3. Industry Trends
• Urban consumers 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
• Survey of 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:
• Value for 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
in 8 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 user generated
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 Your Favourite 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)
GrowthRate Competitors 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 Share Average 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
