INDUSTRIAL ANALYSIS REPORT

SHAMPOO INDUSTRY

GUIDED BY-
Mrs.M.MADHAVI

SUBMITTED BY

S.USHA SREE

(17H61E00A6)
 INTRODUCTION
Shampoo originally meant head massage in several North Indian languages.
Both the word and the concept were introduced to Britain from colonial India.
The word shampoo in English is derived from Hindi chāmpo (चचचपप). Its English
usage in Anglo-Indian dates to 1762. In India the term chāmpo was used for head
massage usually with some form of hair oil.

Shampoo is a hair care product used for the removal of oils, dirt, skin
particles, dandruff, environmental pollutants and other contaminant particles that
gradually build up in hair. The goal is to remove the unwanted build-up without
stripping out so much as to make hair unmanageable. Shampoo, when lathered
with water, is a surfactant, which, while cleaning the hair and scalp, can remove
the natural oils (sebum) which lubricate the hair shaft. Shampooing is frequently
followed by conditioners which increase the ease of combing and styling.
LIST OF 5 COMPANIES
 SUNSILK SHAMPOO
 LOREAL SHAMPOO
 PANTENE SHAMPOO
 GARNIER SHAMPOO
 JOHNSON&JOHNSON SHAMPOO
SPECIALIZED SHAMPOOS
 Dandruff shampoo

 All-natural

 Baby shampoo

 Animal shampoo

 Jelly/gel

 Dry shampoo
SWOC ANALYSIS
STRENGHTS:
 Innovative advertisements.

 Higher GDP growth leading to increased disposable income in the hands of

general public and their positive attitude towards spending on healthcare.

 Presence of well known brands in FMCG sector. Deep roots in local culture
and great understanding of consumer needs.
WEAKNESSES:
 Low export levels.

 Lower scope of investing in technology and achieving of economies of scale

especially in small sectors.
OPPORTUNITIES:
 Significant investment from MNC’s.
 Rising income levels i.e. increase in purchasing power of consumers
 Existing markets can launch other products such as conditioners and
serums .
CHALLENGES:
 Illegal foreign imports of different shampoo brands.
 Removal of import restrictions resulting in replacing of domestic brands.

 More and more FMCG companies are coming to India, so company might
lose market share within their strong shampoo segment.
 PEST ANALYSIS
POLITICAL FACTORS:

 Restrictions on import policies.

 Tax exclusion in sales and excise duty.

 Privatization is influenced by government which encourages free business.

ECONOMICAL FACTORS:

 Urbanization in India has lead to people good exposure and knowledge of brands

 Poor diet and nutrition can not only slow the growth rate of the body’s hair, but
can actually cause it to fall out. Here arises a need for a hair fall control shampoo.
SOCIAL FACTORS :
 Due to urbanization changes in lifestyle, social mobility, increasing per capita
income has lead people to new opportunities for business.

 Due to increased hair issues, the demand for hair care products like regular and
expert shampoos, conditioners, hair colors and hair oils are increasing rapidly,
thereby providing high growth to the Indian hair care market.

TECHNOLOGICAL FACTORS:

 Packaging innovation is ensuring lightweight bottles o as to reduce the

quantities of plastics used.

 Technology enables the incorporation of new ingredients in shampoos, leaving

hair cleaner and better conditioned.
FINANCIAL ANALYSIS
Formula: Current Ratio=Current Assets/Current Liabilities
TABLE 1: Current ratio of selected companies from 2013-2017

2.5

2
SUNSILK
LOREAL
1.5
PANTENE
GARNIER
1 JOHNSON & JOHNSON

0.5

0
2017 2016 2015 2014 2013
Formula: Quick Ratio=Current Assets-Inventory/Current Liabilities
TABLE 2: Quick ratio of selected companies from 2013-2017

2.5

2
SUNSILK
LOREAL
1.5
PANTENE
GARNIER
JOHNSON & JOHNSON
1

0.5

0
2017 2016 2015 2014 2013
Formula: Debt-Equity Ratio=Debt/Equity
TABLE 3: Debt-Equity ratio of selected companies from 2013-2017

4.5

3.5

2.5 SUNSILK
LOREAL
2 PANTENE
GARNIER
1.5 JOHNSON & JOHNSON

0.5

0
2017 2016 2015 2014 2013
Formula: Operating profit Ratio=Operating Profit/Net sales*100
TABLE 4: Operating ratio of selected companies from 2013-2017

120

100

80

SUNSILK
LOREAL
60
PANTENE
GARNIER
JOHNSON & JOHNSON
40

20

0
2017 2016 2015 2014 2013
Formula: Net profit margin Ratio=Net Profit/Net sales*100
TABLE 5: Net profit ratio of selected companies from 2013-2017

25

20

15
SUNSILK
LOREAL
10 PANTENE
GARNIER
JOHNSON & JOHNSON
5

0
2017 2016 2015 2014 2013

-5
HUMAN RESOURCE POLICIES
 Recruitment & Selection
 Training & Development
 Compensation benefits
 Performance Appraisal
 Retaining Employees
 Maintaining good working conditions
 Managing employee relations
MARKETING MIX
 PROCUCT: Every company is having other products based on the same
company name in many other fields.
 PRICE : Companies using pricing strategies like competitive pricing,
penetrating pricing in accordance with competition.
 PLACE : Where the market forces can have equilibrium companies
showing interest to launch their products over there.
 PROMOTION: Companies are promoting their cycles with the help of
advertisement agencies
 FINDINGS
 Shampoo has targeted every segment of population like of demographic,
geographic etc to attract the customers to get their sales stand in a good
position.
 Due to increased hair issues, the demand for hair products like regular and
expert shampoos, conditioners, hair colors and hair oils are increasing rapidly,
thereby providing high growth to the Indian hair care market.
 Sunsilk shampoo is now considered as the world’s leading company, created
a brand in the hair conditioning and the second largest shampoo in world.
 Having a keen observation on Pantene shampoo we can find that the company
entirely depends upon its equity capital in its capital structure. It doesn’t have
any debt capital raised in its capital structure.
 Industry sets various pricing policies for its shampoo mostly like competitive
pricing , premium pricing, seasonal pricing policies.
 Shampoo product’s selecting the face of a famous celebrity is one of the
strength and also key point for increasing their sales.
 CONCLUSION
Shampoo, a general based commodity used by the pupil for the purpose of
washing their hair. The true role of a shampoo is not merely to cleanse. It has
evolved into a product designed to succor and beautify the hair. As such, it
should continuously adapt to changing hairstyle trends, habits, needs, and highly
versatile consumer demands. Today’s shampoo is thus an assembled product,
developed with care to meet a precise objective, supported by and benefiting
from a permanent state of progress whose end result is to offer everyone the
possibility of finding the formulation best suited to hair type, care needs, styling,
and the most up-to-date beauty treatment. So Users are advised to change and
alternate shampoos to avoid a decline in efficacy through habituation. They must
be in a position to vary their choice of product.
THANK YOU