MARKETING ESSENTIALS

APRESENTATION ONBRAND CREATION[SOAP]

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

:GROUP MEMBERS:

DIP VIMAL

BHAVIN DHARMESH

AJAY ANKUR

BHAVESHABHIJIT TARUL

MAHESH

CONTENT

MICRO ENVIRONMENT MACRO ENVIRONMENT MARKET SCAN DEFINITION OF FMCG HISTORY MARKET SEGMENTATION FACTORS AFFECTING BUYING BEHAVIOUR PEST ANALYSIS SWOT ANALYSIS BCG MATRIX CONCLUSION

MICRO ENVIRONMENTCOMPANY’S INTERNAL ENVIRONMENT

SUPPLIERS

MARKETING INTERMEDIARIES

CUSTOMERS

COMPETITORS

MARKET SCAN

Environment scanning is the process of collecting

information about the forces in the marketing

environment

In market scanning, it’s 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. What’s

going on in our society? legislation? The economy? Demographics?

Weather patterns?

WHAT IS A FMCG?

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.

•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 FROMCONSUMERS’ PERSPECTIVE

•1.Frequent purchase.•2.Low involvement. •3.Low price.

CHARACTERISTICS OF

FMCG FROMMARKETERS

ANGLE

•1.High volumes. •2.Low margins. •3.Extensive distribution

networks.•4.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.

Increased sales revenues would also expand from up gradation of quality or per unit value.

The incremental demand flows from population increase and rise in usage norm impacted as it is by a greater concern for hygiene.

Toilet soap, once only an urban phenomenon, has now penetrated practically all areas including remote rural areas.

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).

ENVOIRNMENT ANALYSES…

GEOGRAPHIC ENVIRONMENT

N

S

EW

GEOGRAPHIC ENVIRONMENT

Region : North, south, West, East City size : 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 ENVIRONMENTMain demographic force that marketers monitor is POPULATION because people make up markets.

Size & growth rate of population incities,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.

1.15 bil

46 cr(13-35 yrs)

Rest of people (< 35)

Total Population

Age wise

INCOME•They usually prefer to buy low cost product.

5000 – 10000 Rs.

•They can afford standard product.

10000 – 25000 Rs.

•They usually prefer to buy high cost product.

< 25000 Rs.

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.

65% People

55% Literacy

35cr (13-35)

Country

Women

Age wise

ECONOMIC ENVIRONMENT :

Per Capita Income $3100

Inflation Rate 10%

GDP (PPP) $3.57 Trillion

Economic Comparison Rank Worldwide

5

ALL FIGURES IN MILLION AS ON 2006-07

Income ClassHouseholds Estimated

Population

Rich 5.2 30

Consuming class 75.5 432

Climbers 81.7 472

Aspirants 20.2 117

destitute 16.5 95

0

50

100

150

200

250

300

350

400

450

500

5.2

75.5 81.7

20.2 16.530

432

472

117

95

Households

Estimated Population

ECONOMIC ENVIRONMENTEconomics 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).

PSYCHOGRAPHIC ENVIRONMENT

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.

COMPITATIVE ANALYSIS…

COMPETITORS[ MEN’S CATEGORY]

WILD STONE

PARK AVENUE

AXE

REXONA

CINTHOL

COMPETITORS[CHILD’S 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 competitorswhich provide very different product that solve the same problem or satisfy the same basic customer needs

Total budget competitorswhich compete for the limited financial resources of same customer.

MARKET SHARE

HLL   

Nirma   

Godrej   

Others

0 10 20 30 40 50 60 70

64

16.8

4.4

14.8

Market Share

% Share

Pla

yers

CONSUMERS ANALYSIS…

BENEFITS SOUGHT BY VARIOUS CUSTOMERS FROM VARIOUS BRANDS ARE

Beauty - Lux

Freshness – Liril, Cinthol

Natural – Medimix,

Margo

Baby – Johnson &

Johnson, DoyCream –

Dove, Doy Care

(moisturizing)

Medicated – Dettol, Savlon,

Glycerine – Pears, Emami

All in One – Alfresh

Liquid Soap

FACTORS AFFECTING BUYING BEHAVIOUR

Price

The buying frequency

The promotional techniques

Women oriented market

FACTORS OF BRANDS

factors

FUNCTIONAL

NEED SATISFACTION

FRAGRANCE IMPACT ON CONSUMER

EMOTIONAL

FOR REMOVE THE BAD ODOUR

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.

MARKET SEGMENTATION…

WHOLE PROCESS OF BRAND CREATION

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.

•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%.

HIGHLIGHTING SEGMENT…

PREMIUM SOAPS ARE ESTIMATED TO HAVE A MARKET VOLUME OF 80000 TONES.

THEY POSESS A SHARE OF AROUND 14-15%.

THIS SEGMENT HAVE COMPARITIVELY HIGH LOYALYTY.

TARGETING…

PREMIUM

RICH & UPPER MIDLE CLASS

AGE

15-35 YRS

INCOME

30000 & ABOVE

PEST ANALYSIS:

Political Factors: --

Politically there is no much of a problem for the ALFRESH SOAP and will create an impact that will not affect our product.

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 NGO’s towards inefficient PHC-primary 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

Before going to SWOT Analysis we

must understand which things are

included in the SWOT analysis;

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.

POSITIONING OF BRAND

RESEARCH &DEVELOPMENT

After extensive research and development we have come up with an idea of launching ALFRESH LIQUID SOAPS

GAP OF OPPORTUNITY

There are 2 major competitors for liquid soaps.

Fiama De Wills of ITC. Lux liquid soap of HUL.

Out of which Fiama De Wills is growing faster.

There are no other prominent players in this segment.

GAP OF OPPORTUNITY

Such liquid soaps are more popular in women of age 15-35.

The major player in baby liquid soap is johnson & johnson.

So, after all the analysis we can see that this segment of soap is not yet explored.

Looking at the development and growth of country this would be the right time to enter this segment.

THE BOSTON CONSULTING GROUP’S GROWTH-SHARE MATRIX (BCG)

BCG Matrix Include;

Stars are high market share/high growth

businesses. The preferred strategy is growth.Question Marks are low

market share/high growth businesses. The preferred strategies are growth for promising question marks

and restructuring or divestiture for the other

question marks. Cash cows are high market share/low growth business. The preferred strategy is

stability or modest growth.Dogs are low market

share/low growth businesses.

The preferred strategy is retrenchment by

divestiture.

INTERPRETATION OF BCG MATRIXOUR STRATEGY WOULD BE CASH COWS.

HIGH MARKET SHARE & LOW GROWTH.

SINCE FMCG PRODUCTS DO NOT HAVE HIGH PROFIT MARGIN.

SO, LIKE HUL WE WOULD TRY TO HAVE MORE MARKET SHARE THROUGH DIVERSIFIED BRANDS.

BECAUSE BATHING WITH SOAP IS OUTDATED.

ADD LIFE TO YOUR BATH WITH ALL NEW…….

ALFRESH

SOAPS.. CHILD MEN WOMEN

OUR PRODUCTS…

ALFRESH SOAPS

BABY SOAP.

MEN’S

SOAP.

LADIE’S

SOAP

ALFRESH BABY’S LIQUID SOAP…BABIES SKIN IS VERY DELICATE, DON’T HARM THEM WITH CHEMICAL PRODUCTS, GO HERBAL.

THIS PRODUCT IS NOT AT ALL HARMFUL FOR SENSITIVE EYES OF BABIES.

ALFRESH MEN’S SOAP…KEEP YOU FRESH FOR 24 HRs.

SPECIALLY MADE FOR MEN, BECAUSE MEN TOO REQUIRE ATTENTION…..

ALFRESH WOMEN’S LIQUID SOAP…AVAILABLE IN VARIOUS ATTRACTIVE DESIGNS & FRAGRANCES.

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.

IT’S A FAMILY SOAP SATISFYING NEEDS OF ALL MEMBERS OF FAMILY.

LONGLASTING FRESHNESS WITH FRAGNANCE.

GIVING BATH AN ALL NEW EXPERIENCE.

CUSTOMERS TARGETED.

BASICALLY IT’S 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.

PROMOTIONAL ACTIVITIES

CARNIVALS

TELE CALLING

CONTEST & GIFTS

WORKSHOPS FOR TO BE

MOMS

FREE SAMPLE DISTRIBUTIO

N

DISTRIBUTION CHANNELS

MANUFACTURING UNIT

DISTRIBUTERS

MARTS WHOLESELLER

GROSSERY

SHOPS

MEDICAL

STORE

SUMMARY

Cost effective

Environment friendly

Steady profit margins

Less competitive but high risk

A huge growth potential over the years to come.

THANK YOU