Soap industry in India

Soap perseverance in IndiaThe inter arm point that I claim been given by the faculty is peach tree slash. I founder named it as gleaming.Executive SummaryThe goop industry in India is at the broad(prenominal) growth rate and umteen late entrants be planning to effectuate their point of intersection in this stratum. The over each whip industry is worth at 60000 crores. contemplate is a multinational connection. It is a new entrant in the market and lays at unisex genders. I atomed chance ons market consort to geographical holes. It that variousiates these segments into Socio Economic Cluster (SEC) which takes into account the criteria of education and barter which ultimately measures the financial ability of consumers. The cluster is divided into five separate starting from A to E. hang manoeuvers the urban and sub urban speeding middle con coordinateation and middle class segment of the population, who falls infra A to C of SEC.Tactical trade shafts , 4Ps, argon extensively employ by the caller-up to market pass. Though come upon is produced in India, Unilever India agrees the comparable standard all nearly the globe. The ingathering is available in half a dozen different fragrances under ternion different sizes. Since the drive for salmon pink soap market is to a great extent oligopolistic, variations in footing cut to price war which can eventually break d testify the guilds market persona. Thus Unilever can non picture a better price than its competitors. But the price is cheap by around(prenominal) of the race. Shine leave outsource its dispersal channel to third party distributors which allow them to appoint Shine in massive bulks meating to around ten cardinal pieces. It undertakes the spectacularst promotional activities in the mantrap soap industry.The beauty soap industry has a few major producers of which Unilever holds market sh ar of just about less than 50%. Other competing shuffles desire Tibbet, Aromatic and Keya give the sack started to rent a unfaltering consumer base, but Shines crossway features distribution and promotional activities impart create postgraduate stigma loyalty for which it stir up out be the market unfolder shortly after developing its IMC plan. Shine, with the aid of its heavy promotional activities, has been able to riddle the market. But the other producers in the industry atomic fare 18 posing a threat towards Shines market share as they piddle move towards the rural masses of the population. Therefore, I energize undertaken many further beats such as moving towards the rural and/or poorer segment attract children (by making a special output for kids) and other advance(a) promotional activities to retain its command in the industry.Industry analysisThe mass soaps market is estimated at 530,000 tpa including small imports. The market is littered over with several, take national and global soft touchs and a immen se number of small brands, which have limited markets. The hot and premium brands include Lifebuoy, Lux, Cinthol, Liril, Rexona, and Nirma. stool soaps, despite their divergent brands, are not well differentiated by the consumers. It is, therefore, not clear if it is the brand loyalty or experimentation lured by in high spirits script media hunt down, which sustain them. A consequence is that the market is fragmented. It is obvious that this must lead to a highly competitive market. Toilet soap, once only an urban phenomenon, has now penetrated practically all celestial orbits including remote rural areas. The incremental demand flows from population add and rise in usage norm impacted as it is by a greater concern for hygiene. Increased gross sales revenues would too expand from up gradation of fiber or per social unit value.As the market is constituted now, it can be divided into tetrad price segments premium, popular, discount and economy soaps. Premium soaps are estimated to have a market volume of about 80,000 tonnes. This translates into a share of about 14 to 15%.Soaps form the largest pie of the FMCG Market with bathing toilet soaps accounting for around 30% of the soap market, by value. Currently, the soap industry is divided into tercet segments namely Premium, Popular and Economy/ Sub popular.To fight competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer Products Ltd (GCPL) and Wipro Consumer occupy Lighting are now d raw(prenominal)ing up fresh granulose plans. And the accent is clearly on innovation to gain perspicacity share as well as market share in this overcrowded category. study PlayersHindustan Unilever Ltd.With over seven brands LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE and PEARS has 54.3% share of the overall soap market. HUL is Indias largest ready Moving Consumer Goods Company its journey began 75 years ago, in 1933, when the come with was first incorporated. The conjunction stirring the l ives of 2 out of three Indians with over 20 distinct categories in Home personal Care Products and Foods Beverages and in like manner one of the countrys largest exporters. HULs brands includes Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair Lovely, Ponds, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Walls are habitation names cross appearances the country. They are manufactured in over 40 factories across India. In the Rs7,000 crore by sales soap market, HULs market share has dropped to 54.3% in March 2008 from 55.9% in March 2006.Godrej Consumer ProductsGCPL, Indias assist largest soap churchman after Hindustan Unilever Ltd, has nearly 9.2% market share. With 11% market share in value terms, it is the second largest soap considerr after Hindustan Unilever. Godrej Consumer Products (GCPL) is a major player in the Indian FMCG market with leadership in personal, hair, ho enforcehold and fabric care segments. The company is one amo ng the largest marketer of toilet soaps in the country with leading brands such as CINTHOL, FAIRGLOW, NIKHAR, ALLCARE. Fairglow brand, Indias first Fairness soap, has created merchandising history as one of the near successful innovations. It is also the favored supplier for contract manufacturing of toilet soaps, rough of which are the most well-know(a) brands in the country.WiproIn the Indian market, Wipro is a leader in providing IT solutions and serve for the corporate segment in India. Wipro also has a profitable social movement in niche market segments of infrastructure engineering, and consumer harvest-tides lighting.Wipro has made a large acquisition in the Consumer Care business. The presence of Wipro in the toilet soap industry can be seen through with(predicate) their brands such as SANTOOR and CHANDRIKA. With industry leading organic growth rates and the acquisition, Consumer care business has authoriseed a Revenue run rate in excess of $100 million per quarte r.Procter Gamble IndiaProcter Gamble India (PGHHCL) was incorporated in 1964 after Procter Gamble, US, acquired Richardson Vicks, US. Formerly known as Richardson Hindustan (the Indian Subsidiary), it was later named as PG. It changed its name again in 1998 to Procter Gamble Hygiene and Health Care in order to recoil the nature and character of the business of the company. During 2004-05 the company has increased its installed capacity of Soaps Detergents and Toilet Preparations etc by 36500 Tonnes and 263 Tonnes respectively. With this expansion the total installed capacity of Soaps Detergents and Toilet Preparations etc has increased to 108500 Tonnes and 5875 Tonnes respectively.Nirma compound as a private limited company, Nirma was converted into a deemed man company and then to a public limited one in Nov.93. Nirma has a leadership presence in Detergents, Soaps and Personal Care Products. To have a greater control on the quality and price of its raw materials, Nirma unde rtook backward integration into manufacture of Industrial Products exchangeable Soda Ash, analogue Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric Acid. During 1996-97, Nilnita Chemicals, Nirma Detergents, Nirma Soaps and Detergents, and shibah Soaps and Detergents were amalgamated with the company. The company created Nirma Consumer Care Ltd. a wholly owned hyponym on 22nd Aug.97, which is the sole licensee of the brand name Nirma within India. Nirma enjoys a share of 6.74% in soaps.ITCITC, the countrys largest cigarette maker, entered the segment ultimately year and has made a strong headway in a short time. According to AC Nielsen, its share has grown to 1.75% in only when five months despite the fact that many of its brands such as Superia, Fiama Di Wills and Vivel are currently sold in only six states.Competitor analysisSantoorSantoor is the flagship brand in the Wipro Consumer Care Lighting stable and the 2nd largest brand of soap in India in the popular segment of the category. The brand enjoys two decades of trust since its launch in 1986 and has grown to be counted amongst the top brands in the rural area in an intensively competitive market. Millions of women across the country have discovered the secret of younger looking un occurrence with Santoor. It is a really funny soap that combines the niceness of natural ingredients Sandal, Turmeric and natural disrobe woollyeners. Sandal provides a cooling and soothing effect that softens scrape, enchantment turmeric controls composition of skin darkening pigments like melanin, to give skin a glad glow. Natural Skin Softeners make skin soft and supple. The end result, skin that is so healthy and beautiful, it lies about your actual age.Amongst the first brands in the Country to launch an send offering with the twin ingredient pull ins of Sandal and Turmeric, Santoor has over the years moved from a purely natural ingredient based compendium, to one of the most preferred beauty soaps of the day. Today, Santoor is one of the fastest growing soap brands in India. Santoor is available in three variants Santoor (Sandal Turmeric), Santoor White (Sandal Almond milk) and Santoor Chandan which is a premium soap manufactured with extracts of Sandalwood oil a favourite of discerning consumers.CintholCinthol the popular and much-loved brand of Godrej Consumer Products Limited (GCPL) have been a favourite of people for many years. All different soaps in its go are having feel-fresh fragrance and high TFM index. Cinthols footslog covers an economic Lime-fresh, the medium deo-soaps (spice, lime,cologne and the new sport) and a slightly pricey Cinthol-Original. For decades, Cinthol-Original is one of the outperform soaps made in India. It had a simple red-cover which attracts none But was still able to sustain itself in the market . Godrej has now launched the improved Cinthol range. Cinthol now offers a deo-range of soaps, talc and deo-sprays in three exciting fragrances Classic, Cologne and Sport in a stylish new packaging. It also offers Cinthol fresh soap and Cinthol Regular soap with new exciting packaging. The eye-catching and vibrant packaging symbolizes a sense of adventure, savour and action. The new Cinthol range brings 24-Hour Confidence through Active Deo Formula, which controls body odour, mesomorphic DryShield that absorbs sweat, UltraScent Technology for long lasting fragrance and Freshness that revitalises you 247.The new range depart be available across the country at fresh retail and other outlets and leave be supported by high-impact publicise on television, print, out-door, on-line and radio.Vivel and SuperiaThe Vivel Di Wills range is available in two variants. Its unique carton pack has been developed by ITCs design team to provide a novel consumer experience. Vivel Di Wills Sheer Radiance is enriched with Olive oil, to provide skin lustre to make it radiant. Vivel Di Wills Sheer Crme is enriched with Shea Butter, to moisturize skin to make it soft and supple.The Vivel range of soaps is available in four variants-1) Vivel Young illumination is enriched with Vitamin E and Fruit Infusions which help in providing youthful glow to the skin.2) Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel Vivel beautifully soft.3) Vivel Sandal Sparkle is enriched with Sandalwood Oil and Active Clay which helps in providing clear skin.IMC PLANNINGMissionShines foreign mission is to add Vitality to life. They meet everyday needs for nutrition hygiene and personal care with brands that help people feel good, look good and get more than out of life. Their deep roots in local anesthetic cultures and markets around the world give them strong dealingship with consumers and are the infrastructure for their future growth. A key requirement is building in the quality expectations of their consumers into their harvest-tides.PRODUCT PROFILEShine soap is i ntroduced as bathroom soap. Shine in step with the changing trends and evolving beauty needs of the consumers, offers an exciting range of soaps and Body Washes with unique elements to make bathing time more pleasurable. angiotensin converting enzyme can choose from a range of skincare benefits like firming, paleness and moisturising.Shine stands for the promise of beauty and glamour as one of Indias most trusted personal care brands. Shine offers a range of soaps in different colours and world class fragrances. Shine is a beauty soap of film stars. Shine recognized the need for a get message about beauty that would resonate with women of today.Product Category, Market cleavage, channelize merchandise and PositioningThis section describes the category of the selected product. The chapter is organized into four sections. segmentation 1 states under which category the product falls. Section 2 describes how Shine differentiates the population and categorizes them into different se gments. Section 3 analyzes which segment the company targets and why they target that specific segment. Finally section 4 describes the process through which the company tries to capture a place in the buyers mind i.e. the product positioning method.Product CategoryShine falls under the category of toiletry product as a beauty soap.Market SegmentationShine segments their market fit in to geographical areas. The population of the country is divide into three parts which are urban, sub urban and rural area consumers. Though Shine is the highest swaping beauty soap in Bangladesh, it does not go for traditional mass marketing. Moreover as a beauty soap LUX does not even segment its market according to gender.Target MarketShine is not a highly expensive but an affordable product. That is why the company targets urban and sub urban upper middle and middle class people who are the second highest population of segment of the country. From the segmentation of customer according to SEC the y target category A, B and C, because they are assumed to be financially well-to-do and can afford to buy Shine.Product PositioningShine obtained a good position in the buyersmind through better product attributes, price and quality, offering the product in a different way than the competitors do. The company offers improved quality of products in the industry at an affordable price with high branding, which ultimately helps to position the product in the buyersmind as the best quality beauty soap.The market share of the company in the beauty soap industry is somewhere around 43%.Since in the beauty soap industry all products are of self homogeneous(prenominal) price Unilever cannot provide its consumers with better price but it is in a great position in reference with its packaging, fragrances and product designing.Tactical Marketing ToolsThis chapter describes the Way Company go out use the tactical marketing tools for marketing Shine in India. The chapter comprises of four se ctions. This section includes a table that shows the location of the companys warehouses all around the country. Finally a section discusses the promotional activities that the company undertakes for Shine.ProductShine is an internationally renowned beauty soap brand. Though manufactured in India for the local market by Unilever India ltd, as an international brand, it maintains an international quality for the product. Formula given by Research and Development departments in foreign countries, Shine is produced in India from merchandise raw materials like sodium soap, glycerol and different extracts according to flavours, climax from Unilever plants situated abroad.Shine is offered in India in six different flavours which are Shine Energizing Honey, Shine capitalen Glow, Shine Nature Pure, Shine Orchid Touch, Shine Almond Delight and Shine Aqua Sparkle. victorious into account the convenience of its customers, the company manufactures all variants of Shine in three different siz es, 40gm, 80gm and 120gm.PriceThough Shine gives its customers a lot in terms of the product itself, it cannot provide a better pricing. This is due to some constraints in the beauty soap industry. Beauty soap is a product with a vulnerable demand in India. A change in price has a high risk of creating price war among the rivals which will eventually cause a loss of profit. Its prices are almost satisfactory to its competitor. Shine price with its major competitor. Company carries out research on competitorsprice and brand loyalty when it feels extreme necessity of changing price. The brand loyalty test is an exploratory research which is known as grease Health Check- Up (BHCU).PlaceShine has a vast distribution channel all over the country as its sales reach more than 10 million pieces a year. The company has six huge warehouses, one in each division of India, where the product goes after they are manufactured at Uttaranchal factory.The company will not use its own fleet of trans port for distributing its product. However, it will outsource its distribution process to miscellaneous third party distributors. These distributors will then supply the product all over India to a huge number of retailers. Even though Shine targets the urban and sub urban middle and upper middle class people they are distributing their products all over India because of a recent increase in demand of its product to all segments of the population.PromotionShine will undertake a huge promotional activity to promote itself. I will spend almost 20% to 25% of its Net topic from Sales (NPC) of Shine for promotional activities.It will include certain annual promotional campaigns like Shine Channel i Superstar and Shine Channel i Annual Cinema Awards, which will made the product a part of the glamour world. Since our Indian audiences are emotionally attached to its root culture and gets easily attached or relate themselves to celebrities, so I will promote Shine by endorsing famous boll ywood celebrities like Hema Malini, Priyanka Chopra, Kareena Kapoor, Aishwarya Rai Bachan etc. I will not promote Shine in India for the beauty conscious females only, but it will also be promoted as the brand for males by including world famous male celebrity Shahrukh caravansary for the publicise campaign.Shine will spend a huge amount of money for promotion through TV commercials, newspaper advertisements and billboards. Moreover I will also undertake small promotional campaigns at different colleges, universities and recreational parks with winners of its Zonal Beauty Contests.INTEGRATED MARKETING confabulationA) Sales PromotionSales promotion, a key ingredient in marketing campaigns, consists of a collection of incentive tools, mostly short term, knowing to stimulate quicker or greater purchase of particular products or services by consumers or the trade. Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.Prominent Promotional schemes that will be employ by Shine1. Sales Promotion to ConsumersConsumers are extremely decomposable human beings, motivated by several factors. Hence it is important to realise a consumers motivation given a certain product and product category. Consumer promotions are those that are directed to the consumer. The objective of consumer promotions is to offer the consumer some added benefit to entice him to buy the product. There are several possible tools that I will use to promote ShineSampling As my product is new to the market, so this promotional tool is generally used when one is introducing a product for the first time. In this case, a small measurement of the product will be given as a sample. These samples will be distributed either at the residence of the consumer or even at the retail outlet provided by a condition.Quantity Deals Here the company will offer more quantity of the same product for the same price or a marginally increased price. For example, most of the FMCG compan ies passel 3 or 4 soaps in a pack priced at the cost of 3 soaps. The purpose is to induce the consumer to buy more and more products at less cost. This will benefit two the customers and company. Customers can have 4 soaps at the cost of 3 whereas company can slightly decrease their profit but after selling their products at large quantity their profit will rise (Economies of Sales).In-Product gift In this case the gift item is attached to the product from outside. E.g. once Lux presented 30 gm gold each to the first three winners of the Lux Gold Star offer from Delhi. According to the promotional offer that Lux unveil in October 2000, a consumer finding a 22-carat gold coin in his or her soap bar got an opportunity to win an additional 30 gm gold. The first 10 callers every week got a 30 gm gold each. This offer helped lux to increase its sales rapidly. I will also use this type of tool to promote my product and hence increase the sales of SHINE.2. Sales promotion to TradersTrade promotions are those that a company runs to elicit a better and quicker result from the trade. Some of the trade promotional tools that I will be apply areOn-Consignment Sales This tool is normally used by companies that are new entrants and are not known in the marketplace. Here companies pass on traders to stock their products on an on-consignment basis and pay only when the product moves off the shelves. My company will use this tool to encourage the new retailers to sell my product and pay after the product moves off the shelves.Dealer gifts Personal motivation is very necessary in order to boost the sales because if the retailer is happy that the company cares for him, so the retailer will deform hard to sell the product of the company by telling the customers that it is the best product that will benefit them. I will use this tool by giving dealers/retailers gifts on the occasions of EID, Diwali, New Year so that they get more loyal to our product and maintain good relati ons with them.Point-of-sale Material Traders will be given attractive point-of-sale material for displaying Shine. We will provide shelf stickers, streamers, attractive stands to hold the soap etc.Online contestsExample ShinePlease enter your name and netmail to play the game.Play the supercharged version of the hit puzzle game, Bejeweled. take a shit rows of 3 or more identical stones and you could win a charge for two to a five-star Resort in Goa.B) AdvertisementsThere are number of sources available for passing the product message. These are as follows1) Television2) out-of-door (Billboards)3) Magazines4) Newspapers5) InternetMy company will use various advertising appeal to attract customers. These will include affective emotional, seductive, comparative appeals in the videos, newspapers and on the internet. The advertisements will be recognized by famous bollywood celebrities like Priyanka chopra, Aishwarya rai, Asin etc. to target the youth and mid age group. However ther e will be also a male advertisement where Shahrukh khan may endorse the Shine. advertisement CampaignThe advertisements will run in a campaign where a complete program of advertisements will be aired by parts from time to time. The first base of the advertising campaign will be advertising strategy, where a plan will be devised to maintain a viable fit between my organizations objectives and resources and changing market opportunities. Advertising strategy is the message that a company gives to solve a communication-related problem. My companys advertising strategy is to create awareness and brand equity of the shine. The next step is to create a Big idea where an advertiser selects an idea for communicating the strategic message in a imaginative way. It is a cerebrate between strategy and creative execution. It may be also called a central theme. The central theme of my advertising campaign will be how men are magnetically attracted towards women utilise Shine soap. Once the ki ng-size idea is finalized, then it follows its creative execution. Creative execution deals with the physical form of an advertisement- story, script, copy, art, music, overall production. The creative execution of Shines ad will include creative tagline, elements of wit and humour, role of glamorous actress and models using shine soap while bathing and then the media will be asking them what is their beautys secret and like that.Choice of Strategic ApproachesUnique Selling Proposition A brand may have a true and distinctive competitive proceeds called the Unique Selling Proposition (USP). The USP is a distinctive advantage that is both valuable to the brands customers and is unexploited by its competitors. The USP of Shine will be a guaranteed effect of fairness of the skin, and its ingredients that are made of no chemicals.C) Creative public presentation on RadioThe most creative advertisement can be made on Radio, if its script is written creatively. The power of radio in count ry like India is much more than TV. We always notice that during cricket matches, a number of companies promote their products on radio, like operate of the tattle which a person might think of Hawkins Pressure Cooker. It is because Hawkins advertisement on radio has been created well that is why people still think about the sound of Hawkins. Another example is of jingle of titan, which can be easily recalled by a person who have heard it on radio. In the same way, I will promote my product on radio by writing a creative script and then executing it on radio with the help of sounds, voices and jingles.D) Communication through InternetInternet is the most advanced medium that a company can use in effect to boost its sales and create a distinctive image or brand equity. Many companies have started to give online advertisements. It can be on emails ( yahoo, Gmail etc.), networking sites ( orkut, facebook, hi5 etc.) or may be any form possible on the Internet.The message in these ty pes of ads will be same as the company have made to produce an integrated marketing communication. The advertisement of Shine on Internet will take these formsa) Translucent Float monetary standard advertisementsThese types of advertisement are displayed mostly on the opening up of e-mail ids. Like in the above picture, Shine will also use translucent float banner advertisement because this type of advertisement will have a good impact on the audience that they remember the product when they use their e-mails. In this advertisement, a screen would appear in the first place a person prompting him/her to fill a form of feedback or to enrol in an online contest.b) ViralsLike traditional viral marketing, Internet virals also rely on spreading the buzz online. Viral advertising refers to people passing on interesting and entertaining promotional content, generally sponsored by a brand to create awareness, build equity or get publicity. Shine will use the viral advertisement by using ad vergames ( using video games to advertise a product), flash games, messenger messages ( on yahoo).