SAKSHI GUPTA Selection Of The Product The Product chosen by me is Dove Company is Hindustan Unilever Limited (HUL) Company Profile HUL is India’s largest FMCG Company with a p of over 75 years. Having 35 brands pning 20 distinct categories such as soaps, shampoos, detergents, cosmetics, toothpastes, skin care, deodorants, tea, coffee, ice cream, packaged foods and water purifiers, the Company is a part of the daily life of millions of consumers across India.
Over 16,000 employees and annual turnover of around Rs. 19, 401 crores (financial year 2010 – 2011). HUL is a subsidiary of Unilever and leading supplier of fast moving consumer goods with powerful local hold in more than 100 countries all over the world with annual sales of about €44 billion for 2011. Unilever has about 52% shareholding with HUL. Particulars| Total Numbers | Comments|
Brands| More than 35| Well established brands catering to various market Segments| Products| More than 250| Huge umbrella of product family and product line| Direct retail coverage | 600,000 | Includes both on and off premise outlets | Household reach | 80% | Every 2 in 3 Indian uses HUL product | Shelf availability | 84% across India | Very deep market reach of | Dove Dove’s started off in the US in 1957; is leading brand of Unilever globally. Dove is marketed in 80 countries worldwide with a range of products from lotions, body washes, skin care and moisturising creams.
Dove hair care range was brought to consumers in 1998 in Europe and in 2003 in North America. HUL launched the Dove hair care range in May, 2007 which included shampoos, conditioners, and revitalizing masks. Dove became the fastest growing shampoo brand in the country in a short period of time of around 13 months. The range claims to deliver the moisture promise of Dove. It has a specific formulation of chemicals which are mild and soft to the skin composition. Dove enjoys a star position for damage repair and therapy. Dove has hair care products that repair damage to the hair.
The new Zero Damage System range includes ‘daily therapy’ shampoo, ‘dry therapy’ shampoo and conditioner, ‘breakage therapy’ shampoo, conditioner, serum and hair-mask. Context Indian hair care is divided into categories ?? Hair oil ?? Shampoo/conditioners, ?? styling products, ?? herbal remedies and ?? hair-dyes and colors. Sachet sales contribute approximately 40%,. Hair care and shampoos targets upper middle class, middle class and upper class rural customers. Market is expanding to lower class too. Main consumer categories targeted are women. The usage of shampoo in Indian society has evolved with increasing rate.
Today average usage in Indian population comes out to be2-3 times a week. Use of conditioners is still mostly in the super premium segment. Indian women require more shampoo as compared to western women because of thicker texture, longer average. Awareness counts for about 90% in urban areas giving 80% of total consumption whereas; in rural areas awareness counts for about 80% which is for the remaining 20% of consumption. Competitors Market Scenario Product Category: Hair Care The hair care market in India is valued at $200 million with a growth of 3. 8% year by year. The hair care market includes . hair oils. 2. shampoos. 3. hair colorants & conditioners. 4. hair gels. Shampoos The shampoo market carries a value of Rs 4. 5 billion with market penetration level of only 13% in India. Shampoos are available in the form of shampoo bottles of different volumes as well as 8ml sachets. Sachet makes up to 40% of the total shampoo sale. The shampoo market in India is divided into: * Cosmetic * Anti-dandruff More than 50% of the population uses soaps for hair care. The shampoo penetration is only 30% in metros. The major players in the today’s shampoo market are HUL, and Procter & Gamble.
Segmentation Market segmenting is dividing the market into groups of individual markets with similar wants or needs that a company divides into distinct groups which have distinct needs, wants, behavior or which might want different products & services. According to Philip Kotler, “Market segmentation is the sub dividing of market into homogenous subsection may conceivably be selected as a market target to be reached with a distinct marketing mix. Broadly, markets can be divided according to a number of general criteria, such as by industry or public versus private. The concept f market segmentation was first proposed as an alternative market development technique in imperfectly competitive markets that is, in markets where there are relatively few competitors selling an identical product. Where there are lots of competitors selling identical products, market segmentation and product differentiation produce similar results as competitors imitate your strategic approach more quickly and product differentiation approaches meet market segment needs more closely. With an increasing proliferation of tastes in modern society, consumers have increased disposable incomes.
As a result, marketers have sought to design product and service offerings around consumer demand (market segmentation) more than around their own production needs (product differentiation) and they use market research to inform this process Since there a large number of competitors in the shampoo market selling almost identical products that have almost similar attributes and properties market segmentation should be devised for Dove shampoos. The figure shows the types of segmentation taking into account various criteria. The relevant differentiators applicable to Dove shampoo is mentioned below. Demographic | | | | | | | | | AgeSexLevel of educationSocial Class| The target consumers would be the age class from preteens to old age. It is commonly observed that there is no much differentiation in the usage patterns in relation to age even though the attribute in the shampoos that is sought might vary within different age groupsShampoos are used by both men and women although in varying degrees and frequencyDove is a premium shampoo primarily targeted at educated middle class consumersSocial Economic classes from B1 particularly the upper middle class and high income groups would be likely to afford and be aware of the product. Geographic | | | | | | The primary consumers would be the Urban middle class and above. It would not be affordable for rural markets| Psychological | Psychographic | It tries to change the psychology of an average looking women that she can look equally beautiful. Some consumers have the perception that the chemicals in the shampoo render the Hair dry.
The moisturizer concept can be used to address this | Benefits sought | | Consumers hope to derive a number of benefits like Dandruff control, Hair Therapy, Oil control through shampoo usage| Behavioral | Product usage | The products are used on an average of 2 to 3 times per week among almost all age categories with a slightly higher frequency for dandruff control | | Media usage| The media usage of the target customers would be magazines newspapers and TVs so that communication efforts can be directed to these channels to cater to the prospective consumers| | | |
Targeting The main target market is upper middle class and premium class people (higher socio economic group). It targets the Indian young women and focuses on real beauty of women widening the stereotype view of beauty. The targeting strategy can be presented as division of three aspects: Age, Sex and Lifestyle. The age group segment of 17-50 years old women (mainly youngsters, Teens and Pre-Teens) who are socially active with or without job and belong to the premium section of the society.
Dove Product Lifecycle Dove shampoo is in the growth stage * As Dove is becoming successful and sales has started to grow rapidly as it became established. BCG Matrix STAR Dove| QUESTION MARK ? | CASH COWS | DOGS | BCG Matrix (Boston Consulting Group Matrix) The “BCG matrix” or Portfolio Analysis is a portfolio planning model had been created by Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analysing their business units or product lines.
This helps the company allocate resources and is used as an analytical tool in marketing, product, strategic management, and portfolio analysis. A high-growth product is for example a new one that we are trying to get to some market. It takes some effort and resources to market it, to build distribution channels, and to build sales infrastructure, but it is a product that is expected to bring the gold in the future. A low-growth product is for example an established product known by the market.
Characteristics of this product do not change much, customers know what they are getting, and the price does not change much either. This product has only limited budget for marketing. There is the milking cow that brings in the constant flow of cash. An example of this product would be regular Colgate toothpaste. * Stars whose high share and high growth assure the future; * Cash cows that supply funds for that future growth; and * Question marks to be converted into stars with the added funds. Stars * Dove shampoo has a high growth and high market share Dove is ahead of Pantene by a large margin in the category of shampoos. Its value share is 18. 6 per cent to Pantene’s 10. 1 per cent. In the top six metros of the country, Dove has a value share of 12. 6 per cent to Pantene’s 11. 7 per cent. In urban India, Dove’s share is marginally behind Pantene’s 11. 1 per cent at 10. 6 per cent, while, on an all-India basis, Dove is 7. 9 per cent to Pantene’s 9. 4 per cent. * Highest Market Share -The company holds a 44% market share in the Indian shampoo industry. * *