Chapter-Ii Literature Review

CHAPTER-II
LITERATURE REVIEW
2.1 STUDIES ON MARKETING STRATEGIES AND ELEMENTS OF
MARKETING MIX
2.2 PRODUCT
2.3 PRICING
2.4 PROMOTION
2.5 DISTRIBUTION
2.6 MARKET ORIENTATION
2.7 THE MARKETING STRATEGY IN SOAP INDUSTRY

Chapter 2. Literature Review
CHAPTER - II
LITERATURE REVIEW
There has been a plethora of studies made on the areas of marketing strategies.
Most of these studies are on conceptual and functional areas of marketing strategies,
marketing mix factors, market orientation etc. Most of them are in the form of research
papers, books, published articles and reports etc. Comprehensive study with research
orientation on marketing strategies of toilet soap manufacturing industry in general and
KS & DL, in particular is highly inadequate. In this chapter an attempt is made to present
the review of available literature on the topic.
2.1 STUDIES ON MARKETING STRATEGIES AND ELEMENTS OF

MARKETING MIX
Several studies have been made on marketing strategies, elements of marketing
mix and related aspects. In what follows is brief review of such studies.
Hill and Jones have given the opinion that a typical multi business company has
three main levels of management: the corporate level, the business level and the functional
level. The reason underlying the popularity of this scheme is its ability to simplify, distil
and aggregate complex strategy phenomena into a lucid and workable form for analysis
and interpretation. Schwenk^, observes that the risk of oversimplifying general
interpretations, strategy formation can be considered as a conscious process through
which a future plan is created and then acted upon and is independent of strategy
implementation. Strategy formation is a process depending upon a pattern or stream of
decisions reflecting an identification phase, development phase and selection phase of
strategy.
Gerbing and others, opine that the strategy process adopts the assumption of
decisional rationality where a systematic process is followed in establishing a logical and
sequential pattern of decisions, from goal formulation through to strategic choice and
strategy implementation.
Fredrickson"* considered strategy formation in terms of the comprehensiveness of
the processes involved and described it as the extent to which an organization attempts to
be exhaustive or inclusive in making and integrating strategic decisions. In his research,
he observed that a positive relationship exists between comprehensiveness and firm
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performance. Miller^ has also found that high-performing firms were distinguished from
low-performing firms on the basis of systematic scanning of the environment, analysis
and strategy making rationality.
Priemând others have given the opinion that the specified significant associations
between overall firm performance and planning, scanning and analysis.
Capon and others^ found that firms employing formal planning processes
outperformed those that did not.
According to Baker , a marketing strategy is a process that can allow an
organization to concentrate its limited resources on the greatest opportunities to increase
sales and achieve a sustainable competitive advantage. A marketing strategy is centered
on the key concept of customer satisfaction as the main goal. A marketing strategy is a
written plan which combines product development, promotion, distribution, and pricing
approach, identifies the firm's marketing goals, and explains how they are achieved within
a stated timeframe. Marketing strategy determines the choice of target market segment,
positioning, marketing mix, and allocation of resources. It is most effective when it is an
integral component of firm strategy, defining how the organization will successfully
engage customers, prospects, and competitors in the market arena. As the customer
constitutes the source of a company's revenue, marketing strategy is closely linked with
sales.
Hill & Jones' opine that the marketing strategies differ depending on the unique
situation of the individual business. However there are a number of ways of categorizing
some generic strategies. A brief description of the most common categorizing schemes is
presented below: Strategies based on market dominance - In this approach, firms are
classified based on their market share or dominance of an industry. Typically there are
three types of market dominance strategies: (a) Leader, (b) Challenger and (c) Follower.
According to Porter^" the strategy based on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while strategic strength
refers to the firm's sustainable competitive advantage. The generic strategy framework
comprises of two alternatives each with two alternative scopes. These are Differentiation
and low-cost leadership each with a dimension of Focus-broad or narrow. (a)Product
differentiation, (b)Market segmentation.
Vorhies and others^ ^ opine that the strategic management and marketing literatures
indicate that the nature of marketing's contribution to business strategy formation and its
business performance implications can be influenced by a number of factors. These
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potential influences are planning effectiveness, internal exchange processes, participative

policy making, number of employees and sales turnover.
Cravens ^•^ says that the marketing strategy and implementation of the strategy are
two of the most important parts of strategic marketing planning. These two components
are usually discussed separately in marketing strategy texts. That is, marketing strategy is
formulated and then implemented. In practice, poor implementation can undermine good
strategy.
Douglas Brovralie^^ has concluded that although in the formulation of strategy, it
is possible and often advisable for imagination to be of more importance than reasoning;
analysis and diagnosis occupy the heart of the planning doctrine and hold the key to its
efficacy. And, fiirther, that where these tasks are executed systematically and
comprehensively, the insight thus provided will make a major contribution to the
formulation of successful business strategies
There are, several studies made on the theoretical and functional aspects of
product, price, promotion and distribution related strategies. Which come under the broad
purview of marketing mix. In what follows is the brief review of such studies.
2.2 PRODUCT
Chamberlin^'* argues that buyers in the market have a real freedom to differentiate,
distinguish, or have specific preferences among the competing outputs of the sellers. This
view led to the development of the differential advantage concept, one of the most
important concepts in the marketing theory.
In Chamberlin's'^ monopolistic competition theory argues that the product is
defined as a 'bundle of utilities' in which the physical offering is one element, and
becomes the basis on which a seller can differentiate his offering fiom that of his
competitors.
Alderson^^ has noted that differentiation in a product's characteristics gives a
seller control over the product to identity and configure exactly. This means, the seller
offering a product different from others actually occupies a monopoly position in the
market. However, this product differentiation can be based on product characteristics such
as patented features, trademarks, packaging etc.
Alderson^^ has given the opinion that, behind the acceptance of differentiation are
differences in taste desires, income, location of the buyers, and the uses of commodities. It
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is, however, the existence of varied wants and needs in the market place that allows
competition through product differentiation and a policy of differential advantage to be
pursued.
Smith also interpreted that, the seller pursues a policy of differential advantage
in general, and product differentiation in particular, in order to meet both competitive
activities and the various needs and wants in the market place. However, the seller can
pursue a policy of product differentiation, either by offering the same product throughout
the whole market and secure a measure of control over the product's demand by
advertising and promoting differences between his product and the product's of
competing sellers, or by viewing the market as a number of small homogeneous markets
(market segments) each having different product differences and adjusting the product and
the elements surrounding its sale according to the requirements of each market segment.
The seller, who adopts the latter method in pursuing a policy of product differentiation, is
actually pursuing a policy of market segmentation. However, a policy of differential
advantage must be dynamic in nature since the seller must continually adjust his 'total
offering' to match the ever changing competitive activities and customers' 'motivation
mixes' in the market place. Naturally, such adjustments alter the seller's cost structure and
profitability. The seller therefore must be constantly engaged in creating a 'total offering'
from all the elements under his/her control, in a way that will give differential advantage
and profitability. This 'axiom' has led to the development of the marketing mix concept.
Thompson drawn the conclusion that the two most important factors in
Marketing are a) The product and b) The ultimate consumer (people). The obvious
objective is to get these two in perfect harmony. If this situation does not exist, he then
proceeds to state that, although companies can rather easily change products, they cannot
change people, but simply influence them. The author's conclusive remark is that, the
most important controllable factor in marketing is the product.
Levitt has proposed that the product can be analyzed at five distinct levels:
Core benefit — refers to the main benefit the customer buys (for example, the
buyer of a vehicle purchases 'transportation').
Basic product - refers to the basic characteristics or attributes of the product,
without which there is no product (for example, tyres of a car).
Expected product - refers to the characteristics of the product that the customer
takes for granted (for example, tyres in a good condition).
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Augmented product - refers to the product characteristics that surpass the

customer's expectations (for example, road assistance).
Potential product - refers to those characteristics that could be added to the
product in the future and offer customer delight.
Nowadays, companies are competing at the augmented product level. In other
words, they try to differentiate their offerings by providing product characteristics that are
beyond the expected functional features.
According to Kotler product hierarchy comprises the following five categories:
Need family - the basic need underlying the existence of a product family (for example,
security).
Product family - all the product classes that can satisfy a basic need effectively (for
example, savings and income).
Product class or category - a group of products within a product family (for example,
investment products).
Product line - a group of products within a product class, which are closely related
because they are targeted to the market, through the same distribution
channels or are priced within a specific range (for example, investment
accounts).
Product type — a group of items within a product line that function in a similar manner
(for example, capital guaranteed accounts).
Brand-the name of a product (for example, Dunbar Bank).
Item - a unit within a brand or product line which is distinguished by size, price, or some
other characteristic of element.
Product hierarchy provides the different levels at which a product should be
managed. For example, product line management is associated with different decisions
compared to brand management.
Montoya-Weiss and Calantone^^concluded that Launching new products can be an
attractive growth strategy; however this is not without risks. Some estimate that 30-35%
of all new products fail while others are even more pessimistic, citing that only two out of
ten new launches succeed.
Aaker , in his final opinion discusses that due to factors such as high advertising
costs and the increasing competition for shelf space, it has become difficult to succeed
with new products in an increasingly popular approach to reducing risk when launching
new products is to follow a brand extension strategy.
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As per the opine of Beverland and Veryzer,^"^ Managing design is an aspect of

marketing's activities but relatively little is known about the relationship between
marketing and design. At one level, marketing requires design expertise to meet user
needs and communicate brand values through a series of elements like products, packs,
corporate identity and advertising. Design is fundamental to business success and
competitiveness. To exploit new markets, to retain or recapture their share of world
markets, producers have to develop new products and services that consumers want.
Whatever the marketing goals - holding onto market share, increasing market share or
entering a new market - it is investment in design and product development that produces
the new or updated/redesigned products or services, packaging and communications that
helps to achieve these goals.
Olins suggests that design is the visual orientation of marketing and conveys, in
particular, brand values to the consumer. But, this is more traditional approach of design
as a functional resource to aid marketing. And also, design is becoming more broadly
viewed as a creative asset in its own right, which can make an independent contribution to
strategy and leadership.
Kotler and Rath , suggest that good design differentiates companies and makes
products 'stand out from the crowd'. Innovative design opens up new markets. Clever
design rekindles interest for products in a mature market. Well-designed products
commimicate quality and value to the consumer. It enhances the product's appeal and
attractiveness, making selection by the consumer easier a summary of the marketing
benefits of design is as follows: (a) Enhances product and service quality, (b)
Differentiates products and services, (c) Markets products and services and enhances
company image, (d) Lowers production and/or maintenance costs, (e) Adds to the
creativity, (f) Intellectual property and competence of the company.
Rundh,^^ concluded that the Packaging's importance as a marketing tool has
increased due to increased importance of buying decisions at the store, the role of brand
building by media advertising, growing management recognition of packaging's ability to
create differentiation and new media habits.
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Schoorsman and others, opine that the packaging research has focused on its
general characteristics and design; influence on product evaluation; communication
aspects; the impact of size on usage; use as a source of profit; the perceptual processes for
design and visual impact on consumer attention, categorisation and evaluation.
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Sagar and Kumar have drawn the opinion on package which is the face of a
product. Packaging involves the activities of designing and producing the container and
wrapper for the product. Up to three levels, of material may be used in packaging, i.e.
primary package, secondary package and shipping package.
Kotler, argued that the many marketers have called the packaging a fifth 'P'; the
other four Ps are Product, Price, Place and Promotion. So packaging is used as a
marketing tool. Well-designed packages can create convenience and promotional values.
Etzel and others^ ^ opine that the packing serves several purposes, such as
protecting the product on its way to the consumer, protecting the product after it is
purchased, helping to gain acceptance of the product, helping to persuade consumers to
buy the product, supporting self-service, consumer affluence, company and brand
recognition, and innovation opportunity.
Kotler concluded that initially, packaging was intended largely to provide
protection to the product. With its increasing significance in marketing, it has become a
major factor in gaining customers.
Etzel and others, 2005 opine that the Packaging is criticized largely because of its
environmental impact on depleting natural resources; certain form of packages have
health hazards; and there is problem of disposal of packages; some packages are
deceptive; others are expensive. Marketing executives have to address these criticisms.
They must enhance the positive features of packaging, like product protection, consumer
convenience and marketing support.
Schreiber^'* has drawn the conclusion that to remain competitive in the market,
packaging strategies should be reviewed annually.
Parker , opine that the Packaging is a key component of marketing. According to
recent studies by the Point of Purchase and Advertisement Institute (POPAI), which
indicate that, 70% of consumers' buying decisions are made at the point of sale.
Pandey also claims that impulse purchase is increasing rapidly. The package is a
very effective tool for influencing impulse purchasing.
Further, Kundu and Sehrawet showed that consumers feel that the package is
very helpftjl in identifying and distinguishing products. As people become time prone,
they are more prone to impulsive buying. The unplanned purchase is a large source of
revenue. The power of the package is an important element of unplanned purchasing.
no
The study by Sivan has shown that 18% buying decisions are influenced by
advertisements.
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Mehta suggests that the efficiency of traditional approaches appears to be

reducing year by year and the effectiveness of modem marketing tool like packaging is
increasing rapidly.
Phillips"*" argues that the modem consumer is more educated, more sophisticated
and more cynical. As a result of this, the consumers are postponing their decision making
until at the point of purchase. In turn, this has led to an increase in impulse purchase and
brand switching, and consequently a decline in the power of branding and traditional
marketing approaches. So, the importance of marketing communications by making use of
the packaging has increased.
Narayanan"*' claims that a large part of the population has started to give higher
importance to health and hygiene, which is leading to an increased demand for packaged
goods and a shift from loose buying.
The spread of education, particularly among housewives, has swung the trend in
purchasing from loose to pre-packaged and branded products, from tea to ketchup and
noodles. The market share of packaged edible oil has increased from 20% in 1998 to 26%
in 2005. Today's consumers are finding packagmg as value addition. [The Times of India
(TOI),2005].
Ramaswamy and Namakumari ^ conclude that packaging must be able to stand out
from other packages. This can be accomplished by the use of colour, shape, copy,
trademark, logo or additional features. This aspect of packaging was exploited by
Hindustan Lever's Le Sancy soap, with its unique bean shape, which was packaged in
transparent polj^hene to exhibit its shape. Customers could experience the unique shape,
colour and appearance for the first time in the product of soap. This package strongly
influenced the high trail purchases.
In their earlier study Alsop and Abrams"*^ found that ease of storage is one of the
important features of package in influencing buying decisions.
Ajarekar"*"* has come with the conclusion that the package must be able to
communicate its message to the buyers. All the necessary information must be clearly
visible and highlighted by colour or design to make direct and indirect communication
effective.
Ramaswami and Namakumari"*^ argue that it is necessary to assess the reaction of
consumers to a package periodically and adapt it accordingly. Consumers may have their
own preferences covering: (a) package size; (b) package shape; (c) packaging materials
used; (d) package graphics, etc. Marketers must assess consumer preferences on the one
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hand and cost and availability aspects on the other hand, in order to provide the consumer
with the best possible package. An effective package can be an efficient mass-selling
medium and it is often worth more attention and money that are now devoted to it by most
companies.
According to the study of Alsop and Abrams'*^, 19% of consumers refiised to buy
the brand in a poor package again, while 24% said they would buy it cautiously or in a
different type of package. Their research further revealed that most important package
characteristics to consumers are storage life of any unused portion, the ability to recognize
the contents by looking at the package and its graphics, resalability and ease of storage.
Shapiro'*^ has given the opinion that increased competition is forcing brand
managers of consumer goods to alter the portfolio of the package sizes they offer.
Although some managers assume that larger package sizes encourage consumers to use
more (per usage occasion) than smaller package sizes, and these assumptions are
becoming a source of controversy. They suggest that compared to small packages, large
packages might be expected to encourage greater use because consumers would be less
concerned about running out of the product. The greater the supply of a product (e.g.,
large package), the lower the transaction (replacement) costs for using the product and the
greater the volume people are willing to use. Another possible reason that has not yet been
investigated is that unit costs often vary inversely with package size. Because products
from large packages are generally less expensive (per unit) than those from small
packages. They may be used in greater volume.
Hoch, has concluded that the large packages of familiar, branded products
encourage more use than do small packages. The study shows that as the size of a package
increases, so does the volume of the product that a person uses. And also, the notion that
perceptions of a package's imit cost can influence usage and operate independently of the
package size itself.
Mitchell'*^ says that a successful brand could gain impetus from irmovative
products and/or process. Product innovations may be in the form of product improvements
or development of new products. Process innovation is the improvement in the operation
process, integration of the operation steps, leading to reductions in cycle time or
reductions in the number of process steps that improve the operation's efficiency and
effectiveness. However, the importance of irmovation or simply admiring its usefulness
will not serve the dream of being innovative. A firm needs to have a strategic know-how
system in place to put the mnovations into use.
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Fraser^^has argued that the innovation can be one of the ways that marketers can
differentiate themselves from their competitors. The creation of an innovative
product/service can potentially provide marketers with a sustainable competitive
advantage.
Webster^ ^ draws the conclusion that the innovation refers to the extent of the
unique product, service, process or approach a firm is able to achieve. Innovation is
concerned not only with the finished product, but also with the value-creating processes
2.3 PRICING
Shapiro argued that pricing is an important decision area of marketing. It is the
only element of the marketing mix that generates revenue and all the other elements
involve cost. Price is also one of the most important market place indicators.
Lichtenstein, Ridgway and Netemeyer^'^, opine that the all pervasive influence of
price is due to the fact that the price factor is present in all purchase situations and
represents to all consumers. Although it is believed that price serves as an indicator of
quality, there exists no general price-perceived quality relationship.
Erickson and Johansson,^"* in their final conclusion that the, price becomes a less
important indicator of quality in the presence of other product quality indicators such as
brand name or store image.
Zeithaml,^^says that the use of price as an indicator of quality depends on the
following The availability of other indicators to quality (a) The price variation within a
product class, (b) The product quality variation within a product category, (c) The
level of consumer awareness about price, (d) The consumers' ability to distinguish quality
variation in a product group.
Scitovsky,^ argued that the price is identified as an important index of quality In
his view, the word 'cheap' usually means inferior quality.
Leavitt^ôbserved that in one of the pioneering studies on price-perceived quality
relationship, the buyers tended to have doubts when they chose the lower priced brands
than in the case of higher-priced brands. He concluded that a higher price might
sometimes increase the buyers' readiness to buy.
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Gabor and Granger^^ concluded that the price would be an indicator of quality for
commodities such as textile products where quality cannot be ascertained by sight and
where, owing to changes in technology and fashion, past experience was of little use.
McConnell^^ examined the relationship between price and the quality of beer
which is a frequently purchased consumer product. He found that the buyers used price as
an indicator of product quality. With a homogeneous product and various unknown brand
names, buyers perceived the highest-priced brand to be of better quality than the other two
brands. He concluded that price, without any other indicator, was an effective measure for
brand evaluation. However, Shapiro warned marketers that the concept of price as an
indicator of quality should not be applied indiscriminately in making pricing decisions.
In an experimental study, Gardener^*^ explored the degree of price-quality
relationship for three products: toothpaste, a man's shirt, and a suit. He concluded that
while price did not affect the perception of product quality in case of all the three
products, whether branded or not, it did affect the willingness to buy a shirt.
Lambert,^' says that the Consumer choices regarding price might be influenced by
the following product-specific factors: (a) Buyer's confidence in the predictive value of
price., (b) Perceived consequences of making a poor brand choice, (c) Amount of
brand-to-brand variation in product quality, (d) Social importance of the product, (e)
Difficulty encountered in making quality judgments, (f) Ability to assess product quality.
cry
Shapiro sought to determine whether price would act as a communicator of

quality and ascertain the reasons for consumers judging the product quality by price by
determining the correlates of price reliance. It was found that, for most of the dimensions
such as quality, durability, looks or fragrance, the number of buyers ranking the high-
priced product better than the low-priced product was greater than the number of buyers
ranking the low-priced product better than the high priced product.
In the final opinion of Shivdasani, on price and quality is that they are linked
together in the mind of the consumer. Price plays different roles in the purchase-decision
process. In traditional economic theory, since higher price has a negative impact on the
consumer's budget, price has a negative influence on his buying decision.
Monroe and Krishnan^'*, opine that a behavioral perspective, price may be
perceived as a product quality indicator. Therefore, price may be viewed either as an
indicator of sacrifice, or as an indicator of quality, or both.
Rao and Monroe ^ found that price increase might play a positive or a negative
role in the purchase-decision process. People are more likely to use price as an indicator
47
of quality for expensive products. As price increases, the risk of an incorrect decision
increases and the buyer is often less familiar with the product because of the infrequency
of purchase.
In the Indian scenario, Mehta, Parasuraman and Ambarish Kumar^^ conducted an
experimental study to find out the relationship between quality and price and to examine
the consumers' brand choice with respect to ready-made shirts. The study indicated that a
majority of the buyers perceived some quality difference between the two shirts which
were identical in all respects except for the brand names. The study revealed that the name
of a well-known brand induced the consumers to be favourably disposed towards that
brand in terms of quality and price perception and they were willing to pay a higher price
for the well-known brand.
2.4 PROMOTION
According to Kotler^^, sales promotion consists of a diverse collection of incentive
tools, mostly short-term designed to stimulate quicker and/or greater purchase of
particular products/services by consumers or the trade.
Roger Strang has given a more simplistic definition i.e. "sales promotions are
short-term incentives to encourage purchase or sales of a product or service." Hence, any
forms of incentives (price cut or value added nature) offered for short period either to
trade or consumers are considered as sales promotion activities.
Blattberg and others , opine that Sales promotions are action-focused marketing
events whose purpose is to have a direct impact on the behavior of the firm's customers.
There are three major types of sales promotions: consumer promotions, retailer
promotions, and trade promotions. Consumer promotions are promotions offered by
manufacturers directly to consumers. Retailer promotions are promotions offered by
retailers to consumers. Trade promotions are promotions offered by manufacturers to
retailers or other trade entities.
Huff and Alden observe that throughout the world, sales promotions offered to
consumers are an integral part of the marketing mix for many consumer products.
Marketing managers use price-oriented promotions, such as coupons, rebates, and price
discounts to increase sales and market share, entice consumers to trial, and encourage
them to switch brands or stores. Non-price promotions such as sweepstakes,fi-equentuser
clubs, and premiums add excitement and value to brands and may increase brand
attractiveness. In addition, consumers like promotions. They provide utilitarian benefits
such as monetary savings, increased quality (higher quality products become attainable),
! 48
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and convenience, as well as hedonistic benefits such as entertainment, exploration, and

self-expression.
Aradhna Krishna and others'^ opine that sales promotions have become a vital tool
for marketers and its importance has been increasing significantly over the years. In India,
sales promotions expenditure by various marketing companies is estimated to be Rs 5,000
crore and the emphasis on sales promotion activities by the Indian industry has increased
by 500 to 600 percent during the last 3 to 5 years (Economic Times, June 15, 2003). In the
year 2001, there were as many as 2,050 promotional schemes in the Rs 80,000 crore
FMCG Industry.
Kotler opine that the given the growing importance of sales promotion, there has
been considerable interest in the effect of sales promotion on different dimensions such as
consumers' price perceptions, brand choice, brand switching behaviour, evaluation of
brand equity, and effect on brand perception and so on. One of the purposes of a consumer
promotion is to elicit a direct impact on the purchase behaviour of the firm's customers.
Blattberg, Bnesch and Fox , emphasise that research evidence suggests that sales
promotions positively affect shot-term sales. Research on price promotion has consistently
reported high sales effect and high price elasticity for brands which are on promotion..
Aradhna Krishna, says that the studies have shown that price promotions enhance
brand substitution within a product category, affect aggregate sales, and significantly
affect stock piling and purchase acceleration. However, there have also been studies that
suggest that sales promotion affects brand perceptions. Researchers have found out that
promotions, especially price promotions, have negative effect on brand equity.
In a study, Schultz'^ argues that over dependence on promotions can erode
consumers' price-value equation.
The result of a study by Jeddi indicates that in the long term, advertising has a
positive effect on brand equity where as price promotions have negative effects.
Similarly, Yoo and others^'' opine that based on structural equation model,
suggests that frequent price promotions, such as price deals are related to low brand
equity, where as high advertising spending, high price and high distribution intensity are
related to high brand equity. There is also a managerial belief that if a brand is supported
with frequent promotional offers, the equity of the brand tends to get diluted.
Yoo and others , have argued on the contrary that there have also been studies that
indicate brands benefit from promotions. Among all the elements of marketing mix, sales
promotions have long-term influence on brand equity.
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Mariola & Elena , suggested that monetary and non-monetary promotions are
useful to create brand equity because of their positive effect on brand knowledge
structures.
Barbara Khan and Jagmohan Raju^° encompass that an effect of promotions on
variety seeking and reinforcement behaviour has also been studied. The importance of
consumer sales promotion in the marketing mix of the fast moving consumer goods
(FMCG) category throughout the world has increased. Companies spend considerable
time in planning such activities. However, in order to enhance the effectiveness of these
activities, manufacturers should understand consumer and retailer perceptions of their
promotional activities.
Moreau, Aradhana Krishna, Bari Harlam^' have given outlook that in India fast
moving consumer goods (FMCG) category has witnessed an outburst of sales promotion
activities in the post-liberalization era and studied differing perceptions with respect to
price promotion from the point of manufacturers, retailer and consumers.
Campbell and Diamond set up that there have been very few discussions in sales
promotion literature about how different types of promotions may be classified. One
dimension, which has been suggested to classify different promotions, is the price versus
non-price nature of the promotion.
Cooke" has given the opinion that the Price promotions are defined as
'promotions such as coupons, cents off, refunds and rebates that temporarily reduce the
cost of the goods or service'. These promotions focus on the reduced economic outlay
required to obtain a good or service.
Cooke states that the Non-price promotions has defined as 'promotions such as
giveaways or contests in which value is temporarily added to the product at full price'.
Although a wide variety of price and non-price promotions are launched in the market.
Blattberg and others, view that the most of the academic research on promotions
has focused on price promotions, namely price offs and coupon offers.
Smith and Sinha, presented that the promotional tools such as free gift offers,
exfra product offers are increasingly being used in the market place. In recent years,
researchers have started comparing consumer response to different promotions e.g. price
promotion versus premium promotion or extra product promotion versus price promotion.
These researchers have found that different types of promotions create differential
response from the consumers.
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p"
Reichheld and Sasser , have originated that the customer retention helps increase
revenue through increases in sales volume and/or premium prices as well as reducing the
expenses or costs of generating those revenues. An increase in retention rate has been
argued to have led to a corresponding increase in profit.
Reichheld has identified six economic benefits of retaining customers: (1)
savings on customers' acquisition or replacement costs, (2) a guarantee of base profits as
existing customers are likely to have a minimum spend per period, (3) growth in per-
customer revenue as, over a period of time, existing customers are likely to earn more,
have more varied needs and spend more, (4) a reduction in relative operating costs as the
firms can spread the cost over many more customers and over a longer period, (5) free of
charge referrals of new customers from existing customers which would otherwise be
costly in terms of commissions or introductory fees and (6) price premiums as existing
customers do not usually wait for promotions or price reductions before deciding to
purchase, in particular with new models or versions of existing products.
Reichheld has given the opinion that even if not all customers prefer long-term
relationships there are those who prefer stable long-term relationships, inherently spend
more, pay promptly and require less service. Long-serving employees generate several
economic benefits, not only that they are much better at finding and recruiting the best
customers, but they retain customers by producing better products and value and they are
sources of customer referrals.
Reichheld^ offered strategies that measure retention in terms of both crude and
weighted rates. This involves interviewing former customers, customer complaints and
service data and identifying switching behaviour. With the use of computers, firms should
have little difficulty in calculating and reporting both crude and weighted rates. In
addition to measuring retention, firms should consider interviewing, former customers in
order to learn their reasons for defecting. Customer defections may have been caused not
by the firm itself, but by factors beyond its control.
Reichheld^' identified six types of defectors: (1) price - for a lower price, (2)
product -for a superior product, (3) service - for a better service, (4) market - for a
different market, for example a transport company which has moved out of road haulage
and, therefore, no longer buys trailers, (5) technological - a customer that has converted
from using one technology to another and (6) organizational - switches due to political
pressure.
51 I
Rosenberg and Czepiel,^^ have orated that it is probably unreaUstic to expect all
customers to stay indefinitely. Not only do customers buy on a portfolio basis, but firms
have to accept that a proportion of their customers will leave from time to time for a
number of reasons. A strategy that would enable firms to cope with this situation is
customer portfolio management. It involves an analysis of the firm's customer portfolio
with a view to creating a specified balance of customer groups before reorganizing the
firm for customer retention. Some examples of retention tactics are giving product extras,
reinforcing promotions, providing sales force connections, providmg specialized
distribution and providing post-purchase communication. Reorganization for customer
retention involves setting an acceptable target for customer turnover, establishing
executive accountability for keeping customers and improving internal coordination by
targeting promotional strategies towai'ds repeat usage.
2.5 DISTRIBUTION
Stem, El-Ansary, and Coughlan^'^ have concluded that the distribution intensity has
been commonly defined as the number of intermediaries used by a manufacturer within its
trade areas. Ideal distribution intensity would make a brand available widely enough to
satisfy, but not exceed, target customers' needs, because over saturation increases
marketing costs without providing benefits. The use of too few intermediaries can limit a
brand's level of exposure in the marketplace. However, using too many intermediaries can
be detrimental to the brand's image and its competitive position. "Exclusive distribution"
in relation to "intensive distribution" has been examined in the economics literature. In
opposition to traditional economic theory, many economists now argue that exclusive
distribution can have pre-competitive effects when intermediary support is critical to the
success of the brand. High distribution intensity may promote sales in the short run, but
long-term results are less clear.
It is evident from the above review that the works on marketing strategies throw
light mainly on general theme of and functional aspect of marketing strategies and
elements of marketing mix.
2.6 MARKET ORIENTATION

There are several studies on consumer orientation of marketing, retention of
consumers, relationship marketing and consumer involvement and related reports, which
52
have gained a prominent place in formulation of marketing strategies. A brief review of

literature on the above aspects is given below;
Ruekert^'^has given the opinion that for over 40 years the marketing concept has
been described as being the management philosophy that focuses on satisfying customer
needs and wants based on customer knowledge. Recently however, within the academic
literature increasing attention has been given to the concept of market orientation. This
revival of the attention for a market orientation has been driven by enviroimiental
changes, a more competitive international market place, increasing pace of changing
technology, a shortening of product life cycles, and a decrease in customer loyalty.
Kohli and others are given the opinion that empirical evidences support that the
market orientation is positively associated with superior performance. As a result,
businesses recognise that a focus on the customer and the markets they serve may result in
long-run competitive advantage and superior profitability.
Day's^^ opinion on market orientation is represented in three principal features
i.e., a set of beliefs that put the customer's interest first, the ability of the organisation to
generate, disseminate, and use superior information about customers and competitors, and
the coordinated application of inter functional resources to the creation of superior
customer value.
In the final opinion of Webster^' on market oriented organisation, marketing is no
longer the sole responsibility of specialists. Rather, everyone in the firm is responsible for
understanding customers and delivering superior customer value.
This study has been performed in order to gain insight into the extent to which
KS&DL maintains a marketing orientation in responding to enviroimiental changes, and
into the relationship between marketing orientation and performance. This project aims at
examining the marketing environment, approaches to marketing, the organisation and
responsibility for marketing activities and the marketing strategies adopted by KS&DL.
Customer retention can be seen as the mirror image of customer defection, where a
high retention rate has the same significance as a low defection rate. Defining customer
retention in terms of percentage share of customer savings, borrowing, spending or
purchasing may be more usefial instead of in terms of the absolute numbers of customers.
OR
Storbacka found that 20% of their customer base accounted for 90% of their total
customer base profitability. Hence, customers ftom the remaining 80% of the customer
base were either unprofitable or contributed to an insignificant amoimt of profit.
53
„ ir
Reichheld^^, concluded that the high proportion of new customers could bring
down the rate of retention and vice versa Moreover, defection rates tend to be much
higher for new customers than long tenure customers..
Reichheld^"" and Dawkins have found that the tangible advantages of retaining
customers into prominence. They claimed that a 5% increase in retention rate led to an
increase in the net present value of customers of between 25 and 85% in a wide range of
industries, from credit card to insurance brokerage and from motor services to office
building management. Despite its potential benefits, customer retention did not obtain
much attention in strategic or marketing plaiming processes.
The end goal of a firm's marketing activities is making profit. Fornell and
Wemerfelt^^' emphasized that marketing resources may be better spent on keeping
existing customers than acquiring new ones. This was based on the assumption that
existing customers are profitable and they cost' less to keep than to replace. Firms
therefore have to be aware of the profitability of not just their products but also their
customers.
Blattberg.R.C. and Deighton, J.^*^^ Customer retention clearly deserves some
attention and should form a part of a firm's strategic marketing goals rather than simply
being seen as the end result of 'good' marketing management.
Reichheld'"^ has given the opinion that the objective of many marketing strategies
in the last 10 years has been building the customer's commitment to a brand or a dealer.
This has taken three forms: (a) Creating customer satisfaction - delivering superior quality
products and services, (b) Building brand equity - the sum of the intangible assets of a
brand. Factors that contribute to this are: name awareness, perceived quality, brand
loyalty, the associations consumers have towards the brand, trademarks, packaging, and
marketing channel presence.
Peppers and Rogers opine that creating and maintaining relationships - Success
with any of these strategies will result in high levels of repeat purchase, insulation from
price increases and improved responsiveness to marketing communications by customers.
Relationship marketing sought to build interdependence between partners and relied on
one-to-one communications, historically delivered through the sales force. With the
grov^^h of marketing databases and the Internet, the ability to reach customers individually
became a viable strategy for a wide range of firms including consumer products
companies.
54
r
Reichheld'"^ claimed that even small improvements in customer retention can as

much as double company profits. This is because: 1. It costs less to serve long-term
customers. 2. Loyal customers will pay a price premium, 3. Loyal customers will generate
word of-mouth referrals to other prospective customers.
Finn^°^ argues that though consumer involvement can take place at various levels
other than product, level of motivation results from product attributes and relatedness of
the product to the consumer's psycho social wants and needs. It has also been identified
that products which are highly priced, having complex features and high perceived risk
generate high involvement levels from the consumers.
Saxena^"'' has concluded that the consumers express low involvement levels for
products which are generally low priced; have simple features and low perceived risk.
Thus, the level of consumer involvement is dependent on the product.
Alreck'"^ in his argument says that the age affects consumers self concept and life
styles and carries with it culturally defined behavioral and attitudinal norms. Age
determines the consumption of various products, media, and shopping centers and has
been used by marketers to segment the markets.
Jain and Sharma"'^ have found that the age also influences the level of consumer
involvement. Though age forms a part of one's stage of family life cycle, yet it is in itself
an important factor for various Products.
Sanjay^'° has argued that men and women possess unique personality traits,
interests, knowledge, judgment capabilities, and social status. Hence, both sexes process
and evaluate products differently.
Jain and Sharma^" have initiated that there are differences in the involvement
levels for various products between men and women.
Jain and Sharma have concluded that the income of the family combined with
family's accumulated wealth determines the purchasing power. However, income enables
purchases but does not generally cause or explain them. It is likely that the occupation and
education dnectly influence the preferences for products, media and activities. Income
provides the means to acquire them Occupation is strongly related to education and
income. Various studies have found differences in consumption of products with
differences in the occupations.
Jain and Sharma have gathered a minimal support for the argument that
consumer involvement differs for differences in consumers' occupation. However, it may
55
be speculated that the differences in the involvement levels of consumer would be

influenced by different occupations.
Varadarajan^^'has concluded that the discipline and practice of marketing has been
undergoing a period of metamorphosis over the last four decades.
Morgan^'^ indicated that durmg 1970s, marketing was imresponsive to greater
societal issues and during the 1980s marketing caused discontent by over-segmenting
markets and overstating the value of consumers' expressed needs.
Homburg and others'^^drawn the conclusion that the importance and value in
studying the contribution and influence of marketing within the organization is therefore
fundamental. They outlined, as organizations evolve, the importance of all functional
departments will inevitably be diminished. Some functions will be relatively more
powerful than others - that is, they will control more resources and have more influence in
the strategy dialogue.
Christopher has argued that the significant cultural, social, demographic,
political and economic influences during the last decades of the 20* century, combined
with rapid technological advances have radically transformed the consumer's needs,
nature and behaviour. The new consumer has been described as existential, less
responsive to traditional marketing stimuli and less sensitive to brands and marketing cues
while the influence of family or other types of reference groups on the new consumer's
behaviour is changing or diminishing.
Christopher''ôpine that more researchers share the view that the modem
consumer is different: demanding, individualistic, involved, independent, better informed
and more critical. A factor underlining the change is the increasing consumer power and
sophistication due to wide availability of affordable personal computing' power and easy
access to online global commercial firms, networks, databases, coriiminutes or
marketplaces. These developments have intensified the pressure on marketers to switch
from mass marketing approaches towards methods allowing personalization, interaction
and sincere, direct dialog with the customer. Such approaches allow marketers not only to
improve communications with their target groups but also to identify the constantly
changing and evolving customer needs, to respond quickly to competitive movements and
to predict market trends early and accurately.
According to Trott"^, Organizational competence affects firm performance and
can explain sustained performance differences among firms due to slow diffusion of best
practices and difficulties in imitation of complex organizational capabilities. There are
56
specific requirements to support organization's innovativeness such as an orientation

towards long-tenn profits, the ability to identify threats and opportunities, acceptance of
risk, uncertainty and change, teamwork using a diverse range of skills, 'slack', receptivity,
and a strong commitment to technological development.
For teamwork to succeed, Hoegl and Gemuenden'^^ emphasize the need for team
cohesion and commitment, existence of an open level of commimication between team
members, good coordination of tasks, member contribution corresponding to personal
knowledge, and mutual support within the team.
Banerjee and Banerjee , say with the population of over one billion, India is on
the threshold of becoming one of the world's foremost consumer markets. About a quarter
of this huge mass of consumers is urbanized and about three-quarters are rural. Over the
years, the retailing infrastructure that has proliferated in India is characterized by a high
degree of fragmentation as compared with many developed nations. There are an
estimated 10 million operational retail outlets in India, of which 68% are in rural areas.
The challenge lies in identifying the key drivers that steer the Indian consumers'
perception and behaviour when it comes to their shopping needs.
Mahalingam has argued that about a half of India's rural population do not have
access to good roads and infrastructure. They are relatively poor and so, have limited
spending power. Easy finance associated with rising income has caused a major boom in
the discretionary income of the middle class. This has led to heightened consumer
expectations.
19T
Lakshminarayan , conclude that the changing life styles of the Indian population
are likely to boost the sales of packaged products. It is estimated that the Indian food
industry would grow to $140bn in the next 10 years creating wealth from what is waste
today.
Mahalingam , has given the opinion that the realizing the potential of the rural
market, HLL launched project Shakti 3 years ago, to target villages having a population of
less than 2000, by appointing rural women as retailers of their products. Today such
13,000 retailers are operating in 12 states of India and contributing 15% of the company's
rural sales (Srinivasan, 2005). The HLL will cover half a million villages in 2010.
Sayulu and Ramana Reddy ^ suggest that the rural market offers a very promising
future for the marketing of consumer goods. But this rural market has certain
characteristics that hinder marketers from exploiting the opportunities provided by this
huge market. These characteristics are: (a) low literacy; (b) ignorance of their rights as
57
consumers; (c) low purchasing power; (d) indifference to quality or standards; and (e) lack
of cooperative spirit.
Ramana Rao^^ôbserves that the marketing boom in the rural areas is caused by
such factors as increased discretionary income, market surpluses, rural development
schemes, improved infrastructure, increased retailing and retailers, increased awareness,
expanding TV Networks, liberalized government policies for rural development, emphasis
on rural markets by companies, new entrepreneurship, competitive and creative sales
promotion, the packaging revolution and changing life styles. The new generation in the
rural areas considers itself to be like the urban generation.
Sudhakar'^^ observes that the process of evolution of the urban markets is being
replicated in rural India, both for international brands and home-grown products.
The above review shows that the studies made on market orientation and related
aspects are of general nature and the research orientation is lacking.
2.7 THE MARKETING STRATEGY IN SOAP INDUSTRY

There are a few studies on the grov;1;h and development and marketing strategies
of toilet soap industry. In what follows is a brief review of the literature on the topic
Sonal kureshi in report entitled " Exploratory study on sales promotion activities
in toilet soap category: An insight in to consumer and retailer perceptions", opines that
both retailers and consumers perceived that sales promotion activities carried out by the
companies for increasing sales in short term and clearing stocks. What it implies is that
companies need to use sales promotion synergistically and communicate so that they
provide value to the audience and enhance brand quality/image perceptions.
58
Yogin'^^ in his work "Changing Indian Rural Consumer Behavior-Soaps and

Detergents" observes that Indian consumer behavior is aimed to get a better
understanding of the Indian market place thus enabling them to embark on selected
strategies to effectively reach the Indian RURAL consumers. From the market
perspective, people of India comprise different segments of consumers, based on class,
status, and income. An important and recent development in India's consumerism is the
emergence of the rural market for several basic consumer goods. Three-fourths of India's
population lives in rural areas, and contribute one-third of the national income. India is a
lucrative market even though the per capita income in India is lov;^ and it remains a huge
market, even for costly products.
Mr Dalip Sehgal'^°, Managing Director, GCPL, stressed Business Line, "There is
a large market for personal care products in Latin America. Outside India, Brazil is the
second largest market for toilet bar soaps. With a mix of both mass market and a premium
market at the top end, these are high growth markets with large populations and good per
capita income and GDP."The Godrej group is on the lookout for personal care companies
manufacturing toilet bar soaps in Latin America. After India, Brazil is the next largest
market for toilet bar soaps followed by Asian countries such as Indonesia while it is liquid
soap brands which dominate in Europe and America. In the Rs 8,500-crore domestic toilet
soaps market, GCPL has gained one per cent share during the quarter ended in March for
the category. Its Godrej No.l brand is the third largest today with a value share of 10.5 per
cent after HUL's Lux and Lifebuoy.
Fierce'''^ in his article "Competition in Indian soap market" emphasised on the
Indian toilet soap market which has been described as a "perfiimed rat race" by a local
industry spokesman, since it is highly price competitive and oversupplied, and likely to
become more so as new capacity comes into production. National companies with their
own or franchised international brands jockey for market leadership against state or
regionally based companies with high local consumer loyalty. Total aimual soap sales by
companies marketing their brands at national or state levels is estimated at 14,000 tones of
a total soap market considered to be about 126,000 tones.
The London School of Hygiene and Tropical Medicine'^^ in their article "The
Global market for soaps" concluded that the market for soap products is largely matured
in developed market and displays stagnant growth. The growth potential in developing
country is huge, but there are many obstacles to expansion.
59
Mr. Pravin Tripathi,'^^ observes in his article " study on opportunities for GMCG
products in rural areas" that Hindustan Unilever Products are the most known and
popular brand of FMCG products in rural market followed by Dabur, ITC and Procter and
Gamble. Because of huge product line, cheaper cost, brand loyalty, good pubJicity and
advertisement.
Mr. Hitendra Bargal'^'' has given the opinion in his report "Promotion of soap
brand in rural market India", that the language and content must be according to the
suitability of rural environment, background figures are also a deterministic factor,
admissibility of brand ambassadors plays an important role in this regard and special
promotion measures are the strong applicable factors in this regard.
Miss Prathiba H.L has concluded that the pears soap ranks high quality,
composition, etc. It is observed that pears soap has maintained better product image
among the persons who have uses it and are using it. The company has also vast network
of salesmanship. It is also observed that pears soap is facing competition from numbers of
other soaps both in price and quality. Therefore, it is immensely necessary for both
producers and dealers to see that competitive efficiency of product is kept high.
Chandrabha Barua^ ^ has concluded that KS&DL is a consumer oriented company.
it manufactures Mysore sandal soap (75 grams) to satisfy the consumers needs. It has to
go for some changes like reduction in price and change the packaging style, come up with
some other variety in flavours and colour etc. It should mould itself to the modem
marketing concepts like customer relationship management and consumer focused
marketing.
Dipendra has drawn in his article that HUL is the market leader in the FMCG
sector in India. Lifebuoy soap brand market leader at Indian Urban and Rural Areas. Most
of the customers are satisfied with the performance of Lifebuoy soap and their other
products. Approx 70% customers have positive and 30% customers have negative attitude
in support of preference to Lifebuoy soap and the other products of Lifebuoy. Customer's
awareness level is better in India. Lifebuoy soap is improving health & hygiene for over
100 years in India and all over world
http://wvvrw.naukrihub.com/india/fmcg/overview/soaps/'^^ reveals that in India,
soaps are available in five million retail stores, out of which, 3.75 million retail stores are
in the rural areas. Therefore, availability of these products is not an issue. 70% of India's
population resides in the rural areas; hence around 50% of the soaps are sold in the rural
markets. With increase in disposable incomes, growth in rural demand is expected to
60
J\lt
Chapter 2. ^ S S Literature Review
increase because consumers are moving up towards premium products. However, in the
recent past there has not been much change in the volume of premium soaps in proportion
to economy soaps, because increase in prices has led some consumers to look for cheaper
substitutes.
http://www.detergentsandsoaps.com/industry-overview.html quotes that the
market size of global soap and detergent market size was estimated to be around 31M
tonne in 2004, which is estimated to grow to 33M tonne by 2008. Toilet soaps account for
more than 10% of the total market of soap and detergents. In Asia, even though the
countries like China and India are showing rapid growth in the toilet soap section, the
Japanese toilet soap industry is showing signs of decline due to the preference of
consumers for liquid soaps. This trend is also observed in other developed markets like
the US and Europe, which is adversely affecting the toilet soap industry. Market share of
body wash was estimated to be around 2% in 2004 and is showing signs of healthy growth
in these markets. X - i ^ U- O
http://www.detergentsandsoaps.com/industry-overview.html''*'' presents that the
major products of soap and detergent industry include soaps, laundry detergents,
dishwashing detergents, household-cleaning products, hair cleaning products, and
toothpaste. Laundry detergents account for 40 % of the overall market, while soaps for 20
% and dishwashing detergent for 15%. laundry detergents come in powder as well as
liquid form, and may contain also contain bleach additives or color brighteners.
Christ college institute of management''*', organisation structure study concluded
that it is a company wholly owned by government, so it has to follow the rules made by
the government. The company is under utilizing its capacity. Its production is based on
old technology, which leads to more wastes in the production process. Consumer
awareness of its products is very less except for Mysore Sandal soap. Its products are not
available easily in district places of states other than Kamataka. There is mismatch in
production & sales activity. Recruitment in the company has been stopped since 1988 due
to some circumstances and recruitments are taking place only in some departments.
The review of the studies on the marketing strategies in soap industry reveals that,
the most of the studies are on soap and detergents in general. Only a few studies are on
toilet soap manufacturing in general and KS & DL in particular. Further, these studies are
mainly in the form of reports and articles. Research orientation in these studies is lacking.
Therefore, there is immense need to conduct a comprehensive research on marketing
strategies of toilet soap manufacturers. Kuvemou University Library
Jnana Sahvaari. Shankaraghatta
61
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72 Kotler Phillip, "Marketing Management : Analysis, Plaiming, Implementation and
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66
74 Aradhna Krishna, Imran S. Curriuun and Robert W. Shoemaker, "Consumer

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75 Schultz, Don. E, (2004), "A Clean Brand Slate", Marketing Management;
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83 Cooke, Ernest F., "What is Sales Promotion?" paper presented at Sales Promotion
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84 Ibid. Op. Cit, Babson College, May 23,1983.
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I 67
Harvard Business Review, September- October, pp.105- 111.

88 Reichheld, F.F. (1993) Loyalty-based management. Harvard Business Review,
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89 Ibid. Op. Cit., March-April, pp.64-73.
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91 Ibid. Op. Cit., Journal of Retail Banking, 13 (4), pp.19- 23.
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99 Reichheld, F.F. and Sasser, W.E. (1990), "Zero defections: quality comes to
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100 Reichheld, F.F. (1993) Loyalty-based management. Harvard Business Review,
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68
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112 Ibid. Op. Cit., Vision, January - June, pp.13 - 24.
113 Ibid. Op. Cit., Vision, January - June, pp.13 - 24.
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115 Robert M. Morgan and Shelby D. Hunt "The Commitment-Trust Theory of
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69 I
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129 Yogin, Changing Indian Rural Consumer Behavior-Soaps and Detergents
130 Mr Dalip Sehgal'^", Managing Director, GCPL, stressed Business Line, "Godrej scouts
70
for toilet soap brands in Latin America" First Indian FMCG company to enter
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139 http://www.detergentsandsoaps.com/industry-overview.html
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71
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CHAPTER-II

2.1 STUDIES ON MARKETING STRATEGIES AND ELEMENTS OF

2.6 MARKET ORIENTATION

2.7 THE MARKETING STRATEGY IN SOAP INDUSTRY

2.1 STUDIES ON MARKETING STRATEGIES AND ELEMENTS OF

potential influences are planning effectiveness, internal exchange processes, participative

Augmented product - refers to the product characteristics that surpass the

As per the opine of Beverland and Veryzer,^"^ Managing design is an aspect of

Mehta suggests that the efficiency of traditional approaches appears to be

Shapiro sought to determine whether price would act as a communicator of

and convenience, as well as hedonistic benefits such as entertainment, exploration, and

2.6 MARKET ORIENTATION

have gained a prominent place in formulation of marketing strategies. A brief review of

Reichheld'"^ claimed that even small improvements in customer retention can as

be speculated that the differences in the involvement levels of consumer would be

specific requirements to support organization's innovativeness such as an orientation

2.7 THE MARKETING STRATEGY IN SOAP INDUSTRY

Yogin'^^ in his work "Changing Indian Rural Consumer Behavior-Soaps and

Differing perceptions regarding price promotions,'' Journal of Retailing, 77 (2001),

44 Ajarekar, P. (1997) Packaging design. Packaging India, October-November, pp.9.

60 Gardener, David M (1971). "Is there a Generalized Price- Quality Relationship?"

74 Aradhna Krishna, Imran S. Curriuun and Robert W. Shoemaker, "Consumer

Harvard Business Review, September- October, pp.105- 111.

pp. 20-38 (article consists of 19 pages) , Published by: American Marketing

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