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Market Analysis:
FMCG Market in India:
FMCGs(Fast moving Consumer Goods), popularly known as consumer packaged
goods include consumables that people buy at regular intervals. Popular
consumer packaged goods include shampoos, toothpaste, detergents, shaving
products and packaged food stuff. They are meant for a frequent daily
consumption and have a high return. The FMCG market in India is estimated at
$15 billion to $18 billion and is set to reach $33 billion by 2015. It is the 4th largest
FMCG market in the world. Having a strong MNC presence, it is characterized by
low operational costs, well developed distribution system and heated
competition between the unorganized and organized sector. India has a
competitive advantage in this segment due to availability of cheap labour and
raw materials and presence across the entire value chain. The growing Indian
population, especially in the rural and middle class segment presents an
unrestrained opportunity to MNCs to convert consumers to branded products.
FMCG growth across the nation has been spearheaded with the increase in
disposal income and improvement in the standards of living among the Tier II
and Tier III cities.
Classification of Shampoo:
The shampoo products available in the Indian market can be broken down into
the following categories:
Anti Dandruff
Herbal
Baby
Bath Gel
Hair Wash Cream
Hair fall is the biggest consumer problem related to this market. However, with
a 12-15% yoy growth, the anti dandruff segment is the fastest growing segment
at 15-20%.
Weaknesses:
Lack of established distribution channels
Low export levels
Unestablished brand name- scope for counterfeit products
Opportunities:
Threats:
Strategizing:
Product Strategy:
Core Benefit: Hair cleansing and nourishment
Basic Product: Shampoo in sachets/bottles; convenient and inexpensive
Expected Product: Beautiful, long, shiny and strong hair; Shampoo should work
as a substitute to hair oil, providing nourishment at the same time while washing
it
Enhanced Product: Chemical Free, Herbal
Features: Herbal, but high on cosmetic value
Customization: Quantity (One sachet for a small family), Fragrance
Pricing Strategy:
Pricing must be done carefully, since the target market is extremely price
sensitive. Refill packs should be introduced in order to provide cheaper options.
Quantity should be 8 ml for 50p, and highlighted as 50% extra, thereby adopting
a competitive strategy. The 40 ml Rs.2 mini family packs should be available and
be highlighted as 50% extra. The availability of such family packs can be decisive
in the early stage growth of the brand, as influencing the decisions of the
purchase maker in the family can potentially convert the entire family into
adopting the brand.
Promotion Strategy:
Shampoo must be positioned itself as a brand with local appeal, providing an
image to its users of stardom, satisfying their emotional and aspirational needs.
The promotion should be done on local TV network where cost of promotion is
not much and on radio channels, at times when maximum
viewership/listenership is available.
In order to really capture the attention of the market, an aggressive promotional
strategy at the rural front can be done by marketing the product at haats, melas
and mandis. Pamphlets of the product should be printed in local languages and
distributed along with sample sachets for test use.
Distribution Strategy:
It is essential to form specific strategies for distribution in rural areas, keeping in
mind the product characteristics and shelf life. The distribution strategy should
involve co-operatives, public societies, multipurpose distribution canters, and
distribution up to feeder markets, mandis, haats etc.
Packaging:
The package design should highlight the core benefits of the product such as hair
strength and nourishment, adding additional benefits such as family values and
traditions. The package should be Green to signify its herbal characteristics.
The S in Super should have curves like that of the hair of a girl as depicted.