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ReportsnReports | Home care in azerbaijan
 

ReportsnReports | Home care in azerbaijan

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The ongoing influx of new economy and standard-priced brands prevented substantial unit price increases in home care during 2010 and extended the range of product available. Azerbaijan’s ...

The ongoing influx of new economy and standard-priced brands prevented substantial unit price increases in home care during 2010 and extended the range of product available. Azerbaijan’s increasingly price sensitive consumers remained unwilling to switch to more expensive home care brands, eschewing innovative products for more basic alternatives. However, an increasing number of Azeri consumers seemed keener on maintaining the living standards to which they had become accustomed during the period immediately preceding the global economic crisis.

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    ReportsnReports | Home care in azerbaijan ReportsnReports | Home care in azerbaijan Document Transcript

    • ReportsnReports | Home Care in AzerbaijanRetail value sales speed up during 2010The ongoing influx of new economy and standard-priced brands prevented substantial unit priceincreases in home care during 2010 and extended the range of product available.Azerbaijan’s increasingly price sensitive consumers remained unwilling to switch to more expensivehome care brands, eschewing innovative products for more basic alternatives. However, anincreasing number of Azeri consumers seemed keener on maintaining the living standards to whichthey had become accustomed during the period immediately preceding the global economic crisis,and home care products benefited from this trend during 2010.Browse All : Market Research ReportInevitable price increases place pressure on consumer confidenceTowards the end of review period, the growing popularity of task-specific home care products withvalue added properties was fuelled by the rising demand for more convenient and effective products.Consumer interest in automatic detergents increased during 2010 in line with the improvedpenetration of washing machines and dishwashers in Azerbaijan and various in-store promotionalcampaigns. Consumer attitudes towards task-specific home care products continued to shift during2010 as Azerbaijanis were encouraged to forget the austerity resulting from the global economiccrisis, at least for a while.Multinationals continue to lead home care in AzerbaijanDespite the high penetration of domestic products in home care in Azerbaijan, multinational playerscontinued to lead home care in Azerbaijan during 2010. Procter & Gamble, Henkel, Unilever, SCJohnson & Son and Reckitt Benckiser remained the leading international players, and all of thesecompanies maintained a strong presence in home care in Azerbaijan during 2010. Those strongmultinationals have established themselves strongly in the country by offering a wide range ofproducts which are supported by aggressive advertising. This has led to a high level of brandrecognition among home care consumers in Azerbaijan. Furthermore, in 2010, the competitivelandscape in home care in Azerbaijan continued to be shaped by the activities of other severalinternational players from Russia, Turkey, Ukraine, Bulgaria, Poland and Germany. Domesticcompanies AzerPak MMC, Kuguar MMC, Zaman Muessissesi and Ilkin-A MMC continued to attempt toenlarge their value shares in home care by developing new formulations and fragrances. Domestichome care players continued to focus on being more innovative, copying the developments ofmultinationals throughout 2010.Grocery retailers among the key distribution channels in 2010Azerbaijani consumers typically purchase their home care products through a range of distributionchannels including independent small grocers, supermarkets/hypermarkets, kiosks, health and
    • beauty retailers and outdoor markets. In the country’s big cities, supermarkets/hypermarkets arepromoted as retail outlets which offer a wide variety of home care options at competitive priceswhich offer added convenience. In a number of outlets, supermarkets/hypermarkets remain the onlychannel through which consumers can expect to find premium home care brands.Good constant value sales prospects for home care during the forecast periodOver the forecast period, home care in Azerbaijan is expected to feature a number of categories withhigh constant value sales, especially laundry care, polishes, surface care and toilet care. Home carein Azerbaijan will continue comprising products which are an indispensable part of daily life in themajority of Azerbaijani households. This performance will be driven by Azeris becoming increasinglyconcerned about hygiene and sanitation, which will further fuel demand for home care products. Thistrend bodes well for on-going strong growth in task-specific home care products. Multinationalcompanies will continue to lead home care in Azerbaijan over the forecast period.Table of ContentsHome Care in Azerbaijan – Industry OverviewEXECUTIVE SUMMARYRetail value sales speed up during 2010Inevitable price increases place pressure on consumer confidenceMultinationals continue to lead home care in AzerbaijanGrocery retailers among the key distribution channels in 2010Good constant value sales prospects for home care during the forecast periodMARKET INDICATORSTable 1 Households 2005-2010MARKET DATATable 2 Sales of Home Care by Category: Value 2005-2010Table 3 Sales of Home Care by Category: % Value Growth 2005-2010Table 4 Home Care Company Shares 2006-2010Table 5 Home Care Brand Shares 2007-2010Table 6 Sales of Home Care by Distribution Format: % Analysis 2005-2010Table 7 Sales of Home Care by Category and Distribution Format: % Analysis 2010Table 8 Forecast Sales of Home Care by Category: Value 2010-2015Table 9 Forecast Sales of Home Care by Category: % Value Growth 2010-2015DEFINITIONSSummary 1 Research SourcesHome Care in Azerbaijan – Company ProfilesAtropatena Ltd in Home Care (Azerbaijan)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUND
    • PRODUCTIONCOMPETITIVE POSITIONINGSummary 4 Atropatena Ltd: Competitive Position 2010AzerPak MMC in Home Care (Azerbaijan)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 6 AzerPak MMC: Competitive Position 2010Improtex DC in Home Care (Azerbaijan)STRATEGIC DIRECTIONKEY FACTSCOMPANY BACKGROUNDPRODUCTIONCOMPETITIVE POSITIONINGSummary 8 Improtex DC: Competitive Position 2010Air Care in Azerbaijan – Category AnalysisHEADLINESTRENDSThe major trend in air care in Azerbaijan during 2010 was the rising interest in more versatileproducts. While many Azeri people consider air care products to be unhealthy, some are showingmore interest in more convenient and longer-lasting air care products. The advent of decorative aircare products is boosting the appeal of air care, mainly among young working women, who are themain targets of air care advertising. Taking full advantage of its first mover advantage, Azerbaijan’smost popular direct selling company, Oriflame, entered air care towards the end of review period byintroducing standard spray/aerosol air fresheners and candle air fresheners under the Oriflame HomeCollection brand. Oriflame’s beauty and personal care products are well known among theAzerbaijani population as the brand has been present in Azerbaijan for a very long time, whichmakes Oriflame’s air care products attractive in terms of convenience and economy.COMPETITIVE LANDSCAPESC Johnson & Son Inc remains the leading player in air care in Azerbaijan through its Glade and Oustbrands, which combined accounted for 31% of total air care retail value sales in 2010. The companywas active in shaping a strong image for its Glade range of air care products throughout the year.Television spots and other forms of advertising have been used to promote Glade for many years.Following in second position in 2010 was Reckitt Benckiser Plc, which held a 22% value sharethrough its Air Wick brand, although it experienced a slight decline in value share during 2010,largely due to ongoing price promotional campaigns. Year-round television advertising, pricepromotions and two refills together at a discounted price—which was a strategy employed in 2010 byboth SC Johnson & Son Inc’s Glade brand and Reckitt Benckiser’s Air Wick brand—boosted the
    • awareness of both of these leading brands. In addition, these two companies each invest heavily inresearch and development activities.PROSPECTSOver the forecast period, innovations in air care will focus on aerosol-free and propellant-freeproducts with improved fragrance longevity which can also be used for fabric furniture as well asbeing sprayed into the air. These developments are expected to become evident as early as 2011.The main drivers of innovation in air care are expected to be launched by well-established operatorssuch as Reckitt Benckiser and SC Johnson & Son Inc through their respective Air Wick and Gladebrands. Furthermore, it is expected that new packaging formats such as transparent bottles withtrigger spray devices will appear in air care in Azerbaijan during the first half of the forecast period.CATEGORY DATATable 10 Sales of Air Care by Category: Value 2005-2010Table 11 Sales of Air Care by Category: % Value Growth 2005-2010Table 12 Air Care Company Shares 2006-2010Table 13 Air Care Brand Shares 2007-2010Table 14 Forecast Sales of Air Care by Category: Value 2010-2015Table 15 Forecast Sales of Air Care by Category: % Value Growth 2010-2015Bleach in Azerbaijan – Category AnalysisHEADLINESTRENDSBleach in Azerbaijan continued to register positive growth in 2010 due to the increasing number ofbleach brands available. Many Azeri consumers believe that chlorine bleach provides superior levelsof hygiene than alternative home care products. However, many Azeri consumers are becomingincreasingly concerned about using home care products which contain chlorine as an ingredient, suchas bathroom cleaners, toilet care and colour-safe laundry bleach, because find chlorine as harmfulproduct for their skin.  COMPETITIVE LANDSCAPE Al-Afrah Detergents East Syria continued to lead bleach in Azerbaijan in 2010 with a 40% value share achieved through its Alafrah Bleacher brand. The company continues to benefit from the wide distribution coverage and low unit price of its Alafrah Bleacher brand, which makes it very popular.PROSPECTSOver the forecast period, bleach in Azerbaijan is expected to continue being positioned mostly foruse as a laundry care product. The leading producers are expected to continue launching new value-added products with new fragrances and organic raw materials in a bid to fuel further growth in thecategory.CATEGORY DATATable 16 Sales of Bleach: Value 2005-2010Table 17 Sales of Bleach: % Value Growth 2005-2010Table 18 Bleach Company Shares 2006-2010
    • Table 19 Bleach Brand Shares 2007-2010Table 20 Forecast Sales of Bleach: Value 2010-2015Table 21 Forecast Sales of Bleach: % Value Growth 2010-2015Dishwashing in Azerbaijan – Category AnalysisHEADLINESTRENDSThe most notable trend in dishwashing in 2010 was the rising demand for value-added properties inexisting products as Azerbaijanis sought more practicality and convenience in their dishwashingproducts. Features such as glass and silver protection and cold wash formulas continued to stimulatedemand during 2010. Dermatologically safe products also entered hand dishwashing in 2010,including Werner & Mertz GmbH’s Frosch Dishwashing Pearl Vitamin and Frosch Soda DishwashingLiquid.COMPETITIVE LANDSCAPEHenkel KGaA retained its leadership in dishwashing in Azerbaijan during 2010, with a value share of27%. The company’s Pril brand enjoys high consumer recognition thanks to various formulation sub-brands such as Pril Power Antijir and Pril Balzam, which are available in different package sizes of500ml and 1-litre. Henkel has managed to maintain its dominance by focusing mainly on developingits hand dishwashing products.PROSPECTSOver the forecast period, developments in dishwashing in Azerbaijan will be driven by new fragrancevariants such as avocado and almond extract, while gel and/or balsam formats will become morepopular as these are considered to be kinder to the skin. Previously launched dishwashing variantswith aromatherapy and fresh fragrances are expected to be re-launched over the forecast period asconsumers will seek relaxing and refreshing fragrances and properties in their dishwashing products.CATEGORY INDICATORSTable 22 Household Penetration of Dishwashers 2005-2010CATEGORY DATATable 23 Sales of Dishwashing by Category: Value 2005-2010Table 24 Sales of Dishwashing by Category: % Value Growth 2005-2010Table 25 Dishwashing Company Shares 2006-2010Table 26 Dishwashing Brand Shares 2007-2010Table 27 Forecast Sales of Dishwashing by Category: Value 2010-2015Table 28 Forecast Sales of Dishwashing by Category: % Value Growth 2010-2015Insecticides in Azerbaijan – Category AnalysisHEADLINESTRENDSDemand for more convenient, longer lasting, and less hazardous insecticides continued to increase inAzerbaijan during 2010. For large groups of the country’s consumers, quality remained the most
    • important factor when choosing insecticides, especially crawling insects such as cockroaches ascockroaches are considered to be the most disgusting types of pests which can invade one’s home.COMPETITIVE LANDSCAPEArnest OAO continued to lead insecticides in Azerbaijan during 2010 with a 20% value share due tothe enduring popularity of its Dikhlofos, Armol, Lira and Uboinaya Sila brands.PROSPECTSInsecticides in Azerbaijan is expected to increase in constant value at a CAGR of 6% over theforecast period, which is set to be faster than the 1% constant value CAGR recorded during thereview period. Sales of insecticides will be fuelled during the forecast period by the rising demand forinsecticides which are produced from non-hazardous components and materials and which providelong-lasting and effective protection from insects. It is also expected that Azeri consumers willcontinue to shift towards more convenient and sophisticated insecticides such as electric insecticides,insecticide baits and traditional spray/aerosol insecticides.CATEGORY DATATable 29 Sales of Insecticides by Category: Value 2005-2010Table 30 Sales of Insecticides by Category: % Value Growth 2005-2010Table 31 Insecticides Company Shares 2006-2010Table 32 Insecticides Brand Shares 2007-2010Table 33 Forecast Sales of Insecticides by Category: Value 2010-2015Table 34 Forecast Sales of Insecticides by Category: % Value Growth 2010-2015Laundry Care in Azerbaijan – Category AnalysisHEADLINESTRENDSTowards the end of review period, laundry care in Azerbaijan was marked by the rising popularity ofproducts which offer enhanced softening claims and fragrance longevity. These products weregenerally offered as new modified extensions of well-established brands such as Ariel 100% Etalon,Persil Gold Vernel Scan System Sorti Avtomat Intelletest, Bingo Avtomat Soda Effect.COMPETITIVE LANDSCAPEProcter & Gamble maintained its strong lead in laundry care in Azerbaijan in 2010, accounting for44% of total laundry care value sales. The company’s value share increased marginally during 2010.Procter & Gamble’s success in laundry care in Azerbaijan can be attributed to its wide product range,constant experimentation with the formulations of its products, its well developed brand portfolio andits huge investment in advertising. The company’s Ariel brand accounted for 12% of total laundrycare value sales in 2010, while its Tide brand accounted for 9% and Bonux a further 7%. Procter &Gamble supports all of these brands with regular new product launches and strong marketingcampaigns. Procter & Gamble was followed in second position by Henkel with a value share of 26%,while Unilever Group held third position with an 11% value share.PROSPECTSLaundry care is expected to increase in constant value at a CAGR of 2% over the forecast period,rising to AZN109 million by 2015. The growing penetration of automatic washing machines, rapid
    • urbanisation and the increasing interest of younger consumers in laundry care products, especiallyadded-value products, will continue to drive value growth in laundry care over the forecast period.CATEGORY INDICATORSTable 35 Household Penetration of Washing Machines 2005-2010CATEGORY DATATable 36 Sales of Laundry Care by Category: Value 2005-2010Table 37 Sales of Laundry Care by Category: % Value Growth 2005-2010Table 38 Sales of Laundry Aids by Category: Value 2005-2010Table 39 Sales of Laundry Aids by Category: % Value Growth 2005-2010Table 40 Sales of Laundry Detergents by Category: Value 2005-2010Table 41 Sales of Laundry Detergents by Category: % Value Growth 2005-2010Table 42 Laundry Care Company Shares 2006-2010Table 43 Laundry Care Brand Shares 2007-2010Table 44 Laundry Aids Company Shares 2006-2010Table 45 Laundry Aids Brand Shares 2007-2010Table 46 Laundry Detergents Company Shares 2006-2010Table 47 Laundry Detergents Brand Shares 2007-2010Table 48 Forecast Sales of Laundry Care by Category: Value 2010-2015Table 49 Forecast Sales of Laundry Care by Category: % Value Growth 2010-2015Polishes in Azerbaijan – Category AnalysisHEADLINESTRENDSTowards the end of review period, Azeri consumers turned to multi-purpose surface care solutions insearch of effective and cheap options to more expensive task-specific solutions. Among recent trendsin shoe polish is the growth in popularity of sponges soaked with neutral colour polish, which allowsconsumers to polish shoes without a necessity of use several different products, a shoe cream andvelvet fabric to polish a shoe.COMPETITIVE LANDSCAPEShoe polish manufacturer Cigir Kimya AS led polishes in 2010 with a 32% value share, followed bySC Johnson & Son Inc with a 29% value share and Empa Kimya TM with a 15% value share.PROSPECTSOver the forecast period, the rising demand for more sophisticated task-specific polishes is likely toboost growth in polishes. Therefore, the most important growth drivers are expected to be newproduct developments, especially in floor polish and furniture polish, as more Azeri people areexpected to switch to wood flooring.CATEGORY DATATable 50 Sales of Polishes by Category: Value 2005-2010Table 51 Sales of Polishes by Category: % Value Growth 2005-2010Table 52 Polishes Company Shares 2006-2010Table 53 Polishes Brand Shares 2007-2010Table 54 Forecast Sales of Polishes by Category: Value 2010-2015Table 55 Forecast Sales of Polishes by Category: % Value Growth 2010-2015Surface Care in Azerbaijan – Category Analysis
    • HEADLINESTRENDSSurface care in Azerbaijan was subject to greater demand for versatility towards the end of reviewperiod. On one hand, consumers—especially low-income consumers—sought to make savings oneach and every surface care purchase, which led to higher demand for task-specific products. On theother hand, the variety of different surfaces within a single household continued to boost thepopularity of multi-purpose brands, which created higher demand for better price/quality ratios.COMPETITIVE LANDSCAPEProcter & Gamble was the leading player in surface care in Azerbaijan during 2010 with a value shareof 22%. Procter & Gamble is the company behind some of the strongest brands in surface care suchas Comet and Mr Proper multi-purpose cleaners, both of which are heavily advertised on Azeritelevision. The high level of advertising and promotion undertaken for these brands continues toboost their performance in surface care. Followed in second position in 2010 was SC Johnson & SonInc with a 22% value share achieved through its Mr Muscle brand, while Unilever Group was thirdwith a 13% value share achieved through its Domestos brand. The success of these companies insurface care can be attributed to the fact that they offer wide product portfolios, are able to investlarge sums in advertising and promotion and have nationwide distribution coverage.PROSPECTSThe rising demand for specialised surface care products which developed during the review period isexpected to continue over the forecast period. Ongoing improvements in overall hygiene standards inAzeri homes and rising health awareness will drive growth in bathroom cleaners, window/glasscleaners, kitchen cleaners and oven cleaners over the forecast period.CATEGORY DATATable 56 Sales of Surface Care by Category: Value 2005-2010Table 57 Sales of Surface Care by Category: % Value Growth 2005-2010Table 58 Sales of Household Care Wipes and Floor Cleaning Systems by Category: Value 2007-2009Table 59 Sales of Household Care Wipes and Floor Cleaning Systems by Category: % Value Growth2007-2009Table 60 Surface Care Company Shares 2006-2010Table 61 Surface Care Brand Shares 2007-2010Table 62 Forecast Sales of Surface Care by Category: Value 2010-2015Table 63 Forecast Sales of Surface Care by Category: % Value Growth 2010-2015Toilet Care in Azerbaijan – Category AnalysisHEADLINESTRENDSThe prevailing trend in toilet care in Azerbaijan during 2010 was the sustained interest in in-cisterndevices, toilet liquids and ITBs as health and hygiene awareness fuelled the increasing demand forthese products. However, only those products which have added functionality such as pleasant andpowerful deodorising aromas and anti-bacterial features were in high demand among Azericonsumers.CATEGORY DATATable 64 Sales of Toilet Care by Category: Value 2005-2010Table 65 Sales of Toilet Care by Category: % Value Growth 2005-2010
    • Table 66 Toilet Care Company Shares 2006-2010Table 67 Toilet Care Brand Shares 2007-2010Table 68 Forecast Sales of Toilet Care by Category: Value 2010-2015Table 69 Forecast Sales of Toilet Care by Category: % Value Growth 2010-2015Latest Market Research Reports:The Outlook for Pharmaceuticals in North East AsiaEmerging Drug Delivery Technologies & Strategies – Players, Pipelines & PartnershipsConcentrating Solar (CSP) MarketWestern European Disposable Gloves MarketWorld Dynamic Publishing Solutions MarketU.S. Department of Defense: Unmanned Aircraft System Ground Control Stations and Data LinksAn Executive Analysis on Passenger Rail Rolling Stock and Seating Systems Market in the U.S.About Us:ReportsnReports is an online library of over 75,000 market research reports and in-depth marketresearch studies & analysis of over 5000 micro markets. We provide 24/7 online and offline supportto our customers. Get in touch with us for your needs of market research reports.Follow us on Twitter: http://twitter.com/marketsreportsOur Facebook Page: http://www.facebook.com/pages/ReportsnReports/191441427571689Contact:Mr. Priyank7557 Rambler road,Suite 727, Dallas, TX 75231Tel: + 1 888 391 5441E-mail: sales@reportsandreports.comhttp://www.reportsnreports.com