This study was generated from a representative sample of 200 households throughout Beirut. Attitudinal and behavioral findings across relevant consumer segments include new product users, core users and non-users, conversion and retention of consumer segments, product usage, sources of influence and brand loyalty across many retail channels.

Fast moving consumer goods (FMCGs) were the focus of this study and included milk, cheese, rice, pasta, detergents, diapers, canned foods, tea, coffee, soap, shampoo, water, alcohol and non-alcoholic beverage categories. Ii Monthly will provide a multi-part study on each of these categories, assessing two groupings in each issue.

This first segment is a small excerpt from the full study that examines the shampoo and soap markets in a general fashion, with a look at core users, brand loyalty, and behavioral trends. Users were segmented by duration of use, allowing comparisons between new and core brand users, as well as non-users, in an effort to assess opportunities and strengths within the marketplace for the different brands. Only women were targeted in this study, as households’ primary purchasing decision makers.

Repetitive consumption patterns in the shampoo market result in a high brand loyalty rate in general and it is unusual to observe strong niche effects in this mature market. Approximately 80% of the sample were loyal to a specific brand of choice ( see Graph 1) with an average of 60% across the top five categories who maintained their brand for over one year.

From the top five brands seen in Graph 2, Wella’s products maintained the highest customer retention in terms of loyalty in its existing customer base, followed by Palmolive and Pantene shampoos. In terms of recruiting new buyers, the Herbal Essences brand was the most successful.

Erosion in loyalty was mostly detected in terms of quality sensitivities, with over 60% of consumers citing a search for better quality products as the main reason for their shift. Other conversion factors included a need to alternate hair products, a recent boycott on certain American products and price sensitivity.

From the top five brands, recent calls for a boycott have shown an effect in Pantene’s buyer base, while price sensitivities were detected in Pert Plus’s customers.

In the soap market, sole brand loyalty dropped to almost 70%, as compared to 78.8% in the shampoo market. 30.5% were detected to have maintained a pattern of switching from brand to brand (unstable loyalty), as seen in Graph 3. While our sample reveals Lux’s share of the market as the largest, Fa was found to retain a stronger loyalty from existing buyers. ‘Baladi’ soap also maintains a strong market share with the highest customer retention, as compared with all the other brands.
 

Conversion factors in this market were similar to those of shampoo users, with quality most often cited as the reason for a switch. This was followed by alternating soap products for the skin, fragrance, price and some boycott activities also detected.