Sunsilk Gang of Girls -1

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    SachchidanandAgrahari

    Jindal

    NitinSoumya

    Shalibhadra

    Lokesh

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    HUL Introduction

    Hindustan Unilever Limited is India'slargest Fast Moving Consumer Goods(FMCG) company.

    HUL was formed in 1933 as Lever BrothersIndia Limited and came into being in 1956

    as Hindustan Lever Limited. The Company has over 16,000 employees.

    There are 75 manufacturing locations inIndia.

    Annual turnover of around Rs. 21,736

    crores (financial year 2011 - 2012). Unilever has about 52% shareholding in

    HUL.

    HUL's brands are spread across 20 distinctconsumer categories.

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    Contd..

    Brands With over 35 brands spanning 20 distinct categories such as

    soaps, detergents, shampoos, skin care, toothpastes,

    deodorants, cosmetics, tea, coffee, packaged foods, icecream, and water purifiers.

    Home & personal care:- Lakme, Axe, Pepsodent, Surf Excel,

    Wheel, Lux, Dove, Fair & Lovely & many more.

    Foods & Beverages:- Kissan, Knnor Soups, Annapurna, Kwality

    Walls, Brooke Bond , Lipton etc.

    It has also launch water purifier with the name Pureit.

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    Shampoos

    The HUL holds a 44% market share in the Indianshampoo industry.

    HUL earns almost 8% of its revenue from the sale of

    these products.There are 6 brands under this category-

    Sunsilk

    Dove

    Clinic Plus Clear

    Aviance

    TRESemm

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    Shampoo Market inIndia

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    History The name Shampoo is

    derived from champo Introduced in Britain by

    Bengali EntrepreneurMahomed in 1814.

    Known as Mahomeds IndianVapour Baths.

    Clients received an Indiantreatment of champi

    (shampooing). In India, Shampoo came in to

    existence in 1960.

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    Shampoo Market : History

    Excise duty decreased from 120% in 1993 to

    16% in 2002.

    Aggressive marketing started in 1993.

    Market grew 2.5 times from 1994 to 1998. It was worth 85 mn in 2001

    Market penetration

    Rural: 12% Urban: 36%

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    Segmentation Beauty

    Sunsilk Health

    Clinic Plus, Pantene

    Anti-Dandruff (AD)

    Head & shoulder, Clinic allclear

    Herbal/Natural Ayur , Vatica, Nyle

    Premium Products Shehnaz Hussain

    Revlon Flex

    L'Oreal

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    Growth Story People were afraid of Shampoo

    due to its chemical usage.

    herbal shampoos emerged as asignificant niche in 1990.

    Chik (Cavin Care) emerged as

    price player. Later on, Cavin care as first

    company to launch sachetsshampoo (Chik).

    By 2004, Shampoo market wasRs. 100 mn.

    Major drivers of growth weresachets.

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    Price war

    In 2003, this industry startedfacing price war.

    Aim was to provide value to theconsumers.

    Indian companies like Cavin care

    and Dabur were the biggest

    looser.

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    Current Shampoo market Size in India

    Size of shampoo market 950 Cr

    Anti - Dandruff Shampoo - 20 % ofabove

    Sachet Sales - 70 % of above

    Average Growth over the last few yrs -

    > 20 Expected Average growth over the next

    few yrs - 25 %

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    Shampoo Awareness in India

    Urban areas - 95 %,accounting for 80 % ofshampoo sold in the

    country Rural areas - 80 %,

    accounting for 20 % ofshampoo sold in thecountry

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    Rural market for shampoo

    70% of population live in rural India.

    More than 50% FMCG sales comes fromrural markets.

    90% sales comes in form of sachets of Rs1-3.

    Increasing brand awareness and income. Special focus of FMCG companies in

    rural india.

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    Market share in Indian shampoo

    industry

    HUL, 46%

    P&G, 24%

    Cavin

    Kare, 18%

    Dabur, 7%Others, 5%

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    STRENGTHS:

    1. Low operational costs

    2. Presence of established

    distribution networks in bothurban and rural areas

    3. Presence of well-known

    brands in FMCG

    WEAKNESSES:

    1.Low exports levels.

    2.Lower scope of investing intechnology and achieving economies

    of scale, especially in small sectors.

    3.Education in rural Market.

    OPPORTUNITIES

    1. Untapped rural market

    2. Rising income levels

    3. Large domestic market- a

    population of over one billion.4. Export potential

    5. High consumer goods

    spending

    THREATS:

    1.Removal of import restrictions

    resulting in replacing of domestic

    brands

    2.Slowdown in rural demand3.New entrants.

    4.spurious goods and illegal

    foreign imports.

    5.Low infrastructure.

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    Background of Sunsilk 1954 Sunsilk first launched in the UK.

    1955 First advertisement of Sunsilk appeared on TV. 1964 Launch of Sunsilk hair spray.

    1968 Sunsilk shampoo re-packaged in PVC bottles.

    1971 Launch of Sunsilk conditioner.

    1975 Sunsilk became the biggest name in hair care.

    2003 Sunsilk glossy magazine launched in Argentina.

    2006 Social networking site Gang of Girls was introduced in India.

    Number 1 in Asia, Latin America and the Middle East

    Sales of more than 1 billion a year.

    Also sold as Elidor, Hazeline, Seda and Sedal. Awards: Holds the Guinness World Record for the most heads of

    hair washed and styled in one day.

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    Thick & Long Shampoo& Conditioner

    Hairfall SolutionShampoo & Conditioner

    Clean and FreshShampoo

    Soft & SmoothShampoo & Conditioner

    Anti-Dandruff Shampoo

    & Conditioner

    Black Shine Shampoo

    PROD

    UCT

    VARIA

    NTS

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    Contd

    Yellow Sunsilk with Bio Proteins fromVegetable Extracts

    Black Sunsilk with Melanin from Plant

    Extracts Green Sunsilk with Fruitamins Vitamins

    from fruit Extracts

    Pink Sunsilk with yoghurt proteins

    Orange Sunsilk with active nutrients fromCitrus Extracts

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    Target market of Sunsilk:

    The main target market of Sunsilk is females between

    the ages group 16-40 belonging to the lower andmiddle income classes.

    In their promotional activities, they cover the wholemarket irrespective of these classes.

    Sunsilk target itsmarket on the basis of consumer buyingbehavior, income level, and purchasing power ofpeople.

    Quantity of the product can be changed according to

    the income and purchasing power of the consumers asin case of Sunsilk 120ml and 5ml packs are alsoavailable to target low income groups.

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    THE MARKETING MIX (5Ps)PRODUCT: Sunsilk is a twenty-plus urbanite girl,

    shes charismatic, confident, approachable and ago getter.

    She portrays a perfect 21st century woman whomakes her dreams come true by sheer hardwork.

    The quality of the product is maintained throughextensive chemical testing which takes place

    after every month. Thus Sunsilk secures its place in the consumer

    mind by frequent innovations in the product andmaintaining its quality.

    PLACEMENT: Being a mass product with a marketpenetration of about 90%, Sunsilks aim is to be

    the supplier of choice for its customers The product reaches the end consumer through

    retailers, supermarkets and small stores. Its easyavailability is of the factors that determines itshigh consumer demand.

    Unilever makes sure that the product reachesevery consumer by its strong.

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    Packaging:Sunsilks approach to responsible packagingseeks to take into account environmental, social andeconomic considerations.

    Sunsilk is known for its bright, catchy colors whichinstantly attract a customer so that they can spot aSunsilk bottle from a vast array of differentshampoos. The colors also go along with the brand

    image of Sunsilk which portrays an outgoingpersonality of a young woman.

    Thee 5 key elements towards packaging are

    Remove

    Reduce

    Reuse

    Renew

    Recycle

    PRICE: Sunsilk is the market leader and it therefore sets the

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    PRICE: Sunsilk is the market leader and it therefore sets themarket price.

    The research department determines this price usually byusing focus groups, hence taking into account the

    affordability of the product by people of all incomes. Unilever makes use of a process known as demand

    planning to estimate local demand. Through this techniquethey keep track of the weekly sales and production- salesgoing out and stock coming in.

    PROMOTION: It uses a combination of channels, whichincludes product labels, websites, call centersand/or consumer leaflets to communicate openly with theconsumers.

    It has introduced new marketing guidelines limitingadvertising to children under 12 and banning the useof 'size-zero' models.

    To promote its brand, Sunsilk distributes flyers and freesachets at the road side and at malls, and door to door

    campaigning.

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    Communication Tools of Sunsilk

    Electronics Media-Electronic Media hasbeen the major factor in determining the global success of Sunsilk.In todays world where an average middle class individual has access to 30 to 40 channelsthrough the cable minimum.

    Print Media-The print media including the

    magazines, newspapers and brochure. Billboards-

    Sunsilk has nearly all of its products on the billboards when either its launching a new ad,coming up with price promotions or relaunching any product.

    Giving out free Samples- Sunsilk black

    introduction into the market made them tocreate awareness amongst the youth, theywent to schools and colleges and distributedfree samples of the products and gave outlittle brochures.

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    Consumer responses to Sunsilks

    advertisements

    33.33%

    54.55%

    12.12%

    0.00%

    10.00%

    20.00%

    30.00%

    40.00%

    50.00%

    60.00%

    Attractive Average Cheap

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    Internet Marketing Online marketing, also known as online advertisement, internet marketing

    and e-marketing.

    Online advertising uses the Internet and World Wide Web to delivermarketing messages to larger audience and attract customers

    It refers to using the power of Internet advertising to generate a responsefrom target audience. Online marketing is used by companies selling goodsand services directly to consumers.

    Internet marketing can also be broken down into more specialized areas

    such as Web marketing, email marketing and social media marketing:i. Web marketing includes e-commerce Web sites, affiliate marketing Web

    sites, promotional or informative Web sites, online advertising on searchengines, and organic search engine results via search engine optimization(SEO)

    ii. Email marketing involves both advertising and promotional marketing

    efforts via e-mail messages to current and prospective customersiii. Social media marketing involves both advertising and marketing

    (including viral marketing) efforts via social networking sites likeFacebook, Twitter, YouTube and Digg etc.

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    Different fields / areas of marketing within

    internet marketing:-

    Affiliate Marketing

    Display Advertising

    Email MarketingInteractive Advertising

    Search Engine Marketing

    Online Public Relations

    Social Media Optimization

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    Advantages of Online Marketing Internet marketing is inexpensive:

    companies can reach a wide audience fora small fraction of traditional advertising

    budgets.

    The nature of the medium allowsconsumers to research and to purchase

    products and services conveniently.

    Internet marketers also have the

    advantage of measuring statistics easilyand inexpensively; almost all aspects ofan Internet marketing campaign can betraced, measured, and tested.

    The advertisers can use a variety ofmethods, such as pay per impression, pay

    per click, pay per play, and pay peraction.

    The results of campaigns can bemeasured and tracked immediately

    because it require users to click on anadvertisement, to visit a website, and to

    perform a targeted action

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    It helps in spreading the business worldwide with

    no geographical barriers

    It is a 24X7 (365 days) open store where peopleare welcome to shop anytime from anywhere.

    It also helps in creating credibility and gain trust

    and confidence of the customers. Many peopleuse internet for the pre-purchase of products and

    services

    It also helps in updating the subscribers through a

    fast mode of e-mails. Visitors get up-to-date

    information on each visit.

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    o Higher transparency of pricing and increased price competition

    o Worldwide competition through globalization

    o Security, privacy issues

    o Easier to have outdated information on internet, update timing is acritical issue here.

    o There is a lot of competition in the market and by the time visitorreaches the product they have already gone through many links

    o It can leave the businessman feeling isolated because the world wideweb is faceless, cold and inhuman. This can leave customer feelingisolated and very inward.

    o Information Overload: There is lot of information on the world wideweb. There can be too much of good information about thecompanies. This can leave customers more confused than before.Customer might not be able to tell who to chose.

    Disadvantages of Online Marketing

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    Rich & Informative Content The site is a rich reservoir of articles on hair styling, hair

    care, fashion trends, beauty secrets, relationships andmore.

    Additionally, the website features blogs by femalecelebrities giving users insight into the lives and minds oftheir idols.

    The site is well equipped with the latest entertainmentupdates presented by MSN India.

    The website in association with Astro Life presents userstheir daily horoscope along with other astrological insights.

    An association with Monster Jobs allows the site to present

    users with hot career opportunities for them to explore.Replicating Success across Asia The success of SunsilkGang Of Girls, over the years, has given way to the launchof Gang Of Girls websites for each of a number ofcountries in South and South-East Asia.