mean, median, mode, standard deviation for grouped data for statistical measure for shampoo in...

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Managerial Statics 1 Mean, median, mode, Standard deviation for grouped data for Statistical Measure for Shampoo in Indian market Presented to Sameer Virani By Renzil D’cruz http://RenzilDe.com http://about.me/renzilde http://linkedin.com/in/renzilde

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Managerial Statics

1

Mean, median, mode, Standard deviation for

grouped data for Statistical Measure for

Shampoo in Indian market

Presented to

Sameer Virani

By

Renzil D’cruz

http://RenzilDe.com

http://about.me/renzilde

http://linkedin.com/in/renzilde

Managerial Statics

2

Introduction

In statistics and data analysis, the mean, median, mode, range, and standard

deviation tell researchers how the data is distributed. Each of the five measures

can be calculated with simple arithmetic formulae. The mean and median

indicate the "centre" of the data points. The mode is the value or values that

occur most frequently. Range is the span between the smallest value and largest

value. Standard deviation measures how far the data "deviates" from the centre,

on average. Knowing how to calculate these statistical measures will help you

analyze data from surveys.

We have conducted survey on sample of 50 people age group between 18-25,

who are consumers of various Shampoos. We compare Sunsilk, L’Oreal with

respect to other brands on various factors. In questionnaire, we compare various

shampoos on 10 features such as price, size, aroma etc. For which we have got

good response from our Classmates, friends and family members.

The shampoo market in India is estimated to be 2,500-3,000 crore. The

shampoo market is India is categorized according to the benefits they provide.

Mostly consisting of three kinds of shampoos cosmetic, herbal and anti

dandruff, the shampoo market in India has managed to tap users of the various

segments according to their requirements and preferences.

Due to the continuous efforts of the top shampoo brands in India penetration of

shampoos in urban areas is almost 100%. As far as penetration of shampoo in

the rural areas is concerned it has risen by almost 18% in the current scenario.

The top shampoo brands in India include Sunsilk, Clinic Plus, L’oreal and

Pantene. The company that leads the shampoo market in India is Hindustan

Unilever Limited. The top three most sought after brands Sunsilk, Dove and

Clinic are produced by HUL. The company holds a 44% market share in the

Indian shampoo industry. It is said that HUL earns almost 8% of its revenue

from the sale of these products. Proctor and Gamble the second top shampoo

brand in India holds a market share of around 25% in the Indian shampoo

industry. The revenue earned from the value of shampoos from Proctor and

gamble is almost 17%.

Managerial Statics

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Various Shampoos in Indian Market:

Sunsilk:

Sunsilk is a hair care brand, primarily aimed at women, produced by

the Unilever group, which is now considered the world's leading company in

hair conditioning and the second largest in shampoo. Sunsilk is Unilever’s

leading hair care brand, and ranks as one of the Anglo-Dutch conglomerate's

“billion dollar brands". Sunsilk shampoos, conditioners and other hair care

products are sold in 69 countries worldwide.

Sunsilk is sold under a variety of different names in markets around the world

including Elidor, Seda and Sedal. The brand is strongest in Asia, Latin

America and the Middle East and is the number one hair care brand

in India, Brazil, Argentina, Bolivia, Bangladesh, Sri Lanka and Thailand

L’oreal:

The L'Oréal Group is the world's largest cosmetics and beauty company with its

registered office in Paris and head office in the Paris suburb of Clichy, Hauts-

de-Seine, France, it has developed activities in the field of cosmetics.

Concentrating on hair colour, skin care, sun protection, make-

up, perfumes and hair care, the company is active in the dermatological, tissue

engineering and pharmaceutical fields and is the top nanotechnology patent-

holder in the United States.

L'Oréal is a listed company, but the founder's daughter Liliane Bettencourt and

the Swiss food company Nestlé each control around 30 percent of the shares

and voting rights.

Questionnaire For Shampoo Survey:

Please rate the following on the scale of 1-7:(1:Lowest & 7: Highest)

Company

Variable

SUNSILK

(HUL)

LOREAL VATIKA

(DABUR)

Price

Availability

Aroma

Packaging

Varieties

Value For Money

Brand Ambassadors

Advertising

Satisfaction

Managerial Statics

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Price

0

5

10

15

20

25

30

1 2 3 4 5 6 7

Sunsilk

L'oreal

Others

Availability

0

5

10

15

20

25

1 2 3 4 5 6 7

Sunsilk

L'oreal

Others

Managerial Statics

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Aroma

0

2

4

6

8

10

12

14

16

18

20

1 2 3 4 5 6 7

Sunsilk

L'oreal

Others

Quality

0

2

4

6

8

10

12

14

16

1 2 3 4 5 6 7

Sunsilk

L'oreal

Others

Managerial Statics

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Packaging

0

2

4

6

8

10

12

14

16

18

1 2 3 4 5 6 7

Sunsilk

L'oreal

Others

Varieties

0

2

4

6

8

10

12

14

16

18

20

1 2 3 4 5 6 7

Sunsilk

L'oreal

Others

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Value for money

0

2

4

6

8

10

12

14

16

18

1 2 3 4 5 6 7

Sunsilk

L'oreal

Others

Brand Ambassador

0

2

4

6

8

10

12

14

16

18

20

1 2 3 4 5 6 7

Sunsilk

L'oreal

Others

Managerial Statics

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Advertising

0

2

4

6

8

10

12

14

16

18

1 2 3 4 5 6 7

Sunsilk

L'oreal

Others

Satisfaction

0

5

10

15

20

25

1 2 3 4 5 6 7

Sunsilk

L'oreal

Others

Managerial Statics

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Mean:

The arithmetic mean or average of a set of numbers is the expected value. The

mean is calculated by adding up all the values, and then dividing that sum by

the number of values.

Mean (x)=A+(Σ(fd)/n)*i

Median:

The median is the middle value in a set of values. To find the median, order the

numbers from largest to smallest, and then choose the value in the middle.

Median =L+((n/2-PCF)/f)*i

Mode:

The mode of a set is the value or values that occur most frequently. There can

be more than one mode in a set. If there is more than one mode, you simply list

all of the modes; you do not have to average them.

Mode=L+{∆1/(∆1+ ∆2)}*i

0

10

20

30

40

50

60

Sunsilk L'Oreal Other

Mean

Median

Mode

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Standard Deviation:

It is a measure of how much spread or variability is present in the sample. If all

the number in the sample are very close to each other in such cases SD is zero

(0) and if the numbers are well dispersed than SD tends to be large. It is

calculated as:

Standard deviation (σ) = *i

STANDARD DEVIATION

0

2

4

6

8

10

12

14

16

SUNSILK LO'REAL OTHERS

Quartile:

The quartiles of a set of values are the three points that divide the data set into

four equal groups, each representing a fourth of the population being sampled

For group data the formula is:

Q1 can be given as (L+ n/4 – pcf x i )/f

Q3can be given as (L+3 n/4 – pcf x i )/f

Inter-quartile Deviation:

In descriptive statistics, the Inter-quartile Deviation, also called the mid-

spread or middle fifty, is a measure of statistical dispersion, being equal to the

difference between the upper and lower quartiles.

Inter-quartile Deviation = Q3 − Q1

Managerial Statics

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Skewness

It is a measure of the asymmetry of the probability distribution of

a real-valued random variable. The skewness value can be positive or

negative, or even undefined. Qualitatively, a negative skew indicates

that the tail on the left side of the probability density function

is longer than the right side and the bulk of the valueslie to the right

of the mean. A positive skew indicates that the tail on the right side

is longer than the left side and the bulk of the values lie to the left of

the mean. A zero value indicates that the values are relatively evenly

distributed on both sides of the mean, typically implying a symmetric

distribution.

SKEWNESS

-0.25

-0.2

-0.15

-0.1

-0.05

0

0.05

0.1

SUNSILK LO'REAL OTHERS

Coefficient of quartile deviation:

It is the simple method of studying variation. it is defined as the difference

between the value of the smallest and the highest observation. the relative

measure corresponding to deviation is called coefficient of quartile deviation t is

given by,

Coefficient of quartile deviation =(Q3 − Q1)/( Q3 + Q1)

Managerial Statics

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CO-EFFICEINT OF Q.D

0

0.05

0.1

0.15

0.2

0.25

0.3

SUNSILK LO'REAL OTHERS

AVERAGE DEVIATION

0

2

4

6

8

10

12

14

16

18

20

SUNSILK LO'REAL OTHERS

SUNSILK:

Analysis

Parameters

Mean Median Mode Standard

deviation

Quartile

Deviation

Coefficient

of Quartile

deviation

Skewness Average

Deviation

Price 212 205.56 182.76 22.91 100.53 0.39 1.27 55.52

Availability 24.2 26 27.38 7.05 8.37 0.16 -0.45 5.50

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Aroma 22.3 22.63 22.75 6.4 8.32 0.18 -0.07 4.68

Quality 20.8 20.77 19.29 6.45 9.43 0.22 0.23 5.31

Packaging 22.1 22.31 25.88 5.47 9.92 0.22 -0.69 4.49

Varieties 24.3 26.32 28.09 7.28 10.55 0.22 -0.52 6.04

Value for

Money

19.9 20.88 22.5 5.32 9.81 0.25 -0.499 5.51

Brand

Ambassador

22.9 24.23 26.39 9.12 8.04 0.17 -0.38 4.65

Advertising 22.1 25.66 28.13 6.62 10.12 0.20 -0.91 6.53

Satisfaction 21.4 21.5 21.84 5.73 7.12 0.17 -0.01 4.46

LOREAL:

Analysis

Parameters

Mean Median Mode Standard

Deviation

Quartile

Deviation

Coefficient

of Quartile

Deviation

Skewness Average

Deviation

Price 298 322 331.08 73.63 84.5 0.14 -0.45 62.34

Availability 20.4 22 24.16 7.62 12.18 0.30 -0.49 6.40

Aroma 20.1 19.66 19.09 7.22 3.92 0.89 0.14 5.90

Quality 25.2 26.66 30 7.08 10 0.19 -0.68 5.76

Packaging 23.1 23.52 23.66 8.73 8.3 0.17 -0.06 4.92

Varieties 22.7 23.5 27.5 7.54 12.01 0.26 -0.64 6.22

Value for

Money

21.6 21.76 20.71 5.89 8.46 0.19 0.15 4.72

Brand

Ambassador

23.6 25.33 27.14 7.9 9.29 0.24 -0.44 6.26

Advertising 23.7 25 18.75 7.26 10.85 0.23 0.68 6

Satisfaction 22.6 22.08 13.5 9.6 9.17 0.19 0.95 5.31

OTHERS:

Analysis

Parameters

Mean Median Mode Standard

Deviation

Quartile

Deviation

Coefficient

of Quartile

Deviation

Skewnwess Average

Deviation

Managerial Statics

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Price 216 209.09 234.21 64.57 95.47 0.22 -0.28 53.72

Availability 18.7 17.73 13.75 7.97 11.85 0.32 0.62 62.4

Aroma 18 18.21 18.33 7.5 9.88 0.27 -0.04 5.8

Quality 18.6 19 17 7.16 9.01 0.24 0.22 5.63

Packaging 17.2 11.25 14.38 8.21 11.57 0.34 0.34 6.54

Varieties 17 14.72 13.09 7.23 9.82 0.30 0.54 5.88

Value for

Money

18 18.13 18.33 6.14 8.75 0.24 -0.05 4.62

Brand

Ambassador

17.7 18.07 20.83 7.28 3.17 0.08 -0.43 5.93

Advertising 18.4 17.5 16.25 6.61 8.6 0.24 0.33 5.19

Satisfaction 16.9 16.25 15 0.6 2.5 0.05 3.17 16.82

THE MARKET SHARES

BRANDS SHARE %

SUNSILK 20

CLINIC 25

L’Oreal 5.5

PANTENE 11

HALO 3.4

OPTIMA 3.6

LAKME 1

ULTRA DOUX 1.2

Managerial Statics

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FLEX 0.7

OTHERS 28.6

Promoting the shampoo brands poses another challenge for the marketers,

resulting in high adv. spends and media spends. Sunsilk spent 8 crores on

advertising on TV in the first four months of its launch. HLL’s estimated

advertising expenditure for each new shampoo launch was between Rs.4 crores

and 6 crores in the introductory phase. The ad-to - sales ratio of the companies

have shown remarkable jump from 10 % to 20 % compared to the average of 5

% for most product categories.

One of the biggest barriers to shampoo usage is the consumer perception that it

harms the hair. Thus companies are focusing on defending the product against

accusations by promoting the strength, nourishment and beauty of the hair -

‘The 3 - in -1 Capsule ‘for ultimate hair. Companies are still associating it with

modern life styles to find acceptance in semi - urban and rural non-users to

build and enlarge shampoo usage levels. Thus companies will have to mould

new consumer usage patterns to its own benefit, to have a competitive

advantage and stay out there in the longer run with a respectable market share.

A market segment consists of a large identifiable group within a market. A

company that practices segment marketing recognizes that buyers differ in their

wants, purchasing power, geographical locations, buying attitudes, and buying

habits. Because buyers have unique needs and wants, each buyer is potentially a

separate market. Ideally, then, a seller might design a separate marketing

program for each buyer, though no company is willing to customize its offer \

communication bundle to each individual customer. The company instead tries

to isolate some broad segments that make up a market.

Two broad groups of variables are used to segment consumer markets. Some

researchers try to form segments by looking at consumer responses to benefits

sought, use occasions or brands. Other researchers try to form segments by

Managerial Statics

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looking at consumer characteristics. They commonly use Geographic,

Demographic or Psychographic characteristics.

Company

Name

2011 Ad

Spending

2012 Ad

Spending

Annual

Ad

Growth

Rate (%)

Annual

Sales

Growth

2011 Ad

$

as % of

Sales

2011 Ad

$

as % of

Margin

SUNSILK 675.832 795.995 17.6 14.2 3.6 0

LOREAL 205.516 230.254 7 13 5.9 -6.2

VATIKA 89.992 89.711 -0.5 4 2.5 5.7