INDUSTRIALPROJECT STUDY OF THE INDIAN DEODORANT INDUSTRY Economical. Social and Technological (PEST) analysis. Threat) analysis. In-depth analysis of factors affecting the business environment with the help of Political. Segmentation Analysis would be undertaken so as to know the industry’s major player operate in which segment and how Industry is divide in various segment. Strategic analysis to know about Strategies followed by the industry in the current market scenario. OBJECTIVE OF THE STUDY Identification & analysis of Competitive forces of the industry on the basis of Michael Porter’s five force model. Identification of threat and opportunities in the External business environment with the help of OT (Opportunities. . internet and Business and marketing periodicals. CRISIL. Limitations of Study Boundary surrounding the project is time. unavailability of financial data and other financial limits as well as we have to rely on secondary data.Indian Deodorant Market Sources of Data Collection Data for the research project has been collected through Secondary data sources such as Books. Research Type: Exploratory Research Exploratory Research is being undertaken so we can find insights and understanding of Indian deodorant Market.RESEARCH METHODOLOGY Study Area. euromonitor. magazines.as organisations don’t manage these products as SBUs . FICCI. with 10% market value. new entrants like Fogg and Engage have hit the right chord with the consumers. Axe. .INDUSTRY PROFILE The Indian Deodorant market is of Rs 2200 crore. Its flagship product.5 per cent to 10.5% market share. Dove.5 per cent market share in two years.a over the last 5 years Hindustan Unilever is the market leader in deodorants. and Nivea.600 crores. followed by Paras Pharmaceuticals’ Set Wet. Fa. Some of the deodorant brands that cater to the females are Nike. and McNroe Chemicals’ Wild Stone garnering 9% market value. is highly sought after by both middle and upper classes. Fogg has touched 0. To tap into the growing needs of urban consumers. the male segment contributes Rs 1. with 31. The industry has grown at over CAGR of 40% p. pegging the male to female ratio at 70:30. MALE MARKET SHARE CHART Brand Market Share Axe 31% Set Wet 10% Fogg 10.digitalimpulse.20% Spinz 10% Engage Others 6% 43% Source.digitalimpulse.in .50% park Avenue 8% Wild Stone 9% Adidas 6% Others 23% Source.in FEMALE MARKET SHARE CHART Brand Market Share Eva 19% Nivea 10% Fogg 10. High. Old Spice. comprising niche formats such as cream. due to availability of options. Very high. Expected to increase even further. Low. technology. Secret Temptation. followed by Roll-On deodorants. Sure. Fogg .5 % in just two years. and availability of chemicals . gels. Stick and solid Substitutes Available Barriers to entry Bargaining power of suppliers Bargaining power of customers deodorants constitute the second largest deodorants segment. due to sensible usage of communication. Around 300 private as well as local level brands are there in the market . and wipes.5 % to 10. Axe. Low capital costs. represents the smallest but fastest growing market in the global deodorants market. Park Avenue. Rexona. Engage. Existing Competition Dove. due to stiff competition.MICHAEL PORTER’S FIVE FORCES MODEL Equivalent utility products is not a rare phenomenon. 'Other' deodorants segment. distribution network. FOGG catapulted its market share from 0. states. such such as as china china Low Low investment investment in in r&d r&d area area Rural Rural demand demand is is still still low.leaving apart the west west Unability Unability to to reach reach rural rural marketspace marketspace Very high advertisement Very high advertisement cost.with lots growth potential potential Rising Rising rural rural demand demand Emerging Emerging women women segment segment SWOT WEAKNESS WEAKNESS Low quality compared Low quality compared to to other other Asian Asian countries countries itself.leaving apart the itself. low. cost.with lots of of growth Still stage. Production Production cost cost are are generally generally higher higher than than some some other other asian asian states. due due to to low low income income levels levels and and lack lack of of exposure exposure THREAT Less skilled labour Lack of technologies for indian companies Increase in the import tariff and technology cost Smaller players that do not fulfill international standards Increased congestion in the urban areas Environmental factors could affect Misleading advertisements Duplicate products .SWOT ANALYSIS STRENGTH STRENGTH Investments by foreign Investments by foreign deodorant deodorant manufacturers manufacturers Increase in Increase in the the export export levels levels Iow Iow cost cost and and cheap cheap labour labour Rise in in the the working working and and middle middle class class income income Rise Increasing demand for european quality Increasing demand for european quality Developing market market for for environment environment friendly friendly products products like Developing like FOGG FOGG Large Large youth youth population population OPPORTUNITIES OPPORTUNITIES Growing population Growing population in in the the country country Rising Rising living living standards standards Still the the industry industry is is in in Infancy Infancy stage. with no minimum investment criteria. phased and Conducive growth of the Indian cosmetic industry. Allowing automatic approval for foreign equity investment up to 100 per cent. Assist development of products keeping in mind the safety norms of the society Laying emphasis on R&D activities carried out by companies in India by giving a weighted tax deduction for in-house research and R&D activities. Establish an international hub for manufacturing small integrated business parks with lucrative soaps. . Ensure a balanced transition to open trade at minimal risk to the Indian economy and local industry.PEST ANALYSIS Political Indian government cosmetics policy aimed at promoting an integrated. Several Indian firms have partnered with global players. Economic The Indian economy has grown at 8. others have entered into technology tie-ups. The manufacturing sector has grown at 8–10 per cent per annum in the last few years. FMCG. for personal care products.and more specifically the personal care segment is growing at an emphatic phase Finance availability to small and medium manufacturers has grown in scope during the last few years. Establishment of India as a Manufacturing hub.PEST ANALYSIS contd. While some have formed joint ventures with equity participation. .5 per cent per annum. They are price sensitive and put a lot of emphasis on value for money the well-off. led to the increase in market share of compact cars. • Upward migration of household income levels. New measures are being taken to make the cans less polluting. educated and well informed.(65% of the population under 35 years of age) • Indian customers are highly discerning. Better atmosphere gives better life.when people want refreshing and cooling effects. • Increase in PPP.PEST ANALYSIS contd. 4th largest economy by PPP (purchasing power parity) index. Long summer months. • Controversial advertisements often hurting Indian values There is also a role of environmental outfits as well as NGOs to create awareness against the use of aerosol based deodorants.which can be directly achieved using deodorants. This well help in reducing the exploitation of atmosphere. • Huge youth population. . Social Growth in urbanization. . • With the development or evolution of alternate cooling technologies. A lot of new safety measures are now taken into consideration before the car or any other motor vehicle is launched to ensure its safety and reliability.PEST ANALYSIS contd. Technology With the entry of global companies into the Indian market. • Few global companies have setup their R&D centers in India. India is harmonizing its Emission Norms for these kinds of industries with the European Regulation and has adopted Euro III. both in product and production processes have developed. • Government initiatives regarding tax rebates have led to global players setting up their R&D centers in India. advanced technologies. aerosol cans are fast exiting the market. equivalent norms in 11 Metropolitan Cities from Apr 1 2005. ANSOFF MODEL ANALYSIS . Fogg.SetWet. SetWet. Fogg. More of an experimenting group Axe. Rexona.Nike. 2. High expenditure Old spice.Cinthol trendy 23-28 years 1. Try expensive variants Playboy 3. Health conscious 3. Status seekers 28+ years 1.Wild .Park particular brand Avenue. 2.Nivea.Tommy. Influenced by parents 2. Curious & explorative 3.Spinz 18-22 years 1. Fa.Do ve. High brand loyalty 2. Seek attention and want to be Adidas. Trend to become loyal towards a Axe.MARKET SEGMENTATION Age Group Segment Trends Brands Targeting the segment 14-17 years 1. No Loyalty Axe. was not considered appealing by the Indian consumers. AXE generally had saucy ads showing barely clothed women throwing themselves at men. has been copied by many Me too brands like wild stone . which has been communicated effectively to the consumer through the Brand communication efforts. Functionality(late 2012) FOGG has a unique positioning.Kamasutra etc. as it is high on fragrance & it uses a nonaerosol pump which does not require gas. . Axe advertisement which showed angels dropping from the skies when a man uses AXE. FOGG has more number of sprays per bottle as compared to any of its competitor. Hence FOGG does not vaporize easily and linger when sprayed on .ADVERTISEMENT ANALYSIS Exhibitionism (Till early 2012) Axe from HUL is controlling the majority of the market space through its campaign positioning as a chick magnet & helping men be attractive to women.overall a value for money proposition. Rise in interest rates may prove to be a dampener on the entrepreneurial ground. In near future we are not seeing much substitute of deodorant Industry. Access to new technologies and niche markets are the key success factor of Indian deodorant Industry. CavinKare. Ability to enhance and vary product mix.a over the last 5 years 11th largest deodorant market in the world The industry is still at its infancy stage. showing huge growth potentials The Industry which grew at a rate of above 25% over 2001-07 has grown by around 40% after 2009 .technological advancements of the later. Cost advantage is the strongest point for the Indian deodorant Industry.as it can be developed as a export base Perfumery industry can never be its competitor owing to lack of branding. McNroe.or the youth appeal. FINDINGS India`s largest FMCG company HUL . HUL. Adidas. Marico. Vini are the dominant player of the Indian deodorant Industry.holds the maximum share . Environmental impacts have been a key concern over the last two years. The industry has grown at over CAGR of 40% p. Sales and distribution service network.apart from some packaging variants Indian deodorant Industry use sales promotional tool as marketing tool most and . .html acc essed on 21mar 2015 http://www.php accessed on 20th April 2015 http://stock-report.com/2009/11/deodorant -and-perfumery-industry-dbs-cholamandalam.scribd.com/.html accessed on 18 Mar2015 .mbarendezvous./marketing-strategy-of-vini-pag e1.BIBLIOGRAPHY http:// www.blogspot.oppapers.com/General-Awareness-Topic-De odorant-market-in-India-1148..com/doc/14259049/deodorant-Indus try-of-India accessed on 12 Mar 2015 www. .
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