INDIAN INSTITUTE OF MANAGEMENT INDORE 2008-09 PGP-I Marketing of FMCG Instructor: Prof K.S.

Ramesh

TERM PROJECT
Market Entry Strategy for Mens Grooming Category

Report prepared by:

Section F, Group 6
ADITYA JAIN ANUP MAHESHWARI GIRISH ANANTNAG BASRITHAYA E V VASUDEVAN SAURABH SENGUPTA APURVA SOUMYA ABHINAV CHAUDHRY EDKE KAPIL VINAYAK BHUPENDRA JHA

24th December 2009

TABLE OF CONTENTS
Background ................................................................................................................................................................................ 4 OBJECTIVE .................................................................................................................................................................................. 4 METHODOLOGY FOR UNDERSTANDING BRAND AWARENESS AND CONSUMER INSIGHTS ................ 5 Primary sources of data .............................................................................................................................................. 5 Secondary sources of data ......................................................................................................................................... 5 Research Instrument .................................................................................................................................................... 5 SHAVING RAZORS ................................................................................................................................................................... 6 SHAVING CREAMS / FOAMS / GELS ................................................................................................................................ 8 Key consumer insights on usage and habits..................................................................................................... 11 AFTER-SHAVE LOTIONS / GELS ..................................................................................................................................... 11 Key consumer insights on usage and habits..................................................................................................... 13 HAIR STYLING GELS ............................................................................................................................................................. 13 Consumer Insights in product category: ............................................................................................................ 15 Channel Member Preferences in Various Categories of Mens Grooming Product .................................... 16 Methodology .................................................................................................................................................................. 16 Review of Product Concepts in Mens Grooming Category .................................................................................. 18 Entry Barrier Analysis ......................................................................................................................................................... 19 Market Entry Strategy and Product Concept ............................................................................................................. 20 Product............................................................................................................................................................................. 20 Concept 1 ......................................................................................................................................................................... 20 Concept 2 ......................................................................................................................................................................... 20 Price .................................................................................................................................................................................. 20 Physical Distribution .................................................................................................................................................. 21 Promotion and Copy strategy ................................................................................................................................. 21 Branding Strategy ........................................................................................................................................................ 21 Future Strategy ....................................................................................................................................................................... 21 Line Extensions ............................................................................................................................................................ 21 Brand Extensions ......................................................................................................................................................... 22 New Brand Categories ............................................................................................................................................... 22 ANNEXURE-I: SURVEY QUESTIONNAIRE.................................................................................................................... 23 REFERENCES ........................................................................................................................................................................... 25

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BACKGROUND
Traditionally the grooming industry has been about women and for women. Lately, the male grooming sector in India has been on a climb. There are many reasons for this revolutionary change. Firstly, incomes are rising and the Indian male has more disposable income in his pocket than ever before. Secondly, with the advent of MTV and other western influences have had an impact on the country as a whole. Thirdly, these can be termed as new modes of personality building. Fourthly, there has been aggressive campaigning by MNCs which has contributed to the growth of this sector and lastly, men are getting less intimidated about indulging in themselves. The male grooming sector is now identified as a large and fast growing opportunity with a market of more than Rs. 1000 Crore and is pegged to grow at a rate of 10% exponentially. In this report, we have explored the following segments of the male grooming sector: Shaving Razor, Fluid, After-shave lotion/gel Hair Styling Gel

There are currently a few players who are already in the market and have a large market share. Gillette and Dabur are examples of companies in this category. But with the market growing at a rapid pace, smaller companies are entering the market and trying to capture the niche segments. Himalaya with its herbal products would come in this category of companies. On the whole, the male grooming sector can be said to be an exiting and profitable venture, in which we can expect to see large companies such as Unilever and P&G fight it out and smaller companies trying to carve out a place for themselves.

OBJECTIVE
The objective of our research is to discover the product awareness, projected demand, needs and usage habits of male grooming products in India. The research primarily focuses on the following segments: Shaving Products viz. Razors, Shaving Creams / Gels, After-shave Lotions Hair Styling Gel

The study would help us to understand whether men in India are becoming more aware of which products they are using and whether there is a growing market for products in the male grooming category. Further, the study provides insights on the consumer needs and usage behavior various categories and provides the basis for understanding market entry potential in these categories.

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METHODOLOGY FOR CONSUMER INSIGHTS

UNDERSTANDING

BRAND

AWARENESS

AND

The methodology used to analyze of male grooming products in India was Survey Research. This method was found to be appropriate as the objective was to learn about peoples awareness and their preferences. Data was collected from two types of sources:

PRIMARY SOURCES OF DATA

The data was collected from men in the age group of 18-35 years whom were directly contacted. A majority of the participants in the survey were from IIM Indore as people are from a varied demography. Though, using the internet surveys for collection of primary data would have been a cheaper and an easier method of data collection, it would have not been possible to use aided and unaided tools to collect the data.

SECONDARY SOURCES OF DATA

The secondary sources of data were collected from the online databases or the internet which was able to provide a vast amount of data on the consumption patterns of the Indian household segment, the current market size, trends and forecast. On the current topic being researched the data was largely classified on a particular companys data with little or no data available for a particular brand.. A list of references is appended to the report.

RESEARCH INSTRUMENT
The research instrument used was a brand awareness questionnaire. The first part of the questionnaire had open-ended questions in which we used unaided techniques to determine the product awareness, heart and mind share. The second part of the questionnaire consisted of close ended questions which were used to determine the current usage patterns of the survey participants. Further, the third part of the survey had open ended question to understand the need of consumers for each category that are not fulfilled by existing brand. The brand awareness questionnaire used is given in Annexure 1.

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SHAVING RAZORS
The market for safety razors has existed in India ever since the product was introduced. Traditionally, Indian people used the ustara an instrument with a fitted blade for shaving. However, newer shaving razors ensured safety of the skin and gave a more comfortable shave. This cause the shift from the ustara to the safety razor. Our primary data shows that Gillette is undisputed leader in the razors market and the other brands have very small usage shares compared to Gillette. Around 81% of the surveyed people use Gillette razor. 7 o clock is distant second brand with 8% usage share and Wilkinson is 3rd with 3% usage share. There are many small scale local manufacturers who together have 3% usage share. The usage share are derived from consumer survey. However, Fig.2 indicates a market share of 55% for Gillette.

FIGURE 1: SHAVING RAZOR USAGE DATA, SOURCE: PRIMARY RESEARCH

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FIGURE 2: CURRENT MARKET SHARE OF SHAVING RAZOR IN INDIA (2008), SOURCE: SECONDARY DATA

The survey about brand awareness indicates that 100% of the respondents are aware of the Gillette brand. This explains the projected rise in the Gillette market share. 70% of the respondents show awareness of 7 o clock brand while 31% show awareness of Wilkinson brand. This means these brands should concentrate more on advertizing and promotion efforts so as to increase the brand awareness. The brand awareness of other manufacturers is low as they confine their operations to local markets. Shaving Razors: Brand Awareness Source: Primary Data
100% 70% 31% 21%

%respondents aware of brand name

Gillette

7 oclock

Wilkinson

Others

Wilkinson 7 oclock 4%

Others 1%

Shaving Razors: Mind Share Source: Primary Data

Gillette 93%

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Product differentiation mainly lies in Gillette razors and other razors. Wilkinsons and 7 OClock are simple blades and required a separate case (Ustara/Shaving Razor). To further understand the consumer insights, open ended questions were asked about the brand that the consumers used. Following key observations emerged: o o o o o Gillette is the best shaving razor available in India. It is also considered to provide easy and quick shave. The other brands of shaving razors are mainly used in Barber shops only. Most of the survey participants shaved 2-3 times in a week. Indicating their usage was medium. However, there were pricing issues related to Gillette brand. The Mach3 brand of Gillette is considered as costly by many respondents. Gillette has products in all the price segments, with strong in-store presence in urban markets and semi-urban markets.

TABLE 1: PRICE SEGMENTATION OF SHAVING BLADES

Economy Segment Wilkinson Gillette Presto

Value Segment Vector Plus 7 OClock

Premium Segment Sensor Excel Mach 3

SHAVING CREAMS / FOAMS / GELS

Even a few years ago, the shaving preparation market comprised only creams. The trend presently is towards more sophisticated shaving foams. This market, which comprises shaving cream, shaving foams in aerosols and cans, and gels, is witnessing a perceptible shift. Men across the country, and more so in socio-economic classification, are increasingly doing away with their shaving cream tubes, in favor of foams and gels. While shaving creams continue to account for over three-fourths of the shaving preparation market, shaving foams in aerosols and tube gels together now account for 25 per cent of this market. In other words, creams are a declining market, while foams and gels are on the upward growth path.

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FIGURE 3: MARKET SHARE OF SHAVING CREAMS

While Gillette dominates the shaving aerosols and gels market, other significant brands are Palmolive shave gel and foam from Colgate Palmolive, and Super Max. In the creams segment, significant brands include Godrej, Axe, Denim and Palmolive. These facts are evident from the primary data too, as can be observed from the current and projected market shares. Gillette with its dominant position in the gels market is threatening the market leader Colgate-Palmolive as gel and foam are expected to be the growing trend. Currently Godrej with its shaving cream and Premium shaving cream brands commands a respectable 16 per cent share, but it would be difficult for it to hold on to the same if it does not venture towards gels and foams. Park Avenue, Denim and V-John with their strong brand values catering to niche markets and presence of gel products, can well maintain their current market shares. Nivea is also expected to gain significantly from the current market trend.
FIGURE 4: PROJECTED MARKET SHARES, SECONDARY DATA

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FIGURE 5: BRAND AWARENESS SHAVING CREAM/ GEL, SOURCE: PRIMARY DATA

The brand awareness among general consumers about the available brands is high. As can be seen from the data, on an average a consumer is able to count five or more brands available in the market. This data again shows how well Gillette and Nivea are poised to gain in the future as they already have very strong brand awareness.

FIGURE 6: MIND SHARE DATA SHAVING CREAM/GEL, SOURCE: PRIMARY RESEARCH

The Mind share pie shows again the strong brand perception of Gillette and its perceived value. With over 55% of respondents wanting to buy Gillette, it overshadows every single competitor, cutting into Page | 10

even other high-end brands like V-John and Denim. Its high pricing however is the principle constraining factor, as it is not able to realize this demand into market share, with its starting range well above double the competitors price. Palmolive has capitalized on this in addition to its long presence in the Indian market to capture more minds and convert it into translatable revenues.

TABLE 2: PRODUCT PORTFOLIO OF BRANDS

Shaving Cream Godrej Colgate Palmolive Nivea Denim

Shaving Gel Gillette Park Avenue V-John Denim

Shaving Foam Gillette Colgate Palmolive Super Max

TABLE 3: PRICE SEGMENTATION

Economy Segment Godrej Colgate Palmolive Cream

Value Segment Nivea Cream Denim Cream

Premium Segment Gillette Gel/Foam Park Avenue Gel

KEY CONSUMER INSIGHTS ON USAGE AND HABITS

More consumers are moving towards the Gel and foam segment because of ease of use Some consumers still believe that cream gives smoother and closer shave than gel/foam Smoothness of skin is the basic differentiation for premium products Aloe Vera, menthol etc. are some ingredients that are used as reason to believe (RTB) for most of gel and foams to prevent skin damage and give smooth and supple skin condition after shave Consumers feel that foam is not a good solution for hard bristles. Also, the positioning of the products is on ease of use and not on usage conditions (Ex: Hard Bristles, Soft Bristles etc)

AFTER-SHAVE LOTIONS / GELS

After-shave lotions are relatively lesser known category than shaving creams in India. With rapid changes in lifestyle and values more and more people are using this product. Old Spice entered the market in seventies and has been successful in being able to create a strong presence. Currently it is the market leader with 34% share followed by Gillette trailing at 20%. Other significant players include Park Avenue, Nivea and Denim.

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FIGURE 7: MARKET SHARE DATA, SOURCE: PRIMARY RESEARCH

This is the main potential market for the players looking for expansion. Market share and projections indicate that all major players are poised to grow significantly without eating into each others share. This is mainly attributed to the diminishing share of local brands and increasing usage among the consumers of aftershave. The market is also experiencing significant changes in the form of various value additions being made to the products in the form of perfumes, moisturizers and antiseptic qualities.

Shaving Gel / Cream: Brand Awareness Source: Primary Data

% respondents aware of brand

98%
87%

94% 78% 67%

24%

Old Spice

Gillette

Gillette has been able to capitalize on its brand value and presence in shaving market to gain wide acknowledgement of its presence. Old spice, Gillette and Denim are the most popularly known brands in the space. Others have recognition due to their use in barber shops.

Park Avenue

Others

Denim

Nivea

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The mind share data indicates the high presence of Gillette because of other brands of Gillette in the mens grooming category. Old spice takes the next spot as it only operates in after shave and in deodorants, but is more known for after shave lotions.
FIGURE 8: MIND SHARE DATA, SOURCE: PRIMARY RESEARCH

TABLE 4: PRICE SEGMENTATION

Economy Segment Other local brands

Value Segment Nivea Denim

Premium Segment Old Spice Gillette Park Avenue

KEY CONSUMER INSIGHTS ON USAGE AND HABITS

Traditionally these products were also used as antiseptic on minor cuts and injuries Consumer base of this product category is expanding New spray type packaging of products are appearing in the market Fragrance plays a very important role in selection of product. Especially in the second moment of truth (SMOT). Fragrance is also an important differentiating characteristic. Consumers perceive freshness as a basic attribute of the product Price is another factor that affects the purchase decision of consumers It is one of the most fragmented categories in mens grooming industry because of presence of large number of products and brands, especially imported brands like Lomani, CK etc.

HAIR STYLING GELS

Hair styling gels are the new rage amongst the age group selected for this study. The primary reason is that it boosts confidence of men as it gives their hair the look that they always wanted and the fact that hair requires less maintenance. Hair gel market segment is at a primary stage and not many local brands Page | 13

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. Currently, the market for styling gels and creams is relatively untapped in India. The first-mover in this segment was Sara Lee TTK which introduced BRYLCREEM. Secondary data shows that BRYLCREEM started with almost 100% market share 12 years ago inspite of local competition. Currently, BRYLCREEMs market share stands at 78% with Paras Pharmaceuticalss SET WET and coming a close second at 21%. Recently, Marico launched PARACHUTE AFTER SHOWER which is eating into the market share of both BRYLCREEM and SET WET. This segment is currently valued at Rs 150 Crore is poised to grow at 15% annually for the next 5 years.
FIGURE 9: MARKET SHARE DATA 2007

Primary data indicates a similar trend (See Figure Below). However, when respondents were asked which brands they would prefer to buy during their next visit to the market, their preferences shifted away from BRYLCREEM and SET WET towards Garnier and parachute. This indicates that there is good market potential for SET WET in the future. Further, there are few new brands such as Parachute and Ganier Fructis that are also gaining share of minds of consumers indicated by next purchase share data.
FIGURE 10: NEXT PURCHASE USAGE DATA, SOURCE: PRIMARY RESOURCE

Others (Jolan) 4% Parachute 19%

Set Wet 22%

Garnier Fructis 21%

Brylcream 34%

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As per the projected market share, current share and growth rate obtained from secondary sources, the forecasted demand for the brands in the next financial year are as follows: BRYLCREEM INR 125 Crore; SET WET INR 50 Crore

% respondents aware of brand

Hair Styling Gel: Brand Awareness Source: Primary Data

99% 79%

4% Brylcreem Set Wet Others

Respondents were asked about the brands that came to their mind upon hearing the words hair gel. Brand Awareness was inferred from their responses as % of respondents . Almost all respondents were able to identify BRYLCREEM and majority could identify SET WET. This indicates that contrary to popular perception, the SET WET brand is gaining popularity and is bound to give tough competition to BRYLCREEM. However, as can be inferred from the mind share figures, BRYLCREEM is still the brand that people aspire for but SET WET is a brand that consumers would prefer to buy. One possible reason for this could be that BRYLCREEM may not be as accessible to the consumers as SET WET and may be priced higher. Also, SET WET may be gaining popularity because of its innovative and attractive packaging.

CONSUMER INSIGHTS IN PRODUCT CATEGORY:

The main reason for not using hair gels is the consumer perception that it causes hair dryness and damage, resulting in hair loss Garnier Fructis is gaining mind share as it is perceived to be natural product In the beginning hair gel was used for strong hold and styling, now it is also used for nourishment as number of products such as Parachute, Brylcreem and Garnier Fructis provide benefits of nourishment Even now the primary use of hair gel remains styling only. Further, the consumers of hair gel also purchase hair oil for nourishment. High growth in this category makes it a good market to enter into for EPC. Page | 15

CHANNEL MEMBER PREFERENCES IN VARIOUS CA TEGORIES OF MENS GROOMING PRODUCT

METHODOLOGY
The methodology for obtaining the brand preference, issues, sales and in-store presence of various brand was one on one interviews with the channel members. The team posed open ended questions such as: Who supplies the brand to you? Are you satisfied with the brand sales and service? What is the cycle time of the brand? Does the manufacturer/stockist follow push strategy to sell products to you?

Finally, the results of the interview were collated to present a overall picture of each category from the view point of the various channel members Category Shaving Razor Retailer Gillette is an undisputed leader in the shaving razor market and hence most of the retailers stock it. However other brands such as 7 O Clock and Wilkinson are not stocked by all the retailers and local brands are stocked only by retailers in that area. Wholesaler Wholesalers are mainly interested in high volume products. Hence, Gillette is stocked by all the wholesalers. Among Gillette, they mainly prefer common brands like presto and vector plus, while premium products like sensor excel and mach3 are not much common to stock for wholesalers as they are low volume products. Gillette, Colgate and Godrej are brands that are stocked by the wholesalers because of the high volume of purchase. The premium brand such as Park Stockist P&G does not use stockists and hence Gillette does not have stockists. However, other companies use stockists. However, these stockists are not happy because the razors of other companies dont sell much.

Shaving Gel/Foam

Gillette and Colgate Palmolive have more than 30 percent market shares in this category. Due to high demand pull, they are stocked by almost all retailers.

P&G does not use stockists and hence Gillette does not have stockists. However, other companies such as Colgate Palmolive, Godrej etc. use Page | 16

After Shave Lotion

Park Avenue is a premium brand which is mainly stocked by large size retailers so as to cater to the needs of all sorts of customers. Old Spice and Gillette are the most popular brands in the after shave category. They are mainly stocked by large size retailers, supermarkets and urban retailers. They are comparatively found to a lesser extent with smaller retailers and rural retailers. Hair Gels are mainly being used by urban youth because of changes in the lifestyle. Hence, they are mainly stocked by urban retailers. Brylcreem is stocked by many retailers while others like Parachute, Garnier and Set Wet are not that common.

Avenue is not much stockists. These favorite among the companies have decent wholesalers for market share hence stocking. stockists get enough margins. Wholesalers mainly stock Old Spice and Gillette brands of after shave lotion. The consumption of this category has grown significantly in recent past because of changes in lifestyle of Indian youth. Hence, the wholesalers are willing to stock the after shave lotions now-a-days. Wholesalers mainly stock Brylcreem, because of its largest market share. The wholesalers are willing to stock Hair Gel because of recent upward swing in the demand due to changed lifestyle. P&G does not use stockists and hence Gillette does not have stockists. However, other companies like Old Spice and Park Avenue do use stockists.

Hair Gel

Sara Lee TTK and Marico use stockists for their products. There is a huge market potential for this category hence stockists are optimistic about future demand trends.

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REVIEW OF PRODUCT CONCEPTS IN MENS GROOMING CATEGORY

The review was carried out by critical analysis of advertisement collected from secondary sources such as www.metacafe.com and www. youtube.com.

Category: Shaving Razors Brand Accepted consumer belief (ACB) Vector Ordinary single blade razors Plus do not give a smooth shave (part 1) and multiple blade razors are difficult to clean. Vector Shaving in a hurry results in Plus cuts. (Part 2) Mach Getting a close shave is very III difficult.

Benefits Vector plus gives a smooth shave. Stuck hair in the razor is easily cleaned. Vector Plus helps give a smooth shave even in a hurry. Mach 3 gives a very close shave.

Reason to believe (RTB) It has a twin blade that gives a smooth shave. A simple switch mechanism makes it easy to clean. It has a twin blade that gives a smooth shave. Its three-blade system gives thrice the effectiveness. Special lubricating pads help in giving a smooth shave. Special platinum coating on the blades reduces their rough edges giving a smooth shave. Sensor excel blades are mounted on springs. This allows the blade to sense and adjust over every portion of your face.

7 o Clock Sensor Excel

Ordinary razor blades do not give a smooth shave. Ordinary razors give rise to cuts over skin contours.

7 O clock blades give a smooth shave. Sensor Excel glides over skin irregularities like pimples to give a smooth shave.

Most razor brands focus on two benefits of a close shave and cut free shave. The major differentiation is in the RTB that can range from platinum coating on blade to a sophisticated three-blade system. Category: Shaving Cream/Foam/ Gel Brand Accepted consumer belief Benefits Reason to believe (RTB) (ACB) Godrej shaving N/A Godrej shaving cream Godrej shaving cream cream gives a smooth shave generates large amount of and leaves great lather. This allows it to give fragrance. a closer shave. Gillette Shave Rough and dry stubble is Gillette shave gel Its special gel formula Gel really difficult to shave. softens facial hair and softens facial hair. makes it easier to shave. Page | 18

Category: After shave lotion Brand Accepted consumer belief (ACB) Old Spice N/A

Benefits Fresh masculine fragrance.

Reason to believe (RTB) N/A

Category: Hair Styling Gels Brand Accepted consumer belief (ACB) Brylcreem Styling hair needs a lot of effort and time Set-Wet Other hair products are oily and sticky Garnier Fructis Hair style does not last. Gel

Benefits Brylcreem gives stylish hair without any effort. Set wet hair gel gives non-sticky stylish hair. Garnier fructis provides hair style that endures for a long period of time.

Reason to believe (RTB) N/A N/A Its special wax crystal ingredients make hair style last.

ENTRY BARRIER ANALYSIS

Category Perceived Product Differentiati on Market Share of Top Player Growth rate of Category Number of Products In-Store Presence (Channel Strength of Top Players) Very High Very High Overall Favorability for entry

Shaving Razor Shaving Cream/Gel/Foam

Very High Medium

Very High Very High

Low Medium in Gel and Foam Low in Cream Medium

Low High in cream(large number of local brands) Low for Gel and Foam High (large number of imported brands)

Low Medium to High in Gel and Foams

After Shave Lotion

Hair Gel

LowMedium, Mostly based on Fragrance and Brand High

Medium

High

Low

High

Very High

Low

Low (only in urban)

Very High

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From the above analysis EPC should try to enter either Hair Gel market or it should enter the Shaving foam/ market

MARKET ENTRY STRATEGY AND PRODUCT CONCEPT

Based on the above analysis, the team observed that hair gel is by far the best category to make a successful market entry. The needs observed based on consumer insights in this category, than can be used to develop concepts are as follows: Hair styling should be the main focus of any new product. It is observed that consumers do not use hair gel regularly. Hair nourishment can be used to increase usage. As of now, consumers perceive hair oil as the only hair nourishment product. If hair gel is positioned as a nourishment as well as styling product, the concept will be uniquely differentiated.

PRODUCT
Based on the above understanding, the team proposes the following concepts in the hair gel category:

CONCEPT 1
ACB: I use hair gel to style my hair, but I cant use it regularly as it leaves my hair dry and rough. I have to use hair oil to nourish my hair. Benefit: EPC Hair Gel provides the styling of hair gel and the nourishment of oil. It reflects my health conscious attitude. RTB: EPC Hair Gel has an oil-based formula which nourishes your hair like hair oil.

CONCEPT 2
ACB: When I use hair gel regularly to style my hair, my hair starts falling due to damage. Benefit: EPC hair gel strengthens your hair and can be used regularly for styling. It reflects my strong personality. RTB: EPC Hair Gel has the benefits of amla and mustard oil which strengthens your hair and keeps it nourished.

PRICE
The product should be launched in the medium price segment, as it is competing more with hair oils than styling gels. It has been observed that hair oils generally fall in the low to medium price range. Page | 20

PHYSICAL DISTRIBUTION
The distribution should be done in places where oil usage is high. The initial distribution should cover Metros, Tier-I and Tier-II cities. The channels to be used are the same that are used by EPC for its other products such as shampoos, soaps etc. As EPC has a very strong market presence in these categories, it would be easier to obtain shelf space in retail stores for the hair gel.

PROMOTION AND COPY STRATEGY

The initial promotional packages (small tubes) can be packaged along with EPC shampoos and soaps. This would increase trials of the product. For advertising, we suggest the use of male celebrity endorsements. A celebrity known for long hair such as Kunal Kapoor could be used for the advertisement. Also, the advertisement should emphasize the strengthening of hair and nourishment of hair along with styling. PR Strategy should involve a launch of product with its quality discussed by famous hair stylist and celebrity endorsements. Promotional packs (one time use packs) can be given to barbers to use on consumers once they have done hair cutting. As barbers are lead influencers on styling decision this would make a long term impact on the brand equity.

BRANDING STRATEGY
EPC should use house of brand strategy for entering into Mens Grooming category similar to the one used by P&G and HUL. As EPC is a well known brand in tobacco business, it can have a tainted imagery in FMCG categories. The brand should be promoted as a standalone brand with no reference to EPC in copy strategy or in other consumer communications. The proposed brand character is: Strong Successful Male who cares about his health as much as style

FUTURE STRATEGY
As hair gel is a relatively new category there are number of possible line extensions in this category.

LINE EXTENSIONS
1. 2. 3. 4. Anti Dandruff Hair Gel, with hair nourishing quality Hair gel with herbal and fruit extracts to strengthen the RTB of the brand in line extensions Hair gel with Menthol for cooling effect in summers Hair gel based on Jojoba oil / coconut oil

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The team believed that Hair Gel is a constantly evolving category . As such EPC should come up with new line extensions on regular yearly intervals.

BRAND EXTENSIONS
Once the brand has established itself in the Mens Hair Care market, following brand extensions are feasible for long term growth: 1. Shampoos and Conditioners for Men: This category currently does not focus specifically on hair care for Men. However, with a strong brand presence in Hair Gel category, it would be easy for EPC to move to Shampoos for Men. This can be positioned based on the common problems of male shampooing such as, dryness of hair, hair fall etc caused because of shampoos. 2. Hair Color for Men: This is another category that does not have products specifically targeted at men. As such, with a strong brand presence in mens hair grooming category (such as gel, shampoo), this extension is very feasible.

NEW BRAND CATEGORIES

Once the brand presence is established in the mens hair grooming category, EPC can also try out some innovative hair care products such as: 1. Hair Massage Cream: As the current product (hair gel) is established in nourishment category, it can be extended to hair massaging as well. This product will be a cream that can be used for hair massage and would result in better scalp and healthier hair. 2. Hair Styling Spray: This product will be packaged in an aerosol Can. This spray can be used on occasions to spray and style the hair. Further, the ease of styling with nourishment should be the focus of this category.

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ANNEXURE-I: SURVEY QUESTIONNAIRE

Part A: Brand Preference Product Category: Shaving Razor 1. Name the first company that comes to your mind in the shaving razor industry? 2. Name the company from which you would prefer to buy shaving razor? 3. Next time you go to the market which razor would you buy? Product Category: Shaving Fluid (Cream/Gel/Foam) 1. Name the first company that comes to your mind in the shaving fluid industry? 2. Name the company from which you would prefer to buy shaving fluid? 3. Next time you go to the market which shaving fluid would you buy? Product Category: After-shave lotion/gel 1. Name the first company that comes to your mind in the after-shave lotion/gel industry? 2. Name the company from which you would prefer to buy after-shave lotion/gel? 3. Next time you go to the market which after-shave lotion/gel would you buy? Product Category: Hair gel 1. Name the first company that comes to your mind in the hair gel industry? 2. Name the company from which you would prefer to buy hair gel? 3. Next time you go to the market which hair gel would you buy?

Part B: Usage Data Product Category: Shaving 1. Which shaving razor do you use? a. Gillette b. Wilkinson c. 7 oclock d. Local make e. Electric razor f. Other (Name: ____________________) 2. Which type of shaving fluid do you use? a. Cream b. Gel c. Foam Page | 23

3. Which shaving cream/foam/gel do you use? a. COLGATE-Palmolive b. Gillette c. V-John d. Godrej e. Park Avenue f. Denim g. Nivea h. Other (Name: ____________________) 4. Which after-shave lotion/gel do you use? a. Old Spice b. Gillette c. Denim d. Park avenue e. Nivea f. Other(Name: ____________________) g. Dont use

5. Which hair styling cream / gel do you use? a. Brylcreem b. Set Wet c. Garnier Fructis d. Parachute e. Other (Jolan etc) Part C: Needs and Insights Following are few structured Open ended questions were asked for each category (Shaving Razor, Shaving Gel/Cream/Foam, After Shave Lotion and Hair Gel) 1. What is your usage habits (frequency of use, purchase, time of use etc) for the category 2. On what basis do you select your brand in the category? Further probing based on initial answer. 3. Are you dissatisfied with the current product? If yes why? 4. Where do you purchase your products from? 5. How much does price affect your selection of products? Further unstructured questions were posed to the respondent based on their response to structured questions for more insights.

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REFERENCES

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