Market Penetration of Power Soap

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INTRODUCTION

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CHAPTER I
1.1 INTRODUCTION
Market penetration is the activity or fact of increasing the market share of an existing
product, or promoting a new product, through strategies such as bundling, advertising, lowers
prices, or volume discounts .Often, managers must decide whether to seek sales growth by
acquiring existing category users from their competitors or by expanding the total population
of category users, attracting new customers to the market.
One strategy that is often used by companies that are still in a growing stage is that of
penetrating a market that already exists. Market penetration poses a reduced amount of risks,
in part because it makes use of established products as opposed to new ones. The most
effective way to enter any particular market is to allure the competitions customers. Other
possible marketing plans include attracting people who do not use your product, or
convincing customers who do use it to use more of it, more frequently. Advertising is
essential for successful market penetration.
A well known market penetration strategy is increasing sales. This marketing plan can be
achieved by enhancing the sales force, strengthening product distribution and promotion, and
spending more in marketing and advertising. However, before a company goes ahead with
this marketing plan, it should be determined whether the current market is not saturated, the
competitors market share is decreasing while the growth rate of the industry is increasing,
current buyers have the means of purchasing the same products and services in larger
quantities, and if economies of scale are providing a competitive edge. If some or all of those
conditions are not present, this strategy is not guaranteed to succeed.
Overseas Penetration
Cut price or lower your offer
Promote a new use of the product and enhance its features

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1.2 STATEMENT OF THE PROBLEM

The sales turnover of the power soap seems to be stable for the past 3 years. This shows that
there is no growth in the power brand sales turnover. Hence this study is intended to find out
the percentage of market penetration for power brand products which are existing now in
Puducherry. Thats why the title of the project is the study on market penetration of Power
soap brand in Puducherry region.

1.3OBJECTIVES OF THE STUDY

To find out the market penetration of power soap in Puducherry.
To identify the awareness & effectiveness of advertisement about the power brand.
To assess the customer purchase decision behavior on fast moving consumers goods.
To find the brand loyalty of the customers towards power brand.
To study the level of customer satisfaction in power brand.
1.4 FORMULATION OF HYPOTHESIS
1)
Null hypothesis:
Ho = There is no significant association between consumers income and consumers most
preferable brand.
Alternate hypothesis:
H1 =There is a significant association between consumers income and consumers most
preferable brand.
2)
Null hypothesis:
Ho = There is no significant association between consumers satisfaction level and price.
H1 =There is a significant association between consumers satisfaction level and price.
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1.5 SCOPE OF THE STUDY

The study helps the researcher to advise the company about market penetration of
Power soap for the respective areas where the study has been undertaken.

This study helps the management to know the consumer buying behavior and
satisfaction level towards the products.

This project can be the base for students who are doing the project in related areas.

The study will help the organization to know the consumer loyalty towards Power
brand.

1.5 NEED FOR THE STUDY
The study was mainly undertaken to identify the penetration level of power brand
among the consumers.
The study helps to find out the Power brand advertisement effectiveness among
the consumers in Puducherry.
The study helps the organization to know the reason for decrease in the number of
consumers of Power brand.


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1.1RESEARCH BACKGROUND
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumers Goods (FMCG). FMCG products are those that get replaced within a year.
Examples of FMCG generally include a wide range of frequently purchased consumers
products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products,
and plastic goods. FMCG may also include pharmaceuticals, consumers electronics,
packaged food products, soft drinks, tissue paper, and chocolate bars.
Fast Moving Consumers Goods (FMCG) Industry in India - Overview
Fast Moving Consumers Goods (FMCG) Industry in India is one of the fastest developing
sectors in the Indian economy. At present the FMCG Industry is worth US$ 13.1 billion and
it is the 4th largest in the Indian Economy. These products have very fast turnaround rate, i.e.
the time from production to the revenue from the sale of the product is very less. In the
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present economic scenario, time is regarded as money, so the FMCG companies have to be
very fast in manufacturing and supplying these goods.
Fast Moving Consumers Goods (FMCG) Industry in India Facts
The Fast Moving Consumers Goods (FMCG) Industry in India include segments like
cosmetics, toiletries, glassware, batteries, bulbs, pharmaceuticals, packaged food products,
white goods, house care products, plastic goods, consumers non durables, etc. The FMCG
market is highly concentrated in the urban areas as the rise in the income of the middle-
income group one of the major factors for the growth of the Indian FMCG market. The
penetration in the rural areas in India is not high as yet and the opportunity of growth in these
areas is huge by means of enhanced penetration in to the rural market and conducting
awareness programs in these areas. The scopes for the growth of the FMCG industry are high
as the per capita consumption of the FMCG products in India is low in comparison to the
other developed countries. The manufacturing of the FMCG goods is concentrated in the
western and southern belt of the country. There are other pockets of FMCG manufacturing
hubs.

Fast Moving Consumers Goods (FMCG) Industry in India - Major Players
Britannia India ltd
Dabur India ltd.
Marico
Nirma ltd.
Cadbury India ltd
Nestle
Procter & Gamble
Coca-cola
Colgate-Palmolive India
Jyothy laboratories
Unilever
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GENERAL SCENERIO OF THE INDUSTRY
Indias FMCG sector is the fourth largest sector in the economy and creates employment for
more than three million people in downstream Activities. Its principal constituents are
Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess
of Rs. 85,000 Crores. It is currently growing at double digit growth rate and is expected to
maintain a high growth rate. FMCG Industry is characterized by a well established
distribution network, low penetration levels, low operating cost, lower per capita
consumption and intense competition between the organized and unorganized segments.
Market share movements indicate that companies such as Marico Ltd and Nestle India Ltd,
with domination in their key categories, have improved their market shares and outperformed
peers in the FMCG sector. This has been also aided by the lack of competition in the
respective categories. Single product leaders such as Colgate Palmolive India Ltd and
Britannia Industries have also witnessed strength in their respective categories, aided by
innovations and strong distribution. Strong players in the economy segment like Godrej
Consumers Products Ltd in soaps and Dabur in toothpastes have also posted market share
improvement, with revived growth in semi-urban and rural market.

Structural Analysis of FMCG Industry
Typically, a consumer buys these goods at least once a month. The sector covers a wide
gamut of products such as detergents, toilet soaps, toothpaste, shampoos, creams, powders,
food products, confectioneries, beverages, and cigarettes. Typical characteristics of FMCG
products are: -

1. The products often cater to 3 very distinct but usually wanted for aspects - necessity,
comfort, luxury. They meet the demands of the entire cross section of population. Price and
income elasticity of demand varies across products and consumerss.

2. Individual items are of small value (small SKU's) although all FMCG products put
together account for a significant part of the consumers's budget.
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3. The consumers spend little time on the purchase decision. He seldom ever looks at the
technical specifications. Brand loyalties or recommendations of reliable retailer/ dealer drive
purchase decisions.
4. Limited inventory of these products (many of which are perishable) are kept by consumers
and prefers to purchase them frequently, as and when required.
5. Brand switching is often induced by heavy advertisement, recommendation of the retailer
or word of mouth.
Distinguishing features of Indian FMCG Business
FMCG companies sell their products directly to consumers. Major features that distinguish
this sector from the others include the following: -

A. Design and Manufacturing
1. Low Capital Intensity - Most product categories in FMCG require relatively minor
investment in plant and machinery and other fixed assets. Also, the business has low working
capital intensity as bulk of sales from manufacturing take place on a cash basis.
2. Technology - Basic technology for manufacturing is easily available. Also, technology
for most products has been fairly stable. Modifications and improvements rarely change the
basic process.
3. Third-party Manufacturing - Manufacturing of products by third party vendors is
quite common. Benefits associated with third party manufacturing include (1) flexibility in
production and inventory planning; (2) flexibility in controlling labor costs; and (3) logistics -
sometimes its essential to get certain products manufactured near the market.

B. Marketing and Distribution
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Marketing function is sacrosanct in case of FMCG companies. Major features of the
marketing function include the following: -
1. High Initial Launch Cost - New products require a large front-ended investment in
product development, market research, test marketing and launch. Creating awareness and
develop franchise for a new brand requires enormous initial expenditure on launch
advertisements, free samples and product promotions. Launch costs are as high as 50-100%
of revenue in the first year. For established brands, advertisement expenditure varies from 5 -
12% depending on the categories.
2. Limited Mass Media Options - The challenge associated with the launch and/or
brand-building initiatives is that few no mass media options. TV reaches 67% of urban
consumers and 35% of rural consumers. Alternatives like wall paintings, theatres, video
vehicles, special packaging and consumers promotions become an expensive but required
activity associated with a successful FMCG.
3. Huge Distribution Network - India is home to six million retail outlets, including 2
million in 5,160 towns and four million in 627,000 villages. Super markets virtually do not
exist in India. This makes logistics particularly for new players extremely difficult. It also
makes new product launches difficult since retailers are reluctant to allocate resources and
time to slow moving products. Critical factors for success are the ability to build, develop,
and maintain a robust distribution network.
C. Competition
Significant Presence of Unorganized Sector - Factors that enable small,
unorganized players with local presence to flourish include the following:
1. Basic technology for most products is fairly simple and easily available.
2. The small-scale sector in India enjoys exemption/ lower rates of excise duty, sales
tax etc. This makes them more price competitive vis--vis the organized sector.
3. A highly scattered market and poor transport infrastructure limits the ability of
MNCs and national players to reach out to remote rural areas and small towns.
4. Low brand awareness enables local players to market their spurious look-alike
brands.
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5. Lower overheads due to limited geography, family management, focused product
lines and minimal expenditure on marketing.
A general assessment of this would lead to the conclusion that FMCG is not a Structurally
Attractive Industry to Enter.
Entry barriers are high due the nightmare logistics associated with distributing a FMCG and
the limited mass media options available to build a brand. Likewise, the intensity of
competition from branded and unbranded goods and the power of retailers make the FMCG a
structurally unattractive industry in which to enter and difficult industry in which to remain a
competitive player
SWOT ANALYSIS
Strengths:
Low operational costs
Presence of established distribution networks in both urban and rural Areas
Presence of well-known brands in FMCG sector
Weaknesses:
Lower scope of investing in technology and achieving economies of scale,
especially in small sectors
Low exports levels
"Me-too products, which illegally mimic the labels of the established brands.
These products narrow the scope of FMCG products in rural and semi-urban
market.

Opportunities:
Untapped rural market
Rising income levels, i.e. increase in purchasing power of consumerss
Large domestic market- a population of over one billion.
Export potential
High consumers goods spending

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Threats:
Removal of import restrictions resulting in replacing of domestic brands
Slowdown in rural demand
Tax and regulatory structure

GROWTH PROSPECT

Large Market
India has a population of more than 1.150 Billions which is just behind China. According to
the estimates, by 2030 India population will be around 1.450Billion and will surpass China to
become the World largest in terms of population. FMCG Industry which is directly related to
the population is expected to maintain a robust growth rate.

Spending Pattern
An increase is spending pattern has been witnessed in Indian FMCG market. There is an
upward trend in urban as well as rural market and also an increase in spending in organized
retail sector. An increase in disposable income, of household mainly because of in-crease in
nuclear family where both the husband and wife are earning, has leads to growth rate in
FMCG goods.

Changing Profile and Mind Set of Consumers
People are becoming conscious about health and hygienic. There is a change in the mind set
of the Consumers and now looking at Money for Value rather than Value for Money. We
have seen willingness in consumers to move to evolved products/ brands, because of
changing lifestyles, rising disposable income etc. Consumers are switching from economy to
premium product even we have witnessed a sharp increase in the sales of packaged water and
water purifier. Findings according to a recent survey by A. C. Nielsen shows about 71 percent
of Indian take notice of packaged goods labels containing nutritional information compared
to two years ago which was only 59 per cent.

MARKET OPPORTUNITIES
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Vast Rural Market
Rural India accounts for more than 700 Million consumers, or ~70 per cent of the Indian
population and accounts for ~50 per cent of the total FMCG market. The working rural
population is approximately 400 Millions. And an average citizen in rural India has less than
half of the purchasing power as compare to his urban counterpart. Still there is an untapped
market and most of the FMCG Companies are taking different steps to capture rural market
share. The market for FMCG products in rural India is estimated ~ 52 per cent and is
projected to touch ~ 60 per cent within a year. Hindustan Unilever Ltd is the largest player in
the industry and has the widest market coverage.

Export - Leveraging the Cost Advantage
Cheap labour and quality product & services have helped India to represent as a cost ad-
vantage over other Countries. Even the Government has offered zero import duty on capital
goods and raw material for 100% export oriented units. Multi National Companies out-source
its product requirements from its Indian company to have a cost advantage. India is the
largest producer of livestock, milk, sugarcane, coconut, spices and cashew apart from being
the second largest producer of rice, wheat, fruits & vegetables. It adds a cost advantage as
well as easily available raw materials.

SECTORAL OPPORTUNITIES
Major Key Sectoral opportunities for Indian FMCG Sector are mentioned below:

Dairy Based Products
India is the largest milk producer in the world, yet only around 15 per cent of the milk is
processed. The organized liquid milk business is in its infancy and also has large long-term
growth potential. Even investment opportunities exist in value-added products like desserts,
puddings etc.

Packaged Food
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Only about 10-12 per cent of output is processed and consumed in packaged form, thus
highlighting the huge potential for expansion of this industry.

Oral Care
The oral care industry, especially toothpastes, remains under penetrated in India with
penetration rates around 50 per cent. With rise in per capita incomes and awareness of oral
hygiene, the growth potential is huge. Lower price and smaller packs are also likely to drive
potential up trading.

Beverages
Indian tea market is dominated by unorganized players. More than 50% of the market share is
capture by unorganized players highlighting high potential for organized players.

COMPANY PROSPECTS

Hindustan Unilever Limited
Chairman - Harish Manwani
M.D & CEO - Nitin Paranjpe
Brands - Rin, Surfexel, Sunsilk, Ponds, Bru, Vim, Close up, Dove, Lifeboy, Hamaam etc.

Unilever is lowering its expenditure on packaging across its portfolio of food brands as part
of a wider cost-cutting drive. HUL has pared down the colour palette used for print-ing across
many products. The system has been used to reduce printed packaging costs for Unilevers
products. It is also eco-friendly because it reduces waste in the printing process. HUL is
taking different steps to reduce the cost and increase the margin.

Hindustan Unilevers product - Pureit (a water purifier) has received the UNESCO Water
Digest Water Award 2008-2009 in the category of best domestic non-electric water purifier.
Pureit received the award for outstanding contribution in the field of water in India. The
product is available across 21 Indian states and has reached more than 1 million homes in
India giving them access to microbiologically safe drinking water. Pureits performance has
been tested by leading international & national medical, scientific & public health institutions
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and meets the germ-kill criteria of the Environmental Protection Agency, the drinking water
regulatory agency in the USA.

Procter & Gamble Hygiene & Health Care Limited (P&G)
CEO& Chairman Bob McDonald
Brands Ariel, Tide, Pantene, Head& Shoulders, Pampers, Wella etc.
The Company has 21 product categories out of which only 8 product have presence in India.
The company is planning to launch the rest 13 product in India. The company expects to see a
growth in other categories.
The company has an aggressive plan to set up 20 new factories across the World out of which
19 is expected to come in emerging markets and most of them would be seen in Brazil,
Russia, India, and China (BRIC) nations.
Whisper which is one of the companys power brands has recorded 50 per cent market share
in urban India.

Godrej Consumers Products Limited (Godrej)
Chairman Adi Godrej
Brands - Cinthol, Expert, Snuggy, Fairglow, etc.
The Board of Directors of Godrej Consumers Products Limited (GCPL) has approved the
acquisition of 50 per cent stake of its joint venture partner SCA Hygiene Products stake in
Godrej SCA Hygiene Limited. After the transaction, the Joint Venture which owns the
Snuggy brand of baby diapers will become a 100 per cent subsidiary of GCPL.
Godrej Consumers Products Limited has acquired 100 per cent stake in the Kinky Group
Limited, South Africa. Kinky is among one of the largest brand into hair segment with
product portfolio.

Nirma
Chairman: KARSANBHAI PATEL
Brands: Nirma Detergent Soap, Detergent Powder, Dish Bar, Bathing Soap, Salt

Nirma is a customer-focused company committed to consistently offer better quality products
and services that maximise value to the customer. Nirma is a phenomenon and synonymous
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with Value for Money. The brand transcends the specific dynamic of any particular product
category, which is best captured in its above mission statement - a statement of sustained
innovation, an unceasing effort to deliver better value to consumers, through better product
quality.

F

MC

SECTOR
1.1 COMPANY PROFILE

HISTORY OF THE COMPANY:
Moving ahead in the highly competitive FMCG industry is a daunting task. With MNCs with
their multi-media advertising blitzkrieg on one hand & small scale manufactures on the other,
a new entrant has it real tough. However, Power soap entered the Indian market in the 70s &
quickly grabbed a major chunk of the business. Thanks to the motto of producing quality
products at reasonable price, it has become a beloved household name in Tamilnadu, Kerala,
Karnataka, and Andhra Pradesh.

SPREADING OUR WINGS:
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Initially, the company produced detergent bars which became quite popular. After R. Krishna
Nadars death, the company came under the leadership of his son K.Dhanapal who took it to
newer heights and the company expanded. In 1998, detergent powder was introduced and this
was an extremely successful venture too. Three more manufacturing units Power Soaps
Limited at Puducherry, Abirami chemicals Puducherry and Praveen chem. Industry at
Karaikal were added to meet the increasing demand for Power products. Today the company
has ventured into the personal care industry too, with hair care products like Nature Power
range of shampoos and skin care products like the Nature Power range of beauty soaps and
some other products like Clora Toothpaste, Laa Talc and Laa Fair Fairness cream.

Aim / Vision / Mission:
The Gold Company which produces the range of Power products had humble beginnings. It
began with a single unit at Kodai Road, Dindigul Dist, and Tamilnadu.
It was founded by Krishna Nadar who had a vision of producing a range of affordable
detergent products without compromising on quality. His business was built on the strong
foundation of ethics and building enduring customer relationships. He had immense
foresight that with the rapidly changing socio-cultural conditions and economy the market
for hygiene and personal care products would grow. Nature has been a great source of
inspiration and fresh fragrances like roses have been used in Power products.

QUALITY PROCESS/ POLICY:
Power Soaps Limited has been certified with ISO 9001: 2000 by the International
Certification Services for both manufacturing and supplying of detergent cakes, Powders,
Toilet soaps and shampoos.

MANUFACTURING:
Power Soaps has world class manufacturing facilities located at Sembiapalayam.
Gummudipoondi, Periyapalayan, Silvassa and Karaikal. The entire production cycle from intake
of raw, processing, manufacturing, quality checks and rollout of the product is carried out
seamlessly.

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INFRASTRUCUTRE:
Power Soaps has always stayed at the forefront of technology, innovation and quality built on
a backbone of a strong infrastructure. State-of-art technology and equipment are the norm at
every plant. Quality processes and the Best Practices ensure that what reaches each customer
is world class quality at an affordable cost We have our own manufacturing plants at
Sembiapalayam. Gummudipoondi, Periyapalayan, Silvassa and Karaikal. This allows us to
control the quality and maintain the consistency of products. Our plants are manned by
dedicated and efficient technical personnel with domain expertise who keep operations
moving smoothly.

RESEARCH AND DEVELOPMENT:
R&D is an ongoing initiative and we have a full-fledged centre. A team works consistently to
innovate and add value to the product line. Our products are driven by innovation and
technology and it's this trait that endears us to our customers and helps us deliver products
that are a cut above the rest.

Group companies: Power soft drink Pvt Ltd., formerly Elajkikal soft drinks Chennai Pvt
Ltd., is situated at Padappai, 14kms from Tambaram in Tamilnadu. The company was formed
under the guidance of experienced personnels and the Primary aim of the company is to be
synonymous with quality. Dice a refreshing mango drink is a product of Power Soft drinks.
Made from pure mango pulp this drink has the goodness of mango in every sip. Now
available in 300ml packs and in pet bottles. Apart from fruit juices, the company has
extended its range to include soft drinks and aerated water. It has state-of-technology for
manufacturing and packaging. The brand 2day is gaining popularity and will soon
becoming a household name for soft drinks. 2day comes in three different flavours in Cola,
Lime, and Orange. Priced for the mid market, 2day is truly a value for money drink.

Hello Chennai Water Pvt. Ltd., a fast growing brand of mineral water trusted by
WHO (World Health Organization) and is certified by the ISI. Hello has a state of-the- art
plant at Chennai where Hello Aqua Mineral is hygienically processed through 5unique
stages. The treated water is scrutinized for quality at the in-built hi- tech microbiological lab.
Once the quality tests are passed, the water is passed; the water is packed in polycarbonate
bottles- the material used to manufacture feeding bottles, and sealed with a tamper-proof seal.
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Besides, these sturdy bottles are shatterproof and spill-proof. Hello offers packaged water in
convenient and sleek options of 20 lts and25 lts, which can be fitted to a transi-jar besides
stand-alone hot and cold dispenser units.

RKN AQUA product manufactures Nature Power drinking water. Move on to a
healthier lifestyle! Consumption of impure, unsafe water is the pivotal cause of some of the
worlds severs diseases. Dont put your familys health at stake by going for just any brand of
drinking water. Show your family you care- choose refreshingly safe Nature Power drinking
water, sourced from natural underground reservoirs. Safe because it goes through a
sophisticated 5-stage purifier process. Safe.because it is trusted and certified by the ISI.
Purity, hygine and health at affordable prices!

NETWORK This enables them to deliver product quickly and at competitive rate at any
part of India. Power soap Ltd., has manufacturing units (Puducherry, Karaikal, Silvasa,
Gummudipoondi) and marketing units (Mumbai, Bangalore, Hyderabad, Palakad, Nagore,
Gujarat, Andhra Pradesh). N&D Communication Chennai, Vinodam AD Erode
advertisement agency. 300 Distributors in total Tamilnadu.

PROFILE OF THE ORGANISATION

Name : Power Soaps Limited
Founder : Mr. Krishna Nadar
Chief Executive Officer : Mr. K.Dhanapal
General Manager : Mr.Sanjay Madan
Registered Office : 62 B, North Bogh Road, T Nagar, Chennai
Owning Company : Power Soaps Ltd, Puducherry
Company Category : Private Limited
Major Market : Indian subcontinent, East Asia, Middle East and
South East Asia
Website : www.powersoap.com
Telephone Number : 0413-2665226
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Bankers : TMB, IOB, Axis, HDFC.

Products of the company :Personal care: Skin care, Hair care.
Home care: Detergent cake& powder, dish bar.

Brands: Nature power beauty soap, Papaya aura beauty, Laa talc, Nature power shampoo,
Gio dish bar, Hi power, Triple power, Active power, Power jumbo, Tyko.

INTERNAL ORGANIZATION STRUCTURE:
The following is internal organization chart of Power Soaps:

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1.3THEORETICAL BACKGROUND

MARKET PENETRATION

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Barron's Marketing Dictionary:-
Depth of sales of a particular product in a given market. The deeper the penetration, the
higher the volume of product sales. In order to expand the sales of current products in
markets where their products are already being sold, marketers utilize market penetration
strategies such as cutting prices, increasing advertising, obtaining better store or shelf
positions for their products, or innovative distribution tactics.
Investopedia explains Market Penetration:-
A measure of the amount of sales or adoption of a product or service compared to the total
theoretical market for that product or service. The amount of sales or adoption can be an
individual companys sale or industry while the theoretical market can be the total population
or an estimate of total potential consumers for the product. For example, if there are 300
million people in a country and 65 million of those people have cell phones then the market
penetration of cell phones would be approximately 22%. This would mean in theory there are
still 235 million more potential customers for cell phones, which may be a good sign of
growth for cell phone makers. In general, the older the offering or industry, the greater the
market penetration.
Wikipedia on Answers.com:-
Market penetration is one of the four growth strategies of the Product-Market Growth Matrix
as defined by Ansoff. Market penetration occurs when a company enters/penetrates a market
in which current products already exist. The best way to achieve this is by gaining
competitors' customers (part of their market share). Other ways include attracting non-users
of your product or convincing current clients to use more of your product/service (by
advertising etc.).
Ansoff developed the Product-Market Growth Matrix to help firms recognize if there was
any advantage of entering a market. The other three growth strategies in the Product-Market
Growth Matrix are:
Product development (existing markets, new products)
Market development (new markets, existing products)
Diversification (new markets, new products)
"Penetration is a measure of brand or category popularity. It is defined as the number of
people who buy a specific brand or a category of goods at least once in a given period,
divided by the size of the relevant market population."
Advantages of market penetration
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Market penetration strategy is the preferred route to growth for many businesses because it
appears safe. Focus is on selling more of the existing products to:
Existing customers
Customers similar to your existing customers who are buying from your
competitors
Customers similar to your existing customers who should be buying the product
because they have a clear need but arent doing so.
The emphasis is on increasing market share through more marketing promotions, more
effective marketing and by strengthening the offer by creating more customer value.
However, an organization should only pursue a market penetration growth strategy if at least
one of the following conditions exists:
Current market is not fully saturated
Market share of your competitors is decreasing while the industry growth rate is
increasing
Existing buyers have the potential to purchase the same products and services in
more quantity
Economies of scale provide a competitive edge
Disadvantages of market penetration
Market penetration strategy uses low prices to generate demand for a product and increase
market share. As demand for a product rises, the company in turn saves on production costs
per unit by producing a greater volume of the product. Market penetration strategy doesn't
work for all products, and market leaders frequently use other strategies.
Unmet Production Costs :If products are expensive to create, attempting to have the
lowest prices may not lead to a significant profit. Smaller companies in particular often have
trouble producing enough to adequately lower the production cost per volume, especially
when competing with large companies. In this situation, a company must promote its product
as a more upscale item. Attention to packaging and image, as part of a strong marketing
campaign, can thus pay off more than low prices.
Missed Opportunities: A company that produces a luxury product misses opportunities
if it markets the item as a cheap product. Consumers who desire luxury items would avoid the
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product. With a high demand for "indulgent" products, a company could miss out
substantially on sales. Furthermore, if a company keeps prices low for a time and then raises
them, customers will probably go elsewhere.
Poor Company Image: Similarly, if a company has other product lines that sell luxury
products, it may want to avoid the market penetration strategy. Using the market penetration
strategy with one product may hurt sales in the other product lines. If the cheaper product
becomes a staple household item throughout a broad customer base, customers will probably
become more familiar with the cheaper product than the luxury ones. The company's
reputation as a luxury producer could then suffer.
Lowering Industry Prices: Market penetration strategy can cause prices to lower
throughout the entire industry. Competitors often try to match prices, particularly if their
products are similar. The company that initiated the market penetration strategy must further
lower its prices to outmatch the competition. Soon all competitors might be selling products
at an extremely low price that barely makes a profit.
Lack of Results: In other cases, market penetration strategy has little or no effect. If one
company enters an industry in which prices are already low, setting the lowest price is usually
unrealistic. When customers already trust a competitor with low prices, a new company
should focus on carving out a niche for itself instead of beating that company's prices.
Saturated Market: Market penetration strategy can work with products people must
replace frequently, such as foods and hygiene products. With other products, the market
would quickly become saturated. People don't need unlimited supplies of clothing, furniture
or electronics. Thus, the market penetration strategy is unsustainable for these products and
others that don't need to be replaced frequently.

MARKETING STRATEGIES
Marketing managers can also apply the following strategies which will provide an optimal
support of the organizations external environment;
Strategies applicable to each stage in the product life cycle.
Strategies applicable to specific economic conditions, and
24

Strategies applicable to different competitive positions.
Life cycle strategies
The product life cycle concept can be used by marketing managers to choose an appropriate
strategy.
Introduction stage
This stage in the life of a product or service is usually characterized by;
Low or negative profits;
Only a few competitors being actively involved in the market;
Prices charged tending to be high, and
The typical customer base consisting of buyers usually from higher income groups.
According to Kotler, four strategies can be pursued by the marketing manager;
The rapid skimming strategy
The slow skimming strategy
The rapid-penetration strategy
The slow-penetration strategy
The rapid-skimming strategy requires that a product to be sold at higher prices. Expenditure
on advertising is high if the following conditions exist;
The market is unaware of the product or service.
The market is able to pay the price.
The establishment of brand preference is desirable.
The slow skimming strategy is implemented when a product is sold at higher prices, but
expenditure on advertising is lower. The following conditions usually exist;
The market is of a limited size.
The market is aware of the product.
The market is able to pay the price.
There is no likely competition.
The rapid penetration strategy is accompanied by low selling prices and high expenditure on
promoting the product. The following conditions will prevail if such a strategy is followed;
Manufacturing costs will be characterized by learning curve experiences and will
therefore tend to decline.
The market is not aware of the product's existence.
The market is price sensitive.
A large market is anticipated.
25

Strong competition is likely.
Your success in rapid market penetration will depend in large part on your commitment to the
project, both strategically and financially. Speed to market depends on priority, planning and
human resources. Many companies choose to outsource their sales and marketing to
professional companies. This strategy allows them to shorten the time to market and quickly
overcome the problem of limited resources and experience.
It is one of the marketing strategies that company may adopt in the context of introducing a
new product or brand in its target market. In this strategy the company introduces the new
product keeping relatively low price with high promotion in order to penetrate the target
market as fast as possible. The objective is market share and profit maximization in the long
run. This strategy works effectively in certain market conditions. These include: (1) Target
market is highly competitive, (2) Consumers are not aware of the product, and (3) Consumers
are price sensitive.
The slow penetration strategy is identified by lower prices and low expenditure on promoting
the product or service. The rationale behind this strategy is that the market will purchase a
product in large volumes.
Conditions conducive to such a strategic approach are;
There is a threat of competition.
The market favors lower prices.
Customers are aware of the product.
The market is large.

Example of Market penetration:
There are so many products do this penetration strategy often for let the market and the
customers know about the existence of their products. If I am going to pick one I will pick
lifebuoy shop. In Bangladesh market Lifebuoy shop introduced by the unilever. Lifebuoy
shop is one of the oldest shops in the market. Throughout the life cycle of lifebuoy shop
changes so much. Sometimes it came with new color sometimes with new size and flavor but
the focus was always the same Market penetration. Fast Moving Consumer Goods (FMCG)
like lifebuoy shop has to be Some requirements for making an impression in the market for
penetrating: 1) Strong distribution channel 2) Minimum profit margin3) Simple marketing
message4) Lesser-priced packs to increase affordability5) Packaging in smaller units and
localized design that attracts consumers6) Convenience of storage while use7) Thorough
26

knowledge of the village psyche In brief the brief, the strategy revolves around what attracts
consumers to a product.
How they penetrate? Lifebuoy use more or less all the marketing tools, such as
Promotion
Pricing
Distribution
Process

Tactics under the marketing penetration strategy:

They use sales promotion so effectively that is one of the strong point of life boy
shop. Both the push and pull strategy use by them.
Extensive distribution is very much there because of segmentation and the target
market of the product.
Price is very much got able by the target market consumers.
There message to the target consumer is very clear and so effective. Anyone can
understand the message from the lifebuoy. Perfect use of media like TV, radio and
paper is making easy to communicate with the consumers. Lifebuoy is always in the
front line shop for the last three decade in Bangladesh. There strong distribution
channel and the proper segmentation help to get and sustain in the market as a
Lifebuoy. Still now lifebuoy is the name which reminds the germless bath very
time. Affective penetration and the implementation is the power of marketing
strategies which Lifebuoy doing since 1895.

1.4 PROBLEM IDENTIFICATION

The sales turnover of the power soap seems to be stable for the past 3 years. This shows that
there is no growth in the power brand sales turnover. Hence this study is intended to find out
27

the percentage of market penetration for power brand products which are existing now in
Puducherry. Thats why the title of the project is the study on market penetration of Power
soap brand in Puducherry region.

1.5 NEED FOR THE STUDY
The study was mainly undertaken to identify the penetration level of power brand
among the consumers.
The study helps to find out the Power brand advertisement effectiveness among
the consumers in Puducherry.
The study will help the organization to know the consumer loyalty towards Power
brand.
The study helps the organization to know the reason for decrease in the number of
consumers of Power brand.

1.6 OBJECTIVES OF THE STUDY

To find out the market penetration of power soap in Puducherry.
To identify the awareness & effectiveness of advertisement about the power brand.
To assess the customer purchase decision behavior on fast moving consumers goods.
To find the brand loyalty of the customers towards power brand.
To study the level of customer satisfaction in power brand.

1.7 FORMULATION OF HYPOTHESIS
1)
Null hypothesis:
28

Ho = There is no significant association between consumers income and consumers
most preferable brand.
H1 =There is a significant association between consumers income and consumers
2)
Null hypothesis:
Ho = There is no significant association between consumers satisfaction level and
price.
H1 =There is a significant association between consumers satisfaction level and price.





1.9 CHAPTERIZATION

CHAPTER I
29

This chapter deals with the research background followed by the general scenario of
industry, company profile, theoretical background, problem identification, need of the study,
objectives of the study, formulation of hypothesis and scope of the study.

CAHPTER II
This chapter deals with the review of literature, which contains the articles and
journals related to perception of consumers.

CHAPTER- III
This chapter deals with research methodology containing research type, research
design, sampling type and explanation about the statistical tool used for analyzing the data.

CHAPTER- IV
This chapter deals with the data analysis and interpretation using various tools such as
chi square analysis, correspondence analysis, confirmative factor analysis, TOPSIS, cluster
analysis.

CHAPETR-V
This chapter reveals the findings of the study, suggestion and recommendation to the
organization and followed by the conclusion of the study.

CHAPTER II
LITERATURE SURVEY

30

2.1 REVIEW OF LITERATURE

Ehrenberg, Uncles& Goodhardt (2008). Brands that have higher market share also
have a higher penetration of the available market than those brands with lower market share.
Other measures of brand performance (e.g. purchase frequency, share of category
requirements) also tend to vary in line with market share but not to the same degree.

Finlay (2006) suggested that Market Penetration fits strategically for a firm when current
markets are not saturated for the types of offer the firm is making and its present customers
can be induced to buy more. And typically, when a company wants to attack the market share
of the competitors, they will undertake market penetration as a way of increasing their own
share in the market.

Raj Arora (2004) focused on yet another important strategy to increase sales to existing
customers - Price Bundling. The study points out that the intent of bundle pricing is to
increase sales by offering a discount when a pre-specified bundle of items is purchased at the
same time. Usually, the additional items in the bundle are those that are complementary to the
main product. The assumption is that the bundle priced items offer more value and are
therefore more attractive to the buyer. The seller makes the buyer aware that the buyer is
getting a bargain in the bundle because if the items are purchased separately, the aggregate
price far exceeds the bundle price (Yadav and Monroe, 2003). While price bundling is
frequently used by marketers, its effectiveness needs more research especially when used
with other marketing variables.

Basu Purba (2004) suggested that the lifestyle of rural consumers is changing. Rural
Indian market and the marketing strategy have become the latest marketing buzzword for
most of the FMCG majors. She added the strategies of different FMCG companies for
capturing rural market like Titans Sonata watches, Coco Colas 200mlbottle, different
strategies of HUL and Marico etc. She takes into consideration the study of National Council
for Applied Economic Research (NCAER).According to the NCAER projections, the number
of middle and high-income households in rural area is expected to grow from 140 million to
190 million by 2007.In urban India, the same is expected to grow from 65 million to 79
million. Thus, the absolute size of rural India is expected to be double that of urban India.
31

Tognatta Pradeep (2003), suggested that, the economic growth in India's agricultural
sector in last year was over 10%, compared with 8.5%in the industrial sector. This implies a
huge market potentiality for the marketer to meet up increasing demand. Factors such as
village psyche, strong distribution network and market awareness are few prerequisites for
making a dent in the rural markets. The model is of the stolid Anglo-Dutch conglomerate
Unilever Group, which has enjoyed a century-long presence in India through its subsidiary
Hindustan Lever Ltd. It was Hindustan Lever that several years ago popularized the idea of
selling its products in tiny packages. Its sachets of detergent and shampoo are in great
demand in Indian villages. Britannia with its low priced Tiger brand biscuits has become
some of the success story in rural marketing.

Murphy Ruth, Bruce Margaret (2003) stated that internet can be used to sell more
existing Products into existing markets. This can be achieved by using internet for increasing
awareness of the firm. Bloch et al. (1996) proposed that e-commerce offers cost advantages
to firms via less expensive product promotions. They also advocate that e-commerce can
enable a company to implement customer focus strategies through better customer
relationships.
Baldinger, Blair & Echambadi (2002) recognize that growth of low share brands is
predominantly associated with penetration increases, whilst growth of higher share brands
tends to be more associated with loyalty increase. The arguments from both sides are
convincing and empirically well substantiated. What is lacking from these arguments,
however, is a comprehensive understanding of the relationship between penetration and
loyalty under a broad range of conditions. This technical note presents a procedure for
describing a theoretical relationship between penetration and loyalty measures for brands
within a product category. It makes use of well established, empirically validated models of
market behavior.
TSAI, TSAN-WEN, (JUNE 2001) In comparison to the findings in China, house
buyers in Hong Kong had passive attitudes but nevertheless were very speculative in house
purchasing. The results showed that younger, female, and inexperienced house buyers in
Hong Kong regarded the accessibility to jobs and leisure activities as being more important
than those who were older, male, and experienced house buyers. Similar to the findings in
32

Hong Kong, house buyers in Taiwan demonstrated pessimistic view regarding buying a
house. The findings evidence that younger, single, and lower income house buyers perceived
the feeling of warmth and joy and the loving feeling produced by the house as more critical in
house purchasing decisions than did older, married, and higher income house buyers in
Taiwan.

Dekimpe et al., (1997). A base of loyal customers will be advantageous for an
organisation as it reduces the marketing cost of doing business. In addition, loyalty can be
capitalised on through strategies such as brand extension and market penetration. Finally a
large number of loyal customers is an asset for a brand, and has been identified as major
determinant of brand equity.

Oster (1994) contended that the size of the market share held by the firm as well as the
size of the major firms in the market is important considerations. He suggests that firms with
relatively small market shares can increase their market share many times over without
adversely affecting the overall market share of a large market leader.

A study by Philp Robert, Haynes Paula, Helms Marilyn (1992) Stated that
growth through a market penetration strategy, reaching and influencing customers already
served, has proved to be a less profitable course of action than expected. This strategy failed
to achieve the projected growth not because of the basic plan itself, but rather due to its
improper implementation. Financial service providers have typically viewed their primary
customer base as males between30 and 50 years old (Bartos, 1982). These men are seen as
the primary wage earners and decision makers for financial planning in their households.
Hence, this segment has been considered golden geese of the financial market. While some
growth was achieved through the introduction of new financial products and services, the
financial services needs of women and of consumers over 50 years of age were blurred for
the financial service providers.

Porter's (1980) segmentation analysis has plenty of value to describe competition amongst
participants. This approach establishes how and by which means positions of dominance are
33

achieved. Studies based on this methodology have been applied to banking to assess the
Competitive process.

Jeuland, Bass and Wright (1980) originally conceived the NBD part of their model
with an Erlang interpurchase timing process. This reduces to a Gamma - Poisson (or NBD) as
a special case. Both the NBD/BBD and the Dirichlet are empirically well substantiated
models of purchase incidence and brand choice that allow the analyst to calculate a range of
brand performance measures for brands within a category.

MCNUTT, GEORGE (JUNE1976) says, it does not make good sense to spend time
on customers who cannot possibly become profitable ones. Thus, its a good idea to make a
survey of customer records to determine what characteristics mark the difference between
high and low volume customers. Once the characteristics of the good customers have been
determined, the next step to be pursued is the buying/ influencing factor in these markets.
Categories are listed into which buying/ influencing factor fall. They include- 1. Authorizers,
2.Planner/ specifiers, 3.Installers, 4.Financer and Bankers and 5.Key operational personnel.
In seeking this sort of information, the customer or prospects can be asked directly who in his
organization has purchasing authority. Titles and functions contained in business paper can
be checked, and magazines often offer market studies of many products, including the
buying/ influencing factors.

Double jeopardy is an empirical result (McPhee 1963). Smaller brands have fewer
buyers who purchase less often. The brand with a smaller market share loses twice. It has a
smaller penetration and a smaller purchase frequency when compared to brands with bigger
market share. Double jeopardy is a basic statistical effect which can be expected to exist in
most product categories.

CHAPTER III
METHODOLOGY
34

3.1 RESEARCH MEANING:
Research is an art of scientific investigation. According to Redman & Mory defines research
as a Systematic effort to gain Knowledge .

RESEARCH DESIGN:
According to Kerlinger, Research Design is the plan, structure and strategy of
investigation conceived so as to obtain answers to research questions and to
control variance.
The research design undertaken for the study is Descriptive one. A study, which wants to
portray the characteristics of a group or individuals or situation, is known as Descriptive
study. It is mostly qualitative in nature.
3.2 SOURCES OF DATA:
3.2.1 PRIMARY DATA:
Primary data are collected afresh and for the first time. In this study we have used
questionnaire as an instrument to collect the response of the respondents. A questionnaire was
constructed by using the following types of questions.
Close ended questions.
Multiple choice questions.
Dichotomous questions.
Ordinal question.
Interval question.

3.2.2 SECONDARY DATA:
Secondary data is collected from internet, registers, records, journals, articles, magazines and
annual reports of the organization.
3.3 POPULATION:
The population or Universe is a definite design for obtaining a sample from the sampling
frame. The total population of consumers is unknown.
3.4 SAMPLE SIZE:
It refers to the number of items to be selected from the population to constitute a sample.
Nearly 100 consumers are taken as sample for the study.
35

3.5 SAMPLING METHOD:
In this study convenience sampling techniques was adopted. It is a non probability sampling
method in which the interviewers will decide the choice of sampling based on their
convenience.
3.6 LIMITATION OF THE STUDY:
The study is based upon small population size of 100 samples.
To target and create correct representation of whole area of interest for study during
this short span of time is another limitation.
The statistical tools used for the study have their own limitations.
The responses given by the selected respondents may be subjected to bias.
The research may not be a total reflection of penetration of power brand as the
number of consumers is limited.
3.7 TOOLS FOR ANALYSIS:
Percentage Analysis
Chi-square test
Correspondence Analysis
Cluster Analysis
Confirmatory Factor Analysis
TOPSIS

3.7.1 PERCENTAGE METHOD:
In this project Percentage method test was used. The percentage method is used to know the
accurate percentages of the data we took, it is easy to graph out through the percentages. The
following are the formula:

No. of respondent
Percentage of Respondent= 100
Total no. of Respondent
From the above formula, we can get percentages of the data given by the respondents.

3.7.2 CHI-SQUARE TEST:
36

The chi-square is one of the most widely used non-parametric tests in statistical work. The
Chi-Square was first used by Karl Pearson in the year 1900.
It is defined as

Where,
O - Observed frequency
E - Expected frequency
Chi-square test is applicable to a very large number of problems in practice. With the help of
this test we can find out whether two or more attributes are associated or not.
This is non-parametric test used for testing hypothesis. Chi-Square test aims at determining
whether there is any significant difference exits among the group of data of whether the
difference is due to sampling. Chi-Square test depends upon the degree of freedom involved.

3.7.3 CORESSPONDANCE ANALYSIS:
It gives pictorial representation of association between different categories of two variables.
.
3.7.4 CLUSTER ANALYSIS:
Cluster analysis is an exploratory data analysis tool for solving classification problems. Its
object is to sort cases (people, things, events, etc) into groups, or clusters, so that the degree
of association is strong between members of the same cluster and weak between members of
different clusters. Each cluster thus describes, in terms of the data collected, the class to
which its members belong; and this description may be abstracted through use from the
particular to the general class or type.Cluster analysis is thus a tool of discovery. It may
reveal associations and structure in data which, though not previously evident, nevertheless
are sensible and useful once found.

3.7.5 CONFIRMATORY FACTOR ANALYSIS:
Confirmatory Factor Analysis (CFA) is the next step after exploratory factor analysis to
determine the factor structure of your dataset. In the EFA we explore the factor structure
(how the variables relate and group based on inter-variable correlations); in the CFA we
confirm the factor structure we extracted in the EFA.

= [O-E]
2
/E

37

Model fit refers to how well our proposed model (in this case, the model of the factor
structure) accounts for the correlations between variables in the dataset. If we are accounting
for all the major correlations inherent in the dataset (with regards to the variables in our
model), then we will have good fit; if not, then there is a significant "discrepancy" between
the correlations proposed and the correlations observed, and thus we have poor model fit. Our
proposed model does not "fit" the observed or "estimated" model (i.e., the correlations in the
dataset).
Metrics
There are specific measures that can be calculated to determine goodness of fit. The metrics
that ought to be reported are listed below, along with their acceptable thresholds. Goodness of
fit is inversely related to sample size and the number of variables in the model. Thus, the
thresholds below are simply a guideline. For more contextualized thresholds, see Table

MEASURE THRESHOLD
Chi-square/df < 3 good;< 5sometime permissible
p-value for the model <.05
CFI
>. 95 great;>.90 traditional:.80sometime
permissible
t-value 2.64
GFI >.95
AGFI >.80
RMESA <.05 good;.05-.10 moderate;>.10 bad

3.7.6 TOPSIS
TOPSIS method is based on choosing the best alternative, which has the shortest distance
from the positive-ideal solution and the longest distance from the negative-ideal solution,
more in depth information was first developed by (Hwang and Yoon, 1981).
In brief TOPSIS solution method consists of the following steps:
Normalize the decision matrix
Determining the ideal and negative ideal solutions
Measuring the distance from positive and negative ideal solutions
Calculating the relative closeness to the ideal solution
38

Ranking the alternatives according to the relative to the ideal solution.
A MADM problem can be concisely expressed in a matrix format, in which columns indicate
attributes considered in a given problem; and in which rows list the competing alternatives.
Specifically, a MADM problem with
m
alternatives
m
A A ,....,
1
that are evaluated by
n

Attributes
n
C C ,....,
1
can be viewed as a geometric system with
m
points in
n
-dimensional
space. An element
ij
x
of the matrix indicates the performance rating of the
i
th alternative,
i
A
, with respect to the
j
th attribute,
j
C
, as shown in Eq. (1):

(
(
(
(
(
(
(
(
=
mn m m m
n
n
n
n
m x x x x
x x x x
x x x x
x x x x
C C C C
A
A
A
A
D
3 2 1
3 33 32 31
2 23 22 21
1 13 12 11
3 2 1
3
2
1

The terms used in the study are briefly defined as follows:

Attributes: Attributes ( ) n j C
j
... 3 , 2 , 1 , = should provide a means of evaluating the levels of
an objective. Each alternative can be characterized by a number of attributes.
Alternatives: These are synonymous with options or candidates. Alternatives
( ) m i A
i
... 3 , 2 , 1 , = are mutually exclusive of each other.
Attribute weights: Weight values ( )
j
w represent the relative importance of each attribute
to the others.

{ }. ,..., 2 , 1 / n j w W
j
=
Normalization: Normalization seeks to obtain comparable scales, which allows attribute
comparison. The vector normalization approach divides the rating of each attribute by its
norm to
The steps of TOPSIS methods can be summarized as follows:

Step 1: Normalize the decision matrix ( )
n m
ij
x X
*
= using the equation below.
39

, ,...., 2 , 1 ; ,...., 2 , 1 ,
1
2
n j m i
x
r
m
i ij
ij
ij
x
= = =
=

Where
ij
r is the normalized criterion rating?
Step 2: Calculate the weighted normalized decision matrix ( )
n m
ij
v V
*
=
, ,..., 2 , 1 ; ,..., 2 , 1 , n j m i r w v
ij j ij
= = =
Where
j
w is the relative weight of the j
th
criterion, and 1
1
=
=
n
j
j
w

Step 3: Determine the ideal and negative-ideal solutions.
( ) ( ) { }, / min , / max ,...., *
* *
1 c ij j b ij j m
j v j v v v A O O = = c c
( ) ( ) { }, / max , / min ,....,
1 c ij j b ij j m
j v j v v v A O O = =

c c
Where
b
and
c
are the sets of benefit criteria and cost criteria, respectively.

Step 4: Calculate the Euclidean distances of each alternative from the positive ideal solution
and the negative ideal solution, respectively.
( )
=
=
n
j
j ij i
v v D
1
2
* *
, , ,....., 2 , 1 m i =
( )
=
n
j
j ij i
v v D
1
2
*
, , ,....., 2 , 1 m i =

Step 5: Calculate the relative closeness of each alternative to the ideal solution. The relative
closeness of the alternative
i
A with respect to * A is defined as
,
* *
i i
i
i
D D
D
RC
+
=

. ,....., 2 , 1 m i =

Step 6: Rank the alternative according to the relative to the ideal solution. The biggest the
i
RC , the more pleasing the alternative
i
A will be. The best alternative is one with the greatest
relative closeness to the ideal solution.

where
i
RC
denotes the final performance score in TOPSIS method, the chosen alternative has
the maximum value of performance score expressed as the more prior alternatives.
40

CHAPTER IV

DATA ANALYSIS AND INTREPRETATION

Data Analysis and Interpretation is one of the most important parts in all project study. Data Analysis
means the computation of certain measures along with searching for patterns of relationship that
exist among the data groups. Analysis particularly in case of survey data involves estimating the
values of unknown parameters of the population and testing of hypothesis for drawing inference.
The Analysis of data involves the one or more of the following task:
Computation of statistics, namely mean & standard deviation.
Confirmative Factor analysis.
Testing different hypothesis.

Interpretation refers to the task of drawing inferences from the collected facts after an analytical and
experimental study. In fact, it is a search for broader meaning of research findings.

In this study, data analysis is mainly done using five important statistical tools like Chi-square,
Cluster, TOPSIS, Correspondence analysis, Confirmatory factor analysis for testing the hypothesis.
Each and every analysis of data is interpreted by drawing an inference for clear and easy
understanding to the readers.

TABLE NO. 4.1
CLASSIFICATION OF RESPONDENT BY THEIR GENDER

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Male 22 22
2 Female 78 78
41

TOTAL 100 100
SOURCE: PRIMARY DATA

INFERENCE:
From the table, it is inferred that 22% of consumers are male and 78% of the consumers are
female.

CHART NO: 4.1

TABLE NO. 4.2
CLASSIFICATION OF RESPONDENT BY THEIR AGE

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Below 20 12 12
42

2 20-30 50 50
3 30-40 25 25
4 40-50 10 10
5 Above 50 3 3
TOTAL 100 100

INFERENCE:
From the table, it is inferred that 12% of the consumers are below the age of 20 and 50% of
the consumers are from 20-30 of age and 25% of consumers are from 30-40 of age and 10%
of consumers are from 40-50 of age and 3% of consumers are from above 50 of age.
CHART NO: 4.2

TABLE NO. 4.3
43

THE CLASSIFICATION OF THE RESPONDENTS BY THEIR
MARITAL STATUS

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Married 61 61
2 Single 39 39
TOTAL 100 100

INFERENCE:
From the table, it is inferred that 61% of the consumers are married and 39% of the
consumers are single.

TABLE NO. 4.4
44

THE CLASSIFICATION OF RESPONENTS BY THEIR
EDUCATIONAL STATUS

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Illiterate 14 14
2 SSLC 23 23
3 UG 33 33
4 PG 23 23
5 Others 7 7
TOTAL 100 100

INFERENCE:
From the table, it is inferred that 14% of the consumers are Illiterate and 23% consumers are
SSLC and 33% consumers are UG and 23% of consumers are PG and 7% consumers are
other education status.

CHART NO: 4.4
45

TABLE NO. 4.5
THE CLASSIFICATION OF RESPONDENTSBY THEIR OCCUPATION

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Housewife 28 28
2 Government employee 5 5
3 Business 18 18
4 Private employee 25 25
5 Unemployed 4 4
6 Student 20 20
TOTAL 100 100

INFERENCE:
46

From the table, it is inferred that 28% of consumers are housewife and 5% of consumers are
government employee and 18% of consumers are businessman and 25% of consumers are
private employee and 4% of consumers are unemployed and 20% of consumers are student.

CHART NO: 4.5

TABLE NO. 4.6
THE CLASSIFICATION OF RESPONDENT BY THEIR MONTHLY
INCOME

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Below 10000 13 13
2 10000-20000 24 24
3 20000-30000 23 23
47

4 30000-40000 32 32
5 40000-50000 8 8
6 Above 50000 0 0
TOTAL 100 100

INFERENCE:
From the table, it is inferred that 13% of the consumers are below income 10000 and 10,000-
20,000 income of consumers are 24% and 20,000-30,0000 income of consumers are 23% and
30,000-40,000 income of consumers are 32% and above 40,000income are8%.

CHART NO: 4.6

48

TABLE NO. 4.7
THE CLASSIFICATION OF THE RESPONDENT
BY THEIR FAMILY SIZE

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 2 8 8
2 3 15 15
3 4 29 29
4 5 35 35
5 Above5 13 13
TOTAL 100 100

INFERENCE:
From the table, it is inferred that 8%of the consumers family size is 2 and 15% consumers
family size is 3 and 29%of the consumers family size is 4 and 35% of consumers family size
is 5 and 13% of consumers family size above 5.

49

TABLE NO. 4.8
TABLE EXHIBITING THE MOST PREFERABLE BRAND

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Power soap 14 14
2 HUL 51 45
3 P&G 29 32
4 Godrej 2 2
5 Nirma 4 7
6 Other 0 0
TOTAL 100 100

INFERENCE:
From the above table, it is inferred that 14% of consumers prefer power brand and 51% of
consumers prefer HUL brand and 29% of consumers prefer P&G brand and 2% of consumers
prefer Godrej brand and 4% of consumers prefer Nirma brand.

CHART NO: 4.8
50

TABLE NO. 4.9
THE FACTORS GIVEN IMPORTANCE WHILE PURCHASE OF
FMCG PRODUCT

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Brand image 18 18
2 Quality 56 56
3 Price 12 12
4 Product features 8 8
5 Advertisement 6 6
TOTAL 100 100

INFERENCE:
51

From the table, it is inferred that 18% of the consumers give importance to brand image and
56% of the consumers give to quality and 12% of the consumers to price and 8% of the
consumers to product features and 6% of the consumers to advertisement.

CHART NO: 4.9

TABLE NO. 4.10

POWER BRAND AWARNESS

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Highly aware 53 53
2 Somewhat aware 47 47
52

3 Not aware 0 0
TOTAL 100 100

INFERENCE:
From the above table, it is inferred that 53% of consumers are highly aware and 47% of
consumers are somewhat aware.

TABLE NO. 4.11

MEDIUM OF AWARNESS

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 TV advertisement 58 58
2 Friends/Family 17 17
3 Internet 2 2
4 Offers & Discount 8 8
5 Through shopkeeper 15 15
TOTAL 100 100

INFERENCE:
From the above table, it is inferred that 58% of the consumers came to know from the
medium of TV advertisement and 17% of the consumers from friends/family and 2% of the
consumers from internet and 8% of consumers from company offer & discount and 15% of
the consumers through shopkeeper.

TABLE NO. 4.12
EFFECTIVENESS OF ADVERTISEMENT

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Is understandable 49 49
2 Is believable 36 36
3 Is memorable 15 15
4 No idea 0 0
53

TOTAL 100 100

INFERENCE:
From the table, it is inferred that 49% of the consumers understand the advertisement and
36% of the consumers believe the advertisement message and 15% of the consumers feel it is
memorable.
CHART NO: 4.12

TABLE NO. 4.13

THE PRODUCT AWARENESS THROUGH ADVERTISEMENT

54

SL.NO OPTION FREQUENCY RANK
1 Power detergent soap 84 1
2 Power detergent powder 69 3
3 Power beauty soap 75 2
4 Gio dish wash 43 4
5 Laa talcum powder 33 5
6 Laa & nature power shampoo 17 6
7 All 14 7

INFERENCE:
From the table it is inferred, that under Power brand awareness
Detergent soap ranks no.1,
Power beauty soap ranks no.2,
Power detergent powder ranks no. 3,
Gio dish bar ranks no.4,
Shampoo ranks no.5,
Laa talcum powder ranks no.6,
And respondent who were aware of the entire products is ranked no.7.

TABLE NO. 4.14

TABLE DECIPITING THE POWER BRAND BUYER

55

S.NO OPTION FREQUENCY RANK
1 Detergent soap 50 1
2 Detergent powder 18 4
3 Beauty soap 35 2
4 Gio dish bar 23 3
5 Laa talcum powder 14 5
6 Laa shampoo 3 6
7 All 2 7
8 None 13

INFERENCE:
From the table it is inferred, that under Power brand which product are bought more by
respondent
Detergent soap ranks no.1,
Power beauty soap ranks no.2,
Gio dish bar ranks no.3,
Power detergent powder ranks no. 4,
Laa talcum powder ranks no.5,
Shampoo ranks no.6,
Respondent who buy entire product ranks no.7 and 13 respondent dont buy any product of
Power brand.

TABLE NO. 4.15

THE PLACE OF PURCHASE

56

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Petty shop 19
21.8
2 Retail shop 49
56.3
3 Wholesale shop 19
21.8
4 Other 0
0
TOTAL 87 100

INFERENCE:
From the above table, it is inferred that 21.8% of consumers purchase from petty shop and
56.3% of the consumers from retail shop and 21.8% of the consumers from wholesale shop.

TABLE NO. 4.16
PRICE OF POWER BRAND

57

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 High 10 11.5
2 Moderate 70 80.5
3 Low 7 8.0
TOTAL 87 100

INFERENCE:
From the table, it is inferred that 11.5% of the consumers feel product price is high and80.5%
of the consumers say moderate and 8% of the consumers say low.

CHART NO: 4.16

58

TABLE NO. 4.17
CONSUMED POWER BRAND
S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Less than 6 months 20
23.0
2 6-12months 26
29.9
3 1year 14
16.1
4 1-2year 8
9.2
5 More than 2 years 19
21.8
TOTAL 87
100.0

INFERENCE:
From the table, it is inferred that 23% of the consumers used power brand less than 6 months
and 29.9% of the consumers 6-12months and 16.1%of the consumers 1year and 9.2% of the
consumers 1-2 years and 21.8%of the consumers more than 2years.
CHART NO: 4.17
CONSUMED POWER BRAND
59

TABLE NO. 4.18
CUSTOMER LOYALTY

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 I buy power brand product than
other brand products
31
35.6
2 I will recommend others to
purchase power brand products
32
36.8
3 I have bad experience with other
brand products
8
9.2
4 I would move to other products
offering high discount
16
18.4
TOTAL 87
100.0

INFERENCE:
60

From the table, it is inferred that 35.6% of the consumers will buy power brand and 36.8% of
the consumers will recommend others and 9.2% of the consumers have bad experience with
other brand and 18.4% of the consumers will switch to other brand.

TABLE NO. 4.19
BRAND SWITCHER

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Yes 43 43
2 No 57 57
TOTAL 100 100

INFERENCE:
From the table, it is inferred that 43% of the consumers often change brand and 57% of the
consumers do not change the brand.

TABLE NO. 4.20
SWITCHING FROM WHICH BRAND

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Power to Other 24
55.8
2 Other to Power 19
44.2
TOTAL 43
100.0

INFERENCE:
From the table, it is inferred that 55.8% of the consumers switch from power to other brand
and 44.2% of the consumers from other to power brand.

61

TABLE NO. 4.21
THE REASON FOR BRAND CHANGE

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1
Price
4
9.3
2
Quality
6
14.0
3
Offers & discount
9
20.9
4
Availability
1
2.3
5
Trail for new product
22
51.2
6
Dissatisfaction of current brand
1
2.3
TOTAL 43
100.0

INFERENCE:
62

From the table, it is inferred that 9.3%of the consumers switch brand due to price and 14% of
the consumers quality and 20.9% of the consumers offer & discount and2.3% of the
consumers availability and 51.2% of the consumers trail for new product and 2.3% of the
consumers dissatisfaction of current brand.

CHART NO: 4.21

SATISFACTION FROM POWER BRAND

QUALITY
S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1
Highly Satisfied 56 63.6
2
Satisfied 10 11.4
3
Neutral 15 17.0
63

4
Dissatisfied 7 8.0
5
Highly Dissatisfied 0 0

TOTAL 88 100.0

INFERENCE:
From the table, it is inferred that63% of the consumer are highly satisfied with power brand
quality,11% of consumer are just satisfied, 17% of consumer are neither satisfied nor
dissatisfied , 8% of the consumer are dissatisfied and no consumer highly dissatisfied .

PACKAGING
S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1
2
Satisfied 29 33.0
3
Neutral 17 19.3
4
Dissatisfied 4 4.5
5

TOTAL 88 100.0
INFERENCE:
packaging,33% of consumer are just satisfied, 19% of consumer are neither satisfied nor
dissatisfied , 4.5% of the consumer are dissatisfied and no consumer highly dissatisfied .

AVAILABILITY
S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1
64

2
Satisfied 31 35.2
3
Neutral 19 21.6
4
Dissatisfied 8 9.1
5

TOTAL 88 100.0
INFERENCE:
availability ,35% of consumer are just satisfied, 21% of consumer are neither satisfied nor

FLAVOURS AND FRAGRANCE
S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1
2
Satisfied 36 40.9
3
Neutral 17 19.3
4
Dissatisfied 5 5.7
5

TOTAL 88 100.0
INFERENCE:
flavor and fragrance,40% of consumer are just satisfied, 19% of consumer are neither
satisfied nor dissatisfied , 5.7% of the consumer are dissatisfied and no consumer highly
dissatisfied .

SIZE
65

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1
2
Satisfied 32 36.4
3
Neutral 15 17.0
4
Dissatisfied 7 8.0
5

TOTAL 88 100.0
INFERENCE:
size,36% of consumer are just satisfied, 17% of consumer are neither satisfied nor dissatisfied
, 8% of the consumer are dissatisfied and no consumer highly dissatisfied .

PRICE
S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1
2
Satisfied 43 48.9
3
Neutral 12 13.6
4
Dissatisfied 10 11.4
5

TOTAL 88 100.0
INFERENCE:
price,49% of consumer are just satisfied, 13% of consumer are neither satisfied nor

66

LIFE OF SOAP
S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1
2
Satisfied 29 33.0
3
Neutral 17 19.3
4
Dissatisfied 8 9.1
5

TOTAL 88 100.0
INFERENCE:
life of soap,33% of consumer are just satisfied, 17% of consumer are neither satisfied nor

ADVERTISEMENT
S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1
2
Satisfied 42 47.7
3
Neutral 21 23.9
4
Dissatisfied 6 6.8
5

TOTAL 88 100.0
INFERENCE:
advertisement ,47% of consumer are just satisfied, 23% of consumer are neither satisfied nor

67

TABLE NO. 4.22
SUGGESTIONS TO IMPROVE POWER BRAND

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1
Effective advertisement
41 41
2
Quality
23 23
3
Offers & discount
22 22
4
Brand image
2 2
5
Add more varieties of product
12 12
TOTAL 100 100

INFERENCE:
From the table, it is inferred that 41% of the consumers suggest improving advertisement and
23% of the consumers quality and 22% of the consumers offer and discount and 2% of the
consumers brand image and 12% of consumers add more varieties of product.

CHART NO: 4.22
68

TESTING THE ASSOCIATION BETWEEN CONSUMERS
INCOME AND CONSUMERS BRAND PREFERENCE
(USING CHI-SQUARE ANALYSIS)

Null hypothesis:
Ho = There is no significant association between consumers income and consumers
H1 =There is a significant association between consumers income and consumers
69

MONTHLY INCOME

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Below 10000 13 13
2 10000-20000 24 24
3 20000-30000 23 23
4 30000-40000 32 32
5 Above 40000 8 8
TOTAL 100 100

THE MOST PREFERABLE BRAND

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 Power soap 14 14
2 HUL 51 45
3 P&G 29 32
4 Godrej 2 2
5 Nirma 4 7
6 Other 0 0
TOTAL 100 100

TABLE: 4.23
CHI SQUARE ANALYSIS:

MONTHLY
INCOME
FMCG COMPANIES
POWER
SOAP HUL P&G GODREJ NIRMA TOTAL
Below
10000
8 2 2 0 1 13
10000-
20000
3 10 9 0 2 24
20000-
30000
3 11 8 0 1 23
30000-
40000
0 21 10 1 0 32
Above 0 7 0 1 0 8
70

40000
TOTAL
14 51 29 2 4 100

Variables
chi square
value
df Sig.value
significant or
not
Consumers income and consumers
most preferable brand
46.818 16 .000 Significant

INFERENCE:
Since the calculated value is greater than tabulated value, Ho is rejected and H1 is accepted.
Therefore there is a significant association between the consumers income and most
preferred brand.

ASSOCIATION OF CONSUMERS MONTHLY INCOME
AND PREFFERD COMPANY IN DIAGRAMATIC
REPRESENTATION
(USING CORRESPONDANCE ANALYSIS)
Diagram 4.24
71

INFERENCE:
From the diagram it is inferred, that consumers whose income level is below 10000 prefer
Power soap, 10000-20000 income group prefer P&G, 20000-30000 income group prefer
Nirma, 30000-40000 income group prefer HUL, and 40000-50000 income group prefer
Godrej.

TABLE: 4.25
CATEGORISING OF CUSTOMER BASED ON
SATIFACTION LEVEL
(USING CLUSTER)
72

Particulars Highly
Satisfied
Satisfied Neutral Dissatisfied Highly
Dissatisfied
Good Quality 63.6
11.4 17.0
8.0 0.0
Packaging
43.2
33.0
19.3
4.5 0.0
Availability
34.4
35.2
21.6
9.1 0.0
Fragrance
34.1
40.9
19.3
5.7
0.0
Size
38.6
36.4 17.0 8.0
0.0
Price
26.1
48.9 13.6 11.4
0.0
Life of Soap
38.6
33.0 19.3 9.1
0.0
Advertisement
21.6
47.7 23.9 6.8
0.0

CLUSTER
VARIABLE
SATISFACTION
HIGH MODERATE LOW
Good quality 4.75 4.85 2.70
Packaging 4.60 4.15 3.05
Availability 4.31 4.40 2.60
Flavors/ fragrance 4.46 4.25 2.80
Size 4.65 3.90 2.80
Price 4.29 4.30 2.55
Life of soap/
solidity
4.65 3.90 2.60
Advertisement 4.33 3.60 2.90

Number of Cases in each Cluster
Satisfaction High 47.000
Moderate 20.000
Low 20.000
Respondent 87.000
Non respondent 13.000
73

INFERENCE:
From the above analysis it is inferred that, 50% of the consumers are highly satisfied with
Power brand variables like quality, availability, price etc. 20% of the consumers are
moderately satisfied and 20% of consumers are not satisfied.

TESTING THE ASSOCIATION BETWEEN CUSTOMER
SATISFACTION LEVEL AND PRICE FACTOR
(USING CHI SQUARE)

Null hypothesis:
Ho = There is no significant difference between consumers satisfaction level and
price.
74

Alternate hypothesis
H1 =There is a significant difference between consumers satisfaction level and price.

S.NO OPTIONS NO. OF
RESPONDENTS
PERCENTAGE
1 High 10 11.5
2 Moderate 70 80.5
3 Low 7 8.0
TOTAL 87 100

Particulars Highly
Satisfied
Satisfied Neutral Dissatisfied Highly
Dissatisfied
Good Quality 63.6
11.4 17.0
8.0 0.0
Packaging
43.2
33.0
19.3
4.5 0.0
Availability
34.4
35.2
21.6
9.1 0.0
Fragrance
34.1
40.9
19.3
5.7
0.0
Size
38.6
36.4 17.0 8.0
0.0
Price
26.1
48.9 13.6 11.4
0.0
Life of Soap
38.6
33.0 19.3 9.1
0.0
Advertisement
21.6
47.7 23.9 6.8
0.0

TABLE: 4.25

PRICE
Cluster Number of Case
HIGH MODERATE LOW TOTAL
HIGH 4 5 1 10
MODERATE 39 15 16 70
LOW 4 0 3 7
TOTAL
47 20 20 87

75

Chi-Square Tests
Variables
Chi square
value
Df Sig.value
Significant or
not
Satisfaction level
& price
7.207 4 .125 Significant

INFERENCE:
Since the calculated value is less than the table value Ho is accepted. Therefore there is no
significant association between the price of the product and satisfaction level. The consumers
are satisfied from power brand due to some other factor which may be quality, fragrance, life
of soap, etc.

TABLE: 4.26

RANKING THE VARIABLE ACCORDING TO THE
SATISFACTION LEVEL
(USING MEAN)

SL.
No
Variables Mean
Standard
Deviation
Rank
76

1 Good quality
4.30 1.02
1
2 Packaging
4.14 0.89
2
3 Availability
3.95 0.96
6
4 flavors/ fragrance
4.02 0.88
4
5 size
4.05 0.94
3
6 price
3.90 0.93
7
7 life of soap/ solidity
4.00 0.98
5
8 Advertisement
3.84 0.85
8

TABLE: 4.27
CHECKING THE REALIABILITY OF THE VARIABLES
(USING CRONBACHS ALPHA)
SL.
No
Variables
Cronbach's Alpha if Item
Deleted
Cronbach's Alpha
1 Good quality .902
.918
2 Packaging .915
3 Availability .908
4 flavors/ fragrance .908
5 Size .907
6 Price .903
7 life of soap/ solidity .906
8 Advertisement .912

CONFIRMATORY FACTOR ANALYSIS

77

Table Results of Independent Measurement Model
(Confirmatory Factor Analysis)
Results of Reliability
Test
Variable
Standard
Solutions
Factor
estimate
t
value
Error
variance
R
2

Construct
reliability
Average
Variance
Extracted
Good quality
0.84 0.86 9.45 0.29 0.71
0.918557 0.58639
Packaging
0.66 0.59 6.68 0.57 0.43
Availability
0.76 0.73 8.17 0.42 0.58
flavors/
fragrance
0.78 0.68 8.38 0.40 0.60
Size
0.77 0.73 8.32 0.40 0.60
Price
0.82 0.76 9.11 0.33 0.67
life of soap/
solidity
0.79 0.77 8.55 0.38 0.62
Advertisement
0.69 0.58 7.11 0.52 0.48

( ) ( ) | |

+ = ej
2 2
loadings ed Standardiz / loadings ed Standardiz y reliabilit Construct
Where
78

ej Is the measurement error

( ) ( ) | |

+ = ej
2 2
loadings ed Standardiz / loadings ed Standardiz (AVE) extracted variance Average
Where
ej Is the measurement error

INFERENCE:
Table shows the Results of Independent Measurement Model confirmatory factor analysis
(CFA). The motive of CFA is to verify the factor structure as proposed. All factor loadings
were highly significant (t-value. 2.64; p, 0.0173), which demonstrate that the chosen generic
questions for each latent variable reflect a single underlying construct. The reliabilities and
variance extracted for each variable show that the model was reliable and valid. All
composite reliabilities go beyond 0.70 and all variance-extracted estimates were more than
0.50, indicating an acceptable level of unidimensionality. The GFI value (0.91) is well
exceeding the recommended 0.90 threshold level. RMSEA for our measurement model is
0.075, which is in the range of 0.05 and 0.08 and thus indicates fair fit. To conclude, the
results indicate an acceptable overall fit between the model and the observed data. All other
fit measures, contain AGFI, CFI and NFI, also show acceptable (> 0.90) results.

It is inferred from the above tool that consumers are more satisfied from quality of Power
brand then price, life of soap, flavor and fragrance, size, availability, advertisement and then
packaging

TABLE: 4.28
RANKING THE FMCG COMPANIES
(USING TOPSIS)
79

CRIPS SCORE
Companies
Good
Quality
Packaging Availability
Flavors/
Fragrance
Size Price
Life &
Solidity
Advert
Power soap 0.295 0.295 0.495 0.295 0.495 0.695 0.495 0.295
HUL 0.895 0.695 0.895 0.695 0.695 0.695 0.895 0.895
P&G 0.695 0.695 0.495 0.695 0.695 0.495 0.495 0.695
Godrej 0.295 0.495 0.295 0.495 0.495 0.295 0.495 0.495
Nirma 0.495 0.295 0.115 0.115 0.295 0.295 0.115 0.295
Wt 0.895 0.695 0.695 0.895 0.495 0.695 0.495 0.495

WEIGHTED MATRIX
Companies
Good
quality Packaging Availability
flavors/
fragrance size price
life of
soap/
solidity Advertisement
POWERSOAP 0.202312 0.174206 0.291659 0.230563 0.197247 0.410417 0.196852 0.111893
HUL 0.613794 0.410417 0.527343 0.543191 0.276942 0.410417 0.355924 0.339473
P&G 0.476634 0.410417 0.291659 0.543191 0.276942 0.292311 0.196852 0.263613
GODREJ 0.202312 0.292311 0.173817 0.386877 0.197247 0.174206 0.196852 0.187753
NIRMA 0.339473 0.174206 0.067759 0.089881 0.117551 0.174206 0.045733 0.111893

POSITIVE AND NEGATIVE IDEAL SOLUTION
Companies POST NEG NETSCO
POWER SOAP 0.679591 0.393582 0.366746
HUL 0 0.933292 1
P&G 0.345496 0.686935 0.665357
GODREJ 0.665696 0.385159 0.366519
NIRMA 0.881458 0.137161 0.134654

FINAL RESULTS
Companies NETSCO RANK
POWER SOAP 0.366746 3
HUL 1 1
P&G 0.665357 2
GODREJ 0.366519 4
NIRMA 0.134654 5

INFERENCE:
From the analysis we can infer that HUL is ranked No.1, P&G No.2, Power soap No.3,
Godrej No.4 and Nirma No.5.
CHAPTER V
CONCLUSION

80

5.1 SUMMARY OF FINDINGS

It is found that 22% of consumers are male and 78% of consumers are female. In that
12% of consumers are below 20 yrs and 38% of consumers are above 30 yrs.
Almost 61% of the consumers are married &39% of consumers are unmarried.
14% of the consumers are illiterate and 33% of the consumers have completed under
graduation.
28% of the consumers are house wife, 20% of the consumers are student and 18% of
the consumers doing business.
13% of the consumers monthly income is below 10,000 and 32% of the consumers
monthly income is 30,000-40,000.
29% of the consumers family size is 4 and 35% of the consumers family size is 5.
Majority of the consumers prefer HUL product i.e. 51% and 14% of the consumers
prefer Power soap.
Majority of the consumers give importance to quality of the product i.e. 56% and 18%
of the consumers to brand image.
Majority of the consumers are highly aware of Power brand products i.e. 53% and
47% of the consumers are somewhat aware.
Majority of the consumers came to know about Power brand product through TV
advertisement i.e. 58% and 15% through shopkeeper.
49% of the consumers understand Power brand advertisement and 15% of the
consumer can recall it.
Majority of the consumers feels the price of the Power brand product is moderate i.e.
80.5% and 8% of the consumers feel its low.
21.8% of the consumers are customer of power brand for more than 2years and 23%
are less than 6 months.
Almost 57% of the consumers change their brand often and 43% of the consumers do
not change the brand.
55.8% of the consumers switch from Power brand product to other brand product and
44.2% of the consumers switch from other brand to Power brand.
Almost 51.2% of the consumers switch brand due to trail for new product and 20.9%
of the consumers due to offer and discount.
81

41% of the consumers suggest improving advertisement effectiveness and 22% of the
consumers suggest providing more offer and discount.
Majority of the consumers are aware of Power detergent soap i.e.84 % of Power
beauty soap and 14% of all the Power brand products.
50% of the consumers buy Power detergent soap, 35% buy Power beauty soap, 2%
buy the entire Power brand product and 13% are non buyers of Power brand products.
Consumers of Power brand are satisfied with quality, price, and life of soap.
Almost 63% of consumers are highly satisfied with power brand quality.
34% of the consumers are highly satisfied with power brand availability.
48% of the consumers are satisfied with price of power brand product.
19% of the consumers are highly satisfied with power brand advertisement.
Using TOPSIS it is found that HUL ranks no.1position in market followed by P&G
and Power soap.
Using chi square analysis it is found that there is significant difference between the
consumers income level and most preferred company.
Using chi square analysis it was found that there no significant difference between
customer satisfaction level and price factor.
Using confirmatory factor analysis the reliability of the data was found to be accurate.
Using cluster analysis consumer satisfaction level was found to be highly satisfied.

5.2 SUGGESTION AND RECOMMENDATIONS
82

AWARNESS: The product like shampoo and talcum powder are not known to consumer,
the awareness of these products is too low, so the company has to concentrate more on these
products. They can provide free sample of these products with other product like detergent
soap/powder which are in good movement or can make effective advertisement of these
product through TV, banners, pamphlet, internet etc.
ADVERTISEMENT EFFECTIVNESS: The Company has to give special focus to
the advertisement as the respondents feel the advertisement is not that effective i.e. like theme
of the advertisement can be improved, can highlight the quality of the product as consumer
give importance to quality while they purchase FMCG product.
BRAND IMAGE: The brand image of the company can be improved as mostly it is
recognized by low class and middle class income group consumer, so the company can
improve its brand name by alteration of some product name as power ++, or something else
by which they can raise their brand image in mind of high class income group.
SALES PROMOTIONAL STARTEGIES: The Company can try to attract
consumers through offers and discount, free sample, provide incentive to the seller to
promote the product, advertising special limited offer etc.
TARGET ON OTHER LOYAL GROUP: Till now the company has captured its
position in middle class group consumers, so it has to place itself in high class consumer
mind set by introducing a high class premium product with premium price and with high
class advertisement to attract the high class people.
.

5.3 CONCLUSION:
83

The ultimate success of any project work rests on the realization of the fulfillment of
objectives for which it was stated. Based on the research survey conducted and from the
various articles entreated from textbooks, journals, internet, on the topic of the study of
market penetration of power soap in Puducherry region, it is very clear that it is a key
area which requires more focus and attention. The foregone conclusion is that the
company must improve the product awareness and advertise the product in various
channels that would result in increasing the reputation of the firm and thereby to meet the
challenges with the competitors in market.

5.4 DIRECTIONS FOR FUTURE RESEARCH

The study highly useful to the organization to know about the penetration level in
the Puducherry region and help in finding the potential market.
It helps to know about the various areas the company can improve.
This project can be the base for researchers who are doing the project in related
area.

ANNEXURES-I

84

MARKET PENETRATION OF POWER BRAND IN PUDUCHERRY
REGION
QUESTIONNAIRE

1. Gender: a) Male b) Female

2. Age: a) Below 20 b) 20-30 c) 30-40 d) 40-50 e) Above 50

3. Marital status: a) Married b) Single

4. Education level: a) Illiterate b) HSC & Diploma c) UG d) PG
e) Others

5. Occupation:
a) Housewife b) Government Employee c) Business
d) Private Employee e) Unemployed f) Student

6. Monthly Income (family)
a) Below 10000 b) 10000-20000 c) 20000-30000
d) 30000-40000 e) Above 40000

7. Family Size: a) 2 b) 3 c) 4 d) 5 e) Above 5

8. Which is the most preferable Brand of fast moving consumer product you buy?
a) Power soap company
b) HUL company
c) P&G company
d) Godrej company
e) Nirma
f) Others (specify) ______________________________

9. While purchasing of fast moving consumers goods on which thing you give more
importance?
85

a) Brand image b) Quality c) Price d) Product features
e) Advertisement f) others (specify) ____________

10. Are you aware (known) that Power Brand is available in market?
a) Highly aware b) Some what aware c) Not aware

11. How you came to know about Power Brand?
a) TV advertisement b) Friends/Family c) Internet
d) Offer &discount e) Through Shopkeeper f) others (specify) ________

12. What do feel about the Power Brand advertisement message?
a) Is understandable b) Is believable c) Is memorable d) No idea

13. On seeing Power advertisement what all product you have been aware (known) off?
a) Power detergent soap b) Power detergent powder c) Power beauty soap
d) Gio dish wash bar e) Laa talcum powder f) Laa shampoo g) All

14. What kind of product do you prefer to buy in Power Brand?
a) Detergent Soap b) Detergent Powder c) Beauty Soap d) Dish wash bar
e) Laa Talcum powder f) Laa shampoo g) All h) none

15. From where do you buy the Power Brand Products?
a) Petty shop b) Retail shop c) Wholesale shop d) Distributors
e) Other specify _______

16. What do you feel about the price of Power Brand products?
a) High Price b) Moderate (Neither High nor Low) c) Low Price

17. How long you been a customer of Power Brand?
a) Less than 6 month b) 6-12months c) 1 year d) 1-2years
e) More than 2years

18. Customer Loyalty
86

For the following statements, please indicate which you are comfortable in Power
Brand.
a) I buy Power Brand products than other Brand products
b) I will recommend others to purchase Power Brand products
c) I have bad experience with other Brand products
d) I would move to other products offering high discount

19. Do you often change your Brand? a) Yes b) No

20. If yes then from which will you change?
a) Power Brands to other Brands b) Other Brands to Power Brands

21. What is the reason for moving from current Brand to other Brand?
a) Price b) Quality c) Offers & discount d) Availability
e) Brand image f) Trail for a new product g) Dissatisfaction of current Brand
g) Others (Specify) _____________
22. What is your satisfaction from Power Brand?
For each of the following statements, please indicate the degree which you are
comfortable.
Highly dissatisfied (1) Dissatisfied (2) Neutral (3) Satisfied (4) Highly
satisfied (5)
Variables (1) (2) (3) (4) (5)
a) Good quality
b) Packaging
c) Availability
d) Flavors / Fragrance
e) Size
f) Price
g) Life of soap / Solidity
h) Advertisement

23. Please give your rating about the fast moving consumers goods companies given
below?
87

For each of the following statements, please give the rank 1 to 5
Very bad (1) Bad (2) Average (3) Good (4) Very good (5)

24. What is your suggestion to improve the Power Brand products?
a) Effective advertisement b) Quality c) Offers& discount
d) Brand image e) Add more Varieties of product
f) Any Other Suggestion (specify) _________

BIBILIOGRAPHY
BOOKS:

Variables

Power

HUL

P &G

Godrej

Nirma

a)Good quality
b)Packaging
c)Availability
d)Flavors / Fragrance
e)Size
f)Price
g) Life of soap / solidity
h) Advertisement
88

Rajan Saxena, Marketing Management, Tata McGraw Hill. Fourth edition,
2004.
Philip Kotler & Kevin Lane Keller, Marketing Management, Pearson
Prentice Hall. Third edition, 2004.
Kothari, C.R., Research Methodology Methods and Techniques, New
Delhi, New Age International (P)Ltd., Second Edition, 2004.
Panneerselvam.R, Research Methodology, Prentice Hall of India, New
Delhi,. Second edition, 2004.
Gupta, S.P., Statistical Methods, New Delhi, Sultan Chand & Sons
Publishers, Thirty Fourth Editions, 2005.

REFERENCES:
"Pricing for Profitability"; John Lawrence Daly; 2002
"Real-Time Marketing for Business Growth"; Monique Reece; 2010
Hult, G. Tomas M., William T. Neese, and R. Edward Bashaw (1997), "Faculty
Perceptions of Marketing Journals," Journal of Marketing Education
A. S. C. Ehrenberg and R. E. Davis (1994), "A Replication Study of Two Brand-
loyalty Measures," European Journal of Operational Research
Rao, T. R. ( 1 969), "Consumers' Purchase Decision Process: Stochastic Models,"
Journal of Marketing Research, 6 (August)
Farris, P. W. and M. Albion (1980), "The Impact of Advertising on the Price of
Consumer Products," Journal of Marketing, 44 (Summer)
"Soaps and Detergents: New Opportunities in a Mature Business." Chemical Week ,
January 31, 1990.
Gerry, Roberta. "Ultra Detergents Continue Very Big." Chemical Business, January
1993.

WEBSITES:

www.wikipedia.com
89

www.projectparadise.com
www. google.com
www.managementparadise.com
www.slideshare.com
www.mbaguys.com
www.answers.com
www.scribd.com
www.powersoap.com
www.emrald.com

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