Report on

Ayur Shampoo
 FMCG Industry Overview

FMCG refers to consumers non durable goods required for daily or frequent use. Typically, a
consumer buys these goods at least once a month. Individual products are of small value but all
FMCG products put together account for a significant part of consumer’s budget. Many of these
products are perishable. Consumers spend little time on purchase decision and they rarely look for
technical specification. Meet the demand of the entire cross section of population. E.g.:
shampoos, soaps etc. Hair shampoos are targeted at upper middle class, middle class & house
wives, teenagers etc.

TYPES OF SHAMPOOS:
shampoo market is segmented on benefit platform: Cosmetic ( shine ,health ,strength;)
Anti dandruff
Herbal.

SHAMPOO MARKET SIZE 970 crores.

SHAMPOO AWARENESS Urban 90%,

Rural 70%
SHAMPOO USAGE
Per capita consumption
of shampoo in India 13ml.

GROWTH IN SHAMPOO MARKET

Average growth more than 20%

Expected average growth 25%
HAIR CARE FACTS

1. The frequency of shampoo usage is very low. Most consumers use shampoo only
once or twice in a week. In many cases these products are used on special
occasions such as weddings , parties etc.

2. Some consumers use shampoo only to address a specific problem such as a dandruff
or when they need to condition their hair.

3. Use of conditioners is not common. It is restricted to the super premium segment or

those who are very involved with their hair care.

4. Some consumers use natural conditioning agents such as henna.

5. About 50% of consumers use ordinary toilet soaps to wash their hair.

6. Brand loyaty is not strong.

7. Southern market is predominantly a sachet market, counting for 70% of sachet

volumes.

8. Shampoo bottles are more popular in north. Local brands such as ayur have strong
equities and these products being low priced dilute sachets USP of low price.

Top herbal brands, Ayur, Dabur vatika , Nyle, Himalaya.

 MARKET POSITION OF
HERBAL SHAMPOO BRANDS

BRANDS MARKET POSITION

NYLE 1

AYUR 2

HIMALAYA 3

AYUSH 4

DABUR VATIKA 5
 HISTORY

Ayur as a Company was formed in the year 1985. It was making one single product Hair
Removing Wax initially. Buoyed by its success & laden with formulae of many preparations, it
introduced Herbal Hair & Skin Care Products in the market. Soon it carved its own niche in the
market, where there were only chemicals products available to the customer. Today, Ayur has
more than 55 variants in Hair, Skin & Face Care Products.
Today, the Ayur Brand enjoys a high volume of sales in domestic, as well as in foreign market.
The products are in high demand in countries like USA, UK, Mauritius, Canada, Russia, South
East Asia & UAE.

Introduction

Ayur caters to the masses satisfying a need with a reasonably priced quality product which ensures
value for money. Ayur is not fashionable but it is usable."The key to my success", says Mr.
Dilvinder Singh Narang, the MD of Ayur, "lies in its ensuring that the customer gets what he pays
for. The retailer is serviced properly with no false promises and that the business is carried out on
the principal ethics of quality, right price and fairness in dealings". His key to success also lies in
his treating his employees as his partners in business so that the watch word of work ethics is
driven by a sense of proprietory- the final word in ensuring employees motivation.

The product Mix is evolving to cater to the diversity in the Indian Market- a reflection of the
diversity in Indian ethos. AYUR is adding a whole new range of products to its already vast
repertoire of products.

We at Ayur ensures, always, that the consumer gets his value from the product. Target this year is
to reach a turnover of Rs 100crore. AYUR has a dealer network of about 1 Lac Dealers throughout
the length and breadth of the country and the plan is to increased to about 700 from the present
strength of about 500. The Distributors are being serviced by a network of 23 C/Fs and 4 Super
Stockiest.

The message that AYUR is conveying to the Indian Companies reeling under the on slaughter of
the multinationals is that if you believe in your ethics, remain fast to your principals and follow the
age old dictum of treating your customer as your God- you will continue to succeed come what
may. AYUR-truly a company seeped in our Indian way is the right flag bearer of our heritage-thus
helping to carry it on.

People behind the Ayur Empire are 3 ambitious brothers. It is their hard work, perseverance &
total dedication towards achieving their goal of being 'the tops' in their profession, that has shown
them this success they enjoy today. The Company's mission & main aim is to reach maximum
number of people, with a high quality & economically very affordable range of herbal products.
The Company is aspiring to see its products in every household - in India definitely, but also
abroad.

Ayur products

Skin care

Ayur ALL PURPOSE CREAM

Ayur ALMOND NOURISHING CREAM
Ayur HERBAL MASSAGE CREAM WITH ALOE VERA
Ayur HERBAL COLD CREAM WITH ALOE VERA
Ayur PETROLEUM JELLY
Ayur HERBAL SKIN TONER WITH ALOE VERA

Hair care

Ayur AMLA SHIKAKAI WITH REETHA SHAMPOO

Ayur COCONUT SHAMPOO
Ayur HENNA TULSI SHAMPOO
Ayur ROSEMARY SHAMPOO
Ayur SOYA PROTEIN SHAMPOO
Ayur LEMON SHAMPOO
Ayur AMLA SHIKAKAI WITH BRAHMI OIL
Ayur HAIR TREATMENT OIL
Ayur NATURAL HAIR WASH WITH AMLA & SHIKAKAI
 Ayur HAIR STYLING GEL

Body care

Ayur TULSIEEM SOAP

Ayur HERBAL KAJAL
Ayur HOT WAX
Ayur COLD WAX
Ayur BEST'O'CREAM
Ayur HENNA POWDER

METHODOLOGY
To prepare this report we have adopted the following approach :-

We chose to study the consumer behavior for Ayur Shampoo. We studied the brand on the
different factors starting with the parent company RDB TRADERS PVT. ltd. its background and
various products it offers to the market. We tried to collect the sales figure of the shampoo in
different markets, the brand perception and the satisfaction which the consumer derived.

Methods of preparation of data

We collected the information from primary as well as secondary sources.

Primary sources

Target audience: market survey was conducted at various places in Gurgaon like sector14,
sector23, Sadar bazaar, DLF market etc. the reasons why we chose these different markets is to
obtain a representative response from people belonging to a cross section of society. We
interviewed the shop owners and users of the shampoo.

Sample size
we surveyed 50 retailers and 50 consumers.

Secondary sources

Secondary sources were online information, journals and magazines. lastly we have done the
analysis on the basis of our survey. We have made use of the analytical tools like pie charts, graphs
etc. which helped us in getting better perspective of consumer perception, buying behavior,
satisfaction and other things we required for our project.

ANALYSIS

1 Have you ever tried Ayur shampoo?

YES NO
 23%

Yes
No
77%

2 Will you use it further?

Yes No
 1 8%

Y es
No

82%

3 In which category do you place Ayur shampoo?

Chemically concentrated Herbal

Medicated
 6% 4%
Herbal
Chemical
Medicated
90%

4 What do look for in a shampoo?

Brand Price

Packaging Fragrance
 12%
10% B ra n d
46%
P ric e
P a c k a g in g
F ra g ra n c e
32%

5 How do you perceive Ayur as a brand?

Good,effective Bad,effective

Good,ineffective Bad,ineffective
 8%
G ood,E ffec tive
30%
B ad,E ffec tive
G ood,Ineffec tive
59%
B ad,Ineffec tive
3%

6 The packaging of Ayur shampoo?

Attractive Satisfactory

Needs Improvement
 2% 13%

S atis fac tory

N eeds Im provem ent
A ttrac tive

85%

7 Have you ever seen Ayur advertisement promotions?

 Yes No

11%

Y es
No

89%

8 How satisfied are you with advertisement strategies of Ayur?

Less Moderately

Highly
 2%
20 %

Lo w
M od e rately
H ig h

7 8%

9. How will you rate the advertisements ?

Bad Average Good

 8%
16%
Bad
Average
Good

76%

10. Rate its affordability

Cheap Reasonable Expensive

 10% 2%

Cheap
R e a s o n a b le
E x p e n s ive

88%

Findings from consumer survey

Consumer Perception

Ayur’s positioning in the minds of consumer is very clear as our survey reveals 90% of the sample
is aware that Ayur is a Herbal Product brand.
Brand name of the shampoo has lot of influence on the buying decision of the customers as per the
survey. However Ayur as a brand is not thought of very highly by its consumers, but its shampoo
is considered very effective.
Something significant was noticed, that consumers are not satisfied with its packaging and find the
shampoo bottles unattractive. This is the area where Ayur has to improve in order to fetch more
consumers.

Advertising Strategies

Shocking results from the survey suggests that Ayur not only needs to invest more in advertising
promotions but also needs to improve their quality. Their T.V and radio advertisements or
hoardings are not eye catching which reduces the brand awareness.

Ayur vs its competitors

Packaging, sales promotion schemes, aggressive advertisements, celebrity endorsements etc are
some of the marketing strategies where Ayur lags far behind which is costing it in the form of low
brand awareness and consciousness. What is more noticeable is the fact that Ayur has positioned
its products in a very unprofessional way whereas its competitors although using inferior inputs:
but by using right STP makes their product more attractive and thus drives the consumers to their
shops.

Findings of the Retailer survey

1. 70% of the southern India use sachets. Thus, it constitutes a big market. But Ayur is
not available in sachets

2. Customer loyalty is there but the product is creating new customers at a very snail
rate.

3. People tend to change their shampoo brands frequently hence the whole shampoo
industry faces the problem of customer loyalty.

4. Ayur sales are majorly through its henna and shikaakayi shampoos. Its other flavors
like rose, lemon and coconut contribute little shares in their sales.

5. Ayur has got strong network of distribution. From the small kiranas to the big retail
houses, its availability is not a concern. This shows that company believes that if
the consumer sees the product in the store then he will buy it.Also the shampoos
were available at most of the medical stores.

SUGGESTIONS

ADVERTISEMENT AND PROMOTIONS

Ayur is going out of site and there is risk of loosing mind share also. The need of the hour in the
F.M.C.G industry is to keep the consumers updated with the product. With so many shampoos in
the market, it is necessary to carve your own niche and ayur is lacking here. Hence to keep the
customers literate about the product, they need to undertake adequate marketing and promotional
activities.
our suggestions for the advertising to be undertaken are:-

Ayur had its television advertisements but they were not appealing to the masses. Their
advertisements were more inclined towards targeting women and gave a blind eye towards the
bigger segment of men.

In addition, the advertisements were outdated and formed a overall dull brand image of the
product. Most of the youth surveyed were ashamed of using the shampoo.

Now to do away with the above anomalies, the company needs to advertise more frequently
through television commercials, print media and outdoor advertising. The advertising must be able
to influence the youth and change the brand image.

IMPROVING THE PACKAGING

In the FMCG industry the saying works “ jo dikhtaa hai woh biktaa hai”. Ayur needs to improve its
look – a complete makeover of its physical appearance. Since in the shampoo market, the buyer’s
decision is largely affected by the appearance of the product, hence a trendy packaging can help in
attracting new users.

MARKETING THROUGH DISTRIBUTORS AND THE RETAILERS

Company should increase the retailers and distributors profit margin so that they concentrate
towards selling the product and promoting them in their stores.
MAKEOVER OF THE AYUR LOGO

The logo of Ayur gives a dowdy look, it needs to be uplifted with better design and look.

PROMOTING THEIR OTHER VARIANTS OF SHAMPOO

Ayurs shampoo sales are concentrated on henna and shikaakayi. They should work toward making
masses aware of the various variants.

TAPPING THE RURAL MARKET

The major sales of Ayur are from the urban sector but it is the rural people which are more inclined
towards using herbal products for hair care. Ayur needs to focus on this section of market, which
has more expected growth rate than the urban market. Therefore, concentration on the rural
markets by Ayur is necessary, and this can realize impressive revenues.

INTRODUCING SACHET

Since 70% of the consumers prefer buying shampoo in sachets and ayur is not available in the
sachets so it is highly recommended that they should come up with the sachets so that they can
fullfil the needs of different types of buyers.

UNEXPLORED MARKET

On the basis of our market survey we found that a large percentage of buyers buy their daily use
items from csd canteens in gurgaon so it is recommended that Ayur should consider it as a possible
market to increase their sales on the regional basis.