Vous êtes sur la page 1sur 42

Market Plan

HUL Deodorant Category HUL 2012-13

Submitted to : Dr. SR. Singhvi

Aamod Baijal 11PGDM061 Abha Bhakoo 11PGDM062 Alisha Sukhija 11PGDM066 Richa Marwaha 11PGDM105 Sandeep Chandrasekaran 11PGDM108

Executive Summary
Deodorant market in India is estimated to be of Rs 10,543.3 million in 2011 and is expected to reach Rs 13, 340.7 million by the year 2012. The deodorant market is projected to grow at 25 per cent CAGR over next 5 years. The challenge that lies ahead in this category is one of market clutter. The challenge is equally to stay relevant, original and innovative to a changing consumer profile that gets fatigued with the brand and the scent a bit too fast. Faster than before. The deodorant category is therefore young, aggressive and morphing all the while. HUL, with its deodorant category is currently the market leader and enjoys a share of 41%. The goal for the next year 2012-13 is to grow with the market rate of 25%,so as to maintain a market share of 44% and to continue to remain market leaders. This marketing plan focuses on the strategy to achieve the above mentioned goal keeping in mind the competitive marketing environment and the changing consumer behavior keeping in mind the companys strengths and weaknesses.

The Deodorant Market in India

The deodorant category is a high-value, high-volume potential growth segment in India. India is a sweat-driven country. In a country such as this, the deodorant category grows in tandem with need and most certainly in tandem with the growth in buying power. Smelling good has been a universal need of men and women alike. The deodorant market in India is showing an upward trend as major players tap this segment. The growing income and increased expenditure capacity of average Indian consumers have changed their lifestyle habits. Deodorant market in India is estimated to be of Rs 10,543.3 million in 2011 and is expected to reach Rs 13, 340.7 million by the year 2012. The deodorant market is projected to grow at 25 per cent CAGR over next 5 years. The deodorant market is divided into categories such as Deodorant Rollo-ons and Deodorants Sprays. However, the market is mainly dominated by the Body Spray categories. As per market research firm, Euromonitor, the market size of Deodorant Sprays is estimated to be Rs 10, 421.7 million as compared to Roll-ons which has the market value of Rs 121.6 million in the year 2011. Though deodorant category is now a non-seasonal category and is completely entrenched in the life of the consumers, there is a usual hike of 30 to 40 per cent in sales during summer season.

Based on Age :
Age Group Segment Trends Benefit / Needs Sought High Fragrance, Attraction HUL Brands Sure Other Brands

14 - 17 years

Taste is influenced by parents and peer groups Curious and explorative nature No Loyalty Explorative in nature Striver

Set wet, Brut, Fa, Lomani and Spinz

18 22 years

Antiperspirant, Anti-odour, fragrance, attraction, seduction.

Fragrance , Attraction, Long lasting smell, Anti perspirant

Axe and Sure

Adidas, Nike , Reebok , Zatak and Cinthol

23 28 years

Taste and Brand loyalty develops Willingness to try more expensive brands Esteem seeker, Striver, utilitarian

Axe, Sure and Dove

Adidas, Nike , Reebok , Zatak , Cinthol , Benetton , Brut , Nivea , Tommy and Charlie

28 35 years

Utilitarian, Traditionalist. High Brand Loyalty

Fragrance , Long lasting smell, Anti perspirant Health and Hygiene, Skin care.


Benetton , Brut , Nivea , Tommy and Charlie

36+ years

Utilitarian May switch to other means of satisfying the needs, like perfume


Tommy, Jovan , Brut , Charlie , Nivea.

Based on Sex :
Sex Male Segment Trend Influenced by advertisements Benefit / HUL Brands Needs sought Anti perspirants, Contemporar y, Masculine fragrance Floral and Fruity fragrance, Skin Care Axe and Sure Other Brands Set wet , Zatak , Playboy and Park avenue


Taste influenced by peers and suggestions Influenced by properties

Sure and Dove

Nike Woman, Nivea and Spinz

Based on Income :
Income Group

Preferred Price Characteristics Range

Rs 65 110 Volume 75ml to 100ml Preferred by travellers

HUL Brands

John Miller, Cinthol , Denver

Aspirers, Seekers, Strivers Strivers, Global Indians

Rs 110 270

Volume 150ml

Axe, Sure and Dove Dove

Nike, Wild stone, Adidas , Park Avenue , Playboy Ferrari, Calvin klein, Tommy

Rs 270 +

Volume 150ml

Based on Socio Economic Class

Sec Types Segment Needs Segment Trends HUL Brand Other Brands

Sec A1 & A2

Emotional benefit from the use of expensive deos Tries to be different than others Occasional Use Long lasting smell Strong Fragrance
High Fragrance Value for money

High Brand Loyalty No compromise on premiumness


Calvin Klein, Benetton, Fa

Sec B

Brand Conscious Influenced by adds

Affordability is a deciding factor

Axe, Sure, Dove

Axe and Sure

Nike, Adidas, Nivea, Brut, Playboy

Denver, John Miller, Cinthol

Sec C


HUL Brand AXE Age Group 18-22 23-28 23-28 28-35 35+ 14-17 18-22 23-28 Sex Male Income Group Aspirers, Seekers, Strivers Strivers Global Indians Aspirer Seekers Sec Sec B and C



Sec A1, A2 and B Sec B and C


Male and Female

The positioning statement of Axe can be given as - Among young males (aged 18-28), Axe is a brand of deodorants that helps you to attract the fairer sex because of its strong seductive fragrance. The positioning statement of Dove can be given as Among modern females (sec A1, A2 and B),Dove is a brand of anti perspirant deodrants that helps you to keep visibily smoother and softer underarms because of its day long protection from sweat and odour. The positioning statement of Sure can be given as Among young males and females (sec B and C),Sure is a brand of anti perspirant deodrant that helps you to keep sweat and odour away in extreme conditions upto 58 degrees because of its formulation designed for all day freshness.

Perceptual Mapping :

Marketing Environmental Analysis

1) Competition Analysis : Current Scenario :
The top five brands in deodorant category in India include Axe, Set Wet, Wild Stone, Spinz and Fa, the Euromonitor report reveals. About 70 per cent of this market is made up by mens deodorants and rest by womens deodorants. Nowadays, brands are giving special emphasis on female deodorant category as it has been noticed that a lot of Indian women are using male deodorants simply due to the lack of good choice. Though HUL is currently the market leader and has a share of 41% among the deodorants. The deodorant market is divided into categories such as Deodorant Rollo-ons and Deodorants Sprays. However, the market is mainly dominated by the Body Spray categories. The recent launch of 24 new deodorant brands in India is a clear growth indicator of the deodorant segment in India. The new additions have proven to be a major boon to the already existing 350 deo brands in the organized and unorganized markets. Innovation in the Deodorant Market : Skin whitening deodorant: Traditionally, the Indian consumers have desired for the fair skin. Targeting the same nerve of Indian consumers, Nivea has recently launched a new skinlightening underarm deodorant targeted at young Indian women, which it claims is a global innovation in the category. Nivea has consciously stayed away from this route and has built new variants based on strong consumer insights and functional need gaps identified in the market place. Deodorant sticks: Zodhita Health Solutions Pvt Ltd, a US based personal care company, launched last year in India Zuska range of personal products, which includes, deodorant, antiperspirant sprays and deodorant sticks. With Zuska deodorant sticks, the company establishes the stick deodorant market in India. The deodorant sprays are available in 150 ml can, priced at Rs 210 and the sticks are priced at Rs 225 for a 50 gm pack.

New competitors in the market : Spencers Retail has also announced to launch its own deodorant brand (name not finalised yet) into the market. Acknowledging the huge gaps in the segment, in terms of price-points, the private label players have priced their brand slightly lower than the average market rate of Rs 120-180. Future Groups John Miller is priced at Rs 99 for 150 ml can pack.

Future Environment
The deodorant market in India is showing an upward trend as major players tap this segment. The growing income and increased expenditure capacity of average Indian consumers have changed their lifestyle habits. Deodorant market in India is estimated to be of Rs 10,543.3 million in 2011 and is expected to reach Rs 13, 340.7 million by the year 2012. The deodorant market is projected to grow at 25 per cent CAGR over next 5 years. With such a huge growth, new competitors will be entering the deodorant market. These entrants will come up with new and innovative products such as deodorant sticks. As consumers are maturing, they increasingly looking for products that provide secondary benefits, for example, for specific skin types or alcohol free deodorants, etc might be introduced in the market. HUL should build Sure , its latest entrant in the deodorant market as it differentiates from the ones existing in the market with its No Sweat campaign.

2) Economic Forces Current

There has been an increase in the disposable income in India, which provides AXE an opportunity to tap on the lucrative market.

Indian economy is worth US$1.631 trillion. It is the ninth-largest economy by market exchange rates. Hence it serves as a huge market for AXE to cater. There has been an increase in the purchasing power of the consumers in India. India is ranked fourth-largest by purchasing power parity, US$4.057 trillion and is one of the world's fastest-growing economies.

India's middle classes are projected to number around 580 million by 2030. Infact, India is believed to have the largest middle class. This gives an excellent target segment for AXE.

Future :
Impact of inflation: Even if consumers don't switch to cheaper substitutes during inflation, they normally switch from higher SKUs to lower SKUs of the same product. This is the reason the companies have come up with smaller SKUs. Companies are also coming out with smaller product packs to attract the consumers (those who are open to experiments and those who have lower buying capacity). With the inflation rising in the country, costs of basic necessities have been growing high. This will impact the deodorant sales. Customers have started buying cheap imitation of HULs deodorants, intentionally as well as due to lack of knowledge, as opposed to quality products which are priced higher.

3) Political Forces Current

India has a stable government that is looking forward to liberalization which has attracted numerous foreign players in the market. The political Situation in the country is more or less stable. There were some hiccups in the current year, but the government seems to be stable. Transportation and infrastructure development has improved rural connectivity which implies more market penetration for HULs personal product. HUL already has huge presence in rural market, this development would further help in the penetration of deodorant market.

The political scenario looks to be more or less stable for the next one year. Growths in states such as Bihar and Uttar Pradesh have created markets for deodorants. The Union Cabinet on 24 November 2011 approved 51 per cent FDI in multi-brand retail paving the way for global giants like WalMart to open mega stores in cities with population of over one million. Walmart is known for its huge bargaining power. So it implies shift in bargaining power towards the retail in near future. HUL deodorants will need to build on its brand through its marketing so as to retain its bargaining power if not increase.

4) Legal and Regulatory Forces Current

Deodorants comes under various acts like Indian contract act, consumer protection act, companys act etc. and has to abide by them. The nation has a sound legal system and a strong consumer protection act. The company if found violating rules and regulation could be brought to court of law and in turn lead to bad publicity for the company itself.

In the past, Axe advertisements have come under the banner for being too provocative. HUL should make sure that they are able to catch consumers attention without hurting the sentiments or breaking the law.

5) Technological Forces
HUL currently uses technological forces to innovate new products. Products such as antiperspirants and skin whitening deodorants have undergone various tests and anaylsis before they were launced. HUL also use technology to promote its deodorants. India is currently undergoing a technology boom.

134 Million TV subscribers 80 Million Internet users 500+ Million mobile subscribers 240 Million experienced Internet on the phone 6 Million accessed social media sites 2/3rds of the 80 Million are on social media websites 37 Million Facebook users from India India is the 3rd largest Facebook country according to registered users

Internet subscribers in India are projected to grow at a CAGR of around 56% during 2010-11 2013-14. Similarly mobile subscribers are growing at a rate of 26%. This provides a huge market for promotional activities to be undertaken by the company.

6) Sociocultural Forces
In the current era of economic liberalization, India is currently growing at a very fast pace. With its fast food culture, networking culture within youth, speed of transportation, speed of thinking, and speed of action all are taking the countrys culture to a whole new level. Men and women want to look and smell good. This has opened doors for HUL personal products.

India is evolving as a country. People are opening up to new technologies and ideas. HUL needs to capture the Indian market with more ideas and innovation.

Forecasting the Marketing environment :

The current Market for deodorant in India is Rs 1054 crores. Based on the last 5 years data as mentioned in the table below , using REGRESSION ANALYSIS we forecast the the market size in the year 2012.

Year 2007 2008 2009 2010 2011 2012

Deodorant Market (in crores) 302 438 619 814 1054 1209.4

We get the Market value of deodorants and that is estimated to be 1209.4 crores (approx) Also from the balance sheet form HUL from the past 5 years, we analyse the personal products category and look at the sales for the past 5 years.
S.no Year Total Sales( in crores Rs) 12103 13717 16191 17524 19401 Segmental revenue percentagePersonal products 27% 26% 26% 28% 29.70% Sales -personal products ( in crore Rs)

1 2 3 4 5 6 7

2006 2007 2008 2009 2010 2011 2012

3359 3671 4218 4907 5762 6195.858 6800.049

X Variable 1 Line Fit Plot

7000 6000 5000 4000 Y 3000 2000 1000 0 2006 2007 2008 X Variable 1 2009 2010 Y Predicted Y

The sales estimated for the year 2012 for the personal care category **Personal Products include : hair care, skin care, oral care, deodorants and colour cosmetics

As of 2011, the current market share of Deodorants by HUL is 41%. So from the data given : Market for HUL = 0.41*1054 = Rs 432.14 crores Now the market in 2012 ( estimated value ) is Rs 1209.04 crores Now from the personal care category : 432.14 crores out of 5762 crores rupees is sales from deodorants. We get that deodorants contribute are 7.5% revenue to the category. So from the estimated next year(2012) sales revenue from personal care category is Rs 6800 crores and the deodorant sales revenue = 0.075 * 6800 = Rs 510 crore So the growth in the deodorant for HUL is = (510 -432.12)/ 432.12 = 18 % (approx) And the estimated market share for HUL deodorants = 510/1209.04 = 42.1 % From the above analysis , we come to know the estimated rate of growth of deodorants by HUL while just increasing its market share from 41% to 42%. To grow at the market rate of 25% and thus the market share would increase to 44.2%. But, the Indian deodorant market is growing at CAGR of 25% , whereas from estimated sales HUL deodorants grows at 18 % and thus the goal of growing at the market rate of 25% and having a market share of 44.2%.

Strength and Weakness Analysis for HUL Deodorant

Market Leader in the deodorant segment Has high brand awarness for Axe and Dove Strong emotional touch Innovative marketing campaigns have made sure that they have high brand loyality Newer technology is used in Dove and Sure skin whitening and antipersperants

Some brands are highly priced as compared to competitors Sure as a brand is still not known among Indian customers Popular in only urban markets

25% CAGR growth in deodorant market Being market leader, there is a scope for innovation With growth in infrastructure, better roads, reach of deodorants will increase within the country.

Growing deodorant market is attracting new competitors Negative publicity from some advertisements HUL deodorants will have to fight it out for shelf space Need to be aware from competetion such as wild stone which is a market follower

In the deodorant market, to grow with the market rate of 25%,so as to maintain a market share of 44% and to continue to remain market leaders.

Objectives :

To continue being market leaders with a market share of 25%(as in 2011) or above for AXE and maintain their brand equity. To increase market share of SURE and increase brand awareness and to change the mindset of consumer against antiperspirant deodorants. To increase brand awareness for DOVE and increase the market share from 10% to 15% in women deodorants. To cut down costs and decrease the advertising expenses to 100 crores and go for more effective means of marketing.
**(A lot of consumers have a worry whether anti-perspirants are good for health because it stops the formation of
sweat which is essential for the regulation of body temperatures. Many consumers are shying away from the use of anti-perspirant because of this worry)

For the year 2012-13, Axe will come out with a new range of product called the Axe - All star. Axe- All star range will include the top 5 best selling fragrances* from Axes foreign portfolio and launch them India, to increase the volumes and the market share of AXE. For Dove we continue with current line of products in Dove but to make them more visible in the market and increasing the brand awareness and market share of DOVE from 10% to 15% by increasing communications and distribution.

As SURE was launched in mid June of 2010, we plan to continue with the present variants and increase brand awareness as a part of our promotions and increase its brand visibility by communication strategy, promotions and distribution in areas with high average temperature in the month of April , May, June. To reduce the advertising expenses to Rs. 100 crores , this in turn should decrease the MRP of the deodorant.

To use more cost effective medium for communications and promotions, this will indirectly reduce the advertising expenses. To Restructuring its distribution strategy to bring in cost efficiency with Enter: the goto-market programme. This has been tried in Mumbai, Chennai and couple of other metros. We would recommend HUL plan to implement this strategy in other cities with population above eight lakhs.


STRATEGY : For the year 2012-13, Axe will come out with a new range of product called
the Axe - All star. Axe- All star range will include the top 5 best selling fragrances* from Axes foreign portfolio in India. This will include 1. 2. 3. 4. 5. Africa Accelerate Phoenix Voodoo Dark Temptation

As these fragrances have been accepted worldwide, India stands to be one of the most obvious markets for them. Africa this is the most popular variant of Axe in UK and has been since the last 15 years. Accelerate This fragrance is for the ultimate sports man and has been famous around the globe. Phoenix an abstract fragrance known for its different musk flavor Voodoo originally launched to cover a music festival, became a large hit all over the world Dark Temptation - a fragrance that changes soon became a rage all over

Product Attributes
AXE is a cool, iconic, youth brand available in more than 60 countries around the world. It was launched in India in 1999 and has already become the largest selling Male Deodorant in India..Axe deodorant products are scented to help prevent and mask body odor. The deodorants are available in invisible solids and are clear when applied to underarms. Currently in India, Axe has the following fragrances available in 150ml bottles -AXE Instinct Click -Axe Touch - AXE Dark temptation -AXE Pulse -AXE Denim -Axe

-Axe Dimension -Axe Googly

-Axe Summer -Axe Vice

-Axe provoke

-Axe Music Star

Axe as a brand has become huge worldwide. It is currently available in more than 60 countries thus creating a global brand. As a brand Axe is related to machismo. Customers create an attachement with the product and come back for newer experiences with our huge range of fragrances. For Axe- All star, we want the Indian market to feel connected with the global brand of Axe. We want them to experience the best that we have to offer.

Packaging and Labelling

Axe spray can features a distinctive black metallic exterior and an associative logo representative of its label. Ergonomics have been perfected on the product level to a point where aerosol leakage has become virtually impossible. The twist top bottle makes it easy to use without the hassles of losing the cap. The Axe brand name is designed around a logo that utilizes custom designed typography to give it a distinctive and recognizable look its black exterior, complimenting packaging and block letter exemplified thus setting it apart from competitors. For the Axe- all star range, an all star special package is developed to differentiate between the all star series and other Axe fragrances.

STRATEGY :To continue with
current line of products in Dove but to make them more visible in the market and increasing the brand awareness and market share of DOVE from 10% to 15%.

Variants: - Dove Go Fresh White Ginger Nectarine Deodorant Aerosol 100g, Dove Go Fresh Cucumber & Green Tea Scent Deodorant Aerosol 100g, Dove Go Fresh Grapefruit & Lemon Grass Scent Deodorant Aerosol 100g

Packaging: - The Dove curved container makes it easy for women to hold and use. It directly contributes to perceptions that the brand is effective, yet feminine and gentle, according to the Perception Research Services research. Doves pack requirement are diverse but uses simple clean lines in its packaging to reflect its

moisturising and functional skin-kind benefits that are integral to the brands image. Its a global brand that tries to accommodate the need for local packaging policy relevant to its consumer but needs to rationalise its packaging to retain an instantly recognisable image amidst its expansion. DOVE the Brand Doves Campaign for Real Beauty seamlessly weaves Doves brand proposition and brand personality into a creative brand platform with all the ingredients to build an integrated campaign linking products while encouraging women to define their own beauty and reject big medias unrealistic and unhealthy definition of attractiveness. A brands creative platform is based on the essence of an idea that people in this case the women of the world feel passionate about.

STRATEGY : As SURE was launched in mid June of 2010, we plan to continue with the
present variants and increase brand awareness as a part of our promotions and increase its brand visibility.

Sure is Unilevers global brand and was launched in 2010. The brand is a pioneer in developing the anti-perspirant deo category in India. 3 exciting variants for women & men, available as roll-ons and in aerosol cans and is Priced at Rs 65/- and Rs 40/- each for 40 ml rollon and 25 ml roll-ons.A revolutionary deodorant range that works in sync with your bodys needs. And it contains Intelligent microcapsules that release more protection when you need it most.

Product Attributes and Features :

Sure anti-perspirant dry shield goes into the skin and controls sweat thus eliminating malodour from the body keeping the underarm fresh and dry all day. The USP of Sure men's deo is that it works even at 58degree Celsius highlighting its efficacy in relatively hot Indian weather conditions and uses the tagline NO PASEENA and focuses on no sweat. Sure standouts of the crowd by focusing on its "effectiveness". Very affordable, Rs 65 for 40ml which lasts a month Travel friendly and available easily. Its fragrance is good, refreshing.

Variants available Women : Free spirit and Passion Men :Sport Defence

Texture & consistency

It has a light lotion like consistency, milky white in colour which gets applied on skin just like a thin film or layer upon gliding roll-on onto skin. After drying it is transparent.

Fragrance : Both the variants have fresh and light fragrance. Packaging: The roll on is in tubular shape, with a small fixed ball like opening. As you glide
the ball on your skin a lotion inside the tube glides up and gets applied to your skin.


Based on the analysis and the hypothesis regarding the pricing of the product, a deodorant consists of the following main ingredients: 1. A perfume composition 2. Bacterial Substance 3. Ethyl Alcohol

A. VARIABLE COSTS 1. Materials: - a perfume composition - a bacterial substance - an ethyl alcohol - an electric energy and fuels - a pump, flap, box - a flacon B. FIXED COSTS Total Cost

Rupees per unit 4.5 1.5 7.5 4.5 15 19 15 67

Based on the table: Total cost = fixed cost + variable cost = 15 + 52 = 67

So a deodorant cost the company or the manufacture roughly approximately Rs. 67. ** The above cost is for 150 ml deodorant. The table below provides the margins for various tiers present in AXE, DOVE and Sure. Brand Distrib utor buying price 105 109 90 Distribut Wholesale Wholesale Retailer Retailer MRP or Margin r Buying r Margin Buying Margin Price Price 1.50% 1.50% 1.50% 1.50% 106.7 111 92 44 3% 3% 2.5% 3% 110 115 95 45 22.70% 135 39% 160 61% 145 30% 65 Quantit y

AXE DOVE SURE (deo) SURE 43 (Roll on)

150ml 150 ml 150ml 40ml

As the selling price for Unilever will be the buying price for carrying and forwarding agents and subsequently the selling price for CnF agents will be the buying price for distributors. The profit margins for CnF agents are around 1-2% (average around 1.5%). Thus, the CnF buying price will be: Brand CnF buying CnF Price Margin 103 107 88 42 1.5% 1.5% 1.5% 1.5% Distributor buying price 105 109 90 43

AXE DOVE SURE (deo) SURE (Roll on)

Assuming the material cost for a deodorant to be Rs. 67 as provided in the table before. The difference between material cost of the product and its selling price to CnF are given below:This difference could arise because of packaging, promotion, salaries and miscellaneous expenses.

On the basis of brands the price difference could be because of:Brand AXE Material Cost 67 CnF buying Difference Reason for the difference Price Heavy promotion on T.V, Internet, print 103.45 36.45 media. Good Distribution, available from Kiryana shops to malls New fragrances(research), provide consumers with new products intermittently Brand Image Not too high as they ensure that the product is available for general mass Innovative packaging
107.39 40.39 Good promotion on television and internet for product as well as brand A little high margins to have a high class perception Nice Distribution Value added features like skin whitening, 24hr protection Good, sophisticated packaging Low margins to ensure mass buying for lower middle class/middle class consumers Simple promotion with celebs Akshay Kumar and Asin. Not emphasis on increasing the brand image as for DOVE or AXE Simple packaging







Each of these products has its different attributes associated. The price difference arises because of the differences in perception, brand equity, packaging, promotions etc or in other terms value and quality and are priced accordingly. AXE Pricing The brand has excellent brand equity and good sales. The prices of AXE deodorant would be decreased, the costs would be covered up through lower promotions. The selling price would decrease by Rs.10 and the profit margins for distributors, retailers will be kept the same. AXE has had high budgets in the past; we plan to utilize the benefits of these efforts. Television advertising would be dropped to very low levels. Seasonal advertisements would only be released. Print media advertising will be increased. The leaflets distributed with Cards for you campaigns will be distributed in colleges and retail stores.

New Star edition products will be launched in the market. The Star edition products will comprise of the major famous, loved, high sales fragrances.

The sales revenue will change with decrease in prices. The change in sales can be calculated by Price elasticity of demand Assumption: - The Demand elasticity for deodorants is 0.015 Source: - Book Market Response model by Dominique M. Hansenns The price of AXE deodorant decreases by Rs 10. The % change is -10/135*100 = -7.41.

The sales for deodorants for 2010 were 1054 crores [Euro monitor]. AXE market share= 25%. AXE sales= 263.5 crores. Cost of each product = Rs. 135 Units sold= 263.5 crores/135= 1,95,18,519(approximately) According to forecast estimated in excel with growth rate of 25%, sales of deodorants= 1209 crores AXE market share 25% (if no new initiatives had been taken sales by AXE and competitors) sales would be =302.25 crores Unit sales = 302.25 crores/135= 2,23,88,889(approximately) As the prices have changed by Rs 10, the sales would instead be:0.015=( change in demand/2,23,88,889)/(-7.41) Change in demand= 2488525 units Thus, 2012 sales = 2,23,88,889+2488525=2,48,77,414 units

** alisha add points

DOVE Pricing:The brand and value added benefits like whitening, Vitamins E and F, 24 hr protection with good fragrance make the product a little high priced. Dove is priced same to Nivea which offers similar value additions. In fact some of the variants of Nivea are priced at Rs. 179 which may provide Dove with better sales as it provides similar benefits as Nivea at a lower price. The prices of Dove deodorant will kept same as this year and through promotions, we will try to achieve better sales.

SURE Pricing:Sure has been delivering long lasting protection against sweat and odour thanks to 25 years of research by Sure scientists. For the promotion of Sure, HUL has roped in the actress Asin. The brand is currently running the launch campaign across South India featuring the celebrity. With Sure, HUL is making sure that it does not leave any part of the category to the competitors as it is priced in the major category/segment of branded deodorants. The prices will be kept constant and with increase in promotion, high sales targets will be achieved. However, the roll on is priced at Rs 65 for 40 ml and Rs 40 for 25ml, which is cheapest in the market for roll ons.


The marketing channel is a set of interdependent organization that help make a product or service available for use or consumption by the consumer or business user. HUL is today engaged in building and managing a continuously evolving value delivery network. HUL deodorants are distributed through the common HUL distribution network. Channel Members and Channel structure for HUL:


C&F Agent


Redistribution Stockist




Margins mentioned above are for the deodorant category Number of channel level: 4 S. No 1 Channel Member C&F Agents Role performed Acts as buffer stock point to ensure that the stock out do not take place. Improved services to RS

Redistribution Stockist

Financing stocks Providing warehousing facilities Providing manpower Providing service to retailers Implementing promotional activities Extending indirect coverage Screening for transit damage Reporting sales, stock and demand data

This HUL distribution channel includes the physical flow of products, the flow of ownership, the payment flow, the information flow and promotion flow. To penetrate the rural market, HUL had a unique four tier distribution system. Markets were segmented based on their accessibility and business potential.

Direct coverage: HUL appointed a common stockist to service all outlets within a town and sell a limited selection of the brand portfolio. Deodorants are majorly distributed through this channel. Indirect Coverage: HUL targeted retailers in accessible villages close to larger urban markets. Retail stockists were assigned a permanent route to ensure that all accessible villages in the vicinity were served at least once a fortnight. Deodorants are also distributed through this type of coverage. Streamline: Streamline leveraged the rural wholesale channel to reach markets inaccessible by road. Star Sellers were appointed among wholesalers in a particular village. Star Sellers would purchase stock from a local distributor and then distribute stock to retailers in smaller villages using local means of transport

Project Shakthi: Project Shakti targeted the very small villages (<2,000) and tapped into preexisting womens self help groups (SHG). Underprivileged rural women were invited to become direct-to-consumer sales distributors for HUL products. Deodorants are not distributed through this channel. Sales force management: Sales force management includes maintaining favourable trade relations, providing innovative incentives to retailer and organising demand generation activities among other activities. HUL sales force has two major objectives of chasing the targets and reporting on a daily basis. Account information is maintained on palmtop given by HUL. In HUL, area sales were managed by Area sales manager, Activation manager and territory sales in-charge. These people were working on behalf of HUL and were a link between the stockist and the company. The lead time of delivery from the company is 1 day. The customer relationship software of HUL is UNIFY which transmits the real time data to the server and gives the valuable marketing insight.

Channel Strategy for 2012-2013

HUL is restructuring its distribution strategy to bring in cost efficiency with Enter: the go-tomarket programme. This has been tried in Mumbai, Chennai and couple of other metros . We would recommend HUL plan to implement this strategy in other cities with population above eight lakhs. This go-to-market programme is basically unification of its distributors for different product portfolios (presently it is different distributor for different product portfolios).The products across the division would be fed to the retailers through unified distributor. This would reduce the enormous logistics effort and cost faced by the distributor in their operations. HUL right now has channel financing facility in collaboration with ICICI and standard chartered bank. Next year, we would recommend HUL to include the electronic real time gross settlement mode of money transfer for future transactions, bringing down working capital expenditure. We plan to achieve our objective of increased volumes by increasing the production capacities, reducing the inventory levels and improving the percentage of orders satisfied from the stock at hand. We plan to increase the customer order fill rate (a measure of an inventorys ability to meet demand) and the speed to market.

From the above data it is quite clear that we would be incurring maximum demand from Maharashtra followed by Uttar Pradesh, Tamil Nadu and Gujarat. 13.6% of total deodorant demand is from Maharashtra and we would plan our stocking accordingly so as to avoid stock out situation. We also anticipate an increase in demand due to our promotional and pricing strategies for the next year. One of our channel objectives is to increase our coverage by 15%

We recommend HUL to implement the Go to market strategy in the top 100 cities so that they increase the efficiency in their distribution infrastructure to handle the surge in demand due to general expansion of market or our promotional/pricing strategies.

Sure being an antiperspirant could be promoted during the month of March so that the product would reach its peak sales in the Indian summers. The average maximum temperatures in month of April, May and June are given below City Agra Ahmedabad Chandigarh Chennai Hyderabad Jaipur Mumbai Nagpur New Delhi Patna April 38 40 34 35 38 37 32 40 36 37 May 42 42 38 39 39 41 33 43 40 39 June 40 39 39 38 45 36 31 38 37 38

Total advertising budget last year was 113 crores. From 2007 2010 HUL increased its advertising budget by 30%. This was due to the fact that HUL was losing market share. In order to build its brand, HUL increased its promotional budget. Now, with the market share back in HULs hand we propose reducing advertising cost by 13% thus bringing it back to what it was earlier. Thus advertising budget for 2012-2013 would be 100 crores. But, with the advent of newer and cheaper ways to advertise such as facebook, google ads and twitter there will not be any impact on sales, rather the sales are poised to increase with the reduction in costs. Growth in TV viewership in India for age group 15-25 has more or less become stagnant but internet users are increasing at a rate of 56% thus providing a huge arena for advertisers to invest in.

Promotional Budget Advertising medium Budget Amount

For All star Axe Launch- Half page advertisements (600 sq cm) 8.5 Lakhs x 10 = 85 Lakhs in 10 daily newspaper Sure half page advertisement to increase its brand awareness Dove Womens day half page advertisement 85 Lakhs 85 Lakhs

40 Quarter page Newspaper advertisements (300 sq cm) in 10 16 crores daily (maximum frequency during summers) Maintenance and new additions on website, facebook pages Advertisements on youtube/facebook/google/twitter 2 months extensive TV advertisement during IPL season 2 crores 7 crores 1 ad (20 second) will cost 0.1 crore For 40 day duration = 4 crores Advertisements will repeat 5 times = 20 crores

Other TV advertisements (1250 advertisments in a year.03 crore/ 37.5 crores 20 second advertisement taken at an avg cost) Advertisments in retail outlets/kiosks/billboards 15 crores

Axe Promotion Strategy All Star Campaign

Advertising Launch of Axe all star a set of five best selling deodorants will be done across all national daily newspapers and television channels on April 4th with the launch of IPL-5. Approximately 10 million viewers will be watching the first match of IPL. The launch with IPL would benefit Axe as the target market for Axe would be watching the matches on television and reading newspapers The campaign will include 1. Advertisements on channels such as Set Max ( Official broadcaster of IPL) , MTV, Channel V to create an interest in target customer 2. Half page advertisements on daily newspapers such as Times of India(Delhi/Bombay times), Hindustan Times(HT City), Indian Express 3. A buzz to be created online on websites such as youtube.com and facebook.com. Axe advertisement would be uploaded on Axe youtube channel. The advertisement of the channel would be shown on homepage of youtube for Indian users. 4. Facebook page for Axe will be updated and users could learn more about the product and about all the All star fragrances. 5. Viral Marketing with the new ads on social networking sites like facebook and twitter and youtube. 6. Special kiosks would be set up in shopping malls where users could test and buy the products. New advertisement :

Dove Promotion Strategy

Dove is committed to help all women realise their personal beauty potential by creating products that deliver real care. Dove believes that beauty should be for everyone, because when you look and feel your best, you feel better about yourself. Current Strategy - Dove Ultimate Go Sleeveless claims its formula of specialized moisturizers will give women better-looking underarms in five days. It was inspired by Unilever PLC research that found 93% of women consider their armpits unattractive.

Create a promotion strategy for Dove, where women within age 18-35 would submit their photographs with the answer to question Why they love dove? on their facebook page. The winner would be the next face of dove advertisement telling her story, why she loves dove. Campaign Name : I am Gorgeous , I use Dove The strategy of HUL would be to increase brand awareness of Dove deodorant within the target segment. India has over 22 million facebook users with 75% of these users within 18-35 years bracket.

Campaign 1. Print ads in newspapers pullouts such as Times Life! , HT City and all supplements of the newspapers informing readers about the new campaign. 2. Radio ads in regions such as NCR, Mumbai to inform women about the campaign. 3. Create a Dove India facebook page to interact with consumers and start the The face of Dove campaign and post regular updates of the product. 4. Use the Real Beauty campaign on youtube , use common faces from the campaign and spread the word of why they love dove, which is most cost effective as compared to tv advertising. Also the time duration for the advertisement on online medium is more as compared to tv. 5. Link the facebook page with website directly. 6. Special kiosks would be set up in shopping malls where users could test and buy the products. 7. Create awareness of antiperspirants , many consumers feel that this constant use of anti perspirants causes breast cancer and other side effects. Also a lot of consumers have a worry whether anti-perspirants are good for health because it stops the formation of sweat which is essential for the regulation of body temperatures. Many consumers are shying away from the use of anti-perspirant because of this worry. So creating awareness is required through interaction on various mediums.

Sure Promotion Strategy

For the promotion of Sure, HUL has roped in the actress Asin and actor Akshay Kumar. The brand is currently running the launch campaign across South India featuring the celebrity. Since the antiperspirant category is new to the Indian market, the brand has tried to educate the customer about the product category in the launch phase. The launch ad essentially talks about what the product is and the comparison between ordinary deo spray and antiperspirant.

Sure could be promoted through kiosks in the above cities in month of April, May and June in high density areas such as Malls, Markets, and hangout joints for youth where people are not too busy. Kiosks would attract crowds by organizing games and winners would be given a free sample to be tried. One of the biggest issues in India against antiperspirant is that people have a perception that antiperspirants cause cancer and also that as they stop sweating, this could affect the normal body temperature. We would launch special print ads as well as television ads to educate the customers about the myths.

Customers could also be educated through agents at kiosks who would apply the antiperspirant on themselves to make sure the customers are not maintaining the wrong impressions about the products.

Evaluation of Strategy
If price decrease not done 2012-13 deodorant sales Selling Price for each unit 2,23,88,889 Rs. 135 Units

2012-13 deodorant sales Selling Price for each unit

2,48,77,414 Rs. 125

Units Lower selling price due to lower promotional costs

Earlier Profits

Rs. 81,60,75,004

Profit due to high sales

Rs. 90,67,81,740

Extra profits

Rs. 9,07,06,736

Total Advertising budget Advertising Budget for DOVE Profit Margin for 1 product

100 28.26467394 25.24%

Crore Crore

Advertising Budget for Sure Profit Margin for 1 product

14.13233697 15.48%


AXE Profit and Loss Net Sales Cost of Goods Sold Gross Margin Marketing Expenses Net Profit before Tax DOVE Profit and Loss Net Sales Cost of Goods Sold Gross Margin Marketing Expenses Net Profit before Tax Sure Profit and Loss Net Sales Cost of Goods Sold Gross Margin Marketing Expenses Net Profit before Tax

In Rs. 3,10,96,76,750 1,66,67,86,738 1,44,28,90,012 70,66,16,848 73,62,73,164 1,08,03,50,000 59,15,59,147 48,87,90,853 28,26,46,739 20,61,44,114 54,01,75,000 34,85,28,627 19,16,46,373 14,13,23,370 5,03,23,004

Tools to measure marketing effort

Brand development Index Unilever Unilever global sales 1 Euro Global sales in Rupees 44,62,00,00,000.00 Rs. 69.31 Rs. 30,92,52,29,60,000 billion

Sales in India BDI formula BDI for Unilever

Rs. 1,99,87,14,00,000 %of brand sales/%of population 0.377011429

Return on marketing Investment Total Profit realized due to deodorants Marketing Investment ROMI Rs. 90,67,81,740.30 Rs. 1,00,00,00,000.00 0.90678174

1. http://www.hul.co.in/ 2. http://www.unilever.com/

3. http://www.hul.co.in/Images/HUL_Annual%20Report_%202010-11_tcm114-268010_tcm114268010.pdf 4. http://www.hul.co.in/Images/AnnualReport0910_tcm114-225889.pdf 5. http://www.hul.co.in/Images/Annual_Report_2008_tcm114-222286.pdf 6. http://www.hul.co.in/Images/AnnualReport_tcm114-136721.pdf 7. Principles of Marketing, 13th Edition, Philip Kotler 8. http://www.business-standard.com/india/news/kitmen%5Cs-deodorant-market-in-india/443714/ 9. http://www.rankopedia.com/Best-Lynx-(Axe)-Deodorant/Step1/15049/.htm 10. http://www.ens-newswire.com/ens/feb2010/2010-02-12-091.html 11. http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=354c119a-cb1b-455e-80dc6e3cbd44648e%40sessionmgr14&vid=2&hid=24 12. http://www.sprintlazio.it/downloads/studi-paese/india-2011-general-economic-overview/view 13. http://www.thehindubusinessline.com/features/brandline/article2029401.ece 14. http://retail.franchiseindia.com/magazine/2011/july/Trend-setters-in-deodorant_47-1-4/ 15. http://www.imagesbusinessofbeauty.com/News.aspx?Id=99&topic=1 16. http://fmcgmarketers.blogspot.com/2008/07/fmcg-growth-drivers-and-category-trends.html 17. http://www.frost.com/prod/servlet/market-insight-top.pag?docid=10732107 18. http://www.business-standard.com/india/news/can-axe-retain-its-effect/415654/ 19. http://www.valuequity.com/articles.php?id=13/Hindustan-Unilever-(HUL):-Investmentprospects 20. http://www.hindustantimes.com/images/HTPopups/181010/18_10_10_garnier.htm 21. http://marketingteacher.com/lesson-store/lesson-three-levels-of-a-product.html 22. http://facta.junis.ni.ac.rs/eao/eao97/eao97-03.pdf 23. http://www.releasemyad.com/rates_offer.php?news=TimesofIndia-Classifieds-AdvertisementRate-Card

24. http://www.theindiastreet.com/2008/11/the-battle-of-the-deodorants.html