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Soap Industries (FMCG)

Soap Industries (FMCG)

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Published by Bhavin Patel

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Published by: Bhavin Patel on Mar 24, 2011
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03/13/2015

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MARKETING ESSENTIALS

A AL LFRES F RE S H H

A PRESENTATION ON BRAND CREATION [SOAP]

BATCH:- ISBE-B SECTION-1 GUIDED BY:- DR.RAJIV PANDIT

:GROUP MEMBERS:

CONTENT
MICRO ENVIRONMENT  MACRO ENVIRONMENT  MARKET SCAN  DEFINITION OF FMCG  HISTORY  MARKET SEGMENTATION  FACTORS AFFECTING BUYING BEHAVIOUR  PEST ANALYSIS  SWOT ANALYSIS  BCG MATRIX  CONCLUSION
 

MICRO ENVIRONMENT

MARKET SCAN

WHAT IS A FMCG?

CLASSES:


HISTORY
  

  
   

The market shows a seasonal behavior for some brands, i.e. the brands change as per the customers' need for that particular season. For e.g. in summer - running brand popular and sub-popular most of the buyer take bath twice in a day specially in northern belt, in monsoon - running brand antiseptic and medicated soap, in winter running brand premium (moisturizer and creamy soap).

ENVOIRNMENT ANALYSES …

Geographic Environment
N W S

E

Geographic Environment
 Region

: North, south, West, East  City size : Major metropolitan areas,  Small cities , Towns  Density of Area : Urban, Suburban, Rural  Climate : Temperature, Hot, Humid.  Since the temperature is HOT & HUMID, sweating is at high rate.  Customers need a product which keeps them fresh all day long.  They also require fragrance which is longlasting.

DEMOGRAPHIC ENVIRONMENT

POPULATION


India is a country of 1.15 billion people.

Rural Population consists 72% of total population.  It is a ‘ Young Country ’ having 46 crores of people between age 13-35.  Women population is around 55 crores. • •

Income

Lit e r a cy
• • • • •

Literacy rate in India is around 65%. 35 crore people in age 13-35 are literate. 62% literate youth lives in Rural villages. Women literacy rate is around 55%. Housewives are the main target for this product.

Economic Environment :
Per Capita Income Inflation Rate GDP (PPP) Economic Comparison Rank Worldwide $3100 10% $3.57 Trillion 5

All figures in million as on 2006-07
Income Class Rich Consuming class Climbers Aspirants destitute Households Estimated Population 30 432 472 117 95

5.2 75.5 81.7 20.2 16.5

ECONOMIC ENVIRONMENT

Economic Environment : Income & Growth in Rural & Urban Area in 2015 (Expected).

Psychographic Environment

Social-Cultural Environment

 

Cultural Environment

COMPITATIVE ANALYSIS …

COMPETITORS [ men’s category]
             

WILD STONE PARK AVENUE AXE REXONA CINTHOL

COMPETITORS [child’s category]

      

JOHNSON & JOHNSON

 
 

DOY

There are many types of competitors
 Brand competitors  which makes product with the similar features and benefits to the same customers at a similar price

Product competitors  which compete in the same product class but their product have a different features, benefits, price

Generic competitors  which provide very different product that solve the same problem or satisfy the same basic customer needs

Total budget competitors

Market Share

CONSUMERS ANALYSIS …

Benefits sought by various customers from various brands are

Factors affecting buying behaviour
  

FACTORS OF BRANDS

Benefit Factor

MARKET SEGMENTATION …

WHOLE PROCESS OF BRAND CREATION

      
     

Market Segmentation

The market is growing at 7% a year. This means that the incremental demand generation is 5% over and above the population growth. With increasing awareness of hygienic standards, the market could grow at a rate higher than 8% annually.

 

HIGHLIGHTING SEGMENT …

PREMIUM SOAPS ARE ESTIMATED TO HAVE A MARKET VOLUME OF 80000 TONES. THEY POSESS A SHARE OF AROUND 14-15%. THIS SEGMENT HAVE COMPARITIVELY HIGH LOYALYTY .


TARGETING …

PEST Analysis:

Political Factors: -Politically there is no much of a problem for the ALFRESH SOAP and will create an impact that will not affect our product. Government banned the import of tallow, a soap making raw material (which was requiring a very little processing to make soap). It then followed an incidence of adulteration of vanaspati by unscrupulous manufacture.

 

Economic Factors
 Soaps in India cost very high in India as compared to other countries like Indonesia. This is primarily attributed to the high cost of imports due to high import duties.


 Since India is now a WTO member India will have to bring down the import duty rates to as much as 20% from 35%. Also the excise rate at 16% forms formidable portion of the cost.


 For toilet soap, the average expenditure per user household for low-income households is Rs. 237, while it is Rs. 706 for high-income groups.

Social factors:

With the rising education and disposable income levels, the need for hygiene and personal / skin care becomes important. Premium soaps are thus targeted at the audience to change their habits by raising their aspiration levels. Fragmented approach of govt. and NGO’s towards inefficient PHC-primary health center also aggravates the problem. The growing reach of advertising medias like satellite and cable TV too is expected to give a boost to the market penetration initiatives of the industry players.

 

 

 

Technological Factors:
 The industry though capital intensive is not very technology intensive. Premium soap manufacturing though compared with other soaps manufacturing relies to an extent on technology (especially in the finishing stage). The more important is logistics management where marketing and distribution play a pivotal role. Here technology like (SCM) Supply Chain Management and (E-CRM) Electronic Customer Relationship Management will play a pivotal role. Companies like HLL are working very hard towards such a system to rope up the entire small stores and retailers (Kirana Stores).


 The results of a survey done by National Council of Applied Research (NCAER) suggest that Indian FMCG space is all set to enter a new growth phase, sample this: the study says that the lower income group is expected to shrink from over 60 percent (1996) to 20 per cent by 2007 and the higher income group is expected to rise by more than 100 per cent. It looks; the industry is all set for a fast-paced race ahead.

SWOT ANALYSIS

BRAND PERSONALITY

BRAND POSITION

POSITIONING OF BRAND

RESEARCH & DEVELOPMENT
After extensive research and development we have come up with an idea of launching ALFRESH LIQUID SOAPS

GAP OF OPPORTUNITY

There are 2 major competitors for liquid soaps.

Fiama De Wills of ITC.  Lux liquid soap of HUL.
    

Out of which Fiama De Wills is growing faster. There are no other prominent players in this segment.

GAP OF OPPORTUNITY

Such liquid soaps are more popular in women of age 15-35. The major player in baby liquid soap is johnson & johnson. So, after all the analysis we can see that this segment of soap is not yet explored. Looking at the development and growth of country this would be the right time to enter this segment.

 

 

 

 

THE BOSTON CONSULTING GROUP’S GROWTH-SHARE MATRIX (BCG)

 

BCG Matrix Include;

INTERPRETATION OF BCG MATRIX

BECAUSE BATHING WITH SOAP IS OUTDATED.

ADD LIFE TO YOUR BATH WITH ALL NEW…….


ALFRESH SOAPS.

.

CHILD

MEN

WOMEN

OUR PRODUCTS…

ALFRESH BABY’S LIQUID SOAP…

ALFRESH MEN’S SOAP…

ALFRESH WOMEN’S LIQUID SOAP…

WHY ALFRESH LIQUID SOAPS.

CUSTOMERS TARGETED .

PROMOTIONAL ACTIVITIES

DISTRIBUTION CHANNELS

SUMMARY

THANK YOU

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