MSL-760

Marketing Term Paper

Industry: FMCG Health, Hygiene & Wellness

Submitted By:

 Prasoon Kumar Parihar - 2021SMF6556

 Priyam Sehgal - 2021SMF6515
 Rimmon - 2021SMF6578
 Rishabh Bhatia - 2021SMF6621
 Surbhi Pareek - 2021SMF6501
 Overview:

The paper discusses an overview of the FMCG Sector, its market analysis and future prospects. In this
paper we have described FMCG industry as a whole, marketing mix, STP, Product life cycle, product mix.
Consumer items that sell quickly and at a low price are known as fast-moving consumer goods. Although
fast moving consumer goods have low profit margins, they account for more than half of all consumer
expenditure.

The Market leader, challengers, followers, and niche players in FMCG Industry:

FMCG Health, Hygiene, and Wellness contains a number of subindustries, each of which must be
evaluated separately in order to determine market competitiveness and market leader.

 Nutrition and Healthcare products:

 Product Mix: Health drinks, Nutrition supplement.

Nutrilite Dabur Patanjali Honey Horlicks Fastrelief

XS whey protein Chayawanprash Patanjali Boost Zandu Balm
XS energy drink Dabur Honey Chayawanprash Knorr Soups Zandu Pancha
Bodykey Dabur glucose Amla Juice Lipton Green Ortho Vedic Oil
nutritious shake Pudinhara Patanjali Pachak Tea Pancharishta
Omega Honeytus Immuno charge Nityam
Real Juice Kesari Jivan
Shivakshar Mentho plus
Churna Fast Relief
Vedic Suraksha
Tea
Dabur Shilajeet

 Other Market Players:

o Cadbury
o Abbott
o ITC
o P&G
 Market Leader: Dabur India Ltd. is a major FMCG firm in India, with revenues of Rs. 8,703.59
crore ie (US$ 1.23 billion) in FY20. Dabur being the India's most trusted name and the world's
largest

 Personal care products:

 India's personal care industry was valued at $25.9 billion in 2020 and is expected to increase at an
annual rate of 8.1 percent to $32.7 billion by 2023.
Personal hygiene items, such as bath and shower products, deodorants, and other deodorants, as
well as hair care, skin care, colour cosmetics, and perfumes, are the key segments of the personal
care market. Each group has its own set of growth patterns and trends.

Indian Personal Care Market Share by Product

Type

0.078 0.141 Oral Care

Skin Care
Hair care
Colour cosmetics
0.14 Deodrants
0.302 Bath and Shower
Others

0.032 0.242
0.065

Penetrati on of select FMCG Personal Care

Products in India (%)
90.00%
79.00%
80.00% 75.00%
70.00% 68.00%
70.00% 63.00%
59.00%
60.00% 54.00%
50.00%
40.00% 35.00%
30.00%
20.00%
10.00%
0.00%
Shampoos Toilet Soaps Washing Hair Oils Toothpastes Detergent Skin creams Toothbrush
Powders Cakes and
Bars

Product Mix: We have Shampoos, toilet soaps, washing powders, hair oils, toothpastes, detergent
cakes/bars, skin creams, toothbrushes, and other personal care products

Clinic Plus Vivel Cinthol, Vicks Toothpastes

Pears Engage Godrej Nupur Olay Mouthwash
Dove Savlon Godrej Expert Gillette Toothpowder
Lakme Superia Renew Pampers Palmolive thermal
Sunsilk, spa
Vaseline
Glow & Lovely
Other Market Players:
o Patanjali
o Dabur
o Marico
o L’oreal
o Nivea
o Raymond Group

Market share of more than 50% in India's skin care business, HUL is by far the most powerful
corporation. Colgate occupies almost 53 percent of the Oral care market.

 Household care Products:

This segment is a volume driven market with low margins and is marked with stiff competition. This
segment occupied a share of 11% in Indian FMCG market and recorded robust growth in the past five
years due to focused innovation in the product portfolio to provide greater consumer value.

Indian Household Care Market Share, by

Product Type

3.00%
9.00% 9.00%

16.00%

63.00%

Toilet care Dish washing Insectoide Laundry Care Others

Product Mix: Toilet cleaner, room freshener, bathroom freshener, car freshener, Floor cleaner etc.
 Cif Cream Lysol Goodnight Ariel Xpert Ultra Gel
Cleaner Air Wick HIT Tide (Liquid)
Comfort fabric Mortein Aer Ambi Pur Ghari Detergent
softeners Powder
Harpic Ezee
Domex Ghari Detergent
disinfectant Cake
Wheel detergent
Surf Excel
detergent
Vim

Other Market Players:

o Dabur
o Future Consumer Limited
o SC Johnson Products Pvt. Ltd.
o Fena Private Limited
o Pitambari Products Pvt. Ltd.

 The market for toilet cleaners in India is projected to be worth approximately '60 crore every year.
Reckitt controls the toilet care business, with its Harpic brand accounting for 70% of all sales. Sani
fresh from Dabur and Domex from Hindustan Unilever are two competitors in the category.

 Female Hygiene Products:

Due to presence of fewer regional and domestic competitors, the India feminine hygiene industry is
consolidated. In India, market for feminine hygiene products was estimated at INR 25.02 billion in 2018,
it is expected to grow to INR 58.62 billion by 2025, thanks to the arrival of new players and start-ups.

Product Mix: Sanitary Pads/Napkins, Tampons, Menstrual Cups etc.

 Sirona PeeBuddy Stayfree Kotex Tampax heyday Sanitary
Sirona menstrual Carefree Depend This is L pads
cups O.B. PRO Whisper heyday menstrual
Sirona pain relief comfort cups
patches Playtex
Tampons

In India, the most popular brands are P&G brand Whisper (54.8% market share), J & J brands Stayfree
and Carefree (30.8% and 1.4% market share respectively), and Kimberly-Clark Lever Ltd brand Kotex
(3.4% market share.

 Childcare Products:

The growth of the Indian childcare Rising parent awareness of early childhood education and care.
Factors like rising parental disposable income and growing urbanization have resulted in increased
brand awareness and penetration of international preschools in the country.

Product Mix: Toothpaste, Diaper, Shampoo, Soap, baby food, baby wipes

Dove Johnson's Huggies Pampers Cerelac

Junior Horlick's NaturNes
 GoodNites
Nido

Some other Baby care vendors are

o Amul
o Unicharm (MamyPoko Pants)
o Aditya Birla Group
o Chicco
o Emami
o Kiwi Baby
o Marico
o Mothercare

Product Life Cycle of five leading products in the industry:

1. Colgate

INTRODUCTION GROWTH MATURITY DECLINE

Figure: Product Life Cycle Curve for Colgate

Introduction: In 1896 as Ribbon Dental Cream.

Growth: In 1997, Colgate Total toothpaste with 12-hour protection making it the market leader.

Maturity: First increasing sales but at declining rate, then stable and after that ready to decline.

Decline: Colgate’s Toothpowder not much popular, shift towards dental creams and mouthwash

 Category: Personal care hygiene products in oral care section.

 Top selling Products:
 o Colgate Toothpaste Active Salt.
o Colgate Visible White Dazzling White Toothpaste, Sparkling Mint.
o Colgate Slim Soft Charcoal Toothbrush. ...
o Colgate Anti-Cavity Kids Barbie Toothpaste.
o Colgate ZigZag Toothbrush.
o Colgate Swarna Vedshakti Toothpaste.
o Colgate Plax Vedshakti Mouthwash

 Market Share:

 Challenger: Pepsodent
 2. Harpic

INTRODUCTION GROWTH MATURITY DECLINE

Figure: Product Life Cycle Curve for Harpic

Introduction: In 1932 as Harpic sprinkler.

Growth: More products such as surface cleaner, enhanced toilet cleaner to increase sales.

Maturity: Launch of new Flush Matic, making it stable and then a start in decline.

Decline: Harpic Sprinkler no longer in use, shift towards advanced toilet cleaners.

Harpic, the leading toilet cleaning brand was launched in the year 1984 and had a rapid growth
since 2000.
 Category: Home care hygiene products
 Parent Company: Reckitt
 Market Share: In India Harpic of Reciktt holds 70% of the market share of toilet cleaner
sector.
 Challenger: Domex, HUL
 3. Whisper Sanitary Napkins:

INTRODUCTION GROWTH MATURITY DECLINE

Figure: Product Life Cycle Curve for Whisper

Introduction: Use started as early as the 10th century in Suda.

Growth: Broke the taboo around periods and the superstitions associated with it, Whisper came out
with our award-winning campaign ‘Touch the Pickle’. 

Maturity: Introduction of Whisper Bindazz, ultra clean and ultra-soft sanitary napkins.

Decline: Decline in use of cloth rags, menstrual rags as same is replaced by disposable napkins.

 Category: Female Hygiene Products

 Parent Company: P&G
 Product Depth:
o Whisper Ultra
o Whisper Ultra Soft
o Whisper Maxi Fit
o Whisper Bindazz
o Whisper Choice
o Whisper Choice Aloevera
 Market Share: As per Euromonitor International P&G brand Whisper has a market share
of 50.4% in India in the year 2020.
  Market Challenger: Stayfree of J&J

4. Fogg Deodorant:

INTRODUCTION GROWTH MATURITY DECLINE

Figure: Product Life Cycle Curve for Fogg

Introduction: In 1950’s deodorant spray formulation began.

Growth: More products with different brands including Fogg, unexpected increase in sales

Maturity: Launch of roll-on deodorants, making it stable and a shift towards maturity.

Decline: Stop Ette, old spice etc. no longer in use, shift towards Fogg, Axe etc.

 Category: Personal care hygiene products

 Parent Company: Vini Cosmetics
 Product Depth:
o Fogg Impressio Scent
o Fogg Xtremo Scent
o Fogg Marco Body Spray
o Fogg Essence 1000 Body Spray
o Fogg Fragrant Body Spray Paradise
o Fogg Scent Impressio Eau Parfum
o Fogg 1000 Sprays
o Fogg Xpressio Scent
  Market Share: It is the market leader in Indian deodorant market with 15.8% market
share in the year 2020.

 Market Challenger: Nivea

5. Pampers:

INTRODUCTION GROWTH MATURITY DECLINE

Figure: Product Life Cycle Curve for Pampers

Introduction: In 1982 elasticized wing fold diaper hourglass shaped inspired by Luvs.

Growth: In 1990 introducing gender specific wipes in Pampers brand.

Maturity: Introduction of baby fresh wipes, Pampers pure without chlorine bleaching and allergens
Decline: Decline in use of cloth diapers, nearly a complete transition to disposable diapers.

 Category: Childcare hygiene products - Diapers

 Parent Company: P&G
 Market Share: Pampers and Huggies share around 80% of market share globally.

 Market Challenger: Huggies and Mamy poko pants

Consumer behavior according to our primary research:

Category: Hygiene -> Subcategory: Toilet care

Category: Feminine Hygiene -> Subcategory: Sanitary pads

Price vs Quality
 Consumer Score
She 43

Kotex 40

Stayfree 88

Whisper 80

0 10 20 30 40 50 60 70 80 90 100
Category: Childcare -> Subcategory: Diapers

Category: Personal Care-> Subcategory: Deodorants

Category: Personal Care-> Subcategory: Toothpaste
Segmentation, Targeting & Positioning:

Whisper

Segmentation

Whisper Sanitary Napkins, belongs to P&G, as a premium product, is aimed at the urban
segment of society and meets their specific needs.

Targeting

Whisper targets a specific age range of 15 to 30 years old. Whisper products cater to is the
aspirational young female sector. Whisper's teen marketing has succeeded in cultivating
consumer loyalty simply because the teenagers continue to use the product far into adulthood.

Positioning

 Premium and to satisfy the needs and requirements both physically and emotionally

Harpic

Segmentation

Harpic, belongs to Reckitt, the leading toilet cleaning brand segmented the market in
demographic basis – mainly they segmented the market based on marital status, age, and
income status

Targeting

Harpic generally targets Housewives or homemakers in the age group of (30-50) who are
consumers of the products and advertise their products featuring homemakers in it.

Positioning

Harpic position their products as normal household products which assures most clean and
hygiene toilet with total germ killing.

Colgate

Segmentation

Colgate segmented their audience for different goods by adopting different methods of
segmentation, such as age-based segmentation for toothpaste. Colgate divided their audience
 into two groups, which are as follows:

 Segmentation based on behavior

 Segmentation by demographics

Targeting

Colgate caters to practically every demographic by offering unique items to each group, allowing
them to reach a broader audience faster. Colgate mostly appeals to persons in the middle and
lower classes.

Positioning

Attractive packaging: The package looks incredibly fresh, light, and respectable, appealing to a wide
audience while still expressing the correct message.

Colgate launched the Smile Show campaign with the goal of drawing attention to the most "visible"
aspect on people's faces: their teeth.

Customers Trust: Colgate has always created strategies that touch the sentiments of the customers.

Pampers

Segmentation

Pampers has focused on urban customers rather than rural customers. Pampers has further split
the market by income, baby development phases, and people's life stages.

Targeting

Pampers target first-time mothers with babies aged between 0-3 years old.

Baby Dry Pants, Active Baby, New Baby, and Dry Baby are the four product varieties offered by
Pampers.

Positioning

Pamper is unique with its clear brand positioning that does not only put emphasis on product
usage and function benefits but also other things. Pamper position itself as a premium brand.

Fogg

Segmentation

People willing to try new products have been segmented. Segmented on the basis of income by
including middle to upper middle-class people. Segmented young audience in the age group of 16-30
who are fashion oriented generally.
 Targeting

Fogg targets a specific age group of 16-30. It is also targeting middle class people.

Positioning

A body spray without gas which lasts longer therefore.

Claims more sprays per bottle.

Adventurous and catchy marketing.

Challenges faced in the market by new product entrants:

For companies, developing new products is an arduous and time-consuming process. Product
development times range depends on the complexity of the product. These stages are:

1. Designing the Concept

2. Detailed Design of the product
3. Procurement of materials and Manufacturing
4. Transportation and logistics
5. Assembly/ final stage of development of product
6. Prototype testing of the product

There are some other factors that can catalyze the gap in the health and hygiene industry too.

 Government role in new product introduction: Government innovation policies influenced the
process of new product development and product competitiveness in a direct and noticeable
way.

 Market Dynamics: Market dynamics is a situation in which a frequent and unpredictable market
within an industry exacerbates risk and uncertainty in the new product introduction. Low
entry/exit barriers are constantly changing the competitive structure of the industry.

 Non- alignment in Product and market demands: One of the gaps that comes while introducing
new products is when the new product doesn’t align with the market demand. This can happen
several times. Introduction of innovative or new hygiene products may fail to meet market
demands.

 Market that is not prepared for the new product: Increasing awareness can aid in reaching a
bigger audience. One of the greatest roadblocks to significant market penetration for women's
intimate hygiene products is a lack of information.

 Costs of product exceeding the Planned Cost: There are times when products are introduced at
a price that is higher than the desired price, or worse, without knowing the product's planned
 cost. To address these difficulties, procurement teams frequently revaluate and resource
selected vendors after launch to reduce costs.

Conclusion:
Through the paper we derived that FMCG industry demands innovation on a regular basis after going
through the product Life cycle. How product depth is needed and how consumer behaviour changes by
new entrants in the market. Through primary research and STP we understood how a product is being
positioned and audience targetted.