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Team Name Winter is Coming | Campus Name NMIMS Mumbai


Mitesh

Tanvi

Apoorv

Aashish

Agenda

Industry Profile

Primary Research
Current Franchise
Promotions

Product Extension
Category Extension

Industry Profile

Primary Research

Current Franchise

Promotions

Product Extension Category Extension


1

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

Deodorant

2014

2015

2016

2017

2113.3

2407.1

2704.6

2990.4

Projected market size for deodorants (crores)


2014-17 CAGR
Deodrant Sprays

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%

Market Share by Volume (%)


WILDSTONE

6.9

AXE

6.9

ENGAGE

14.7

Expected growth rate for deodorants

8.1
12.5

FOGG

Year

2014

2015

2016

2017

Premium(%)

1.8

1.9

1.9

1.9

Mass(%)

98.2

98.1

98.1

98.1

0
Volume

2
Fogg
12.5

6
Engage
8.1

10
Axe
6.9

12
WildStone
6.9

14

Industry Profile

Primary Research

Current Franchise

Promotions

Product Extension Category Extension

Research Methodology & Key Findings


Primary Research

Secondary 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)
4%

Men

6%

88

Euromonitor reports for Personal care, Lip Care, Fragrances in India, UK , US


and China.
Newspaper articles
Competitor websites and social media

Men

Brand Loyal

Kirana Store
Set of Brands

Chemists

31%
Love to
Experiment

59%

27

25

Purchase
Points(in %)

Women

Kirana Store

Set of Brands

33%

Buy Anything

Purchase Behaviour

Axe

100%

Nivea

100%

2-4 days in a
week

Dove

100%

5 or more days

Fogg

88%

Engage

70%

78
70

Love to
Experiment

Awareness

3%
Once a week
15%

11%

71%

Do not use a
deodorant

Frequency of Use

Women

Brand Loyal

52%

Online
Cosmetic Stores

12

Purchase Behaviour

15%

Deodorants

Supermarkets

37

Buy Anything

0%

31

Male

Chemists
Supermarkets
Online

21 21

20

Cosmetic Stores

Purchase Points
(in %)

Female

30

Willingness to Carry(%)

Reasons for not using a deodorant:


Harmful to skin
Allergic
Contain Carcinogens
Do not last long
Prefer perfumes to deodorant

Industry Profile

Primary Research

Current Franchise

Promotions

Product Extension Category Extension

Measuring Current Brand Equity

Benchmarking

AXE

FOGG

Value for
money

5
4
3
2
1
0

Long Lasting

Helpful in
attracting

ENGAGE

Women

Men
NIVEA

DOVE

ENGAGE

Value for money


5
4
3
Long Lasting
Variety
2
1
0
Helpful in
attracting the
Packaging
opposite sex

Variety

Packaging

Fragrance

Fragrance

BRAND PERCEPTION
Parameters:

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 fragrance
Thin line of differences in the deodorant category for female
deodorants
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

WOMEN

MEN

73%

70%
40%

34%
13%

10%

2%

4%

Purchase Funnel

Awa reness
Cons ideration
Purcha se
Loya l 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

Industry Profile

Primary Research

Current Franchise

Promotions

Product Extension Category Extension

Absence of
Promoters in outlets
in 8 out of the 10
outlets visited

Brands like Nivea &


Yardley had
promoters

Recommendations

Visibility Matrix

Product placement
in lower racks
4th or the 5th shelf
from the top

3.72

3.67

Fogg

2.33

Nivea
Dove

2
1
0
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
together

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

Designated shelf
space, posters & shelfstrips by Old Spice in
pharmacies
Imported Deodorants
displayed due to
higher margins

No Eye Level Visibility

Axe

2.83

Old-spice, Nivea & Axe


(High Aisle visibility)

Testers available for


competing brands
(Yardley, Nivea, Axe)

Engage

4.39

Higher Secondary
visibility for other
brands

Absence of Testers and


the entire line at
Supermarkets

General Trade

Modern Trade

Market Observations & Visibility

Secondary Visibility of Competitor


Brands

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

Higher user generated


content on the website
with the help of a
Twitter\Facebook feed.
Enabling them to rate
and review the
deodorants

Fragrance Pyramid
Top
Note

Heart
Note

Perceived
immediately on
application of a
perfume

Act to mask the


often unpleasant
initial impression

Increases engagement

Drives more traffic to


website

Base Note

Appears close to the


departure of the
middle notes.

Gamification/Appification of Facebook page


Deodorant Recommender
Asking fun questions
A Facebook
about ones partner &
game to get
recommending a
more user
deodorant based on
engagement
replies

Playful Chemistry

Democratization of Content

Campaign by
Degree USA

Industry Profile

Primary Research

Current Franchise

Promotions

Product Extension Category Extension


6

Social Media Campaign

Fact: Fake and imported


deodorant market is 400cr

1 Engage with the


consumers and educate
them regarding the real
and fake deodorants
through social media

Encourage them to
protect your partner
& make dents on the
used bottles !

Current Status

Strategy

Opportunity

Get Your Selfie Printed Campaign


Currently Microsite for youmeselfie has a
People love
little over 1500 uploads on the Micro-site
getting clicked
which can be expanded through integration
and like sharing
with the offline world.
it on the social
This ensures more visibility and higher
media
online traction

Online
Campaign

Integration
with offline
world

Increased
traction
online +
more
visibility

Incentivizing the user for sharing is necessary

Methodology

Cheap, fake deodorants


are infiltrating the
market that causes skin
infections and diseases.

Solution

Existing Problem

Protect Your Partner | Break the Bottle Campaign

2
Installation Photo
Instant rewards to the
booths at high traffic
Target audience
areas and get their
-Higher sharing and
selfies printed
more mentions
#youmeengage
4
Works on the
principle of Geo-tags
and Hash-Tags

Industry Profile

Primary Research

Current Franchise

Promotions

Product Extension Category Extension


7

Enhance Visibility
POS Material
Such as posters, stickers
& shelf strips.
8 out of 30 stores that
we visited had
competitor POS material

Avoid
Clutter!
Ensure
Shelf Space
Visibility

Competitor
Benchmarking

General Trade Campaign

Entice them!
To capture the
users attention
while shopping by
sending out an
Engage Fragrance

Automatic
Air Fresheners

Opportunity

Modern Trade Campaign


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

Cost
2500*Shelf
Space* No.
of Modern
Trade
Outlets

Packaging Campaign
Feature on Your Favourite Deodorant Campaign
The 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 Description
As 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.

Industry Profile

Primary Research

Current Franchise

Promotions

Product Extension Category Extension


8

Insights
Urban middle class
segment becomes more
demanding..
Results of Primary Survey

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

Percentage of users that seek Additional Benefits


Whitening

Seek
Additional
Benefits

25%
75%

Smaller
Colour Protection Pack
Size
Alcohol
Free

49%

Alcohol Free

45%

38%

Colour Protection

Don't Seek
Additional
Benefits

50%

38%

Whitening

40%

30%

Smaller Pack Size

31%

0%

Red- Men, Blue - Women

10%

20%

30%

40%

50%

Competitor Benchmarking

Freshness

48 hours protection,
whitening & alcohol
free deodorants

48 hours protection,
whitening & alcohol
free deodorants

Non English Inscriptions


gives the feeling of
imported product

Anti-Bacterial

Dermatological
Tested

Industry Profile

Primary Research

Current Franchise

Promotions

Product Extension Category Extension

Product Extension vis--vis Competitors

Benefit

Consumer Behaviour

Reason to Enter

Primary Survey

Point of Difference

Competitors

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. Engages
playful chemistry
resolves it

Dove (HUL)
Nivea (Beiersdorf)

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 Stone
Sure (HUL)

Industry Profile

Current Franchise

Promotions

Product Extension Category Extension


10

Product

Lip Balm

Market Size
Growth Rate
(INR mn)

3000

25.00%

1. Vaseline (HUL)
2. Nivea (Beiersdorf)
3. Maybelline (LOreal)

1.General purpose
1. Fresh Ones (Tainwala Personal
wipes
Care)
2.Facial Cleansing
2. Kara (Grasim Industries)
wipes

Deodorant
Wipes

225.6

23.80%

Instant Breath
Freshener
Spray

1600*

28%

Body Spray

Shower Gel

Air Freshener
* Estimated

775

1426

2700

Competitors

Cannibalization
Competitor Positioning Point of Differentiation
of exiting
products of ITC

34.80%

1.Medical Benefits
2.Flavored Lip Balms

1.Complementary flavors
for couples
2.Kissable Lips

None

1.Deodorant wipes for


instant freshness and
confidence

None

1. Spraymintt ( Midas Care)

1. Be Kiss ready in 1
second

1. Different flavours for


men & women

None

1.Fogg (Vini Cosmetic)


2.Body Shop (LOreal)
3.Fabindia

1.Last Longer
2.More perfume per
spray

1.Longer effectiveness
2. More perfume in a
single spray, in addition
to playful chemistry

Medium

1. Alternate to soap

None, cannot leverage on


the playful chemistry
image

High

1.Love is in the air


2. Change the air

None, though this is


related to fragrances, but
shall lead to brand
dilution

None

20%

1.Axe (HUL)
2.Nivea ( Beiersdorf)
3.Adidas

30%

1.Aer (Godrej)
2.Ambi Pur (P&G)
3.Park Avenue ( Raymond)

Relevance

Industry Profile

Primary Research

Current Franchise

Lip Balm Market Share

Promotions

Product Extension Category Extension


11

Deodorant Wipes Market Share

Company

Market Share

Average Price

Positioning

Company

Market Share

Average Price

Positioning

Vaseline

18%

150

Heal Chapped Lips

Tainwala

37.7%

38

General Purpose Wipes

Nivea

19%

136

Shiny Lips with fruity flavors

Grasim

6.9%

60

General Purpose Wipes

Maybelline

13%

134

Moisturized and sun protection

Pristine Care

6.1%

65

General Purpose Wipes

Targeted at couples engaging in playful chemistry, positioned as kissable lips

Easy to carry Deodorant Wipes for Instant freshness and Confidence

Different flavor for men & women e.g. Peach & Cream ; Fire & Ice

Different scented wipes for men & women which have secondary benefits
like anti bacteria , alcohol free, moisturizing
Estimated Market Potential in Wipes Segment (CAGR 23.8%)

Estimated Market Potential in Lip Balm Category( CAGR 25%)


Year
2014
2015
2016
2017
2018

Market Size
3000.00
3750.00
4687.50
5859.38
7324.22

Conservative(5%)
150.00
187.50
234.38
292.97
366.21

Optimistic (16%)
480.00
600.00
750.00
937.50
1171.88

Mouth Freshener Market Share

Year

Market Size

Conservative (5%)

Optimistic (16.13%)

2014
2015
2016
2017
2018

225.60
279.29
345.76
428.06
529.93

11.28
13.96
17.29
21.40
26.50

36.39
45.05
55.77
69.05
85.48

Estimated Market Potential in Instant Breath Freshener (CAGR 28%)

Company

Market Share

Average Price

Positioning

Midas Care

100%

69

Instant Kiss Ready

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

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

QnA

Questions

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