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Industry Analysis Of Facewash Industry

ACKNOWLEDGEMENT

It is with real pleasure that, I record my indebtedness to my academic Guide, Mr.Ankur Roy for his counsel and guidance during the preparation of this project. He is the driving force right from beginning till submission

I express my gratitude to my colleagues who has helped me a lot to compile up this project. All suggestion for the important of the project will be greatfully acknowledged.

INDEX

About Face Wash Industry

Company Profiles HUL Himalaya Drug company Johnson&Johnson Loreal Nivea Porters 5 Forces Analysis External Factors Evaluation Matrix (EFE) Competitive Profile Matrix (CPM) Conclusion Bibliography

FACEWASH INDUSTRY

Introduction
Facewash is a part of Fast Moving Consumer Good (FMCG). FMCG are the products that consumer use on frequent moved products which are used for cleaning of face. Furthermore,FMCG goods are said to be the goods that has low manufacturing and low consuming cost thats why they are called quick movers. Face wash helps especially in clearing away all the dust particles and by the moisturizer in the face wash helps effectively in keeping the skin smooth, fresh and supple. As soaps have more chemical in comparison to the face wash; so, face wash making an eternal choice for every concern individual. With the increasing awareness various face washes have come into the cosmetic world. Any one of them would suit according to your skin type. Face wash helps in fighting the harshness provided by the sun and some other outside pollutants which causes damage to ones skin. In most cases, skin gets roughened by use of chemical based so-called beauty soaps. Those soaps may cause wrinkles, too. On the other hand, some face wash which is very hard and does not suit ones skin type can cause problem as well. So, pick a right face wash which is better for your skin tone. Many herbal face washes are now in the market. Those would be very useful to safeguard one from any side effects. Using face wash is an important part of facial care. You could easily see the benefits after using it regularly. Keep in mind ones face is the first page of ones character which people analyze naturally depending on what they see. Therefore, the brief introduction can be very significant. It should not be scarred by use of unwanted thing like soap on your face.

Five major players of Face wash industry


HUL (Ponds face wash) Himalaya Drug co.(Himalaya face wash) Johnson&Johnson (Clean&clear face wash) Loreal (Garnier face wash) Nivea (Nivea face wash)

Introduction to HUL
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.

The Company has over 16,000 employees and has an annual turnover of around Rs.19, 401 crores (financial year 2010 - 2011). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about 44 billion in 2011. Unilever has about 52% shareholding in HUL.

Ponds
Pond's is an International Brand with a presence in over 56 countries. It is a name synonymous with Skin Care for almost a century now. Pond's is a trusted companion that understands the significance of Beauty for the Indian woman. Pond's has passionately & diligently led the way in understanding a woman's skin care and beauty needs/ essentials. With this understanding it has cut across age groups and skin care requirements to better it's portfolio. Today Pond's has spread it's wings to cover anti ageing, skin lightening, oil control, moisturizing and other skincare segments. In addition, each range within the portfolio offers set of options, which include day creams, night creams, serums, masks, eye treatments, facial foams and more.

POND'S perfect matte Pimple Care Facial Scrub


POND'S daily facewash

POND's intense moisture skin Softening Cleansing Foam

Introduction of loreal
L'Oral, the world leader in cosmetics, is synonymous with beauty, innovation and scientific excellence in more than 130 countries. Success starts with our people. Our people are our most precious asset - respect for people, their ideas and differences, is the only path to sustainable long-term growth. That's why we value individual talent over process and structure.

In India, we are proud to encourage scientific education for women through our Scholarship programme For Young Women in Science in association with our global partners - UNESCO. Our programme Hairdressers Against AIDS fights against ignorance about AIDS by training a network of hairdressers about AIDS prevention so they can pass the message on to the public. Beautiful Beginnings provides training in beauty services to underprivileged women. We invite you to explore our website and discover more about L'Oral and our passion for beauty.

GARNIER FACE WASH


Garnier Skin Naturals face wash range is perfect for the Indian Summer. Available in three varieties, namely Pure, Fresh and Lift, this range is the answer to your skin cleansing needs. Pure is a boon for people with oily skin that is prone to acne and blackheads. It contains the power of zinc and cucumber that unclogs pores to reveal healthy skin. Fresh is made for normal and combination skin, enriched with fruit waters to plump your skin. And if customers are above 40 and battling fine lines and wrinkles, Lift, with ginger and cherry extracts, might be what customers are looking for. Theres something in it for everybody!

Garnier Light Fairness Face Wash


When the Garnier Skin Naturals Light Fairness Products had launched last year in India, it was very natural for customers to buy all the products belonging to that particular range and try them out. Cuctomers has used the much hyped Garnier Light daily moisturizer and eye roll with temporarily satisfying results, so decided to move on to try the face wash as well.

Garnier Men Power Light Fairness Face Wash Garnier gentle Face wash Garnier Fresh face wash

JOHNSON & JOHNSON


Every day, millions of people around the world enjoy the benefits of products from the Johnson & Johnson Family of Companies. Very likely, someone in your family is one of them. Familys health and well-being is companies passion. Thats why our companies offer the worlds broadest range of health care products. Whether you have a skin blemish or a serious medical condition, you and the health professionals you trust can turn to our companies products for comfort and care.

In your home, products from our consumer health companies brighten your smile, make your skin healthy and beautiful, provide relief from a nagging cough. You can rely on us to help keep baby fresh, quit smoking, or provide wound care.

In operating rooms and laboratories, doctors and nurses, too, rely on products from our medical technology companies. Our products help them help people conquer life-threatening obesity, ward off colon cancer, and control their diabetes. The list goes on.

And products from our pharmaceutical companies have likely helped someone you know. These prescription medicines treat a wide array of conditions, ranging from migraines and rheumatoid arthritis to cancer and serious infections.

CLEAN AND CLEAR FACE WASH


Clean & Clear is a line of dermatology products owned by Johnson & Johnson. The brand was originally developed by Revlon as a line of sensitive skin personal care items in 1957. The Clean and Clear name was based on products that contained no fragrance or dyes, and left no residue after rinsing. The original line featured shampoos, conditioners and facial skincare products. In 1991, Revlon sold Clean and Clear to Johnson and Johnson. In 1994, Clean and Clear adopted its current slogan, Clean and Clear and Under Control.

Johnson and Johnson repositioned Clean & Clear within the market, focusing on acne; the products are similar to their Neutrogena line, but less expensive. Their primary focus is on skincare of young women but has extended their range to include products treating a wider range of conditions, recently launching a line of products SOFT focused on facial moisturizing. CLEAN AND CLEAR FOAMING FACIAL WASH: Mild oil-free formula works in two days to give you Clean and Clear skin. Removes oil, dirt, and other impurities.

HIMALAYA DRUG COMPANY


The Himalaya Drug Company was founded in 1930 by Mr. M. Manal with a clear vision to bring Ayurveda to society in a contemporary form and to unravel the mystery behind the 5,000 year old system of medicine. This included referring to ancient ayurvedic texts, selecting indigenous herbs and subjecting the formulations to modern pharmacological,toxicological and safety tests to create new drugs and therapies. Eighty one years ago, on a visit to Burma, Mr. Manal saw restless elephants being fed with a root to pacify them. The plant from which this was taken is Rauwolfia serpentina. Fascinated by the plant's effect on elephants, he had it scientifically evaluated. After extensive search, Serpina, the world's first anti-hypertensive drug, was launched in 1934. The legacy of researching nature forms the foundation of Himalaya's operations. Himalaya has pioneered the use of modern science to rediscover and validate ayurveda's secrets. Cutting edge technology is employed to create pharmaceuticalgrade ayurvedic products. As a confirmation that Himalaya is dedicated to providing the highest

quality and consistency in herbal care the Company was awarded an ISO 9001:2000 certification in 2003. Since its inception, the company has focused on developing safe, natural and innovative remedies that will help people lead richer, healthier lives. Today, Himalaya products have been endorsed by 300,000 doctors around the globe and consumers in 82 countries rely on Himalaya for their health and personal care needs.

HIMALAYA FACE WASH


Purifying Neem Foaming Face Wash Action:Purifying Neem Foaming Face Wash is a soap-free herbal formulation that gently removes impurities from skin and prevents pimples. Enriched with Neem, Turmeric & Vetiver. Neem, well known for its anti-bacterial, antiviral and germicidal activities, helps to control acne, pimples and their recurrences.Turmeric is also known for its antiseptic activity and soothes skin.Vetiver provides coolness and refrigerant activity. It also has antibacterial activities. Ingredients Include: Azadirachta indica (Neem, Nimba) Curcuma longa (Turmeric, Haridra) Veiveria zizaniodes (Vetiver, Ushira)

Nivea India
Nivea International was launched 125 years back with its head office in Hamburg, Germany. Nivea India Pvt. Ltd started it full fledged operations in India in 2006 with its headquarters based in Mumbai. Nivea India is an associate of Beiersdorf AG, which is a worldwide gigantic cosmetic brand.

Rakshit Hragave is the current Managing Director of Nivea India Pvt.Ltd., who joined the group this February, 2011.Nivea India is now making out an aggressive growth program which will concentrate on tie-ups with contract manufacturing enterprises meant to boost its production capacity in India.

Policies of Nivea India Pvt.Ltd


Nivea India rests on few important policies which make it out as one of the world's reputed cosmetics brand as: A strongly dedicated and innovative research and development team. A strong sales team. A Dedicated employees.

Brand History One of the oldest products of Nivea is Nivea creme produced way back itself in its launch year, 1911. The product was renovated and a new form was given to it in 1925.

Nivea Products launched in India

Nivea's products cover a broader range as general purpose creams, lotions, body care, hand care, men's care, female care, deodorant, soaps, talc and many others. Here is a summary of the list of the products launched in India: Nivea Body lotion; Intensive care and skin milk: This has been specially designed for dry skin types. Nivea Smooth Milk lotion: designed for smooth as well as rough skin. Nivea Creme: One of its oldest and best products, it is suited for every skin types. Nivea visage Sparking Glow: It gives a fair and shiny skin and provides an over all protection. Nivea Visage Refreshing Cleansing Milk: Effective for all types and thoroughly cleanses the skin.

FIVE PORTER MODEL ANALYSIS

The Threat of new entrants:


New entrant to an industry can raise the level of competition, thereby reducing its attractiveness. The threat of new entrants largely depends on the barriers to entry. High entry barriers exist in some industries where as other industries are very easy to enter. The key barriers to entry include: Capital/investment requirement Customer switching costs Access to industry distribution channel Economies of scale Expected retaliation

Capital/investment requirement: the industry where the capital requirement is high, there is a barrier to entry. Therefore the threat of new entrant is less. set up manufacturing plant. Better technological equipment are required for good quality refining. Customer switching costs: switching cost is the cost incurred by a customer in shifting from one product or brand to another. In the facewash industry, there are many brands and at different prices. Access to industry distribution channel: distribution channel is apath through which the goods and services flow in one direction (from vendor to customer ). As the facewash is a FMCG product, one needs to have a proper access to the market

Rivalry among existing firms:


An industry characterized by high rivalry is unattractive because it limits the ability to achieve above normal economic rents. The intensity of rivalry between competitors in an industry will depends upon: The structure of competition Industry growth rate

Degree of differentiation Exit barriers etc.

The structure of competition: the rivalry is more intense where there are many competitors. Rivalry is less when an industry has a clear market leader. If the players in the industry are fragmented, competition is high. Facewash industry is a fragmented industry. All the firms are having somehow equal market shares. Industry growth rate: if the growth rate of any industry is slow, it becomes a market share game, and a cut-throat competition. Degree of differentiation: the industry where the products are undifferentiated, there the competition is high, where as the industries where the competitors can differentiate their products have less rivalry. In facewash industry the products are quite differentiated.

Exit barriers: when the barriers to leaving the industry are high, then competitiors tend to exhibit greater rivalry. For example, if the money invested is high, or the cost of closing down the factories is high, then the exit barrier is also high. in this industry, the exit barrier are high as the initial working capital requirements are high and the cost of closing down is also high.

Bargaining power of buyers


Buyers are the people or organisation who create demand in an industry. The bargaining power of buyers is greater in case of: Few dominant buyers Standardized products Switching costs of buyers etc.

There are few dominant buyers: when there are few dominant buyers, and many sellers in the industry, buyers can exert some kind of power on the industry.

In facewash industry, there are large numbers of buyers. Products are standardized: if there are standardized products, then customers have the bargaining power over one seller against the other. In the industry the product are not standardized. Therefore the bargaining power of customer is not too high. Switching costs of buyers: where the switching cost of buyers is low, they can exert some pressure on the industry. In facewash industry, the switching cost of buyers is quite low, as there are many products that are available and at various prices. Therefore if the customer feels that he or she should switch over to the other brand, he can easily do so.

Threat of substitutes
Substitute products are the products that can at least partly satisfy the same needs of consumers, and therefore can be used to replace one another. The presence of substitute products can lower the industry attractiveness. The threat of substitute depends upon the buyers willingness to substitute and the relative performance of it.

Bargaining power of suppliers:


Suppliers are the businesses that supply materials and other products in to the industry. The cost of items bought from suppliers can have a significant impact on a companys profitability. If the suppliers have bargaining power, then the industry seems to be less attractive. The bargaining power of suppliers is high when: Few dominant suppliers are there Supply is done to small customer s only etc

Few dominant suppliers: where the number of suppliers is less, then the bargaining power of suppliers is very high. There the suppliers can dominate. The attractiveness of such an industry is less. But where the number of suppliers is high, then there is no bargaining power in the hands of suppliers. In facewash industry, there are many suppliers; therefore their bargaining power is quite less.

Supply to small customer only: where the supplier sell their to small customers, their bargaining power is very high. In facewash industry supplies are made to small buyers.

COMPETITIVE PROFILE MATRIX (CPM)


Competitive profile matrix is an essential strategic management tool to compare the firm with the major players of the industry. Competitive profile matrix show the clear picture to the firm about their strong points and weak points relative to their competitors. The CPM score is measured on basis of critical success factors, each factor is measured in same scale mean the weight remain same for every firm only rating varies. The best thing about CPM that it include your firm and also facilitate to add other competitors make easier the comparative analysis. IFE matrix only internal factors are evaluated and in EFE matrix external factors are evaluated but CPM include both internal and external factors to evaluate overall position of the firm with respective to their major competitors. The competitive profile matrix consists of following attributes mentioned below.

HUL No. Critical Success Factor Price Advertisi ng Quality Packagin g Brand image Distributi on channel Custome r loyalty Weigh t 0.15 0.20 0.15 0.12 0.10 0.20 0.08 1 Ratin g 3 4 3 2 4 4 4

Himaly a Score Rating

Johnson & Johnson scor Rating Score e 0.4 5 0.6 0.6 0.4 8 0.3 0.6 4 2 3 4 3 3 4 0.6 0.4 0.45 0.48 0.3 0.6

1 2 3 4 5 6 7 TOTA L

0.45 0.8 0.45 0.24 0.4 0.8

3 3 4 4 3 3 3

Poor(1) , below Average (2) , Above Average (3), Superior (4)

Critical Success Factors


Critical success factors are extracted after deep analysis of external and internal environment of the firm. Obviously there are some good and some bad for the company in the external environment and internal environment. The higher rating show that firm strategy is doing well to support this critical success

factors and lower rating means firm strategy is lacking to support the factor.

Rating
Rating in CPM represent the response of firm toward the critical success factors. Highest the rating better the response of the firm towards the critical successfactor ,rating range from 1.0 to 4.0 and can be applied to any factor.

There are some important point related to rating in CPM. Rating is applied to each factor.

The response is poor represented by 1.0 The response is average is represented by 2.0 The response is above average represented by 3.0 The response is superior represented by 4.0

Weight
Weight attribute in CPM indicates the relative importance of factor to being successful in the firms industry. The weight range from 0.0 means not important and 1.0 means important, sum of all assigned weight to factors must be equal to

1.0 otherwise the calculation would not be consider correct.

Total Weighted Score


The sum of all weighted score is equal to the total weighted score, final value of total weighted score should be between range 1.0 (low) to 4.0(high). The average weighted score for CPM matrix is 2.5 any company total weighted score fall below 2.5 consider as weak. The company total weighted score higher then 2.5 is consider as strong in position.The other dimension of CPM is the firm with higher total weighted score considered as the winner among the competitors.

Advertisment
Companies have naturally used this means of communication to let a large number of people know about their products.There is nothing wrong with that as it allows innovative ideas and concepts to be shared with others.However,as the years have progressed ,the sophistication of advertising methods and techniques has advanced ,enticing and shaping and even creating consumerism and needs where there has none before tuning luxuries into necessities.There are several reason for advertising facewash which are as follows: Increasing the sale of product Creating and maintain the brand indentity and brand image.

Communicating a change in existing product line. Increasing the brand value of brand of the company.

As expected facewash advertisment skewed toward channels and regional GEC took the second position. Thus several reason for advertising and similarly there exist various media which can be effectively used for advertising. Based on these criteria there can be several branches of advertising eg. Print advertising Newspaper,Magzine,Brochure , fliers Outdoor Advertising Billboards,Radio,and internet celebrity advertising,Hoardings. The weight given to advertisement is 0.20 success of any company greatly depends upon advertisement sector.

Rate
HUL- 4 Himalaya - 3 Johnson&Johnson 2

Justification
Advertisment has come into various new form which influences customer to buy that products. Advertisment of ponds has come into various new forms as before ponds facewash was just advertised as ponds facewash , futher it was advertised as ponds carbon facewash , and recently the advertisement had come of ponds White Beauty Face Wash.

In comparison if we see Himalaya and clean&clear has just come up with the advertisement of just 1 or 2 new products. That is why rating given to ponds is more as it also belongs to FMCG market, and its advertisement is huge.

Price
Indian consumers are very sensitive about price.Consumers wants good quality at a reasonable price. Price of Ponds is more than that of Himalya and clean & clear. Ponds 100ml pack is available in 105rs. And 50ml. pack is available in 65rs. Whereas Himalaya 100ml pack is available in 75rs. And 50ml. pack is of 45rs. And Clean &Clear 100ml. pack is 72 rs. And of 50ml pack is of 38rs.

Weight
The weightage given to price is 0.15

Rating
HUL 2 Himalaya 3 Johnson&Johnson -4

Justification :

If we see the price factor of all the industries than we can see that 50ml pack of ponds is rs.65 whereas 50ml. pack of Clean &clear is 38rs. 70% region in India belongd to rural market where people cannot afford much and go for reasonable price with best quality.

Quality
Product is the end result of manufacturing process,to be offered to the market place to saisfy a need or want. It is the end result of a process and serves as a need or want satisfier. It is usaually a bundle of tangible and intangible attribute that a seller offers to buyer for a purchase.he word Quality represents the properties of products and services that are valued by the consumers.

Weight:
Weight given to quality is 0.15.

Rating:
HUL : 3 Himalaya : 4 Johnson&Johnson : 3

Justification :
Herbal Himalaya facewash is one of the best facewash used for face as it contains natural ingriedints like neem and tulsi. And in todays era consumers are more conscious about there health so mostly people prefer Himalaya facewash.

In comparison clean and clear and ponds doesnt contain natural ingriedient which becomes the mionr weakness. But girls of teenage with growing pimples use facewash like clean and clear.

Packaging
Packaging is very important for a product. As even packaging influences a person to buy a product. In Clean & Clear facewash and Himalaya Facewash pack of rs.10 to rs 72 and 175rs respectively packs are avaible. This even makes average consumers go for the product as they can buy of any range. Weight : 0.12 Weight given to quality is Rating : HUL : 2 Himalaya : 4 Johnson&Johnson : 4

Justification :
Clean and clear is available in pack of bottles from RS.10 to RS.72 whereas ponds is available only in 50ml or 100ml packs . hence packaging of clean and clear and himalaya is more advanced and suitable for average consumers.

Brand Image :
It refers to the monetary premium those results from having customer who are commited to a particular brand and who are willing to pay extra for it. This is very important factor in determining the potential and goodwill of he company.

Weight :
Weight given to Brand image is 0.10

Rating :
HUL : 4 Himalaya : 3 Johnson&Johnson : 3

Justification :
Brand image of ponds is more as even celebrity like kareena kapoor advertise this product. And it belongs to the one of the best FMCG company HUL. Whereas clean&clear is sold by the brand name Johnson&Johnson. And Himalaya for its herbal products nature.

Distribution channel :
Distribution channel is very important as if people are aware of the products but do not have the outlets and product is not in their reach in this case it may be possible that people may switch over to another brand. Weight Weight given todostribution channel is 0.20 Ranking : HUL : 4 Himalaya : 3 Johnson&Johnson : 3

Justification
HUL is one of the beat FMCG products where it has a reach of over all the market covering even the rural market. As Himalaya and claen7clear is not available in all the rural market. Hence, distribution channel of ponds HUL is abve its reach.

Customer loyalty:
A customer has brought my product. So what is the big deal about customer loyalty ??? it is a fact that it cost 6 times more to gain a new customer than to retain an existing one. To have customer loyalty followings points shoukd be considered as : Service network Quality control Constant innovation Diversification into similar products lines Strong distribution chain Weight Weight given to customer loyalty are 0.08 Rating HUL : 4 Himalaya : 3 Johnson&johnson: 4

Justification
As FMCG products are available in all the market and easy of customers reach customer remain loyal to it as HUL. Even clean

and clear is available in all the markets. In pons we have seen the constant innovation , quality is maintained. HENCE, Ponds and Clean&Clear is rankd the best.

External Factor Evaluation (EFE) Matrix


External Factor Evaluation (EFE) matrix method is a strategicmanagement tool often used for assessment of current business conditions. The EFE matrix is a good tool to visualize and prioritize the opportunities and threats that a business is facing.The EFE matrix is very similar to the IFE matrix. The major difference between the EFE matrix and the IFE matrix is the type of factors that are included in the model. While the IFE matrix deals with internal factors, the EFE matrix is concerned solely with external factors.
HUL Himal aya score Ratin g Scor e Johhso n& Johnso n Rating Lore al Scor e Ratin g Score Nive a Ratin g Scor e

No .

Opportunities Changing attitude & consumption Pattern Consumption by female Increase in Income level Capturing Untapped mkt. Threats Substitution of other Products Entry of new players Negative Perception Total

Weig ht

Rating

1 2 3 4

0.15 0.18 0.10 0.08

4 3 3 4

0.6 0.54 0.3 0.32

3 4 3 3

0.4 5 0.7 2 0.3 0.2 4 0.4 8 0.6 0.5 2

3 4 2 4

0.4 5 0.7 2 0.2 0.3 2 0.4 8 0.6 0.5 2

2 3 4 2

0.3 0.54 0.4 0.16

1 1 4 1

0.15 0.18 0.4 0.08

1 2 3

0.16 0.20 0.13

3 4 2

0.48 0.8 0.52

3 3 3

3 3 3

2 1 1

0.32 0.4 0.39

2 1 1

0.32 0.4 0.26

Poor(1) , below Average (2) , Above Average (3), Superior (4)

Oppurtunities
1.

Changing attitude & consumption pattern of people :

Consumption of Facewash is increasing highly concentrated in the uraban parts.Since Facewash is considerd to be luxury in the rural areas,the consumption is insignificant to only 0.3%. still with increasing buying capacity of people they are willing to spend and demand is increasing. The overall market growth rate is 43% in case of FMCG products. Before people use to use soap and home made upttan but now as their income level is also increasing and with growing pace their attitude is also changing. So the consumption level is increased to higher level. And it is also portable. Weight given to it is 0.15. Ranking HUL : 4 Johnson&Johnson :3 Himalaya : 3 Nivea : 1 Loreal : 2

Justification :
As we have seen the Advertisment of Ponds we have seen its changing due to pace and much of innovation is there in the

product and consumers prefer more of innovative things and there attitude changes due to these innovative ideas. Now to take in consideration Himalaya they have ingredients like Neem and Tulsi so we know that in India most of the people prefer herbal products and if in facewash they are getting this benefits they will switch over to such products. In Johnson&Johnson people buy this buy brand name as it also manufactures products for children so the attitude of people changes that it will not be harmful for skin. Loreal is mostly preferred by upper class society. As it is also a international brand people attitude changes to as to buy high class things. And it has become a good brand image. Nivea is also purchased by upperclass society and as shown by advertisement the glowing skin of girls and their whitning skin changes attitude of people. But in India mostly population consist of middle level income group so only upper class can go for it.

2.Increase Female Ratio:


Girls are beauty conscious. And even in middle class families we have seen girls having there separate face wash. As being a girl child even parents are more conscious of there skin. Here we can take the example of Himalaya face wash advertisement as the girl gets the pimple on her face and she gets very conscious to move out of the house. So facewash is mostly preferred by only girls as they have delicate skin. The female sex ratio is increased in every state of India with exception of Bihar and Jammu & Kashmir. Sex ratio

has given risen even to products as facewash which is consumed by girls. As in Rajasthan , Haryana , Maharashtra , Punjab as 0.54 , 1.86 , 0.33 , 1.94 respectively. Weight given to it is : 0.18

Rating
HUL : 3 Himalaya : 4 Johnson&Johnson : 4 Loreal : 2 Nivea : 1

Justification:
Facewash is mostly used by girls. And girls are of growing age with teenage pimples are growing and in past decades in families mostly neem , tulsi and turmeric paste use to be used. And now all this is now in a pack of facewash which is herbal Himalaya facewash. As in facewash like clean&clear who is manufactured by Johnson&Johnson girls by brand name uses it for there delicate skin. Trendy gilrs who go for brand image and whose income level is also high hey prefer the facewash like loreal, Nivea . Ponds is mostly preferrd middle level income group people. As it of FMCG product and cosumed best by the middle level consumers.

3.Increase in Income level of People:


As the income level of people increases even there buying pattern changes. And with this change we can see the rise in demand of the product . India per capita has increased more than 50,000. India per capita income will register at an average growth rate of 13% during 2011-2020 so as to reach $4200 by the year 2020. Weight given to income level is 0.10

Ranking
HUL : 3 Himalaya : 3 Johnson&Johnson : 2 Loreal : 4 Nivea : 4

Justification :
In HUL we can see that by change in scenario and changing habbits of brands of consumers the prices of ponds has also risen. The consumers below average income group cannot afford to buy ponds facewash easily. In Himalaya and Johnson&Johnson all the prices of packs ranging from rs. 10 to 175 are available. So even below average and average income group can afford to buy the product.

Taking into consideration Loreal and Nivea they are international brands. Mostly only higher income group can think of purchasing it . Only with increase in income purchasing power of consumer will increase towards these brands.

4. Capturing untapped market


India consist of 70% of rural population ans well as market. So, it is very important to capture the rural market , with reasonable prices. If people know your product but its not in there reach than they will obvisouly switch over to the other products, and they will deteriorate there sale. So, capturing the market which no one has tapped will make a firm more profitable. Weight given to untapped market is 0.08

Ranking
HUL : 4 Himalaya : 3 Johnson&Johnson : 4 Loreal : 2 Nivea : 1

Justification :
Ponds being a product of FMCG has covered the market with full pace. Even in rural areas FMCG products are easily available. These are now also available on highways and near petrolpump shops. Which is easily in reach of consumers. Thus HUL has covered the untapped market as well good.

Himalaya as being the herbal products has covered the market potentially but not that of rural market. Johnson&Johnson as being one of the oldest market monopoly firm had captured the market of children. So being one of monopoly market at some age of time. Its in people mind that its one of the best products for use. And it has covered the market when it was at its time in monopoly. Loreal and Nivea as being one of the international brands is not yet covered the rural front much but has covered the middle level income group.

Threats
Substitution of other products :
Substitution means same product of another company because of which competition is rising. So,customers are confused and they are not loyal to one brand , this creats threat for a firm. For Face wash substitute can be medicated soaps, home made upattan, and even local facewash can be a substitute for each facewash. If instead of face wash other products are used than it will decrease the demand of facewash. And there sale will also decrease. So.this is one of the major threat of facewash.

Weight given to substitution of product is 0.15 Ranking HUL : 3 Himalaya : 3 Johnson&Johnson : 3 Loreal : 2 Nivea : 2

2.Negetive Perception
As chemical is being used in facewash which is at some point harmful for skin. So, still in rural areas people have the tendency of using just the natural products. And even in families we can see that everyone is so conscious about girls skin so they tell them to use home made upptan or neem, tulsi paste. It is a negative perception in people thet facewash is always harmful for skin and damages skin. Even people when go out for parties they belive facewash will not make their skin glow as much so they go for home made facepacks or facials. Weight given to increase in prices are 0.13 Ranking HUL : 2 Himalaya : 3 Johnson&Johnson : 4 Loreal : 1 Nivea : 1

Justification :
As Johnson&Johnson is very mild in nature and people are trusted 2to this brand and even being cheaper in price people have less negative perception about it. HUL as we are talking about Ponds facewash More amount of foundation is being used ion it which makes our skin fair but than makes it damage after few years and if we dont use it regularly than the fairness effect goes. Loreal and Nivea as rated 1 in EFE it is because in loreal more amount of chemical is used and even consumers are aware of it and there prices are higher. Whereas, Himalaya is rated as 3 because it is herbal product and people trust and use it because it carries ingriedients like neem , tulsi, turmeric.

3.Entry of New Players


High market potential that is penetration of facewash is very low in rural market which may attract new players towards the industry. Thereby increasing competition and threat of loosing market share. Also facewash market has grown very rapidly that may attract number of playres towards the industry.

Weight given to it is 0.20

Ranking HUL :
4

Himalaya : 3 Johnson&Johnson : 3 Loreal : 1 Nivea : 2

Justification :
HUL is rated as 4 because HUL manufactures products in a diversified range ,so it will be very difficult for a new firm to enter in market and compete with HUL as it is also a well established FMCG product range line. Johnson&Johnson is rated as 3 because it is a trusted brand by people and consumers are using its products for more than several years and thre is no facewash as mild as clean and clear at such a low cost. As even Himalaya is rated as 3 because it is a herbal product and people are using it without even once switching over to other products. As being herbal and at this time it has gained a vast amount of market share even comparing it with ponds of HUL. Loreal and Nivea as not a lot diversified in range of facewash and even there prices are too high any firm can come along with lower price in market and give them the competition as these have not even covered the rural areas to that extent. So there can be a entry against these two firms considering the factor such as price and covering small cities and rural areas.

Conclusion
The India facewash market has been witnessing rapid growth on the back of positive development and presence of massive investment.Currently, market growth is largely fueld by the rising young population , working women hectic schedule and increasing disposable income of the middle class household. From the above industrial analysis we can take into consideration FMCG as the most suitable product for the Indian market and consumers. As it has even captured the untapped market very significantly. It provides variety of network to the consumers looking at the consumers demand and at very reasonable price.

After FMCG next industry taken into consideration is Johnson&Johnson and Himalaya facewash as they are quite price sensitive and as India being one of the price sensitive market it is consumed by the consumers In a large amount. Now to take Loreal and Nivea Facewash industry they are international brands as well so there prices are also high and there distribution channel also doesnt cover the rural market of India, and as Indias 70% population belongs to middle level income group so these brands are consumed less in comparison to HUL.

Bibliography
www.asiamarketsearch.com www.allbusiness.com www.pondshul.com

www.niveaindia.com www.himalayaherbal.com www.johnson&johnson.com www.wikiepedia.com www.loreal.com