Indian Premium Soap Market

Soap Market :

The Indian Soap market consists of retail sales of bath and shower products. The Indian soap and hygiene market has experienced strong double digit growth in recent years(13.4% in 2013 to a value of $ 23.16 Billion Dollars). This is predicted to continue through the forecast period, but at a decelerated rate (Market Line Industry profile : Personal Hygiene in India, August 2014). Unilever is the biggest player in the Indian Soap Market, generating 44.7 % share of the market value.

Additionally, Market consumption volume increased with a CAGR of 7.3% between 2009 and 2013, to reach a total of 6,800.6 million units in 2013. The market's volume is expected to rise to 8,859.9 million units by the end of 2018, representing a CAGR of 5.4% for the 2013-2018 period.

Market Share Unilever is the leading player in the Indian soap Market with multiple products across the price points . It has 44.7% share of the market value . Godrej is the second in the list with 12.2 % of the market.

Indian Soap Market 2009-2013 – Market Value

The market has several, leading national and global brands and a large number of small brands.

The popular and premium brands include Lux, Cinthol, Liril, Rexona, and Dove.

As the market is constituted now, it can be divided into four price segments: premium, popular,

discount and economy soaps. Premium soaps are estimated to have a market volume of about 14 to

15% of the market size.

Market Distribution :

Independent retailers form the leading distribution channel in the personal hygiene market , 68.2 %

of the market share . The table below from Marketline gives a better picture of the distribution

channel:

Project Scope :

The scope of the project is to study the premium Indian soap market marketing mix. Though we have

analyzed the marketing mix of the premium Indian soap market, we have taken specific example of Dove

soap of Unilever brand to justify our analysis.

CUSTOMER DECISION MAKING PROCESSThe customer decision making process for soap encompasses the following methodology, going through five stages which are as follows:

Initial problem awareness and need recognition are often triggered by a feeling or desire to fulfill a need. Individuals, who purchase premium soap, do so for personal reasons, but one of the main reasons is for skin nourishment. Therefore, consumers purchase it to fulfill both the basic and the augmented needs. Family and advertisements are often the first stimuli which trigger need recognition and problem awareness Need recognition and problem awareness could arise from perceived quality differences or be triggered by a desire for higher quality product.Information search is where individuals will obtain information. This could begin with members of his/her peer group including friends, family regarding their own perceptions and knowledge These individuals may also utilize other sources such as Marketing mix touch points to further his or her knowledge about the product. The evaluation of alternatives will be different for each individual, but would often include assessments of the product itself for features such as skin care, hygiene, and fragrance etc. It would also include brand perception of the product and its parent company. In the context of purchasing a soap, consumers feel it to be a low involvement but a habitual purchase. The woman of the house is normally considered as the ultimate decision-maker in terms of this kind of purchase.

After the final purchasing decision, the last stage includes the post-purchase evaluation, whereby the individual would examine the purchase. Often, cognitive dissonance arises when the individuals’ expectations are not met. Therefore, companies spend a lot of money on quality control and R/D so that the consumers get a consistent and a good experience of using the product.             

About 75% of soap can be bought through these different types of outlets:

Kirana Store: This is the most common source for buying soap, which usually forms a part of the month’s grocery list (which is purchased from these Kirana Stores). Consumers exhibit loyalty to these stores, which is largely dependent on proximity to consumers’ homes. Here consumers buy across the counter and do not have an option of browsing through display shelves.

Pan-Beedi Shops: These are really small shops, almost like handcarts, and they are primarily set up to dispense cigarettes and chewing tobacco. However, one would find such a shop at every corner and they are the main sources of soap purchase for the lower socio-economic classes. These kinds of shops exist by the dozen in rural areas.

Department Store: In India, there are very few department stores and the “Indianised” version of department stores are called “Sahakari Bhandars.” It is still a fairly new concept. However, department stores have good display counters and this is the only place where consumers get a first hand experience of shopping and choosing from available options. Here soap prices are also discounted below the retail prices.