Description
This presentation explain the marketing research for liquid hand wash.
A REPORT ON Market Research and Analysis for Product Awareness and Preference Liquid Hand Wash Soaps
Table of Contents
Introduction ................................................................................................................................................... 3 Methodology ................................................................................................................................................. 4 Price ...................................................................................................................................................... 4 Promotion.............................................................................................................................................. 4 Brand ..................................................................................................................................................... 4 Variants ................................................................................................................................................. 4 Packaging .............................................................................................................................................. 4 Product Size .......................................................................................................................................... 4 Statistical Summary of Responses ................................................................................................................ 5 Age ........................................................................................................................................................ 5 Gender ................................................................................................................................................... 5 Ranking of various brands in the liquid hand wash category ............................................................... 6 Preference scores for various attributes in a liquid hand wash ............................................................. 8 CLUSTER ANALYSIS .............................................................................................................................. 12 AGGLOMERATION SCHEDULE ........................................................................................................ 12 VARIOUS CUSTOMER CLUSTERS ................................................................................................... 17 Cluster 1 .............................................................................................................................................. 17 Cluster 2 .............................................................................................................................................. 17 Cluster 3 .............................................................................................................................................. 17 Multi-Dimensional Scaling (MDS) analysis ............................................................................................... 19 Overview ................................................................................................................................................. 19 Stimulus Coordinates .............................................................................................................................. 20 Derived Stimulus Configuration Analysis .............................................................................................. 21 SPSS output ........................................................................................................................................ 21 Conclusion .................................................................................................................................................. 23
Introduction
FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a
lot of thought, time and financial investment to purchase „Fast Moving? is in opposition to consumer durables such as kitchen appliances that are generally replaced less than once a year . Four of the largest and best known examples of Fast Moving Consumer Goods companies are Nestlé, Unilever, ITC Ltd. and Procter & Gamble. Medical hand hygiene pertains to the hygiene practices related to the administration of medicine and medical care that prevents or minimizes disease and the spreading of disease. The main medical purpose of washing hands is to cleanse the hands of pathogens (including bacteria or viruses) and chemicals which can cause personal harm or disease. This is especially important for people who handle food or work in the medical field, but it is also an important practice for the general public. Food production workers and foodservice personnel must also use correct hand and fingertip washing. It is the best way to assure removal of transient microorganisms. Not only is hand washing critical in foodservice and food production operations it is also important in homes and day care operations. As the literacy level in India has increased by 8% in the last decade, this transformation clearly indicates a shift in the purchasing patterns of the more educated “Bharatwasis”. Studies for hand washing and hand disinfectants have been done for personnel (surgeons, nurses, and other health care workers) in health care settings where patients maybe immune, compromised or are at high risk of wound, surgical, or burn infection.
The importance of personal care and hygiene brings us to our product which we have chosen for our market research project : Liquid Hand Wash In India the main FMCG companies who cater to this category of personal care product are: Dabur, Colgate, Reckitt Benckiser, Palmolive, Procter & Gamble, Johnson & Johnson etc. Each of these again offers a large number of variants and different SKUs. In this project we made an online questionnaire for the respondents. Based on their choices about how they make their preferences for specific brands in the Hand Wash segment, the project tries to comprehend the types of customers who reside in India when making such decisions and which parameters they pay more attention to when making their final decision.
Methodology
This report deals with the understanding of Indian consumers preferences towards liquid hand wash. We did a primary online survey of 133 customers and based on their response carried out our analysis. We asked the respondents about their age, gender and occupation. After getting their basic information we asked the respondents to rank a few brands of liquid soaps. The brands included the following: Dettol, Palmolive, Lifebuoy, Santoor and Others (which represent any other local or regional brand which the respondent might prefer). After that we asked the respondents to provide their preference for the following six attributes which they could consider on a scale of 10-50. The attributes include the following:
Price
The reason for selection of this attribute was to understand how much the respondent valued the price of a liquid soap when he/she went to purchase the product.
Promotion
To understand the responsiveness of the customer towards promotional offers provided by liquid soap companies.
Brand
Are the customers loyal to specific brands whereby changes in other attributes do not affect the buyers?
Variants
How much the different varieties of the product in the form of different fragrance, color, etc. affect the purchasing decision of the customers?
Packaging
What is the value assigned by customers to the packaging of the product?
Product Size
To understand the level of importance that the customers assign on the various sizes available of the product.
Statistical Summary of Responses
The age and gender profile of the 133 respondents that participated in the survey is as follows:
Age Age 1525 2635 3650 50+ Total No. of Respondents 34 46 31 22 133 Percentage 26% 35% 23% 17% 100%
Gender Gende r No. of Respondent s 70 Male 63 Female Total 133 Percentage
53% 47% 100%
Ranking of various brands in the liquid hand wash category
DETTOL Rank No. of Respondents 47 1 63 2 19 3 3 4 1 5 Total 133 Percentage 35% 47% 14% 2% 1% 100%
Dettol has been ranked „1? or „2? by approximately 82% of the respondents in the survey.
LIFEBUOY Rank No. of Respondents 37 1 39 2 34 3 17 4 6 5 Total 133 Lifebuoy ranks between „1? and „3? for most of the respondents (87%) in the survey. Percentage 28% 29% 26% 13% 5% 100%
PALMOLIVE Rank No. of Respondents 24 1 14 2 42 3 31 4 22 5 Total 133 Percentage 18% 11% 32% 23% 17% 100%
Palmolive is the less preferred brand among the respondents with 55% of them ranking it as „4? or ?5? among brands.
SANTOOR Rank No. of Respondents 5 1 8 2 22 3 59 4 39 5 Total 133 Santoor has been ranked „4? or „5? by 73% of the respondents in the survey. Percentage 4% 6% 17% 44% 29% 100%
OTHERS Rank No. of Respondents 20 1 9 2 16 3 23 4 65 5 Total 133 Percentage 15% 7% 12% 17% 49% 100%
Others (Local/any other brand) have been ranked „4? or „5? by most of the respondents (66%).
Preference scores for various attributes in a liquid hand wash
PRICE Score No. of Respondents 38 10-20 29 21-30 34 31-40 32 41-50 Total 133 Percentage 29% 22% 26% 24% 100%
PROMOTIONAL OFFERS Score No. of Respondents 30 10-20 36 21-30 36 31-40 31 41-50 Total 133 Percentage 23% 27% 27% 23% 100%
BRAND Score No. of Respondents 33 10-20 28 21-30 43 31-40 29 41-50 Total 133 Percentage 25% 21% 32% 22% 100%
VARIANTS AVAILABLE (COLOUR / TYPE)
Score No. of Respondents 44 10-20 27 21-30 39 31-40 23 41-50 Total 133
Percentage 33% 20% 30% 17% 100%
PACKAGING
Score No. of Respondents 34 10-20 28 21-30 32 31-40 39 41-50 Total 133
Percentage 26% 21% 24% 29% 100%
PRODUCT SIZE Score No. of Respondents 35 10-20 31 21-30 30 31-40 37 41-50 Total 133 Percentage 26% 23% 23% 28% 100%
After receiving the response, a 2-step process has been adopted to understand the preference of the Indian customers: They are: 1. CLUSTER ANALYSIS 2. MULTI-DIMENSIONAL SCALING ANALYSIS
CLUSTER ANALYSIS
Based on the response of the 133 respondents about the 6 attributes, we did a cluster analysis to segment them into distinct segments. In this way we have been able to identify homogeneous groups of customers. We did a hierarchical cluster analysis to segment the response of the customers. On doing it the output provided us with the Agglomeration Schedule.
AGGLOMERATION SCHEDULE
An Agglomeration Schedule starts with each object being in a separate cluster. Clusters are formed by grouping similar respondents into bigger and bigger clusters. The Agglomeration Schedule that we obtained is as follows: Agglomeration Schedule Stage Cluster Combined Coefficients Stage Cluster First Appears Cluster Cluster Cluster 1 2 1 21 104 39 0 1 88 40 0 2 42 62 67 0 3 19 32 74 0 4 34 49 78 0 5 18 78 82 0 6 93 101 86 0 7 4 40 90 0 8 57 77 107 0 9 23 80 109 0 10 86 103 115 0 11 44 69 116 0 12 7 91 120 0 13 114 125 121 0 14
Next Stage
Cluster 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
21 65 35 29 35 96 84 32 46 51 26 43 30 61
15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
61 10 5 22 20 13 21 37 9 111 41 86 43 16 19 7 26 4 24 46 34 39 15 1 52 54 30 56 44 20 6 57 16 11 51 33 3 81 58 2 108
90 25 55 122 110 85 92 124 38 123 68 100 76 94 102 83 50 35 65 133 42 131 97 67 71 72 60 109 63 28 22 132 87 36 86 117 23 95 74 99 129
121 125 131 133 142 148 151.5 152 153 157 162 162.5 164 170 175 182 182 197 199 205 208.5 211 211 212 213 222 231 233 234 236 237.5 242.5 245 253 258.6667 283 285.5 289 291 292 296
0 0 0 0 0 0 1 0 0 0 0 11 0 0 4 13 0 8 0 0 5 0 0 0 0 0 0 0 12 19 0 9 28 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 18 0 0 0 26 0 10 0 0 0 0
61 65 79 45 44 95 70 64 71 62 63 49 64 47 66 59 77 122 107 56 94 111 94 109 60 99 82 81 71 97 57 102 72 86 62 83 83 106 72 79 101
56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96
46 6 70 7 52 61 51 41 37 10 19 115 14 53 21 9 16 61 75 10 106 14 37 2 7 12 30 3 93 19 6 27 21 61 9 3 17 6 15 13 8
113 116 73 82 126 114 111 79 43 88 128 130 98 105 66 44 58 84 89 46 127 26 96 5 53 56 41 33 107 121 11 45 52 70 120 64 112 31 34 16 18
304.5 306.3333 316 324.3333 324.5 327.5 329.5 335 336 339 349 350 350 363 371.3333 421.8333 432.8333 434 435 440.5833 459 459.5 462 478.5 480.25 480.5 488.1667 488.1667 493 501.25 522.25 531 558.1667 587.8 614.4 614.4 619 619.6667 621.25 668.2 672
34 45 0 30 39 15 49 25 22 16 29 0 0 0 21 23 47 61 0 65 0 68 64 54 59 0 41 51 7 66 57 0 70 73 71 83 0 86 37 20 0
0 0 0 0 0 14 24 0 27 2 0 0 0 0 0 43 53 0 0 56 0 31 0 17 69 42 63 50 0 0 48 0 60 58 0 0 0 0 35 72 6
75 86 89 80 88 73 97 82 78 75 85 100 77 80 88 90 95 89 103 100 114 111 112 102 98 101 98 91 105 116 93 127 106 99 107 103 112 119 125 104 108
97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132
20 7 54 10 12 2 3 13 48 21 9 8 1 20 14 17 3 7 10 19 14 9 2 12 9 4 7 3 12 3 7 7 2 3 2 1
51 30 61 115 108 57 75 47 93 81 24 29 119 21 39 37 59 106 13 20 54 48 6 14 10 17 9 8 15 12 27 19 4 7 3 2
675.0556 676.8 698.1429 702.7143 704.6667 726.5833 734.3333 746.7143 766 766.3571 777.8333 789.3333 791 809.679 886.5 896.5 904.625 935.1364 945.9583 974.4222 1050.056 1117.438 1127.612 1239.093 1255.407 1306.762 1461.393 1478.167 1495.15 1588.87 1602.381 1632.941 1728.386 1795.127 1979.34 2093.995
44 80 40 75 81 79 91 95 0 88 90 96 38 97 77 92 103 98 100 85 111 107 102 101 118 32 114 113 120 124 123 127 119 126 129 109
62 82 89 67 55 46 74 0 84 52 33 0 0 106 36 78 0 76 104 110 99 105 93 117 115 112 121 108 94 125 87 116 122 128 130 131
110 114 117 115 120 119 113 115 118 110 118 124 132 116 117 122 124 123 121 128 120 121 129 125 123 129 127 126 126 130 128 130 131 131 132 0
As we can see in Stage 1, similar respondents, in this case, respondents 21 and 104 form a cluster in Stage1, and they form a cluster with respondent 92 in Stage 21 and this way the process continues. Once we obtain the Agglomeration Schedule, we looked at the maximum difference between the Coefficients to finalize the number of Clusters that could be formed from the data. We found the difference that is highest for the 3rd and 4th cluster from the bottom. Thus, we decided to go for a 3 cluster solution. Then we have done Non-hierarchical clustering in the form of “k-means clustering” where we inserted the number of clusters to be 3. From the output table, we were able to decipher the number of respondents in each cluster. The table is as follows:
Number of Cases in each Cluster Cluster 1 2 3 Valid Missing
35 53 45 133 0
From Final Cluster Centre table we get the following output:
Final Cluster Centers Cluster 1 Price Promotion Brand Variant Packaging Pdt_Size 38 21 31 36 33 23 2 27 31 35 18 35 32 3 28 38 25 36 26 35
We can thus make the following conclusions:
VARIOUS CUSTOMER CLUSTERS
Cluster 1
It scores high on Price and Variant. We observe that Cluster 1 comprises of Price Sensitive customers whose decision criteria rest heavily on the pricing of the liquid soap. Such customers also pay more attention to the variants available of a product e.g. color or fragrance of the hand wash, which generally is a logical case. In this way, we conclude that Cluster 1 majorly comprises of Price Sensitive Customers.
Cluster 2
It scores high in Brand and Packaging. Thus it comprises of customers who pay the most value on the type of brand of liquid soap that they use. For such customers, promotional offers or change in prices will not make much of a difference. It is the use value of the product that they are more interested in. If they are a Dettol user, irrespective of whether Palmolive changes its promotional strategy or its variants, it will not affect the final decision of the Dettol buyer. They also lay more emphasis on the packaging of the product e.g. the attractiveness of the producthow much appealing it is to the user. Thus, we conclude that this is a Cluster of customers who focus on the Brand and its packaging the most.
Cluster 3
It scores very highly on Promotion and Product Size. These are people who lay more emphasis on the quantity of hand wash they will be able to use at a certain price. Such customers will opt for a 500 ml hand soap which offers 100 ml free during a certain promotional campaign over another liquid soap brand which they might have been using in the past. These customers are also very much concerned about the amount of the product they get in a pack. Thus this cluster comprise of Customers who are always on the lookout of new promotional offers for a product.
From the Anova table we see all variables are significant as their level of significance is less than 0.05. ANOVA Cluster Mean Square Price Promotion Brand Variant Packaging Pdt_Size 1410.520 3026.157 1119.161 4835.750 1189.452 1401.624 Df 2 2 2 2 2 2 Error Mean Square 127.066 86.976 121.099 70.056 133.939 122.177 Df 130 130 130 130 130 130 F 11.101 34.793 9.242 69.027 8.881 11.472 Sig. .000 .000 .000 .000 .000 .000
The F tests should be used only for descriptive purposes because the clusters have been chosen to maximize the differences among cases in different clusters. The observed significance levels are not corrected for this and thus cannot be interpreted as tests of the hypothesis that the cluster means are equal. In this way, the Cluster Analysis based on the 6 attributes, which are all significant has helped us in classifying the respondents into 3 mutually exclusive clusters. In order to understand the basis on which they have made their rankings/ stated their preferences for the liquid soap brands we asked, we have furthered our analysis with a Multi Dimensional Scaling Approach.
Multi-Dimensional Scaling (MDS) analysis
Overview
Multidimensional scaling (MDS) is a series of techniques that helps the analyst to identify key dimensions underlying respondents? evaluations of objects. It is often used to identify key dimensions underlying customer evaluations of products, services or companies. It helps us in following ways: ? ? ? ? what dimensions respondents use when evaluating objects how many dimensions they may use in a particular situation the relative importance of each dimension, and how the objects are related perceptually
The purpose of MDS is to transform consumer judgments of similarity or preference (e.g. preference for stores or brands) into distances represented in multidimensional space. The resulting perceptual maps show the relative positioning of all objects. Multidimensional scaling is based on the comparison of objects. Any object (product, service, image, etc.) can be thought of as having both perceived and objective dimensions.
Stimulus Coordinates SPSS Output:
Configuration derived in 2 dimensions
Stimulus Coordinates Dimension Stimulus Stimulus Number Name 1 2 3 4 5 1 2
Dettol_R 1.4193 .3239 Lifebuoy 1.1000 .5475 Palmoliv .3227 -1.0408 Santoor_ -1.0502 -.5695 Others_R -1.7917 .7390
Abbreviated Extended Name Name Dettol_R Lifebuoy Others_R Palmoliv Santoor_ Dettol_Rank Lifebuoy_Rank Others_Rank Palmolive_Rank Santoor_Rank
On running the Multidimensional scaling analysis on the given set of data, we can observe from the table below that for Dimension 1, we have Dettol and Lifebuoy with the highest coordinates and on the Dimension 2, we have others and Lifebuoy having highest coordinates (highlighted in bold above).
Derived Stimulus Configuration Analysis
SPSS output
The Euclidean Distance Model provides the specification for the dimensions for which the scaling is done. From the SPSS output (quadrant), we can see that on Dimension 1, Dettol has been ranked higher than Lifebuoy, which is followed by Palmolive, Santoor and Others. On observing the data, we can easily identify the group of respondents who have given Dettol and Lifebuoy higher ranking than other products. These are the Students in the age group of 15-30, which is primarily due to increasing awareness about hygiene and health conscious amongst youth. Dettol and Lifebuoy also have a good brand perception for the hygiene and cleanliness and thus perception played a major role in the filling up of survey by respondents.
Moreover, the reason behind Dettol and Lifebuoy emerging clear winner here is the fact that they are household names and housewives are deciding factor in the daily household items and thus both the products have a better reach amongst households.
In regard with Dimension 2, we can easily identify that the other brands is ranked higher than known brands viz. Lifebuoy, Dettol and Santoor in that order. On observing the data, the key respondents who have preferred other brands are those who are in Business or self-employed. This can be attributed to the fact that most of those who have their own business aren?t much educated and thus the awareness about various brands is low. They generally go for any brad which is easily available and which doesn?t cost high to them.
Conclusion
In this manner, this project helps us in understanding how the Indian consumers go about in making their choices in the Liquid Hand Wash segment. The sample comprising of 133 respondents has 60% in the age range of 15-35 i.e. majorly students, working people and housewives which shows that the sample gives a fair representation of the Indian urban consumers who use liquid hand soaps regularly. Also the sample is equally distributed between the 2 genders, with 53% being constituted by males and remaining belonging to the fairer sex. The major findings from our survey was that Dettol stands out to be the most preferred liquid hand wash for almost 82% of the respondents clearly highlighting the sensitiveness of the aware Indian urban customers against harmful germs. Dettol stands as a brand which gives protection against even micro germs through a 100% clean wash and this value proposition holds confidence amongst the respondents who filled the survey. Dettol has been closely followed by Lifebuoy in the hand wash category. Once we got the basic preference of the customers, through the tools of SPSS we have been able to find out the following snippets: The respondents belong to three different segments: a) People who are price Sensitive b) People who are Brand Conscious c) People who are always on the lookout for promotional offers when they buy liquid soaps Furthermore, the Multidimensional Scaling Analysis helped us in contemplating the dimensions on which the customers made their preference for the brands which were offered: 1) Dimension 1 comprised mainly of educated students and people in the working class in the age group of 15-30 who are hygiene conscious. 2) Dimension 2 comprised of people who are not much aware of brands and who are fine with any liquid soap that are offered to them. Thus, this project helped us in first understanding the choice of Indian customers regarding liquid hand soaps and through SPSS we were able to find out the different types of customers who are a part of the market and on what basis they go ahead in making their final choice for a final product in the liquid hand wash segment.
doc_908526718.docx
This presentation explain the marketing research for liquid hand wash.
A REPORT ON Market Research and Analysis for Product Awareness and Preference Liquid Hand Wash Soaps
Table of Contents
Introduction ................................................................................................................................................... 3 Methodology ................................................................................................................................................. 4 Price ...................................................................................................................................................... 4 Promotion.............................................................................................................................................. 4 Brand ..................................................................................................................................................... 4 Variants ................................................................................................................................................. 4 Packaging .............................................................................................................................................. 4 Product Size .......................................................................................................................................... 4 Statistical Summary of Responses ................................................................................................................ 5 Age ........................................................................................................................................................ 5 Gender ................................................................................................................................................... 5 Ranking of various brands in the liquid hand wash category ............................................................... 6 Preference scores for various attributes in a liquid hand wash ............................................................. 8 CLUSTER ANALYSIS .............................................................................................................................. 12 AGGLOMERATION SCHEDULE ........................................................................................................ 12 VARIOUS CUSTOMER CLUSTERS ................................................................................................... 17 Cluster 1 .............................................................................................................................................. 17 Cluster 2 .............................................................................................................................................. 17 Cluster 3 .............................................................................................................................................. 17 Multi-Dimensional Scaling (MDS) analysis ............................................................................................... 19 Overview ................................................................................................................................................. 19 Stimulus Coordinates .............................................................................................................................. 20 Derived Stimulus Configuration Analysis .............................................................................................. 21 SPSS output ........................................................................................................................................ 21 Conclusion .................................................................................................................................................. 23
Introduction
FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a
lot of thought, time and financial investment to purchase „Fast Moving? is in opposition to consumer durables such as kitchen appliances that are generally replaced less than once a year . Four of the largest and best known examples of Fast Moving Consumer Goods companies are Nestlé, Unilever, ITC Ltd. and Procter & Gamble. Medical hand hygiene pertains to the hygiene practices related to the administration of medicine and medical care that prevents or minimizes disease and the spreading of disease. The main medical purpose of washing hands is to cleanse the hands of pathogens (including bacteria or viruses) and chemicals which can cause personal harm or disease. This is especially important for people who handle food or work in the medical field, but it is also an important practice for the general public. Food production workers and foodservice personnel must also use correct hand and fingertip washing. It is the best way to assure removal of transient microorganisms. Not only is hand washing critical in foodservice and food production operations it is also important in homes and day care operations. As the literacy level in India has increased by 8% in the last decade, this transformation clearly indicates a shift in the purchasing patterns of the more educated “Bharatwasis”. Studies for hand washing and hand disinfectants have been done for personnel (surgeons, nurses, and other health care workers) in health care settings where patients maybe immune, compromised or are at high risk of wound, surgical, or burn infection.
The importance of personal care and hygiene brings us to our product which we have chosen for our market research project : Liquid Hand Wash In India the main FMCG companies who cater to this category of personal care product are: Dabur, Colgate, Reckitt Benckiser, Palmolive, Procter & Gamble, Johnson & Johnson etc. Each of these again offers a large number of variants and different SKUs. In this project we made an online questionnaire for the respondents. Based on their choices about how they make their preferences for specific brands in the Hand Wash segment, the project tries to comprehend the types of customers who reside in India when making such decisions and which parameters they pay more attention to when making their final decision.
Methodology
This report deals with the understanding of Indian consumers preferences towards liquid hand wash. We did a primary online survey of 133 customers and based on their response carried out our analysis. We asked the respondents about their age, gender and occupation. After getting their basic information we asked the respondents to rank a few brands of liquid soaps. The brands included the following: Dettol, Palmolive, Lifebuoy, Santoor and Others (which represent any other local or regional brand which the respondent might prefer). After that we asked the respondents to provide their preference for the following six attributes which they could consider on a scale of 10-50. The attributes include the following:
Price
The reason for selection of this attribute was to understand how much the respondent valued the price of a liquid soap when he/she went to purchase the product.
Promotion
To understand the responsiveness of the customer towards promotional offers provided by liquid soap companies.
Brand
Are the customers loyal to specific brands whereby changes in other attributes do not affect the buyers?
Variants
How much the different varieties of the product in the form of different fragrance, color, etc. affect the purchasing decision of the customers?
Packaging
What is the value assigned by customers to the packaging of the product?
Product Size
To understand the level of importance that the customers assign on the various sizes available of the product.
Statistical Summary of Responses
The age and gender profile of the 133 respondents that participated in the survey is as follows:
Age Age 1525 2635 3650 50+ Total No. of Respondents 34 46 31 22 133 Percentage 26% 35% 23% 17% 100%
Gender Gende r No. of Respondent s 70 Male 63 Female Total 133 Percentage
53% 47% 100%
Ranking of various brands in the liquid hand wash category
DETTOL Rank No. of Respondents 47 1 63 2 19 3 3 4 1 5 Total 133 Percentage 35% 47% 14% 2% 1% 100%
Dettol has been ranked „1? or „2? by approximately 82% of the respondents in the survey.
LIFEBUOY Rank No. of Respondents 37 1 39 2 34 3 17 4 6 5 Total 133 Lifebuoy ranks between „1? and „3? for most of the respondents (87%) in the survey. Percentage 28% 29% 26% 13% 5% 100%
PALMOLIVE Rank No. of Respondents 24 1 14 2 42 3 31 4 22 5 Total 133 Percentage 18% 11% 32% 23% 17% 100%
Palmolive is the less preferred brand among the respondents with 55% of them ranking it as „4? or ?5? among brands.
SANTOOR Rank No. of Respondents 5 1 8 2 22 3 59 4 39 5 Total 133 Santoor has been ranked „4? or „5? by 73% of the respondents in the survey. Percentage 4% 6% 17% 44% 29% 100%
OTHERS Rank No. of Respondents 20 1 9 2 16 3 23 4 65 5 Total 133 Percentage 15% 7% 12% 17% 49% 100%
Others (Local/any other brand) have been ranked „4? or „5? by most of the respondents (66%).
Preference scores for various attributes in a liquid hand wash
PRICE Score No. of Respondents 38 10-20 29 21-30 34 31-40 32 41-50 Total 133 Percentage 29% 22% 26% 24% 100%
PROMOTIONAL OFFERS Score No. of Respondents 30 10-20 36 21-30 36 31-40 31 41-50 Total 133 Percentage 23% 27% 27% 23% 100%
BRAND Score No. of Respondents 33 10-20 28 21-30 43 31-40 29 41-50 Total 133 Percentage 25% 21% 32% 22% 100%
VARIANTS AVAILABLE (COLOUR / TYPE)
Score No. of Respondents 44 10-20 27 21-30 39 31-40 23 41-50 Total 133
Percentage 33% 20% 30% 17% 100%
PACKAGING
Score No. of Respondents 34 10-20 28 21-30 32 31-40 39 41-50 Total 133
Percentage 26% 21% 24% 29% 100%
PRODUCT SIZE Score No. of Respondents 35 10-20 31 21-30 30 31-40 37 41-50 Total 133 Percentage 26% 23% 23% 28% 100%
After receiving the response, a 2-step process has been adopted to understand the preference of the Indian customers: They are: 1. CLUSTER ANALYSIS 2. MULTI-DIMENSIONAL SCALING ANALYSIS
CLUSTER ANALYSIS
Based on the response of the 133 respondents about the 6 attributes, we did a cluster analysis to segment them into distinct segments. In this way we have been able to identify homogeneous groups of customers. We did a hierarchical cluster analysis to segment the response of the customers. On doing it the output provided us with the Agglomeration Schedule.
AGGLOMERATION SCHEDULE
An Agglomeration Schedule starts with each object being in a separate cluster. Clusters are formed by grouping similar respondents into bigger and bigger clusters. The Agglomeration Schedule that we obtained is as follows: Agglomeration Schedule Stage Cluster Combined Coefficients Stage Cluster First Appears Cluster Cluster Cluster 1 2 1 21 104 39 0 1 88 40 0 2 42 62 67 0 3 19 32 74 0 4 34 49 78 0 5 18 78 82 0 6 93 101 86 0 7 4 40 90 0 8 57 77 107 0 9 23 80 109 0 10 86 103 115 0 11 44 69 116 0 12 7 91 120 0 13 114 125 121 0 14
Next Stage
Cluster 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0
21 65 35 29 35 96 84 32 46 51 26 43 30 61
15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55
61 10 5 22 20 13 21 37 9 111 41 86 43 16 19 7 26 4 24 46 34 39 15 1 52 54 30 56 44 20 6 57 16 11 51 33 3 81 58 2 108
90 25 55 122 110 85 92 124 38 123 68 100 76 94 102 83 50 35 65 133 42 131 97 67 71 72 60 109 63 28 22 132 87 36 86 117 23 95 74 99 129
121 125 131 133 142 148 151.5 152 153 157 162 162.5 164 170 175 182 182 197 199 205 208.5 211 211 212 213 222 231 233 234 236 237.5 242.5 245 253 258.6667 283 285.5 289 291 292 296
0 0 0 0 0 0 1 0 0 0 0 11 0 0 4 13 0 8 0 0 5 0 0 0 0 0 0 0 12 19 0 9 28 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 18 0 0 0 26 0 10 0 0 0 0
61 65 79 45 44 95 70 64 71 62 63 49 64 47 66 59 77 122 107 56 94 111 94 109 60 99 82 81 71 97 57 102 72 86 62 83 83 106 72 79 101
56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96
46 6 70 7 52 61 51 41 37 10 19 115 14 53 21 9 16 61 75 10 106 14 37 2 7 12 30 3 93 19 6 27 21 61 9 3 17 6 15 13 8
113 116 73 82 126 114 111 79 43 88 128 130 98 105 66 44 58 84 89 46 127 26 96 5 53 56 41 33 107 121 11 45 52 70 120 64 112 31 34 16 18
304.5 306.3333 316 324.3333 324.5 327.5 329.5 335 336 339 349 350 350 363 371.3333 421.8333 432.8333 434 435 440.5833 459 459.5 462 478.5 480.25 480.5 488.1667 488.1667 493 501.25 522.25 531 558.1667 587.8 614.4 614.4 619 619.6667 621.25 668.2 672
34 45 0 30 39 15 49 25 22 16 29 0 0 0 21 23 47 61 0 65 0 68 64 54 59 0 41 51 7 66 57 0 70 73 71 83 0 86 37 20 0
0 0 0 0 0 14 24 0 27 2 0 0 0 0 0 43 53 0 0 56 0 31 0 17 69 42 63 50 0 0 48 0 60 58 0 0 0 0 35 72 6
75 86 89 80 88 73 97 82 78 75 85 100 77 80 88 90 95 89 103 100 114 111 112 102 98 101 98 91 105 116 93 127 106 99 107 103 112 119 125 104 108
97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132
20 7 54 10 12 2 3 13 48 21 9 8 1 20 14 17 3 7 10 19 14 9 2 12 9 4 7 3 12 3 7 7 2 3 2 1
51 30 61 115 108 57 75 47 93 81 24 29 119 21 39 37 59 106 13 20 54 48 6 14 10 17 9 8 15 12 27 19 4 7 3 2
675.0556 676.8 698.1429 702.7143 704.6667 726.5833 734.3333 746.7143 766 766.3571 777.8333 789.3333 791 809.679 886.5 896.5 904.625 935.1364 945.9583 974.4222 1050.056 1117.438 1127.612 1239.093 1255.407 1306.762 1461.393 1478.167 1495.15 1588.87 1602.381 1632.941 1728.386 1795.127 1979.34 2093.995
44 80 40 75 81 79 91 95 0 88 90 96 38 97 77 92 103 98 100 85 111 107 102 101 118 32 114 113 120 124 123 127 119 126 129 109
62 82 89 67 55 46 74 0 84 52 33 0 0 106 36 78 0 76 104 110 99 105 93 117 115 112 121 108 94 125 87 116 122 128 130 131
110 114 117 115 120 119 113 115 118 110 118 124 132 116 117 122 124 123 121 128 120 121 129 125 123 129 127 126 126 130 128 130 131 131 132 0
As we can see in Stage 1, similar respondents, in this case, respondents 21 and 104 form a cluster in Stage1, and they form a cluster with respondent 92 in Stage 21 and this way the process continues. Once we obtain the Agglomeration Schedule, we looked at the maximum difference between the Coefficients to finalize the number of Clusters that could be formed from the data. We found the difference that is highest for the 3rd and 4th cluster from the bottom. Thus, we decided to go for a 3 cluster solution. Then we have done Non-hierarchical clustering in the form of “k-means clustering” where we inserted the number of clusters to be 3. From the output table, we were able to decipher the number of respondents in each cluster. The table is as follows:
Number of Cases in each Cluster Cluster 1 2 3 Valid Missing
35 53 45 133 0
From Final Cluster Centre table we get the following output:
Final Cluster Centers Cluster 1 Price Promotion Brand Variant Packaging Pdt_Size 38 21 31 36 33 23 2 27 31 35 18 35 32 3 28 38 25 36 26 35
We can thus make the following conclusions:
VARIOUS CUSTOMER CLUSTERS
Cluster 1
It scores high on Price and Variant. We observe that Cluster 1 comprises of Price Sensitive customers whose decision criteria rest heavily on the pricing of the liquid soap. Such customers also pay more attention to the variants available of a product e.g. color or fragrance of the hand wash, which generally is a logical case. In this way, we conclude that Cluster 1 majorly comprises of Price Sensitive Customers.
Cluster 2
It scores high in Brand and Packaging. Thus it comprises of customers who pay the most value on the type of brand of liquid soap that they use. For such customers, promotional offers or change in prices will not make much of a difference. It is the use value of the product that they are more interested in. If they are a Dettol user, irrespective of whether Palmolive changes its promotional strategy or its variants, it will not affect the final decision of the Dettol buyer. They also lay more emphasis on the packaging of the product e.g. the attractiveness of the producthow much appealing it is to the user. Thus, we conclude that this is a Cluster of customers who focus on the Brand and its packaging the most.
Cluster 3
It scores very highly on Promotion and Product Size. These are people who lay more emphasis on the quantity of hand wash they will be able to use at a certain price. Such customers will opt for a 500 ml hand soap which offers 100 ml free during a certain promotional campaign over another liquid soap brand which they might have been using in the past. These customers are also very much concerned about the amount of the product they get in a pack. Thus this cluster comprise of Customers who are always on the lookout of new promotional offers for a product.
From the Anova table we see all variables are significant as their level of significance is less than 0.05. ANOVA Cluster Mean Square Price Promotion Brand Variant Packaging Pdt_Size 1410.520 3026.157 1119.161 4835.750 1189.452 1401.624 Df 2 2 2 2 2 2 Error Mean Square 127.066 86.976 121.099 70.056 133.939 122.177 Df 130 130 130 130 130 130 F 11.101 34.793 9.242 69.027 8.881 11.472 Sig. .000 .000 .000 .000 .000 .000
The F tests should be used only for descriptive purposes because the clusters have been chosen to maximize the differences among cases in different clusters. The observed significance levels are not corrected for this and thus cannot be interpreted as tests of the hypothesis that the cluster means are equal. In this way, the Cluster Analysis based on the 6 attributes, which are all significant has helped us in classifying the respondents into 3 mutually exclusive clusters. In order to understand the basis on which they have made their rankings/ stated their preferences for the liquid soap brands we asked, we have furthered our analysis with a Multi Dimensional Scaling Approach.
Multi-Dimensional Scaling (MDS) analysis
Overview
Multidimensional scaling (MDS) is a series of techniques that helps the analyst to identify key dimensions underlying respondents? evaluations of objects. It is often used to identify key dimensions underlying customer evaluations of products, services or companies. It helps us in following ways: ? ? ? ? what dimensions respondents use when evaluating objects how many dimensions they may use in a particular situation the relative importance of each dimension, and how the objects are related perceptually
The purpose of MDS is to transform consumer judgments of similarity or preference (e.g. preference for stores or brands) into distances represented in multidimensional space. The resulting perceptual maps show the relative positioning of all objects. Multidimensional scaling is based on the comparison of objects. Any object (product, service, image, etc.) can be thought of as having both perceived and objective dimensions.
Stimulus Coordinates SPSS Output:
Configuration derived in 2 dimensions
Stimulus Coordinates Dimension Stimulus Stimulus Number Name 1 2 3 4 5 1 2
Dettol_R 1.4193 .3239 Lifebuoy 1.1000 .5475 Palmoliv .3227 -1.0408 Santoor_ -1.0502 -.5695 Others_R -1.7917 .7390
Abbreviated Extended Name Name Dettol_R Lifebuoy Others_R Palmoliv Santoor_ Dettol_Rank Lifebuoy_Rank Others_Rank Palmolive_Rank Santoor_Rank
On running the Multidimensional scaling analysis on the given set of data, we can observe from the table below that for Dimension 1, we have Dettol and Lifebuoy with the highest coordinates and on the Dimension 2, we have others and Lifebuoy having highest coordinates (highlighted in bold above).
Derived Stimulus Configuration Analysis
SPSS output
The Euclidean Distance Model provides the specification for the dimensions for which the scaling is done. From the SPSS output (quadrant), we can see that on Dimension 1, Dettol has been ranked higher than Lifebuoy, which is followed by Palmolive, Santoor and Others. On observing the data, we can easily identify the group of respondents who have given Dettol and Lifebuoy higher ranking than other products. These are the Students in the age group of 15-30, which is primarily due to increasing awareness about hygiene and health conscious amongst youth. Dettol and Lifebuoy also have a good brand perception for the hygiene and cleanliness and thus perception played a major role in the filling up of survey by respondents.
Moreover, the reason behind Dettol and Lifebuoy emerging clear winner here is the fact that they are household names and housewives are deciding factor in the daily household items and thus both the products have a better reach amongst households.
In regard with Dimension 2, we can easily identify that the other brands is ranked higher than known brands viz. Lifebuoy, Dettol and Santoor in that order. On observing the data, the key respondents who have preferred other brands are those who are in Business or self-employed. This can be attributed to the fact that most of those who have their own business aren?t much educated and thus the awareness about various brands is low. They generally go for any brad which is easily available and which doesn?t cost high to them.
Conclusion
In this manner, this project helps us in understanding how the Indian consumers go about in making their choices in the Liquid Hand Wash segment. The sample comprising of 133 respondents has 60% in the age range of 15-35 i.e. majorly students, working people and housewives which shows that the sample gives a fair representation of the Indian urban consumers who use liquid hand soaps regularly. Also the sample is equally distributed between the 2 genders, with 53% being constituted by males and remaining belonging to the fairer sex. The major findings from our survey was that Dettol stands out to be the most preferred liquid hand wash for almost 82% of the respondents clearly highlighting the sensitiveness of the aware Indian urban customers against harmful germs. Dettol stands as a brand which gives protection against even micro germs through a 100% clean wash and this value proposition holds confidence amongst the respondents who filled the survey. Dettol has been closely followed by Lifebuoy in the hand wash category. Once we got the basic preference of the customers, through the tools of SPSS we have been able to find out the following snippets: The respondents belong to three different segments: a) People who are price Sensitive b) People who are Brand Conscious c) People who are always on the lookout for promotional offers when they buy liquid soaps Furthermore, the Multidimensional Scaling Analysis helped us in contemplating the dimensions on which the customers made their preference for the brands which were offered: 1) Dimension 1 comprised mainly of educated students and people in the working class in the age group of 15-30 who are hygiene conscious. 2) Dimension 2 comprised of people who are not much aware of brands and who are fine with any liquid soap that are offered to them. Thus, this project helped us in first understanding the choice of Indian customers regarding liquid hand soaps and through SPSS we were able to find out the different types of customers who are a part of the market and on what basis they go ahead in making their final choice for a final product in the liquid hand wash segment.
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