Shampoo

Shampoo Market in India0

Hair Care Fastest growing segment

Shampoos: High priority segment for FMCGs Market size: Rs 850 cr. (value) or 30,000 tn. (volume) Low penetration (Urban 36% ; Rural 12%)
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Awareness, Attitude and Usage

Awareness, Attitude and Usage

Traditional mindsetoil and shikakai for hair care Shampoos came as cleansing agent, but habit did not go Termed as cosmetics and beauty products Three major barriers to shampoo use:
Shampoo contain harsh chemicals High price Shampoo glamour product rather than hygiene product

But off late, heavy advertising greater penetration Shampoos no longer seen as products for occasions
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Types of Shampoos in India

Major Players
Dominated by handful Market leader: HLL (68% by value ; 65% by volume) Key Brands:
HLL Sunsilk, Clinic Plus, Clinic All Clear P&G Pantene, Head and Shoulders Cavin Kare Chik, Nyle

Other players: Colgate Pamolive, Godrej, etc.

Slow Growth Rates

Growth interrupted in 2003 Three major barriers to shampoo use:
Shampoo contain harsh chemicals High price Shampoo glamour product rather than hygiene product

Marketers, however, feel price to be the key barrier Tried low SKU packs Result not much growth

Innovations in SKUs
CavinKares initiative:
Chik shampoo sachet for 50p Chik 50 ml bottle for Rs. 6

HLLs response:
Lux shampoo sachet for 50p
Clinic Plus 30 ml bubble pack for Rs 8 (provided re-usability option)

Innovations in Features
Marketers tried adding value making shampoo to give functional rather than a glamour touch Anti-dandruff shampoo the first attempt Variants for dry, oily and normal hair

Head & Shoulders Menthol, Pantene Lively Clean, etc.

Godrejs colourgloss shampoos, JnJs medicated shampoos, etc.

Herbal Opportunity
Barrier to shampoo usage reluctance to apply chemicals on hair Rapidly growing herbal shampoos market Early entrants
Ayur (RDM Traders Pvt. Ltd.) Nyle (Cavin Kare Limited) claimed to use amla, nuts, shikhakai, neem, etc.

Nyle Herbal among top 5 brands in the country Even Sunsilk has come up with fruitamins Key barriers:
Price Require more concentration of herbal
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Factors

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Consumer Behaviour Patterns

Annual Income vs Size of Shampoo Bottle
People who have annual income less than Rs 2 lakh prefer to buy sachet People earning more than Rs 2 lakh prefer to buy bottle People who are earning more have tendency to buy larger size bottle.

Sex vs Usage Attributes

Male: Anti dandruff, conditioning and removing stickiness Female: Conditioning, shining hair and removing stickiness

Retail Outlet vs Kind of Shampoo

Absolutely no association Most of the shampoos are purchased from departmental stores

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Consumer Behaviour Patterns

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Generic Marketing Strategies

Product and price
High number of variants Brands present in multiple segments and price bands SKU: Sachet

Promotion
Television advertisement Sales promotion - free samples

Place
Intensive distribution strategy

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HLL
Product Product Variants Segment SKUs

Sunsilk Colour Shine

Vibrant Burgundy Rich Dark Brown Radiant Light Brown Lively Golden Highlights Dazzling Shiny Black
Velvety Soft Thick and Strong Damage Repair Natural Straight Serum Deep Shine Serum Damage Repair Lotion Damage Repair Intensive Conditioner Fall Resist Intensive Conditioner Regular Ayurvedic

Cosmetic

500 ml, 250 ml, 120 ml, 60 ml, 4 and 8 ml sachets

Sunsilk Hair Expert

Medical

1000 ml, 450 ml, 200 ml, 120 ml, 8 ml sachets

Clinic

Medical

25 ml, 100 ml, 200 ml, 300 ml, Sachet 15

HLL: Strategies
Product
Variants are harmonized in terms of the product mix fragrance, colour and ingredients: Sunsilk Naturals Highest number of variants

Promotion
Innovative promotion channel: Sunsilk gang of girls Brand experience in form of therapy centres: Lever Ayush

Place
Intensive distribution network

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Proctor & Gamble

Product Product Variants Segment SKUs

Pantene

Amino Pro-V Smooth and Silky Volume and Fullness Long Black Hair Fall Control Lively Clean Smooth and Silky Refreshing Menthol Clean and Balanced Silky Black Naturally Clean Nourishing Aloe Vera Rich Silky Clean Complete

Cosmetic

200 ml, 100 ml, 7.5 ml sachet

Head & Shoulders

Medical

200 ml, 100 ml, 7.5 ml sachet

Rejoice

Herbal

200 ml, 100 ml, 7.5 ml sachet

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Proctor & Gamble: Strategies

Product
Late entrant in this business, products mainly aimed against HLL markets High number of variants

Promotion
The multiple brands with different positioning, both in premium and mass market segment

Place
Intensive distribution network

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CavinKare
Product Product variants Segment SKUs

Chik

Black Jasmine

Cosmetic

500 ml, 250 ml, 120 ml, 60 ml, 4 and 8 ml sachets

Nyle

Reetha Shikakai Tulsi

Herbal

1000 ml, 450 ml, 200 ml, 120 ml, 8 ml sachets

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CavinKare: Strategies
Product
Products aimed for mass markets in both cosmetic and herbal category Chik: second largest selling shampoo in India in this category

Promotion
Innovative marketing strategy: Introduced 50p trial sachet

Place
Initially targeted local South Indian market: Now Pan Indian Focus on marketing and distribution
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Dabur
Product Vatika Anti Dandruff Shampoo Vatika Heena Cream Conditioning Shampoo Anmol sarso Amla Anmol Silky Black Anmol Natural Shampoo Segment Medical Cosmetic Herbal Cosmetic Herbal SKUs 8 ml, 50 ml, 100 ml, 200 ml, 500 ml 8 ml, 50 ml, 100 ml, 200 ml, 500 ml 50 ml, 100 ml, 200 ml Rs 0.50 and Rs 1 sachet and 25 ml and 100 ml bottles Rs 0.50 and Rs 1 sachet and 200 ml and 500 ml bottles

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Dabur: Strategies
Product
Multiple products with the same set of positioning Region specific variants for Vatika shampoo (for South India)

Promotion
Local touch to appeal masses
- Branding (Anmol) - Promotion (website in Hindi)

Market Expansion
Vision 2010 domestic and international expansion plan
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Future Trends
Renewed emphasis on product development and the increasing sophistication of marketing and merchandizing strategies Continued customization of childrens hair products Increased focus on products with natural ingredients

Growing demand from the low and lower-middle-income households

Slow growth within dominant products Rising purchasing power to boost sales in rural India Urban India spearheads demand for value-added products
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Future Trends
Growing focus on the Masstige" positioning Kiranas will remain the central point Department stores, in-shop counters and specialist stores to cater to the elite Indians will continue to be highly price sensitive With still low per capita consumption, India will still offer huge potential Marketing will continue to play a key role in attracting new consumers Battling the unorganized channel through packaging innovation and also legislation

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Thank You

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