A Case for a new launch? Your client is one of India's oldest homegrown FMCG companies, TipTop Products. They have been key players in the Personal Care category for several decades, competing successfully with large multinational companies. They are currently present in the categories of soaps, shampoos, moisturizing creams, fairness products and talcum powder. They are focused in the northern and eastern parts of the country, although their products enjoy good distribution across India. Their products are popular both in urban (Tier 2) and rural areas. For the last 8+ quarters though, their growth has been stagnating. This is partly due to evolution of some of their key categories, as consumers seek other forms of Personal Care. TipTop's head of marketing has been studying this evolution of the market, and the changing consumer, and he feels that TipTop needs to revamp their product portfolio. He strongly feels that deodorants is a Personal Care category that TipTop needs to get into, because of its exploding growth and potential. Some of the other leaders at TipTop however, are not so sure. TipTop has hired you to help. Can you specifically answer these questions for them: 1. Should TipTop enter the Deodorants market? Would you look at a specific market segment or look at the overall market? Please provide your reasons based on the data provided. 2. If they choose to enter, what launch strategy would you recommend in terms of product type, distribution and marketing strategy? TipTop has provided some data for you to base your conclusions on. Please state what other types of data you might need.

1. Market Entry - Deodorants
Submitted by
Deepankar Boro

2. Contents
 Problem Statement
 Available Data
 Additional Data Required
 Tiptop’s Current Product Portfolio’s Assessment
 Deodorant Market Analysis
 Feasibility Analysis
 Way Forward
 Launch Strategy
 Product Type
 Distribution
 Marketing Strategy

3. Problem Statement
 Should TipTop enter the Deodorants market? Would
you look at a specific market segment or look at the
overall market? Please provide your reasons based
on the data provided.
 If they choose to enter, what launch strategy would
you recommend in terms of product type, distribution
and marketing strategy?

4. Available Data
 Current Deodorant Volume and Value
 Market share of top 4 brands and other brands
(volume and value)
 Numeric distribution of top 4 brands and other
brands (north, east, south and west zones)
 Category Penetration (men and female)
 Category Penetration according to age groups
 Category Penetration (urban and rural)
 TipTop’s current categories

5. Additional Data Required
 Volume Sales and Revenue data of all TipTop
brands across all categories for the past 5 years
 All competitor brands sales and revenue data
according to different categories and brands for the
past years
 TipTop brands consumer portfolio and segmentation
according to demographics (age, gender, region)

6. Tiptop’s Current Product Portfolio’s
Assessment
 It is very necessary to assess the current product
portfolio of TipTop to understand its positioning in the
market
 According to the given data, there is stagnant growth
across all TipTop categories for more than 2 years
 TipTop is currently present across the following
categories
 Soaps
 Shampoos
 Moisturizing Creams
 Fairness Products
 Talcum Powder

7. Tiptop’s Current Product Portfolio’s
Assessment
 Analyze the market growth for all competitor brands
of TipTop’s categories as well as its own brands for
the past 5 years
 Analyzing this data will allow us to check the brands
and categories which have grown in the past 2
years
 Analyze the market share of the leading brands and
its competitive differentiation with regards to TipTop’s
brands
 Analyze the reasons behind the stagnant growth of
TipTop’s brands
 Prepare counter-active measures to grow TipTop’s
brands

8. Deodorant Market Analysis
 The current size of deodorant market is $368 million
 Fogg is the market leader with 12.5% volume share
and 17.8% value share
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Volume Share (%)
Volume Share
Value Share
Among the given
brands, Fogg is the
only brand which has
higher value share
when compared to its
volume share

9. Deodorant Market Analysis
 Volume share between urban and rural market is
90% and 10% respectively
 The deodorants market is constituted of 69% male
deodorants and 31% female deodorants
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66
24 25
230
0
50
100
150
200
250
Value (in million $)
Value

10. Deodorant Market Analysis
 The category penetration stands at 35% overall
(38% male and 32% female), 21% rural and 48%
urban
 The below table shows the category penetration
based on various age groupsAge Group % Penetration
12 - 15 years 21%
16 - 20 years 48%
21 - 25 years 53%
25 - 31 years 45%
32 - 36 years 41%
37 - 42 years 23%
Above 42 years 12%

11. Deodorant Market Analysis
 The age group 21-25 years has the maximum
penetration (53%), followed by the age group 16-20
years
 The below table shows the numeric distribution for
some of the famous brandsNumeric distribution (all stores) North South East West Total
Engage 32% 29% 53% 36% 38%
Fogg 48% 41% 21% 42% 38%
Axe 38% 46% 35% 48% 42%
Wildstone 21% 31% 19% 32% 26%
 Axe has the maximum overall stores penetration at
42% followed by Fogg and Engage at 38%

12. Deodorant Market Analysis
 Looking at the numeric distribution of the top 4
brands, it can be analyzed that all the top 4 brands
are either aerosol based or spray based (Fogg)
deodorants
 People from age 16 – 36 years are the most ardent
users of deodorants, making us deduce that
teenagers studying in high school, doing their
bachelors or masters and adults in their early and
mid career level are mostly the ones using
deodorants
 Deodorants are mostly consumed by Urban users
and male users making us deduce that demand is
more in Urban areas for male users

13. Feasibility Analysis
 Deodorants would be a new segment to TipTop
 Deodorants are of various types such as Aerosols,
Roll-On, Gel Deodorants, Deo Stick, Body Spray,
etc.
 As analyzed in the previous section (Deodorant
Market Analysis), the top brands are mostly Aerosol
and Spray based deodorants
 Analyzing the current product portfolio of TipTop, we
can deduce that it might not have the capacity and
technical capabilities to manufacture aerosols, which
is required to manufacture deodorants

14. Way Forward
 Deodorants is an emerging segment and hence,
TipTop should definitely go ahead with launching
Deodorants
 TipTop would require to come up with a unique
selling proposition(USP) so as to differentiate itself
from other players in the market
 At the beginning, TipTop should target the urban
market, and launch the product in the northern and
eastern regions since they are better focused in
those regions. Gradually they can move to other
regions
 Assuming that TipTop brands are mostly used by
males, TipTop should target male users, also taking
into consideration that 69% of deodorant users are
males

15. Way Forward
 TipTop should target multiple age groups between 16
– 36 years, as the category penetration is significant
in this age group
 TipTop should be able to maintain the same brand
connect with its existing consumers through its
deodorants
 TipTop, being an old player would have a loyal
consumer base and some prominent brands
 The deodorant should be launched as a brand
extension of an already existing TipTop brand, as it
will allow consumers to connect with the new product
easily. For eg. Unilever launched Deodorant under
“Dove”, though it was basically a soap brand

16. Launch Strategy – Product Type
 The kind of product type would depend on the below
mentioned factors
 Existing manufacturing capabilities of TipTop, which would
allow TipTop to analyze cost efficiency measures to
manufacture a particular product type of deodorants using
its already existing manufacturing capabilities
 Volume share and revenue share of different product
types of deodorants which would help TipTop to analyze
the type of deodorant most used by consumers. For Eg.
Is Aerosol based deodorants more preferred or Spray
base deodorants?

17. Launch Strategy - Distribution
 The kind of distribution would depend on the below
mentioned factors
 Current numeric distribution of TipTop’s existing products,
will facilitate the distribution of TipTop’s deodorants across
various stores
 Number of distribution channels for already existing
TipTop’s products will broaden the spectrum of
deodorants distribution
 Urban population contributes to 90% of deodorants sales
volume and hence, should be the targeted area initially

18. Launch Strategy - Marketing Strategy
 TipTop should follow market penetration strategy, since
the market is highly fragmented. It should launch the
product with attractive promotions, product-bundling so as
to gain market penetration and consumer attention in a
short period of time
 TipTop should create awareness about the brand by
conducting promotional events, product trials, and
implementing ISPs(In-Store promoters)

19. Thank You