Vasocare Lip Balm Market Study: Competitor Analysis & Growth Opportunities
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This document provides a case study analysis of the lip care market in India and key competitors within this space. It analyzes the market share and growth factors. It also examines the consumer buying process and challenges in the segment. Finally, it provides a brand analysis of Vasocare and competitors like Vaseline, Nivea, and Maybelline on their marketing strategies across digital media like websites, search engine optimization, pay-per-click advertising, and social media presence and engagement.
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Vasocare Lip Balm Market Study: Competitor Analysis & Growth Opportunities
- 1. Vasocare & its competitors:A case study
- 2. What is the purpose of the audit? • Measure the current market scenario •The principal factors that are driving the growth of the market •To figure out the factors influencing consumer buying process •Identifying challenges that the lip care segment is facing right now •To study how the competitors are approaching the market • To map the opportunity areas
- 3. Predominantly a female product; But it has now become a mass product Classifying Buyers
- 4. •Lip balms have become a basic necessity •Consumers mostly opt for branded products nowadays •Consumers have become brand loyal •They keep an eye on new product launches •Are influenced by peers, sometimes resulting in the buying decision The Buyer’s Psyche
- 5. The current market scenario
- 6. Market Share Nivea Vaseline Maybelline Others Source: http://timesofindia.indiatimes.com/business/india-business/Nivea-Fogg-pip- HUL-in-lip-balms-deos/articleshow/30308835.cms 19% 18% 13% 50% Lotus Lip Balm/ The Body Shop Lip Balm/ Himalaya Lip Balm/ Neutrogena
- 7. • HUL claims to be the market leader in the lip care market on an all-India basis as well as in urban market, but if one were to look at the top 400 towns, Nivea has displaced HUL's Vaseline from its No. 1 slot •According to Nielsen data, in India's 400-plus towns, which includes both general trade and modern trade, Nivea had a share of nearly 19%, followed by Vaseline at 18% and Maybelline at around 13% in the year 2013 •Maybelline Baby Lips became the 3rd largest brand in the category within a year of its launch in 2012 •HUL has a large penetration in large and small towns and rural areas whereas Nivea and Maybelline are still trying to penetrate these markets The current market scenario
- 8. Principal factors driving the growth of the market
- 9. •There is a rise in consumption of men’s skin care products, which were earlier considered purely the woman’s domain •The urban population with increasing purchasing power is the major force driving demand for cosmetics and personal care products •Petroleum Jelly & Lip Balm- No more a ‘winter only’ product
- 10. Identifying challenges that the lip care segment is facing right now
- 11. •Lip care products have a seasonal aspect and sales tend to increase in the winter, when consumers feel the need to protect their lips from harsh conditions •Consumer brand loyalty is the main reason for the dominance of certain brands such as Beiersdorf's NIVEA, Unilever's Vaseline, and L'Oreal's Maybelline in the Lip Care market •Once consumers are contented with a product, the probability to try a different brand is less •Brand loyalty is a threat for small players and new entrants of the market Challenges
- 12. Factors influencing consumer buying process
- 13. •Price •Brand •Product features •Packaging •Promotion schemes •Influence of advertising •Trial of new products
- 14. For Men •Tv advertisements •Hoardings and print advertisements •Shelf display in stores •Friend’s recommendation Sources of information for latest products in personal care
- 15. For Women •Advertisements •Friends •Window shopping •Word of mouth Sources of information for latest products in personal care
- 16. For Men: •As and when required For women: •For regular use-usually pre-decided Frequency of purchase
- 17. Men: •Neighborhood shops/General store/Chemist/Super market Women: •Direct marketing companies (Amway/Oriflame/Avon) •Chemist store •Neighborhood general store •Shopping Malls Where do they generally buy personal care products?
- 18. For Men •Recommendation of friends who are users •Brand name •Suitability for need (skin type) •Inclination towards herbal products •Price Factors taken into consideration while buying any personal care product
- 19. For Women •Recommendation of friends who are users •Brand name •Fragrance •Expiry date •Long lasting feature Factors taken into consideration while buying any personal care product
- 20. Competitor analysis of brands
- 21. VASELINE
- 22. •Product of Hindustan Unilever Limited, India’s largest fast moving consumer goods company •One of the most trusted skincare brands in India • Founded in 1870 •Product range: Vaseline Jelly, Vaseline Lip Therapy, Vaseline Men, Vaseline Intensive care Vaseline
- 23. Advertisements •All the ads talk about taking care of your body/ nourishing lips
- 24. •Vaseline has always been synonymous with Winter for a majority of people •It has come up with a variety of products in the last few years •Mostly famous for its Petroleum Jelly •Brand positioning has completely changed; Vaseline is no more a “winter only” product •Recent TV commercials are all about getting smoother and softer lips by using Vaseline; Taking care of your body by using Vaseline Findings
- 25. NIVEA
- 26. •Nivea is a German brand marketed in India By Nivea India Pvt. Ltd •Company was founded on March 28th, 1882 •One of the world’s largest skincare brand Nivea
- 27. Advertisements •Ads are not directly talking about taking care of chapped lips unlike Vaseline •Moral: Live life with a smile
- 28. •Specialty: Products carry SPF ratings and claims of UV protection and anti-oxidant activity •Nivea ‘s marketing campaign “Kiss and Make up” for its line of lip balm products in India which focused on young consumers became very popular in Social Media platforms •Vast product range, packaging is very attractive •Recent TV commercials: 100 years of skincare for life; Nivea Men-It starts with you Findings
- 30. •Owned by L’OREAL •Founded in 1915 •Advertising slogan: Maybe she’s born with it. Maybe it’s Maybelline Maybelline Baby Lips
- 31. Advertisements •Ads are much more vibrant and attractive in comparison to the others •Moral: Get soft lips like a baby by using Maybelline Baby Lips
- 32. •Baby lips became the third largest brand in the category within a year of its launch •Previously, lip care were considered as boring personal care products; the whole concept changed with the launch of Maybelline New York’s ‘Bay Lips’ is September 2012 •Lip balm became a fun product with tint and bright colors •Recent tv commercials are doing extensive promotion of Maybelline’s Colossal Kajal Findings
- 33. VASOCARE
- 34. •Product of Emami Limited, one of India’s top FMCG companies •Brand ambassador: Bipasha Basu •They entered the Petroleum Jelly market in the year 2008 •The range includes Vasocare Petroleum Jelly, Vasocare Lip Balm, Vasocare Lip moisturiser, Vasocare Total Moisturizing lotion Vasocare
- 35. Bipasha Basu promotes Emami Vasocare at Phoenix Mall
- 36. Advertisements •Moral: Get lips like Bipasha Basu by using Vasocare Herbal Lip Balm •Ads are very simple and direct; Pictures are not that great; Their tagline “GET LIPS LIKE BIPS’ is straight and lacks a zing.
- 37. •The market share in India for lip care is Rs 56 Crore; With the launch of Vasocare, Emami aims to capture 7% of the market share •They don’t do any on-ground activities; Contests are conducted in Social media platforms •Most of their advertising is concentrated on Electronic media •In a crowded and competitive skin care market, Vasocare needs to bring out a new formulation to stand out from the crowd •Need to give the products a more modern look •TVC’s are all about their herbal products Findings
- 38. BRAND ANALYSIS Keyword Vaseline Nivea Maybelline Vasocare Brand Slogan Soothe and relax with Vaseline Intensive Care 100 years skincare for life Maybe she's born with it. Maybe it's Maybelline. Sanjeevni Sparsh ki Present Brand Ambassador Shraddha Kapoor Parineeti Chopra Alia Bhatt Bipasha Basu Current ads are talking about: Take care of your body/Get smooth and nourished lips using Vaseline Ads are not directly talking about taking care of chapped lips unlike Vaseline Ads are vibrant and attractive; Ads are all about get smooth lips as soft as a baby by using Maybelline's baby lips Ads are directly promoting their products; natural and organic products are the best Key Learning
- 39. Digital Media
- 40. SEO Keyword Website Performance Vaseline Nivea Maybelline Vasocare Lip care products in India Not in the first 5 pages Page 2; Rank 5 Page 2; Rank 7 Page 2; Rank 9 Page 1; Rank 4 Page 2; Rank 2 Not in the first 5 pages Lip balms in India Not in the first 5 pages Page 3; Rank 4 Page 1; Rank 5 Not in the first 5 pages Favourite lip balm Not in the first 5 pages Not in first 5 pages Page 3; Rank 2 Not in first 5 pages * In most of the cases top search result is either Maybelline or Nivea This slide has the SEO ranking, for identified keywords, of all the competitors in the study
- 41. SEO • SEO is very poor for the lip care segment in India; When searched with keywords like favourite lip balm/popular lip balms in India/lip balm nothing crops up
- 42. TVC
- 43. VASELINE Source: https://www.youtube.com/watch?v=MIF7IAgkgU4 Moral: Smoother, softer lips; Lips Don’t Lie Har Pal Khayal Source: https://www.youtube.com/watch?v=0Awb1yIX0oY
- 44. NIVEA Source: https://www.youtube.com/watch?v=rfHFBZ4NRUA Moral: 100 years skincare for life Nivea Men-It starts with you Source: https://www.youtube.com/watch?v=Cr6IXVqRg9A
- 45. MAYBELLINE Source: https://www.youtube.com/watch?v=TOBjHS7Gi6M Moral: I love Maybelline Baby Lips Maybe She's Born with it, Maybe it's Maybelline ... Source: https://www.youtube.com/watch?v=NuwBLIML9Vc
- 46. VASOCARE Source: https://www.youtube.com/watch?v=pv8XDKee12Y Moral: Sanjeevni Sparsh ki Original herbal lip balm Source: https://www.youtube.com/watch?v=EwtvxtWhBN4
- 47. PPC
- 48. VASELINE • Vaseline runs PPC for only 1 keyword – Vaseline •When searched with keywords like lip care products in India, Vaseline does not appear; whereas its competitor Maybelline’s name is there
- 49. NIVEA • Nives runs PPC for one keyword – Nivea •No results can be found when searched with keywords like lip balms in India; •The strangest thing is that, small companies have lesser market share in comparison to big brands like Nivea, Vaseline,etc like VLCC’s ppc is appearing in the search results
- 50. MAYBELLINE BABY LIPS • Maybelline runs PPCs for three keywords – Maybelline, Maybelline baby lips, balm lip
- 51. PPC Keyword Website Performance Vaseline Nivea Maybelline Vasocare Lip care products in India NA NA Advertising NA Lip balms in India NA NA NA NA Favourite lip balm NA NA NA NA Vaseline Advertising NA NA NA Nivea NA NA NA NA Maybelline NA NA Advertising NA Vasocare NA NA NA NA * In most of the cases top search result is Maybelline
- 53. Social Media
- 54. NIVEA
- 55. 14,803,298 likes 204.7 K people talking about this Compared to its competitor Vaseline, Nivea has a much larger fan-base Facebook
- 56. Latest post trends – Clear skin regimen/ Stay healthy and eat healthy Post frequency – 1 post per day August 21st: 1 post August 20th : 1 post August 19th: 1 post August 18th: 1 post August 17th : 1 post August 16th: 1 post August 15th: 1 post
- 57. Pictures and content goes hand in hand; The page publishes updates once a day and the updates are a mix of helpful tips and fun activities
- 58. Instead of pushing self-promotional content, they share updates that aims to help people improve their daily lifestyle and food habit
- 59. •Interesting content •Updates are not interactive, hardly leaving any scope for interaction
- 60. •The quality of the images is a treat •Updates are less self promotional;
- 61. Twitter •8,683 followers • Unlike Vaseline, they have their own twitter handle
- 62. •They share the same updates that go out on Facebook •They don’t make an effort to customize the update at all •It’s very disappointing that the same update gets cross-posted
- 63. Findings: •They post according to a content calendar •Nivea’s facebook strategy is simple- Be helpful and interesting •The content is not generating good engagement •Nivea is not impressive on Twitter; They are broadcasting the updates that is similar to its facebook content •Nivea’s Twitter handle boasts of more than 8,000 followers, but hardly any interaction
- 64. VASELINE
- 65. 4,698,014 likes 52 K people talking about this Last post was on 7th July; Not as active as their main competitor NIVEA Facebook
- 66. Latest post trends – “Win a wardrobe” contest related posts mostly; “Think positive” quotes; Nourish your skin using Vaseline products Post frequency – 1 posts per day (average) •No consistency in the frequency of posts July 7th : 1 post July 1st: 1 post June 30th: 1 post June 29th: 1 post June 28th: 2 posts June 27th: 2 posts June 26th: 2 posts
- 67. • Get a chance to win a wardrobe contest; •The content is sharable •Just because of the brand name, engagement is there •Drawback: Vaseline do not reply
- 68. •They frequently post ‘Think positive” quotes •These posts do not initiate a conversation among the audience but they make good use of pictures
- 69. •When they promote a product, engagement is very less; •Questions are not open-ended that’s why people do not take part in any conversation
- 70. Twitter 13.7 K followers •They do not have any separate twitter handle for India
- 71. The products that they promote in twitter are not available in India; They should have a separate twitter handle for India
- 72. They share beauty tips which is quite useful
- 73. Findings: •Vaseline has come up with a a variety of products in the last few years and, as its Facebook page proclaims, it is now branding itself as a skincare advisor as well •Most of its content revolves around great skin •The creatives are eye-catching and the copy is interesting too •The content is doing a great job in terms of positioning it as a great skincare brand •The frequency of updates is wavering and the content falls short of conveying its position as a ‘skincare advisor’ •Most of the content is self promotional
- 75. 3,653,612 likes 19.5 K people talking about this The engagement rate is apparently quite high, which is definitely a positive aspect Facebook
- 76. Latest post trends – Posts based on Maybelline colossal cab contest/ Post frequency – 4 posts per day (average) August 21st : 2 posts August 20th: 4 posts August 19th: 2 posts August 18th: 4 posts August 17th: 4 posts August 16th: 6 posts
- 77. Most of their daily posts are now based on ‘Maybelline Colossal Cab’, which has gained popularity and people are talking about it
- 78. •At times their updates are based on fashion trends
- 79. •Self promotional content is resulting in low engagement
- 80. Twitter 45.8 followers •They keep on changing their cover photos on the basis of their campaigns which is a good sign
- 81. Regular tweets; All the tweets are based on online contests; Engagement level is quite high
- 82. Findings: •Maybelline is doing a fair job with its Facebook and Twitter profile •It is making efforts to be interactive in social media platforms •MAYBELLINE’s Social Media strategy revolves around updates about their offline activities and new product launches •Maybelline New York being such a popular brand, people would naturally want to talk about it, like it, share it with their friends, or even write about it •They hold contests on a regular basis •Their ongoing campaign “Hitch a colossal ride” have created a buzz in the social media platforms. The campaign is all about college goers' getting into a ‘Collosal Cab’, going out for a ride and taking a selfie pic with the cab or while sitting in the cab. They can stand a chance to win exciting prizes and their respective colleges will gain popularity
- 83. VASOCARE
- 84. 134,972 likes 12 people talking about this The engagement is almost nil Facebook
- 85. Latest post trends – Based on online contests mostly Post frequency – They do not follow any content calendar March 25th: 3 posts March 11th: 2 posts March10th: 2 posts March 9th: 1 post March 8th: 2 post March 7th: 2 posts
- 86. •Most of their daily posts are based on online contests and the creatives are very unimpressive
- 87. •Promoting their products in a very boring manner
- 88. Twitter 1 follower •Joined Twitter on 2011 •No cover pic
- 89. Findings: •Their facebook page stands nowhere in front of their competitors like Maybelline, Nivea and Vasocare •Not active in Twitter •Creatives are very boring and monotonous •Lack of originality •They do not follow a content calendar for Facebook •No engagement is there in facebook •Last campaign was held in March; Those who have got a nice smile can get a chance to win exciting prizes if they share their pictures
- 91. •Beauty and personal care value sales recorded healthy growth despite high inflation and increased retail prices •Beauty and personal care is expected to continue to grow over the forecast period as consumers, including men, spend more on personal grooming •Manufacturers will continue to launch new products at different price points which will help them to gain volume sales and higher margins •The majority of growth, however, will come from new consumers, who will increasingly try different products over the forecast period •Product innovations, safe and healthy organic products, enhanced features and economical pricing are key factors that will steer high growth in the market over the years •Lip care products are most widely used by the teenage group; Since product/brand loyalty is established at an early age, manufacturers are counting on the possibility of the teenage segment consumers continuing to use the same products as they grow up Lip care market
- 92. •One of the key factors contributing to the market growth of lip care segment is the growing demand for natural and organic lip care products; Vasocare product line is all about herbal products made of Aloe Vera, Tulsi, etc; If promoted properly, they have a huge opportunity to increase their market share in another 2-3 years •Their social media as well as digital media is very poor; They need to work on this as their competitors are performing pretty well in these respective platforms •Their ad content is not that great unlike Nivea and Vaseline •They should organize contests(On ground and online both) to create a hype in the market •The look of the products is also not very attractive in comparison to Maybelline and Nivea; Being a herbal product they don’t have much option though but still product innovation might lead to increase in sales VASOCARE
- 93. Why Digital Media Why should Vasocare make use of the digital sphere?
- 94. Why Digital Media To round it off, we would like you to check out some facts and figures to reinforce the fact that it is indeed, a digital world. India is not far behind when you consider the internet penetration throughout the world. Our audience have changed, they are more exposed and are not afraid of experimentation. We think it’s time to take the game up a notch.
- 95. Why Digital Media India has the third largest internet population after China and United States It is projected to be the second largest by 2015, with 330-370 million users Source - http://www.slideshare.net/mitraarnab1/india-on-internet-2014
- 96. Why Digital Media Indian digital sector is on the rise, with 31% growth as opposed to other media Digital Ad Growth Table – Ad revenues in India, by media - 2013 2014 2015 2016 CAGR Print 172 193 215 241 11.5% TV 148 170 197 230 14.7% Out-Of-Home 22 24 26 29 10.0% Digital 26 34 44 57 29.9% Radio 16 20 24 30 20.7% Total 384 440 506 586 14.3% Source - http://www.slideshare.net/mitraarnab1/india-on-internet-2014
- 97. Why Digital Media Digital Spend In Various Categories – In 2013, majority of the ad spends went to - Search Display Social Media 38% 29% 13% Source - http://www.slideshare.net/mitraarnab1/india-on-internet-2014
- 98. Why Digital Media • 73.9 million Indians surfed the web via home or work computer Demographic – • 75% of Indian online population is under the age of 35 years Online activity time spent – Services Social Networking Entertainment Retail News information All others 23% 25% – 11% 3% 3% 35% Source - http://www.slideshare.net/mitraarnab1/india-on-internet-2014
- 99. Why Digital Media Mobiles and Tablets usage in India • Of the total 110 million mobile internet users – Mobile Smartphone Multimedia Phones Tablets 81% 10% 9% 3% 85 million urban 25 million rural Source - http://www.slideshare.net/mitraarnab1/india-on-internet-2014
- 100. Why Digital Media Mobile Internet Consumption Behavior – • 57% Indian smartphone users are most likely to download video clips • Smartphone owners in India are the least likely to be annoyed with mobile ads Source - http://www.slideshare.net/mitraarnab1/india-on-internet-2014
- 101. Why Digital Media Optimization of the multi screen - marketers and media sellers rate integrated multi-screen campaigns as very important marketers expect multi screen campaigns to be very important Multi media spend is projected to increase by by 2016 48% 88% 30% Source - http://www.slideshare.net/mitraarnab1/india-on-internet-2014