KESHAV BAGRI [H006] ASHWINI DESHPANDE [H012] AKSHAY MATHUR [H035] ROSHAN P R [H045] RISHI SAMPAT [H049] KSHIPRA

SINGH [H060]

BOWMAN’S STRATEGY CLOCK

PERSONAL CARE
BOWMAN’S STRATEGIC CLOCK

Bowman’s strategy clock is a model used by a

company while designing marketing strategy
to analyse its competitive position in
comparison to the offerings of competitors

As with Porter's Generic Strategies, Bowman

considers competitive advantage in relation to
cost advantage or differentiation advantage.

Bowman's Strategy Clock represents eight

possible strategies in four quadrants defined
by the axes of price and utility value.

The resulting star shape is reminiscent of a

clock face, giving this tool its name
 BOWMAN’S STRATEGIC CLOCK
Position 3: Hybrid (moderate price &
differentiation)
Hybrids are interesting companies. They offer
products at a low cost, but offer products with a
higher perceived value than those of other low
cost competitors. Volume is an issue here but
these companies build a reputation of offering
fair prices for reasonable goods.
Position 2: Low Price
Companies competing in this category are the
low cost leaders. These are the companies that
drive prices down to bare minimums, and they
balance very low margins with very high
volume.
Position 1: Low Price / Low Added Value
It's a position they find themselves forced to
compete in because their product lacks
differentiated value. The only way to "make it"
here is through cost effectively selling volume,
and by continually attracting new customers.
Position 4: Differentiation
Companies that differentiate offer their customers
high perceived-value. To be able to afford to do this
they either increase their price and sustain
themselves through higher margins, or they keep
their prices low and seek greater market share.
Position 8: Low Value/Standard Price
Any company that pursues this type of strategy
will lose market share. If you have a low value
product, the only way you will sell it is on price.
You can't sell day-old bread at fresh prices.
Position 5: Focused Differentiation
These are your designer products: High
perceived value and high prices. Consumers will
buy in this category based on perceived value
alone. The product does not necessarily have to
have more real value, but the perception of value
is enough to charge very large premiums.
Position 6: Increased Price/Standard Product
Sometimes companies take a gamble and simply
increase their prices without any increase to the
value side of the equation. When the price
increase is accepted, they enjoy higher
profitability
Position 7: High Price/Low Value
This is classic monopoly pricing, in a market
where only one company offers the goods or
service. As a monopolist, you don't have to be
concerned about adding value because, if
customers need what you offer, they will pay the
price you set, period.
 FMCG INDUSTRY OVERVIEW
US$ 30 billion in US$ 74 billion in
2011 2018
Personal Care

Food Products
Personal Care
Fabric care Fragrance Skin Care Hair Care Oral Care
Hair Care
Households
OTC Products
Baby Care
Others
Color Cosmetics Bath And Shower
22%

 Rise in disposable incomes resulted in shift from essential to

Key Growth Drivers premium products
for Personal Care  Growing awareness and easier access
Sector in FMCG  Changing lifestyles
 Rise in organised retail
 HAIR CARE SECTOR
Differentiation Focused Differentiation
Hybrid
L’oreal
HUL
High L’oreal
P&G HUL
Marico
HUL P&G
to the Consumer

CavinKare
Perceived Value

HUL
Low Price Increased Price/
Standard Product
Marico

Dabur

CavinKare

Low Price / Low High Price/Low Value

Low Added Value Low Value/Standard Price

Low Price High

 HAIR CARE SECTOR - ANALYSIS
Major presence in the upper half of
the clock, focus on scale as well as
differentiation.
Sunsilk, Clinic Plus and Dove major
contributors to HUL’s market share
of 47%
Although known for scale, HUL
launched TRESseme only to those
clusters where adoption of beauty
trends was gathering momentum
Broad strategy
To obtain scale in mass brands such
as Sunsilk but premium positioning
and restricted distribution for
products such as TRESemme
P&G has presence in the more
premium segments and does not
offer cheaper options in this category.
Absence in the left half of the clock
Pantene has a major share in P&G
total revenues. Overall, market share
of P&G is 27%
Major presence in the higher priced
products. Focus on higher margins.
However, lack of innovation has
affected its market position
Broad strategy
P&G has looked to follow a mixed
pricing strategy globally. It cuts
prices in India while increases the
same in markets such as Russia or
Brazil
Major presence in the left half with
products pricing on the lower side,
that is, the budget segment
Marico has four major brands in the
value added hair oil category
(accounting for 29% of sales).
Parachute , Nihar, Hair & Care are the
major brands
Parachute hair oil caters to the budget
segment while the value added
portfolio caters to a largely urban,
premium consumer segment seeking
specific benefits from hair oil
Broad strategy
It builds prototypes of its products
and launches them within a small
segment of customers before going
for a nation-wide launch
 COLOR COSMETICS SECTOR
Differentiation
High

Hybrid Focused Differentiation

to the Consumer
Perceived Value

Low Price Increased Price/

Standard Product

Low Price / Low

Added Value High Price/Low Value

Low
Low Value/Standard Price

Low Price High

 COLOR COSMETICS - ANALYSIS

1909 1964 1995 2006 2014

 Positioned  Positioned as
 Providing  Positioned as a  To increase
as a Luxury lifestyle
premium cosmetics its market
Brand product
product brand with share in
 To cater to targeting
for natural North
the growing teenagers and
masses ingredients America
needs of young girls  To compete
quality  To compete with brands
products with Indian like Bath and
brand Lakme Body Works
 SOAPS SECTOR
Differentiation

High
Hybrid Focused Differentiation
to the Consumer
Perceived Value

Low Price Increased Price/

Standard Product

Low Price / Low

Added Value High Price/Low Value

Low
Low Value/Standard Price

Low Price High

 SOAPS SECTOR - ANALYSIS
Evolution of Soap market in India Key Takeaways
2020 80

2007 2007 2008

HUL is the undisputed
2000
1995 70
market leader in soap
1986 market due to first mover
1980 1981
1974 advantage
1969 60

1960
1952 Due to almost no
1947
1940
50
competition, it
1931 consolidated its
1920 40 leadership position by
1902
1905 getting a foothold in all
1900
1895 30 the categories
1880

20 Cinthol entered to
1860 compete with Rexona
10
Liril entered to compete
1840
with Cinthol
1820 0
Fiama to compete with
Lifebuoy Pears Lux Hamam Rexona Cinthol Medimix Liril Dettol Santoor Dove Fiama Di
Wills
Superia Vivel Pears
 IMPLEMENTATION – USING THE CLOCK !
Designing a marketing strategy to analyse its
COMPETE ON PRICE ? COMPETE ON VALUE ?
competitive position vis-a-vis competitor offerings
Well-
Are you a identified
Differentiation target
price
leader? market?

Focused Differentiation What your

Sustaining a target
cost leader Hybrid market truly
position values?

Perceived
Exploit all of value of
the cost Increased Price/ competitor's
advantages? Low Price Standard Product products?

Risk of
perception Differentiation
of too low areas that others
value? Low Price / Low can’t copy?
Added Value
Segment
wise – Alt methods of
Limited Cost High Price/Low Value differentiation
advantage?
Low Value/Standard Price