1.

SWOT

o STRENGTHS

o Strong presence in well defined niches( like value added Hair Oil and Ayurveda specialties)

o Core knowledge of Ayurveda as competitive advantage

o Strong Brand Image

o Product Development Strength

o Strong Distribution Network

o Extensive Supply Chain

o IT Initiatives

o R & D – a key strength

2.
o WEAKNESS

o Seasonal Demand( like chyawanprash in winter and Vatika not in winter)

o Low Penetration(Chyawanprash)

o High price(Vatika)

o Limited differentiation (Vatika)

o Unbranded players account for the 2/3rd of the total market(Vatika)

3.
o OPPORTUNITIES

o Untapped Market(Chyawanprash)

o Market Development

o Export opportunities.

o Innovation

o Increasing income level of the middle class

o Creating additional consumption pattern

4.
o THREATS

o Existing Competition( like Himani, baidyanath and Zandu for Dabur Chyawanprash and Marico,Keo
Karpin, HLL and Bajaj for Vatika Hair Oil)

o New Entrants

o Threat from substitutes (like Bryllcream for Vatika hair oil)

 5.
o POSITIONING

By offering hair oil that combined the benefits of natural products in a single pack, Vatika created a niche for itself as the ‘total
hair care ’ brand.
6. PROMOTION: Vatika Hair Oil’s first promotion : It focused on the key benefit – beautiful hair without hair problems
– that came about as a result of the extra nourishment through the value addition of henna, amla and lemon-derived additives .

7.
o Creating conceptual awareness : marketing objective was to create conceptual awareness about the new
product – the goodness of coconut oil enriched with natural herbs.

8. Cont……………….

o In 1997, the company created a new promotion campaign which reinforced the obvious fact that most
coconut oil brands were not equipped to combat the effects of pollution, hard water and chemicals – the major causes of
hair ailments and hair deterioration.

9. Brand Name

o Vatika in Hindi means ‘garden’. The brand attempts to live up to the promises – beauty and nature – that
are associated with its very name.

10. OVERVIEW OF VATIKA:

o Vatika brand was launched in 1995 with Vatika Hair Oil as its first product .

o Line Extension

It was joined in 1997 by Vatika Henna Cream Conditioning Shampoo and later, in 2000 , by Vatika Anti-Dandruff Shampoo .
11. ADVERTISING

o Vatika Hair Oil uses a number of advertising media like television, print, internet, outdoor media which
includes hoardings
COMPETITIVE SHAMPOO MARKET :
COMPETITIVE SHAMPOO MARKET Presented by: Amal Dev V(191066) Amit Gandhi(191068) Anirban Kumar(191070)
Dhananjay Kumar(191083) Hardeep Singh(191086) Hiralal Senapati(191087)

What is FMCG ? :
What is FMCG ? FMCG refers to consumer non-durable goods required for daily or frequent use. Typically, a consumer buys
these goods at least once a month.

FMCG Products :
FMCG Products Detergents Toilet soaps Toothpaste Shampoos Creams Powders Food products Confectioneries Beverages
Cigarettes

Hair Care Category in India :

Hair Care Category in India There are 5 main products Hair Oil Shampoo / Conditioners Styling products Herbal Remedies Hair
Dyes / colors

Types of Shampoos :
Types of Shampoos Shampoo market is segmented on benefit platforms Cosmetic ( shine, health, strength ) Anti - Dandruff
Herbal

Shampoo market in India :

Shampoo market in India Size of shampoo market – Rs 9000 Million Anti-Dandruff Shampoo– approx. 20 % Sachet Sales -
approx. 70 % Major players HLL – 63% Beauty cosmetics-13% P & G – 12% Ayur Ltd – 8%

Shampoo Awareness in India :

Shampoo Awareness in India Per Capita consumption of Shampoo in India - 32ml Number of users of Shampoo- 1123 Million
53% Urban 47% Rural

Shampoo Industry – till mid 90’s :

Shampoo Industry – till mid 90’s HLL undisputed leader from the early 90’s Sunsilk – 1964 Clinic Plus - 1971 Clinic All Clear
launched in 1987 (Therapeutic AD Shampoo) Sunsilk re-launched in 1987 - Shampoo+ Conditioner (Beauty platform) with
Sachet SKU HLL Goes rural with Sachet Clinic Active launched in 1991 (with Pro Vitamin B - health platform)

Entry of Competition :
Entry of Competition Why did competition Enter India Teeming millions Burgeoning middle class Westernized youth Low
penetration levels Huge untapped market

New Entrants into the Market :

New Entrants into the Market P & G enters India in Nov 1995, with the world’s largest selling brand - Pantene Colgate Palmolive
launched Optima also in Nov 1995 ( break through in Keratin treatment ) Nirma launched Nirma Shampoo which went into
rough weather because it also had a detergent and soap with the same name. The brand name also had low price connotations

Shampoo Boom in India :

Shampoo Boom in India In mid 1997, per capita consumption of Shampoo increased Of the Rs. 350 Cr. Shampoo market, the AD
segment accounted for a 20 % share P & G launched its Internationally acclaimed A & D shampoo H & S in 1997 with Zinc
Pyrithine ( ZPT ) - a unique anti-microbial agent. There were 2 variants - regular and menthol Sachet sale became 70 % of all
shampoo consumption in the country

The top Shampoo brands :

The top Shampoo brands Normal Shampoos Clinic Plus Sunsilk Chik Pantene

The top Shampoo brands :

The top Shampoo brands Herbal Shampoos Ayur Dabur Vatika Nyle
The top Shampoo brands :
The top Shampoo brands Anti Dandruff Shampoos Clinic All Clear Head and Shoulders Pantene Pro-V Anti-dandruff

The top Shampoo brands :

The top Shampoo brands Premium Products Shehnaz Hussain Revlon Flex L'Oreal

Bases Of Segmentation :
Bases Of Segmentation DESCRIPTIVE Geographic Location Demographic BEHAVIOURAL Psychographic Benefits 1

Segmentation For Shampoos :

Segmentation For Shampoos Geographical Location Urban Rural Benefits Cosmetics (Hair conditioning, Shiny Hair) Herbal
(Fruitamins, Neem-based, Shikakhai based) Medical ( Anti-lice, Anti-dandruff) Price Premium- Shahnaz, Biotique etc Mid-
priced- Dabur Vatika, Garnier Ultra Doux etc Economy- Nyle, Chik

Major Issues :
Major Issues Low penetration of shampoo market in India. Gradual emergence of local players Rapid emergence of the organized
sector due to reduction of excise duties. Sachets fuelling growth in the shampoo market. Bulk of the growth at low price end of
the market as a result of increased rural consumption. Globalization, liberalization, increase in awareness levels, increase in
purchasing power etc has spurred on demand for personal care products like shampoos.

The Salon Business in India :

The Salon Business in India Salons are fashion trendsetters and caters mainly to the age group of 15-34. Hair-related services
generate the bulk of the business in a salon. India has 20,000 salons with total turnover of 500 crores and salon business is
primarily unorganized. Has a unique distribution network, run by independent businessman wherein products are sourced locally.
Witnessing a two-way brand movement- salon brand entering retail and vice versa.

Marketing Strategy For HLL :

Marketing Strategy For HLL 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

Marketing Strategy For HLL :

Marketing Strategy For HLL Use its intensive distribution network to expand its rural market Re-launch its Organics shampoo
brand to capture herbal shampoo segment HLL can make foray in fast growing Salon business and compete with other retail
brands
1. Head & Shoulders is world's No.1 anti-dandruff shampoo. A power brand from P&G , this brand made its debut in
India in 1997. In the highly competitive Indian shampoo market which is estimated to be worth around Rs 1800 crore,
Head&Shoulders is a major player in the Anti-Dandruff niche. Product Introduction

2.
o The entire shampoo market was dominated by HLL with a whopping market share of around 46%.When
the brand was launched in India, the anti dandruff market was in its nascent stage and dominated by Clinic All Clear.

3.
o The high profile launch of Head & Shoulders fueled the growth of this specialty market. Now anti-
dandruff segment constitutes around 15% of the total shampoo market.

4. Product Definition

o Cleanness and Remove dandruff

o Its new best ever anti-dandruff formula provides better scalp coverage to get rid of even the tiniest
dandruff flakes.

o What's more it gives you soft, beautiful hair that's closer to the look you want.

o The brand used the Markonym ZPT ( Zinc Pyrithine)Formula which has anti-fungal properties as its
differentiator.

5. Segmentation

o The available segments to Head & Shoulders are :

o The available segments could have been found based on demography, geography, pshychography or Life-
style. But being an FMCG product, like shampoo, The demographic or geographic segmentation is not as important as it is
based upon the life-style as well as customers preferences despite of their demography or geography. The core segments
were

o Shiny Hair.

o Black Hair.

o Anti-Dandruff.

o Low Price.

o Head & Shoulders started operating in the Anti-Dandruff segment. As an added benefit it also emphasized
on smooth hair.

6. Target Market

o The target market for Head & Shoulders are the Higher middle class people who are brand conscious,
early adaptors and who care about the overall health of their hair.

7. Perceptual Map of Product Positioning Anti dandruff Nourishing More mild Less mild Head & Shoulders Clinic All
Clear Fiama de wills Garnier Fructis Sunsilk Clinic Plus Pantene

8. The Brand…
 o Head & Shoulders was successful in establishing itself as a strong brand.It is under the umbrella of P &
G.It’s branding strategy includes :

o Firstly, it was able to differentiate itself from other anti- dandruff shampoos by the means of introduction
of new element ZPT.

o Secondly, Head & Shoulders was able to create a strong appeal as a mild, caring Anti-dandruff shampoo
with lots of variants based upon consumer needs.

9. The Brand…

o Thirdly, belonging to P & G gives Head & Shoulders an esteem in consumers mind and the quality
maintenance with appropriate pricing gave Head & Shoulders strong respect.

o Fourthly, it’s innovative campaigns and pervasive ways of promotion made the consumers well aware
about Head & Shoulders.

10. SWOT Analysis

o Strengths :

o International Company.

o Strong Financial position of P & G.

o Brand Loyalty.

o High Quality Products.

o Well known brand.

o Availability of Products in Different Sizes.

o Large Network for Distribution.

o Consumer Trust .

11. SWOT Analysis

o Weaknesses :

o Competition with Clinic All Clear.

o Lagging behind Clinic All Clear in terms of creative campaign.

o Less popularity in rural areas compare to urban areas in India.

12. SWOT Analysis

o Opportunities :

o Have a Great Opportunity in New developing areas of India.

o Consumer behavior towards brand loyalty.

o High Rates of Imported Shampoos.

 o Increase in the Shampoo consumption due to awareness.

o Heavy investment in the research of Shampoo.

13. SWOT Analysis

o Threats :

o High Competition in Indian Market.

o Uncertain economic condition of country.

o Rapidly change in price of raw material.

o Threats from new entrants.

o Threats from plenty other options available to consumers.

14. Packaging

o Product packaging

o The product has eleven varieties with five SKUs each ( 2 ml and 3 ml sachet, 100ml, 200ml and 400ml
pack).

o The product uses attractive white and royal blue combination as its base packing.

o The product uses a freshness essence in it’s packaging which, in consumers mind, creates a positive
impression.

15. Advertising

o P&G’s anti-dandruff shampoo brand, Head & Shoulders, has roped in actor Kareena Kapoor as its new
brand ambassador.

o In it’s advertisements, Head & Shoulders introduces itself as a premium brand and uses the charm and
beauty of beautiful models.

o Attractive Banners and Hoardings are used extensively.

o Print media (News papers, liflets and pamphlets etc.) is used with exclusive high resolution attractive
models.

o The emphasized is on healthy, long and beautiful hair.

16. Pricing Strategy

o Pricing

 At the time of launching it used price-quality inference strategy.

 Currently it is using reference pricing as well as value pricing.

 Policies

 Firstly, at the time of introduction it emerged as a international premium brand and it took
it’s full advantage.
  After a few years when several other competitors came into the market it continued to
deliver same quality but with value pricing technique to grab the emerging market of India.

17. Distribution

o The distribution channel of Head & Shoulders follows the conventional route of FMCG goods marketing,
viz. Factory to distributor to whole-seller to retailer to consumer.

18. Vertical Markets

o Vertical market opportunities :

o The vertical market for shampoos is quite promising. The introduction of compatible hair-oil or
conditioner or hair-gel is being followed by many brands like Clinic Plus. Head & Shoulder has these kind of products
introduced out of India but it still has it’s opportunity in India.

19. Success Metrics

o At the time of launching, the target was to capture market from HLL.

o After gaining adequate market share, it tried to expand it’s usability scope.

o After launch, Head & Shoulder was a success. But by the end of 2000, it started to loose it’s market to
clinic all clear due to their aggressive campaigns.

20. Requirements of Success

o Maintain it’s quality with constant improvements.

o To come up with new varieties according to market needs.

o To maintain a competitive pricing.

o Promotion in rural and semi-urban areas.

o Special offers , discounts to consumers as well as distributors.

o Innovative means of promotions like forming a special association or some distinct group which will help
maintain it’s brand equity and loyalty.