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ITC Interrobang
Team Winter is Coming from NMIMS Mumbai analyzed the deodorant industry and Engage brand. Key findings: 1) The deodorant market in India is growing at 14.7% annually and is projected to reach Rs. 3000 crore by 2017, dominated by men's deodorants. 2) A survey found Axe has the highest brand equity for men while Dove has it for women. Engage has low awareness and conversion rates. 3) Modern trade outlets lacked visibility for Engage due to lack of promoters and testers. Competitors like Nivea and Dove had greater visibility. 4) The team recommended social media campaigns, new product lines with benefits like whitening
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ITC Interrobang
- 1. Team Name –Winter is Coming | Campus Name – NMIMS Mumbai Mitesh Tanvi Apoorv Aashish 1
- 2. Industry Profile Primary Research CurrentFranchise Promotions Product Extension Category Extension Agenda
- 3. Industry Trends • Urbanconsumers who are well-aware of the use of deodorants have started looking for secondary benefits from their deodorants • Rural markets for deodorants growing at a staggering rate of 29% Deodorant Market • Market has grown from 500 crore to 2100 crore from 2009 to 2014 • Men deodorant form 70% of the category • 986 varieties of deodorants (from 500 brands) are sold across markets, with as many as 103 recent launches. • Illegal exports & counterfeits market is around 400 crore Projected marketsize for deodorants(crores) Year 2014 2015 2016 2017 Premium(%) 1.8 1.9 1.9 1.9 Mass(%) 98.2 98.1 98.1 98.1 2014 2015 2016 2017 Deodorant 2113.3 2407.1 2704.6 2990.4 2014-17 CAGR Deodrant Sprays 14.7 12.5 8.1 6.9 6.9 0 2 4 6 8 10 12 14 FOGG ENGAGE AXE WILDSTONE Fogg Engage Axe WildStone Volume 12.5 8.1 6.9 6.9 Market Share by Volume (%) Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension Expected growth rate for deodorants 1
- 4. Primary Research • Surveyof 200 consumers aged between 18-30. (120 men and 80 women) • Interview and observation at 30 GT and 10 MT in the urban and suburban areas of Mumbai. (Juhu, Versova, Lokhandwala, Malad) Secondary Research • Euromonitor reports for Personalcare, Lip Care, Fragrances in India, UK , US and China. • Newspaper articles • Competitor websites and social media • Deodorants Awareness Axe 100% Nivea 100% Dove 100% Fogg 88% Engage 70% 6% 31% 59% 4% Brand Loyal Set of Brands Love to Experiment Buy Anything 15% 33% 52% 0% Brand Loyal Set of Brands Love to Experiment Buy Anything 30 31 Female Male 25 37 88 12 27 Kirana Store Chemists Supermarkets Online Cosmetic Stores 21 21 70 20 78 Kirana Store Chemists Supermarkets Online Cosmetic Stores 3% 11% 71% 15% Once a week 2-4 days in a week 5 or more days Do not use a deodorant Reasons for not using a deodorant: • Harmfulto skin • Allergic • Contain Carcinogens • Do not last long • Prefer perfumes to deodorant ResearchMethodology& Key Findings Purchase Behaviour Purchase Points(in %) Purchase Behaviour PurchasePoints (in %) Willingness to Carry(%) Frequency of Use Men Men Women Women Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension 2
- 5. BRAND PERCEPTION Parameters: • Valuefor money • Variety • Packaging • Fragrance • Helpful in attracting opposite sex • Long Lasting AXE is having the highestbrand equity because of its perceived high value for money, variety and fragrance Thin line of differences in the deodorantcategory for female deodorants 0 1 2 3 4 5 Value for money Variety Packaging Fragrance Helpful in attracting… Long Lasting AXE FOGG ENGAGE 0 1 2 3 4 5 Value for money Variety Packaging Fragrance Helpful in attracting the opposite sex Long Lasting NIVEA DOVE ENGAGE BRAND SCORES • Rating on Importantfactors leading to purchasedecision • Scoreon these parameters to differentbrands • Axe is having highest Brand Equity in the men category • Doveis having the highest Brand Equity in the women category 2% 10% 34% 70% MEN 4% 13% 40% 73% WOMEN Awareness Consideration Purchase Loyalty PURCHASEFUNNEL • Low conversion fromawareness to consideration and from consideration to purchase • Only 1 of the 7 people awareof the brand chooseto buy engage while buying a deodorant • Need to increasethe POS activity to increasethe conversion fromconsideration to purchase MeasuringCurrent BrandEquity Benchmarking Purchase Funnel Men Women Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension 3
- 6. ModernTrade Absence of Promoters inoutlets in8 out of the 10 outlets visited Brands like Nivea & Yardley had promoters Product placement in lower racks 4th or the 5th shelf fromthe top Higher Secondary visibility for other brands Old-spice, Nivea & Axe (High Aisle visibility) Absence of Testersand the entire line at Supermarkets Testers available for competing brands (Yardley, Nivea, Axe) Lesser Front facing for engage inthe rack made the visibility cluttered Yardley, Nivea and Dovehad large no. of lines in the top-2 shelves GeneralTrade Designated shelf space, posters & shelf- strips by Old Spice in pharmacies Imported Deodorants displayed due to higher margins No Eye Level Visibility Secondary Visibility of Competitor Brands 2.33 3.72 4.39 3.67 2.83 0 1 2 3 4 5 Engage Axe Fogg Nivea Dove Engage Axe Fogg Nivea Dove • Ensuring Availability of Testers for all fragrances • Stationing Brand Promoters atoutlets • Increased Secondary Visibility • Also, helps display Men & Women Deodorants together RecommendationsVisibilityMatrix Market Observations& Visibility Industry Profile Primary Research Current Franchise Promotions ProductExtension Category Extension 4
- 7. Democratizationof Content Higher usergenerated content on the website with the help of a TwitterFacebook feed. Enabling them to rate and review the deodorants Increases engagement Drives moretraffic to website Fragrance Pyramid Top Note Heart Note Base Note Perceived immediately on application of a perfume Act to mask the often unpleasant initial impression Appears close to the departure of the middle notes. Gamification/Appification ofFacebook page Deodorant Recommender A Facebook game to get more user engagement PlayfulChemistry Asking fun questions about one’s partner & recommending a deodorant based on replies Campaign by Degree USA Industry Profile Primary Research Current Franchise Promotions ProductExtension Category Extension 5 Brand Strength consists ofBrand Differentiation and Brand Relevance. Brand Stature consists ofBrand Esteem and Brand Knowledge Axe, Dove and Nivea emerged to be in a leadershipposition primarily because of its high awareness and high perceived value GraduallyEngage is movingtowards the leadership position.However,there is a need to move it into the considerationset of the TG
- 8. Protect Your Partner| Break the Bottle Campaign Cheap, fake deodorants are infiltratingthe market that causes skin infections and diseases. Engage with the consumers and educate them regarding the real and fake deodorants through social media ExistingProblem Solution 1 Encourage them to “protect your partner” & make dents on the used bottles ! 2 Fact: Fake and imported deodorant market is 400cr Get Your Selfie Printed Campaign People love getting clicked and like sharing it on the social media Opportunity Online Campaign Integration with offline world Increased traction online + more visibility Strategy Methodology InstallationPhoto booths at high traffic areas and get their selfies printed #youmeengage 1 Instant rewards to the Target audience -Higher sharing and more mentions 2 3 Works on the principleof Geo-tags and Hash-Tags 4 Currently Microsite for youmeselfie has a little over 1500 uploadson the Micro-site which can be expanded through integration with the offline world. This ensures more visibilityand higher onlinetraction CurrentStatus SocialMedia Campaign Industry Profile Primary Research Current Franchise Promotions ProductExtension Category Extension 6 Incentivizing the user for sharing is necessary
- 9. Feature on YourFavourite Deodorant Campaign The brand takes the youmeselfie campaign further and awards the winning selfies to feature on the deodorant can. This enables brand recall. Also couples can relate to the product better as they can imagine themselves on the can. Fragrance Description As we observed the lack of testers impacted the purchase of the product. Therefore a short description like “Fruity Fresh” etc will accelerate purchase. Users will be able to understand the offering better even in the absence of a tester. General Trade Campaign Competitor Benchmarking Avoid Clutter! Ensure Shelf Space Visibility POS Material Such as posters, stickers & shelf strips. 8 out of 30 stores that we visited had competitorPOS material Enhance Visibility Packaging Campaign Modern Trade Campaign Opportunity Entice them! To capture the user’s attention while shopping by sending out an Engage Fragrance Automatic AirFresheners It had time released fragrances which can be set to the preferred fragrance level Engage Deodorantcan be used as fuel and can be an intelligent substitute for testers Cost 2500*Shelf Space* No. of Modern Trade Outlets Industry Profile Primary Research Current Franchise Promotions ProductExtension Category Extension 7
- 10. 0% 10% 20%30% 40% 50% Smaller Pack Size Colour Protection Alcohol Free Whitening 31% 40% 45% 38% 30% 38% 49% 50% Red- Men,Blue - Women 75% 25% Percentage of users that seek Additional Benefits Seek Additional Benefits Don't Seek Additional Benefits Urban middle class segment becomes more demanding….. Freshness 48 hours protection, whitening & alcohol free deodorants 48 hours protection, whitening & alcohol free deodorants Non English Inscriptions gives the feeling of imported product Anti-Bacterial Dermatological Tested Insights Brands havemoved a step ahead of unique valueproposition(USP) and now talk about extra value proposition(EVP) Additional benefitsthat Engage can give to their users to capture this market Results of PrimarySurvey Competitor Benchmarking Industry Profile Primary Research Current Franchise Promotions ProductExtension Category Extension 8 Whitening Alcohol Free Colour Protection Smaller Pack Size
- 11. Whitening Underarms -Indians obsessed with fairness -Risingconsciousness amongst the consumers -Growth of 30% of fairness industry -200 m market in India 45% of men and women prefer deodorants that claim to provide whitened underarms Dark underarms are repulsive. Engage’s playful chemistry resolves it Benefit Consumer Behaviour Reason to Enter Primary Survey Point of Difference Dove (HUL) Nivea (Beiersdorf) Competitors AlcoholFree Deodorants -Informed & Sensitive Consumers - Greater desire for products with less additives and more nutrition -67% of the women have sensitive underarmskin & are moving towards alcohol free deodorants 48% of men and women prefer deodorants that do not contain alcohol Positioning under “ProtectYour Partner” Campaign. Alcohol causes skin allergies & irritation Dove (HUL) Nivea (Beiersdorf) Cinthol (Godrej) ColourProtection Deodorants -Consumers care about their clothes - Patches or discolouration gives a bad impression -Certain deodorants causeyellow stains or discolouration of clothes especially in the underarm region. 39% of men and women are troubled by discolouration & staining -A Hygienefactor, Engage helps you to preventrepulsion -keeps your reds as reds and yellows as yellows Nivea (Beiersdorf) Small Pack Sizes – Compressed Deodorants People wants to carry deodorants to feel fresh and stay odour free 24X7 -Trial is also needed -Cheaper option Affordability, easeto carry, testpacks and environmentfriendliness 30% of the users would prefer smaller can sizes and would like to carry deodorants -PlayfulChemistry helps you too stay fresh and smell attractive at all times Nivea (Beiersdorf) Wild Stone Sure (HUL) Product Extensionvis-à-visCompetitors Industry Profile Primary Research Current Franchise Promotions ProductExtension Category Extension 9
- 12. Product Market Size (INR mn) GrowthRateCompetitors Competitor Positioning Point of Differentiation Cannibalization of exiting products of ITC Relevance Lip Balm 3000 25.00% 1. Vaseline (HUL) 2. Nivea (Beiersdorf) 3. Maybelline (L’Oreal) 1.Medical Benefits 2.Flavored Lip Balms 1.Complementary flavors for couples 2.KissableLips None Deodorant Wipes 225.6 23.80% 1. Fresh Ones (Tainwala Personal Care) 2. Kara (GrasimIndustries) 1.Generalpurpose wipes 2.FacialCleansing wipes 1.Deodorantwipes for instant freshness and confidence None InstantBreath Freshener Spray 1600* 28% 1. Spraymintt( Midas Care) 1. Be Kiss ready in 1 second 1. Differentflavours for men & women None Body Spray 775 34.80% 1.Fogg (Vini Cosmetic) 2.Body Shop (L’Oreal) 3.Fabindia 1.LastLonger 2.More perfumeper spray 1.Longer effectiveness 2. More perfumein a single spray, in addition to playful chemistry Medium Shower Gel 1426 20% 1.Axe (HUL) 2.Nivea ( Beiersdorf) 3.Adidas 1. Alternate to soap None, cannot leverageon the playfulchemistry image High Air Freshener 2700 30% 1.Aer (Godrej) 2.Ambi Pur (P&G) 3.Park Avenue( Raymond) 1.Loveis in the air 2. Change the air None, though this is related to fragrances, but shall lead to brand dilution None * Estimated Industry Profile Current Franchise Promotions Product Extension Category Extension 10
- 13. Company Market ShareAverage Price Positioning Vaseline 18% 150 Heal Chapped Lips Nivea 19% 136 Shiny Lips with fruity flavors Maybelline 13% 134 Moisturized and sun protection Targeted at couples engaging in playful chemistry, positioned as kissablelips Differentflavor for men & women e.g. Peach & Cream; Fire & Ice Company Market Share Average Price Positioning Tainwala 37.7% 38 General Purpose Wipes Grasim 6.9% 60 General Purpose Wipes Pristine Care 6.1% 65 General Purpose Wipes Easy to carry DeodorantWipes for Instantfreshness and Confidence Differentscented wipes for men & women which havesecondary benefits like anti bacteria , alcohol free, moisturizing Estimated Market Potential in Lip Balm Category( CAGR 25%) Year Market Size Conservative(5%) Optimistic (16%) 2014 3000.00 150.00 480.00 2015 3750.00 187.50 600.00 2016 4687.50 234.38 750.00 2017 5859.38 292.97 937.50 2018 7324.22 366.21 1171.88 EstimatedMarket Potential inWipes Segment (CAGR 23.8%) Year Market Size Conservative (5%) Optimistic(16.13%) 2014 225.60 11.28 36.39 2015 279.29 13.96 45.05 2016 345.76 17.29 55.77 2017 428.06 21.40 69.05 2018 529.93 26.50 85.48 Lip Balm Market Share Deodorant Wipes Market Share Company Market Share Average Price Positioning Midas Care 100% 69 Instant Kiss Ready EstimatedMarket Potential inInstant Breath Freshener (CAGR 28%) Year Market Size Conservative(20%) Optimistic(50%) 2014 1600.00 320.00 800.00 2015 2048.00 409.60 1024.00 2016 2621.44 524.29 1310.72 2017 3355.44 671.09 1677.72 2018 4294.97 858.99 2147.48 Mouth Freshener Market Share Complementaryflavorsfor men and women,e.g. Mint& Strawberry ; Clove & Chocolate ITC can leverage itswide network to distribute the product, currentlythe product is available only at cosmetic shops& chemistshops Industry Profile Primary Research Current Franchise Promotions ProductExtension Category Extension 11
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