Developing a Suitable Marketing Strategy for White Detergent Powder (Part 2)

MEASUREMENT AND SCALING PROCESS

In order to analyze data some measurement and scaling procedure is used. In this research four types of scales such as nominal, ordinal, interval and ratio scale is used. Nominal scale is used to identify classify objects (Brand number, store type etc.). Ordinal scale is used to indicate the relative position of the objects (Ranking the four brands of soap). Interval scale is used to differentiate the objects (Attitude and opinion of the shop owner). Ratio scale is used to identify the market share.

QUESTIONNAIRE PREPARATION

A planned questionnaire is very important to do the research. In this case a questionnaire is prepared by considering following criteria:

• It is pertinent for research.
• Correctness of the questionnaire.
• Questionnaire is semi structured.
• Questions are designed to get spontaneous response.
• Simple language is used to prepare the questions.
• Leading & loaded questions is avoided.
• Easy to understand questions.

SOURCES AND METHOD OF DATA COLLECTION

SECONDARY DATA

Secondary data may be available from library, website, journal etc.

PRIMARY DATA    

The procedures that have applied during the research process are-

  Face to face Interview.

  Observational studies

  Questionnaire Survey

Data Collection Instrument

For data collection, the structured questionnaire is used. Data is collected through one set of questionnaire.

 Data Collection Techniques

Questionnaire survey in the form of through questionnaire and personal interviewprocess is used for data collection. In this case, store acted as a mall. Retailers inside the stores consumers come in the stores is intercepted and interviewed.

 Data Analysis and Interpretation

After collection of all essential data, those are analyzed following ways:

• Subjective Analysis: Qualitative data is analyzed critically using judgment and experience.
• Statistical Analysis: Appropriate statistical tools are used to analyze the data. Number of tools is used for this reason. The primary data from the questionnaire will be placed in excel sheet. Frequency distribution and arithmetic mean is used to analyze data. Test of hypothesis done through one and two tail Z-test. Cross tabulation is used to find out various relationships with various variables. All these analysis will be done through the use of MS EXCEL. Following tests will be considered:
• Z-test
• Frequency Counts

 Required Information

To prepare the report, different types of information is collected from the concern people such as shop owner and customers. To collect information a semi structured questionnaire is used. In addition to this, some information is collected from expert.  Secondary sources is also be used for this research.

ASSUMPTION OF THE STUDY

No research work is free from assumption. The assumptions are with the respect to the organizations, market, conditions, position. The assumption can be pointed out as below:

  Data collected through questionnaire and personal interview from the respondents are correct.

  The research methodology is appropriate.

  67 Sample size used in the study is representing the population.

REPORT REVIEW

The report is divided into two different parts. First part of the report is the organization part, which will give a general picture of the organization i.e. Kohinoor Chemical Company (BD) Limited as a whole, including the businesses it does. The other part is the project part, is assigned by the organization to fulfill the requirement of the internship as well as the need of the company. The topic is ‑ “Developing a suitable marketing strategy for white detergent powder-a new product of KCCL”

LITERATURE REVIEW

[1]In India Dr. S. K.  Laroiya conducted a comparative study on Indian detergent market. They found that the satisfaction depends on the detergent quality of the product (Dr.S.K. Laroiya,2004). Another research conducted by Ariel on the Indian laundry market indicates that ‘fragrance’ in detergents is an important factor of delight for the home-maker in her daily laundry chore. There was a case about the Price Wars in the Indian detergent market was developed. (T Phani Madhav, published in 2004).

 [2]P&G initiated the price wars by reducing the prices of its detergent products and other players such as HLL and Henkel followed suit. P&G’s price cuts, at the time when the fast moving consumer goods (FMCG) industry was going through a sluggish period, was seen as an attempt to wrest advantage from HLL, which was grappling with decelerating growth.

 Pranesh Shukla prepared a project report on Nirma Washing Powder in 1990.Her topic was “Marketing Research on Nirma and its Supply Chain Management. In her study she found the following things:

For harried housewives, struggling to balance their monthly budgets, Nirma came as a boom. It was much cheaper than Surf, which had already gone well out of their reach; and it washed clothes nearly as well. Its cleansing power was far superior to that of the slabs of cheap washing detergents that had been their sole alternative until then. By the early 1980s the burgeoning sales of Nirma reached a rate of growth that was twice or thrice that of the industry in general. Moreover, Nirma operated in the small-scale sector and, therefore saved an enormous amount of excise duty that multinationals had to pay on every kilo of detergent produced. The latter simply could not hope to bring the price down to a level that was attractive enough for the middle and lower-middle classes, which were the bulks segments for Nirma sales. The pricing policy adopted by Nirma for its Nirma washing powder i.e. adequate Quality at an Affordable price has challenged the mighty HLL’s Surf. Nirma Washing Powder 1kg is Rs 18.00 and Nirma Washing Powder 500grams is Rs 9.00. Thus it is a well known fact that Nirma’s best Unique Selling Proposition is Price .The result of there cost effective product offering is that though the industry has been growing at the rate of 15 per cent annually, Nirma’s growth has been at least 30-35 per cent a year for the last few years. (Pranesh Shukla, 1990)

[3]Nirma has been successful in keeping its prices at such affordable levels primarily due to their strategy of backward integration projects. These projects had been undertaken with a strategy to become the lowest cost detergent manufacturer in the world. Self sufficiency in key raw materials will give protection against commodity cycles besides yielding substantial savings in raw material cost. The company estimates a total cost saving of 25% in material and handling costs due to the backward integration projects. The LAB plant has yielded about 12% cost savings and the company expects a similar cost saving of about 12-15% once the soda ash plant stabilizes. Overall the backward integration has yielded a cost saving of Rs0.8-1bn last year. Post completion of backward integration the company now plans to focus on building large volumes and gain from economies of scale.

As brand name is the name of the distinctive product, services or concepts .Branding is the process of creating or disseminating the brand name. Branding can be applied to the entire corporate identity as well as to individual product and service names. Brands are usually protected from use by others by securing a trademarks or service mark from an authorized agency, (Shenin and Schmitt, 1994)⁴usually a government agency.

 Before applying for a trademark or service mark, people need to establish the someone else has not already obtained one for the name the company has proposed. Once the company found that none else is using it, the company can begin to use this brand name as a trademark simply by stating that it is a trademark simply by using ‘TM’ symbol (Aaker and Keller, 1990)⁵ where it first appears in a publication or web-site. After the company receives the trademark then it can use the registered symbol after the trademark. Brands are often expressed in the form of logos, graphic representations of the brand.

THEORETICAL REVIEW

INTRODUCTION

According to Peter F. Drucker, “The fundamental purpose of a business is to create a customer. And since, the purpose of a business is to create a customer, there are two, and only two core functions of a business, marketing and innovation” (Drucker, 1954). Marketing, according to Drucker, is the distinguishing function of a business. In other words, marketing is what makes a company different from its competitors. Innovation, is entailed with creating better values for a firm’s customers, which the latter finds compelling and more than those offered by its competitors. Hence, the genesis of creating value, to satisfy this core purpose lies in the firm’s ability to identify the needs and expectations of its target market, and implementing the right strategic and operational steps to design, communicate and deliver these relevant values.

Concurrently then, the viable starting point for any successful market driven company must be to identify who their current and potential customers are, what they want, and how to cater to these wants in a more compelling way than its competitors. Hence, the cornerstone of any viable marketing strategy should be a sound, and well thought out market research.

A targeted market research can play an integral role in the marketing efforts of any company, even more so in the FMCG industry, which is prone to variety seeking behavior, where products are often consumed on the basis of brand loyalty, rather than any significant perceived difference in attributes (Hawkins, Best, & Coney, 2004). Sound market sensing abilities can guide a company in identifying segments within a market, target the most viable ones, and understand what positioning strategies they would need to employ in order to reach their desired outcome. In addition, market research can play a pivotal role in shaping the marketing mix of the relevant products, and provide a statistically significant projection of the likely customer response from launching a new product within a market.

Hence, for Kohinoor Chemical Company (BD) Limited, conducting an in-depth market research in the Detergent category in Bangladesh to identify current customer wants, and to develop and formulate marketing strategy of of launching white detergent in the market was imperative. Furthermore, past research have indicated consumers to be more price elastic in the detergent category in the subcontinent, compared to the U.S. and European markets (Unitrend, 2006). Hence, a proper research in the price sensitivity of consumers with respect to white detergent was also essential in devising the pricing strategy for KCCL’s new product.

 MARKETING STRATEGY

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal. And is a method of focusing an organization’s energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm’s marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena.

Types of Strategies

Marketing strategies may differ depending on the unique situation of the individual business. Typically there are four types of market dominance strategies:

• Leader
• Challenger
• Follower
• Nicher

 STRATEGY FORMULATION

Strategic formulation is a combination of three main processes which are as follows:

Performing a position analysis, self-evaluation and rival analysis: both domestic and outside; both micro-environmental and macro-environmental. Coexisting with this judgment, objectives are set. These objectives should be parallel to a time-line; some are in the short-term and others on the long-term. This involves crafting vision statements (long term view of a possible future), mission statements (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic), and tactical objectives.These objectives should, in the light of the condition analysis, suggest a strategic plan. The plan provides the details of how to achieve these objectives.

MARKETING ACHIEVEMENT PLAN

Placement and execution of required resources are financial, manpower, operational support, time, technology supportOperating with a change in methods or with alteration in structure.Distributing the specific tasks with responsibility or molding specific jobs to individuals or teams.The process should be managed by a responsible team. This is to keep direct watch on result, comparison for betterment and best practices, cultivating the effectiveness of processes, calibrating and reducing the variations and setting the process as required.Introducing certain programs involves acquiring the requisition of resources: a necessity for developing the process, training documentation, process testing, and immolation with (and/or conversion from) difficult processes.

MARKETING STRATEGY IN DETERGENT INDUSTRY

Marketing strategy is a method of focusing an organization’s energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm’s marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company’s revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company’s overarching mission statement.

Marketing strategyis a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. The benefits of a planned marketing strategy are numerous. Business owners often rely solely on their intuition to make business decisions. While this informal knowledge is important in the decision making process, it may not provide you with all the facts you need to achieve marketing results. A marketing strategy will help you in defining business goals and develop activities to achieve them

The marketing concept of building an organization around the profitable satisfaction of customer needs has helped firms to achieve success in high-growth, moderately competitive markets. However, to be successful in markets in which economic growth has leveled and in which there exist many competitors who follow the marketing concept, a well-developed marketing strategy is required. Such a strategy considers a portfolio of products and takes into account the anticipated moves of competitors in the market.

The Marketing Mix In Detergent Sector

 The marketing mix is the means used by the marketer to satisfy customers.

Product Strategy

New product development & brand development

This Detergent powder is pure tangible goods. People use laundry detergent very carefully, to clean their expensive clothes. Usually people used normal detergent to wash the expensive and soft fabricated clothes. To some people, cleaning and bleaching power are most important; to others fabric softening matters most and some people use shampoo to wash their sensitive clothes. Thus, there are groups-or segments.

Product quality perceptions represent consumer judgment about the superiority of a product, which the user-based approaches think is essential in describing quality (Forker et al., 1996). Bundles of attributes together represent a certain level of quality, which therefore provide utility to the customer (Snoj et al., 2004). The benefits are measured through a perceived level of quality (level of working superiority), a bundle of attributes in comparison with the consumer’s expectations. Schiffman and Kanuk (2004) stated consumers often judge the quality of a product on the basis of a variety of informational cues that they associate with the product. They also stated that the cues can either be intrinsic or extrinsic. Intrinsic cues are related to the physical characteristics of the product itself, like size, colour, flavour, aroma etc. The extrinsic cues on the other hand are related to elements that are put together with the actual product like packaging, pricing, advertising etc. The perceived quality of products and services is central to the theory that strong brands add value to consumers’ purchase evaluations (Low and Lamb, 2000). Product quality perceptions represent consumer judgment about the superiority of a product, which the user-based approaches think is essential in describing quality (Forker et al., 1996). Bundles of attributes together represent a certain level of quality, which therefore provide utility to the customer (Snoj et al., 2004). The benefits are measured through a perceived level of quality (level of working superiority), a bundle of attributes in comparison with the consumer’s expectations. Schiffman and Kanuk (2004) stated consumers often judge the quality of a product on the basis of a variety of informational cues that they associate with the product. They also stated that the cues can either be intrinsic or extrinsic. Intrinsic cues are related to the physical characteristics of the product itself, like size, colour, flavour, aroma etc. The extrinsic cues on the other hand are related to elements that are put together with the actual product like packaging, pricing, advertising etc. The perceived quality of products and services is central to the theory that strong brands add value to consumers’ purchase evaluations (Low and Lamb, 2000)

Pricing Strategy

According to Schiffman and Kanuk (2004) price perception is about how customers see a product’s price, as high, low or fair. They also stated that perception of price unfairness affect consumers’ perceptions of value and ultimately their willingness to buy a product. According to Moore et al. (2003) years of research concerned with price show both positive and negative perceptions serve as marketplace cues. Several studies have also portrayed the role of price perceptions as an attribute to success (Jiang and Rosenbloom, 2004). When the price perceptions are high this is a sign of positive quality, prestige and status (Moore et al., 2003). The concept of reference price is related to price perceptions. Schiffman and Kanuk (2004) stated that reference price is the price the consumers use as a basis for comparison in judging another price. It is through reference price that the price perception of a brand of product is formed. When the consumer plans to buy a product, he or she will judge prices comparatively with the reference prices in order to determine whether the price is acceptable or not (Alvarez and Casielles, 2004). They also stated that, a result of consumers’ comparison between the prices and the reference price, potential losses and gains emerge. The consumer perceives again when the reference price is higher than the observed price. If the observed price is higher than the reference price, the consumer experiences a loss.

Detergent companies should be very careful in determining their prices and price policies. Because mistakes in pricing cause customers’ shift toward the rivals offering likewise services.

Promotion strategy

Promotion is more than just advertising. It includes almost all form of communication that a company has with its customers. Indeed, it includes communication with stakeholders, suppliers, intermediaries and the general public. The range of parties that a company promotes to is known as the target group.

One of the most important element of marketing mix of services is promotion which is consist of personal selling, advertising, public relations, and selling promotional tools.

Promotions as we know are a very important component of marketing promotion. Consumer promotion (e.g. coupons, samples, contests, sweepstakes, and price packs) is a part of sales promotion that is targeted towards the final buyers of consumer products (Kotler and Armstrong, 2002). There can be various types of consumer sales promotion some are incentive based while others are communicative in nature (Kotler et al., 1999; Tellis, 1998). The incentive based promotions can be price – oriented promotion or non price-oriented promotion. According to Britannica (article 21279) advertising presents a reason to buy a product but consumer promotion offers a short-term incentive to purchase. Consumer promotions often attract brand switchers (those who are not loyal to a specific brand) who are looking primarily for low price and good value. Thus, especially in markets where products are highly similar, consumer promotions can cause a short-term increase in sales. Abraham and Lodish (1987) stated that many consumer goods categories sold 90% of their volume on special deals which is a result of consumer promotion. Consumer promotion is thought to be a tool that helps manufacturers and retailers to achieve their objectives of generating sales (Alvarez and Casielles, 2004). They also stated that the influence of sales promotions on the consumer will also depend on the consumer’s characteristics

Advertising media and channels that Detergent Industries prefer are newspaper, magazine, radio, direct posting, outdoor ads, billboard and TV commercials In the selection of media, target market should be determined and the media that reach this target easily and cheaply must be preferred.

Placement strategy

Place is the term used in the marketing mix to mean distribution. Distribution involves all the activities necessary in getting a product to a customer. Distribution can be looked from two perspectives: channels of distribution and physical distribution. Channel of distribution refer to the organizations involved (distributors, wholesalers, retailer, agents). Physical distribution refers to the physical transportation, handling and storage of products necessary to make products available to customers.

Produce >Distributor / agent > customer

Distribution system of Detergent companies should be well structured to reach the product to very remote area and one can find detergent powder any part of this country. So, improved distribution system should be introduced for Detergent.

 PROJECT PART

QUESTIONNAIRE AND ANALYSIS

Question No-1: Who are the users of detergent powder ?

Objective Of the question: To find out the demographic profile of detergent powder users.

Gender Identification1:

The objective of this section is to identify the gender distribution of the user of Detergent powder according to self washing

                Table-02: Gender distribution of detergent powder users

                   Source: Primary Data

Finding: From the survey it is found that out of 40 respondents 75% male and 25% female. So,It  can be said that majority of respondents are female.

Gender Identification2:

The objective of this section is to identify the gender distribution of the user of Detergent powder based on decision taking for purchasing detergent

  Table-03: Gender distribution of detergent powder users based on decision taking

                   Source: Primary Data

Finding: From the survey it is found that out of 40 respondents 75% male and 25% female. It is can be said that majority of respondents are female.

Income Level:

In this section income level of respondents is analyzed.

         Table-04: Income distributions of detergent powder users

        Source: Primary Data

Finding: From the survey it is found that out of 214 respondents 2.50% are in 15000-25000 income level, 100% are in 25000-35000 income level, 22.50% are in 35000-45000 income level, 27.50% are in 45000-55000 income level, and 37.50% are in above 55000 income level. We found that respondents whose income level above 55000 use detergent powder more.

Question-02: What will be the bases for using preferred brand detergent powder?

Objective of the Question: To find out Reasons for choosing preferred Brand in case of, product features, price etc.

Table-05: Factors of choosing preferred brand detergent.

                    Source: Primary Data

Finding: Here I have tried to show the reasons for choosing preferred brand.From above figure it is found that out of 214 respondents, 32% respondents have chosen their preferred brand because of product facilities, 22% have chosen because of brand image, 18% respondents have chosen because of lower charges, 10% have chosen because of available ATM booth, 10% respondents have chosen their preferred Brand because of Easy process, and 8% have chosen Brands because of other reasons. It is clear that the majority of respondents have chosen their preferred Brands for attractive product facilities.

Question-03: What are the numbers of present detergent users among different brands?

Objective of the question: To find out the percentage of detergent users among different brands.

      Table-06: Overall Detergent powder holders of Different brands among Respondents

                        Source: Primary Data

Finding: From this graph, it is found that out of 214 respondents, 55% have detergent powder of DBBL, 15% have Detergent powder of Standard Chartered Brand Ltd, 15% have detergent powder of Brac Brand Ltd, 12% have Detergent powder of Dhaka Brand Ltd, and 3% have detergent powder of UCBL. It is clear that the majority respondents are using Detergent powder of DBBL.

Question-04: Which brand detergent is better based on availability in the stores?

Objective of this question: To find out which brand detergent companies has the planned distribution channel

                Table-07: Bases on availability which brand detergent is the best

                    Source: Primary Data

Finding: In this figure, I have shown the responses of the respondents about the availability of ATM Booth for Detergent powder. From the survey, it is found that out of 214 users, 70% respondents said that DBBL has highest ATM Booth, 10% respondents believe that Standard Chartered Brand has highest ATM Booth, 10% respondents believe that Brac Brand provides highest ATM Booth for Detergent powder, 7% believe that Dhaka Brand has highest ATM Booth, and 3% respondent believe that UCBL Brand has highest ATM Booth, and 3% respondent It is found that DBBL has the highest ATM booth.

Question No-05: What are the factors that influence at the time of purchasing new detergent?

Objective of the Question: The question is designed to find out what are the factors influences when customers go for purchasing detergent.

Table-08: Influencing factor of choosing new brand detergent

                    Source: Primary Data

Question-06: Based on Promotional Activities which brand detergent is best to the Respondents?

Objective of this Question: To find out the promotional activities regarding detergent powder of different brands.

                Table-09: Promotional activities of different detergent brand

                   Source: Primary Data

Question-07: Which media is effective for promotional activities?

Objective of this question: To find out there are different type’s media such as radio, television, billboard newspaper etc, but what media is more effective to customer.

         Table-10: Media pattern for promotional actives

                      Source: Primary Data

Finding: From this figure it is shown that 55% respondents like newspaper for advertising, 25% for television,15% for billboard, 3% for radio and 2% for others media.

TEST OF STATISTICAL SIGNIFICANCE

Test No: 01

Step 1: Formulation of Hypothesis

Null Hypothesis H_o: More than 45% people would not like to use detergent powder.

Alternative Hypothesis H₁: More than 45% people would like to use detergent powder.

Step 2: Selection of an Appropriate Test

In the case I have selected z-statistic. This statistic is computed as follows:

Where,

Step 3: Choose the Level of significance

Here, I have considered the level of significance is 5%. Thus, the confidence level is 95%.

Step 4: Collection of data and Calculation of Test Statistic

 My sample size is 67. In this case 67 consumers were surveyed and more than 56 said that they are using detergent powder for washing purpose.Thus, the value of the sample proportion is

p = 56/67 = 0.84

The value of   can be determined as follows

 = √ (0.45) (0.55)/214

 = 0.067

The test statistic z can be calculated as follows:

    = (0.84-0.45)/0.067

    = 5.82

Step 5: Determination of Probability (Critical value)

Our calculated value of Z is equal to 5.82. Now we get the Z value for 95% confidence level from the standard normal distribution table is 1.64.

 Step 6 & 7: Comparison of Probability (Critical value) and Decision making

Hence, the calculated value of Z =5.82 is greater than the tabulated value of Z = 1.46, so we do not  accept  the  Null Hypothesis (H₀).

 Step 8: Marketing Research Conclusion

As Alternative Hypothesis (H₁) is accepted, so it can be said that more than 45% people would like to use detergent powder.

 Test No:02

Step 1: Formulation of Hypothesis

Null Hypothesis (H_o): Less than or equal to 50% consumers look for quality  while Purchasing detergent powder

Alternative Hypothesis H₁:   More than 50% of consumers look for quality while purchasing detergent powder

Step 2: Selection of an Appropriate Test

Step 3: Choose the Level of significance

Here, I have considered the level of significance is 5%. Thus, the confidence level is 95%.

Step 4: Collection of data and Calculation of Test Statistic

 My sample size is 67. In this case 67 customers were surveyed and more than 52 consumers look for quality (Cleaning ability). Thus, the value of the sample proportion is

p = 52/67 = 0.776

The value of   can be determined as follows

 = √ (0.50) (0.50)/67

 = 0.061

The test statistic z can be calculated as follows:

=4.52

Step 5: Determination of Probability (Critical value)

Our calculated value of Z is equal to 4.52. Now we get the Z value for 95% confidence level from the standard normal distribution table is 1.64.

 Step 6 & 7: Comparison of Probability (Critical value) and Decision making

Hence, the calculated value of Z =4.52 is greater than the tabulated value of Z = 1.64, so we do not accept the Null Hypothesis (H₀).

Step 8: Marketing Research Conclusion

As Alternative Hypothesis (H₁) is accepted, so it can be said that more than 50% people thinks that if the detergent companies ensure quality then customers will be motivated to use detergent powder.

Test No: 03

Step 1: Formulation of Hypothesis

Null Hypothesis (H_o): H_o ≤ 0.60 Retailers think that Promotional activities will not increase detergent powder users.

Alternative Hypothesis (H₁): H₁> 0.60 Retailers think that Promotional activities will increase detergent powder users.

Step 2: Selection of an Appropriate Test

Step 3: Choose the Level of significance

Here, I have considered the level of significance is 5%. Thus, the confidence level is 95%.

Step 4: Collection of data and Calculation of Test Statistic

 My sample size is 67. In this case 67 Retailers were surveyed and more than 53 said that promotional activities influenced consumers to use detergent powder. Thus, the value of the sample proportion is

p = 53/67 = 0.791

The value of   can be determined as follows

 = √ (0.60) (0.40)/67

 = 0.060

The test statistic z can be calculated as follows:

=3.18

Step 5: Determination of Probability (Critical value)

Our calculated value of Z is equal to 3.18. Now we get the Z value for 95% confidence level from the standard normal distribution table is 1.64

 Step 6 & 7: Comparison of Probability (Critical value) and Decision making

Hence, the calculated value of Z =3.18 is greater than the tabulated value of Z = 1.64, so we do not accept the Null Hypothesis (H₀).

Step 8: Marketing Research Conclusion

As Alternative Hypothesis (H₁) is accepted, so it can be said that more than 60% Retailers thinks that thinks that if the promotional activities with creativity increased then customers will be motivated to use detergent powder.

Test-04:

Step 1: Formulation of Hypothesis

Null Hypothesis (H_o): H_o: ≤ 0.75 Low price will not increase customer satisfaction.

Alternative Hypothesis H₁: H_o: > 0.75 Low price will increase customer satisfaction.

Step 2: Selection of an Appropriate Test

In the case I have selected z-statistic. This statistic is computed as follows:

Where,

Step 3: Choose the Level of significance

Here, I have considered the level of significance is 5%. Thus, the confidence level is 95%.

 Step 4: Collection of data and Calculation of Test Statistic

 My sample size is 67. In this case 67consumers were surveyed and more than51 said that the low price will increase their satisfaction for using detergent powder. Thus, the value of the sample proportion is

p = 51/67 = 0.761

The value of   can be determined as follows

 = √ (0.75) (0.25)/67

 = 0.053

The test statistic z can be calculated as follows:

    = (0.761-0.75)/0.053

    = 0.21

Step 5: Determination of Probability (Critical value)

Our calculated value of Z is equal to 0.21. Now we get the Z value for 95% confidence level from the standard normal distribution table is 1.64.

 Step 6 & 7: Comparison of Probability (Critical value) and Decision making

Hence, the calculated value of Z =0.21 is lower than the tabulated value of Z = 1.1.64, so we accept the Null Hypothesis (H₀).

 Step 8: Marketing Research Conclusion

As Null Hypothesis (H₀) is accepted, so it can be said that more than 75% respondents think that not only low price will increase customer satisfaction. There are other factors (quality, size, packaging, brand image etc)) which increase customer satisfaction.

Test-05

Step 1: Formulation of Hypothesis

Null Hypothesis (H_o): H_o ≤ 0.50 Packaging (material, attractiveness, size etc) will not increase detergent powder users.

Alternative Hypothesis (H₁): H₁>0.50 Packaging (material, attractiveness, size etc) will increase customers.

Step 2: Selection of an Appropriate Test

In the case I have selected z-statistic. This statistic is computed as follows:

Where,

Step 3: Choose the Level of significance

Here, I have considered the level of significance is 5%. Thus, the confidence level is 95%.

Step 4: Collection of data and Calculation of Test Statistic

 My sample size is 67. In this case 67 consumers were surveyed and 50 said that packaging (material, attractiveness, size) will motivate to increase for using detergent powder. Thus, the value of the sample proportion is

p = 50/67 = 0.75

The value of   can be determined as follows

 = √ (0.5) (0.5/67

 = 0.061

The test statistic z can be calculated as follows:

    = (0.75-0.50)/0.061

    = 4.10

Step 5: Determination of Probability (Critical value)

Our calculated value of Z is equal to 4.10. Now we get the Z value for 95% confidence level from the standard normal distribution table is 1.64.

 Step 6 & 7: Comparison of Probability (Critical value) and Decision making

Hence, the calculated value of Z =4.10 is greater than the tabulated value of Z = 1.64, so we do not accept the Null Hypothesis (H₀).

Step 8: Marketing Research Conclusion

 As Alternative Hypothesis (H₁) is accepted, so it can be said that more than 50% respondents want desired packaging for detergent powder. If KCCL launch desired packaged detergent powder for consumers then it will increase detergent powder users.

Test No: 06

Step 1: Formulation of Hypothesis

Null Hypothesis (Ho): Ho≤0.80 customer’s income less than 5,000 tk does not use detergent powder.

Alternative Hypothesis (H₁): H1>0.80 customer’s income more than 5,000 tk uses detergent powder.

Step 2: Selection of an Appropriate Test

In the case I have selected z-statistic. This statistic is computed as follows:

Where,

Step 3: Choose the Level of significance

Here, I have considered the level of significance is 5%. Thus, the confidence level is 95%.

Step 4: Collection of data and Calculation of Test Statistic

 My sample size is 67. In this case 67 customers were surveyed and 60 said that if the reduced charges will increase their satisfaction for using detergent powder. Thus, the value of the sample proportion is

p = 60/67 = 0.90

The value of   can be determined as follows

 = √ (0.8) (0.2)/67

 = 0.049

The test statistic z can be calculated as follows:

    = (0.90-0.80)/0.049

    = 2.04

Step 5: Determination of Probability (Critical value)

Our calculated value of Z is equal to 2.04. Now we get the Z value for 95% confidence level from the standard normal distribution table is 1.64.

 Step 6 & 7: Comparison of Probability (Critical value) and Decision making

Hence, the calculated value of Z =2.04 is greater than the tabulated value of Z = 1.64, so we do not accept the Null Hypothesis (H_o).

 Step 8: Marketing Research Conclusion

As Alternative Hypothesis (H₁) is accepted, so it can be said that more than 80% respondents whose monthly income 5000 tk are using detergent powder. So, KCCL should target such types of customers.

MARKETING STRATEGY FOR “WHITE DETERGENT POWDER”

PRODUCT STRATEGY

KCCL should go immediately for launching the new white detergent powder, because there is a huge opportunity for white detergent powder in the market. In detergent market  the main competitor is Unilever.

By introducing new and innovative variety of white detergent powder to the market place KCCL may generate customer loyalty and can increase its market share as the market grows.

Branding is a major issue in overall product strategy. Branding is used to give products unique identities and helps the marketer to differentiate their product from competitors. The brand should be established in such a way so that the consumers are loved to buy this product.sss

PRICE STRATEGY

 Price of white detergent powder should be competitive. If possible then KCCL may go for price cut. Present policy is to give 1 packet mini Tibet detergent powder with each soap cake. But if company changes their strategy and offer Tk. 2 cash when consumer purchases white detergent powder then it would be treated as a fantastic offer and sells may jump positively.

 PROMOTION STRATEGY

Promotion is more than just advertising. It includes almost all form of communication that a company has with its customers. Indeed, it includes communication with stakeholders, suppliers, intermediaries and the general public. The range of parties that a company promotes to is known as the target group.

KCCL can adopt push and pull strategies to promote white detergent in the market.

 Advertising platforms

  Television

  Radio

  Billboards

  Newspaper etc.

Most of the respondents said that Television is more effective for advertising because they can know psychologically attack people. So, KCCL must follow Television for advertising with creative and innovative thing.

 PLACEMENT STRATEGY   

 Place policies

Place is the term used in the marketing mix to mean distribution. Distribution involves all the activities necessary in getting a product to a customer. Distribution can be looked from two perspectives: channels of distribution and physical distribution. Channel of distribution refer to the organizations involved (distributors, wholesalers, retailer, agents). Physical distribution refers to the physical transportation, handling and storage of products necessary to make products available to customers.

Produce >Distributor / agent > customer

Distribution system of white detergent powder should have well without this the product would not reach to very remote area but distribution system of Unilever is excellent and one can find wheel any part of this country. So, improved distribution system should be introduced for white detergent powder.

 PROBLEM AND SOLUTION CONCERNING DETERGENT POWDER

 PROBLEMS

Problem-01: There is not available various packaged sized detergent powder.

Justification: In my survey the sample size 67. Out of 67, 75% i.e.50 respondents said that there is not various packaged sized detergent powder with different price .So most of the detergent consumers desire various packaged size detergent powder

 Problem-02: There is less variety of fragrance in detergent powder.

Justification: Out of 67 respondents, 70% i.e. 46 respondents said that there is less fragrance variety in detergent powder

Problem-03: Colored detergents seems to be not gentle for white clothes

Justification: Out of 67 respondents, 60% i.e. 40 respondents said that colored detergents is only for washing colored clothes not gentle for white clothes

Problem-04: Packaging material is poor and not so attractive

Justification: Out of 67 respondents, 80% i.e. 53 respondents said that some detergent brands packaging is poor and not perfect for storage

 Problem-05: some detergent makes their clothes fade and discolor

Justification: Out of 67 respondents, 40% i.e. 27 respondents said that in some detergents makes their clothes fade and discolor due to poor ingredients

Problem-06: Some detergents not gentle for their skin after washing

Justification: Out of 67 respondents, 50% i.e. 34 respondents said that some detergents brands have not gentle for their skin after washing.

Problem-07: They confused with white and other colored detergent powder as for white and other colored clothes

Justification: Out of 67 respondents 60% i.e 41 respondents said that they are confused that white and other colored detergent powder as for white and other colored clothes. This problem is especially for new users.

Problem-08: Problems with storing

Justification: Out of 67 respondents, 80% i.e. 53 respondents said that some detergent is not suitable for storage in wet places

 Problem-09: Most of Retailers said that they don’t get any trsde offer(credit facilities)

Justification: Out of 67 respondents, 75% i.e. 50 respondents said that detergent companies give them trade offer facilities of detergent companies inspire them .

PROBABLE SOLUTION

  Detergent powder should have various packaged size with different price, so that every income people and every size consumer (Single, small family, large family) can purchase their desired sized & packed detergent powder.

  Variety fragrance detergent powder should have to come out , so that consumers can purchase their own choice fragrance detergent powder

  When advertising ,it should have to be cleared to the customer about colored detergent for which colored cloth washing

   Packaging material should be well and attractive so that consumers are influenced to buy new detergent

  Detergent ingredients should have perfect that meet the customers expectation i.e, cleaning ability, gentle on skin, gentle on clothes etc.

  It should have to be clear to the consumers how much detergent for howmany clothes

SUMMARY OF THE FINDINGS

• From the survey it is found that out of 67 respondents 75% are female according to wash with own and out of 67 respondents 78% respondents are female according to taking decision about which brand of detergent should be buy for washing. The majority respondents are female. But bachelors use detergent powder by self washing
• The majority of respondents are female. So the advertisement of detergent powder should take such a way that it attracts female persons

• The income level of the majority respondents is above 10000. And it can be easily said that all income group from lower middle to upper class used detergent powder

• The majority respondents are using detergent powder of Unilever (Wheel.Surf Excel) Limited. Unilever is the  is the market leader of detergent powder industries in Bangladesh

It is found that out of 67 users, 35% respondents choose detergent powder for product features(cleaning ability,packaging etc.),22% choose for brand image,15% choose for price,13%choose for recommendations ,10% choose for availability and 5% choose for other reasons

• The majority respondents think that Unilever (Surf Excel, Wheel) Ltd provides best product features to the detergent powder holders. That’s why the customers are fully satisfied for the product features on detergent powder of Unilever(Surf Excel, Wheel) Bangladesh Ltd.
• The majority of respondents have chosen detergent powder for attractive product featuras,brand image and packaging
• Based on Promotional activities Wheel power white brand is the best.
• The majority respondents think that Wheel Power is the best for detergent powder based on cash availability in the stores
• The majority respondents think that Surf Excel Detergent Brand is the best for based on price and packaging size of detergent powder
• UCBL provides better customer services.
• The majority respondents prefer Television for the advertising of detergent powder because add to television influenced more to female consumers

CONCLUSION:

Through analysis the data it is clear that the market share of Tibet is not good. As the growth rate of Detergent in Bangladesh is increasing nowadays. To increase the market share and to become the market leader the company will have to develop its marketing strategy. Because marketing is such an instrument which can easily influence people to purchase company’s products. If the company capable to make a good idea into the heart of customer then it can easily capture the market and increase its market share.

The quality of the product has to be ensured for the customers because to become a market leader the company has to overcome Unilever. To beat the Unilever there is no alternative way other than to increase its quality. The company has to offer different type’s benefits which will influence the customers to purchase Detergent. The result of the study demonstrates that there is a lot of space for KCCL to improve their marketing strategy and its business for Detergent. If the company can develop its marketing strategy then it can easily expand its market and its market share.

RECOMMENDATIONS

Marketing Mix Strategy

The marketing mix is the means used by the marketer to satisfy customers.

Product policies– new product development & brand development

• New Product Development – If KCCLwishes to survive long term in the market, must invest in new product development. Always, all products eventually reach the decline stage. Without new variety of white detergent, sales will eventually become non-existent and customers will seek competitors’ products. Additionally, by introducing new and innovative variety of detergent to the market place first, KCCL may generate customer loyalty and maintain its market share as the market grows. Innovative shape & design packaged white detergent of  should be launched compared to other brands. It should be curved & easily hand able. KCCL should have ability to tailor white detergent according to market and anticipate customer demands. Always should not follow and copy the competitors’ strategy rather try to create something new.

• Branding- Branding is a major issue in overall product strategy. Branding is used to give products unique identities and helps the marketer to differentiate their product from competitors. The brand white detergent should be established in such a way so that consumers are loved to buy this product.

Promotion policies

Promotion is more than just advertising. It includes almost all form of communication that a company has with its customers. Indeed, it includes communication with stakeholders, suppliers, intermediaries and the general public. The range of parties that a company promotes to is known as the target group. KCCL can adopt push and pull strategies to promote white detergent in the market.

Push and pull strategies

Push Strategy

When a company is pursuing a push strategy, it promotes to channel intermediaries to encourage them to stock the products. This means that when customers want to buy the product, it is readily available. Push strategies normally involve the use of sales promotion and personal selling. It can be used for white detergent.

Pull Strategy

When a company is pursuing a pull strategy, it promotes its products to the final customers to encourage them to buy. They are encouraged to demand the product from intermediaries. Pull strategies normally involve the use of advertising; direct marketing activities and consumer sales promotions. Pull strategy of white detergent should be well planned.

• Producing different fragrance variety of white detergent to match the diversity of its consumers.
• Should increase billboard in the crowded places where most of the people can easily watch, shop sign and different promotional activities on print and electronic media to make sure the brand knowledge of white detergent. But should not go for wall paint because when researcher went to field for survey then he found people have negative attitude toward wall paint. People think company which give ad on wall, may not quality one.
• KCCL has to arrange different types of programs to increase brand value.
• Participating in different types of social & cultural activities so that the company can easily attract the attention of the local & international customers and can easily promote its brand position.
• In TV & Radio channel creative and innovative add should have to be given, various celebrity and brand ambassador for add etc.

 Place policies

Place is the term used in the marketing mix to mean distribution. Distribution involves all the activities necessary in getting a product to a customer. Distribution can be looked from two perspectives: channels of distribution and physical distribution. Channel of distribution refer to the organizations involved (distributors, wholesalers, retailer, agents). Physical distribution refers to the physical transportation, handling and storage of products necessary to make products available to customers.

Produce >Distributor / agent > customer

Distribution system of white detergent should have well-planned to reach the product to very remote area but distribution system of wheel power, surf excel is excellent and one can find wheel power, surf excel any part of this country. So, improved distribution system should be introduced for white detergent powder.

 Price Policies – Price of white detergent should be competitive. If possible then KCCL may go for price cut. Present policy is to give 1 packet mini Tibet detergent powder with each soap cake. But if company changes their strategy and offer Tk. 2 cash when consumer purchases white detergent then it would be treated as a fantastic offer and sells may jump positively.

Growth Vector Strategy

 The most suitable strategies of meeting the marketing objectives stated above are:

Product Line Extension

Through a product line extension strategy a company might create an augmented product in order to stimulate the current markets and create new ones.

KCCL must quickly start pursuing this strategy as Tibet detergent is falling out of favor with the consumer and should pursue this further.

Market Development

By employing a market development strategy, a company might identify new markets for its product by determining potential user groups for its current products, offering its product for sale in new geographic locations, either domestic or international.  Another alternative is to develop new products for an existing target market.

 KCCL has the opportunity to develop a very profitable market in rural area and urban industrial area where targeted consumers are located.

New Product Development

Entirely new Bactrol can be developed by taking into consideration customer tastes and preferences. This will enhance competitive advantage and keep competition.

KCCL must use a combination of these strategies to achieve best result in market growth and be able to compete effectively in the health soap industry.

 Threats and Solutions

Competition

Adopt competitive strategies such as:

Cost Leadership– Produce white detergent at low costs through economies of scale and compete favorable on low price. Huge capital investment can be made which competitors cannot easily copy.

Differentiation– White detergent designed by unique features, adding value by high quality and can only be achieved by research and development by product development.

Focus – This is a combination of the cost leadership and differentiation.

Product Development

Developing and launching new white detergent to meet emerging customer needs. The company should invest accordingly in Research and development activities so as to come up with new variety that are in line with the changing customer needs.

• Selecting and promoting effective products mix to service target markets.
• Creating brands that will help to promote white detergent in Market.

• Aggressive Marketing should be taken for white detergent.

 Retailers problem solution

Offer attractive trade offer to distributors, wholesalers, retailer and agents of white detergent. By doing this they should forced to stock and sell white detergent.