STATISTICAL METHOD FOR BUSINESS DECISIONS

PROJECT REPORT
ON
STATISTICAL ANALYSIS OF CUSTOMER PREFERNCE
TOWARDS DETERGENT

SUBMITTED TO -: SUBMITTED BY –

DR. CHANCHAL JAIN AMAN JAIN

AYUSH SHARMA

HARSHITA SETHI

NEHA PATEL
JIJO JACOB

LALIT

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 Acknowledgement

We all would like to express our special thanks of gratitude to our Statistical Method for
business decision faculty Dr. CHANCHAL JAIN madam for providing us this golden
opportunity to complete this project and to understand the analytical procedure in
SMBD. I also want to thank Dr. Chanchal madam for their patience and assistance
during our project completion. Thanks to their guidance, we were able to
develop analytical skills to a good extent.

TABLE OF CONTENT

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 CONTENT PAGE NO.

INTRODUCTION
4-5
RESEARCH METHODOLOGY
6-7
OBJECTIVES
8
DATA ANALYSIS AND INTERPRETATION
9-19
TESTING AND ANALYSIS
20-25
FINDING & SUGGETIONS
26
CONCLUSION
27

QUESTIONNAIER
28-31

INTRODUCTION

Detergent is a product that many people might take for granted or consider rather
ordinary, but for some, lathering up can be a treasured part of a morning routine.

Scented or unscented, in bars, Powder and liquids, Detergent is a part of our daily lives.
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In the India, Detergent is an INR 42,827.4 crore industry with over 50 mass market
brands. But in some markets the sales potential for Detergent is only beginning to be
realized.. IFF's marketing experts offer the following overview of this growing category.
India is a vast country with a population of 1,030 million people. Household penetration
of Detergents is 98%. People belonging to different income levels use different brands,
which fall under different segments but all income levels use Detergents, making it the
second largest category in India. Rural consumers in India constitute 70% of the
population. Rural demand is growing, with more and more Detergent brands being
launched in the discount segment targeting the lower socio-economic strata of
consumers. Detergent industry is one of the oldest Fast Moving Consumer Goods
(FMCG) industry in India. It is among the highest penetrated category within FMCG
sector reaching an estimated 95% urban and 87% of the rural households. It is also a
sector which is characterized by a high level of intense competition. The competitors in
this sector ranges from MNC’s like Unilever, Henkel, P&G to local bigwigs like Wipro,
Nirma and Godrej.

With an array of products in all category of Detergent markets HUL is the market leader
in all category. They are the leaders in economic category with RIN, in popular category
with Wheel and in premium category with Surf Excel.. The economic category which
used to be the most popular category in the past has been experiencing sluggish growth
for the past few years. The premium category and the popular category are the sectors
which are experiencing high growth rate. The popular and economy segments account
for about four-fifths of the entire market for Detergents. The future growth of Detergent
is in the premium category.

To fight competition, major players HUL, GCPL, Dabur India and Wipro consumer care
& lighting are now drawing up fresh game plans. And the accent is clearly on the
innovation to gain mind share as well as market share in this overcrowded category.

Detergents, despite their divergent brands, are not well differentiated by the consumers.
It is, therefore, not clear if it is the brand loyalty or experimentation lured by high

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volume media campaign, which sustain them. A consequence is that the market is
fragmented. It is obvious that this must lead to a highly competitive market. Detergent,
once only an urban phenomenon, has now penetrated practically all areas including
remote rural areas. The incremental demand flows from population increase and rise in
usage norm impacted as it is by a greater concern for hygiene. Increased sales revenues
would also expand from up gradation of quality or per unit value.

As the market is constituted now, it can be divided into four price segments: premium,
popular, discount and economy Detergents. Premium Detergents are estimated to have
a market volume of about 80,000 tons. This translates into a share of about 14 to 15%.
However, by value it is as much as 30%.

The market is growing at 7% a year. This means that the incremental demand
generation is 5% over and above the population growth. With increasing awareness of
hygienic standards, the market could grow at a rate higher than 8% annually.
Interestingly, 60% of the market is now sourced from the rural sector. This means that
the variance between the two segments is not very large. Since upper-end market focus
is the urban areas, margins come from the urban sector.

RESEARCH METHODOLOGY

The task of data collection begins after a problem has been defined and research
design/plan chalked out. While deciding about the method data collection, the research
should keep in mind two types of data, primary and secondary.

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The primary data are those which are collected fresh and for the first time and thus
happen to be original in character. The secondary data are those which have already
been collected by someone else and which have already been passed through the
statistical process. The methods of collecting are to be originally collected, while in case
of secondary data the nature of data collection work is merely of compilation

PRIMARY SOURCE- A structured questionnaire to be prepared and data will collected

from respondents. The sampling technique used in this survey is convenience sampling.

SECONDARY SOURCE- Secondary data means the data already available, which has
already been collected and analyzed by someone else. It includes the published data
available in the form of:

 Various publications
 Journals
 Books, magazines, Newspapers
 Internet

SAMPLE SIZE

The sample size of respondents will be 83. Convenience sampling method will
used.
Tools used for data collection:
Data was collected by using a self-constructed questionnaire from 83
respondents.

TOOLS USED IN SURVEY

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The various tools used in conducting the survey are as follow:

 Questionnaire

 QUESTIONNAIRE METHOD:

This method of data collection is quite popular in case of big queries. In this method
a questionnaire is presented to a concerned person with a request to give answers of
the questions.. Structured questionnaires are those in which there are definite,
concrete and predetermined questions. The questions included can be in the form
of closed ended which involves choice of answers or it can be open ended questions
which asks for the respondents personal opinions and views.

Overview:

Research Type: Objective

Data collection: Primary source of data (questionnaire)

Research approach: Survey method

Research instrument: Questionnaire

Size: 83

OBJECTIVES
Objectives of the study
 To find out brand preference of customers.
 To find out Category preference of customers.
 To find out Customer rating for their product.
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 To find out brand loyalty of customers.
 To find out the source of influence of customer changing their brand.
 To find the various attributes while selecting a brand
 To find out the attitudes, needs, tastes and preferences of consumers towards
Detergents

DATA ANALYSIS AND INTERPRETATION

The purpose of the questionnaire was to identify the usage and buying pattern of the
consumers of Detergents. For this, questionnaires were administered to 83 respondents. The
analysis is done on the basis of the answers given by the respondents to the questionnaire.

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 1. Gender wise classification
The respondents group includes males and females. 44.6% of the respondents are females and
55.4 % are males. There is high proportion of males.

The following bar graph will illustrate the gender wise classification.

Gender Frequency Percentage

Female 37 44.6
Male 46 55.4
Total 83 100

2. Age group

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This consists of classification of respondents according to age group. The following pie chart
illustrates this.

Age Group Frequency Percentage

15-20 3 1.2
20-30 71 85.5
30-40 8 9.6
40-45 1 3.6
Total 83 100

3. CATEGOARY WISE WHAT CUSTOMER PREFERED FOR WASHING CLOTHES

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This consists of classification of respondents according to Category. The following pie chart
illustrates this.

OBSERVATIONS:
It can be observed that most of the customers preferred Detergent powder as compared to the
other categories. It holds a total of 66.3% as compared to Liquid, Bars and other which holds
the total of 33.

4. CUSTOMER PREFERNCE IN POWDER -:

Frequen Percenta
BRANDS cy ge
WHEEL 0 0
SURF EXCEL 4 40

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 TIDE 3 30
ARIEL 2 20
NIRMA 0 0
RIN 0 0
LOCAL
BRAND 1 10

OBSERVATIONS:
It can be observed that most of the customers preferred Brand Surf Excel as Detergent powder
as compared to the other Brands. It holds a total of 40% as compared others.

5. CUSTOMER PREFERENCE IN BARS -:

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 Frequen Percenta
BRANDS cy ge
WHEEL 0 0
SURF EXCEL 4 19
TIDE 1 1
ARIEL 11 52.4
NIRMA 0 0
RIN 0 14.3
LOCAL
BRAND 1 4.8

OBSERVATIONS:
It can be observed that most of the customers preferred Brand Ariel as Detergent Bars as
compared to the other Brands. It holds a total of 52.4% as compared others

6. CUSTOMER PREFERNCE IN LIQUID :-

BRANDS Frequen Percenta

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 cy ge
WHEEL 0 0
SURF EXCEL 5 50
TIDE 0 0
ARIEL 4 40
NIRMA 0 0
RIN 0 0
LOCAL
BRAND 1 10

OBSERVATIONS:
It can be observed that most of the customers preferred Brand Surf Excel as Detergent Liquid as
compared to the other Brands. It holds a total of 50% as compared others.

7. DETERGENT USAGE

The following Pie Chart will illustrate the Usage of detergent

OBSERVATIONS:

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It can be observed that most of the customers preferred 1 Kilogram of Detergent Powder in a
family it holds a total of 41% part percentage of 2 kilogram packs are 20.5% while 500 gram
packs are holds a total of 25.3%.

8. PRICING PREFERNCE OF THE CUSTOMERS -:

The following Pie Chart will illustrate the Pricing preference.

OBSERVATIONS:
It can be observed that most of the customers preferred Detergent Costing around Rs. 100-
150 for 1 Kg Unit it holds a total of 33.7% of the total observations after the mid class range
most of the customers prefer the low class range with the total of 30.1% while 150-200 range
holds a total of 15.7%.

9. Customer Loyalty towards a Particular Brand because of these quality

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OBSERVATIONS:
It can be observed that most of the customers preferred Detergent to be value for money
about 50.6% of the observed people wants the product to be value for money equally they also
wants the product to be good strain remover as it holds same share as the value for money
50.6%. Apart from that they also wants the product to be cost effective and easy to use.

10. PRODUCT SCALING

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The following bar graph will illustrate the Product scaling by consumer.

OBSERVATIONS:
On a scale of 1 to 10 where 1 is poor and 10 is excellent observed consumers mostly satisfied
from there product but as the scaling 9 holds the most share of 26.5 % it shows not all of them
are fully satisfied with their product.

11. CUSTOMER WHO WANTS TO SHIFT TO OTHER PRODUCT -:

OBSERVATIONS:

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As we understand in the above observation that not all the observed consumers are satisfied
with their products here 65.1% of the consumer want to shift to other product while 34.9% of
them does not wants to switch to other product.

12.PROBLEMS WHICH LEAD CUSTOMERS TO SHIFT TO OTHER PRODUCT -:

OBSERVATIONS:

It can be observed that most of the customers reason to switch to the other products is due to
the High prices of the detergent as 42.2% of the observed consumer thinks the price should
lower down on the other hand the consumers second reason to switch to the other product is
weak strain remover detergent which holds a total of 34.9% while 22.9% people thinks that
there product damages the quality of the clothes.
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 13.EXPECTATIONS FROM NEW PRODUCT -:

OBSERVATIONS:

It can be observed that most of the customers wants their products to be not harmful for the
clothes 66.3% of the people wants there product to focus on the factor that it may not harms
the clothes as well as 53% of the observers wants the product to be strong strain remover with
low pricing as it also holds 48.2 % and consumers also wants there product to be filled with
quality of providing long lasting fragrance and also to be of premium quality.

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 CHI - SQUARE TEST

FIRST ANALYSIS

AGE DOES HIGH REMOVES WEAK DAMGE TO HARM TOTAL

NOT PRICE FRESHNESS STRAIN QUALITY HAND
DISSOLVE FROM REMOVAL OF
IN CLOTHES CLOTHES
WATER

15-20 1 0 0 1 0 1 3

20-30 6 20 10 15 10 10 71

30-40 2 2 1 1 1 1 8

40-50 0 1 0 0 0 0 1

Total 9 23 11 17 11 12 83

Null hypothesis: there is no significant difference between Age and why people want to change their
detergent at the time of buying.

Alternate hypothesis: there is significant difference between Age and change their detergent at the
time of buying.

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 Contingency table
= row total*column total

Grand total

Table of expected values

AGE DOES NOT HIGH REMOVES WEAK STRAIN DAMGE TO HARM HAND TOT
DISSOLVE PRICE FRESHNESS REMOVAL QUALITY OF AL
IN WATER FROM CLOTHES CLOTHES

15-20 3*9/83=0.3 3*23/83=0. 3*11/83=0.39 3*17/83=0.61 3*11/83=0.39 3*12/83=0.43 2.97

2 83

20-30 71*9/83=7. 71*23/83= 71*11/83=10.2 71*17/83=14.54 71*11/83=10.20 71*12/83=10.26 72.4

69 19.6 0

30-40 8*9/83=0.8 8*23/83=2. 8*11/83=1.06 8*17/83=1.63 8*11/83=1.06 8*12/83=1.15 7.97

6 21

40-50 1*9/83=0.1 1*23/83=0. 1*11/83=0.13 1*17/83=0.20 1*11/83=0.13 1*12/83=0.14 0.97

0 27

Total 8.97 22.91 11.78 16.98 11.78 11.98 84.4

0

To find out the deviation between both the variable= (observed value-expected value) 2

Expected value

O=observed value

E=expected value
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CALCULATION OF X 2
O E O-E (O-E)2 (O-E)2/E

1 0.32 0.68 0.46 1.45

0 0.83 -0.83 0.68 0.83

0 0.39 -0.39 0.15 0.39

1 0.61 0.39 0.15 0.24

0 0.39 -0.39 0.15 0.39

1 0.43 0.57 0.32 0.75

6 7.69 -1.69 2.85 0.37

20 19.6 0.4 0.16 0.008

10 10.20 -0.2 0.04 0.003

15 14.54 0.46 0.21 0.014

10 10.20 -0.2 0.04 0.003

10 10.26 -0.26 0.06 0.006

2 0.86 1.14 1.29 1.51

2 2.21 -0.21 0.04 0.01

1 1.06 -0.06 0.0036 0.003

1 1.63 -0.63 0.39 0.24

1 1.06 -0.06 0.0036 0.003

1 1.15 -0.15 0.02 0.01

0 0.10 -0.1 0.01 0.1

1 0.17 0.83 0.68 4.05

0 0.13 -0.13 0.01 0.13

0 0.20 -0.2 0.04 0.2

0 0.13 -0.13 0.016 0.13

0 0.14 -0.14 0.019 0.14

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 TOTAL ∑ (O-E)2/E

= 11.02

Calculated X 2 =11.02

Degree of freedom=(r-1) (c-1)=(4-1)(6-1)=3*5=15

For 5% Level of significance and 3 as degree of freedom, chi square (tab) =25.00

Here X 2 calculated < X 2 Tabular

Which means here null hypothesis is accepted because tabular value is greater than calculated value and
hence alternate hypothesis is rejected.

SECOND ANALYSIS

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 GENDER YES NO TOTAL

MALE 32 14 46

FEMALE 22 15 37

TOTAL 54 29 83

Null hypothesis: there is no significant difference between Gender of a customer and their preferences
while changing a Detergent.

Alternate hypothesis: there is significant difference between Gender of a customer and their car
preferences while changing their detergent.

Contingency table
= row total*column total

Grand total

Table of expected values

AGE GROUP YES NO TOTAL

MALE 46*54/83=29.92 46*29/83=16.07 45.99

FEMALE 37*54/83=24.07 37*29/83=12.92 36.99

TOTAL 53.99 28.99 82.98

To find out the deviation between both the variable = (observed value-expected value) 2

Expected value

O=observed value

E=expected value
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CALCULATION OF X 2
O E O-E (O-E)2 (O-E)2/E

32 29.92 2.08 4.32 0.14

14 16.07 -2.07 4.28 0.26

22 24.07 -2.07 4.28 0.17

15 12.92 2.08 4.32 0.33

TOTAL ∑ (O-E)2/E

= 0.90

Calculated X 2 =0.90

Degree of freedom=(r-1) (c-1) = (2-1) (2-1) =1*1 = 1

For 5% Level of significance and 1 as degree of freedom, chi square (tab) =3.84

Here X 2 calculated < X 2 Tabular

0.90< 3.84

Which means here null hypothesis is accepted because tabular value is greater than calculated value and
hence alternate hypothesis is rejected.

Findings
1. It is found that the people in the age group of 20-30 form the major chunk of customers.
They form about 85.5% of the customers and most of them are students
2. More than half of the customers buy Detergent of 1KG once in a month which prices around
100-150.

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3. It is observed that Surf excel leads in the Powder and liquid category while Ariel leads in the
Bar category of the detergents.
4. The popular Powder category Detergents forms the most selling category of Detergents.
5. 1 Kg was found to be the most popular volume among customers.
6. It was observed most of the customers are satisfied with their product but not fully as
34.9% of the consumers wants to change their products.
7. Major reasons for the customers to switch to other products are High Prices and weak
Strain remover.
8. For a customer the quality of the Detergent is the paramount criteria while selecting
Detergent. Not harmful for clothes is another criterion along with the strong strain remover
factor of the Detergent as well as it should also be cost effective.

Suggestions
 Reduce burning sensation so that is does not harm to the clothes which consumers
wants in the above observation.
 Manufacturing of more 1 Kg packs as we observe maximum people prefer 1 kg packs.
 Engaging customers by providing price effective premium quality Detergent.
 Providing full chemicals chart at the back of the pack so that people will get out of
assumptions that it will harm their health.
 Increasing production towards Detergent powder and liquid detergent rather than Bars
because of the above observation we can observe that most of the people use powder
because of washing machines.

CONCLUSION

The average consumer has become sensitive to value offered by brands, either in terms of price
or in terms of the intrinsic benefit offered at a higher price point. The emergence of several
discount brands and higher-priced improved offerings can be seen in the Detergent category.
Lux is an example of how the brand initiated the strategy of offering several variants (like

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almond) in the lower segment when such variants have been associated with higher segments
in the category.

Apart from expecting value, the consumer is also caught in generic competition which may
force him/her to downgrade in a few categories while testing other categories. For instance,
the consumer, in order to balance her household budgets, may alternate between a good brand
of Detergent and a low-priced Detergent [8].

Balancing functional benefits, symbolic appeals and timing the right combination of good
functional attributes and symbolic brand orientation) within a price band is likely to be a
conceptual approach to get over the complexities of the FMCG markets.

QUESTIONNIERS

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SURVEY FOR KNOWING CONSUMER
PREFERENCE FOR WASHING CLOTHES
We would love to hear your thoughts
* Required

NAME *

Your answer

EMAIL

Your answer

CITY *

Your answer

GENDER *
MALE
FEMALE

AGE(in years) *
15-20
20-30
30-40
40-50
50+

WHAT DO YOU PREFER FOR WASHING CLOTHES? *

DETERGENT BAR
DETERGENT POWDER
DETERGENT LIQUID
OTHERS

DOES YOUR PRODUCT WORK IN WASHING MACHIHNE? *

YES
NO
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WHICH BRAND DO YOU PREFER IN BARS? *
WHEEL
SURF EXCEL
TIDE
ARIEL
NIRMA
RIN
LOCAL BRAND

WHICH BRAND DO YOU PREFER IN POWDERS? *

WHEEL
SURF EXCEL
TIDE
ARIEL
NIRMA
RIN
LOCAL BRAND

WHICH BRAND DO YOU PREFER IN LIQUID? *

WHEEL
SURF EXCEL
TIDE
ARIEL
NIRMA
RIN
LOCAL BRAND

RATE YOUR PRODUCT ON SCALE OF 1 TO 10 (1= VERY POOR and 10 =

EXCELLENT) *

1
2
3
4
5
6
7
8
9
10

MONTHLY USAGE OF PRODUCT IN YOUR FAMILY *

LESS THAN 250 GRAMS
500 GRAMS
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1 KILOGRAM
2 KILOGRAM
MORE THAN 2 KILOGRAM

PRICE OF BRAND YOU USE? (Price unit for 1 KG) *

50-100
100-150
150-200
200-250
250-300
300+

WHY DO YOU USE PARTICULAR BRAND (can select more than one option) *
PRICE EFFECTIVE
VALUE FOR MONEY
EASY USE
GOOD STRAIN REMOVER
LONG LASTING FRAGNANCE
SAVE WATER

WHAT ARE THE PROBLEM YOU FACE WITH THE PRODUCT (can choose more
than one) *
DOES NOT DISSOLVE IN WATER
HIGH PRICE
REMOVES FRESHNESS FROM THE CLOTHES
WEAK STRAIN REMOVERS
DAMAGES THE QUALITY OF THE CLOTHES
HARMS TO HANDS

WOULD YOU SHIFT TO OTHER PRODUCT WITH ALL YOUR PROBLEMS

RESOLVED? *
YES
NO

WHAT DO YOU EXPECT FROM THE NEW PRODUCT (can select more than one
option) *
LOW PRICE
STRONG STRAIN REMOVER
LONG LASTING FRAGNANCE
PREMIUM QUALITY
NO HARMS TO CLOTHES
NO ANY HEALTH ISSUES

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