This document provides market research and recommendations for launching a new shampoo brand called "Super Shampoo" targeted at rural Indian markets. It summarizes that rural markets represent significant potential but require an understanding of consumer preferences and behaviors. The research found that rural consumers prefer smaller, affordable packaging and are influenced by television and word-of-mouth. It recommends that Super Shampoo position itself as a locally appealing brand, focus on herbal ingredients, and promote through television, celebrities, and word-of-mouth to succeed in the rural market.
Super shampoo products and the indian mass market case studyMustahid Ali
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Super shampoo products and the indian mass market case studyMustahid Ali
Super shampoo products and the indian mass market case study, their evolution, marketing strategy adopted by them, their up and downs , how they became successful, their swot analysis and how they overcome to worst situation.
Detergent Market in India as of 2015 (Surf Excel, Ariel, Nirma, Wheel, Tide, ...Arjun Parekh
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2) Nirma vs. Wheel,
3) Tide vs. Ghari
This .ppt originally contained video but I had to remove them due to size issues.
This presentation links all the above mentioned brands with Porter's 5 forces model and Porter's Generic Strategies.
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Mortein Vaporizer: What lies beneath Brand Positioning?
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Hari Panda, the brand manager of Mortein Vaporizer, could not keep his
The carbonated soft drink (CSD's) industry was dominated by Coca Cola and Pepsi vying for market share. The CSD organizations gained market share in the U.S. and in global markets extending their brands’ recognition and capturing sales from new markets. The shift in consumer beverage preference and the expansion into global markets proved to uncover new opportunities for growth and profitability. In addition the changes in the organizational structure of business for these companies have allowed them to sustain growth beyond CSD’s.
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3. Introduction
Suresh Venkataraman is a successful industrial marketer
in South India.
Fascinated by the power of consumer products in
“Rural Market”.
Decides to launch a new cosmetic product with a
brand named “Super Shampoo”
He wants to make this brand successful despite
some big players already ruling the market.
Not formally educated in management studies,
he does have adequate experience.
Financial muscles not very strong.
Decides to test waters through a survey.
This study is based in 2010.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
4. Indian Rural Market Scene
The market consisted of between 720 and 790 million
consumers with around 160 million households, and comprised
12.2 per cent of the world‟s population.
The market grew 25% in 2008 and was projected to be around
US$ 425 million in 2010; double the size of 2007.
FMCG category can be broadly split into household care,
personal care and food and beverages.
The FMCG market in India was estimated at between $15 B to
$18 Billion and likely to grow to US$33 billion by 2015.
57 per cent of these figures was contributed by rural India.
The growth of rural India in the contribution to FMCG sector is
evident from the fact that urban markets that were once 50 per
cent of School, New Delhi
29 per Raina; PGDM
Era Business total FMCG, had reduced to AJ/ Ajay Kas of 2010.2012-14
5.
6. BoP Market
75% rural and 25% urban.
25 years differential.
Lot of traction with big brands rushing in to encash.
Aim is to sell lower priced branded products.
Aspiration based communication adopted by many
brands.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
7. Changing Face of Rural India
Over last two decades: Percentage of BPL families declined from 46% to 27%
Rural Literacy level improved from 36% to 59%
42,000 Haats (periodic markets)
25,000 Melas (exhibitions)
7,000 Mandis (agri markets)
3,80,000 PDS outlets
32,000 Bank branches
DSCL Haryali stores
M & M Shubh Labh stores
TATA/Rallis Kisan Kendras
Escorts rural stores
Era Business School, New Delhi
Warnabazaar, Maharashtra (annualAJ/ Ajay K Raina; PGDM 2012-14
sale Rs 40 crore)
8. Consumer Insights
Rural India buys…….
Products more often (mostly weekly).
Buys small packs, low unit price more important than
economy.
In rural India, brands rarely fight with each other; they just
have to be present at the right place.
Many brands are building strong rural base without much
advertising support.
Fewer brand choices in rural: number of FMCG brand in rural
is half that of urban.
Buy value for money, not cheap products.
No longer a homogeneous mass.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
10. Food for thought
FOR
Mr Venkataraman
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
11. Benefit Based Segmentation: Shampoo
Biggest hair problem – Hair fall.
Anti-dandruff market – fastest growing.
Benefit segments: Cosmetics.
Anti-dandruff.
Herbal.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
12. Key Questions for Mr V.
How do the non-users perceive the category of
shampoos?
Are they only influenced by functional attributes?
Do they attach symbolic benefits to shampoo?
What attitudes are developed in users with low
incomes and where the key usage barrier is
affordability?
What would it take a new shampoo entrant to generate
likeability and persuade consumers to try the brand?
Era Business School, New Delhi
SURVEY
AJ/ Ajay K Raina; PGDM 2012-14
13. Survey: Terms of Reference
Sample : Females 18-50 years bracket
Non-user/ low frequency users.
Income below 75K and 75-150K.
Significant TV consumptions.
Sampling Unit : Households since incomes linked.
Sampling Frame : Gender, Age, Income, Consumption, Media.
Strata: Household penetration and category awareness.
Extent : Rural Karnatka (Bidadi, Hoskote and Jigani).
Technique : Probability sampling with random sampling.
External agency.
Note: In the region of interest, Clinic Plus (Cosmetic), H&S (AntiEra Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
dandruff) and Chick (Cosmetic) brands are already operating.
14. Respondents Background…..
Families of 4-5 members.
Husband, the main bread earner through farming, sales, factory
work etc.
Usually the wife between 25 and 40 years.
Low income households with aspirations and dreams to do big –
Wealth + Societal Respect.
Want to set examples and define lifestyles for their kind.
Women aspired to work.
Regular TV viewing – entertainment + informative.
Ads watched because of currency of issues; celebrities matter
but do not make reasons.
Radio also a favourite but print media generally not favoured
except fliers and job ads.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
15. ……Respondents Background
FMCG Buying Pattern: 2000-2500 for grocery + 500 for cosmetics, on an
average.
Grocery shops; usually on weekly basis.
Lady the decision maker.
TV, Word-of-mouth and In-store – in the order of
precedence.
Not averse to trials of new products but smaller
units preferred; mainly TV guided and through
Word-of-mouth.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
17. Attitudes, Interest and Opinions
Deductions: Influenced by TV (not in isolation for new products), friends and
shopkeepers.
Not hunting for information on beauty products.
Looking good and grooming are important.
Celebrities add trust and faith.
Way Ahead: Word-of-mouth is the most important; free trials, spot
promotions, higher visibility and higher incentives to retailers will
work.
Reliance on TV solely will not work.
be highlighted.
Era Benefit and New Delhi money need toAJ/ Ajay K Raina; PGDM 2012-14
Business School, value of
18. The Potential
Deductions: Vast potential available; 24%
usage.
High penetration but low PCI.
TV main player for category
awareness.
Huge tilt towards smaller
packaging.
Cosmetics
and
health
important; general aversion to
chemicals.
Price is important.
New products in small sizes.
Way Ahead………
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
19. Power of “S”
Primary SKU.
Invention of sachets
“revolutionized “ the
FMCG market.
It opened B2C untapped
market in rural areas.
Unaffordable products became
affordable for common people.
Luxury comes in “Sachets”.
Salience - Urban: Rural=10:90
(bottles:‟S‟).
99% of respondents have
preference for „S‟; Mr V may
have no choice!
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
20. Usage Issues
Cosmetics: Mr V has to concentrate on this issue
while promoting/marketing since it is the most
important one. Celebrities likely to prove cost
effective.
Health and dandruff : Such benefits need to be
highlighted.
Herbal: The product composition, if made
chemical free, will find more buyers.
Fragrance – flowery.
Era BusinessIt is aNew Delhi sensitive marketRaina; PGDM 2012-14
Cost : School, price
AJ/ Ajay K there.
21. Targeting Past Times
The survey shows the preference for the following past
times/interests among respondents: TV watching – need for electronic ads; possibility of
exploring local media/ cable networks to reduce
costs..
Spending time with friends- „word of mouth‟ factor.
Shopping – In store angle + awareness of channel
partner + Incentives + Visibility.
Awareness of key segments, like educated and
socially inclined people will act as a force multiplier.
Use of haats, mandis and melas to improve visibility
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
and availability.
22. Focusing on the Belief System
The following pattern emerges wrt shampoo:
Importance of looking good- promote „look-good; feel good‟.
Celebrities matter – endorsements.
Advice of friends and relatives- word of mouth.
Lady power (the decision maker) – target audience.
Retailer‟s advice is important – awareness and incentives.
Fear of chemicals – herbal composition.
If liked, will repurchase – once accepted, will have loyal customers‟;
So, value for money, coupled with family well-being needs to
communicated.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
23. Recommended Product Levels
• Core Benefit-To clean hair
• Basic Product- Shampoo in a
sachet; inexpensive and
convenient.
• Expected Product – Beautiful,
strong and long hair.
• Augmented Product – No
harmful chemicals; herbal/
natural based.
• Potential ProductConditioner enriched,
colour/ henna friendly.
Era A Staple Convenience Product
Business School, New Delhi
Conditioner
Less chemicals
Beautiful hair
Convenient & Cheap
WASH
HAIR
AJ/ Ajay K Raina; PGDM 2012-14
24. Likely Product Differentiation
Form- Distinct shape of sachet.
Features – Herbal but high on cosmetic value; conditioner later.
Customization – Fragrance, quantity (eg one time use pouches
for family.
Performance Quality – Aim for graduation to superior from
high since target is cost sensitive.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
25. Positioning
• Super Shampoo must position itself as the rural
brand that has local appeal.
• It must give the feel of a star image to users.
• It may use herbal product (shikakai) as its main
ingredients.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
27. Why Super Shampoo?
Product
Super shampoo may be
based on “Shikakai”.
Characteristics of producing
more foam.
Flowery Essence (a variety of
it) with focus on shine and
texture.
Era Business School, New Delhi
Price
To target lower income
group.
“More for Less” Strategy.
50% more for ₹1.
Competitive Price comparing
with other brands.
AJ/ Ajay K Raina; PGDM 2012-14
28. Continued…..
Place
Untapped “rural market”.
160 million households.
Major player of economic growth.
Business of around US$ 425
million.
The key in rural markets lies in
availability and, thus, distribution
is very important.
Use of existing channels like
haats, mandis, rural malls and
retailers would work for Mr V.
Festivals and celebrations.
Era Business School, New Delhi
Promotion
“Super” the name itself.
TV has been indicated as the
main influencer in the survey.
Following “Word-Of- Mouth”
Strategy is also
likely to
work, as per survey.
Indirect Advertisement by
others like retailers.
AJ/ Ajay K Raina; PGDM 2012-14
29. Recommended Strategies
Promotion
•Regional actor as brand ambassador
•Television (Local cable operators can be cost effective)
•Radio
•Newspaper
•Free Satches
•Word of Mouth
Keeping it Simple
•
•
•
•
Available
Affordable
Acceptable
Awareness
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
30. th
5
P- Packaging
„S‟ stands favoured.
Help in reducing cost.
Attractive Packaging.
Easy recognition.
Easy to carry & transport.
Waste disposal.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14
31. Conclusion
“Value for Money”
proposition
Supported by distribution
penetration
TV and “Word-of Mouth”
publicity.
More for less strategy.
Era Business School, New Delhi
AJ/ Ajay K Raina; PGDM 2012-14