Presentation On Usage & Attitude Study

Segment – Salon Hair Care & Men’s Grooming
Presented By Rohit Kumar Singh IMT Ghaziabad

Project Objective
• Part-I Market Understanding:
1. Market dynamics in terms of understanding the product portfolio 2. key trends in the market 3. marketing strategies (ATL & BTL) of competitors 4. What are the important emerging trends in the industry 5. What all innovations are being introduced

• Part-II Consumer Survey
1. Awareness of brands 2. Source of awareness 3. Frequency of usage. 4. Reasons for use 5. Expectation / Need from the category 6. Benefits experienced from using the products 7. Key attributes that consumers look for 8. Need Gap Analysis 9. Barriers to purchase

Part – I

gross margins and consequently EBITDA and PAT margins under pressure for the companies.$13.FMCG Sector in India • Current Market Size .5 Billion • Contribution to GDP – 1. Projected to be around 12-17% for next five years (Reported by Morgan Stanley) • Current Scenario• • • • Sales Growth -15% Increase in Raw Material Cost Increase in prices of product Sales growth mainly due to volume growth • Due to increase in RM cost. • Growth of Amway India – 19%(2011-12) .3% • CAGR – 11% during past decade.

Penetration Level – Sufficient Headroom 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Shampoo Hair Oil Skin Cream Hair Dye Tooth Paste 18% 37% 57% 80% 67% 77% 42% 32% Rural Urban 2% 5% .

8 Indonesia China 0.Per Capita Consumption – Room for Growth Skin Care .3 India .5 0 China Indonesia India Malasia Thailand 1 1.2 0.5 2 1.5 1 0.4 7.Per Capita Consump tion In US $ Malasia Thailand 3 2.4 Shampoo Per Capita Consump tion in US $ 3.3 Shampoo Per Capita Consumption in US $ 2.7 Skin Care .Per Capita Consumption In US $ 9 8 7 6 5 4 3 2 1 0 7.7 2.1 0.

2015) – 9% • Direct Sellers Contribution .Hair Care – Key Trends • Total Hair Care sales – Around Rs. 85 billion • Huge growth in Colorants & salon hair care(both around 20%) • Slow increase in prices • Due to increase in prices of raw materials • Remains dominated by mass products • Mass Products value sales – 97% • Premium Products value sales – 3% • Expected CAGR (2011 .2% of total sales .

Hair Care Market Share Market Share in Hair Care HUL 19% Others 46% HUL Dabur Dabur 11% P&G 9% Amway Godrej 1% 6% L'Oreal 8% P&G L'Oreal Godrej Amway Others .

Billion 45 40 35 30 25 20 15 10 5 0 40 33 19 12 4 All Values in Rs.Category Sales All Values in Rs. Billion .

4. 55% Habibs Others.Market Share Market Share in Salon Hair Care Brushman. 16% L'Oreal Wella Schworzkoph L'Oreal. 3% Habibs. 19% Brushman Others . 2.50% Schworzkoph.50% Wella.

5 billion • Expected CAGR(2011-15) – 11% • Driven by Increasing innovation & aspiration • Huge Growth in Men’s skin care(57% in 2010) • Growth mostly due to high sales in urban area(>70%) • Men’s toiletries value sales growth – retail push & heavy advertising • Strategy to keep pricing competitive .Key Trends – Men’s Grooming • Sales By volume – Rs 27.

50% 4.20% 1% .80% 4% 4% 1.50% 7.Companies’ Market Share Sales by Value Sales 37% 31% 9.

Billion . Billion 16 14 12 10 8 6 4 2 0 6 2 2 3 14 All Values in Rs.Sales By Category All Values in Rs.

Product Portfolio • HUL • • • • • Dove Sunsilk Clinic Plus Clear Fair&Lovely • L'Oreal • • • • • • • • Garnier L’Oreal Shampoos Maybelline L’Oreal Professional Essenza Di Wills Fiama Di Wills Vivel Superia • P&G • Head & Shoulders • Pantene • Wella • ITC .

Pricing Structure General Market Price Shampoo 135(200ml) Amway Price 380-395(250ml) Shaving Cream Shaving Foam Razor After Shave 45 200(Gillette) 99(Mach3) 320(100 ml) 45 279 162 349 .

Promotion Strategy • L’Oreal • Viral Marketing • Recently Started push strategy • Not In too much advertisement war • Aspirational influence • Main income through own salons • Wella • Mainly in colorants business • Open media promotion very less .

P&G. a cut in adexpenditure to increase profit margin • All taking advantage of their distribution channel • For shampoos. quest to increase the rural presence by extensive promotion of sachet • In razors segment. • Players Like HUL. Dabur.Contd…. Gillette positioning itself in more than one category(Vector Plus & Mach3) . ITC etc… • Too much ad –war • A mixture of both push and Pull strategies • In Q1 of 2011-12.

By Features .Purchasing .By Advertisements  Interest  Desire .Promotion in Shaving Category The AIDA Model  Attention .Admiration by Opposite Sex  Action .

Innovation • Hair Care • Market Demassification • Herbal Shampoos • Excessive two in one Products(Conditioner with shampoo) • More new products include both body and hair care solutions(Body Shop Products) • Men’s Grooming • Razor market going through a lot of transition • More focus on After shave gel .

Part – II .

. .Research Profile • Research Method – Questionnaire • Target Segment – Men/Women age – 18-54 yrs. CP. Rajauri Garden. SEC – A • Sample Size – • Salon Hair Care – 189 • Men’s Grooming – 207 • Place Visited…. etc…. • Saket. Noida. Ghaziabad.. Gurgaon.

Top Story – Salon Hair Care • A female dominated segment • Outnumbers male both in salon visiting and usage frequency • Purchase of these products for home usage still low • but those who are purchasing their usage frequency is high • Average monthly expenditure of Women is than men • Max expenditure from age group of 25-34 years • L’Oreal – The most sought after Brand .

Contd…. • Brand Loyalty very high • Consumers don’t want to change the products regularly • The best source of awareness – • Word of mouth • Salon owner recommendation • Consumer feels the best way to promote these products – • Through free trials • Caution – • Motivation through Celebrity Endorsement Low .

• Healthy Hair – the most prominent cause of salon visit • No compromise on quality • Discounts and special offers • Mixed response • Hair Fall protection and Conditioning most sought after category .Contd….

• Many believe due to packaging they end up using extra amount • Major Purchase Barrier • Side effect • Opposite to trend • More acceptance of single benefit products • General needs • Longevity of hair colorants • Solution to side effect • Balancing Products .Contd…..

Top Stories – Men’s Grooming • Trend of shaving at Salon – Increases with increasing age • Average shaving frequency – Biweekly • Source of Awareness • TV advertisement has best effect • Word of mouth never fails • Best promotional Methods • A good balancing between TV Promotion and through discount & Other premiums .

. • Though razors popular but blades still a force • Gillette Mach3 and Wilkinson Sword favorite brands • Major Problem with blades/razor • Longevity • Dual benefit razors • A complete yes .Contd….

Contd…. • Shaving foam catching up but shaving cream still the first preference • Brand loyalty in case of shaving creams low • Gillette most used brand • Most of the using gel say they use extra amount due to packaging • Level of satisfaction not very high in case of shaving cream • Extra usage for proper foaming also a problem ..

Contd…… • After Shave usage .67% • Mostly splash is used • Prominent reason for usage • Anti-septic • Cooling • Low Brand loyalty • Purchase decision influenced by price and product availability .

Recommendations • Launching Hair Colorants • Make longevity a selling point • Salon Hair Care Products • May launch but needs to be positioned as organic/natural category • Dual Benefit razors – product differentiation • Men’s Whitening Cream • Must in Product Portfolio .

5Cr.1% • In 2015 – 3%(moderate growth) • Amway share in total direct selling – 40-45% ($.17. .175Cr. • Amway Sales – Around 7Cr.3% (572.Salon Hair Care • Current Market Size – Around 300Cr. • CAGR • 2005 – 2010 :– 25% • 2010 – 2015 (F) :.4billion) • Net Sales on this rate in 2015 – 17.) • Amway Condition – • Future Prospect • Share of Direct Selling in Hair Care – 2.5billion/$1.

8% 10 – 15 :. Sales – 70Cr.19. • Amway Sales – 30-35Cr.3% • Direct Selling percentage in 2015 – 3% • Approx.1Cr. • 2015 – 2271.Colorants • Current sales by value • Current – 1165.6Cr. • CAGR – 05 -10 :.14. .

Thank You .

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