A Live Project on

The Factors that affect Demand of Detergent Powders

in Agartala

Prepared by

Manajit Bhowmik

ID: 21IUT0160079

Program: MBA General

Batch: 2021-2022

ICFAI University
Tripura
1
 A Live Project on

The Factors that affect Demand of Detergent Powders

in Agartala

Prepared by
Manajit Bhowmik
ID: 21IUT0160079
Program: MBA General
Batch: 2021-2023

A report submitted in the partial fulfillment of the requirement of the course

INM551 Manegerial Economics of MBA program; batch 2021-2023

ICFAI University
Tripura

2
 Acknowledgement

I would like to express my special thanks of gratitude to Anindita Sinha ,Who provided me with
the golden opportunity to do this wonderful project on The Factors affecting demand of
detergent powders in Agartala which has helped me to learn so many new things about the
topic and the subject. I am really thankful for that.

Without her constant guidance and valuable support during the project, it would
have been impossible for me to complete it.

By

Manajit Bhowmik

3
 Table of Content

Particulars Page No.

Acknowledgement 3

Introduction of Demand 5

What is law of demand? 6

Company profile 8

Objective 10

Limitations 10

Methodology 10

Data Analysis And Interpretation 11-16

Conceptual Relevance 17

Conclusion 17

References 18

4
 Introduction of Demand
Demand is an economic principle referring to a consumers desire to purchase goods and
services and willingness to pay a price for specific good or service.

It is the quantity of consumers who are willing and able to buy products at various prices during
a given period of time. Demand for any commodity implies the consumers desire to acquire the
good, the willingness and ability to pay for it.

The demand for a good that the consumer chooses, depends on the price of it, the prices of
other goods, the consumers income and her tastes and preferences. Whenever one or more of
these variables change, the quantity of the good chosen by the consumer is likely to change as
well. If the prices of other goods, the consumers income and her tastes and preferences remain
unchanged, the amount of a good that the consumer optimally chooses, becomes entirely
dependent on its price. The relation between the consumers optimal choice of the quantity of a
good and its price is called the demand function.

5
 What is law of demand?
The law of demand describes an inverse relationship between price and quantity demanded of
a good. If the price of the good increases, then the demand falls, because the consumer is
usually reluctant to spend more and more money on her purchase. If the price of the good
decreases, the demand for the good increases because with price being less the consumer
prefers to buy the good.

Factors affecting demand

Even though the focus in economics is on the relationship between the price of a product and
how much consumers are willing and able to buy, it is important to examine all the factors that
affect the demand for a good or service.

These factors include:

 Price of the product

 The consumers income
 The price of related goods
 The tastes and preferences of consumers
 Consumers expectations

Factors explained below

 Price of the product: there is an inverse negative relationship between the price of a product
and the amount of that product consumers are willing and able to buy. Consumers want to buy
more of a product at a low price and less of a product at a high price. This inverse relationship
between price and the amount consumers are willing and able to buy is often referred to as the
law of demand.

 The consumers income: the effect that income has on the amount of a product that consumers
are willing and able to buy depends on the type of good we are talking about. For most goods,
when income rises the demand for those products will increase. We call this type of goods
normal goods. However for some goods the effect of a change in income is a reverse. Which

6
 means, when income rises the demand for those products will decrease. This type of goods are
called inferior goods.

 Price of related goods: as with income, the effect that this has on the amount that one is willing
and able to buy depends on the type of good we talking about. There are two types of related
goods, one is complementary good and other one is substitute good. If the price of a
complementary good goes up, the law of demand tells that we will be willing to buy fewer of
the related good. On the other hand if the price of a substitute good goes up we will be willing
to buy more of the related goods.

 The tastes and preferences of consumers : this is a less tangible item that still can have a very
big impact on demand. there are all kinds of things that can chnage one tastes and preferences
that cause people to want to buy more or less of a product. For example if a celebrity
endorsers in new product, this may increase the demand for a product. on the other hand if a
new health study comes out saying something is bad for your health, this may decrease the
demand for the product.
 Consumers expectations: it doesn't matter what is currently going on-once expectations for the
future can also affect how much of a product one is willing and able to buy. For example if you
hear that Apple will soon introduce new iPod that has more memory and longer battery life you
and other consumers may decide to wait to buy an iPod until the new product comes out.
Similarly if we expect the price of petrol to go up tomorrow we may feel up our cars and bikes
with petrol now. so our demand for petrol today will increase because of what we expect to
happen tomorrow.

7
 Company profile

Hindustan Unilever Limited is an Indian largest fast-moving consumer goods company with a
heritage of over 80 years in India. The company headquarter is in Mumbai, Maharashtra, India.
HUL works to create a better future every day and helps people feel good and get more out of
life with brands and services that are good for them and good for others.

Name Hindustan Unilever Limited

Parent Company Unilever (a British-Dutch company)

Lever Brothers India Limited

Founder Companies United Traders Limited
Hindustan Vanaspati Manufacturing Company

Date of Establishment 17 October 1933

Headquarter Mumbai, Maharashtra

Revenue (in 2020) INR 38,785 crores

CEO Sanjiv Mehta (10 Oct 2013–Present)

Registered Address Unilever House, B.D. Sawant Marg, Chakala,

Andheri East, Mumbai-400099, India.

Email mediacentre.hul@unilever.com

Website www.hul.co.in

Brands of HUL

AXE, Boost, Cif, Comfort, Cornetto, Dove, Hellmann’s, Horlicks, Horlicks Cardia Plus, Horlicks
Growth Plus, Lite Horlicks, Horlicks Protein Plus, Junior Horlicks, LUX, Knorr, Lifebuoy, Lipton,
Love Beauty and Planet, Magnum, Mother’s Horlicks, Pepsodent, Pond’s, Rexona, Sunsilk,
TRESemme, Vaseline, Women’s Horlicks, CloseUp, Domex, Fair & lovely, Clear, Aviance, pears,
LAKME, Unilever pure it, Surf Excel, Rin etc.

8
Detergents of Hindustan Unilever

Hindustan Unilever has a diverse portfolio of different FMCG brands that includes several types
of detergent powder with various price ranges.

In this report, we are going to analyse the factors that are affecting the demand of three
different detergent powders of Hindustan Unilever and they are :

Rin: renin acts as one of the oldest brands of Hindustan Unilever ltd. Initially he was launched
as a bar soap for cleaning in the year 1969 and this product acted as the iconic product and
later as years passed away towards its production innovation in 1994 the company launched
the same product Rin in the form of a detergent powder. Letter in order to provide perfect
satisfaction towards whitening and shining of various types of clothes used in laundry the brand
head is growth and expansion of products under different names and due to the promise and
effect of outcome in delivering the brand rained holds out a good trust and position in the
minds of Indian customers.

Surf Excel: surf Excel X is one of the premier category towards various cleaning products with a
good market position. Surf Excel acts as one of the oldest detergent powder and the product
had its launch in the year 1959 and later due to company market situation the product has
been fine tune into different varieties and released under different names. Moreover the same
product is marketed in different names at other countries and due to effective results the brand
surf Excel as a Pioneer product in the market even till now.

Active wheel: active wheel is another well-known detergent brands from Hindustan Unilever
limited and its advertising strategy made it to be a popular product. Active will provide the user
with a good cleaning experience and active will also take different types of varieties like laundry
soap bars and powders active will due to its competitive factors has resigned his products in
different flavour of pregnancy is like lemon and orange, lemon and Jasmine and active will gold.

Objective of the Project

9
The present study tries to achieve following objectives :

1. To analyze the factors affecting demand of detergent powders in Agartala.

2. To find out if there is any significant anomaly between the consumer choices and the
demand determinants.

Limitations

 The study was confined within the locality of town Indranagar.

 The sample size is small so there is a margin of error.

Research Methodology:
The present study is based on the primary data, mainly taken from the Town Indranagr, a
locality in Agartala . The survey method was used to conduct the study and questionnaire was
used as a data collection tool for the fulfilling the objectives of the study. The data collected
through questionnaire, observation and informal interviews was thoroughly organized and
tabulated using simple statistical method, tables and percentage. The table and graphs were
generated using MS-Excel-2007 and MS-Office. The questionnaire was prepared in English
language but translated in Bengali during survey so that respondents could easily understand
the items mentioned in questionnaire. Total 11 questions were asked to each individual.

1. Area of inquiry Town Indra Nagar.

2. No. of Selected people or sample size is 20

Types of Data analysis:-

Descriptive analysis; Percentage Analysis, Data analysis with Pie chart, bar chart and line
graph.

10
 Data Analysis
1. Age of the consumer-

Age
18-25 years 26-35 years 36-45 years 45-above
10%

25% 45%

20%

Interpretation : In this above graphical representation, we can see that out of 20, 45% are 18-
25 years, 20% are 26-35 years,25% are 36-45 years and only 10% are above 45 years.

2. Gender of the consumers-

Gender
Male Female Others

35%

65%

Interpretation: In this above graphical representation, we can see that 65% are male
respondents and 35% are female respondents.

11
3. Monthly income range of the consumers –

35000-above; 2 Below
10000; 3

20000-35000; 5

10000-20000; 10

Interpretation: In this above graphical representation, we can see that out of 20, 3 respondents
are below 10000, 10 respondents are earning between 10000-20000, 5 respondents are
earning between 20000-35000 and only 2 respondents are earning above 35000.

4. For how long have you been earning in this range ?

12

10

Axis Title 6

0
Below 10000 10000-20000 20000-35000 35000-above

Interpretation : In this above graphical representation, we can see that Out of 20 respondents
two earning below 10000 for one year and one is earning below 10000 for 1 - 3 years. At 10000-
20000 range, six respondents are earning for 1 year, three respondents earning for 1-3 years
and only one respondent is earning for above 3 years. For the range of 20000-35000, two
respondents are earning for 1 year, another two respondents are earning for 1-3 year, and only

12
one respondent is earning above 3 years. For the range of 35000-above, only one person is
earning for 1 year year and another one person reasoning for 1 -3 years.

5. Money spent on buying household items every month-

6000- Below
above; 3 1000; 4

3000-6000; 4

1000-3000; 9

Interpretation: From the above graphical representation we can see that only four respondents
spend below 1000, 9 respondents spend between 1000 and 3000, 4 respondents spend
between 3000 and 6000 , and three respondents spend above 6000.

6. Where do customers prefer to shop ?

Shopping Preference

17%
34% Big bazar
departmental store
local market
local shop

37%
12%

Interpretation: from the above graphical representation we can see that 34% prefer to shop in
Big Bazaar , 12% prefer to shop at the departmental Store , 37% prefer to shop at local market,
17% prefer to shop at local shop.

13
7. What detergent powder do you regularly use ?

other; 5
Surf exel; 3

Rin; 5

Active wheel; 7

Interpretation: from the above graphical representation we can see that 3 respondents use
surf Excel , 5 respondents use Rin, 7respondents use active will and 5 respondents use other
detergent powders.

8. How long have you used this product ?

Usage duration
6

5 5

4 1 year
1-3years
3 3 3 3 years-above

2 2 2 2

1 1 1 1

0 0 0 0
Surf exel Rin Active wheel other

from the above graphical representation we can see that, out of 20 respondents, one
respondent uses a surf Excel for one year and two respondents uses surf Excel for 1 to 3 years.
In case of Rin users, 3 respondents use it for one year , 5 respondents use it for 1-3 years and
only 1 respondent uses it for more than 3 years. Incase of active wheel, 3 people are using it for
1 year, 2 people are using it for 1-3 years.

14
9. What do you like about this product ?

Axis Title 3

0
Surf excel Rin Active wheel

Interpretation: from the above graphical representation we can see that 3 surf Excel users said
quality. 2 Rin users said quality and 3 choose price . Incase of active wheel, 5 users said price
and 2 said fragrance.

10. If you wanted to buy other products, what characteristics would you look for in them ?

10
9
8
7
6

Axis Title 5
4
3
2
1
0
Below 10000 10000-20000 20000-35000 35000-above

Interpretation: from the above graphical representation we can see that out of 4 people who
chose usage quantity ,2 are from the income range of 10000-20000 and 2 are from the range of
20000-35000. No one chose fragrance. Out of 7 people who chose quality 1 has a range of
10000-20000, 3 has a range of 20000-35000 and rest 3 has a range of above 35000. And out 9

15
people who chose price , 3 people has a range of below 10000 and 6 people have a range of
10000-20000.

11. What makes you buy this detergent powder and not any other detergent powder ?
6

2
Below 10000
1 10000-20000
20000-35000
0 35000-above
ice s ce ty
er en ali
Pr d r u
ow ef
e Q
v ep pr
titi n
pe Ow
m
co
of
ir ce
P

Interpretation: from the above graphical representation can say that 7 people chose price and
two of them have range of below 10000 and 5 of them have a range of 10000-20000. Free
people choose price of competitive powders and one of them has a range of below 10000 and
two of them have a range of 10000-20000. Three people chose on preference, two of them
average of 20000-35000, one person has a range of above 35000. Out of 5 people who chose
quality, 3 people have range of 20000-35000, and two people have a price range of above
35000.

16
 Conceptual relevance
From the above graphical representations of the data gathered from the survey, we can notice some
patterns in the responses of the customers or consumers of different brands of detergent powder from
the company of Hindustan Unilever. For instance out of 20 respondents only 3 people earn below
10000, 10 people earn between 10,000 and 20,000, five people earn between 20000 in 35000 and only
two people earn above 35000. So when we compare the income data of the respondents with their
brand choices and purchasing choices, we start noticing some patterns. For example more respondents
spend below 1000 and between 1000 and 3000 for buying household items every month and less
people spend between 3000 and 6000 and above 6000 for buying household items. This relates to the
income of the respondents as more number of people earn between 10000-20000 and below 10000.
Thus thus proving the relation between income and their demand. Further, the brands respondents
choose to buy also relate to their income. for example more people buy active wheel than surf Excel. If
we take the price of 1 kg detergent powder packets surf Excel is more expensive than active wheel , thus
proving that price also has an impact on the buying decisions of consumers.

When we look at graphical representations of 9, 10 and 11, we can see that the reason for buying a
particular detergent powder for people very nice in terms of their income range and price of the
product.

Conclusion
So, as we have seen in the report, the demand of detergent powder in Agartala does get
influenced by the factors such as income , price and own preferences. Thus proving the law of
demand and its determinants in a more live practical way in real life circumstances.

17
 Reference

 Various cleaning products from Hindustan Unilever Ltd

(HUL)www.indiastudychannel.com (9:55 PM, 08\02\22)

 Hindustan Unilever Limited Company Profile, Wiki, Networth,

Establishment, History and More (deshicompanies.com) (9:25 PM,
08\02\22)

 www.business-standard.comwww.business-standard.com
(9:05 PM, 08\02\22)

18