Shampoos – rural market

Clinic plus

chik Sunsilk

Vatika Heads & shoulders

Introduction Facts

Approximately 70% of the India’s population resides in the rural area.

Increase in population = Increase in demand.

Out of 2 million BSNL mobile connection, 50% are in small village and towns.

41 million Kisan credit cards issued against 22million credit + debit cards in urban.

Out of 20 million Rediffmail signup, 60% are from Small towns, & 50% transactions on Rediff online shopping site done by these towns.

42 million rural HHs avail banking services compared to 27 million in urban.

Contd… Seeing the potential “HUL” decided to enter into the Rural

Market.

HUL entered into the Rural Market with Project Shakti in 2001

Objective : “It seeks to empower underprivileged rural women by providing income generating opportunities , health and hygiene education”

Shakti entrepreneur earn Rs. 700 to 1000/ month almost double their average household income.

Achievement- 45,000 Shakti entrepreneurs in rural areas across 15 states in 1,00,000 villages.

Objectives of the Research To Analysis

Level of awareness with respect to shampoos.

Response of consumers towards clinic plus.

Brand Recall of Clinic Plus in the rural Market.

Usage (X No. of times/ week)

Substitute products used.

How Shampoo satisfy their needs.

Research Methodology

Research Type: Primary

Data collection Method: One to One interaction

Sample Size: 15-20consumers/village (Visited 8 villages)

5 - 8 retailers/village

Respondent Segment: Gender : M/F

Age groups : All

Research Geographical Area: Haryana

Uttar Pradesh

Faridabad

Shampoo Market

Market for Shampoos: Rs 1500 crore Sachet sales accounts for 70 % of total sales

Rural India 80 % Awareness Level AD shampoos accounts for 20 % of Total Sales AD is the fastest growing segment (10% to 12% P.A) High Penetration level of various brands including HUL Expected growth rate is 25 % P.A Biggest competitor: Bathing soap (LUX etc.)

Bazaar Insight Bazaar has well stocked shops with sachets and bottles of major and regional brand shampoos. Growing competition from upmarket players like Garnier and Dove are a potential threat for this market as well.

Product Line Depth of Different Brands

Consumer’s views Chik - My didi told me how to use it………I love the smell

I use Lux soap ……… give me soft hair

I use all of them. I like H&S, VATIKA, CLINIC PLUS, SUNSILK. They make hair soft.

I tried number of brands and then chose CLINIC PLUS. I don’t go by TV ads, they are all the same.

Consumer’s viewsMom doesn’t use it . Only I put shampoo before going to school every SUNDAY.

CLINIC PLUS. I buy the shampoo from the market

I like SUNSILK and CLINIC PLUS. We buy bottle for entire family once a month.

Market share

HUL – Hindustan unilever ltd

Revenue percentage - HUL

Issues to be Resolved Too many brands and less availability lead to brand shift Presence of fake products create problem for companies Shampoos were perceived to be as women usage product, hence

men feel shy in using these brands. Most consumers use shampoo only once or twice in a week Shampoos are used on special occasions such as weddings,

parties etc. 50p sachet is used by 2-3 people (especially Men) Myth - shampoos lead to higher hair fall/weak hair as per

respondents Lack of intensive promotional schemes for retailers and attractive

trial offers like free sampling for consumers is affecting demand. Inadequate information about the usage of the product

Findings

Major brands recalled during the interaction were Clinic Plus, SunSilk, Chik and Head & Shoulders shampoos.

Clinic Plus most recalled Sachet rules Younger Gen (12-18 yrs) is more experimental TV advertisements and strong word of mouth induces

personal trials of different brands Key drivers of using their preferred brand are softness of

hair, cleanliness and fragrance

Suggestions Free skin care tips from shakti ammas Special prizes for maintained & long hair Open beauty parlors in small villages/towns free samples for creating awareness about its benefits Branded mobile hair styling vans special get together for brand popular women

Contd… Shampoo Day every fortnight Paint schools with brand’s colours Distribute free samples Organize games & create awareness Distribute branded calendars, stickers, hair clips, school hair bands, notebooks with hair care tips for students Brand class time tables, basketball courts, benches, posters with shampoo brands stressing on health and hygiene

HUL – corporate social responsibility

Project Sanjivini - Spread awareness about HIV/ AIDS

Project shakti - training, and empowerment of women

Project I shakti – the Andhra Pradesh govt’s Rajiv internet village program

Shakti Vani – social communication program

Thank You