Affecting Consumer Behaviour towards Dettol Soaps - Case Study Example

Assignment 2 Table of Contents Dettol soaps and consumer behaviour in the Indian market 2 Reference groups 3 Family 5 Culture 6 Sub-culture 10 Social Class 12 Consumer decision making and the relevance of gifting behaviour and the importance of relationship marketing 13 Conclusion 15 Executive Summary This essay reviews how reference groups, family, culture, subculture and social class have individually affected consumer behaviour towards Dettol Soaps. The essay indicates that each of the five aforementioned factors have some effect on Dettol soaps penetration of the Indian market. Introduction Theoretically and in reality, it is clear that different factors in the consumer environment affect the purchase behaviour seen in a person. Such influences are largely categorised as external and internal factors. This essay focuses on external environmental factors, which include cultural influences (culture, sub-culture and social class); social (reference group, family and status); personal (occupation, lifestyle, personality, self-concept, age and lifecycle stage); and psychological (motivation; perception, learning, beliefs, and attitudes). This essay will review the relevance of some of the aforementioned external factors as portrayed in consumer behaviours towards Dettol range of soaps in the Indian market. Specifically, the essay will review how reference groups, family, culture, subculture and social class have individually affected consumer behaviour towards Dettol soaps. Dettol soaps and consumer behaviour in the Indian market The Dettol soaps used in India is a product of Reckitt Benckiser (India) limited. The active ingredient in the soap is Triclosan, which has been described as an effective chemical that cleans bacteria and a wide range of germs from the skin (Balaj, 2010). Additionally, Dettol is defined as having 73 percent of Total Fatty Matter (TFM), while other average soaps have 70 percent TFM. According to Balaj (2010), TFM is a combination of natural fats derived from plans and artificial fats, and is responsible for the lather that is seen when soaps are used. The higher the TFM content in a soap, the more lather it forms and the better it is for cleansing. Reckitt Benckiser has positioned Dettol in the Indian market (and elsewhere in the world) as hygiene soap. The product thus targets the hygiene conscious consumer and assumes a brand personality if a fastidious, sensible and clean person (Balaj, 2010). Over the years that Dettol antibacterial soap (Dettol original) has been in the Indian market, it has succeeded in penetrating the market and currently has 80% of the hygiene soap market (Balaj, 2010). The success of Dettol soap in the Indian market has been partly influenced by external environmental factors Reference groups Khan (2006) defines reference groups as a “group of people whom one refers to, while making decisions” (p. 58). They affect consumer behaviour by shaping aspirations for individuals, and helping them identify and chose a product that suits a specific lifestyle. When Reckitt Benckiser for example says that six out of ten mums use Dettol Soap to provide a germ-free bath for their children, it is arguably appealing to mothers who like to be associated with care giving and wishing the best for their families. Reference groups regulate lives and set the standards norms and conduct for people. For Dettol soap, conformity pressures in reference groups are not direct; however, they are passively passed through marketing messages that indicate that the best mums care for their families, and such care is evident in the use of Dettol products. Ideally, every mother wants to be counted among the groups of women who are revered as being good mother. As such, in an attempt to conform to the standards of the supposedly good mums, a significant percentage of women would be expected to purchase Dettol products. The reference group concept does not spare children either. In an attempt to fit into the perception that Reckitt Benckiser creates through its marketing strategies, a significant number of children are likely to get caught in the ‘need to fit in frenzy’, especially since children who use Dettol products (most especially the soap) are seen to be heroes or achiever in different activities. The above indicated influences of reference groups in relation to Dettol Soap (and other Dettol products) can further be understood on the basis that people are either active in a group (e.g. by being a mum that uses Dettol), belong to the group (a caring mother who uses Dettol or the time), aspire to become a member of the group (e.g. a child who wants to become an achiever in a field that is perceived to having an increased exposure to germs), or wants to avoid the effects of not being a member of a group (e.g. mothers who have to deal with increased disease incidence by not ‘fighting germs’ through the use of the right products. According to Khan (2006), the common denominator among all people therein is that they get information, are rewarded for the same (through product-related benefits or by associating with the group), and get a sense of identity from the group. Such happens regardless of what motivates individuals to join or aspire to associate with a reference group. In return, individuals conduct purchases, use the product, and communicate its benefits (or lack thereof) to other people. The latter is especially beneficial to a product since it creates publicity for a product hence enhancing product/brand recognition. Considering that Dettol products are used within homes and could fall in to the category that Peter and Olson (1999) define as private necessities, it is possible that the visibility of reference groups towards are not as optimal as would happen with publicly seen items such as cars or fashion items; such then means that reference groups influence on the brand is weak. Notably however, and as indicated above, Reckitt Benckiser has worked to create the impression that there are a set of caring mothers and heroic and achieving children who use Dettol products. Arguably, that marketing approach has, by itself created reference groups where none existed before; as such, even if the products are used in one’s private space, the appeal to use them is motivated by an inner need to belong to either of the groups created through marketing. Family According to Sarangapani (2010), family members do indeed have strong influences on buyer behaviour. In the case of Dettol Soap, a person who grew up in a home where the same soap was used either for specific reasons or regularly for bathing is likely to continue with the same usage patterns in his/her adulthood. The foregoing is described by Khan (2006) as “intergenerational carry over”, where children learn to use what is used by their parents, and pass on the same consumption preferences to future generations (p. 71). Sarangapani (2010) notes that “the family is the most important consumer buying organisation in society...” (p. 16). Reckitt Benckiser has no doubt tried to market to the family by indicating that its products protect the whole family against germs. The ideal scenario in most Dettol Soap advertisements include mothers giving Dettol soap (or other Dettol- related products) in bathing, hand-washing, and cleaning (as illustrated in Figure 1 below). Although men do not feature prominently in Dettol advertisements, women and children are a mainstay in such marketing tools. It would thus be argued that the Dettol Adverts are specifically meant to appeal to women- who are the main caregivers in most households – and by so doing, Reckitt Benckiser knows that it will reach other family members. Figure 1: Dettol’s communication of the whole family protection concept Source: Dettol.co.in (2013) The inclusion of children in the Dettol soap’s marketing is also arguably strategic, because as Sarangapani (2010) children have a strong influence on the buying decisions made by families. A 2009 Dettol soap advert for example features a boy who voluntary chose to get a football that had fallen into dirty water. In addition to assuming the hero role for retrieving the football for his playmates, he is seen to rid himself off the germs by using Dettol soap which his mother gives him on returning from the playground. Such an advert has a family appeal both to mothers and to children. In such a case, if mothers do not voluntarily buy the subject soap, their children can nudge/or convince them to do so. Culture Loosely defined, culture is the “distinct way of life of a group of people and their complete design for living” (Khan, 2006, p. 34). It is a complex concept that includes the beliefs, knowledge, customs, morals, laws, art and other aspects and habits of people living in a society. Culture is of great relevance to marketing because its affects the consumption habits, the living and the decision-making patterns of members of a specific society. According to Khan (2006), culture is learned, shared, gratifying, persistent, prescriptive, and it forms boundaries for thoughts and behaviours. In the Indian culture, cleanliness and personal hygiene are given a lot of attention (Flight of Eagle, 2012). As a Matter of fact, religious functions and rituals in the Indian culture demand that participants bathe and put on clean clothes. Such standards by members of a society are defined by Khan (2006) as norms, which set boundaries to how individuals behave. Although the Indian streets are dirty sometimes (due to the high volume of vehicle and human traffic), foreigners generally agree that most Indians are obsessed with cleanliness at an individual level (Infosys, 2012). But what is in it for Dettol one would ask? Well, as a hygiene product that is marketed on the premise of 100% germ-free cleaning, Dettol products are no doubt positioned to benefit from the Indian culture supposedly obsession with cleanliness. The cleanliness culture in India is perhaps responsible for increased Dettol soap in summer. Incidentally, summer is a season when most people have perceptions regarding increased dirty in the environment. This is understandable especially considering that the high heat and dust levels. The fact that there is increased usage of Dettol soap in specific months serves as good enough evidence that people associate the soap with an increased capacity to fight germs. Figure 2: Seasons when Dettol soap is used Source: Kalia(2009) Asked why they use Dettol soap, an average of 81.75 percent of seasonal Dettol soap-using respondents featured in the study conducted by Kalia (2009) across all regions (North, East, West and South) indicated that “there are more germs at this [sic] time of the year” (Kalia, 2009, p. 24). Such response is an indication the cleanliness culture in India affects consumer behaviour by way of shaping their perception regarding specific soap efficacies towards fighting germs. With advertisements such as the one indicated in figure 3 below, it is clear that Reckitt Benckiser has successfully managed to shape the perceptions of a significant number of Indian regarding the efficacy of Dettol Soap compared to its competitors. The ‘10 times more protection’ message that is inscribed on the advertisement is of specific relevance to culture (and what Indians hold as true). Figure 3: Dettol message convincing consumers of the supposedly 10 times more protection Speaking directly into the issue of a culture that upholds cleanliness, Khan (2006) observes that such a culture is likely to serve as a potent market for cleaning and hygiene items such as soaps, deodorants, beauty crèmes, washing powders among other things in the same category. Reckitt Benckiser (in world-wide strategy) seems to have understood the need to capitalise on people’s need to be (or be perceived as) clean. Below is an illustration of the range of cleaning and personal hygiene items that the firm has progressively introduced into the Dettol stable. Figure 4: Cleaning and hygiene products in the Dettol stable Source: Dettol.co.uk (2013) Sub-culture Within any culture, there are homogenous subgroups, which make up the sub-culture. In India for example, Khan (2006) observes that the Hindus of the North and South have different sub-cultures, which dictate how members of each sub-group behave. From figure 2 above for example, it is evident that a majority of Southerners (70 percent) use Dettol Soap all year round, while in the North, only 52 percent of the respondents use the soap all year round. This is a clear evidence of sub-cultures as it can further be seen that Northerners use Dettol soap increasingly in summer. It can thus be argued that Northerners have an increased awareness of germs (and the need to adopt more effective measures in fighting them) during summer, while more southerners are conscious of the everyday risks posed by germs regardless of seasons. According to Sarangapani (2010) the differentials in sub-cultures is explained by several factors, key among them being lifestyles. Consumers from the same subculture share similarities in their living patterns. Specifically, they most likely engage in the same activities (e.g. social events, work, sports and hobbies). They are also likely to engage in the same interests (e.g. in recreation, fashion, food and family), and opinions (e.g. about social issues, products, business and about themselves). In India’s Northern part, it would appear that the a significant number of residents believe that summer presented increased hygiene challenges, and that it would be wise to use specific products (e.g. Dettol soap) at that specific time of the year. According to Sarangapani (2010)”Lifestyles captures something more than the person’s social class or personality. It profiles whole patterns of acting and interacting in the world” (p. 17). This is especially evident in people of the same age group. According to Kazmi (2009), the unique sets of shared behaviours and values as produced by people within the same age bracket makes marketers in India and elsewhere interested in age subcultures. While a substantial population in India is made of people aged above 55 years, they too form a significant target market for marketers as does the younger generation. In Dettol’s context for example, Dettol anti-bacterial soap (also known as Dettol original soap) has been marketed as the ultimate solution to fighting germs. Among the retirees who may begin to feel the physical effects of old age, the soap assures them of one way they could wade off diseases. In the Dettol stable, Dettol anti-bacterial soap is generally marketed to everybody (young and old alike). However, and in recognition of the age-related sub-cultures, Reckitt Benckiser has introduced several other soaps, which include: Dettol Cool – targets the young and active males. The soap promises a cooling effect on the body, which is ideally what most teenagers and active young men look for after an active day in the field or in school. According to Kazmi (2009), young people are self-conscious, and occasionally perceive themselves as creative, active, intelligent, affectionate, funny, and likeable. By providing an invigorating bath experience as portrayed in Dettol Cool Adverts across India and as indicated in Afaqs (2013), Reckitt Benckiser is undoubtedly appealing to the youth market. Dettol Skin Care – targeting the young and beauty conscious women. Positioned in the Indian market as beauty soap, Dettol Skin Care soap is arguably mean to satiate young women’s need to look good. According to Kazmi (2009), young women are interested in “cosmetics, clothes, beauty aids, and jewellery” (p. 162), and this is exactly what marketers push towards them. Dettol Fresh – targeting people who prefer the citrus fragrance. Regardless of the age, people like variety (Kazmi, 2009). As people grow older, they tend to be more adventurous in a bid to test new products. Reckitt Benckiser evidently gives their consumers by appealing them to stay within the brand, but test different products. After all, the same germ-fighting properties of Dettol Original are said to be present in other soap variants. Social Class Social class is defined as the “society’s relatively permanent and ordered divisions whose members share similar values interests and behaviours” (Sarangapani , 2010, p. 16). Social class is determined by different variable, which may include wealth (or income), education, and occupation among others. In India, the concept of social class is highly ingrained in the society. The caste system, though less restrictive than was the case 50 years ago, is still responsible for a highly stratified society. Even people from lower caste systems who have obtained an education, wealth, and are even engaged in occupation formerly reserved for higher castes find it difficult associating with people from lower castes. Fortunately for Dettol, its messages are meant to cut across the social classes. The affluent appreciate the soap because, while the price is within what their affluence can comfortably, the promise of good health is also enticing. The lower social classes on the other hand may find Dettol prices being on the higher side, but some are willing to pay the same for purposes of securing their health. In a study conducted by Moran et al. (2009) for example, it was found out Indian women across the social divide use Dettol soap on young children. The difference of the social classes is however evident in that while those from affluent social classes use it consistently; those from the Middle and low-class societies use it where there is an increased disease incidence, or where a child has already fallen ill. According to Desai and Dubey (2011) social classes based on the caste system in India are slowly vanishing. People from the castes that were considered inferior (i.e. the Dalits and the Adivasi) have in the past decades been able to access equal education and equal opportunities to the castes that were previously thought to be more superior. As such, the purchasing power across castes is almost similar (Desai & Dubey, 2011). The caste system aside, it is also important Desai and Dubey (2011) observe that even where income disparities are common, the free market economy in India has opened up major opportunities for people with basic skills to earn decent income. In other words, a significant number of people are able to afford the basic fast moving consumer items. As one such item, Dettol soap (and other Dettol products) benefit from their penetration of the market and the buyer purchase potential among people across the social class divide. In an interview Chandler M. Sethi, a Reckitt Benckiser veteran indicates that the firm targets people from all different walks of life (IIPM Editorial, 2012). The foregoing probably explains why Dettol’s distribution is nation-wide targeting even the smallest retailers in Indian villages. Consumer decision making and the relevance of gifting behaviour and the importance of relationship marketing Theoretically, there are four models that explain how consumers make their decisions. They are: the economic, the passive, the cognitive and the emotional view (Kumar, 2013). The economic view perceives the consumer as a rational decision-maker. In this view, the consumer is perceived to be aware of existing product choices, and as being capable of discerning the advantages and disadvantages of each product. Interpreted, it would mean that the consumer is capable of choosing to purchase the product that gives him/her the best economic value. Applied in the Dettol context, it would mean that consumers who purchase Dettol products are aware of alternative products, and that their purchase decisions are made based on having the knowledge that the products are of superior quality and economic value compared to others. Notably, and as has been indicated by Kumar (2013) the economic view is faulted by consumer researchers for being unrealistic, simplistic and idealistic. The passive view on the other hand proposes that consumers are submissive, and often respond to marketing propositions and their own self-serving interests (Kumar, 2013). In this view, the consumer is seen irrational and impulsive. In the Dettol context, this would mean that promotions made by Reckitt Benckiser would be the greatest influencers of consumer behaviour. This view too has been criticised for being unrealistic. On its part, the cognitive view perceives the consumer a problem solver who is constantly engaged in the search for information. Applied in the Dettol context, it would mean that consumer purchase the products based on what they know, but that does not mean that they do not search for information that could make them better decision-makers in future. The emotional view suggests that consumers sometimes engage their emotions when making purchases. Dettol users could for example associate it with emotional circumstances where a loved one was perhaps nursed back to good health, with Dettol products being part of the items used in the process. Self-gifting behaviour is applicable in Dettol products, especially in high usage seasons such as summer, where people who would not ordinarily purchase the products (due to cost reasons) do so. According to Ward and Tran (2008) self-gifting is likely in events where a person believes that they deserve the product, and that the product will provide them with additional benefits. Similarly summer users of Dettol soap arguably gift themselves because they perceive themselves as deserving of the perceived Dettol benefits. Relationship marketing is the strategy that focuses on fostering customer loyalty as opposed to increasing sales. In Reckitt Benckiser, such a strategy is evident in the Dettol India website (http://www.dettol.co.in.) where products are not directly pushed to consumers; rather, consumers are advised on several issues including first aid, good hygiene and how to handle new born children among other things. Such form of marketing assures Reckitt Benckiser of a loyal customer base, which will most likely continue purchasing the products, recommending the same to others and passing their preferences to future generations. In India, public policy, legislation, advertising, pricing and consumer ethics are addressed in the Consumer Protection Act 1986, which set up central council whose role of to protect and promote consumer rights. The Central Council’s main mandate it to protect consumers against the marketing of products that may be detrimental. It also protects the consumer against unjust trade practices by ensuring that they are informed of the price, standard, purity, potency, quantity and quality of products. Consumers are also assured by the CC that they can access different product and competitive prices wherever possible. Consumers are also educated, and allowed to file complaints, and redress in cases where they were the subjects of unfair trade or unscrupulous exploitation (Eradi, 2011). Conclusion Dettol Soap has done incredibly well in the Indian market. Partly, the soap’s success is arguably related to its ability to align itself to consumers’ external factors such as reference groups, family, culture, sub-culture and all social classes across India as discussed herein. Additionally, the soap has been able to create an image of being the ultimate solution to germs, hence making more appealing to the hygiene conscious Indian community. Because of its relatively high price, there is a disparity in the soap’s usage across seasons with increased usage in summer seasons. As indicated elsewhere in this essay, the increased usage in summer is not only evidence that people believe Dettol’s proposal about germs-fighting efficacy, but is also an illustration of self-gifting habits that some consumers have. Overall, it is evident that Dettol has arguably delivered value to its consumers, something that can be related to increase usage patterns across India. References Afaqs. (2013). Dettol protection turns cool! Retrieved May 24, 2013, < http://www.afaqs.com/news/company_briefs/index.html?id=7321_DETTOL+protection+turns+COOL!>. Balaji, K. (2010). Why Dettol is one of the most trusted brand of India? Scribd. 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