Professional Documents
Culture Documents
DISHWASHING PRODUCT
By
Surapong Surawanthanakul
A Project Presented
By
Surapong Surawanthanakul
June 2007
Acknowledgments
I would like to thank many people have greatly supported and provide
enormous assistance to the completion of my project study. I would like to faithfully
acknowledge my advisor, Dr. Charnchai Bunchapatanasakda. He is my main reason
for study at here. This study would not be able to be successfully completed without
Dr. Charnchais kindness for valuable advices. His experiences, expertise,
professional guidance, and encouragement and any necessary inspirations received
from him had brought me out to the confidences and strong attempt and willingness to
commit myself to the research.
I would like to express my thankful faithfulness to all MBA professors for
teaching me in all courses and for additional useful and supportive advices and
recommendations and suggestions, especially Asst. Prof. Dr. Pacapol Anurit, who has
given advices, knowledge, and so on since start until now and also future. He ready
to give knowledge to me and never tried to do.
I, moreover, would like to thank all of Shinawatra University staffs for helping
and suggestion in courses and also providing all possible conveniences and good
coordinative management and assistances during the academic years in the university.
Furthermore, my all colleagues, who had given me a very truly strong friendship,
encouragement and shared experiences and activities throughout the times we have
spent on studies, thank all of you.
Finally, I am not able to study in this course, if I lack of encouragement from
my family whether Mr. Anan, Mrs. Wanna, and Ms. Varanya, my parents and my
spouse who had continuously and fully always and encouraged me in every time,
especially, Mr. Therapath and Ms. Vasachol, my children, who are my inspiration and
encouragement
Abstract
This study was to investigate the consumer perception and attitude toward a
new liquid dishwashing product to be introduced into the market. The objectives of
the study are to identify target customers and obtained data and information for
creating marketing strategy plan.
Keywords:
ii
Table of Contents
Title
Page
Acknowledgments
Abstract
ii
Table of Contents
iii
List of Figures
vi
List of Tables
vii
Chapter 1 Introduction
2.2
Theory
2.1.5 Learning
12
12
13
15
2.1.9 Motivation
21
2.1.10 Personality
21
2.1.11 Perception
21
Past Researches
22
Chapter 3 Methodology
3.1
24
24
iii
3.2
Research Instrument
24
3.3
Research Process
25
27
27
28
28
28
29
29
4.2
30
4.3
30
4.4
31
4.4.1 Product
31
4.4.2 Price
32
32
32
32
32
33
33
33
34
34
34
34
35
Descriptive Analysis
36
36
4.5
4.6
4.7
37
38
38
iv
4.8
4.9
Consumer Behavior
39
39
40
41
Promotion
41
41
42
43
45
45
46
51
51
52
53
54
56
Reference
59
Appendices
Appendix A Screening Questionnaires in English and Moderator Guide in
English
61
69
Biography
78
List of Figures
Title
Page
Figure 1.1
Figure 1.2
Figure 1.3
Figure 1.4
Figure 2.1
Figure 4.1
27
Figure 4.2
30
Figure 4.3
35
Figure 5.1
57
vi
Lists of Tables
Title
Page
Table 4.1
36
Table 4.2
36
Table 4.3
37
Table 4.4
Types of Ownerships
37
Table 4.5
Table 4.6
37
Table 4.7
38
38
Table 4.8
39
Table 4.9
40
Table 4.10
40
Table 4.11
40
Table 4.12
41
Table 4.13
Types of Packaging
41
Table 4.14
41
Table 4.15
42
Table 4.16
42
Table 4.17
43
Table 4.18
43
Table 4.18.1 The Attitude of Respondents towards to the Product Features after
Using
44
Table 4.19
44
Table 4.20
44
vii
Table 4.21
Table 4.22
46
46
Table 4.23
47
Table 4.24
47
Table 4.25
52
Table 4.26
53
Table 4.27
54
Table 4.28
55
viii
Chapter 1
Introduction
1.1 Statement of Problem
Nowadays, competitive in consumer product markets are in very high degree
of competition situation with no exception to liquid dishwashing products.
The
situation makes new producers hard and difficult to introduce their new brands in the
markets. Currently, there are several market leaders in the liquid dishwashing product
market including Sunlight, and Lipon-F. The market of consumer products grows
around 10-15 percent per year and market size is larger than 10 billion baht. Off this,
liquid dishwashing product market grow up at around 15 percent per year(Housing
Brands attacked 2006)
In the world of consumer products, it is not easy for the new brand or new
player to survive. The products both food and non-food category is growing at around
20 percent per year. Liquid dishwasher is classified as non-food consumer products.
The product becomes one of necessary consumer product for Thai household used.
The market is large and could be estimated market size to value at 2 billion baht with
10 - 15 percent growth rate (Housing Brands attacked 2006). The market leader is
Sunlight from Unilever Trading Co., Ltd whose company is joint venture between
Lever Brothers Co., Ltd (British) and Margarine Unie Co., Ltd (Netherlands)
followed by Lion, and house brands from discount stores such as Tesco-Lotus,
Carrefour, and Big-C (Housing Brands attacked 2006)
Liquid Dishwashing (2005) revealed that market size of liquid dishwashing
products in Thailand grew significantly from 1,426 million baht in 1997 to 2,251
million baht or accounted for 57.8 percent in the year ended 2005 (Figure 1.1).
1,426
1,616 1,628
1,740 1,811
1,966 2,032
2,144
2,251
1,000
500
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
58,037
60,000
51,653
45,119
50,000
40,000
38,004
34,825
Market Volume
30,000
(Ton)
20,000
54,752
49,167
43,220
36,540
10,000
0
1997
1998
1999
2000
2001
2002
Year
2003
2004
2005
60,000
50,000
40,000
30,000
5% 5%
5% 3.5% 2,1442,251
1,9662,032
4% 4%
1,811
13% 7%
58,037
1,740
1,6161,628
54,752
1,426
51,653
49,167
45,119
43,220
38,004
36,540
34,825
2,500
2,000
1,500
1,000
500
0
70,000
199719981999200020012002200320042005
Year
80
60
Market Value
Share (%)
40
20
0
Sunlight
64.1
62.5
63.5
66
68.7
65
Lipon
24.3
24.6
23.1
21.7
20.6
20
12.9
13.4
12.3
10.7
15
Information from Figure 1.4 (AC Nielsen Retail Audit, 2006) presents market
share of liquid dishwashing products by three major market leaders including
Sunlight, Lipon-F, and house brands during 2000 2005. Sunlight performs a long
term leadership since it is the about the first brand in Thai market; at present, its
market share is around 65 percent of the total market in 2005. Lipon-F, the second
market leader, shares 20 percent of the total in the same year. The rest 15 percent of
the market share is shared by several local brands and house brands.
Liquid dishwashing product market size is valued at more than 2,000 million
baht per year. Its market leaders are Unilever who gains approximately 65 percent of
market share, follows by Lion, and other brands which include local brands and house
brands who gains 20 percent and 15 percent of market share respectively. Local
brands or house brands are expected to grow at 15 percent in the year 2006. The
rationales for the growth at 15 percent rate come from an increasing market share
continuously from 2000-2005 at average rate of 10-15 percent and the lower
purchasing power of consumers who switch to use the lower price products. Thus, the
lower prices local brands have chances to introduce themselves to users who seek
other brands (Housing Brands attacked 2006).
Since liquid dishwashing products are becoming more and more important
products for household used and fewer competitors compete in the market, the market
is still one of a very attractive market for the new producer. This study therefore, aims
to study market demand and perception of prospective customers in order to launch a
new brand of liquid dishwashing product into Thailand market.
Consumer insight: Reaching consumers mind, what they are thinking, what
make they think like that, how the react to it (Kotler & Keller, 2006).
Cognitive component: learning, belief about object (Kotler & Keller, 2006).
Affective Component: feeling or emotional reactions to the object after
learning the object (Kotler & Keller, 2006.).
Behavioral Component: reaction to the object (Kotler & Keller, 2006.)
Sample: a piece or limited quantity of material, usually from a larger amount,
taken or provided for testing, analysis, inspection, demonstration, or trial use (Kotler
& Keller, 2006).
Stratified Random Sampling (SRTR): the population is first divided into a
number of parts or 'strata' according to some characteristic, chosen to be related to the
major variables being studied (Kotler & Keller, 2006).
Financial forecast: Planning about finance, Profit and Loss, the investment.
(Kotler & Keller, 2006)
Bargaining Power: the ability to set prices or (nominal) wages, usually
arising from some sort of monopoly or monopsony position -- or a non-equilibrium
situation in market (http://www.investordictionary.com.).
Fiscal: Financial (Kotler & Keller, 2006).
Brand Loyalty: Brands that consumers generally buy from the same
manufacturer repeatedly over time rather than buying from multiple suppliers within
the category. It also refers to the degree to which a consumer consistently purchases
the same brand within a product class ( Kotler & Keller, 2006).
Chapter 2
Literature Reviews
This chapter discusses about theories and reviews of past researches that make
strong supports to this project. Theories employed in the chapter are consumer
insight, attitude component, learning, qualitative research, BCG matrix, and Martin
Fishbeins Model these support fundamental backgrounds to this project study.
2.1 Theory
2.1.1 Product life cycle.
Dishwashing product is one of consumer products that are fast moving goods.
The products have short life cycle which makes opportunity for new brands to be
introduced in the markets. The competitive within this market rely heavily on pricing.
If on brand is to reduce price, others brands would also do the same. In the mean time,
the leader in the market also has to play with pricing strategy to maintain their
leadership. Anurit (2005) stated that every product has its life cycle period that can be
separated as introduction, growth, maturity, and declining period. Characteristics of
liquid dishwashing product cycle is no different from other products being sold in the
market as the products are part of consumer group of products, it is belief that they
also have short life cycle. Thus, the product life cycle are described as follow.
Introduction period is beginning when new product launching to be introduced
in the market. In this period, the methods of promotion are many activities these will
be occurred. Moreover, these activities will build brand equity of product up as well.
Growth period is period that company is growing up. It can be seen from
revenue and market share, because of awareness of consumers that makes purchasing
product to be occurred and re-buying until to be buzz marketing.
Maturity period is full in the marketing. There is no outstanding in attracting
to buy product and many competitors can produce the copied product that has more
quality and cheaper the existing product. They make loyal customers to change their
mind to buy the new one.
Declining period likes an old person who is waiting for retirement. In this
period, the products have stayed long time. The company has to create the new
product to be maintaining the positioning, brand image, and market leadership.
promise success or at least safety in such situations. These individuals would be likely
to have favorable attitudes toward popular brands and styles of clothes and to use
personal care products such as deodorants, dandruff shampoo, and mouth-wash.
Hawkins, Best, and Coney, (2001) found that any given attitude can perform multiple
functions, though one may predominate. Marketers need to be aware of the function
that attitudes relevant to the purchase and use of their brands fulfill or could fulfill for
their target markets
Stimuli:
Products,
situations,
retail outlets,
sales
personnel,
advertisemen
ts, and other
attitude
objects
Component
Component manifestation
Affective
Emotions or Feelings
about specific
attributes
Cognitive
Learning about
specific attributes or
overall object
Behavior
Behavioral intentions
with respect to
specific attributes or
overall object
Attitude
Overall
orientation
toward
object
each belief is; and the easier it is for the individual to retrieve or recall the beliefs, the
more favorable the overall cognitive component is presumed to be. And, since all of
the components of an attitude are generally consistent, the more favorable the overall
attitude is. This logic underlies what is known as the multi attribute attitude model.
1) Cognitive component
The cognitive component consists of a consumers beliefs about an object. For
most attitude objects, we have a number of beliefs. For example, we may believe that
mountain Dew:
Is competitively priced.
2) Affective component
People feelings or emotional reactions to an object represent the affective
component of an attitude. A consumer who states, I like Diet Coke, or Diet Coke is
a terrible soda. Is expressing the results of an emotional or affective evaluation of the
product? This overall evaluation may be simply a vague, general feeling developed
without cognitive information or beliefs about the product. (Hawkins et al., 2001).
3) Behavioral component
The likelihood or tendency that an individual will undertake a specific action
or behave in a particular way with regard to the attitude object makes the consumer to
buy the product (Hawkins et al., 2001). These components are about attitude that
describes a persons consistently favorable or unfavorable evaluations, feelings, and
tendencies toward an object or idea. This theory is able to indicate what consumer
behavior comes from. It comes from learning or having experience with that brand or
product before from integrated marketing communication (IMC) whether mass media,
bill boards, out of home, or so on. And then consumer will have emotion or feeling
with that brand or product particularly. And the final process is action to that brand
and product.
Kanuk, 2007).
10
Schiffman and Kanuk (2007) described that New Product Acceptance theory
is applied for consumers who want to get benefit from each product and intend to buy.
For example, a housewife who wants to buy the dishwashing liquid product will go to
the place that sells that product aiming to buy without any awareness of marketing
promotion campaign to attract her. It is a model that proposes a consumer to form
various feelings (affects) and judgments (cognitive) as a result of exposure to an
advertisement, which in turn, affects the consumers attitude toward the Ad and
attitude toward the brand. Some consumers know a product from mass media and
buy it because of liking the advertisement to the brand.
2.1.5 Learning.
When people act, they learn. Learning involves changes in an individuals
behavior arising from experience. Most human behavior is learned. Learning theorists
believe that learning is produced through the interplay of drives, stimuli, cues,
responses, and reinforcement. A drive is a strong internal stimulus impelling action.
Cues are minor stimuli that determine when, where, and how a person responds.
Suppose you buy a dell computer. If your experience is rewarding, your response to
computers and Dell will be positively reinforced. Later on, when you want to buy a
printer, you may assume that because Dell makes good computers, Dell also makes
good printers. In other words, you generalize your response to similar stimuli. A
countertendency to generalization is discrimination. Discrimination means that the
person has learned to recognize differences in sets of similar stimuli and can adjust
responses accordingly. Learning theory teaches marketers that they can build demand
for a product by associating it with strong drives, using motivating cues, and
providing positive reinforcement. A new company can enter the market by appealing
to the same drives that competitors use and by providing similar cue configurations,
because buyers are more likely to transfer loyalty to similar brands (generalization);
or the company might design its brand to appeal to a different set of drives and offer
strong cue inducements to switch (discrimination) (Kotler & Keller, 2006).
disadvantages: The researcher has less control over a group than a one-on-one
interview, and thus time can be lost on issues irrelevant to the topic; the data are tough
to analyze because the talking is in reaction to the comments of other group members;
observers/ moderators need to be highly trained, and groups are quite variable and can
be tough to get together. (Kotler & Keller, 2006).
13
Stars condition happens when a products market share is high in a fastgrowing industry. Most producers hope that their stars condition could move to the
next step of cash cows condition. Sustaining the business unit's market leadership may
require extra cash, but this is worthwhile if that's what it takes for the unit to remain a
leader. When growth slows, stars become cash cows if they have been able to
maintain their category leadership.
2.1.8
1) Theoretical development
The Fishbein model is an adaptation of the central statement contained in
Dulanys theory of propositional control, a cognitive theory of verbal learning and
concept attainment. Fishbeins adaptation basically extended the laboratory work of
Dulany to social psychology.
reinforcement, that is, the degree to which the individual thinks a specific response
will lead to a reinforcement or reward; RSv = the supjective value of a reinforcer, that
is, the individual places on a rewaed; BH = behavioral hypothesis, that is, the degree
to which the individual believes a particular behavior is expected of the individual by
some other; MC = motivation to comply, that is, the degree of the individuals desire
to conform to a BH; and w1 are empirically determined weights.
Dulanys empirical work was carried out in laboratory experiments in which
only one RHd and BH and their respective RSv and MC were salient. These variables
were generally manipulated by an experimenter who, within the context of the
experiment, was the only influence source. Dulany (1968) reports several tests of the
model which support the assumption of additivity of independent variables as well as
the need to include BI as a moderator. The independent variables accounted for a
large proportion of the variables in BI (50-77 percent) and BI accounted for a large
proportion of the variance in B (80-88 percent).
3) Operationalization procedures
Fishbein has followed two basic steps in operationalzing the independent
constructs of his extended model: (1) determining the salient BI outcome and NB,
group and (2) scaling these constructs in terms of strengths and directions.
4) Determining saliency
Johnson, (2002) found that Fishbein (1963) determines salient behavioral
outcome according to procedures developed by Maltzman, Bogartz, and Breger
(1958). The contention is that salient outcomes-and salient outcomes only act to
influence attitudes. All other, non-salient, outcomes are meaningless and misleading
in measuring attitudes. A consumer can rate the probability that economical
operation would result from his purchase of a ford Maverick and also specify his
liking for economical operation is salient for that consumer, unless it enters into the
consumers attitude structure, it is meaningless to obtain this consumers ratings
relative to the outcome economical operation
16
relevant other for housewives, but not students. Elicition may also be salient among a
set of potential users of Ultra Brite but not Crest toothpaste. Mazis et al. (1975) have
demonstrated that predictive power is enhanced when elicited rather than
predetermined beliefs are employed. Their evidence supports the intuitively appealing
notion that salient outcomes are likely to differ across groups, products, and brands a
notion at the heart of most segmentation strategies.
5) Construct operationalization
Behavior (B) has been generally operationalized as the observation of an
individuals choice in a specific situation. For example, Bonfield (1975) used
consumer diaries to obtain self reports of fruit drink purchases. Harrell and Bennett
(1986) used prescription records provided by a trade association. Fishbein (1973) has
suggested that such one-time, dichotomous choice observations tend to be unreliable.
He suggests that research scrutiny be paid to the development of reliable behavioral
criteria, suggesting that such criteria may be found utilizing multiple behaviors or
observations of the same behavior over time. Bonfield (1975), while agreeing with
Fishbeins contention, has pointed out that longitudinal observation of the same
behavior in a natural situation allows many forces to intervene which may alter the
values of the independent constructs as well as their relative influences on the
dependent constructs. Other than B, the procedures used to measure the models
constructs have been based on semantic differential techniques (Osgood, 1957).
Representative examples of scales have been furnished by Ryan and Bonfield (1975).
6) Empirical tests of the model
David, Mathews, and Harvey (1975) suggested that the consumer behavior
model is an accurate predictor of a wide range of behavioral intentions and behavior.
A need to include BI as a moderator between he independent variables and B has been
supported. The traditional attitude toward an object, A, measure was found to be
related to B only to the extent it affected either the A or social influence components.
In all cases, A is operationalized as the sum of four semantic differential scales, all of
which were assumed to load heavily on an evaluative factor. The majority of these
studies operationalized the normative component as the sum of separate sources of
influence, model form (3), with two studies utilizing a generalized other as a single
normative referent, form (1).
18
Johnson (2002) stated that the research reviewed by Ajzen and Fishbein
(1973) does not clearly indicate whether NBp should be included in the model, form
(2). Empirical support for model form (2) has been found (Ajzen & Fishbein, 1969;
Schwartz & Tessler, 1972) although a theoretical argument concerning the nature of
NBp and its relationship with the models other variables has not been developed.
NBp is not found in the antecedent Dulany (1968) theory and appears to have been
used by Fishbein (1967) primarily as a means of investigating the nature of the
normative component. Ajzen and Fishbein (1973) reported findings suggesting NBp
is an alternative measure of BI, while, in a consumer behavior adaptation, Bonfield
(1974) found NBp and Aact to be interchangeable. Both a lack of conceptual
antecedents and conflicting empirical evidence indicate model form (2) is not
appropriate for adaptation in studies of consumer behavior. This form is also absent in
Fishbeins more current writings.
Model form (3) offers promise for adaptation in consumer behavior research.
This form of the model has strong conceptual antecedents, and consistent empirical
support (Ajzen & Fishbein, 1973). Form (3) Provides more explanatory power than
form (1) because operationalization of the normative component requires
identification of relevant others in terms of specific individual and group influences.
However, the operationalization of the attitude component with semantic differential
type scales (Aact) rather than in terms of cognitive structure (Bii) reduces the
diagnostic power of the model. That is, semantic differential scales are not clearly
related to market offering variables. At the same time, the consequences of the Bi
statements are behavioral outcomes analogous to benefits (positive or negative) of
some specified action relative to the attitude stimulus. Model form (3), exhibiting both
cognitive and normative structures, may provide a basis for developing and adjusting
market offerings congruent with existing structures, or, as Lutz (1975) suggests, using
the structural elements as a basis for implementing attitude change strategies. Due to
the previously stated measurement limitations, it is also necessary to include semantic
differential operationalizations as validating measures for the attitudinal component.
7) Marketing
A number of marketing studies testing the model have been conducted in
Great Britain (Tuck, 1973). The majority of the work has been done commercially,
however, and detailed results have been held as proprietary. Summary results from
19
five of these studies have been published (Cowling; Bright & Stammers, 1971; Bruce,
1971; Tuck and Nelson, 1969). The results of these studies suggest elicitation of
salient behavioral outcomes for specific segments and products results in higher
correlations between Aact and Bii than using predetermined lists. Aact was more
highly correlated with BI than either Ao or Bii. These findings support Fishbeins
contentions that Aact is a more appropriate predictor of BI than Ao and that elicitation
techniques are necessary. Finally, the British studies showed relative weights
associated with attitudinal and normative components of the model vary across
products and market segments. Stronger correlations between BI and Aact than
between BI and Ao have also been reported by American market researchers
(Mathews et al., 1974; Weddle & Bettman, 1973).
A number of studies conducted in the United States have been reported in
which a form or adaptation of the extended model has been tested in a marketing
context using cross sectional regression analysis as the principle analytic tool. The
major results of these studies are summarized in Table 3. The evidence from these
studies indicates the model has value in predicting and explaining variance in
intentions and behaviors over a wide range of purchase intentions and purchase
behavior. Harrell and Bennett (1974) tested the model with respect to physician
prescribing behavior, Lutz (1988), Nelson (1995) with respect to intentions toward
purchase of products of automobile manufacturers, Mathews, Wilson, and Harvey
(1974), Nelson (1995); Bonfield (1974), with respect to consumer nondurables,
Weddle and Bettman (1973) with respect to purchasing underground term papers,
Wilson, Mathews and Monoky (1973) with respect to bargaining in a personal selling
situation, and Wilson (1975) with respect to organizational buying behavior. Harrell
and Bennett (1986); Holland (2001) reported correlations between intentions and
behavior while others did not report measuring behavior.
The average correlation between BI and B across these studies was .44. The
average multiple correlation of attitude and social influence on BI was .60. Three of
these studies (Harrell & Bennett, 1974; Wilson et al., 1975; Lutz 1973a) also
employed cross validation procedures. Correlations remained high under cross
validation indicating the model yields stable predictions.
The theoretical development and empirical research testing the Fishbein
"extended" or "behavioral intentions" model are described and evaluated. Discussion
20
2.1.9 Motivation.
Kotler and Keller (2006) found that driving force within individuals that
impels them to action. This driving force is produced by a state of uncomfortable
tension, which exists as the result of an unsatisfied need. All individuals have needs,
wants, and desires. The individuals subconscious drive to reduce need and reduce
tensions results in behavior that he or she anticipates will satisfy needs and thus bring
about a more comfortable internal state.
2.1.10 Personality.
Personality can be described as the psychological characteristics that both
determine and reflect how a person responds to his or her environment. Although
personality tends to be consistent and enduring, it may change abruptly in response to
major life events, as well as gradually over time. (Kotler & Keller, 2006).
Three theories of personality are prominent in the study of consumer behavior:
psychoanalytic theory, neo-Freudian theory, and trait theory. Freuds psychoanalytic
theory provides the foundation for the study of motivational research, which operates
on the premise that human drives are largely unconscious in nature and serve to
motivate many consumer actions. Neo-Freudian theory tends to emphasize the
fundamental role of social relationship in the formation and development of
personality. And the last theory is very important for this research that is Trait theory
is a major departure from the qualitative (or subjective) approach to personality
measurement. It postulates that individuals possess innate psychological traits (e.g.,
innovativeness, novelty seeking, need for cognition, materialism) to a greater or lesser
degree, and that these traits can be measured by specially designed scales or
inventories. (Kotler & Keller, 2006).
2.1.11 Perception.
Perception is the process by which individuals selects, organize, and interpret
stimuli into a meaningful and coherent picture of the world. Perception has strategy
implications for marketers because consumers make decisions based on what they
perceive rather than on the basis of objective reality. Consumers often perceive risk
21
director, but in some part of the brand's make-up that consumers feel is really special.
That is why, more than ever, marketers are reaching for market research to guide
product development and suggest interesting hooks on which to hang their branding.
What brand owners need, however, is not mechanical data gathering, but genuine
psychological insight to help them understand people, not simply as consumers
wielding check books, but as human beings. (Marketing Week, 2006.)
Kerri Walsh (2003) revealed that North American surfactant consumption in
consumer products was 4.375 billion lbs last year, valued at $3.6 billion last year and
will grow at 3%/year through 2010, according to a study. Surfactants were used in
25.5 billion lbs of consumer products, worth $42.5 billion. Surfactant consumption in
household products will grow faster than the consumer products sector because of the
overall trend toward ultra laundry and dishwashing products, which have a higher
concentration of surfactants and use less detergent in each load.
It could be summarized that the above theories including consumer insight,
attitude components, learning, BCG matrix and Martin Fishbeins model. They are
also theories the explained about buying behavior of reasonable action theories.
These theories focus on the step by step to learning the new things.
They are
supporters to the researcher idea that the buying behavior occur from the learning to
build up the knowledge and then effect on the emotion of consumer and last one the
action to respond the wanting. The past research in this chapter is a data to support
this research that the product testing is one of the best ways to allow us to know the
consumer insight. Which finally inform marketers of their preference on the new
products.
23
Chapter 3
Methodology
Pre-test and post-test survey method were used to investigate and
identification customers characteristics prior to the process of clustering them into
groups (market segmentation), and then analyze product/brand attributes that
influence consumers choices and understanding relationship between target
consumer and related marketing factors.
24
Means
Interval level
4.21 5.00
Strongly agree
3.41 4.20
Agree
25
2.61 3.40
Neutral
1.81 2.60
Disagree
1.00 1.80
Strongly disagree
26
Chapter 4
Data Analysis
This chapter presented the finding from Five Forces analysis, SWOT analysis,
BCG matrix analysis, and STP. The chapter also presented finding from in-deptinterview and other tests as stated below. The collected data collected from users and
sellers were analyzed using descriptive analysis to study the direction of this business.
Financial analysis also employed to forecast financial condition of the new launching
liquid dishwashing brand, and the results were presented below:
Supplier is able
to make cost to
be high since
our brand is
new to the
market.
Pricing strategy,
quality, and
distribution
channels.
It is difficult to lead
customers to accept the
new brand since they
have other brands in
their mind.
Figure 4.1 Five Forces Analysis of Liquid Dishwashing Product
27
specified that the product price should not exceed 30 baht for 800 ml. bottle and refill
package price should not exceed 20 baht. Sales promotion can be one factor that
persuades the customer to buy both trail and re-purchase. There are several brands in
this market, thus, consumers would select the best product whether price or product.
It means that there is the opportunity that consumers will switch or try the new brand,
but also still select their existing brands.
Most of consumer can get the dishwashing products information from mass
media particularly TV advertising since it is the effective way to reach consumer
widely. While other advertising such as magazine and radio are used to support
advertisings. The consumers also stated that brand switching can be happen since
they have more choices to try in the market. Strong advertising and sales promotion
when launching the new brand will make them want to try it. Liquid dishwashing
product is one of consumer products that are easy to decide to buy because of not
expensive and less problem for consumer to try. Since liquid dishwashing product is
not significantly different in term of product performance of each brand, prices and
sales promotion will affect more on customers decision.
and breaking. Channel is very important. The distribution channels that are good for
selling liquid dishwashing products are supermarket which located in department
stores, super stores (Macro, Lotus, Carefour, and Big-C), and convenient stores (7eleven, mini mart). The fees charged by the above distribution channel may be
varying rates that will result in the price different and finally will cause higher costs.
The new comer has to have long term financial support because they have to take
quite long time to change the consumers attitude toward new brand. The new comer
has to learn the regulations and laws that apply on consumer products with regard to
ingredient, product standard, certificate, and so on in order to gain the competitive
advantages.
In could be concluded that consumers and competitors are the major barriers
in launching the new brand of liquid dishwashing product into the market. The new
comer has to prepare well about their marketing strategies that are suitable for the
target consumers to try its product and hast to make them to appreciate in the product
and then to create the strategies to protect the market from competitors attacks.
High
Stars
Low
High
Question Marks
Sunlight
Lipon F
Cash Cows
Other Brands and
New Brand
Dogs
30
the solutions, or do anything that should be the best to the company. The findings
were stated below:
The results from reviews of literature found that Sunlight is in Stars position
since it is the market leader and obtained majority part of market share. Consumers
who use this brand also have high level of brand loyalty. The findings from this study
found that majority of the respondents who regularly use Sunlight are middle income,
and they stated Sunlight are their first choice brand.
Lipon F is also in the question mark position because this brand is well
known, but has less brand loyalty that result in less replete buying. More than half of
the respondent recognized Lipon F and had used to try the brand before hoping to
switch the brand. But no one switched from their previous brands because they stated
that the products quality was similar or lower than their existing brand.
In regard to housing brands and local brands, we found that they were in the
Cash Cows position. There were several reasons to support our findings. First, the
brands have low market share in a middle high-growing industry. The results found
that the brands lacked of brand loyalty from consumers. The respondents stated that
they preferred to buy the exit brands that they trust and familiar with. The target
markets for house brands liquid dishwashing products are consumers who prefer to
use low price products and new group of consumers since these groups of consumers
are price sensitive. The groups though the purpose of using this product is for
washing dish and glass only.
Product.
The results from pre-test and post-test of focused groups opinions stated that
the new product should have 3 significant features the related to the consumers
satisfactions; first efficiency to clean oil, second good scent, and third are not harmful
to users skin. The new liquid dishwashing product that used to test in this study
seemed to have all of the three features.
respondents found that the product was good scent, good quality, and packaging is
attractive (colorful & give information).
consumers selection and finally makes them to select the liquid dishwashing product.
31
4.4.2 Price.
The results from this study show that the respondents are price sensitive.
Their selections are based on prices of products. After, they tested the example
product; they think that its reasonable price should stand at 30 baht for 270ml. bottle
and 15-25 for a 400 ml. refill package. The difference of quantity in each package
can indicate how much its price should be. The consumers recognized the products
price whether it was cheap or expensive from their experience. The consumers also
stated that the producer should offer dishwashing products in several sizes of
packages and sell them at different prices.
packaging, brand name, and positioning in the market. They are in this market long
time and gain brand loyalty from consumers.
Price: The price is set up by them as market leaders. Respondents do not
know how much it should be, but they use the market leader prices to be standard
price when comparing prices with other brands.
Place: For channel, competitors distributed their products in many places
where consumers can easily buy.
4.5.3
Opportunities of competitors.
Sunlight and Lipon-F were large and firm companies with strong financial
support for their operations. In the economic down turn the companies could spend
more budgets on their marketing promotion activities. Also, their strong relationships
with distributors could create strong support to their sales.
34
Competitors
- New product
- Strong reputation
- Experience
and
know
feedback
faster.
Weakness
Lack
of
confident
from
distributors.
Opportunity
that
depends
on
promotion.
consumer demand.
35
Threat
loyalty.
system.
because
of
capital.
Frequency
Percent
8
17
17
18
60
13.34
28.33
28.33
30.00
100.00
Result from Table 4.1 indicates that most of respondent are students (30
percent), followed by private and government officers (28.33 percent equally), and the
last one is group of housewife (13.34 percent).
Table 4.2 Demographic Profiles Classified by Income
Income level
0-10,000 Baht
10,001-15,000 Baht
15,001-20,000 Baht
Frequency
22
18
8
Percent
36.67
30.00
13.33
20,001-25,000 Baht
More than 25,000
Total
5
7
60
8.33
11.67
100.00
Results from table 4.2 stated that majority of the respondents have income
between 0-10,000 baht per month (36.67 percent), follow by 10,001-15,000 baht per
month (30.00percent), 15,001-20,000 (13.33percent), more than 25,000 (11.67
percent), and 20,001-25,000 (8.33 percent).
36
Frequency
37
Percent
61.67
23
60
38.33
100.00
The most of respondents stay at house or townhouse 61.67 percent more than
condominium or apartment 38.33 percent as the above table.
Table 4.4 Types of Ownerships
Status
Owner
Frequency
10
Percent
16.67
Dependant
Lease
29
21
48.33
35.00
Total
60
100.00
Results from table 4.4 stated that majority or 48.33 percent of the respondent
were dependants followed by lease of 35 percent, and 16.67 percent of them were
owner of residents.
It could be concluded that majority of the respondents were females who
worked in government offices in Bangkok. Up to 85 percent of the respondents were
working women with income levels average 15,000 baht per month. They lived as
dependant in houses or townhouse.
Std. Error
0.63
0.12
0.10
0.32
0.23
Beta
-0.33
-0.24
0.15
-0.11
T
4.28
-2.53
-1.84
0.92
-0.69
Sig.
0.00
0.01
0.07
0.36
0.49
The results from Table 4.5 indicated that there were significant relationships
between respondents occupation and income with brand perception. The results,
37
therefore, rejected theHo1 and accepted H1 which stated that there was a significant
relationship between respondents demographic profiles and perception of brand.
4.7.3
Beta
-0.42
-0.19
0.09
-0.19
T
5.29
-3.32
-1.50
0.57
-1.23
Sig.
0.00
0.00
0.14
0.57
0.22
The results from Table 4.6 indicated that there were significant relationships
between respondents occupation and types of communication media to receive
information about consumer products. The results, therefore, rejected theHo2 and
accepted H2 which stated that there is a significant relationship between respondents
demographic profiles and types of communication media to receive information about
consumer products.
4.7.4
Media ranking.
Table 4.7 Types of Media that the Respondents Received News and
Information about the Products
Selection
T.V.
Point of Purchase
Reference person
Billboard
Newspaper
Magazine
Radio
Theater
Other
Percent
24.5
16.5
12
11
10
9.5
7.5
6.5
2.5
38
Ranking
1
2
3
4
5
6
7
8
9
Percent
17.18
12.27
11.66
9.82
7.98
7.06
7.06
6.44
5.83
5.52
4.91
4.29
Ranking
1
2
3
4
5
6
6
7
8
9
10
11
12
The first reasons the customers gave for their repeat purchasing of liquid
dishwashing product 17.18 percent was the quality of the product, followed by price
12.27 percent, location of stores 1166 percent, odor 9.82, brand 7.98 percent,
advertising and skincare 7.06 percent equally, quantity 6.44 percent, promotion 5.98
percent, packaging 5.52, environmental friendly 4.91 percent and being introduced by
others 4.29 percent.
39
4.8.2
Distribution channels.
Percent
25.65
22.51
19.37
15.18
8.90
7.85
0.52
Ranking
1
2
3
4
5
6
7
Super store was the first choice (25.65 percent) for consumers to purchase
dishwashing products followed by supermarket 22.51 percent, convenient store 19.37
percent, grocery shop 15.18 percent, mini-mart 8.90 percent, direct sales 7.85 percent,
and others 0.52 percent.
4.8.3
Frequency
Percent
1-2 bottles
54
90.00
3-6 bottles
8.33
7-12 bottles
1
60
1.67
100.0
Total
Most respondents (90 percent) prefer to buy 1-2 bottles of liquid dishwashing
product per purchase, 8.33 percent of them purchase 3 6 bottles, and only 1.67
percent purchase more than 6 bottles per purchase.
Table 4.11 Frequency of Purchasing per Month
Frequency
Frequency
Percent
Once a month
38
63.33
Twice a month
17
28.33
Others
8.34
Total
60
100.00
40
63.33 percent of consumers purchase the product once a month and 28.33
percent of them purchase twice a month.
Table 4.12 Price per Unit of Product Purchased
Price per unit
Frequency
Percent
0-30 Baht
36
60.00
31-40 Baht
17
28.33
41-50 Baht
3.33
51-70 Baht
3.33
5.00
Total
60
100.00
The suitable price that the most of respondents prefer is 0-30 baht up to 60
percent.
Table 4.13 Types of Packaging
Packaging
Frequency
Percent
25
41.67
34
56.67
1.67
Bottle
Refill package
Total
The most respondents like to buy a few of bottles to 90 percent that its price is
not over 30 baht to 60 percent as table 10 and 12, and frequency to buy within a
month around 63.33percent as table 11, and like to buy the refill because of its
cheaper price around 56.67 percent as table 4.13.
4.9
Promotion
4.9.1
Table 4.14 The Reasons that Influenced the Respondents to Switch to the
New Brand
Promotion
Discount price
Premium quality
41
Percent
Ranking
18.67
16.18
1
2
Giving sample
Coupon
15.77
12.86
3
4
Point of Purchase
Advertising Specialties
9.96
9.96
5
5
Sweepstakes
Games
8.30
7.47
6
7
Others
0.83
The results from Table 4.14 indicated that main reasons that respondents
would try other brand was discount price (18.67 percent), followed by premium
quality (16.18 percent), and the third one was giving sample product (15.77 percent),
coupon (12.86 percent), point of purchase (9.96 percent), advertising specialties (9.96
percent), sweepstakes (8.30 percent), games (7.47 percent), and others (0.83 percent),.
Frequency
Percent
40
66.67
20
33.33
60
100.00
The result of table 15 stated that the most of respondents or 66.67 percent of
the total were willing to try new brand while 33.33 percent were not willing.
Table 4.16 Rationales for Trying New Brands
Rationale of Trying New Brand
New product with innovation
Lower Price
Just want to try
Convenient place to buy
Following recommendations
Promotion
Advertising
Others
Packaging
Frequency
10
8
7
6
2
2
2
2
1
42
Percent
16.67
13.33
11.67
10.00
3.33
3.33
3.33
3.33
1.67
No answer
Total
20
60
33.33
100.00
Results from Table 16 stated that 16.67 percent of respondents were willing to
try the new brand because of the new product had innovation, followed by lower price
13.33 percent and just try 11.67 percent Convenient place to buy Following
recommendations Promotion Advertising Packaging
Table 4.17 Respondents Willingness to Switch Brand
Switching Brand
Frequency
Percent
20
33.33
20
33.33
20
33.33
60
100.00
Yes
No
No answer
Total
According to, many respondents around 66.67 percent have ever tried the new
brand that switched brand around 33.33 percent and not 33.33 percent. The results
stated that majority of the liquid dishwashing products customers were willing to
remain using the existing brands while the rest are willing to switch to the new
brands.
Chi-Square
Df
Sig.
32.40
36.40
15.83
42.67
3
3
4
4
0.00
0.00
0.003
0.00
43
Chi-Square
Df
Sig.
16.17
19.17
34.50
27.83
4
4
4
4
0.003
0.001
0.000
0.000
The results from Table 4.18 and 4.18.1 indicated that there is no significant
difference of respondents attitude toward the product feature. The results, therefore,
accepted the Ho1: which stated that there is no significant difference of respondents
attitude toward the product feature.
Table 4.19 The Attitude of Respondents towards to Prices after Using
Price
23 Baht for refill 220ml. package
10 Baht for a bottle of 50 ml.
30 Baht for a bottle of 270 ml.
Chi-Square
Df
Sig.
19.83
42.17
19.83
4
4
4
0.001
0.000
0.001
The results from Table 4.19 indicated that there is no significant different of
respondents attitude toward the price in each size. The results, therefore, accepted
the Ho1 which stated that there is no a significant difference of respondents attitude
toward the price in each package.
Table 4.20 The Attitude of Respondents towards to their Desire after Using
Desire
Like new product but not change from current brand
Satisfy with the quality of the new brand
Want to switch brand to use the new brand
Chi-Square
Df
Sig.
41.83
33.33
21.33
4
4
4
0.000
0.000
0.000
The results from Table 4.20 indicated that there is a significant difference of
respondents attitude toward their desire. The results, therefore, rejected the Ho2 and
accepted H2 which stated that there is a significant difference of respondents attitude
toward desire.
44
4.11
Depth Interview
4.11.1 Pre-test depth interview (before trying the new brand).
From the 60 respondents, there are 40 respondents who have ever tried the
new brands, and 20 respondents who have never tried the new brands in this
collecting the data. In this study, the researcher separated three groups that are first
group is for who have ever tried the new brands and switched to the one, second
group is for who have ever tried the new brands, but did not switch to the one, last
group is for who have never tried the new brands.
The reasons of respondents in the first group switched to the new brands(20
respondents) are quality up to 30.77 percent, followed by new product to 19.23
percent, pricing to 15.38 percent, easy to purchase, treatment of users skin, and nice
odor to 7.69 percent equally, and also 3.85 percent of different odor, trend, and
natural ingredient. The qualification of liquid dishwashing product should be for this
group that is quality that eliminate dirty to 25percent, followed by nice odor and
taking care of users skin to 15.91 percent equally, free for chemical on dishes to 9.09
percent, 6.82 of easy to wash out come to be next, pricing, productive standard, and
environmental friendly to 4.55 percent equally, and also 2.27 percent of interesting
advertisement, easy to use, different odor, natural ingredient, intensive of ingredient,
and packaging.
For the second group, the reasons of respondents have still selected their
existing brands (20 respondents) are the better quality of the existing brands up to 55
percent, followed by brand loyalty just 10 percent and 5 percent of preference in the
existing brand, free for odor, the same quality, less of intensive ingredient, odor,
harmful for skin, and more expensive.
product should be for this group that is quality that eliminate the fat and dirty up to 30
percent, followed by treatment for hand skin to 15 percent, nice odor and free for odor
on dishes to 10 percent equally, 7.5 percent of easy to wash out and free for chemical,
followed by natural ingredient, environmental friendly, and pricing just 5 percent, and
also 2.5 percent of quantity and more intensive ingredients.
For the last group, the reasons of respondents who have never tried any new
brand (20 respondents) are 40 percent of brand loyalty, 30 percent of same quality and
also better quality of existing brand equally. The qualification of liquid dishwashing
product should be for this group that is quality to 37.5 percent, and 12.5 percent of
nice odor, easy to wash out, natural odor and taking care of hand skin. For this group
45
is quite less to analysis, but one thing that same with other group is quality of product
to destroy dirty and fat, treatment of hand skin, nice odor, easy to wash out, and
natural odor.
4.11.2 Post test depth interview (after trying the new brand).
Means
Interval level
4.21 5.00
Strongly agree
3.41 4.20
Agree
2.61 3.40
Neutral
1.81 2.60
Disagree
1.00 1.80
Strongly disagree
Table 4.21 Results of Respondents Who Used to Tried Other Brands and
Used to Switch to the Other Brands
Factors to be considered
Used to switched
Mean
SD
3.75
3.95
3.25
3.40
2.85
3.95
3.55
3.20
3.05
3.55
2.85
0.64
0.76
1.33
0.99
1.23
1.10
1.10
0.83
1.15
0.89
1.14
3.10
3.30
2.85
0.79
0.86
1.04
Table 4.22 Results of Respondents Who Used to Tried Other Brands, but not
Switch to the Other Brands
Factors to be considered
Not switched
Mean
SD
3.65
3.65
3.50
3.60
0.67
0.59
0.95
0.75
2.25
3.60
3.75
3.40
3.30
3.40
3.25
1.21
1.05
0.85
0.99
1.08
0.94
1.25
3.45
3.45
3.05
0.89
0.94
1.05
Table 4.23 Results of Respondents Who never Used to Tried Other Brands
Factors to be considered
Never tried
Mean
SD
3.55
4.00
3.10
3.45
2.30
3.45
3.60
3.00
3.60
3.55
3.75
0.89
0.73
1.41
1.00
1.17
1.39
1.10
0.97
0.94
1.15
0.91
3.10
3.35
3.10
0.79
0.93
1.02
Used to
switched
Mean level
Not switched
Never tried
Mean
level
Mean
level
3.75
3.95
3.25
3.40
2.85
3.95
3.55
3.20
Agree
Agree
Neutral
Neutral
Neutral
Agree
Agree
Neutral
3.65
3.65
3.50
3.60
2.25
3.60
3.75
3.40
Agree
Agree
Agree
Agree
Disagree
Agree
Agree
Neutral
3.55
4.00
3.10
3.45
2.30
3.45
3.60
3.00
Agree
Agree
Neutral
Agree
Disagree
Agree
Agree
Neutral
3.05
3.55
Neutral
Agree
3.30
3.40
Neutral
Neutral
3.60
3.55
Agree
Agree
47
50 ml.
The price is 30 Baht for a bottle of
270 ml.
Want this product but would not
change from current brand.
Satisfy with the quality of the
sample product
Want to switch to use the sample
product
2.85
Neutral
3.25
Neutral
3.75
Agree
3.10
Neutral
3.45
Agree
3.10
Neutral
3.30
Neutral
3.45
Agree
3.35
Neutral
2.85
Neutral
3.05
Neutral
3.10
Neutral
Information from Table 4.21 presented post-tested results of trying the sample
of new liquid dishwashing product by three groups of respondents composing of
group one, the respondents who used to switched using other brands before, group
two, were those who had experience of trying other brands but went back to use to
previous brands, last group were the respondents who never tried other brands before.
The results were presented as follow:
48
3.25), followed by the group who had no experience of trying other brand before was
least concern about the odor at neutral level (mean = 3.10).
8) Friendly to skin
The respondents who had experience of trying other brands before, but not
switch were concern more about the friendliness to skin of the liquid dishwashing
products at neutral level (mean = 3.40), followed by the group who used to switch to
use other brands was concern about the friendliness at neutral level (mean = 3.20),
and also the group who had no experience of trying other brand before was least
concern about the friendliness at neutral level (mean = 3.00).
50
12) Want to switch to use the sample product (new brand) but did not want
to switch from current brand
The respondents who had experience of using other brands before but did not
switch to other brands stated that they wanted to use the new brand but did not want
to leave the current brand at agreed level (mean = 3.45). The respondents who had
experience of using other brands before stated that they want to use the new brand but
did not wanted to leave the current brand at neutral level (mean = 3.10). The
respondents who had no experience of trying other brands before stated that they
wanted to use the new brand but did not want to leave the current brand at neutral
level (mean = 3.10).
4.12
Financial Analysis
4.12.1 Revenues forecasting.
Assume that the users buy one bottle of dishwashing liquid product per month
Normal growth
Optimistic growth
Year
2007F
2008F
2009F
2010F
2011F
Sales (Pessimistic)
52,441
49,819
47,328
44,962
42,714
Sales
52,441
55,063
57,816
60,707
63,743
Sales (optimistic)
52,441
57,685
63,454
69,799
76,779
52
Table 4.26 The Table Indicates the Cash Flow for 5 Years
X 1000
baht
Year
Initial Stage
2008F
2009F
2010F
2011F
(20,000)
(7,491)
5,643
5,926
6,222
52,441
55,063
57,816
60,707
63,743
52,441
55,063
57,816
60,707
63,743
32,441
47,572
49,951
52,448
55,071
25,284
26,548
27,876
29,270
30,733
1,298
1,363
1,431
1,503
1,578
1,000
1,050
1,103
1,158
1,216
4,050
4,253
4,465
4,688
4,923
6,000
6,300
6,615
6,946
7,293
1,800
1,890
1,985
2,084
2,188
500
525
551
579
608
Cash inflow
Sales
Total Cash Flow
Available Cash Balance
Cash Outflow
Initial Investment
(20,000)
(20,000)
39,932
41,929
44,025
46,227
48,538
(20,000)
(7,491)
5,643
5,926
6,222
6,533
53
Table 4.27
Year
Sales (156,075x28)x12
Cost of Good Sold (13.5)
Gross Profit
2007F
2008F
2009F
2010F
2011F
52,441
55,063
57,816
60,707
63,743
25,284
26,548
27,876
29,270
30,733
27,157
28,515
29,941
31,438
33,010
Operating Expenses
Sale commission
(5%/unit)
12,000
12,600
13,230
13,892
14,586
1,573
1,652
1,734
1,821
1,912
1,000
1,050
1,103
1,158
1,216
4,050
4,253
4,465
4,688
4,923
6,000
6,300
6,615
6,946
7,293
Research and
development
Administrative Expenses
Promotion and
Advertisement
(Coupon 4 baht/unit)
Total operating expenses
Operating Income
24,623
25,854
27,147
28,504
Interest paid(MLR+1%)
29,930
-
2,534
2,661
2,794
2,933
3,080
1,700
1,785
1,874
1,968
2,066
(20,000x1000)
4.12.4 Human resource management.
The company will be divided into the following department: sales, marketing,
employ around 10 people to run the whole business as below. They are under directly
to managing director of the company.
54
No. of employee
1
2
1
2
2
2
10
Total
30,000
60,000
30,000
40,000
60,000
50,000
270,000
In conclusion, the respondents are decision makers and users to be the most,
just users, and decision maker only to be come second and third respectively. They,
moreover, have attitude toward their product and after trial the new product in quite
similar whether known their exiting brand, changing to try the new one, even if
satisfaction in the trial product expect the group of just users. They are unsatisfied the
product after trail, but not much. For the product feature, they feel that is not the
same with their product.
respondents to unsatisfied. Fiscal forecast, moreover, for five years that base on these
data. For summarization of all data, it will be occur in the next chapter.
55
Chapter 5
Conclusions and Recommendations
The study used depth interview of 40 respondents who are the decision makers
or users or both of liquid dishwashing products as samples. Form the interview, the
researcher found that the respondents can be separated three groups that are
respondents who have ever trial the new product and switched to the ones already,
have ever trial the new product, but did not switch to the new ones, and never trial the
new ones for behavior and attitude analysis. Descriptive and inferential statistics
were employed to describe demographic data and behavior of the respondents test
hypotheses. Financial analysis was employed to analyze the financial projection of the
new product launching.
The results revealed that the three big groups of respondent have similar
learning, thinking, and attitude toward the new product. Television is the best media
to make the customer to be aware of the products news and information. When
regard to the product factors, the results revealed that quality and price influenced the
customers in their decision to purchase. They want to get the dishwashing liquid
product that is cleanness, easy to wash, and reasonable price.
Most customers
expected that price of the new product to be the same standard as their existing
brands. The new brand has to be launched the product with same or lower price with
good promotion and quality to be attractive and making them to switch to another
brand. Also advertisement on T.V. was the first choice to promote and introduce the
product at the first time.
Majority of the respondents are very sensitive to price, the new comer, thus,
should offer the good promotion whether discount or premiums to attract them to try
and switch the brand. Thai culture is collectivism, so buzz marketing is worked
effectively. The new brand should have demonstration the product in the fairs to
make consumers to clear in the new product performance and prevent the doubt in the
new brand.
Based on the results from depth interviews results, we found that many
customers are ready or want to switch to use the new brand. It means that out of
2,952,999 people of female consumers in Bangkok, there will be 738,250 people of
potential customers as chapter 4. And then, calculation of populations who buy it in
56
Superstore, Super market in department store, and grocery shop, the result is 468, 272
people. Consumers will buy the product around 33.33 percent of them as the result of
this research that there are 20 respondents from 60 respondents who ready to switch to
the product as below table. Thus, this study can predict that potential customers who
will buy the product from them around 156,075 people that means 156,075 bottle per
month. Its revenue is 52,441,200 baht that comes from sales 156,075 bottles per
month with 28 baht. And about the growth rate is around 5 percent as market
expending. The breakeven will be come up within 5 years.
Group
Ever switch
Ever trail, but not
1
6
5
4
2
switch
Never trial
1
5
8
8
1
Total
5
14
20
17
3
Figure 5.1 Figure of Respondents Want to Switch to the New Brand
Total
17
19
4
60
For the new brand, the study found that it should have performance as same as
or more the existing products or have some advantage to be outstanding in order to
attract the consumers who are innovativeness. The next is launching the new brand
on T.V. as three hits theory and also booth exhibition. For its price should be close
with the market price, but include good promotions that is giving some discount and
have premium to attract the followers. The suitable distribution channels are super
markets in department store and superstores.
Recommendations
Information collected from survey questionnaires and in dept interviews were
analyzed and concluded in each category as presented below:
Liquid dishwashing product market will be expend continuously following
other types of consumer products because the population growth rate increasing and
customers are always seeking for a new brand that could satisfy their needs, and if the
new brand can offer them the better price and quality. The product is one of the most
fast moving goods in the consumer product industry. Market is easy to enter, but
57
difficult to survive, because the new comer has to launch the better or same quality
with lower price and better marketing promotion campaigns. The producer must
spend time and money to build up its brand and spend more time to educate
consumers about the products. However, the new product that has never been sold in
the market might be hard to enter this market and survive at the introduction stage.
The new brand will face with high cost of distribution that at present already
carry many brands in their hands. Thus, the new brand producer has to reduce cost of
distributions and spend more budgets for marketing promotion activities. The
producer also has to focus on the products quality and products innovation.
Although, most of consumers are price sensitive, but once they compare the quality of
product at similar prices, they would be more opportunity for higher quality product
to be sold if the consumers feel the new product could satisfy their needs.
58
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60
Appendix A
Screening Questionnaire (English)
And
Moderator Guide (English)
Shinawatra University
Questionnaires
A FEASIBILITY STUDY OF LAUNCHING LIQUID
DISHWASHING PRODUCT
61
SCREENING QUESTIONNAIRE
______
Questionnaire No.
Name:
Last Name:
Gender: Female
Address
Tel:
1. Home (
3. Mobile: (
ext.
)
Interviewer:
ID:
Supervisor:
Evaluation:
2. Office (
4.Pager (
ext.
Quality Review:
Hello, I am
, an interviewer from the Shinawatra International
University. I would like you to answer these question to collect the data of this
project. This survey will take approximately 10 minutes of your time. As a user and
buyer, your opinions are very important to us. Remember, there are no right or
wrong answers to these questions that we ask you, but rather it is your opinion that
we are seeking. And the information that you provide is strictly confidential.
Date
Record Time Start:
62
__/___/____
__:__
Housewife
Private Company
Government/State Enterprise
Student
Entrepreneur
No Job
0-10,000 Baht
10,001-15,000 Baht
15,001-20,000 Baht
20,001-25,000 Baht
More than 25,001 Baht
1. Yes
2. No
63
S9. Please specify the brand of the dishwashing liquid product in which you are the
main user.
__________(Brand)____________
S10. What media do you known the brand that you currently use it?
1.
2.
3.
4.
5.
6.
7.
8.
9.
Radio
T.V.
Magazine
Billboard
Newspaper
Movie Theater
Reference persons
Location on shelf
Other.
S11. What medias make you to decide to buy the brand? (uses S10 to rank)
S12. Why have you used that product? (please rank)
1. Quality
2. Price
3. Packaging
4. Skin Care
5. Quantity
6. Suggestion
7. Advertising
8. Easy to buy (Location)
9. Promotion
10. Brand
11. Smell
12. Environmental Friendly
13. Other..
S13. Where have you bought the product? (please rank)
64
1. Grocery Shop
2. Convenient Store (7-11, Mini-marts)
3. Supermarket in Department Store
4. Superstore (Makro, Tesco-Lotus, Carrefour, Big-C and so on)
5. Mini-Marts in gasoline station
6. Direct Sale (Amway, Giffarine, so on)
7. Other.
1-2 bottles
3-6 bottles
7-12 bottles
More than 12 bottles
0-30 Baht
31-40 Baht
41-50 Baht
51-70 Baht
More than 71 Baht
Bottle
Refill
Mini-Bottle
Other
S18. What kinds of promotion which make your want to change to another brand?
(please rank)
1. Point of Purchase
2. Discount
3. Sweepstakes
4. Games
65
5. Premiums
6. Advertising Specialties
7. Coupons
8. Sample
9. Other
1. Yes
2. No
Suggestion
Promotion
Lower Price
Just try
Packaging
New product
Place
Advertising
Other
66
Moderator Guide
Testing Dishwashing Liquid Product
Phase I
Give the
questionnaire
20 minutes
A speech advise and thank to attend this
researching includes to inform the objective
of sharing conversation that this
conversations will take time about 90
minutes.
To request your answers the questions to
follow your opinion has no wrong or right
answers your opinion only is the thing that us
wants to know.
All your answer will use for the research
only.
The questions are: your name is / How old
are you / an occupation is / how often you use
or buy it/ Which qualify do you select (cheap,
good, or so on)?
Ask the respondents about the qualification of
the product that there are affect on your
buying behavior. For example, Brand, color
of product, packaging, price, and smelling
Phase II-Design
120 minutes
Explain step by step to do this research.
Start to wash a dish for our product and a dish
for other one (5 minute per person)
Which one finished gives the questionnaire to
investigate the attitude.
Phase III
20 minutes
Thank you and pay the opportunity cost or
souvenir
67
Questionnaire
Group#
No#
After you test the new product, How do you feel with our product?
5= Strongly Agree
4= Agree
3= Moderate
2= Disagree
1= Strongly Disagree
Part I Psychical Attitude
Most
Least
1
Packaging of the product
5
4 3 2
1
2
Color of the product
5
4 3 2
1
3
Smell of the product
5
4 3 2
1
4
Time using to clean
5
4 3 2
1
5
Have any effect on your
5
4 3 2
1
skin
6
Easy to wash out
5
4 3 2
1
7
The dish is clean
5
4 3 2
1
8
Friendly to your skin
5
4 3 2
1
Part
Value for Money
II
1
The price is 23 Baht for
5
4 3 2
1
refill 220ml.
2
The price is 10 Baht for a
5
4 3 2
1
bottle of 50 ml.
3
The price is 30 Baht for a
5
4 3 2
1
bottle of 270 ml.
Part
Level of Satisfaction
III
1
Like this product but not
5
4 3 2
1
change from current brand.
2
Satisfy with the quality of
5
4 3 2
1
the product
3
Want to switch brand to
5
4 3 2
1
use this product
68
Appendix B
Screening Questionnaire (Thai)
And
Moderator Guide (Thai)
(MBA)
69
SCREENING QUESTIONNAIRE
______
:
1. (
2. (
4.(
3. : (
:
)
:
/ / ______________
/
/
70
__/___/2550
__:__
1.
6.
7.
8.
9.
10.
18-22
23-28
29-40
41-55
56-65
2.
7.
8.
9.
10.
11.
12.
3.
6. 0-10,000
7. 10,001-15,000
8. 15,001-20,000
9. 20,001-25,000
10. 25,001
4.
3.
4.
5.
4.
5.
6.
71
6.
3.
4.
7.
3.
4.
: 6 7
8.
3.
4.
9.
__________()____________
10.
10.
11.
12.
13.
14.
15.
16.
17.
18.
11. ()
a.
b.
72
c.
d.
e.
f.
g.
h.
i. ()
12. ()
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
()..
()
8.
73
9.
( )
10.
11.
( )
12.
13.
14.
().
( )
14.
5. 1-2
6. 3-6
7. 7-12
8. 12
15.
4. 1
5. 2
6. ()..
16.
6. 0-30
7. 31-40
8. 41-50
9. 51-70
10. 71
17.
5.
6.
7.
8. ()
74
18.
19.
()
10.
11.
12.
13.
14.
15.
16.
17.
18.
()
3.
4.
19 23-24
20.
21.
10.
11.
12.
13.
14.
15.
16.
17. ()
18.
75
3.
4.
22.
____________________________________
23.
____________________________________
24.
_____________________________________
76
Questionnaire
5=
4=
3=
2=
1=
1
1
2
3
4
5
6
7
8
2
1
2
3
3
1
2
3
23 220
10 50
30 270
77
5
5
5
5
5
5
5
5
4
4
4
4
4
4
4
4
3
3
3
3
3
3
3
3
2
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
4 3 2
4 3 2
4 3 2
5
5
5
4 3 2
4 3 2
4 3 2
1
1
1
Biography
Name:
Surapong Surawanthanakul
Date of Birth:
Place of Birth:
Bangkok, Thailand
Institutions Attended:
Home Address:
Telephone:
66-8-1901-2264
E-mail:
pong0213@yahoo.com
78