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CHAPTER 1

INTRODUCTION

The particular study was under taken for jyothi laboratories ltd. The study

contains the primary objective To know the preferences of xo dish wash bar.to conduct

the study the target were taken as consumers.

Area of the study is taken as the urban areas of Trissur district. Research design used for

this study is descriptive in nature and the sampling used is convenient sampling. From

the analysis it is found that exo brand has good awareness among the consumers. But

few are not satisfied with the quality and price of the product.

Finally the study ends with certain recommendations.

INTRODUCTION TO CONSUMER PREFERENCE

The underlying foundation of demand, therefore, is a model of

how consumers behave. The individual consumer has a set of preferences and values

whose determination is outside the realm of economics. They are no doubt dependent

upon culture, education, and individual tastes, among a plethora of other factors. The

measure of these values in this model for a particular good is in terms of the real

opportunity cost to the consumer who purchases and consumes the good. If an

individual purchases a particular good, then the opportunity cost of that purchase is the

forgone goods the consumer could have bought instead. We develop a model in which

we map or graphically derive consumer preferences. These are measured in terms of the

level of satisfaction the consumer obtains from consuming various combinations or

bundles of goods. The consumers objective is to choose the bundle of goods which

provides the greatest level of satisfaction as they the consumer define it. But consumers


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are very much constrained in their choices. These constraints are defined by the

consumers income, and the prices the consumer pays for the goods.

We will formally present the model of consumer choice. As we go along, we will

establish a vocabulary in order to explain the model. Development of the model will be

in three stages. After a formal statement of the consumers objectives, we will map the

consumers preferences. Secondly, we present the consumers budget constraint; and

lastly, combine the two in order to examine the consumers choices of goods.

THE THEORY OF THE CONSUMER

Consumer make decisions by allocating their scarce income across

all possible goods in order to obtain the greatest satisfaction. Formally, we say that

consumers maximize their utility subject to budget constraint. Utility is defined as the

satisfaction that a consumer derives from the consumption of a good. As noted above,

utilitys determinants are decided by a host of noneconomic factors. Consumer value is

measured in terms of the relative utilities between goods. These reflect the consumers

preferences. Theory of Consumer Preferences Consumer preferences are defined as the

subjective (individual) tastes, as measured by utility, of various bundles of goods. They

permit the consumer to rank these bundles of goods according tothe levels of utility they

give the consumer. Note that preferences are independent of income and prices. Ability

to purchase goods does not determine a consumers likes or dislikes. One can have a

preference for Porsches over Fords but only have the financial means to drive a Ford.

Ineconomics, the consumer's preferences, money income and prices play an important

role in solving the consumer's optimization problem (maximization of theutilitysubjectto a budget constraint). The income effect ineconomicscan be defined as the change in

consumption resulting from a change in real income. Thecomparative staticsof

consumer behavior investigates the effects of changes in the exogenous or independent

variables i.e. prices and money incomes of the consumers on the equilibrium values of

the endogenous or dependent variables i.e. the consumer's demand for goods. When the

income of the consumer rises with the prices held constant, the optimal bundle chosen

by the consumer changes as the feasible set available to him changes. The incomeconsumption curve is the set of optimal points of intersection of the points of tangency
http://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Comparative_staticshttp://en.wikipedia.org/wiki/Comparative_staticshttp://en.wikipedia.org/wiki/Comparative_staticshttp://en.wikipedia.org/wiki/Comparative_staticshttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Utilityhttp://en.wikipedia.org/wiki/Economics


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of the sets of budget constraint lines and indifference curves as income varies, with

prices held constant.

In recent years the internet has been used to conclude more and more sales

Contracts. Consumers can find billions of products in the internet. There are Product

recommender systems for a lot of different product types to help finding Products which

fits the preferences of consumers.

Major recommender systems can be divided into two categories, collaborative-based and

content-based While collaborative-based Recommender systems suggest products which

are bought by consumers with Similar preferences, content-based recommender systems try

to find products Based on syntactic properties of the products Some authors also define a

third category which consists of that recommender Systems which are using both

approaches.

However, preference measurement is vital for all product recommender systems. The

preferences will either be compared to those of other consumers or to product

descriptions. In recent decades there has been research of preference measurement in the

context of consumer behaviour. In 1967 Fishburn reported on 24 methods to measure

consumer preferences (Fishburn, 1967). Besides early self-explicated approaches and

the conjoint analysis, there was a dozen of hybrid approaches which have been

developed and applied (Wittink and Cattin, 1989; Sattler and Hensel-Boerner, 2007). It

is obvious that these approaches should be applied I product recommender systems. But

considering current systems, self-explicated approaches are implemented merely

(Guttman, 1998; Chun and Hong, 2001; Choi et al., 2006; Cao and Li, 2007), the

conjoint analysis is not implemented at all. Due to their high predictive validity conjoint

analysis and hybrid approaches would be more suitable for product recommendersystems. In this paper we briefly introduce and discuss the conjoint analysis as a method

to measure consumer preferences for product recommender systems. The paper is

organised as follows. In section 2 we briefly introduce the conjoint analysis. In section 3

we discuss the challenges and limits arising in applying conjoint analysis to product

recommender systems. Some suggestions how to handle these challenges and limits are

depicted in each subsection. We conclude the paper in section 4 reflecting on open

research tasks


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Preferences are the desires by each individual for the

consumption of goods and services that translate into choices based on income

orwealthfor purchases of goods and services to be combined with the consumer's timeto define consumption activities. Consumption is separated from production, logically,

because two different consumers are involved. In the first case consumption is by the

primary individual; in the second case, a producer might make something that he would

not consume himself. Therefore, different motivations and abilities are involved. The

models that make up consumer theory are used torepresentprospectively observable

demand patterns for an individual buyer on thehypothesisof constrained optimization.

Prominent variables used to explain the rate at which the good is purchased (demanded)are the price per unit of that good, prices of related goods, and wealth of the consumer.

The fundamental theorem of demand states that the rate of

consumption falls as the price of the good rises. This is called the substitution effect.

Clearly if one does not have enough money to pay the price then they cannot buy any of

that item. As prices rise, consumers will substitute away from higher priced goods and

services, choosing less costly alternatives. Subsequently, as the wealth of the individual

rises, demand increases, shifting the demand curve higher at all rates of consumption.

This is called the income effect. As wealth rises, consumers will substitute away from

less costly inferior goods and services, choosing higher priced alternatives

www.edumate.com

www.google.com
http://en.wikipedia.org/wiki/Wealth#Economic_analysishttp://en.wikipedia.org/wiki/Wealth#Economic_analysishttp://en.wikipedia.org/wiki/Wealth#Economic_analysishttp://en.wikipedia.org/wiki/Mathematical_problemhttp://en.wikipedia.org/wiki/Mathematical_problemhttp://en.wikipedia.org/wiki/Mathematical_problemhttp://en.wikipedia.org/wiki/Hypothesishttp://en.wikipedia.org/wiki/Hypothesishttp://en.wikipedia.org/wiki/Hypothesishttp://en.wikipedia.org/wiki/Hypothesishttp://en.wikipedia.org/wiki/Mathematical_problemhttp://en.wikipedia.org/wiki/Wealth#Economic_analysis


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COMPANY PROFILE

Jyothy laboratories came into being in 1983, powered by the vision

of one man M P Ramachandran the current chairman &managing director, started as

multi brand Product Company with operations all over the nation. Distributed

The company has the distinction of making a mark in the virtually nonexistent category

of liquid fabric whitener .the products are reasonably priced, conveniently packaged.

Extensively

Distributed and supported by strategic communication, Jyothi laboratories limited has

well and truly earned its place in the market as well as in the mind of millions of

households in India.

Today Jyothi laboratories limited has a pan Indian presence with brands catering to the

needs of consumers across the length and breadth of the nation .from a fledging entity

that embarked to

Translate the dream to make a difference ,from starting operations with corpus of INR

400 crores ,Jyothi laboratories ltd has come a long way.jyothi laboratories ltd is surging

ahead to keep its tryst with founding ideals untapped markets, innovative products

&cater to the common man .Jyothi laboratories through its market analysis looks out for

a vacuum that can be filled.

The genesis of the organization has been a defining moment in our journey. Jyothy

Laboratories Limited has ensured that the founding principles remain as relevant as they

did a quarter of ago.

In keeping with the tenet of offering a solution rather than a mere product, Jyothy

Laboratories Limited has consciously ventured into product categories that provide

simple but tangible benefits to consumers through a portfolio of value for money brands.

Starting from the momentous launch of Ujalacarving out a new product category ofliquid fabric whitener - Jyothy Laboratories Limited today manufactures and distributes


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brands across product categories as diverse as Fabric Care, Household Insecticide,

Utensil Cleaners, Fragrances, Personal Care, besides marketing tea and coffee brands.

At Jyothy Laboratories Limited, we are convinced that

organizational goals can be achieved only through teams that are passionate and

committed - our employees are the key to our success.

Jyothy Laboratories Ltd is an India-based company. The company is principally

engaged in manufacturing and marketing of fabric whiteners, soaps, detergents,

mosquito coils and incense sticks. They operate in two segments: Soaps & Detergents

and Home Care. Soaps & Detergents include fabric whiteners, fabric detergents, dish

wash bar and soaps including ayurvedic soaps and Home Care products include

incense sticks, dhoop and mosquito coils and scrubber, it also include tea and coffee.

The company is headquartered in Mumbai. The company has 28 manufacturing

facilities across 15 locations, Trichur, Wynad, Roorkee, Pondicherry, Bangalore,

Chennai, Hyderabad, Bhubaneshwar, Bankura, Guwahati, Baddi, Silvassa, Salem,

Jammu and Pithampur. Most of their units are ISO 9001 and ISO 14000 certified units.

The company exports their products to 14 countries including Sri Lanka, Bangladesh,

Mauritius, Malaysia, UAE, Hong Kong and Saudi Arabia. Jyothy Laboratories Ltd was

incorporated on January 15, 1992 as a private limited company with the name Jyothi

Laboratories Pvt Ltd. The company was originally started as a proprietary concern in

Kerala by M P Ramachandran. In the year 1992, the company commissioned factory in

Chennai to make Ujala. In the year 1994, they commissioned a plant in Pondicherry,

their first in a backward area utilizing Government incentives. In the year 1995, the

company launched Nebula, an oil-based antibacterial washing soap in Kerala. In

October 6, 1995, the company became a public limited company and the name was

changed to Jyothi Laboratories Ltd. In August 12, 1996, they further changed theirname to Jyothy Laboratories Ltd. In the year 1997, they launched Ujala all over India.

In the year 2000, the company launched Maxo (mosquito repellent) in the state of West

Bengal. Also, they launched Exo, an antibacterial dish water bar in Kerala. Later, they

launched Exo across Karnataka, Tamil Nadu and Andhra Pradesh. In the year 2001, the

company acquired detergents plant at Pithampur, Madhya Pradesh from Tate

Chemicals Ltd. They launched Vanmala washing soap in Kerala and Maya incense

sticks in selected states. In the year 2002, the company acquired Sri Sai Homecare Pvt


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Ltd, which has a mosquito coil production facility in Hyderabad. Thus, Sri Sai

Homecare Pvt Ltd became a subsidiary company. Also, the company launched Jeeva

Ayurvedic Soap in the market. In the year 2005, the company launched Exo Liquid and

Ujala Stiff & Shine in South India. During the year 2006-07, the company startedmarketing and distributing coffee products under the brand name 'Continental Speciale'

in a joint venture with CCL Products (India) Ltd. They acquired trademark and

copyright for the brand 'More Light' and 'Ruby'. Also, they launched extensions in the

household insecticide segment under the brand name 'Maxo' - Liquid and Aerosol. In

November 2006, the company established a 50:50 joint venture company with Shobha

Kapoor and Ekta Kapoor, namely Balaji Telebrands Ltd for marketing and distribution

of Ekta's 'Karyasiddhi Graha Shanti Dhoops'. During the year 2007-08, the company

commenced production in new manufacturing facilities at Jammu in Jammu &

Kashmir for making mosquito repellent coils, Roorkee in Uttarakhand for making

Ujala fabric whitener and Baddi in Himachal Pradesh for Ujala Stiff and Shine. In

March 2008, they launched Ujala Stiff & Shine all over India. During the year 2008-

09, the company forayed into service sector through new venture 'Jyothy Fabricare

Services Ltd', a subsidiary company for providing world class laundry at affordable

price at consumer doorstep. They launched Jyothy Fabric Care Services Ltd and Fabric

Spa. They launched Exo Dish wash liquid in all southern states and Exo Floor Shine

products in the State of Kerala. In April 2009, the company commenced full scale

production of mosquito repellent coils in their Jammu unit. In October 2009, they

expanded Exo dishwashing line from South India to Pan India. In November 2009,

they launched fabric Spa at Bangalore. Also, the company bought technology DEPA, a

repellent formulation for protection from all blood sucking insects and mosquitos from

DRDO. In February 2010, they launched multi insect repellant in collaboration with

prominent division of Defence Research and Development Establishment. The

company has proposed to amalgamate Sri Sai Homecare Products Pvt Ltd, a wholly-

owned subsidiary company with the company with effect from April 1, 2010. They

have planned brand extension to take Ujala detergent to other states in a phased

manner. The company is in talks with West Bengal-based detergents and allied

products company Safechem Industries to buy their flagship laundry detergent brand,

Safed. The company is looking to buy two fabric whitener brands for up to Rs. 2.50

billion by the end of December.


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WORK CULTURE

Hence, our Human Resource philosophy strongly hinges on the credo that people are the

organizations major asset and that together they will create & sustain vibrancy. Our HR

polices and practices are contemporary and these are based on fairness, openness and

mutual respect.

While the highest levels of professional ethics, personal decorum, adherence to

deadlines, compliance to standards and customer service are indispensable attributes, a

great deal of significance is attached to

Accountability

Integrity

Commitment

Initiative

Positive Attitude

At Jyothy Laboratories Limited, we value people who are keen on giving shape and

structure to ideas and who can create a fusion of talent, attitude and excellence. If the

opportunity of making a difference excites you, this is the place to discover how you can

make that difference.

R&D INITIATIVE

Jyothy Laboratories Limited owes its genesis to an unflinching faith in the power of

innovation. This urge to innovate has found expression in every product category, brand

and operation in the organization.


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Driving and sustaining innovation is critical to addressing the need to offer value for

money brands and ensure customer delight. Jyothy Laboratories Limited accords great

importance to the role of Research & Development as a key enabler in this process.

The R & D center offers state-of-the-art facilities and is well equipped to cater to the

needs of research for each of our Business Divisions. The ISO 14001 certified facility is

fully geared to pursue sustained experimentation and product development. The R & D

facility is powered by a qualified and skilled talent pool of professionals who bring to

the table, years of experience in their respective domains.

The impressive portfolio brands bears testimony to the sustained and systematic R & D

initiatives pursued by Jyothy Laboratories Limited. Besides offering tangible benefits to

the consumer, the R & D drive empowers our passion to come up with unique

formulations, varied product offerings and above all, provides all these to consumers at

affordable price point

DISTRIBUTION NETWORK

In keeping with objective of reaching out to every Indian

household, we have ensured that our brands touch the daily lives of people across the

country.

This objective is translated on the ground through the formidable distribution network of

Jyothy Laboratories Limited covering even far flung hamlets that dot the remotest

corners of this vast nation.

At Jyothy Laboratories Limited, we act clear understanding of

the consumer and the market that we serve. Quite naturally, our distribution strategy isattuned to the dynamics of catering to different types of markets in diverse


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locations. Thus, there is a high level of customization of the distribution channel

depending on the nature of the market and the specific geography that we operate in.

The deep insights garnered from the grassroots, focused sales & marketing strategies

and persistent efforts have resulted in higher penetration, increased sales and delighted

customers. A large field force with over 1500 sales personnel and a network of over

2500 distributors ensure a direct reach of over 1 million retail outlets and an indirect

reach of over 1.5 million retail outlets.

MANUFACTURING FACILITIES

Jyothy Laboratories Limited has a well-oiled framework to manufacture and roll out

brands across various product categories.

Besides separate plants for manufacturing the entire product range, the company also has

infrastructure for Machine Design & Manufacture, to cater to in-house productionrequirements.

Jyothy Laboratories Limited has a battery of 21 modern manufacturing units at 14

locations across the country. While these units have been established at strategic

locations, to capitalize on the facilities offered by the Government, many of these units

by virtue of being located in the hinterland, also offer employment opportunities and a

fillip to economic development in the area. Besides, the micro-economic benefits areexcellent logistical advantages, elimination of rise of labour unrest in any location,

regional political unrest, transport strike etc and ensuring minimum deployment of

working capital.

All manufacturing facilities and personnel are sensitized to ensure minimal wastage,

promote environmental conservation and maintain high quality standards.


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The genesis of the organization has been a defining moment in our journey. Jyothy

Laboratories Limited has ensured that the founding principles remain as relevant as they

did a quarter of a century ago.

In keeping with the tenet of offering a solution rather than a mere product, Jyothy

Laboratories Limited has consciously ventured into product categories that provide

simple but tangible benefits to consumers through a portfolio of value for money brands.

Starting from the momentous launch of Ujalacarving out a new product category of

liquid fabric whitener - Jyothy Laboratories Limited today manufactures and distributes

brands across product categories as diverse as Fabric Care, Household Insecticide,

Utensil Cleaners, Fragrances, Personal Care, besides marketing tea and coffee brands.

At Jyothy Laboratories Limited, we act on key insights from consumers, marketresearch and sustained in-house analytical processes. Combined with continuous research

& development, these insights help us in offering innovative products while

ensuring enhanced value from existing brands.

In addition to our own brands, Jyothy Laboratories Limited has ventured

into the business of coffee, tea and spiritual / astrological dhoops . The company has also

inked a MoU to establish a joint venture in Bangladesh to manufacture and market Ujala

and Maxo.

Incisive insights into consumer preferences, market dynamics and distribution, winning

marketing strategies and focused product positioning, combined with sustained R & D

have ensured expansion of the product portfolio and consistent growth.

The fact that each brand from the Jyothy portfolio makes a positive difference to the

lives of millions is our greatest inspirationegging us to do more.


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At Jyothy Laboratories Limited, we act on key insights from consumers, market research

and sustained in-house analytical processes. Combined with continuous research &

development, these insights help us in offering innovative products while ensuring

enhanced value from existing brands.

In addition to our own brands, Jyothy Laboratories Limited has ventured into the

business of coffee, tea and spiritual / astrological dhoops. The company has also inked a

Moue to establish a joint venture in Bangladesh to manufacture and market Ujala and

Maxo.

Incisive insights into consumer preferences, market dynamics

and distribution, winning marketing strategies and focused product positioning,

combined with sustained R & D have ensured expansion of the product portfolio and

consistent growth.

The fact that each brand from the Jyothy portfolio makes a positive difference to the

lives of millions is our greatest inspirationegging us to do more.

Vision

Develop innovative brands, tap high growth categories, reach untapped markets and

explore untapped segments to meet the day-to-day requirements of every Indian

household.

Mission

Provide brands that denote superior quality, to touch and positively impact the daily

lives of consumers. To ensure that our brands, business operations and corporate policies

translate the core philosophy of offering value for the money spent to experience our

products. Ensure that our people, processes and products reflect the ideals of integrity,ethics and professionalism.


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INDUSTRY PROFILE

Indian kitchens boast a range of utensils. There are pots and pans of all shapes and sizes

some reserved for particular foods e.g. separate vessels to boil milk, for frying, for non-

vegetarian foods plus crockery and cutlery. Kitchenware is made from different

materials- aluminium, steel, anodised steel, silver, plastic, glass, copper,pital and silver

utensils are used for special occasions. Gadgets like mixer/grinder jars, blades of

blenders etc also must be cleaned. Food is cooked on gas, microwave oven, in some

areas on a kerosene or wood fired stove or on a barbeque. Besides the insides, even theoutside surface of a vessel gets burnt and needs cleaning.

Each type of utensil has its own peculiarities- some stain easily, some burn easily,

cutlery tends to remain greasy and those with convoluted shapes tend to retain food

particles in crevices. All need special attention and often each needs a different cleaning

agent.

The plethora of products incorporate the cleaning powers of vinegar or lime, some claim

to be gentle on the hands and some now claim to 'fight bacteria.' Yet most ads focus on

the burntkadhai. There seems to be no distinction about which powder/liquid/bar is more

suitable for which type of cleaning.

So the homemaker has to either figure out the appropriate cleaning agent by herself or

rely on the advice of the domestic help or price point or the advertisements of course!

Top brands vie with in-house products made by organised retail majors for consumer

attention and often succeed though they may not be heavily advertised on television,

print etc.

Cleaning scrubbers also do not seem to be well distinguished in terms of the object they

are meant to clean. So one finds plastic or steel wool scrubbers, more sophisticated two-

in-sponges, brushes etc. Many ladies (generally its they who do clean utensils) are

known to suffer from allergies of skin, nails that are painful and ugly. However not


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many of the cleaning agents advise using gloves or state any post cleaning procedure to

safeguard hands. Irrespective of who cleans the utensils this information is required.

Products which have a quick turnover, and relatively low cost are known as fast moving consumer

goods (FMCG). FMCG products are those that get replaced within a year. Examples of

FMCG generally include a wide range of frequently purchased consumer products such

as toiletries, soap, cosmetics, tooth cleaning products, shaving products, Detergents, as

well as other non-durables such as glass ware, bulbs, batteries, paper products, and plastic

goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food

products, soft drinks, tissue paper and chocolate bars. A subset of FMCG is fast moving

consumer electronics which include innovative electronic products such as mobile

phones, MP3 players, digital cameras, GPS Systems and laptops. These are replaced

more frequently than other electronic products. White goods in FMCG refer to household

electronic items such as refrigerators, televisions, music systems etc. In 2005, the

Rs.48000-crore FMCG segment was one of the fast growing industries in India. According to

the ACNielsen India study, the industry grew 5.3% in value between 2004 and 2005.

INDIAN FMCG SECTOR

The Indian FMCG sector is the fourth largest in the economy and as a market size

of US$13.1 billion. Well established distribution networks, as well as intense

competition between the organized segments are the characteristics of this sector. FMCG

in India has a strong and competitive MNC presence across the entire value chain. It has been

predicted that the FMCG market will reach to US$ 33.4 billion in2015 from US $ billion 11.6 in

2003. The middle class and the rural segments of the Indian population are the most promising market

for FMCG, and give brand makers the opportunity to convert them to branded products.

Most of the product categories like jams, tooth paste, skin care, shampoos etc., in India, have low

per capita consumption as well as low penetration level, but the potential for growth in huge.


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The Fast Moving Consumer Goods (FMCG) industry

primarily deals with the production, distribution and marketing of consumer packaged

goods, i.e. those categories of products that are consumed at regular intervals. Examples

include food & beverage, personal care, pharmaceuticals, plastic goods, paper &

stationery and household products etc. The industry is vast and offers a wide range of

job opportunities in functions such as sales, supply chain, finance, marketing,

operations, purchasing, human resources, product development and general

management. Global leaders in the FMCG segment are Sara Lee, Nestl, Reckitt

Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills,

Pepsi and Mars etc.

n India, the FMCG industry is the fourth largest sector with a total (organized) market

size of over US$15 billion in 2007, as per ASSOCHAM, and can be classified under the

premium and popular segments. The premium segment (~25%) caters mostly to the

higher/upper middle income consumers while the price sensitive popular or mass

segment (~75%) consists of consumers belonging mainly to the semi-urban or rural

areas who are not, and cannot afford to be, brand conscious.

The market growth over the past 5 years has been phenomenal, primarily due toconsumers growing disposable income which is directly linked to an increased demand

for FMCG goods and services. Indeed, it is widely acknowledged that the large young

population in the rural and semi-urban regions is driving demand growth, with the

continuous rise in their disposable income, life style, food habits etc. On the supply side,

the wide availability of raw materials, vast agricultural produce, low cost of labor and

increased organized retail have helped the competitiveness of players.

At a time when the economy and other large industrial sectors such as automobiles,

aviation and financial services are reeling from the global slowdown, the consumer

goods sector in India has managed to defy the trend. According to the recent reports by

Zeus Consulting, India's FMCG industry has so far been resilient to the slowdown in the

economy and a dip in consumer sentiment, with most companies posting double-digit

growth in net profits in the first half of fiscal 2009, backed by healthy sales. As very

categorically said by the Amway India Enterprises managing director and chief

executive, Mr. William Pinckney, I am not saying that our company [sector] is


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recession-proof but it is recession-resilient. This statement on the whole stands strong

for most the leading players in the FMCG sector.

While a price hike and cost-cutting were the first lines of defense in a bid to protect

margins,Indian manufacturers were able to let logic rather than bottom lines dictate

measures, with increased marketing efforts, a well-thought product mix and new

launches helping them emerge unscathed from the turmoil. The prospects going forward

also remain promising. Adi Godrej, Chairman and MD of Godrej Consumer Products

Limited (GCPL) and Chairman of Godrej Industries feels that the best policy would be

to provide tremendous fiscal and monetary stimuli to the economy, [stimuli is

needed] especially in industries connected with consumer finance. Once that is done, the

economic growth will come through and that will generally create multiplier factors.

FMCG already seems to be doing quite well and FMCG sector will have its best year

ever in 2009-10, he said.

Products which have a quick turnover, and relatively low cost are as Fast Moving

Consumer Goods (FMCG). FMCG products are those that get replaced within a year.

Examples of FMCG generally include a wide range of frequently purchased consumer

products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products

and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper

products, and plastic goods. FMCG may also include pharmaceuticals, consumer

electronics, packaged food products, soft drinks, tissue paper, and chocolate bars.

Indias FMCG sector is the fourth largest sector in the economy and creates employment

for more than three million people in downstream activities. Its principal constituents

are Household Care, Personal Care and Food & Beverages. The total FMCG market is in

excess of Rs. 85,000 Crores. It is currently growing at double digit growth rate and is

expected to maintain a high growth rate. FMCG Industry is characterized by a well

established distribution network, low penetration levels, low operating cost, lower per

capita consumption and intense competition between the organized and unorganized

segments.

The Rs 85,000-crore Indian FMCG industry is expected to register a healthy growth inthe third quarter of 2008-09 despite the economic downturn. The industry is expected to


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register a 15% growth in Q3 2008-09 as compared to the corresponding period last year.

Unlike other sectors, the FMCG industry did not slow down since Q2 2008. the industry

is doing pretty well, bucking the trend. As it is meeting the every-day demands of

consumers, it will continue to grow. In the last two months, input costs have come down

and this will reflect in Q3 and Q4 results.

Market share movements indicate that companies such as Marico Ltd and Nestle India

Ltd, with domination in their key categories, have improved their market shares and

outperformed peers in the FMCG sector. This has been also aided by the lack of

competition in the respective categories. Single product leaders such as Colgate

Palmolive India Ltd and Britannia Industries Ltd have also witnessed strength in their

respective categories, aided by innovations and strong distribution. Strong players in the

economy segment like Godrej Consumer Products Ltd in soaps and Dabur in toothpastes

have also posted market share improvement, with revived growth in semi-urban and

rural markets.

SWOT ANALYSIS

Strengths:

Low operational costs

Presence of established distribution networks in both urban and rural

areas

Presence of well-known brands in FMCG sector

Weaknesses:

Lower scope of investing in technology and achieving economies of

scale, especially in small sectors

Low exports levels

"Me-too products, which illegally mimic the labels of the established

brands. These products narrow the scope of FMCG products in rural

and semi-urban market.

Opportunities:


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Untapped rural market

Rising income levels, i.e. increase in purchasing power of consumers

Large domestic market- a population of over one billion.

Export potential

High consumer goods spending

Threats:

Removal of import restrictions resulting in replacing of domestic

brands

Slowdown in rural demand

Tax and regulatory structure


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PRODUCT PROFILE

Exo Dish wash is yet another offering that draws on the wealth of experience of our R &

D division. The product is not meant to just clean utensils, but also provide protection

form bacteria and harmful germs. Fortified with powerful anti-bacterial agents, Exo

Dish wash bar fights and kills disease causing bacteria that enter food through

contamination of utensils. The powerful formula removes sticky oil stains, grime andstubborn burnt food residues from utensils and makes them safe and sparkling.

Exo Dish Wash Bar is available in 100gms, 200gms and 380gms packs

Brand Exo:

Company : Jyothi Laboratories Ltd

Brand Analysis Count : # 496

Exo is a dish wash brand from Jyothi Labs. Exo is a challenger brand in the Rs 10,000

crore dishwash product category in India. The brand currently focuses on South India

and is slowly spreading its wings nationally.

Exo was launched in 2000. The brand was launched as a part of the diversification of

JLL whose bread and butter was from a single brand- Ujala. Exo entered a very tough

market which was dominated by the market leader Vim.
http://3.bp.blogspot.com/-FXLvETS1hOs/Tncflaf4uOI/AAAAAAAAClc/m4Xs_OvNrGc/s1600/EXO.jpg


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In competitive strategies, theory talks about various strategies like Frontal Attack, Bye-

pass attack etc. Exo chose to attack Vim directly and aggressively. When a competing

brand chose to attack the market leader, it needs to have a credible differentiator

inorderto compete and succeed. Vim have tremendous brand equity in the market and it

is a tough task to fight such a leader.

Exo's marketing strategy is a notable example of successful frontal attack. The brand

was able to find a credible and sustainable differentiator against Vim. Exo took the

position of an Anti-bacterial dishwash bar to fight Vim.

Exo was India's first Anti-bacterial dish wash bar. As usual, the poor Keedanu ( germs)

was at the receiving end. Exo positioned itself as a dishwash bar that killed all the

bacteria in the utensils. The positioning was very smart since Vim was positioned on the

basis of cleanliness.

Exo was innovative in creating an awareness about the possibility of germs in utensils.There was also another smart idea from the brand. In theory, we often say that the

differentiator should be relevant, sustainable and not easily copied by competitors. Exo's

positioning of anti-bacterial benefit can be easily copied by the competitor . In order to

counter this, Exo used an ingredient "Cyclozan " to protect its differentiation. The

ingredient brand " Cyclozan " ensured that the differentiation of Anti-bacterial benefit

cannot be easily countered.

By launching Exo with anti-bacterial property, Exo created both point of parity and

point of difference with Vim. The brand talked about cleanliness thus created parity with

Vim and then used Cyclozan to establish point of difference thus creating a powerful

position in the mind of the consumers.The results was visible . Exo became the second

largest dishwash bar in South India.

To fight the aggressive attack by Exo, Vim launched its own anti-bacterial variant using

neem as the ingredient.


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Exo later went into a brand extension mode by launching Exo dishwash liquid and later

Exo Scrub. With the acquisition of Henkel in India by JLL, the fate of Exo dishwash

liquid appears bleak since Henkel's Pril is the market leader in the dishwash liquid

market. Exo will now be restricted to only dishwash bar category.

Exo is a brand which is promoted exhaustively by Jyothy labs. The brand has very high

share of voice and ads keep on driving the USP of germ-killing property. Since the

dishwash bar category is not a high involvement category, the brand had benefited

greatly by this share of voice.

With the acquisition of Pril brand from Henkel, Jyothi labs now have two formidable

brands in the dish wash category. Vim now faces the most intensive threat to its

leadership position. It will be interesting to watch how the fight will turn out to be.


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CHAPTER 2

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES

To know the preference of Exo brand among the consumers.

SECONDARY OBJECTIVES

To know the fast moving brands. To know the effective promotion methods. To know the effectiveness of the distribution system To know the factors effecting the purchasing decision To know the awareness of Exo brand


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Scope of study

The scope of study is restricted to Trissur only. The sample size is taken as 120for consumers.

The target for consumers has taken from houses and flats whom using Exo brandin semi urban areas of Trissur district.

The samples for consumers are taken from semi urban areas of Trissur district.Structured questionnaire were used for data collecting information

From the analysis it is understand that there is a good awareness level forExo dish wash bar.

As learning is a human activity and is as natural, as breathing. Despite of the fact that

learning is all pervasive in our lives, psychologists do not agree on how learning takes

place. How individuals learn is a matter of interest to marketers. They want to teach

consumers in their roles as their roles as consumers. They want consumers to learn abouttheir products, product attributes, potential consumers benefit, how to use, maintain or

even dispose of the product and new ways of behaving that will satisfy not only the

consumers needs, but the marketers objectives. The scope of my study restricts itself to

the analysis of consumer preferences, perception and consumption of Exo dish wash bar.

There are many other brands of dish wash bars available but my study is limited to two

major players of utensil cleaners leaving behind the others. The scope of my study is

also restricts itself to Trissur region only.


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CHAPTER 3

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem along with

the logic behind them.the research methodology includes description about why the

research study has been undertaken, how the hypothesis, if any has been adopted.so by

framing a right methodology it is possible to gain deeper in sight to the research problemand also it gives .full proof action plan for carrying out the project success fully.

RESERCH DESIGN

Research design is the conceptual structure with which research would be conducted.

For this research study; a descriptive research design is used.

DESCRIPTIVE RESEARCH

In descriptive research the researcher defines clearly what he wants to measure and must

find adequate means to measure it.a descriptive study requires a clear specification of

who what, when,where,why, and how aspects of research.

SOURCE OF DATA COLLECTION

Primary data were used for the study. Primary data were collected the source like house

hold consumers. Secondary data collected from company magazines and internet.


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SAMPLING METHOD

The sampling procedure adopted in this project is convenient sampling.

SAMPLING PLAN

Sampling is the procedure to draw conclusion about a large group of consumers by

standing a small sample of the total population

SAMPLE SIZE

The sample size of this study includes 120 consumers

CONTACT METHOD

Scheduling is used to collect data. The respondents were met directly.

TOOL OF ANALYSIS

The tools used for analysis is percentage method .the analyzed data is presented in charts

and tables.


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UNIVERSE OR POPULATION

The universe or total population of this study was the consumers of Exo dish

wash bar. This include the house hold consumers of Trissur district.

LIMITATIONS OF THE STUDY

The study restricted to Trissur district only The genuiness of result generated out of study is completely dependent on

nature of response given by the consumers

All the inherent limitations of questionnaire apply to this study also. The study could not made much comprehensive due to time constraints.


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CHAPTER-4

ANALYSIS AND INTERPRETATION

TABLE 1AGE

INTERPRETATION:

From the table, it is understood that 45% of the total respondents belongs to the age

group of above 40.24%of the respondents belong to the age group of 20-30.31% of the

respondents lies between the age group of 20-30.

AGE PERCENTAGE RESPONDENTS

20-30 24% 29

31-40 31% 37

ABOVE 40 45% 54


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CHART 1

0%

5%

10%

15%

20%25%

30%

35%

40%

45%

20-30 31-40 ABOVE 40

24%

31%

45%

AGE


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TABLE 2

INCOME

INCOME PERCENTAGE RESPONDENTS

4000-8000 0% 0

Below 4000 0% 0

8000-12000 18% 21

ABOVE 12000 82% 99

INTERPRETATION:

From the above table, it is understood that majority of the respondents earns an income

above 12000, 18% earns a salary between 8000-12000.none of them earns salary

between 4000-8000.


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CHART 2

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Below 4000 4000-8000 8000-12000 ABOVE 12000

0% 0%

18%

82%

INCOME

PERCENTAGE


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TABLE 3

AWARENESS OF BRAND

AWARENESS OF BRAND PERCENTAGE RESPONDENTS

YES 90% 107

NO 10% 13

INTERPRETATION:

From the table it is cleared that, 90%of people are aware about exo dish wash bar and

10%are not aware.


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CHART 3

90%

10%

AWARENESS OF BRAND

YES

NO


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TABLE 4

CURRENTLY USING BRAND

INTERPRETATION:

From the above table, it is cleared that 63% of consumers are currently using exo.15%

are using pril,25% consumers are using other brands.12% are using rin and 8% of

consumers are using wheel.

PERCENTAGE RESPONDENTS

EXO 63% 76

RIN 12% 14

PRIL 15% 18

WHEEL 8% 10

OTHERS 25% 2


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CHART 4

0%

10%

20%

30%

40%

50%

60%

70%

EXO RIN PRIL WHEEL OTHERS

63%

12%15%

8%

25%

CURRENTLY USING BRAND


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TABLE 5

AWARENESS OF EXO ADVERTISEMENT

INTERPRETATION:

From the above table, it is cleared that 92% of respondents are aware of advertisement

of exo.and 8% of respondents are not aware of Exo advertisement.

AWARENESS OF EXO

ADVERTISEMENT PERCENTAGE RESPONDENTS

YES 92% 111

NO 8% 9


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CHART 5

TABLE 6

CONSUMERS OPINION ABOUT ADVERTISEMENT

INTERPRETATION:

From the above table, it is cleared that,71% of respondents valued Exo as an average

product and 23% of respondents valued Exo as good and 5% of respondents valued

excellent.1% of respondents valued bad and none of them valued very bad.

CONSUMERS OPINION ABOUT

ADVERTISEMENT PERCENTAGE RESPONDENTS

EXCELLENT 5% 6

GOOD 23% 28

AVERAGE 71% 85

BAD 1% 1

VERY BAD 0% 0


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CHART 6

0%

10%

20%

30%

40%

50%

60%

70%

80%

5%

23%

71%

1%0%

CONSUMERS OPINION ABOUT

ADVERTISEMENT

PERCENTAGE


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TABLE 7

PROMOTIONAL ACTIVITY OF EXO

PROMOTIONAL ACTIVITY OF EXO PERCENTAGE RESPONDENTS

ADVERTISEMENT 67% 82

WORD OF MOUTH 20% 23

SALES PROMOTION 10% 12

REATAILERS 3% 4

INTERPRETATION:

From the table, it is understood that 67% of promotional activity is through

advertisement.20% of promotional activity is through word of mouth,10% is through

sales promotion and 3% of promotional activity of Exo is through retailers.


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CHART 7

0%

10%

20%

30%

40%

50%

60%

70%67%

20%

10%

3%

PROMOTIONAL ACTIVITY OF EXO

PERCENTAGE


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TABLE 8

DID YOU EVER PURCHASE EXO

DID YOU EVER PURCHASE EXO PERCENTAGE RESPONDENTS

YES 72% 87

NO 28% 33

INTERPRETATION:

From the table it is found that,72% of respondents purchased Exo dish wash bar and

28% of respondents did not ever purchase exo dish wash bar.


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CHART 8

0%

10%

20%

30%

40%

50%

60%

70%

80%

YES NO

72%

28%

DID YOU EVER PURCHASE EXO

PERCENTAGE


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TABLE 9

IF YES, HOW U RATE

IF YES HOW U RATE PERCENTAGE RESPONDENTS

excellent 18% 13

good 30% 22

average 45% 32

bad 7% 7

very bad 0% 0

INTERPRETATION:

From the table, it is cleared that,30% of respondents said that Exo is good product.45 %

of respondents said that Exo is average product ,18% of respondents said that excellent.

And 7% said that bad.


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CHART 9

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

excellent good average bad very bad

18%

30%

45%

7%

0%

IF YES ,HOW U RATE

PERCENTAGE


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TABLE 10

HOW CONSUMERS EVALUATE THE PRICE OF EXO

HOW CONSUMERS EVALUATE THEPRICE OF EXO PERCENTAGE RESPONDENTS

VERY HIGH 7% 8

HIGH 18% 22

AVERAGE 64% 77

LOW 6% 7

VERY LOW 5% 6

INTERPRETATION:

From the above table 64% of respondents evaluated the price of Exo as a average ,18%

says high,7% says very high.6% of respondents evaluated the price of Exo as low and

5% says very low.


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CHART 10

0%

10%

20%

30%

40%

50%

60%

70%

VERY HIGH HIGH AVERAGE LOW VERY LOW

7%

18%

64%

6% 5%

HOW CONSUMERS EVALUATE PRICE OF

EXO

PERCENTAGE


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TABLE 11

FACTORS INFLUENCING PURCHASE

FACTORS INFLUENCING PURCHACE PERCENTAGE RESPONDENTS

QUALITY 39% 47

PRICE 31% 38

FRAGRANCE 14% 17

SIDE EFFECTS 2% 2

ADVERTISEMENT 14% 16

INTERPRETATION:

From the above table, it is understood that a major portion of the respondents give

importance to quality and followed by price which is 31% and finally preference to the

factors like side effects, advertisements and fragrance.


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CHART 11

0%

10%

20%

30%

40%

39%

31%

14%

2%

14%

FACTORS INFLUENCING PURCHACE


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TABLE 12

PRICE SLASHING OF DIFFERENT PRODUCTS

PRICE SLASHING OF DIFFERENT

PRODUCTS PERCENTAGE RESPONDENTS

BECAUSE OF DECREASE IN QUALITY 48% 58

MARKETING STRATEGY 37% 44

LOW COST OF PRODUCTION 15% 18

INTERPRETATION:

From the above table, it is cleared that, 48% of consumers considering the price slashing

as the cause of decrease in quality and 37% is because of marketing strategy and 15% ofconsumers is because of low cost production.


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CHART 12

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

BECAUSE OF

DECREASE IN

QUALITY

MARKETING

STRATEGY

LOW COST OF

PRODUCTION

48%

37%

15%

PRICE SLASHING OF DIFFERENT

PRODUCTS

PERCENTAGE


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TABLE 13

INFLUENCING PERSON IN PURCHASING DECISION

INFLUENCING PERSON IN PURCHASING

DECISION PERCENTAGE RESPONDENTS

WIFE 66% 79

HUSBAND 10% 12

BOTH 24% 29

INTERPRETATION:

From the above table, it is cleared that, ladies are playing major role in selecting the Exo

dish wash bar, which 66%and followed by males which is 10%.


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CHART 13

0%

10%

20%

30%

40%

50%

60%

70%

WIFE HUSBAND BOTH

66%

10%

24%

INFLUENCING PERSON IN PURCHASING

DECISION

PERCENTAGE


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TABLE 14

WHO WILL TAKE PUCHASE DECISION

WHO WILL TAKE PURCHASE

DECISION PERCENTAGE RESPONDENTS

WIFE 66% 79

HUSBAND 10% 12

BOTH 24% 29

INTERPRETATION:

From the above table, it is cleared that 66% of ladies are taking the purchase decision,

remaining 10% is chosen by gents and 24% are combined with both.


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Chart 14

0%

10%

20%

30%

40%

50%

60%

70%

WIFE HUSBAND BOTH

WHO WILL TAKE PURCHASE DECISION

PERCENTAGE


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TABLE 15

WILL YOU SWITCH OVER TO ANOTHER BRAND

ARE YOU SWITCH OVER TO ANOTHER

BRAND PERCENTAGE RESPONDENTS

YES 42% 51

NO 58% 69

INTERPRETATION:

From the table, it is cleared that 58% consumers is not switching over to another brands

and 42% of consumers is switching over to another brands.


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CHART 15

42%

58%

WILL YOU SWITCH OVER TO ANOTHER

BRANDS

YES

NO


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TABLE 16

IF YES

INTERPRETATION:

From the above table it is cleared that,56% of consumers switching over to another

brands occasionally and 45% of consumers are switching over to another brands

regularly.

IF YES PERCENTAGE RESPONDENTS

REGULARLY 45% 23

OCCASIONALLY 56% 28


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CHART 16

0%

10%

20%

30%

40%

50%

60%

REGULARLY OCCASIONALLY

45%

56%

IF YES


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CHAPTER 5

FINDINGS

1) It is found that 45% of total respondents belongs to above 40 age groupnd 24%of respondents belongs to age group are of 20-30.and 31% of respondents are

belonging to 30-40 .

2) It is found that 82% of consumers are belonging to income group of above12000.18% of consumers are belonging to income group of 8000-12000.and

none of them are in the income group of 4000-8000.

3) It is found that 63% of total consumers are using Exo brand. It shows Majority ofconsumers are using Exo brand.

4) 92% of total consumers are aware of Exo brand.it Awareness of Exo brandamong the consumers is outstanding.

5)

It is found that 67% of consumers got awareness through advertisement.it showsadvertising plays an important role in awareness.

6) It is found that 48% of consumers are having the opinion that price slashing ofdifferent products is due to decrease in quality.

7) It is found that 71% of consumers said that exo is average product and 23% saidgood and 5% of consumers said that exo excellent product.

8) It is found that ladies are playing the major role in selecting the washing powder


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RECOMMENTATIONS

1) It is necessary that awareness of Exo must be increased.2) The ladies have a great influence in purchasing of dish wash bars, so the media

of awareness must be focused some ladies magazines. In the weeklies the

advertisement concentrated on cover pages.3) The advertisement in television must be concentrated on programs like

Valkannadi, cookery shows which ladies used to watch regularly and popular

serials.

4) Provide customer promotion like free products, gift coupons.5) Increase the quality and reduce the price6) Provides some point of purchase advertisements like displaying products very

attractively, hanging the product names.7) Jyothy laboratories have introduce product in the sachet


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CONCLUSION

As the competition is increasing day by day the company should think about its

distribution strategies. The distribution channel will be the most important one. The

study revealed that the company has to stress on the parameters like retailers schemes

and margin. This can be possible by reducing the length of distribution channel.

The study found that exo dish wash bar has a good awareness scale among consumers.

The study reveals that jyothi laboratories have to provide promotional activities to

consumers for making an interest among consumers in buying and consuming the

product.

From the study among consumers it is understood that the influencing factors for the

purchase of washing powders are quality and price.so the company can make better sales

by increasing the quality and substituted by promotional activities and good advertising.


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BIBLIOGRAPHY

Kothari,C.R,Research methodology and techniques. New delhi:wishwa prakashan .2003 Kotler,philp.marketing management.delhi:person education(Singapore)

www.jyothylaboratories.com

www.wikipedia.com

www.google.com

www.learn edu.com

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