Deodorant Industry

2015

GROUP 7 231065 Hitesh Bajaj

231069 Jashandeep Singh Chadha

231070 Jayant Adlakha

231076 Kirti Obhan

231094 Naveen Kumar Suman

231118 Rohan Sachdeva

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ACKNOWLEDGEMENT

Apart from the efforts of the group, the success of any project depends largely on the

encouragement and guidelines of many others. We take this opportunity to express our gratitude to

the people who have been instrumental in completion of this project. We would like to show our

greatest appreciation to Prof. Payal Kapoor (FORE School of Management). We can't thank her

enough for her tremendous support and help. Without her encouragement and guidance this

project would not have got materialized. We would also like to thank our friends for their support

and cooperation. Our appreciation also goes to the FORE School Of Management for allowing us

access to various resources, and to the College Library.

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Contents ACKNOWLEDGEMENT ............................................................................................................................. 1

LOREAL .................................................................................................................................................... 4

Mission ................................................................................................................................................ 4

Vision ................................................................................................................................................... 4

Values .................................................................................................................................................. 4

MARKET ANALYSIS ...................................................................................................................................... 5

PESTEL ANALYSIS: ................................................................................................................................ 5

Political factors: ............................................................................................................................... 5

Economic Factors: ........................................................................................................................... 5

Social Factors: ................................................................................................................................. 5

Technological Factors: .................................................................................................................... 5

Environmental factors: .................................................................................................................... 5

Legal factors: ................................................................................................................................... 6

PORTERS FIVE FORCES ....................................................................................................................... 6

Bargaining power of buyers ............................................................................................................ 6

Bargaining power of suppliers ........................................................................................................ 6

Threat of substitutes ....................................................................................................................... 6

Threat of new entrants ................................................................................................................... 6

Competition .................................................................................................................................... 6

INDUSTRY .................................................................................................................................................. 7

FMCG Industry .................................................................................................................................... 7

Personal Care ...................................................................................................................................... 7

Deodorant Industry ............................................................................................................................. 8

Market Share .................................................................................................................................... 10

Marketing Strategies of Competitors ............................................................................................... 10

Fogg: .............................................................................................................................................. 10

Axe: ............................................................................................................................................... 11

Wildstone: ..................................................................................................................................... 12

Engage: .......................................................................................................................................... 12

Park Avenue: ................................................................................................................................. 14

SWOT Analysis for Beauty Segment (S.B.U L'real, India)............................................................. 15

PERFORMANCE REVIEW............................................................................................................................ 16

Fogg: .................................................................................................................................................. 16

Axe .................................................................................................................................................... 16

Engage ............................................................................................................................................... 17

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Wild stone ......................................................................................................................................... 17

Park Avenue ...................................................................................................................................... 17

SEGMENTATION, TARGETING AND POSITIONING ......................................................................................... 18

Segmentation .................................................................................................................................... 18

Target ................................................................................................................................................ 18

Positioning ........................................................................................................................................ 19

Perceptual Map for Womens Deodorant ........................................................................................ 20

OBJECTIVES ............................................................................................................................................. 20

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LOREAL Mission LOral has set itself the mission of offering all women and men worldwide the best of personal

care innovation in terms of quality, efficacy and safety. It pursues this goal by meeting the infinite

diversity of beauty needs and desires all over the world.

Vision Together we will make beauty sustainable. Together we will make sustainability beautiful.

Values The six founding values:

Passion,

Innovation,

Entrepreneurial spirit,

Open-mindedness,

Quest for Excellence and

Responsibility.

Our R&I centre has a dual mission: to adapt the technologies developed by the worldwide centres

to meet the expectations of Indian consumers. And, we are looking at green field projects from ideation to implementation of projects and designing new technologies and products at our centre.

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MARKET ANALYSIS PESTEL ANALYSIS:

Political factors:

Controversial advertisements of deodorants regularly subjected to criticism by political parties.

The custom duty on imported perfumes is high (around 27%) which makes it a premium product.

Political interference when it comes to culture and societal values. The depiction and portrayal of women in the ads are considered as overtly sexual.

Economic Factors:

Deodorants are considered as a personal care product which is not necessarily a necessity, when people have less purchasing power they reduce its consumption.

Core driver for using deodorant is getting ready for jobs, when unemployment increases usage decreases.

Business environment is becoming highly competitive, as the numbers of brands are increasing.

Indian consumers want value for money; hence companies are providing different products for different segments.

Social Factors:

With change in Lifestyle and increase in personal disposable income, people tend to focus more on hygiene and therefore increase deodorant consumption.

Target segment is the younger generation which is more progressive and westernized.

With increase in Female Employment use of deodorants by Females is also increasing.

Technological Factors:

The R & D Cost is not very high, this provides for new easy entry of new players in deodorant market.

Failure to provide technical capability in the R&D function and quickly roll out the products may adversely impact its profitability and reputation in near future.

More spending on IT by different players to improve the efficiency of its business process and reduce costs.

Deodorant companies communicate to consumers, especially youth using digital platforms i.e. social networking sites.

Environmental factors:

Some people are allergic to aluminium and may experience contact dermatitis when exposed to deodorants containing aluminium.

Some studies have linked breast cancer with aluminium based antiperspirants.

Showering washes our deodorants down the drain, introducing known or suspected toxins into our nations waterways.

Companies are maintaining high environmental standards by designing and producing products that are safe for consumers and using environment friendly materials and packing stuff.

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Legal factors:

Companies have a legal responsibility for the safety of their products and ingredients. Companies are subject to laws and regulations both locally and globally, which cover diverse areas such as product safety, trademarks, copyright, patents, customers health and safety, the environment, corporate governance and unfair practices.

Failure to comply with laws and regulations could leave them open to civil and criminal legal challenge and may result in fines or imprisonment of personnel.

PORTERS FIVE FORCES

Bargaining power of buyers Buyers have moderate to high bargaining power as there are many products available to the consumer and they typically have low loyalty and can easily switch between products.

Bargaining power of suppliers Bargaining power of supplier is low to moderate as the company incurs some cost while switching suppliers. On the other hand, suppliers that do a large amount of business with these companies also are somewhat beholden to their customers. Nevertheless, the bargaining power for both the firms and their suppliers is probably limited.

Threat of substitutes The threat of substitutes is moderate to high as deodorants can be easily substituted by Perfumes, roll-ons, talcum powder etc.

Threat of new entrants Deodorant is a highly competitive industry and the product features can be easily imitated due to relatively low cost of R & D .Hence new brands are being launched regularly and customer retention is difficult. Manufacturers of deodorants are typically large companies producing a wide range of personal hygiene products, cosmetics and other consumer goods and their economies of scale allow them to compete more efficiently. Small companies may require a huge capital investment to enter in personal care segment like Deodorants, and hence might find it difficult to sustain itself in the long run. Hence the threat of new entrants is moderate as there isnt much customer loyalty.

Competition Since the deodorant market is a high growing market , a large number of products are being

launched by established market players which is increasing completion .Rivalry is increased by the

presence of a large number of brands and limited differentiation within the market. Hence,

competition in this market is high.

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INDUSTRY

FMCG Industry India is one of the largest economies in the world in terms of purchasing power and increasing

consumer spending, next to China. The Indian FMCG industry, with an estimated market size of ~Rs.

2 trillion, accounts for the fourth largest sector in India. In the last decade, the FMCG sector has

grown at an average of 11% a year; in the last five years, annual growth accelerated at

compounded rate of ~14.7%. The sector is characterized by strong presence of global businesses,

intense competition between organized and unorganized players, well established distribution

network and low operational cost.

Source: www.ibef.com

Growing awareness, easier access, and changing lifestyles and with rise in disposable incomes, mid- and high-income consumers in urban areas have shifted their purchasing trend from essential to premium products. In response, firms have started enhancing their premium products portfolio. Rural demand & demand in tier 2 tier 3 cities is set to rise with rising incomes and greater awareness

of brands.

Personal Care Indian personal care product market is observing different trends for different segment of users. On

one hand we have urban customers whose needs are evolving and require customisation of the

product offering. On the other hand, we have rural customers where the penetration is increasing,

but their price sensitivity requires cost effective product offerings.

The personal care products (PCP) market in India is estimated to be worth ~Rs. 440 Billion. Personal

hygiene products (including bath and shower products, deodorants etc.), hair care, skin care, colour

cosmetics and fragrances are the key segments of the personal care market. Each of these segments

exhibits its unique trends and growth patterns.

43%

22%

12%

8%

4%

4%2%

5%

Revenuewise Market share

Food Products

Personal Care

Fabric Care

Hair Care

Households

OTC Products

Baby Care

Others

http://www.ibef.com/

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Deodorant Industry According to a study released by the industry body, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) titled 'Domestic Fragrance Industry: The way ahead', the industry in the last decade has grown with a CAGR of 38.5%. It is expected to reach around Rs. 5000 crores by 2017 and Rs. 6361 crores by 2018 with a CAGR of

around 28%.

Source: Economic Times

500 695952 1290

17302300

3018

3915

5020

6361

0

1000

2000

3000

4000

5000

6000

7000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenue

39.0% 37.0% 35.5% 34.1% 32.9% 31.2% 29.7% 28.2% 26.7%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Growth

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Market Value of different types of fragrances Deodorants, Perfumes and Roll Ons-

Source: Economic Times and ASSOCHAM India* (* - The market value for perfumes and roll ons are

the Projected figure of ASSOCHAM 2013 report, which estimates the market value at Rs. 1500

crores for perfumes and Rs. 400 crores for roll ons at an annual growth rate of 30% and 55%

respectively)

About 69 per cent of the whole fragrance market is dominated by the men's category which is also highly fragmented and keeps evolving with change in attitudes and lifestyle. Besides, high-end perfumes in the male category are also doing a brisk business courtesy the growing urge among urban Indian males to stay well-groomed. Though there are limited options for women but the segment is likely to see an upsurge with various existing brands and new entrants resorting to sustained media campaigns to cash in on the untapped category with enormous growth potential. Teenagers are a significant segment in both male and female categories as an average teenager at

an urban centre tends to spend anywhere between Rs. 500 and Rs. 2,000 only on fragrance including

- deodorants, roll-ons and perfumes.

Source: Economic Times

2300

1950

620

0

500

1000

1500

2000

2500

Market Value 2014

Market Value of Fragrances

Deodorant Perfume Roll ons

69

31

Gender-wise Split of Fragrance Industry

Male Female

90

10

100

16.78

29

18

0

20

40

60

80

100

120

Urban Rural Total

Breakup based on Urban and Rural Market

Percentage Growth rate

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The deodorant market is growing at around 18 per cent annually, and the growth in rural markets

that account for a tenth of deodorant sales, is 29 per cent.

Market Share

Source: economic times

Marketing Strategies of Competitors

Fogg: Company: Vini Cosmetics Segment: Outdoor oriented, Fashion oriental, trendy Targeting: Concentrate on customers seeking products which give value in excess of its price

or for sophisticated customer. It focuses on youth (15-30) in Urban and Semi-urban areas,

who are value oriented and will be attracted by the longevity and quality offered by Fogg

Occupation: Students, bachelors, young professionals Income Level: Middle income group Positioning: The Company started an aggressive TV campaign with a high number of ads

being broadcasted at primetime and high viewer segments such as cricket matches. The brand tried to differentiate itself from other products which were only focusing on advertising which shows the same concept of boy attracting girl. They have positioned the brand based on a very logical appeal where they focus on the positive qualities of the product and how much better its performance is in comparison to other products which they say only consist of gas while FOGG is without gas and full of product. The positioning statement of FOGG body spray focuses on the fact that it contains only perfumed liquid and no gas in it unlike other products and the company is guaranteeing 800 sprays for a bottle containing 100gm of container. This has created a differentiation for FOGG in terms of quality of product. The tagline is- "Bina Gas wala body Spray"- in English it means -"A body Spray without gas"

Product: The USP of the product is that it is perfume based deodorant unlike its competitors which are gas based. It promises long lasting fragrance and 800 sprays per bottle of Fogg deodorant. It comes in various fragrances targeted for men and women, and in various fragrances like Marco, Napoleon, Royale, emperor, Fresh, Black, Majestic, etc.

12.50%

8.10%

6.90%

6.90%

6.50%

59.10%

Market Share

Fogg

Engage

Axe

Wildstone

Park Avenue

others

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Price: Fogg is priced at Rs. 179 per 150 ml bottle, and its Black range of deodorants as priced at Rs.199 per 150 ml SKU. With promise of no gas and only perfume, and 800 sprays per bottle, it is priced as a value for money product.

Place: Vini Cosmetics, the parent company which manufactures and markets Fogg range of deodorants has a wide and deep distribution network in India. It is available in modern trade as well as retail trade stores all over urban and rural India.

Promotion: Fogg has positioned the brand based on a very rational appeal where they have shown a customer who using a normal brand and gets fed up with it because the body spray consists of only gas, and only gas comes out instead of the perfumed liquid. Then a comparison is shown between a normal body spray and the FOGG body spray where the normal body spray fills glass less than half with liquid whereas the rest evaporates as gas, whereas the FOGG body spray fills the glass more than half with almost none of the liquid getting lost due to gas. The tagline is- "Bina Gas wala body Spray"- Which in English means -"A body Spray without gas"

Axe: Targeting : Concentrate on single-segment (male 15-30) in Urban and semi urban areas, who

are lifestyle oriented, trendy, cosmopolitan with regular and high usage of deodorant, Occupation: Students, bachelors, young professionals. Income: Middle income group Positioning: The Company extensively uses the TV ads and conducting many Campaigns.

Besides TV commercials the brand also uses internet media and sponsoring some events. The biggest strength of this brand is the underlying message that the brand users are high on confidence and always go for the Axe. It also ensures that consumers are mostly engaged with new Fragrances. In 2014, Axe had a profile lunch of its new fragrance "Axe Peace".

The male models used in Axe advertisements are regular guys, unlike those of its competitors, who use models with perfectly chiseled bodies. This conveys the message that Axe is for everyone, and your confidence and Axe Effect can cast a spell on girls.

Product: Variety of AXE DEO's: Axe offers a wide range of fragrances in their deodorants.

Some variants of AXE are: peace, harmony, anarchy, Apollo, excite, dark temptation etc. Axe comes up with new fragrances and range of deodorants every 4 months to keep the freshness of brand alive.

Quality: All the variants of AXE deos are dermatologically tested and do not have any kind of side effects on the skin, it offers good fragrance which has long lasting effect.

Packaging: The bottle of Axe deodorant looks sturdier and its twisting on top which is better than older design. Unique bottle helps in brand differentiation and better recall.

Price: AXE deodorant is priced to offer its customers good value for money. The price of all variants of axe is same. They just have different fragrances and flavors. Rs. 150 for 150 ml of deodorant.

Place: Placing and availability of product plays significant role in determining the sales of product. Axe relies on location and distribution channels. There is high availability of Axe deos in all stores, such as modern retail, traditional mom and pop stores, drug stores of all sizes.

Promotion: o Advertising: Primary tool used by AXE is TV commercials, print ads and billboards

which increase brand awareness. o Interactive Marketing: Engage customers and directly or indirectly raise awareness

through social media and online. Campaigns like theaxeeffect.com. Various campaigns "Call me", "AXE feather", "AXE Land" for an increased customer engagements.

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o Central Theme of Campaigns: Seduction where Girl makes the first move. Brand assumed that Men like to be seduced.

Wildstone: The idea, is to create occasion specific offerings, such as mild fragrances for office-goers; stronger ones for party-goers and so on.

Under consideration: Wild Stone is also mulling an entry into gasless deo varieties. Targeting: Concentrate on single-segment (male 15-30) in Urban and semi urban areas, who

are lifestyle oriented, trendy, and cosmopolitan with regular and high usage of deodorant. Occupation: Students, bachelors, young professionals Income: middle income group, Same as AXE, but high regional concentration of sales in its

home turf East India, with rising sales and market share in southern and western markets. Positioning: Product was positioned as a sexy or naughty product for young males which

transformed an uninspiring average Joe into the jealousy-inducing Chick magnet. While sexy was the buzzword in the segment, the communication was not personalized to the Indian clientele. Axe and Set Wet propagated their message through foreign models in foreign locations. While they did capture attention and communicate, the characters werent relatable to the audience. This is where Wild Stone differentiated. Adopting to the Indian tastes, they communicated through Indian men and women, who the audience can relate to, set in typically Indian scenes like Durga Puja, Holi or Monsoon season. While others promised the user the attention of hordes of girls, Wild Stone promised inciting deep passion and frenzied fantasies in a single woman Indian, traditional, mysterious and not overtly sexual. Unlike others who were tagged as playful and youthful, Wild Stone became associated with passion and mystery.

Product: Wildstone too offers a wide range of fragrances in their deodorants. Some variants of Wildstone are: Red, Aqua Fresh, Ultra Sensual, Thunder, Smoke, and knight Rider etc. keeping in view the mystery element associated with the product.

Price: Wildstone deodorant is priced to offer its customers good value for money. The price of all variants of Wildstone is same and is priced similarly as its competitors.

Place: Wide distribution network ensures high availability of Wildstone deodorants in all stores such as modern retail, traditional mom and pop stores, drug stores of all sizes pan India. Also, available for sale on ecommerce sites like Flipkart.com.

Promotion: o Advertising: Primary tool is TV commercials, print ads and billboards which increase

brand awareness. o Central Theme of Campaigns: Similar to other competitors Wildstone also Seduction

where Girl makes the first move. Brand assumed that Men like to be seduced.

Engage: Engage Deo was launched by ITC in 2013. In just over a year, it is already number two in the deodorant market.

Positioning: Deodorant industry was crowded with similar products with similar advertising (man attracts women).On one side Fogg changed the market by focussing on its effectiveness and performance, Engage also tried to differentiate itself by being a product for both men and women. While deodorant market is mostly dominated by male customers (69%), Engage tried to cater to the needs of other 31 % too. They also try to focus on urban youth.

Product: Continuing their theme of a deo for couples, they have variants in pair. Engage was launched with three pair of deodorants, namely:

o Rush (Male) & Blush (Female)

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o Mate (male) and Spell (Female) o Urge (male) and Tease (Female) o Now they have 7 pairs of offering, namely (other than earlier three):

Frost (M) and Drizzle (F) Jump (M) and Trail (F) Intensity (M) and OWhiff (F) Fuzz (M) and Tempt (F)

o Also, they try to differentiate with their packaging. Deodorant is a highly competitive

market with numerous brands competing for shelf space. In this, a differentiated packaging helps in catching the eye of the customer. Packaging is made to appeal to the target group that is youth. Packaging is mostly in peculiarly shaped cans and uses silhouettes as its key design component. The brand proposition Playful Chemistry, is well complemented with this innovative and fashionable packaging design which helps in making some eye catching billboard advertising as well.

o Engage for men has a bold, modern look and has been designed in classical black with a tinge of effervescent colors. Black represent masculinity and bottle being mostly black helps in distinguishing the specific product as the male one .The range for women are in bright hues of Pink, Blue, Yellow and Green on a can shape designed with contemporary feminine patterns. Bright colors are generally more attractive to women and this kind of packaging distinguishes the male and female products properly thus making it easy for customers to pick the product. Also, color codes show which specific variant it is from Engage and having a color code will ease purchase for customers.

Price: The Engage deo is priced toward the lower side of the market around INR 175. It is focused on urban youth and tried to provide service at a price well within their means. Perceived value of the deo is almost the same as for other products in the same price range. This can also be seen by the fact that the market share of engage deo is increasing which can only be because the customer is finding value more than the price being charged.

Place: ITC has a very extensive distribution network reaching out to far corners of India. Also, its available now on major online retailers like Flipkart, Snapdeal etc. ITC can do Direct servicing of 1,00,000 markets & 2 million retail outlets. ITC has been doing many innovations in the field of distribution management, one of the recent example of that would be the e-choupal initiative which links farmers directly to the company in a mutually beneficial relationship. Its also gearing up to roll out their products through paan wallahs. ITCs distribution for cigarettes over the years meant that there is a high amount of trust between the company and paan wallahs. ITC is planning to use them to distribute their product, thus shaking up its distribution. This advantage in channels have meant that Engage have been available at every place in India. Especially the target group of urban youth is easily covered. Brand name of ITC means that they tend to get better shelf space then other brands in different retail outlets. This reach has certainly been one of the major factors of them being able to leapfrog brands such as Axe, Wild Stone etc. to number two position in deodorants market.

Promotion: Engage is being positioned as India's first 'couple deodorant'. In addition to being sold as separate pieces, it is also being sold in couple combo packs which offers some monetary benefit over purchasing separately. This is to enhance the positioning as a brand for couples.

o Ad is based on the Chemistry between the couples. Its tag line is Love has an all new language.

o While Axe and a few other deo were focused on ads which showed men being desirable after using their product, and while Fogg showed itself to be a brand

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which gives high value, Engage was trying to position itself as something which celebrates young love. Its attractive packaging design is meant to attract this urban youth population. It shows deodorant as a product which is used by both men and women. While, the market is actually male dominated with 69% of volumes being consumed by male consumers. With such high competition and so many brands competing, a differentiated product is very important.

o A unique positioning coupled with ITCs extensive distribution network has led to the success of Engage.

o One of the promotion technique which used the packaging design was executed in Mumbai and Bangalore. The strategy was to promote the brand among youth while also bringing alive special couple moments engaging in a new language of love. This is

o What the positioning of Engage is all about. In rainy season ITC created umbrellas with the silhouette of a couple. These were then handed out to couples seated in parks, gardens, college campuses and popular streets. They created branding around benches in these areas with placed standees. Large units were created in the shape of the deodorants as they are sold and placed at famous destinations like the romance rocks at Bandstand, Carter Road and Marine Drive. This campaign helped define Engage as brand for young couples.

Park Avenue:

PARK AVENUE, one of the biggest brands in the world of Apparels, Cosmetics & Toiletries is one of

the ventures of the J.K. Helene Curtis Limited. Till date it has been generally successful with all the

products and ranges offered. All this is the contribution of its strong brand equity & a strong PR it

has built over a period of time about its products and has been leveraging that time and again. But

the recently launched I.Q. in the Deodorant segment is not that

successful, all this is the contribution of neglect of the product by

J.K. Empire.

PARK AVENUE has a wide distinction in the deodorants segment in

the FRESHNESS DEODORANT section. It offers-

1. Storm (Tagline: energetic, suave, cool, the stars fragrance)

2. Horizon (Tagline: airy, oceanic, profound, the travellers

fragrance)

3. Alpha (Tagline: precise, strong, ahead, the directors fragrance)

4. Cool Blue (Tagline: calm, smooth, breezy, the temperate

fragrance)

5. Tranquil (Tagline: serene, august, relaxed, the sailors fragrance)

6. Cruise (Tagline: fresh, wavy, soothing, the explorers fragrance)

7. Good Morning (Tagline: rejuvenating, prim, composed, the enigmatic fragrance) 8. I.Q. (Tagline: vibrant, winsome, fast, the torchbearers fragrance)

(Picture: Deodorants offered by Park Avenue.)

Product: Hail to Freshness Deodorant section of PARK AVENUE (PA) range. Although new but

has the potential to get to the top of mind and heart of the consumers.

Price: 179.00 INR for 150 ml bottle

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Place: Available at all The Raymond Shop across India. Except I.Q. all other deodorants of

PARK AVENUE brand could be purchased from established retailers viz. BIG BAZAAR

(PANTALOONS RETAIL INDIA LIMITED). Promotion: Till date no promotion has been done from the side of manufacturer (J.K. Helene

Curtis Limited) for its new product. This time no PR activity has been done while launching

the product (I.Q.) which is resulting into this product losing out to others.

SWOT Analysis for Beauty Segment (S.B.U L'real, India) Strength:

Brand Differentiation

Product Availability

Strong R&D and Innovation

Strong relevance with female products

Weakness:

Not able to divest its poor brands

Fake products sold under the name of their brands

Opportunities:

Go Green / Eco-Friendly

Tier 2 & Tier 3 Cities

Growing market for beauty products

Threats:

High Rivalry

Indirect Competitors

Products have stiff competition from big domestic players and international brands.

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PERFORMANCE REVIEW

Fogg: The deodorant market has seen an explosion of products in the last few years. What Fogg has

managed to do is set a new equilibrium with its unique selling proposition. But there is no denying

that Fogg has cleverly managed to tap into the needs of the consumer. In a category such as

deodorants, Fogg with a differentiated offering, now eventually stands out.

Market share of Fogg has grown from 1.5 to 12.5 from 2012 to 2014 making it the leader in the

deodorant industry. Fogg promoted its brand as a High Value brand offering its product in both male

and female division.

It differentiated itself from the perception that women gets attracted to men by offering

Deodorants of low Gas content and a High value proposition.

Company assures its customers around 800 sprays from its 100 gram bottle priced at INR 180. This

value oriented brand focused on age group 15-30 years comprising mainly of students, bachelors

mainly of middle income group.

Darshan Patel Owner, Vini cosmetics says that Fogg currently reaches 500,000 stores and the plan

is to touch another 500,000 counters in the next two years. We raised money a few months ago with

this objective in mind," Patel says.

Private equity investor Sequoia Capital picked up a 9-per-cent stake in Vini for about Rs 100 crore in

August, 2013, valuing the firm at over Rs 1,100 crore or nearly six times sales.

Axe Axe is most renowned brand of HUL in deodorant category. In 2012 it was leading the deodorant

Market by a share of 14 %.

Axe spends a lot of funds on advertisements and promotions through social media etc. In its

advertisements it did not showcased celebrities unlike other brands for a long duration.

They had to back paddle a bit from the image because Axe had gained a reputation of a product that

was used only by losers. So in June 2013, company roped in celebrity Ranbir Kapoor to break the ice.

0

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Fogg Axe Wild Stone ParkAvenue

Engage Others

2012 1.5 14 10.7 2 0 71.8

2014 12.5 6.9 6.9 6.5 8.1 59.1

Mar

ket

Shar

e %

Deodrant Industry

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But the basic theme of the advertisements remained unchanged viz. Axe Effect can cast a spell on

girls.

While Axe is among the first few brands which created the deodorant category in the country in

1999. Fogg was launched only two years back in 2013, still Axe could not retain its leadership

position. In 2014, the market share of Axe fell to 6.9 % failing to hold on to the position of a leader.

The major reason being that other brands came up with new and innovative ideas like High value

Deodorants, no gas sprays and Couple Deodorants.

Engage Interestingly, ITC's Engage deodorant brand, which launched a range for both men and women in

April 2013, is one of the youngest brands in the category. It has managed to grab a chunky piece of

the market pie.

With its launch only Engage had garnered a share of about 5-6% in the Rs 2,100 crore deodorant

market as of October 2013.

ITC personal care's entry into the deodorants market with Engage has received an extremely

encouraging response which now holds 8.1 % market share.

Reason for such tremendous response for Engage is that it also focused on the women segment

which holds an account of almost 31% of total market share.

It leaves behind Men attracts women theme and got involved in playful chemistry of the two

partners (Couple).

Differentiated packaging- It brings freshness in the bottle design. Which helped the brand to attract

users attention on the shelves of Retail outlets.

For men, it introduced black and bold bottle and for women it introduced bottles in colours like pink,

blue, yellow.

From 6+ Variants in 2013 it launched 14+ variants till Dec 2014 which significantly helped the

company to compete with existing brands.

Wild stone In 2012, Wild stone enjoyed 10.7 % of market share with its focus on 15-30 years of age group.

According to Nielsen, little known company, McNROE Consumer Products, which sells the Wild

Stone brand, toppled giants Hindustan Unilever and ITC in the June quarter 2014 to reach the

second spot in sales.

Wild Stone communicated its brand for Indian men and women who are lifestyle oriented and have

passion and mystery rather than overly sexual brand.

It came in mainly two variants a milder one for office goers and a stronger one for party goers.

Wild stone currently has a 6.9 % market share marginally more than That HULs Axe.

Park Avenue It is a brand which focuses on age group of 28+ and tries to build a high brand loyalty among this age

group and focuses on anti-perspirant and long lasting fragrance.

From 2% in 2012, Park Avenue has stepped to 6.5 % in 2014.

JK Helene Curtis, part of Raymond group and the maker of Park Avenue deodorant is delighted to

have gained an incremental market share in this cluttered category.

This is a result of innovation in pack sizes and launch of new fragrances.

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SEGMENTATION, TARGETING AND POSITIONING

Segmentation The deodorant consumers can be segmented on the basis of age or gender.

Age group Segment Trends Benefits Brands

14-17 years Influenced by parents, peer group Curious & Explorative by nature. Lack of loyalty factor.

High Fragrance, Attraction

Axe, Set Wet, Brut, Park Avenue, Rexona, Fa, Lomani, Spinz, Fogg

18-22 years Experimenting and explorative by nature. Strivers

Anti-perspirant, Odour, Fragrance, Attraction.

Axe, Set wet, Wildstone, Fa, Adidas, Nike, Reebok, Zatak, Cinthol, Fogg

23-28 years

Development of preference & brand loyalty. Willingness to try expensive brands Esteem-seeker, Striver, Utilitarian

Fragrance, Attraction, Long lasting smell, Anti-perspirant

Dove, Axe, Brut, Nivea, Playboy, Fogg

28-35 years Utilitarian, Traditionalist High brand loyalty

Fragrance, Health & Hygiene, Anti-Perspirant, Long lasting fragrance.

Old Spice, Park Avenue, Dove, Tommy

36 years & above Utilitarian May switch to other means like, perfumes to fulfil similar needs.

Health & Hygiene, Skin-care.

Tommy, Jovan, Old Spice, Dove, Nautica

Gender Segment Trends Benefits Brands

Male More Influenced by advertisements & promotional campaigns

Anti- Perspirant, Contemporary masculine fragrances such as Musk etc.

Axe, Set Wet, Playboy, Fogg, Park Avenue

Female Peer Groups influence, properties of the deodorants

Floral & Fruity fragrances, more hygiene conscious & Skin-care

Rexona, Dove, Yardley, Eva, Spinz, Nivea, Fa

Target Our target audience would be the females of middle class and upper middle families living in metropolitan cities and tier -1 cities within the age group of 18 to 28 years. There are a number of deodorants for males but there are very few deodorants for females. This is because deodorants and antiperspirants have recently been introduced to the Indian market. For decades, the Indian market has been relying on perfumes to enhance the scent of the body. And as such, females in the country continue to use perfumes instead of deodorants and antiperspirants. Also, deodorants are used by those who are constantly outdoors, and this is dominated by males.

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It is only in the last few decades that there has been an increase in the number of Indian women spending ample amount of time outdoors, which is why the deodorant market for females is still in the infant stage. Primarily women going to college or working spend their time outside and would require deodorants. Some of the deodorant brands that cater to the females are Nike, Fa, Yardley, Eva, Dove, and Nivea.

Positioning Strong Enough for a Man. But Made for a Woman The positioning statement focusses on a deodorant which is for women and has a strong fragrance. Currently the industry lacks such deodorants for women while there is an increasing demand of the same. Most important attribute of a deodorant as perceived by the people:

Long-Lasting Antiperspirant Value for Money Strong Fragrance Brand Value Promotion Freshness Packing

Our product would focus on these factors, to cater to the teenagers as well as the young working women. Also, we have focused primarily on only these factors, to provide an added benefit of the perfumes by offering different variants for different occasions. We would position it as a fashionable, stylish and an impactful deodorant.

Points of Parity

Points of Differentiation

Pleasant Fragrance Strong Fragrance

Long Lasting Skin Friendly

Easy to Carry Packaging Freshness

No Patches on Clothes

Aluminium Free

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Perceptual Map for Womens Deodorant

OBJECTIVES Total deodorant market has been valued at INR 2500 Crores for the F.Y. 2014-15

o (Source www.Business-standard.com) Total women deodorant industry is 30%

o (Source- www.mbarendezvous.com) Assumption for the growth rate of the industry is 25%

o (Source -www.mbarendezvous.com)

Based on the available data, Total Women deodorant industry for F.Y. 2014-15 is INR 750 crores

Our objective is to gain a market share of 9% in the women deodorant industry in F.Y. 2015.16

Total deodorant Market INR 3,125 Crores Women Deodorant Market - 937 Crores Sales Objective 84.3 Crores Average selling price of one Deodorant INR 150 Total Sales volume(Units)- 5,625,000

http://www.business-standard.com/

ACKNOWLEDGEMENTlorealMissionVisionValues

market analysisPESTEL ANALYSIS:Political factors:Economic Factors:Social Factors:Technological Factors:Environmental factors:Legal factors:

PORTERS FIVE FORCESBargaining power of buyersBargaining power of suppliersThreat of substitutesThreat of new entrantsCompetition

industryFMCG IndustryPersonal CareDeodorant IndustryMarket ShareMarketing Strategies of CompetitorsFogg:Axe:Wildstone:Engage:Park Avenue:

SWOT Analysis for Beauty Segment (S.B.U L'real, India)

Performance ReviewFogg:AxeEngageWild stonePark Avenue

segmentation, targeting and positioningSegmentationTargetPositioningPerceptual Map for Womens Deodorant

Objectives