MARKETING ESSENTIALS

A
PRESENTATION
ON
BRAND CREATION
[SOAP]
 CONTENT
 MICRO ENVIRONMENT
 MACRO ENVIRONMENT

 MARKET SCAN

 DEFINITION OF FMCG

 HISTORY

 MARKET SEGMENTATION

 FACTORS AFFECTING BUYING BEHAVIOUR

 PEST ANALYSIS

 SWOT ANALYSIS

 BCG MATRIX

 CONCLUSION
MICRO ENVIRONMENT

COMPANY’S INTERNAL
ENVIRONMENT

SUPPLIERS

MARKETING INTERMEDIARIES

CUSTOMERS

COMPETITORS
MARKET SCAN
Environment scanning is the process of
collecting information about the forces in the
marketing environment

In market scanning, it’s necessary, as the article points out,

to ask questions such as, “What changes could make our
product obsolete?” We also have to look at things outside
our own industry. What’s going on in our society?
legislation? The economy? Demographics? Weather
patterns?
WHAT IS A FMCG?

FMCG-means Fast Moving Consumer Goods.

It usually refers to non-durable products.

Examples include soft drinks, toiletries,

grocery items, etc.

A customer usually spends a minimum of

effort to get them.
 CLASSES:
• Goods that consumers purchase on a regular basis. For example a buyer
purchases a toilet soap, detergent, toothpaste and biscuits as and when
1. Staples. stocks reach a critical level. (Means when time comes near of its
(Purchased emptiness)
regularly)

• Goods that are purchased without any planning or search effort are
known as impulse goods. For example chocolates, soft drink, and potato
2.Impulse chips are displayed in the Kirana store because shoppers may not have
goods. thought of buying them until spotting them.

• Emergency goods are purchased when a particular need arises. The

requirement for umbrellas arises during the rainy season. Manufacturers
of emergency goods will place them in many outlets so as to capture the
3.Emergency sale when the customer needs these goods.
goods.
 • 1. Frequent purchase.
• 2. Low involvement.
CHARACTERISTICS • 3. Low price.
OF FMCG FROM
CONSUMERS’
PERSPECTIVE

• 1.
High volumes.
• 2.
Low margins.
CHARACTERISTICS OF • 3.
Extensive distribution
FMCG FROM networks.
MARKETERS ANGLE • 4. High stock turnover.
HISTORY
The toilet soaps market is estimated at 530,000 tpa including
small imports. Hindustan Lever is, of course, the market
leader.

Increased sales revenues would also expand from up

gradation of quality or per unit value.

The incremental demand flows from population increase and

rise in usage norm impacted as it is by a greater concern for
hygiene.

Toilet soap, once only an urban phenomenon, has now

penetrated practically all areas including remote rural areas.
 The market shows a seasonal behavior for some brands, i.e. the
brands change as per the customers' need for that particular season.
For e.g. in summer - running brand popular and sub-popular most of
the buyer take bath twice in a day specially in northern belt, in
monsoon - running brand antiseptic and medicated soap, in winter
running brand premium (moisturizer and creamy soap).
ENVOIRNMENT
ANALYSES…
GEOGRAPHIC ENVIRONMENT

W E

S
 GEOGRAPHIC ENVIRONMENT
 Region : North, south, West, East
 City size : Major metropolitan areas,
Small cities , Towns
 Density of Area : Urban, Suburban, Rural

 Climate : Temperature, Hot, Humid.

 Since the temperature is HOT & HUMID, sweating is at
high rate.
 Customers need a product which keeps them fresh all day
long.
 They also require fragrance which is longlasting.
 DEMOGRAPHIC ENVIRONMENT

Main demographic force that marketers monitor

is POPULATION because people make up
markets.

Size & growth rate of population in

cities,
regions,
nations

Also, age, sex,

age difference,
educational levels,
lifestyle
 POPULATION

 India is a country of 1.15 billion people.

 Rural Population consists 72% of total population.
 It is a ‘ Young Country ’ having 46 crores of people between
age 13-35.
 Women population is around 55 crores.

Total Population
1.15 bil

46 cr Rest of
Age wise people (<
(13-35 yrs) 35)
 INCOME
5000 – • They usually prefer to
10000 Rs. buy low cost product.
10000 – • They can afford standard
25000 Rs. product.
< 25000 • They usually prefer to
Rs. buy high cost product.
LITERACY
 Literacy rate in India is around 65%.
 35 crore people in age 13-35 are literate.
 62% literate youth lives in Rural villages.
 Women literacy rate is around 55%.
 Housewives are the main target for this product.

Country Women Age wise

65% 55% 35cr

People Literacy (13-35)
 ECONOMIC ENVIRONMENT :

Per Capita Income $3100

Inflation Rate 10%

GDP (PPP) $3.57 Trillion

Economic Comparison 5
Rank Worldwide
ALL FIGURES IN MILLION AS ON 2006-07

Households Estimated
Income Class Population

Rich 5.2 30

Consuming class 75.5 432

Climbers 81.7 472

Aspirants 20.2 117

destitute 16.5 95
500
472

450 432

400

350

300

250

200 Households

150
117 Estimated Population
95
100 81.7
75.5

50 30
20.2 16.5
5.2
0
Rich Consuming Climbers Aspirants destitute
class
ECONOMIC ENVIRONMENT

Economics is the social science that studies the

production, distribution, and consumption of goods
and services

Changes in general economic condition affect supply

& demand, buying power, willingness to spend,
consumer expenditure level.
 ECONOMIC ENVIRONMENT :
INCOME & GROWTH IN RURAL & URBAN AREA IN 2015
(EXPECTED).
 PSYCHOGRAPHIC ENVIRONMENT

Needs-motivation
This is a need base product. every person have a health awareness so they prefer
to buy this product. and every person in family takes care of other family
persons because of affection.

Lifestyle
Uses of product depends upon people’s lifestyle. conservatives people may be
not use our products, while status seeker may use our high quality and high
range products.

Attitudes
-Positive attitude -Negative attitude
SOCIAL-CULTURAL ENVIRONMENT
A survey by Research International in 2002
indicated significant differences in attitudes and
preferences of women.

Move from lower socio-economic classes to

higher classes.

Cultural difference can be stated as traditional

ways and modern ways.
CULTURAL ENVIRONMENT
Commercial
• In Indian culture people have a freedom of choice so they use
our different types of products.

Social class
• lower class may not use this products, while middle class may
use our low cost products and upper class may use our high cost
products.

Beliefs, Values And Norms

• India is a ‘complex’ country of 30 different languages, over 200 mother tongues
and around 2000 dialects of cultures and sub-cultures.
• Regional differences in language, customs, social systems,values,habits,make
the environment so complex.
COMPITATIVE
ANALYSIS…
 COMPETITORS
[ MEN’S CATEGORY]

WILD STONE

PARK AVENUE

AXE

REXONA

CINTHOL
 COMPETITORS
[CHILD’S CATEGORY]

JOHNSON & JOHNSON

DOY
THERE ARE MANY TYPES OF COMPETITORS
 Brand competitors
which makes product with the similar features and benefits to the
same customers at a similar price

 Product competitors
which compete in the same product class but their product have a
different features, benefits, price

 Generic competitors
which provide very different product that solve the same problem or
satisfy the same basic customer needs

 Total budget competitors

which compete for the limited financial resources of same customer.
MARKET SHARE

Market Share
Players

Others 14.8
Godrej    4.4
Nirma    16.8
HLL    64
0 10 20 30 40 50 60 70

% Share
CONSUMERS
ANALYSIS…
BENEFITS SOUGHT BY VARIOUS CUSTOMERS FROM VARIOUS BRANDS ARE

Beauty - Lux
All in One –
Alfresh Liquid Freshness – Liril,
Soap Cinthol

Glycerine – Natural –
Pears, Emami Medimix, Margo

Medicated – Baby – Johnson

Dettol, Savlon, & Johnson, Doy
Cream – Dove,
Doy Care
(moisturizing)
FACTORS AFFECTING BUYING BEHAVIOUR

Price

Women
The buying
oriented
frequency
market

The
promotional
techniques
FACTORS OF BRANDS

NEED
SATISFACTION
FUNCTIONAL
FRAGRANCE
IMPACT ON
factors CONSUMER

FOR REMOVE
EMOTIONAL THE BAD
ODOUR
 BENEFIT FACTOR

Convenience: Prestige:
• Costumers always • Means upper class
prefer to buy a people always prefer
products which are to use those type of
more convenient to product which may
use and buy. shows their prestige.
MARKET
SEGMENTATION…
WHOLE PROCESS OF BRAND CREATION
 • As the market is constituted now, it can be divided into four price
segments: premium, popular, discount and economy soaps. Premium
soaps are estimated to have a market volume of about 80,000 tonnes.
This translates into a share of about 14 to 15%. However, by value it
is as much as 30%.

 Market Segmentation

 The market is growing at 7% a year. This means that the incremental demand generation is 5%
over and above the population growth.

 With increasing awareness of hygienic standards, the market could grow at a rate higher than
8% annually.
HIGHLIGHTING SEGMENT…

 PREMIUM SOAPS ARE ESTIMATED TO HAVE A

MARKET VOLUME OF 80000 TONES.

 THEY POSESS A SHARE OF AROUND 14-15%.

 THIS SEGMENT HAVE COMPARITIVELY HIGH

LOYALYTY.
TARGETING…
PREMIUM

RICH & UPPER MIDLE

CLASS

AGE INCOME

15-35 YRS 30000 & ABOVE

 PEST ANALYSIS:

 Political Factors: --

 Politically there is no much of a problem for the ALFRESH SOAP and will
create an impact that will not affect our product.

 Government banned the import of tallow, a soap making raw material

(which was requiring a very little processing to make soap). It then followed
an incidence of adulteration of vanaspati by unscrupulous manufacture.
 ECONOMIC FACTORS
 Soaps in India cost very high in India as compared to other
countries like Indonesia. This is primarily attributed to the high
cost of imports due to high import duties.

 Since India is now a WTO member India will have to bring down
the import duty rates to as much as 20% from 35%. Also the excise
rate at 16% forms formidable portion of the cost.

 For toilet soap, the average expenditure per user household for
low-income households is Rs. 237, while it is Rs. 706 for high-
income groups.
SOCIAL FACTORS:

 With the rising education and disposable income levels, the need for hygiene
and personal / skin care becomes important.

 Premium soaps are thus targeted at the audience to change their habits by raising
their aspiration levels.

 Fragmented approach of govt. and NGO’s towards inefficient PHC-primary

health center also aggravates the problem.

 The growing reach of advertising medias like satellite and cable TV too is
expected to give a boost to the market penetration initiatives of the industry
players.
TECHNOLOGICAL FACTORS:

 The industry though capital intensive is not very technology intensive. Premium soap
manufacturing though compared with other soaps manufacturing relies to an extent
on technology (especially in the finishing stage). The more important is logistics
management where marketing and distribution play a pivotal role. Here technology
like (SCM) Supply Chain Management and (E-CRM) Electronic Customer
Relationship Management will play a pivotal role. Companies like HLL are working
very hard towards such a system to rope up the entire small stores and retailers
(Kirana Stores).

 The results of a survey done by National Council of Applied Research (NCAER)

suggest that Indian FMCG space is all set to enter a new growth phase, sample this:
the study says that the lower income group is expected to shrink from over 60 percent
(1996) to 20 per cent by 2007 and the higher income group is expected to rise by
more than 100 per cent. It looks; the industry is all set for a fast-paced race ahead.
SWOT ANALYSIS

Before going to
SWOT Analysis
we must
understand which
things are
included in the
SWOT analysis;
 BRAND PERSONALITY

ALL AGED CUSTOMERS

• (child, young men & women, old age men & women)

In sense, two categories of customers

rich & upper middle class.
BRAND POSITION

Economy range
product.

Easily available for

everyone in local place
at reasonable price.
POSITIONING OF BRAND
 RESEARCH &DEVELOPMENT

 After extensive research and development we have come up with

an idea of launching ALFRESH LIQUID SOAPS
GAP OF OPPORTUNITY

 There are 2 major competitors for liquid soaps.

 Fiama De Wills of ITC.

 Lux liquid soap of HUL.

 Out of which Fiama De Wills is growing faster.

 There are no other prominent players in this segment.

GAP OF OPPORTUNITY
 Such liquid soaps are more popular in women of age 15-
35.

 The major player in baby liquid soap is johnson &

johnson.

 So, after all the analysis we can see that this segment of
soap is not yet explored.

 Looking at the development and growth of country this

would be the right time to enter this segment.
THE BOSTON CONSULTING GROUP’S GROWTH-
SHARE MATRIX (BCG)
 BCG Matrix Include;

Stars are high market share/high growth businesses. The preferred strategy
is growth.

Question Marks are low market share/high growth businesses. The

preferred strategies are growth for promising question marks and
restructuring or divestiture for the other question marks.

Cash cows are high market share/low growth business. The preferred
strategy is stability or modest growth.

Dogs are low market share/low growth businesses.

The preferred strategy is retrenchment by divestiture.
INTERPRETATION OF BCG MATRIX

OUR STRATEGY
WOULD BE CASH
COWS.

HIGH MARKET SHARE

& LOW GROWTH.

SINCE FMCG
PRODUCTS DO NOT
HAVE HIGH PROFIT
MARGIN.

SO, LIKE HUL WE WOULD TRY TO

HAVE MORE MARKET SHARE
THROUGH DIVERSIFIED BRANDS.
BECAUSE BATHING WITH SOAP IS
OUTDATED.

ADD LIFE TO YOUR BATH WITH

ALL NEW…….

ALFRESH CHILD MEN WOMEN

SOAPS. .
 OUR PRODUCTS…

ALFRESH
SOAPS

BABY MEN’S LADIE’S

SOAP. SOAP. SOAP
 ALFRESH BABY’S LIQUID SOAP…

ITS AN ALL NEW HERBAL PRODUCT FOR YOUR BABIES.

IT NOT ONLY ENHANCES THE DELICATE SKIN OF BABIES

BUT ALSO GIVES THEM PROTECTION FROM SKIN
DISEASES.

BABIES SKIN IS VERY DELICATE, DON’T HARM THEM

WITH CHEMICAL PRODUCTS, GO HERBAL.

THIS PRODUCT IS NOT AT ALL HARMFUL FOR SENSITIVE

EYES OF BABIES.
 ALFRESH MEN’S SOAP…

CONTAINS VARIOUS REFRESHING

AGENTS.

KEEP YOU FRESH FOR 24 HRs.

AVAILABLE IN DIFFERENT FRAGRANCES.

SPECIALLY MADE FOR MEN, BECAUSE

MEN TOO REQUIRE ATTENTION…..
 ALFRESH WOMEN’S LIQUID SOAP…

AVAILABLE IN VARIOUS ATTRACTIVE

DESIGNS & FRAGRANCES.

GIVES GLOW TO YOUR SKIN & REPAIRS

DEAD-CELLS.

IT CONTAINS MILKY & CREAMY

MOISTURIZERS WHICH KEEPS YOUR SKIN
SOFT & GLOWY.

IT KEEPS YOU FRESH ALL DAY LONG.

 WHY ALFRESH LIQUID SOAPS.

ITS AN ALL NEW LIQUID PRODUCT.

BATHING WITH SOAPS IS OUTDATED.

IT’S A FAMILY SOAP SATISFYING NEEDS OF ALL

MEMBERS OF FAMILY.

LONGLASTING FRESHNESS WITH FRAGNANCE.

GIVING BATH AN ALL NEW EXPERIENCE.

 CUSTOMERS TARGETED.
BASICALLY IT’S A PREMIUM
BRAND.

RICH & UPPER MIDDLE-

CLASS ARE TARGETED.

IT SATISFYIES THEIR EGO &

RAISES THEIR STATUS AS
THIS PRODUCT
DISTINGUISHES THEM
FROM OLD WAYS OF
BATHING.

THIS PRODUCT WILL

BECOME A STATUS SYMBOL
FOR THEM.
PROMOTIONAL ACTIVITIES

CARNIVALS

FREE SAMPLE
TELE CALLING
DISTRIBUTION

WORKSHOPS FOR
CONTEST & GIFTS
TO BE MOMS
DISTRIBUTION CHANNELS

MANUFACTURING UNIT

DISTRIBUTERS

MARTS WHOLESELLER

GROSSERY SHOPS MEDICAL STORE

SUMMARY

Cost effective

Environment friendly

Steady profit margins

Less competitive but high risk

A huge growth potential over

the years to come.
THANK YOU