+ All Categories
Home > Marketing > Strategy to Revive Marico's Set Wet sales

Strategy to Revive Marico's Set Wet sales

Date post: 13-Apr-2017
Category:
Upload: mihir-sangodkar
View: 86 times
Download: 0 times
Share this document with a friend
54
Transcript
Page 1: Strategy to Revive Marico's Set Wet sales
Page 2: Strategy to Revive Marico's Set Wet sales

TABLE OF CONTENTS

1 EXECUTIVE SUMMARY ..................................................................................................... 2

2 INTRODUCTION ................................................................................................................... 3

2.1.1 BACKGROUND ......................................................................................................... 3

3 RESEARCH FRAMEWORK ................................................................................................. 4

3.1.1 RESEARCH PROPOSAL ............................................................................................. 4

3.1.2 RESEARCH DESIGN................................................................................................... 4

3.1.3 RESEARCH PROBLEM – 1 ......................................................................................... 4

3.1.4 RESEARCH QUESTIONS –1 ....................................................................................... 4

3.1.5 RESEARCH PROBLEM - 2 .......................................................................................... 5

3.1.6 RESEARCH QUESTIONS -2 ........................................................................................ 5

4 RESEARCH METHODOLOGIES ......................................................................................... 5

4.1.1 LITERATURE SURVEY ............................................................................................... 5

4.1.2 SWOT ANALYSIS ...................................................................................................... 7

4.1.3 QUALITATIVE RESEARCH ......................................................................................... 8

4.1.4 Key Findings from Qualitative Research: ................................................................ 9

4.1.5 Root causes for declining Sales growth: .................................................................. 9

5 RESEARCH HYPOTHESES DEVELOPMENT ................................................................. 10

5.1.1 RESEARCH HYPOTHESES DEVELOPMENT .............................................................. 10

6 DATA ANALYSIS PLAN ................................................................................................... 16

7 Hypothesis Analysis according to Questionnaire .................................................................. 19

7.1.1 For hair gel users ................................................................................................... 19

7.1.2 For NON SET WET hair gel users ........................................................................... 26

7.1.3 For SET WET hair gel users .................................................................................... 29

7.1.4 For non-users of hair gel ....................................................................................... 39

8 CONCLUSION ..................................................................................................................... 46

9 ANNEXURE A (OBJECTIVE OF THE IN-DEPTH INTERVIEW) .............................. 48

Page 3: Strategy to Revive Marico's Set Wet sales

1 EXECUTIVE SUMMARY

Aim: Even as the Men’s Personal Care segment has grown in India in both sales and

product line, Marico noticed that the annual growth of its Youth Segment product portfolio

was slowing down to 6% as compared to the 14%-15% growth it enjoyed in 2009. This

slowdown has been primarily attributed to entry of competitor’s in the Hair Gel segment,

a forerunner for Marico with its Set Wet product line. Through this study, we aim to

understand the reason for such a slowdown and, using consumer perception’s, establish

change parameters.

Research Methodology: Explorative research was initially undertaken through personal,

indepth interviews conducted in Jamshedpur. There results were then collaborated with

Secondary Data obtained through Euromonitor reports and Marico press releases. To

quantify this, and effectively begin change control mechanisms, a quantitative survey was

undertaken among all target groups established through the interview. From the major

parameters that emerged, the ones with maximum correlation were used further and a data

analysis plan emerged. It should be noted that the survey was mainly focussed on target

and converted users.

Conclusion: By the end of this study, we aim to provide Marico with an in depth analysis

of the reasons for a growth slowdown in Set Wet gel sales and what parameters can be

modified to restore normalcy

Page 4: Strategy to Revive Marico's Set Wet sales

2 INTRODUCTION

2.1.1 BACKGROUND

According to the Euromonitor Report titled “Men’s Grooming in India”, the segment

registered a growth of 15% in 2014, to reach INR 53.6 billion. Although this was primarily

led by urban consumer demand, a category expansion was seen into Bath and Shower

products along with Skin Care, much beyond the regular Shaving products. During the

forecast period of 014-19, it is predicted that a total (CAGR) increase of 10% would be

observed over 2014 prices. It was seen that men in India today—and especially those who

fall in the age group of 18 to 25— spent more money on grooming and personal care

products than women. 85% men preferred to buy their own products and did not rely on

the women in the household to help them. 75% of the men reported their branded cosmetic

consumption to have gone up by about 65% in last ten years.

The report, “Indian Hair Care Market Forecast to 2015”, says that the increasing desire to

look presentable and stylish is driving the markets. The Indian Hair Care market is derived

by analyzing and studying its sub-segments including: hair oil, shampoo, conditioners, hair

color and gel. The reasons for this ranged from Professional Image building increased

emphasis on personal grooming and not just sex appeal, product innovation, expanding

middle Class to endorsements by celebrities and sports stars Among all other categories,

the Hair Care segment registered the highest growth – 21% in terms of 2015 value terms.

Page 5: Strategy to Revive Marico's Set Wet sales

It was mainly driven by market expansion, led by Marico and Emami, to men using styling

gels at an age earlier than ever before – 15 years.

3 RESEARCH FRAMEWORK

3.1.1 RESEARCH PROPOSAL

In 2014, Marico represented the fifth largest share of companies in India by % value – it

stood at 5%, down from 5.6% and 5.4% in 2012 and 2013 respectively. Of this, Set Wet

Gel contributed 3.8%, 4.2% and 4.3% respectively over 2015, 2014 and 2013. Marico’s

Youth portfolio, consisting of Serums and Hair Gels, was 44% in terms of portfolio share

for the quarter ended March in 2015. According to AC Nielsen study, Value of SET wet

hair gel was 53cr in 2012, 73cr in 2013 but declined to 72cr in 2014 and sales growth

declining since then. Thus our Management Decision Problem (MDP) for this study is

“Should Marico invest to revive Set Wet Gel sales growth?”

3.1.2 RESEARCH DESIGN

The Marketing Dictionary of Rona Ostrow and Sweetman R. Smith describes lifestyle as

"a distinctive mode of behaviour centred around activities, interests, opinions, attitudes

and demographic characteristics distinguishing one segment of a population from another”.

Lifestyle marketing involves segmentation of the market on the basis of lifestyle

dimensions, positioning the product such that it appeals to the interests, activities and

opinions of the target customers and doing promotional campaigns such that it exploits

lifestyle appeals to create value to the product offered. We started through Exploratory

Research where we did in-depth interviews and qualitative research to comprehend the

problem situations confronting researchers. We were able to list down various factors

affecting customer perception of the product and effect of promotional campaigns on its

sales. After that we will be doing Conclusive research that involves data collection and

analysis to obtain cause and effect relationships between the variables which will help us

in decision making.

3.1.3 RESEARCH PROBLEM – 1

1. To determine the current perception of Set Wet Gel in the mind of the consumer

3.1.4 RESEARCH QUESTIONS –1

a) What are the main reasons for using hair gel?

1) How important is peer influence on selection of brands (Rate among all factors)?

2) How does usage frequency i.e. Regular, Occasional and Rare affect brand

determination (Rate among all factors)?

Page 6: Strategy to Revive Marico's Set Wet sales

b) How has entry of competitors with alternatives to hair gel affected sales?

c) Do hair gels have a negative perception among the youth with regards to hair damage?

d) To what extent does presence of natural ingredients influence customer perception and

affect sales?

e) How significant is packaging’s role in product perception?

3.1.5 RESEARCH PROBLEM - 2

2. To determine the effect of promotional campaigns on market penetration level

3.1.6 RESEARCH QUESTIONS -2

a) In spite of being the market leader, why has sales growth for Set Wet Gel declined in

the past years?

b) What effect does the product tag line have on different demographics?

c) To what extent does advertisement (or change thereof) affect sales?

d) Which is the most effective medium of communication among the target consumers?

4 RESEARCH METHODOLOGIES

4.1.1 LITERATURE SURVEY

Howard and Sheth buying behavior model was proposed in the 1960s to explain buyer

rationality while making purchase decisions even in conditions of incomplete information.

The model focuses on repeat buying/purchase. According to this model we categorize our

factors into four major components, viz., stimulus inputs (input variables), hypothetical

constructs, response outputs (output variables), and, exogenous variables. a) Stimulus

inputs (Input variables): The input variables refer to the stimuli in the environment. They

take the form of informative cues about the product/service offering; these information

cues could relate to quality, price, distinctiveness, service and availability. The

informational cues could be Significative, Symbolic, and Social. All these three types of

stimuli provide inputs concerning the product/brand to a consumer. Significative stimuli

refers to the product/brand information that the marketer provides. It deals essentially with

the brand characteristics. Symbolic stimuli refer to the psychological form with which a

buyer perceives the product and service offering. It is figurative and perceptual and

depends on how the offering has been positioned. It emanates from advertising and

promotion efforts. Social stimuli refer to the information about the product or service

Page 7: Strategy to Revive Marico's Set Wet sales

offering that comes from the social environment viz. family, groups, society and culture at

large.

b) Hypothetical constructs: Howard and Sheth classified the hypothetical constructs into

two major groups, viz., perceptual constructs and learning constructs. These constitute the

central part of the model and deal with the psychological variables which operate when

the consumer is undergoing the decision making process.

c) Perceptual constructs: The perceptual constructs deal with how a consumer obtains and

processes information received from the input variables. Once the buyer is exposed to any

information, there is an attention. This attention towards the stimuli depends on the buyers’

sensitivity to information in terms of his urge and receptivity towards such information.

Not all information would be processed and the intake of information is subject to

perceived uncertainty and lack of meaningfulness of information; this is referred to as

stimulus ambiguity. This reflects the degree to which the buyer regulates the stimulus

information flow. Stimulus ambiguity occurs when a consumer does not understand the

message from the environment; it could trigger off a need for a specific and active search

for information and thus lead to an overt search for information. The information that is

gathered and processed may suffer from perceptual bias if the consumer distorts the

information received so as to fit his/her established needs/beliefs/values/experiences etc. -

Learning constructs: The learning constructs relate to buyer learning, formation of

attitudes and opinions, and the final decision. The learning constructs are seven in number,

and range from a buyer’s motive for a purchase to the final satisfaction from a purchase;

the interplay of these constructs ultimately leads to a response output or a purchase. The

motives refer to the goals that a buyer seeks to achieve through a purchase and the

corresponding urge towards action or the purchase activity. The brand comprehension is

the knowledge and information that the buyer has about the various brands in his evoked

set. The buyer forms an order of preference for the various brands; this order of preference

is based on the choice criteria (decision mediators). The decision mediators are the

evaluative criteria and the application of decisions rules by the buyer to the various

purchase alternatives. Based on the choice criteria, the attitudes are formed for the varying

brands. The attitudes reflect the predisposition of the buyer; preference toward alternative

brands; and, feelings of like/dislike towards the offerings. The brand potential of the

evoked set determines the buyer's perception and confidence level of the brands that he is

considering to purchase. The purchase intention is a cumulative outcome of the interaction

of buyer motives, choice criteria, brand comprehension, resultant brand attitude and the

Page 8: Strategy to Revive Marico's Set Wet sales

confidence associated with the purchase. Satisfaction, another learning construct, involves

the post purchase evaluation (whether expectation from an offering matches the

performance) and resultant impact (positive/negative) on brand comprehension. c)

Response outputs (output variables): The output variables refer to the buyer’s action or

response to stimulus inputs. According to Howard and Sheth, the response outputs

comprise five constituents, viz., attention, comprehension, attitude, intention and purchase.

These could be arranged in a hierarchy, starting from attention and ending up with

purchase. - Attention refers to the degree or level of information that a buyer accepts when

exposed to a stimulus. It reflects the magnitude of the buyer's information intake. -

Comprehension is the amount of information that he actually processes and stores; here, it

refers to brand comprehension which is buyers’ knowledge about the product/service

category and brand. - The attitude is the composite of cognition, affect and behavior

towards the offering; the attitude reflects his evaluation of the brand and the like/dislike

based on the brand potential. - Intention refers to the buyer’s intention to buy or not to buy

a particular offering. - Purchase behavior refers to the actual act of buying. The purchase

behavior is a cumulative result of the other four constituents. d) Exogenous variables: The

Howard and Sheth model also comprises certain constant exogenous variables that

influence some or all of the constructs explained above, and thereby impact the final output

variables. These are explained as Inhibitors or environmental forces that restrain the

purchase of a favored brand; eg., importance of the purchase, price, financial status of the

buyer, time at the disposal of the buyer, personality traits, social pressures etc.

4.1.2 SWOT ANALYSIS

Strengths

Has a strong brand name and presence in India

Effective advertising and branding targeting the youth

Good distributions, promotions and campaign for luring customers

Also provides a grooming range with deodorant to push sales

Popular TV campaigns and print ads aligned for the youth

Weaknesses

Only an urban market phenomenon

High pricing reduces the target market

Controversial advertisement often leads to legal issues

Opportunities

Limited edition fragrances

Tie up with hotel chains and gyms

Increase market share by tapping into demographics

Couple with other Marico products

Threats Deodorants sales are seasonal and maximize in summer months

Competition from premium hair wax competitors like Hair Wax

Page 9: Strategy to Revive Marico's Set Wet sales

4.1.3 QUALITATIVE RESEARCH

Qualitative research technique aims at understanding people. As our problem statement

deals with declining sales growth rate of the leading hair gel brand in India, we need to

understand the usefulness of the brand as perceived by the consumers. We primarily

focused on secondary data sources and in-depth interviews as research methodology. For

in-depth interview, sampling was done from a population consisting of people of

Jamshedpur. The selection criteria for sampling has been explained in further segments.

Next step involved identifying variables based on research questions. The key variables

identified have been tabulated below:

Variable Parameters

Purchase Intent Professional Image building, Grooming, Styling, Social

Events, Keeping hair in place and acceptance among

peers

Peer Influence Source of information, Need for acceptance

Frequency of Use Daily occasions and Social Gatherings

Personality of Buyer Pre-University Teens, Graduate Students, Young

Professionals

Product Attribute Ingredients – Natural and Artificial, Pricing, Ease of Use,

Strength (Frequency of Application)

Industry Attributes Brand image of Product, Brand image of competitors,

Industry growth rate

Packaging and Tagline Positioning, Demographics

Source of Information Advertisements, Peers, Online Forums, Expert opinion

through magazines, Salons

Advertisement Target Group, Brand Positioning

Following the in depth interview, a questionnaire was developed based on the qualitative

research findings. The findings from the in-depth interview was compared with secondary

data collected to refine the questionnaire. This questionnaire has been attached in the

appendix. The key findings from these interviews is discussed in detail in the next section.

4.2.1 In-depth Interview

Page 10: Strategy to Revive Marico's Set Wet sales

Sample 1 – Young working Male

Meeting point – CCD, Brubeck, and popular hangout places in Jamshedpur

Sample 2 – Cousins studying in undergrad colleges

Meeting point – Virtual, through phone and internet

Sample 3 – ex-colleagues

Meeting point – Virtual, through phone and internet

Sample 4 – Classmates at XLRI

Meeting point – XLRI

The subjects fit into following 3 types:

1. Type 1 – pre university/ late teens (15-20 Years)

2. Type 2 – young professionals (20-22 years)

3. Type 3 – Graduate students (22-25 years)

4.1.4 Key Findings from Qualitative Research:

Need States:

Need states Attribute

Daily Usage

All three types are looking for products

that give a natural look and can be used

daily

Regular Formal Usage Most sought after quality in hair gel by

Type 2 users, ‘Classy’ instead of ‘Sexy’

Occasional Usage Mostly styling needs, Can be introduced

as a stronger variety of the same product

4.1.5 Root causes for declining Sales growth:

1. 90’s Image of Hair Gel – Hair gel is perceived to be used for extensive styling of hair

and the slick-back look, whereas the audience has matured and is looking for an advanced,

classy product

Page 11: Strategy to Revive Marico's Set Wet sales

2. Perception that Gel is Harmful to the Hair – Belief that gels contain chemicals, make

the hair brittle and cause hair fall. None of the beliefs are substantiated by actual data or

evidence, propagated by peer groups. Tendency to blame any adverse hair condition on

styling products. So they tend to stick to products like shampoos and conditioners

3. Technical Problems – Gelled hair tends to attract grime and dust because of its

stickiness. Sticky texture not suitable for Indian weather because heat and sweat causes

the product to leak onto the face

4. In-Your-Face Look – Gel is very evident and noticeable. It doesn’t look natural and

any third person can tell that gel has been used which makes the user look like he’s trying

too hard. Users want a product that’s more understated yet fulfils their styling needs

5. Alternatives Recommended by Primary Reference Groups – Increasingly, stylists

are dissuading customers from using gels and are steering them towards products like hair

wax. Stylists are primary influencers when it comes to hair care and users are quick to

change their styling routines on the advice of stylists

5 RESEARCH HYPOTHESES DEVELOPMENT

5.1.1 RESEARCH HYPOTHESES DEVELOPMENT

“MDP – Should Marico invest to revive Set Wet Gel sales growth?”

Research suggests that customers go through a five-stage decision-making process in any

purchase. This is summarized in the diagram below

Need Recognition and Problem Awareness

Information Search

Evaluation of Alternatives

Purchase

Post Purchase Evaluation

The Early starters among the Type 2 and Type 3 interviewees stated being influenced

by the sleek ads for hair gel in their teenage years. The need to look ‘Cool’ via flashy

hair gels and trendy hair styles is what initiated gel usage for them. Interestingly,

current teenagers are looking for hair styling options that are quite different – Healthy

products that give a soft hold and sober style

Page 12: Strategy to Revive Marico's Set Wet sales

The model implies that customers pass through all stages in every purchase. However, in

more routine purchases, customers often skip or reverse some of the stages. For example,

a customer buying a favourite product would recognise the need and go right to the

purchase decision, skipping information search and evaluation. However, the model is

very useful when it comes to understanding any purchase that requires some thought and

deliberation. The buying process starts with need recognition. At this stage, the buyer

recognises a problem or need or responds to a marketing stimulus. An "aroused" customer

then needs to decide how much information (if any) is required. If the need is strong and

there is a product or service that meets the need close to hand, then a purchase decision is

likely to be made there and then. If not, then the process of information search begins.

A customer can obtain information from several sources:

Personal sources: family, friends, neighbours etc

Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of-sale

displays

Public sources: newspapers, radio, television, consumer organisations; specialist

magazines

Experiential sources: handling, examining, using the product The usefulness and influence

of these sources of information will vary by product and by customer. Research suggests

that customers value and respect personal sources more than commercial sources (the

influence of "word of mouth"). The challenge for the marketing team is to identify which

information sources are most influential in their target markets.

In the evaluation stage, the customer must choose between the alternative brands, products

and services.

How does the customer use the information obtained?

An important determinant of the extent of evaluation is whether the customer feels

"involved" in the product. By involvement, we mean the degree of perceived relevance

and personal importance that accompanies the choice.

Where a purchase is "highly involving", the customer is likely to carry out extensive

evaluation.

Low involvement purchases (e.g. buying a soft drink, choosing some breakfast cereals in

the supermarket) have very simple evaluation processes.

Page 13: Strategy to Revive Marico's Set Wet sales

Post-purchase evaluation - Cognitive Dissonance

The final stage is the post-purchase evaluation of the decision. It is common for customers

to experience concerns after making a purchase decision. This arises from a concept that

is known as "cognitive dissonance". The customer, having bought a product, may feel that

an alternative would have been preferable. In these circumstances that customer will not

repurchase immediately, but is likely to switch brands next time.

To manage the post-purchase stage, it is the job of the marketing team to persuade the

potential customer that the product will satisfy his or her needs. Then after having made a

purchase, the customer should be encouraged that he or she has made the right decision.

Customer seeks to utilize maximum features of the products. In case of Set Wet gel, the

consumer links him to features accentuated by the Set Wet marketing team. The usage

conditions and materials used along with the associated risks can be some of the limiting

factors. These factors inhibit the manner in which consumers seek to derive benefits. Thus

we have hypothesized that the pertaining properties of Gel are the most important

inhibiting factors and the ingredients, advertising and packaging are important promoting

factors.

“RP – To determine the current perception of Set Wet Gel in the mind of the

consumer”

For developing our research Hypothesis, we need to understand the factors behind any

decision making process. In case of hair gel, the main decision triggers can be styling, need

for social acceptance, peer influence. In some of the cases, maintaining unruly hair and

using hair gel as a protective coating for hair has also been seen. In most cases, it is a five

stage decision making process (Kotler, Keller, Koshy and Jha, 2008).

1) What are the main reasons for using hair gel?

H1: Hair gel is preferred because

H2: Stylish hair is an important component of social acceptance at gatherings and

events

H3: Stylish hair increases appeal to the opposite gender

H4: Hair gel helps maintain unruly hair

H5: People use hair gel because of its strength of hold

H6: Hair gel nourishes hair

Page 14: Strategy to Revive Marico's Set Wet sales

Frequency of use is a function of type of users (demographics), occasion (need based) and

psychological factors (trade-off between usefulness and perceived damage to hair,

uncertainty and other related factors (Hansen, 1976)). Like any other convenience product,

product pricing and promotion play a major role as compared to product quality. As the

frequency of use increases, brand loyalty becomes important, keeping other variables like

price constant.

2) How does usage frequency i.e. Regular, Occasional and Rare affect brand

determination

H1: For frequent usage, advertisement about sales promotions and discounts are

more important than brand loyalty

H2: For frequent usage, price is more important than quality

H3: For rare usage, advertisement about sales promotions and discounts are more

important than brand loyalty

H4: For rare usage, price is more important than quality

In addition to finding the purchase intent, our research hypothesis is developed

keeping in mind external variables like competitors that affect consumer buying

behaviour. There has been introduction of various competing brands as well as

alternatives of hair gel, like hair wax, in the market. With increasing awareness

generated through promotional channels, consumers are making more informed

decisions while making purchase decisions.

3) How has entry of competitors with alternatives to hair gel affected sales

H1: Better substitutes like hair wax

H2: Set wet quality is lower than competitors’ products

H3: Competitor’s product is priced at a lower per unit rate

H4: Competitor’s product occupies better shelf space and is more readily visible

in stores

Unlike shampoos and conditioners that are a basic necessity for maintaining cleanliness

and hygiene, hair gels are perceived as styling products. In addition to exposing hair to

various harmful chemicals, they also attract dust and pollution due to their sticky nature.

Introduction of non-sticky variants may go a long way in addressing these issues. Also,

hair gels might be considered by some as potent causes of hair falls. All these factors can

lead to decreasing Sales even for the leading brand in the market.

Page 15: Strategy to Revive Marico's Set Wet sales

Presence of natural ingredients not only reduces the perceived negative consequences of

sing hair gel, but it also helps in promoting the product as something that can improve the

quality of hair. Thus, it addresses the safety concerns as well as provides added benefits.

These factors can play a crucial role in the urban/high income group consumers, which

will eventually lead to increasing revenues by increasing Sales volume.

4) To what extent does presence of natural ingredients affect sales

H1: Presence of natural ingredients takes precedence over brand loyalty when a

new product is introduced

H2: Products with natural ingredients sell more in urban areas as compared to

rural areas

H3: Presence of natural ingredients increases Consumer rating for a product

In recent years, there has been increasing awareness about health and lifecycle owing to

large number of media channels and online/social discussion forums. While importance to

hygiene and cleanliness has been given prime importance in all the discussions, there has

been increasing words of caution about styling products that expose hair to harmful effects

of chemicals with regular use. With natural ingredients, this issue is addressed and users

are assured of safety of the product.

Packaging has always been an important driver to drive sales. Customers pick up a new

product on the shop if they find the packaging of the product attractive and informative.

Packaging is the first interaction of customer with the product. Also, for the youth

population, flashy packaging may attract attention and drive Sales as they are relatively

less concerned about product attributes and are more likely to be impulse buyers for such

products.

5) What role does packaging play in product perception

H1: The quantum of product information on packaging is proportional to sales

volume

H2: Increase in the amount spent on packaging per unit increases sales volume

RP - To determine the effect of promotional campaigns on market penetration

level

Page 16: Strategy to Revive Marico's Set Wet sales

Hair gel is not a very high involvement product for which people do a lot background

research before buying. However, people don’t buy it blindly because they fear that a

wrong choice might damage their hair. So traditional belief is that most of the times people

go with peer suggestions or stylist’s advice hair gel to usage and not care so much about

the nitty-gritties of product features or advertisement. However, with increase in

competition in recent years, promotional efforts have a direct influence on sales volume.

Advertisement can have profound effect on the sales of a product. Companies spend

millions in advertisement programmes to catch the eyeballs of the potential customer.

Advertisement can change the customer perception for a product. Advertisements are

primarily used to convey the features a product has to offer. However advertisements are

also used to position a product in the minds of the customer. Companies time and again

have changed the advertisements for a product if they intend to change the positioning the

product. Advertisers try to get people to buy their products, by showing them the good

rather than bad of their products. And that’s why advertisement campaigns are such an

important and high involvement exercise for any product.

1. In spite of being the market leader, why has sales growth for Set Wet Gel declined

in the past years

H1: Consumers don’t buy Set wet because it attracts grime and dust

H2: Consumers don’t buy Set wet because sweat causes set wet to leak onto the

face

H3: Consumers don’t buy Set wet because it doesn’t look natural to observer

H4: Consumers don’t buy Set wet because hair gels are considered old fashioned

H5: Hair Gels causes damage

A tagline is a short text which serves to clarify a thought for or is designed with a form of,

dramatic effect. Companies use tagline to position a product in a particular manner. It is

used as an effective tool to appeal to the customers and connect with them. The idea behind

the concept is to create a memorable dramatic phrase that will sum up the tone and premise

of product or reinforce and strengthen the audience's memory.

2. What effect does the product tag line have on different demographics

H1: Change in taglines affects usage in Pre-teens and teens more than office-goers

H2: Change in taglines affects usage in urban areas to a greater extent as

compared to rural areas

Page 17: Strategy to Revive Marico's Set Wet sales

There are gamut of ways in which companies try to reach out to target customers but all

means of communication are not applicable for every product. This is because the target

group for each product is different and therefore the chosen communication media should

be applicable to that target group. For example if the target group is kids then social media

can be preferred or if target group is professionals then print media may be the best way.

It is important to understand that there is no one-size-fits-all policy while choosing the

communication media. Company should clearly identify the target group and then select

either one or combination of two or more communication mediums for its product.

3. Which is the most effective medium of communication among the target

consumers

H1: All consumers can be reached through TV commercials

H2: All consumers can be reached through print media

H3: Radio advertisements increase sales

H4: Social media campaigning increases sales

Celebrities have been used by every company in product category to increase Sales. While

industries like Banking, Insurance etc. requires celebrities who adds trust to the product

with their reputation, convenience products like hair gel requires celebrities who are style

icons and youth ambassadors. In addition adding a “cool” image to the product, they help

in increasing brand loyalty. Also, they help in increasing customer base by attracting the

fan base of the said celebrity. With more efforts towards promotion due to high

competition, choosing the right celebrities for advertisements can serve as a leverage.

4. Use of celebrity for endorsement increases sales

H1: Use of celebrity in advertisements increases trust in the brand

H2: Use of celebrity increase target segment

6 DATA ANALYSIS PLAN

S.N Research Question

Hypothesis Q. No.

1 What are the main reasons for

using hair gels?

H1: hair gel is preferred because it

gives a shiny look to hair

H2: People use hair gel because of its

strength of hold

Page 18: Strategy to Revive Marico's Set Wet sales

H3 Stylish hair is an important

component of social acceptance at

gatherings and events

Q7

H4: Stylish hair increases appeal to the

opposite gender

H5: Hair gel helps maintain unruly hair

H6: Hair gel nourishes hair

2 How does usage frequency i.e.

rare or frequent affect brand

loyalty

H1: For frequent usage, advertisement

about sales promotion is more

important than brand loyalty

Q14

Q15

H2: For frequent usage, price is more

important as compared to brand loyalty

H3: For rare usage, advertisement

about sales promotion is more

important than brand loyalty

H4: For rare usage, price is more

important than brand loyalty

3 How has entry of competitors

with alternatives to hair gel

affected sales

H1: There are better competitor’s

substitutes like hair wax

Q12

Q13

H2: Set wet quality is lower than

competitor’s product

H3: Competitor’s product is priced at a

lower per unit rate

H4: Competitor’s product occupies

better shelf space and is more readily

visible in stores

4 To what extent does the presence

of natural ingredients affect sales

H1: Presence of natural ingredients

takes precedence over brand loyalty

Page 19: Strategy to Revive Marico's Set Wet sales

H2: Products with natural ingredients

sell more in urban areas as compared to

rural areas

Q7

H3: Presence of natural ingredients

increases consumer rating for a product

5 What role does packaging play in

product perception?

H1: The quantum of product

information on packaging is

proportional to sales volume

Q8

Q9 H2: Increase in the amount spent on

packaging per unit increases sales

volume

6 In spite of being the market

leader why has the growth for set

wet gels reduced in the past years

H1: Consumers don’t buy Set wet

because it attracts grime and dust

Q19

Q20

H2: Consumers don’t buy Set wet

because sweat causes set wet to leak

onto the face

H3: Consumers don’t buy Set wet

because it doesn’t look natural to

observer

H4: Consumers don’t buy Set wet

because hair gels are considered old

fashioned

H5: Hair gel causes damage (i.e. hair

fall and early greying)

7 What effect does tagline have on

different demographics?

H1: Change in taglines affects usage in

Pre-teens and teens more than office-

Goers

Q16

H2: Change in taglines affects usage in

urban areas to a greater extent as

compared to rural areas

Page 20: Strategy to Revive Marico's Set Wet sales

8 What is the most effective

medium of communication

among target audience?

H1: TV commercials are the most

significant medium of communication

Q21

Q22

H2: All consumers can be reached

through print media

H3: Radio advertisements increase

sales

H4: Social media campaigning

increases sales

9 Use of celebrities for

endorsements increases sales?

H1: Use of celebrity in advertisements

sales increases trust in the brand

Q15

Q17

Q18 H2: Use of celebrity increases target

segment

7 HYPOTHESIS ANALYSIS ACCORDING TO QUESTIONNAIRE

7.1.1 For hair gel users

Research question: What are the main reasons for using hair gel?

Hypothesis:

H1: hair gel is preferred because it gives a shiny look to hair

H2: People use hair gel because of its strength of hold

H3 Stylish hair is an important component of social acceptance

H4: Stylish hair increases appeal to the opposite gender

H5: Hair gel helps maintain unruly hair

H6: Hair gel nourishes hair

Response Distribution

Page 21: Strategy to Revive Marico's Set Wet sales
Page 22: Strategy to Revive Marico's Set Wet sales

Serial

No

Assumption

Tested

Validity Proved by

1

Residuals (errors)

of the regression

line are normally

distributed Valid

2

No or little

multicollinearity

of residuals Valid

d = 2.466 (i.e. 1.5 < d < 2.5)

3

Mean of residuals

(errors) is zero

Valid

Mean of residuals as per Residual Statistics is

zero

4

Homoscedasticity

of variances

along the best fit

line

Valid

For Multi Linear Regression,

H0: R2 = 0

H1: R2 ≠ 0

Page 23: Strategy to Revive Marico's Set Wet sales

It is assumed that α = 0.05. As p = 0.000 as per ANOVA table, this leads to rejection

of Null Hypothesis which means that at least one of the factors affects the outcome.

Hence, MLR is a valid test for this Research Question.

Analysis

Assumption: α = 0.05

H0: β = 0

H1: β ≠

Therefore, “Managing unruly hair” is observed to have the highest effect on the

reasons for using hair gel while “shine” is observed to have the lowest effect.

Variance Inflation Factor (VIF) <10 for all factors. Therefore, no collinearity is

observed between input variables.

Regression Equation

For y = α + β1x1 + β2x2 + ….. + βnxn

α, the constant has a significance of 0.205, which is >0.05 and therefore this

constant is not significant (null hypothesis is not rejected).

For the current research question of “Reasons for using Hair Gel”, the equation is

Page 24: Strategy to Revive Marico's Set Wet sales

Y = 0.279x1 + 0.232x2 + 0.237x3

Where y = Degree of likeness for using Hair Gel

x1 = Managing unruly hair

x2 = Shine

x3 = Appeal to the opposite gender

Research Question: What role does packaging play in Product perception?

Hypothesis:

H1: Presence of natural ingredients increases Consumer rating for a product

H2: The quantum of product information on packaging is proportional to sales

volume

H3: Increase in the amount spent on packaging per unit increases sales volume

Response Distribution (Aesthetics)

Analysis

Assumption: α = 0.05

H0: µ ≤ 3

H1: µ > 3

(Where µ = mean of user preference for aesthetics on a scale of 1-5, 1 being the

least and 5 being the highest preference)

As significance is p/2 = 0, we reject the null hypothesis. Hence µ > 3.

0.00 1.96

27.45

50.98

19.61

PACKAGING EFFECT ON AESTHETICS

1 2 3 4 5

Page 25: Strategy to Revive Marico's Set Wet sales

Therefore, aesthetics of packaging affects decision to buy hair gel.

Response Distribution (Information on packaging)

Analysis

Assumption: α = 0.05

H0: µ ≥ 3

H1: µ < 3

(Where µ = mean of user disliking for packaging containing long sentences on a

scale of 1-5, 1 being the least and 5 being the highest level of disliking)

As significance is p/2 = 0, we reject the null hypothesis. Hence µ < 3.

Therefore, long sentences in packaging does not bother users much and is not an important

deciding factor while buying hair gel.

Research Question: To what extent does the presence of natural ingredients affect

Sales?

Hypothesis:

H1: Presence of natural ingredients takes precedence over brand loyalty

H2: Products with natural ingredients sell more in urban areas as compared to rural areas

H3: Presence of natural ingredients, in a product by a trusted brand, frequency of usage

41.18

41.18

17.65

0.00 0.00

LONG SENTENCES ARE CUMBERSOME

1 2 3 4 5

Page 26: Strategy to Revive Marico's Set Wet sales

Independent Samples t test was used to determine if presence of natural ingredients

increases sales in urban areas to a greater extent as compared to semi urban areas. Here,

Group 1 refers to Semi-Urban and Group 2 refers to urban areas.

o By Levene’s test of equality for Variances,

H0: σ1 = σ2

H1: σ1 ≠ σ2

Significance for this is 0.135 > 0.05 therefore Null Hypothesis cannot be

rejected and hence the variances are equal.

o Following this, t test has the following hypothesis

H0: µ1 = µ2

H1: µ1 ≠ µ2

(Where µ1, µ2 are means of usage data from urban and semi-urban areas

respectively)

Significance is 0.000 < 0.05 therefore Null hypothesis is rejected and means

that natural ingredients affect sales in urban and semi urban areas

differently. Looking at the means, it can be seen that natural ingredients

increase sales in urban area to a greater extent than Semi-Urban areas.

Paired samples test was undertaken to see if natural ingredients play a greater role than

brand loyalty in getting new customers.

H0: µ1-µ2 ≥ 0

H1: µ1 -µ2<0

(Where µ1, µ2 are mean of preference data for natural ingredients and brand loyalty

respectively)

Page 27: Strategy to Revive Marico's Set Wet sales

Significance is 0.254 (0.508/2) > 0.05 therefore we fail to reject null hypotheses

and natural ingredients do indeed play a greater role than brand loyalty.

7.1.2 For NON SET WET hair gel users

Research Question: How has entry of competitors with alternatives to

hair gel affected sales?

Hypothesis:

H1: There are better competitor’s substitutes like hair wax

H2: Set wet quality is lower than competitor’s product

H3: Competitor’s product is priced at a lower per unit rate

H4: Competitor’s product occupies better shelf space and is more readily visible in

stores

Page 28: Strategy to Revive Marico's Set Wet sales

Serial

No

Assumption

Tested

Validity Proved by

1

Residuals

(errors) of the

regression

line are

normally

distributed

Valid

2

No or little

multicollinear

ity of

residuals

Valid

d = 1.911 (i.e. 1.5 < d < 2.5)

Page 29: Strategy to Revive Marico's Set Wet sales

3

Mean of

residuals

(errors) is zero Valid

Mean of residuals as per Residual Statistics is

zero

4

Homoscedasti

city of

variances

along the best

fit line Valid

For Multi Linear Regression,

H0: R2 = 0

H1: R2 ≠ 0

It is assumed that α = 0.05. As p/2 = 0.000 as per ANOVA table, this leads to

rejection of Null Hypothesis which means that at least one of the factors affects the

outcome. Hence, MLR is a valid test for this Research Question.

Analysis

Assumption: α = 0.05

H0: β = 0

H1: β ≠ 0

Page 30: Strategy to Revive Marico's Set Wet sales

Therefore, “Low Quality” is observed to have the highest effect on the reasons for

not using Set Wet while “preference for hair wax” is observed to be the second

highest effect.

Variance Inflation Factor (VIF) <10 for all factors. Therefore, no collinearity is

observed between input variables.

Regression Equation

For y = α + β1x1 + β2x2 + ….. + βnxn

α, the constant has a significance of 0.410, which is >0.05 and therefore this

constant is not significant (null hypothesis is not rejected).

For the current research question of “Reasons for using Hair Gel other than Set

Wet”, the equation is

Y = 0.631x1 + 0.432x2

Where y = Degree of dislikeness for using Set Wet Hair Gel

x1 = Low Quality

x2 = Preference for hairwax

-------------------------------------------------------------------------------------------------------

7.1.3 For SET WET hair gel users

Research Question: How has entry of competitors with alternatives to

hair gel affected sales?

Page 31: Strategy to Revive Marico's Set Wet sales

Serial

No

Assumption

Tested

Validity Proved by

9.80

23.53

29.41

23.53

13.73

CELEBRITY ENDORSMENTS

1 2 3 4 5

Page 32: Strategy to Revive Marico's Set Wet sales

1

Residuals (errors)

of the regression

line are normally

distributed

Valid

2

No or little

multicollinearity

of residuals Valid

d = 2.356 (i.e. 1.5 < d < 2.5)

3

Mean of residuals

(errors) is zero

Valid

Mean of residuals as per Residual Statistics is zero

4

Homoscedasticity

of variances

along the best fit

line

Valid

Scatterplot

Page 33: Strategy to Revive Marico's Set Wet sales

For Multi Linear Regression,

H0: R2 = 0

H1: R2 ≠ 0

It is assumed that α = 0.05. As p = .000 as per ANOVA table, this leads to rejection

of Null Hypothesis which means that at least one of the factors affects the outcome.

Hence, MLR is valid test for this Research Question.

Analysis

Assumption: α = 0.05

H0: β = 0

H1: β ≠ 0

Variance Inflation Factor = <10 for all the factors. Therefore, no collinearity is

observed between input variables.

Therefore, “Advertisement” is observed to have the highest effect on the outcome.

“Low Price” is observed to have the second highest effect on the outcome.

Page 34: Strategy to Revive Marico's Set Wet sales

Regression Equation

For y = α + β1x1 + β2x2 + ….. + βnxn

For the current research question of “Reason for using set wet”, the equation is

Y = 0.529X1 + 0.421x2

Where y = Degree of likeness of Set Wet gel

x1 = Advertisements

x2 = Low price

-------------------------------------------------------------------------------------------------------

Research Question: What effect does tagline have on different demographics?

Hypothesis:

H1: Change in taglines affect usage in pre-teens and teens more than office goers

H2: Change in taglines affect usage in urban areas to a greater extent than in rural areas

Independent Samples t test was used to determine if the effect of the Set Wet Hair

Gel tagline ‘Sada Sexy Raho’ was different between urban and semi-urban areas.

(The cities have been classified using The Census of India 2011 – Urban

Agglomeration and Cities) Group 1 is urban and Group 2 is Semi-Urban areas.

o By Levene’s test of equality for Variances,

H0: σ1 = σ2

H1: σ1 ≠ σ2

Significance for this is 0.488 > 0.05 therefore Null Hypothesis cannot be

rejected and hence the variances are equal.

o Following this, t test has the following hypothesis

H0: µ1 = µ2

H1: µ1 ≠ µ2

Page 35: Strategy to Revive Marico's Set Wet sales

(Where µ1, µ2= mean value of effect of tagline in urban and semi-urban

area respectively)

Significance is 0.026 < 0.05 therefore Null hypothesis is rejected and means

that effect of tagline in urban and semi-urban areas differs. Looking at the

means, it is evident that taglines affect Semi-Urban areas more.

To check effect of change in tagline on Teens (Between 13 and 18) and Pre-Teens

(Less than 12) as compared to office goers, ANOVA test was undertaken. Here,

Group 1 is Pre-Teens, Group 2 is Teens and Group 3 is Office Goers.

H0: µ1 = µ2 = µ3

H1: At least one mean is different

(Where µ1, µ2, µ3= mean value of effect of tagline for pre-teens, teens and office

goers respectively)

o Significance is 0.001 < 0.05 therefore null hypotheses is rejected and at

least one of the means is different.

o For Post Hoc tests,

H0: µ1 = µ2

H1: µ1 ≠ µ2

(Where µ1, µ2= mean value of effect of tagline on pre-teens and teens

respectively)

Page 36: Strategy to Revive Marico's Set Wet sales

It is seen that we fail to reject Null Hypothesis for Group 1 and 2 therefore

the effect of tagline is the same on Pre-Teens and Teens but they both have

different preferences when compared to Office Goers.

-------------------------------------------------------------------------------------------------------

Research Questions: How does celebrity endorsements affect Sales?

Hypothesis:

H1: Use of celebrity in advertisements sales increases trust in the brand

H2: Use of celebrity increases target segment

For testing if the use of Celebrity Endorsements increases the target group, one sample t

test was used. 1 refers to very low influence of celebrity in endorsements while 5 refers to

very high influence.

H0: µ ≤ 3

H1: µ > 3

(Where µ= mean value of preference for celebrity endorsement on a scale of 1-5, I

being the least and 5 being the highest value of preference)

Significance is 0.000 (p/2) < 0.05 therefore Null Hypothesis is rejected and use of

celebrity in endorsements does positively influence buying behavior.

Correlation test was used to find if correlation existed between preference for celebrity

in advertisements and brand loyalty.

H0: µ1 - µ2 ≤ 0

H1: µ1 - µ2 > 0

Page 37: Strategy to Revive Marico's Set Wet sales

(Where µ1 = Mean of preference for celebrity in endorsements and µ2= Mean of

brand loyalty, on a scale of 1 to 5 where 1 being very low preference and 5 being

very high preference)

Pearson Correlation of 0.158 is obtained. A value between 0.1 and 0.3 indicates very little

correlation and hence it can be inferred that presence of celebrities in endorsements does

not affect brand value to a large extent.

Research Question: How does usage frequency affect brand loyalty?

Hypothesis:

H1: For frequent usage, advertisement about sales promotion is more important than brand

loyalty

H2: For frequent usage, price is more important as compared to brand loyalty

H3: For rare usage, advertisement about sales promotion is more important than brand loyalty

H4: For rare usage, price is more important than brand loyalty

Page 38: Strategy to Revive Marico's Set Wet sales

High Frequency Users

o Paired samples test was undertaken to see if advertisements played a greater

role in usage than brand loyalty

H0: µ1 - µ2 ≤ 0

H1: µ1 - µ2 > 0

(Where µ1, µ2 = mean of importance of advertisements and brand loyalty

respectively)

0

5

10

15

20

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

HIGH FREQUENCY VS LOW FREQUENCYBRAND LOYALTY AND ADVERTISMENTS

Brand Loyalty LF Advertisment LF

Brand Loyalty HF Advertisments HF

0

1

2

3

4

5

6

7

8

9

10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

HIGH FREQUENCY VS LOW FREQUENCYPRICE

Advertisments LF Advertisments HF

Page 39: Strategy to Revive Marico's Set Wet sales

Significance is 0.007(0.014/2) < 0.05 therefore we reject null hypotheses and

advertisements do play a greater role in affecting usage for high frequency users than

brand loyalty.

o Paired samples test was undertaken to see if price played a greater role in

usage than brand loyalty

H0: µ1 - µ2 ≤ 0

H1: µ1 - µ2 > 0

(Where µ1, µ2 = mean of importance of price and brand loyalty respectively)

Significance is 0.000 (p/2) < 0.05 therefore we reject null hypotheses and price does play

a greater role in affecting usage for high frequency users than brand loyalty.

Low Frequency Users

o Paired samples test was undertaken to see if advertisements played a greater

role in usage than brand loyalty

H0: µ1 - µ2 ≥ 0

H1: µ1 - µ2 < 0

(Where µ1, µ2 = mean of importance of advertisements and brand loyalty

respectively)

Significance is 0.067 (0.134/2) > 0.05 therefore we fail to reject null

hypotheses and advertisements play a greater role in affecting usage for

high frequency users than brand loyalty.

Page 40: Strategy to Revive Marico's Set Wet sales

o Paired samples test was undertaken to see if price played a greater role in

usage than brand loyalty

H0: µ1 - µ2 ≥ 0

H1: µ1 - µ2 < 0

(Where µ1, µ2 = mean of importance of price and brand loyalty respectively)

Significance is 0.0035 (0.007/2) < 0.05 therefore we reject null hypotheses and price

does not play a greater role in affecting usage for high frequency users than brand loyalty.

7.1.4 For non-users of hair gel

Research Question: In site of being the market leader why has the growth for set wet

gels reduced in the past years

Hypothesis:

H1: Consumers don’t buy set wet because it attracts grime and dust

H2: Consumers don’t buy Set wet because sweat causes set wet to leak into the face

H3: Consumer don’t buy Set wet because it doesn’t look natural to observer

H4: Consumers don’t buy Set wet because hair gels are considered old fashioned

H5: Hair Gels causes damage ( i.e. hair fall and early graying)

Page 41: Strategy to Revive Marico's Set Wet sales

Serial

No

Assumption

Tested

Validity Proved by

1

Residuals (errors)

of the regression

line are normally

distributed

Valid

7.84

19.61

13.73

19.61

13.73

CAUSES HAIR DAMAGE

1 2 3 4 5

Page 42: Strategy to Revive Marico's Set Wet sales

2

No or little

multicollinearity

of residuals Valid

d = 2.356 (i.e. 1.5 < d < 2.5)

3

Mean of residuals

(errors) is zero

Valid

Mean of residuals as per Residual Statistics is zero

4

Homoscedasticity

of variances

along the best fit

line

Valid

Scatterplot

For Multi Linear Regression,

H0: R2 = 0

H1: R2 ≠ 0

It is assumed that α = 0.05. As p = .000 as per ANOVA table, this leads to rejection

of Null Hypothesis which means that at least one of the factors affects the outcome.

Hence, MLR is valid test for this Research Question.

Page 43: Strategy to Revive Marico's Set Wet sales

Analysis

Assumption: α = 0.05

H0: β = 0

H1: β ≠ 0

Variance Inflation Factor = <10 for all the factors. Therefore, no collinearity is

observed between input variables.

Therefore, “Grime and dust” is observed to have the highest effect on the outcome.

“Damage” is observed to have the lowest effect on the outcome.

Regression Equation

For y = α + β1x1 + β2x2 + ….. + βnxn

For the current research question of “Reason for not liking Hair gel”, the equation

is

Y = 0.412X1 + 0.324x2 + 0.327x3

Where y = Degree of dislikeness for not using hair gel

x1 = Grime and Dust

x2 = Not Natural looks

Page 44: Strategy to Revive Marico's Set Wet sales

x3 = Damage

Promotion strategy for the whole population

Research Question: What is the most effective medium of communication among

target audience?

Hypothesis:

H1: TV commercials are the most significant medium of communication

H2: All consumers can be reached through print media

H3: Radio advertisements increase sales

H4: Socal media campaigning increases sales

For the question of preference for mode of media, one Sample T test was used. The

following results were obtained (α=0.05). Here, µ is the mean of all the responses for that

particular media type with 1 being very low preference and 5 being very high preference.

Page 45: Strategy to Revive Marico's Set Wet sales

o For Print Media consisting of both newspaper and magazine,

H0: µ ≤ 3

H1: µ > 3

(Where µ= mean value of preference for print media)

o For Radio,

H0: µ ≥ 3

H1: µ < 3

(Where µ= mean value of preference for radio)

o For Television,

H0: µ ≤ 3

H1: µ > 3

(Where µ= mean value of preference for Television)

Page 46: Strategy to Revive Marico's Set Wet sales

o For Social Media,

H0: µ ≤ 3

H1: µ > 3

(Where µ= mean value of preference for Social Media)

Mode of Media Significance

Value

Result

Print Media –

Newspaper + Magazine 0.000

Rejecting Null Hypothesis

therefore there is significant

preference of print media for

advertisements

Radio

0.000

Rejecting Null Hypothesis

therefore not much preference

for radio advertisements

Television

0.000

Rejecting Null Hypothesis

therefore there is significant

preference of television for

advertisements

Page 47: Strategy to Revive Marico's Set Wet sales

Social Media

0.000

Rejecting Null Hypothesis

therefore there is significant

preference of television for

advertisements

o Within Television and Print Media, correlation test was used.

H0: µ1 - µ2 ≤ 0

H1: µ1 - µ2 > 0

(Where µ1, µ2= mean value of preference for television and print media

respectively, on a scale of 1 to 5 where 1 being very low preference and 5

being very high preference)

Significance is 0.0015 (0.003/2) which is lesser than .05 and hence Null Hypothesis is

rejected therefore preference for advertisement on Television is higher than advertisements

in Print Media.

8 CONCLUSION

Our study initiated with an understanding of the various parameters affecting buying

behavior for different demographics in the Hair Gel user segment. We then attempted to

understand ranking of these parameters and sought to establish the perception as per

customer usage. Effect of peer influence, promotional campaigns and presence of natural

ingredients on both perceived quality and sales was studied. At all times, all primary and

secondary sources of information were evaluated comparatively. The current change in

promotion of Set Wet gel and marketing mix was evaluated from both a theoretical and

consumer perspective. From this, all viewpoints that emerged were noted and have been

Page 48: Strategy to Revive Marico's Set Wet sales

used to suggest changes in the marketing and promotional strategy. The Limitation of such

a study is that the quantitative survey focusses on perceived product quality and effect of

promotional campaigns to a greater extent as these factors were found to have the highest

correlation. The insights obtained from our research show that:

Consumers like to use hair gel for primarily three reasons, managing unruly hair,

the shine it provides and its appeal to the opposite gender. Managing unruly hair

has the highest weightage in this decision, while shine has the lowest.

The presence of natural ingredients increases sales, more so in urban areas than in

semi-urban areas

The presence of natural ingredients plays a greater role in the consumers buying

decision as compared to brand loyalty

The aesthetics of packaging is a significant influence on a consumers decision to

buy hair gel

Longer sentences on packaging (i.e. more than 10 words) does not bother

consumers, and is not a significant factor in their decision to buy hair gel

The biggest reason that consumers who do not prefer to use Set Wet is because

they perceive it to be a low quality product. The next biggest reason being that they

prefer hair wax over gel. No other significant factors were detected.

The biggest reasons that consumers prefer to buy set wet is its advertising. The

second biggest reason being its low price. No other significant factors were

detected.

For consumers which use hair gel frequently i.e. more than 7 times a week, price

and advertisements play a greater role in their buying decision than brand loyalty.

For consumers which use hair gel occasionally i.e. less than or equal to 7 times a

week, advertisement plays a greater role in their buying decision than brand loyalty,

while price does not.

For consumers who do not use hair gel at all, the fact that it attracts grime and dust,

does not look natural and that it causes hair damage are significant factors. Here,

grime and dust is observed to have the highest effect on this decision while hair

damage has the lowest effect.

People prefer newspapers, magazines, television and social media as their preferred

form of media. The preference for television is higher than for newspapers or

magazines.

Page 49: Strategy to Revive Marico's Set Wet sales

The new tag line for promotion of Set Wet, “Sada Sexy Raho”, affects consumers

in semi-urban areas more than in urban areas.

The tag line has an equal influence on pre-teens (younger than 13) and teens

(between 13 and 19), but different for young adults (older than 19).

The use of celebrity endorsements has a positive influence on a consumer’s buying

behaviour, when it comes to hair gel. But there is no evidence that it increases the

trust in a brand.

9 ANNEXURE A (OBJECTIVE OF THE IN-DEPTH INTERVIEW)

Reasons for using (not using) hair gels

Stigmas associated with hair gel usage

Perceived quality of Set Wet gel among all hair gel

brands Shortcomings in ingredients in Set Wet gel

Effect of natural ingredients in perceived quality and

sales Effect of medium of communication on sales

Effect of social media campaigns on target consumers

1. Screening Question on gender

2. Awareness of: information, age, profession, economic strata

3. Behaviour with regards to hair gel to hair, gel brand loyalty, frequency of

usage, reasons for usage, reason for non usage

4. Product perception Harmful effects, presence if natural ingredients, ranking of

various qualities

5. Effect of promotion, medium of promotion, social media campaign

Page 50: Strategy to Revive Marico's Set Wet sales

9 ANNEXURE B (SAMPLE QUESTIONNAIRE)

1) Please fill up the following details.

Age: ________________ Profession- Home Town: ________________ a. School student

b. Undergraduate Student c. PG Student

d. Working professional. Please specify e. Others, please specify: __________________

2) Which of the following do you buy? Please tick all the applicable items

Shampoo Facewash Deodorant Conditioner Face Cream Perfume Hair Oil Moisturizer Sunscreen Hair Gel Soap Aftershave Serums Shower Gel Others, please specify: _________

3) Do you use Hair Gel?

a. Yes b. No

-----------------------(Use hair Gel) ----------------------------

4) At what age did you first start using Hair Gel? a. Below 15 b. 15-20 c. 20-22 d. 22-25 e. Above 25

5) How you were first introduced to Hair Gel? a. Advertisement b. Peers c. Impulse buy at the store/ Supermarket d. Others, Please Specify: __________________

6) If you do use hair gel, please indicate (tick) below your preferred brand(s).

a. Brylcream d. Set Wet g. Park Avenue

b. L’Oreal e. Himalaya h. Garnier

c. Parachute f. Gatsby i. Other, please specify: _____________

Page 51: Strategy to Revive Marico's Set Wet sales

7) If you answered yes to the above question, please rate the following factors for your reasons

of usage

a. Hair styling for special occasions

Very Low Low Neutral High Very High

b. Managing unruly hair

Very Low Low Neutral High Very High

c. Hair Nourishment

Very Low Low Neutral High Very High

d. Strength of Hold

Very Low Low Neutral High Very High

e. Presence of natural ingredients

Very Low Low Neutral High Very High

f. Shine

Very Low Low Neutral High Very High

g. Appeal to opposite gender

Very Low Low Neutral High Very High

h. Other, please specify: __________________

8) Please rate how strongly does the aesthetics of packaging affects your decision to

buy hair gel?

No effect Little Effect Neutral Strong Very Strong

9) “I find reading packaging cumbersome and tend to avoid reading it, especially if it is longer than

ten words” ” Please indicate how strongly you agree with the statement above –

Strongly Disagree Disagree Can’t say Agree Strongly Agree

10) Please rate how much you prefer using Hair Gel

Very Low Low Neutral High Very High

11) In the last 6 months have you used a hair gel other than Set wet? a. Yes b. No

Page 52: Strategy to Revive Marico's Set Wet sales

--------- IF ANSWER TO ABOVE QUESTION IS YES (Use hair gel but not set wet) -------------

12) If yes, then Rate the reasons for usage of other hair gel a. Set wet quality is lower than the brand you are using

Strongly Disagree Disagree Neutral Agree Strongly Agree

b. Set wet is more expensive than the brand you are using Strongly Disagree Disagree Neutral Agree Strongly Agree

c. You prefer hair wax over hair gel

Strongly Disagree Disagree Neutral Agree Strongly Agree

d. You find other hair gels more often in retail stores than set wet

Strongly Disagree Disagree Neutral Agree Strongly Agree

13) Please rate how much you dislike Set Wet Hair Gel

Very Low Low Neutral High Very High

--------------------------------------- (Use hair gel use set wet) --------------------------------

14) In a typical week, how frequently do you use set wet? a. 0-2 d. 8-10 b. 3-5 e. Greater than 10 c. 5-7

15) Please rate the importance of the following attributes for using set wet hair gel a.Brand Loyalty

Very Low Low Neutral High Very

High

b. Advertisement (Frequency / medium / use of celebrity endorsement)

Very Low Low Neutral High Very

High

c. Low Price

Very Low Low Neutral High Very

High

d. Other, please specify: __________________

Page 53: Strategy to Revive Marico's Set Wet sales

16) How much does Set Wet’s new tagline “Sada Sexy Raho” influence your preference for set

wet hair gel?

No effect Little Effect Neutral Strong Very Strong

17) Does the presence of known celebrity endorsement induce you to change your preferred brand

while purchasing the hair gel?

Very Low Low Neutral High Very High

18) Please rate the degree of your preference for Set Wet Hair Gel

Very Low Low Neutral High Very High

----------------------------------- (Don’t Use hair gel) -------------------------------------

19) If you do not use hair gel, please rate the following factors as per your reasons. a) It attracts grime and dust

Strongly

Disagree Disagree Neutral Agree Strongly

Agree

b) Sweat causes set wet to leak onto the face

Strongly

Disagree Disagree Neutral Agree Strongly

Agree

c) It doesn’t look natural to an observer

Strongly

Disagree Disagree Neutral Agree Strongly

Agree

d) Hair gels are considered old fashioned

Strongly

Disagree Disagree Neutral Agree Strongly

Agree

e) Hair gels cause hair damage by way of hair fall and early greying

Strongly

Disagree Disagree Neutral Agree Strongly

Agree

f) Others, please specify: __________________

Page 54: Strategy to Revive Marico's Set Wet sales

20) Please rate the degree of your dislikeness for not using Hair Gel

Very Low Low Neutral High Very High

21) Please indicate your preference for the following mode of media. Television

Very Low Low Neutral High Very High

Radio

Very Low Low Neutral High Very High

Print Media

Very Low Low Neutral High Very High

22) “I usually buy products after having seen advertisements on social media platforms”. Please indicate below how strongly you agree with the statement above.

Strongly Disagree Disagree Can’t say Agree Strongly Agree


Recommended