12. Purchases based on packaging and fragranceLow involvement product No brand loyalty Purchases based on packaging and fragrance Highest income group (>USD 1570) 3% Lower income group (< USD 700) 67%
13. BARRIERS TO GROWTH Raw material supply issues Import duty taxes on raw materials (25% to 90%) State-wise wages and labor laws Lack of R&D support Distributor Mark up of 50-60% Entry of MNCs Lack of Mktg & Advtg Bank loans not readily available for small scale industry
14. CURRENT MARKET PLAYERS Highly fragmented sector with 450 players NR Group’s CYCLE Brand Launched in 1948 Market leader in India with Current market share 8% Exports to 40 countries First to offer 3-1 aggarbatti / premium aggarbatti Exclusive showroom in Mumbai “ Fragrance world” Aggressive marketing campaign New brand ‘LIA’
15.
16. Establishing Perfume and Packaging centre for Mangaldeep brand
17. This tie up would provide employment for 10000 women
low involvement productimpulsive purchaseAgarbattis are low involvement products whose purchases are often impulsive. Since there are a few brands in this category, customers makes purchase based on impressive packaging, fragrance or price. Since the price is less, there is little scope for brand loyalty.
Import duty taxes on raw materials(25% to 90%) and finished goodsDifferent wage rate and labor laws across statesDemand of raw material and supply issuesLack of R&D support Mark up of 50-60% by distributorLack of Marketing and advertising Labor shortageBank loans are not readily available for small scale industry
