ICA PPT Consolidated

8/13/2019 ICA PPT Consolidated

1/19

I C A P R O J E C T P R E S E N T A T I O N

G R O U P HA D H Y A

P R A N A V

P R A T E E K

R A H U L

R A T I K A

Hair Care Industry in India


2/19

I N D U S T R Y A N A L Y S I S


3/19

Haircare Industry: Some Facts

Concentrated Industry: 3 players 43.9% marketshare

Fragmented in terms of brands

100% FDI allowed 100s of unorganised sector players

Strategic market: national level

Product scope: as large as possible


4/19

Sales($Million) of Haircare Products

1123.5

1301.2

1510

1727

1945.5

0

500

1000

1500

2000

2500

2007 2008 2009 2010 2011

$million


5/19

Porters Forces Analysis


6/19

C O M P E T I T O R A N A L Y S I S


7/19

Focal Firm: Dabur

1884 Started inCalcutta

Early 1900s AyurvedicMedicins

1900-1936:Expansion Phase

1940: DaburAmla1948: DaburCHavanprash

1986: Public Ltd.

1986-96: JVGrowth

1996: 3 separate

Divisions

1998: ProfessionalManagement

1999-2000 :Herbal fromAyurvedic

2004-2005 :Rebranding

2006: 2 billionmarket cap.

2006-2010:Expansion

2010: Firstoverseasacquisition

2011: Enters skin

care market2012: Crosses

billion dollarturnover mark

2012-13: ProjectDouble

2012-13: VarikaRebranding &Relaunch

54%

10.80%

30.50%

Revenue Share

ConsumerCare

Foods

IBD


8/19

Dabur Offerings

Supplements

Digestives

OTC

HEALTH CARE FOODS

PERSONAL CARE

Oral Care

Skin Care

SHAMPOO HAIR OIL


9/19

Dabur (cont..)

Of total sales

Portfolio growth

Lagest player

17%

11%

2ndH

AIRCARE

CURRENT STRATEGIC FOCUS

LEADERSHIP

Proffessional Help, Intrernal leadership development

FOCUS ON RURAL SECTOR

Project Double

FOCUS ON IT

Channel Management, Data Management. Communication

FOCUS ON R&D


10/19

C O M P E T I T I V E A N A L Y S I S - S H A M P O O


11/19

About HUL

Entered Indian

market with 1895

Competes in differentcategories like soaps

& detergents,personal care, foods& beverages etc.

Market leader in HairCare category, which

comes underpersonal care

Major player in

shampoo market withmajor brands likeClinic+, Sunsilk,

Dove etc.

Recently entered hair

oil category withpremium productsunder Dove brand


12/19

Major products in Shampoo category

HUL

Clinic+: Young girls, hair fallreduction

Clear: Dandruff removal

Sunsilk: Young urban females,trouble free hair

Dove: Mature women,nourishing hair

Ayure:Herbal products

DaburVatika: Initially herbal image,young girls; now have re-launched for fast moving girls


13/19

Competitive Storyboard: Shampoo Category

From 1960s to 1990s, HUL came up with no. of products toestablish category leadership

Dabur, a late entrant in Shampoo category, launched Vatika in1999 with pro-herbal image

In response to it HUL launched herbal range of productsunder Ayurebrand in 2002

Dabur re-launched Vatika in 2007 with fresh pro-young imageto lure vast growing youth segment

With Dabur in its turf, HUL increased its ad spend to establishits brand Sunsilk deeper in the psyche of youth and launcheda no. of variants; recent Gang of Girls Campaign


14/19

Competitive Storyboard (cont)

Market

Commonality

Resource Similarity

High

Low

Low High

Dabur - HUL

MediumAwareness

HighMotivation

HighAbility

HUL Ricardian Assets: brand image ,distribution network

Dabur Differentiating Advantage: Herbaloffering, Indian Brand

HUL Reaction: Allow entry, follow up withtheir own category cometing Products


15/19

C O M P E T I T I V E A N A L Y S I S H A I R O I L


16/19

About Marico

Founded in 1988 inMumbai

Flagship brand:Parachute coconutoil in 1990 followed

by Saffola

Turnover of Rs. 42.6bn. With profit of Rs.

4 bn.

Market leader in hair

oil with 27% marketshare

Present in fourmajor segment- Hair

Care, Health Care,Male Grooming,Skin Care

Hair Care Brands-Parachute, Nihar,

Hair & Care, Livon,Mediker


17/19

Hair Oil Market in India

CoconutBased48%

AmlaCased

15%

Valueadded27%

Parachute Coconut, NiharCoconut together have 54%market share, Vatika Coconutclosest competitor

Dabur Amla is the marketleader with market share ofXX%

Niche categories:

Cooling: Emami NavratnaAlmond based: Bajaj Almonddrops, Dabur Almond, NiharAlmondLight: Maricos Hair & CareHot: Parachute Hot

Fragrance: Parachute Jasmine


18/19

Storyboard in Hair Oil Segment

Dominated by unbranded players Dabur Amla was launched on a national scale 1953, Bajaj Brahmi Amla launched; couldnt match the success of Dabur

1940s-50s

1989, Premium oil Bajaj Almond Drops was launched

1990, Marico launched coconut based hair oil- Parachute at competitiveprice targeting young girls Dabur didnt see it as a competitor owing to different category

1989-90

1991, Emami launched Navratna cooling oil; Marico & Dabur launchedproducts in response but failed

Dabur launches coconut based hair oil in 1995 under the brand nameVatika - herbal image and targeting young girls

1997, HUL launches Nihar coconut oil positioned as 100% pure; success in

East India

1991-2000

Dabur competes in Amla, coconut & almond with Dabur and Vatika brand Marico acquires Nihar, proliferates products in all the major categories

with Parachute, Nihar and Hair & Care brands

2001-Present


19/19

Competitive Rivalry Model

Market

Commonality

Resource Similarity

High

Low

Low High High

Awareness

HighMotivation

MediumAbility

Dabur-Marico

Dabur Ricardian Assets: brand identity ,learning curve, distribution

Dabur unable to take deterrent actions likeproduct proliferation etc.

Marico dethroned Dabur due to quickentrepreneurial actions

ICA PPT Consolidated

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