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CASE STUDY
Submitted by:
SANJEEV KUMAR Roll No U811029 EPWP 11-12
INTRODUCTION:
Indian Home Products (P) Limited was a leading manufacturer of consumer products in India. The company was engaged in the production of soaps, detergents, cosmetics and medicinal products. IHPL had a large distribution network covering all the major towns with a sales force that service over 30,000 retail outlets all over the country. Marketing Manager was planning to add new products to the companys product line. Management felt that liquid shampoo was one product in view of its fast growth and increasing acceptance in the market. However Marketing manager not able to decide what kind of liquid shampoo to be launched.
of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. The increasing disposable income and improved standard of living in most tier II and tire III cities are spearheading the FMCG growth across the nation. The changing profile and mind set of the consumers has shifted the thought to Value for Money from Money for Value. In addition companies have been successful in reviving their presence in the semi-urban and rural markets.
Classification of Shampoo
Different categories of shampoo products available in the Indian market can be broadly classified into the following:
Dandruff
Gluten and wheat care All Natural Baby Animal Solid Jelly/Gel Paste/Cream
The biggest consumer hair problem in India was hair fall. However the fastest growing s egment at 12 to 15 percent growth year on year was the anti-dandruff segment, which was around 15 to 20 percent of the market. The key benefit segment was cosmetic (which refers to shine, strength and luster), anti-dandruff and herbal.
IHPL is having good marketing experience. Company can invest good sum of money to get the proper sample selected for survey. Good understanding of rural culture and market. Well established distribution channel.
Weakness:
Opportunity:
Significant growth opportunity in rural market. Huge untapped rural market. 75 % of the BoP (Bottom of the Pyramid) consumers live in the rural market.
Threat:
Less affordability of low income strata customers. Advertising blitzkrieg of megabrands. Lack of advertising media in the rural market. Availability of homemade Ayurvedic substitutes.
SUGGESTED STRATEGIES :
To address the established brand of shampoo 4As strategy is suggested in rural market: Awareness: IHPL has to create awareness about hair care. Due to the limited reach of mass media the marketer would have to focus more on traditional media like melas, haats or mandis Access and availability are equally important There should be deep distribution and easy availability. Availability is the biggest challenge. Affordability is the key driver in rural India because of which the sachets needs to be carefully priced. With low disposable income product needs to be affordable to the customer.
STRATEGIZING
As seen above there are several challenges for the product can face in the rural market hence they can use try devising some strategy to overcome the challenges. Some of the strategies that the company can adopt are:
Product Strategy: The brand awareness and loyalty in rural areas is quite high. Therefore, first a brand value must be created among the rural customers. Distribution Channels: The distribution strategy especially framed for rural India are
Co-operatives society Public distribution system Distribution up to feeder markets/mandi towns/hats etc.
Pricing Strategy: The per capita income of consumers in rural areas is quite low as compared to urban areas. Therefore, the price of the product in rural market should be lower than that of urban market. Also refill packs can be introduced as they reduce the price. Promotion Strategy: In rural markets, TV, radio, print media and cinema are not that popular. Therefore, new and innovative modes of promotion strategies should be adopted. One strategy could be promoting the product at village haats, melas and mandis. Also, leaflets, in local languages, describing the product could be distributed among the villagers.
CONCLUSION
The Indian hair care market is undergoing a sea change in the respects of the buying behavior and consumer preferences. The consumers are willing to experiment with new products and manufacturers can therefore take advantage of this situation and gradually venture into the market. Keeping focus of rural population not using shampoo product
as they believe that it contains harmful chemical product and most of them using the home made herbal product. My recommendation is that IHPL should launch herbal shampoo as per the data analysis consumer movement is from other NSD product to herbal product.
CONTIGENCY PLAN:
Since there is wave in favor of anti dandruff shampoo and shampoo with mineral and protein, which nurture the health of hair. In case we see challenge in herbal product, we can switch to Anti dandruff and protein shampoo.
Pandey, Mukesh (2009): Contemporary Indian cases in Marketing Raut, Sidhartha and Kashyap, Pradeep (2009): The Rural marketing Book Fast moving Consumer Goods : http://www.ciionline.org/Sectors.aspx?
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