Shampoo CategoryPrepared by:

Anirban KarmakarArjun PR

Mahima JhunjhunwalaS.R.Sriram

Agenda Shampoo Market in India Different Companies and their Market Share B2B Brands B2C Brands Both B2B and B2C Brands Segments of Shampoo Market Consumer Market Comparison of 4 P’s of Cavinkare and HUL SWOT Analysis of Cavinkare Suggestions for the Company

Shampoo Market in India The shampoo market in India has total worth of Rs.

4000 crores. Out of this B2C has a market share of 85% and B2B

has a market share of 15%. Assumption: CavinKare and L’Oreal Professional are

the two biggest brands in the B2B market and their total market share is less than 15%. Therefore, the B2B market share would be approximately 15%.

Different Companies and their Market Share

43%

29%

9%7%

4%1% 7%

Market Share of Different CompaniesHULP&GCavinKareDaburL'OrealITCOthers

Source: Business Standard

HUL: Dove, Clinic Plus, All Clear, Ayush, Sunsilk.P&G: Head & Shoulders, Panteen, Rejoice, etc.CavinKare: Chik, Nyle, Meera.Dabur: Vatika.Loreal: Loreal Professional, Loreal Paris.ITC: Vivel, Fiama Di Wills.

B2B BrandsDefence: Sunsilk Clinic Plus Head and ShouldersSalons: L’Oreal Professional Tresseme Matrix

Hotels and Guest Houses:

Fiama di Wills Pantene Clinic Plus Nyle Chik Halo Other Local Players

B2C BRANDS Dove Head & Shoulders Pantene Vivel Karthika Other Local Players

B2B & B2C BRANDS Fiama di Wills L’Oreal Chik Nyle Clinic Plus Sunsilk

Source: Local Retailer

Segments of the shampoo market Consumer market Behavioral segmentation Geographic segmentation Demographic segmentation Price segmentation Hair needs segmentation Pack size segmentation

B2B/Institutional market Defense Salons Hotels and guest houses

Consumer MarketBehavioral segmentation Cosmetic – Sunsilk, Panteen, Dove, Loreal, Garnier, etc. Anti-Dandruff – Head & Shoulder, Clear Anti-Dandruff, etc. Herbal – Nyle, Dabur Vatika, Himalaya, Karthika, Meera etc. Medicinal – Clinic Plus.

Geographic segmentation Urban - Sunsilk, Panteen, Dove, Garnier, Matrix, Loreal, etc. Rural – Chik, Nyle, Dabur Vatika, Clinic Plus, etc.

Demographic segmentation Male – Clear Men’s Active sport and Hair fall Decrease, etc. Female – Clear Women’s Anti Dandruff, Sunsilk, Chik, etc.

Children – Johnson’s Baby Shampoo.

Price segmentation High – Dove, Fiama Di Wills, Loreal, Matrix, etc. Medium – Sunsilk, Head & Shoulder, Clinic All Clear, etc. Low – Chick, Nyle, Clinic Plus, Dabur Vatika, etc.

Pack size segmentation Sachet Bottle

Hair needs segmentation Anti – Dandruff – Head & Shoulder, Clinic All Clear, etc. Colour Care – Dove Color Care, Loreal Paris Color Protect, etc. Repair and Nourishment – Dove Intensive Repair, etc. Hairfall – Tresemme Hair Fall Defence, Sunsilk Hair Fall

Solution, etc. Shine – Sunsilk Black Shine, Nyle, etc. Anti Frizz – Loreal Paris Nutri Sleek,, Dove Frizz Control

Shampoo, etc. Volumizing – Dove Volume Boost, Loreal Paris Volume

Colagen, etc. Smooth – Tresemme Keratin Smooth, Panteen Silky Smooth,

etc. Climate Control – Dryness – Dove Dryness Care, Dove Heat

Defence, etc. Straight Hair – Sunsilk Perfect Straight, etc.

ProductCavinkare Manufactures herbal

products Products focus on mainly

long and strong hair. Female oriented hair

products

HUL Mostly cosmetic and also

has a herbal product – Ayush.

Products focus on different attributes of hair care.

Has male variants also.

PriceCavinkare Target income group: Mostly

low income and middle income group

Mid segment: Nyle and Chik. Low segment: Karthika and

Meera.

HUL Target income group: Caters

to all income group Premium segment: Dove Mid segment: Sunsilk Low segment : Clinic Plus

PlaceCavinkare Mostly in Southern India Has comparatively stronger

presence in rural than urban

HUL Strong presence all over

India Has a strong presence in

both rural and urban

PromotionCavinkare Advertisements mainly

depict women as the consumers having long hair

Few products carry regional language labeling

Creates initiative to educate people about the usage of shampoo

Doesn’t use any celebrity

HUL Advertisements depict both

men and women as the consumers

Product labeling is done in international language only

Uses celebrity endorsements for some of its brands

SWOT AnalysisStrength Ability to understand local market. Strong distribution network. Strong focus on Quality and Natural

ingredients by its R&D Team. Strong product portfolio with

brands like Chik, Nyle . Ability to cater unpenetrated Rural

market by creating mass awareness.

Strong marketing team enabling it to grow out of its regional image.

With the convenience of sachet they have been able to generate enough institutional sales in hotels.

Weakness Not having worldwide or

nation wide presence. All the brands are targeting to

similar consumers and it does not have a profitable portfolio as all its products are low priced products.

It does not have any product in the premium segment.

All its brands provide almost similar benefits with not much differentiation.

It does not have segments such as conditioners and serums.

Opportunities Can go for more vertical mergers so as

to tap more market mostly in the Northern Zone where the reach is still weak.

Can go for more acquisition so as to increase their reach in both local and global market.

They can move into the premium segment and urban market.

They can launch other products such as conditioners and serums.

They can also launch a non-herbal shampoo and enter into the market of cosmetic shampoo.

Using their own brands in their own saloons which are ‘Green Trends’ and ‘Limelite’ help to build a better brand image.

Can focus their advertisements towards male.

Threats More and more FMCG

companies are coming to India, so company might lose market share within their strong shampoo segment.

Other FMCG companies trying to tap into the rural market and the herbal hair category.

Suggestions for the Company: Launch a new product for the

premium and urban segment: It can enhance the profitability

of the portfolio. It can launch its new product in

Southern India and test as it has a strong presence there.

It can hamper the image of the company as all its shampoo’s are economical and for the masses.

Launch a cosmetic shampoo: As it has a strong presence in

Southern India it can try launching a cosmetic shampoo.

It can also enhance the profitability of the portfolio as it can cater also to those people who use other cosmetic shampoo in Southern India.

It can hamper the image of the Company of being a herbal shampoo company.

Suggestions for the Company Launch new products such as

conditioners, hair care serums, etc:

It can also enhance the portfolio of the company.

Its users may not be ready to spend money to use additional product.

Can go for International Collaborations :

Only Nyle and Chik is made available throughout India.

As well as increase profitability.

Can launch a premium shampoo and use it in its own salons:

Help in creating better brand image.

Can create brand awareness

HUL

Cavinkare

Thank You