Consumer Behaviour Project Report
Consumer Behaviour Project Report
Consumer Behaviour Project Report
original work and same has not been submitted to any other institution.
Part-1 - Project Report for MBA - Consumer Behaviour towards Shampoo Market
CONSUMER BEHAVIOUR
The Management of PROCTER & GAMBLE once stated : "Our business is
based on understanding the consumer and providing the kind of products that the
consumer wants. We place enormous emphasis on our product development
area and our marketing area, and on our people knowing the consumer.” The
human mind is the most complex entity in the whole universe as it is very
unpredictable how a person would behave in or react in a particular situation.
A person’s behavior changes from place to place and situation to situation or, say
it is very inconsistent. The person when has a need, is willing and able to satisfy
the need is called a CONSUMER. The consumer would go different ways to
satisfy it’s needs depending on his social, cultural, family, economic and
educational background. Consumer is the principle a priori of business. The
efficiency with which a free market system of enterprise operates, depends upon
the extent of consumer understanding possessed by the business community. A
business community that is ignorant of consumer preferences cannot possibly
fulfill it’s obligations in a meaningful and responsive manner.
There are Psychological Theories that help us to understand and predict the
effect of all external and internal factors on a consumer. External
factors include Culture, Society, Reference group and family etc.
Internal factors comprise in a consumer mind and how consumers
learning, memory, attitude, personality, lifestyle and motivation levels
effect consumer behavior. What would initiate a buying process and
how a buying decision would end is all covered under the study of
consumer behavior. This all further helps relate product / service,
price and promotion etc. with consumer behaviour. Thus
organisation can place marketing mix so as to propogate their
product/services.
PSYCHOGRAPHIC
In psychographic segmentation buyers are divided into different groups on the
basis of lifestyle and \ or personality. People within the same demographic group
can exhibit very different psychographic profiles. These psychographic bases are
often difficult to measure, but they offer potential rewards in terms of providing
management with a more relevant basis for differentiating between segments of
a market.
LIFESTYLE
People exhibit many more lifestyles than are suggested by the seven social
classes. People’s product interests are influenced by their lifestyles. In fact the
goods they consume express their lifestyles. Marketers are increasingly
segmenting their markets by consumer lifestyles. Companies making cosmetics,
alcoholic beverages, and furniture are always seeking opportunities in lifestyle
segmentation.
PERSONALITY
The ideas, associations and images that people have of a shampoo brand
determine the demand side of the brand equity equation. There are two
ways in which advertising is likely to influence perceived product
performance. First, by guiding the expectations about the shampoo
experience - process called product enhancement and second, by creating
a halo of superiority around the brand via a mechanic termed “ Interest –
Status”. There are two key advertising related factors. First, the
advertisement needs to be remembered. This is important because its
main influence is at the point of trial. Second, the message should relate
in some way to the experience of ‘using’ the product - for instance, does
it create any expectation of what the shampoo would “ feel like to your
hair” i.e., how will it take care of your hair and especially to your
specifications. But the advertiser should always bear in mind that the
benefits proclaimed are in line with what the product can actually deliver.
Inconveniently for advertisers, evaders are not contained within any one
demographic segment but are likely to be the smartest people within their
group and crucially, tend to be the people with the lowest price sensitivity,
those who should be most susceptible to brand messages.
The research offers a worrying glimpse of the future. People are more
likely to be evaders if they have satellite or cable. But all is not lost.
Evaders do not respond to distinctive, relevant and original advertising that
catches them at the right time. Lord Leverhulme’s statement that only half
the money he spent on advertising was wasted, is beginning to look
blithely optimistic.
The real issue is creativity. What type of advertisements prevent evaders
accordingly.
Planners must attempt to get psychological insights into the consumer that
goes beyond number - crunching. There are qualitative differences in how
people use and relate to media and these have enormous implications on
media strategies. There is a hypothesis that the recall of brands would be
higher if they were advertised on programmes that enjoyed higher level of
viewers.
SCENARIO OF THE INDIAN SHAMPOO MARKET
“X” shampoo has keratin treatment, “Y” shampoo has total nourishment
while “Z” shampoo rebuilds your damaged hair and control dandruff.
Aggressive marketing and media blitz has made it a frothy year for
shampoo marketers. In one of the most remarkable demonstrations of
acceleration, the shampoo market, after creeping up at an average rate of
6 % per annum between 1992 and 1994 and, climbing to 9.55 % in 1995,
suddenly raced up to 18.77 % in 1996. In 1997 it went up to 35 %
Making the hair flow, and flow and flow, were the unique strategies for
generating growth adopted by the three principal players in the shampoo
market. A flurry of new launches which saw the introduction of 32 new
brands, five brand extensions, 100 new variants, and 122 new pack -
sizes, adding up to an unparalleled excitement in what was till then a - one
- kind - fits - all product category. So long as it was a generic, generalized -
benefits product whose primary value, was that it cleaned hair, no
shampoo brand had the loyal following. With a broad swath of appeal,
brand USPs were not sufficiently differentiated from one another for any
of them to crave out a committed niche.
P&G joined the fray with Pantene Pro - V (the proposition : nourishment of hair
from root to tip), Pantene Pro-V Extra shampoo - and Oriflame’s conditioning
shampoo.. Through new brand launches companies generated constant
excitement to keep interest in the product alive. Even as segmentation
offered new value propositions to shampoo users, the marketers baked up
that menu with multiple price points, creating several VFM equations. And
because they were targeting growth, they cannily priced every new product
at a discount to a comparable one while holding out a promise of either
matching or greater value. There was also a large successive cut in the
excise duty on shampoos : from 120 % in 1994 to 70% in 1995, 40 % in
1996, and 30 % in 1997. Also in India customers are inordinately
sensitive to price. There is always a large number of potential customers
waiting to buy your product as soon as it becomes affordable.
BRANDS EXPECTED :
Sunsilk 20
Clinic 25
Organics 5.5
Pantene 11
Halo 3.4
Optima 3.6
Lakme 1
Flex 0.7
Others 28.6
RESEARCH METHODOLOGY
Keeping in view the Shampoo Market in INDIA which is very crowded and
becoming competitive day by day, we decided to study the current scenario of
the market.
DATA COLLECTION
1. PRIMARY DATA
Primary data was collected through face to face interviews while filling up
questionnaires. (33 RESPONDENTS)
2. SECONDARY DATA
3. COMMUNICATION APPROACH
SCOPE
The scope of the study covers almost all categories of Shampoos. The whole
appraisal of Shampoos has been done from the angle of customer satisfaction.
Any substitutes of Shampoos like washing soaps or natural products have not
been considered. Also Shampoos locally made by the unorganised sector and
which are not branded have not been considered.
LIMITATIONS
1. The first and foremost limitations was time constraint which was only one
months, but still efforts have been made to put the picture as clear and candid
as possible.
UNIVERSE
The main emphasis of the study was the city of Delhi. The Capital of INDIA is
cosmopolitan city and is a home to various kinds of people hailing from different
backgrounds, upbringings and religions. This diversity makes Delhi a mini
INDIA ! The percentage of male consumers is 50% and that of female consumers
is also 50%. The city has its share of individuals belonging to different social
economic classes.
SAMPLING
SAMPLE SIZE
SAMPLING TECHNIQUES
QUESTIONNAIRE DESIGN
The questionnaire used was a printed, well structured formalized schedule to
obtain and record specified and relevant information with fair accuracy and
completeness.
The questioning process was face to face interviews and the questionnaire was
designed in such a way that it could be understood and answered easily by the
respondents. The questionnaire contained both close and open ended questions.
The close ended questions were dichotomous and multiple choice in nature.
Since some of the questions were probing in nature and required answers on the
basis of memory of the respondent. In such type of questions there is a risk that
the respondents will answer whatever comes to their minds, thereby reducing the
impact of the study. Keeping these considerations in mind, firstly the period of
time in which respondents were asked to respond was reduced, since it has been
found that the longer the reporting period, the less accurate the reporting.
KEY FINDINGS
It has been observed that people use not only shampoos but home remedy is
also preferred because of its uniqueness of effectiveness. People also use
more than one shampoo or keep two shampoos
Most people have tried one or more shampoos but hardly finds any differences.
Except for clinic all clear and organic in which respondents have positively
agreed of best shampoo than others.
People buys those shampoos giving them maximum benefits. Female normally
look for shampoo matching with their hair type but male look for combination
of benefits i.e. 1st hair problem and then fragrances followed by price.
An advertisement is the one that influences a lot than any other factors.
Most people change their shampoos occasionally but there are people who
never change their shampoo i.e. they are satisfied with their current brand.
Most people normally buy sachets available followed by above 250-ml pack.
Satisfaction is maximum drawn with people using clinic and organic. These are
the brands, which attract most because of perceived quality and brand image.
METHODOLOGY
SURVEY METHOD
I have chosen the exploratory research method for the research. In this method all the
questions are close ended. Except for few questions that needed to be known as in
question 10 of asking the satisfaction and dissatisfaction level and know their problems
with respect to the brand they have used. The options in the form of yes or no, Ranking &
choosing one alternative out of various alternatives, I could not take the open-ended
questions in the Questionnaire because of time constraint. The time given for this
research is very short to analyze the survey in Depth. The number of question related to
consumer behaviour research is 14. Out of which 4 Related to personal details.
• Sample size: 20
• SRSWR
• Mainly Students were covered and 10 % others considered for the study.
[College/school/Univ./inst./housewives]
Other questions were asked about the personalities of the shampoo with the brand image
they perceive. [Cool/trendy/aggressive/different/outgoing etc.]
RECOMMENDATIONS
Target those people who use shampoo and trust the shampoo as their best
solution for hair care.
Develop quality and brand image so that by trial of your brand leaves with a
good image and then followed by usage of bigger pack which then will be
used by them.
Identify the key benefits such as hair strengthening, Missing form shampoo and
makes them the USP of new brands. The USP could be rebuilding damaged
hair, shiny and healthy hair.
Look for different problems for which people use shampoo for hair care, falling
hair and dandruff’s etc. And deliver the same of high quality and at the same
time positioning the brand as solution for your hair problem and which also
rejuvenate your hair, and keep your hair healthy to that target group.
The ideas, associations and images that people have of a shampoo brand
determine the demand side of the brand equity equation. There are two ways
in which advertising is likely to influence perceived product performance.
First, by guiding the expectations about the shampoo experience - process
called product enhancement and second, by creating a halo of superiority
around the brand via a mechanic termed “ Interest – Status”. There are two
key advertising related factors First, the advertisement needs to be
remembered. This is important because its main influence is at the point of
trial. Second, the message should relate in some way to the experience of
‘using’ the product - for instance, does it create any expectation of what the
shampoo would “ feel like to your hair” i.e., how will it take care of your hair
and especially to your specifications. But the advertiser should always bear in
mind that the benefits proclaimed are in line with what the product can
actually deliver.
Use country wide sampling activity to acquaint potential customers with the
benefit of shampoo backing up the effort with advertising to convert intent to
purchase.
Offer value for money impetus for the decision to use the product more
intensively
Again benchmark the company that has well positioned itself in the minds of
the consumer and they [consumers] rarely change their shampoo. Here these
people are almost satisfied with their current brand because the core features
the consumer looks for is being derived from their brand. And so delivering
the improved one will make them switch to your brand but it should be well
advertised and substantiated
This action of company will have other positive effect of attracting those
switchers, changing frequently and/or occasionally and drawing the crowd
towards your brand.
Go for strategic sizing and pricing. Have those packs available in the market
so that people have a wider option available and presence of your brand.
After a gap of some time check which are the packs that are bought most and
assure their availability.
Last but not the least there are separate issue that have to dealt with being
the male and female factor and then growing demand of herbal shampoo.
Looking at first point the female factors of buying a shampoo are different
than male. A female normally have less problem of falling hair than male and
so they look for those hair shampoo that improve from the current position of
their hair. [Rejuvenate and healthy etc.] But one common problem [male &
female] that they may have is of dandruff’s. And so the company can develop
the brand image and quality and communicate better to the target group of
these core benefits of your brand i.e., solution for hair problem and thus
improving and rejuvenating them. Second point. Can the company in the
same line of chemical shampoos change the perception in the mind of the
consumer of chemical shampoo having no side affects and at the same time
advertise about the possible advantages of using their shampoo and/or can
they come up with a herbal shampoo as the product extension and there by
building a well brand image. Like the Colgate has done with the already
launched product of herbal toothpaste. If yes please go ahead but probe
before you plunge.
Geographically – it’s the water of particular area, the air pollution that forces one
to use shampoo usage.
And thus creating awareness of possible damage of your hair if you do not use it
[own brand] these are the negatives outcomes that you [customer] may have
[falling hair, dandruff’s].
• Search for information – in the initial stages of hair problem, people in their
friends advises [reference group], family influences [mother], -- but more
crucial is advertisement Of shampoo and the brands which at that point of
time they actually recall [brands that he/she recall includes the pre purchase
evaluation, but mostly it is more on internal factor i.e. self – the knowledge
he/she has of the brands that he has come across and know to be better
product]--
If not satisfied
6. Switch till they get the best or some amount of satisfaction and then stick to
that brand
If satisfied
• Stick to the satisfied brand but may try others only if they are convinced from
reliable sources and that too from most people and see sufficient evident in
that brand of what they expect.
In the above process the stage is initial problem that the consumer faces and
then those stages of decision come across.
Now a look at the stages in decision making process after the problem is
becoming severe and he/she is not satisfied with any brands:
Need recognition – remains the same but is highly desperate to eliminate the
problem that he/she will be facing.
Search for information – now its more external to what he/she gathers from
reliable source i.e. family, friends, marketer led – advertisement, magazine or
newspaper. But since the problem is acute more is the chances of being
influenced by the doctor. There is a high chance of visiting a doctor and looking
for ways of to tackle the problem. And in the initial stages of problem discussed
earlier the more is the chances of being influenced by advertisements.
Thus it can be rightly said that if the brands have good advertisement, well
positioned in the consumer mind as in the research showed that clinic all clear is
most used then advertisement can play an important role in attracting a good
crowd and if that crowd captured through advertisement [brand image]
substantiate with high quality. Chances of brand loyalty are high towards your
brand. But if the customers are not satisfied and the problem becomes severe
he/she goes for home remedy or consulting a doctor.
CONCLUSION
Conclusion of survey revels that the consumer behaviors depend on the following reasons: -
Product quality,
Family influence,
Doctor’s prescription,
The consumers of shampoo are very sensitive and he is very much aware of the
products. Awareness about the product regarding the ingredients is very high in
the consumers. Influence in the purchase of the shampoos mainly depends on
the hair problem and assurity to solve that problem given by the brand. Influence
of doctor and family is also very high.
Attributes of a particular brand also play an important role in the purchase.
Attributes like reasonable price, fragrance, quality, & medications plays its
significant role. By the analysis we can conclude that consumers in the shampoo
market are not much conscious about the price but its quality plays important
role.
The study reveals that Pantene has been tried by most of the consumer (16 %).
Next comes Sunsilk. Organics and Clinic Plus both (11 %), which have been tried
by the consumers.
The survey showed a number of reasons for consumers using more than one
brand or type of shampoos simultaneously. No single shampoo, according to the
consumer, was able to fulfill all the hair requirements. Dandruff was the most
important hair problem which led the cosumer to use more than one shampoo at
a time. Some people use two or more shampoos simultaneously, just for change.
From the table no. 6 it can be concluded that a majority (58%) of the consumers
change their shampoo occasionally. These consumers also tend to test the
quality of new launches. Non availability is another factor which to a certain
extent, has prompted many consumers to use more than one brand
simultaneously. A significant figure of 57% of the consumer tend to shift to
another brand due to non - availability of their brands.
From table no. 10 that amongst the factors which influence the choice of a brand
of shampoo(s), Hair problems is the most important one. People select
shampoo(s) with reference to their hair problems. Hair type also plays a very
important role. While selecting a shampoo consumers take care to select the
shampoo according to their hair type. The role which Advertisements play can
not be neglected. According to study it is found that even advertisements
influence the consumers a great deal in selecting a shampoo. At times
someone’s reference also helps in selecting a brand. Hair type or hair problems
are found to be more significant as compared to the fragrance, packaging and
price of a shampoo.
The consumers of Head & shoulders are the most satisfied with all the attributes
of the shampoo and the range falls in the interval of 2.5 - 3 on the scale of 1-3.
Next on the list are Organics and Clinic Plus. But these two shampoos need to
improve upon the anti -dandruff and hair repairing qualities which the consumer
finds is lacking to a certain extent.
Sunsilk to a large extent fails to satisfy hair nourishment, anti dandurff and hair
repair needs of the consumer. The satisfaction level lies in the range from 1-1.5.
Clinic All Clear provides high satisfaction to the consumer as far as anti dandruff
quality of the shampoo is concerned. But it lacks all other attributes such as hair
nourishment, hair repair, conditioning, removing hair problems etc. The
satisfaction is very low on the scale. Ayur needs to improve upon all its attributes
as the satisfaction level for all of them lies in the range of 1 - 2.
The user of Head & Shoulders has an Outgoing personality and can impress
people easily. He is meticulous in nature although he independently takes
decisions.
He is similar to most people and due to his friendly nature, provides Good
company.
The Pantene consumer is very friendly, gives good company and has an
impressive personality. He is meticulous and similar to most people although he
is outgoing he is not much of an innovator. He independently takes decisions and
never seeks any advice from others.
The user of Clinic Plus is quite innovative while he also does his jobs
meticulously. He seldom seeks advice and is indifferent to advertisements as he
is independent in taking major decisions in his life. His similarity to most people,
his impressive personality and friendly nature always provide good company
ANALYSIS
1. Do you use shampoo
Yes No
Response
18 people response were yes & other 2 said they use home remedy + shampoo.
female [two each using home made remedy] The study reveals that 90% of the
respondents use shampoo.10% of the respondents refused the use of shampoo
and gave the reason that shampoos cause hair problems. They either use soaps
or the traditional method of washing hair.
Pantene Sunsilk
Response
It can been seen that clinic all clear has been tried by most people that account for 16 of 20 sample and next coming to be
Pantene with 12. After this brand sunsilk is used more followed by organics.
Analysis
The survey showed a number of reasons for consumers using more than
one brand or type of shampoos simultaneously. No single shampoo,
according to the consumer, was able to fulfill all the hair requirements.
Dandruff was the most important hair problem which led the consumer to
use more than one shampoo at a time. Some people use two or more
shampoos simultaneously, just for change.
Price Availability
Response
FEMALE:
-- Hair problem
-- Fragrance
-- Packaging
-- Price
-- Availability
MALE:
[Section-1] [Section-2]
-- Fragrance -- price
-- Hair type -- hair type
-- Fragrance -- Packaging --
packaging -- Price --
Availability -- availability
It can be concluded that in case of females most have the same levels of priority of buying the brand and so the order
remains the same. But 3 of them said price to be one after fragrance and then packaging.
In case of males 6 male had the same levels of priority that starts from hair
problem followed by fragrance. And this section 1 of males differs with section 2
with respect to levels of as section 2 priority is of price followed by hair type and
then fragrance.
Advertisement Self
Other
Response
Almost all responded that it’s the role of adv. that actually led to a purchase
of a shampoo.
MALE 3 5 10 8 2
FEMALE 5 7 10 5 4
ANALYSIS
Consumers in the age group 17-25 [target group] are more innovative as
compared to the other age groups. It has been observed from the study
that females shampoo their hair twice a week, while males prefer using
shampoo on alternate days.
Male 5 9 7
Female 3 11 6
ANALSYIS
It can be concluded that a majority of the consumers change their shampoo occasionally. These consumers also
tend to test the quality of new launches. Frequently changing consumer account for 8 [male and female] and the non
availability is one of the factor which to a certain extent, has prompted many consumers to use more than one brand
simultaneously.13 of both sex of the consumer responded that they never change their brand When asked about the
reason they responded that changing brand led to hair problems like hair loss etc.
Attribute [H&S]
Low Price
Strong Fragrance
Quality
Highly medicated
Analysis of chart no 6.
1. [3 male & 4 female] Pantene : had the moderately high price higher than
others, high fragrance equal to Clinic and higher than others, moderately high
medical benefits equal to Organics and less than others and high quality
higher than others.
2. [2 male & 3 female] Organics : had moderately low price lower than others,
high fragrance higher than Sunsilk and lower than Pantene and Clinic,
moderately high medical benefits, lower than Clinic and Sunsilk and equal to
Pantene and high quality higher than Sunsilk and lower than others.
3. [2 male & 3 female ] Clinic : had moderately low price lower than Pantene
and Sunsilk, high fragrance higher than Organic and Sunsilk and equal to
Pantene, moderately high medical benefits lower than Pantene and Organics
and nearly equal to Sunsilk and high quality higher than Sunslik and
Organics lower than Pantene.
4. [ 1 male & 2 female]Sunsilk had moderately low price higher than others and
lower than Pantene, moderately high fragrance lower than others, moderately
high medical benefits higher than others and moderately high quality lower
than others.
1-2 3-4
Response
Male 4 4 -- --
Female 8 4 -- --
ANALYSIS
When asked about how many times the consumer use to shampoo their hair?
They responded, 60 % that 1-2 times in a week and rest 40 % responded more
than 1-2 times. A further conclusion can be drawn on people using 1-2 times or
3-4 times
Response
100 ml 100ml to 250 ml Sachets Above 250 ml
2 1 5 2
Male
Female 1 2 4 3
ANALYSIS
It can be concluded that sachets are most used because of its convenience
and price. Next comes to be 250ml because of its price again that is higher
the pack lower the price. Followed by 100 ml and 250 ml.
People who use sachets use it as trial to see the effectiveness and if they are
satisfied then they go for 250 ml primarily because of not going to buy the
small sachets again and again. The rest pack are used because of other
options available in terms of size and price and not necessarily going for
bigger pack.
RESPONSE
Reveals that in TV as media for advertisement all the responded have had the same frequency of seeing the ads of
all the brands. In case of print media as in Magazine highest number of viewer ship went to Clinic, Sunslik, Pantene,
Organics, in decreasing order. In case of Newspaper the maximum no. of viewership went to clinic, Pantene,
organic & sunsilk in decreasing order.
ANALYSIS
It says that T.V. is best media for advertising for all kind of advertising and it has
best opportunity for the brand to penetrate in market. All of the brands have
equal no. of viewership in TV but in magazine &Newspaper they had different
viewership.
10. Level of satisfaction you are getting from your shampoo brand.
Neutral Dissatisfied
Highly dissatisfied
ANALYSIS
The maximum satisfied consumers were of Clinic users and than comes organic, Pantene, Sunsilk.
CLINIC : [8 males & 9 females] The consumers of Clinic were most satisfied
with all the attributes of the shampoo. Clinic All Clear provides high
satisfaction to the consumer as far as anti dandruff quality of the
shampoo is concerned.
SUNSILK : [4MALES & 6 FEMALES] Satisfaction level with Sunsilk was the last
rated among the customer. Sunsilk to a large extent fails to satisfy hair
nourishment, antidandruff and hair repair needs of the consumer.
Personal Details
Sex Male Female
[1:1 RATIO]
Age 17 – 25
OCCUPATION
Student
16001-24000 24001-32000
PRESENTATION
ANSWER-3
Price Availability
Response
FEMALE:
-- Hair problem
-- Fragrance
-- Packaging
-- Price
-- Availability
In the above response few 3 girls responded price followed by packaging.
MALE:
[Section-1] [Section-2]
-- Fragrance -- price
-- Hair type -- hair type
-- Fragrance -- Packaging
-- packaging -- Price
-- Availability -- availability
ANSWER-6
Semantic
ANSWER - 9
Brand Sunsilk Clinic Organics Pantene
Media M F M F M F M F
TV 10 10 10 10 10 10 10 10
Magazine 6 8 8 5 4 7
9 4
Newspaper 4 6 9 7 6 4 7 5
ANSWER – 10