Executive Summary

With the growing disposable income, the household consumption of liquid hand wash
is increasing with the industry showing an average growth of around 15%. The
dominant players in the industry are Dettol, Lifebuoy and Santoor with Dettol being
the market leader commanding an impressive market share of 54% followed by
Lifebuoy (32%). Major players are focusing on health concerns, innovativeness of the
product, price and packaging.
In order to understand the consumer purchase behaviour of the Indian market, we
conducted a primary research through a survey (offline and online). The major cities
covered in our online survey were Bangalore, Chennai, Kozhikode, Delhi, Mumbai and
Hyderabad. We also conducted face-to-face interviews in malls and supermarkets in
Kozhikode city. Some of the insights that we were able to gain from the survey were:
Consumers consider Germ killing ability, Fragrance and moisturizing effect to be
key factors while using a Liquid Hand-Wash;
Dettol advertisement has high impact on brand loyalty as it focuses on Mothers
and their concerns. Their campaign #MaaMaaneDettol seems to leave lasting
impact on consumers;
Transparent bottles have higher purchasing impact in consumers;
Free Refill is the best promotional offer which consumers look for compared to
free soap and discounts.
Small SKU availability drives loyalty as consumers have more options for
normal/traveling purpose
In order to understand the how much these factors drive purchase, we conducted a
net promoter score survey and found out percentage promoters, detractors and
passive. Net promoter score helps understand which brand do consumers promote
and linear regression analysis helps us statistically prove the factors that drive them
to be promoters.
Based on the consumer behaviour insights, Savlon should adopt following strategies
to increase penetration among existing users:
Packaging- Transparent bottles; Small SKU option
Promotions - Free Refill
Advertisement Addition of concern and educational parameters.
For non-users (low socio-economic class and rural market), innovation will play
a critical role in increasing the penetration. Lack of awareness and cost which acts as
a hindrance in rural and lower social-economic classes can be resolved by innovation
in the hand wash segment. To cater to the affordability issue, one possible solution
can be to decrease the size of the bottle further, but that only pushes up the per ml
cost of the product. Smaller sized packs also add to more plastic waste being
generated and doesnt really do anything to stop people from adding water and rather
than focusing on portion control, focus on longevity of usage. This doesnt seem to be
a feasible solution. We thus propose launching the liquid hand wash is single dosage
pods/tiny capsules. These pods/capsules have the hand wash liquid encapsulated in
a film which is water soluble, derived from plant cellulose and are ready to use out of
the box and contain appropriately measured liquid to give an optimal and affordable
hand wash.
We believe that with this new innovative product ITC will be able to gain a first mover
advantage in a segment that offers its consumers something beyond the conventional
and be able to create a market for itself by being the pioneers in revolutionizing dayto-day consumption.

Industry Insights & Competitor Analysis

Herbal and natural categories

areof
onIndian
rise consumer is 27 years. 77%
Median age

Independent small grocers remain the primary channel for sales of personal care products in India
Disposable income of Indian Consumer i

Dettol

Lifebuoy

Savlon

2. Refills

185
1. Bottles 2. Refills
1. Bottles :
ml
215
185
215 ml

800/9
ml
ml
00 ml
Using Savlon
TV Ads with kids as main
Antiseptic as the
protagonist supported by
master brand to
mothers
introduce Savlon
handwash

Product
Variants

2. Refills:
1.Bottles :
185 ml
215 ml
800/900
100 ml
ml

Marketing
Campaigns

Series of TV Ads with a

single jingle focusing
on Kids & Mothers

Message
Conveyed

Seeks a behavioural
change in people and
promote the act of hand
washing

Emphasises that their

product has faster action
with high effectiveness

Association
with Social
Cause

Promotes Swacch Bharat

Campaign

Helps a child reach 5

campaign

Packaging

Bottle:
White/Transparent
Pumping system:
Colourful

Bottle: White
Pumping system:
Colourful
Add. Feature: A level
measuring slit

Bottle: White
Pumping system:
White

Product
Innovation

1. Introduced a smaller
SKU for Rs.30
2.Dettol Gold
Premium version of
hand wash

Colour changing hand

wash

Introduced caps
on refills

No message
conveyed

Consumer Preferences from Primary Research

Methodology: Online and Offline questionnaire
160 respondents across India including 20 face to face interviews conducted in
supermarkets, colleges and malls
Basis for our segmentation of the market were three demographic variables
namely Gender, Age and Income
Snowballing technique was used to collect information from the respondents

Observation: User distribution in survey showed, more than 50% consumers use Dettol hand wash which

Demographic Variables of the Respondents

Consumer Preferences and their Hand Wash Usage

 Important elements Consumers Consider when Buying a Liquid HandWash

Observation: Consumers consider Germ killing ability, Fragrance and Moisturizing effect to be

Calculation of NPS (Net promoter score) to understand Brand Loyalty

NPS (Net Promoter Score):
Linear Regression
Results
Coefficients
%Promoters
- %Detractors

Std. Error
0.56
0.23

t Stat
8.86
7.70

P-value
4.54E-15
2.72E-12

Intercept
4.95
Which
brand's
advertisement
%Promoters: >=8 on scale of 10 1.80
do you <=6
recall first?
%Detractors:
on scale of 10
Free
Refill of 10
1.36
0.37
3.67
0.00034
%Passive: 7 on scale
Discounted price
0.73
0.34
2.12
0.03561
Front
availability
of your
brand
0.12 brand 0.13
0.93
0.35545
NPS
Score
would
help
understand
loyalty. Further
analysis would help understand what
Transparent bottle
0.72
0.44
1.64
0.10316
Opaque
bottle with transparent
0.07
0.46
0.15
0.88450
Analysis
Methodology
and
Results
strip for level...
Regression Statistics
Objective: To understand what factors drive Brand Loyalty
Multiple R
0.65
Dependent variable: NPS (Net Promoter Score)
R Square
0.42
Independent variables: Type of advertisement,
Promotional offer Free
Adjusted R2
0.39
Refill/Discount/Free Soap, Front availability, Type of Packaging Opaque, Transparent,
Standard Error
1.30
Transparent Strip, SKU Size
Observations
140

Current Market Scenario

Observation:
Advertisement:
Dettolwash.
advertisement
impact
on brand
as it driven stra
there is high 1)
penetration
of liquid hand
This formshas
thehigh
existing
user
base loyalty
and analysis
d lower socio economic
urban
category
is
low,
thus
this
forms
non-existing
user
base
and
innovation in
focuses on Mothers and their concerns. Their campaign #MaamaaneDettol seems
to leave lasting impact on consumers.
2) Promotion: Free Refill has stronger beta value hence is the best promotional offer
which consumers look for.
3) Packaging: Transparent bottles have higher impact though not significant in

Strategy for Existing Hand Wash Users

Packaging
In our primary survey we asked the respondents about their preference among the
three different type of packaging available in the Indian market

Opaque Bottle

Transparent Bottle

Opaque bottle with a transparent strip

will buy a bottle if it has a transparent packaging. Therefore, Savlon should come up with transparent bottles

Promotions
As a part of our exercise to draw the competitive landscape, we scanned different
promotional schemes used by several competitors. Further, we asked the respondents
to choose the promotional scheme, which attracts them the most.
Free Refills

Discounted Rates/Super saver pack

Free Soap Bars

brand of liquid hand wash if the brand is providing a free refill offer. Savlon currently has this offer. We recom

Lack of Affective Component (Emotional Connect) in Communication

All Savlon advertisement focus on cognitive components and fail to elicit an
emotional response from the consumers. As discusses earlier, while chalking out
the competitors analysis, we have analysed the themes of different campaigns

ygienic issue and importance of hand wash in solving the issue

Focuses on its faster action, appealing to moms as kids are generally lazy and impatient when it comes to h
Savlon: Highlights only its germ killing capability. Fails in getting an emoti

used by the major competitors to target consumers. We found that:

According to a Consumer voice report, Savlon is most acceptable in following terms:
Hence, we see that:
Fragrance and
moisturising effect are
second most important
elements consumers
consider
while buying
Lather
Richness
hand wash Fragrance

According to the study,

Come up with an
Savlon is most accepted
ad campaign on
brand in fragrance and
the basis of this
smoothness
No irritation orknowledge
allergy despite consistent

Smoothness

Washing ability

In low income household and rural areas, affordability will still remain a major issue, despite people knowin

Create Awareness

Drawback of using existing liquid hand wash bottle

While buying a hand wash, customer additionally pays for
Environmental Aspects

Plastic bottles and mechanical pump are highly nonConsumers only want to use hand wash but also ends up paying for pump and bot

Wastage of liquid hand wash as people are unaware of ideal quan

When bottle is about to finish, people top it water

Decreases
Deteriorates
viscosity
Decreases
hand wash
overall
experience
Decreases
effectiveness
effectiveness
Makes
of hand
bottle
ofwash
preservatives
homing ground
added
for m

Strategy for Non-existing Hand Wash Users

We propose launching the liquid handwash is single dosage pods. These pods have
the handwash liquid encapsulated in a water soluble plant derived cellulose film which
are ready to use out of the box and contain appropriately measured liquid to give an
optimal and affordable handwash.

These pods coming in at a very low price point means no major one-time investment
is required. We presume these pods to cost around 50 paise per pod and thus bringing
down the effective investment for handwashing substantially for a rural/lower income
class of households. These pods can be packaged in the packs of 20 or 50.

These pods also solve the stated environmental issue, as the cellulose skin is easily
dissolved in water whereas the outer packaging is in the form of a candy box shown or
with flip open caps. These boxes are made of sturdy cardboard made of recycled
material, which are easily biodegradable.

We believe these pods will always give a consistent experience. As they cannot be
topped with water, and as soon as one starts to rub it in their hands with water, the
cellulose skin easily dissolves and gets washed off once the user is done washing
his/her hands, leaving the user with fresh germ free hands and a smile on their face.

References
1. Beauty & Personal Care in India, Euromonitor International, May 2016
2. Comparative Test Handwash provides protection, Consumer VOICE Report,
November 2011
3. Liquid Laundry Detergent in Water Soluble Package, Shaun P. Kennedy, P&G,
Patent No. US4973416-A