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Introduction:
The Indian deodorant market is worth Rs 2300 crores as of 201314 and is expected to grow to Rs 3000 crore by 2017. The following
graph gives us a glimpse about the growth story of deodorant market
in India. The deodorant market is growing at 17-18% year-over-year
for the past three years. While male deodorants contribute 69% to
total sales, women's categories are driving the market with faster
growth. Deodorant is the largest category in the male grooming
space. The number of sub-brands and variants is 986 as of April 2014,
with more than 100 new launches or re- launches over the past year,
Nielsen's reports show. Urban market contributes 90% of the sales.

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2. Industry Analysis:
The objective of Industry analysis is to gauge the strengths and
weaknesses of potential competitors so that the firm can contend
competitively in various markets. It also helps to identify
opportunities for and threats to the firm from the industrial
environment. While formulating a firm’s strategy, managers have to
consider the strategies of the firm’s competitors. Industry analysis is
the driver of an organization’s strategy and affects how firms act or
react to changes in their sectors. The company does industry analysis
to measure and assess its standing amongst the competitors. The
objectives of industry analysis can be grouped under the following
broad headings:

1. Competitors

- Industry analysis starts with identifying

present as well as potential competitors. It signifies an
essential appendage to conduct an industry analysis, which
gives information about probable sources of competition.
Potential competitors for ITC’s Engage Deo are Vini
Cosmetics' Fogg, Hindustan Unilever's Axe, McNROE
Consumer Products' Wildstone & J.K. Helene Curtis
Limited’s Park Avenue.

2. Evaluating Competitors

– This includes evaluating the

marketing strategies, revenues, products, market
penetration of the competing firms. As per market tracker
Nielsen India, 12.5% volume share is held by market leader
Vini Cosmetics' Fogg and 6.9% share each held by Hindustan
Unilever's Axe and McNROE Consumer Products' Wildstone.
ITC's Engage deo stands in the second position with 8.1%
volume share across Indian urban markets - which accounts
for 90% of the overall deodorant market in India. By value,
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AXE has a wide acceptance among the youth which forms the major chunk of perfume & deodorant users. 3.8%.Fogg is has market share at 17. The positioning statement of FOGG focuses on the concept that its body spray contains only perfumed liquid and no gas in it and the company is guaranteeing 800 sprays for a bottle containing 100 gm of container. Customer vs Competitor Orientation – Among all the brands. AXE also has a substantial share in the market because of the brand equity and brand loyalty that it has built and is leveraging the same. Engage at third with 6.7%. 3 . FOGG has emerged as the leader in the Indian deodorant market. followed by three brands closely sharing the next slots.5%.6% and Axe at 6. as per Nielsen data.Wildstone at second place with 6.

'HE'. thereby lending credence to its positioning as a deodorant for couples.On the other hand. which allows them to negotiate favorable contracts with manufacturers. ITC has also scaled up its variants from 6 to 14 in less than a year. Fougere. A lack 4 . thereby enhancing buyer power. Marine. Woody and Musk fragrances and has managed to create a difference in its packaging which will help it boost trial at retailer end. It has roped in Hrithik Roshan as brand ambassador. Engage has focused on engagement and playful chemistry between two partners who are equals. ‘HE’ deo wants to position different from the usual deo positioning of seduction which is a key differentiator. While most brands portray deodorant as a male phenomenon. The target group is the youth. The ad tries to convey the message of the ‘HE’ deo user as a self assured confident and more importantly ‘interesting’ personality. Bargaining power of buyers: Supermarkets and hypermarkets are the main buyers in the global deodorants market and often occupy a strong position in the supply chain. Porter’s Five forces: Threat of New Entrants: Emami has entered the already overcrowded personal care space with the launch of its men's deodorant brand. The pricing and positioning is not starkly different from others. Oriental. ITC’s Engage has positioned itself uniquely in the market. The brand comes in Citrus.

Substitutes: Deodorant soaps: Provides body cleanliness alongwith the goodness of a deodorant Perfumes: Used primarily to provide sweet fragrance Body lotion: Body lotion with considerable alcohol content acts as an antiperspirant Competition in Industry: Rivalry in the deodorants market is increased by the presence of large consumer product manufacturers and lack of differentiation within the market. This is due to the high number of market players and large supply of diverse products to the market.Bargaining power of suppliers: The deodorant industry has a low bargaining power of suppliers. There is not much brand loyalty in the market and there are numerous brands who share the market. There are majorly three channels through which FMCG sales are conducted.of differentiation between products increases buyer power even further. In a market with intense competition like this. namely: Modern Retailers. 3. There are many cosmetic products which are developed by both large and small scale manufacturers.consumers have the power to influence the market prices as opposed to the suppliers. General Retailers and online. Revenue Model: Deodorants is a low involvement consumer good. Due to the huge supply. The revenue models used in Deodorants market is based on these factors. 5 . it is very important to make sure that your product is available at as many places as possible.

the government of India has cracked the whip on deodorant advertisements because of being. increase in purchasing power and urbanization. apparently. 6 . Consumer spending dwindles as growth slows. it helps them to take advantage through this channel due to high trust between company and traders. 4. it should be a little higher but not much higher for the deodorants as the customer base is mostly urban youth which is more internet savvy then other segments. Modern retailers account for around 8% of total market in FMCG.Online retail is not yet significant enough for FMCG products like deodorants even though most of the brands are now available at major e-commerce sites. Social: Rapid increase in the middle class population. while we couldn’t find any data specific to deodorant market. Many a time in the past. With ITC’s extensive distribution network. too suggestive and the content and theme were found "indecent. Economic: The state of the economy plays a major role in any industry.all these factors lead to more focus on hygiene and hence the usage of deodorants increases. Environment Analysis: Political: Advertisements of deodorants are regularly subjected to criticism from the government. change in lifestyle. Most of the revenue is generated through general retailers. vulgar and repulsive" by the I&B ministry.

There's evidence to suggest that. which contribute to the formation of ground-level ozone. at current levels. and many a research paper has suggested that it causes both breast cancer and Alzheimer's disease. a key component in smog. Legal: Many a time I&B Ministry has taken action against ‘obscene’ deodorant commercials. Environmental: One of the key components in deodorants is aluminium. Currently there are almost 200 deodorant brands operating in India.Technological: The research and development cost of deodorants is not very high which provides ease of entry to new players. When triclosan washes off our bodies and down the drain. Recent studies have raised concerns that the antibacterial chemical triclosan may affect human hormone regulation and be contributing to antibiotic resistance. 7 . it may be toxic to some aquatic organisms or have impacts on their endocrine systems. some of it ends up in surface water. Also reports suggests that these products are likely to have the highest amount of volatile organic compounds.

Marketing Mix of Engage: Engage Deo was launched by ITC in 2013. Deodorant industry was crowded with similar products with similar advertising (man attracts women). In just over a year.5. They also try to focus on urban youth. it is already number two in the deodorant market. Fogg changed the market by focussing on its effectiveness and performance. Engage tried to cater to the needs of other 31 % too. Engage also tried to differentiate itself by being a product for both men and women. Marketing strategy of Engage deo is as following: 8 . While deodorant market is mostly dominated by male customers (69%).

The brand proposition – Playful Chemistry. Engage was launched with three pair of deodorants. namely:  Rush (Male) & Blush (Female)  Mate (male) and Spell (Female)  Urge (male) and Tease (Female) Now they have 7 pairs of offering. Deodorant is a highly competitive market with numerous brands competing for shelf space. Engage for men has a bold. is well complemented with this innovative and fashionable packaging design which helps in making some eye catching billboard advertising as well. a differentiated packaging helps in catching the eye of the customer. Packaging is made to appeal to the target group that is youth. they try to differentiate with their packaging. Black represent masculinity 9 . modern look and has been designed in classical black with a tinge of effervescent colours.4P Analysis Product Continuing their theme of a deo for couples. In this. namely (other than earlier three):  Frost (M) and Drizzle (F)  Jump (M) and Trail (F)  Intensity (M) and O’Whiff (F)  Fuzz (M) and Tempt (F) Also. they have variants in pair. Packaging is mostly in peculiarly shaped cans and uses ‘silhouettes’ as its key design component.

Blue. colour codes show which specific variant it is from Engage and having a colour code will ease purchase for customers. Price Price of different brands of Deodorants is as follows: 10 .and bottle being mostly black helps in distinguishing the specific product as the male one The range for women are in bright hues of Pink. Also. Yellow and Green on a can shape designed with contemporary feminine patterns. Bright colours are generally more attractive to women and this kind of packaging distinguishes the male and female products properly thus making it easy for customers to pick the product.

Its also gearing up to roll out their products through paanwallahs and feriwalahs.000 markets & 2 million retail outlets. This advantage in channels have meant that Engage have been available at every place in India. one of the recent example of that would be the e-choupal initiative which links farmers directly to the company in a mutually beneficial relationship. It is focussed on urban youth and tried to provide service at a price well within their means. This reach has certainly been one of the major factors of them being able 11 .From this table we can see that the Engage deo is priced toward the lower side of the market. Also. Perceived value of the deo is almost the same as for other products in the same price range. ITC’s distribution for cigarettes over the years meant that there is a high amount of trust between the company and paanwallahs. ITC is planning to use them to distribute their product. snapdeal etc. ITC can do Direct servicing of 1.00. Brand name of ITC means that they tend to get better shelf space then other brands in different retail outlets. This can also be seen by the fact that the market share of engage deo is increasing which can only be because the customer is finding value more than the price being charged. Place ITC has a very extensive distribution network reaching out to far corners of India. ITC has been doing many innovations in the field of distribution management. Especially the target group of urban youth is easily covered. thus shaking up its distribution. its available now on major online retailers like flipkart.

The strategy was to promote the brand among youth while also bringing alive special couple moments ‘engaging’ in a new language of 12 . In addition to being sold as separate pieces. This is to enhance the positioning as a brand for couples. It shows deodorant as a product which is used by both men and women. While Axe and a few other deo were focussed on ads which showed men being desirable after using their product. it is also being sold in couple combo packs which offers some monetary benefit over purchasing separately. A unique positioning coupled with ITC’s extensive distribution network has led to the success of Engage. Ad is based on the “Chemistry between the couples Its tag line is “Love has an all new language”. and while Fogg showed itself to be a brand which gives high value. the market is actually male dominated with 69% of volumes being consumed by male consumers. With such high competition and so many brands competing. Its attractive packaging design is meant to attract this urban youth population. to number two position in deodorants market. One of the promotion technique which used the packaging design was executed in Mumbai and Bangalore. Wild Stone etc. a differentiated product is very important. Promotion Engage is being positioned as India's first 'couple deodorant'.to leapfrog brands such as Axe. While. Engage was trying to position itself as something which celebrates young love.

Large units were created in the shape of the deodorants as they are sold and placed at famous destinations like the ‘romance rocks’ at Bandstand. In rainy season ITC created umbrellas with the silhouette of a couple. gardens. These were then handed out to couples seated in parks. college campuses and popular streets. 13 . This is what the positioning of ‘Engage’ is all about. Carter Road and Marine Drive.love. This campaign helped define Engage as a brand for young couples. They created branding around benches in these areas with placed standees.

young professionals Income: middle income group POSITIONING: The company started an aggressive TV campaign with a high number of ads being broadcasted at prime time and high viewer segments such as cricket matches.1. It focusses on youth (15-30) in Urban and Semi-urban areas. Fogg Company – Vini Cosmetics Segment: Outdoor oriented.6. Competitor Analysis: 6. trendy TARGETING: Concentrate on customers seeking products which give value in excess of its price or for sophisticated customer. Fashion oriental. bachelors. The positioning statement of FOGG body spray focuses on the fact that it contains only perfumed liquid and no gas in it unlike other 14 . The brand tried to differentiate itself from other products which were only focussing on advertising which shows the same concept of boy attracting girl. who are value oriented and will be attracted by the longevity and quality offered by Fogg Occupation: Students. They have positioned the brand based on a very logical appeal where they focus on the positive qualities of the product and how much better its performance is in comparison to other products which they say only consist of gas while FOGG is without gas and full of product.

199 per 150 ml SKU. ‘Black’. ‘emperor’. It promises long lasting fragrance and 800 sprays per bottle of Fogg deodorant. With promise of no 15 . Royale’. ‘Fresh’. It comes in various fragrances targeted for men and women. and in various fragrances like ‘Marco’. ‘Majestic’.products and the company is guaranteeing 800 sprays for a bottle containing 100 gm of container. etc. The tagline is. and its ‘Black’ range of deodorants as priced at Rs. This have created a differentiation for FOGG in terms of quality of product. Price: Fogg is priced at Rs. ‘Napolean’. 179 per 150 ml bottle."Bina Gas wala body Spray".in English it means -"A body Spray without gas" PRODUCT The USP of the product is that it is perfume based deodorant unlike its competitors which are gas based.

and 800 sprays pr bottle it is priced as a value for money product. trendy. Axe TARGETING: Concentrate on single-segment (male 15-30) in Urban and semi urban areas. cosmopolitan with regular and high usage of deodorant.2.gas and only perfume. Promotion: Fogg has positioned the brand based on a very rational appeal where they have shown a customer who is using a normal brand and gets fed up with it because the body spray consists of only gas. It is available in modern trade as well as rtail trade stores all oveurban and rural India. The tagline is. Then a comparison is shown between a normal body spray and the FOGG body spray where the normal body spray fills glass less than half with liquid where as the rest evaporates as gas. and only gas comes out instead of the perfumed liquid. Place: Vini Cosmetics. the parent company which manufactures and markets Fogg range of deodorants has a wide and deep distribution network in India. who are lifestyle oriented. 16 . where as the FOGG body spray fills the glass more than half with almost none of the liquid getting lost due to gas."Bina Gas wala body Spray"Which in english means -"A body Spray without gas" 6.

It also ensures that consumers are mostly engaged with new Fragrances. bachelors. Besides TV commercials the brand also uses internet media and sponsoring some events. Axe had a profile lunch of its new fragrance "Axe Peace". The male models used in Axe advertisements are regular guys. This conveys the message that Axe is for everyone. 17 . The biggest strength of this brand is the underlying message that the brand users are high on confidence and always go for the Axe.Occupation: Students. and your confidence and Axe Effect can cast a spell on girls. In 2014. who use models with perfectly chiselled bodies. unlike those of its competitors. young professionals Income: middle income group POSITIONING The company extensively uses the TV ads and conducting many Campaigns.

Interactive 18 . PLACE Placing and availability of product plays significant role in determining the sales of product.The bottle of Axe deodorant looks more sturdy and its twisting on top which is better than older design. Axe comes up with new fragrances and range of deodorants every 4 months to keep the freshness of brand alive. The price of all variants of axe is same. apollo. They just have different fragrances and flavours. it offers good fragrance which has long lasting effect. PRICE AXE deodorant is priced to offer its customer’s good value for money. Quality: All the variants of AXE deos are dermatologically tested and do not have any kind of side effects on the skin. drug stores of all sizes.PRODUCT: Variety of AXE DEO's: Axe offers a wide range of fragrances in their deodorants. Some variants of AXE are : peace. harmony. dark temptation etc. traditional mom and pop stores. Rs. PROMOTION Advertising: Primary tool used by AXE is TV commercials.Unique bottle helps in brand differentiation and better recall. excite. Axe relies on location and distribution channels. print ads and billboards which increase brand awareness. 150 for 150 ml of deodorant. anarchy. There is high availability of Axe deos in all stores such as modern retail.

Occupation: Students. Central Theme of Campaigns: Seduction where Girl makes the first move. Various campaigns "Call me". cosmopolitan with regular and high usage of deodorant.Marketing: Engage customers and directly or indirectly raise awareness through social media and online campaigns like ‘theaxeeffect.3. Brand assumed that Men like to be seduced. "AXELand" for an increased customer engagements. who are lifestyle oriented. the communication was not personalized to the Indian 19 . "AXEfeather". Tagline: ‘THE AXE EFFECT’ 6. trendy. such as mild fragrances for office-goers. young professionals Income: Middle income group Same as AXE. Wildstone The idea. POSITIONING Product was positioned as a ‘sexy’ or ‘naughty’ product for young males which transformed an uninspiring average Joe into the jealousy-inducing Chick magnet. with rising sales and market share in southern and western markets. While ‘sexy’ was the buzzword in the segment. bachelors. but high regional concentration of sales in its home turf East India. is to create occasion specific offerings.com’. stronger ones for party-goers and so on. TARGETING: Concentrate on single-segment (male 15-30) in Urban and semi urban areas.

the characters weren’t relatable to the audience. Ultra Sensual. While they did capture attention and communicate. Aqua Fresh. The price of all variants of Wildstone is same and is priced similarly as its competitors. PRODUCT: Wildstone too offers a wide range of fragrances in their deodorants.com. Also available for sale on ecommerce sites like Flipkart. PLACE Wide distribution network ensures high availability of Wildstone deodorants in all stores such as modern retail. set in typically Indian scenes like Durga Puja. keeping in view the mystery element associated with the product.clientele. traditional mom and pop stores. Unlike others who were tagged as ‘playful’ and ‘youthful’. drug stores of all sizes pan India. This is where Wild Stone differentiated. who the audience can relate to. PRICE: Wildstone deodorant is priced to offer its customer’s good value for money. mysterious and not overtly sexual. While others promised the user the attention of hordes of girls. Wild Stone promised inciting deep passion and frenzied fantasies in a single woman – Indian. 20 . they communicated through Indian men and women. Smoke. Some variants of Wildstone are: Red. Thunder. Axe and Set Wet propagated their message through foreign models in foreign locations. traditional. Night Rider etc. Holi or Monsoon season. Adopting to the Indian tastes. Wild Stone became associated with ‘passion’ and ‘mystery’.

ranking the performance of each deodorant brand over different pertinent attributes. Methodology: Deodorant users were asked to fill up a survey. Central Theme of Campaigns: Seduction where Girl makes the first move. Brand assumed that Men like to be seduced. print ads and billboards which increase brand awareness. including Engage and other brands. Thus is helps the marketers take decisions pertaining to the following questions: how much to differentiate the product from competitors’ products? . 7.PROMOTION Advertising: Primary tool is TV commercials. and how to position a particular product on the basis of prominent attributes to cater to the target consumer segments. The ranking table used for the survey is as shown hereunder: 21 . Two prominent attributes of deodorants are chosen as dimensions over which the position of various products were plotted. Perceptual Map A perceptual map is created to identify how customers form a mental picture of the various deodorant products. The perceptual map helps identify the degree of likeness or differentiation among different products available in the market.

What do you perceive about the PRICE of the following brands? 4. What do you perceive about the STORE AVAILABILITY of the following brands? Survey outcomes The respondents provided following ratings to different brands that were surveyed: 22 . What do you perceive about the DRYING QUICKNESS of the following brands? 6.Questions on the survey used to determine the rank of deodorants across different attributes were as follows: 1. What do you perceive about the PACKAGING of the following brands? 2. What do you perceive about the FRAGRANCE of the following brands? 3. What do you perceive about the ANTI PERSPIRANT quality of the following brands? 5.

0.0.0.0. these two attributes were chosen as axes for the perceptual map.Regression Analysis To identify the correlation among different attributes that were used to evaluate deodorant products. which is shown in the figure: 23 . The coefficient of correlation (R) came out to be the highest for fragrance and packaging of deodorants.094835502 Observations 5 Therefore. and was equal to 0.98: Regression Statistics Multiple R . regression analysis was carried out amongst the variables shown in the above table.942997216 Standard Error .957247912 Adjusted R Square .97839047 R Square .

But they could try to have a universal approach to positioning. But they could instead shift to a positioning which caters to a bigger customer base. Right now they only focus on playful chemistry for urban youth. This positioning would be similar to its current positioning in the respect that they try to focus on romance aspect of it. One recommended strategy would be as a symbol of love for all ages. But now its positioning could be as a timeless symbol of love which would increase its universal appeal.8. 24 . Recommended Strategies: Universal Approach Till now the positioning of Engage have focussed only on a specific target group.

Price Current pricing strategy gains them the access to a large customer price. They should continue with their differentiated packaging as it helps them gain more eyeballs on shelf. They could expand upon it and introduce other combo offers like budget combo. A premium variant can also be introduced down the line. They could introduce more products which can be differentiated on some other variety. For example. 25 . family combo etc. These combo offers with a universal approach can help differentiate Engage while still making it appeal to a universal audience Product Right now they only focus on products for couples.Combo Offers Right now they only have one kind of combo offer that is for a pair of deodorants for couples. They could use their superior supply chain to develop and gain rural markets. if we continue the above universal approach then it can produce products which are named after different moods related to love. Budget combo could be an offering which offers lower prices when u buy in bulk any combination of deodorants. While Family pack could offer combos which includes products for all family members. A premium priced product can help them gain more market share from upper class people Place ITC should continue using its supply chain capabilities to drive the growth of Engage Deo.

Ads should try to position Engage as a symbol of love for all ages. Suggested Tagline: “Spray love” 26 .Promotion A shift to a universal approach should be shown in advertising campaign too.

in/2013/06/engage-deocouple-deodorant./ITC-CorporatePresentation.in/2012/01/fogg-deo-nogas-only-deo.pdf  www.blogspot.scribd.Bibliography  Google.html  www.itcportal..com  Wikipedia.com/about-itc/shareholder.com  http://marketingpractice.blogspot.html  http://marketingpractice..com%2Fdoc%2F244780291%2FDeodorantIndustry-Analysis-ITCEngage&ei=XwBuVPueDYq3uQSj8IDoDA&usg=AFQjCNEDw5A7 EaiEjLW6FsKMTyQlOymPYQ&sig2=kyjjnZitihQR8vM2R9QyYQ 27 .