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A Term paper

On

Research paper of Sunsilk

A case study of

Customer Preference for Sunsilk Shampoo

Course Title:Research Methodology for Business

Course Code:MGT 441

University ofInformation Technology & Sciences(UITS)

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Submitted to :Nazia Nabi

Lecturer

Faculty of School of business

University of Information Technology & Sciences

Submitted By :

Rezaul Karim Chowdhury ID: 08410012

Sharmin Alam ID: 08330130Sharmin Zaman ID: 08410023

Jakia Akter Rikta ID: 08510046

Program of BBA

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Letter of Transmitted:

19 December 2010

To

Nazia NabiLecturer

Faculty

School of BusinessUniversity of Information Technology & Sciences

Subject: Submission of Term Paper on Research paper (MGT 441)

Dear Sir

In the following pages, we have presented the fall 2010 MGT 441project, which you

have authorized us to prepare and submit by 19 December 2010 as MGT 441 courserequirement.

This particular report has given us the opportunity to get hands on experience regarding

different entry modes of mobile sectors. We are tremendously thankful to you for giving

us the opportunity to learn the practical skills during the course.

We have enjoyed preparing the research paper though it was challenging to finish within

the give time. In preparing this research paper, we have tried our level best to include allthe relevant information and tried to identify different Public Listed Companies in

Malaysia

Sincerely,

Sharmin Alam Rezaul Karim Sharmin ZamanID: 08330130 ID: 08410012 ID: 08410023

Jakia Akter RiktaID: 08510046

Department of School of BusinessUniversity of Information Technology & Sciences

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Acknowledgement:

We have prepared our group project on: Research paperIt was really a nice experience for us to do the project on above topic. While preparing

the project lots of people helped us on various occasions. Among these people ourclassmates, course instructor, teaching assisrant are mentionable. In this regard, we would

like to give our special thanks to our course instructorNazia Nabi, Lecturer, School of

Business, University of Information Technology & Sciences.We are also grateful to our friend and the people who helped us a lot in doing this project.

Special thanks, gratefully and lovingly offerd to our parents, for their overall steadfast

and loyal support during the preparation of this project. Finally, our gratitude along withthanks goes to The Almighty for keeping everything on right track.

We want to talk about our limitations that we had to accept during the completion of this

project. However, we believe that we have tried our best to make this project morereliable and acceptable.

Sincerely,

Rezaul Karim Chowdhury ID: 08410012

Sharmin Alam ID: 08330130

Sharmin Zaman ID: 08410023Jakia Akter Rikta ID: 08510046

Department of School of Business

University of Information Technology & Sciences

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Executive Summary:

The Term Paper is prepared as requirement of Research Methodology for Business(MGT-441) on the topic Research paper.

There is a higher level of customer preference level in terms of Sunsilk shampoo. The

customers prefer Sunsilk shampoo as it satisfies their expected need. Secondly customers

care on price. The most significant variable that affect for the level of preference is needsatisfaction. There is a considerable negative attitude towards the package .So the

management should consider on providing a convenient package. Customers gather

information through their friends and neighbors rather than advertising or promotion

campaign. So promotion mix should be changed in to direct marketing According to theresearch done on consumer preference level consumers are happy with the brand but the

company need to increase more community based awareness and also by using blogs.

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Table of Contents:

Letter of Transmitted. i

Acknowledgement. ii

Executive Summery... ii

Table of Contents... iv

Project Review

Chapter-01

1.1. Introduction 01

1.2 Research Problem 011.3 Research Objectives .. 01

1.4 How You Will Benefit From This Report 02

Chapter-02

2.0 Literature review . 03

Chapter-03

3.0 Methodology 06

3.1 Conceptualizing frame work 063.2 Operational of variables .. 06

Chapter-04

4.0 Presentation of findings .. 08

4.1 The age ranges of the respondents . 08

4.2 No. of times that the respondents use Sunsilk shampoo per week 08

4.3 What respondents think about the price levels of Sunsilk Shampoo? 094.4. Ranking of Price, Fragrance, Package, Need satisfaction, Color,

Ingredients, past experience & Promotions of Sunsilk Shampoo.. 09

4.4 Indicated levels of agreement for the following statements 104.5 Do you like the color of currently using Sunsilk shampoo? 12

4.6 What do you expect by using a shampoo? .. 13

4.7 How satisfied are you with Sunsilk to meet your needs? 134.8 What influence you to buy Sunsilk? 14

4.9 What is the relationship between the affected reasons and

the level of preference? . 15

Chapter-05

5.1 Conclusions & Recommendations 17

References 18

Appendix 19

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Chapter 01

1.0 Introduction

1.1 Background

This report takes an overview of the research that conducted in order to identify the

preference level of customers towards Sunsilk shampoo as a brand. When it comes tobrands of shampoo in Sri Lanka, Sunsilk has been considered as Sri Lankas No: 01

shampoo brand for its capabilities to provide longer, smoother and straight silky hair.

This brand is also the strongest brand in Asia and it is said to be available over 80countries all over the world.

The brands most recent marketing campaign is the co- creation collaboration in which 7

hair experts around the world would answer to every hair issues and come up with the

best solutions for the problem.

The new range of products is as follows:

*Sunsilk dream soft and smooth*Sunsilk hair fall solution

*Sunsilk damaged hair re construction* Sunsilk Stunning Black Shine

Sunsilk believes that the secrets to beautiful hair should not be locked behind the salon

door. So they have worked with seven internationally renowned hair experts to createsalon quality products for every girl, whoever she is, wherever she lives, whatever her

hair type

This research was carried out to identify the customer preference for Sunsilk as a brand.Now Sunsilk is being positioned as Sri Lankas No: 01 Shampoo brand and this researchreport will help to identify he customer preference level and the significant reasons for

customer preference as well as the relationship between those significant factors and the

level of preference .The research findings will definitely help in designing new productmix for current and the potential customers which satisfy their needs better than ever.

1.2 Research Problem

To study customer preference level towards sunsilk shampoo.

1.3 Research Objectives

To determine the average level of preference towards Sunsilk shampoo. To identify the effective reasons for the determined level of preference. To identify the most significant variable affect for the level of preference.

To identify the relationship between the affected reasons and the level of preference.

To recognize the potential benefits that customers expect from Sunsilk shampoo

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1.4 How You Will Benefit From This Report

Since this report provides detailed consumer insights into Sunsilk shampoo it is an

invaluable resource to executives, organizations looking to make marketing decisions.

This report is an important tool to companies in the natural & organic personal care

products market, as well as those looking to enter this emerging market. It providesdetailed insights into consumer preference and expectations towards these products. The

report gives a thorough understanding of consumer preference, enabling companies &

retailers to develop marketing programmers, distribution strategies and position products.The report is useful for CEO s and senior managers to ensure that new or existing

products are correctly marketed and meet consumer expectations.

Marketing managers & executives to identify consumers needs, wants, preferences andexpectations. Such information can enable successful marketing programmers and

promotional activities to be developed that meet consumer hot spots.

It is also helpful for business development executives to understand the market andidentify opportunities for new or existing products.

Advertising & marketing agencies working on advertising and promotional campaigns

are another party who is going to be benefited through this research report. It can help

reach consumer hot spots by developing targeted and effective marketingcommunications.

It is also beneficial for research & development executives to develop and formulate new

products based on consumers needs and expectations.

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Chapter 02

2.0 Literature review:

The literature review section reveals that the used variables are abstracts from theprevailing theories and the previous related researches. Those abstracts are clearly shown

here and it supposes that this research is not biased.

Theory of Consumer Decision Making Process

This theory says that how the customers decide to purchase products. According to thistheory consumers can be divided in to three categories based on their ways of decision

making. They are Extensive problem solving, Limited problem solving, and Reutilized

response behaviour.

At the level of Extensive problem solving, consumers need a great deal of information to

establish a set of criteria to be considered when preferring for a specific brand. At thelevel of Limited problem solving, consumers have already established the basic criteria

for evaluating various brands but they search for more additional brand information todiscriminate among various brands of a product category. Reutilized response behaviour

talks that consumers have experience with the product category and a well established set

of criteria with which to evaluate the brands they are considering. They simply reviewwhat they already know.

Apart from that, this theory also describes four models of consumers with different views

.First one is economic view .Under this view consumer is considered to be a rational

person in terms of being aware of all available product alternatives and ranking those

alternatives according to the benefits and advantages and identifying the best alternative.

Next, cognitive view .it says that a consumer is a problem solver. Consumers search forgoods that fulfill their needs and enrich their lives

Preference Formation Model (PFM)

Preference is formed when the customer is bonded to your company through the

establishment of a mutual benefit. Successful companies therefore go beyond delivery of

a commodity or service; they pursue the development of a relationship with theircustomers. This bonded relationship will be more likely to survive competitive attacks

than the mere purveying of goods or services or an over reliance on aggressive pricing

models.

One of the components of the Preference Formation Process is the development of a

Preference Formation Profile. This profile breaks out the required attributes of each stageof preference formation.

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The profile further differentiates the required attributes of preference into emotive or

functional attributes and defines each as attractor, satisfier or expectant. The PFM results

in a likelihood of preference formation index (PFI) which represents the strength ofpreference for a given product/service. We have found that the preference formation

index (a standardized score ranging from one to one hundred) can range dramatically

given the market and population under consideration. When the index is weak (seventy-five or below) it means that while the elements of preference are in play there is a

reasonable amount of indifference toward the preference target.

R.L. Oliver (1994) observed that customer satisfaction results from a process of internal

evaluation that actively compares expectations before purchase of a product or servicewith perceived performance during and at the conclusion of a purchase experience. The

deployment of the theory of reasoned action as a model for preference formation explains

why such evaluation takes place. Satisfaction is a product of the alignment betweenprescribed functional and emotive performance elements and the ability of the company

to meet the performance expectations. Sustained preference is a product of meeting these

requirements over time.

What we have referred to as functional and emotive performance elements Oliver definesas evaluative elements (expectants, satisfiers and attractors) that, in turn, comprise a

single product or service evaluative experience. Sustained preference can be thought of as

a series of experience interactions that are continuously being modified as thecomponents of preference are modified over time.

According to a research done by J. Jeffrey Inman, Leigh Mcalister, Wayne D. Hoyer

(1990), the promotional price cuts and promotion signals serve as persuasive appeals in

support of choosing a particular brand; the ELM model posits a continuum of the ways

choice attitudes might change as a result of exposure to a promotion. At one end of thecontinuum, termed the central route to persuasion, the consumer diligently, actively, and

cognitively evaluates information central to the particular evaluation.Promoting a brand with both a promotion signal and a price cut will, on average, increase

the likelihood that an individual will choose that brand.

The presence of a promotion makes the selection of the promoted brand more likely.

Further, it seems that for some consumers, the promotion signal alone represents asufficiently significant change in the choice condition to induce a shift in choice behavior

toward the promoted brand. For some consumers, how- ever, a concomitant price cut is

needed.

Gregory S. Carpenter and Kent Nakamoto (1989) explain in their research that

consumer preference towards a product may differ because of the product attributes.

They say that the learning process of the customers form a preference towards particularbrand. First customers have a trial purchase and if the customers are satisfied with the

product attribute customers repurchase the product and doing so the preference is formed.

As a result, consumer preferences are likely to evolve through time, updated throughheuristic judgment processes.

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Leon Schiffman and Leslie Kanuk. (2009) expresses in his book consumer behavior the

application of the Theory of Reasoned Action Model. The model is designed to provide a

better understanding of how consumer preference is formed and, correspondingly, toprovide the means to accurately predict consumer preference behavior.

The important contribution of the reasoned action model is the realization that consumersutilize the model in all purchase experiences to a lesser or greater extent. Of equal

importance is the realization that the components used to make a preference decision arealso the ones employed by a consumer to evaluate the performance success of the product

or service purchased and the company responsible for them. Therefore, as the

components of preference change, the elements influencing satisfaction changeaccordingly.

The relationship is dynamic and fluid therefore static or predetermined satisfactionanalytic packages often miss the most important elements of preference and can create a

false sense of security on the part of companies who think that since their customer

satisfaction scores are high they must in turn have relatively loyal customers.

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Chapter 03

3.0 Methodology:

Type of the research conducted is a descriptive research, in which the major objective is

to identify and describe the level of customer preference towards Sunsilk shampoo.

The respondents who were taken in to account in terms of gathering information were

randomly selected. The respondents were selected using a non probability sampling

technique, which is known as convenience sampling technique. The respondents wereselected based on the researchers convenience. The selected sample size was 50

respondents. Well prepared questionnaire was used in terms of gathering information.

The questionnaire was distributed among the Sunsilk shampoo preferred customers.

3.1 Conceptualizing frame work:

Independent variables Dependent variable

Price Customer preference towards

Attribute shampooNeed

Knowledge

Promotion

3.2 Operational of variables

Concept Variables Indicators Measurement

Customer

preferencetowards Sunsilk

shampoo

Price High price

value for moneyaffordable price

Nominal scale

Attribute fragrance

package

color

Nominal scale

Need Smoothening of hairTo prevent hair fall

To avoid dandruff

To reconstruct

damaged hair

Nominal scale

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Knowledge Experience

information

Nominal scale

promotion Advertising Nominal scale

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Chapter 04

4 .0 Presentation of findings:

4.1 The age ranges of the respondents

According to the pie chart shown above Sunsilk is mostly preferred by the customers who

are within the age range of 20-29.Secondly10-19.It shows that Sunsilk is mostly preferred

by young girls. But Sunsilk target market spreads from10-49. However there is aconsiderable preference level from the other two age ranges too.

4.2 No. of times that the respondents use Sunsilk shampoo per week (Question 01)

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23% Customers use Sunsilk shampoo at least once a week .Most of the customers that is

40% (12) customers use shampoo twice a week. It shows that customer consumption is at

a higher level. 27% (8) customers use shampoo three times a week. There are also aconsiderable number of customers using Sunsilk three times a week. And regular

customers are 10% (3)

4.3 What respondents think about the price levels of Sunsilk Shampoo? (Question

02)

3% (1) customers think that the price of Sunslk is high. Most of the customers that are77% (23) customers think that the price of Sunslk is actually value for money. They think

so because Sunsilk satisfy their needs and it is worth for them for the price they pay.

Therefore customers never hesitate to buy Sunsilk shampoo again and again.

4.4. Ranking of Price, Fragrance, Package, Need satisfaction, Color, Ingredients, Past

experience & Promotions of Sunsilk Shampoo. (Question 03)

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Considering all the independent variables affect for the level of customer preference, the

following factors are reflected.

=> 92% of the customers prefer Sunsilk because of the need satisfaction they get fromSunsilk and it is the most significant variable affect for the level of preference.

=> Customers also have a 88% average preference level towards Sunsilk in terms ofprice and color .Customers believe that the price of Sunsilk is value for money and the

current colors of Sunsilk is also preferred by the customers.

=> Fragrance, package and ingredients also possess a considerable level of preference

among the customers.

=> There is a 48% average level effect towards the preference level from the pastexperience of the customers

=> There is a less effect that is 24% effect from promotions towards the preference level

of Sunsilk

4.4 Indicated levels of agreement for the following statements (Question 04)

A large number of customers prefer the fragrance of Sunsilk shampoo. 13% (4)

customers strongly agreed. 21 customers that are 70% of customers prefer Sunsilk

fragrance while 13% (4) customers do not rely on fragrance.

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3% (1)

customer strongly agreed and 67% customers (20) agreed with the given statement and it

shows that they prefer the current package of Sunsilk shampoo, but some considerable

numbers of customers do not care about the package. That is 27% customers (8).

Customers are intelligent and now they put a considerable amount of effort in identifyinghealthy products. It is shown in the above chart. 20% (6) customers that are strongly care

on ingredients while 53% (16) customers also check the ingredients of Shampoo. And

10% (3) customers do not rely on ingredients of Shampoo.

Average preference level of Fragrance, package and ingredients

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The overall conclusion regarding these three variables Fragrance, package andingredients shows the customers are affected by these three variables to prefer for Sunsilk

shampoo. It shows that 86%, 70%, and74% of the sample customers prefer for those

variables and it led for a higher preference level.

4.5 Do you like the color of currently using Sunsilk shampoo? (Question 05)

This statistics show that the customers prefer the color of currently using Sunsilk

shampoo brand. That is 87% customers (26). But 13% of customers need to have anothercolor instead of current color. Most of those customers had mentioned that they prefer to

have shampoo in white color.

4.6 What do you expect by using a shampoo? (Question 06)

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The above figure shows the types of needs the each customer expects from a shampoo.

Most of the customers that is 43% (13) customers expect to smoothen their hair and

secondly 30% (9) customers to have a black shiny hair. 7% (2) customers expect toprevent hair fall. 17% (5) customers expect to construct damaged hair.

4.7 How satisfied are you with Sunsilk to meet your needs? (Question 07)

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This figure further shows that customers are satisfied with Sunsilk to meet their needs. 13%

say that they are very satisfied and majorities 80% say that they are satisfied. This says that

as the customers are well satisfied and therefore they prefer to buy Sunsilk very much.

In the same manner there are 3% (1) customers that have still no satisfaction of Sunsilk.

There are also another 3% (1) customers who are neither satisfied nor unsatisfied. Itmight be due to the affecting variable for them to buy. Because some customers showed

in the research that they do not pay attention to the need satisfaction

4.8 What influence you to buy Sunsilk? (Question 08)

This figure shows that 47% (14) customers prefer to buy Sunsilk because of their self

experience and because of the recommendations given by the friends and neighbours

(30%). Promotion campaigns have a less effect on consumer preference as well asadvertising.

Figure 4.1 to 4.8 presented the analyzed data and information gathered from the

questionnaire. The next part will show how the information supports to get answers forthe following research questions and the findings of this research.

=> What is the average level of preference towards Sunsilk shampoo?=> What are the effective reasons for the determined level of preference?

=> What is the most significant variable affect for the level of preference?

=> What is the relationship between the affected reasons and the level of preference?=> What are the potential benefits that customers expect from Sunsilk shampoo?

4.9 What is the relationship between the affected reasons and the level of

preference?

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Price

When it comes to price customers preference level is high because of the affordableprice levels of Sunsilk. Customers give 29% priority in selecting shampoo. In the case of

Sunsilk most customers (78%) believe paying money is worth for Sunsilk.

Fragrance

A large number of customers prefer the fragrance of Sunsilk shampoo. 86% customers

prefer Sunsilk fragrance while12% customers do not rely on fragrance. But 96% ofcustomers do not give priority foe fragrance when buying Sunsilk.

Package

4% customers strongly agreed and 66%customers agreed that it is convenient to use thebottle of shampoo. It shows that they prefer the current package of Sunsilk shampoo, but

some considerable number of customers does not care about the package. That is

26%customers.But customers never give priority to the package in buying Sunsilk.

Need satisfaction

12% say that they are very satisfied and majority 80% says that they are satisfied. Thissays that as the customers are well satisfied and therefore they prefer to buy Sunsilk very

much. In the same manner customers give priority (53%) for need satisfaction when

buying Sunsilk.

Color

88% customers prefer the colour of currently using Sunsilk shampoo brand. But12%)of

customers need to have another colour instead of current colour. Most of those customershad mentioned that they prefer to have shampoo in white colour. As well as the package

they never consider the colour of shampoo when buying.

Ingredients

Customers are intelligent and now they put a considerable amount of effort in identifying

healthy products. 22% customers strongly care on ingredients while 52% customers alsocheck the ingredients of Shampoo.

Past experience

48% percent of customers prefer Sunsilk because of their past experience .They believeSunsilk provides enough satisfaction so they prefer to buy Sunsilk.

Promotion

Customers never rely on promotion when buying Sunsilk. So promotion has a less effect

on customer preference level towards Sunsilk.

4.10 What are the potential benefits that customers expect from Sunsilk shampoo?

Most of the customers had mentioned that they are really satisfied with Sunsilk.

Customers are satisfied with the new co creation and they believe that Sunsilk satisfy

their all hair problems.

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But majority wanted to have a Sunsilk shampoo to prevent dandruff

Chapter 05

5.1. Conclusions & Recommendations:

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The following conclusions along with the recommendations can be drawn through this

research.

=> There is a higher level of customer preference level in terms of Sunsilk shampoo.=> The customers prefer Sunsilk shampoo as it satisfies their expected need.

Secondly customers care on price.

=> The most significant variable that affect for the level of preference is needsatisfaction.

=> There is a considerable negative attitude towards the package .So the management

should consider on providing a convenient package.=> Customers gather information through their friends and neighbors rather than

advertising or promotion campaign. So promotion mix should be changed in to direct

marketing

=> According to the research done on consumer preference level consumers are happywith the brand but the company need to increase more community based awareness and

also by using blogs.

=> Innovation, implementation, cost reduction to offer best competitive price and

execution should be the strategy for continuation to be the market leader.=> The Company should introduce a new product mix for cleanness and remove

dandruff.=> It is better to find out innovative means of promotions like forming a special

association or some distinct group which will help maintain its brand equity and loyalty.

=> Company should maintain its quality with constant improvements as customersexpect the high quality.

=> Company can survive if they come up with new varieties according to market needs

and maintain a competitive pricing

Reference:

=> Business Research Methods

- Donald R. Cooper & Pamela S. Schindler

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=> Business Research Method

- William G. Zikmund

=> www.unilever.com=> www.sunsilk.us/shampoo-conditioners-more

=> www.google.com

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Appendix:

Questionnaire

Customers Name:

Occupation:

Age: 10-19 20-29 30-39 40-49

1) How many times do you use Sunsilk shampoo per week? Put a tick [ ]

Once a week

Twice a week

Three times a week

Regular

2) What do you think about the price levels of Sunsilk shampoo? Put a tick [ ]

High price

Normal price

Affordable price

3) What reasons affect you to prefer for Sunsilk shampoo? Rank1-8 according to your

priority

Price

Fragrance

Package

Need satisfaction

Color

Ingredients

Past experience

Promotions

4) Indicate your level of agreement for the following statements. Put a tick [ ]

Statement

Strongly

agree Agree

Neither

agree nor

disagree

Disagree

Strongly

disagree

I like the fragrance

of sunsilk very much

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The bottle of sunsilk

shampoo is veryconvenient to use.

I check theingredients of

sunsilk when buying

5) What is the color of your currently using Sunsilk shampoo? ----------------------

Do you like that colour? Yes No

If not, what colour do you prefer to in your shampoo? ------------------------

6) What do you expect by using a shampoo to wash your hair? Put a tick [ ]

Smoothening of hair

Black shiny hair

To prevent hair fall

To avoid dandruff

To construct damaged hair

7) How satisfied are you with Sunsilk to meet your needs that you mentioned in the

Q: (06)? Put a tick [ ].

Very satisfied

Satisfied

Neither satisfied nor unsatisfiedUnsatisfied

Very unsatisfied

8) What influence you to buy Sunsilk? Put a tick [ ]

Advertising

Friends and neighbors

Promotion campaigns

Self experience

9) Please suggest some other benefits you prefer to have from Sunsilk in the future

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

Thank you for your favorable response

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