ITC Interrobang
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Transcript of ITC Interrobang
Team Name – Winter is Coming | Campus Name – NMIMS Mumbai
Mitesh Tanvi Apoorv Aashish
1
Industry Profile
Primary Research
Current Franchise
Promotions
Product Extension
Category Extension
Agenda
Industry Trends• Urban consumers who are well-aware of the use of deodorants
have started looking for secondary benefits from their deodorants
• Rural markets for deodorants growing at a staggering rate of 29%
Deodorant Market• Market has grown from 500 crore to 2100 crore from 2009 to
2014 • Men deodorant form 70% of the category • 986 varieties of deodorants (from 500 brands) are sold across
markets, with as many as 103 recent launches.• Illegal exports & counterfeits market is around 400 crore
Projected market size for deodorants (crores)
Year 2014 2015 2016 2017
Premium(%) 1.8 1.9 1.9 1.9
Mass(%) 98.2 98.1 98.1 98.1
2014 2015 2016 2017
Deodorant 2113.3 2407.1 2704.6 2990.4
2014-17 CAGR
Deodrant Sprays 14.7
12.5
8.1
6.9
6.9
0 2 4 6 8 10 12 14
FOGG
ENGAGE
AXE
WILDSTONE
Fogg Engage Axe WildStone
Volume 12.5 8.1 6.9 6.9
Market Share by Volume (%)
Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension
Expected growth rate for deodorants
1
Primary Research
• Survey of 200 consumers aged between 18-30. (120 men and 80 women)
• Interview and observation at 30 GT and 10 MT in the urban and suburban areas of Mumbai. (Juhu, Versova, Lokhandwala, Malad)
Secondary Research
• Euromonitor reports for Personal care, Lip Care, Fragrances in India, UK , US and China.
• Newspaper articles
• Competitor websites and social media
•Deodorants Awareness
Axe 100%
Nivea 100%
Dove 100%
Fogg 88%
Engage 70%
6%
31%
59%
4%Brand Loyal
Set of Brands
Love toExperiment
Buy Anything
15%
33%
52%
0%
Brand Loyal
Set of Brands
Love toExperiment
Buy Anything 30
31
Female
Male
25
37
88
12
27
Kirana Store
Chemists
Supermarkets
Online
Cosmetic Stores
21 21
70
20
78Kirana Store
Chemists
Supermarkets
Online
Cosmetic Stores
3%
11%
71%
15%
Once a week
2-4 days in aweek
5 or more days
Do not use adeodorant
Reasons for not using a deodorant:• Harmful to skin• Allergic• Contain Carcinogens• Do not last long• Prefer perfumes to deodorant
Research Methodology & Key Findings
Purchase BehaviourPurchase
Points(in %)
Purchase BehaviourPurchase Points
(in %) Willingness to Carry(%)
Frequency of Use
Men Men
Women Women
Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension
2
BRAND PERCEPTIONParameters:
• Value for money• Variety• Packaging• Fragrance
• Helpful in attracting opposite sex• Long Lasting
AXE is having the highest brand equity because of its perceived high value for money, variety and fragranceThin line of differences in the deodorant category for female deodorants
012345
Value formoney
Variety
Packaging
Fragrance
Helpful inattracting…
Long Lasting
AXE FOGG ENGAGE
012345
Value for money
Variety
Packaging
Fragrance
Helpful inattracting theopposite sex
Long Lasting
NIVEA DOVE ENGAGE
BRAND SCORES• Rating on Important factors leading to purchase decision• Score on these parameters to different brands• Axe is having highest Brand Equity in the men category • Dove is having the highest Brand Equity in the women
category
2%
10%
34%
70%
MEN
4%
13%
40%
73%
WOMEN
Awareness
Cons ideration
Purchase
Loyal ty
PURCHASE FUNNEL• Low conversion from awareness to consideration and from
consideration to purchase• Only 1 of the 7 people aware of the brand choose to buy
engage while buying a deodorant• Need to increase the POS activity to increase the
conversion from consideration to purchase
Measuring Current Brand Equity
Ben
chm
ark
ing
Purchase Funnel
Men Women
Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension
3
Mo
der
n T
rad
e
Absence of Promoters in outlets
in 8 out of the 10 outlets visited
Brands like Nivea & Yardley had promoters
Product placement in lower racks
4th or the 5th shelf from the top
Higher Secondary visibility for other
brands
Old-spice, Nivea & Axe (High Aisle visibility)
Absence of Testers and the entire line at
Supermarkets
Testers available for competing brands
(Yardley, Nivea, Axe)
Lesser Front facing for engage in the rack made the visibility cluttered
Yardley, Nivea and Dove had large no. of lines in the top-2 shelves
Gen
eral
Tra
de
Designated shelf space, posters & shelf-strips by Old Spice in pharmacies
Imported Deodorants displayed due to higher margins
No Eye Level Visibility
Secondary Visibility of Competitor Brands
2.33
3.72
4.39
3.67
2.83
0
1
2
3
4
5
Engage Axe Fogg Nivea Dove
Engage
Axe
Fogg
Nivea
Dove
• Ensuring Availability of Testers for all fragrances• Stationing Brand Promoters at outlets• Increased Secondary Visibility• Also, helps display Men & Women Deodorants
togetherRec
om
men
dat
ion
sV
isib
ility
Mat
rix
Market Observations & Visibility
Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension
4
Democratization of Content
Higher user generated content on the website
with the help of a Twitter\Facebook feed. Enabling them to rate
and review the deodorants
Increases engagement
Drives more traffic to website
Fragrance Pyramid
Top Note
Heart Note
Base Note
Perceived immediately on application of a
perfume
Act to mask the often unpleasant initial impression
Appears close to the departure of the
middle notes.
Gamification/Appification of Facebook page Deodorant Recommender
A Facebook game to get more user
engagement
Pla
yfu
l Ch
emis
try Asking fun questions
about one’s partner & recommending a deodorant based on replies
Campaign by Degree USA
Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension
5
Brand Strength consists of Brand Differentiation and Brand Relevance.
Brand Stature consists of Brand Esteem and Brand Knowledge
Axe, Dove and Nivea emerged to be in a leadership position primarily because of its high awareness and high perceived value
Gradually Engage is moving towards the leadership position. However, there is a need to move it into the consideration set of the TG
Protect Your Partner | Break the Bottle Campaign
Cheap, fake deodorants are infiltrating the market that causes skin infections and diseases.
Engage with the consumers and educate them regarding the real
and fake deodorants through social media
Exis
tin
g P
rob
lem
Solu
tio
n
1Encourage them to
“protect your partner” & make dents on the
used bottles !
2
Fact: Fake and imported deodorant market is 400cr
Get Your Selfie Printed Campaign
People love getting clicked
and like sharing it on the social
mediaOp
po
rtu
nit
y
Online Campaign
Integration with offline
world
Increased traction online +
more visibilitySt
rate
gy
Met
ho
do
logy
Installation Photo booths at high traffic areas and get their
selfies printed #youmeengage
1Instant rewards to the
Target audience-Higher sharing and
more mentions
2
3
Works on the principle of Geo-tags
and Hash-Tags
4
Currently Microsite for youmeselfie has a little over 1500 uploads on the Micro-site
which can be expanded through integration with the offline world.
This ensures more visibility and higher online traction
Cu
rre
nt
Stat
us
Social Media Campaign
Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension
6
Incentivizing the user for sharing is necessary
Feature on Your Favourite Deodorant CampaignThe brand takes the youmeselfie campaign further and awards the winning selfies to feature on the deodorant can. This enables brand
recall. Also couples can relate to the product better as they can imagine themselves on the can.
Fragrance DescriptionAs we observed the lack of testers impacted the purchase of the product. Therefore a short description like “Fruity Fresh” etc will accelerate purchase. Users will be able to understand the offering
better even in the absence of a tester.
General Trade Campaign
Co
mp
eti
tor
Be
nch
mar
kin
g
Avoid Clutter! Ensure
Shelf Space Visibility
POS MaterialSuch as posters, stickers
& shelf strips.8 out of 30 stores that
we visited had competitor POS material
Enhance Visibility
Packaging Campaign
Modern Trade Campaign
Op
po
rtu
nit
y
Entice them!To capture the
user’s attention while shopping by
sending out an Engage Fragrance
Au
tom
atic
Air
Fre
she
ne
rs
It had time released
fragrances which can be
set to the preferred
fragrance level
Engage Deodorant can be used as fuel and can be an
intelligent substitute for
testers
Cost2500*Shelf Space* No. of Modern
Trade Outlets
Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension7
0% 10% 20% 30% 40% 50%
Smaller Pack Size
Colour Protection
Alcohol Free
Whitening
31%
40%
45%
38%
30%
38%
49%
50%
Red- Men, Blue - Women
75%
25%
Percentage of users that seek Additional Benefits
SeekAdditionalBenefits
Don't SeekAdditionalBenefits
Urban middle class segment becomes more demanding…..
Freshness48 hours protection, whitening & alcohol
free deodorants
48 hours protection, whitening & alcohol
free deodorants
Non English Inscriptions gives the feeling of imported product
Anti-BacterialDermatological
Tested
Insights
Brands have moved a step ahead of unique value proposition (USP) and now talk about extra value proposition (EVP)
Additional benefits that Engage can give to
their users to capture this market
Results of Primary Survey
Competitor Benchmarking
Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension
8
Whitening
Alcohol Free
Colour Protection
Smaller Pack Size
Whitening Underarms
-Indians obsessed with fairness
- Rising consciousness amongst the consumers
-Growth of 30% of fairness industry-200 m market in
India
45% of men and women prefer deodorants that
claim to provide whitened underarms
Dark underarms are repulsive. Engage’s playful chemistry
resolves it
Benefit Consumer Behaviour Reason to Enter Primary Survey Point of Difference
Dove (HUL)Nivea (Beiersdorf)
Competitors
Alcohol Free Deodorants
-Informed & Sensitive Consumers
- Greater desire for products with less
additives and more nutrition
-67% of the women have sensitive underarm skin & are moving towards
alcohol free deodorants
48% of men and women prefer deodorants that do not contain alcohol
Positioning under “Protect Your Partner”
Campaign. Alcohol causes skin allergies &
irritation
Dove (HUL)Nivea (Beiersdorf)Cinthol (Godrej)
Colour Protection Deodorants
-Consumers care about their clothes
- Patches or discolouration gives a bad impression
-Certain deodorants cause yellow stains or
discolouration of clothes especially in the
underarm region.
39% of men and women are troubled by
discolouration & staining
-A Hygiene factor, Engage helps you to
prevent repulsion-keeps your reds as reds and yellows as yellows
Nivea (Beiersdorf)
Small Pack Sizes –Compressed Deodorants
People wants to carry deodorants to feel fresh
and stay odour free 24X7
-Trial is also needed-Cheaper option
Affordability, ease to carry, test packs and
environment friendliness
30% of the users would prefer smaller can sizes and would like to carry
deodorants
-Playful Chemistry helps you too stay fresh and smell attractive at all
times
Nivea (Beiersdorf)Wild StoneSure (HUL)
Product Extension vis-à-vis Competitors
Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension
9
ProductMarket Size
(INR mn)Growth Rate Competitors Competitor Positioning Point of Differentiation
Cannibalization of exiting
products of ITCRelevance
Lip Balm 3000 25.00%1. Vaseline (HUL)2. Nivea (Beiersdorf)3. Maybelline (L’Oreal)
1.Medical Benefits2.Flavored Lip Balms
1.Complementary flavors for couples
2.Kissable LipsNone
Deodorant Wipes
225.6 23.80%1. Fresh Ones (Tainwala Personal
Care)2. Kara (Grasim Industries)
1.General purposewipes 2.Facial Cleansing wipes
1.Deodorant wipes for instant freshness and confidence
None
Instant Breath Freshener
Spray1600* 28% 1. Spraymintt ( Midas Care)
1. Be Kiss ready in 1 second
1. Different flavours for men & women
None
Body Spray 775 34.80%1.Fogg (Vini Cosmetic)2.Body Shop (L’Oreal)3.Fabindia
1.Last Longer2.More perfume per spray
1.Longer effectiveness2. More perfume in a single spray, in addition to playful chemistry
Medium
Shower Gel 1426 20%1.Axe (HUL)2.Nivea ( Beiersdorf)3.Adidas
1. Alternate to soapNone, cannot leverage on the playful chemistry image
High
Air Freshener 2700 30%1.Aer (Godrej)2.Ambi Pur (P&G)3.Park Avenue ( Raymond)
1.Love is in the air2. Change the air
None, though this is related to fragrances, but shall lead to brand dilution
None
* Estimated
Industry Profile Current Franchise Promotions Product Extension Category Extension
10
Company Market Share Average Price Positioning
Vaseline 18% 150 Heal Chapped Lips
Nivea 19% 136 Shiny Lips with fruity flavors
Maybelline 13% 134 Moisturized and sun protection
Targeted at couples engaging in playful chemistry, positioned as kissable lips
Different flavor for men & women e.g. Peach & Cream ; Fire & Ice
Company Market Share Average Price Positioning
Tainwala 37.7% 38 General Purpose Wipes
Grasim 6.9% 60 General Purpose Wipes
Pristine Care 6.1% 65 General Purpose Wipes
Easy to carry Deodorant Wipes for Instant freshness and Confidence
Different scented wipes for men & women which have secondary benefits like anti bacteria , alcohol free, moisturizing
Estimated Market Potential in Lip Balm Category( CAGR 25%)Year Market Size Conservative(5%) Optimistic (16%)
2014 3000.00 150.00 480.00
2015 3750.00 187.50 600.00
2016 4687.50 234.38 750.00
2017 5859.38 292.97 937.50
2018 7324.22 366.21 1171.88
Estimated Market Potential in Wipes Segment (CAGR 23.8%)Year Market Size Conservative (5%) Optimistic (16.13%)
2014 225.60 11.28 36.39
2015 279.29 13.96 45.05
2016 345.76 17.29 55.77
2017 428.06 21.40 69.05
2018 529.93 26.50 85.48
Lip Balm Market Share Deodorant Wipes Market Share
Company Market Share Average Price Positioning
Midas Care 100% 69 Instant Kiss Ready
Estimated Market Potential in Instant Breath Freshener (CAGR 28%)
Year Market Size Conservative(20%) Optimistic (50%)
2014 1600.00 320.00 800.00
2015 2048.00 409.60 1024.00
2016 2621.44 524.29 1310.72
2017 3355.44 671.09 1677.72
2018 4294.97 858.99 2147.48
Mouth Freshener Market Share
Complementary flavors for men and women, e.g. Mint & Strawberry ; Clove & Chocolate
ITC can leverage its wide network to distribute the product, currently the product is available only at cosmetic shops & chemist shops
Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension
11
QnA
Questions