The Hair Oil Industry

Admin Group 2
Introduction to the Industry
Of the estimated Rs 1,611 billion FMCG market in India, hair care products make
1 up approximately 8% i.e. Rs 128.88 billion

Within the hair-care industry, hair oils command close to 50% of the hair care
2 market in India

There are 4 main categories of hair oil:

3 Coconut Oil
Amla Oil
Cooling Oil
Light Hair Oil
Changing of Strategies Based
on Consumer Behaviour

One of the current fundamental assumptions in consumer behavior research is

that individuals often purchase products for their subjectively perceived values
rather than their primary functions(Stávková, Stejskal, & Toufarova, 2008)

This does not mean that the products’ basic functions are not important, but that
the contemporary role of a product is more than its basic use-value (Solomon,
2004)
Personality
Consumers purchase products to reflect their personality

Parac Traditional Nihar Independen Bajaj Light

hute humble Shanti t Almon Cool

cultured
Amla d Strong
Strong
Drops
Socially
responsible

generally thought of as generally thought of generally thought of as a

a brand that connects as a brand that brand that has new
with the simple lives of connects with approach towards hair
people;  Independent women oil, light oiling which they
people who are caring  and nourishment. It try to pitch as trendy and
and conscious about  has a Desi approach student friendly
nourishment and tries to pitch
based on black hair
notion
Name & Logo
• Ayurvedic

Name • Indian
• 9 Minerals
• Cooling

• Traditional

Logo • Heritage
• From the times of the Rishis
• Red colour invokes a sense of energy

Name
• Parachute
Commandos

• Pure

Logo • Coconut Oil

• Natural
• Blue Colour evokes feeling of
confidence
Name & Logo

• Dabur – Name evokes trust

Name • Amla obviously indicates the
main ingredient

• Pure

Logo • Leaf shows a natural element

• Green Evokes a feeling of safety ,
growth
Insights & Facts

Of Total Oil
15% One out of every 10 coconuts grown in
India is used by Marico to produce hair
C oil

55% 30%

A B
Coconut Amla Light Cooling Others
Customer Insights

Protection from Remove Remove Convenience in

Avoid Breakage
Pollution Dandruff Dryness Application

Customer insights indicate the above needs from hair oil

Use & Application

• To lubricate damaged hair and to strengthen it - Coconut Oil

• To prevent hair breakage and improve growth - Almond Oil
• To remove wanted and flaky dandruff problems - Rosemary Oil
• To nourish dry hair and untangle hair before shampoo - Amla Oil
• To reduce stress - Olive Oil
 Customers & Packaging
The Impact of Packaging

Packaging of personal care products rides on an emotional connect with consumer.

It plays a very important role in consumer satisfaction owing to its dual ability to
represent the functionality of a product while appealing to the aesthetics of the
consumer.

Interestingly, even as the industry evolves, key consumer behavior trends have
remained the same over the years.

A burgeoning demand for personal care products in India, offers much scope for
improvement and innovation in packaging.
 Simple Portfolio
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The Changes in Packaging

Bajaj Corp has unveiled a brand new

packaging for its flagship brand
Bajaj Almond Drops Hair Oil.

For the first time in 25 years, the brand

has changed its packaging.

The brand’s new look aims at targeting

the new age consumers.
The Changes in Packaging
After consumer Youth who are
study in Kolkata, to shifting to
compete against Ayurvedic , herbal
Shalimar Oil. products.

Shifting from
The first 15L
tin to plastic
tin Parachute
packaging.
Oil.
Packaging for Different Seasons &
Reasons

 After researching the market Parachute came up with the following:

• Flip Top Cap to enhance the safety and protect the purity of Parachute.
• Easy Jar of Parachute to facilitate usage especially during winters.
• Parachute Mini - a bottle shaped sachet being sold at an MRP of Re.1
Simple Portfolio
• 20 ml Parachute - a Rs. 5 that enables loose oil users to upgrade
Presentation Designed
Target Customers

1 Parachute targets customers who are :

1. Primary Market :
Married women
Middle – aged women
Female member of the family.

2. Secondary Market:
Single women in their 20’s.
Simple Portfolio
Both in rural and urban area, women of all walks in life.
Presentation Designed
Target Customers

Demographics range from late teens to older women.

2
Therefore, Parachute has most of their bottles with models who are
women.

The main protagonists therefore chosen as women as their main

target audience can then feel the similarity between them.
Target Customers & Packaging

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Presentation Designed
How Brands Offer Different Solutions

Navratna Cooling Oil

Key Offering: Cool relaxation after a
long hard day
Target Group: stressed out individuals,
primarily adult males

Indulekha Bringha Oil

Key Offering: Hair Fall Reduction
Target Group: adult and senior
women worried about hair fall
But What About Busy Millennials?
According to a Morgan Stanley report of April 2017, India will have 410
million millennials, who will spend $330 billion annually, by 2020

The younger the consumer, the longer the business cycle – another reason
why marketers target Millennials & Gen Z
The Future of Hair Oil
Product Enhancement
Know your customer – Anticipate their needs
Deliver value
Thank You!
Demographics

India has more than 50% of its population below the age of 25 and more than 65% below the
age of 35. It is expected that, in 2020, the average age of an Indian will be 29 years

Thus Maximum population in India will be either Gen Y (Millennial) or Gen Z (Centennials)

One specific characteristic of Generation Y is they have greater need for peer acceptance.
They are more likely to switch brands. They are not brand loyal. So, it may be difficult for the
brands to hold on to these customers who belong to Generation Y. It maybe specially difficult
since number of competitors are rising and Generation Y likes to explore and experiment
with different choices.

From the figure above, it is also evident that the children aged between 5-15 years will also
have a larger proportion in population in future. This means the market for young children
will rise in future. This can be an opportunity for a marketer of the hair oil brands
Our Services
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Introduction to the Industry
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