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how a new segment was created successfuly, beating all odds

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  1. 1. The Human Sewage Plant<br />
  2. 2. The Human Sewage Plant?<br />WHAT DO YOU SAY?<br />
  3. 3. <ul><li>The problem of body odor has been felt since the time man got civilized
  4. 4. The problem was addressed in India in different ways during different centuries
  5. 5. First came the sandalwood, then gulaabjal,then came the Itra
  6. 6. Even during the pre-liberalization period, the people used same old tactics
  7. 7. The only modern weapon they had was the Talcum powder or the Soap.
  8. 8. So, there was a void for a product that could fill in the gap in the market</li></ul>TACKLING THE PROBLEM OF BODY ODOUR<br />
  9. 9. THE GENERATION OF AN ENTIRELY NEW SEGMENT<br /><ul><li>Before the entry of Unilever into the Indian deodorant market under the brand name of Rexona, the market virtually did not exist.
  10. 10. The market was in its initial unstructured stage.
  11. 11. A few foreign brands were present in India, but their penetration was limited to the upper sections of the society only.
  12. 12. The market was flooded with the camouflage products.
  13. 13. Avoid was felt for an entirely new segment of products to fight body odor.</li></li></ul><li>THE UNILEVER ADVANTAGE<br />
  14. 14. <ul><li>Hindustan Unilever Ltd.(then called Hindustan Lever Ltd.), understood well that all that needed was to smell good.
  15. 15. The company found Indian market as a huge potential market, owing to its geographical position& high population.
  16. 16. The product was unknown to the Indian public at that time, so there was a need for customer education.
  17. 17. The condition was like a huge potential sleeping market.</li></ul>………CONTD.<br />
  18. 18. <ul><li>Anti-perspirentproducts did exist in the market, but they were not as efficient as deodorants.
  19. 19. The products available had either too strong odor, or too mild odor.
  20. 20. The main competitors that existed in the category of deodorants were mainly of foreign origin, & tapped the high end segments only.
  21. 21. The main players at the time were: “Copper”, “Fa” & “Old Spice”</li></ul>THE COMPETITION<br />
  22. 22. <ul><li>The customer was ignorant of “the need to smell good”. So awareness was needed to be created.
  23. 23. The average Indian customer was reluctant to adopt to new changes.
  24. 24. Though the targeted section was that of the Indian youth, but multi-generation approval was required.
  25. 25. Pricing, packaging & dispensing were a matter of concern. </li></ul>PROBLEMS DURING THAT TIME<br />
  26. 26. STRATEGIES EMPLOYED BY THE HINDUSTAN UNILEVER LTD.<br /><ul><li>The company decided to use the name “Rexona” for its deodorant products, which was a common name & was synonymous with soaps of the best quality, having a nice fragrance.
  27. 27. Packaging the product in two types of packings: push-up stick & pump spray.
  28. 28. These steps brought the prices down to Re1/gram.
  29. 29. As the common Indian consumer is price sensitive, the products were readily accepted in the market.
  30. 30. The marketing mix made the people realize that they need a deodorant.</li></li></ul><li><ul><li>The Indian customer was reluctant to acknowledge that he can have a problem of the body odor.
  31. 31. The marketing campaign was aimed at not to offend the customer, but to make him feel that it would be great for him if he uses the product.
  32. 32. The main aim of the company was to take the competitors head-on, with unmatched quality at an unbeatable price, i.e.the use of best cost strategy.</li></ul>THE MARKETING MIX<br />
  33. 33. <ul><li>The objective of all series of experiments was to make Rexona deodorants as affordable as possible.
  34. 34. The states of Tamil Nadu & Kerala were taken as the sample population.
  35. 35. The company launched 20gram sticks at Rs.21 per piece, & 5gm sticks at just Rs5.
  36. 36. The company also provided the customers with the cheapest aerosol deodorants, which none else was able to replicate.</li></ul>UNILEVER&apos;S EXPERIMENTS WITH DEODORANTS<br />
  37. 37. <ul><li>The company generated an entirely new segment of products.
  38. 38. The market has grown from nowhere in 1995 to 300 million in 2004, & is expected to touch 3169 million by the end of 2010.
  39. 39. People now prefer the use of deodorants, instead of the old method of using talc- soap mixture.</li></ul>…AND THE RESULTS<br />
  40. 40. <ul><li>The company Unilever, is the market leader in the deodorant market.
  41. 41. Axe, another brand of deodorants from Unilever, launched in 1999 is today the market leader.
  42. 42. Rexona is available into many variants for men & women.
  43. 43. The deodorant industry is today among the most evolving industries in India. </li></ul>THE CURRENT SCENARIO<br />
  44. 44. AND LASTLY…….<br />IT WON’T LET YOU DOWN<br />
  45. 45. YOU<br />THANK<br />