Market and Demand Analysis

of

“Jasmine” Hair Sanitizer

(a HUL product)

Submitted by

Rajesh Singh Shubhangi Singhal

Swati Chhabra Manjot Singh

Saurabh Tayal Siddharth Wadhwa

Amit Chaubey

Submitted to

Prof. Deeksha Singh

9th august 2011

Executive Summary

The main objective behind the introduction of “Jasmine” Hair Sanitizer is to cater the growing needs of 21st century Indians who are becoming more and more conscious about their well being but have less time to take care of.

Since 1933, Hindustan Unilever is a well known name in every part of the country. Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. As per an estimate, two out of three Indians use its many home and personal care products, food and beverages.

As more and more Indians are leaving their doorsteps to explore the outside world, need of ready to use products are growing at a tremendous pace. The young generation wants to get maximum health care facilities without spending much of their precious time.

Hair problems are one of the very common problems in a day to day life. As today’s lifestyle requires smart personality, hair care has become much important than ever before. Keeping these conditions in mind, HUL is trying to bridge the gap by introducing the JASMINE HAIR SANITIZER. This sanitizer has some unique features which will make it an after-sought product in the modern Indian life.

Some of its features include:-

- Pure herbal product- No need of water- 3 minutes and its done- Non-alcoholic- Anywhere, anytime- Kills germs and bacteria- Nourish hair and make them smooth and shiny- Anti dandruff- No side effects

This report has tried to find out the prospects of this product along with various factors to be considered while launching this product.

The demand analysis has been done to identify the possible future demand of the product, the target customers and the features it should contain. The whole process is done by means of a survey of prospective customers along with forecasting technique like chain ratio analysis.

The technical analysis has been covering the aspects of suppliers of raw material, machineries, technology and plant location and layout.

Then the environmental analysis will cover the water and waste disposal laws that the company has to abide in order to provide protection to the environment. HUL has always been very sensitive to environmental issues and tries to give back to the nature as much as possible.

In all, the product can be considered as the need of the hour and as pioneers, it could be a profitable start up for the company.

Overview of the product

The product would be in a semi liquid form which can be applied directly on the hairs with the help of hands. In just a span of 3-4 minutes, the strong herbal formula of the sanitizer will clean the hairs and make them smooth and shiny.

It would be available in various verities catering the diverse need of the consumers so that every problem shall have a solution in this Hair Sanitizer.

- For rough and dry hairs- Oily hairs

Initially, the hair sanitizer would be available in these 2 categories only, but later on it could be expended to other specific categories.

Physical Appearance:-

The hair sanitizer would be available in plastic bottles and tubes in many suitable volume options like 20gm, 50gm and 100gm.

The plastic used for the packaging would be of very high quality which will not effect the preposition of the solution at all. These packages would be of two colors- pink for dry hairs and greenish blue for oily hairs.

Solution Composition:-

The solution would contain various herbal extracts and oils which are very necessary and effective in Hair Care.

- Benzalkonium chloride or triclosan (in place of alcohol)- Water- Aloe vera ext.- Floral fragrance- Triethanolamine,- Acrylates/ c10-30- Glycerine- Grape leaf extract and wheat germ extract and soyabean extract,- Mannitol cellulose,- Ultramarines ci 77007- Vitamin e acetate,- Peppermint extract- Pigment blue 15 (this is colour which would vary with each variant)- Ginger oil- Ashwagandha extract- Reetha and shikakai extract- hohoba oil- lemon extracts

- Amla fruit extract- Permitted preservatives

The items, quantity and composition of these items shall vary as per the type of sanitizer.

Demand and Market Analysis

For determining the demand of the product and market opportunities, a survey was conducted taking 120 respondents in all.

The demographics of these 120 respondents are:

73 are females 47 are males

80% of the respondents were in the age group of below 30.

60% of respondents are students 38% of respondents are working 02% of respondents are housewives.

The outcomes of this survey are:-

o 62% respondents wash their hair 3 or less than 3 times a weeko 37% respondents wash their hair 4-5 times a week

On an average, people tend to wash their hair 3-4 times a week

o 94% respondents use shampoo for cleaning their hair.

The main competitor is the shampoo products.

o 44% respondents said dirt and pollution as their biggest reason for hair problems.

o 32% said dry unmanageable hairso 20% said oily hairs

The sanitizer must have the cleaning power to tackle the dirt and pollution related problems. Also, it should nourish the dry, unmanageable hair and remove the unnecessary oil from oily hairs.

o 50% respondents use shampoo specific to some purpose like Anti dandruff, for dry hair, oily hair etc.

The sanitizer must remove the dandruff problem as well.

o Almost half of the respondents were loyal to a specific brand like Loreal, dove, sunsilk etc.

This half population needs special attention and efforts to switch to the Hair sanitizer. Rest half could switch comparatively easier. The sanitizer bust be positioned in a way that it looks much better than any other shampoo in terms of usage and result.

o 75% respondents like to use conditioner after the shampoo.

The hair sanitizer should contain ingredients that can be used as conditioners.

o 77% respondents feel they are loosing hair with high or moderate pace.o Main reasons for the hair fall are Dirt and pollution along with changing

weather conditions.o 80% of them never consulted dermatologist for their hair problems.

The hair sanitizer should also have herb extracts and oils which can check this hair fall.

o Almost 90% respondents admitted they are unable to give sufficient time for their Hair Care.

o Almost all of these respondents are willing to try a less time consuming product.

It means they can accept a quality product which is very less time consuming and easy to use.

o 87% respondents are ready to try out the hair sanitizer.

These respondents liked the idea and concept of hair sanitizer and might consider accepting it once it satisfies their needs and requirements.

Overall outcome: - the respondents are willing to try out this new product for their hair solutions. The main target of this product must be the young generation and the working class people as they are the ones who don’t have time for lengthy hair care

processes. As they wash their hair on an average 3-4 times a week, so the effective period of the sanitizer must be at least 2 days or more.

Potential of the market:-

After determining the acceptability of the product by the potential customers, the next thing in line is the market potential. It is done to find out whether there is sufficient market for this product or not.

As the product is new in the market and is unique in its nature, chain ratio projection technique is chosen. In this technique, Market Sales Potential is a function of:

1. The number of Prospective Buyers (B)2. The Quantity Purchased (Q)3. The Price of an Average Unit (P)

Population of Delhi (A) - 1,70,00,000Hair care items penetration in urban areas (B) - 30%Per application usage per person (C) - 10 ml on an averageAverage application in a year (D) - 3 X 52= 156 times

(taking average 3 applications per week)

Price of average unit (E) - Approx. Rs 0.75 per ml.(taking Rs. 15 for a 20 ml tube)

Market potential of sanitizer- A x B x C x D x Ei.e. 1,70,00,000 x .30 x 10 x 156 x .75 = Rs. 600 Crores

As shampoo industry is growing at a rate of 20-25% for last few years, prospects of hair sanitizer also looks good. Only Delhi has a market of around Rs. 600 crores. If rest of NCR region included, it could touch Rs. 1000 crores or so. So, there is a huge market waiting for the right product.

Technical Analysis

Vendor selection: - after evaluating many options, the following firms look best for the supply of raw material like herbal oils and extracts.

Alchemy chemicals, Ujjain, Madhya Pradesh.

It’s an ISO 9001:2000 certified company with total annual sales of around US$ 5 million.

It exports 70-75% of their products. It has most modern scientific extraction facility which has Food

and Drug Administration approval. It has most modern huge extractors along with distillatory, dryers

and other machineries. It is among the few companies of India which has in-house

sterilization facility. Awarded by the Good manufacturing facilities certification. www.alchemychemicals.net

Venkatesh Natural Extracts Pvt. Ltd

Based in Chhindwara, Madhya Pradesh HACCP   ISO 9001:2000 certified Total annual sales around US $7.5 Million http://www.venkateshnaturals.co.in

Process of selection:-

First, quotations would be invited from each party and based on the suitable quotation as per the company’s requirement, a party would be selected.

Contract terms and conditions would be finalised then, which will include quantity of each item, time limit for the delivery, tenure of the contract, pricing methods etc.

After that, all the other documentation work would be completed.

The quotation received from the Alchemy chemicals states: -

25 ml rates:-

Lemon - Rs. 150Rosemary - Rs. 250Peppermint - Rs. 75Jojoba oil - Rs. 90

For Machinery: -

Volumetric paste filling and packaging machine

Cost : around 40,000 per machineOutput/minute : around 20 fill per minuteRequirement : 3-4 machinesManpower : 2 person per machine

Vendors:-

1. Raksha Packaging, Faridabad, haryanaa. Established in 1976b. Products:- FFS Machines,Flow Wrap Machines,Packing Machinesc. Website- http://www.rakshapackaging.com

2. S.S. Pharma tech, Mumbaia. Established in 2002b. Products:- Tube Filling machines, Paste Filling Machines, Pharma

Machinery, Packing Conveyor, Packing Conveyor, Mass Mixer, Lobe Pump, Homogenizer, Capping Machine, Vibro Shifter, Powder Screw Feeder, bottle drilling machine  

Selection process: -

Bids would be invited from interested parties along with all the specifications of the machinery. Overall cost of the procurement would be determined along with estimated future repairing costs, training costs etc before finalising on a machine.Then, necessary documentation work would be completed.

Plant location and layout: -

Factory size - Around 1000 square meters

Factory location - Jind (Haryana)

Reason - Proximity to delhi

Cheap land rate (Rs. 2000 per square mtr.)

as per HSIIDCL

Developed industrial area

Support from state government

Total cost of land - Rs. 20 lakhs

Labour availability - adequate

Waste disposal - treatment plant

Plant layout - space for 3-4 machines, conveyer belts, raw

material storage space, finished goods

storage space, area for loading and de-

loading of trucks etc.

Coding- for efficient inventory management, every item of raw material as well as finished goods would be coded and magnetic strips would be attached to the packages. In this way, company would be able to find out the level of stock at any point of time. Also, tracking the finished products as in which market they went would also be easy.

Environmental Analysis

Although, the hair sanitizer here is a herbal product but still, there would be some use of chemicals occur. Also, during the manufacturing process, there ought to be some kind of wastages which are more or less inevitable. So, a proper disposal system is very necessary.

Waste disposal and chemical treatment: - a water treatment plant would be there in order to check the leakage of harmful chemicals in the local water bodies. The chemicals released/used would be degraded using specific reagents or bacterial process.

There are several environmental norms that the governments have framed which a company has to abide.

Some of the provisions in simple terms are: -

- A State Board or any officer empowered by it in this behalf shall have power to take for the purpose of analysis samples of water from any stream or well or samples of any sewage or trade effluent which is passing from any plant.

- They can inspect the factory premises anytime.- Chemicals are not allowed to discharged in local water bodies like rivers,

lakes, wells etc without properly treating them.- Company has to follow the Water (prevention and control of pollution) act

1974, Environmental protection act. 1986 and any other local environmental laws.

- Non-compliance could result in the termination of licence and/or hefty fine and/or jail term depending upon the impact of the hazardous act.

Recommendation and Suggestion

The “jasmine”hair sanitizer is a unique and promising product which, if launched

carefully, can be a great success. It also has a name of HUL product with it which

will make its path a bit easier. But still, a proper planning is must.

- Enhance the scope of this study beyond Delhi/NCR to get a broader picture.

- The product should be as much herbal and natural as possible.

- Awareness is must, especially among the youngsters and office goers.

- In the long term, company should include other categories also like kids.

- Packaging must be attractive

- There is a scope of further market research for better estimations.

- Company may include a variety which can be used by boys as Hair gel cum

sanitizer.

Conclusion

This product could be a boon for those who have very tight schedules and are

unable to give sufficient time for the Hair Care. Its “use anywhere anytime” feature

makes it a very versatile product which could be handy anytime. As most of the

respondents were very enthusiastic about this product, it contains very high hopes

for future.

Questionnaire

Survey for Hair Sanitizer

Name:- Age:-Gender:- e-mail id:-Phone no.:- Occupation:-

1. How many times do you wash your hair in a week?_____________________________

2. You prefer using:a) Shampoob) Soapc) Any other, please specify _____________

3. Why do you use a shampoo:a) Dermatological ailment,b) Unmanageable hair,c) Dirt and pollution,d) Oily hair.

4. You prefer using some specific category or use a specialised shampoo?a) Nob) Yes, then please specify ______________

5. Do you stick to a specified brand?a) Yes, please specify_________________b) No

6. You prefer using something else after using shampoo:a) Conditionerb) Hair Serumc) Something else like egg, curd, beer etc.

7. What is the intensity of your hair fall:a) Highb) Lowc) Minimal

8. What do you think could be the possible reason for your hairfall?a) Professional Stress,b) Changing weather conditions,c) Age,d) Chemically treated haire) Split endsf) Dirt and pollution

9. Because of the above mentioned reasons have you ever consulted a dermatologist?a) Yesb) No

10. Please choose the nearest possible constraint for not washing your hair frequently:a) Time constraint,b) Family constraint,c) Leave home early morning.

11. Are you conscious of washing your hair on Tuesday, Thursday and Saturday?a) Yesb) No

12. Would you like to use something that takes much less timea) Yesb) No

13. Would you like to use a hair sanitizer instead of shampoo?a) Yesb) No

14. With what frequency would you like to use the sanitizer?a) Frequentlyb) Rarelyc) Only on special occasions like parties, marriages etc.