Under the guidance of: DR. D.D.SWAIN

is a record of an original work done by me under the guidance of Dr.Swain..11PGDM-BHU002 ACKNOWLEDGEMENT .D.DECLARATION I hereby declare that the report titled “Super Shampoo Products and the Indian Mass Market – A Case Study” submitted to IMI-Bhubaneswar. IMIBhubaneswar. Abhishek Mohanty Reg No. faculty member. D.

D. I am highly indebted to Dr. My thanks and appreciations also go to my batch-mates in developing the project and people who have willingly helped me out with their abilities.D. TABLE OF CONTENTS .Swain for his guidance and supervision as well as for providing necessary information regarding the project & also for his support in completing the project.I take this opportunity to acknowledge a deep sense of gratitude to many people who helped significantly to improve this project and without their help and advice this project would not have been possible.

ACKNOWLEDGEMENT…………………………………………………………. INTRODUCTION ...1.…………………………………………………..6 5.………………………………………………….17 9. CONCLUSIONS……………………………………………………………………18 10. SHAMPOO INDUSTRY IN INDIA………………………………………………. DECLARATION……………………………………………………………………3 2. INDUSTRY ANALYSIS……….... ISSUES AND DECISION POINTS……………………………………………….9 6. ANNEXURE………………………………………………………………………… 12.5 4.14 8. FUTURE OUTLOOK……………………………………………………………. BIBLIOGRAPHY AND WEBLIOGRAPHY……………………………………… 1.………………………………. BACKGROUND OF THE CASE..19 11.4 3. FINDINGS AND RECOMMENDATIONS………. SWOT ANALYSIS…………………………………………………………………11 7..

Also he wondered how with the invention of sachets. . a successful marketer of industrial products. Naming of the brand5 Venkataraman often wondered why several brands of shampoos did not have a brand name that was simple to understand. he decided to get into the shampoo industry. shampoo as a category was transformed from an unaffordable product to an affordable one. 1. He hailed from Bihar. Deen used to massage the heads of war-fatigued soldiers with soap and a special oil. the word “super” was amplified by the media to celebrate film stars by projecting them as “superstars”. It is believed that Deen was born in Buxar where the famous Battle of Buxar between the East India Company and early India revolutionaries took place. Deen’s father was an employee of the East India Company and collected tax from the people of Bihar and Bengal around mid 1700. The fact that fascinated him the most was the use of single packaging. Therefore.The case hovers around how Mr. Moreover. Deen’s father had fought for the Company in that battle. Suresh Venkataraman.1. the head massage expert. History of Shampoo Deen Muhammad. The word “super” triggered a superior image amongst whatever it was competing against in a specific context. a city known for its textile industries. in spite of being from Coimbatore. He decided to name the product Super Shampoo. Beginning his career as a servant of the Company. He selected the name Super as it was easy to pronounce and had an English overtone that was considered a part of the aspirations of rural consumers. Venkataraman also had a firm belief that the rural market offered a huge potential for consumer products. He was called the shampoo champion by these soldiers because they could not pronounce “champi”. hit upon an idea of getting into the business of consumer products in general and the shampoo industry in particular. is mentioned in the Oxford Dictionary of National Biography (ODNB) for helping Europe coin the word “shampoo”.

Deen gained fame as a shampoo surgeon. In England.1. FMCG Market in India . and hakims from the different towns of Bihar. 2. The ODNB describes Deen by this name. MARKET ANALYSIS 2.the Hindi word for head massage. Ireland and Scotland. Deen learnt the art of massaging from local barbers.

tooth pastes and Biscuits. The most common in the list are toilet soaps. The increasing disposable income and improved standard of living in most tier II and tire III cities are spearheading the FMCG growth across the nation. Their key categories have strengthened their presence and out performed peers in the FMCG sector.Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The changing profile and mind set of the consumers has shifted the thought to “Value for Money” from “Money for Value”. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 17 billion. The value of the shampoo market in India is US$ 600 million with a penetration rate at 13 percent. shampoos. hair wash etc in India is low indicating the untapped market potential. It has a strong MNC presence and is characterised by a well established distribution network. and household accessories and extends to certain electronic goods. Availability of key raw materials. intense competition between the organised and unorganised segments and low operational cost. shaving products. In addition companies have been successful in reviving their presence in the semi-urban and rural markets. shoe polish. detergents. cheaper labour costs and presence across the entire value chain gives India a competitive advantage. Burgeoning Indian population. On the contrary. 2. The FMCG market is set to reach US$ 33 billion in 2015. packaged foodstuff. ITC and Dabur have improved performance with innovation and strong distribution channels. Over the years companies like HUL. Colgate Palmolive and Britannia Industries are strong in single product category i. particularly the middle class and the rural segments. toothpaste. Growth is also likely to come from consumer 'upgrading' in the matured product categories. Shampoo Market in India Shampoo fall under the hair care category of the FMCG sector. Penetration level as well as per capita consumption in most product categories like jams. These items are meant for daily of frequent consumption and have a high return. toothpaste. presents an opportunity to makers of branded products to convert consumers to branded products. skin care.e.2. But .

HUL’s market share (volumes) in shampoo segment declined by 1. In most mature markets . ‘Dove’ and ‘Pantene’ competes against the likes of P&G’s ‘Head & Shoulder’ and Dabur’s ‘Vatika’. With rivals like Procter & Gamble and Dabur giving tough competition. ITC’s ‘Fiama Di Wills’ The Indian shampoo market is characterised by a twin-benefit platform: cosmetic and anti-dandruff.1.8 percentage points capturing 6.000 crore Indian shampoo market. which is affordable and makes upto 40% of the total shampoo sale. 2.4 percentage points with a market share of 17.7 per cent. Urban markets account for 80% of the total shampoo market.3 per cent while P&G gained by 2. the penetration level is very low even in the metros which is only 30%. FMCG major Hindustan Unilever’s market share in shampoo segment is declining and analysts pointed out that there is a concern over the firm losing out to competition in its other core segments. The hair conditioner market is estimated at around Rs 200 crores and is growing at about 40 to 50 percent a year. The market is also expected to increase due to lower duties and aggressive marketing by is expected to increase because of the potential recognized in the rural market by the major players in this segment. Classification of Shampoo Different categories of shampoo products available in the Indian market can be broadly classified into the following: . as more than 50% of the consumers use ordinary toilet soap for washing hair. which was 120% in 1993 to 30% currently.3 percentage points to 47. The company’s brands ‘Clinic Plus’.7 per cent market share in the estimated Rs 3. In India. While the awareness level is high. Shampoo is also available in a sachet. the share of hair conditioners is about one-third. The penetration level is rapidly increasing due to decline in excise duty. According to the Neilsen’s January-February data.2. Since long HUL has been the market leader in the shampoo industry. It is basically an upper middle class product. the share of hair conditioners is merely one-fifteenth of the shampoo market. Dabur on the other hand gained 0.

It was in the popular/economy tier in terms of pricing and targeted at the low income consumer (semi-urban and rural). Clinic Plus-Background Clinic Plus was a cosmetic shampoo brand of Unilever.2. strength and lustre). sachets of 7.• • • • • • • • Dandruff Gluten and wheat care All Natural Baby Animal Solid Jelly/Gel Paste/Cream The biggest consumer hair problem in India was hair fall. The brand’s place in the company’s shampoo portfolio seemed to be a “Family Value and Health Foundation” brand.1. Head & Shoulders-Background Head & Shoulders was an anti-dandruff shampoo brand of P&G. The brand was sold in bottles ranging from . which was around 15 to 20 percent of the market. It was in the premium tier in terms of pricing and targeted at consumers who sought a chemically mild yet effective anti-dandruff solution.2.2. However the fastest growing segment at 12 to 15 percent growth year on year was the anti-dandruff segment. Head & Shoulders and Chik. Kerala.2. The brand was sold in bottles ranging from 25 ml to 300 ml.2. 2. 2.2. The key benefit segment were cosmetic (which refers to shine.2. 2. Karnataka and Andhra Pradesh) were Clinic Plus. Shampoo Market in Rural South India The top three shampoo brands in rural South India (total region encompassing Tamil Nadu.5 ml and value packs or multi-sachet bundles. anti-dandruff and herbal.

Brands with identities that support family values tend to be popular and accepted easily in the Indian market. Rural vs Urban Consumer . Product which communicate feelings and emotions gel with the Indian consumers. hair oils and tooth 2. Chick-Background Chik was a cosmetic shampoo brand of Cavin Kare.2. only in India. The brand’s place in the company’s shampoo portfolio seemed to be the lead antidandruff shampoo. extends to the extended family and friends as well. Even. For example. Apart from psychology and economics.3. It was in the popular/economy tier in terms of pricing and targeted at the low-income consumer (semi-urban and rural). The brand was sold in bottles ranging from 25 ml to 100 ml and sachets of 7. beautiful hair for the confiden zindian woman.5 ml and value packs or multi-sachet bundles. Such orientation to value has labeled Indians as one of the most discerning consumers in the world.3. 2.100 ml to 400 ml. Indian consumers have a high degree of family orientation. sachets of 7.1. powder existing with shampoos and toothpaste.2. luxury brands have to design a unique pricing strategy in order to get a foothold in the Indian market. These values are far more dominant that values of ambition and achievement. Perhaps.3. Buying Behaviour of Indian Consumer The Indian consumers are noted for the high degree of value orientation. care and affection. 2. the role of history and tradition in shaping the Indian consumer behavior is quite unique. which was endorsed by experts. The brand’s place in the company’s shampoo portfolio seemed to be the flagship brand that promised soft. one sees traditional products along side modern products. Indian consumers are also associated with values of nurturing. This orientation in fact. nourished.5 ml.

psycho graphically. Suresh Venkataraman. 3. training and networking with these retailers should be emphasized. Therefore. The rural consumer is socially. He is the person who pushes a brand to the consumer. One of the main influencer in the rural market is the retailer. companies need to understand the social dynamics and attitude variations within each village though nationally it follows a consistent pattern. Proper selection of the sample for survey.Buying behaviour is different among urban and rural customers in the same income bracket as the rural mind is troubled by uncertainties which may be irrelevant in the urban context. economically different from their urban counterparts. educating. as the consumer is unaware of different brands existing and has no choice or preference. The rural consumer only asks for the generic product from the retailer and the retailer pushes a particular brand according to the availability and the returns he gets out of that brand. SWOT ANALYSIS OF SUPER SHAMPOO Strength: • • Marketing Experience of Mr. . Hence.

• • Good understanding of rural culture and market. 75 % of the BoP (Bottom of the Pyramid) consumers live in the rural market. ISSUES/CHALLENGES FACED BY SUPER SHAMPOO IN THE RURAL MARKET Since Super shampoo is a new brand. Huge untapped rural market. Weakness: • • • Finance Lack of proper distribution channel No brand name as it was new in the market Opportunity: • • • Significant growth in rural market. Availability of homemade Ayurvedic substitutes. therefore it could face quite a few challenges before it positions itself comfortably in the rural market. Threat: • Less affordability of low income strata customers. Advertising blitzkrieg of megabrands. Lack of advertising media in the rural market. Some of the major issues and decision points that could crop up are as follows: . Naming of the product as “Super” to which rural people could connect. • • • 4.

there can be difficulty in relating to the rural consumer. P&G and Cavin Kare respectively. • Competing against the advertising blitzkrieg of the established brands: The above mentioned brands of shampoos are the products of large business houses like HLL. occupations. making segmentation difficult. literacy level. However. Since. contributing to a low standard of living. this is changing as consumers are becoming slowly literate. Head & Shoulders and Chik. The income difference between the few wealthy people and poor create differences in the demand. • Understanding the diversity of cultures: There is a huge difference between the urban and rural mindset. On the contrary. Therefore. Venkataram is from an urban area and his mind thinks in an urban style. outlook towards life and their exposure to modern goods and services. There exists a huge gap between consumer behaviour in rural areas and urban areas. They were Clinic Plus.• Addressing the established brands of shampoos: There were basically three major brands of shampoos in rural South India. they have a huge financial backup to spent on advertising which is invariably the most popular method of marketing a FMCG product. These brands were quite established in their own rights and it would be quite difficult for new entrant to displace these brands from the market. a new entrant like Super Shampoo does not have the required financial prowess to spent on advertising. • Sales Management: . low purchasing power and a low literacy rate. customs and beliefs. • Low per capita income: Rural consumers have low per capita income. Mr. • Understanding the consumer psyche in the changing environment: Demand for a product is varied for people living in different areas with different climatic conditions.

involving more intermediaries and consequently higher consumer process. and customers prefer value-for-money products. STRATEGIES ADOPTED BY MR. These will soon enter the rural markets questioning the survival of Indian brands. Channel management poses a problem as distribution networks in rural villages are lengthy. rural India was what one might call a significantly dark media market in terms of the most penetrated urban media. • Proper media channel: Unlike urban India. • Liberalisation and globalization: India is passing through a transition phase. It reached 18% while print reached 15%. Radio was ahead of print in terms of reach. To survive. for example. dealers with experience are not available. Also. sampling units. there is a need for better distribution systems and retailer service. The element was as below: . Therefore. Foreign brands. TV was the media with the highest reach. For the purpose of sampling.Rural marketing involves a greater amount of personal selling effort compared to urban marketing. 5. India‘s consumer base is poor. with inherent cost structures are delivering affordable products. Venkataraman decided to commission a survey to obtain some insights related to the consumer behaviour towards shampoo category as well as towards the brands. and urban markets are flooded with foreign products. who sometimes do not properly motivate customers. Cinema had a mere 5% reach. the target population was defined in terms of elements. extent and time. likely owing to literacy barriers. it was very important to choose the right media for advertising in rural area. VENKATARAMAN Mr. yet it penetrated only 38% of rural India. The rural salesman must be able to guide the rural consumers in the choice of products.

probability sampling was the chosen technique. yet aware of the top three shampoo brands in the market. category consumption and media consumption. the basis of selection of representative elements of the target population were taken as gender. Seventy five respondents were chosen based on the above criteria. since the income parameter was used at the household level. Acceptability. • Significant TV media consumption and enjoys watching advertisements. two towns (Bidadi and Hoskote) which are part of the Bangalore Rural District and a cluster of adjoining villages (Jigani) were selected for the study. age group. household income. 6. Due to the limited reach of mass media the marketer would have to focus more on traditional media like melas. haats or mandis. The extent was rural Karnataka. The sampling unit was households. in which simple random sampling was performed to select the elements. With regard to sampling frame.000). The selection of the towns was performed based on the judgement of rural household penetration and category awareness.000 and Rs 150. • Category (shampoo) non-users or low frequency users. Availability and Affordability. The questionnaires formulated in English as well as the brand communication material were translated into the local language of the consumer while it was administered. specifically. The second level included individuals fitting the demographics. The individuals were tested through the filter questionnaire to ensure that they met the demographic and category criteria that was required for the study. belonging to rural or semi-urban household basis income classification (annual household income of less than Rs 75.• Females aged 18 to 50.000 or between Rs 75. Within these geographies. which were places where the entire . FINDINGS AND RECOMMENDATIONS To succeed in rural market the company will need to adapt the 4P’s of marketing to the 4A’s in their strategy – Awareness.

Distribution Channels: Most manufacturers and marketers do follow a distribution arrangement for a village with the population of atleast 5000 people. Access and availability are equally important There should be deep distribution and easy availability. Availability is the biggest challenge. the characteristics of product. The rural consumers are more concerned with the utility of the products. the distribution strategy especially framed for rural India are- • • • Co-operatives society Public distribution system Multipurpose distribution canters . With low disposable income product needs to be affordable to the customer. 6. The brand awareness and loyalty in rural areas is quite high. first a brand value must be created among the rural customers. Some of the strategies that the company can adopt are: Product Strategy: The packaging of the product should be in colourful and decent sachets in order to attract the rural consumers. its shelf life and other factors have to be kept in mind. Therefore. Affordability is the key driver in rural India because of which the sachets needs to be carefully priced. STRATEGIZING As seen above there are several challenges for the product can face in the rural market hence they can use try devising some strategy to overcome the challenges.1. While it is essential to formulate specific strategies for distribution in rural areas.population of a village congregated on a periodic basis to purchase a multitude of essential goods while also seeking a say’s entertainment for the family.

Also. describing the product could be distributed among the villagers. Pricing Strategy: The per capita income of consumers in rural areas is quite low as compared to urban areas. Also refill packs can be introduced as they reduce the price. leaflets. print media and cinema are not that popular.• Distribution up to feeder markets/mandi towns/hats etc. CONCLUSION It is quite evident from the case that a proper market survey is required for a new FMCG product in general and a new shampoo product in particular to enter into the . in local languages. melas and mandis. TV. 7. Promotion Strategy: In rural markets. Therefore. the price of the product in rural market should be lower than that of urban market. new and innovative modes of promotion strategies should be adopted. One strategy could be promoting the product at village haats. radio. Therefore.

The consumers are willing to experiment with new products and manufacturers can therefore take advantage of this situation and gradually venture into the market. According to the analysed data. it can be said that the future is very promising for those who can understand the dynamics of rural markets and exploit them to their best advantage. A radical change in attitudes of marketers towards the vibrant and burgeoning rural markets is called for.rural market. marketing executives are fanning out and discovering the strengths of large rural markets. As urban markets are getting saturated for consumer goods (FMCG & Durables). The income pattern of the population in rural areas is a bit wayward and the manufacturer can tap this situation and make profit by use of “Sachets”. so they can successfully impress on the 230 million rural consumers spread over approximately six hundred thousand villages in rural India. the major dilemma for companies today is the gap between the rural and the urban consumer. There is a strong wave in favour of anti dandruff shampoos and shampoos with minerals and proteins which nurture the health of the hair. Thus looking at the challenges and the opportunities which rural markets offer to the marketers. There were days when huge organizations flocked to rural markets to establish their brands. There is a stiff competition and the rural market can be exploited for revenue. The reason why only few companies have managed to venture out is because of the lack of understanding into the psyche of the rural consumer. BIBLIOGRAPHY AND WEBLIOGRAPHY . Today. rural markets are critical for every marketer be it for a branded soap or an automobile. The Indian hair care market is undergoing a sea change in the respects of the buying behaviour and consumer preferences.

thehindubusinessline.Sector Research and Analysis : . html • Rivals eat into HUL’s shampoo market share : http://www. Pradeep (2009): The Rural marketing Book Fast moving Consumer Goods : http://www. Mukesh (2009): Contemporary Indian cases in Marketing /indian-fmcg-industry-outlook-2013/ Consumer Products.ece .ciionline.• • • Pandey. Sidhartha and Kashyap.aspx? enc=prvePUj2bdMtgTmvPwvisYH+5EnGjyGXO9hLECvTuNvwUH5MWzEuAi G8dfH+/Z7F • • Indian FMCG Industry outlook 2013 : marketing/ article 1684908.

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