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Sales research paper considering whether Fogg should expand to
Philippines
Should	Fogg	enter	Philippine’s	market	to	increase	its	sales	in	a	stagnant	Indian	
market?	
Rationale
The market in India in terms of the deodorant industry has been very static with minimalistic
advancements. Fogg has been able to get the highest market share in the deodorant market in
India. It has maintained a growing chart throughout the years but due to less consumer
confidence Fogg expects it sales to get static in the near future. To avoid stagnancy, the company
is considering entering the Philippine’s market which has high consumer confidence and
therefore is an ideal market to enter.
Executive Summary
Vini, the parent company of Fogg is a multinational organization and is selling the product in
multiple Southeast Asian countries and is the market leader in the deodorant segment in India.
With the deodorant market not seeing dynamic potential in these countries, Fogg visions the
sales of the product to become stagnant therefore Fogg is considering to expanding in new
overseas market such as the Philippines. Thus this report focuses to answer:
Should Fogg enter Philippines market to increase its sales in a a stagnant Indian market?
The methodology used while making this report includes interviewing several people from the
firm like the Managing Director along with the Vice president of the sales department to take
under consideration their main concerns and visions for the company’s growth. The secondary
research that was conducted was analysis of the Indian deodorant market and its future
projections.
Keeping in mind the primary and secondary research the conclusion turns out to be that Fogg
should infect expand their market in the near future to accomplish their desires. This conclusion
was made through analyzing the situation through business tools like SWOT analysis and force
field analysis.
Introduction
Vine cosmetics the parent company of Fogg is a multinational company carrying out its
operations
in several south east Asian countries. Being of an Indian origin, Fogg started its operations from
India itself in the year 2010, after its success in its home country Fogg decided to go
international and sell their product in the SARC and GCC countries gaining popularity there as
well.
“No gas” was the USP of Fogg and it gained a lot of popularity for that reason as it was the
market pioneer in the segment, but soon after it started facing a lot of competitions. Just after two
years of its launch local and international players started launching products very similar to
Fogg. Companies like HUL, ITC and Manure introduced their products in the segment therefore
creating a lot of competitiveness within the market Fogg has been able to become the market
leader in the industry but has exhausted the existing market in India and other countries that it
supplies its product to and therefore is considering the options of exporting to another country.
This thesis will contain careful consideration of the question to the question that should Fogg
enter a new overseas market in order to gain more sales or not.
Main findings and analysis
Primary research finding-
Vine cosmetics the parent company of Fogg is a multinational company carrying out its
operations in several south east Asia countries. From my Primary data I have come to know
about the sales of the product in the market. Fogg is performing great in the Indian market and
has had a growing sales chart ever since it has entered the industry. Dip am Patel, the managing
director of the firm explained the exact reasons as to WHY the Indian market is not responding
to deodorants in India. He explained that even though the deodorant industry is a 2500 crore
industry in India which seems like a large number, and it is, the market has been stagnant since 2
years with minimal growth. This affects the growth of all the companies within the industry
because they need to get into heavy competition in order to increase sales as there are no increase
in the number of customers. Therefore new companies entering the industry can be a problem
because it will decrease the sales of the existing companies by some percentage. As to the reason
why the number of the customers are not increasing he had a very simple explanation that
starting price of the deodorants is approximately 200 ropes which the Indian mass is reluctant to
buy due to no incremental growth in the disposable income of the Indian households. With just
12% household penetration in India, companies struggle to gain more customers. While other
FMCG brands can get away with this problem through introducing smaller sized packaging it is
not feasible to do so for the deodorant companies.
Vice president of the sale department, Raju Ayer also gave me a brief of the turnover of Fogg in
the past which has been 500 crores. Which was also very important to help me decide if they had
enough revenue to go to an overseas market.
Secondary research finding-
With the secondary data I have come to know about the market shares of various deodorant
companies in India.
This information tells us that Fogg is the market leader in the segment and has already gained
adequate amount of customers in the Indian market and has been trying to gain more customers
but is falling short due to ample competitors and therefore is co
Secondary data like business articles and economic data of the countries has helped me widely to
understand the reason as to why fogg would want their products to be sold in the Philippines.
Philippines is known to be the best market for personal care industry. A reliable source of
consumer behavior has written “With increasing sophistication when it comes to Filipino
consumers’ personal care and hygiene, made possible by the favorable economic conditions, the
performance of deodorants had no way to go but higher. In 2016 various players took advantage
of this opportunity and launched new ground-breaking products that left consumers astonished.”
Other reports also claim that Confidence among Filipino consumers continues to be the highest
in Southeast Asia and second in the world, edging up two points to a score of 119 in the first
quarter of 2016, according to the latest Nielsen Global Survey of Consumer Confidence and
Spending Intentions. Further, eight in 10 of Filipino respondents (81%) perceive their personal
finances to be in good/excellent state over the next 12 months compared to 56% global average.
More than half of Filipino respondents (52%) also believe that it’s a good time to buy.
market	share	
fogg	 wild	stone axe engage
FORCE FIELD ANALYSISFORCE FIELD ANALYSIS an influential development Force field
analysis in social science. It provides a framework for looking at the factors that influence a
situation, originally social situations.
The driving forces overpower the restraining forces as, if the decision was made it would gain
substantial advantages to the firm in terms of revenue as well as brand recognition. The company
would also benefit from increased brand value due to international awareness and popularity,
therefore gaining a competitive edge over the other competitors.
The disadvantages include the obvious risk of investing the companies hard earned revenue into
a new country which can go either ways, though according to my research there are higher
chances of success for a deodorant company to gain popularity in Philippines but the chances of
failure always remain. Along with that entering a new market would mean that they will need to
cut down revenue for the Indian market and slow down with marketing in India which shouldn’t
cause a huge havoc as fogg is an established company has a brand value but due to increasing
amount of competitors it needs to fully aware of the danger that it poses. Other reasons that could
prevent Fogg to make this decision is that the established competitors in Philippines might be a
reason of great uncertainty.
This method that has been employed requires full participation from the organization and can be
disadvantageous if the whole organization is not involved it can have less accurate information
and can lead to wrong information. Even though special care has been taken to involve a lot of
individuals from the organization for accurate results.
SWOT ANALYSIS-
STRENGTH
Brand recognition
Brand image of “value for money “
Increasing sales figure
More revenue
More ROI
WEAKNESS
Risk of entering a new market
Expense on heavy marketing
Time wasted on brand recognition
Establishing the sales and distribution
channels from scratch
SWOT analysis is a process that identifies an organization's strengths, weaknesses, opportunities
and threats.
The obvious strengths that Fogg would benefit from would be its image of providing the
customer with a product that they feel is worth their money. More revenue and increasing sales
figure is the main reason for Fogg to make this decision.
Weakness that Fogg will face is the risk. The amount of money and time required to enter a new
market is also huge and can disturb the company.
The opportunities of this is that it will gain a new customer base, increasing world recognition
etc. The threats that pose this decision is the revenue lost on execution of the decision. And the
possibility of change in taste of the customers.
Even though SWOT analysis is a very easy way to understand the business problems but the
limitation to it is that it fails to provide alternative decisions and cant produce a lot of
information.
ANSOFF MATRIX-
OPPORTUNITY
New customer base
Increase in sales revenue
Worldwide recognition
Increase in brand value
THREATS
Competitors in the existing market
Change in taste of the deodorant users
Revenue lost on execution
Fogg will be using market development to achieve its goal to increase their sales. The market
development strategy entails finding a new group of buyers for an existing product. This will be
the best option for the company because it has made enough efforts to reach out to the customers
in India and therefore has gained the achievable amount of customers. Product development is
not what Fogg has in mind right now as it would cost fogg a ton of money, research and time.
And due to time constrains this option also doesn’t make sense for the company. Therefore
diversification is also cancelled out. Consequently to increase the sales of Fogg, they must use
market development.
Ansoff matrix allows us to analyze the product we are dealing with along with that it can also be
used to lay out better strategies for the firm though it is only used as a theoretical model and is
difficult to make an accurate result out of it.
Overall the analysis shows that it would be better for all the stakeholders if Fogg expanded in the
Philippines market. The management will gain more revenues therefore more profit which is
always beneficial, even in the long term it will be a better off decision as once the customers in
that country are well versed with the products the customer loyalty increases and therefore Fogg
will gain a better sales revenue in the future as well. The customers will be more aware about the
brand due to this and even have more confidence in it.
CONCLUSIONS
The conclusion to the question that was posed earlier is inclining towards the decision Fogg
should enter Philippines with the motive of increasing their sales. With careful considerations via
figures and prediction it is highly unlikely for Fogg to increase their customer base in India, and
due to the intense competition in the market it is very difficult for Fogg to increase their market
share in the existing market. Therefore expanding their business to Philippines where the
economy is better than India and other countries Fogg is currently selling to would positively
affect their sales figures, due to a different and more supportive customer behavior the product is
highly likely to be popular. Though due to their already existing huge deodorant market, which is
known to be very mature and competitive.it is very much possible that they face intense
competition and might have to work hard on their pricing as well as marketing strategy. A
successful business is never made without risks and therefore Fogg should take the chance to
expand into Philippines.
References and bibliography
http://www.business-standard.com/article/company/wild-stone-topples-hul-s-axe-in-deo-market-
114072800004_1.html
http://www.reportlinker.com/p0136219/Deodorants-in-the-Philippines.html
http://www.nielsen.com/ph/en/insights/news/2016/philippine-consumer-confidence-still-a-
bright-spot-among-emerging-markets-in-southeast-asia-in-q1-2016.html
http://www.trade.gov/industry/materials/AsiaCosmeticsMarketGuide.pdf
http://www.rappler.com/business/features/139006-men-personal-care-products-growth
http://www.business-standard.com/article/company/wild-stone-topples-hul-s-axe-in-deo-market-
114072800004_1.html
	
Appendices
Questionnaire	
Interview with Managing Director-
Which countries are you selling Fogg in?
We are selling Fogg in various south east Asian countries, our main market right now is India
and UAE.
What is your main goal for fogg right now ?
Our main goal as of now is to make actions to increase our sales in the future, because we have
projected it might get stagnant if we don’t make any actions.
What actions have you thought of making to achieve this goal?
We have thought about expanding our business to another country
Which country do you think is the best suitable for expansion and why?
We think that Philippines is the best market to expand, as the personal care in the country is
booming.
Why do you think your sales in India will get stagnant over the years?
I think that due to the economic conditions and the mindset that the consumers have. Also due to
intense competition it becomes hard to get more customers.
Do you think that the established companies of Philippines will be a problem for fogg?
Yes, I do believe that there might be a lot of competition for this industry specially but through
effective marketing we can always make our way to the customers.
Do you think it will require a lot of your revenue to do this?
I do understand that starting to sell in a new country can be really expensive but we have enough
revenue to cover for it. And taking under consideration the fact we have high chances of gaining
way more revenue than we have a possibility to lose.
Why do you think the Philippines market will be better than the Indian market?
Philippines market will be better because of the difference in the consumer behavior between the
countries. It is better that you collect some secondary data on this topic because I cant tell you
the exact figures, but I will tell you that the market there can be really beneficial to us due to
their economic conditions and consumer confidence being high.
Interview with the vice president of sales department
How do you think it is possible for you to be the market leader in the industry?
Fogg has stuck to the customers because of the idea of “value for money” in India the customers
think a lot before buying personal care products and don’t buy products that will not “last” long
or have as much impact. Therefore we have marketed and priced Fogg according to the wants
and the needs of the masses which is why we have gained so much popularity.
How do your current sales figure look?
Ever since we introduced Fogg in the market it has been seeing an increase in sales every year
and we are very happy to see that and try our best to be able to see that in the future as well.
What are your future projections about the sales of Fogg?
We are thinking that we are looking at a stagnating sales figure in the future if we talk
exclusively about India.
Can you tell us why do you think the sales will become stagnant?
Yes, it is because with the years the competition is increasing but the number of customers that
should increase with it is not seeing much difference and therefore it becomes very difficult to
catch up to that and keep am increasing sales figure.
Why do you think you want to increase the sales of Fogg
The sales figures of Fogg right now are growing but soon as we have predicted it is going to get
stagnant which is obviously not a good sign, therefore we need to take some action starting now
so that our future looks brighter.
Do you think in efforts to increase the sales in Philippines the sales in India will go lower than
you would want to?
We are aware that entering a new market will require abundance of revenue and time but because
of Fogg’s popularity in India we don’t expect the sales figures to drop down more than what is
natural.

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Sales research paper considering whether Fogg should expand to Philippiness

  • 1. Sales research paper considering whether Fogg should expand to Philippines Should Fogg enter Philippine’s market to increase its sales in a stagnant Indian market? Rationale The market in India in terms of the deodorant industry has been very static with minimalistic advancements. Fogg has been able to get the highest market share in the deodorant market in India. It has maintained a growing chart throughout the years but due to less consumer confidence Fogg expects it sales to get static in the near future. To avoid stagnancy, the company is considering entering the Philippine’s market which has high consumer confidence and therefore is an ideal market to enter. Executive Summary Vini, the parent company of Fogg is a multinational organization and is selling the product in multiple Southeast Asian countries and is the market leader in the deodorant segment in India. With the deodorant market not seeing dynamic potential in these countries, Fogg visions the sales of the product to become stagnant therefore Fogg is considering to expanding in new overseas market such as the Philippines. Thus this report focuses to answer: Should Fogg enter Philippines market to increase its sales in a a stagnant Indian market? The methodology used while making this report includes interviewing several people from the firm like the Managing Director along with the Vice president of the sales department to take under consideration their main concerns and visions for the company’s growth. The secondary research that was conducted was analysis of the Indian deodorant market and its future projections. Keeping in mind the primary and secondary research the conclusion turns out to be that Fogg should infect expand their market in the near future to accomplish their desires. This conclusion was made through analyzing the situation through business tools like SWOT analysis and force field analysis. Introduction
  • 2. Vine cosmetics the parent company of Fogg is a multinational company carrying out its operations in several south east Asian countries. Being of an Indian origin, Fogg started its operations from India itself in the year 2010, after its success in its home country Fogg decided to go international and sell their product in the SARC and GCC countries gaining popularity there as well. “No gas” was the USP of Fogg and it gained a lot of popularity for that reason as it was the market pioneer in the segment, but soon after it started facing a lot of competitions. Just after two years of its launch local and international players started launching products very similar to Fogg. Companies like HUL, ITC and Manure introduced their products in the segment therefore creating a lot of competitiveness within the market Fogg has been able to become the market leader in the industry but has exhausted the existing market in India and other countries that it supplies its product to and therefore is considering the options of exporting to another country. This thesis will contain careful consideration of the question to the question that should Fogg enter a new overseas market in order to gain more sales or not. Main findings and analysis Primary research finding- Vine cosmetics the parent company of Fogg is a multinational company carrying out its operations in several south east Asia countries. From my Primary data I have come to know about the sales of the product in the market. Fogg is performing great in the Indian market and has had a growing sales chart ever since it has entered the industry. Dip am Patel, the managing director of the firm explained the exact reasons as to WHY the Indian market is not responding to deodorants in India. He explained that even though the deodorant industry is a 2500 crore industry in India which seems like a large number, and it is, the market has been stagnant since 2 years with minimal growth. This affects the growth of all the companies within the industry because they need to get into heavy competition in order to increase sales as there are no increase in the number of customers. Therefore new companies entering the industry can be a problem because it will decrease the sales of the existing companies by some percentage. As to the reason why the number of the customers are not increasing he had a very simple explanation that starting price of the deodorants is approximately 200 ropes which the Indian mass is reluctant to buy due to no incremental growth in the disposable income of the Indian households. With just 12% household penetration in India, companies struggle to gain more customers. While other FMCG brands can get away with this problem through introducing smaller sized packaging it is not feasible to do so for the deodorant companies. Vice president of the sale department, Raju Ayer also gave me a brief of the turnover of Fogg in the past which has been 500 crores. Which was also very important to help me decide if they had enough revenue to go to an overseas market. Secondary research finding- With the secondary data I have come to know about the market shares of various deodorant companies in India.
  • 3. This information tells us that Fogg is the market leader in the segment and has already gained adequate amount of customers in the Indian market and has been trying to gain more customers but is falling short due to ample competitors and therefore is co Secondary data like business articles and economic data of the countries has helped me widely to understand the reason as to why fogg would want their products to be sold in the Philippines. Philippines is known to be the best market for personal care industry. A reliable source of consumer behavior has written “With increasing sophistication when it comes to Filipino consumers’ personal care and hygiene, made possible by the favorable economic conditions, the performance of deodorants had no way to go but higher. In 2016 various players took advantage of this opportunity and launched new ground-breaking products that left consumers astonished.” Other reports also claim that Confidence among Filipino consumers continues to be the highest in Southeast Asia and second in the world, edging up two points to a score of 119 in the first quarter of 2016, according to the latest Nielsen Global Survey of Consumer Confidence and Spending Intentions. Further, eight in 10 of Filipino respondents (81%) perceive their personal finances to be in good/excellent state over the next 12 months compared to 56% global average. More than half of Filipino respondents (52%) also believe that it’s a good time to buy. market share fogg wild stone axe engage
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  • 5. FORCE FIELD ANALYSISFORCE FIELD ANALYSIS an influential development Force field analysis in social science. It provides a framework for looking at the factors that influence a situation, originally social situations. The driving forces overpower the restraining forces as, if the decision was made it would gain substantial advantages to the firm in terms of revenue as well as brand recognition. The company would also benefit from increased brand value due to international awareness and popularity, therefore gaining a competitive edge over the other competitors. The disadvantages include the obvious risk of investing the companies hard earned revenue into a new country which can go either ways, though according to my research there are higher chances of success for a deodorant company to gain popularity in Philippines but the chances of failure always remain. Along with that entering a new market would mean that they will need to cut down revenue for the Indian market and slow down with marketing in India which shouldn’t cause a huge havoc as fogg is an established company has a brand value but due to increasing amount of competitors it needs to fully aware of the danger that it poses. Other reasons that could prevent Fogg to make this decision is that the established competitors in Philippines might be a reason of great uncertainty. This method that has been employed requires full participation from the organization and can be disadvantageous if the whole organization is not involved it can have less accurate information and can lead to wrong information. Even though special care has been taken to involve a lot of individuals from the organization for accurate results. SWOT ANALYSIS- STRENGTH Brand recognition Brand image of “value for money “ Increasing sales figure More revenue More ROI WEAKNESS Risk of entering a new market Expense on heavy marketing Time wasted on brand recognition Establishing the sales and distribution channels from scratch
  • 6. SWOT analysis is a process that identifies an organization's strengths, weaknesses, opportunities and threats. The obvious strengths that Fogg would benefit from would be its image of providing the customer with a product that they feel is worth their money. More revenue and increasing sales figure is the main reason for Fogg to make this decision. Weakness that Fogg will face is the risk. The amount of money and time required to enter a new market is also huge and can disturb the company. The opportunities of this is that it will gain a new customer base, increasing world recognition etc. The threats that pose this decision is the revenue lost on execution of the decision. And the possibility of change in taste of the customers. Even though SWOT analysis is a very easy way to understand the business problems but the limitation to it is that it fails to provide alternative decisions and cant produce a lot of information. ANSOFF MATRIX- OPPORTUNITY New customer base Increase in sales revenue Worldwide recognition Increase in brand value THREATS Competitors in the existing market Change in taste of the deodorant users Revenue lost on execution
  • 7. Fogg will be using market development to achieve its goal to increase their sales. The market development strategy entails finding a new group of buyers for an existing product. This will be the best option for the company because it has made enough efforts to reach out to the customers in India and therefore has gained the achievable amount of customers. Product development is not what Fogg has in mind right now as it would cost fogg a ton of money, research and time. And due to time constrains this option also doesn’t make sense for the company. Therefore diversification is also cancelled out. Consequently to increase the sales of Fogg, they must use market development. Ansoff matrix allows us to analyze the product we are dealing with along with that it can also be used to lay out better strategies for the firm though it is only used as a theoretical model and is difficult to make an accurate result out of it. Overall the analysis shows that it would be better for all the stakeholders if Fogg expanded in the Philippines market. The management will gain more revenues therefore more profit which is always beneficial, even in the long term it will be a better off decision as once the customers in that country are well versed with the products the customer loyalty increases and therefore Fogg
  • 8. will gain a better sales revenue in the future as well. The customers will be more aware about the brand due to this and even have more confidence in it. CONCLUSIONS The conclusion to the question that was posed earlier is inclining towards the decision Fogg should enter Philippines with the motive of increasing their sales. With careful considerations via figures and prediction it is highly unlikely for Fogg to increase their customer base in India, and due to the intense competition in the market it is very difficult for Fogg to increase their market share in the existing market. Therefore expanding their business to Philippines where the economy is better than India and other countries Fogg is currently selling to would positively affect their sales figures, due to a different and more supportive customer behavior the product is highly likely to be popular. Though due to their already existing huge deodorant market, which is known to be very mature and competitive.it is very much possible that they face intense competition and might have to work hard on their pricing as well as marketing strategy. A successful business is never made without risks and therefore Fogg should take the chance to expand into Philippines. References and bibliography http://www.business-standard.com/article/company/wild-stone-topples-hul-s-axe-in-deo-market- 114072800004_1.html http://www.reportlinker.com/p0136219/Deodorants-in-the-Philippines.html http://www.nielsen.com/ph/en/insights/news/2016/philippine-consumer-confidence-still-a- bright-spot-among-emerging-markets-in-southeast-asia-in-q1-2016.html http://www.trade.gov/industry/materials/AsiaCosmeticsMarketGuide.pdf http://www.rappler.com/business/features/139006-men-personal-care-products-growth http://www.business-standard.com/article/company/wild-stone-topples-hul-s-axe-in-deo-market- 114072800004_1.html Appendices Questionnaire Interview with Managing Director- Which countries are you selling Fogg in? We are selling Fogg in various south east Asian countries, our main market right now is India and UAE. What is your main goal for fogg right now ? Our main goal as of now is to make actions to increase our sales in the future, because we have projected it might get stagnant if we don’t make any actions.
  • 9. What actions have you thought of making to achieve this goal? We have thought about expanding our business to another country Which country do you think is the best suitable for expansion and why? We think that Philippines is the best market to expand, as the personal care in the country is booming. Why do you think your sales in India will get stagnant over the years? I think that due to the economic conditions and the mindset that the consumers have. Also due to intense competition it becomes hard to get more customers. Do you think that the established companies of Philippines will be a problem for fogg? Yes, I do believe that there might be a lot of competition for this industry specially but through effective marketing we can always make our way to the customers. Do you think it will require a lot of your revenue to do this? I do understand that starting to sell in a new country can be really expensive but we have enough revenue to cover for it. And taking under consideration the fact we have high chances of gaining way more revenue than we have a possibility to lose. Why do you think the Philippines market will be better than the Indian market? Philippines market will be better because of the difference in the consumer behavior between the countries. It is better that you collect some secondary data on this topic because I cant tell you the exact figures, but I will tell you that the market there can be really beneficial to us due to their economic conditions and consumer confidence being high. Interview with the vice president of sales department How do you think it is possible for you to be the market leader in the industry? Fogg has stuck to the customers because of the idea of “value for money” in India the customers think a lot before buying personal care products and don’t buy products that will not “last” long or have as much impact. Therefore we have marketed and priced Fogg according to the wants and the needs of the masses which is why we have gained so much popularity. How do your current sales figure look? Ever since we introduced Fogg in the market it has been seeing an increase in sales every year and we are very happy to see that and try our best to be able to see that in the future as well. What are your future projections about the sales of Fogg? We are thinking that we are looking at a stagnating sales figure in the future if we talk exclusively about India.
  • 10. Can you tell us why do you think the sales will become stagnant? Yes, it is because with the years the competition is increasing but the number of customers that should increase with it is not seeing much difference and therefore it becomes very difficult to catch up to that and keep am increasing sales figure. Why do you think you want to increase the sales of Fogg The sales figures of Fogg right now are growing but soon as we have predicted it is going to get stagnant which is obviously not a good sign, therefore we need to take some action starting now so that our future looks brighter. Do you think in efforts to increase the sales in Philippines the sales in India will go lower than you would want to? We are aware that entering a new market will require abundance of revenue and time but because of Fogg’s popularity in India we don’t expect the sales figures to drop down more than what is natural.