Shampoo Industry 20.11.02 Category : FMCG Product : Shampoo
This Presentation Covers <ul><li>What is FMCG ? </li></ul><ul><li>Characteristics of FMCG products </li></ul><ul><li>Hair ...
What is FMCG ? <ul><li>FMCG refers to consumer non-durable goods required for daily or frequent use.  Typically, a consume...
FMCG Products <ul><li>Detergents </li></ul><ul><li>Toilet soaps </li></ul><ul><li>Toothpaste </li></ul><ul><li>Shampoos </...
Typical Characteristics of FMCG products <ul><li>Individual products are of small value.  But, all FMCG products put toget...
Typical Characteristics of FMCG products…contd. <ul><li>These products cater to necessities, comforts as well as luxuries ...
Hair Care Category in India <ul><li>There are 5 main products </li></ul><ul><ul><ul><li>Hair Oil </li></ul></ul></ul><ul><...
Shampoos <ul><li>Did you know, that the word Shampoo is derived from the Hindi word “Champi”. </li></ul><ul><li>Remember J...
TG for Shampoos <ul><li>Hair Shampoos and Conditioners are targeted at </li></ul><ul><ul><ul><li>Upper middle class </li><...
Types of Shampoos <ul><li>Shampoo market is segmented on benefit platforms </li></ul><ul><ul><ul><li>Cosmetic ( shine, hea...
Hair Care Facts <ul><li>The frequency of shampoo usage is very low.  Most consumers use shampoo only once or twice in a we...
Hair Care Facts…contd. <ul><li>Brand loyalties in shampoo are not very strong.  Consumers frequently look for a change, pa...
Hair Care Facts…contd. <ul><li>In Contrast, shampoo bottles are more popular in the Northern markets </li></ul><ul><li>Abo...
Shampoo market Size in India <ul><li>Size of shampoo market - 930 Cr </li></ul><ul><li>Anti - Dandruff Shampoo - 20 % of a...
Shampoo Awareness in India <ul><li>Urban areas - 90 %, accounting for 80 % of shampoo sold in the country </li></ul><ul><l...
Shampoo Usage <ul><li>Per Capita consumption of Shampoo in India - 13 ml </li></ul><ul><li>Per Capita consumption of Shamp...
Shampoo Penetration in India <ul><li>All India Shampoo - 14 % </li></ul><ul><li>Urban - 40 % </li></ul><ul><li>Rural - 10 ...
Growth in Shampoo Market <ul><li>Average Growth over the last few yrs - > 20 </li></ul><ul><li>Expected Average growth ove...
Evolution of Shampoo in India <ul><li>HLL undisputed leader from the early 90’s </li></ul><ul><li>Sunsilk launched in 1964...
Entry of Competition <ul><li>Why did competition Enter India </li></ul><ul><ul><ul><li>Teeming millions </li></ul></ul></u...
New Entrants into the Market <ul><li>P & G enters India in Nov 1995,  with the world’s largest selling brand - Pantene </l...
Shampoo Boom in India <ul><li>In mid 1997, per capita consumption of Shampoo increased </li></ul><ul><li>Of the Rs. 350 Cr...
HLL Dominance <ul><li>Clinic, Sunsilk, Organics and Lux and their various brand extensions dominate the shampoo market </l...
 
The top Shampoo brands <ul><li>Normal Shampoo’s </li></ul><ul><ul><ul><li>Clinic Plus </li></ul></ul></ul><ul><ul><ul><li>...
The top Shampoo brands <ul><li>Herbal Shampoos </li></ul><ul><ul><ul><li>Ayush </li></ul></ul></ul><ul><ul><ul><li>Dabur V...
The top Shampoo brands <ul><li>Anti Dandruff Shampoos </li></ul><ul><ul><ul><li>Clinic All Clear </li></ul></ul></ul><ul><...
The top Shampoo brands <ul><li>Premium Products </li></ul><ul><ul><ul><li>Shehnaz Hussain </li></ul></ul></ul><ul><ul><ul>...
The way forward <ul><li>While toilet soaps have reached saturation, there is immense potential for penetration of shampoos...
Ad Budgets are on the rise <ul><li>The reasons are </li></ul><ul><ul><li>Lot of competition in the market </li></ul></ul><...
Brands on the Net <ul><li>Clinic All Clear </li></ul><ul><li>Sunsilk </li></ul><ul><li>Head & Shoulders </li></ul><ul><li>...
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Industry Shampoo

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Industry Shampoo

  1. 1. Shampoo Industry 20.11.02 Category : FMCG Product : Shampoo
  2. 2. This Presentation Covers <ul><li>What is FMCG ? </li></ul><ul><li>Characteristics of FMCG products </li></ul><ul><li>Hair Care Category in India </li></ul><ul><li>Types of Shampoos </li></ul><ul><li>Hair Care Facts </li></ul><ul><li>Market Size </li></ul><ul><li>Awareness </li></ul><ul><li>Shampoo usage details </li></ul><ul><li>Penetration details </li></ul><ul><li>Growth in this industry </li></ul><ul><li>Evolution of shampoo as a product </li></ul><ul><li>The top brands </li></ul><ul><li>Ad Spends, and brands on the net </li></ul>
  3. 3. What is FMCG ? <ul><li>FMCG refers to consumer non-durable goods required for daily or frequent use. Typically, a consumer buys these goods at least once a month. </li></ul>
  4. 4. FMCG Products <ul><li>Detergents </li></ul><ul><li>Toilet soaps </li></ul><ul><li>Toothpaste </li></ul><ul><li>Shampoos </li></ul><ul><li>Creams </li></ul><ul><li>Powders </li></ul><ul><li>Food products </li></ul><ul><li>Confectioneries </li></ul><ul><li>Beverages </li></ul><ul><li>Cigarettes </li></ul>
  5. 5. Typical Characteristics of FMCG products <ul><li>Individual products are of small value. But, all FMCG products put together account for a significant part of the consumer’s budget </li></ul><ul><li>The consumer keeps limited inventory of these products and prefers to purchase them frequently, as and when required </li></ul><ul><li>Many of these products are perishable </li></ul><ul><li>The consumer spends little time on the purchase decision. Rarely does he / she look for technical specifications ( in contrast to industrial goods ) </li></ul><ul><li>Brand loyalties or recommendations of reliable retailer / dealer drive purchase decision </li></ul><ul><li>Trial of a new product i.e brand switching is often induced by heavy advertisement, recommendations of the retailer or neighbors / friends. </li></ul>
  6. 6. Typical Characteristics of FMCG products…contd. <ul><li>These products cater to necessities, comforts as well as luxuries </li></ul><ul><li>They meet the demands of the entire cross section of population </li></ul><ul><li>Price and income elasticity of demand varies across products and consumers </li></ul>
  7. 7. Hair Care Category in India <ul><li>There are 5 main products </li></ul><ul><ul><ul><li>Hair Oil </li></ul></ul></ul><ul><ul><ul><li>Shampoo / Conditioners </li></ul></ul></ul><ul><ul><ul><li>Styling products </li></ul></ul></ul><ul><ul><ul><li>Herbal Remedies </li></ul></ul></ul><ul><ul><ul><li>Hair Dyes / colors </li></ul></ul></ul>
  8. 8. Shampoos <ul><li>Did you know, that the word Shampoo is derived from the Hindi word “Champi”. </li></ul><ul><li>Remember Johnny Walker’s famous song - Meri Jaan, Meri Jaan, Sunday Ke Sunday, Teil Maalish - Champi Teil Maalish. </li></ul><ul><li>The British loved the massage so much, they started calling Champi as Shampoo </li></ul>
  9. 9. TG for Shampoos <ul><li>Hair Shampoos and Conditioners are targeted at </li></ul><ul><ul><ul><li>Upper middle class </li></ul></ul></ul><ul><ul><ul><li>Now, also middle class and house wives </li></ul></ul></ul><ul><ul><ul><li>Upper class rural consumers </li></ul></ul></ul><ul><ul><ul><li>Teenagers - they are the major segment </li></ul></ul></ul>
  10. 10. Types of Shampoos <ul><li>Shampoo market is segmented on benefit platforms </li></ul><ul><ul><ul><li>Cosmetic ( shine, health, strength ) </li></ul></ul></ul><ul><ul><ul><li>Anti - Dandruff </li></ul></ul></ul><ul><ul><ul><li>Herbal </li></ul></ul></ul>
  11. 11. Hair Care Facts <ul><li>The frequency of shampoo usage is very low. Most consumers use shampoo only once or twice in a week. In many cases, these products are used on special occasions such as weddings, parties etc </li></ul><ul><li>Some customers use shampoo only to address a specific problem such as dandruff or when they need to condition their hair </li></ul><ul><li>Use of conditioners is not common. It is restricted to the super premium segment or those who are very involved with their hair care </li></ul><ul><li>Some consumers use natural conditioning agents such as henna </li></ul><ul><li>About 50% of consumers use ordinary toilet soaps to wash their hair </li></ul><ul><li>About 15 % of consumers use toilet soaps as well as shampoo for cleaning their hair </li></ul>
  12. 12. Hair Care Facts…contd. <ul><li>Brand loyalties in shampoo are not very strong. Consumers frequently look for a change, particularly in fragrance </li></ul><ul><li>Consumers attribute lathering to the act of cleaning </li></ul><ul><li>Major expectations from the product are improvement in texture and manageability, giving softness and bounce to hair, curing and avoiding damage to the hair </li></ul><ul><li>An Indian needs more shampoo for a proper wash ( average 6 ml ) compared to 4 ml needed in Western countries as most Indian women have long hair </li></ul><ul><li>Most consumers do not use shampoo daily </li></ul><ul><li>Regular users would need smaller quantity of shampoo per bath. Hair tend to collect more dust due to dusty environment and oiling habits </li></ul><ul><li>Southern market is predominantly a sachet market, accounting for 70 % of sachet volumes </li></ul>
  13. 13. Hair Care Facts…contd. <ul><li>In Contrast, shampoo bottles are more popular in the Northern markets </li></ul><ul><li>About 50 % of the shampoo bottles are sold in the Northern region alone </li></ul><ul><li>In the North, local brands such as Ayur have strong equities and these products being low priced dilute sachet’s USP of low price </li></ul>
  14. 14. Shampoo market Size in India <ul><li>Size of shampoo market - 930 Cr </li></ul><ul><li>Anti - Dandruff Shampoo - 20 % of above </li></ul><ul><li>Sachet Sales - 70 % of above </li></ul>
  15. 15. Shampoo Awareness in India <ul><li>Urban areas - 90 %, accounting for 80 % of shampoo sold in the country </li></ul><ul><li>Rural areas - 80 %, accounting for 20 % of shampoo sold in the country </li></ul>
  16. 16. Shampoo Usage <ul><li>Per Capita consumption of Shampoo in India - 13 ml </li></ul><ul><li>Per Capita consumption of Shampoo in Indonesia - 160 ml </li></ul><ul><li>Per Capita consumption of Shampoo in Thailand - 330 ml </li></ul>
  17. 17. Shampoo Penetration in India <ul><li>All India Shampoo - 14 % </li></ul><ul><li>Urban - 40 % </li></ul><ul><li>Rural - 10 % </li></ul>
  18. 18. Growth in Shampoo Market <ul><li>Average Growth over the last few yrs - > 20 </li></ul><ul><li>Expected Average growth over the next few yrs - 25 % </li></ul><ul><li>AD segment is the fastest growing segment, growing at 10 - 12 % every year. </li></ul><ul><li>H & S growing at 15 - 20 % every year. </li></ul>
  19. 19. Evolution of Shampoo in India <ul><li>HLL undisputed leader from the early 90’s </li></ul><ul><li>Sunsilk launched in 1964 ( General Shampoo platform ) </li></ul><ul><li>Clinic Plus launched in 1971 ( Family, health shampoo platform ) </li></ul><ul><li>Clinic All Clear launched in 1987 ( Therapeutic AD Shampoo ) </li></ul><ul><li>Sunsilk re-launched in 1987 - Shampoo + Conditioner ( Beauty platform ) with Sachet SKU </li></ul><ul><li>HLL Goes rural with Sachet </li></ul><ul><li>Clinic Active launched in 1991 ( with Pro Vitamin B - health platform ) </li></ul><ul><li>Sunsilk re-positioned and re-launched in 1994 ( Nutracare) - Pink for dry hair, yellow for normal hair, green for oily hair and black for long hair </li></ul>
  20. 20. Entry of Competition <ul><li>Why did competition Enter India </li></ul><ul><ul><ul><li>Teeming millions </li></ul></ul></ul><ul><ul><ul><li>Burgeoning middle class </li></ul></ul></ul><ul><ul><ul><li>Westernized youth </li></ul></ul></ul><ul><ul><ul><li>low penetration levels </li></ul></ul></ul><ul><ul><ul><li>Huge untapped market </li></ul></ul></ul>
  21. 21. New Entrants into the Market <ul><li>P & G enters India in Nov 1995, with the world’s largest selling brand - Pantene </li></ul><ul><li>Colgate Palmolive launched Optima also in Nov 1995 ( break through in Keratin treatment ) </li></ul><ul><li>Nirma launched Nirma Shampoo which went into rough weather because it also had a detergent and soap with the same name. The brand name also had low price connotations </li></ul>
  22. 22. Shampoo Boom in India <ul><li>In mid 1997, per capita consumption of Shampoo increased </li></ul><ul><li>Of the Rs. 350 Cr. Shampoo market, the AD segment accounted for a 20 % share </li></ul><ul><li>P & G launched its Internationally acclaimed A & D shampoo H & S in 1997 with Zinc Pyrithine ( ZPT ) - a unique anti-microbial agent. There were 2 variants - regular and menthol </li></ul><ul><li>Sachet sale became 40 % of all shampoo consumption in the country </li></ul>
  23. 23. HLL Dominance <ul><li>Clinic, Sunsilk, Organics and Lux and their various brand extensions dominate the shampoo market </li></ul><ul><li>In 1998, the company re-launched Clinic and Sunsilk brands </li></ul><ul><li>Sunsilk was re-launched with Fruitamins. </li></ul><ul><li>Today HLL has a 63 % market share in the shampoo market </li></ul><ul><li>In South India, Clinic Plus and Clinic All Clear put together have a market share of about 70 % </li></ul>
  24. 25. The top Shampoo brands <ul><li>Normal Shampoo’s </li></ul><ul><ul><ul><li>Clinic Plus </li></ul></ul></ul><ul><ul><ul><li>Sunsilk </li></ul></ul></ul><ul><ul><ul><li>Chik </li></ul></ul></ul>
  25. 26. The top Shampoo brands <ul><li>Herbal Shampoos </li></ul><ul><ul><ul><li>Ayush </li></ul></ul></ul><ul><ul><ul><li>Dabur Vatika </li></ul></ul></ul><ul><ul><ul><li>Nyle </li></ul></ul></ul>
  26. 27. The top Shampoo brands <ul><li>Anti Dandruff Shampoos </li></ul><ul><ul><ul><li>Clinic All Clear </li></ul></ul></ul><ul><ul><ul><li>Head and Shoulders </li></ul></ul></ul><ul><ul><ul><li>Dabur Vatika AD </li></ul></ul></ul>
  27. 28. The top Shampoo brands <ul><li>Premium Products </li></ul><ul><ul><ul><li>Shehnaz Hussain </li></ul></ul></ul><ul><ul><ul><li>Revlon Flex </li></ul></ul></ul><ul><ul><ul><li>L'Oreal </li></ul></ul></ul>
  28. 29. The way forward <ul><li>While toilet soaps have reached saturation, there is immense potential for penetration of shampoos into Indian households. </li></ul><ul><li>According to NCAER, Shampoo penetration is expected to grow from 314 thousand households in 1998-99, to 502 per thousand households in 2006-07. </li></ul>
  29. 30. Ad Budgets are on the rise <ul><li>The reasons are </li></ul><ul><ul><li>Lot of competition in the market </li></ul></ul><ul><ul><li>Low penetration levels </li></ul></ul><ul><ul><li>High potential </li></ul></ul><ul><ul><li>Untapped rural market to reach to </li></ul></ul><ul><li>There are a few brands that are already on the net </li></ul>
  30. 31. Brands on the Net <ul><li>Clinic All Clear </li></ul><ul><li>Sunsilk </li></ul><ul><li>Head & Shoulders </li></ul><ul><li>Pantene </li></ul>
  31. 32. Thank You

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