To provide maximum satisfaction to our consumers and customers with high standard of products and services
In concurrence with Kallol Group’s objective of launching a premium quality liquid detergent, Jet Liquid, in the Bangladesh market, an in-depth market research was undertaken between April 20 and June 4, 2010. In parallel with the company’s decision, the target respondents for the research were set to be upper middle income and high income households residing in urban and semi-urban areas with a MHI of BDT 25,000 and above.
The research was conducted in 3 phases within this period starting with depth interviews with 10 respondents after a period of 1 week of trial usage with Jet Liquid. The interviews aided in forming the framework for developing a full-fledged category survey. The findings suggested that customers consider cleaning ability, ability to remove tough stains, preservation of fabric and color, and easy of washing and price to be important when deciding on their brand of detergent. Most respondents also employed separate detergents for house clothes and formals. In addition, the data indicated that respondents often relied on visual cues such as the amount of foaming, as an indicator of the cleaning ability of the detergent. The research also indicated that customers liked Jet liquid for its ease of preparation, ease of use, ease of storage and packaging, while being somewhat apathetic towards the large quantity of liquid that was required for washing their clothes.
The second phase, the Category surveys were conducted among 85 respondents using quota sampling with the objective of developing an insight into the detergent category in context of the target market. The research identified that most of the respondents did not wash clothes themselves, rather relied on their domestic or washing machines. The target market puts a lot of emphasis on their appearance, and tries to preserve their clothes. The research identified that cleaning ability, preservation of fabric and color, cost of the detergent and smell are the most critical factors to consumers with respect to their purchase decisions. In addition, the data also indicated that the determining factor in most cases is cleaning ability and price of the detergent respectively. The responses also pointed to the main reason for respondents to switch brands were either due to cleaning ability, or availability of the product. Consumers considered Surf Excel to be the best in terms of cleaning ability, but pricy. In contrast, Jet detergent has been considered mild by many respondents, though it is perceived to be gentle on the fabric and the color of the clothes.
The Trial User survey highlighted the actual experience of 80 trial users after 2 weeks of washing clothes with Jet Liquid. While majority of the consumers considered their overall experience to be very good, a number of issues did surface at this stage. Jet liquid, while adept at cleaning clothes, was found wanting by respondents, when trying to remove tough stains. In addition, the data suggested that the respondents had to use large amounts of the liquid to clean their clothes properly, which raised questions regarding the products cost effectiveness. However, the product scored higher than its key competitors with respect to preservation of fabric and color, smell and ease of use and storage. Consumers perceived Jet Liquid to be innovative and creative, while they considered the Brand JET to be traditional and classic, concurrently creating a potential hurdle for the company to position the liquid detergent under the Jet Umbrella. Finally, the research indicated that most consumers expected the product to be priced at around BDT 125 – 150, and were willing to buy the product again based on their positive experience with the brand.
Orientation to the Report
In accordance with the partial requirement of the BBA program, each BBA student is required to complete an internship period lasting 10 weeks within an organization, applying the knowledge and skills acquired during their BBA course, and illustrate sound judgment within a professional environment.
In lieu of this requirement, Mr. Shahed Ibne Mahbub has served in Kallol Group of Companies (KGC) in the capacity of Management Trainee (MT) from 1st March 2010 to May 31st 2010. KGC had its roots in distribution, being incepted in 1972, with a handful of local FMCG brands. By 2010, the company had diversified significantly, foraying into both consumer durables such as watches as well as acquiring the manufacturing and distribution rights for Jet and Kohinoor brand of detergents.
During his tenure in the organization, Mr. Mahbub was engaged in the Marketing department in charge of new business development. The position entailed identifying potential opportunities for diversification, conducting feasibility studies within these categories and markets, and developing strategies to strengthen KGC’s existing product portfolio through market penetration and market development.
In addition, Mr. Mahbub was also tasked with working alongside other marketing executives to devise and conduct an in-depth market research in the Detergent category within Bangladesh. Subsequently the findings of the research will be applied in devising appropriate marketing strategies for launching a new liquid detergent in the Bangladesh market, while identifying potential steps that can be taken to strengthen the competitive position of KGC’s existing detergent offerings.
The market research was conducted in three phases. The first stage of the research involved conducting depth interviews with respondents from the target segments to identify the key issues involved in detergent purchase as well as gauging their perceptions and expectations from the category. The depth interviews were conducted at the respondents own home between April 20th and May 1st. The second phase, namely, the questionnaire phase, sought to identify the current usage, application, attitudes and behaviors of detergent users was conducted between May 14th and May 24th 2010. The final phase of the research, titled, The Trial User Surveys, entailed providing actual samples of the liquid detergents to the respondents, and conducting an in-depth survey to gauge their response to the product. The aim of the final stage of the research was to identify the extent to which Jet liquid was able to satisfy the specific needs and expectations of the consumers.
In addition field visits, observational research and interviews with KGC’s channel partners, sales representatives (SR) and brand managers were conducted to develop a 360-degree understanding of the dynamics of the detergent market, employing both quantitative and qualitative data to determine the readiness of KGC itself in launching and sustaining the Jet Liquid detergent brand within the Bangladesh market.
Kallol Group of Companies
II.I A brief overview of Kallol Group of Companies (KGC)
Kallol Group of Companies (KGC) had its humble beginning in 1972, with a handful of local brands. Over the years, the company has grown in both size and stature and currently represents 25 international brands in the Bangladeshi market, in the FMCG and Consumer Durables categories. In the FMCG category, the company represents well-known brands such as Fay, Cadbury’s Éclair, Nutri-C, Kellogg’s, Kit-Kat, Ujala and Jet, to name a few. The company has recently forayed into the consumer durables category, acting as the sole distributors of Romanson, Timex, Rado, Tissot, Guy Laroche, and Parker in Bangladesh through its exclusive Timezone outlets. The company currently owns and operates 32 dedicated Timezone outlets in Dhaka, Chittagong, Rajshahi, Sylhet and Barisal, in addition to employing 14 Timezone franchise throughout Bangladesh. Kallol also manufactures and distributes its own line of detergents, in the form of Jet and Kohinoor, and posted revenues of US $ 52 million in 2009.
Traditionally a distribution company, Kallol’s strength lies in its pervasive network, consisting of 282 distribution partners, and a team of 1000 dedicated professionals throughout the nation. However, in today’s cut-throat competitive world, Kallol has come to the stark realization of the imperative of transitioning from a distribution company to a marketing one. Maintaining a strong presence in the minds of the consumer, not just in the shelves of retailers, is pivotal in the success of the company’s present and its future ventures.
In line with the company’s vision to broaden its brand and category depth, Kallol has decided to launch a liquid detergent, the first of its kind for Bangladesh, under its brand umbrella Jet. Concurrently, the report focuses on conducting an in-depth market research necessary to craft an effective marketing strategy to launch this new category of detergents in the Bangladeshi market.
Mission Statement of Kallol Group of Companies (KGC)
“To provide maximum satisfaction to our consumers and customers with high standard of products and services”
Vision Statement of the Company
“To be recognized as the most eminent and professional business house in Bangladesh with an array of comprehensive team of professionals and high quality products”
II.II Current Product Portfolios
KGC current product offerings can be divided into four groups based on the Consumer Durables and FMCG categories. Watches and Writing Instruments account for the Consumer Durables SBUs, while FMCG category comprises of goods KGC distributes, and KGC’s own manufactured and marketed brands.
Figure 1: Product Portfolio of KGC
The company also acted as the official distributor for Marico India, for its Parachute line of Hair Oil between 1993 and 2003. In addition, KGC was also responsible maintaining customer care points for Banglalink between 1998 till the end of 2004. In 2005, the company acquired TLRA holdings, the manufacturing concern for Jet Detergent. Subsequently, the company also purchased the brand Kohinoor Detergent from Kohinoor Chemicals ltd in 2007. These two detergents constitute the primary manufacturing concerns of KGC in the FMCG category.
The company is essentially an amalgamation of a number of private limited companies each having a clearly defined sphere of responsibility and strategic functions, including:
Kallol Industries Limited (KID): This organization is primarily responsible for the manufacture of Fay tissues, Fay air fresheners, and Fay Cotton buds. The company currently owns and operates the tissue factory and warehouse at 199, Tejgaon C.A, Dhaka.
Kallol Distributions Limited (KDL): KDL’s sphere of responsibility is in the importing of key consumer products such as Nutri-C, Kit-Kat, Milo, Cadbury, Kellogs, Ujala, Fox etc. KID essentially deals with the import wing of Kallol and maintains contacts and strategic ties with foreign suppliers.
Kallol Enterprises Limited (KEL): This organization maintains and operates Kallol’s Timezone outlets, while managing contacts with foreign manufacturer of consumer durables such as Rado, Tissot, Espirit, Longines etc. The company operates 32 dedicated Timezone outlets throughout Bangladesh and has a number of licensed third party operators of Timezone outlets as well. In addition, Kallol Enterprises also deals with importing and marketing exclusive writing instruments such as Parker, Cross, Waterman and Guy-Laroche.
TLRA Holdings Limited: An integral part of Kallol, TLRA holdings is responsible for manufacturing Jet and Kohinoor brand of Detergents. The company owns and operates the detergent factory located in 163, Gazipur, which employs around 40 workers in two shifts to manufacture, pack and distribute Jet and Kohinoor throughout the country. A part of the factory has been leased out to Marico International, which manufactures their Aromatic soap in the vicinity. While TLRA is responsible for the maintenance and upkeep of the factory, as well as providing laborers, Marico is responsible for the actual manufacturing of the Aromatic soap.
Apart from these existing concerns, the company has a number of potential joint ventures in the works, which will inevitably help it to broaden its product and brand base in the near future.
II. III An Overview of the Detergent Industry in Bangladesh
According to interviews conducted with wholesalers, brand managers and SRs, the estimated size of the detergent market in Bangladesh in 2009 was worth BDT 617.1 crore. While the detergent industry is considered by many as relatively mature market, the industry has grown significantly in the last few years, especially in the upcountry areas of Bangladesh. Table 1 aggregates the size and growth rate of the detergent industry between 2005 and 2009.
|Market Growth Rate||6.4%||7.5%||13.6%||8.7%|
Table 1: Market size and growth rate of the Detergent Industry (in BDT crore)
As the data indicates there has been significant growth created from penetration into the rural and semi-urban, where rising adoption rate of detergent has fueled growth in the detergent industry. In many parts of the country however, especially in places like Khulna and North Bengal, detergents prove to unpopular due to the high salinity in the water. Evidently, consumers prefer using ball soaps such as Tibbet 570, Pocha and Wheel Bar for their washing, rather than detergents. It is to be noted however, that with respect to Jet Detergent, KGC only earns around 17.5% of its revenues from upcountry areas.
Jet faces competition from a wide sphere of alternatives. On the broadest level, the brand competes with ball soaps, dry cleaners, liquid soap, and other detergents and washing powders. Essentially, the differentiation between detergent and washing powder lies in its bulk density and cleaning process. Washing powders employ oils, which coagulates with the dirt and pulls it out of the fabric, and this residue precipitates to the bottom of the container. Preparation of detergents requires a high velocity spray drying mechanism as well. In contrast, washing powder essentially employs burst technology, where the dirt is pushed out of the fabrics, in the process often damaging the fabric itself. With respect to the specific competitive sphere for Jet Detergent Powder, the following figure shows its relative position within the overall industry. However, field visits and interviews with KGC’s channel partners indicate that the market for Detergents is highly segmented with respect to price. It should be noted that Wheel dominates the low price segment in terms of volume, while Surf Excel has the largest share with respect to the high price premium detergent segment. With respect to the overall market, Jet detergent’s overall sales value only accounts for only 4% of the overall industry.
II.IV A SWOT Analysis of Kallol Group of Companies
KGC’s inherent strength lies in its rich product-base and its strong ties with its channel partners throughout the country. The following SWOT analysis has been prepared with respect to KGC predominantly in the context of the detergent industry.
|1. Strong, burgeoning product base – KGC currently holds the exclusive distribution and reselling rights to a number of globally renowned brands such as Kellogs, Cadbury, Fay, Soltaire, Ujala and Polo, Nutri-C, Milo, Kit-Kat, etc. Concurrently, the company enjoys a strong bargaining power with wholesalers and retailers throughout the country with respect to shelf-space and trade margins.
2. Wide distribution network throughout the country with 118 and 110 channel partners in upcountry and metro areas respectively allows KGC to plan product placements and manage inventories in a cost effective manner, enabling it to operate its inventory close to its EOQ and ensure wide distributional coverage within the least amount of time.
3. Having a strong product base, and a long term positive reputation in the market, allows KGC to enjoy strong relationship with key wholesalers throughout the country. Effective CRM also enables the company to strengthen its existing networks, while seeking out new channel partners when needed.
4. Being one of the oldest distribution companies, KGC’s management has a wealth of expertise and excellent knowledge of the distribution networks throughout the country
|1. Taking into account the fact that KGC does not enjoy many of the economies of scale of its other FMCG counters parts such as Unilever and Marico, the company’s pricing has been significantly higher than its competitors. In addition, the company also employs premium pricing in many of its products, especially in categories where it enjoys being the pioneers. In context of products such as Fay tissue paper and Jet Detergent, the company’s pricing has been significantly higher than that of its competitors. Hence, while the company enjoys higher margins, they are losing customers to cheaper, local alternatives available in the market.
2. In contrast to KGC’s key competitors, the company has a significantly smaller promotions budget, relying more on word of mouth, and existing brand equity to maintain sales within its FMCG brands. In contrast, companies such as Unilever, MGH and Marico have been spending significantly more in creating market pull, resulting in nagging sales in a few of its product lines.
3. Relatively low pay structure compared to other FMCG companies, and higher pressure has also resulted in high staff turnover.
4. There is clear evidence of demotivation, especially amongst the SRs and Supervisors, who believe the management is not doing enough to create sales opportunities.
|1. Jet is the oldest detergent brand in the country. Once a household name, the brand has had a strong, loyal customer base even before the liberation war. Hence, while the brand enjoys significant brand awareness and recall, being able to effectively leverage that equity into its liquid detergent can create a significant impact in the Bangladesh market.
2. Rising economic growth and growing number of middle income households, especially in the metro areas are creating a growing and viable market for FMCG organizations such as KGC.
3. The potential of the growing, lucrative markets are attracting a number of renowned foreign FMCG brands to forge strategic alliances with local distribution companies such as Kallol and MGH group to penetrate and establish their brands in the market.
4. Kallol has established Bangladesh’s first chain of exclusive and dedicated watch outlets in the form of Timezone. Concurrently, given the company’s strong ties with international watch makers, Timezone outlets have the potential of becoming one of KGC’s star performers.
|1. The recently passed budget has increased Advanced Income Tax (AIT) from 3% to 5% for importing firms. Concurrently, in a price elastic market, Kallol may see its revenues and indeed its profits shrink in the coming years. Furthermore, in the short-run, Jet Liquid will be imported from Thailand, and hence, the rise in AIT will have an adverse impact on its bottom line profits and price.
2. While Sales volume for Jet Detergent has grown over the last 3 years with a CAGR of 9.95%, the tales volume (in tonnage) has actually declined by 6.71% annually within this period. The increase in sales revenue can be largely attributed to the increase in the pricing of all the Jet SKUs, which were put into effect from April 1, 2008.
3. Aggressive price cuts from Unilever, with respect to their flagship detergent, Wheel Power White, along with large scale ATL promotions for Wheel Lemon in recent months can also potentially jeopardize the growth rate of Jet in the coming months.
4. Fledging sales of Kallol’s other washing powder brand; Kohinoor is also a significant cause of concern. While the brand initially enjoyed a brief period of growth and financial success in 2007, the overall sales and customer base for the brand has been on a steady decline since that point onwards.
Table 2: A SWOT analysis of KGC
II.V Boston Consultancy Group Matrix (BCG)
A key resource of strategic planning is the ability of the management to envision its current product base, with respect to product life cycle (PLC), cash flows, and the extent of financial and non-financial support required and justified by each product. Concordantly, the BCG matrix is an effective strategic tool that can help the management decide on which products to build on, which products to support, which ones require corrections, and which brands should be let go off. The following figure illustrates the current positioning of KGCs main bread earners with respect to their market share, and market growth.
Timezone can be considered as one of KGC’s rising stars. The company’s pioneering foray into exclusive watch distribution has been one of most lucrative and profitable ventures. Apart from its own 32 retail outlets, the company also controls a number of franchisees throughout the country. It plans to develop a further 18 new showrooms in Dhaka and its suburbs within 2012. In addition, the company also enjoys significant cash flows from its veteran products such as Kellogg’s Corn flakes, Kit-Kat, Jet Detergent and Nutri-C. However, brands such as Cadbury’s Éclairs has been facing an uphill battle with both Perfetti and Mentos (in an industry which has been growing at an estimated 22% annually), while Jet liquid currently suffers from lack of exposure since its test marketing launch in June 2009.
Market Research for Launching Jet Liquid in the Bangladesh Market
III.I Background to the Report
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 Kallol Group of Companies, conducting an in-depth market research in the Detergent category in Bangladesh to identify current customer wants, and to gauge the viability of launching a liquid 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 liquid detergent was also essential in devising the pricing strategy for KGC’s new product.
III.II Objectives of the research
In light of the management’s decision to launch a premium quality liquid detergent in the Bangladesh market, KGC sought to identify the key dynamics of the upper middle income and high income households within the metropolitan areas of the country. Concurrently, the following broad objective was set for the research:
- To identify the viability of launching Jet Liquid Detergent in the Bangladesh market.
In light of the broad objective, a number of specific objectives were crafted for the research.
- To identify the current usage and application of detergents with respect to the target market
- To identify the perceptions, attitudes and beliefs of the target market with respect to detergent and the activity of washing in order to develop a customer profile of the target market.
- To identify the most critical factors to target consumers, with respect to detergent purchase.
- To identify the relative positioning of Jet Detergent powder and its key competitors with respect to the critical factors for purchasing detergents.
- To identify the extent to which Jet Liquid detergent will be able to meet the needs and expectations of the target market.
- To identify the current positioning and perception of Jet Detergent and its key competitors among the target market.
III.III Methodologies of the research
In conducting the market research, both qualitative and quantitative data were collected, from both primary and secondary sources. Primary data were collected through depth interviews, category survey, and Trial User surveys, in three phases. In addition, secondary data was collected from statistical year books, KGC’s internal databases and from relevant government publications to chalk out the current economic, demographic and social scenario, with respect to the detergent market in Bangladesh. In addition, a number of interviews were conducted with KGC’s managers, and key channel partners, in a bid to gauge the readiness of the organization itself in launching and sustaining the Jet Liquid Detergent brand.
The research employed both descriptive statistics and a multiple regression model to identify which factors have had the most significant impact on the overall customer satisfaction. Furthermore, the research also employed a simple conjoint analysis to gauge the desirability of the attributes provided by Jet Liquid Detergent, with respect to the target market. In addition, T-test and One-way ANOVA was employed with respect to the critical factors of customer satisfaction and in the multiple regressions for testing statistical significance of mean rankings of consumers where appropriate.
The primary phase of the research involved conducting depth interviews with 10 respondents from families with a target income of BDT 25,000 and above with the goal of identifying the attributes that consumers find relevant in purchasing detergents. In addition, the depth interviews were designed to identify the current knowledge base of the respondents with respect to detergent features, price and quality. The respondents were also given a week to use Jet Liquid and provide both qualitative and quantitative feedback on their experiences in a second round of interviews. A detailed account of the findings of the interview can be found in Part IV of the report.
The second phase of the research involved conducting an in-depth category survey among 84 respondents throughout Dhaka city, who fall within the target income group with a MHI of BDT 25,000 and above. Subsequently, these respondents were given samples of Jet Liquid Detergent, and allowed to use the product for a period lasting no longer than 2 weeks. At the end of this period, a final round of surveys were conducted to gauge their response to the product, and hence identify the relative strengths and weakness of the liquid detergent as perceived by the consumers.
For the depth interviews, a sample of 10 respondents were chosen, based on non-probabilistic convenient sampling method. For the second phase of the research, titled ‘Category survey of Detergents’ the sample size was fixed at 96 respondents in light of the following research parameters:
Level of significance, ? = 10%, z = ±1.65
Sample size, n = z2(pq)/d02
= 84 respondents
Concordantly, at the sample size of 84 respondents, the accuracy of the research has been computed to be + 9%. Lack of any viable sampling frame had led to the application of a non-probabilistic sampling method, namely quota sampling. The sample respondents were divided according to strata based on geographic location throughout Dhaka city. In addition, the size of each stratum was determined according to the density of middle and high income earners in each area. The breakdown of the sampling distribution can be found in Appendix B. The respondents from each designated area, was then chosen on the basis of convenience, according to the screening process determined within the research parameters, which are outlined in Part IV of the report.
In the third and final stage the same sample respondents were provided with the product, and their responses were recorded after 2 weeks of usage.
III.IV Scopes and Limitations
The research focused on the performance and category positioning of Jet Detergent and Jet Liquid Detergent with its key competitors as determined by KGC’s top management. Hence, the SWOT and other relevant analysis of the report focus on the Detergent Category only. While it is undeniable that Jet liquid will face competition from product type and generic markets, such as dry cleaners, ball soaps and the like, the research solely focuses on the prospects of Jet Liquid with respect to detergent and washing powders in the market. In addition, in accordance with KGC’s management’s objectives, the product will be launched, keeping the urban upper middle income and high income consumes in mind, concurrently, the sample respondents chosen, reflects KGC’s decision. The research assumes that there is no autocorrelation or heteroscedasticity in the way the respondents filled out their questionnaires. In accordance to the methodologies and scopes outlined, the following can be considered as limitations of the report:
- The research was conducted throughout Dhaka city only, concurrently, the findings indicated in the research may not be an accurate representation of detergent consumers residing in other metro or upcountry areas throughout Bangladesh.
- The research employed non-probabilistic quota sampling technique; hence, the findings in the study may not be statistically significant. Concordantly, with an accuracy of + 9%, the findings may be biased and subject to stochastic or sampling error.
- The surveys were conducted among high and middle income households, hence ignoring the expectations and need sets of consumers at the bottom of the pyramid.
- A dearth of available literature on the topic of Detergent and customer satisfaction within the context of the subcontinent had meant that the research had to be crafted based on the depth interviews with respondents from the target segment rather than on any existing literature.
Research Planning and Data Collection
The market research for launching Jet Liquid Detergent was conducted in three phases, with the aim strengthening and augmenting each stage of the research with the findings of the previous stage. In addition, a number of pilot surveys and subsequent modifications were undertaken for both the category surveys and the trial user surveys.
IV.I Phase One: Depth Interviews
The Depth interviews were conducted between April 20 and May 1, 2010. The break-down of the respondents with respect to their gender, age, and income group have been aggregated in the following table:
|Male Respondents||2||Owns washing machine||2|
|Female Respondents||8||MHI||BDT: 25,000 – 100,000|
|Age Distribution of the Respondents|
|Below 18||18 – 25||25 – 40||Above 40|
Table 3: Profile of the depth interview respondents
The respondents were chosen through convenience sampling, in concurrence with three major criteria.
- The respondent must be involved in the decision making process of which brand of detergent is purchased.
- The respondent must have washed clothes at least once in the last six months.
- The respondent’s household income must be BDT 25,000 and above.
The respondents were provided a sample of Jet Liquid and the interviews were conducted one week from the day the sample was provided. The primary goal of the depth interview was to identify what are the factors that respondents look for in their detergent purchase. Concurrently, the interviews were conducted with the goal of identifying the key factors that are a part of their decision making process, the nature and sources of influence when deciding on their brand of detergent, as well as their perception of detergent pricing and perceived quality. In addition, the interviews were conducted to identify any potential issues or suggestions that respondents may have had regarding their experience with the liquid detergent. The interviews provided useful insights into the underlying issues involved with the activity of washing clothes, the nature and sources of influence in deciding the detergent as well as key areas where they believe Jet liquid had room for improvement.
The findings of the depth interviews, which can be found in Part IV of the report, were employed in designing the next stage of the market research, The Category Survey. The question set employed in the depth interview can be found in Appendix A of the report.
IV.II The Category Survey Development
While the category questionnaire started its development on May 2, 2010, the survey went through a number of iterations, before it was finalized on May 15, 2010. The main objective of the Category surveys was to identify what the target market looks for in a detergent, and to what extent their needs are being delivered by existing detergent brands. In addition, the Category Survey also sought t identify the current usage and applications for detergents, perceptions that respondents have towards washing, which brands they previously purchased, and what caused them to switch. The following accounts for some of the key changes that were made throughout its development.
Phase 1 May 2 till May 7, 2010
The first draft of the questionnaire was crafted with three segments focusing on Detergent category usage and applications, identification of the critical factors in choosing detergents and competitive positioning of Jet detergent and its competitors. Initially a 10 point scale was employed in identifying the relative strengths and weaknesses of Jet with respect to other detergent and washing powder brands in the market. Pilot testing indicated that respondents were having difficulty interpreting the 10 point scale. Inputs were also taken from Unitrend Bd. at this stage to augment the existing questions base.
Phase 2 May 8 till May 13, 2010
Questions regarding ownership and application of washing machines were added, in addition to reverting back to a 5 point scale for identifying the most critical factors influencing detergent choice. In addition, a basic conjoint analysis was added as well. At this stage, a number of Likert Scale questions were also included in order to identify the current perceptions of consumers with respect to washing, washing machines, their correlation between price and perceived quality of detergents and their sentiments towards appearance, preserving clothes and frequency of washing clothes. Once the questionnaire was finalized, a codebook was developed for facilitating data entry and question tracking.
The category survey was conducted between May 14 and May 24, 2010 among a sample of 84 respondents. The surveys were conducted by five research associates within the designated areas (Appendix B). The following table aggregates the research parameters for the Category Surveys.
|Sample Size||85 respondents||Sampling Method||Quota Sampling|
|Accuracy||+ 9%||Surveyors||5 Researchers|
|Significance||+ 0.05 on each tail||Duration||2 weeks|
Table 4: The Category Surveys Parameters
At the conclusion of the surveys, the respondents were given a 200 ml sample of Jet Liquid to be used for 2 weeks, and their responses were collected in the next stage, The Trial User survey. Furthermore, each respondent’s authenticity was verified via telephone calls, and in a few cases, through personal visits from KGC’s own staff. The responses of the category survey were tested for reliability according to Cronbach’s alpha, and the findings have been aggregated in the following table:
|Q30 Brand Satisfaction|
|No. of items||Alpha|
|Q35 Importance of features in Detergents|
|No. of items||Alpha|
|Q36 Preference of Detergent|
|No. of items||Alpha|
|Table 5: Reliability for the Category survey|
The three key questions of the Category survey were tested for reliability, and while Importance of Detergent Features and Preference of Detergents (Conjoint Analysis) scored high reliability, Brand satisfaction only scored moderately high. The latter may not come as a surprise, since there was a large deviation in the way the respondents ranked each of the six brands.
|Q8 Customer Satisfaction for Jet Liquid|
|No. of items||Alpha|
|Q9 Competitive Scoring of Jet Liquid|
|No. of items||Alpha|
IV.III The Trial User Surveys
|Table 6: Reliability for Trial User Surveys|
The Trial User Surveys were conducted between May 25 and June 10, 2010 among the same respondents who were selected for the Category surveys. After a period of 2 weeks of trial usage, their responses were recorded in terms of overall satisfaction, their likes and dislikes regarding Jet Liquid and how they rank the attributes of Jet Liquid with their current brands. Concurrently, a detailed account of the findings of the Trial User Surveys have been provided in Part V of the report. The Trial User Surveys, which employed both multiple choice and open-ended questions, was conducted within a 2 week period by 5 research associates. The following table aggregates the reliability scores of the key questions of the Trial User Survey. At the conclusion of the final round of surveys, each of the respondents were provided a gift hamper, with compliments of KGC, while the research associates attended a business briefing, where they shared their findings. It should be noted, that ultimately, a 6 point Likert Scale was employed in both the degree of customer satisfaction and competitive scoring of Jet liquid in a bid to avoid central tendencies of the respondents.
IV.IV Overview of the Research – Timeline and Budget
The entire research project was undertaken between April 20, and June 15, 2010. The following Gantt chart illustrates the progression of the research and its various stages, over the stated duration.
|Apr.20 – May.4||Week3||Week4||Week5||Week6||Week7||Week8||Week 9||June 22.|
|Category Survey Development|
|Meeting with Researchers|
|Trial User Survey Development|
|De-briefing of researchers|
|Trial User Survey|
|Category Survey Analysis|
|Meeting with Researchers|
Figure 4: Timeline of the Research
The overall project was completed within 8 weeks, while the remaining two weeks were reserved for data analysis and report writing. Concurrently, the research budget for the survey has been aggregated in the table in the following page:
|Phase One: Surveys||Units||Unit Cost||Total Cost|
|Kallol Staff 2||5|
|Kallol Staff 3||5|
|Phase Two: Trial Usesr Survey||Units||Unit Cost||Total Cost|
|Kallol Staff 2||5|
|Kallol Staff 3||5|
|Total Researcher Costs||48,000|
|Unit||Unit Cost||Total Cost|
|Total Cost of Research||54,079|
Table 7: The Proposed Budget for the research
As indicated in the table, the initial target for the research was 96 respondents; however, due to lack of time, the surveys which were to be conducted by KGC’s own staff were not completed. Concurrently, the actual number of respondents reached decreased to 84, and subsequently the accuracy of the research came down to 9%.
Findings and Data Analysis
The overall findings of the research have been arrayed according to the specific objectives of the research. Concordantly, a detailed breakdown of the respondents profile has been provided in Appendix B of the report.
V.I Current Usage and Applications of Detergent
Most respondents wash their clothes in the morning, closely followed by afternoon. It is important to understand when and in what sequence households carry out their daily routines. In addition, the research also indicated that most respondents dry their clothes in direct sunlight.
In fact 49 respondents dry their clothes in direct sunlight, notwithstanding the fact that direct sunlight actually damages the color of the clothes. Most of these respondents dry their clothes in the morning, to ensure the highest intensity of the light on the clothes when drying. Only 29 respondents try their clothes in a shaded area indicating that there is a need for educating the consumers on how to preserve their clothes better.
Another key area of interest to the research was whether respondents washed their colored and white clothes separately, and whether or not they used separate detergents for each. In addition, which detergents were used for colored clothes and for whites? 92% of the respondents washed their colored and white clothes separately, however, only 19% of the respondents used separate detergents for each. The data indicates that Wheel Power White and Surf Excel are generally used, when washing colored clothes (Appendix B). With respect to whites, the most popular detergent in this category proved to be Surf Excel, closely followed by Wheel Power White. Most respondents pointed to the fact that Surf Excel’s strong cleaning power to remove tough stains makes is suitable for white clothes. However, it should be noted that 29 of the respondents who did not use separate detergents used Surf Excel on all their clothes.
The respondents were also asked whether or not they employ separate detergents for their formal and house clothes. This concept was first brought up in the Depth interviews where it was seen that a number of households employed multiple detergent brands. Households often used a premium brand (such as Surf Excel or Jet Detergent) for their formal clothes and a budget variant (such as Wheel Lemon) on their house clothes, bed sheets curtains etc.
30% of the respondents used separate detergents for their formal and house clothes. 7 of the respondents used Surf Excel, closely followed by Jet (5) and Wheel Power white (4). The detailed break-down of the brands employed in washing formal clothes can be found in Appendix B of the report. For house clothes, the most popular choices were Jet and Surf Excel (7) and Wheel Lemon (3).
The research also sought to identify what were the other applications of detergents for households. The following table summarizes the various applications of detergents according to their respective brands:
|Surf Excel||Cleaning Bathroom||3|
|Washing Basin & Racks||4|
Table 8: Alternative uses of Detergent and Washing powders
Interestingly, Jet detergent appeared to be popular among respondents for cleaning crockeries and floor, while Wheel Lemon was employed by respondents for cleaning bathrooms, crockeries and floors. Further discussions with respondents indicated that those who applies Jet for cleaning crockeries believe the detergent to be mild, and concurrently the respondents believe this indicates the detergent to be safe for washing utensils and plates.
The research also aimed to identify where and how