Manisha Jain

Category : FMCG
Product : Shampoo
 Size of shampoo market – RS.4.5 billions
 Penetration level of only 13% in India.
 Sachet makes up to 40% of the total shampoo
sale.
 Still 50% of the population use toilet soaps to
wash hair.
 Penetration level is only 30% in metros.
 The major players are HLL, and Procter &
Gamble. 
 HUL is market leader with 44% market
share, with its brand:
 Sunsilk
 Clinic plus
 Clinic all Clear
 Dove brands
 Hair Shampoos are targeted at
 Upper middle class
 Now, also middle class and house wives
 Upper class rural consumers
 Teenagers - they are the major segment
 Shampoo market is segmented on benefit
platforms
 Cosmetic ( shine, health, strength )
 Anti - Dandruff
 Herbal
 Growth rate of industry - 9.3 %.
 Dabur growth rate-19.4 %
 CavinKare, with brands such as Chik and Meera,-
11 % .
 Hindustan Unilever's -7.8 %
 Johnny-come-lately brands from ITC such as
Fiama di Wills, Vivel and Superia,-10.5 %
 P&G- 7.7%
 L’oreal india-8%
 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
 Why did competition Enter India
 Teeming millions
 Burgeoning middle class
 Westernized youth
 low penetration levels
 Huge untapped 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
 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
 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.
 In South India, Clinic Plus and Clinic All Clear put together
have a market share of about 70 %
 Strong Market Research
 Strong sales and distribution network backed by
HLL
 Positioning focuses on the attractive beauty
segment
 Dynamically continuous innovation of the product
and brand rejuvenation –
 Perceived to have high value for money (strong
brand promotion but relatively lower price)
 Though it is in popular segment, it is having mass
appeal/market presence.
 Usage rate/ wear rate is high and is generally
mushy and soggy
 Some variants like the sunscreen, International
variant did not do well in the market( Lux)
 Certain advertisements like the recent one
with Shah Rukh Khan resulted in controversial
interpretations of the message of the
advertisement and lead to some loss of focus.
 Stock out problems - replenishment time is
high in semi-urban/rural areas
 Hair care industry growing by 3.8% in India
  Beauty segment’s Compounded Annual Growth
Rate (CAGR) is very high.
 More promotions like price-offs and samples
 Retentive strategy required as the shampoo
segment is in the mature stage of its plc
  Line extension – probably with more variants
catering to the beauty segment like natural,
herbal soap etc
  New entrants/local competitors/MNCs would
increase the competition (P&G)
  Excessive dependence on beauty segment makes
HLL vulnerable to changing customer tastes
  Technological change makes the existing
products obsolete – HLL should focus on
technological innovations .
 Its in the maturity stage in the Product Life Cycle
and has a threat of slipping down to decline
stage.
 The core competencies is it’s nation wide strong
distribution network.
 About 70% of India’s population live in 6,27,000
villages in rural areas.
 HLL has traditionally focused on rural market.
 To serve rural market 3 A’s are to be focused
i.e.,availability, awareness,& overcoming
prevalent attitude and habits.
 Normal Shampoo’s
 Clinic Plus
 Sunsilk
 Chik
 Herbal Shampoos
 Ayush
 Dabur Vatika
 Nyle
 Anti Dandruff Shampoos
 Clinic All Clear
 Head and Shoulders
 Dabur Vatika AD
 Premium Products
 Shehnaz Hussain
 Revlon Flex
 L'Oreal
 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