Mini Project Report on Dove Shampoo

(2010-2012)

Submitted By:

RESHMA M NATH

Under the guidance of Dr. K. Gopalakrishnan Nair

Department of Business Administration

College of Engineering, Trivandrum

Department of Business Administration

 College of Engineering, Trivandrum
2011

Certificate

Certified that this Mini Project Report titled “Dove

Shampoo” is a bonafide

record work done by RESHMA M NATH in this department

as part

Of second semester, MBA in the Department of Business

Administration,

College of Engineering, Trivandrum.

Dr. K. GOPALAKRISHNAN Prof S. SIVAKUMAR

NAIR Head of Department
Department of Business Department of Business
Administration Administration
College of Engineering College of Engineering
Trivandrum Trivandrum
 ACKNOWLEDGEMENT

I am extremely grateful and thankful to Dr. K. Gopalakrishnan

Nair for his valuable guidance for helping me complete this
Prowess report. I also show my immense gratitude to Prof. S.
Sivakumar the Head of Department for all the help he has given
me in doing the report.
I thank my colleagues also for their support and cooperation
they gave me for completing this report.
I also thank God from the bottom of my heart for being with me
complete this report successfully.

CONTENTS
Introduction:
Shampoo is a hair care product used for the removal of oils, dirt, skin particles,
dandruff, environmental pollutants and other contaminant particles that gradually
build up in hair. The goal is to remove the unwanted build-up without stripping out
so much sebum as to make hair unmanageable.

Even though most modern shampoos include a conditioning component,

shampooing is frequently followed by the use of conditioners which ease combing
and styling.

The word shampoo in English is derived from Hindi chāmpo and dates to 1762.
The Hindi word referred to head massage, usually with some form of hair
oil.Similar words also occur in other North Indian languages. The word and the
service of head massage were introduced to Britain by a Bengali entrepreneur Sake
Dean Mahomed. Dean Mahomed introduced the practice to Basil Cochrane's
vapour baths while working there in London in the early 19th century, and later,
together with his Irish wife, opened "Mahomed's Steam and Vapour Sea Water
Medicated Baths" in Brighton, England. His baths were like Turkish baths where
clients received an Indian treatment of champi (shampooing), meaning therapeutic
massage. He was appointed ‘Shampooing Surgeon’ to both George IV and William
IV.

In the 1860s, the meaning of the word shifted from the sense of massage to that of
applying soap to the hair. Earlier, ordinary soap had been used for washing
hair.However, the dull film soap left on the hair made it uncomfortable, irritating,
and unhealthy looking.

During the early stages of shampoo, English hair stylists boiled shaved soap in
water and added herbs to give the hair shine and fragrance. Kasey Hebert was the
first known maker of shampoo, and the origin is currently attributed to him.
Commercially made shampoo was available from the turn of the 20th century. A
1914 ad for Canthrox Shampoo in American Magazine showed young women at
camp washing their hair with Canthrox in a lake; magazine ads in 1914 by Rexall
featured Harmony Hair Beautifier and Shampoo. Originally, soap and shampoo
were very similar products; both containing the same naturally-derived surfactants,
a type of detergent. Modern shampoo as it is known today was first introduced in
the 1930s with Drene, the first shampoo with synthetic surfactants.
Composition
Shampoo is generally made by combining a surfactant, most often sodium lauryl
sulfate and/or sodium laureth sulfate with a co-surfactant, most often
cocamidopropyl betaine in water to form a thick, viscous liquid. Other essential
ingredients include salt (sodium chloride), which is used to adjust the viscosity, a
preservative and fragrance. Other ingredients are generally included in shampoo
formulations to maximize the following qualities:

• Pleasing foam
• Easy rinsing
• Minimal skin/eye irritation
• Feels thick and/or creamy
• Pleasant fragrance
• Low toxicity
• Good biodegradability
• Slightly acidic (pH less than 7), since a basic environment weakens the hair
by breaking the disulfide bonds in hair keratin.
• No damage to hair

Many shampoos are pearlescent. This effect is achieved by addition of tiny flakes
of suitable materials, e.g. glycol distearate, chemically derived from stearic acid,
which may have either animal or vegetable origins. Glycol distearate is a wax.
Many shampoos also include silicone to provide conditioning benefits.

Commonly used ingredients

• Ammonium lauryl sulfate
• Ammonium chloride
• Glycol
• Sodium laureth sulfate is derived from coconut oils and is used to soften
water and create a lather. There was some concern over this particular
ingredient circa 1998 about this chemical being a carcinogen, but that has
been disproved.
• Sodium lauryl sulfate
• Sodium Lauroamphoacetate is naturally derived from coconut oils and is
used as a cleanser and counter-irritant. This is the ingredient that makes the
product tear-free.
 • Polysorbate 20 abreviated PEG(20) is a mild glycol based surfactant that is
used to solubilize fragrance oils and essential oils; meaning it causes liquid
to spread across and penetrate the surface of a solid (i.e. your hair).
• Polysorbate 80 abreviated PEG(80) is a glycol used to emulsify (or disperse)
oils in water (so the oils don’t float on top like Italian salad dressing).
• PEG-150 Distearate is a simple thickener.
• Citric Acid is naturally derived from citrus fruits and is used as an
antioxidant to preserve the oils in the product. While it is a severe eye-
irritant, the Sodium Lauroamphoacetate counteracts that property. Citric acid
is used to adjust the pH down to approximately 5.5. It is a fairly weak acid
which makes the adjustment easier. Shampoos usually are at pH 5.5 because
at slightly acidic pH the scales on a hair follicle lay flat making the hair feel
smooth and look shiny. it also has a small amount of preservative action.
Citric acid as opposed to any other acid will prevent bacterial growth.
• Quaternium-15 is used as a bacterial/fungicidal preservative.
• Polyquaternium-10 is a totally different chemical than Quaternium-15. This
chemical acts as the conditioning ingredient, providing moisture and fullness
to the hair.
• Di-PPG-2 myreth-10 adipate is a water-dispersible emollient that forms clear
solutions with surfactant systems.

Shampoos are of the following types:

 Powder Shampoo
 Liquid Shampoo
 Lotion Shampoo
 Cream Shampoo
 Jelly Shampoo
 Aerosol Shampoo
 Specialized Shampoo
• Conditioning Shampoo
• Anti- dandruff Shampoo
• Baby Shampoo
• Two Layer Shampoo

Shampoo Industry in India:

 Indians have evolved from the ‘champi’ times,
wherein hair oil was considered to be the only product meant for hair care. Today,
there are a plethora of options available from shampoos and conditioners to hair
dyes and post wash products. In this article we focus on the shampoo segment,
which is considered to be one of the fastest growing segment in the hair care
industry. The India shampoo industry is estimated at Rs 14 bn and is growing at an
average rate of 20% per annum. According to AC Nielsen, shampoo is one of the
fastest growing categories within FMCG sector and is expected to grow at 25% per
annum in the coming years.

Segmentation: The shampoo industry is segmented on benefit platforms: cosmetic

(shine, health and strength), anti dandruff (AD) and herbal. 20% of the total
shampoo market is accounted by the AD shampoos. The AD segment is the fastest
growing segment, growing at 10% to 12 % every year

Usage: The frequency of shampoo usage is very low in India. 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. About 50% of consumers use
ordinary toilet soaps to wash their hair. About 15% of consumers use toilet soaps
as well as shampoo for cleaning their hair. Also 70% of the total shampoo sales are
through sachet sales. HLL has higher stakes in the rural market with an 80% share.
The bottle sales are popular in the northern region where 50% of the shampoo
bottles are sold.

From a penetration level of 13% in 2000, now almost a third of the country's rural
population uses shampoo with penetration levels zooming to 32% in 2005. While
the north and west zones have tripled in penetration, the south and east zones have
doubled during the period between the years 2000 to 2005

After a sober growth in 2004 due to the downturn of the FMCG sector, shampoo
sector saw strong growth in the next two years due to the introduction of sachets
and a surge in rural demand. The overall shampoo market, which sees annual
volume sales of approximately 63,000 tonnes, saw rural offtake grow by 40% last
year, while urban demand grew half that at 21%.

India is and will remain for some time one of the youngest countries in the world.
Currently there is a population of 163 m teen in India. Approximately half of the 1
bn plus population is under the age of 20, which is one of the largest consumer of
hair care products. This provides huge market for the shampoo players. Also, with
the increasing income levels of the middle class population, the usage of shampoos
has increased.

Despite its undisputed potential, the rapid expansion of the shampoo market was
interrupted in 1999. Overall growth rates in the market slowed to 1.7% in 1999,
from 16% the previous year. Lack of innovation was the major reason for
slowdown. The perception that shampoos contain harsh chemicals that could
damage hair, high price and the view that the shampoo is more of a glamour
product rather than a hygiene product led to lower sales. The players came out with
the idea of smaller packs, which were a success. Also, products like anti dandruff
started getting attention and became the fastest growing category. Players like
Dabur and Ayush came up with herbal shampoos.

However in recent times, the value-added shampoo segment is getting quite

crowded, with a range of pharmaceutical and cosmetics companies launching
specialised products. Godrej Soaps has leveraged its dominance of the hair colour
market to launch Godrej Colourgloss shampoo, for users with coloured hair, while
pharma companies (including Johnson & Johnson) have launched medicated anti-
dandruff shampoos (which will probably carry higher credibility with buyers).

Going forward, by 2015, the under 20 crowd will make up 55% of all Indians
providing a huge opportunity to players in this sector. Further, there is potential for
converting users of toilet soaps and occasional users. With increasing awareness
and advertising campaigns, the overall penetration of shampoos in India is likely to
multiply manifold in the next two to three years. The introduction of shampoo in
India dates back to the British reign in the country. Being a recent development the
growth of shampoo or rather the penetration levels of shampoo in the India has
been commendable.
The shampoo market in India is estimated to be Rs 2,500-3,000 crore. The
shampoo market is India is categorized according to the benefits they provide.
Mostly consisting of three kinds of shampoos cosmetic, herbal and anti dandruff,
the shampoo market in India has managed to tap users of the various segments
according to their requirements and preferences.

Due to the continuous efforts of the top shampoo brands in India penetration of
shampoos in urban areas is almost 100%. As far as penetration of shampoo in the
rural areas is concerned it has risen by almost 18% in the current scenario.
About DOVE shampoo:

Dove hair care range was introduced in 1998 in Europe

and in 2003 in North America. In India, Dove hair care range was launched in
2007. Within 15 months of its launch, dove has become the fastest growing
shampoo brand in the country. The range has highly conditioned formulation
which delivers the moisture promise of Dove to the consumer.

Dove has a range of hair care products that repair accumulated damage and protect
and care for the hair.The new Zero Damage System repairs and protects hair from
damage that stands between you and the beautiful hair you desire. The range
includes ‘daily therapy’ shampoo and conditioner, ‘dry therapy’ shampoo and
conditioner, ‘breakage therapy’ shampoo, conditioner, serum and hairmask.

Dove hair care products where useful in preventing anti aging and anti frizzing i.e
Shampoos were designed in such a manner that it prevented hair damage to large
extent.The new Dove range of shampoos has been designed to particularly focus
on issues related to colored hairs.It is seen that that India consist of very small
segment of women i.e 20% who use hair color as compared to women in
developed countries. Apart from this there is a range of daily hair care products
with the special one third moisturizers and another for extremely dry and frizzy
hair.

Tagline adopted was”More beautiful hair with every wash”.

Ingredients:The ingredients are,

Aqua, Sodium Laureth Sulfate, Sodium C12-13 Pareth Sulfate, Cocamidopropyl
Betane, Glycol Distearate, Dimethiconol, Glycerin, Tea-Dodecylbenzenesulfonate,
Lauryl Glucoside, Arginine, Panthenol, Hydrogenated Palm Glucoside, Carbomel,
Sodium Chloride, Guar Hydroxypropyltrimonium Chloride, Sodium Hydroxide,
Citric Acid, Parfum, DMDM Hydantoin, Ppg-9.
4 P’s

PRODUCT:

• Dove Intense Repair :

At Dove they believe that the hair is
different; and different hair needs different solutions. So when hair has
split-ends, it's actually damaged on the inside. Dove Intense Repair corrects
the real cause of split-ends - damage. Its 1/4 Moisture Milk and Fiber
Actives go deep inside to repair damage so that the split-ends are lost
without losing hair- length.

• Dove Hair Fall Rescue:

At Dove believe that , the hair is different; and
different hair needs different solutions. So when hair falls easily, it's
actually damaged on the inside. Dove Hair Fall Rescue corrects the real
cause of hair fall - damage. Its 1/4 Moisture Milk and Micro Moisture Serum
go deep inside to repair damage so that lesser hair falls and fuller hair.
• Dryness therapy:
At Dove they believe that the hair is
different; and different hair needs different solutions. So when hair feels
dry, it's actually damaged on the inside. Dove Dryness Care corrects the real
cause of dryness - damage. Its 1/4 Moisture Milk and Micro moisture serum
go deep inside to restore hair's lost moisture and keep dryness caused by
damage at bay. So the hair feels soft and smooth.
• Dove daily shine shampoo: contains patented micro moisture serum
that defends your hair against constant aggressions that cause dullness.
• Dove dandruff care: ZPTO & micro moisture serum combination keeps
dandruff under control without drying your hair, from the first wash.
PRICING:

The Pricing Strategy followed by DOVE are as follows:

• Competitive Pricing: Here the price of the shampoo is varied in response

to the price fluctuations induces by the competitors.

• Penetration pricing is the pricing technique of setting a relatively low

initial entry price, often lower than the eventual market price, to attract new
customers. The strategy works on the expectation that customers will switch
to the new brand because of the lower price.

• Geographic Pricing: Variable-pricing method in which a selling price is

computed according to the customers or markets distance or transportation
cost incurred.

PROMOTION:

• Build top of the line consumer’s awareness

• Creating a personality of the brand.

Besides having these general objectives, the advertising objectives are set
avoiding to the advertising strategy for each product. E.g: Dove advertising
objectives, since it was launched were :

• To increase the usage

• Conditioning benefits
• Make the hair appear clean and shiny
• Impart a feel of freshness due to fragrance
• Easy to manage, silky, soft hair
• Unique shampoo for every hair type
• Effectively communicate brand promise
T.V is the one of the best way through which the product can be
promoted.Another promotion activity should be value added offer like “buy two
get one free” or free gift with every purchase (depending on the promotional
budget)

To promote the Dove shampoo, the company set out to display the beauty myth
that only models are “beautiful” by using “real women” to front the campaign

PLACE:

The product is more popular among high class and upper middle class
people. Competition with home products like Sunsilk, Clinic Plus etc. They target
women of all ages.

Supply of dove shampoo has seen a number of changes in

the recent years. With increase production from the Hindustan Unilever according
to more demand the price of Dove is more. Dove shampoo is one of the pioneer
shampoo in Indian market and it has been proved in lab that Dove shampoo is no. 1
shampoo in India. Due to this the number consumer in market has increased
rapidly, which makes increase of supply. This shampoo is doing prestige market
pricing.

In economics if demand for certain product is greater, then the price will be higher.
Larger companies benefited from the economics of the scale; they are able to
produce materials in bulk, have easier to access to efficient transport available in
more markets and can produce large volume of shampoo. This is a major factor
why mass produced shampoo is less expensive.
SWOT analysis:
Strength:
• Strong Brand name/ image of products
• Contains micro moisture serum which makes the hair soft and manageable.
• High quality product
• The target market is educated professionals, who belongs to premium and
middle class
• Very good distribution network all over India

Weakness:
• Competitors with strong promotional activities
• Customer are offered better alternatives due to the competition
• Poor promotion of free samples and sachets

Opportunities:
• Population expanding at a rapid rate
• Consumers are becoming more quality conscious
• Customer base is increasing with effective marketing
• Baby shampoo is another area where they can make huge profits

Threats:
• Political and economic factors
• Partial government policies
• High rate of competition
• Local and global competition
Data Collection :

For this mini project, primary data as well as secondary data was collected.

Primary data has been collected through personal contact. For this purpose
questionnaire were distributed to the consumers as well as others. Secondary data
has been collected from books, magazines and websites.

The objective of collecting data was to know about the usage of

Dove shampoo by the common people. This was done by distributing a

questionnaire of 25 questions to 50 people of which there were users and also non-

users of Dove. Their opinions were collected and the survey was tabulated and

analyzed.
DATA ANALYSIS:

(a) The products used by people:

Number Percentage
Shampoo 31 62
soap 4 8
shikakai 7 14
Shampoo and shikakai 8 16
It is analyzed that , 62% out of 50 people uses shampoo

whereas 16 % uses both shampoo and shikakai, 14%

uses shikakai only and only 8 % uses soap.

(b) Brands used by people:

Number Percentage
Clinic plus 8 20.5
Dove 12 30.7
Sunsilk 5 12.8
Garnier 7 17.9
Head & Shoulders 7 17.9
It can be analyzed that 30.7% of the 39 people who use shampoo uses

Dove, followed by Clinic plus, garnier, head & shoulders and lastly

sunsilk. So using the 30.7% of the people the survey on Dove is done.
(c) How people are influenced to buy Dove:

Number percentage
Advertisement 8 66.6
Friends & family 2 16.6
Children 0 0
Salesmen 2 16.6
Price 0 0
66.6% of the people came to know about dove through advertisements
and rest came to know about it from friends& family and salesperson.
This shows that Dove shampoo’s promotional activities are satisfactory.
(d) Quantity in which Dove is bought:

Number Percentage
Sachets 1 8.3
Bottles/bigger packs 7 58.3
Family packs 2 16.6
Mini bottles 2 16.6
Most of the people i.e 58.3% of the people buys Dove in family packs or
large bottles. This may be due to the high consumption of the shampoo
in their family.
(e) Reasons to choose Dove:

Number Percentage
Smooth silky hair 9 75
Fragrance 0 0
Best available brand 2 16.6
Flexible range 1 8.3
Most of the people chose Dove because they experienced smooth silky
hair after their first wash. Flexible range and also Dove being the best
available brand were also reasons for some people.
(f) Type of Dove shampoo most people use:

Number Percentage
Dove intense repair 2 16.6
Dove hair fall 3 25
Dove dryness therapy 5 41.6
Dove daily shine 1 8.3
Dove dandruff control 1 8.3
There are 5 varieties of Dove shampoo available in India. Out of
them the most used was Dryness therapy which made dry, frizzy
hair soft and silky. The next commonly used shampoo was hair
fall rescue followed by intense repair, daily shine and dandruff
control.
(g) Features people look for in a shampoo
Number Percentage
Smoothening of hair 16 41
Anti dandruff 12 30.7
Conditioning 5 12.8
Prevents hair fall 6 15.4
Most of the people used shampoo to have a smooth hair which
felt silky and soft. This was followed by removing dandruff,
conditioning and then preventing hairfall.
Reasonable price for shampoo usage by people:
Number Percentage
50-99 12 30.7
100-149 18 46.2
150-199 7 17.9
Above 200 2 5.1
46% of the people think that the reasonable price of a shampoo
is 100-149. This shows that Dove is providing a reasonable
price in case of shampoos. But as most of the people buy
shampoo in large packs, the price will increase.
Reasons for not using shampoo:
Number Percentage
Due to presence of 3 27.2
chemicals
Fear of hair loss 1 9
Dry n frizzy 3 27.2
Not economical 4 36.4
People didn’t use shampoo because of them think that shampoo is
expensive . Some believe that the presence of chemicals will damage
their hair and some believed that their hair will become dry n frizzy.
Income group of people:

Number Percentage
1000-4999 3 6
5000-24999 26 52
25000-49999 12 24
50000-99999 7 14
Above 100000 2 4
Age group of people:

Number Percentage
15-25 22 44
26-35 14 28
36-45 10 20
Above 45 4 8
Appendix- Sample Questionnaire:

Name: Sex:

Occupation:

2.
3. What product do you use for your hair? ( if b or c, go to question 21)
a. Shampoo
b. Soap
c. Shikakai
d. Shampoo and shikakai
4. If you use a shampoo, how often do you use it?
a. Daily
b. Twice a week
c. Weekly
d. Monthly
5. What brand of shampoo are you using?(any answer except b, go to 15)
a. Clinic Plus
b. Dove
c. Sunsilk
d. Garnier
e. Head & Shoulders
6. What influenced you to buy Dove?
a. Advertisements
b. Friends & family
c. Children
d. Salesmen
e. Price
7. In what quantity do you buy Dove?
a. Sachets
b. Bottles/bigger packs
c. Family packs
d. Mini bottles
8. How many members of your family use Dove?
a. All
b. Siblings only
c. Only you
9. Why you choose Dove?
a. Smooth,silky hair after usage
b. Fragrance
c. Best available brand
d. Flexible range
10.Do you find any additional utility by using Dove?
a. I use it because it is used in urban areas.
b. It really helps me maintain my hair
c. I use it because someone at home uses it
d. I donot find any difference between /dove and other shampoos
11.Which Dove shampoo do you use?
a. Dove Intense repair
b. Dove hair fall rescue
c. Dove dryness therapy
d. Dove daily shine
e. Dove dandruff care
12.What improvements would you suggest for Dove shampoo?
a. Should be available in other varieties
b. Should decrease the price
c. Should come in more fragrance
d. Should increase availability of products in more number of
retail outlets
13. Are you satisfied with its cost?
a. Obviously
b. Almost
c. Yes
d. It should be slightly less
14.What changes have you felt in your hair after using Dove shampoo?
a. My hair grows healthy
b. I become more confident about my beauty and personality
c. My hair has become silky
d. Reduced dandruff
15.Have you used any shampoo before this?
a. Yes
b. No
16.What is the difference between your previous shampoo and Dove?
a. This shampoo does not contain any harmful chemicals
b. Fragrance of this shampoo is better than previous one
c. It is more effective and suitable for my hair
d. No difference
17.What features do you look for in a shampoo?
a. Smoothening of hair
b. Anti dandruff
c. Conditioning
d. To prevent hairfall
18.How often do you change your brand?
a. Very often
b. Depends on price of new brand
c. To experiment with new brand
d. I stay loyal to my brand
19.What are the features that attract you more?
a. Fragrance
b. Effectiveness( silky hair & dandruff control)
c. Ingredients
d. Color
e. Cost
20.What do you consider a reasonable price for average bottle of shampoo?
a. 50-100
b. 100-150
c. 150-200
d. Above 200
21.If your income rose, will you increase the consumption of shampoo?
a. Strongly agree
b. Agree
c. Can’t say
d. Disagree
e. Strongly disagree
22.What do you look for buying a shampoo?
a. Packaging
b. Features
c. Cost
d. Brand
23.What is your monthly income?
a. 1000-4999
b. 5000-24999
c. 25000-50000
d. 50000-100000
e. Above 100000
24.What is your age group?
a. 15-25
b. 26-35
c. 36-45
d. Above 45
25. What is the reason for not using a shampoo?( do not answer if you use a
shamp00)
a. Due to its chemical content
b. Hair loss
c. Dry n frizzy hair
d. Not economical