virendra thakur

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ASSIGNMENT

Economical conclusion Based on observation

Of shampoos in a departmental store

SUBMITTED TO PRESENTED BY

Dr.. P.CHAKRAVARTHI VIRENDRA SINGH

VVISM

HYDERABAD T-6056



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.

Hair Care Category in India Types of Shampoos

Hair Care Facts

Market Size Awareness

Evolution of shampoo as a product

The top brands



Elasticity of Demand

Elasticity of demand measures the degree of responsiveness of the

quantity demanded of a commodity to a given change in any of the determinants

of demand

Following are some of the determinants of demand for shampoo:

Price of shampoo

Income of consumers

Price of related goods (Complementary & substitutes)

Taste and preferences of consumers

Advertising

Analysis on Shampoo:

In the case shampoo industry it is having a

monopolistic competition because here there is a large number of producers offer

similar but differentiated shampoos

Following are the features of shampoo market on the basis of

monopolistic competition:

Large number of buyers and sellers

Differentiated product

Selling and advertisement cost



HAIR CARE CATEGORY IN INDIA

The hair care market in India is valued at $200 million. It has registered a growth of 3.8% over the

previous year. The hair care market can be segmented into hair oils, shampoos, hair colorants &

conditioners, and hair gels.

Hair colorants & conditioners According to A C Nielsen (the world's leading marketing information company), hair colorants,

feminine hygiene, and baby care have accelerated growth in personal care market.

Hair colorants are substitutes for hair dye to counter graying hair. Hair colorants indicate stronggrowth trends with a year over year growth of 8 per cent.

Gone are the days when hair conditioners and hair colorants were used occasionally to look

beautiful. Today, they have become the way of life. However, hair conditioners in India still face

a difficult market due to long established habit of using hair oil and ayurvedic treatments, as they

are cheaper for consumers and lack the chemicals of conditioners.

Hair oils

the hair oil market is valued at Rs. 6 billions. Hair oiling is a major niche in the hair care segment. Unlike

market abroad, India has a large quantity of consumers whose hair care expenditure also includes hair

oils. The penetration level of hair oil is around 87%. Around 50% of the population uses hair oil

everyday. The growth rate of hair oils in rural India is faster than the growth rate in urban India.

The major players in hair shampoo category are HLL, Marico, and Dabur India.

ShampoosThe shampoo market is valued at Rs 4.5 billion and has the penetration level of only 13% in

India. The market is expected to increase due to increased marketing by players, lower duties,and availability of shampoos in affordable sachets. Sachet makes up to 40% of the total shampoo

sale. The Indian shampoo market is divided in two parts

y Cosmetic

y Anti-dandruff

this is primarily a middle class product because more than 50% of the populations use toilet

soaps to wash hair. The penetration level is only 30% in metros. The major players are HLL, and

Procter & Gamble.

Hair gelsHair gel market segment is at a primary stage and not many local brands are available in India. Hair

gels/creams are mainly used for hair grooming by men and is used as a fashion accessory. The market

penetration of hair gels/creams is very low, and is limited to a small section of the urban market.



TYPES OF SHAMPOOS

All shampoos fall into one of two categories:

1. cleansers (Prell, Herbal Essence, Breck) that need a follow-up conditioner 2. combo of cleanser and conditioner that don¶t clean as well as a straight cleanser

and don¶t condition as well as a conditioner but will do a good job of both tasks.

Most shampoos are in this category but differ as to which kind of conditioning

ingredient they contain.

All conditioners (whether as a separate product or combined in a shampoo)

accumulate on the shaft and can¶t be removed by using the same product all the

time. It¶s good to use a simple cleansing shampoo after every two or three uses of a

conditioner or a conditioning shampoo.

Other special shampoos types:

1. Dry shampoos: powders brushed onto hair and are then brushed out. They don¶t

really clean, but it¶s a good stopgap if you can¶t shampoo.

2. Baby shampoos: these are meant for babies, who have fine hair and not much of

it. It¶s not strong enough for an adult, even if you use it every day.

3. Shampoos for color-treated hair: these need to be rich in moisturizers and

protein to return water to the shaft. They should be low in alkalinity, and should

not have sulphated castor oils that will strip color.

4. Shampoos for processed hair: these need to be rich in moisturizers and protein toreturn water to the shaft. They should be low in alkalinity.

5. Daily use shampoos: these are very gentle and have low amounts of cleansers

and usually contain conditioners. They¶re not strong enough to remove the normal

buildup of styling products.



MARKET SIZE

Shampoo in India was derived from the Hindi word champi meaning hair massage. Theintroduction of shampoo in India dates back to the British reign in the country. Being a recent

development the growth of shampoo or rather the penetration levels of shampoo in the India has been commendable.

The shampoo market in India is estimated to be Rs 2,500-3,000 crores. The shampoo market is

India is categorized according to the benefits they provide. Mostly consisting of three kinds of shampoos cosmetic, herbal and anti dandruff, the shampoo market in India has managed to tap

users of the various segments according to their requirements and preferences.

Due to the continuous efforts of the top shampoo brands in India penetration of shampoos in

urban areas is almost 100%. As far as penetration of shampoo in the rural areas is concerned it

has risen by almost 18% in the current scenario.

The top shampoo brands in India include Sunsilk, Clinic Plus, Dove and Pantene. The company

that leads the shampoo market in India is Hindustan Unilever Limited. The top three most sought

after brands Sunsilk, Dove and Clinic are produced by HUL. The company holds a 44% market

share in the Indian shampoo industry. It is said that HUL earns almost 8% of its revenue from the

sale of these products .The other recent brand that has taken the Indian personal care industry by

storm is Pantene. Since its very inception the brand was a best seller. A product of FMCG giants

Proctor and Gamble Pantene has slowly and steadily managed to capture quite a large amount of

the Indian market. Proctor and Gamble the second top shampoo brand in India holds a market

share of around 25% in the Indian shampoo industry. The revenue earned from the ale of shampoos from Proctor and gamble is almost 17%.

Together these two major players constitute a major part of the Indian shampoo industry. Both

these players with their numerous brands dominating the Indian shampoo market are

continuously trying to outdo one another by introducing different marketing schemes. Be it in the

form of price cuts, discounts or increasing the size of the shampoo sachets without any extra

costs these two to shampoo producing companies are at a continuous price war.



SHAMPOO SPONTANEOUS AWARENESS.

Highest spontaneous awareness Nivea with 40%. Second is Schauma, and Head&Shoulders follows.

Prompted awareness is quite different, 4/5 of internet population knows brand Palmolive. Next is

Pantene pro-V and Head&Shoulders.



FREQUENCY OF SHAMPOO

The frequency of shampoo usage is very low. Most consumers use shampoo only once or twicein a week. In many cases, these products are used on special occasions such as weddings, parties

etc. Some customers use shampoo only to address a specific problem such as dandruff or whenthey need to condition their hair. In Contrast, shampoo bottles are more popular in the Northernmarkets. About 50 % of the shampoo bottles are sold in the Northern region alone. In the North,

local brands such as Ayur have strong equities and these products being low priced dilutesachet¶s USP of low price.

Definiton of FMCG, FMCG Products, Typical Characteristics of FMCG products, Hair Care

Category in India, 5 main products(Hair Oil, Shampoo / Conditioners, Styling products, HerbalRemedies, and Hair Dyes / colors), TG for Shampoos, Types of Shampoos, Hair Care Facts,

Shampoo market Size in India, Shampoo Awareness in India, Shampoo Usage, ShampooPenetration in India, Growth in Shampoo Market, Evolution of Shampoo in India, Entry of

Competition, New Entrants into the Market, Shampoo Boom in India, HLL Dominance, The topShampoo brands, Ad Budgets are on the rise, and Brands on the Net.

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SHAMPOO MARKET SEGMENTATION AND POSITIONING STRATEGIES

With the Development of market economy, the market has become an extremely largeand complex whole. In the commodity economy, because of limited resources, anyenterprise, regardless of the size of how bi g, cannot provide enough to meet the entir e

market all the needs of all users and customers of goods and services, in order toenable enterprises of the resources available, t he most effective use, it must be thescope of market-oriented enterprise to be an appropriate limit, from the overall market,divided into the most suitable for business, most enterprises play the advantages of amarket reach as an enterprise target market for this particular target markets, developMarketing strategies, to adopt various marketing tools, to establish itself in the positionin the market to get the best This marketing is targeted marketing. Theimplementation of target marketing, we must first investigate the market demandanalysis and forecasting, based on the implementation of market segmentation, target-oriented an d positioning, which is the core of corporate marketing is key to the successof marketing decisions. Today, due to the formation of a buyer's market a

comprehensive, research consumer features, market segments, as well as to adapt todifferent consumer groups t o develop marketing strategies to promote this scientificapproach the market, has been an increasing number of industries and companiesverification practice and has attracted a growing number of Chinese entrepreneursattention. However how a specific implementation of market segmentation andpositioning strategies to achieve the purpose of business to explain Market indifferent industries, different products, their specific requirements and methods of implementation but not the same this paper intends to analyze China's current market,the basic conditions of shampoo shampoo as well as on the basis of fish consumptionpattern s, to explore ways to market segmentation and positioning according to thebasic theory, base d on the real market demand to develop more effective shampoo

business strategy. China's shampoo market has remained relatively stable in recentyears, the pattern of state.



CONSTRUCTING PURCHASING ENVIRONMENT

There are three principles for the mid-sized department store to construct purchasingenvironment. First, the environment must be constructed around the motifs. Second, theenvironment must be good to attract customers to purchase goods in the store. Third,the environment design should be adjusted incessantly as time goes, and situationchanges. The mid-sized department store could give customers a fashionable brandimpression forever only through adjusting the purchasing environment at every turn.4.3.2 Rendering retail atmosphere.The mid-sized department store needs to hold sales promotion and public relationactivities regularly. On sales promotion, the store should adapt purchasing environment,commodities and service to its promotion, and prevent actions that may damage thestore¶s brand image for the sake of the sales volume. On public relations, the storeshould catch good opportunities in culture, news and itself. Only by this could the retailatmosphere in the store affect customers, and reinforce the store¶s brand image.4.3.3 Providing commodity value compared with other retail formats, the value that themid-sized department store provides is in the middle of the pyramid. Thus, the storeshould give customers corresponding value. Generally commodity value includesfunctional value, experiential value and symbolic value. As for the same kindof commodities, the difference of their functional value is not too much, but the other twokinds of value have a great difference. Thus, the mid-sized department store shouldoffer customers the commodities that the latter two values are moderate. Inmerchandise management, the mid-sized department store should learn to use two legsto walk. One is to bring in middle-grade and low-grade vogue goods timely.



CONCLUSION

If a mid-sized department store wants to achieve differentiated management, it mustuse the strategy of experience branding. As for the store, exploring experientialdemands of local residents is the premise of experience branding. Designing effectiveexperiential motifs is the key point of experience branding.Managing context dimensional factors systematically is the guarantee of experiencebranding. In market competition, only by making efforts in the three aspects, could themid-sized department store avoid price wars and realize the aim that it would get rid of trouble and recover. The Shampoo Industry has a significant role in the FMCG Industry.fastest moving goods with cheap price.The Industry has a major contribution in the FMCGsector. There is Intensive Rivalry in the Shampoo Industry this has caused these Industry to the penetration period.But Shampoo Industry Players are effectively using their potential in developing the strategy for survival andsustainable profit and growth.

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