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Skin cream market study of India
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Skin cream market study of India

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We have studied the market of Skin cream in India, segmented it in 4 ways, chose a company of study and a brand under that company, compared it with its major competitor. All the data are from ...

We have studied the market of Skin cream in India, segmented it in 4 ways, chose a company of study and a brand under that company, compared it with its major competitor. All the data are from reliable sources. I tried to mention them wherever I could. Moreover, this just my view of the market. It could be different in a million ways. We have used only secondary data here.

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Skin cream market study of India Skin cream market study of India Presentation Transcript

  • SKIN CREAM MARKET STUDY - PHASE II Ankit Haldar Singal Krishnakanth Goenka Ratnavel Subramanian Shravi
  • Segmentation  We discovered 4 methods of segmenting the Skincream market as:  Price-wise    Low priced (Vicco Creams, Dabur, Boroplus etc.) Medium priced (Nivea, Parachute, Himalaya, Ponds, Lakme etc.) High priced (Neutrogena, OLAY, L’Oreal etc.)  Due to the kind of market, the price of the medium priced brands were found to be pretty high and the quality of the product also was comparatively appealing.  As a result of this, there seems to be a huge gap between the low priced and the medium priced brands. Indian Skin-cream Market Study 2 of 17
  • Segmentation  Gender-wise  Male specific (Nivea-Men, Fair & Handsome, OLAY-Men, Gillette, GarnierMen etc.)   Female specific (Ponds, Lakme, Lotus, OLAY, CavinKare etc.) Both (Vaseline, Nivea, Clean & Clear, Garnier etc.)  We noted that the companies did not want to create a separate brand name for each of these segments. But instead, to make it different they used a “-Men” in the brand.  This retained the brand image and also made it clear that it was specifically for men. Indian Skin-cream Market Study 3 of 17
  • Segmentation  Ingredient-wise  Organic (Himalaya, Lotus, Vicco)  Chemically extracted (Ponds, Lakme, Lotus, OLAY, CavinKare, Nivea, Garnier etc.)  The organic skin-cream market contains very few players. It might probably be because the market for this is not that attractive or the result of these creams might not be very effective. Indian Skin-cream Market Study 4 of 17
  • Segmentation  Phase     of life-wise Baby creams (Johnson baby creams, Pigeon, The Body Shop) Teenage (Clean & Clear, Vicco etc.) Middle-aged ( Ponds, Lakme, OLAY, KRACK etc.) A Concise diagram showing various types of segmentation and the prominent brands in each segment is shown in the following slide. Indian Skin-cream Market Study 5 of 17
  • Segmentation Price-wise • Low priced (Vicco Creams, Dabur, Boroplus etc.) • Medium priced (Nivea, Parachute, Himalaya, Ponds, Lakme etc.) • High priced (Neutrogena, OLAY, L’Oreal etc.) Phase of lifewise Gender-wise • Male specific (Nivea-Men, Fair & Handsome, OLAYMen, Garnier-Men etc.) • Female specific (Ponds, Lakme, Lotus, OLAY, CavinKare etc.) • Both (Vaseline, Nivea, Clean & Clear, Garnier etc.) • Baby creams (Johnson baby creams, Pigeon, The Body Shop) • Teenage (Clean & Clear, Vicco etc.) • Middle-aged ( Ponds, Lakme, OLAY, KRACK etc.) Ingredient-wise • Organic (Himalaya, Lotus, Vicco) • Chemically extracted (Ponds, Lakme, Lotus, OLAY, CavinKare, Nivea, Garnier etc.) Indian Skin-cream Market Study 6 of 17
  • Procter & Gamble  The only brand under P&G in the skin-cream market is:  OLAY - (Launched in India in Aug,2007) Indian Skin-cream Market Study 7 of 17
  • OLAY – Start young Stay young  OLAY, a $2+ billion brand globally, launched it’s products in India in August,2007  India’s Anti-aging market was Rs60 Cr in 2007  OLAY’s main competitor is “Ponds” by HUL Indian Skin-cream Market Study 8 of 17
  • Comparison - Positioning  OLAY’s Positioning:    OLAY positioned itself in the beginning as an “Anti-ageing” cream that has been innovated on the basis of research. Its tagline was “Start young, Stay young”. (It’s ad explained all the reasons for an aging appearance in the face and presented OLAY’s cream as a solution) As OLAY introduced more products, it changed its tagline to “Love the skin you are in” Ponds’ Positioning:    Ponds was revamped into the market right before P&Gs launch of OLAY Ponds was positioned as a quick anti-ageing solution (launched as a competition to OLAY) It launched Ponds Gold Radiance as a premium anti-ageing cream priced similar to OLAY. Indian Skin-cream Market Study 9 of 17
  • Comparison - Product  OLAY’s Product OLAY launched its “Total Effects – Anti-aging” cream after a research on 6000 women aged between 30~60 of different ethnic groups.  OLAY also studied its initial customers and came to the following conclusions:  Users of OLAY are mostly working women who tend to be in a hurry to the office  Climate of India is too humid and would create a discomfort because of applying creams Following these, they decided to launch OLAY anti-aging soaps too.   Ponds’ Product  Ponds was very similar to OLAY’s product. Indian Skin-cream Market Study 10 of 17
  • Comparison - Price  OLAY’s Pricing:    It is priced high and deemed a premium status right from launch “OLAY Total Effects” 50gm package costs Rs599 (At the time of launch) Ponds’ Pricing:  It is also highly priced and enjoys a premium status  It is the most expensive cream of HUL’s skincare portfolio Indian Skin-cream Market Study 11 of 17
  • Comparison - Distribution  OLAY’s Place:    The products of the brand are available mainly in premium retail outlets and salons It used P&Gs existing distribution channel and had separate channel for catering salons Ponds’ Place:   It was very similar to OLAY’s. But Ponds did not focus on B2B trades like Salons HUL’s distribution is very much spread than P&G, but since the product is a premium type, it does not enjoy its advantages in the rural areas. Indian Skin-cream Market Study 12 of 17
  • Comparison - Promotion  OLAY’s Promotions  Its media advertisements involved celebrities like Kajol, Sushmita Sen, Madhuri Dixit etc.      All these actresses are mid-aged. This depicts the product clearly to the middle-aged women in India As it is in the premium segment, use of a Bollywood celebrity in the middleage group clearly makes it an aspiration for the consumer In spite of the various products other than just anti-ageing, they stuck to similar kind of ads that appeal the mid-aged segment OLAY also used the social media sites like Twitter and Facebook to promote its product. Ponds’ Promotions   Its ads also starred similar actresses (Karishma Kapoor) Though Ponds delayed a little in the social media activity, it did eventually follow and catch up (mainly YouTube ads) Indian Skin-cream Market Study 13 of 17
  • OLAY – According to our segmentation  Price-wise:   Gender-wise:     It initially targeted only women With its recent launch of OLAY-Men, it would also target men Hence, it would be Unisex Ingredient-wise   High priced premium with its prominent competitor as “Ponds” of HUL Chemically extracted Phase of life – wise:  Middle-aged right from its launch Indian Skin-cream Market Study 14 of 17
  • Ponds – According to our segmentation  Price-wise:   Gender-wise:   Its totally female centric as its brand has been so since its inception days (more than 2 decades) Ingredient-wise   High priced premium with its prominent competitor as “OLAY” of P&G Chemically extracted Phase of life – wise:  Middle-aged right from its launch Indian Skin-cream Market Study 15 of 17
  • P&G – SWOT in skin-cream market STRENGTH WEAKNESS • First to target the market of “Anti-ageing” creams. • Strong distribution network of P&G to tap into metro and tier 1&2 cities • No variety in product (Product width) • As it is targeting the middle-aged, its Customer Lifetime Value is lower OPPORTUNITIES THREATS • Development along with its international brand products • It can diversify its range of products into various categories • New entrants like ITC (probably) • Natural substitutes • Brand image of existing competitor – Ponds Indian Skin-cream Market Study 16 of 17
  • Conclusion  As a result of our study of the market and the subsegment “Anti-ageing” which constitutes to 10% of the total skin-care market, we also derived in the following data:    OLAY : 36.7% Garnier : 18.9% Ponds : 16.5% Source : E.T (based on data of September 2010) Indian Skin-cream Market Study 17 of 17