Going to the Market

Submitted to : Dr. KAVITA KULKARNI

By: KANIKA SHARMA
RAGHAV KHANNA
DIVYA SHARMA
ASHISH BEHL
 OVERVIEW:
• When all the Deodorants brands were coming with
the same type of product, Vini cosmetics came up
with a different type of product, a liquid based
product instead of gas.
• Fogg came with a punch tagline of “without gas body
spray” and “again finished”. It came with a basic USP
of long lasting fragrance and guaranteeing 800 sprays
for a single Fogg bottle.
 EXECUTIVE SUMMARY:
The deodorant market in India is around Rs 2300 Cr and is growing at
17-18% per annum for past three years The Indian deodorant market has
more than 500 deodorant brands.

Indian fragrance Market is growing with a CAGR of 32.71% from last five years and
is projected to get more than ten times by the year 2021 due to rising personal
care, brand awareness, increasing disposable income, growing demand in middle
class people and affordable price of fragrance in the form of mass perfumes and
deodorants.

MISSION STATEMENT: To exceed the customer satisfaction extending its new

product and category line by fulfilling the personal grooming and hygiene needs of
the consumers by providing innovative quality and value for money products. The
employees will be trained with exceptional customer service and will be
empowered to make decisions based on the business philosophies.
 Financials
1) Broaden revenue max.
2) Improve Operating Efficiency
3) Improve enterprise financial
Health

Business
Customer
Process: Satisfaction
1) Product
quality Overall 1) Service
excellence
2) Strategy 2) Customer
Operations defection
efficiency

Learning & Growth

1) Hire technical talent.
2) Implement Cross Training
3) Align Personal goals.
 FUTURE PLANS
•Planning:
The plans for the first financial year is to establish a consumer base in all
the categories of our products and to look into the main objective of
satisfying the existing users. Also we would develop this extensions as a
Brand by running advertising campaigns which would be conceived by Ad
Agency with reference to the Marketing team.

• Revenue maximization: Another 8 fold revenue.

• Market share – 25% in the next 12 quarters.

• Research & Development- Increasing budgets for the operational

efficiency.
 MARKETING STRATEGY
MARKETING STRATEGY IS - CUSTOMER FOCUS WITH
OPERATIONAL EFFICIENCY AND CUSTOMER INTIMACY

STRENGHTS WEAKNESS
1. Only an urban market phenomenon
1. Has a differentiated value proposition from all its
competitors 2. High pricing reduces the target market
2. Effective advertising and branding targeting the youth 3.Controversial advertising often leads to legal issues
3. Good distribution, Promotions and campaigns for 4.Competition in market
luring customers
4. Unique selling proposition of having more spray liquid
5. Available in different variants

OPPORTUNITY THREATS
1. Deodorants sales are seasonal. Maximum sales
1. Come up with Limited Edition fragrances
happen in the summer months
2. Tie up with hotel chains and large organizations like
2. Competition from Premium Segment Deodorants like
gym chains etc.
Burberry, Body Shop
3.Income level is at a constant increase
3.Price changes,tax changes and increase in labor costs
 STP
SEGMENTATION
• Segmented the people who are willing to
try new products.
• People with sensitive skin
• Demographic
 Gender - Men(Hair gel and deodorant
cream)Women(Deodorant cream)
 Income - Middle to upper middle class
 Young audience, age 16-30
• Psychographic
 Outdoor oriented
 Fashion oriented and friendly
 TARGETING

• A body spray without gas which hence lasts longer

• Skin sensitive products, ammonia free
• Focus on further uses of a deodorant
• Different packaging for the ease of usage
• Extension in personal hygienic products with more innovation
• Line extension after proper market surveys
• High on confidence brand, with a common notion of getting more
for less
• Innovative products
• Less for more products
• Non gaseous, but liquid products
• Approachability (made for the regular youngsters)
• Keeps customers engaged with new fragrances as it offers wide variety of
deodorants.
• Each fragrance has a unique character and is marketed uniquely
• Adventurous and catchy marketing
 THE SMELL CUTURE IS EVOLVING

Deodorant Industry Overview

•Has come up very fast in the FMCG category
•Fastest growing product in the FMCG category
•FMCG growth rate: 9%
•Deodorant industry growth rate: 16%
•India is the fastest growing deodorant market in the world
• The maker of Fogg deodorants crossed Rs 500 crore in turnover in FY15.
• Fogg is leading in deodorant category(with 17.4% market share)
followed by Park Avenue(8%) and Wild Stone(6%).
 FOGG HAIR GEL
Price – Rs.60 (50ml)
Place – Urban market
Tag Line - Add Style to your hair
Packaging – The colour of gel inside
the pack will be of sky blue.
Transparent tube type and small
plastic containers.
USP – Moisture Free and Prevents
Hair fall.
FOGG DEODORANT CREAM
Price: Rs.240(50ml)
Place – Urban elite market
Tag Line – When only best will do
Packaging – Small, pot-like
container, which allows the user
to dip their fingers in and apply
the substance with hand.
USP –Ammonia Free and Lasts 3X
longer.
 PRICE OF RAW ECONOMIC
MATERIALS AND CONDITION
OTHER INPUTS

DEMAND FOR
THE PRODUCT COMPETITION

BUYERS
ETHICAL BEHAVIOR
SEASONAL CONSIDERATION OR GOVERNMENT
EFFECT CODES OF RULES AND
CONDUCT RESTRICTIONS
CHANNEL DESIGN
• Distribution network spanning 0.75mn points of sale
• 5,000 wholesalers with a 500 strong sales force.
• Margins provided to wholesalers would be between 18% and 25% and for
retailers it’ll be around 22%.

• MARKETING CHANNELS: A marketing channel is a set of practices or

activities necessary to transfer the ownership of goods, and to move
goods, from the point of production to the point of consumption and, as
such, which consists of all the institutions and all the marketing activities
in the marketing process.

DIRECT SELLING THROUGH DUAL REVERSE

SELLING INTERMEDIARIES DISTRIBUTION CHANNELS
CHANNEL OF DISTRIBUTION

Two level Channel -- (Producers  Wholesalers  Retailers Customer)

It is also known as traditional or normal channel of distribution. This channel is
useful for small producers for small means

ADVANTAGES OF THIS CHANNEL

•Cost Saving
•Time Saving
•Customer Convenience
•Customers can buy in small quantities
•Resellers help in boosting sales
Resellers provide valuable information
 THINGS TO IMPROVE DISTRIBUTION
PROCESS
1. Make it a priority. Devote resources to channel management – preferably at least
one dedicated manager whose sole responsibility is to manage those relationships
and build the marketing programs to drive revenue through the channel.
2. Develop measurements and track performance. Know who your best sales
performers are at each point in the channel. By tracking orders, volume and total
revenue at each point, you can identify and improve underperforming partners
and keep your top performers happy.
3. Communicate! Build relationships at each step of your channel. If you’re not talking
with your partners, how can you identify problems and solve them? And how will
you know whether your programs are working and how to make them better?
4. Drive revenue through the channel. Take ownership of the marketing campaigns
that will drive revenue at all levels through the channel. Your partners have to
focus on building their own customer base, not marketing just your product
(remember that you’re not the only solution they offer).
5. Avoid pricing conflicts. Establish a pricing strategy and stick to it. If channel conflict
arises because of price, attempt to resolve it ASAP.
6. Address conflicts swiftly. Since distrust and channel conflict is common, it’s
important to address problems quickly to find a solution.
 IMC
Objective: The major marketing objectives would be to successfully launch
itself from the deodorant market to further new markets, gaining market
share to establish itself as a major player in the market, and differentiating
itself to occupy a unique position.
 Communication Channels
• Television and Print
• Social media
• Word-of-mouth
• Creativity in integrating message
across all media.
• Television commercials.
• Creative slogans and tag lines
• Out-of-home advertising can trigger a campaign through innovating
the way it reaches to the customer. One example could be. They
could use rubber deo bottles as handles in metros. They could put
creative posters on the mall walls so that it subconsciously
penetrates into the customers mind.
PRIMARY DATA
 SECONDARY DATA
According to Euromonitor International data

• Deodorants current retail value sales rise by 27% to reach INR31 billion in 2015
• Deodorant pumps continues to drive sales within deodorants, registering current retail
value growth of 54% in 2015
• Average current unit prices within deodorant sprays increase by 6% in 2015
• Vini Cosmetics continues to lead deodorants in 2015, recording a value share of 17%
• Deodorants has a projected forecast period constant 2015 price value CAGR of 21%,
with sales set to reach INR78 billion by 2020

Sales of Deodorants by Category: Value 2012-2015

INR million 2012 2013 2014 2015

Deodorant Pumps 1,203.5 2,486.1 4,212.9 6,486.8

Deodorant Roll-Ons 157.1 177.8 198.1 219.8
Deodorant Sprays 13,840.4 16,806.3 19,612.4 23,781.5
Deodorant Wipes 4.1 5.0 6.1 7.4
Deodorants 15,205.1 19,475.3 24,029.5 30,495.4
 Forecast Sales of Deodorants by Category: Value 2016-2020

INR million 2016 2017 2018 2019 2020

Deodorant Pumps 9,368.0 13,374.7 18,400.7 24,876.7 33,430.6

Deodorant Roll-Ons 238.5 258.8 281.8 307.1 335.2
Deodorant Sprays 27,027.5 30,834.4 34,838.0 39,448.3 44,548.6
Deodorant Wipes 8.4 9.4 10.5 11.6 12.8
Deodorants 36,642.5 44,477.4 53,531.0 64,643.7 78,327.2

According to the survey

 16.6 17.4

12.4

7.9

MARKET SHARE FOGG

20%
 NOVELTIES
• ALCOHOL FREE

• UNDERARM WHITENING

• DIFFERENT SKU’S (TO CARRY FOR WORK ETC.)

• ROLL ONS

• ANTI PERSPIRANTS

• TALCUM POWDERS

• MORE BTL ACTIVITES

• SERUM
RECOMMENDATIONS
• These brands should have the potential to lure more target
customers
• Need of strong market recognition which can be built only through
strong brand and product promotion.
• Preparation to fight against the competitors.
• They should enhance distribution channels
• Increase advertisements, and try to leverage their product’s
fragrance which is different from the earlier series of ‘Freshness
deodorant’.
• To maximize market share, we’ll have to maximize revenue by
acquiring either new customers or by hijacking your competitor’s
customers.
• Changing our target segment would not be feasible as we’ve
already created a deep brand image within the mind of the
customers.
• Rural FMCG market. (Growth)
• Smaller SKUs priced at around Rs. 99/-.