1. Prepared by: Anirban Karmakar Arjun PR Mahima Jhunjhunwala S.R.Sriram

2. Agenda  Shampoo Market in India  Different Companies and their Market Share  B2B Brands  B2C Brands  Both B2B and B2C Brands  Segments of Shampoo Market  Consumer Market  Comparison of 4 P’s of Cavinkare and HUL  SWOT Analysis of Cavinkare  Suggestions for the Company

3. Shampoo Market in India  The shampoo market in India has total worth of Rs. 4000 crores.  Out of this B2C has a market share of 85% and B2B has a market share of 15%.  Assumption: CavinKare and L’Oreal Professional are the two biggest brands in the B2B market and their total market share is less than 15%. Therefore, the B2B market share would be approximately 15%.

4. Different Companies and their Market Share Source: Business Standard HUL: Dove, Clinic Plus, All Clear, Ayush, Sunsilk. P&G: Head & Shoulders, Panteen, Rejoice, etc. CavinKare: Chik, Nyle, Meera. Dabur: Vatika. Loreal: Loreal Professional, Loreal Paris. ITC: Vivel, Fiama Di Wills.

5. B2B Brands  Defence:  Sunsilk  Clinic Plus  Head and Shoulders  Salons:  L’Oreal Professional  Tresseme  Matrix  Hotels and Guest Houses:  Fiama di Wills  Pantene  Clinic Plus  Nyle  Chik  Halo  Other Local Players

6. B2C BRANDS  Dove  Head & Shoulders  Pantene  Vivel  Karthika  Other Local Players B2B & B2C BRANDS  Fiama di Wills  L’Oreal  Chik  Nyle  Clinic Plus  Sunsilk Source: Local Retailer

7. Segments of the shampoo market  Consumer market  Behavioral segmentation  Geographic segmentation  Demographic segmentation  Price segmentation  Hair needs segmentation  Pack size segmentation  B2B/Institutional market  Defense  Salons  Hotels and guest houses

8. Consumer Market  Behavioral segmentation  Cosmetic – Sunsilk, Panteen, Dove, Loreal, Garnier, etc.  Anti-Dandruff – Head & Shoulder, Clear Anti-Dandruff, etc.  Herbal – Nyle, Dabur Vatika, Himalaya, Karthika, Meera etc.  Medicinal – Clinic Plus.  Geographic segmentation  Urban - Sunsilk, Panteen, Dove, Garnier, Matrix, Loreal, etc.  Rural – Chik, Nyle, Dabur Vatika, Clinic Plus, etc.

9.  Demographic segmentation  Male – Clear Men’s Active sport and Hair fall Decrease, etc.  Female – Clear Women’s Anti Dandruff, Sunsilk, Chik, etc.  Children – Johnson’s Baby Shampoo.  Price segmentation  High – Dove, Fiama Di Wills, Loreal, Matrix, etc.  Medium – Sunsilk, Head & Shoulder, Clinic All Clear, etc.  Low – Chick, Nyle, Clinic Plus, Dabur Vatika, etc.  Pack size segmentation  Sachet  Bottle

10.  Hair needs segmentation  Anti – Dandruff – Head & Shoulder, Clinic All Clear, etc.  Colour Care – Dove Color Care, Loreal Paris Color Protect, etc.  Repair and Nourishment – Dove Intensive Repair, etc.  Hairfall – Tresemme Hair Fall Defence, Sunsilk Hair Fall Solution, etc.  Shine – Sunsilk Black Shine, Nyle, etc.  Anti Frizz – Loreal Paris Nutri Sleek,, Dove Frizz Control Shampoo, etc.  Volumizing – Dove Volume Boost, Loreal Paris Volume Colagen, etc.  Smooth – Tresemme Keratin Smooth, Panteen Silky Smooth, etc.  Climate Control – Dryness – Dove Dryness Care, Dove Heat Defence, etc.  Straight Hair – Sunsilk Perfect Straight, etc.

11. Product  Cavinkare  Manufactures herbal products  Products focus on mainly long and strong hair.  Female oriented hair products  HUL  Mostly cosmetic and also has a herbal product – Ayush.  Products focus on different attributes of hair care.  Has male variants also.

12. Price  Cavinkare  Target income group: Mostly low income and middle income group  Mid segment: Nyle and Chik.  Low segment: Karthika and Meera.  HUL  Target income group: Caters to all income group  Premium segment: Dove  Mid segment: Sunsilk  Low segment : Clinic Plus

13. Place  Cavinkare  Mostly in Southern India  Has comparatively stronger presence in rural than urban  HUL  Strong presence all over India  Has a strong presence in both rural and urban

14. Promotion  Cavinkare  Advertisements mainly depict women as the consumers having long hair  Few products carry regional language labeling  Creates initiative to educate people about the usage of shampoo  Doesn’t use any celebrity  HUL  Advertisements depict both men and women as the consumers  Product labeling is done in international language only  Uses celebrity endorsements for some of its brands

15. SWOT Analysis  Strength  Ability to understand local market.  Strong distribution network.  Strong focus on Quality and Natural ingredients by its R&D Team.  Strong product portfolio with brands like Chik, Nyle.  Ability to cater unpenetrated Rural market by creating mass awareness.  Strong marketing team enabling it to grow out of its regional image.  With the convenience of sachet they have been able to generate enough institutional sales in hotels.  Weakness  Not having worldwide or nation wide presence.  All the brands are targeting to similar consumers and it does not have a profitable portfolio as all its products are low priced products.  It does not have any product in the premium segment.  All its brands provide almost similar benefits with not much differentiation.  It does not have segments such as conditioners and serums.

16.  Opportunities  Can go for more vertical mergers so as to tap more market mostly in the Northern Zone where the reach is still weak.  Can go for more acquisition so as to increase their reach in both local and global market.  They can move into the premium segment and urban market.  They can launch other products such as conditioners and serums.  They can also launch a non-herbal shampoo and enter into the market of cosmetic shampoo.  Using their own brands in their own saloons which are ‘Green Trends’ and ‘Limelite’ help to build a better brand image.  Can focus their advertisements towards male.  Threats  More and more FMCG companies are coming to India, so company might lose market share within their strong shampoo segment.  Other FMCG companies trying to tap into the rural market and the herbal hair category.

17. Suggestions for the Company:  Launch a new product for the premium and urban segment:  It can enhance the profitability of the portfolio.  It can launch its new product in Southern India and test as it has a strong presence there.  It can hamper the image of the company as all its shampoo’s are economical and for the masses.  Launch a cosmetic shampoo:  As it has a strong presence in Southern India it can try launching a cosmetic shampoo.  It can also enhance the profitability of the portfolio as it can cater also to those people who use other cosmetic shampoo in Southern India.  It can hamper the image of the Company of being a herbal shampoo company.

18. Suggestions for the Company  Launch new products such as conditioners, hair care serums, etc:  It can also enhance the portfolio of the company.  Its users may not be ready to spend money to use additional product.  Can go for International Collaborations :  Only Nyle and Chik is made available throughout India.  As well as increase profitability.  Can launch a premium shampoo and use it in its own salons:  Help in creating better brand image.  Can create brand awareness

19. HUL

20. Cavinkare