Professional Documents
Culture Documents
Ever since the dawn of time, looking good and feeling good about self has gone
hand in hand. It all began in Egypt when the healers discovered the curative
abilities of scented oils. Since then the cosmetic industry began and grew to such a
level that it became a part of their religion where the gods were honored with
extensive use of cosmetics. Slowly cosmetics and it allure reached the other parts
of the world too.
In Rome, there was a period when women were not considered beautiful if they did
not wear cosmetics. In china, if a commoner was spotted wearing nail paint, were
to be executed as it was only the privilege of the rich. In Japan, noble women were
forbidden to walk in public without full body cosmetic treatment. India was
famous for using items of day- today use for cleansing and beautifying self. We
used a turmeric germicidal cream known as “Ubtan”, which is still in use as a
beauty-routine before weddings.
The use of a besan mask has been rather popular too. The concoction is very much
homemade and contains gram flour or wheat husk mixed with milk. The wheat
husk would remove dead cell tissue.
During these ancient times, masks were made out of sandalwood, almond, and
coconuts, which in some form are seen today in the form of “natural” and
“organic” beauty products. The use of kohl or kajal has a long history in the Hindu
culture. The use of traditional preparations of kohl on children and adults was
considered to have health benefits.
Kajal was prepared with the soot Early 20th century saw the dawn of the modern
cosmetic industry. Rise of film, photography, fast communications, countless
innovations, and support from large industrialists managed to introduce cosmetic
products to every household in the western world.
Now, the Indian market is experiencing a phenomenon called “luxury products at
regular cost”. This means that consumers no longer need to pay the high price tag
to rejoice the perks of a luxury product.
Cosmetics and skincare is a fast-paced, lucrative and an innovative industry. Like
most other FMCG products, these have an expiration date and hence compel the
brands to come up with innovative marketing and distribution processes.
The report focuses on the beauty and personal care industry, drawing on Industry
Insights. Skincare and beauty market refers to Indian market only unless specially
mentioned otherwise. This report is based extensively on secondary research. The
process involves covering publicly available sources, trade associations, specialist
databases, company annual reports, and industry publications.
Once all the information has been collated, an analysis was done and the insights
are used here. Types of products that are included are:
❖ Bath products
❖ Skin Care
❖ Haircare
❖ Oral Care
❖ Wellness
❖ Cosmetics
❖ Cosmeceuticals
According to a KPMG report, the size of India's beauty and wellness market is
expected to touch Rs. 80,370 crores by 2017-2018. This includes the beauty
products, beauty salon and spa businesses. It is estimated that the salon and spa
business together account for 31 per cent of the total size of the beauty and
wellness market.
Reasons for this unprecedented growth
❖ Changing lifestyles
❖ Navami
❖ Forest Essentials
❖ Kama
❖ Rustic Arts
❖ Juicy Chemistry
❖ Ma Earth
❖ Bon organics
❖ Sinsense luxury
❖ Pure Earth
❖ Khadi
❖ Veda Earth
❖ Ahé Naturals
❖ Bare Earth
❖ Saattvikaa
Pioneer Advantage.
Market Research.
Quality control.
However in India, the market for skin care products is at a very nascent stage.
The business for skin care solutions in India is expanding at a rate never witnessed before and it
includes increased awareness amongst consumers, progress in technology and other such
concepts.
The skin care products available in the market can be segregated into:
Facial creams cleansers, sunscreens, anti-wrinkle creams, dark circle removing creams,
moisturizers, toners, fairness creams, etc.
Approximately 60% of the skin care market consists of facial creams, moisturizers, fairness
creams, etc.
In both the markets urban and rural the penetration level is relatively low.
The Main Reason being that People home-made and traditional products are still preferred by the
people to cure skin ailments.
However, within a period of the last five-six years, it has been observed that there is a huge
demand which is growing exponentially for skin care products in India.
With the adoption of new lifestyles, availability of greater number of choices in products to
choose from and an increase in disposable incomes the general population are now follow their
favourite celebrities and role models more closely and are taking a greater interest in personal
grooming.
The competition amongst products from rival companies to occupy maximum shelf space in
retail stores is at an all-time high.
The cosmetics market now includes facial skin care products as one of their primary
components.
To remove pimple’s, worry lines, acne and to combat stress in an effort to look young, creams
and potions are being used in India increasingly just as is the case in the western countries.
Since the market penetration level is comparatively low, hence growth is expected to be around
20% over the next five years.
The leader with around 53% of the market share is Hindustan Lever which owns Fair and
Lovely, Ponds, Lakme which have a big grasp in the market share of skin care products in India.
Emami – (Gold Turmeric and Naturally Fair) has a market share as well.
Providing a quality skin-care cosmetic cream which closes face pores and gives a non-greasy
face on which make-up can last longer.
Pioneer Advantage
Weaknesses:
Opportunities:
Entering into the Cosmetic and Skin-care Industry at the same time.
Creating new variations of anti-sweat cream at a fast pace to meet different skin requirements
and customer’s sensual needs.
Giving samples of cream for comparison with other foundations, concealers, face-creams for the
summer.
Advancing the cream to a product that protects the skin from UV rays.
Threats:
Global Recession.
PESTEL ANALYSIS
PEST analysis is a part of external macro-environment in which the firm operates can be
expressed in terms of the following factors:
Political
Economical
Social
Technological
To analyze various macro environmental factors we use PEST analysis. PEST analysis fits into
an overall environmental scan.
POLITICAL FACTORS
Some of the political factors to take into consideration are legal issues, rules and regulations of
the government and various others informal as well as formal rules under which a firm must act.
Some of these political factors are:
TAX POLICY: the company has to bear a tax rate of 30%, which is the highest amongst all the
tax rates, as the corporate tax rate. This reduces the profits of the company.
ENVIRONMENTRAL REGULATIONS: as per the norms of the government the company has
to convert 30%of the land area into green land to make the environment eco-friendly, incurring
extra cost for the company.
TRADE RESTRICTIONS& TARIFFS: the company has to bear charges for crossing the state
borders for the purchase of raw materials and the delivery of finished product.
ECONOMIC FACTORS
The purchasing power of a prospective customer as well as the firm’s cost of capital is affected
by various economic factors. Some economic factors include:
INFLATION RATE: the inflationary period is adversely affecting the company as the raw
materials, machineries, etc. have to be purchased at a higher price.
INTEREST RATES: the rate of interest on corporate loan is 12% and the company has to pay a
tax of 60 lakhs per year as tax.
SOCIAL FACTORS
Demographic and cultural aspects form a part of the social factors. These factors affect the
customer needs and size of the potential market. Some social factors include:
HEALTH CONCIOUSNESS: keeping the safety of the end users and social responsibility in
mind the company has used the chemicals that are not harmful for the skin and are a bit costly
than the other chemicals.
ENVIRONMENT NORMS: keeping the environment norms in mind, the company has
converted 30% of its land into the green area and also used eco- friendly paper for the purpose of
packaging.
EMPHASIS ON SAFETY: the company has emphasized on employee safety and has taken a
employees’ insurance policy of Rs.1 crore with an annual premium of Rs. 50000/-
TECHNOLOGICAL FACTORS
Technological factors include ecological and environmental aspects. Some technological factors
are as follows:
RESEARCH AND DEVELOPMENT: the company will have to spend a lot on the research and
development of the product in the upcoming years as the company has the advantage of being a
pioneer in launching such a product in the Indian market and the product will be easily copied by
the competitors. Thus, the company will have to continue investing in the research and
development activities to keep a firm hold in the market.
TECHNOLOGY’S EFFECT ON FIRM’S OFFERING: The increase in the R&D cost will affect
the firm’s offering as the cost of the product will increase with increase in R&D cost.
Segmentation, Targeting and Brand Positioning
SEGMENTATION
MALE FEMALE
Geographic region
India
Density
Gender
Female
Demographic Age
18+
Occupation
Social Class
Psychographic Lifestyle
TARGETING
MALE FEMALE
POSITIONING
Positioning can be defined as the process or steps by which we ensure that the company’s
product have a unique identity and image in the consumers mind.
The main purpose behind it is to fix the brand in the consumers psyche so as to maximize its
prospective benefit to the company goal is to locate the brand in the minds of consumers to
maximize the potential benefit to the firm.
The company will promote its product using various advertisement tools such as television ads,
print ads and broachers.
Analysis of Oral Care Market in India
Oral health care is an integral part of overall health, however this remains the most neglected
part in our country because most of the people visit a dentist only when it is unavoidable. With a
very high prevalence of dental disease (approximately 87 per cent), amongst the Indians
population the oral healthcare sector is geared for a giant leap provided we generate awareness
about dental disease and its consequences as well as about quality dental treatment facilities
available in semi-urban and rural areas. Unlike countries abroad, dental treatment is not covered
by any of the insurance companies in India. Hence, every dental treatment has to be paid by the
individual which in itself is quite dampening as people generally believe that unless a ‘tooth is
hurting’ why should they visit a dentist and ‘hurt their pockets.’
Let’s examine the various aspects which characterise dental care in India with a SWOT analysis
Strengths
In Prime-minister Modi’s words, India’s population is its strength. Dental community should be
able to use this staggering number to its advantage. The country has exceptional avenues for
advanced learning and dental professionals can keep themselves abreast with the latest
advancements to give their patients the best dental care possible. Further, dental treatment in
India is affordable and there is a sharp rise in dental tourism, putting India and its dentists on the
world map. The introduction of quality assurance certificates such as ISO, NABH by the Quality
Control of India and formation of many dental corporates are helping in increasing the avenues
for dentistry.
Weakness
The surprising question that looms large is, “Why does India still lag in channelising dental
professionals?” According to WHO Health Statistics in 2004, dentist – population ratio in India
was 1:30000, and in 2014, the ratio was 1:10000. In the year 2004, India had one dentist per
10000 people in urban areas and one dentist per 1.5 lakh people in the rural areas. This demand
and supply disparity causes excessive burden on the dental professionals practicing in the rural
areas, forcing them to sharply decrease the quality of dental treatment. Quality comes with a cost
and when the treatment versus cost is not met, the axe falls on quality first.
In 2014, NHS England, tried to trace patients for blood borne disease and HIV treated by a
dentist over a period of 32 years and had not followed proper sterilisation protocols. It was found
that he was keeping dental equipment in the staff toilet. In India, we yet do not have a body to
keep a strict check on the quality of dental professionals and their work ethics. The guidelines
are revised from time to time but there is no audit team to check.
Government job vacancies for dental professionals are very less in number.
Records show that only five per cent of graduated dentists are working in the
government sector. The government also often lags in providing basic amenities
to doctors working in rural areas. Most set ups are not fully developed or do not
have a specialist and hence the patients have to run to urban areas.
Opportunities
With multi-dental institutes and many private sector corporate chains emphasising on work
ethics, many dental healthcare workers have a better opportunity. However, much needs to be
done in this area. Evidence–based workforce plans, especially in the poorest and most fragile
states, to motivate existing interns to work in the rural areas and prevent the mushrooming of
dental set – ups in one particular area or city is the need of the hour. Such practices have the
opportunity to provide a platform for young dental graduates and post graduates to be gainfully
employed.
Threats
With the opening up of many private set ups, the threat of sustainability for each individual
practice increases. However this does not affect a multi-practice chain as much. Also, the
examination system and the process of dental selection in the country needs a few amendments.
But with the government’s initiative of National Eligibility and Entrance Test (NEET), barriers
in terms of quality will be met. The challenge will be for those who will not be able to meet the
NEET criteria. However, the government will still not be able to prevent these fresh graduates
from bee-lining towards the urban areas, until and unless they make working in semi urban and
rural regions lucrative.
The Hair Care market remains multifaceted due to the involvement of key players making
greater contributions to the growth of the market. The report analyses the market value, market
demand, as well as pricing factors while making a prediction about the growth rate. It also
studies the restraining factors and scopes associated with the market during the forecast year.
In terms of key players, the report provides an insight into the competitive scenario of the market
along with the key players, latest trends getting into the manufacturing arena, etc. The report also
throws light into top vendors with major contributions to the market.
Amka Products
P&G
L’Oréal
Unilever
Avon
Estée Lauder
Johnson & Johnson
Shiseido
TONI&GUY