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MARKETING ESSENTIALS

A PRESENTATION ON BRAND CREATION [SOAP]

BATCH:- ISBE-B SECTION-1 GUIDED BY:- DR.RAJIV PANDIT

:GROUP MEMBERS:

DIP VIMAL BHAVIN DHARMESH AJAY ANKUR BHAVESH ABHIJIT TARUL MAHESH

MARKET SCAN

Environment scanning is the process of collecting information about the forces in the marketing environment In market scanning, its necessary, as the article points out, to ask questions such as, What changes could make our product obsolete? We also have to look at things outside our own industry. Whats going on in our society? legislation? The economy? Demographics? Weather patterns?

WHAT IS A FMCG?

FMCG-means Fast Moving Consumer Goods. It usually refers to non-durable products. Examples include soft drinks, toiletries, grocery items, etc. A customer usually spends a minimum of effort to get them.

CLASSES:

1. Staples. (Purchased regularly) Goods that consumers purchase on a regular basis. For example a buyer purchases a toilet soap, detergent, toothpaste and biscuits as and when stocks reach a critical level. (Means when time comes near of its emptiness) 2. Impulse goods. (Purchased without Planning) Goods that are purchased without any planning or search effort are known as impulse goods. For example chocolates, soft drink, and potato chips are displayed in the Kirana store because shoppers may not have thought of buying them until spotting them.

3. Emergency goods. Emergency goods are purchased when a particular need arises. The requirement for umbrellas arises during the rainy season. Manufacturers of emergency goods will place them in many outlets so as to capture the sale when the customer needs these goods.

CHARACTERISTICS OF FMCG FROM CONSUMERS PERSPECTIVE


1. 2. 3.

Frequent purchase. Low involvement. Low price.

CHARACTERISTICS OF FMCG FROM MARKETERS ANGLE


1. 2. 3. 4.

High volumes. Low margins. Extensive distribution networks. High stock turnover.

HISTORY

The toilet soaps market is estimated at 530,000 tpa including small imports. Hindustan Lever is, of course, the market leader. Toilet soap, once only an urban phenomenon, has now penetrated practically all areas including remote rural areas. The incremental demand flows from population increase and rise in usage norm impacted as it is by a greater concern for hygiene. Increased sales revenues would also expand from up gradation of quality or per unit value.

As the market is constituted now, it can be divided into four price segments: premium, popular, discount and economy soaps. Premium soaps are estimated to have a market volume of about 80,000 tonnes. This translates into a share of about 14 to 15%. However, by value it is as much as 30%. Market Segmentation

The market is growing at 7% a year. This means that the incremental demand generation is 5% over and above the population growth. With increasing awareness of hygienic standards, the market could grow at a rate higher than 8% annually.

FACTORS AFFECTING BUYING BEHAVIOUR

Price The buying frequency The promotional techniques Women oriented market

The market shows a seasonal behavior for some brands, i.e. the brands change as per the customers' need for that particular season. For e.g. in summer - running brand popular and sub-popular most of the buyer take bath twice in a day specially in northern belt, in monsoon - running brand antiseptic and medicated soap, in winter running brand premium (moisturizer and creamy soap).

BENEFITS SOUGHT BY VARIOUS CUSTOMERS FROM VARIOUS BRANDS ARE

Beauty - Lux Freshness Liril, Cinthol Natural Medimix, Margo Baby Johnson & Johnson, Doy Cream Dove, Doy Care (moisturizing) Medicated Dettol, Savlon, Glycerine Pears, Emami

All in One Alfresh Liquid Soap

MARKET SHARE

Market Share
Others Players Godrej 4.4 16.8 64 14.8

Nirma
HLL

20

40
% Share

60

80

PEST ANALYSIS:

Political Factors: -Earlier the soap industry was under the Licence-raj restrictions. But, after liberalization of economy by the Narshima Rao government there has been a spurt in the number of players in the organized as well as the unorganized sector. Government banned the import of tallow, a soap making raw material (which was requiring a very little processing to make soap). It then followed an incidence of adulteration of vanaspati by unscrupulous manufacture.

ECONOMIC FACTORS

Soaps in India cost very high in India as compared to other countries like Indonesia. This is primarily attributed to the high cost of imports due to high import duties. Since India is now a WTO member India will have to bring down the import duty rates to as much as 20% from 35%. Also the excise rate at 16% forms formidable portion of the cost.

For toilet soap, the average expenditure per user household for low-income households is Rs. 237, while it is Rs. 706 for high-income groups.

SOCIAL FACTORS:

With the rising education and disposable income levels, the need for hygiene and personal / skin care becomes important. Premium soaps are thus targeted at the audience to change their habits by raising their aspiration levels. Fragmented approach of govt. and NGOs towards inefficient PHCprimary health center also aggravates the problem. The growing reach of advertising medias like satellite and cable TV too is expected to give a boost to the market penetration initiatives of the industry players.

TECHNOLOGICAL FACTORS:

The industry though capital intensive is not very technology intensive. Premium soap manufacturing though compared with other soaps manufacturing relies to an extent on technology (especially in the finishing stage). The more important is logistics management where marketing and distribution play a pivotal role. Here technology like (SCM) Supply Chain Management and (E-CRM) Electronic Customer Relationship Management will play a pivotal role. Companies like HLL are working very hard towards such a system to rope up the entire small stores and retailers (Kirana Stores). The results of a survey done by National Council of Applied Research (NCAER) suggest that Indian FMCG space is all set to enter a new growth phase, sample this: the study says that the lower income group is expected to shrink from over 60 percent (1996) to 20 per cent by 2007 and the higher income group is expected to rise by more than 100 per cent. It looks; the industry is all set for a fast-paced race ahead.

SWOT ANALYSIS

STRENGTHS
Soap penetration: soap has a very high penetration of 95% in the urban region while the rural region contributes to 85% penetration, which shows a potential for growth in the rural sector. Soaps is a Delicenced Industry, which symbolizes that any individual with finance and marketing skills can enter the industry.

WEAKNESS
The duty structure: excise duty is at the rate of 16% on all toilet soaps and the sales tax structure varies from state to state with a minimum of 8 % in some states ranging upto 20 % in most of the southern states like Andra Pradesh, Tamil Nadu, and Orissa India solely depends on the Imports for vegetable oil mainly from Malaysia & Indonesia and import duty is as high as 35%. The fairly high contribution from rural market makes this category sensitive to the fortunes of the agriculture economy

The large-scale organized sector where the Technology and Capital Invested are high. The other popular and carbolic soaps are manufactured by small manufacturing units predominantly existing in the southern sector.

OPPORTUNITY
Indian Exports for Soaps are quite insignificant. The reason being other South Asian countries like Malaysia, Indonesia and China have Palm Oil available in abundance. Hence exporting Soaps becomes an expensive proposition. India can concentrate on exports of specialty soaps like ayurvedic, herbal and special categories like fairness soaps. Internet is fast emerging as a strong distribution channel and the new players are finding it easier to launch assaults through this medium very effectively. In the world of cut throat competition Quality at an affordable price is the new mantra. Companies are trying every measure to improve the quality of the product by maintaining or at times even decreasing the price to make the product affordable and competitive. Presence of a large unorganized market: branded products can wash the unorganized market by providing value for money products at competitive market

THREATS
Industry Growth the entire soap Industry is growing at a minimal rate of 3 % and the entire FMCG industry is passing through turmoil, where the soap segment registered actually a negative growth leading to saturation. The only players we see are the low (cheap) quality soaps from countries like Indonesia, Malaysia and China, which has a low freight cost structure and also a substantially low cost of manufacturing.

COMPETITORS [ MENS CATEGORY]


WILD STONE

PARK AVENUE AXE


REXONA

CINTHOL

COMPETITORS [CHILDS CATEGORY]

JOHNSON & JOHNSON

DOY

THERE ARE MANY TYPES OF COMPETITORS

Brand competitors
which makes product with the similar features and benefits to the same customers at a similar price

Product competitors
which compete in the same product class but their product have a different features, benefits, price

Generic competitors which provide very different product that solve the same problem or satisfy the same basic customer needs Total budget competitors which compete for the limited financial resources of same customer.

HOW TO SCAN THE MARKETING ENVIRONMENT


1.
2. 3.

4.
5.

GEOGRAPHIC ENVIRONMENT DEMOGRAPHIC ENVIRONMENT PSYCHOGRAPHIC ENVIRONMENT CULTURAL ENVIRONMENT ECONOMICAL ENVIRONMENT

GEOGRAPHIC ENVIRONMENT

GEOGRAPHIC ENVIRONMENT

Region City size

: North, south, West, East : Major metropolitan areas, Small cities , Towns Density of Area : Urban, Suburban, Rural Climate : Temperature, Hot, Humid. Since the temperature is HOT & HUMID, sweating is at high rate. Customers need a product which keeps them fresh all day long. They also require fragrance which is longlasting.

DEMOGRAPHIC ENVIRONMENT

Main demographic force that marketers monitor is POPULATION because people make up markets.

Size & growth rate of population in cities, regions, nations

Also age sex, age difference, educational levels, lifestyle

POPULATION

India is a country of 1.15 billion people. Rural Population consists 72% of total population. It is a Young Country having 46 crores of people between age 13-35. Women population is around 55 crores.

Total Population

Age wise

INCOME

LITERACY

Literacy rate in India is around 65%. 35 crore people in age 13-35 are literate. 62% literate youth lives in Rural villages. Women literacy rate is around 55%. Housewives are the main target for this product.

Country

Women

Age wise

ALL FIGURES IN MILLION AS ON 2006-07

Households
Income Class Rich Consuming class Climbers Aspirants destitute 5.2 75.5 81.7 20.2 16.5

Estimated Population
30 432 472 117 95

500 450 400 350 300 250 200 150

472 432

Households

117 100 50 5.2 0 75.5 30 81.7 95

Estimated Population

20.2

16.5

Rich

Consuming class

Climbers

Aspirants

destitute

ECONOMIC ENVIRONMENT

Economics is the social science that studies the production, distribution, and consumption of goods and services
Changes in general economic condition affect supply & demand, buying power, willingness to spend, consumer expenditure level.

ECONOMIC ENVIRONMENT : INCOME & GROWTH IN RURAL & URBAN AREA IN 2015 (EXPECTED).

ECONOMIC ENVIRONMENT :

Per Capita Income


Inflation Rate GDP (PPP)

$3100
10% $3.57 Trillion

Economic Comparison 5 Rank Worldwide

PSYCHOGRAPHIC ENVIRONMENT

Needs-motivation This is a need base product. every person have a health awareness so they prefer to buy this product. and every person in family takes care of other family persons because of affection. Attitudes -Positive attitude -Negative attitude Lifestyle Uses of product depends upon peoples lifestyle. conservatives people may be not use our products, while status seeker may use our high quality and high range products.

SOCIAL-CULTURAL ENVIRONMENT

A survey by Research International in 2002 indicated significant differences in attitudes and preferences of women.

Move from lower socio-economic classes to higher classes. Cultural difference can be stated as traditional ways and modern ways.

CULTURAL ENVIRONMENT
Commercial In Indian culture people have a freedom of choice so they use our different types of products. Social class lower class may not use this products, while middle class may use our low cost products and upper class may use our high cost products. Beliefs, Values And Norms India is a complex country of 30 different languages, over 200 mother tongues and around 2000 dialects of cultures and sub-cultures. Regional differences in language, customs, social systems,values,habits,make the environment so complex.

2 FACTORS
EMOTIONAL FUNCTIONAL

FOR REMOVE THE BAD ODOUR

NEED SATISFACTION FRAGRANCE IMPACT ON CONSUMER

BRAND PERSONALITY

ALL AGED CUSTOMERS (child, young men & women, old age men & women) In sense, two categories of customers rich & upper middle class.

BRAND POSITION

Economy range product. Easily available for everyone in local place at reasonable price.

BENEFIT FACTOR

Convenience
Costumers always prefer to buy a products which are more convenient to use and buy.

Prestige
Means upper class people always prefer to use those type of product which may shows their prestige.

BECAUSE BATHING WITH SOAP IS OUTDATED.

ADD LIFE TO YOUR BATH WITH ALL NEW.

ALFRESH
LIQUID SOAPS..

OUR PRODUCTS

ALFRESH LIQUID SOAPS


BABY SOAP. MENS SOAP. LADIE S SOAP.

ALFRESH BABYS LIQUID SOAP


ITS

AN ALL NEW HERBAL PRODUCT FOR YOUR BABIES. IT NOT ONLY ENHANCES THE DELICATE SKIN OF BABIES BUT ALSO GIVES THEM PROTECTION FROM SKIN DISEASES. BABIES SKIN IS VERY DELICATE, DONT HARM THEM WITH CHEMICAL PRODUCTS, GO HERBAL. THIS PRODUCT IS NOT AT ALL HARMFUL FOR SENSITIVE EYES OF BABIES.

ALFRESH MENS LIQUID SOAP


CONTAINS VARIOUS REFRESHING AGENTS. KEEP YOU FRESH FOR 24 HRs. AVAILABLE IN DIFFERENT FRAGRANCES. SPECIALLY MADE FOR MEN, BECAUSE MEN TOO REQUIRE ATTENTION..

ALFRESH WOMENS LIQUID SOAP


AVAILABLE IN VARIOUS ATTRACTIVE DESIGNS & FRAGRANCES. GIVES GLOW TO YOUR SKIN & REPAIRS DEAD-CELLS. IT CONTAINS MILKY & CREAMY MOISTURIZERS WHICH KEEPS YOUR SKIN SOFT & GLOWY. IT KEEPS YOU FRESH ALL DAY LONG.

WHY ALFRESH LIQUID SOAPS.


ITS AN ALL NEW LIQUID PRODUCT. BATHING WITH SOAPS IS OUTDATED. ITS A FAMILY SOAP SATISFYING NEEDS OF ALL MEMBERS OF FAMILY. LONGLASTING FRESHNESS WITH FRAGNANCE. GIVING BATH AN ALL NEW EXPERIENCE.

CUSTOMERS TARGETED.
BASICALLY ITS A PREMIUM BRAND. RICH & UPPER MIDDLE-CLASS ARE TARGETED. IT SATISFYIES THEIR EGO & RAISES THEIR STATUS AS THIS PRODUCT DISTINGUISHES THEM FROM OLD WAYS OF BATHING. THIS PRODUCT WILL BECOME A STATUS SYMBOL FOR THEM.

SUMMARY

Cost effective Environment friendly

Steady profit margins


Less competitive but high risk A huge growth potential over the years to come.

THANK YOU