kesava reddy-consumer satisfaction towards mysore sandal soap

PROJECT REPORT ON

-Consumer satisfaction towards Mysore Sandal Soap

KARNATAKA SOAP & DETERGENT LIMITED AT BANGALORE

I NDEX

S No.PARTICULARPage No

1Executive Summary1

2Industrial Profile2-3

3Company Profile4-9

4Organization Structure10-20

5Product Profile21-24

6Introduction to topic25-31

7Research Methodology32-34

8Data analysis & Interpretation35-50

9Test Hypothesis51-52

10Finding53

11Suggestions54

12Conclusion55

13Bibliography56

14Annexure57-58

EXECUTIVE SUMMARY

In present competitive scenario, the FMCG companies are mainly concentrating on analyzing the consumer behaviour which is essential for the growth of the company. FMCG sector needs speed, convenience, the ability to interact across multiple channels and the ability to work with multiple distribution channels from which they expect consistent growth and penetration in the market.

TITLE OF THE PROJECT:

Study of Consumer Behaviour towards Mysore Sandal Soap

The project is being carried out in Bangalore city with a clear objective of understanding the consumer behaviour towards Mysore sandal soap and its related brands.

The primary data is collected through survey technique and field work by interviewing the consumers and general public. The secondary data is collected through company websites and past records.

The questionnaires consisting of both open ended and close ended questions have been designed to obtain the required information from the respondents keeping in mind the objectives of the study.Analysis was made out of the opinions produced there in based upon this analysis conclusion and recommendations were aimed at.

INDUSTRY PROFILE

Soap is one of the commodities which have become an indispensable part of the life of modern world. Since it is non durable consumer goods, there is a large market for it. The

whole soap industry is experiencing changes due to innumerable reasons such as government relations environment and energy problems increase in cost of raw material etc.

The changing technology and ever existing desire by the individual and the organization to produce a better product at a more economical rate has also acted as catalyst for the dynamic process of change.More and more soap manufactures are trying to capture a commanding market share by introducing new products. The soap industry in India faces a cut throat competition with multinational companies dominate the market. They are also facing severe threat from dynamic and enterprising new entrance especially during 1991-92.

If we look back into the history of soaps & detergents, mankind knew about soaps nearly 2000 years back i.e. in 70 A.D. when Mr. Elder accidentally discovered the soap, when roasted meat over flowed on the glow in ashes. This lump like product was soap & had foaming & cleansing character. In 1192 A.D. the first commercial batch of soaps was made & marketed by M/s Bristol soap market in London, from there in 1662A.D. the first patent for making soap was taken in London. The world consumption of soap in 1884A.D. was said to be 2lakh tonnes p.a.

HISTORY OF THE SOAP:

Soap manufacturing was started in North America. Some American companies with well known names were started 200 years ago. During middle age soap was made at various places in Italy, France, England & other countries. France became famous & many small factories were established there.In India the first soap industry was established by North West soap company in1897 at Meerat following the swadeshi movement. Since 1905, the following come into force:

Mysore soap factory at Bangalore

Godrej soap at Bombay

Bengal chemicals

Tata oil mills

1930 lever brothers co.

THE INDIAN SOAP INDUSTRY SCENARIO:

The Indian soap industry has long been dominated by hand full of companies such as:

1. Hindustan levers limited.

2. Tata oil mills (taken over by HLL)

3. Godrej soaps private limited.

The Indian soap industry continued to flourish very well until 1967-68, but began to stagnate & soon it started to recover & experienced a short upswing in 1974. This increase in demand can be attributed due to;1. Growth of population.

2. Income & consumption increase.

3. Increase in urbanization.

4. Growth in degree of personal hygiene.

Soap manufacture has 2 classifications, organized and unorganized sectors. KSDL comes under organized sector.

PRESENT STATUS: Market scenario:

India is the ideal market for cleaning products. Hindustan liver, which towers over the cleaning business, sells in all over the cleaning business but the tiniest of Indian settlements. The 7.4lakhs tons per annum soap market in India in crawling along at 4%

The hope lies in raising Rupee worth, the potential for which is high because the Indian soap market is pseudo in nature & it is amazingly complex being segmented not only on the basis of price benefits, but even a range of emotions within that outlining framework.

PROBLEMS OF SOAP INDUSTRY:

Soap industry faces some problems in case of raw materials. The major ingredients are soap ash, linear alkyl, benzene& sodium. Tripoli phosphate poses number of serious problems in terms of availability. The demand supply gap for vegetable oil is 1.5 to 2 lakh tons & is met through imports. In recent times, caustic soda and soap ashes in the cheaper varieties of soaps are quite high.

COMPANY PROFILE

HISTORY OF KS&DL (INCEPTION):

Karnataka soaps & Detergents Limited, a successor to the government soap factory, which is one of the premier factories among the Indian soap industries. After World War 1, there was a slump in the sandal wood export to the west. It dropped a blanket of gloom over business & trading in India. The Maharaja of Mysore turned this threat in to an opportunity, by sowing the budding seeds of KS & DL on the out skirts of Koti forest, near Bangalore in 1918.The project took shape with the engineering skill and expertise of a top-level team with the inspection of the Diwan of Mysore Late Sir. M. Visvesvaraya & with the service of scientists late Sir S.G. Shastry, Professor Watson & Dr. Sub rough.The entire credit goes to Sir. S.G.Shastry, who improved & made the process perfect of manufacturing of sandalwood oil & world famous Mysore Sandal Soap.The factory was started a very small unit near K.R.Circle, Bangalore with the capacity of 100 tons p.a in 1918. Then, the factory shifted its operations to Rajajinagar industrial area, Bangalore in July 1957. The plant occupies an area of 42 acres (covering soap, detergent & fatty acid divisions) on the Bangalore-Pune Highway easily accessible by transport services and communication. In November 1918, the Mysore Sandal Soap was put in to the market after sincere effort & experiments were undertaken to evolve a soap perfume blend using sandalwood oil as the main base to manufacture toilet soap.

RENAMING OF COMPANY:

On Oct 1st 1980, the Government Soap Factory was renamed as KARNATAKA SOAPS AND DETERGENTS LIMITED. The company was registered as a Public Limited company. Today the company produces varieties of products in toilet Soaps, Detergents, Agarbathis and Talcum powder. KS&DL has been built up with rich tradition for the quality of its products. Mysore Sandal Soap is the No: 1 anywhere in the world. The Karnataka state is the original home of the Sandal oil, which uses Original perfume sandalwood in the manufacturing of Mysore Sandal Soaps.

It is also known as the FRAGRANT AMBASSADOR OF INDIA.

TRADEMARK OF MYSORE SANDAL SOAP

The SHARABHA

The carving on the cover is the Sharabha, the trademark of KS&DL. The Sharabha is a mythological creation from the puranas and embodies the combined virtues of wisdom, courage & strength, while it is illustrated in its unusual from the body of a lion with head of an elephant. It was adopted as an official emblem of KS&DL to symbolize the philosophy of the company. The Sharabha the symbolized power that removed imperfections & impurities. The Maharaja of Mysore has his official emblem adopted it. And soon took its pride of place as the symbol of the government Soap factory, of quality that reflects a standard of excellence of Karnataka Soaps & Detergents Limited.

OWNERSHIP PATTERN:

Wholly owned by Government of Karnataka

COMPETITORS INFORMATION AND THEIR MARKET SHARE:

HUL70%

Godrej4%

Procter & gamble10%

KSDL11%

Others5%

PRESENT STATUS:

1. The company has entered into shampoo, dish wash, detergent bar & room refresher.

2. The company is striving to develop new perfumes for soaps detergents, agarbathies & shampoo. 3. The company wants to improve the existing products in terms of quality.

ACHIEVEMENTS / AWARD:

1. Government of Karnataka

Dept of Industries and commerce

State Export Promotion Advisory Board. EXPORT AWARD 1974-75

2. Detergent Plant

M/s Chemical Bombay have given 1st price for the year 1980-81

3. Geographical Indication GI-2005

4. ISO 9001-2000 in the year 1999

5. ISO 14001-2004 in the year 2000

FUTURE GROWTH AND PROSPECTUS:

1. Introduction of anti-bacteria, herbal transparent soap, made out of 33 essential oil based perfume, Aloe Vera, Vitamin-E etc as additive and suitable for all types of skin and all seasons. 2. Improvement in existing products Mysore Sandal classic improved moisturizers & skin conditions. 3. Introduction of sandalwood powder in 50gms, 100gms to meet the growing demand for religious purpose. 4. Introduction of new higher powered detergent powder for institutional sales in bulk packaging. 5. To attain market leadership.

6. Introduction of new trade schemes to increase sales.

7. Aggressive advertisement and publicity as part of sales promotion.

8. Reduction in distribution expenses.

9. Cost-reduction in all areas.

10. Instant decision making in certain procurement activities.

11. Timely introduction and implementation of market driven decisions.

12. Ensuring effective internal control.

BIRDS EYE VIEW OF KS&DL:

1918 - Govt. Soap factory started by Maharaja of Mysore & the Mysore Sandal Soap was Introduced into the market for the first time.1950 - The factory output rose to find terms.

1. Renovating the whole premises.

2. Installing a new boiler soap building plant & drying chamber.

1954 - Received License from government to manufacture 1500 tons of soap & 75 tons of glycerin per year.1957-Factory shifted its operations to Rajajinagar industrial area.

1975- Rs3crore synthetic Detergent plant was installed based on Ballestra SPA (Italy) technology.1981- a. Production capacity was increased to 6000 tons.

b. Rs.5 crore Fatty acid plant was installed with technical collaboration from Europe. 1992- The Board for Industrial & Financial Reconstruction (BIFR), New Delhi in December

For rehabilitation.

1996- The BIFR approved the Rehabilitation scheme in September.

1999- ISO 14001 Certificate pertaining to Environmental Management System. 2000- In May, the BIFR, New Delhi Declared the Company to be out of the purview. 2004- The company launched Herbal Care Soap.

ISO 9002 QUALITY POLICY:

KS&DL commits to customer delight through Total Quality Management & continues improvement by involvement of all its employees.

ISO 14001 ENVIRONMENTAL POLICIES OF KS&DL:

1. Is committed to preserve the natural environment in the production of its quality products to the satisfaction of its customer. 2. Will comply with all statutory & regulatory requirements pertaining to environment stipulated by both state & central authorities. 3. Would invite & implement action to reduce all impacts that are likely to be a source of concern to the environment. 4. Would strive & set an example in protection & promotion of an eco-friendly environment.

5. Is committed to prevent & minimize risks to the environment & conserve natural resources by waging a war against wastes. 6. Will motivate every employee of the company in preserving the environment by providing appropriate training. 7. Will make available a copy of environment policy, under environment Management system on a written request to its manager (Environment & Policy)

VISSION:

Keeping pace with globalization, global trends & the States policy for using technology in every aspect of governance.

Ensuring global presence of Mysore Sandal products while leveraging its unique strengths to take advantage of the current Tech scenario by intelligent & selective diversification.

Secure all assistance & prime status from Government India all Tech alliances.

Further, ensure Karnatakas pre-eminent status as a proponent & provider of Tech services to the world, nation, & private sectors.MISSION:

To serve the National economy.

To attain self-reliance.

To promote purity & quality products

To maintain the Brand loyalty of its customers.

To build upon the reputation of Mysore sandal soap based on pure sandal oil.

OBJECTIVES OF KSDL:

To serve the National economy.

To attain self-reliance.

To promote purity & quality products

To maintain the Brand loyalty of its customers.

To build upon the reputation of Mysore sandal soap based on pure sandal oil.

ORGANISATION STRUCTURE

I. BASIS OF DEPARTMENTATION

KS&DL is a manufacturing concern of moderately large size. We can see here functions wise departmentation. It facilitates effective utilization of manpower and resources and it is a simple, economical and reasonable organization pattern.

II. LEVELS OF ORGANISATION

The organization of KS&DL consists of 4 levels, they are

TOP LEVEL consisting of BODs and M.D

SECOND LEVEL consisting of Directors of Finance and Special officers

THIRD LEVEL consisting of senior managers, deputy managers and officers.

FOURTH LEVEL consisting of clerks, Assistants and Attendees.

III.ORGANIZATION CHART OF KS&DL

KS&DL is Functional type of organization. Under this type of organization men with special abilities in a specialized function are employed. The hierarchy is represented as follows.

ORGANISATION CHART:

EXECUTIVE DIRECTOR (MARKETING)DY. GEN MGR(MTLS & Strs)DY. GEN MGR (FTD) MGR

(MDs Office)MGR (MIS) C S AGM (R & D)GEN. MANAGER (FINANCE)MANAGING DIRECTOR

GEN. MANAGER (R&D/P&M)AGM (HRD)

Obj100

FUNCTIONAL DEPARTMENTS OF KS&DL

1. Human Recourse Department. (HRD).

2. Production & Maintenance Department.( P & M )

3. Marketing Department. ( MKTG )

4. Finance A/c & Audit Department.(Finance)

5. Material & Stores Department (MTLS & Strs).

6. Research & Development (R & D).

7. Foreign Trade (FTD).

8. Quality Control Department.

9. Welfare Department.

1. HUMAN RESOURSE DEPARTMENT:

Luther Gulick highlighted POSDCORB which stands for planning organizing, staffing, Directing, Coordinating, Reporting & Budgeting is the part of personnel management.H R D performs lot of function in KSDL.

1. Recruitment

2. Implementing.

3. Training

4. Cordial relationship of Industry

5. Disciplinary matters

6. Performance appraisal

7. Employee safety etc

2. PRODUCTION DEPARTMENT:

KSDL has 3 main production plants:

i. Fatty Acid Plant

ii. Soap Plant

iii. Detergent Plant

Fatty Acid Plant:

The basic raw materials, Oil & fats undergo the splitting & refining process including hydrogenation at the fatty acid plant. It is also obtained & used for soap making. The plant has a capacity to process 10,000mt of oils 1 fat.

Soap Plant:

The soap plant is one of the largest production plants in the country with an installed capacity of 26,000 tons per annum.KSDLs soap plant has its uniqueness that it has the capacity to process as many as ten different varieties of soap simultaneously. The sophisticated plant from Italy has a wholly integrated straight line facility that links up process sequence for higher productivity.

It is a stream line flow through right from raw material preparation to wrapping stage the line collation with the built in facility for continuous fat bleaching & saponification. The finishing touches are given by high tech universal wrapping machine. This high speed auto wrapper has the capability to handle soaps of virtually all size & shape.

Detergent Plant:

It has installed capacity of 10,000 tons per annum. To produce spray dried, powder & a syntax plant for detergent cakes & bars. It produces industrial detergent which is used in the formulation of wet table pesticide powders for crop protection.

3. MARKETING DEPARTMENT:

The company main products are soaps & detergents which are sold in different parts

of India. There are depots at various places of the country which are controlled by seven

branches. The role of each branch is to ensure that sales activities coming under their control.

ORG: Operational Research Group report main source of marketing research private agency

which study the competitors consumer demand, market etc that generates the report.

BranchDepots

1.BangaloreHubli, Raichur

2.ChennaiChennai, Salem, Madurai, Cochin

3.HydrabadHyderabad, Vijayawade, Ananchapur

4.MumbaiBhiwandi, Ahmedabad, Pune

5.CalcuttaCuttack, Patna, Gauhati

6.DelhiDelhi, Jaipur, Jullundur

Marketing Department Chart Executive Director (Marketing)Dy Gen Manager(Marketing HO)AGM (MKTG) AGM (CFGS) Heads of Branches MGR (LEGAL) MGR (MRIS)

Channel of Distribution:

KSDL manufactures their products i.e. soaps & detergents. after this sent to various distribution points through agents. The stockiest sells to various retailers hence it reaches to the consumers.

Manufacture (KSDL)

Agents

Stockiest (Wholesalers)

Retailer

Consumers

As the company markets their products, it ensures that there is proper description of their product & its distinct features. so that the consumer can be position to understand its components.

Exports:

KSDL export their products to different parts of world they are:

AustraliaItalySri lanka

BerlinKenyaUSA

CanadaMalaysiaJapan

CzechoslovakiaSaudi ArabiaUK

FranceSingaporeTaiwan

GermanyAfricaHolland

Functions of Marketing Department:

1. Marketing Mix : it is the policy adopted by the manufactures to get success in the field of marketing 2. Product Policy: It includes both the turns of development & improvement produced and existing products. This all totally done by KSDL both marketing & R & D department. 3. Distribution Policy: The manufactured product of KSDL is supplier to the factory depots. There are various depot in various states & stored there. 4. Sales & Promotion: The drawback is poor advertising & sales promotion.

5. Packing: Uses different materials for different products, card board boxes synthetic covers. 6. Market Share: The KSDL production strategy is more expensive when compared to other product. At present co, holding market share of 18% in south India & 8% throughout India basis for premium soaps.

4. FINANCE, ACCOUNTS, AUDITING DEPARTMENTS

FINANCE:

It is the life blood of every organization. It is concerned with managerial decision making. This department is concerned with proper utilization of cash. It identifies the source of finance where to borrow i.e. ICICI, IRBI, IDBI, Corporation bank etc.

It has abundant of function which can be enumerated as follows:

Effective funds management which is inverted in beneficial projects.

Decision making regarding fixing of cash account.

Obtaining trade credit.

Profit Maximization.

Wealth Maximization.

Preparation of cash budgets.

Systematic approach to working capital management.

Pricing of raw materials & valuation of stores.

To protect financial interest of the company.

AUDIT DEPARTMENT:

KSDL audit wing is headed by internal auditor. Auditing is vital for the company as it facilitates verifying of all the books of a/c by trial balance, it also comply with requirements for central excise & income tax purposes.After the Auditors monitor everything they give report which is helpful to the

company.

COSTING:

When a company does costing it ensures proper fixation of selling price of the product, cost control it also help in taking decision.KSDL use process costing as the production mechanism is systematic it involves addition of a lot of ingredient in the manufacturing.

5. MATERIAL DEPARTMENT:

Materials are obtained at right time, right quality at right place from right source &at right cost which leads smooth flow of production.

It has been divided into 5 sections:

Oil & fats section

Perfumery & aromatically section

Packing materials section

Chemical section

Miscellaneous & Engineering stores section

Objectives:

Maintaining continuity of flow of materials

Effective control of inventories

Coordination

Growth of the organization

Maintaining ethical organization

6. RESEARCH DEVELOPMENT & QUALITY CONTROL :

KSDL its full fledged quality control & R&D single mindedly pursue quality enhancement. Both departments are headed by highly qualified professionals, committed to developing products that keep place with customers changing needs & perceptive.

When doing Research they have a target which they get benefits & it enables the company to forecast the future.

Aim:

1. Product process development.

2. Product process improvement.

3. Cost reduction

4. Alternative raw materials

5. Slow moving & non moving inventory reduction

6. Technical advice to the management.

Quality plays a very important role in KSDL majority of the products are consumer goods. So it must satisfy the consumer expectation.i. KSDL as 2QC division

ii. Raw material QC division

iii. Production QC division

Objective:

1. To maintain customer satisfaction at optimum level.

2. To retain perfumery content throughout it uses.

3. To maintain standard weight, size &finishing.

4. To improve the existing production

5. To adopt new methods of product development

6. To provide technical support for marketing department

7. To make improvement in the process of production

8. To administer & maintain technical library

7. STORES DEPARTMENT:

KS&DL has well- managed stores department for each of the three divisions viz, soaps, detergent & fatty acid division in the factory, there are separate miscellaneous stores department for raw material, finished goods and tools.

Objectives;

Assuring the availability of raw material at right quantity.

Maintenance of adequate, but not excessive storage of materials at all time.

Maintenance of economical and uninterrupted flow of production activities and finally to ensure minimum blockage.

Achieving maximum efficiency in production and sales with least investment

in inventory.

Types of stores:

Perfumery stores

Chemical stores.

Packing material stores.

Oil & Fats Stores.

Finished goods stores.

In KSDL there are about 8 stores namely:

1. Packing Materials

2. Engineering Goods

3. Perfumery Stores

4. Oil & Fats Stores

5. Detergent finished goods stores

6. Fuel & Serviceable stores

These stores play a great role in maintaining of required stock. It also facilitates maintenance of suitable store organization structure. It monitors the procedures of the receipt. Materials are issued on the basis of FIFO.

8. WELFARE DEPARTMENT:

KSDL welfare department can be classified into 3 sections namely, a) Statutory

b) voluntary

c) Non statutory

a) Statutory :

KSDL welfare association is based on employees contributions, interest carved.

Canteen facility

First aid

Provident Fund

b) Voluntary benefit :

workers education class conducted by the central board

Inspection of fittings

Dust nuisance

Toxic gas nuisance

c) Mutual :

Employees get 2 pair of uniform & a pair of shoes for every year.

Cultural Recreations, Leave facilities.

Employees Co-operative society which give loan on credit

Employees house building society

9. MAINTENANCE DEPARTMENT:

Effective maintenance is the goal of the company. The areas of maintenance are:

Mechanical Maintenance

Electrical Maintenance

Civil Maintenance

Proper maintenance results to:

Reduction of overload

Cost Reduction

Greater Safety of equipment & workers

Delivery schedule is maintained.

This department contributes also working progress of the company

PRODUCT PROFILE

KS&DL is the true inheritor of golden legacy of India. Continuing the tradition of excellence for over eight decades, using only the best East Indian grade Sandalwood oil & Sandalwood soaps in the world. The products produced at KS&DL are the Soaps, Detergents, Agarbathies and Sandalwood oil.

PRODUCT RANGE FROM THE HOUSE OF MYSORE SANDAL SOAP

a. Mysore Sandal Soap(75gm,125gm & 150gm)

b. Mysore Sandal Special Soap(75gm)

c. Mysore Sandal Baby Soap(75gm)

d. Three-In-One Gift Pack (SJR) 3Tabs(150gm Each)

e. Mysore Sandal Gold Soap(125gm)

f. Mysore Rose Soap(100gm)

g. Six-In-One Gift Pack- 6Tabs(150gm Each)

h. Mysore Sandal Gold sixer 6 Tabs(125gm Each)

i. Mysore Sandal Soap Bath Tablet Trio 3nos. (150gm Each)

j. Mysore Sandal Classic Soap(75gm)

k. Mysore Sandal Herbal Care(75gm)

DETERGENTS:

KS&DL also manufactures high quality detergents applying the latest spray drying technology with well balanced formulation of active matters & other builders; they provide

the ultimate washing powder.

1.Sansor Detergent Powder(1kg/2kg)

2.Mysore Detergent Powder(1kg/500gms)

3.Mysore Detergent bar(250gms)

4.Mysore Detergent Cake(125gms/250gms)

AGARBATHIS:

1.Mysore Sandal premium8. Mysore sandal

2.Mysore Rose9. Nagachampa

3.Suprabath10.Mysore Jasmine

4.Parijata11.Bodhisattva

5.Venkateshwar12.Durga

6.Ayyappa13.Alif Laila

7.Chandhana

SANDALWOOD OIL:

In 5ml, 10ml,20ml, 100ml,500ml,2kg,5kg,20kg,and 25kg packing.

POWDERS:

1. Mysore Sandal Talk: Cooling & Healing, Fragrant freshness, Net. Wt 20gm, 60gm, 300gm and 1kg. 2. Mysore Sandal Baby Powder: Tender loving care for baby& Mummy. Net wt 100-400gms.

NEW PRODUCTS LAUNCHED:

1. Wave Turmeric Soap.

2. Wave Hand Wash Liquid Soap.

3. Herbal Care Liquid Soap.

4. Agarbathies Mysore Sandal 3 in 1.

INTRODUCTION TO TOPIC

Marketing deals with identifying the meeting human and social needs. It as a comprehensive term and it includes all resources and a set of activities necessary to direct and facilitate the flow of goods and services from producer to consumer in the process of distribution.The American marketing association offers the following definition; marketing is the process of planning and executing the conception pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goods.

Importance of marketing:

Marketing is recognized as the most significant activity in our society, marketing is all around us. Our delivery existence, our entire economic life our life style are continuously affected by a wide range of marketing activities.

Marketing is a connecting link between the consumer and the producer marketing process brings new & new items to retail shops from where the consumer can have them.

Marketing has achieved social importance because it is entrusted with the task of creation & delivery of standard of living of society.

Marketing facilitates the development of business of creates employment opportunities for people.

Marketing studies continuously consumer demand which is varied and dynamic.

Marketing removes the imbalances of supply by transferring the surplus to deficit areas, through better transfer facilities.

Marketing include all activities in the creation of utilities from places time and possession.

Consumer Behaviour:

Consumer behaviour is defined as all psychological social and physical behaviour of potential customers as they become aware of evaluate, purchase, consumer and tell other about products and services each element of this definition is important.

Buyer behaviour involves both individual (psychological) processes & group (social) process.

Consumer behavior is reflected from awareness right through post purchases.

Consumer behavior includes communication purchasing and consumption behavior.

Importance of consumer behaviour:

The importance of studying consumer behavior is routed deeply in the modern concept through studying the consumer behavior business can help consumer solve their consumption problems by understanding them and trying to analysis the buying process and factors influencing it.

The Emerging buyer movement necessitates market to understanding buyer behavior, their needs aspirations. Expectations and problems it will be useful in exploiting marketing opportunities and meeting challenges of the markets.

The marketing is consumer oriented consumer is the king of the market the marketers must try to offer the product favored by the customer at the price he is to pay through the

distribution channel convenient to him with the right type of promotion to do this a study of buyer behavior is necessary.

Scope of consumer behaviour:

The study of the consumer behavior is the study of how individuals make decision to spend their available resources on the consumption related items. It includes the study of what they buy why they buy it and how after they buy it.

Need For Consumer Behaviour Study:

Each individual has a different reason and motivating factors in his or her choice of tubes the consumer may commit his resources on a particular brand of tubes for reasons of economy. His decision encompasses various repurchased actual purchase and post purchase.

Factors Influencing Consumer Behaviour:

The major factors influencing a consumers buying behavior are:-

1. Cultural factors

2. Social factors

3. Personal factors

4. Psychological factors

1. Cultural Factors;

Cultural factors have the deepest influence on consumer behavior.

Cultural:

Is the most fundamental determinant of all peoples wants and behavior the growing child acquires all sets of value, perception. Preferences and behavior through his or her family and other key institution. It includes value of achievement, success, activity efficiency freedom and progress material comfort.

Sub culture:

Each culture consists of smaller sub culture that provides more specific identification and specialization for their members. Sub culture includes nationality, religion, races, geographical area and social group.

Social Class:

Social class is relatively homogeneous and society is divided hierarchically. All human societies exhibit social satisfaction, stratification sometimes takes from of a caste system where the members of difference castes are record for creation roles and cannot change their caste membership.

2. Social Factor;

Reference group:

A persons reference group that which have a direct or indirect influence on the persons attitude or behavior there are different types of group they are:-

Membership group are those group which have direct influence on the group.

Aspiration group are those group where people like to become a member of that

group.

Dissociate group are those group where people do not like to become the member of that group.

Family is the most important consumer buying organization in the society and it has been researched extensively. Family constitutes a primary reference group.

Roles and states: Roles:

A person participates in many groups family, clubs and organization and this participation in each group can be defined in terms of roles.Status:

It is the esteem or respects given by the society to the society to the role of individual marketers are aware of the status symbol potential of product and brand.3. Personal Factors:

(1) Age:

People by different goods and services over a life time. Infant consumes baby foods, young adults may have variety food and old age people consume special diet food in the later years.

(2) Family life cycle:

Consumption is shaped by family life cycle there are 9 stages of family life cycle depending on financial institution and product interest.

(3) Occupation and Economic Circumstances:

Occupation:-

It also influences a persons consumption pattern. A blue collared worker will

buy work cloths. Shoes lunch box etc. A company president wills expensive suits, air travel and country club membership. Marketers will have to identify which occupational group will be interested in their products and work out marketing strategies to communicate about their product and services.Economic Circumstances:

Product choice is affected by economic circumstances marketers are concerned about the level of spend able income. Savings and assets, debts borrowing power and attitudes towards spending v/s saving.Life Style:

It is the peoples pattern of living and it can be understand by referring to AIO (Activity interest & Opinion)Life style of a person conveys more than the persons social class or personality. An understanding of a persons life style will help in giving a profile of whole persons pattern of living and interacting with the world.

Personality and Self Concept: Personality:Is usually described in terms of such traits as self confidence. Sociality, defensiveness, dominance and adoptability.

Self Concept:

It can be defined as complex mental pictures of us. Self concept consists of mainly three divisions namely.

Actual self concept What you think of yourself

Ideal self Concept What you want others to think about yourself

Other self concept What others actually think about you?

(4) Psychological Factor:

Motivation:

It can be said to be the inner drive that is sufficiently pressing and direct the person to seek the satisfaction of the need satisfaction of the need reduces the felt tension.

Perception:

It is a process by which an individual selects organizes and interprets information inputs to create a meaningful picture of the world.Perception depends not only on the physical stimuli but also on the stimulis relation to the surrounding field and on condition within the individual.

Belief and attitude:

Belief:

A belief is a thought that a person holds about something. People act based on their belief these beliefs help in building up product and brand image.Attitude:

An attitude can be said as persons enduring favorable or unfavorable cognitive evaluation, emotional feeling & action tendencies towards some object or idea.

The Consumer Buying Decision Process

Need Recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post purchase behaviour

Need Recognition:

In this stage first the buyer would recognize the need for a product, which will satisfy particular desire than they would think about his position. He sets the product and his position without that product usually by external or internal stimulus.

Information search:

Once the consumer recognize the need he may or may not search for more information if the need is so intense, the consumer would get should of the particular products which world satisfy the need where as is not so intense, then he simple store the need in his money.Evaluation of alternatives:

In this stage buyer has information about different brand of some production in this process of evaluation.

First:

The consumers see a bundle of attributes in a product then he would pay maximum to these attributes that are connected with his needs.Second:

He would assign weight or importance to each one of the attributes.

Third:

The consumer develops a set of brand belief where each brands stands on each attributes. This may either buy comparing with actual product attributes.

Fourthly and fifthly buyer:

Arises at judgment or preference towards the brand alternatives using same evaluation procedure.

Purchase decision:

Based on evaluation stage the consumer will rank the product of his preference he will then from purchase intention usually he will buy the most preferred product among the several alternatives. Purchase decision is also influenced after considering risks cost involved, that amount of uncertainly about the product attributes etc.

Post purchase decisions: - After purchasing the product the consumer may either he satisfied with the product or dissatisfied. This depends on the relation and the products perceived consumers. If the product matches with the consumers he is highly satisfied the consumers expectation is mostly based on the information he received from the producers and so any exaggeration by the later will mean the consumer will be dissatisfied about the product after the purchase of course.

RESEARCH DESIGN

TITLE OF THE STUDY;

CONSUMER BEHAVIOUR TOWARDS MYSORE SANDAL SOAPS

It draws together concepts, principles, customs needs and preferences of customers.

STATEMENT OF THE PROBLEM;

In the light of liberalization, competition has increased for all consumer products. To with stand competition it is important to understand the behavior of the consumer and satisfy

the target customers needs and wants. In this background the study explores the buying behavior, attitudes, and purchase decision and satisfaction level of consumers towards Mysore Sandal Soaps.

OBJECTIVES OF THE STUDY

The important objectives of the study are as follows:

To study the purchase cycle of Mysore sandal soaps.

To understand how consumers actually make buying decisions.

To know the satisfaction level of consumer towards Mysore sandal soaps.

SCOPE OF THE STUDY

The scope of the study is undertaken for KSDL, in order to find out the consumer behaviour towards Mysore Sandal Soaps. The scope of the study involves only for 100 respondents the time frame for study is only 2 months.Geographical Coverage:

No work can be undertaken without the co-operation of respondents who were interviewed from which data was collected through questionnaire. Therefore respondents play a very important role in this type study. The study was conducted in Bangalore city. By areas from which data was collected and respondents approaches are mainly in:

Yeshawanthapur, Rajajinagar, Malleshwaram, Mahalakshimi layout, Nandini layout JP Nagar and Gandhi nagar.

LIMITATION OF THE STUDY

1. Limited number of respondents i.e. 300

2. Survey is confined for a period of two months.

METHODOLOGY OF THE STUDY

The following are the sources of data for the study:

a) Primary Sources

b) Secondary Sources

a) Primary Sources: The original sources from which the researcher directly collects data that have not been previously collected. The first hand information collected through various methods is explained as under:Personal interviews

Questionnaire

Interview Method: Officers of the marketing department and other department concerned with the promotion activities of the organization were interviewed to obtain first hand information.Questionnaire Method: This questionnaire consists of question for consumers which included multiple choice questions, in order to get first hand information directly from the end users.

b) Secondary Sources: Refers to the existing available sources of information such as:

Documents of the departments concerned

Reference books

Internet

Research approach:

This includes the approaches or the ways undertaken to collect the primary data. Here the approach was made through survey research, this helped to learn about customers knowledge, beliefs, preferences in buying decision.

Research Instrument:

The following is the instrument with the help of which the data is collected: In this regard, the data was collected through Questionnaire.

Hypothesis

Testing of hypothesis deals with the verification of validity of the presumptions regarding the parameters of the population using samples drawn from the population.

A statistical hypothesis is an assertion regarding the statistical distribution of the population. It is a statement regarding the parameters of the population.

There are two hypotheses

Null hypothesis

The hypothesis, which is being tested for the possible rejection, is called null hypothesis. It is denoted by H0.(Ho) : Less than or equal to 70% people feel that the quality of Mysore sandal is not good.

Alternative hypothesis

The hypothesis, which is accepted when the null hypothesis is rejected, is called as the alternative hypothesis. It is denoted by H1(H1) : More than 70% people feel that quality of Mysore sandal is good.

Statistical tool:

The statistical tool used for measuring & analyzing data is survey analysis. And it is analyzed by using pie chart, bar chart and hypothesis test.

Sampling plan:

Sampling Unit:

Here the sampling units are mainly the final consumers.

Sample Size:

The sample size was 300 respondents.

Sampling procedure/ method:

The sampling method used was Convenient Probability Sampling

DATA ANALYSIS AND INTERPRETATION

3. Gender:Male:Female:

Cumulative

FrequencyPercentValid PercentPercent

ValidMale14247.347.347.3

Female15852.752.7100.0

Total300100.0100.0

Interpretation:

The above table shows that 47% of the consumers are Male and 53% of the consumers Female. it is clear that the female consumers are more than the male consumers. Hence female buyers are more.

4.Marital Status:Married:Unmarried:

Cumulative


ValidMarried10334.334.334.3

Unmarried19765.765.7100.0

Total300100.0100.0

Interpretation:

The above table shows that 34% of the consumers are married and 66% of the consumers are unmarried. So it is clear that the Unmarried consumers are more than the married consumers.

5. Occupation:a) Employeeb) Professional

c) Businessd) Others

Occupation

Cumulative


ValidEmployee9130.330.330.3

Professional4715.715.746.0

Business5317.717.763.7

Others10936.336.3100.0

Total300100.0100.0

Interpretation:

From the table it is clear that 30% consumers are Employee, 16% of the consumers are Professional, 18% Business. And 36% of the consumers are others. Majority of the consumers are others.

6. Age group

a) Below 20 yearsb) 20-30 years

c) 30-40 yearsd) 40-50 years

e) Above 50 years

Cumulative


Valid Below 20 years268.78.78.7

20-30 years13244.044.052.7

30-40 years5317.717.770.3

40-50 years4214.014.084.3

Above 50 years4715.715.7100.0

Total300100.0100.0

Interpretation:

The Above Table Shows That 9% Of The consumers Are From Age Group Of Below 20 Years, 44% Are From Age Group Of 20-30 Years, 18% From Age Group Of 30-40 years, 14% From Age Group Of 40-50 years and 16% From Age Group Of above 50 years and it can be inferred that majority of the consumers belong to the age group of 20-30 years.

5. Monthly Income:

a) Less than 10,000b) 10,000 15,000

c) 15,000 20,000d) 25,000 & above

Cumulative


ValidLess than 10,00010735.735.735.7

10,000-15,0005819.319.355.0

15,000-20,0008729.029.084.0

25,000 & above4816.016.0100.0

Total300100.0100.0

Interpretation:

The above table shows that 36% of the consumers are belonging to the income group Less than 10,000/- per month,19% of the people are 10,00015,000, 29% of the consumers are belonging to the income group 15,000-20,000 and 16% of the consumers are 25,000/- and above income group. it is clear that a larger number of consumers belonged to the income group less than10000 and 15000 to 20000.

6. Number of Family members:

a) 1 2b) 3 4

c) 5 6d) 7 & above

Cumulative


Valid1-26321.021.021.0

3-415351.051.072.0

5-65919.719.791.7

7 & above258.38.3100.0

Total300100.0100.0

Interpretation:

The 21% of the consumers are 1-2 members in family, 51% of the consumers are belonging to 3-4 members in family, 20% of the consumers are 5-6 members in family and finally 9% of the consumers are 7 and above members in family. the table is showing that majority of the consumers have 1-2 and 3-4 members in family.

7. How often do you buy bath soaps?

a) Once in 15 daysb) Once in a month

c) Once in 2 months

Cumulative


ValidOnce in 15 days13745.745.745.7

Once in a month10936.336.382.0

Once in 2 months5418.018.0100.0

Total300100.0100.0

Interpretation:

The table shows that 46% of consumers buy bath soap once in 15 days, 36% of consumers buy once in a month and 18% of consumers buy once in a 2 months. from The Analysis of table it is clear that Most consumers Buy once in 15 days & once in a Month.

8. Which kind of soap do you generally use?

a) Chemicalb) Herbal/Ayurvedic

c) Others (please Specify)

Cumulative


ValidChemical8929.729.729.7

Herbal/Ayurvedic16354.354.384.0

Others4816.016.0100.0

Total300100.0100.0

Interpretation:

30% of the consumers are used chemical kind of soap and 54% of the consumers are used Herbal/Ayurvedic kind of soap and 16% of the consumers are used other kind of soap like Lux, Dove etc. From The Analysis of table it is clear that Most consumers are using the chemical and Herbal/Ayurvedic kind of soap.

9. Do you use Mysore Sandal Soap?

a) Yesb) No

Cumulative


ValidYes25384.384.384.3

No4715.715.7100.0

Total300100.0100.0

Interpretation:

The above table shows that 84% of the consumers are using Mysore Sandal Soap and 16% of the consumers are not using Mysore Sandal Soap. From the table it is clear that the 84% consumers are more using. Hence Mysore Sandal Soap buyers are more.

10. If no, have you ever used Mysore Sandal Soap?

a) Yesb) No

Cumulative


ValidYes3880.980.980.9

No919.119.1100.0

Total47100.0100.0

Interpretation:

The above table shows that 81% of the consumers have previously used Mysore Sandal Soap and only 19% of the consumers did not used Mysore Sandal Soap.

11. How many people in your family are using Mysore Sandal Soap?

a) 1 2b) 3 4

c) 5 6d) More than 6

Cumulative


Valid1-29637.937.937.9

3-410742.342.380.2

5-63313.013.093.3

More than 6176.76.7100.0

Total253100.0100.0

Interpretation:

In case of 38% consumers up to 1-2 members in their family use Mysore sandal soap, 42% consumers up to 3-4 members in the family use Mysore sandal soap, In case of 13% consumers like 5-6 members & 7% consumers more than 6 members use Mysore sandal soap. In majority of case up to1-2 members and 3-4 members are using Mysore sandal soap.

12. State the reasons for using Mysore Sandal Soap?

a) Qualityb) Goodness of Sandal Oil

c)Packaged) Fragrance

e) Brand Image

Cumulative


ValidQuality10340.740.740.7

Goodness of sandal oil9437.237.277.9

Package124.74.782.6

Fragrance239.19.191.7

Brand Image218.38.3100.0

Total253100.0100.0

Interpretation:

41% of the consumers buy for Quality of the product, 37% Goodness of sandal oil, 9% of the consumers buy for Fragrance and 8% and 5% of the consumers buy for Brand & Packaging of the product. Here majority of consumers are using Mysore Sandal soap because goodness of sandal oil and quality of the product.

13. What is your opinion regarding the price of Mysore Sandal Soap?

a) Lowb) Reasonable

c) Highd) Very High

Cumulative


ValidLow176.76.76.7

Reasonable12348.648.655.3

High8935.235.290.5

Very High249.59.5100.0

Total253100.0100.0

Interpretation:

7% of consumers feel that price of Mysore sandal soap is low. 49% of consumers feel it is reasonable. While 36% of the consumers feel that the price is high and 10% feel it is very high. It can be inferred that the price of Mysore sandal soap is felt reasonable by a majority consumers.

14. How do you rate the quality of Mysore Sandal Soap?

a) Excellentb) Good

c) Satisfactoryd) Poor

Cumulative


ValidExcellent9437.237.237.2

Good10240.340.377.5

Satisfactory5421.321.398.8

Poor31.21.2100.0

Total253100.0100.0

Interpretation:

37% of consumers say that the quality of Mysore sandal soap is excellent, and 40% of consumers feel the quality good, 21% of consumers feel the quality is satisfactory and 1% consumer say that the quality is poor. From the analysis of table it is clear that the majority of consumers are excellent and good with quality.

15. Who influenced you to purchase Mysore Sandal Soap?

a) Friends/Familyb) Shop keeper

c) Advertising / publicityd) others (please specify)

Cumulative


ValidFamily/Friends15862.562.562.5

Shop keeper31.21.263.6

Advertising/Publicity7429.229.292.9

Others187.17.1100.0

Total253100.0100.0

Interpretation:

From the above table it is clear that 63% of the consumers are influenced by Family/Friends, 1% consumers influenced by shop keeper, 29% of the consumers are influenced by Advertising/Publicity and 7% of the consumers are influenced by others. The majority of the consumers are influenced by Friends/Family and Advertising/Publicity also as a leading role in influencing consumers.

16. Where do you prefer to buy Mysore Sandal Soap?

a) Retailerb) Super market

c) Factory outletd) others (please specify)

Cumulative


ValidRetailer11344.744.744.7

Super market4317.017.061.7

Factory outlet7830.830.892.5

Others197.57.5100.0

Total253100.0100.0

Interpretation:

45% of the consumers are buy the product in retailer shop, 17% of consumers are buy the product in super market and 31% of consumers and buy the product in factory outlet. And 8% of consumers are buying the product from others. Like big bazaar etc. The majority consumers buy the product in Retailer shop and there are also consumers preferring to buy from Factory outlet.

TESTING OF HYPOTHESES


a) Excellentb) Good

c) Satisfactoryd) Poor

(H1) : More than 70% people feel that quality of Mysore sandal is good.

(Ho) : Less than or equal to 70% people feel that the quality of Mysore sandal is not good.

Determination of Standard error of proportion

P = Proportion stated in Ho =0.7 n = sample size=253

=

=

P1-Pn-1

0.71-0.7253-1

0.028

Testing At 5% level of significance

Critical Value=P+Z=0.05* p

=0.7+ (1.96)*0.028

=0.754

Test Statistics(p)=196

253

=0.774

Graph:

Interpretation:

Since Test Statistics p=0.774 is greater than critical value 0.754, & test statistics falls in rejection region, hence we do not accept H0Therefore we accept H1 i.e. more than 70% people feel that quality of Mysore Sandal Soap is good.

FINDINGS

1. 46% of consumers buy bath soap once in 15 days, 36% of consumers buy once in a month and 18% of consumers buy once in a 2 months. 2. 38% and 42% of the consumers using Mysore sandal soap belongs to family

having to 1-2 members and 3-4 members in their family respectively.

3. 41% and 37% of the consumers buy for Quality & Goodness of sandalwood oil of the product. 4. 49% of the consumers feel that product is priced at reasonable rate but 36% of the consumers feel that the price is high. 5. 37% of consumers say that the quality of Mysore sandal soap is excellent, and 40% of consumers feel the quality good. from the hypothesis calculation it is found that the test statistical value is(0.774) greater than critical value(0.754) & test statistics falls in rejection region, hence we do not accept H0

6. 63% of the consumers are influenced by Family/Friends, 29% of the consumers are influenced by Advertising/Publicity. 7. 45% of the consumers are buy the product in retailer shop and 17% of consumers are buy the product in super market and 31% of consumers and buy the product in factory outlet.

SUGGESTIONS

1. The company should motivate its present consumers to increase the usage rate of the soap through effective advertisements. 2. The company should develop effective marketing strategies to create awareness in untapped market. 3. The company should reduce the price in respect of their rival who keeps the prices as competitive as possible. 4. The soap should be making available to all the purchase points wherever the consumer can buy the product. 5. KSDL should promote their factory outlets.

6. Most of the consumers belong to the age group of 20 30, so there is a need to concentrate on the other customers who belong to other age group.

CONCLUSION

It can be concluded that the various influencing factors responsible for the purchase of the Mysore Sandal Soaps are, family/friends, advertising & others. It can also be concluded that the consumers have chosen Mysore Sandal Soaps and keeping in the mind the goodness of sandal oil, brand name and also the companys image. Most of the consumers are satisfied with quality and also there is a delight to the customers to suggest their product to others.

The study has also helped me to gain good amount of knowledge and has also exposed me to the industrial environment.

BIBLIOGRAPHY

1.Marketing management:Philip Kotler.

2.Consumer behavior:Leon G. Sahiffman and &

Lesiz Lazer Kanuk

3.Marketing Research:Donald S. Tull

Del I. Hawkins

Website:www.ksdl.com

ANNEXURE

QUESTIONNAIRE

PERSONAL DETAILS

Name: __________________________________________

Address: __________________________________________

__________________________________________

Phone No.:

1.Gender:Male:Female:

2.Marital Status:Married:Unmarried:

3.Occupation:a) Employeeb) Professional

4. Age group:c) Businessd) Others

a) Below 20 yearsb) 20-30 years

c) 30-40 yearsd) 40-50 years

5.Monthly Income:e) Above 50 years

a) Less than 10,000b) 10,000 15,000

c) 15,000 20,000d) 25,000 & above

6. Number of Family members:

a) 1 2b) 3 4

ABOUT THE SOAPc) 5 6d) 7 & above

How often do you buy bath soaps?

7.

a) Once in 15 daysb) Once in a monthc) Once in 2 months

8. Which kind of soap do you generally use?

a) Chemicalb) Herbal/Ayurvedicc) Others (please Specify)

9. Do you use Mysore Sandal Soap? a) Yesb) NoIf yes, please go to question no. 1310. If no, have you ever used Mysore Sandal Soap?

a) Yesb) No

11. If yes, why do not prefer to use it on regular basis?________________________________________________________________________

__

________________________________________________________________________

__

12. If no, are there any specific reason for not trying Mysore Sandal Soap? _______________________________________________________________________

__

_______________________________________________________________________

__

13. How many people in your family are using Mysore Sandal Soap?

a) 1 2b) 3 4

c) 5 6d) More than 6

14. State the reasons for using Mysore Sandal Soap?

a) Quality c) Fragrance

b) Goodness of Sandal Oil

d) Brand Image

e) Package

15. What is your opinion regarding the price of Mysore Sandal Soap?

a) Lowb) Reasonablec) Highd) Very High


a) Excellentb) Goodc) Satisfactoryd) Poor

17. Who influenced you to purchase Mysore Sandal Soap?

a) Friends/Familyb) Shop keeperc) Advertising / publicityd) others (please specify)

18. Where do you prefer to buy Mysore Sandal Soap?

a) Retailerb) Super marketc) Factory outletd) others (please specify)

THANK YOU FOR YOUR VALUABLE TIME & CO-OPERATION