price, Place, Promotion and Product). Respected Madam: Our report is based on “Consumer research Detergents and consumer buying behavior” with a few detailed objectives, mentioned in the proposal. In this project report we tried to identify the detergent preferred by most households and consumer’s behavior towards buying different detergents. Our interviews and survey did give us some firsthand knowledge about the latest usage and preferences. We believe that the questionnaires returned are representative of consumers’ involvement in the study. We are grateful for your cooperation in this important study. Your review over the report would be useful in providing us with the feedback. It was a great learning experience and we are thankful for your overall support. Sincerely, Nadeem Ahmed Siddiqui (2452-412024) Preston University, Karachi Pakistan



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LITERATURE REWIEW

The History of Detergents

Detergents were developed due to the problems that occurred when organic soap was used in areas of hard water. Hard water contains the ions of Calcium and Magnesium in high amounts and these are substituted onto the soap molecule in place of sodium. The salts of Calcium and Magnesium are insoluble and form a precipitate; this is what leaves a 'ring' around the bath.

Other problems were encountered in the textile industry where acid solutions are used in the dying process. The free H+ ions replace the sodium ion reforming the fatty acid which affects the application of dyes and leaves spots on fabrics.

The first synthetic detergents were developed following the First World War by the Germans so that fat could be used for other purposes. The first synthetic detergents were Short-chain Alkyl Naphthalene Sulphonates which were later discovered to be only moderately good detergents and so were improved, but are still used today as wetting agents.

In the 1920's and 30's Straight chain alcohols were sulphonated to give straight chain detergents. In the 30's long chain alkyl and aryl sulphonates with benzene as the aromatic nucleus were developed. (The alkyl portion was derived from kerosene) By the end of World War 2 alkyl aryl sulphonates swamped the detergent market over alcohol sulphates which later became useful in the shampoo industry. It was a popular complaint at this time that whites dulled after washing, they weren't as white as white should be and this was linked to the use of synthetic detergents. Even though they were just as good as soaps at removing dirt, they were poor at holding it in suspension and the particles redeposited onto the clothing. The problem was overcome by the addition of CMC (car boxy methyl cellulose).

More recently the limiting factor that affected the production of specific detergents was availability of raw materials. This lead to the development of Igepon compounds in Germany and the USA (for example Igepon-T, the sodium salt of oleyl tauride), Mersolates in Germany (alkane sulphates), and Teepol in England (a secondary Olefine Sulphate from petrochemical sources). Alkyl Benzene Sulphonate was top of the market due to its ease of manufacture and versatility.

Between 1950 and 1965 more than half of the detergents were based on a propylene tetramer coupled to benzene (PT benzene), but they were later blamed for a rise in eutrophication in lakes and streams because they contained phosphates (from Sodium triphosphate). This problem has not been fully resolved in some cases, in some countries there has been a 'gentlemen’s



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agreement' to reduce the use of phosphates but in countries where it is not a major problem no such action has been taken. The problem was set down to the branched chain formation of PT benzene which resulted in the inability of bacteria to degrade them. Straight-chain alcohols are degradable, so steps were taken to produce a linear alkyl benzene molecule. To replace the phosphate based portions; in Scandinavian countries they now use NTA (Nitrilo triacetic acid).

Laundry detergent, or washing powder, is a substance which is a type of detergent that is added when one is washing laundry to help get the laundry cleaner. With a new emphasis on green, eco-friendly products, these soap nuts are becoming popular worldwide as a laundry detergent & all purpose cleaner. Laundry detergent has traditionally been a powdered or granular solid, but the use of liquid laundry detergents has gradually increased over the years, and the popularity of liquid detergent now rivals that of solid detergent. Some brands also manufacture laundry soap in tablets and dissolvable packets, so as to eliminate the need to measure soap for each load of laundry. In some countries where washing clothes by hand is more popular, detergent bars are more popular. Recently, environmentally friendly detergents have enjoyed a surge in popularity. In 1916, Germany developed the first synthetic detergent. These detergents are non-soap washing and cleaning products that are made chemically from a variety of materials. Nowadays people are using laundry detergent, synthetic detergent, washing machines & dryers. After 90s the concept of washing came into Pakistan people use to use khula powder, later on branded detergents were also launched in Pakistan that includes Surf excel, Ariel, Express power, Brite total & Bonus.



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Unilever Pakistan limited manufactures and markets oral care, personal care, surface and fabric care products The company's fabric care products include detergents under the brands. Surf excel, wheel etc.

Ariel is a marketing line of laundry detergent made by Procter & Gamble. It is the flagship brand in Procter & Gamble's United Kingdom, Mexico, Japan, Peru and Turkey portfolios. Ariel first appeared on the UK market circa 1968 and was the first detergent with stain-removing enzymes. It was a high-sudsing powder designed for twin-tub and top-loading washing machines. With the rise in popularity of automatic front-loading washing machines, a suitable low-suds variant was launched in the early 1970s. The mid-eighties saw the range expanding to encompass liquid detergent and compact powder. In 2003, Ariel brought out its quick wash action to its detergents, to allow consumers to be able to do their laundry on a quick wash cycle.



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Ariel Kurta certified ‘World’s Largest’ by GUINNES

Karachi January 31st 2008: Procter & Gamble Pakistan presented the Ariel World’s Largest Kurta, a Guinness World Record, at an elaborate ceremony in Karachi. The Kurta measures a staggering 101 feet in length and is large enough to be worn by a 175-foot tall person. Ariel World’s Largest Kurta is a unique symbol of national unity. As a national dress, worn by men, male/female and children, from Karachi to the Khyber, the Kurta captures the culture and identity of Pakistan. SURF EXCEL

It might sound strange for a leading laundry brand like Surf Excel to say that dirt is good, but healthy activities involving dirt are essential to development. It's how kids learn express their creativity and it bolsters their immune systems.

DIRT IS GOOD Surf Excel is the oldest detergent brand to be present in Pakistan since 1960. We have always believed that dirt is a valuable way to enrich our lives, both young and old. To ensure that everyone, anywhere in the country, can share in this initiative, we're investing heavily in developing a range that suits the pockets of all income groups. This has included launching affordable skus that not only offer the top-clean advantages of Surf Excel, but also reduce the time, physical effort and amount of water needed to wash clothes by hand.

KIDS ON BIKES Kids on Bikes, the largest activation of its kind was run in the top 6 cities of the country with a vision of bringing the positioning of Modern Parenting to the life for millions of Pakistani and to clearly illustrate the link between getting dirty and kids learning and development.



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KEY FINDINGS

o Almost all segments prevailing in the market prefers detergent as a medium to wash

their clothes.

o The brands such as Surf Excel and Ariel are the most famous brands among all the

segments of the market, i.e. majority uses Surf Excel and Ariel to wash their clothes.

o Surf Excel has the highest market share among all the brands prevailing in the market,

50% of consumers prefer to wash their clothes with Surf excel and the second place is

taken by Ariel with 30% respondents.

o The product category is the most preferred selection criteria for consumers to wash

their clothes, their detergent should be tough on stain, washing capacity and should

have good aroma as well.

o Price stands the second most preferred criteria that influence any consumer to

purchase a detergent.



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PROBLEM STATEMENT

Do the women living in different residential areas of Karachi prefer Unilever brand of detergent (surf excel) over P&G brand of detergent (Ariel). How do they respond to this brand (their buying behavior).

RESEARCH OBJECTIVES

The main purpose of this report is to find out the market share of different detergents prevailing in the market, use of detergents in the various market segments, as well as the impact of marketing mix i.e. four P’s (Price, Place, Promotion and Product) on the purchase of detergents, and the reasons behind preferring a particular formula or brand.

• TO DETERMINE THE CONSUMER BUYING BEHAVIOR WITH RESPECT TO BRANDS ARIEL AND SURF EXCEL

• TO DETERMINE THE FACTORS THAT INFLUENCES THE BEHAVIOUR OF CONSUMERS WHILE MAKING A CHOICE REGARDING THE DETERGENTS



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RESEARCH QUESTIONS 1. WHAT IS THE MOST IMPORTANT PHYSICAL ASPECT OF PERSONALITY TO

YOU?

2. WHAT ARE THE FEATURES THAT YOU LOOK FOR IN IDEALLY CLEAN CLOTHES?

3. WHICH MEDIUM DO YOU PREFER FOR CLEANING YOUR CLOTHES?

4. WHEN BUYING ITEMS YOU CHOSE ABOVE, WHAT ARE YOU LOOKING FOR?

5. DO YOU THINK ADVERTISEMENTS AND PROMOTION INFLUENCE PEOPLE’S

BUYING DECISIONS TO BUY A PRODUCT FOR THE 1ST TIME?

6. WHAT INFLUENCES YOU TO BUY A PRODUCT AGAIN AND AGAIN?

7. WHICH WASHING POWDER BRANDS DO YOU KNOW ABOUT?

8. WOULD YOU USE A…

a. BRANDED PRODUCT (JUST BECAUSE IT IS A BRAND EVEN AT HIGH PRICE)

OR

b. A PRODUCT WHICH BEST SUITS YOUR NEED AT AN AFFORDABLE

PRICE

9. WHICH FEATURES/ATTRIBUTES YOU SEEK IN A WASHING POWDER FOR CLOTH CARE?

10. WHAT IS YOUR OPINION ABOUT THE FEATURES OF THE CURRENT BRAND

YOU USE?

11. YOU BUY THE CURRENT BRAND FOR USAGE DUE TO…

12. WHICH BRAND YOU BUY IN DETERGENTS AND WHY?



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INDEPENDENT VARIABLES Following are the independent variables:

Price Availability Advertising Quality Packaging Distribution Income

DEPENDENT VARIABLES Increased purchase Repeat purchase Increased market share

METHODOLOGY I have tried to achieve my targets following a step by step procedure. In the first step I have collected the basic information about detergents offered by the companies like Unilever and P&G which has lead me to analyze that what brands in terms of detergents are highly preferred by the women living in different residential areas of Karachi. Women have been interviewed through a focus group in order to know about their preferences regarding different brands of detergents as well as their views regarding different aspects of brands like their usage, packaging, fragrance etc. Secondly, I have got the questionnaires filled up by women’s in different areas of Karachi. The data which I collected I have analyzed it with the help of application of various statistical tools. Lastly, I have also carried out various hypothesis tests to confirm my findings.

RESEARCH DESIGN My research is a descriptive research and there are four different methods available to me out of which I have selected to conduct a survey research. Basically selecting an appropriate research method depends on research objectives, availability of resources, and urgency of the decision and cost of obtaining the data.

Data sources Following are the data sources that would help me to meet the information needs I require to complete our research:



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Primary sources Acquiring data to meet the information needs will involve the interrogation of consumers. The purpose is to explore consumer attitudes concerning the information need areas such as availability, price, packaging and advertising etc. A set of questions would be asked in the form of a questionnaire to inquire from consumers regarding a certain factor or a product or according to a research requirement. One to one interviews were also conducted with sales representatives of some known superstores of Karachi. Following are the primary research methods I followed during my research study:

o Literature Survey o Focus Group o Questionnaire Survey

Secondary Sources

Information from all the previously published reports and articles related to the research has been used.

Research Strategy The study is based on a survey of 100 respondent women in various areas of Karachi, Pakistan. We selected women from various areas as per convenience randomly. I approached women of different areas as secondary respondents. I have carried this research for about two weeks to get my questionnaires filled from women who are true representatives of the population to come up with valid findings.

SAMPLE SIZE Formula; SAMPLE SIZE = (Z)2 * (STANDARD DEVIATION) 2

(STANDARD ERROR) 2

SAMPLE SIZE= (1.96) 2 * (1.50)2

(0.293)2 SAMPLE SIZE= 100 Respondents

Research Instruments Questionnaires have been the appropriate tools for conducting the research.



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Respondent Profile

Age

Age of the respondents is divided into following categories: • 16 – 20 years

• 21 – 25 years

• 26 – 30 years

• 31 – 35 years

I have selected the above divisions so as to broadly include women with various profession backgrounds.

Gender

I have decided to keep the women ratio as the following out of our 100 questionnaires. • Females: 100%

Location

I have selected Karachi as the base of my research because it is one of Pakistan’s flourishing cities, with a booming urban population.



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QUESTIONNAIRE

GIVE YOUR PERSONALITY A BRANDED ‘FIERY FLARE’! PURPOSE OF THE RESEARCH:

The main purpose of this report is to find out the market share of different detergents prevailing in the market, use of detergents in the various market segments, as well as the impact of marketing mix i.e. four P’s (Price, Place, Promotion and Product) on the purchase of detergents, and the reasons behind preferring a particular formula or brand.

TO DETERMINE THE CONSUMER BUYING BEHAVIOR WITH RESPECT TO BRANDS ARIEL VS. SURF EXCEL

TO DETERMINE THE FACTORS THAT INFLUENCES THE BEHAVIOUR OF CONSUMERS WHILE MAKING A CHOICE REGARDING THE DETERGENTS

INTRODUCTION I am a student of Preston University, Karachi and doing a research on “Peer Pressure”. I would like to invite you to join this study. BACKGROUND INFORMATION: Peer pressure affects vast array of people from their childhood. Children and teenagers feel social pressure to conform to the group of peers with whom they socialize. This peer pressure can influence how children dress, what kind of music they listen to, and what types of behavior they engage in, including risky behaviors such as using drugs, cigarettes, and alcohol. PURPOSE OF THIS STUDY: Purpose of this study is to know the vital changes in behavior and problems caused by the peer pressure. Also to search for the positive aspects of the peer pressure, and how a person use these techniques to get the benefits from them. POSSIBLE RISKS OR BENEFITS:

There is no risk involved except your valuable time. There is no direct benefit to you also. However, the result of the study may help me to formulate guidelines for the people who are suffering from peer pressure. RIGHT OF REFUSAL TO PARTICIPATE AND WITHDRAWAL: You are free to choose to participate in the study. You may refuse to participate without any loss of benefit which you are otherwise entitled to. You may also withdraw any time from the study without any adverse effect. You may also refuse to answer some or all the questions if you do not feel comfort with those questions.



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CONFIDENTIALITY:

The information provided by you will remain confidential. Nobody except principal investigator will have an access to it. Your name and identity will not be disclosed at any time. AUTHORIZATION: I have read and understand this consent form, and I volunteer to participate in this research study. PARTICIPANT‘S SIGNATURE INVESTIGATOR SIGNATURE

YOU’RE AGE GROUP:

16 – 20 21 – 25 26 – 30 31 – 35

YOUR RESIDENTIAL AREA 1 GULSHAN–E–IQBAL / GULISTAN–E–JOHAR. 2 NORTH NAZIMABAD / F. B. AREA. 3 P.E.C.H.S / TARIQ ROAD. 4 DEFENCE / CLIFTON / KDA SCHEME I. 5 OTHER.

WHAT IS YOUR/ FAMILY’S MONTHLY INCOME?

1 20000 – 40000 2 41000 - 70000 3 70000 AND ABOVE

1. WHAT IS THE MOST IMPORTANT PHYSICAL ASPECT OF PERSONALITY TO

YOU? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________ 2. WHICH DO YOU THINK IS THE MOST IMPORTANT FOR YOUR

PERSONALITY?(TICK ONE)

¨ HAIR ¨ CLOTHES ¨ ANY OTHER



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3. WHAT ARE THE FEATURES THAT YOU LOOK FOR IN IDEAL HAIR? (RANK 1-7 IN ORDER OF PREFERENCE)

¨ __SHINE ¨ __LENGTH ¨ __VOLUME ¨ __SILKINESS ¨ __TEXTURE ¨ __DANDRUFF FREE ¨ __NO FALL

4. WHAT ARE THE FEATURES THAT YOU LOOK FOR IN IDEALLY CLEAN

CLOTHES? (RANK 1-7 IN ORDER OF PREFERENCE)

¨ __NO VISIBLE STAINS ¨ __CLEAN ¨ __BRIGHTNESS ¨ __BRISKNESS ¨ __COLOR PRESERVATION ¨ __FRAGRANCE

5. YOU WASH YOUR CLOTHES BY:

• HANDS • WASHING MACHINE • OTHER (SPECIFY):_________________ 6. WHICH MEDIUM DO YOU PREFER FOR CLEANING YOUR CLOTHES? (PICK ONE)

¨ SOAP BARS ¨ LIQUID SOAPS ¨ DETERGENTS (WASHING POWDER) ¨ NOODLE SOAPS ¨ OTHERS

7. WHEN BUYING ITEMS YOU CHOSE ABOVE, WHAT ARE YOU LOOKING FOR? (TICK 1)

¨ STYLE/DESIGN ¨ QUALITY ¨ LABEL/BRANDS ¨ NECESSITY/UTILITY ¨ OTHER REASONS



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8. DO YOU THINK ADVERTISEMENTS AND PROMOTION INFLUENCE PEOPLE’S BUYING DECISIONS TO BUY A PRODUCT FOR THE 1ST TIME?

¨ YES ¨ NO ¨ I DON’T KNOW

9. WHAT INFLUENCES YOU TO BUY A PRODUCT AGAIN AND AGAIN (RATE OUT OF 1 TO 10)

• FEATURES / ATTRIBUTES___/10 • ADVERTISEMENTS___/10 • COMPANY NAME___/10 • PACKAGING___/10 • CELEBRITY ENDORSEMENT___/10 • FRIENDS___/10 • FAMILY___/10 • INCOME___/10 • OTHERS (SPECIFY): ________________

11. WHICH WASHING POWDER BRANDS DO YOU KNOW ABOUT??

• AERIAL • SURF EXCEL • NONE

12. WOULD YOU USE A…

¨ BRANDED PRODUCT (JUST BECAUSE IT IS A BRAND EVEN AT HIGH PRICE) OR

¨ A PRODUCT WHICH BEST SUITS YOUR NEED AT AN AFFORDABLE PRICE 13. WHICH FEATURES/ATTRIBUTES YOU SEEK IN A WASHING POWDER FOR CLOTH CARE? (RANK FROM 1 TO 8 IN ORDER OF PREFERENCE)

¨ ___HARD STAIN REMOVING ABILITY ¨ ___SHINE/BRIGHTNESS ENHANCEMENT ¨ ___COLOR PRESERVATION ABILITY ¨ ___TEXTURE PRESERVATION ABILITY ¨ ___FRAGRANCE ¨ ___FOAM ¨ ___NOT HARMFUL FOR CLOTHES AND HANDS ¨ ___AFFORDABLE PRICE



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14. WHAT IS YOUR OPINION ABOUT THE FEATURES OF THE CURRENT BRAND YOU USE?

• STRONGLY DISSATISFIED • DISSATISFIED • NEUTRAL • SATISFIED • STRONGLY SATISFIED

15. YOU BUY THE CURRENT BRAND FOR USAGE DUE TO…

¨ LOW PRICE ¨ FEATURES/ATTRIBUTES ¨ OTHER REASONS (SPECIFY): __________________________

16. WHICH BRAND YOU BUY AND WHY?

____SURF EXCEL ¨ HARD STAIN REMOVING ABILITY ¨ SHINE/BRIGHTNESS ENHANCEMENT ¨ COLOR PRESERVATION ABILITY ¨ TEXTURE PRESERVATION ABILITY ¨ FRAGRANCE ¨ FOAM ¨ NOT HARMFUL FOR CLOTHES AND HANDS ¨ AFFORDABLE PRICE ____ARIEL ¨ HARD STAIN REMOVING ABILITY ¨ SHINE/BRIGHTNESS ENHANCEMENT ¨ COLOR PRESERVATION ABILITY ¨ TEXTURE PRESERVATION ABILITY ¨ FRAGRANCE ¨ FOAM ¨ NOT HARMFUL FOR CLOTHES AND HANDS ¨ AFFORDABLE PRICE



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Quantitative The quantitative part of my research method included using a questionnaire survey. This survey was self-administered. My sample population consisted of people who were fluent in English and Urdu thus there was no problem with them filling the questionnaire. Also to increase the validity of the questionnaire I took participants from various areas of Karachi, so as to bring more diversity in the sample.

Sampling TARGET POPULATION Females who are housewives, and has a household income of more than 2000 rupees. EXTENT: Karachi city. AREAS:

• Gulshan-e-Iqbal • North Nazimabad • Federal B Area • Defence • Clifton • Others

SAMPLE SIZE: The sample size for the research project was 100 respondents.

Sampling Procedure The sampling procedure proposed for this research study is convenience sampling. A convenience sample is a sample where the respondents are selected, in part or in whole, at the convenience of the researcher. The reason for selecting this method of sampling was because I assumed that the people who will eventually fill the questionnaires would be using some kind of a washing formula to wash their clothes. Hence, the sample here obtained will be a representative of the population of users using washing powders or other washing formula. Particularly targets were housewives.



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Questionnaire Design Questionnaire was designed on the basis of achieving my objective, as I wanted to find out about the various market segments that use detergent as a medium to wash their clothes. I also intended to know about the market share of different brands prevailing in the market, and the effect of 4P’s (price, product, packaging and place) in the consumer’s mind

The basic approach to the preparation of the questionnaire was to ask questions that would make me achieve my target, my questionnaire contained questions that had close ended responses.

My questionnaire contained Nominal scale, Rating Scale and Rank Order Scale

questions.

Secondary Sources

Articles and related websites enabled us to gather:

• Total detergent powder growth in Pakistan • Major companies share in organized sector • Future Growth of detergent Industry • Detergent washing habits in developing countries

Limitations

I encountered the following hindrances while conducting this research:

Lack of Experience

Since this was the first time that I was conducting a research, the lack of experience may have contributed to any shortcomings in the report.

Lack of Resource

As a result of limited resources available to me, the amount of secondary data collected was restricted to just a couple of pages.

Lack of Extensive Research

The research is constrained to only as much as could be done by me in the given time to complete my report.



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DETAILED FINDINGS

Secondary Data:

DETERGENT INDUSTRY IN PAKISTAN Total world consumption of detergent product is difficult to estimate within an acceptable accuracy range due to the lack of proper information from many countries. However, a reasonable estimate will be around 10 million tons of detergent powder & around 4 million tons of other detergent of a product worldwide annually. In Pakistan detergent were introduced in the sixties. Pakistan being mainly a laundry soap markets, detergent was considered a product from top end of the markets & high duties were charged n both raw material & finished product. This made detergents expensive & a result the consumption remained low. The real increase in the use of detergents came in last five years. The two main reasons for this growth are: (a) Import duties on raw material were rationalized & reduced to same extent, the manufacturers passed on the benefits to the consumer & the detergent became more common & the detergent became more affordable in the markets. (b) The use of washing machines became more common & the consumer was looking for a product which was convenient to use & also protected the machine & detergent powder the consumer requirements.

Year 2014 2015 2016 2017 2018 2019 2020 Detergent Powder 110000 125000 144000 166000 188000 215000 256780

Bars, liquid

sources 15320 16075 16880 17725 18590 19250 20500

Growth of the detergent powders in Pakistan to the last three years has been above 15%This trend is expected to continue for other two to three years i.e. 2014 & thereafter the growth will be around 10% annually for the next six years (2020), provided some of recommendation of the industry are implemented



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LOCAL PRODUCTION: Main producers of detergent in the country are:

• Colgate Palmolive (Pakistan) Ltd. • Unilever (Pakistan) Ltd. • Procter & Gamble

These are importing detergent & marketing in Pakistan. This is possible due to decrease in import duties. DETERGENT POWDER SHARE 2013/2014 Share of organized sector 62% Share of unorganized sector 38% MAJOR COMPANIES SHARE IN ORGANIZED SECTOR

Colgate-Palmolive (Pakistan) ltd 47% Uni lever (Pakistan) LTD 35% Procter& gamble (Pakistan) LTD 16.8 %( imported) Others 12%

INGREDIENTS & FUNCTIONS Despite the wide variety of laundry products available today, all share the common attribute which is "cleaning" either of fabrics, house wears, floors& others. The basic & fundamental function of detergent, those related with the "cleaning process" are performed by number of ingredients & are related with a well known series of physiochemical steps taking place during the washing process.

Reduction of surface tension of water Waiting Soil removal Soil suspension Water hardness control & buffering affect

There are many other functions or attributes performed by other ingredients in the different laundry products although they are not linked to the cleaning process itself but rather with other aspects such as convenience. Some of the most significant secondary attributes are: Corrosion inhibition Whitening Foam stability/ control Viscosity improvements Mildness perfume Others



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FUTURE The consumer's demand for improved performance, convenience of use & value has driven an unprecedented level of innovation in the detergent industry worldwide resulting in a new household cleaning product. With the GOP decision to bring down duty levels on imports has now given the Pakistani consumer choice in the marketeering future only those manufacturers will survive who can complete in the market on quality as well as on the price. To be successful the detergent industry will also have to be competitive & adopt new technologies. Therefore it is very essential now more than the ever that the local manufacturer & GOP work hand in hand to ensure the development of industry. The present's per capita consumption of detergent in Pakistan is 0.77 kg p.a which is very low as compared to the neighboring countries, India 2.7 kg p.a, China 2 kg p.a, Malaysia & Philippines 3.7 kg p.a The reason for this low consumption in the country is the price of the detergents, which is still high. Looking at the present trends & the interest multinational companies are taking the detergent market, the future of detergent industry in the country.

Consumption Forecasting

0

50000

100000

150000

200000

250000

300000

2014 2015 2016 2017 2018 2019 2020



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DETERGENTS WASHING HABITS

COMPANIES SHARE IN ORGANIZED SECTOR

Developing Contries

Hand Wash

Washing Machine

Pakistan

Hand Wash

Washing Machine

35%

17%

47%

1%

Unilever (Pakistan)

Procter & Gamble (Pakistan)

Colgate Palmolive (Pakistan)

Others



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STATISTICAL ANALYSIS

1. The gender mix of the respondents:

Gender of the respondent Percent

Valid Male 25 Female 75 Total 99

Missing System 1 Total 100

ANALYSIS: The female are more dominant in my survey as compare to male and they are about 75% of the total respondents and only 25% are male.

25%

75%

Male

Female

Statistics Gender of the respondent Valid

Missing 99 1



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2. The area wise distribution and age mix of the respondents: Age

Age of the respondent

Percent Valid 15-19 21

20-25 14 26-30 38 31-35 26 Total 99


ANALYSIS: As it is very much evident from the above chart that the people with the age of between 26 and 30 are more dominant in my survey as these are mostly housewives. The people with the age of more than 31 are also play active role in my survey.

21%

14%

39%

26% 15-‐19

20-‐25

26-‐30

31-‐35



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B. AREA

Area of the respondent Percent

Valid Gulshan-e-Iqbal / Gulistan-e-Jauhar 14 N. Nazimabad / F.B.Area 43 PECHS / Tariq Road 17 DHA / Clifton / KDA 26

Total 100

ANALYSIS: The area, which I targeted more, was the F.B. Area, N. Nazimabad and Clifton area, which was very much convenient for me.

14%

43% 17%

26% Gulshan-‐e-‐Iqbal / Gulistan-‐e-‐Jauhar

N. Nazimabad / F.B.Area

PECHS / Tariq Road

DHA / Clifton / KDA



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3. Income distribution of the respondents:

Income of the respondent

Percent Valid 20,000 – 40,000 18

41,000 – 70,000 41 71,000 & Above 40


ANALYSIS: I tried my level best to get the views of all the class of our society. But I got most of the response from the middle and upper middle class of my society.

18%

41%

40%

1%

20,000 – 40,000

41,000 – 70,000

71,000 & Above

System



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4. the most important physical aspect of Personality.

Personality Percent

Valid Hairs 41 Clothes 47 Any Other 11


ANALYSIS: The respondents gave me the mix views regarding hair and clothes. Half of the people believe that the hair is the most important part of the personality and half believe that cloth is important part.

41%

47%

11%

1%

Hairs

Clothes

Any Other

System



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5. Preferred way for washing clothes.

Wash Cloths Percent

Valid Hands 35 Washing Machine 45 Any Other 19


ANALYSIS: Mostly the people preferred the washing machine rather than by washing it with their hands. Around 50% of the respondents preferred washing machine than any other.

35%

45%

19%

1%

Hands

Washing Machine

Any Other

System



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6. Preferred medium for washing clothes.

Cleaning Cloths Percent

Valid Soap Bars 41 Liquid Soaps 5 Detergent 44 Noodle Soaps 6 Other 3


ANALYSIS: We get the mix views in cleaning of the cloth half of the respondents preferred soap and other half preferred detergents.

41%

5%

44%

6%

3% 1%

Soap Bars

Liquid Soaps

Detergent

Noodle Soaps

Other

System



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8. Features looked for when buying detergent:

Features in buying Percent

Valid Style 35 Quality 25 Label 15 Necessity 19 Other reason 5


ANALYSIS: Mostly the people preferred style to quality and brand. They are more like to be in the fashion rather than preferred any others.

35%

25%

15%

19%

5% 1%

Style

Quality

Label

Necessity

Other reason

System



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9. The impact of advertisements and promotions on purchase:

Ads and Promo Influence Percent

Valid Yes 63 No 10 Don’t Know 26


ANALYSIS: Advertisement plays vital role in the purchases of any product. It is the most important factor, which may influence the purchasing decision of the people.

63% 10%

26%

1%

Yes

No

Don’t Know

System



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10. The products consumers are aware off:

DETERGENTS

Which washing powder brand do you know about? Percent

Valid Aerial 34 Surf Excel 55 None 10


ANALYSIS: Surf excel has got more preferences of detergents over the others. Mostly each and every one uses it.

34%

55%

10%

1%

Aerial

Surf Excel

None

System



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11. Prefer Branded products or the ones that best suit your needs:

You’ll use a brand product or a product, which best suites your need? Percent

Valid Branded Product 50 Product at affordable price 49


ANALYSIS: Half of the people prefer the branded items and other half preferred the normal goods.

50% 49%

1%

Branded Product

Product at affordable price

System



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12. Opinion regarding the current product use:

Opinion about features of brand you use Percent

Valid Strongly Dissatisfied 10 Neutral 19 Satisfied 50 Strongly Satisfied 20


ANALYSIS: About half of the respondents are satisfied with the products.

10%

19%

50%

20%

1% Strongly Dissatisbied

Neutral

Satisbied

Strongly Satisbied

System



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13. You buy the current Brand/Product due to ….. ?

You buy the current brand due to usage due to Percent

Valid Low Price 35 Features 49 Others 15


ANALYSIS: The people like the features of the products which they are using.

35%

49%

15%

1%

Low Price

Features

Others

System



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14. Which brand do you use and why?

A. IF SURF EXCEL

Which brand do you buy and why? If Surf Excel Percent

Valid Hard stain removing ability

39

Texture Preservation 29 Foam 11 Affordable Price 20


ANALYSIS: The people preferred the surf excel because of the ability of the hard stain removing.

39%

29%

11%

20%

1% Hard stain removing ability

Texture Preservation

Foam

Affordable Price

System



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B. IF ARIEL

Which brand do you buy and why? If Ariel Percent

Valid Shine 33 Foam 35 8.00 31


ANALYSIS: The customer also preferred the shiny feature of the product and as well as the foam.

33%

35%

31%

1%

Shine

Foam

8

System



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HYPOTHESIS Assumptions according to the Central Limit Theorem (CLT)

Large sample size (x >30). Population is assumed to be normally distributed. Sample mean is equal to the Population mean. Sample standard deviation is equal to population standard deviation/ sample size

H o: 60% respondents prefer washing capacity as a selection criterion while purchasing any detergent. H a: 60% respondents do not prefer washing capacity as a selection criterion while purchasing any detergent. Level of significance: 95%

1 - α = 0.95 α = 0.5 α/2 = 0.025

Critical values ± 1.96 Decision criteria: If the value of z-statistics lies between 1.96 and -1.96, accept the Ho, otherwise reject the Ho. N Mean Std. Deviation Selection Criteria 604 3.49 1.562 Valid N (list wise) 604

Data taken from Q.8 Z = (x- µ) σ/√n Z = (0.6 – 3.49) 1.562/ √604

Z= -2.89 ------- =-2.89/.0635 =-45.51 (Reject Ho) 1.562/24.57 We can be 95% confident that 60% of the respondents do not prefer washing capacity as a selection criterion while purchasing any detergent.



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Assumptions according to the Central Limit Theorem (CLT) Large sample size (x >30). Population is assumed to be normally distributed. Sample mean is equal to the Population mean. Sample standard deviation is equal to population standard deviation/ sample size

H o: 50% respondents prefer local detergent over imported ones H a: 50% respondents do not prefer local detergent over imported ones Level of significance: 95%

1 - α = 0.95 α = 0.5 α/2 = 0.025

Critical values ± 1.96 Decision criteria: If the value of z-statistics lies between 1.96 and -1.96, accept the Ho, otherwise reject the Ho. DATA TAKEN FROM Q.4 Descriptive Statistics N Mean Std. Deviation Detergent Prefer 604 1.80 .399 Valid N (listwise) 604

Z = (x- µ) σ/√n Z = (0.5 – 1.80) .399/ √604 Z= - 81.25 (Reject Ho) We can be 95% confident that 50% of the respondents do not prefer local detergent over imported ones.



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CONCLUSION The usage of a washing formula to wash clothes and hair is universal, and everyone, regardless of their economic condition uses one formula or the other to wash their clothes and hair. The entire world population, in this manner, can be considered as the consumers of washing formulas for clothes and hair. Pakistan is a country which has observed good growth in its per-capita income over the past few years. However, when we consider the overall Pakistani population, there is improper distribution of resources, which has lead to rich becoming richer and poor becoming poorer. Hyper inflation that has hit the globe has lead to various macro economic factors that have affected the poor more than the rich, especially in a country with improper distribution of resources like Pakistan. Pakistani consumers are extremely price sensitive. The lower income group of the Pakistani consumers is forced to either buy khula powder or use soaps to wash their clothes. The rich even are not safe from the adverse effects of this global inflation. Due to this price sensitivity, the consumers are often found to change the brands they use and the SKUs that they prefer. Moreover, promotions in the form of discount offers, gifts and accessories influence 31 % of the Pakistani consumers. The most preferred way of washing clothes according to the respondents of our study turned out to be washing powders and shampoos for hair. Only a few high income group customers use noodles and shampoos for washing clothes or soaps for hair. The two brands from the world’s two leading multinationals Surf Excel (Unilever) and Ariel (Procter & Gamble) are the most preferred brands that consumers use to wash their clothes. They both capture 50 % and 30 % of the Pakistan market respectively. People in Pakistan are highly influenced by a washing formula’s cleaning capacity and its aroma. These are the two most highly rated attributes which influences a consumer to buy a specific formula or brand. The performance of a detergent i.e. their ability to remove stains and be tough on dirt is by far the first preference of consumers and they rate it very high.



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RECOMMENDATION • The washing powder industry is very competitive, and the position held by Surf Excel

and Ariel is extremely strong. So other brands in the market, apart from flanker brands of Unilever and P&G, shall focus more on rural areas of the country where there are prominent chances of penetration and growth.

• Consumers have strong Brand preferences therefore constant promotion and persuasive

advertisements should continue.



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APPENDIX



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ARTICLES

SIMPLY THE BEST

Nothing beats Ariel detergent. Have used it for many, many, years, wouldn’t swap it for anything. Have products for colors and whites, non-bio, bio. Covers all types of laundry. Kiss pre-treating good-bye!!!! Originally from UK, now live in USA and have Ariel shipped over, wouldn’t miss this for the world. I wish the manufacturer would make it more easily available in the USA. I can just put my laundry in and add Ariel and forget it. Out is comes clean as a whistle. Also the neatest (size) of the packs makes it easy to store and carry and in my case, ship. I hate to waste energy on high water temperatures, Ariel gets whites, white at 40C, not the normal 75C that most Americans are used to washing clothes in. And what is all this bleaching going on in the USA. Use Ariel and kiss Clorex good-bye. Works for me and works for the environment. Sources: www.mouthshut.com Surf Excel New Campaign “DAAG TO ACHE HOTE HEIN” An out-of-the-box clutter breaking campaign (without a product window) that clearly communicates not only a bold message about stains being good but also educates the customer on growing children. Would be likeable amongst children too as it clearly demonstrates the fact that children love to behave as adults. It reinforces the belief amongst the TG that with Surf Excel, you can do away with any kind of stains.Also creates curiosity amongst marketers watching the ad for the first time regarding the product being advertised as the pack shot appears in the end. Congratulations to the Lowe team and the Brand Manager for this though would also like a clarification if this is a copied ad of Persil from Unilever. If it is, it certainly puts a question mark on the creativity displayed here by the local agency and denotes plagiarism at its best. Overall, a brilliantly executed ad without using any professional models as it uses children to communicate. Source: www.google.com , www.mouthshut.com



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MBA Project (Ariel Excel Gel & Surf Excel)

Marketing

Transcript of MBA Project (Ariel Excel Gel & Surf Excel)