A Report On

The Indian Anti-Dandruff Shampoo Industry

Under the Guidance of Prof. Bharati Godbole Faculty, Marketing Management

Prepared By: Surbhi Maharishi, 24 Poonam Bodhale, 03 Kiran Kumar, 46 Paresh Yamba, 45 Yogesh Lalwani, Shailesh Nachankar, 26

Contents:
Executive Summary Industry Overview Background Major Players Market Shares Nature of the market Factors influencing the market Future Trends

Head & Shoulders SWOT analysis Marketing Mix Conclusion Recommendations

Executive Summary:
This report is prepared with an aim to study the Anti-dandruff Shampoo Industry in India, in the context of the major players, size of the market & individual market shares. It also deals with an individual Anti-dandruff shampoo Company Head & Shoulders by Proctor & Gamble, studies its marketing strategies & SWOT analysis. At the end, we as a group have also given some recommendations which we consider, would certainly enhance the sustainable growth of the company so chosen.

Industry Overview:
Origin:

Did you know, that the word Shampoo is derived from the Hindi word Champi. Remember Johnny Walkers famous song - Meri Jaan, Meri Jaan, Sunday Ke Sunday, Teil Maalish - Champi Teil Maalish. The British loved the massage so much, that they coined the term Shampoo after this name Champi. The word Shampoo in India was derived from the Hindi word champi meaning hair massage. The introduction of shampoo in India dates back to the British reign in the country. Being a recent development, the growth of shampoo or rather the penetration levels of shampoo in the India has been commendable.

Market Size: The shampoo market in India is estimated to be 2,500-3,000 crore. The shampoo market is India is categorized according to the benefits they provide. Mostly consisting of three kinds of shampoos cosmetic, herbal and anti dandruff, the shampoo market in India has managed to tap users of the various segments according to their requirements and preferences. Sachet makes up to 40 per cent of the total shampoo sale. Anti-dandruff segment constitutes around 15 per cent of the total shampoo market.

Due to the continuous efforts of the top shampoo brands in India penetration of shampoos

in urban areas is almost 100%. As far as penetration of shampoo in the rural areas is concerned, it has risen by almost 18% in the current scenario.

Major Players:

The top shampoo brands in India include:

1. Sunsilk, 2. Clinic Plus, 3. Clinic All Clear 4. Dove, 5. Head & Shoulders, 6. Garnier, 7. Himalaya and 8. Pantene.

The company that leads the shampoo market in India is Hindustan Unilever Limited. The top three most sought after brands Sunsilk, Dove and Clinic Plus are produced by HUL. The company holds a 44% market share in the Indian shampoo industry. It is said that HUL earns almost 8% of its revenue from the sale of these products. The other recent brand that has taken the Indian personal care industry by storm is Pantene. Since its very inception the brand was a best seller. A product of FMCG giants Proctor and Gamble, Pantene has slowly and steadily managed to capture quite a large amount of the Indian market. Proctor and Gamble, the second top shampoo brand in India holds a market share of around 25% in the Indian shampoo industry. The revenue earned from the sale of shampoos from Proctor and gamble is almost 17%.

Together these two major players constitute a major part of the Indian shampoo industry. Both these players with their numerous brands dominating the Indian shampoo market are continuously trying to outdo one another by introducing different marketing schemes. Be it in the form of price cuts, discounts or increasing the size of the shampoo sachets without any extra costs these two to shampoo producing companies are at a continuous price war.

 Nature of the market:

Some 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. 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. 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. 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 sachets USP of low price. 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

Evolution of Shampoo Market in India: HLL undisputed leader from the early 1990s 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 New Entrants: P & G enters India in Nov 1995, with the worlds 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: In mid 1997, per capita consumption of Shampoo increased The Anti-Dandruff segment accounted for a 20 % share of the total market size. 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

HUL 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 %

Future Trends: While toilet soaps have reached saturation, there is immense potential for penetration of shampoos into Indian households. With a continuous increase in pollution and also the number of working women, there are increased chances of dandruff, which in turn shows a growth trend for this market. There is a huge untapped rural market to reach to. Increasing hair fall problems because of dandruff. Increased awareness of hair care.

Head & Shoulders

Introduction: Head & Shoulders is a brand of anti-dandruff shampoo produced by Procter & Gamble. Head & Shoulders is world's No.1 anti-dandruff shampoo. A power brand from P&G , this brand made its debut in India in 1997. In the highly competitive Indian shampoo market which is estimated to be worth around Rs 3000 crore, Head & Shoulders is a major player in the Anti-Dandruff niche.

Marketing Mix (4Ps):

1. Product
Cleanness and Remove dandruff Its new best ever anti-dandruff formula provides better scalp coverage to get rid of even the tiniest dandruff flakes. What's more it gives you soft, beautiful hair that's closer to the look you want. The brand used the Markonym ZPT ( Zinc Pyrithine) Formula which has anti-fungal properties as its differentiator.

Clean & Balanced Anti-dandruff Shampoo

Smooth & Silky Anti-dandruff Shampoo

Refreshing Menthol Anti-dandruff Shampoo

Product Mix:
Classic Clean Shampoo / Classic Clean 2n1 Dry Scalp Shampoo / Dry Scalp 2n1 Ocean Lift Shampoo / Ocean Lift 2n1 Smooth & Silky Shampoo / Smooth & Silky 2n1

 Restoring Shine / Restoring Shine 2n1 Refresh Shampoo / Refresh 2n1 Sensitive Care Shampoo / Sensitive Care 2n1 Extra Volume / Extra Volume 2n1 Citrus Breeze / Citrus Breeze 2n1 Intensive Treatment Shampoo (1% selenium sulfide) Intensive Solutions Shampoo (2% pyrithione zinc) Classic Clean Conditioner Dry Scalp Conditioner

2. Place :

Head & Shoulder has already spread in all major towns and cities across India, almost 2400 distributors reaching out to 5.8 lakh retailers in all over the country. Head & Shoulder is being promoting through Campaign and TV advertisement. It is found in every Grocery Shops, Medical Shops as well as Stationary Shops.

3. Pricing:
4ml 7.5ml 90ml 100ml 200ml 400ml Rs. 1.5 Rs. 4 Rs. 67 Rs. 69.80 Rs. 139 Rs. 229

At the time of launching it used price-quality inference strategy. Currently it is using reference pricing as well as value pricing.

4. Promotion:
Hair Saloons TV advertisement Sports events Road shows Community & Blogs Different Sales Promotions Schemes Magazines

STP (Segmentation, Targeting & Positioning):

1. Segmentation:
Procter & Gamble did not limit themselves to a single segment analysis variable, but selected to apply a multi-marketing strategy. They (P&G) identified multiple segmentation bases in relation to the shampoo product line. They speculate that this was done in order to respond to the different needs and desires of the different consumer segments. The available segments could have been found based on: Demography,

 Geography, Psychography or Life-style. But being an FMCG product, like shampoo, The demographic or geographic segmentation is not as important as it is based upon the life-style as well as customers preferences despite of their demography or geography.

2. Targeting:
P&G are targeting customers having dandruff and dry & damaged hair in all age group. The target market for Head & Shoulders are the Higher middle class people who are brand conscious, early adaptors and who care about the overall health of their hair.

Procter & Gamble wages war on dandruff with Head & Shoulders Intensive Solutions, available in four targeted formulas. Each is designed to treat itching, flaking, dryness, irritation and redness in a medicated formula. Conditioner technology also helps protect hair against damage.

3. Positioning:

P&Gs anti-dandruff shampoo brand, Head & Shoulders, has roped in actor Kareena Kapoor, Saif Ali Khan and Priety as its new brand ambassador .

In its advertisements, Head & Shoulders introduces itself as a premium brand and uses the charm and beauty of beautiful models.

Attractive Banners and Hoardings are used extensively. Print media (News papers, liflets and pamphlets etc.) is used with exclusive high resolution attractive models.

The emphasized is on healthy, long and beautiful hair.

Perceptual Map of Product positioning:

SWOT Analysis: 1. Strengths:

International Company. Strong Financial position of P & G. Brand Loyalty. High Quality Products. Well known brand. Availability of Products in Different Sizes. Large Network for Distribution. Consumer Trust.

2. Weaknesses:
Competition with Clinic All Clear. Lagging behind Clinic All Clear in terms of creative campaign. Less popularity in rural areas compare to urban areas in India.

3. Opportunities:
Have a Great Opportunity in New developing areas of India. Consumer behavior towards brand loyalty. High Rates of Imported Shampoos. Increase in the Shampoo consumption due to awareness. Heavy investment in the research of Shampoo.

4. Threats:
High Competition in Indian Market. Uncertain economic condition of country. Rapidly change in price of raw material. Threats from new entrants. Threats from plenty other options available to consumers.

Packaging:
The product has eleven varieties with five SKUs each ( 2 ml and 3 ml sachet, 100ml, 200ml and 400ml pack). The product uses attractive white and royal blue combination as its base packing. The product uses a freshness essence in its packaging which, in consumers mind, creates a positive impression.

Advertising:
P&Gs anti-dandruff shampoo brand, Head & Shoulders, has roped in actor Kareena Kapoor as its new brand ambassador. In its advertisements, Head & Shoulders introduces itself as a premium brand and uses the charm and beauty of beautiful models. Attractive Banners and Hoardings are used extensively. Print media (News papers, liflets and pamphlets etc.) is used with exclusive high resolution attractive models. The emphasized is on healthy, long and beautiful hair.

Distribution:
The distribution channel of Head & Shoulders follows the conventional route of FMCG goods marketing, viz. Factory to distributor to whole-seller to retailer to consumer.

Vertical market opportunities :

The vertical market for shampoos is quite promising. The introduction of compatible hair-oil or conditioner or hair-gel is being followed by many brands like Clinic Plus. Head & Shoulder has these kind of products introduced out of India but it still has its opportunity in India.

Conclusion & Recommendations for Sustainance:

Looking at the increase in the growth drivers, the Anti-dandruff shampoo industry has an upward growth trend in the coming future.

We recommend that the Company should: Maintain its quality with constant improvements. Endeavour to come up with new varieties according to market needs. Maintain a competitive pricing. Focus on Promotion in rural and semi-urban areas. Give Special offers, discounts to consumers as well as distributors. Adopt innovative means of promotions like forming a special association or some distinct group which will help maintain its brand equity and loyalty.