1. Expanding Hair Conditioner market in India
Shivani Pal
Mansi Baranwal
Aditya Mukherjee

2. Driven by changing preferences,“look good” trend & rising incomes, Hair conditioner market grown~40%
Growth Drivers 1 2 3
An increasing middle class aspiring to buy more expensive products
Product innovations and further segmentation
Aggressive promotions by major players
Premium and value-added products in the mass segment increase
New functional claims: UV protection, scalp disorder and anti-aging conditioners
Beauty-enhancing claims: Moisturizing/hydrating hair, protecting damaged hair
Plant ingredients & Product naturalness
Ethical claims: Not tested on animals
Aggregate adv. expenses of the 3 prominent players increased by ~10% in FY10
CAGR ~ 40%
Hair care Conditioners
Source:* ―Hair care India: Euromonitor.com

3. Why is conditioner penetration so low, and frequency of use so limited in India?
How can we counter it?
Qrius
team

4. Oil: A substitute or complementary?
Primary surveys reveal a huge gap between what consumers perceive and what the actual product is
Gap Analysis 1
Oil: A substitute or complementary? 2
Conditioners are a necessary part of hair care regime for their long term benefits
Conditioners help moisturize the hair strands
Proper hydration keeps hair healthier over years
Not all are harmful
Need for specific hair conditioners for every Indian hair type
Conditioners are not necessary for hair care
To be used only for “additional” care
Conditioners give hair a “short-term” shine and de-tangling effect
Shine/ Softness lasts only for a day
“Repeated usage can harm my hair”
“How do I know if this conditioner would suit my hair type”?
HAIR CONDITIONER COMPANIES
MARKET
Actual product need
Perceived product need
Actual product benefits
Actual experience
Perceived product benefits
Perceived experience
Actual Hair conditioner offering
Perceived Hair Conditioner offering
GAP
(While oil is good for roots and scalp, conditioners are good for nourishing hair strands)
Nourishment
Oil Vs.
Conditioner
Long term
effects
Moisturizing
(Unlike conditioners, oils do not contain any hydrating element)
(While Oil helps hair growth, conditioners help in long term health )

5. The perception problem has to be countered on three major points
Conditioner penetration low due to perception of short-term use to hair & oil as nourishing substitute
Conditioner penetration lower than similar countries due to perception issues
Penetration driven by westernization of habits and conception of beauty
People who’ve used conditioner think its usefulness to hair is temporary
They feel its for looks, not nourishment, since it is chemical
They feel that oil nourishes, hence are more loyal to hair oil
Makes hair look shiny, smooth but not oily
The combination is important in westernized aesthetics
As consumers get westernized they accept conditioner as part of habit like lipstick, gel, deodorant etc
However volume sold to such consumers still low because of perception issues
People who haven’t used often do not know what it does or why it’s useful
The perception problem has to be countered on three major points 1
Its not nourishing since its chemical
Product innovations with more natural, organic products
Focus on distinct usefulness:
Quality of hair strand against brittleness, dryness given by shampoo
Protection from sun 2
No real long-term use for hair
Competitive de-positioning of oil:
Oil is protects hair root & scalp, while conditioner protects hair strand
Oil y hair makes user look un-progressive 3
Oil and shampoo together are enough
Source: Expert interviews, primary data

6. What is the pattern of lifestyle product adoption in India?
Who do we target?
Qrius
team

7. India is an aspiration-al, follower market in lifestyle products leading to distinct pattern of adoption
Indian lifestyle market follows western tastes with two main drivers* 1
Since other countries have industrialized earlier, the standard for ‘modern’ life has been set
Aspiration to global living standards is leading Indians to adopt new lifestyle products 2
Direct influence of western culture happens via everyday interaction with globalized institutions
What has ‘value’ is based on underlying cultural assumptions
Underlying prosperity leading to expanding lifestyle
Related to importance of western culture in their everyday life
Leading to the following household segmentation for propensity to adopt:
King Regent
Politicians
Family biz owners in t3,rural
Mister Pukka
Professionals (doctors, law) in tier2
Family business owners in tier 2
Big Boss
IT and medical sectors in metros
Lawyers, bankers, execs in metros
Dharam Vir
Big farmers
Government officials in tier 3
Shop-keepers in t1, t2
Babu Moshai
Academics in tier 2 and smaller tier 1 institutions
Professionals in vernacular media
City Sahib
Class 1 civil servants and army
Academia in premier institutes
Professionals in English media, BPO
Workmen
Small farmers
Barbers, domestic help
Oliver Twist
Staff in mid-market services
Workers in semi-skilled jobs
Metro Slick
Staff in malls, cafes, upmarket restaurants, salons
House-
hold income
Strength of direct linkage to western institutions**
Within households, younger people have higher propensity to adopt new lifestyle products
Exception is natural, organic products where Indian households can be early adopters since it ties in to traditional home remedies and cures
**Quantified by percentage of people in daily life they converse in English with
Source: Expert interviews, primary data, analysis

8. Expansion can be done in stages by targeted widening of ages and household types of users
Currently users focused in the 20s in Big Boss and City Sahib households
Phase 1 increases frequency & expands to 30s, 40s age segments in these households
King
Regent
Mister
Pukka
Big
Boss
Dharam Vir
Babu
Moshai
City
Sahib
Workmen
Oliver Twist
Metro
Slick
Current users
House-
hold income
Strength of direct linkage to western institutions
* Primary survey from shopkeepers
Phase 2 and Phase 3 focuses on expanding to new households in 20s, 30s and 40s
King
Regent
Mister
Pukka
Big
Boss
Dharam Vir
Babu
Moshai
City
Sahib
Workmen
Oliver Twist
Metro
Slick
King
Regent
Mister
Pukka
Big
Boss
Dharam Vir
Babu
Moshai
City
Sahib
Workmen
Oliver Twist
Metro
Slick
House-
hold income
House-
hold income
Strength of direct linkage to western institutions
Strength of direct linkage to western institutions

9. What are the specific needs of these segments that we want to target?
How do we meet these needs?
Qrius
team

10. The Big Boss, City Sahib segments Purchase Decision Purchase Decision
IT and medical service professionals
Lawyers, bankers, other execs
Class I civil servants, army personnel
Professional in media, BPO
20s – 30s
30s – 50s
Profile
Modern progressive youth
Smart, compete globally
Riding on economic progress - High disposable income
Take own decisions
Looking good is important
Less sensitive to price
Profile
Educated adults who have seen the economy transform
Worked hard for success
Respect roots but enjoy ‘high class’ living, status is important
Partly value & partly class conscious, family important
Based on product information and brand association
Through visits to salons, beauty clinics & malls
Magazines & word-of-mouth
Purchase Decision
Based on family preferences, brand & product value
Also buy for teenagers in Indian homes
Magazines, televisions & word-of-mouth
Purchase Decision
Positioning Strategy
Repeated use of conditioner leads to long-term quality of hair
Oil and shampoo as a combination are not enough for healthy, beautiful hair
Push positioning using celebrity ads and salons
Society will judge you on your looks, including hair
Oily hair is not connected with upper class aesthetics nowadays
Push positioning through product placement in primetime soaps
Source: Expert interviews, primary data

11. Push positioning using celebrity ads and promo deals
The Mister Pukka, Metro Slick segments
Professionals (doctors, lawyers) in Tier II
Family business owners in Tier II
Staff in malls, cafes, upmarket restaurants, salons, tourism industry
20s – 30s
30s – 50s
Profile
Full of aspirations
Attracted towards modernity
Value conscious but not for products symbolizing better living
Adaption accelerated by Big Boss
Looking good indicator of status
Want to feel different & special
Profile
Adaption rate decreases with age and value consciousness increases
Looks are important only on special occasions
Unstated/secret need to look sexy, young, beautiful
Family is important
Oscillation between own aspiration and family needs
Beauty products used to express identity
Influenced by advertisements and branding
Purchase Decision
Women of the house take shopping decisions
Buy for teenagers as well in Indian homes
Associate with ideal mothers and wives
Purchase Decision
Positioning Strategy
Beautiful hair helps gain self-confidence, social upwardness
Oil and shampoo as a combination are not enough for healthy, beautiful hair
Push positioning using celebrity ads and promo deals
Looks including hair a component in family’s prestige
A good mom takes care of family’s hair care needs
Push positioning through family based ads and product placement in primetime soaps
Source: Expert interviews, primary data

12. The King Regent and Babu Moshai segments
Politicians
Family business owners in Tier III & rural
Academics in Tier II & smaller Tier I
Professionals in vernacular media
KING REAGENT (20s – 40s)
BABU MOSHAI (20s – 40s)
Wealthy, well respected individuals in small towns & big villages
High disposable income, price insensitive, spend on status symbol
Don’t spend much on beauty. Most toiletries buying habitual
Family is important
Slow adapters, slow lives
Value conscious, need based shopping, price sensitive
Modernity is a marketing gimmick
Close to their roots & nature
Family & values important
Not affected by economic flight
Ladies of the house take most purchasing decisions
Not much exposure to fashion trends except from television & movies
Purchase Decision
Lives are about their own community and work
Watch TV and have strong association with movies
Men do most shopping, decisions affected by women
Purchase Decision
Positioning Strategy
Looks including hair a component in family’s prestige
Oily hair is not connected with upper class aesthetics
Introduce herbal variants to bridge perception gap
Prestige based ads and primetime soaps
Looks including hair a component in family’s prestige
Introduce herbal variants to bridge perception gap
Push positioning through touch points promo deals
Source: Expert interviews, primary data

13. Based on these consumer insights we have created three broad positioning statements
“It’s a Beautiful Life”
“It’s a Beautiful Life”
Showcasing the idea of comfortable living
Pushing the idea that beauty is important thus encouraging beautifying yourself
Setting a youthful mood
‘Aaj Duniya Hamari Hai’ – Today the World is Ours
‘Aaj Duniya Hamari Hai’ – Today the World is Ours
States ambition, aspiration and the idea of self-confidence
Also shows that the world is new and changing ; and the rules have changed
Oil nourishes hair root and scalp, conditioner nourishes hair strand
Oil nourishes hair root and scalp, conditioner nourishes hair strand
Gives a clear logic for why conditioner is needed
De-positions oil
Nonetheless positions oil and conditioner as complimentary
Source: Expert interviews, primary data

14. How do we implement our media and market strategy?
Which channels do we use?
Qrius
team

15. Our 3-year Media rollout plan ties our positioning strategy to a clear channel roadmap
CYCLE
CORE THEME
MONTHS
MEDIUM TV PR
Internet
Radio
Print Media
1. Educate the consumers: Create an awareness about oil and conditioner Portray the difference between oil and conditioners; project them as complimentary products
Pre-campaign
Teaser commercials on Oil versus conditioners
“Indian hair needs not just oil “
2.Hair health trivia in malls and transits
Facebook and Twitter activities commence
You can make the difference to your hair's long health 10 sec commercial
Hair needs long-term care! On TOI, Femina, Cosmopolitan
June
Making people realize about the hair nourishing vs. conditioning cause
1. Transit advertisements Posterior of autos News channel coverage
Website launched with "check your hair type" app
Launch of ads to show difference is made by regular usage of conditioners sec commercials
"You can make a difference to your hair's long health" Full and half page length ads 1
Connect with the audience via a compelling story
July
How can you carve your hair story?
Concept popularized through in-mall promotional activities
Blogging, tweeting about the campaign starts. People update their tweets and status messages
How you can carve your hair story? ads.
Adv. For goal 1
August
Remedies to make hair conditioning a success
September
Event promotional ads. 2
Connect with the Indian family and make people realize how their daily hair care habits could go a long way
October
Family values: Oil and conditioner good for hair
Launches calendar for an average Indian's monthly Hair care
Get customer feedback through an online survey. Viral videos on Consumer feedback
Adv for Goals 1 & 2
November
December
Customer testimonials focus on interviewing satisfied customers 3
Connect with the audience through the holiday festivities and season its opportunities
January
Season's greetings themes ads
Rope in celebrity
New year resolution campaign. People post their resolutions to give hair care requisite attention, starting with conditioning
Season's greetings & tips on how to get the right conditioner to help turn a new leaf in your personality
February
March 4
Brand building
April
Office goers, housewives joining ads; use conditioners daily
"I care for my hair" freebies
"Keep your hair cool this summer with Dove conditioner" short campaign
May

16. Based on our financial analysis, the media plan offers scale and sustained future profitability for HUL
Year 1
Year 2 to 3
Phase-I: 6 metros
Phase-II: 14 major cities1
Product Mix
Hyderabad
Bangalore
Mumbai
Chennai
Delhi
Kolkata
Pune
Nagpur
Ludhiana
Ahmedabad
Surat
Coimbatore
Faridabad
Amritsar
Chandigarh
Jaipur
Kanpur
Lucknow
Bhopal
Map city
Appoint
Promo plan
~ 25% margin
Map city
Appoint
Promotion plan
0-3 m
0-3 m
Geographical Expansion
Establish ~5 billboards/ city
Establish
~3 billboards
/ city
3-9 m
3-12 m
Establish
total ~20
billboards/city
Establish
total ~10
billboards/ city
9-12 m
12-36 m
Cash flow analysis for Company
Break-Even analysis
Yr 0
Yr 1
Yr 2
Yr 3
Total Capex Expenditure (Rs. Mn) 36
Revenues- Rinse-off (Rs. Mn)
7662
18476
47307
Revenues- Sachets (Rs. Mn)
215
386
693
Revenues-Leave on (Rs. Mn)
9295
32756
117604
Total Revenues (Rs. Mn)
17171
51618
165604
Raw material cost (Leave-on) (Rs. Mn) 72
Raw material cost (rinse-off) (Rs. Mn) 60
Packaging material (bottle + sachets) (Rs. Mn)
16511
31627
61747
General Expenditure (Rs. Mn) 12
Advertising & Sales promotion (Rs. Mn)
477
Total Operating Expenses (Rs. Mn)
17132
32248
62368
EBITDA (Rs. Mn)
-36 39
19370
103236
Depreciation (Rs. Mn)
PBT (Rs. Mn) 3
Financial Analysis
Break-even achieved in ~ 1.5 yrs

17. Backup
Qrius
team

18. Deep knowledge of consumer needs & diverse habits forms the basis of category wise performance
Second-tier cities like Rajkot and Aurangabad, for e.g., are growing fast but lack awareness about post-shampoo hair care
Tier 1
Sec A
Tier 2
Sec A/B
Tier 3
Rural
Sec C/D
Pre-wash habit
Oiling
Oiling 
 Oiling
Shampoo Usage days
Conditioner usage days
Preferred packs
Tubes 
 Bottles
Bottles/Sachets 
 Sachets
Additionally, a diversity in top consumer hair needs
Sharply tailoring market development
Tier 1
Tier 2
Tier 3
Rural
Hair Fall 3 1 2
Damage 4 5
Longer/ Strong
Dandruff
Shine
Tier 1
Need for product Innovation
Tier 2 & 3
Rural
Need for Awareness on conditioners

19. Pen Profile of theTarget customer
Among competitors in the Tier 1 cities, HUL compares favorably on most of the relevant parameters
Attributes
DOVE
SUNSILK
PANTENE
L’OREAL
Price
 High
Intermediate 
High 
Very High
Promotion
Very High
High
Intermediate
 Intermediate
Distribution
Very High 
Low
Range of Conditioners
Market Analysis
Pen Profile of theTarget customer
What does the Customer look for in a Conditioner?*
Mid-twenties to late-thirties. Female. Independent and Working women, mostly in a fast paced-work place
Demographic Profile
Socially conscious, eager to please, fashionable, desire to look young, beautiful and fit within the peer group
Psychographic Profile
„On-the-go“women, specific need users. Trust in big brands important
Behavourial Profile