COMPETITIVE SHAMPOO MARKET : COMPETITIVE SHAMPOO MARKET Presented by:
Amal Dev V(191066)
Hiralal Senapati(191087) What is FMCG ? : What is FMCG ? FMCG refers to consumer non-durable goods required for daily or frequent use. Typically, a consumer buys these goods at least once a month. FMCG Products : FMCG Products Detergents
Cigarettes Hair Care Category in India : Hair Care Category in India There are 5 main products
Shampoo / Conditioners
Hair Dyes / colors Types of Shampoos : Types of Shampoos Shampoo market is segmented on benefit platforms
Cosmetic ( shine, health, strength )
Anti - Dandruff
Herbal Shampoo market in India : Shampoo market in India Size of shampoo market – Rs 9000 Million
Anti-Dandruff Shampoo– approx. 20 %
Sachet Sales - approx. 70 %
HLL – 63%
P & G – 12%
Ayur Ltd – 8% Shampoo Awareness in India : Shampoo Awareness in India Per Capita consumption of Shampoo in India - 32ml
Number of users of Shampoo- 1123 Million
47% Rural Shampoo Industry – till mid 90’s : Shampoo Industry – till mid 90’s HLL undisputed leader from the early 90’s
Sunsilk – 1964
Clinic Plus - 1971
Clinic All Clear launched in 1987 (Therapeutic AD Shampoo)
Sunsilk re-launched in 1987 - Shampoo+ Conditioner (Beauty platform) with Sachet SKU
HLL Goes rural with Sachet
Clinic Active launched in 1991 (with Pro Vitamin B - health platform) Entry of Competition : Entry of Competition Why did competition Enter India
Burgeoning middle class
Low penetration levels
Huge untapped market New Entrants into the Market : New Entrants into the Market P & G enters India in Nov 1995, with the world’s largest selling brand - Pantene
Colgate Palmolive launched Optima also in Nov 1995 ( break through in Keratin treatment )
Nirma launched Nirma Shampoo which went into rough weather because it also had a detergent and soap with the same name. The brand name also had low price connotations Shampoo Boom in India : Shampoo Boom in India In mid 1997, per capita consumption of Shampoo increased
Of the Rs. 350 Cr. Shampoo market, the AD segment accounted for a 20 % share
P & G launched its Internationally acclaimed A & D shampoo H & S in 1997 with Zinc Pyrithine ( ZPT ) - a unique anti-microbial agent. There were 2 variants - regular and menthol
Sachet sale became 70 % of all shampoo consumption in the country The top Shampoo brands : The top Shampoo brands Normal Shampoos
Pantene The top Shampoo brands : The top Shampoo brands Herbal Shampoos
Nyle The top Shampoo brands : The top Shampoo brands Anti Dandruff Shampoos
Clinic All Clear
Head and Shoulders
Anti-dandruff The top Shampoo brands : The top Shampoo brands Premium Products
L'Oreal Bases Of Segmentation : Bases Of Segmentation DESCRIPTIVE
Benefits 1 Segmentation For Shampoos : Segmentation For Shampoos Geographical Location
Cosmetics (Hair conditioning, Shiny Hair)
Herbal (Fruitamins, Neem-based, Shikakhai based)
Medical ( Anti-lice, Anti-dandruff)
Premium- Shahnaz, Biotique etc
Mid-priced- Dabur Vatika, Garnier Ultra Doux etc
Economy- Nyle, Chik Major Issues : Major Issues Low penetration of shampoo market in India.
Gradual emergence of local players
Rapid emergence of the organized sector due to reduction of excise duties.
Sachets fuelling growth in the shampoo market.
Bulk of the growth at low price end of the market as a result of increased rural consumption.
Globalization, liberalization, increase in awareness levels, increase in purchasing power etc has spurred on demand for personal care products like shampoos. The Salon Business in India : The Salon Business in India Salons are fashion trendsetters and caters mainly to the age group of 15-34.
Hair-related services generate the bulk of the business in a salon.
India has 20,000 salons with total turnover of 500 crores and salon business is primarily unorganized.
Has a unique distribution network, run by independent businessman wherein products are sourced locally.
Witnessing a two-way brand movement- salon brand entering retail and vice versa. Marketing Strategy For HLL : Marketing Strategy For HLL Product
Variants are harmonized in terms of the product mix –
Fragrance, colour and ingredients: Sunsilk Naturals
Highest number of variants
Innovative promotion channel: Sunsilk gang of girls
Brand experience in form of therapy centres: Lever Ayush
Intensive distribution network Marketing Strategy For HLL : Marketing Strategy For HLL Use its intensive distribution network to expand its rural market
Re-launch its Organics shampoo brand to capture herbal shampoo segment
HLL can make foray in fast growing Salon business and compete with other retail brands