A SURVEY REPORT OF PRODUCT VS BRAND ON BATHING SOAP

EXECUTIVE SUMMARY
FMCG industry is the most emerging industry nowadays in Indian as well as global market. In India it is the 4th largest market, which shows that how important the industry is and how much it contributes towards our economy. FMCG includes the personal care products also like soaps, shampoos, etc. so our project mainly focuses on the market and study of BATH SOAPS IN INDIA. It consists various multi national and domestic companies. Major players are Unilever(HLL), Nirma, Godrej, Johnson & Johnson, colgate-palmolive, etc. Our main focus is on Hindustan lever ltd, Nirma, and Godrej. HLL is having largest market share within our country which gives tough competition to other local and domestic companies also. Bath soap market is gradually developing very fast and day by day many new varieties, flavours, and fragrances, are added in it by various companies to exist in the market. Our project consists study of 3 major players of bath soap market and their SWOT analysis, BCG Matrix, 5 forces model of the industry and the companies. Various suggestions and recommendations are also been given to the FMCG sector bath soap segment. HLL is the most dominating company across the world in FMCG sector due to its vertical and horizontal integration. Then also Nirma and Godrej are trying to give tough fight to it. Main mantra for success of the companies is the diversification of their business and their products. Thus the study provides detailed study of FMCG sector with focus on bath soap industry.

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A SURVEY REPORT OF PRODUCT VS BRAND ON BATHING SOAP INTRODUCTION

History of Bath-soap Soap has been with us in one form or another for thousands of years. The story goes that in Rome in around 1,000 B.C. at a place called Sapo Hill, the women were washing their clothes in a small tributary of the river Tiber, below a religious site where animal sacrifice took place. They noticed that the clothes became clean upon contact with the soapy clay which was dripping down the hill and into the water. It was noticed later that this cleansing agent was formed by the animal fat soaking through the wood ashes and into the clay soil. Strangely, in the first century A.D., the Romans are credited with the making of a soap-like substance using urine. The ammonium carbonate in the urine was reacted with oils and fat in wool to form this 'soap'. During the Eighth Century the Spanish and Italians began making what was more like modern soap from Beech Tree ash and Goat fat, whilst the French are credited with replacing the animal fat with Olive oil. In England during the 17th century under King James I, soap makers were given 'special privileges' and the soap industry started developing more rapidly, although soaps were generally still made using caustic alkalies such as potash, leached from wood ashes and from carbonates from the ashes of plants or seaweed. The soaps made in this way were harsh and often rather unpleasant. Soap as we know it today did not come about until the 18th century, when Nicholas Le Blanc, a Frenchman, discovered a reliable and inexpensive way of making sodium hydroxide (caustic soda), or lye as it is known to the soap maker, which forms the base with which soaps are made to this day. Further developments in soap making were pioneered in Britain during the late 18th century with the invention of 'Transparent' soap by Andrew Pears, the son of a Cornish farmer. Transparent Soap. FMS SAGAR Page 2 This refined soap was known then as it is now as Pears

A SURVEY REPORT OF PRODUCT VS BRAND ON BATHING SOAP

Over the years and to the present day, opaque soaps have remained the favourite, mainly because transparent soaps tend to be more expensive and also don't last as long. Factors likely to encourage soap marketing and consumption in developing countries in the future include: More discriminating educated and aware consumers. Growth of the media, especially TV Improvements in transportation and communication networks. Innovative R&D for raw materials and finished products. Growth of supermarkets and retail outlets. High speed packaging machines and attractive packaging materials. State of the art technology to enhance productivity and reduce cost. Increasingly talented advertising and market research agencies. Liberalisation of markets and growth in free trade.

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A SURVEY REPORT OF PRODUCT VS BRAND ON BATHING SOAP INDUSTRY PROFILE

The Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector in the economy with a total market size in excess of Rs 60,000 crore. This industry essentially comprises Consumer Non Durable (CND) products and caters to the everyday need of the population. Product Characteristics Products belonging to the FMCG segment generally have the following characteristics:

They are used at least once a month They are used directly by the end-consumer They are non-durable They are sold in packaged form They are branded

Industry Segments The main segments of the FMCG sector are:

Personal Care: oral care; hair care; skin care; personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; paper products (tissues, diapers, sanitary); shoe care.

Major companies active in this segment include Hindustan Lever; Godrej Soaps, ColgatePalmolive, Marico, Dabur and Procter & Gamble.

Household Care: fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellants, metal polish and furniture polish). Major companies active in this segment include Hindustan Lever, Nirma and Reckitt & Colman.

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Branded and Packaged Food and Beverages: health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; processed fruits, vegetables and meat; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc. Major companies active in this segment include Hindustan Lever, Nestle, Cadbury and Dabur.

Spirits and Tobacc Major companies active in this segment include ITC, Godfrey Philips, UB and Shaw Wallace. An exact product-wise sales break up for each of the items is difficult. The size of the fabric wash market is estimated to be Rs 4500 crore; of household

cleaners to be Rs 1100 crore; of personal wash products to be Rs 4000 crore; of hair care products to be Rs 2600 crore; of oral care products to be Rs 2600 crore; of health beverages to be Rs 1100 crore; of bread and biscuits to be Rs 8000 crore ; of chocolates to be Rs 350 crore and of ice cream to be Rs 900 crore. In volume terms, the production of toilet soap is estimated to have grown by four per cent in 1999-2000 from 5,30.000 tonnes from 5,10,000 tonnes in 1998-99. The production of synthetic detergents has grown by eight per cent in 1999-2000 to 2.6 million tonnes. The cosmetics and toiletries segment has registered a 15 per cent growth in 1999-2000 as against an annual growth of 30 per cent recorded during the period 199293 to 1997-98. In the packaged food and beverage segment, ice cream has registered a negligible growth and the soft drink industry has registered a six per cent growth in 1999-2000.

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A SURVEY REPORT OF PRODUCT VS BRAND ON BATHING SOAP BATHING SOAP INDUSTRY IN INDIA
Today, the FMCG sector is the fourth-largest sector in the Indian economy, with an estimated total market size of around Rs 450 bn. Further, the growth potential for all the FMCG companies is huge, as the per capita consumption of almost all products in the country is amongst the lowest in the world. Further, if these companies can change consumer's mindset and offer new generation products, they would be able to generate higher growth. For example, Indian consumers used to wear non-branded clothes for years, but today, clothes of different brands are available and the same consumers are willing to pay almost 5 times more for branded quality clothes. It is the quality and innovation of products, which is really driving many sectors. Thus, FMCG companies should use their imagination and respect the tastes of Indian consumers by offering quality products. Toilet soap industry is one of the oldest Fast Moving Consumer Goods (FMCG) industry in India. It is among the highest penetrated category within FMCG sector reaching an estimated 95% urban and 87% of the rural households. In value terms the industry is worth Rs.45000million and in volume terms it is worth .53 million . The main characteristic of the industry was severe competition and high level of brand proliferation. Toilet soaps account for more than 50% of the Consumer After expanding at a snail's pace, the market for personal wash products appears to have come to grinding halt in 2001. After posting a modest single digit growth in 1997-2000, figures for the first seven months of this year suggest that the market for toilet soaps has actually shrunk. Estimates about the extent of the decline of market size vary. Hindustan Lever, which straddles the category with a 59.9 per cent market share by value, says the market shrank by 4.4 per cent in value terms in the first half of 2001. The Indian Soaps and Toiletries Manufacturers Association, puts the decline at 1 per cent. Other industry sources suggest that the extent of `de-growth' in the first eight months of 2001 could be as high as 7 per cent.

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This is despite the fact that this usually sleepy category has seen a spate of new players debut new offerings in recent times. Over the past couple of years, Nirma has launched a slew of low-priced soaps under the banner of Nima and Nirma Beauty. Godrej Consumer, a long-standing player, has relaunched old brands such as Cinthol, apart from new ones such as FairGlow, Allcare, and Nikhar. Henkel SPIC has made a maiden foray into the market with the Fa range of soaps. Colgate Palmolive has pepped up its soap range with extensions such as Palmolive Naturals and Palmolive Extra Care. The market leader HLL, has relaunched Breeze, apart from launching Skin Care and Sunscreen variants of its premium soap -- Lux International. If the shrinking market size suggests that Indian consumers have actually been cutting back on their use of toilet soaps, this is not really the case. In volume terms, the market for toilet soaps has continued to show a growth of 6 per cent in the first eight months of 2001. The major players have certainly managed to sell more toilet soaps by volume. But price competition in the segment and a slew of promotional campaigns have reduced the effective realisations per unit sold. This has probably neutralised the gains from volume expansion. Theories about the reasons for the shrinking the market size vary. Low-priced brands Industry players commonly attribute the `de-growth' in the soap market to downtrading. Toilet soaps are among the highest penetrated products within the FMCG market, reaching an estimated 95 per cent of the urban and 87 per cent of the rural households. The fairly high contribution from the rural market makes this category sensitive to the fortunes of the agricultural economy. The prolonged drought in the North and West of the country (until 2000) and the sharp fall in farm disposable incomes (brought on by falling farm product prices) has probably persuaded low-income households to downtrade, that is, switch from high- to low-priced brands.

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This is indeed supported by the fact that within toilet soaps, it is the discount segment (soaps that cost between Rs 5 and Rs 8 per 75 grams) that has registered the highest growth rates over the past year. HLL, too appears to endorse the phenomenon of downtrading. ``There has been an inter-sectoral shift in the soap market, with consumers downtrading from premium and popular to discount soaps'', explains the company's spokesperson. However, Mr Hoshedar K. Press, Godrej Consumer Care, begs to differ. ``We think consumers have already pre-committed their incomes for instalments on durables. The substitution of soap with shampoos for hair wash has also impacted growth'', he said. Better quality The crowded market place has also brought a few benefits to the consumer as marketers of soap have tried to woo consumers through upgraded offerings and better quality soaps. Aided by low input prices, the marketers of toilet soaps have increased the TFM (total fatty matter) content in their brands, to offer better quality soaps at a lower price. Industry watchers say that the TFM content on some brands has moved up from the 50-60 per cent earlier to over 70 per cent of late. Therefore, per unit realisations on soaps have declined, the marketers of soaps have actually sacrificed a part of their margins on hiking the TFM content. Tough times ahead With competitive pressures on the rise and a larger number of brands jostling for consumer attention in a sluggish market, the soap market is likely to remain a difficult one for most players. Smaller players such as Godrej Consumer and Henkel SPIC have been in a position to report robust sales growth in the category over the past year despite the bruising competition. However, this is partly due to a relatively small base of comparison. Unless the market expands, the frenetic promotional activity may soon tell on the growth rate of the

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players. And when it comes to sustaining a high decibel promotional campaign, HLL's size certainly gives it the wherewithal to do it. Rural revival -- A wild card It appears that a genuine boost to the market size for toilet soaps will still have to come from a revival in rural demand. Evidence from the past does appear to suggest that a sharp rise in rural incomes would have a cascading effect on FMCG demand. The pickup in volume growth in the soap market in 1999, after a year of sluggish growth in 1998, demonstrated that a recovery in agricultural output does have an indirect impact on sales volumes of FMCG products. This year, reports of a good monsoon in the northern and western parts of the country have sparked off speculation about a revival in FMCG growth rates. The fact these two regions account for 55 per cent of the demand for FMCG products strengthens this argument. However, it appears to be a bit early in the day to call it a revival. For one, while the northern and western regions have received satisfactory rains, southern India has been the victim of a very erratic monsoon. Second, given that the good monsoon in the current year succeeds two or three consecutive years of drought in some regions, there could be a substantial time lag before higher rural incomes translate into better FMCG demand Third, the key crisis in agriculture over the past year has been that farm product prices have dropped sharply in response to a build up of surplus foodgrain stocks. Therefore, even if a good monsoon translates into a higher agricultural output, there is the question of whether this will actually expand or shrink farm incomes. These factors suggest that it may be premature to take investment exposures in companies focussed on toilet soaps in the hope of a revival. It may be better to wait for concrete signs of a pick-up in rural demand, which is certainly some way off. Nature of the global Industry

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The global soap market is dominated by a small number of multinational companies. Soap is only one sector of their product ranges. In multinational companies such as Unilever and Procter & Gamble, soap and detergent ranges typically account for less than 20% of group turnover (in 1999). The largest toilet soaps and detergents only company, by volume sales, is the Unilever Group, which has strong presence in all regional markets in the world. The top ten leading manufacturers and distributors of soap worldwide account for more than 55% of total sales by value in 1999, totalling in excess of US$80 billion.

Position 1 2 3 4

Company Unilever Procter & Gamble Gillette Group Colgate Palmolive

% Value of World 10.07 7.41 7.66 4.5

Table-1: The Lead Players and their Market Share Company HLL Godrej Nirma Colgate Palmolive Others Source: Vanscom Database Percentage of Market Share 67 10 8 1 14

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Percentage of Market Share HLL Godrej Nirma Colgate Palmoliv e Others

The leading brands in the market are Dove, Pears, Lux, Dettol, Liril, Rexona, Lifebuoy, Nirma, Palmolive and Hamam. A survey reported in Vanscom, which was conducted in Ahmedabad, showed that 103 toilets soap brands were available in this city alone. The industry had witnessed many innovative sales promotion activities in the recent past. Numerous factors were responsible for such a phenomenon. One of the reasons being that the market being sluggish, companies were trying to increase market share in stagnant to declining (volume terms) market in order to retain consumers, to encourage switching, to induce trials and liquidate excessive inventories. Another reason possible was that with the presence of so many brands the competition had increased severally leading to fight for market share and shelf space. Inflationary trend had made both the consumer as well as trade deal prone. Due to such a dense market like India big companies adopt different strategies and coming up with various sales promotion schemes continuously. Today big players in Indian bath-soap market are 1. HLL (Hindustan lever limited a subsidiary of Unilever) FMS SAGAR Page 11

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2. Godrej 3. Nirma 4. P&g (Procter and gamble) Among these players HLL is the biggest player with around 67% of market share. For HLL most of the soap has become a brand they have their own identity.LUX is the most recalled soap in the mind of the consumers. For these main four players , each soap is described in brief as an introduction about which soap belongs to which company. There is a strong MNC presence in the Indian FMCG market and out of the top 10 FMCG companies, four are multinationals while two others have significant MNC shareholdings. Unlike several other sectors where multinationals have entered after 1991, MNCs have been active in India for a long time. The top five listed FMCG companies on the basis of their sales turnover in the last financial year (either year ended December 31, 1999 or March 31, 2000) are:

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OBJECTIVES OF THE STUDY

To find out brand preference of customers in a particular town. To find out category preference. To find out brand loyalty of customers. To find out the source of influence of customer purchase. To rank the various attributes while selecting a brand.

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INDUSTRY SWOT ANALYSIS

Strengths: Well-established distribution network extending to rural areas. Strong brands in the FMCG sector. Low cost operations

Weaknesses: Low export levels. Small scale sector reservations limit ability to invest in technology and Several "me-too products.

achieve economies of scale.

Opportunities: Large domestic market. Export potential Increasing income levels will result in faster revenue growth.

Threats: Imports Tax and regulatory structure Slowdown in rural demand

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COMPANY PROFILE

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NIRMA A SURVEY REPORT OF PRODUCT VS BRAND ON BATHING

SOAP
Background The Nirma story began in 1969 and since then it has expanded its detergents (cakes and powders), soaps, soap intermediates Alfa Olefin Sulphonate (AOS) to a level of Rs. 82 billion. Today, Nirma has a Rs.17 billion share in this market and has been acknowledged as a marketing miracle. Nirma known for its focus on cost effectiveness by integrating latest technology manufacturing facilities with innovative marketing strategies to create world class brands, has by passed MNCs like HLL, P&G to become the market leader (in terms of volumes) in this price-sensitive industry. In value terms, Nirma holds 16% market share in the branded detergents segment. The manufacturing and marketing operations were divided in several closely held group companies. In FY97, Nirma group restructured its operations and merged 4 companies, namely Nilinta Chemicals Ltd, Nirma Detergents Limited, Nirma Soaps and Detergents Limited and Shiva Soaps and Detergents Limited, with its flagship Nirma Limited. Kisan Industries, the sole separate detergent manufacturing unit has been merged with Nirma in March '00. Nirma now owns all the detergent manufacturing facilities of the group, besides toilet soap/other industrial chemicals manufacturing facilities and a modern packaging unit owned by Kisan. Marketing of products is carried out through a 100% subsidiary, Nirma Consumer Care Limited (NCCL). NCCL is the licensee for using the trade marks and the brand Nirma, which are owned by Nirma Chemicals Pvt Ltd. NCCLs lease for the brand will be in perpetuity, except in the event of Karsanbhai & Associates equity stake in NCCL falling below 51%. olding Pattern

Business Overview Nirmas principal business activities pertain to manufacture and sale of detergents and toilet soap. Nirma dominates the popular detergent segment with brands like Nirma Popular powder, Nirma Detergent powder, Nirma bar, etc. Super Nirma detergent powder is positioned in the mid-priced segment. Toilet soaps recorded a strong 40% plus volume and value growth driven by the success of the launch of "NIMA" brand in FY00. Nirma also sells glycerine, LAB and other industrial chemicals. The Soaps & Detergents Industry is characterized by a number of small scale manufacturers at one end of the FMS SAGAR Page 16 spectrum and large companies (including MNC's) at the other end. The market for Soaps & Detergents has increased manifold with changing lifestyles, growing purchasing power, increased awareness about personal hygiene, responsiveness of the consumer to brands offering superior value and the spread of audio-visual

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Nirma Beauty Soap

With its market promise to offer Better Products, Better Value, Better Living, Nirma introduced Nirma Beauty Soap in the year 1992. Available in three different variants and pack sizes, this soap has a TFM content of 70%. Due to its admirable perfume and a higher TFM content, this brand, within a short span of five years, had achieved the status of the third largest selling toilet soap brand and still continues its outstanding perform Nirma Lime Fresh Soap

This product had created a sensational marketing history in the Indian Toilet soaps market, when it was launched in 1997. Seventeen million packs of Nirma Lime Fresh soap were sold in the very first month of its soft launch. Packed in a poly coated 75 gm carton, which is printed on the worlds best Cerruti 8-colour printing machine, this soap is available in green colour. With a lime aroma that tingles in ones sensory buds for a long time, this soap contains 80% TFM. The product launch of Nirma Lime Fresh had been extremely successful, being ranked as the Seventh Most Successful Brand Launch for the year 1998, as ranked by the Business Standard Marketing Derby, 1998. (as featured in The Strategist Quarterly, July-September 1998).

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Strategy Nirma's large capex backward integration projects had been undertaken with a strategy to become the lowest cost detergent manufacturer in the world. Self sufficiency in key raw materials will give protection against commodity cycles besides yielding substantial savings in raw material cost. The company estimates a total cost saving of 25% in material and handling costs due to the backward integration projects. The LAB plant has yielded about 12% cost savings and the company expects a similar cost saving of about 12-15% once the soda ash plant stabilizes. Overall the backward integration has yielded a cost saving of Rs0.8-1bn last year. Post completion of backward integration the company now plans to focus on building large volumes and gain from economies of scale. The company plans to tap export markets and is alos looking at acquisition opportunities or distribution tie up arrangements in other FMCG categories. Branded salt will be launched by the end of the year. The company is also considering other categories such as shampoo, toothpaste and fabric whiteners. Earnings sensitivity factors: Stabilization of backward integration projects Volume growth in detergents as well as toilet soaps and utilization of expanded capacity Toilet soap market share : Success of new launches, market share growth will drive profitability. Commodity price movement of LAB and Soda ash will have significant impact on companys competitive position, as Nirma will be the only company to have its own raw material production facility. The Consumer products division continued to grow at a healthy pace of 26% yoy, driven by the success of the Nima launch. Nirma has for the first time diverted from its strategy of umbrella branding and has launched Nima as a 'fighter brand' - to fight competition and the unorganized sector. And the company has achieved tremendous

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success. In a scenario where the average industry has been growing at a poor 2-3%, the company has managed to almost achieve double digit volume growth.

2. HINDUSTAN LEVER LIMITED

Mission Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. Hindustan Lever (HLL), India's largest fast-moving consumer goods company is also the country's largest company in terms of market capitalisation. It leads in home and personal care products, and foods and beverages with over 110 brands. The Far Eastern Economic Review rates HLL as the best Indian company and recognises it as one which all others want to emulate. Its market capitalisation went up 18% to Rs 324351 mln (taking it to the first position from last year's third) when the total market capitalisation of the Top 500 companies was down 22%. It now accounts for almost 8.4% of the total market capitalisation of the Top 500. HLL's rank on other parameters are - capital employed: 87, gross block: 59, sales: 8, net profit: 12, net forex earnings: 6 and trading value: 8. Products : Lux Rexona Pears Dove Breeze Hamam Liril Lifebuoy

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Lux Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Lux continues to be a favorite with generations of users for the experience of a sensuous and luxurious bath. Since its launch in India in the year 1929, Lux has offered a range of soaps in different sensuous colors and world class fragrances. 2003 saw one of the biggest milestones in the history of Lux. From being just a beauty soap of film stars, Lux recognized the need for a compelling message about beauty that would resonate with women of today. Lux is available in four different variants Exotic flower petals and Jojoba Oil, Almond Oil and Milk Cream, Fruit Extracts and Honey in Milk Cream and Sandal Saffron in Milk Cream.

Rexona Rexona is one of India's pioneer brands in family soaps. Launched in 1947, it was positioned as a natural skin care soap to give silky, glowing skin. Since then the product has been constantly improved to keep up with the expectations of the consumers. In 1989 coconut was introduced in Rexona for the first time to strengthen the overall skincare appeal of the brand. Rexona has now been relaunched with cucumber extracts, in addition to coconut oil and moisturising milk cream. Its creamy lather purifies the skin, leaving it clear and flawless. It has also been enhanced with a perfume that lingers well after a bath.

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Pears Introduced in India in 1902, Pears soap has no equal. It is gentle enough, even for baby's skin. Pears is manufactured like any other soap, but unlike in conventional soaps, the glycerine is retained within the soap. That is the cause if its unique transparency. After manufacturing, the soap is mellowed under controlled conditions over weeks. At the end of this maturing process, it is individually polished and packed in cartons. Today Pears is available in three variants - the traditional amber variant, a green variant for oil control and a blue variant for germ protection.

Dove Dove soap, which was launched by Unilever in 1957, has been available in India since 1995. It provides a refreshingly real alternative for women who recognise that beauty is not simply about how you look, it is about how you feel. The skin's natural pH is slightly acidic 5.5-6. Ordinary soaps tend to be alkaline, with pH higher than 9. Dove is formulated to be pH neutral (pH between 6.5 and 7.5) and to be mild on skin. This makes it suitable for all skin types for all seasons. While Dove soap bar is widely available across the country, Dove Body Wash is available in select outlets. Globally, Dove has been extended to many other countries. Since the 1980s, for example, Unilever has launched a moisturising body-wash, deodorants, body lotions, facial

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cleansers and shampoos and conditioners, providing a comprehensive range of solutions to bring out true inner beauty.

Breeze

Breeze Scent Magic is the soap which fulfills the aspirations of women of rural India. Breeze has offered them 'beauty at an affordable price', making them look and feel beautiful. Research and consumer visits have shown that the desire for great fragrance featured highest in the daily beauty regime of discount-soap users. Breeze explores this through the proposition of 'scent in a soap-Scent ka kamaal, ab sabun mein' and explicitly propagates the brand promise of the "Hameshaa kuchh extra". It delivers all this and still matches consumer's needs in terms of price and quantity offered, staying true to its word. Breeze has been enriched with 19 special scent oils, which ensure that one smells good for a long time through the day. Introduced in variants like Scent Magic, Scent Magic Lime, and Scent Magic Sandal, Breeze strives towards fulfilling the company's mission of being inventive in creating value. Hamam

When it comes to soaps, Hamam is considered to be the most reliable option. Launched in 1934, Hamam has traditionally been a soap that takes care of your skin in a natural way. FMS SAGAR Page 22

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According to a research conducted By Indica Research in May 2003, 78% of Doctors in Tamil Nadu recommend Hamam. Besides being a perfectly balanced soap, Hamam takes on a very modern and trendy look. Hamam's enhanced fragrance now provides a longer lasting freshness. The new attractive oval shaped Hamam comes in an attractive and modern packaging. The ingredients that are used in Hamam - Neem, Tulsi and Aloe Vera - by themselves have great therapeutic values. Hamam, the brand is very true to its tagline that says, "Everything in life is about balance".

Liril For 28 years, freshness has been clearly identified with one name Liril Liril expressions have always set trends whether it is a bathing beauty in a waterfall or "Oof Yu Maa!" The energy and excitement levels associated with the brand have to be experienced to be believed with changing times. Liril has donned many avatars; Presently, Liril Soft Aloe Vera & Lime, Liril Icy Cool and Liril Orange splash are making waves. What's next? Wait and Watch! The show has just begun...

Lifebuoy Making a billion Indians feel safe and secure by meeting their health and hygiene needs is the mission of Lifebuoy. The world's largest selling soap offers a compelling health benefit to the entire family. Launched in 1895, Lifebuoy, for over a 100 years, has been synonymous with health and value. The brick red soap, with its perfume and popular Lifebuoy jingle, has carried the Lifebuoy message of health across the length and breadth of the country.

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The 2002 and 2004 relaunches have been turning points in its history. The new mix includes a new formulation and a repositioning to make it more relevant to both new and existing consumers.

HINDUSTAN LEVERS SWOT ANALYSIS

Strengths: With identified strengths including a strong brand portfolio; consumer understanding; R&D ability; FMS SAGAR Page 24

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distribution reach(networking) and high quality manpower Strong media personalities As the production is on large scale it has the benefit of economies of scale. Being very old and reputed company, the company and its brands achieves highest trust of the consumers. Weaknesses: The company's weaknesses spotted thereby include Increased consumer spends on education, consumer durable, entertainment, travel, etc resulting in lower share of wallet for FMCG; Complex supply chain configuration and unwieldy number of stock keeping units (SKUs) with dispersed manufacturing locations; Opportunities: HLL sees its opportunities as market and brand growth through increased penetration especially in rural areas; brand growth through increased consumption depth and frequency of usage across all categories; upgrading consumers through innovation to new levels of quality and performance; emerging modern trade to be effectively used for introduction of more upscale personal care products; growing consumption in out of home categories; Threats: Perceived threats span low-priced competition now being present in all categories; grey imports FMS SAGAR Page 25

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spurious/counterfeit products in rural areas and small towns; changes in fiscal benefits.

3. GODREJ

VISION: Godrej in every home and work place. MISSION: Enriching quality of life everyday everywhere. We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. As a result, consumers will reward us with leadership sales, profit, and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper. VALUES: Integrity, Trust, To serve respect, Environment. Company Overview Godrej Industries Limited, formally Godrej Soaps, is India's large manufacturer of oleochemicals. As well as the chemicals industry, Godrej also operates in the food and

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medical diagnostics markets. The company is part of the Godrej Group conglomerate. Godrej Industries is headquartered in Mumbai, India For the fiscal year ended March 2004, the company generated revenues of $417.34 million (Rs18.23 billion), an increase of 9.7% on the previous year. The company saw a net income of $13.14 million (Rs573.8 million) during fiscal 2004, an increase of 72.5% on fiscal 2003.

Godrej Consumer Prodiucts Ltd (GCPL) was formed wef April1, 2001 with the demerger of the consumer business of the erstwhile Godrej Soaps Ltd. GCPL has emerged as a focussed FMCG company. Its main product lines now consist of toilet soaps, liquid detergent, cosmetics such as hair care, fairness creams, etc and mens toiletries. The company also undertakes contract manufacturing of toilet soap for third parties. All interests of the erstwhile Godrej Soaps in other businesses such as industrial chemicals, medical diagnostics and financial investments continued to remain in the existing entity, post demerger and the company has been renamed Godrej Industries Ltd (GIL) Godrej has the distinction of being the first company in the world to develop technology to make soap with vegetable oils, way back in 1930. In the early 90s Godrej had created strong brand equities for its leading brands Cinthol, Ganga, Marvel, Evita etc. In 1994, Godrej entered into a strategic alliance with P&G for inter alia toilet soap business, under which Godrej used to manufacture soaps, which were marketed by a joint venture company. However post marketing alliance with P&G, the company lost significant part of its market share and subsequently the arrangement was discontinued. Godrejs entire distribution network was then taken over by P&G. Godrej reestablished a distribution network by utilizing the network of group company Godrej Hicare for marketing of its brands and in FY00 took over the entire distribution network from them.

Toilet soaps account for more than 50% of the Consumer business sales. Hair Color (20%), Contract manufacturing of toilet soap for other industry players (13%), Detergents (6%) and Cosmetics and Toiletries (8%) are the other contributors to GCPLs turnover. Exports of Godrej Brands (2% of overall sales) grew by 28% yoy in FY01.

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% of Sales 53 FY2001 2,476 FY2000 Growth 2,119 16.9

Soaps

Cinthol Cinthol is the flagship brand of Godrej Consumer Products Limited. The brand was launched in 1952 as the first Deodorant Soap in the country. In 1960 Cinthol Deodorant Talc was launched. It continued to sell as a freshness talc thereafter. The brand, over the first three decades of its existence, took the platform of protection from body odor.

In 1986 , in an attempt to modernize the image "New Cinthol " soap was launched with new look packaging , shape and advertising using celebrities like Vinod Khanna and Imran Khan . This communication campaign developed strong "confident" , "active" associations with Cinthol which became a part of the essence of the brand Godrej FairGlow

The Godrej FairGlow fairness soap contains a powerful fairness ingredient ' Natural OxyG ', which makes you fairer by reducing the dark melanin without changing the skin's natural balance. In addition, it also removes blemishes to give you a clear, glowing complexion.

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Godrej FairGlow Soap was India's first and is the largest selling fairness soap. It helps you become fairer in a convenient way, simply through a daily bath. It is a quality Grade 1 fairness product having 76% TFM (Total Fatty Matter). It has a pleasant fragrance and is white in colour.

Godrej no1

Godrej no.1 is another popular soap from godrej product line , it is proved popular in the rural market due to the affordable price and the quality offered.it comes in three colours and flavour, it is giving good fight to the leading brands too. Godrej Shikakai soap

This is also one of the popular soap of the

godrej

product line. This soap is used to wash hairs. Many people believes shikakai as a best thing to wash the hair . black ,long and silki hairs are result of utilization of the soap. This soap is giving fight to all the shampoo for washing the hairs. It is proved very popular among women. All of these soaps can be further classify in to three basic segments Price Segments of Bath Soaps Segment Premium Popular Economy Price > Rs.15 Rs.8-15 < Rs.8 Weight 75 gm. 75 gm. 75 gm.

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RESEARCH METHODOLOGY
Need for study Fmcg sector is very vast and 4th largest sector in Indian economy in which different marketer use different strategies for the survival and make profit from their products or brands. In this sector there is very tough competition between players.they are using large number of advertising,sales promotions, positioning, and pricing strategies. Research design We have used secondary data as a source of this research. Data sources Secondary data: Sample size-60 Web sites, Magazines, Newspapers Limitations of study Lack of sufficient material. Lack of time.

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Five forces analysis of bath soap industry SUPPLY Abundant supply in metros Competition is beefing up their distribution network to penetrate the rural areas. DEMAND At an average GDP growth of 5.5% until February 2007, and the present consumer demand is set to boom by almost 60% over this period. Most fmcg companies are awaiting to tap this latent. BARRIERS TO ENTRY Huge investment in promoting brands, setting of distribution network and intense competition. BARGAINING POWER OF SUPPLIERS Many established players have a slight edge in bargaining power giving the competition among suppliers. Some of the companies have backward integration, which reduces the suppliers clout. BARGAINING POWER OF CUSTOMERS

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Due to increase in branded products, there is less chance for consumers.(eg getting one soap free with one unit of soap) that the consumer can

influence, but intense competition within fmcg companies result in value for money deals

COMPETITION In bath soap industry there are low profit margins about 5 10% but they are selling in huge volumes. To beat the competition companies mainly use various strategies like discounts and freebies. Unbranded players are size of Rs.1-3 billion and they are growing at the rate of 10%. Local players have no large distribution network so they are giving fight to the branded products by giving huge margins to retailers which is an important part of supply chain. Hindustan Levers SWOT analysis

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Strengths: With identified strengths including a strong brand portfolio; consumer understanding; R&D ability; distribution reach(networking) and high quality manpower Strong media personalities

Weaknesses: The company's weaknesses spotted thereby include Increased consumer spends on education, consumer durable, entertainment, travel, etc resulting in lower share of wallet for FMCG; FMS SAGAR Page 33

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Complex supply chain configuration and unwieldy number of stock keeping units (SKUs) with dispersed manufacturing locations; Price positioning in some categories that allows for low price competition and high social costs in the plantation business. Opportunities: HLL sees its opportunities as market and brand growth through increased penetration especially in rural areas; brand growth through increased consumption depth and frequency of usage across all categories; upgrading consumers through innovation to new levels of quality and performance; Threats: Perceived threats span low-priced competition now being present in all categories; grey imports spurious/counterfeit products in rural areas and small towns; changes in fiscal benefits.

DATA ANALYSIS

Q-1 Do you use Soap?

(1) Yes Yes No (2) No 60 0

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60 50 40 30 20 10 0 Yes No

Comment:
In this report 60 people is taken as research. First question about the usage of Soap. In this question all the 60 people mark on YES option. So assume that all people use soap.

Q-2 What kind of Soap do you use?

(A)Beauty Soap (B) Antiseptics Soap (C) Ayurevedic Soap Beauty Soap Antiseptic Soap Ayurevedic Soap 30 22 8

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30 25 20 15 10 5 0 Beauty Soap Antiseptic Soap Ayurevedic Soap

Comment:
From the above figure we find that out of the 60 people more & more people use Beauty soap. Majority of peoples choice is Beauty soap in which include Lux, Dove, Pears etc.

Q3-Why do you prefer this brand?

(1)Attribute (2) Price Factor (3) Advertisement/Brand image (4) Suitability (5) Others Attribute Price Factor
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A SURVEY REPORT OF PRODUCT VS BRAND ON BATHING SOAP Advt/Brand img 8 Suitability 22 Others 2

25 20 15 10 5 0 Attribute Price Factor Advt/Brand im g Suitability Others

Comment:
This data tells that maximum people gets easily suitable to prefer this brand. About attribute the people easily involved. About price factor, soaps are of different prices as well as different sizes also so that all level of people easily consumed. And ,about advertisement or brand which attract the consumer more easily.

Q4-What is the monthly usage of your brand soap?

(1) 2 pieces (2) 4 pieces (3) 6 pieces (4) Specify 2 pieces 4 pieces FMS SAGAR 6 pieces Specify 33 19 4 2

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35 30 25 20 15 10 5 0 2 pieces 4 pieces 6 pieces specify

Comment:
From above data, people prefer 2 pieces because it is enough to consume for an individual or a neutral family it is enough to consume in a month and if they did not satisfied with their soap so they easily prefer other brand soap also. In Joint family mostly uses of 4 & 6 pieces pack.

Q5-How did you come to know about this brand? (1) T.V. (2) Newspapers (3) Magazines (4) Word of mouth (5) Others

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T.V. Newspapers Magazines Word of Mouth Others

41 3 5 7 4

50 40 30 20 10 0 T.V. New spapers Magazines Word of Mouth Others

Comment:
In this data, firstly From T.V. people aware about the brand soap. From word of Mouth it means when people gets easily satisfied with the brand then they convey the message people to people.

Q6-What kind of changes you want to include in your favorite brand of soap?
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A SURVEY REPORT OF PRODUCT VS BRAND ON BATHING SOAP (1) Packaging (2) Fragrance (3) Quality (4) Prices (5) Others Packaging Fragrance Quality Price Others
20 15 10 5 0 Packaging Fragrance Quality Price Others

7 20 19 14 0

Comment:
From the above data we conclude that when people dissatisfied with the Fragrance then they want some change in their favorite brand soap. People wants the quality also for their soap. Price is also the main factor, If the price rises of the soap then they go for the another brand soap which is easily affordable for the all consumers.

Q7- Comment on its affordability?

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A SURVEY REPORT OF PRODUCT VS BRAND ON BATHING SOAP (1) High (2) Optimum (3) Low High 21 Optimum 37 Low 1

40 30 20 10 0

High Optim um Low

Comment:
From the given data, price should be always affordable that all levels of people easily consume the brand soap like pears, dove which rates are very high that all levels of people does not consume easily.

Q8-How much are you satisfied with your soap brand?

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(1) Highly Satisfied (2) Satisfied (3)Unsatisfied Highly Satisfied 25 Satisfied 33 Unsatisfied 2

35 30 25 20 15 10 5 0 Highly Satisfied Satisfied Unsatisfied

Comment:
In this data, satisfied people are those which compromise with their branding, packaging, labeling, pricing, etc and after sometimes they want some change also for their brand .Now, highly satisfied people are those which they do not want to change their brand soap because they like price, packaging, labeling and so on

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Q9 In how much duration you prefer to change your brand.

(1) Weekly (2) Monthly (3) Half Yearly (4) Yearly Weekly Monthly Half Yearly Yearly 2 25 21 12

25 20 15 10 5 0

Weekly Monthly Half Yearly Yearly

Comment: In this data, Monthly people wants to change their brand soap because they feel some bored to use the one brand soap so they want some new change about their brand soap. Many people also wants to change their brand but not in monthly basis but after sometimes they want some new.

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Q10-If this brand soap is not available then you go for another brand soap?
(1)Yes (2) No Yes No 42 18

50 40 30 20 10 0 Yes No

Comment:
In this data, people said Yes, because they does not depend only in one soap they want some change also in their brand soap.And about No,the people who gets easily adaptable with their brand soap now they do not prefer to the another brand soap because they used for a long time also and which is easily affordable and gets highly satisfied also.

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FINDINGS
1. It is found that the people in the age group of 36-45 form the major chunk of customers. They form about 47% of the customers. 2. More than half of the customers use soap twice a day. 3. Only 10% respondents use specific brand for a considerable period of time. 4. The popular category soaps forms the most selling category of soaps. 5. 75 g was found to be the most popular volume among customers.

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SUGGESTIONS

For soap: Reduce burning sensation Adopt aggressive marketing strategy for toilet soaps.

Smaller size of toilet soaps to enable the travelling people to be brand loyal

For sales: Attractive Packaging

Incentive to dealers/ distributors

TV commercials telecasted especially during prime time Advertisements through Radio channels during morning and evening Outdoor media: billboards at railway stations, buses etc

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CONCLUSION
From the above detailed study of the FMCG industry with the focus on bath soap segment we can make out that FMCG is the most emerging sector and industry not only in India but all over the world. The main leaders of the bath soap segment like HLL, NIRMA. AND GODREJ are focused in the study which shows that HLL is the leader in FMCG industry and has a large amount of market share about 67% and even the growth rate. The main reason for the success of some companies is their strategy and distribution networks. HLL is dominating due to its diversification, vertical and horizontal integration, breadth and depth product line and innovative and customer oriented product introduction. Thus the company needs to focus on its distribution channels, networking, marketing strategies, sales promotion etc to succeed in the market. From the study we can make out that nirma and godrej still needs a lot market penetration in the urban market also with focus on the premium class.

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BIBLIOGRAPHY Websites : www.infoline.com www.nirma.co.in www.hll.com www.godrej.com www.thehindubusinessline.com www.google.com Newspapers: Business Standard Economic Times

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