Launching A New Shampoo 4x2c4t

Company

LOGO

Introduction  Suresh Venkataraman a successful marketer in Southern part of India.  He was Fascinated by the power of consumer products in “ Rural Market”.  He decided to launch a new cosmetic product with a brand named “Super Shampoo”  He wanted to make this brand successful but with limited fund.

FMCG Facts In India Household Care

Laundry, Soaps & detergents, floor cleaners etc.

Personal Care

Oral care(tooth paste/tooth powder & tooth brushes), Hair Care(hair oil, Shampoo)etc.

Food & Beverages Cereals, Bakery products, tea, coffee, dairy products.

Source: www.ibef.org

Bharat Vs India Emerging INDIA  Mission 101.1  Target low to reach on top.  Still deprived of luxury goods.  First “BHARAT” then “INDIA”.  Want less for more.

Income Per Year

Households (in Millions)

Less than Rs 90,000

101.1

Rs 90,000-Rs 200,000

91.3

Rs 200,000-Rs Rs 500,000

10.8

Rs 500,000-Rs 1,000,000

2.4

More than Rs 1,000,000

1.2

Source: "The Marketing Whitebook," BusinessWorld, 2007-08

Power of “S”  Invention of sachets “revolutionized “ the FMCG market.  It opened B2C untapped market in rural areas.  Unaffordable products became affordable for common people.  Luxury comes in “Sachets”.  Reduced overall cost.

Market Leader In Hair Care Clinic All Clear 3%

Pantene 1%

Brands Used

Other 1%

Sunsilk 3%

Clinic Plus 39%

Chik 31%

Head & Shoulder 22%

Affecting Factors POLITICAL 1. Transportation and infrastructure development in rural areas helps in distribution network.

ECONOMICAL 1. The FMCG sector is a 4th largest sector of Indian

2. SEZ policies in rural areas

PEST SOCIAL 1. Rural employment 2. Volume-driven growth in rural market. 3. Major young population can increase revenue .

TECHNOLOGICAL 1. Technology has been simplified and available in the industry. 2. Foreign players helps in high technological development.

Analysis WEAKNESS

STRENGHTS 1. Low operational costs 2. Established distribution networks in both urban and rural areas. 3. Presence of well-known brands in FMCG sector.

1. Lower scope of investing in technology and achieving economies of scale. 2. Low exports levels 3. Counterfeit Products.

SWOT OPPORTUNITIES 1. Untapped rural market 2. Rising income levels 3. Large domestic market-. 4. High consumer goods spending

THREATS 1. Slowdown in rural demand 2. Tax and regulatory structure

Analysis of 4P’s

Product

Price

Place

Promotion

Packaging

WHY SUPER Shampoo? Product  Super shampoo will be based on “Shikakai”.  Characteristics of producing more foam.  Jasmine Essence

Price  1Rs shampoo to target lower income group.  “More for Less” Strategy.  50% more for 1Rs.  Competitive Price comparing with other brands.

Continue….. Place  Untapped “rural market”.  160million households.  Major player of economic growth.  Business of around US$ 425 million.

Promotion  “Super” the name itself.  Retailers are the biggest promoters  Following “Word-OfMouth” Strategy.  Indirect ment by others.

5th P- Packaging  Costly bottles.  Help in reducing cost.  Attractive Packaging.  Easy recognition.  Easy to carry & transport.

Conclusion

Success Super Shampoo Sachet

“Value for Money” proposition ed by distribution penetration “Word-of Mouth” publicity. More for less strategy. “Win-Win” situation.

Thank You