A Focus On Sunsilk And Garnier

Published Date: 02 Nov 2017

Dissertation Project Report

on

"Analyzing the consumer buying behavior towards shampoo in Delhi with a focus on Sunsilk and Garnier."

By

Chetanya Rajput

A0101911181

MBA Class of 2013

Under the Supervision of

Ms. Supriti Agrawal

Assistant Professor

Department of Marketing

In Partial Fulfillment of the Requirements for the Degree of

Master of Business Administration

at

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

2013

DECLARATION

Title of Project Report: "Analyzing the consumer buying behavior towards shampoo in Delhi with a focus on Sunsilk and Garnier."

I declare

(a) That the work presented for assessment in this Dissertation Report is my own, that it has not been previously been presented for another assessment and that my debts (for words, data, arguments and ideas) have been appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation and style set out in the relevant documentation.

Date : …………… Chetanya Rajput

A0101911181

MBA Class of 2013

CERTIFICATE

This is to hereby certify that Chetanya Rajput student of Masters of Business Administration at Amity Business School; Amity University Uttar Pradesh has completed the Project Report on "Analyzing the consumer buying behavior towards shampoo in Delhi with a focus on Sunsilk and Garnier."" under my guidance.

Ms. Supriti Agrawal

Assistant Professor

Department of Marketing

ACKNOWLEDGEMENT

First and foremost, I would like to thank my faculty guide, Ms Supriti Agrawal, for allowing me to undergo a dissertation project under her guidance and supervision. It gave me an opportunity to participate and learn a deal about the various aspects of the marketing FMCG product.

Her willingness to motivate me contributed tremendously to the project. I would also like to thank her for guiding me with some examples that related to the topic of the project, for suggesting alternative solutions & sharing her valuable experience & knowledge with me, and also for facilitating me in gaining practical knowledge.

Finally, an honorable mention goes to my family and friends for their understandings and supports on me in completing this project. Without helps of the particular that mentioned above, we would face many difficulties while doing this project.

TABLE OF CONTENTS

DECLARATION……….….………….……………………………….........….……..ii

CERTIFICATE……….…….………….……………………………………..........…iii

ACKNOWLEDGEMENT……………………….…………………………...............iv

LIST OF TABLES……...………………………..…………………….……….........vii

LIST OF FIGURES….......…………………………………………….………...........ix

ABSTRACT…………....……………………………………………………..……….x

1. INTRODUCTION......................................................................................................1

1.1 Purpose of the Study…………………………………………………....….1

1.2 Significance of the Study………………………………………….............1

1.3 Theoretical Framework…………....………………………………............3

1.3.1 Indian FMCG industry………………..........................................4

1.3.2 Introduction to Indian Shampoo Industry.....................................4

1.3.3 Introduction to Hindustan Unilever Limited and Sunsilk….........5

1.3.4 Introduction to L’Oreal India and Garnier...……………….........5

1.3.1.4 Introduction to consumer buying process.................................6

1.4 Main Objectives.....................................................................................7

1.5 Research Hypothesis................................................................................8

2. REVIEW OF THE LITERATURE............................................................................9

3. RESEARCH METHODS AND PROCEDURES....................................................17

3.1 Purpose of the Study……………………………………………...…........17

3.2 Research Design……………………………………………………….....18

3.3 Research Questions……...…………………….…………………..……..18

3.4 Research Hypothesis……………………………………………………..18

3.5 Participants………………………………………………………….........18

3.6 Data Collection technique and procedure………………………………..19

3.7 Instruments Used………………………...…….……………………........19

3.8 Tools Used……………………………...…….………………………......19

3.9 Limitations………………………………………………………..………20

4. DATA ANALYSIS AND FINDINGS …………………….…...............................21

4.1 Findings ………………………………………..……………....……..….21

4.2 Summary of Findings…………………………………………….............37

5. CONCLUSIONS AND RECOMMENDATIONS…………………………..….....39

5.1 Recommendations ……………………………………………...…..........39

5.2 Limitations……...…………………………………………..…………….40

5.3 Implications for Practice…………………………………..………..........40

5.4 Implications for Future Research……….………………...…………...…41

REFERENCES……………………………………………………………...………..42

Web Resources…..…………………………..………………………...…......44

APPENDIX…………………………………………………………………………..45

List of Tables

Table No.

Title

Page No.

Table 1.1

Product-Brand Matrix of L’Oreal

16

Table 4.1

Frequency of gender

21

Table 4.2

Frequency of Age of respondents

21

Table 4.3

Frequency of Annual Family Income of respondents

22

Table 4.4

Frequency of occupation of respondents

22

Table 4.5

Frequency of usage of shampoo

23

Table 4.6

Cross-tabulations of gender and monthly usage of shampoo

24

Table 4.7

Frequency of monthly spending on shampoo

24

Table 4.8

Frequency of brand of shampoo used

25

Table 4.9

Cross-tabulations of Gender and brand of shampoo used

26

Table 4.10

Frequency of shampoo changed in a year

27

Table 4.11.1

Frequency of conditioner used along with shampoo

28

Table 4.11.2

Frequency of oil used along with shampoo

28

Table 4.11.2

Frequency of after shower cream used along with shampoo

29

Table 4.11.2

Frequency of Hair Gel/spray used along with shampoo

29

Table 4.12

Analysis of most preferred attribute of shampoo (constant sum scale)

30

Table 4.13

Frequency of impact of advertisement on buying behavior

30

Table 4.14

Frequency of impact of celebrity endorsement on buying behavior

31

Table 4.15

Frequency of consumer preference of advertisements

31

Table 4.16

Frequency of impact of packaging on consumer buying behavior

32

Table 4.17

Cross-tabulations of gender and impact of packaging

33

Table 4.18

Frequency of preference of shampoo packages

33

Table 4.19

Independent T-test

35

Table 4.20

Chi-square test between Annual Family income and number of brands switched in a year

36

List of Figures

Figure No.

Figure Name

Page No.

Figure 2.1

Conceptual Framework

13

Figure 4.1

Frequency of usage of shampoo

23

Figure 4.2

Frequency of monthly spending on shampoo

25

Figure 4.3

Frequency of brand of shampoo used

26

Figure 4.4

Frequency of shampoo changed in a year

27

Figure 4.5

Frequency of impact of packaging on consumer buying behavior

32

Figure 4.6

Frequency of preference of shampoo packages

34

Chetanya Rajput

ANALYZING THE CONSUMER BUYING BEHAVIOR TOWARDS SHAMPOO IN DELHI WITh A FOCUS ON SUNSILK AND GARNIER."

Abstract

This project studies and analyzes various factors, which affect consumer-buying behavior towards shampoo in Delhi with a focus on Sunsilk and Garnier. The Indian FMCG (Fast Moving Consumer Goods) sector is the fourth largest sector in the economy with an estimated size of Rs.1300 billion.

The FMCG industry can be typically classified into three types of industries: Home care, Personal Care and Food & Beverages.

The project focuses on shampoo, which falls under Personal care. Shampoo has the highest penetration level of 80% in India among all hair care products. However, shampoo been a low involvement product presents various challenges to marketing manager like branding and maintaining market share through customer loyalty towards the brand.

This project provides an insight into changing consumers’ preferences towards shampoo. It shows consumer preference of hair care products and the popularity of shampoo. It depicts the frequency of usage of shampoo and strives to find out the popularity and ease of availability of different brands. It studies attributes, which affects consumer buying behavior and effect of celebrity endorsement as well as advertisement and packaging of a shampoo brand on various respondents. It delineates the effectiveness of advertisement and promotional strategies used by Garnier and Sunsilk, where former focus on strength as key attribute and latter on shine.

CHAPTER 1: INTRODUCTION

1.1 Purpose of the Study

The purpose of the study is to analyze consumer-buying behavior towards shampoo in Delhi with a focus on Hindustan Unilever Ltd.’s Sunsilk and L’Oreal’s Garnier.

The Indian shampoo market, estimated to be around Rs. 2,700 Cr. It has the penetration level of only 13 per cent in India. Sachets originally introduced to encourage trails, makes up to 40 per cent of the total shampoo sales and were recently, adopted in developed countries as well.

The study also tries to investigate the perceived usefulness, ease of use, availability and usage of various shampoos.

The study also aims at analyzing the effect of demographic variables like age, gender, occupation etc. on consumption of shampoo and preference of brands. It also aims to find out the frequency of usage of shampoo. The project also strives to find out the popularity and ease of availability of different brands. It studies attributes, which affects consumer buying behavior and effect of celebrity endorsement as well as advertisement and packaging.

1.2 Significance of the Study

Shampoo is one of main hair care products used by consumers apart from Hair Oil, styling products, herbal remedies, Hair dyes. Surprisingly, the word "Shampoo" was derived from the Hindi word "Champi" meaning hair massage. It has low penetration level even in metros. They possess following characteristics:

It is of small value and hence, it is low involvement product.

Shampoo plays a significant part of the consumer’s budget and consumption pattern.

Consumers keep limited inventory & prefers to purchase them frequently.

It is perishable.

Brand loyalties or recommendations of reliable retailer/dealer drive a purchase decision

The opportunity cost of switching disposing or switching the product is low.

The trial of a new product i.e. brand switching is often induced by heavy advertisement, the recommendations of the retailer or neighbors / friends.

Cater to necessities, comforts as well as luxuries

There are different type of shampoos and are segmented on the basis of their benefits :-

Cosmetic – Shine, Moisturizer and Silkiness

Health Related – Anti Dandruff and Anti Hair fall

Base – Chemical and Herbal based

There are various challenges which effects Indian shampoo market i.e.

Branding and Marketing Challenges – It includes launching as well positioning of the product. The expenditure required to capture market share is huge, as it requires investment in distribution, advertisement, celebrity, segmenting and positioning in order to persuade consumers to buy the shampoo.

Economic Factors – Target consumer’s ability to buy should be equal to willingness to buy or else it may fail because of overpricing.

Customer Loyalty – Costumer loyalty is difficult to retain due to the huge variety at same price backed by aggressive promotions to gain attention of consumers. Word of mouth and peer recommendations play a vital role in buying behavior.

Cost Challenges – Despite of offering quality products by reputed company, there should be a tab on price as India is a price sensitive market.

Rural Market - The rural and semi urban population is growing but the problem faced by the FMCG manufacturers are several like logistics, acute dependence on the vagaries of the monsoon, seasonal consumption linked to harvests, festivals and special occasions, poor roads and power problem. Also, been a fragmented industry, more preference is given to low cost local brands.

Increased Bargaining Power of Retailers – There has been increase in the bargaining power of retailers since they are the key point of contact with customers. As a result, manufacturers might have to pay slotting fees and give desired margins.

1.3 Theoretical Framework

1.3.1 Background of the Study

1.3.1.1 Indian FMCG Industry

Indian Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector in the Indian economy with an estimated size of Rs.1300 billion (ISE FMCG Sector, 2011). It is characterized by the strong presence of various multinational corporations (MNC), with well-established distribution network and intense competition between the organized and unorganized players and low operational cost. This industry has witnessed strong growth in the past decade due to liberalization, urbanization, increase in the disposable incomes and altered lifestyle. Due to reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of personal care companies to attract the burgeoning affluent segment in the middle-class through product and packaging innovations, it is considered as booming industry. Easy availability of important raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage.

Penetration level and per capita consumption in many product categories is very low as compared to the world average standards representing the unexploited market potential. Mushrooming Indian population, particularly the middle class and the rural segments, presents the huge untapped opportunity for FMCG players. A distinct feature of the FMCG industry is the presence of international players through their subsidiaries (HUL, P&G, Nestle), which ensures innovative product launches in the market from their parent’s portfolio. The major segments of the FMCG Industry are categorized into three categories:-

Household Care: – Consists of detergents, disinfectants etc.

Personal Care: – It includes personal wash products, hair care products, oral care products, cosmetics etc.

Food and Beverages: - This segment is comprised of the food processing industry, health beverage industry, bread and biscuits, chocolates & confectionery, Mineral Water and ice creams.

1.3.1.2 Introduction to Indian Shampoo Industry

The Indian shampoo market is estimated to be around Rs. 2,700 Cr Indian shampoo brand positioning: Multi-dimensional scaling approach, 2012). It has the penetration level of only 13 per cent in India (Indian shampoo brand positioning: Multi-dimensional scaling approach, 2012). Sachet makes up to 40 per cent of the total shampoo sales (Shampoo Brands –A Study of consumer behavior in Bangalore city, 2010). It has low penetration level even in metros. Again, the market is dominated by HUL with around 47 per cent market share; P&G occupies second position with a market share of around 23 per cent (Shampoo Brands –A Study of consumer behavior in Bangalore city, 2010). The market is further expected to increase due to increased marketing by players and the availability of shampoos in affordable sachets.

One of the complimentary products is Hair oil in which the coconut oil market accounts for 72 per cent share in the hair oil market (Vora, Mr Bimal, 2011). The hair care market can be segmented into hair oils, shampoos, hair colorants & conditioners, and hair gels. In the branded coconut hair-oil market, Marico (with Parachute) and Dabur are the leading players. Again, the market is dominated by HUL with around 47 per cent market share; P&G occupies second position with a market share of around 23 per cent (ISE FMCG Sector, 2011).

1.3.1.3 Introduction to Hindustan Unilever Limited and Sunsilk

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It has over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the company caters to various needs of consumers efficiently (HUL Annual Report FY2011). Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.

In its shampoo category, one of the famous brands is Sunsilk launched in the UK in 1954, primarily aimed at women, which is now considered the world's leading company in hair conditioning and the second largest in shampoo. Sunsilk shampoos, conditioners and other hair care products are sold in 69 countries worldwide.

1.3.1.4 Introduction to L’Oreal India and Garnier Fructis

The company, with global turnover of 19.5 billion Euros in 2010, has been present in India for close to 20 years and in 2009 celebrated its global centenary. L’Oréal India is one of L’Oréal’s fastest growing subsidiaries and employs over 1000 people across six sites including four regional offices, a factory in Chakan, Pune and its headquarters in Mumbai.

In India, L'Oréal brands are present in the following four main categories as explained in Table 1.1.

Table1.1 – Product-Brand Matrix of L’Oreal

CONSUMER PRODUCTS

LUXURY PRODUCTS

PROFESSIONAL PRODUCTS

ACTIVE COSMETICS

L’Oréal Paris

Lancôme

L’Oréal Professional

Vichy

Garnier

Kiehl’s

Matrix

La Roche Posay

Maybelline New York

Ralph Lauren

Kérastase

Giorgio Armani

Kéraskin Esthetics

Diesel

Garnier is a mass-market cosmetics brand of L'Oréal that produces hair care and skin care products. The company started as "Laboratoires Garnier" in 1904, and was acquired by L'Oréal in the 1970. Current product lines include Fructis shampoos and conditioners, and Nutrisse hair color.

1.3.1.4 Introduction to consumer buying process

The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy. The five stages of the consumer buying process are-

Problem recognition – It involves motivation, perception and arousal of needs, which consumers identify to fulfill.

Pre Purchase search – It consists of information seeking behavior of consumers. The search is of two types – internal and external. In internal search, the consumer recalls previous experience with brands. It is suitable to for low involvement products. External search is suitable for high involvement products where consumers tend to seek more information from varied sources like advertisement, internet etc.

Evaluation of alternatives – The consumers evaluate various offerings, which a marketer has to offer to solve consumer problem.

Purchase decision – It consists of three possibilities – to buy or not. In the first case, it deals with from where and when to buy.

Post-purchase behavior – The consumer evaluates the purchase by comparing perceived expectations with realized performance and experiences satisfaction or dissatisfaction. It includes consumer value perceptions, consumer communications and repeat-purchase behavior.

1.4 Main Objectives

The main objectives and the purpose of the research paper are as follows:-

To identify factors that motivate consumers to switch between different brands.

To study the impact of advertisements on consumer buying behavior towards a shampoo brand.

To study the influence of celebrity endorsements on buying behavior of consumers.

To study the preference of attributes which influence the consumer choice of shampoo.

To study the impact of packaging of shampoo on consumer buying behavior.

1.5 Research Hypothesis

H0 - There is no significant relationship between consumer buying behavior and brand (Sunsilk and Garnier) loyalty for shampoo category

H1 - There is a significant relationship between consumer buying behavior and brand (Sunsilk and Garnier) loyalty for shampoo category

The project aims to analyze consumer buying behavior towards shampoo and the preference towards attributes desired by consumers.

CHAPTER 2 – REVIEW OF THE LITERATURE

Shampoo is one of most common hair care product apart from hair oil, conditioner etc. The consumer attitude preferences towards shampoo have changed from cleansing to various other benefits like anti-dandruff, moisturizer etc. In order to investigate the ways consumer perceive shampoo, advertisements and various brand’s popularity & other attributes, the following literatures were studied.

Trends in Indian Shampoo Market

Jadhav G., (2012) studied Indian FMCG sector, in which he found that Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US $13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US $11.6 billion in 2003 to US $33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market Potential. Burgeoning Indian population, particularly the middle class and the rural segments, present an opportunity for makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. Further, Sharma, Dr Himani and Mehta, Shallu (2012) depicted the changes in society where men have started to accept beauty products in personal grooming techniques, which was usually stereotyped by women who used to take special care of themselves. The main objective of the paper is to study the buying behavior regarding the various brands of Shampoos and also to study the various factors affecting the purchase of shampoo. The paper also suggests the ways to shampoo producers to attract the consumers. It concluded in the paper that the male’s frequency of using the shampoo is very less as compared to females. The paper also explores that the consumers are not satisfied with the quality of the shampoo and the gifts distributed to them. Lastly, Mohanty, Sangeeta (2012), suggested the perception of Indian consumers towards different shampoo brands. Multi-Dimensional scaling technique along with spatial map has been used to elicit the dimensions more clearly. Consumers’ ways of judging the product under normal conditions varies widely, since consumer; themselves differ based on age, income, educational level, mobility pattern and taste. The purpose of the study is to transform consumer judgments of shampoo usage similarity into distances in multidimensional space.

Consumer Behavior towards Attributes of Shampoo in India

Kaplan and Zarrilli (2009) explored the role of fragrance in defining a brand’s personality at the point of purchase relative to its packaging. Louis Cheskin’s concept of Sensation Transference provides the basis for this exploratory research. Results contained herein are based on a consumer study of shampoo products designed to provide insight into recognizing fragrance’s contributions to the marketing mix of consumer product goods, measuring the impact of fragrance on brand identity, and understanding how fragrance, along with packaging, influences consumers’ purchase decisions and overall appeal. Both fragrances and packs alone are capable of defining a brand’s personality, but the impact of a compelling personality delivered through fragrance and package is priceless in building brand equity and augmenting consumer acceptance. The external factors like demographic, social, cultural, price, quality, product attributes etc. for buying Shampoo were studied by Bakhare, Dr Ruhi (2012). The market share of any product is highly determined by the purchasing behavior of the consumers. Following study is conducted by the researcher to find out the behavior of the consumers, to analyze the preference of consumers, & consumer awareness. Switching from one product to another company’s product is mainly based on advertisement, brand name, packaging, availability, and price rise, etc. The main factor that came out was the importance of packaging and fragrance.

Lonial, Dr Subhash and Zaim, Dr Selim determined attributes are important for choosing a household personal shampoo. Using the result, they develop two impact measures of customer satisfaction. In the first approach, the relationship between positive- or negative-attribute product performance and overall satisfaction is assumed to be linear and symmetric. In this case, positive or negative product attributes should affect overall satisfaction in a direct manner. In the second approach, the relationship between attribute-level performance and overall satisfaction is assumed nonlinear and asymmetric. According to the second hypotheses, dissatisfaction impact makes more influence on the overall satisfaction than satisfaction impact does. Therefore, attribute with large dissatisfaction impact should be eliminated. In this case, "Naturalness" has the largest dissatisfaction impact on overall satisfaction. If only symmetric effects were considered, naturalness would not seem important. But the asymmetric impact shows that it is the most important attribute for improvement. After that "Provides brightness", "Provides volume", and "Fragrance of shampoo" have the high dissatisfaction impact value. The main factor that came out was various attributes of shampoo that customer looks for in a shampoo and its impact in satisfaction. Ragavendran, Devakumar and Upadhyay(2010) revealed the major consumer expectations were quality, benefits offered and packaging of shampoo product. The main factor that came out was various attribute of shampoo, which affects the satisfaction level i.e fragrance, strength, shiny hair, volume, silky, and suitability.

Lastly, Jain, Anupam and Sharma, Meenakshi (2012) examined the brand awareness in rural areas and studied the interest of consumers in branded products of Fast Moving Consumer Goods (FMCG). The brand awareness is showing an increasing tendency everywhere and Garhwal Region of Uttarakhand State is not an exception to it. It showed that the brand awareness in rural areas particularly in respect of beauty care and health care products is showing an increasing tendency. The main factor that came out was impact of brand name on the purchase decision of shampoo.

Consumer Buying Behavior towards Shampoo

Gregory S. Carpenter and Kent Nakamoto (1989) explained that consumer preference towards a product might differ because of the product attributes. The learning process of the customers forms a preference towards a particular brand. First customers have a trial purchase and if the customers are satisfied with the product attribute customers repurchase the product and doing so the preference is formed. As a result, consumer preferences are likely to evolve through time, updated through heuristic judgment processes. Krishnan and Ulrich (2001) reviewed the research in product development, which they define as the transformation of a market opportunity into a product available for sale. The focus was on product development projects within a single firm. They also devoted their attention to the development of physical goods, although much of the work they described applies to products of all kinds. They looked inside the "black box" of product development at the fundamental decisions that are made by intention or default. In doing so, they adopted the perspective of product development as a deliberate business process involving hundreds of decisions, many of which can be usefully supported by knowledge and tools. This approach was contrasted to prior reviews of the literature, which tend to examine the importance of environmental and contextual variables, such as market growth rate, the competitive environment, or the level of top-management support. The main factor that came out was the need based product development and innovation

Thapa, Anju (2010) suggested shampoo-buying patterns among the individuals by examining the various factors, which influence the consumers to buy a shampoo of particular brands and reasons for their switching to other brands. It concluded that the usage rate of shampoo among the select individuals has been high and their buying behavior is very frequent. It has been observed that most of the people are aware of cosmetic shampoos rather than herbal and medicated ones. Price, availability and packaging of the product also plays an important role in buying the shampoo products. It has been found that most of the consumers preferred gifts, extra quantity, discount, price off while making decision for buying the shampoos. Also, it has been seen that various factors influence the switching behavior of the consumers like impact of packaging, a price rise of current brand, scheme of brands, impact of advertisement, no availability of brand, to try new options and influence by others etc. It shows a positive impact of consumers preferred advertisement, celebrity, banners. The majority of the respondents 34.37% preferred advertisements, 31.25% of the respondents preferred celebrity endorsements, 28.12% preferred other mode of promotion and 6.25% preferred banners. Advertisement creates attention and stimulates the consumer to buy a particular brand. It also shows that 43.75% respondents changed to other brand due to advertisement impact. To further evaluate, Hanssens, Pauwels, Srinivasan, and Vanhuele (2010), proposed four criteria i.e. potential, responsiveness, stickiness and sales conversion – that connect marketing actions, attitudinal metrics, and sales outcomes. It showed its conceptual framework to help of a diagram (Figure 2.1) that contrasts marketing effects that occur through changes in attitudinal metrics with those that occur without such changes. It denotes the former as the ‘mindset effect’ and the latter as the ‘transaction effect’. It derives a positive relation in advertisements and buying behavior due to awareness and interest. The main factor that came out here is role of advertisements in awareness of consumer

Figure 2.1 – Conceptual Framework

Alabdali (2010) suggested a critical role of demographic variables like age, gender, occupation etc. on attitude towards advertisements. Dan (2008) suggests that men, elderly and those with higher levels of education of the whole sample hold less favorable attitudes toward advertising thus confirms the impact of demographic variables viz. sex, age and education. Akihiro et al. (2007) suggested that informativeness and credibility of advertising message have the greatest impact on consumers' attitude towards advertising and marketers should work hard on these aspects to bring positive ad attitude. Volkov et al. (2002) found that the chances of careful processing of the advertisements are lowered by the high number of advertisements competing for individual attention on a daily basis. Limited time and mental resources make it difficult for the audience to dedicate sufficient attention to most advertisements. The main factor that came out here is the demographic profile to analyze and attitude towards advertisements.

George S. Low and Jakki J. Mohr (2008) studied about the advertising and sales promotion budgeting process. According to the paper, most managers marketing budgets were spent on sales promotions than advertising. Often times, significantly greater sums are allocated to sales promotion than to advertising — to the detriment of the long-term competitive position of the brand's image. This study examined the decision-making process brand managers use to set and allocate advertising and sales promotion expenditures for individual brands, with the objective of improving the process. Bauer et al. (2008) found that active information seekers tend to have a positive attitude towards the advertisements in general, As advertising stimuli are among those external stimuli, consumers with a high optimum simulation level (OSL) can be expected to be fond of taking in advertising stimuli and having a positive attitude towards advertising in general. Cheung et al. (2007) observed that an individual’s propensity to search and use information is an important construct in the analysis and explanation of consumer behavior. Thus, active information seekers generally have a more positive attitude towards advertisements. The main factor that came out here is role of promotions in capturing the interest of consumers by analyzing their information seeking and evaluation behavior of individuals with special focus on advertisements.

Tendai and Crispen, (2009) investigated the influence of in-store shopping environment for impulsive buying among consumers. The impulsive decision making theory and the consumer decision-making model were used to substantiate the study. A total of 320 shoppers conveniently sampled at a selected shopping mall served as the sample. A 5% test of significance showed that in-store factors of an economic nature such as price and coupons were more likely to influence impulsive buying than those with an atmospheric engagement effect like background music and scent. Shelf space is often retailer's critical resource. A growing number of products has posed a challenge to the retailers for efficient allocation of available shelf space to them. Hai , Jack and Yuxin (2004) studied the effects of Out-of-Stock (OOS) on consumers’ Stock Key Unit (SKU) preference and price sensitivity using a unique data set from multiple consumer packaged goods categories with information on recurring OOS incidents. Several key findings were obtained : (1) consumers’ price sensitivity tends to be underestimated when product unavailability due to OOS is not accounted for in discrete choice model; (2) in categories with a high level of SKU share concentration, consumer preference for a SKU is reinforced when facing OOS of other similar-in-attribute, familiar SKUs; and (3) in categories characterized by short inter-purchase time, consumer preference for a SKU is attenuated when it is frequently stocked out. We also illustrate that our findings can help retailers to evaluate the effect of OOS on category revenue and predict time-varying market shares of SKUs in periods following OOS incidents. Victor and Guillaume (2007) studied competition for shelf space in a multi-supplier retail point. A retailer is considered that seeks to allocate his shelf space to maximize his profit. The competitive dynamics arising from the scarcity of space were analyzed, and existence and uniqueness of equilibrium is showed. Then it demonstrated that the inefficiencies from decentralizing decision-making are limited to 6% with wholesale-price contracts, and that full coordination can be achieved with pay-to-stay fee contracts. Handa and Grover (2012) presented growth of retail sector in India, strategies, SWOT of retail stores, retail format in India & recent trends. It examined the growing awareness and brand consciousness among people across different socioeconomic classes in India and how retail markets are witnessing significant growth. It provided an insight on consumer preference towards organized retail. The main factor that came out here is role of packaging and distribution in favoriabilty of purchase decisions.

Thakur, Satendra and Singh, Dr. A.P (2012), suggested the relationship between brand image, customer satisfaction and loyalty intention in the context of cosmetic product of the selected company brand among the peoples of central India, five benefits of brand image have been discussed namely social, functional, symbolic, experiential and appearance enhances. It recommends focusing on the brand image to win the customer satisfaction in order to make the customer loyal about their product and service. Finally, it establishes a positive relationship between customer satisfaction and loyalty intention. The main factor that came out here is adoption and brand loyalty, which affects post purchase evaluation.

CHAPTER 3: RESEARCH METHODS AND PROCEDURES

3.1 Purpose of the Study

The main objectives and the purpose of the research paper are as follows:-

To identify factors that motivate consumers to switch between different brands.

To study the impact of advertisements on consumer buying behavior towards a shampoo brand.

To study the influence of celebrity endorsements on buying behavior of consumers.

To study the preference of attributes which influence the consumer choice of shampoo.

To study the impact of packaging of shampoo on consumer buying behavior.

3.2 Research Design

The research is a descriptive research. An intensive secondary research was conducted to gain insights in the shampoo market. The sampling technique used was convenience sampling.

3.3 Research Questions

The questions used in the research consisted of:

Dichotomous questions.

Questions using Likert Scale.

Question with constant sum scale

3.4 Research Hypothesis

H0 - There is no significant relationship between consumer buying behavior and brand (Sunsilk and Garnier) loyalty for shampoo category

H1 - There is a significant relationship between consumer buying behavior and brand (Sunsilk and Garnier) loyalty for shampoo category

3.5 Participants

A total of 100 respondents (Consumers of shampoo) were interviewed to gain insight of their usage and preference of shampoo.

3.6 Data collection technique and procedure

Primary Data

The primary data have been collected initially with the help of an unstructured questionnaire to develop a base for the study and then a structured questionnaire was formed based on secondary data and pilot study to record the responses of consumers. In addition, to know perceive popularity of brands, observation of shampoo brand’s share of self in retail outlets was conducted.

Secondary data

Already existing data are called secondary data. They were collected by following methods:

Research papers from the Internet

Books on marketing research and branding

Published reports and documents by various authors.

Official websites of shampoo manufacturers

3.7 Instruments Used

A self-administered questionnaire was used as research instruments to conduct research.

3.8 Tools Used

Frequency Analysis: Various respondents undertook a frequency analysis for each question to obtain the distribution of responses.

Cross-tabulation: Cross-tabulation refers to the display of two or more variables together in a tabular format. Cross-tabulation was done to find out the distribution of various responses under the heads of various demographic variables like age, gender, income etc.

T-Test – It checks the existence of statistical difference between means of two groups from each other. It compares the means of two groups, and especially appropriate as the analysis for the posttest-only two-group randomized experimental design.

Constant Sum – It evaluates the preference of attributes given by consumers.

Chi-Square Test – It checks the proportions of observations falling into different categories differ significantly from the proportions that would be expected by chance

Following software has been used during analysis and compiling of data.

SPSS

Microsoft Excel

Microsoft Word

3.9 Limitations

The time span of research was less so observational research was not possible.

The extent of research was only restricted to Delhi and NCR.

Due to paucity of time, sample size could not be taken more.

Lack of availability of ample prior research works on the topic.

Due to paucity of time, some of the candidates had to respond online and on the phone which may be open to some biases in the answers.

CHAPTER 4: DATA ANALYSIS AND FINDINGS

4.1 Findings

The primary data collected through structured questionnaires from 100 respondents, was analyzed by means of Descriptive analysis (Frequencies and Cross Tabulations), Measure of Central Tendencies, Parametric Tests and advanced statistical hypothesis tests and interpretations are made from the statistics.

1. Frequency Analysis on consumer buying behaviour towards shampoo in Delhi & NCR

Table 4.1 – Frequency of gender

Gender

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Male

45

45.0

45.0

45.0

Female

55

55.0

55.0

100.0

Total

100

100.0

100.0

Table 4.2 – Frequency of Age of respondents

Age

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Below 20yrs

25

25.0

25.0

25.0

21-30yrs

69

69.0

69.0

94.0

31-40yrs

3

3.0

3.0

97.0

41-50yrs

1

1.0

1.0

98.0

Above 51yrs

2

2.0

2.0

100.0

Total

100

100.0

100.0

Table 4.3 – Frequency of Annual Family Income of respondents

Annual Family Income

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Below 3 Lakhs

6

6.0

6.0

6.0

3 Lakhs-6 Lakhs

48

48.0

48.0

54.0

Above 6 Lakhs

46

46.0

46.0

100.0

Total

100

100.0

100.0

Table 4.4 – Frequency of occupation of respondents

Occupation

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

Student

61

61.0

61.0

61.0

Service

31

31.0

31.0

92.0

Homemaker

1

1.0

1.0

93.0

Business

7

7.0

7.0

100.0

Total

100

100.0

100.0

Interpretation – Mostly the respondents lies in age group of 21-30. The second major age group is below 20yrs. The majority of respondents is either in 3-6 lakhs or above 6 lakhs and were students followed by people in service. The gender is in proportion with female and male ratio of 11:9

2. Usage pattern of shampoo by respondents in Delhi & NCR

Table 4.5 – Frequency of usage of shampoo

How often do you wash your hair with shampoo?

Frequency

Percent

Valid Percent

Cumulative Percent

V

Once a day

25

25.0

25.0

25.0

Alternate days

39

39.0

39.0

64.0

Twice a week

32

32.0

32.0

96.0

Once a week

4

4.0

4.0

100.0

Total

100

100.0

100.0

Figure 4.1 - Frequency of usage of shampoo

Interpretation – The majority of respondents wash their hair on alternative basis followed by twice a week and then on daily basis.

Table 4.6 – Cross-tabulations of gender and monthly usage of shampoo

How often do you wash your hair with shampoo? * Gender Cross-tabulation

Gender

Total

Male

Female

How often do you wash your hairwith shampoo?

Once a day

16

9

25

Alternate days

15

24

39

Twice a week

11

21

32

Once a week

3

1

4

Total

45

55

100

Interpretation – Mostly male wash their hair daily or on alternative basis, however female do not prefer to wash their hair daily.

3. The average monthly spending on shampoo by an individual

Table 4.7 – Frequency of monthly spending on shampoo

How much do you spend (in Rs) on shampoo in a month?

Frequency

Percent

Valid Percent

Cumulative Percent

V

Below100

22

22.0

22.0

22.0

100-250

51

51.0

51.0

73.0

250-500

20

20.0

20.0

93.0

Above 500

7

7.0

7.0

100.0

Total

100

100.0

100.0

Figure 4.2 - Frequency of monthly spending on shampoo

Interpretation – The majority of respondents spends between Rs 100-250.

4. Preference of brand of shampoo used by respondents

Table 4.8 – Frequency of brand of shampoo used

Which Brand of shampoo do you use?

Frequency

Percent

Valid Percent

Cumulative Percent

V

Garnier

15

15.0

15.0

15.0

Head n Shoulder

16

16.0

16.0

31.0

Clinic Plus

4

4.0

4.0

35.0

Sunsilk

38

38.0

38.0

73.0

Others

27

27.0

27.0

100.0

Total

100

100.0

100.0

Figure 4.3 - Frequency of brand of shampoo used

Interpretation – The most preferred shampoo is Sunsilk and the least preferred is Clinic Plus. In others category, the responses were Dove and Keshkanti.

Table 4.9 – Cross-tabulations of Gender and brand of shampoo used

Which Brand of shampoo do you use? * Gender Cross-tabulation

Male

Female

Which Brand of shampoo do you use?

Garnier

14

1

15

Head n Shoulder

11

5

16

Clinic Plus

2

2

4

Sunsilk

9

29

38

Others

9

18

27

Total

45

55

100

Interpretation: - Majority of male respondents prefers Garnier whereas majority female respondents prefer Sunsilk.

5. The number of shampoo brands switch by an individual in a year

Table 4.10 – Frequency of shampoo changed in a year

How many shampoos have you changed since last year?

Frequency

Percent

Valid Percent

Cumulative Percent

Never

25

25.0

25.0

25.0

Once

36

36.0

36.0

61.0

Thrice

30

30.0

30.0

91.0

More than 5times

9

9.0

9.0

100.0

Total

100

100.0

100.0

Figure 4.4 - Frequency of shampoo changed in a year

Interpretation – Mostly respondents have changed their shampoo either once or thrice in one year.

6. Preference of complimentary product used along with shampoo

Table 4.11.1 – Frequency of conditioner used along with shampoo

Along with Shampoo – Conditioner

Frequency

Percent

Valid Percent

Cumulative Percent

V

YYes

61

61.0

61.0

61.0

NNo

39

39.0

39.0

100.0

TTotal

100

100.0

100.0

Table 4.11.2 – Frequency of oil used along with shampoo

Along with Shampoo – Oil

Frequency

Percent

Valid Percent

Cumulative Percent

V

YYes

36

36.0

36.0

36.0

NNo

64

64.0

64.0

100.0

TTotal

100

100.0

100.0

Table 4.11.3 – Frequency of after shower cream used along with shampoo

Along with Shampoo - After Shower

Frequency

Percent

Valid Percent

Cumulative Percent

V

YYes

16

16.0

16.0

16.0

NNo

84

84.0

84.0

100.0

TTotal

100

100.0

100.0

Table 4.11.4 – Frequency of Hair Gel/spray used along with shampoo

Along with Shampoo - Hair Gel/Spray

Frequency

Percent

Valid Percent

Cumulative Percent

Y

YYes

20

20.0

20.0

20.0

NNo

80

80.0

80.0

100.0

TTotal

100

100.0

100.0

Interpretation – Conditioner is the most popular complimentary product followed by hair oil.

7. Preference of attribute based on constant sum scale

Table 4.12 – Analysis of most preferred attribute of shampoo (constant sum scale)

N

Minimum

Maximum

Sum

Mean

Variance

Total of 100 Points – Strength

100

0

5

274

2.74

1.528

Total of 100 Points – Shine

100

0

5

252

2.52

1.363

Total of 100 Points – Moisturizing

100

0

5

251

2.51

1.444

Total of 100 Points – Fragrance

100

0

5

151

1.51

1.061

Total of 100 Points – Color

100

0

4

72

.72

.789

Valid N (listwise)

100

Interpretation – Strength is the most desired attribute of shampoo followed by shine. The third most desired attribute is moisturizing followed by fragrance at fourth. The color of shampoo is least preferred shampoo.

8. Impact of advertisement on consumer buying behavior

Table 4.13 – Frequency of impact of advertisement on buying behavior

Do good Advertisement plays major role in selling Shampoo

Frequency

Percent

Valid Percent

Cumulative Percent

V

YYes

77

77.0

77.0

77.0

NNo

23

23.0

23.0

100.0

TTotal

100

100.0

100.0

Interpretation – The advertisement does plays a major role in selling shampoo since 77 respondents agrees.

9. Impact of celebrity endorsement on consumer buying behavior

Table 4.14 – Frequency of impact of celebrity endorsement on buying behavior

Celebrity Endorsement Role

Frequency

Percent

Valid Percent

Cumulative Percent

V

YYes

36

36.0

36.0

36.0

NNo

64

64.0

64.0

100.0

TTotal

100

100.0

100.0

Interpretation – 64% of respondents do not agree that celebrity endorsement plays a major role in buying behavior.

10. Impact of attribute focused advertisements in comparison to celebrity advertisements

Table 4.15 – Frequency of consumer preference of advertisements

Celebrity advt (Sunsilk) vs Attribute focused advt (Garnier)

Frequency

Percent

Valid Percent

Cumulative Percent

V

Sunsilk

24

24.0

24.0

24.0

Garnier

58

58.0

58.0

82.0

Both

1

1.0

1.0

83.0

None

17

17.0

17.0

100.0

Total

100

100.0

100.0

Interpretation – The majority of respondents are more influenced by attribute-focused advertisement, which is used by Garnier. 17% disliked both types.

11. Impact of packaging on consumer buying behavior

Table 4.16 – Frequency of impact of packaging on consumer buying behavior

Can Packaging change your decision

Frequency

Percent

Valid Percent

Cumulative Percent

V

YYes

37

37.0

37.0

37.0

NNo

63

63.0

63.0

100.0

TTotal

100

100.0

100.0

Figure 4.5 - Frequency of impact of packaging on consumer buying behavior

Interpretation – Majority of respondent’s decision to purchase shampoo aren’t affected by packaging.

Table 4.17 – Cross-tabulations of gender and impact of packaging

Can Packaging change your decision * Gender Cross-tabulation

Gender

Total

Male

Female

Can Packaging change your decision

Yes

21

16

37

No

24

39

63

Total

45

55

100

Interpretation – The male respondents were equally divided over changing their decision of purchasing shampoo based on packaging, however, female did not agree clearly.

12. Preference of stock key unit of Shampoo

Table 4.18 – Frequency of preference of shampoo packages

Which Shampoo Package you prefer

Frequency

Percent

Valid Percent

Cumulative Percent

V

Sachet

9

9.0

9.0

9.0

Regular Bottle

74

74.0

74.0

83.0

Family Bottle

17

17.0

17.0

100.0

Total

100

100.0

100.0

Figure 4.6 - Frequency of preference of shampoo packages

Interpretation – Majority of respondents prefers Regular bottles which is also agreement to monthly respondents spending on shampoo

14. Independent t-Test

The independent t-test was conducted to check the existence of statistical difference between means of gender and statements, which reflects the feelings of the respondents.

The hypothesis used was

H0 - Preference towards attributes and advertisements does not differ between genders.

H1 - Preference towards attributes and advertisements does differ between genders.

Table 4.19 – Independent t-test

t-test for Equality of Means

t

df

Sig. (2-tailed)

I like to use shampoo which has long lasting fragrance

Equal variances assumed

-.776

98

.440

Equal variances not assumed

-.758

83.036

.450

I use shampoo to strengthen my hair

Equal variances assumed

-.137

98

.892

Equal variances not assumed

-.139

97.840

.890

I will prefer strong hair over shiny hair

Equal variances assumed

-.046

98

.964

Equal variances not assumed

-.047

97.356

.963

I feel that shampoo moisturizes my hair effectively

Equal variances assumed

-2.254

98

.026

Equal variances not assumed

-2.337

95.436

.022

I prefer shampoo which gives me shiny hair.

Equal variances assumed

-.474

98

.637

Equal variances not assumed

-.485

97.960

.629

I get influenced by advertisements of shampoo and hence purchase that brand

Equal variances assumed

2.166

98

.033

Equal variances not assumed

2.169

94.581

.033

I don’t mind paying extra for right shampoo that suits my needs

Equal variances assumed

.969

98

.335

Equal variances not assumed

.965

92.532

.337

Interpretation: - There has been significant difference noted in attitude of male and female respondents’ advertisements and moisturizing attribute.

The hypothesis were not accepted in shampoo with attributes like shine, fragrance and strength. Both female and male did not show significant difference in paying extra for suitable shampoo and showing preference towards strength over shine.

15. Chi Square Test between Annual Family income and number of brands switched in a year

The hypothesis used in Chi Square Test is

H0 – Brand loyalty and income are not dependent

H1 – Brand loyalty and income are dependent

α = .05

Table 4.20 - Chi-square test Test between Annual Family income and number of brands switched in a year

Chi-Square Tests

Value

df

Asymp. Sig. (2-sided)

Exact Sig. (2-sided)

Exact Sig. (1-sided)

Pearson Chi-Square

3.280a

1

.070

Continuity Correctionb

2.569

1

.109

Likelihood Ratio

3.282

1

.070

Fisher's Exact Test

.096

.054

Linear-by-Linear Association

3.247

1

.072

N of Valid Cases

100

Interpretation:- Since, 0.070 > 0.05. Since the difference is significant, therefore, reject H1. Respondents, regardless to their income, are not loyal to their choice of shampoo brand

4.2 Summary of Findings

To identify factors that motivate consumers to switch between different brands.

The costumers do not exhibit strong loyalty towards a particular brand. Through Chi-squared test, it was found respondents, regardless of their income, aren’t loyal to their choice of shampoo brand. Most of the respondents have switched at least once followed by three times, the number of shampoos changed in a year

To study the impact of advertisements on consumer buying behavior towards a shampoo brand.

Advertisement plays a vital role in influencing buying behavior. The advertisement focused on the attributes and benefits of a shampoo is preferred more and plays a vital role in influencing consumer-buying behavior. There is a significant difference in attitudes towards advertisements between male and female.

To study the influence of celebrity endorsements on buying behavior of consumers.

Celebrity endorsement is not the preferred form of advertisement and its influencing power on consumer buying behavior is lesser as compared to an advertisement, which focuses on the attributes.

To study the preference of attributes which influence the consumer choice of shampoo.

Attributes plays a key role in influencing consumer buying process as it starts with need recognition, which keeps varying with age and gender for hair. The consumers prefer advertisement, which focus on attributes. It was observed that strength was most preferred attribute followed by shine. There is a significant difference in attitudes towards moisturizing (third most preferred attributes) between male and female.

To study the impact of packaging of shampoo on consumer buying behavior.

The packaging does not play a vital role in influencing consumer buying behavior. The most preferred package is regular bottle and average monthly spending is Rs 100-250. The color of the shampoo was least preferred attribute. It has been observed that people use not only shampoos but also other hair styling products like hair conditioner; hair oil, etc. is also preferred because of its uniqueness of effectiveness. The male respondents were equally divided upon changing their decision of purchasing shampoo based on packaging, however, the female did not agree clearly.

CHAPTER-5: CONCLUSIONS AND RECOMMENDATIONS

5.1 Recommendations

The preferred attribute, which shampoo manufacturers can cash on is strength followed by shine.

Advertise key attributes such as strength and volume. The USP could be rebuilding damaged hair, silky and healthy hair.

The most commonly used product was conditioner. It can be either used a sales promotion technique as a gift with a shampoo bottle. Garnier has already harnessed this potential with 2 in 1 shampoo range.

Focus on attributes than celebrities as celebrities do give positive stimulus to buyer’s mind but they should not be the prime focus while advertisement for shampoo.

Offer value for money impetus for the decision to use the product more intensively

Develop quality and brand image so that by trial of brand is left with a good image and then followed by the usage of bigger pack, which then will be used by them.

In order to create brand loyalty, benchmark the company that has well positioned itself in the minds of the consumer and consumers rarely change their shampoo with the help of testimonial advertisements which focus on the satisfaction derived from core features of their brand. So, delivering the improved one will make them switch to brand but it should be well advertised and substantiated. This action of company will have other positive effect of attracting those switchers, changing frequently and/or occasionally and drawing the crowd towards the brand.

Go for strategic sizing and pricing with packs available in the market so that people have a wider option availability and presence of your brand. After a gap of some time check which are the packs that are bought most and assure their availability. Sachet can be made available near rural and college hostel areas whereas family and regular bottles should be available in residential areas.

In order to increase effectiveness of a promotional campaign of shampoo, a brand should be positioned as a foreign brand with the help of foreign actors focusing on attributes as studied in consumer perception of Garnier.

5.2 Limitations

The time span of research was less so observational research was not possible.

The extent of research was only restricted to Delhi and NCR.

Due to paucity of time, sample size could not be taken more.

Lack of availability of ample prior research works on the topic.

Due to paucity of time, some of the candidates had to respond online and on the phone which may be open to some biases in the answers.

5.3 Implications for Practice

This research report would be of interest of shampoo manufacturers, suppliers and marketers who are interested in understanding the consumer-b