BUS 120(CRN-13052)

CLASS DAY AND DURATION: - WEDNESDAY (9:30 TO 12:30)

GROUP: -9

GROUP MEMBER: -TARANVEER SINGH 7009372358 Taranveer.Singh1@student.ufv.ca

MANDEEP SINGH 8264411873 Mandeep.Singh12@student.Ufv.ca

ANURAG DHINGRA 8448952079 Anurag.dhingra@student.ufv.ca

ISHAAN CHAWLA 9876466669 Ishaan.chawla@student.ufv.ca

DATE SUBMITTED: - 08-02-2022.

DATE DUE: - 09-02-2022

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 Table of contents
Certificate of originality………………………………………………………………………3
Acknowledgement…………………………………………………………………………….4
Summary………………………………………………………………………........................
5
Question and Answer…………………………………………………………………………6
Original research done by the group………………………………………………………...13
Relationship to Concept……………………………………………………………………..14
References…………………………………………………………………………………...15

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 Certificate of Originality

Our signature below confirmation that we have final control over the
work submitted for this case study, that it really is our original work,
that it was written by us, that it is copy (except as indicated in the
acknowledgment and intext citations or properly cited references), and
that it has not been required to submit to this or any other educational
establishment.

Signatures:

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 Acknowledgment

Thank you to our professor, Dr. Shyam Vyas, for giving us the wonderful opportunity to
learn about professional marketing methods through the usage of a case study of SOFT
SOAP. We were able to perform a more in-depth study of the current situation and the
company's development as a result of your instruction. It was a fantastic learning experience
for me. Thank you to all of the independent resources who helped us get all of the materials
we needed to complete the project.

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 Summary
Soap use in the United States is on the rise, with an annual expenditure of $1.3 billion. Sales
of soap in India are rising in both volume and value as the country's population becomes
more health-conscious and concerned about personal cleanliness. For more than a century,
people in the United States and the Native American community purchased soap in bars or
cups. In 1980, a small Minnesota company began producing liquid soap. Soft soap was a
liquid soap packaged in an exquisite plastic bottle with a pump dispenser. The product was
so well-liked that there are more than 50 manufacturers battling for market share. Liquid
soap's market share has remained stable at 8% since it first reached 9% of the soap market.
In response, retailers have taken action by decreasing the number of brands they carry.
Marketing materials such as flyers, samples of products, and advertising support are
becoming more commonplace. Several liquid soap companies have started to give discounts,
greater exchange quotas, and price reductions in order to boost their market share and
encourage distributors to manage and resell their liquid soap brands. Customers only wash
their hands with Minnetonka liquid soap, which tarnishes the brand's good name. Liquid
soap is being advertised widely in India as a way to "wash your hands" (especially before
meals). Most liquid soap bought in North America is used in the bath or shower, accounting
for 75% of the total. As a result, Soft soap's economic potential seems to be limited–and it
will remain so as long as consumers keep it in their sinks. It's clear that customers aren't
happy. Independent research suggests that Soft soap's high price is frustrating the market.
Soft soap, according to Minnetonka, is expensive to buy, but cheap to use. It's a challenge for
the corporation to educate and change customer views, particularly among homeowners and
housewives. According to Consumer Reports magazine, this was not the case in a survey of
soaps. Proctor & Gamble and Armour–Dial have created liquid soaps of their own, which
has Minnetonka worried. Proctor & Gamble came out with an Ivory version of the same
product. The most common concern is that large corporations would crush smaller
competitors. The Minnetonka vs. Minnetonka rivalry was heated. However, John Takos, the
company's CEO, preferred market research. When it came time to discover more about the
target audience's preferences, uses, and expectations, he turned to a market research agency
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(SVMARC). Liquid soap market research has unearthed new avenues for the corporation to
boost its position. Studies have shown that individuals are becoming more aware of the
health benefits of keeping their hands clean. Hand washing is on the rise. People are open to
new ideas. The company is exploring several kinds of liquid soaps, such as liquid children's
baths. Create products like "dirty face" soap based on renowned children's figurines by
joining licencing agreements. Soap that physicians may recommend for people whose hands
are covered in oil, grease, and filth should be developed. In this case, create a new
formulation for young people who are self-conscious about their skin tone. The making of a
moisturising and scented liquid soap for women who are between the ages of 16 and 44.

Question and answers

Q1: Do a situation analysis of the soap market in Indian context – and see if liquid soap
has made any headway in marketplace? What would your group suggest to the major
players and why – in Indian context?
Ans 1.
Strengths: Consumer goods section, which includes laundry and toilet soaps, liquid, bar,
and powder synthetic detergents, is dominated by the soap manufacturing business, which
accounts for more than 50% of the consumer goods segment. In the financial year 2020, the
beauty soaps had a market share of 50% of the total. In India, herbal soaps are the category
with the quickest growth rate.
Weaknesses: Soaps made by well-known brands in India use chemicals that can damage
the skin. People who think about buying soap a lot before going to the store don't want to
buy them because they don't want to use harmful chemicals.
Opportunities: Soap use in rural areas alone has increased by about 50% because people
are more aware of how important it is to keep their hands clean. Soap producers can start
selling soaps in liquid sachets that are very cheap for people who don't have a lot of money.
Soaps with cooling agents and herbs in them are getting a lot of attention from people.
Threats: Every day, there is more competition in the soap industry. Soaps in different sizes
and sachets are becoming more popular with marketers who want to reach low-income
people.

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In 2021, Lifebuoy was the biggest soap brand, with a 17.7 percent market share, followed
by Dove, Biotique, and other brands. Margo and Medimix are now the market leaders in
herbal and therapeutic soaps. With the advent of government programmes such as Swachh
Bharat Abhiyan, the soap sector has developed dramatically.
As personal cleanliness becomes a national concern, demand for health soaps is expected
to grow in the near future. Thus, it is in the interest of businesses to label their bar soaps as
liquid sanitizers such as Dettol or Lifebuoy, so that customers can quickly recognize their
goods. The word 'herbal' is gaining popularity these days as more individuals express
interest in chemical-free medicinal soaps. It is in the best interests of businesses to offer
natural soaps with herbal variations. Companies could create compact cheap liquid sachets
to suit the wallets of low-income families, since rural soap use is at an all-time high.

Q2: Was taking the decision to commission market research the right approach? Why
do you say so?
Ans 2.

Minnetonka's CEO, John Takos, commissioned a market research firm (SVMARC) to do

customer research. Following the study, the organization had a thorough understanding of
the customer attitudes in the target markets. The study produced some intriguing findings
and addressed issues such as how the business should proceed in order to get a larger market
share in the future.

The study demonstrated an increasing awareness of personal hygiene across all segments of
society. Hand washing became more popular as people began to believe that clean hands
were necessary for good health. The firm announced the debut of a new product in the "tub
and shower" category. The corporation updated the product's overall idea, packaging,
marketing communications, and price.

Currently, the corporation is investigating various alternative liquid soap options, including
the following:

1. Liquid soap for “dirty hands”: The Company is determining a market sector that may
be further subdivided into consumer/ organizational/ industrial/ institutional /

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 business/ governmental markets in order to better fulfil the requirements of those
persons whose hands get entirely contaminated with dirt, oil, grease, and do forth.

2. Liquid soap for children: As moms become increasingly aware of the transmission of
illness from filthy hands to children, the corporation is contemplating going into a
licence arrangement to position packages that resemble iconic children icons such as
Walt Disney characters.

3. Liquid soap for the health conscious: It is exploring introducing dermatologist-

recommended items for youngsters worried about skin imperfections, such as a liquid
soap. Another example is a formulation developed specifically for older people who
are worried about severe skin dryness.

4. Liquid soap for the beauty conscious: It is exploring the development of a liquid soap
that is loaded with moisturisers and perfumes — specifically for ladies between the
ages of 16 and 44 years old, according to the company.

Q3: What stage of the product life cycle (PLC) does liquid soap appear to be in? What
evidence supports your conclusion?
Ans 3.

Product lifecycle is the course of a product’s sales and profits over its lifetime. The product
life cycle (PLC) refers to the different stages a product goes through from introduction to
withdrawal. Stages of product life cycle:

Introduction - The introduction stage is the initial step of a product's life cycle. At this time,
there is no competition, prices are quite high, markets are restricted, and the product is
relatively unknown. "A Minnesota company has begun selling soap in liquid form! Soft soap
was a liquid soap that was packed in an appealing plastic bottle with a pump dispenser. The
product was such an instant success with the general public that there are currently roughly
50 rival product brands available!"

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Growth- As a product becomes popular, it enters the second stage of its life cycle, referred
to as the growth stage. This stage sees a rise in demand, a decrease in pricing, an increase in
competition, and a significant expansion of distribution. The management team is focused on
increasing market share via increased penetration of current markets and expansion into new
areas. "Attests to the belief that a good idea gets replicated, and that numerous me-too item
will arrive on the market once a good idea captures the purchasing public's interest."

Maturity - The product reaches maturity when competition intensifies, and the market
becomes saturated. Profitability declines as a result of competition, while marketing
expenses increase. Prices are reduced as a result of competition and technological
advancements. "After capturing a rapid 9% of the soap market, liquid soap's market share
has stabilized at approximately 8%."

Decline - This stage is defined by the gradual displacement of a product by new goods or a
shift in customer purchasing behavior. Sales decline, and promotional expenditures must be
reduced. The drop may be swift if the product is quickly phased out of the market, or it may
be gradual if new applications for the product are discovered. "Several liquid soap
manufacturers have been giving discounts, increased trade allowances, and price reductions
in order to boost their individual portion of the overall market and to entice shops to handle
and resell their liquid soap brand."

In our opinion, the product was in the Growth Stage.

Customers' needs and perceptions guided the design and marketing of the product. There
were no rivals for the Minnetonka company's product when it was introduced, and it was a
big hit at the time. As a result, other businesses recognized an opportunity and responded
with a "Me-Too" product and aggressive marketing efforts that included posters, samples,
sales promotions, and print and television advertising. A number of retailers began giving
discounts, increased trade allowances, and price reductions in an effort to boost their
particular portion of the entire market. If they hadn't hired SVMARC, this product would
have evolved or provided no difference to the company. When "Tub and Shower" was
introduced, the company's sales began to grow again. Branding was used to target certain
customers in this case.

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Q4. Evaluate the four possibilities for a multi-segment marketing strategy – which
possibility appears best to your group?
Ans 4.

Marketing is a branch of business that is involved with recognizing and addressing the needs
of various segments of the public. Marketers use research to categories prospective
customers into groups based on characteristics that they have in common.
These traits enable the identification of similar vocations, income levels, geographic
groupings, lifestyles, ambitions, and attitudes. Multi-segment marketing is when a business
targets many market segments. Due to the product's wide popularity, some businesses
provide it to many demographics, while others create unique product lines that appeal to
certain demographics.

Geographic segmentation

A simple yet effective segmentation approach is to separate your market by area. The
location of a purchaser enables you to better understand their demands and to provide
location-specific marketing. Segmentation of a geographic area may take a variety of forms.

The most critical step is identifying clients based on their geographic areas, which include
their country, state, county, and zip code. Consumers may also be identified based on the
characteristics of their geographic location, such as climate, population density, and whether
or not the location is urban, suburban, or rural.

Demographic segmentation

Demographic segmentation is a very popular kind of segmentation. It is a term that refers to

segmenting audiences based on observed distinctions between individuals. Age, gender,
marital status, family size, occupation, education level, income, race, national origin, and

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religion are just a few of these factors. The most fundamental kind of segmentation is the
division of a market by demographics. Combining demographic and other segmentation
techniques may enable you to further narrow your target. One benefit of this kind of
segmentation is that the data is quite easy to get and is relatively affordable.

Behavioral segmentation

You can also divide your market into groups based on how customers act, which is very
important when it comes to your own product. The best way to tailor your message to your
audience's needs is to divide them into groups based on how they act and what they want.
Many of the things you could look into are related to how people use your product, website,
app, or brand. Here are some examples of how people might act.

 Users' online purchasing behaviours across all websites: All websites must examine a
user's online shopping habits across all of their websites. This is due to the fact that it
may indicate the potential that customers would make purchases via the website.

 Users' actions on a website: It is possible to monitor visitors' behaviour on your

websites in order to have a better understanding of how they engage with your
products and services. In addition, you could measure how long individuals spend on
your site, if they read articles from beginning to finish, what sorts of material they
click on, and other information.

 Customers' desired benefits: This relates to the requirements that they are attempting
to satisfy by acquiring the item.

 Users may be classified into the following groups based on their frequency of usage:
According on whether someone is a heavy, medium, light, or non-user of your
product, your messaging should be tailored accordingly.
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  Customers often develop brand loyalty after using a product for a length of time:
Customers may be classified mostly based on how steadfast they are in your logo, and
your advertising and marketing can be tailored to suit their needs and preferences.
Behavioural information is helpful since it directly relates to how a consumer interacts
with your brand or goods and can be obtained quickly. Because of this, you will be
more effective in your sales efforts with this group of people.

Psychographic segmentation

Psychographic segmentation is similar to demographic segmentation in that it focuses on

mental and emotional qualities rather than physical features. These characteristics may not
be as visible as demographics, but they may provide vital insight into the motivations,
preferences, and requirements of your target audience. Understanding the qualities of your
target audience can assist you in creating more effective material for them. Personality traits,
interests, beliefs, values, attitudes, and lifestyles are all examples of psychographic
characteristics. If you see that people from various demographic groups respond to your
content in different ways, you may wish to include some psychographic information. When
it comes to buying or not buying your product, clicking on or ignoring your ad, and
connecting with you in other ways, psychographics offer insight, while demographics supply
essential facts about your target market.

Q5. What additional products – if any would you develop if you were responsible for
P&G or Armor-dial product management?
Ans.5

The other goods that we would like to develop include a liquid handwash that would replace
bar soap in order to prevent the spread of germs in public spaces. Offering customer care

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services, such as sanitary napkins in public locations, will be able to increase the company's
reputation and sales, as consumers will be more likely to purchase other items as a result of
the company's services. Bathing products and more sanitary washes for protection and body
cleaning would be among the additional offerings. Because the vast majority of customers
favour quality over quantity, these items will generate more cash than their counterparts. By
developing goods that are softer and more acceptable for newborns, since moms are more
concerned about the health of their children's skin. The sales will increase as more items are
used by women between the ages of 16 and 40, and as more effective products with a sensual
aroma are offered to them, the amount of enjoyment they get will increase. The second
product would be herbal and medicinal shampoos, which would encourage consumers to
purchase more since they would help them grow their hair. People's enthusiasm in
purchasing will grow as a result of the plans that are offered.

Original research done by group

The Indian soap market is predicted to increase at a compound annual growth rate (CAGR)
of 5.5 percent 3 from 2016 to 2022. A coating product, such as soap, is an example. Over 80
percent of families in the world's most populated nations reside in urban and rural regions.
Cosmetology soaps accounted for about 50% of the market in 2018, with the health soap
category accounting for 28.6% of the market. Laundry and toilet soaps, as well as synthetic
laundry detergents, are all part of the laundry detergent business. In the actual world, there
are liquids, powders, and sticks to be found.

The following are some of the ways that market research might benefit a company:

1. Analyse customer purchasing behaviour: Through research, you may learn more
about consumer purchasing behaviour. Consumer behaviour, including their attitudes
toward items, their likes and dislikes, and their environmental context are all studied.

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 2. Prepare plans and make reasoned business judgments in accordance with the
strategies and guidelines that have been researched. Reorganized and coordinated in
order to make the best choices for the firm while taking into consideration the needs
of the customer.

3. Concerning the present business's concerns, as shown in the preceding case study,
completing company research work will assist them in overcoming their difficulties
and gaining a competitive position in the market. Market research is beneficial to the
organisation. To assist you in confronting and overcoming challenges, you should
develop new methods and make new choices.

4. Identification of business expansion opportunities: Market research discovers client

requirements and demand, which encourages the firm to manufacture in response to
those wants and demands.

5. Increase your income while also beating the competition: Getting to know your
clients is really advantageous. Increase revenue while maintaining market position
and creating severe rivalry among competitors, to put it another way.

Relationship to concepts

1) Product Development: Essentially, it is the act of altering the form, size, and colour of
already-existing objects. For example, in the 1980s, Minnetonka began offering their bar
soap in liquid form, packaged in an aesthetically pleasing plastic container with a dispenser
pump.

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2) Increase in competition: When a product reaches the growth stage, the early majority
and rivals arrive, resulting in the beginning of competition in the marketplace. When
Minnesota's invention gained widespread notice, it was quickly copied, resulting in the
introduction of a slew of similar goods to the market.

3) Visual equity: When a product is displayed on a shelf, it is the packaging that makes it
stand out from the crowd. For example, Proctor & Gamble has produced a competitive
product that bears the Ivory name, which is well-known in the industry.

4) Market Research: When it comes to corporate decision-making, research is a

methodical, objective process that is undertaken in order to eliminate ambiguity. Example:
Minnetonka updated or adjusted its product and packaging as well as its price structure and
marketing communications to better meet the needs of each identified customer category.

5) Segmentation: It is the process of segmenting the whole market into separate categories,
such as young people, women, and so on. According to the conclusions of the study, the
company is deemed to satisfy the demands of women between the ages of 16 and 44,
children, and those who are health aware.

6) Push Strategy: Push strategy refers to the practise of encouraging customers to purchase
items farther down the supply chain. As a way to expand their individual portion of the
entire market and to encourage merchants to handle their liquid soap brand and resell them
down the chain, some liquid soap companies began giving discounts, increased trade
allowances, and price reductions.

References

Soap & bath products market research reports & soap & bath products industry analysis |

MarketResearch.com. (n.d.). MarketResearch.com: Market Research Reports and Industry

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 Analysis. https://www.marketresearch.com/Consumer-Goods-c1596/Consumer-Goods-Retailing-

c80/Soap-Bath-Products-c1820/

Liquid soap market size, share & trends | Analysis forecast by 2027. (n.d.). Allied Market

Research. https://www.alliedmarketresearch.com/liquid-soap-market-A06841

(n.d.). Market Connections.  https://www.marketconnectionsinc.com/commission-market-research/

Soap manufacturer business plan - Market analysis summary. (n.d.). Bplans: Business Planning Resources

and Free Business Plan Samples. https://www.bplans.com/soap-manufacturer-business-plan/market-

analysis-summary/

Study of Indian soap market. (n.d.). Scribd. https://www.scribd.com/document/318296658/Study-of-Indian-

Soap-Market

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