Changing Dynamics in the Shampoo Market in India*

Details

Mini Case Code : CLMKTG004

Publication date : 2008 
Subject : Marketing
Industry : FMCG
Teaching Note : Not Available
Length : 05 Pages
Price : Rs. 100

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Key words:

Shampoo market, hair care, fast moving consumer goods, market share, pricing
environment, price war, India, Hindustan Unilever Ltd., Procter & Gamble,
CavinKare, Dabur, Godrej, Marico, ITC, Garnier, Sunsilk, Clinic Plus, Clinic All Clear,
Pantene, Head & Shoulders, Chik, Nyle, Ayur, Vatika, Rejoice, Dove, bottom-of-
pyramid, segmentation, differentiation, relaunch

Note

* This caselet is intended for use only in class discussions. 

** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US
$16) per copy.

Abstract 

The shampoo market in India has changed significantly since the 1960s when it first
became a lifestyle product in urban homes. As of 2008, it was a very competitive
market with dominant players such as Hindustan Unilever Ltd. and Procter &
Gamble Company. Analysts expect competition in the market to intensify further
with the entry of companies such as ITC Ltd. The market is marked by intense
competition from domestic as well as multinational companies. The changing
dynamics in the industry coupled with comparatively low penetration rates offer the
players in this market the opportunity to grow in both the top and bottom ends of
the market, according to analysts.

Issues:

» Market analysis
» Competition
» Market leader strategy
» Market entry strategy
 
Introduction

The shampoo market in India was estimated at Rs. 21.41

billion per annum as of February 2008, growing annually
at a rate of 14.5 percent. The market was dominated by
India's largest fast moving consumer goods company,
Hindustan Unilever Ltd. (HUL), and one of the world's
largest consumer goods companies, Procter & Gamble
Company (P&G).

CavinKare Pvt. Ltd. (CavinKare) and Dabur India Ltd. (Dabur) were other significant
players in this highly competitive market (Refer to Figure I for the market share of
the top companies in the Indian shampoo market)...

Questions for Discussion:

1. Critically analyze the shampoo market in India. Discuss how the market evolved
over the years. What, according to you, are the reasons for the changes happening
in the shampoo market?

2. In the changing scenario, what should a company like HUL do to sustain its
leadership position in the shampoo market? What should the smaller players do?

3. ITC is planning to enter the shampoo market in India. According to you, what
strategy should it adopt to emerge as a leading player in the market?

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 The world of dry shampoo continues to evolve in the hair care market
 October 17th, 2009 9:09 pm CT
 By Karen Shelton, North Dallas Beauty Examiner

What's Next For Dry Shampoo?

Many years ago there were only a few players in the dry shampoo market. There was the
original Psssssst spray shampoo which was inexpensive and considered a last resort for people
who couldn’t wash their hair for whatever reason.
Following on the heels of Psssssst was Klorane and Bumble and Bumble. Klorane improved on
the original spray concept while B&B, as the brand is known, came out with the first set of “hair
powders”.
Bumble and Bumble also introduced the hair powders in various colors including Brown, Black,
Red and White. The reasoning behind the colored powders, which basically consisted of a
cornstarch base with coloring agents, was to avoid the white residue on dark hair which other
products would deposit.
The problem with the B&B powders and some of the original dry shampoo sprays was the
messiness factor. Also, some of the products as Curly Guru Lorraine Massey pointed out,
were not as compatible with curly, kinky or extremely wavy hair. She also noted that the dry
shampoo products could, according to Lorraine, leave “strands looking like a powdered wig”
Once the door to the dry shampoo field was pushed open, the products which followed offered a
wide range of ingredients, delivery system (powder or spray) and price points.
My own favorite after testing literally ten different types was the Rene Furterer Naturia Dry
Shampoo. I actually am very fond of several of the RF products and thus happened upon the
Naturia.
After the original concept of utilizing dry shampoo products to dry clean hair without water,
hairdressers took the products to the next level. They started utilizing the dry shampoo products
and powder to build in special root lift and volume, touch up roots and add instant sweet
smelling aromas.
Just when I figured dry shampoo products have been pushed to their limits I discovered Shuga
Complex which is defined as a “Leave-in Shampoo” rather than a dry or no water product.
Leave-in Shampoo is a little confusing at first since it is basically the same as a spray-in or
powder version.
Besides a different definition, the Shuga Complex Leave-In Shampoo contains natural
transparent starches to eliminate that vague powder look and feel. It also is less messy than
some of the products I have used.
The Shuga Complex contains yogurt proteins as well as plant and milk sugars.  I have never
seen a smilar shampoo product, dry or leave-in, with yogurt proteins.  
Like other dry shampoo products the product can be used to add texture, remove styling
product build-up (gels, wax products) and extend hair color by minimizing wet shampoo
frequency. It also appears to be less likely to create that powdered wig look Lorraine frowns
upon.
Shuga Complex Leave-In Shampoo leaves hair feeling and looking fresh. In fact, it is giving my
beloved Rene Furterer Naturia spray a run for its money.
Ultimately when it comes to dry shampoo products everyone has to experiment with various
products before figuring out what works best for your hair type, texture (curly, wavy, kinky),
length and condition.
What’s next for dry shampoo products? Only time will tell.

Continue reading on Examiner.com: The world of dry shampoo continues to evolve in the hair
care market - Dallas Beauty | Examiner.com http://www.examiner.com/beauty-in-dallas/the-
world-of-dry-shampoo-continues-to-evolve-the-hair-care-market?render=print#ixzz1CtCj3gDY
Pantene Shampoo is one of the popular shampoo brands in the world. In India endorsements by
Bollywood Stars have made Pantene quite popular in the market. The brand has been endorsed
by numerous Bollywood actresses. Sushmita Sen is one of the newest brand ambassadors of
Pantene India. In a market study it has been found that Pantene Shampoo is preferred by 80
per cent of India's most beautiful women. 

Sushmita Sen as a new brand ambassador in the naming ceremony presented the Pantene
awards for individual excellence to numerous women entrepreneurs like Deepika Mehta,
Queenie Dhody and Anita Dongre. Sushmita Sen is not only a Bollywood star but is also a
former Miss Universe which she won in 1994. She has won numerous movie awards like Best
Supporting Actress in 2000 and 2003 for Filmfare Awards. She has won Best Supporting
Actress in 2001 by Star Screen Awards. She has also won Best Supporting Actress by Zee Cine
Awards in 2000, 2003 and 2005. In 2006 she won the Rajiv Gandhi Award for her achievement
in Bollywood. 

Recently Pantene India has introduced its Pantene Pro-V range of shampoos. Another new
Pantene Shampoo product is 'Pantene Shampoo Goodness of Coconut Oil'. The brand
ambassador for this product is Lara Dutta a former Miss Universe and Bollywood actress. The
graceful Lara Dutta embodies Pantene's character and its promise to consumers. She features
an inner strength which reflects the value of the product. 

Lara Dutta is an UNFPA Goodwill Ambassador and is also the winner of 2000 Miss Universe.
She has acted in various Bollywood movies and won awards like Star Screen Award for Most
Promising Newcomer and Filmfare Best Female Debut Award in 2004. 

Other famous celebrities endorsing Pantene Shampoo are Katrina Kaif, Shilpa Shetty, Bipasha
Basu, Sonali Bendre and Simone Singh. Through Lara Dutta, Pantene wants to convey
consumers of the benefit of Pantene with the Goodness of Coconut Oil. The latest Pantene
Shampoo range features five variants like Pantene Long Black, Pantene Lively Clean, Pantene
Hair Fall Control, Pantene Smooth & Silky and Pantene Anti-dandruff. 

Another recent Bollywood star who has become the brand ambassador is Katrina Kaif. She
started off her career in modeling and went to Bollywood movies. She is part of the advertising
of Pantene Shampoo which affirms '80 per cent of India's most beautiful women prefer
Pantene'. For her role in movies she has won Sabsay Favourite Heroine Award in 2008 and
Stardust Breakthrough Performance Award (Female) in 2006. The shampoo is a well known
world brand popular with women and is endorsed by some of the famous celebrities. 

Market Research
This is a very high profile career and one of the fastest growing service industries in India today.
With the flooding of consumer goods in the market, every manufacturer is looking for an edge
over rivals. To do this, he needs to get a deep understanding of consumer preferences. This is
where market research steps in.

A manufacturer or service provider hires a market research company to know the reactions of
consumers to a new product, a new advertising campaign and so on. That's not all - market
research is applied in everything from television programmes to elections. Market research work
does not stop with the collection of data, which is done by the field department of the company.
It is after the data collection that the researcher steps in. He not only analyses the data, but also
gives advice or recommendations to the client about a future course of action. Thus, a market
research company is also a consultant to its client.

Qualifications: One should have a fairly good mathematical or statistical background and an

MBA degree in marketing. There are two types of research works: (1) quantitative research, 
which  deals mostly with figures and numbers, (2) qualitative research, which includes group
discussions, in-depth interviews for collection of data, etc. The latter usually requires a
background or training in communication or psychology and   related disciplines. Since client
servicing is a very important aspect of market research, one should also have good verbal and
writing skills, presentation skills and a fairly reasonable understanding of business and the
market.

Pay Packet: The starting salary could be between 2-2.5 lakh rupees per annum, with a
whopping 20 per cent annual increment thereafter.

Prospects: One can rise up from being a research executive in the initial stages to an associate
project director, research director and then a research services director.

There are two types of people coming into this field. The first type are those who are passionate
about research and the second type are those who join this field to get an exposure to the
marketing world. Since market researchers interact with some of the biggest names in the
marketing world, it helps them to get jobs in the marketing departments of other big companies
later in their careers.

The market research industry is still in its initial phase in India. The growth rate in the early' 90s
was around 40-50 per cent. Though, the industry has had a setback due to the general
recession in 1997-98, it promises to provide excellent job opportunities in the near future. The
marketing world today is realising the importance of market research and hence the demand for
these services is on the rise.

Because of India's cultural and geographical differences, market research is a complicated task.
But this has helped Indian market researchers to attain international standards. Companies from
the Far East, the Middle East and even the UK and the USA recruit market researchers from
India. Market research is one field that offers a great growth potential and guarantees excellent
job prospects for management graduates.
Hair trends, using of shampoo

Here is an outline on the prevailing hair trends for Summer 2009. This will help you to find out
the best choice in hair do for the season. This discussion on hair trends for Summer 2009will
update all your hair queries for the year. This will also provide you with a brief guideline on the
various short hairstyle and the long hairstyle trends.

The Bob Hairstyle:

:

The bob cut hairstyle, specially the precision cut bob is one of the hottest hair trends for
Summer 2009. The bob hair cut is meant for short hair and are mixed and matched effectively
with smooth styling and blunt fringe and a shining texture. If your neck is long, then a bob hair
style accentuates it with far more beauty and also incorporates a unique charm to the shape of
your face. This hairstyle generally range from ear level to shoulder length and goes well both
with straight hair and hair with slight wave. If the structure of your face permits, you can go for
bangs, as it complements the bob hairstyle largely.

The Long and Wavy hairstyle:

:

The Long and wavy hair style is one of the hair trends for Summer 2009, which is rocking this
year. It will be better to retain a natural look as much as possible. The hair style can be
complemented with heavy layering. Some of the layers should be around the face. Consult a
professional hair stylist and have ideas about styles and techniques that will work best on your
hair. The length might vary having soft and gently sloping angles. Asymmetrical bangs will look
hot and, a sloping bang will attribute the facial features effectively. The Long wavy hair style with
multiple layers will emerge to be a celebrity trend this year.

A great style trick will be conditioning the just-washed, damp hair with a leave-in conditioner and
a volume-boosting aerosol spray at bedtime Then twist the hair by taking one-inch sections of
hair and making spiral braids with them. Let them dry overnight.

Ponytails
:

Ponytails will also be a classy trend this year. Both high and lowly worn ponytails will look
stunning. It adds up grace and elegance to your personality.

Straight Hair Style

:

Straight hair style will again be at the boom of fashion this year like all the other previous years.
Just part your straight hair in the middle and have a classic style in itself. A simple trick will be
moisturizing the hair before styling. Air dry the hair well, making it sure that there should not be
a single strand of damp hair what so ever, otherwise you will make a major damage while
straightening it. If the hair is naturally straight then it is fabulous and if you make it straight by
means of some treatment then take immense care of it in order to prevent all possible harm to
the hair. 

Top Updos
:

This is one of the most attractive hairstyles and this kind of hairstyle goes well with different
kinds of gorgeous attires 

Colored Hair
:

Hair color is one of the top trends of hair styles. The rich natural brown is the hot trend this year
and deep tint of chocolate is also a great attribute to the black and dark brown hair. Highlights
and low lights placed strategically also add character in the hair. So consult a hair expert and
select a nice range of hair color to tone up your hair cut. 

Shampoo Market

Shampoo Industry :
Shampoo Industry Dhirendra Pratap Singh
This Presentation Covers :
This Presentation Covers What is FMCG ? Characteristics of FMCG products Hair Care
Category in India Types of
Shampoos Hair Care Facts Market Size Awareness Shampoo usage details Penetration details
Growth in this
industry Evolution of shampoo as a product The top brands Ad Spends, and brands on the net
What is FMCG ? :
What is FMCG ? FMCG refers to consumer non-durable goods required for daily or frequent
use. Typically, a
consumer buys these goods at least once a month.
FMCG Products :
FMCG Products Detergents Toilet soaps Toothpaste Shampoos Creams Powders Food
products Confectioneries
Beverages Cigarettes
Typical Characteristics of FMCG products :
Typical Characteristics of FMCG products Individual products are of small value. But, all FMCG
products put together
account for a significant part of the consumer’s budget The consumer keeps limited inventory of
these products and
prefers to purchase them frequently, as and when required Many of these products are
perishable The consumer
spends little time on the purchase decision. Rarely does he / she look for technical
specifications ( in contrast to
industrial goods ) Brand loyalties or recommendations of reliable retailer / dealer drive purchase
decision Trial of a
new product i.e brand switching is often induced by heavy advertisement, recommendations of
the retailer or
neighbors / friends.
Typical Characteristics of FMCG products…contd. :
Typical Characteristics of FMCG products…contd. These products cater to necessities,
comforts as well as luxuries
They meet the demands of the entire cross section of population Price and income elasticity of
demand varies across
products and consumers
Hair Care Category in India :
Hair Care Category in India There are 5 main products Hair Oil Shampoo / Conditioners Styling
products Herbal
Remedies Hair Dyes / colors
Shampoos :
Shampoos Did you know, that the word Shampoo is derived from the Hindi word “Champi”.
Remember Johnny
Walker’s famous song - Meri Jaan, Meri Jaan, Sunday Ke Sunday, Teil Maalish - Champi Teil
Maalish. The British
loved the massage so much, they started calling Champi as Shampoo
TG for Shampoos :
TG for Shampoos Hair Shampoos and Conditioners are targeted at Upper middle class Now,
also middle class and
house wives Upper class rural consumers Teenagers - they are the major segment
Types of Shampoos :
Types of Shampoos Shampoo market is segmented on benefit platforms Cosmetic ( shine,
health, strength ) Anti -
Dandruff Herbal
Hair Care Facts :
Hair Care Facts The frequency of shampoo usage is very low. Most consumers use shampoo
only once or twice in a
week. In many cases, these products are used on special occasions such as weddings, parties
etc Some customers
use shampoo only to address a specific problem such as dandruff or when they need to
condition their hair Use of
conditioners is not common. It is restricted to the super premium segment or those who are very
involved with their
hair care Some consumers use natural conditioning agents such as henna About 50% of
consumers use ordinary
toilet soaps to wash their hair About 15 % of consumers use toilet soaps as well as shampoo for
cleaning their hair
Hair Care Facts…contd. :
Hair Care Facts…contd. Brand loyalties in shampoo are not very strong. Consumers frequently
look for a change,
particularly in fragrance Consumers attribute lathering to the act of cleaning Major expectations
from the product are
improvement in texture and manageability, giving softness and bounce to hair, curing and
avoiding damage to the
hair An Indian needs more shampoo for a proper wash ( average 6 ml ) compared to 4 ml
needed in Western
countries as most Indian women have long hair Most consumers do not use shampoo daily
Regular users would
need smaller quantity of shampoo per bath. Hair tend to collect more dust due to dusty
environment and oiling habits
Southern market is predominantly a sachet market, accounting for 70 % of sachet volumes
Hair Care Facts…contd. :
Hair Care Facts…contd. In Contrast, shampoo bottles are more popular in the Northern markets
About 50 % of the
shampoo bottles are sold in the Northern region alone In the North, local brands such as Ayur
have strong equities
and these products being low priced dilute sachet’s USP of low price
Shampoo market Size in India :
Shampoo market Size in India Size of shampoo market - 930 Cr Anti - Dandruff Shampoo - 20
% of above Sachet
Sales - 70 % of above
Shampoo Awareness in India :
Shampoo Awareness in India Urban areas - 90 %, accounting for 80 % of shampoo sold in the
country Rural areas -
80 %, accounting for 20 % of shampoo sold in the country
Shampoo Usage :
Shampoo Usage Per Capita consumption of Shampoo in India - 13 ml Per Capita consumption
of Shampoo in
Indonesia - 160 ml Per Capita consumption of Shampoo in Thailand - 330 ml
Shampoo Penetration in India :
Shampoo Penetration in India All India Shampoo - 14 % Urban - 40 % Rural - 10 %
Growth in Shampoo Market :
Growth in Shampoo Market Average Growth over the last few yrs - > 20 Expected Average
growth over the next few
yrs - 25 % AD segment is the fastest growing segment, growing at 10 - 12 % every year. H & S
growing at 15 - 20 %
every year.
Evolution of Shampoo in India :
Evolution of Shampoo in India HLL undisputed leader from the early 90’s Sunsilk launched in
1964 ( General
Shampoo platform ) Clinic Plus launched in 1971 ( Family, health shampoo platform ) Clinic All
Clear launched in
1987 ( Therapeutic AD Shampoo ) Sunsilk re-launched in 1987 - Shampoo + Conditioner
( Beauty platform ) with
Sachet SKU HLL Goes rural with Sachet Clinic Active launched in 1991 ( with Pro Vitamin B -
health platform )
Sunsilk re-positioned and re-launched in 1994 ( Nutracare) - Pink for dry hair, yellow for normal
hair, green for oily
hair and black for long hair
Entry of Competition :
Entry of Competition Why did competition Enter India Teeming millions Burgeoning middle class
Westernized youth
low penetration levels Huge untapped market
New Entrants into the Market :
New Entrants into the Market P & G enters India in Nov 1995, with the world’s largest selling
brand - Pantene Colgate
Palmolive launched Optima also in Nov 1995 ( break through in Keratin treatment ) Nirma
launched Nirma Shampoo
which went into rough weather because it also had a detergent and soap with the same name.
The brand name also
had low price connotations
Shampoo Boom in India :
Shampoo Boom in India In mid 1997, per capita consumption of Shampoo increased Of the Rs.
350 Cr. Shampoo
market, the AD segment accounted for a 20 % share P & G launched its Internationally
acclaimed A & D shampoo H
& S in 1997 with Zinc Pyrithine ( ZPT ) - a unique anti-microbial agent. There were 2 variants -
regular and menthol
Sachet sale became 40 % of all shampoo consumption in the country
HLL Dominance :
HLL Dominance Clinic, Sunsilk, Organics and Lux and their various brand extensions dominate
the shampoo market
In 1998, the company re-launched Clinic and Sunsilk brands Sunsilk was re-launched with
Fruitamins. Today HLL
has a 63 % market share in the shampoo market In South India, Clinic Plus and Clinic All Clear
put together have a
market share of about 70 %
The top Shampoo brands :
The top Shampoo brands Normal Shampoo’s Clinic Plus Sunsilk Chik
The top Shampoo brands :

The top Shampoo brands Herbal Shampoos Ayush Dabur Vatika Nyle
The top Shampoo brands :
The top Shampoo brands Anti Dandruff Shampoos Clinic All Clear Head and Shoulders Dabur
Vatika AD
The top Shampoo brands :
The top Shampoo brands Premium Products Shehnaz Hussain Revlon Flex L'Oreal
The way forward :
The way forward While toilet soaps have reached saturation, there is immense potential for
penetration of shampoos
into Indian households. According to NCAER, Shampoo penetration is expected to grow from
314 thousand
households in 1998-99, to 502 per thousand households in 2006-07.
Ad Budgets are on the rise :
Ad Budgets are on the rise The reasons are Lot of competition in the market Low penetration
levels High potential
Untapped rural market to reach to There are a few brands that are already on the net
Brands on the Net :
Brands on the Net Clinic All Clear Sunsilk Head & Shoulders Pantene
Thank You :