20204288 Market Analysis of Everyuth Derma Care Range

MARKET ANALYSIS

OF

EVERYUTH DERMA CARE

RANGE

1

A Project Report Submitted in Partial Fulfillment of award of MBA

Degree

Market AnalysisOf

Everyuth Derma Care Range

AtZydus Cadila

Submitted toMr. Aniruddh PandharkarProduct Manager, CPD

Submitted byLakshmi NairVaruna Singh

AES Post Graduate Institute of Business ManagementAhmedabad

2

CONTENTS

Page

Acknowledgement 5

Preface 6

List of Figures 7

List of Tables 8

Chapter 1: Introduction 9

About the Company-Zydus Cadila 10

Cadila Healthcare Limited 13

Skin Care Market 17

Skin Care Facts 18

Skin Care Product Range 20

Major Competitors 23

Chapter 2 : Strategic Marketing Techniques 24

Study of 4 P’s of the Marketing Mix 25

4 P’s of the Derma Care Range 28

Product 28

Price 29

Place 30

Promotion 31

SWOT Analysis 33

Factors included in a SWOT Analysis 34

Confrontation Matrix 35

Simple Rules for Successful SWOT Analysis 36

SWOT Analysis for the Derma Care Range 37

Chapter 3 : Retailer Analysis of the Derma Care Range 39

Research Objective 40

Research Methodology 40

Data Analysis and Interpretation 41

Limitations 51

Chapter 4 : Conclusions And Recommendations 52

Glossary 55

Annexure 57

Webliography 58

4

ACKNOWLEDGEMENT

Many people have guided and influenced us in preparing this project. First of all, we are grateful to Dr. A. H. Kalro, Director, AESPGIBM for giving us an opportunity to experience the corporate way of working and in the process help us learn.

Our special thanks to our project guide Mr. Aniruddh Pandharkar, Product Manager, CPD and Mr. Abhiroop Chatterjea, Sr. Marketing Executive for their wholehearted support and invaluable guidance, without which this project would not have been possible.

We also thank Mr. Rajendra Sharma and Ms. Jinal Parikh and all our faculty members who guided us throughout the project.

Lastly we thank our family members, friends and classmates who supported us.

Lakshmi Nair

Varuna Singh

5

PREFACE

It is indeed a happy moment for us to present this project report. Proper care was taken

while organizing the report so that it would be easy to understand and comprehend.

During the preparation of this project report, all Marketing Research concepts were

studied and implemented.

It has been a rich experience to work in a technically advanced environment of Zydus

Cadila. This project is a part of First Year study, the final step towards the completion of

first year of MBA course. The project duration of 8 weeks commenced from 15th May,

2006 and concluded on 15th July, 2006. During this tenure we initially studied various

aspects of Market Research and then actively participated in the process of Marketing

Analysis.

The project report is divided into four sections. These sections are sequenced in a way to

give a comprehensive idea of work done. Sections encompass of Introduction, Strategic

Marketing techniques, and Retailers’ Analysis. The first section gives a complete

overview of the Skin Care Market. The second section gives an overview of the Strategic

Marketing Techniques. The third and fourth section gives an overview of the Retailers’

Analysis which helps in drawing the conclusions of the study conducted and recommends

few marketing strategies.

6

5LIST OF FIGURES

Figures Particulars Pg.No.

Fig 1 Derma Care Sun Protection Range

Fig 2 Derma Care Complexion Enhancement Range

Fig 3 Derma Care Skin Repair Range

Fig 4 The Marketing Mix

Fig 5 Dermacare complete Range add

Fig 6 Dermacare sun block range add

Fig 7 Satellite area analysis

Fig 8 Vastrapur area analysis

Fig9 Jivraj area analysis

Fig 10 Paldi Mahalaxmi area analysis

Fig 11 Navrangpura area analysis

Fig 12 Naranpura area analysis

Fig 13 Sardar Patel area analysis

Fig 14 Raipur area analysis

Fig 15 Gulbai Tekra area analysis

Fig 16 Overall Ahmedabad market Scenario

7

LIST OF TABLES

Table 1 Revenue Segmentation for the year Jan 05-06

Table 2 Everyuth Product Range

Table 3 Prices of the various products of the Derma

Care Range

Table 4 The Distribution Channel of Derma Care

Table 5 SWOT Analysis of Derma Care Range

8

CHAPTER 1

INTRODUCTION

9

ABOUT THE COMPANY- ZYDUS CADILA

The dawn of 50's ushered in an era of awakening. Having broken free from the bondage

of dormant history, a need arose for the country to be self-sufficient in all spheres

Healthcare at this time was the sole domain of a few pharmaceutical giants. Coupled to

this was the enormous task fighting the myth and malady by cutting across the barriers of

communication so as to reach out to people and to ensure the most effective cure in the

shortest possible time. Under such circumstances, with tenacity of purpose and unfailing

zeal to achieve perfection in quality, Cadila was founded in 1952 by Mr. Ramanbhai B.

Patel, an entrepreneur, determined to contribute his share by setting up a pharmaceutical

company.

By the early 1990s, Cadila was ranked the third largest pharmaceutical company in India.

(ORG -December 1991, 1992, 1993). The decade also marked the beginning of a new

economic framework and a shift in government policies. To thrive in this evolving

environment, it became imperative for Cadila to restructure and streamline its business

operations. Thus in 1995, Cadila Laboratories emerged as Cadila Healthcare under the

aegis of the Zydus group.

Moving beyond pharmaceuticals, the concept of total healthcare now forms the

commercial heart of the group's operations and activities.

Spearheading the combined activities of the group, as a whole new identity 'Zydus'. A

phonetically powerful word, the name combines the ethos of the Greco-Roman God Zeus

and the dawn of a new era. Zydus like Zeus also symbolizes the group's aspirations to

contribute to the welfare of the people and to society at large.

10

Zydus today has a leadership position in key segments like cardio vascular, gastro

intestinal and women’s healthcare and is amongst top three in the respiratory, pain

management and anti-infective segments. It also is a leading producer of niche and

complex bulk drugs. Some of the well-known brands of Zydus Cadila include Aten - the

largest hypertensive brand in the country, Ocid, Amlodac, Atorva, Pantodac, GRD,

Penegra, Nucoxia, Ciprobid, Dexona, Primolut-N, Dulcolax, Enew, Sugar Free, Diane

35and Mifigest among others.

In recent years, Zydus has made an aggressive entry in the regulated global generic

market with operations in France and US, apart from the 25 other emerging markets

worldwide. Zydus is aiming to be one of the top 10 global generics companies by 2010

and a global research driven company by 2020.

Some of the alliances that have been successfully forged by Zydus include alliance with

Mallinckrodt, a leading US generic company, Zamban Group of Italy. JV with Altana

Pharma of Germany and Mayne Pharma of Australia, as well as the acquisition of

companies like German Remedies in 2001, (which was the largest M&A in Indian

pharmaceutical sector); acquisition of Al Pharma in France among others.

Organizational architecture of Zydus Group

Zydus Cadila -- the flagship division focusing on anti-infectives and pain management.

Zydus Alidac -- a specialty division, which focuses on the gastrointestinal segment.

Zydus Medica -- a specialty division, which focuses on the cardiovascular

segment.

Zydus Biogen -- a specialty division, which focuses on the biologicals.

Zydus Neurosciences -- a specialty division, therapy areas include anti-depressants, anti-

convulsants, anti-psychotics and tranquilizers.

11

Zydus Vaccicare -- a division that exclusively markets vaccines like Vac Typh and HB

Vac.

Consumer Products Division -- a division that has a significant presence in OTC and

Skin care, with its basket of brands like Sugar Free (Low calorie sugar substitute), Sugar

Free D’lite (low calorie soft drink), Dietrim (Fat Soaker) and EverYuth range of skin

specialities.

Zydus Pathline -- a division that manufactures and markets diagnostic reagents and

instruments for the pathological laboratories, blood banks and hospitals.

Micro marketing Division -- a division that focuses on generic drug marketing.

Phytosurge Division -- a division that markets herbal remedies for cold and cough, liver

disorders, respiratory tract disorders, GI tract disorders and other general disabilities.

Bulk Drugs -- a key strategic business unit of Zydus Cadila that manufactures a range of

modern bulk actives in the therapeutic areas of anti-ulcerants, psycholeptic drugs, anti-

depressants, quinolones, anti-diabetics, anti-histaminics etc.

Dial for health India Limited -- a 100% subsidiary that provides forward integration in

the areas of distribution and e-commerce by setting up e-pharmacies.

Recon Healthcare Limited -- a 100% subsidiary whose main focus areas include

cardiovascular and pain management.

The life force at Zydus Cadila is the dedication of its employees. Zydus Cadila

understands and respects their individual needs and provides them with a range of

facilities to help them grow as professionals in various facets of life. Recognizing the fact

that a happy workforce is a productive workforce, Zydus Cadila ensures the well being of

all its members.

A fact underlined in its core belief 'We build People to build our Business.'

12

CADILA HEALTHCARE LTD.

Cadila Healthcare Limited’s parent organisation Zydus Group is one of the fastest

growing integrated healthcare companies with a turnover of Rs.13 billion. Zydus Group

is the 5th largest player in the Indian domestic formulations market and also has a global

presence. Cadila Healthcare came into being under the aegis of the Zydus Group in 1995.

The Consumer Division of Cadila Healthcare Limited is one of the fastest growing

departments of the company. It has pioneered the growth of some of the most fruitful

ventures.

Consumer Products Division

• Sugar Free

• Sugar Free - D’lite

• EverYuth Orange Peel Off Skin Vitalizer

• EverYuth Walnut & Apricot Facial Scrub

• EverYuth Clearskin Complexion Mask

• EverYuth Sunblock Lotion

• EverYuth Exfoliating Face Wash

• Complexion Crème

The Consumer Division of Cadila Healthcare Limited also has a strong presence in the

low calorie dietetic segment with brands like Sugar Free - a low calorie sugar substitute,

Sugar Free D’lite - a low calorie soft drink mix and Dietrim - a fat soaker.

In the dietetic segment, Sugar Free - a healthy low cal sugar substitute, is available in

pellet and powder form. It is a leader in the low calorie sweetener market with more than

13

70% market share. Sugar Free D’lite, when introduced was the first low calorie soft drink

in the Indian market. Offering 85% lesser calories than all other soft drinks, Sugar Free

D’lite is available in 5 flavors namely Orange, Lemon, Passion Fruit and Mango.

Dietrim was launched in the weight management segment. It is a unique first of its kind

‘fat soaker' in the Indian market. Made from a rare Japanese plant called Konjac, Dietrim

- a 100% natural dietary fiber, works by way of forming a viscous gel after consumption.

It absorbs all the excess sugar and fats consumed and also helps to cut down on your fat

and calorie intake. This product is available in select markets.

EverYuth is a leading skincare brand of the Consumer Division of Cadila Healthcare

Limited – the flagship company of Zydus Group.

EverYuth occupies a unique distinction of being a 'skincare brand from a healthcare

company'. Enriched with the power of natural ingredients, EverYuth has a strong

presence in advanced skincare segments like soap-free Face Washes, Face Masks, Scrubs

etc. EverYuth has more than 50% market share in the Face Mask & Scrub market and

12% market share in the Face Wash segment, where it is the fastest growing Face Wash

brand. Its brand Orange Skin Vitaliser was the first peel-off mask to be launched in India

and since then it continues to hold a leadership position in this segment. Specially

designed to fulfill every woman’s skincare needs, the EverYuth range also includes

products like Skin Essential Moisturising Lotion & Crème, Sun Block Lotions, Face

Cleanser etc. The percentage contribution of the various product ranges towards the total

revenue of the family and towards the total cosmetic sales from January 2005 to January

2006 is as under:

14

Product Variant/sku SKU contrib. to family Family contrib. to total

cosmetic sales

For month Till month For month Till month

contrib. contrib. contrib. contrib.

OSV 9g 18% 19% 24% 26%

30g 14% 13%

50g 56% 57%

90g 12% 10%

Product Variant/sku

WFS 7g 16% 15% 22.7% 23.1%

50g 62% 64%

100g 19% 17%

200g 4% 4%

Product Variant/sku

CFP 9g 16% 13% 8% 13%

50g 73% 79%

90g 11% 8%

Product Variant/sku

FW 50ml 82% 78% 24% 23%

100ml 18% 22%

Product Variant/sku

MST 60g 0% 0% 22% 14%

120ml 87% 79%

crème 13% 21%

Product Variant/sku

SSL 60ml #DIV/0! 44% 0% 1%

120ml #DIV/0! 56%

Table 1

15

Dermatologically tested and conforming to international standards, the new EverYuth

Derma Care range has been specially created to suit Indian skin & weather conditions.

Enriched with internationally proven active & natural ingredients and formulated to

effectively restore & improve the natural health of the skin, the new EverYuth Derma

Care range will empower you to effectively tackle the skin problems of darkening,

pigmentation, acne & aging, which are triggered by the sun.

Understanding your special skincare needs, EverYuth Derma Care range of specialty

products are classified into three categories - Protection, Enhancement & Repair.

16

SKIN CARE MARKET

India is one of the fastest growing markets for skin care products, and the target of most

cosmetic majors is women between 18-35, with a monthly income of Rs 10,000 and

above.

Indian cosmetic industry is heading for a complete makeover, rediscovering the long-

forgotten herbal formulas and beauty secrets. Those in the business say the going has

never been better for the Indian beauty industry. Estimated at Rs 1800 crore, the industry

is growing at 25 per cent annually, while the growth rate of herbal cosmetics sector,

estimated at Rs 400 crore is much higher - at 40 per cent. The natural and ayurvedic

sector has seen a phenomenal growth in the last 2-3 years. The Indian cosmetic

companies are just trying to rediscover, what was lying forgotten and untapped for a very

long period.

More and more companies are entering this lucrative market with a wide range of

products. This market surely works on the doctrine “Consumer is the King”. The

leading players in this industry are Hindustan Lever Ltd., Ponds India Ltd., Lakme,

Emami Ltd, Cavincare Ltd, Godrej Consumer Products Ltd., Lotus Herbals India Ltd.,

Procter and Gamble Hygiene and Healthcare Ltd., Cadila Healthcare Ltd. The latest

entrant in the skincare market is Amway India Ltd.

17

SKIN CARE FACTS

The skin is amazingly versatile and complex. It is the largest organ of the body and also

serves countless essential functions and performs a large variety of roles. This resilient

covering makes you waterproof and leak proof, and helps to protect your internal organs

from the environment.

Interesting Facts

The skin of an average-sized adult covers an area of more than 7 square feet and weighs

about 5 kg.

The skin is thickest on the soles of the feet, and thinnest around the eyelids, lips and

genitals.

Why do you need Sun Protection?

You need sun protection 365 days a year…

Sun contains harmful UVA (aging rays) & UVB (burning rays) that can darken your skin

in just 15 minutes… Surfaces such as water, sand and concrete reflect & intensify sun

exposure, because of which you can get sunburned even when you cover your skin or

take shelter in the shade.

90% of skin aging happens due to damages caused by sun's harmful UVA (aging rays),

which penetrates more deeply into the dermis. UVA is considered to be the chief culprit

behind wrinkling, leathering and other aspects of photo aging. Up to 80% of the sun's

UVA & UVB rays can even penetrate dense clouds, which is why your skin needs

specialist sun protection, every time you step out.

18

Why do you need Complexion Enhancement?

Sun damage goes beyond skin darkening...

Exposure to sun's ultraviolet light, which contains UVA & UVB rays, accounts for 90%

of the symptoms of premature skin aging. Many skin changes, which were commonly

believed to be due to aging, are actually a result of prolonged exposure to UV radiation.

Unprotected sun exposure and harsh Indian climatic conditions not just darken your skin

but also damage it by causing dark spots, pigmentation, blemishes and discolouration.

Fairness creams only superficially lighten your complexion, without treating your skin

from within. Which is why, you need enhanced skin lighteners to keep your skin clear &

flawless.

Why do we need skin repair?

Most common skin problems can be traced to the Sun

Extreme hot & humid weather conditions of India, along with the sun's harmful UVA &

UVB rays have been observed to be the primary cause of two main common problems

that women face inevitably - Wrinkles & Acne.

The sun is the single most important factor responsible for causing premature aging and

increasing the risk of skin cancer. 80% of wrinkles & fine lines on your skin are a result

of exposure to ultraviolet rays of the sun.

Excessive heat and humidity cause your sebaceous glands to produce more sebum,

leading to clogged pores & acne. Acne can become worse in extreme climate because

sweating increases oil production. Which is why, while repairing acne you need to take

extra-special care.

19

SKIN CARE PRODUCT RANGE

Derma Care Sun Protection Range

This range is the only advanced sun block range that offers up to 97% sun protection for

more than six hours. A blend of internationally proven sun block agents and natural

active ingredients that soothes the skin, Everyuth Dermacare sun blocks are formulated to

be absolutely non greasy and completely sweat resistant. This range consists of:

Daily Sun Block Crème- SPF 30 (for dry skin) Daily

Sun Block Lotion- SPF 30 (for all skin types)

Sensitive Skin Sun Block Lotion- SPF 15 (for sensitive skin and children)

Daily Matte Sun Block Crème- SPF 30 (for all skin types)

Fig 1

20

Derma Care Complexion Enhancement Range

Everyuth Derma Care’s Enhancement Range consists of two unique breakthrough

formulations that will give your complexion a matte fair radiance, while also providing

sun protection. Enriched with internationally proven active ingredients, these specialty

products also help in treating skin problems of pigmentation and blemishes, from within.

When used in conjunction they will give you a flawless glowing complexion. It consists

of:

Daywear Matte Fairness Lotion- SPF 25 (for all skin types)

Light And Clear Skin Lightening Crème (for pigmented and blemished skin)

Fig 2

21

Derma Care Skin Repair Range

Everyuth Derma Care Repair Range consists of two unique advanced formulations that

help to undo the damages and restore the natural health of skin. Enriched with

internationally acclaimed active ingredients, these products empower to regain beauty

and self confidence. This range consists of:

Age Defence Anti-Aging Crème (for matured and wrinkled skin)

Acne Contol Gel (for acne prone skin)

Fig 3

22

MAJOR COMPETITORS

Dermacare, the newly introduced range is mainly targeted at the higher middle class and

the creamy layer of the society. Hence it falls in the higher price range. Therefore its

major competitors are Garnier skin care range, Lotus herbals India, and the Lakme Sun

Expert.

The Garnier Skin Care Range consists of:

▪ Garnier Skin Naturals Sun Control (SPF 20)

▪ Garnier Light (Antimarks & Fairness Cream)

▪ Garnier Fainess+Dark Spot Prevention Cream

▪ Garnier Wrinkle Lift

▪ Garnier Eye Contour Gel

▪ Garnier Pure (Anti bacterial cream)

The Lotus Herbals Skin Care Range consists of:

▪ Lotus Sun Protection Gel (for sensitive skin)

▪ Lotus Sun Protection Cream (SPF 10, 20, 25, 30, 40, 60)

▪ Lotus Fairness Cream

▪ Lotus Acne Control Cream

The Lakme Sun Expert Range consists of:

▪ Lakme Sun Expert Sunscreen Lotion (SPF 15 - for all skin types)

▪ Lakme Sun Expert Sunblock (SPF 25 – for sensitive skin)

▪ Lakme Sun Expert Sunscreen Souffle (SPF 20 – for oily skin)

▪ Lakme Skin Brightening Gel

23

CHAPTER 2

STRATEGIC MARKETING TECHNIQUES

24

STUDY OF 4 P’S OF THE MARKETING MIX

The major marketing management decisions can be classified in one of the following four

categories:

▪ Product

▪ Price

▪ Place (distribution)

▪ Promotion

These variables are known as the marketing mix or the 4 P's of marketing. The term

"marketing mix" became popularized after Neil H. Borden published his 1964 article, The

Concept of the Marketing Mix. The ingredients in Borden's marketing mix included

product planning, pricing, branding, distribution channels, personal selling, advertising,

promotions, packaging, display, servicing, physical handling, and fact finding and

analysis.

These four P's are the parameters that the marketing manager can control, subject to the

internal and external constraints of the marketing environment. The goal is to make

decisions that center the four P's on the customers in the target market in order to create

perceived value and generate a positive response.

Fig 4

25

Product Decisions

The term "product" refers to tangible, physical products as well as services. Here are

some examples of the product decisions to be made:

▪ Brand name

▪ Functionality

▪ Styling

▪ Quality

▪ Safety

▪ Packaging

▪ Repairs and Support

▪ Warranty

▪ Accessories and services

Price Decisions

Some examples of pricing decisions to be made include:

▪ Pricing strategy (skim, penetration, etc.)

▪ Suggested retail price

▪ Volume discounts and wholesale pricing

▪ Cash and early payment discounts

▪ Seasonal pricing

▪ Bundling

▪ Price flexibility

▪ Price discrimination

26

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution

decisions include:

▪ Distribution channels

▪ Market coverage (inclusive, selective, or exclusive distribution)

▪ Specific channel members

▪ Inventory management

▪ Warehousing

▪ Distribution centers

▪ Order processing

▪ Transportation

▪ Reverse logistic

Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of

marketing communication, that is, the communication of information about the product

with the goal of generating a positive customer response. Marketing communication

decisions include:

▪ Promotional strategy (push, pull, etc.)

▪ Advertising

▪ Personal selling & sales force

▪ Sales promotions

▪ Public relations & publicity

▪ Marketing communications budget

27

4 P’S OF THE DERMACARE RANGE

Product

The term ‘product’ for the Derma Care Range and the Clear Skin Complexion Mask

includes:

Product SKU

Daily Sunblock Crème SPF 30 50 g, 100 g

Daily Sunblock Lotion SPF 30 50 ml, 100 ml

Sensitive Skin Sunblock Lotion SPF 15 100 ml

Daily Matte Sunblock Crème SPF 30 50 g, 100 g

Daywear Matte Fairness Lotion SPF 25 100 g

Light & Clear Skin Lightening Crème 50 g

Age Defence Anti-Aging Crème 50 g

Acne Control Gel 50 g

Table 2

28

Price

The prices of the various products of the Dermacare Range are follows:

Product SKU MRP (Rs.)

Daily Sunblock Crème 50 g 90

(SPF 30)

Daily Sunblock Crème 100g 175

(SPF 30)

Daily Sunblock Lotion 50 ml 85

(SPF 30)

Daily Sunblock Lotion 100 ml 150

(SPF 30)

Sensitive Skin Sunblock 100ml 125

Lotion (SPF 15)

Daily Matte Sunblock 100 g 195

Crème (SPF 30)

Daily Matte Sunblock 50 g 110

Crème (SPF 30)

Daywear Matte Fairness 100 g 150

Lotion (SPF 25)

Light & Clear Crème 50 g 90

Age Defense Anti-Aging 50 g 150

Crème

Acne Control Gel 50 g 75

Table 3

29

Place

This decision most importantly constitutes of the distribution channels. The various distribution channels used by the marketing department is as follows:

FMCG Channel

Company

PharmaceuticalChemistschannels

C & F Agents

Wholesale RedistributionStockists

Retailer Shops Retailers

Customers Customers

30

Promotion

The marketing department for the Everyuth Dermacare Range mainly uses the ‘Pull’

strategy for its product.

Leading actress and model Perizaad Zorabian is the brand ambassador for their range.

They have aired two advertisements, one comprising the entire range and one showing

the Dermacare Sun Protection Range, on all the major television channels and print

media. They have a well developed and well connected personal selling and sales force.

Under the public relations and publicity campaign, they have an Everyuth Club which

organizes competitions and other recreational activities for its members.

Under its various promotional schemes for the Dermacare Range, they came up with a

new programme on MTV (Music Television), MTV Evergreen Hits sponsored by

Everyuth Dermacare and hosted by Perizaad Zorabian.

31

Dermacare Skin Dermacare Sun

Protection Range Protection Range

Fig 5 Fig 6

32

SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its environment. It is the first

stage of planning and helps marketers to focus on key issues. It is applicable to either the

corporate level or the business unit level and frequently appears in marketing plans.

SWOT stands for strengths, weaknesses, opportunities, and threats.

SWOT Analysis is a powerful framework for analyzing your company's Strengths and

Weaknesses, and the Opportunities and Threats you face. This helps you to focus on your

strengths, minimize threats, and take the greatest possible advantage of opportunities

available to you.

Strengths and weaknesses are internal factors that create value or destroy value. They can

include assets, skills at its disposal, compared to its competitors. They can be measured

using internal assessments or external benchmarks.

Opportunities and threats are external factors that create value or destroy value. A

company cannot control them. It includes demographic, economic, political, technical,

social, legal factors. Any organization must try to create a fit with its external

environment.

33

Factors included in a SWOT Analysis:

Major factors included in a SWOT Analysis are presented in the following matrix:

Strengths Weaknesses

▪ Specialist marketing expertise ▪ Lack of marketing expertise

▪ Exclusive access to natural resources ▪ Undifferentiated products

▪ Patents ▪ Location of your company

▪ New, innovative product or service ▪ Competitors have superior access

▪ Location of your business ▪ Poor quality of goods or services

▪ Cost advantage through proprietary ▪ Damaged reputation

know-how

▪ Quality processes and procedures

▪ Strong brand or reputation

Opportunities Threats

• Developing market (China, the ▪ A new competitor in your own house

Internet) ▪ Price war

• Mergers, joint ventures or strategic ▪ Competitor has a new, innovative

alliances service

• Moving into new attractive market ▪ New regulations

segments ▪ Increased trade barriers

• A new international market ▪ A potential new taxation on your

Loosening of regulations product

• Removal of international trade

barriers

• A market that is led by a weak

competitor.

Confrontation Matrix

A tool to combine the internal factors with the external factors is the Confrontation

Matrix. On the basis of this matrix an organization decides which strategy should be

adopted.


Strengths Offensive Adjust

Make most of these Restore strengths

Weaknesses Defensive Survive

Watch competition closely Turn around

35

Simple rules for successful SWOT analysis

▪ Be realistic about the strengths and weaknesses of your organization when conducting

SWOT analysis.

▪ SWOT analysis should distinguish between where your organization is today, and

where it could be in the future.

▪ SWOT should always be specific. Avoid grey areas.

▪ Always apply SWOT in relation to your competition i.e. better than or worse than

your competition.

▪ Keep your SWOT short and simple. Avoid complexity and over analysis.

▪ SWOT is subjective.

36

SWOT Analysis for the Dermacare Range

Strengths Weaknesses

▪ Brand name ▪ High price

▪ Quality ▪ Poor promotion schemes

▪ Strong distributorship ▪ Restrained advertising budget

▪ Established Products ▪ Low retailers margin

▪ Lack of push strategy


▪ Growing market due to improving ▪ Existing leaders

economic conditions ▪ Competition from MNC’s

▪ Untapped potential in the skin

care market

▪ Technical innovations

Table 4

37

After combining the internal and external factors in the Confrontation Matrix, the

strategy best suited for the Derma Care Range is the Defensive Strategy, wherein a close

surveillance of the competition must be administered.

Improving economic conditions have led to larger and growing markets, due to which

there is a great scope for the skin care industry. Hence opportunities are immense but

there are also certain weaknesses in the marketing strategy hindering their development.

Hence under such circumstances the Defensive Strategy is the best suited.

38

CHAPTER 3

RETAILER ANALYSIS OF THE DERMACARE

RANGE

39

RETAILER ANALYSIS OF THE DERMACARE RANGE

1. Research Objective:

▪ To check the stocking pattern of Everyuth Dermacare Range at various retail outlets

in Ahmedabad

▪ To find out the sale or movement of the Everyuth Dermacare Range

▪ To evaluate the impact of advertisement on the movement of the product

▪ To study the competition

2. Research methodology:

a. Time Scope 2 months

b. Methods of Data Collection:

▪ Research Design Descriptive Design

▪ Sample Design

- Sample Type Convenience

- Sample Size 162

▪ Data Collection Sources

- Primary Source Retailers (Interview mode)

- Secondary Source Internet, library, newspapers and magazines.

c. Geographical Scope: Satellite

Vastrapur

Gulbai Tekra

Paldi, Mahalaxmi

Navrangpura

Naranpura

Sardar Patel

Raipur

40

3. Data Analysis and Interpretation

100.00%Satellite

90.00%

avai

lab

ility

80.00%70.00%60.00%

50.00%40.00%

% 30.00%20.00%10.00%

0.00%D

CE

R

GS

CR

GE

R

GS

RR

DS

PR

DS

RR LS

CR LE

R

LSR

R LSB

R

pdct category

Fig 7

From the above graph it can be derived that in satellite the sun control range of Derma

Care is available in 62% of shops. Only 19% shops had the Derma Care Enhancement

Range and around 14% shops stocked Derma Care Skin Repair Range.

▪ In the sun control range, LAKME SUN BLOCK CRÈME AND LOTION is

available at almost 100% shops. Next to LAKME is GARNIER SUN CONTROL

i.e. 86%. LOTUS SUN CONTROL is available at 47% shops.

▪ In the Skin Enhancement Range, GARNIER LIGHT & GARNIER FAIRNESS

products are available at maximum number of shops i.e. 81% shops. After Garnier,

LOTUS enhancement product is available at 48% outlets. DERMA CARE SKIN

ENHANCEMENT RANGE is available at 19% shops

▪ In the Skin Repair Range, which consists of Age Defence and Acne Control

products, GARNIER again is the leading brand which is available at 81% outlets.

Lotus repair range is second most available product i.e. 24%. The brand which is

least stocked in this range is, DERMA CARE SKIN REPAIR RANGE. It is

available at only 14% of shops.

41

Vastrapur

100.00%

% a

vaila

bili

ty 80.00%

60.00%

40.00%

20.00%

0.00%

DC

ER

GS

CR

GE

R

GS

RR

DS

PR

DS

RR LS

CR LE

RLS

RR LS

BR

pdct category

Fig 8

From the above graph it can be derived that in Vastrapur, the sun control range of

Derma Care is available in maximum 59% of shops. Only 53% shops had the Derma

Care Enhancement Range and around 29% shops stocked Derma Care Skin Repair

Range.

▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION and

GARNIER SUN CONTROL are available in similar number of shops i.e. around

94% shops. LOTUS SUN CONTROL is available at only 53% shops, which is the

least available product in Sun Block Range in Vastrapur.

▪ In the Skin Enhancement Range, GARNIER products are available at 100% of

shops. After Garnier, LOTUS enhancement product is available at 65% outlets.

DERMA CARE SKIN ENHANCEMENT RANGE is available at only 29%

shops, which again is the least in the Enhancement Range.

▪ In the Skin Repair Range, GARNIER is again the leading brand which is available

at 94% outlets. Lotus Repair Range is the second most available product i.e. 35%.

The brand which is least stocked in this range is, DERMA CARE SKIN REPAIR

RANGE. It is available in only 29% of shops.

42

100.00%Jivraj

90.00%

80.00%

avai

lab

ility 70.00%

60.00%

50.00%40.00%

% 30.00%

20.00%

10.00%0.00%

DC

ER

GS

CR

GE

R

GS

RR

DS

PR

DS

RR LS

CR LE

R

LSR

R LSB

R

pdct category

Fig 9

In Jivraj, the Sun Control Range of Derma Care is available at 50% of shops. Only

31% shops had the Derma Care Enhancement Range and around 12.5% shops stocked

Derma Care Skin Repair Range.

▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION &

GARNIER SUN CONTROL is available at almost 87.5% shops. Next to them is

DERMA CARE SUN CONTROL, which is available at 50% shops. LOTUS SUN

CONTROL RANGE is the least available product in Jivraj, which is only12.5%.

▪ In the Skin Enhancement Range, DERMA CARE SKIN ENHANCEMENT

RANGE is available at maximum 31% outlets. GARNIER ENHANCEMENT

RANGE is available at 25% of shops. LOTUS enhancement product is not

available at all.

▪ In the Skin Repair Range, GARNIER is the leading brand which is available at

19% outlets. DERMA CARE SKIN REPAIR RANGE is available at 13% of

shops. Lotus Skin Repair Range is completely out of stock in all the outlets at

Jivraj.

43

Paldi Mahalaxmi

1

% a

vaila

bil

ity

0.8

0.6

0.4

0.2

0

DC

ER

GS

CR

GE

R

GS

RR

DS

PR

DS

RR

LS CR

LE R LS RR

LSB

R

pdct category

Fig 10

The Sun Control Range of Derma Care is available at 62% of the shops. Only 25%

shops had the Derma Care Enhancement Range and around 37.5% shops stocked

Derma Care Skin Repair Range.

▪ In the Sun Control Range, GARNIER SUN CONTROL is available at 100% of

shops, following this is LAKME SUN BLOCK CRÈME AND LOTION which is

available at almost 87.5% shops. Next is DERMA CARE SUN CONTROL, which

is available at 62.5% shops. LOTUS SUN CONTROL RANGE is the least

available product in Paldi, which is only 25%.

▪ In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE is

available at maximum 50% outlets. DERMA CARE SKIN ENHANCEMENT

RANGE & LOTUS enhancement product is available at 25% of shops.


50% outlets. DERMA CARE SKIN REPAIR RANGE is available at 37.5% of

shops. Lotus Skin Repair Range is available at 25% of shops.

44

Navrangpura

100.00%90.00%

avai

labi

lity

80.00%70.00%60.00%50.00%40.00%30.00%%

20.00%10.00%0.00%

DC

ER

GS

CR

GE

R

GS

RR

DS

PR

DS

RR

LSC

R LER

LSR

R LSB

R

pdct category

Fig 11

The Sun Control Range of Derma Care is available at 78% of shops. Only 22% shops

had the Derma Care Enhancement Range and around 44% shops stocked Derma Care

Skin Repair Range.

▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION is

available at GARNIER SUN CONTROL is available at% of shops, following this

is & is available at almost 87.5% shops. Next to that is DERMA CARE SUN

CONTROL, which is available at 62.5% shops. LOTUS SUN CONTROL

RANGE is the least available product at Navrangpura, which is only 25%.


available at maximum 50% outlets. DERMA CARE SKIN ENHANCEMENT

RANGE & LOTUS enhancement product is available at 25% of shops.


50% outlets. DERMA CARE SKIN REPAIR RANGE is available at 37.5% of

shops. Lotus Skin Repair Range is available at 25% of shops.

45

Naranpura

% a

vaila

bilit

y

100.00%90.00%80.00%70.00%60.00%50.00%40.00%30.00%20.00%10.00%0.00%

DC

ER

GS

CR

GE

R

GS

RR

DS

PR

DS

RR LS

CR LE

RLS

RR LS

BR

pdct category

Fig 12

The Sun

Control

Range of

Derma

Care is

available at

25% of

shops. No

shops had

the Derma

Care

Enhancem

ent Range.

Only 9%

shops

stocked

Derma

Care Skin

Repair

Range.

▪ In the

Sun

Control

Range,

LAKM

E SUN

BLOC

K

CRÈM

E AND

LOTIO

N is

availabl

e at

83%

shops.

GARNI

ER

SUN

CONT

ROL is

availabl

e at

67% of

shops,

followi

ng this

is

Derma

Care

and is

availabl

e at

almost

25%

shops.

LOTUS

SUN

CONT

ROL

RANG

E is not

availabl

e at any

outlet.

▪ In the

Skin

Enhanc

ement

Range,

GARNI

ER

ENHA

NCEM

ENT

RANG

E is the

only

brand

availabl

e. This

product

is

stocked

at

around

42%

shops.

Other

brand

i.e.

LOTUS

and

DERM

A

CARE

is not

stocked

at all.

▪ In the

Skin

Repair

Range,

GARNI

ER is

the

leading

brand

which

is

availabl

e at

33%

outlets.

DERM

A

CARE

SKIN

REPAI

R

RANG

E is

availabl

e at

only

8% of

shops.

Lotus

Skin

Repair

Range

is not

availabl

e at

shops.

46

Sardar Patel

100.00%90.00%

avai

labi

lity

80.00%70.00%60.00%50.00%40.00%30.00%%

20.00%10.00%0.00%

DC

ER

GS

CR

GE

R

GS

RR

DS

PR

DS

RR LS

CR LE

RLS

RR LS

BR

pdct category

Fig 13

The Sun Control Range of Derma Care is available at 41% of shops. Derma Care

Enhancement Range is available at only 4% shops. No shop stocked Derma Care Skin

Repair Range.

▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION is

available at 100% shops. GARNIER SUN CONTROL is available at 89% of

shops, following this is Derma Care & is available at almost 41% shops. LOTUS

SUN CONTROL RANGE is not available at only 4% outlets.


available at 15% outlets, which is highest. DERMA CARE is stocked at only 4%

outlets and other brand i.e. LOTUS is not stocked at all.


11% outlets. DERMA CARE SKIN REPAIR RANGE & LOTUS is not available.

47

Raipur

1

% a

vaila

bili

ty

0.8

0.6

0.4

0.2

0

DC

ER

GS

CR

GE

R

GS

RR

DS

PR

DS

RR LS

CR LE

R

LSR

R LSB

R

pdct category

Fig 14

The Sun Control Range of Derma Care is available at 60% of shops. Derma Care

Enhancement Range is available at only 10% shops. Derma Care Skin Repair Range

is available at 13% of shops.

▪ In the Sun Control Range, stocking of Derma Care is done at 60% shops which is

highest in Raipur. Next to Derma Care is LAKME SUN BLOCK CRÈME AND

LOTION, which is stocked at almost 50% of shops. GARNIER SUN CONTROL

is available at 30 % of shops. LOTUS SUN CONTROL RANGE is not available

at outlets.

▪ In the Skin Enhancement Range, DERMA CARE is available at 10% outlets,

which is highest. GARNIER ENHANCEMENT RANGE is stocked at only 3%

outlets and other brand i.e. LOTUS is not stocked at all.

▪ In the Skin Repair Range, DERMA CARE SKIN REPAIR RANGE is the leading

brand which is available at 13% outlets. GARNIER is stoked at merely 3% of

outlets & LOTUS is not available at all.

48

gulbai Tekra

100.00%

90.00%

avai

lab

ility

80.00%

70.00%60.00%

50.00%40.00%

30.00%%20.00%

10.00%0.00%

DC

ER

GS

CR

GE

R

GS

RR

DS

PR

DS

RR

LSC

R LER

LSR

R LSB

R

pdct category

Fig 15

From the above graph it can be derived that in Gulbai Tekra the sun control range of

Derma Care is available in 73% of shops. Only 14% shops had the Derma Care

Enhancement range and around 14% shops stocked Dermacare skin repair range.

▪ In the sun control range, LAKME SUN BLOCK CRÈME AND LOTION is

available at almost 100% shops. GARNIER SUN CONTROL is also available at

100% shops. Lotus SUN CONTROL is available at only 14% shops, which is the

least available product in Gulbai Tekra.

▪ In the skin enhancement range, GARNIER LIGHT & GARNIER FAIRNESS

products are available at maximum number of shops i.e. 95% shops. After Garnier,

DERMACARE SKIN ENHANCEMENT RANGE enhancement product is

available at 14% outlets. LOTUS is not available at all.

▪ In the Skin Repair Range, which consists of Age Defence and Acne control

products, GARNIER again is the leading brand which is available at 95% outlets.

DERMACARE SKIN REPAIR RANGE is second most available product i.e.

14%. The brand Lotus is not available.

49

Product Availaility

160

140

sho

ps 120

100

80of

60

No

.

40

20

0

DD

M

DD

WM

GS

C

GD

S

GE

C

DC DL

DS

S

DS

LC

DA

DD

AC

GA

M

GW

L

GA

BLG

25

L10

L20

L25

L30

L40

L60

LF LAC

LSB

pdct category

Fig 16

Looking at the overall market trend, Garnier is the leading brand in all the categories.

In the Sun Control Range, Lakme leads with 87% of market share in the premium

category range. Garnier ranks second with 78% of the market share. Next to Garnier is

the Derma Care Range with a market share of 56%. Lotus products are available at

around 16% of the shops.

In the Skin Enhancement category Garnier leads with 48% share. Derma Care ranks

second with a 17% share. Lotus lags behind with a mere share of 14%.

In the Skin Repair category also Garnier is the market leader with 46% of the market

share, followed by Derma Care with 15% share. The least available brand is the Lotus

Skin Repair Range.

50

LIMITATIONS

▪ Limited to a particular time period

The survey was conducted during the month of June and July, during which the sale

of sun control range is maximum. This might be a reason why the sun control range of

Derma care was available in majority of outlets. The market forces may have changed

with time because of which the results may be different.

▪ Limited to Ahmedabad

Due to time and geographical constraints the Research was limited to the major

markets in Ahmedabad only.

51

CHAPTER 4

CONCLUSIONS & RECOMMENDATIONS

52

CONCLUSIONS

The following are the conclusions from our study:

▪ Ad awareness of the Derma Care Range is low with majority of the stocking taking place due to the strong distribution network.

▪ The margin provided to retailers is a major factor in deciding the extent of retailer promotion.

▪ Derma care, though a newly introduced product, has a substantial amount of stocking in the Ahmedabad market.

▪ The brand name of Everyuth plays an important role for this phenomenon. Everyuth Dermacare has a very good distribution channel because of which it is available in all the markets, from higher end markets like Satellite and Vastrapur to a lower end markets like Raipur and Jivraj.

▪ A major challenge for Derma Care is that it is a premium brand which caters to people in the premium category, where quality of the products is a crucial factor in deciding brand loyalty and hence brand switching is less frequent.

▪ Lakme Sun Block is the most preferred brand in all the areas, because of the brand name “Lakme” and the cost, which is comparatively less compared to other products in this category.

▪ Garnier is the most favored brand after Lakme. It is more popular in higher end markets, like Vastrapur and Satellite. The ad awareness of the Garnier Range is higher than the other products.

▪ Lotus is preferred by consumers of the premium category, who are brand loyal and are reluctant to switch to other products. Lotus Herbals Ltd. is mainly involved in print advertisements and does not advertise in the television media. Lotus also pays a very high margin to the retailers, which helps to retain the retailers’ loyalty. Lotus also provides extra monetary benefits for space and shelf display.

▪ The Derma Care Range does not employ such strategies. The margin provided to retailers is lower as compared to that of the competitors. Hence the push strategy is rendered ineffective with the range not being promoted aggressively by the retailers.

53

RECOMMENDATIONS

On the basis of our study we would like to put forth the following recommendations:

▪ The ‘Push Strategy’ should be more implemented in order to increase the market

penetration for the Dermacare Range.

▪ Retailer’s Margin should be increased so as to motivate the retailers to push the

product.

▪ Display of products in strategic stores at high visibility points could be done to

improve the movement of the complete range.

▪ As the ad-awareness is really low, frequency of the advertisements should be

increased in the television and print media so as to increase the ad-recall.

▪ Bouts of intensive advertising should be done during specific periods, to keep the

brand in the consideration set of consumers.

▪ Trial packs and free samples of all the products of the complete range should be

introduced so as to facilitate the first-time users.

▪ More promotional schemes could be implemented in order to increase the movement

of the product. For example: Tie-ups with beauty parlours to organize competitions

for the target audience could be a nice promotional scheme.

54

GLOSSARY

1. OSV :- Orange Skin Vitalizer

2. WFS :- Walnut Face Scrub

3. CFP :- Cucumber Face Pack

4. FW :- Face wash

5. SSL :- Sun screen Lotion

6. DSPR :- Derma Care sun Protection Range

• DC :- Daily Sun block Crème (SPF 30)

• DL:- Daily Sun block Lotion (SPF 30)

• DDM:- Derma Care Daily Matte Sun Block Crème

• DSS:- Derma Care Sensitive Skin Sun Block Lotion

7. DCER : - Derma Care Complexion Enhancement Range

• DDWM:- Derma Care Day Wear Matte Fairness Lotion

• DSLC:- Derma Care Skin Lightening Crème

8. DSRR:- Derma Care Skin Repair Range

• DAD:- Derma Care Age Defence

• DAC:- Derma Care Acne Control Gel

9. GSCR:-Garnier Sun Control

10. GER:- Garnier Enhancement Range

• GAM:- Garnier Anti Marks

• GDS:- Garnier Dark Spot Prevention

11. GSRR:- Garnier Skin Repair Range

• GWL:- Garnier Wrikle Lift

• GEC:- Garnier Eye Contour

• GAB:- Garnier Anti Bacterial clear imperfection

12. LSBR:- Lotus Sun Block Range

• LG 25:- Lotus Gel SPF 25

55

• L10:- Lotus Sun Block SPF10






13. LF:- Lotus Fairness

14. LAC:- Lotus Acne Control

15. LSB:- Lakme Sun Block Crème and lotion

56

ANNEXURE

Questionnaire

Data for this study was collected through the interview mode. As a result most of the

questions asked to the retailers were open-ended. Hence an unstructured questionnaire

was used for our purpose of reference. Questions asked are as under:

• What are the various brands stocked in the Sun-Protection, Complexion

Enhancement and Skin Repair Range?

• Do you stock the Derma Care Range? If yes, then on what basis i.e. on customers’

demand or brand name or because of the distribution channel?

• Have you seen the advertisement of the Derma Care Range? Does it bring out all

the special features of the product?

• Comparing all the major brands i.e. Lakme, Garnier, Lotus and Derma Care in this

range, the movement of which brand is the fastest? Rank them.

• Which strategies are adopted by the various brands for promoting their product?

• What schemes could help in the better promotion of the Derma Care Range?

57

WEBLIOGRAPHY

1. www.zyduscadila.com

2. www.everyuth.com

3. http://www.12manage.com/methods_swot_analysis.html

4. http://mall.coimbatore.com/bnh/everyuth/everyuth.htm

58

20204288 Market Analysis of Everyuth Derma Care Range

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Transcript of 20204288 Market Analysis of Everyuth Derma Care Range