Branding

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  • The Indian baby care market has substantially grown over the past few years and caught the attention of international players. It showed impressive performance last year (2009), which indicates to the nonexistence of economic slowdown effects.
    Aggressive marketing strategies and consumer acceptance of branded premium baby care products (especially in baby food and skin care segments) will enable the industry to register a CAGR of more than 11% during 2010-2013.
    The total market for baby care products in India is estimated at INR 15 bn in 2008. It is expected to witness a CAGR of 17% and reach INR 28 bn by 2012. Market comprises of four segments Baby Food, Skin Care, Toiletries and Diapers, and Hair Care. Baby care market in India is overwhelmingly dominated by the unorganized sector.

  • Branding

    1. 1. Bubbles Soft & smooth Presented By:  Jitesh Jain  Sonali Vaze  Darshana Chaube  Heena Maheshwari
    2. 2. Flow of the presentation 1 • Indian baby care market 2 • Our Competitors: J & J baby soap 3 • ITC: Bubbles 4 • Brand building & PLC 5 • Media Planning & Financials
    3. 3. Indian Baby care segment India represents a high potential and untapped market for baby care products Vast population base in the age group of 0-4 years and parent’s preference It is seen that aggressive marketing strategies will enable the industry to register a CAGR of more than 11% during 2010-2013 The total market for baby care products in India is estimated at INR 15 bn in 2008. It is expected to witness a CAGR of 17% and reach INR 28 bn by 2012.
    4. 4. Major competitors in the market Major Competitors Johnson & Johnson 70-75% Emami Wipro 7-8% Mysore Sandal Baby soap Dove Sparsh Dettol
    5. 5. Our competitor Johnson & Johnson Baby Soap
    6. 6. Johnson & Johnson It was Mr. Patrick Whaley who set the foundation. Launched Johnson’s Baby cream and Prickly Powder. In Sep. 1957, a new company Johnson & Johnson India Ltd. was created and registered. Recently this company celebrated its 50 years in India.
    7. 7. J & J Baby Soap Johnson’s baby soap is a pioneer in baby care It has no strong perfumes, no coloring agents or any harsh chemicals It has gained the trust of mothers for their babies
    8. 8. Our Product Bubbles
    9. 9. Introduction to Bubbles Baby soap • Milk lotion, Natural palm extracts (gentle washing base), Cold Cream (glycerin, beeswax and castor oil), Ceramides (key lipids of the skin) Baby liquid soap • Milk Lotion, Saponified Organic Coconut & Olive oils (w/ retained Glycerin), Organic Hemp Oil, Organic Jojoba Oil, Citric Acid, Vitamin E, Water. Mechanical Specification of our product
    10. 10. Technical Specification The Kettle Process • Boiling • Salting • Pitching
    11. 11. Properties: Baby Soap For gentle cleansing of the face and body of newborns, & babies with dry, dehydrated skin or skin subject to external aggressions. Moisturizes and strengthens the barrier function of the skin. Softens skin and compensates for the drying effects of hard water. Contains Cold Cream (glycerin, beeswax and Ceramides), which creates a "shield" on the skin. Hypoallergenic - specially formulated to minimize the risk of allergic reactions.
    12. 12. USP Hypoallergenic 100% natural made of organic oils
    13. 13. Place Bubbles
    14. 14. Places Infant Growth Maturity Major cities like Mumbai, Delhi, Chennai, Lucknow, Bengaluru, Kolkatta Major cities + Tier I & Tier II cities (PAN India) Venture new markets abroad after PAN India
    15. 15. Promotion Bubbles
    16. 16. Branding Elements
    17. 17. Brand Symbol • Brand Name + Logo
    18. 18. Brand association & Image • Brand Association: Pamper your child with motherly care • Brand image: – Brand Association: Pamper your child with motherly care – Brand Personality: Gentle & mild on every type of skin
    19. 19. Brand Relationship • Brand Relationship: – Brand Image – Brand attitude: Soft & Healthy
    20. 20. BRAND IDENTITY PRISM – BABY SOAP Physique Relationship Reflection Personality Culture Self-image Soft Caring Friendly Natural Motherly care Natural Trust Babysoap Soft colors- Pinkand Blue Oval shaped soap Indian Soft skin Down to earth Appealing Acceptable Inspiring Pure Hypo allergenic Inspires mothers to take care of their babies and make them feel special every day Brand Identity Prism
    21. 21. Resonance •Motherly care. Feelings •Fun, security, warmth, caring Judgments •Quality soap- superior, trustworthy Performance: Hypo allergenic Gentle soap with cold cream nutri-protective 100% natural made from organic oils. Imagery: 0 to 3 yrs( infant & babies) Personality: Soft, smooth, gentle, applicable for all skins Category identification: FMCG Needs satisfied: Baby soap Sub-dimensions of brand building
    22. 22. Segmentation, Targeting, Positioning & Differentiation Assuming India's population in 2010 to be 1.2 billion – With birth rate of : 21.72 births/1,000 population – Babies in the age group of 0-3 years= 0.021*3*1.2 billion= 7.56 Cr – Number of population using baby products: Assuming 50 % – Potential market: 3.78 Cr – Target group: 8 % of potential market 31.5 lakhs
    23. 23. PLC Strategies Infant Growth Maturity 0 to 1.5 yrs 1.5 to 5 yrs 5 yrs & Above Awareness ( Place + Promotion) 1. Pediatricians, Doctors, Hospitals (Top hospitals & govt hospitals)Medical shops( Apollo, Religare etc) 2. TV Ads 3. Print Ads 1. TV Ads 2. Print Ads 3. Outdoor Ads 4. Pediatricians, Doctors, Hospitals, Medical shops throughout India 1. TV Ads 2. Print Ads 3. Outdoor Ads 4. Pediatricians, Doctors, Hospitals, Medical shops throughout India Expenditure On brands Planned Budget Very high investment initially on media & sales promotion and later max. dealer promotion & sales promotion Expenditure to max sales velocity in marketing/ production Marketing Mix Testing of communication (advertising) Product Improvement Pseudo skimming with changes in packaging. Intro of large packs
    24. 24. Packaging Small Packs of 50 gms & 100 gms Small Packs of soap + New Product (liquid soap)100 ml & 250 ml Introduction of large packs along with small packs Large packs of soap: 150 gms Price 50gms= Rs 15 100 gms= Rs 29 Soap: •50 gms= Rs 15 •100 gms= Rs 29 Liquid hand wash: •100 ml: Rs 25 •250 ml: Rs 59 Soap •50 gms= Rs 15* •100 gms= Rs 29* •150 gms=Rs 38* Liquid Hand wash •100 ml: Rs 25* •250 ml: Rs 59* Pricing strategy Penetration Achieve ROI (low pricing) Price normalizes Growth strategy Market penetration Product development Market development ( Venture new markets) Business Strategy Attack Invest & maintain Harvest Distribution Exclusive Intensive Intensive
    25. 25. Financials
    26. 26. Salvage Value Cost Of plant 500 L 50 L Installation Cost 100 L Total 600 L Working Capital 125 L 495 L Initial Outflow -725 L 545 L Manufacturing Capacity 90L units SP Avg(15,29) Rs 22 VC 57% Contribution 43% FC Per Anum W/o Depriciation 300 Financials : (All Figs in Lacs)
    27. 27. Market Share projection: 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Year 1 2 3 4 5 6 7 8 Cap Utilisation % 35 45 55 65 75 85 95 100 Sales Volume Units (Lac) 31.5 40.5 49.5 58.5 67.5 76.5 85.5 90 Year On year Growth -- 29% 22% 18% 15% 13% 12% 5% Total Market (Growing at 5 %) 378 408 429 450 473 496 521 547 Market Share 8% 10% 12% 13% 14% 15% 16% 16%
    28. 28. Contribution Per unit: Selling Price 22 Manufacturing Expenses @ 40% -8.8 Dealer Commission @ 2% -0.44 Distribution Cost @ 5% -1.1 Retailer commission @ 10% -2.2 Contribution @43 % 9.46
    29. 29. Media Planning: Year 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Marketing Expense 1 2 3 4 5 6 7 8 % wise 15% 13% 11% 10% 8% 8% 8% 8% in Rs Lac 74.25 90.09 108.9 148.5 158.4 158.4 158.4 158.4 ADVERTISING 60% 60% 50% 50% 50% 50% 50% 50% TV 60 60 50 50 50 50 50 50 Print 20 15 20 20 20 20 20 20 OOH 20 25 20 20 20 20 20 20
    30. 30. Calculations: 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Sales In RS in Lacs 693 891 1089 1287 1485 1683 1881 1980 WC @25% of Sales 173.25 222.75 272.25 321.75 371.25 420.75 470.25 495 -FC 300 300 300 300 300 300 300 300 -Vc @ 57% 395.01 507.87 620.73 733.59 846.45 959.31 1072.17 1128.6 Marketing Expence 103.95 115.83 119.79 128.7 148.5 168.3 188.1 198 -sales promotion Expenditure 100 75 40 40 50 40 40 40 Dep @ 25% WDV 180 135 101.3 75.9 57.0 42.7 32.0 24.0 PBT -26 27 110 161 197 258 313 337 -Tax @ 40% -10 11 44 64 79 103 125 135 PAT in Lacs -15.576 16.38 65.8 96.4 118.2 154.9 187.7 202.5 PV of Inflows @ 14% 101.9 78.4 79.4 72.7 65.3 67.5 68.0 261.8 Total of PV ( Lacs) 794.9 Net PV 69.9 ROI -2% 2% 9% 13% 16% 21% 26% 28%

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