Session 2015 16

CASE STUDY

SUBMITTED BY:
SHWETA
ENROLL NO-00917003914
MBA(Div-A) Morning

Market
Strategy of
videocon

Introduction of the company

Corporate profile
Videocon Industries Limited is an India-based company. The
Company operates in four reportable segments: Consumer
Electronics and Home Appliances, Crude Oil and Natural Gas,
Telecommunication and Power. The Consumer Electronics and
Home Appliances include a range of products: refrigerators,
washing machines, air conditioners and televisions. The Crude Oil
and Natural Gas segment includes operations in Brazil and
Mozambique, through its subsidiaries. The Telecommunication
segment of the Company through its subsidiary provides Unified
Access Services (UAF) to 21 circles in India. The Power segment
includes two 1200 Megawatt coal-fired thermal electricity power
projects, which are under development. The segments also
includes a 5.75 megawatt peak (MWp) and a 5.50 MWp
photovoltaic power project in India, which is engaged in
generating electricity. Videocon Industries Limited is an India-based
company. The Company operates in four reportable segment Consumer Electronics
and Home Appliances, Crude Oil and Natural Gas, Telecommunication and Power.
The Consumer Electronics and Home Appliances include a range of product
refrigerators, washing machines, air conditioners and televisions. The Crude Oil
and Natural Gas segment includes operations in Brazil and Mozambique, through
its subsidiaries. The Telecommunication segment of the Company through its
subsidiary provides Unified Access Services (UAF) to 21 circles in India. The
Power segment includes two 1200 Megawatt coal-fired thermal electricity power
projects, which are under development. The segments also includes a 5.75
megawatt peak (MWp) and a 5.50 MWp photovoltaic power project in India,
which is engaged in generating electricity.

Videocon Leasing & Industrial Finance Limited, was incorporated on 4th

September, 1986 as Adhigam Trading Private Limited. In terms of the necessary
resolutions passed under Sec. 21 of the Companies Act, 1956, the name of the
Company was changed to Videocon Leasing & Industrial Finance Limited on 14th
February, 1991. The Company received a fresh certificate of incorporation from
the Registrar of Companies, Gujarat at Ahmedabad on 14th February, 1991.
Adhigam Trading Pvt. Ltd. (ATPL) was promoted by Mr Indrakant T. Parikh and
Naishad I. Parikh in September, 1986 as a private limited company and was
initially engaged in the business of trading in paper tubes. In September, 1988 the
Company decided to diversify in the business of lease financing, hire purchase and
investment activities.
The Management of the Company underwent a change in the year 1990-91 by way
of transfer of equity shares to the Videocon Group. 1,00,000 Equity Shares of Rs.
10/- each of Adhigam Trading Private Limited were purchased by the Videocon
Group at a premium of Rs. 3/- per share in April, 1991. The total consideration of
Rs. 13 Lakhs was paid by cheques.
THE COMPANY & THE VIDEOCON GROUP
As detailed earlier, during the initial years the Companies in the Videocon Group
had placed business with VLIF leading to growth in its lease financing activities.
The group companies have increased the fund base of the Company by infusing
funds in form of share capital and unsecured loans. As detailed in the Capital
Structure, the promoters currently hold 75% of the paid up capital of the Company.
The composition of promoters holding is Videocon International Limited
14,90,000 Shares (13.1% of VLIF's Capital), Videocon Appliances Limited 12,500
Shares (0.1% of VLIF's Capital), the Dhoot Family and their friends & associates
70,10,000 Shares (61.8% of VLIF's Capital). As detailed earlier, the post issue
holding would be of the order of 25.50% of the post issue capital of Rs. 33.375
Crores (assuming that all the OCDs are converted @ Rs. 150/- per Share and
Equity Shares are issued against all the outstanding warrants).
2005

-Videocon acquires entire stake of Electrolux India on July 07, 2005

-ideocon Industries Ltd has informed that the Company has completed placement
of 94,10,145 Global Depository Receipts (GDRs) at the price of US$ 10 per GDR,
aggregating to US$ 94.10 million on Private Placement Basis to AB Electrolux
(Publ). Each GDR represents one underlying equity share of the Company.
-Videocon takes over Hyundai Electronics
-Videocon wins exploration rights for Nigeria oil block
2006
-Videocon Industries enters into MoU with GAIL
-Videocon Industries launches new range of washing machines
-Videocon signs pact with Oilex for NELP block bids
2007
- Videocon Industries has bought Planet M, the music and entertainment retail arm
of media house Bennett, Coleman & Co, for Rs 200 crore.
-Videocon to set up semiconductor, LCD complex near Mumbai
-BPCL arm, Videocon in agreement to acquire stake in Brazilian oil firm
2008
-Videocon set to roll out telecom service in India
-Videocon mulls major global retail entry under `VC` brand

2009
-Videocon Industries signed a Letter of Intent with Finnish contract manufacturing
firm Elcoteq aiming at buying stake in the foreign firm where the Company makes
gadgets like mobile phones and set-top boxes for companies like Sony Ericsson,
Philips and Cisco.
2010
- A Rs.1,600-crore plant for colour television sets and other electronic consumer
durables will be set up by Videocon at Manamadurai in Sivaganga district.
-Videocon Industries Ltd Issues Rights in the Ratio of 2:9
2011
- Board has recommended dividend of Re. 1/- .
- Videocon announces successful appraisal well Offshore MozambiQue.
- Videocon announces discover of old and gas in Brazil.
2012
- Videocon Ind - Private placement of 15,750,000 Global Depository Receipts
amounting to USD 51.02 million, each representing 1.
- Videocon Ind - Videocon announces New Natural Gas Discovery Offshore
Mozambique.
- Videocon Ind - New Oil discovery in the deep waters of Sergipe-Alagoas Basin,
Brasil.
- Videocon Ind - Videocon Announces Successful Completion of Planned
Appraisal Drilling Program In The Discovery Area Offshore .

- Videocon raises $51.02 mn via private placement of GDRs.

- The Board has recommended dividend of Rs. 0.50.
2013
-Videocon adds to the resources with successful Appraisal Well in BM-C-30,
Campos Concession, Brazil and has another discovery
-Videocon confirms successful formation test with good quality of oil in Brazil
-Videocon announces New Huge Discovery Area Offshore Mozambique
-Videocon to seek shareholder approval for raising funds up to Rs 5000 cr
-Videocon Industries - Videocon announces New Huge Discovery Area Offshore
2014
-Sanjeev Bakshi takes charge as new COO of Videocon

The Videocon group's core areas of business are consumer electronics and
home appliances. They have recently diversified into areas such as DTH,
power, oil exploration and telecommunication.

Consumer electronics
In India, the group sells consumer products like colour televisions, washing
machines, air conditioners, refrigerators, microwave ovens and many other home
appliances, through a multi-brand strategy with the largest sales and service
network in India.
Since the entry of Korean Chaebols and their rising popularity in the Indian
market, Videocon from a stand-point of market leader has seen a slow decline to
become a no 3 player in India. The company continues to do well in the washing
machine and refrigerator segment but has significantly lost ground in the consumer
electronics space, thanks to the mindset of Indian people who crave for foreign
brands
Mobile phones
In November 2009, Videocon launched its new line of mobile phones Videocon
has, since launched a number of handsets ranging from basic colour FM phones to
high-end Android devices. In February 2011, Videocon Mobile Phones launched
the hitherto unknown concept of 'Zero' paise (1 paise is the 100th unit of 1INR) per
second with bundled SIM cards of Videocon mobile services for 7 of its handset
models.
In July 2015, Videocon Mobiles launched its own flagship smartphone Videocon
Infinium Z51+ in India for 5499.
DTH

Main article: Videocon d2h

In 2009, Videocon launched its DTH product, called 'd2h'. As a pioneering offer in
the Indian DTH market and introduced first radio frequancy remote in india,
Videocon offered LCD & TVs with built-in DTH satellite receiver with sizes 19"
to 42".

Telecommunication
Videocon Telecommunications Limited has a licence for mobile service operations
across India. It launched its services on 7 April 2010 in Mumbai.
Retail
Videocon owns three retail brands : Planet M, DigiWorld and Next.
A company is made by its people; their ideals, their devotion and their
accomplishments. We applaud the magnanimous people who have made Videocon
what it is today.

Founding Father

Shri Nandlal Madhavlal Dhoot, the founder of the Videocon Group,

completed his education from Ahmednagar and Pune. After a successful stint
with sugarcane and cotton cultivation, he boldly ventured into importing
machinery from Europe to set up the Gangapur Sakhar Karkhana (Sugar
Mill) in 1955. Those were the times when the villages did not even have
electricity. Thus, was unleashed an Industrial Revolution. The die was cast.
Over the years, Nandlalji's path-breaking attitude found expression in a
myraid ways, earning him the well-deserved reputation of The Pioneer of
industrial activity in Marathwada, Maharashtra, India. In early 80's,
Nandlalji introduced his three sons - Venugopal, Rajkumar and Pradipkumar
into business.

At Videocon, all our efforts are centered around the customer and his needs.
We are committed to delight and deliver beyond what is expected. By focusing
on the right means, we have been successful in building a robust and
dependable Videocon Value Chain.
Ingenious Strategy
In todays competitive world, what it takes for a business to survive is a lot of
advance planning and a clear strategy. There is a strong need for bounded
rationality, spontaneity and out-of-the-box thinking to tackle every scenario that
could be imaginable or unthinkable. Now thats something which cannot be found
in a textbook. Videocons resourceful strategies are flexible enough to change with
changing ground realities, and even change the rules of the game when needed.
Intrepid Entrepreneurship
An enterprise with odds stacked against it makes a great business sense. This is
because higher the obstacles lower the number of players likely to be active in that
field; thus paving the way for extraordinary returns. What is required is a bold
approach, a confidence and a willingness to brave the odds. Videocons foray into
oil and gas is one such brave endeavor that arises from immense faith in the
competence of the companys in-house managerial talent.
Improved Technology
With the rapidly changing industrial scenario, technology is no longer a premium
value-add. Rather, in recent years, a constant update of technology has become a
bare necessity. As a forward looking company, Videocon is extremely vigilant in
terms of staying updated with the latest technology and replacing outdated
technology with the best-in-class offers of the times.
Innovative Products
Product development, innovation and customization are the tools Videocon uses to
stay ahead of the competition. After all, we do realize that continuous stream of
innovative products excites the market and enhances brand recall. This is a strategy
that Videocon highly banks on, especially on the domestic front.
Insightful Marketing

The market share battle scene has long shifted from technology and processes to
the psyche of the customer. This means that those with deeper insights into the
elusive mind of the buyer are likely to dominate. Videocon is reinforcing
marketing strengths to read the pulse of the market more broadly and clearly; to
create products that fit perfectly into the customers preferences.
Inspired Thinking
The future is unpredictable, but if we dont do anything about it, the road ahead
will be fraught with grave risk. And so, Videocon extrapolates future trends on the
basis of current changes in technology and preferences, as well as sheer gut feel.
Business instincts are worth their weight in gold. Driven by these instincts, the
company has made some bold forays into fields of oil and gas, which has proved to
be absolute money-spinners.
Videocon's E-Waste Recycling Policy
Under the guidelines of the Central Government of India, E-Waste (Management
and Handling) Rules 2011 have been notified. Videocon stands committed to
implement E-Waste Rules. E-waste has been defined as
"Waste electrical and electronic equipment, whole or in part or rejects from their
manufacturing and repair process, which are intended to be discarded".
Whereas, Electrical and electronic equipment has been defined as
"Equipment which is dependent on electrical currents or electro-magnetic fields to
fully functional".
In general terms e-waste is any end of life electronic product which is scrap and
can not be used in any manner e.g air conditioners, refrigerator, batteries,
television, mobiles, chargers, ear-phone etc.
Managing of e-waste is most important because it consists of harmful substances
which can bring adverse effects to the environment as well as human life. By
scientific disposal of e-waste we can save our environment and also prevent its
potential negative consequences on human health.
There is need to encourage recycling of all useful and valuable material from ewaste so as to conserve the ever depleting natural resources. Recycling end-of-life
products is vital if we are to save resources and minimize waste. In this regard

Videocon has tied-up with an authorized e-Waste recycler namely Attero Recycling
Pvt. Ltd for facilitating our customers to enable them to dispose off e-waste
products after its end-of-life.

Videocon has initiated various activities to promote E-Waste

recycling activities in the following areas:
Manufacturing facilities: Control, storage and disposal of E-Waste through
authorized recyclers.
Suppliers: Recycling and disposal through authorized recyclers.
End Customers: As per guidelines below.

Negative consequences of improper disposal of E-waste product:

Toxic material present in e-waste get mixed with earth, air, water etc and
causes health issues.
Oil & Gases which is present is some of e-waste like compressor and CRT
causes environment pollution.
Batteries contains highly hazardous element.
Burning of rubber & Plastic in open area causes air pollution.
Any disposal through unauthorized agencies/person will attract action under
Environment (Protection) Act 1986, which provides for imprisonment upto 5
years or with fine upto Rs. 1 Lac or both.
Bad impact on human being, animal, and other animates.
Wastage of natural resources.
How can you Recycle the E-Waste Products?

 All electrical and electronic products are required to be handed over only to
the Authorized recycler for recycling.
The e-waste product should be handed over only to authorized recycler for
disposal.
Keep the e-waste in isolated area, after it becomes non-functional/unrepairable so as to prevent its accidental breakage.
Please call on toll free number 1800 4193283 for collection of e-waste.
You can also deposit your e-waste directly at the collection centers.
Don'ts for E- Waste
The product should not be opened by the User himself/herself, but only by
authorized service personnel.
The product is not meant for re-sale any unauthorized agencies/scrap
dealer/kabariwalaas.
The product is not meant for mixing into household waste stream.
Do not keep any replaced spare part(s) from the product in exposed area

Conditions
This initiative is the step towards a cleaner and greener earth. This move is
one of the ways to show that we are concerned and thus we request all our
customers to join this movement to make it successful by way of
contributing their end-of-life product.

 For any assistance/guidance for disposal of e-waste please call on toll free
number 1800 4193283
Products offered for recycling are not eligible for exchange offers.
The service is available as per conditions applicable in the respective area by
recyclers.
Videocon reserves the right to change the terms of the recycling scheme at
any time.
This scheme is applicable only for Videocon branded products.

Videocon

Parent Company

Videocon Industries Limited.

Category

Consumer electronics ( This refers only to Videocon Consumer

Electronics & Home Applicances)

Sector

IT & Technology

Tagline/ Slogan

The Indian Multinational

USP

Technologically advanced products

STP

Segment

Refrigerators, washing machines, mobile phones

Target Group

Middle and upper class individuals

Positioning

Premium positioning with advanced features

SWOT Analysis

[Link] brand awareness among the Indian customers

2. Wide distribution network available by owning retail stores
namely Digiworld (selling its own products) and NeXT stores.
3. Acquisition of Thomsons plants gave it access to its
technology for TVs
4. Runs wide brand portfolio under KenStar, Electrolux,
Kelvinator, Sansui, Videocon brands
5. The parent company operations include Videocon Telecom,
Videocon d2h, Videocon Consumer Electronics , Home
Appliances
Strength

6. There are over 9000 people with the company

Weakness

[Link] once strong hold i.e., CTV have lost the sheen
[Link] in the net profits and sales over the years
[Link] share in tier 1 cities and premium products

Opportunity

[Link] consumer appliances market in tier -2,3 cities

[Link] potential to expand owing to low market penetration in
India

Threats

[Link] competition from foreign players

[Link] brand image
[Link] changing technology and new features being added by
foreign players

Competition

Competitors

[Link]
[Link] electronics
[Link]

Telecom
Videocon Telecommunications Limited (VTL), a subsidiary of the Company, was
granted Unified Access Services (UAS) Licenses in 21 circles and had also been
allotted spectrum in 20 circles out of which it has launched its services in 16
circles.
The Honble Supreme Court of India, vide its judgment dated 2nd February,
2012, in two separate writ petitions filed by Centre for Public Interest Litigations
and by another, has quashed all the UAS Licenses granted on or after 10th
January, 2008, pursuant to two press releases issued on 10th January, 2008
and the subsequent allocation of spectrum to the licencees. This includes 21
Licenses issued to the VTL and the spectrum allotted to it in 20 circles. The
Honble Supreme Court of India further directed that its Order of quashing
the Telecom Licenses and the allocation of the spectrum shall be operative
after four months from 2nd February, 2012. On 24th April, 2012, the Honble
Supreme Court of India modified its Order and postponed the operation
of its Order of quashing of the Telecom Licenses and the allocation of the
spectrum to 7th September, 2012. The Honble Supreme Court of India had
also directed, in its Judgement of 2nd February, 2012, Telecom Regulatory
Authority of India (TRAI) to make fresh recommendations for grant of Licences
and allocation of spectrum (TRAI has since issued its recommendations on
23rd April, 2012) and the Central Government to grant fresh Licenses and
allocation of spectrum by auction thereafter. The Central Government has
announced that it will complete the auction of Licenses and allocation of
spectrum on or before 31st August, 2012.
POWER
The Company commissioned 5.75 MWp Solar Photovoltaic Power Project at
Village Majra, District Warora, Maharashtra, in the month of October 2011.

Comet Power Private Limited, a step down subsidiary of the Company,

commissioned 5.75 MWp Solar Photovoltaic Power Project at Village Betwasiya,
Osiyan, District Jodhpur, Rajasthan, in the month of October 2011.
Unity Power Private Limited, a step down subsidiary of the Company,
commissioned
5.50 MWp Solar Photovoltaic Power Project in the State of Gujarat, in the month
of January, 2012.
There are two 1,200 MW coal-fired thermal electricity power projects which are
under development. These projects are being undertaken by Pipavav Energy
Private Limited and Chhattisgarh Power Ventures Private Limited, the subsidiaries
of the Company in the state of Gujarat and Chhattisgarh respectivel
INSURANCE
Your Company has entered into a joint venture with USA headquartered Liberty
Mutual Insurance Group to setup a non-life insurance business in India. As per
prevailing FDI Guidelines for the Insurance sector in India, Liberty Mutual
Insurance
Group will for the present hold a maximum of 26.0% of the equity interest in the
Joint Venture Company and our Company will hold a minimum of 74.0%. The
Joint
Venture Company, Liberty Videocon General Insurance Company Limited, has
received the Certificate of Registration as a General Insurance Company from the
Insurance Regulatory and Development Authority (IRDA), under Section 3 of the
Insurance Act, 1938.
As on the Balance Sheet date, the Joint Venture Company, was a wholly owned
subsidiary of the Company

Achievements of Videocon Industries Ltd

Indias No. 1 consumer electronics and home appliances company. It is also
the third largest picture tube manufacturer in the world.
The largest panel production facility in the world under one roof providing
very high economies of scale.
One of the worlds largest and most respected CRT glass manufacturers.
Firing the largest furnace of its kind in the world with a tank size of 3300 sq
ft
One of the few companies in the world to convert sand to Tv
One of the largest and most acknowledgement CPT manufacturer in the
world.
Manufactured Indias first rust free washing machine.

KEY GROWTH INDUSTRY DRIVERS

Rising income levels and increasing affordability; fuelling consumerism and
growth in demand for aspirational goods.
Change in perception of consumer goods as basic necessities as opposed to
luxuries largely driven by increased awareness and advertising.
Rationalizing of prices by key players, due to a conductive tariff policy by
the government.
Increasing demand for technology driven replacement of consumer goods
and household appliances.

The consumption of television from the company has risen from 17 to 20%
whereas washing machines had risen to 25.1%

Videocon long term and short term strategy

Videocon adopted a multi-brand strategy to benefit from scale economies in
manufacturing and distribution. This was done by forging tie-ups with
several global brands to serve the needs of all customer segments in the lowend , middle class and even in the up market.
Videocon faced stiff competition from big branded players like LG,
Samsung and Haier following Indias economic liberalisation. Videocons
massive production capabilities at geographically diverse locations placed it
among the leading contract manufacturers to major global brands. Image of
videocon had been that of a brand in low to medium price segment whereas
the MNEs relied heavily on their cutting edge technology and global image.

Multi brand shopping cart

Over the years videocons tactic was to buy distraught over the world
and revive them by making low and elsewhere.
Consumers depending on their annual income will switch onto
different brands from time to time.
VILs study reveals that spotlight on one brand will not cater to
different segments of the [Link] thus serves a range of products
through its multi brand shopping cart.
VILs multi product plan has assisted company to achieve a place at
top of the podium with 30% market share.

 VIL is triumphant in churning loss making brands to productive

integrating them with its existing manufacturing plants.
VIL is the only domestic company to survive successfully due to its
diversified product portfolio.
Thomson Videocon deal
VIL is only one of its kinds in the world to convert sand to TV.
VIL has led to discovery of world famous technologies like
super flat CPT, slim CPT, extra slim CPT & HD 16:9 format
CPT.
VIL had bought debt free Thomsons CPT division, Clientele
includes TTE,
Sanyo,Sharp,JVC,Konka,Skyworth,Beko,Vestel,TTE 7
Horizont.
VIL had access to Thomsons R&D facilities which facilitated
up gradation of technology.
VIL further strengthen its position by selling new high tech
products in domestic as well as overseas market.
Globally, prices of CPT are on lower side due to intense
competition. However , raw material prices are not decreasing
in synergy products.
VILs integration of glass shell unit with Thomson CPT enabled
it to enjoy cost benefit in terms of production cost & it will also
reduce throughput time.
VILs strategic partners Thomson & Electrolux both acquired
15% & 5% stake respectively in VIL showing signs of faith in
top drawer of the company.
VIL- Thomson synergy has devised a bunch of strategies for its
cost,production,sales 7 industry to register them glass shells
manufacturers in the world.

Effective promotional strategies

FIFA World cup mania grios Videocon- they lined up to bring a wprld
class experience into their living rooms by availing videocons Striker offer.

 Double Bonaza, Double Mazaa- paisa vasool, as the name rightly

suggests, provided a never before opportunity to own a world class
Videocon satellite LCD thet combines the twin benefits of free Videocon
d2h services for 2 years (24 months) worth Rs. 9000 plus a money back
scheme, customers got the chance to enjoy benefits wirth Rs 20000 on the
purchase of Videocon satellite LCD worth Rs 25,990.

EFFICIENT ADVERTISING
Videocons women connect- Videocons revolutionary new range of
washing machine which have been designed entirely in mind the
convenience factor of a end customer,has already started creating ripples in
the industry. The company with its customer centric approach has hired
special female promoters,which are dedicated only to promote the sale of
washing machines.

IN SYNC WITH THE LATEST TECHNOLOGY

Videocon continuously launched new product in each product line to gain,
maintain and retain its customers. This year Videocon launched tilt drum washing
machine, it is Indias first model with tilt drum. Windows enabled mobile phone by
which Videocon entered the smart phones market. VIL even launched 3D
television sets.

CURRENT STATE OF AFFAIRS AND STRATEGIES

Videocon has recently gone through a complete brand through the change in
its logo from sturdy steel .this new brand element was recently unveiled by
bollywood superstar Shahrukh Khan in LA. To communicate makeover,

Videocon has launched new marketing campaigns with two green marketing
campaigns with two green colored animated characters which join to form
the new V logo.
According to the companys official website the Videocon logo is the heart
of a new brand identity. The fluid lava reflects the brand idea, experience
change. The color palette has been chosen to reflect the philosophy of
Videocon group i.e the color green is symbolic to the companys ecology
drive. It has also companys ecology drive. It has also Multinational to
experience change with the current portfolio of consumer electronics (TVs,
DVD players and audio systems) and home appliances refrigerates, washing
machines and Acs) and Videocon is also going to foray into new unchartered
territories of mobile new unchartered territories of mobile services.
From a marketers perspective, it is important to understand whether these
revitalization change amount to brand revitalization strategy or it is merely
brand strategy or it is merely brand suggests, is to maintain consistency of
suggests, is to maintain consistency.
But it may involve many tactical changes necessary to maintain the strategic
thrust and direction of the brand. In the case of videocons brand it is indeed
a revitalization strategy and can be understood from brand revitalization
model .the strategic direction adopted by Videocon with this brand makeover
has been highlighted in green

Swot Analysis
Strengths:

Indias no. 1 brand of consumer electronics and home appliances

Customer base= 50 million
Large brand basket
Multi brand strategy
Global network 17 manufacturing sites in India and Poland,Italy
and mexico
3rd largest picture tube manufacturer in the world
An important asset for the group is its Ravva oil field with one of
the lowest operating costs in the world producing 50,000 barrels of
oil per day.
Weakness:
Wide brand basket which might lead to conflict of interest
unless effectively managed

 Entirely involved in conventional, 20th century products,

virtually failing to establish a significant web presence in
online sales and marketing
CRT technology is losing popularity
Opportunities:
Avenues for expansions in the untapped market for LCD/plasma
screen display in India
Acquisitions/tie ups with other MNC in the consumer electronics
segment looking to enter the Indian market
Consolidate position as 3rd largest manufacture of picture tubes in
an industry where small manufacturers are phasing out operations
due to technological shifts to LCD
Strengthen and expand retail network like NEXT chain of stores.
Threats:
Decreasing market demand for CRTs because of
technological shift to LCD screens
Stiff competition due to influx of MNCs
Competition from cheaply produced Chinese goods
Fall in the market demand due to economic recession

FUTURE PLANS
To strengthen and maintain & its leadership status, the Videocon group has clearly
charted out its course for the future. Aggressive development is in full swing at the
R&D centers to bring out state of the art technologies including True
flat,slim,plasma, & LCDs at the earliest.

Cost rationalization processes- are in various stages- including rationalizing

factories in Europe, increasing automation and improvement of efficiency in china,
accessing flass shells from India for international CPT facilities and a lot more- are
in various stages of implementation.
Internationally all existing client relationships are being strengthened. The cost
competitiveness and increase in capacity in mexico and polland has opened up big
opportunities in the OEM business.
Last but not the least, in the domestic market consolidation with multiple brands
paves the way for an unassailable lead in the market.
In the oil & gas business, having all th basic operator capabilities of a prospecting
entity,the group is looking to add more explorations and production depth as also
oil bearing assets. The group will also get into gas distribution in India
significantly.

Data analysis videocon: over the years

1987 : Incorporation of videocon industries Ltd. to manufacture
televisions(black and white colour) and washing machines.

1989-2000 : Gradual expansion of the company. New products added.

2001-2003 : Drop in sales & shifting from profit to loss.

2004-2005 : acquisition of thompson CPT business in Ploand,Italy,maxico

and china.

2005-2008 : Improvement in financial performance of the company.

 2008 onwards innovations and diversification in new areas such as

telecommunication and satellite dish.
The Videocon empire is spread across many different sectors and
businesses. We aim at changing lives by challenging ourselves to
deliver beyond what's expected.

Videocon Liberty

Consumer Electronics & Home Appliances

Mobile Handsets

Mobile Services

DTH Services

Oil and Gas

Real Estate

UAE Ecommerce

International Business units

Case study
on
shampoo
industry

Introduction

Days are gone, when the people were using the home made products for hair care.
With the advent of new thoughts, there is an increasing awareness amongst Indian
about hair care. The Indians have long been obsessed with the long hair.
Particularly south Indians are recognized by their thick, black
and long hair. Shampoo industries have identified this aspiration quite well.
The shampoo market has acquired significance in urban Indian homes since the
1960s. The market is conquered by dominant players such as
Hindustan Unilever Ltd. and Procter & Gamble Company. It is expected that the
market will continue to grow with more market players. The changing dynamics of
rural people has resulted into substantial increase in the penetration level of the
market for both existing and new players. Still the penetration level of shampoo
market is low (14%) in Indian market
(Indian Cosmetic Sector Analysis (2009-2012)).Urban markets account for 80% of
the total shampoo market. The shampoo usage rate is increasing gradually due to
decline in excise duty and the use sachet packaging. Sachet packet substantially
increased the sales of shampoo and the sachet packet sale is more than 70% in
south [Link] biggest barrier of shampoo usage is the belief that the shampoo
contaminated with chemicals will damage the hair as Indians are keen to the usage
of herbal cosmetic products. The shampoo industry is characterized by three
benefit platforms: cosmetic, anti dandruff and herbal. Anti dandruff shampoo alone
accounts for 20% of the total shampoo market and it is growing at 10% to 12%
every year .The leading shampoo industries thus came out to solve the specific
problem like, hair fall, dandruff, dullness, dryness, damaged hair, and shampoo
with herbal intact etc.
The shampoo industry in India has evolved extensively since the 1960s, which
was then considered a lifestyle product in urban India. Until 2005, the market was
dominated by flagship companies such as Hindustan Lever Ltd. and Procter and
Gamble. But since then the competition has broadened to include many more
multi-national companies and domestic companies such as Garnier and ITC Ltd.
There is high capacity of growth in top and bottom ends of the industry, which is
an advantage for companies since the penetration rates are comparatively low.

Hair care market of India

As of September 2009, the Indian hair care market was estimated around Rs. 3,800
Crore. This industry is segmented into smaller categories of shampoos, hair oils,
hair serums, hair conditioners, hair colorants and hair gels. Marico dominates the
hair oil category with its flagship brand Parachute, followed by Dabur (Vatika).
Shampoo market of India
The word Shampoo is originated from the Hindi word Champoo. The industry
is growing at an annual rate of 14% p.a., and the competition is intensifying
everyday. Shampoos are further divided into three predominant categories:
1. Cosmetic (Volume, shine, strength).
2. Herbal.
3. And Anti-Dandruff.
Consumer behavior is at crossroads today as it has its roots in both marketing and
behavioral sciences. As it is born from marketing it will be hard to deviate from the
needs of marketing. But given all the concepts and methods learned from the
behavioral sciences it will be impossible to ignore them. The science of consumer
behavior will be carried forward with traditional journals and other conferences.
However, new journals, like the Journal of Consumer Marketing and other
associations will provide a stepping stone to conducting research in the field of
marketing.
The target market for shampoos is mainly the upper class, upper middle class,
middle class and particularly, housewives and college goers. However, of late, the
bottom of the pyramid is proving to be profitable owing to the promotion of onetime use sachets. Cavin Kare, an fast moving consumer goods major created a
revolution in the past decade with its experimentation of Re.1/- Chik Shampoos
in rural areas. Ironically, urban India is witnessing a change in shampoo
consumption, since families are moving from one shampoo a family to one
shampoo a family member. This metamorphosis is a strong driver for growth.
More and more companies are entering the shampoo market every day. The
existing marketing leaders are forced to maintain their dominance through
aggressive promotion, re-branding efforts and reduction in prices. Companies are
also experimenting with sachet promotion to expand presence in the rural markets.

This competition is expected to further intensify in near future and the determining
factors is consumer connect.
The characteristics of shampoos and its market in India
The frequency of shampoo consumption in India is low. Most consumers
shampoo once or twice a week, as opposed to everyday in western countries.
Some consumers shampoo their hair to attend to hair problems like dandruff,
when the hair needs to be conditioned periodically
Consumers have common expectations from shampoo consumption, like
shine, cleanliness and hygiene, moisturizing, etc. and they expect their needs
to be satisfied.
Consumers relate formation of lather to the act of cleansing.
Even today, many individuals use soap or a combination of soap and
shampoo to wash their hair.
Shampoo consumers are not very loyal to their brand. They constantly seek
changes, mainly so in fragrance.
The per wash consumption of shampoo of Indians is higher than most
western countries: 6 ml as compared to an average 4 ml per person. This is
mainly attributed to hair length of Indian women.
Since Indians also regularly oil their hair, their shampoo consumption
increases proportionally.
Southern India is predominantly a sachet market, as opposed to North India
where bottles are more popular.
The penetration level of shampoos in rural India is estimated at 32% (2005).
Sachets make upto 40% of the total shampoo sales in the [Link]
dominates the market with 47% market share, followed by P&G at 23%. The
challenges are expected to increase due to increasing competition and
decreasing prices.
Major players of the Indian shampoo market

Hindustan Unilever Ltd. dominates the shampoo market in the country with brands
like Clinic All Clear, Sunsilk and Clinic Plus. P&G follows closely with its highly
successful brand, Pantene, along with Head & Shoulders, the leading AntiDandruff brand in India. Other major players are Dabur, Cavin Kare and Garnier.

Market Share of FMCG Companies in the Shampoo Industry

Value-added shampoo segment is gaining immense popularity these days, with
many companies launching a myriad of variants to tap market share. Paras was
first to launch the hair potion segment with Livon, pharma companies such as
Dabur have launched medicated anti-dandruff segment with Vatika.
By 2015, an estimated 55% of the shampoo consumers will be the under-20 years
of age segment, giving shampoo giants a huge opportunity to experiment in this
sector. With increasing awareness and growing advertising activates, shampoo
penetration is likely to multiply threefold in the coming years.
TOP (LEADING) BRANDS OF SHAMPOO IN INDIA
Shampoo in India was derived from the Hindi word champi meaning hair massage.
The introduction of shampoo in India dates back to the British reign in the country.
Recent penetration levels of shampoo in India has been commendable.
The shampoo market in India is estimated to be Rs. 2,500-3,000 crore. The
shampoo market is India is categorized according to the benefits they provide.
Mostly consisting of three kinds of shampoos, cosmetic, herbal and anti

dandruff, the shampoo market in India has managed to tap users

of the various segments according to their requirements and
preferences.
Due to the continuous efforts of the top shampoo brands in India
penetration of shampoos in urban areas is almost 100%. As far as
penetration of shampoo in the rural areas is concerned it has
risen by almost 18% in the current scenario.
The top shampoo brands in India include Sunsilk, Clinic Plus, Dove
and Pantene. The company that leads the shampoo market in
India is Hindustan Unilever Limited. The top three most sought
after brands Sunsilk, Dove and Clinic Plus are produced by HUL.
The company holds a 44% market share in the Indian shampoo
industry. It is said that HUL earns almost 8% of its revenue from
the sale of these products .The other recent brand that has taken
the Indian personal care industry by storm is Pantene. Since its
very inception the brand was a best seller. A product of FMCG
giants Proctor and Gamble, Pantene has slowly and steadily
managed to capture quite a large amount of the Indian market.
Proctor and Gamble the second top shampoo brand in India holds
a market share of around 25% in the Indian shampoo industry.
The revenue earned from the sale of shampoos from Proctor and
gamble is almost 17%.
Together these two major players constitute a major part of the
Indian shampoo industry. Both these players with their numerous
brands dominating the Indian shampoo market are continuously
trying to outdo one another by introducing different marketing
schemes. Be it in the form of price cuts, discounts or increasing
the size of the shampoo sachets without any extra costs these
two shampoo producing companies are at a continuous price war.

List of Top Shampoo Brands in India

Sunsilk
Clinic Plus
Pantene
Head & Shoulders
Garnier Fructis

The Shampoo Industry In India

Shampoo is a hair care product used for the removal of oil, dirt, skin particles,
dandruff and other environmental pollutants.
Shampoo is derived from the hindi word "champi" and dates to 1762. Hair
Shampoos are targeted at upper middle class, upper middle class and house wives,
upper class rural customers and teenages. Consumers attribute lathering as
cleaning.
Components
It is generally made by combining a surfactant (sodium lauryl sulphate and/or
sodium laureth sulphate) with a co-sulfactant (mostly cocamidopropyle betaine) in
water to form a thick and a viscous liquid.
Shampoo industry in India
Indians have evolved from a time where "champi" was the sole mean of haircare.
Today, a plethora of options are available from shampoos and conditioners to hair
dyes, serums and hair colours. According to AC Nielson, the Indian shampoo
industry is estimated at INR14 billion and is growing at an average rate of 20% per
annum.

The shampoo industry is divided on two basic platforms - cosmetic (shine, health
and strength), herbal and anti-dandruff. The anti-dandruff segment that grows at
10-20% annually is the fastest growing segment.
Shampoo Penetration in India
All India Shampoo - 14%
Urban India - 40%
Rural -10%

Shampoo market is segmented on benefit platforms:

Cosmetic
Anti-dandruff
Herbal
Rural market for shampoo
70% of pop lives in rural India.
More than 50% sales comes from FMCG rural markets.
90% sales comes in form of sachets of INR1-3.
Increasing brand awareness and rising income levels
According to the Nielsen data, the shampoo segment is growing at around
INR4000 crore as of January. This segment is growing by over 18% annually.
There is a huge competition for a share of pie in the shampoo segment. It enjoys
one of the highest penetration in India, that is, around 80-85% across product

categories in India. This requires the brands to keep innovating to stay ahead of the
growing competition.
Year-on-year growth of the shampoo market over a five-year period in India
Period
Market size (in Rs crore)*
Jan-12
4,000
Jan-11
3,478
Jan-10
3,024
Jan-09
2,629
Jan-08
2,286
Jan-07
1,987
* The market has grown at an estimated rate of 15% year-on-year over the past five
years
Source: Market players
Hindustan Unilever (43% or INR1700crore)

Procter & Gamble (29% or INR1,160 crore)

Cavin Kare (9% or INR360 crore)
Dabur (7% or INR280 crore)
L'Oreal (4% or INR160 crore)
ITC (1.1% or INR44 crore)
A Myth
Companies worried about cannibalising sales of similar variants under various
brands in their firm?
Satyaki Ghosh, Director, Consumer Products Division says, "If the pie is big
enough, in this case hair fall, one doesn't have to worry. Besides the positioning of
the brands - L'Oreal Paris is a premium 'expert care' brand and Garnier is more of a
'beauty' brand-clearly separates the target audience."
Straddling the price pyramid
The shampoo category is split mainly into the following three segments, based on
price:
Economic
Popular
Premium
The marketers are supposed to identify the requirements at each price point and
thus formulate the offerings accordingly.
S Viswanathan, General Manager, Marketing Services, CavinKare, says, "Hair care
practices vary across the pyramid. The bottom of the pyramid uses hair oil
extensively while the top emphasises more on shampoo usage. Hair problems too
will differ accordingly."

A bottom of the pyramid consumer may favour products with natural ingredients.
A premium shampoo user may prefer technology - driven and scientifically backed
products.
The rural-urban divide may throw up different hair care issues and resultant needs.
"The urban lifestyle and harsh environmental conditions lead to hair damage. So
the demand for a product that restores damaged hair to its former glory has grown
a lot among such consumers," says Nilanjan Mukherjee, Head, Marketing,
Personal Care products business, ITC, which launched a premium shampoo brand,
Fiama Di Wills based on this platform in the year 2007.
To be successful, companies have to play in all-three segments.
Premium category is dominated by:
HUL's Dove
L'oreal Paris
P&G's Pantene
ITC's Fiama Di Wills
Premium Category Pricing
Brand
Quantity
Price
HUL's Dove
200ml
INR123-130
L'oreal Paris

200ml
INR130-135
P&G's Pantene
180ml
INR120
ITC's Fiama Di Wills
200ml
INR129
Popular Category Pricing
Brand
Quantity
Price
HUL Sunsilk
200ml
INR105
L'oreal Garnier
200ml
INR117
ITC Vivel
200ml

INR89
Cavin Kare Nyle
200ml
INR82
Economic Category Leading Players
ITC Superia
P&G Rejoice
Chik
Clinik Plus
"The economy segment contributes a little over half to the
category in terms of sales. However, the growth has been flat in
this segment with the popular category gaining more traction.
Over the next few years we expect the contribution of the
economy segment to be under pressure as consumers are likely
to trade up into the popular segment.
Sachets have become an integral part of the segment in the recent years. Both
sachets and bottles are equally important in terms of contributing to the value, but
when it comes to volumes, sachets win the game.
The growth in the urban markets has flattened, with the rural markets driving the
category. Given that rural markets are price sensitive and consumers prefer sachets
to bottles, managing sachet offerings is key to any brand's success.
The sachet market can be a great leveller for the segment. Even premium brands
like Dove and Pantene are available at INR1-INR1.50, on par with economy and
popular brands. Commenting on L'Oreal's pricing, an industry player says, "The
price point pyramid in sachets cannot be stretched beyond Rs 3. Even

heavyweights like Dove and Pantene entered at Rs 3 levels but had to soon
succumb to market pressure and bring their prices down. At Rs 4, L'Oreal's pricing
seems a little out of reach."
In sachets, INR1 is the most popular price point followed by 50 paise and then
INR2.
Procter & Gamble
The Company
P&G's business is focused on providing branded consumer goods products. The
company's products have a reach in more than 180 countries and this is primarily
through mass merchandisers, grocery stores, membership club stores and drug
stores. There is a continued effort to increase the visibility through department
stores, salons and high frequency stores. The company has on-the-ground
operations in about 80 countries.
Goal
The goal of the company is to provide products of superior quality and value to
improve the lives consumers.
Organizational Structure
The organizational structure is comprised of three Global Business Units (GBUs)
and a Global Operations group. The Global Operations group consists of the
Market Development Organization (MDO) and Global Business Services (GBS).
Global Business Units
The three GBUs are Beauty, Health and Well-Being, and Household Care. The
primary responsibility of the GBUs is to develop the overall strategy for P&G's
brands. They identify common consumer needs, develop new product innovations
and upgrades, and build the brands through effective commercial innovations,
marketing and sales. Under US GAAP, the business units comprising the GBUs are
aggregated into six reportable segments: Beauty; Grooming; Health Care; Snacks,

Coffee and Pet Care; Fabric Care and Home Care; and Baby Care and Family
Care.
PANTENE
Pantene focus: Shine Through Health
Pantene was born of Panthenol, that is the active ingredient developed in
Switzerland in 1940. Initially, the compound was created to cure burn victims in
World War Two. Hoffman-La Roche, a Swiss drug company, developed Pantene as
a shampoo and launched it in Europe in 1947.
Procter & Gamble acquired Richardson-Vicks in 1985, post which Pantene was relaunched nationally in the US. This led to growth in business through increased
distribution. Since then, with expansion into Asia, Pantene has become a global
brand.
Pantene Pro-V was launched in India in 1995.
Pantene's Unique Selling Proposition
The main ingredient, Panthenol, improves the health and elasticity of hair and
moisturizes it.
Key issues faced by Pantene:
Low wash frequency in Asia
Female-centric targeting
Pantene has a low market share in Asia
Stagnant hair care market
No new product development
Fall in market share
Business Objective

Pantene wants to be the brand with the highest market share in the hair care
industry in India.
A Market for Men
62% Men want hair care specifically designed for them. Around 41% purchase
their shampoos themselves and 67% visit salons regularly.
Pantene for Men - Shine through Strength is targeting hair loss and thinning of hair
issues faced by most males.
Various offerings
Pantene Pro-V Anti-Hair Fall Shampoo
The brand in this product advertising promise its consumers, "Think your hair is
here today and gone tomorrow? Think again. Pantene Anti-Hair Fall strengthens
each strand from the root to the tip reducing breakage up to 95% in just 2 washes.
Pantene Pro-Vitamin Hair Fall shampoo formulas when used with a Pantene Pro-V
conditioner leave hair healthy and strong in 10 days or less. Your hair will live on!"
For those who are experiencing split ends and totally damaged hair, Pantene Pro-V
Milky Extra Treatment Shampoo is the thing. The product is stated itself as, "Do
you believe in miracles? Watch the magic of Pantene Milky Extra Treatment. It has
been examined that the special formula of vitamins and milky lotion penetrates
into dry and brittle hair and transforms each strand, making it stronger, healthier
and full of life. It provides a complete cleaning that gives a moisturized, healthy
feel to your hair with a lustrous shine from top to bottom. Keep the moisture in and
damage out".
Pantene Pro-V Deep Black Shampoo
This variant is for people having dull hair. The product claims that "Bad hair days
will soon become a distant memory. Pantene Deep Black with Pro-V formula
contains Amino-S which nourishes dry and dull hair, darkening each strand
through intense moisturization from root to tip.

DOVE
Dove introduced its hair care range in 1998 in Europe and in 2003 in North
America. In India, it was launched in 2007. Within 15 months of its launch, Dove
became the fastest growing shampoo brand in the country.
Dove has a range of hair care products that repair accumulated damage to the hair.
The new Zero Damage System repairs and protects hair from damage. The range
includes 'daily therapy' shampoo and conditioner, 'dry therapy' shampoo and
conditioner, 'breakage therapy' shampoo, conditioner, serum and hair mask.
Dove hair care products are useful in preventing anti aging and anti frizzing. The
new Dove range of shampoos has been designed to particularly focus on issues
related to coloured hairs.
It is popular among high class and upper middle class people. It targets women of
all ages.
It launched its hair care in May 2007.

Dove Intense Repair

Dove believes that the every hair is different and different hair needs different
solutions. Dove Intense Repair corrects the real cause of split-ends or damage. Its'
1/4 moisture milk and fibre actives go deep inside to repair damage so that the
split-ends are lost without losing hair-length.
Dove Hair Fall Rescue
Dove Hair Fall Rescue goes deep inside to repair damage so that there is lesser hair
fall.
Dryness therapy
Dove Dryness Care restores the hair's lost moisture and keep dryness caused by
damage at bay making the hair soft and smooth.

Dove daily shine shampoo

It contains patented micro moisture serum that defends hair against constant
aggressions that cause dullness.
Dove dandruff care
ZPTO & micro moisture serum combination keeps dandruff under control without
drying hair, from the first wash.
Branding and Advertisements
Real Women
Dove shampoo uses "real women" to campaign and sets out the myth that
only models are "beautiful."
Real Beauty T-shirts
The company gives out free Real Beauty T-shirts on purchase of new products
launched in the market.
Your Dove
It entitles the users to preview special offers and product innovations, access to
expert advices, tips to create own personalised beauty care routines.
Self-esteem campaign
It appealed to the aesthetic needs of the consumers and focused on the need to feel
good. It used oversized models and elderly women to convey the idea.
Dove Evolution Film
There is a shift from broadcast media to digital media. This gave the brand a wide
exposure.
Dove's USP
Available for different hair types

Focuses on Indian hair problems

Focuses on emotional selling proposition
It makes an ordinary women to be a super model
Channel Distribution
Dove flies high; Pantene waits in the wings
With P&G upping the ante in the crucial segment of shampoos, analysts say Dove's
position could be challenged in the future.
P&G has re-launched Pantene with a new formulation and packaging in five Asian
markets including India, say industry sources. The pricing is also competitive - a
90-ml Pantene bottle is available at INR59, while a 100-ml Dove (there is no 90-ml
bottle) is priced at INR64 respectively. Pantene's 200-ml bottle, meanwhile, is
available at INR117, which is also the case with Dove, though the latter's antidandruff variant is available at INR134 for a 200-ml bottle.
HUL vs P&G
It is believed that HUL enjoys a better distribution channel than P&G. The reasons
for which can be that HUL retailers get better credit facilities, and P&G sales
executives follow a similar pattern of sales and marketing.
Current Market Scenario
L'oreal
So L'Oreal's Fall Repair 3X range of shampoo is bolstered with arginine.

Shampoo Market and Its Growth in India

The hair care market in India is valued at $200 million. It contributes 8% in the
total FMCG
sector and has registered a growth of 3.8% over the previous year. The hair care
market can
be segmented into hair oils, shampoos, hair colorants and condit
ioners, and hair gels.
The size of shampoo market is 2700 Crores of rupees with urban areas accounting
for 80%
of shampoo sold and rural areas accounting for 20% of shampoo sold in country.
The market
is expected to increase due to increased marketing by
players, lower duties and availability
of shampoos in affordable sachets. Sachet makes up to 70% and anti
dandruff shampoo up to
20%of the total shampoo sale. This is primarily a middle class product because
more than
50% of the population uses toilet soap
s to wash hair. The penetration level is only 30% in
metros. The major players are HUL and Procter and Gamble.
Brand loyalties in shampoo are not very strong. Consumers frequently look for a
change,
particularly in fragrance. Major expectations from the p
roduct are improvement in texture and manageability, giving softness and bounce
to hair, curing and avoiding damage to the
hair. Southern market is predominantly a sachet market, accounting for 70 % of
sachet
volumes. In Contrast, shampoo bottles are more
popular in the Northern markets. About 50
% of the shampoo bottles are sold in the Northern region alone. The shampoo
industry has
lot of scope to be penetrated with all India penetration level at 51% with urban
penetration at
62% and rural penetration at

46% till now

SWOT Analysis of Shampoo Market in India

Strengths:
The major strengths of shampoo market includes low operational costs, p
resence
of established distribution networks in both urban
and rural areas, presence of well known
brands in FMCG sector, increase in income level of customers.
Weaknesses
: Weaknesses of shampoo market includes lower scope of investing in
technology and achieving economies of scale, especially in small sectors,
low exports levels,
lack of education in rural market and so many products are already available in the
market.
Opportunities:
Major opportunities
of shampoo market includes untapped rural market,
rising income levels of customers, large domestic market al
l over the country, a population
of over one billion, export potential of companies and high investment of
customers on
consumer goods.
Threats:
Threats of shampoo market includes removal of import restrictions resulting in
replacing of domestic brands, sl
owdown in rural demand, new entrants of well known
international brands and spurious goods and illegal foreign imports of different
shampoo
brands

What is FMCG ? :
What is FMCG ? FMCG refers to consumer non-durable goods required for daily
or frequent use. Typically, a consumer buys these goods at least once a month.
FMCG Products :
FMCG Products Detergents Toilet soaps Toothpaste Shampoos Creams Powders
Food products Confectioneries Beverages Cigarettes
Hair Care Category in India :
Hair Care Category in India There are 5 main products Hair Oil Shampoo /
Conditioners Styling products Herbal Remedies Hair Dyes / colors
Types of Shampoos :
Types of Shampoos Shampoo market is segmented on benefit platforms Cosmetic (
shine, health, strength ) Anti - Dandruff Herbal
Shampoo market in India :
Shampoo market in India Size of shampoo market Rs 9000 Million AntiDandruff Shampoo approx. 20 % Sachet Sales - approx. 70 % Major players HLL
63% Beauty cosmetics-13% P & G 12% Ayur Ltd 8%
Shampoo Awareness in India :
Shampoo Awareness in India Per Capita consumption of Shampoo in India - 32ml
Number of users of Shampoo- 1123 Million 53% Urban 47% Rural

Shampoo Industry till mid 90s :

Shampoo Industry till mid 90s HLL undisputed leader from the early 90s
Sunsilk 1964 Clinic Plus - 1971 Clinic All Clear launched in 1987 (Therapeutic
AD Shampoo) Sunsilk re-launched in 1987 - Shampoo+ Conditioner (Beauty
platform) with Sachet SKU HLL Goes rural with Sachet Clinic Active launched in
1991 (with Pro Vitamin B - health platform)
Entry of Competition :
Entry of Competition Why did competition Enter India Teeming millions
Burgeoning middle class Westernized youth Low penetration levels Huge untapped
market
New Entrants into the Market :
New Entrants into the Market P & G enters India in Nov 1995, with the worlds
largest selling brand - Pantene Colgate Palmolive launched Optima also in Nov
1995 ( break through in Keratin treatment ) Nirma launched Nirma Shampoo
which went into rough weather because it also had a detergent and soap with the
same name. The brand name also had low price connotations
Shampoo Boom in India :
Shampoo Boom in India In mid 1997, per capita consumption of Shampoo
increased Of the Rs. 350 Cr. Shampoo market, the AD segment accounted for a 20
% share P & G launched its Internationally acclaimed A & D shampoo H & S in
1997 with Zinc Pyrithine ( ZPT ) - a unique anti-microbial agent. There were 2
variants - regular and menthol Sachet sale became 70 % of all shampoo
consumption in the country
The top Shampoo brands :
The top Shampoo brands Normal Shampoos Clinic Plus Sunsilk Chik Pantene
The top Shampoo brands :

The top Shampoo brands Herbal Shampoos Ayur Dabur Vatika Nyle
The top Shampoo brands :
The top Shampoo brands Anti Dandruff Shampoos Clinic All Clear Head and
Shoulders Pantene Pro-V Anti-dandruff
The top Shampoo brands :
The top Shampoo brands Premium Products Shehnaz Hussain Revlon Flex L'Oreal
Bases Of Segmentation :
Bases Of Segmentation DESCRIPTIVE Geographic Location Demographic
BEHAVIOURAL Psychographic Benefits 1
Segmentation For Shampoos :
Segmentation For Shampoos Geographical Location Urban Rural Benefits
Cosmetics (Hair conditioning, Shiny Hair) Herbal (Fruitamins, Neem-based,
Shikakhai based) Medical ( Anti-lice, Anti-dandruff) Price Premium- Shahnaz,
Biotique etc Mid-priced- Dabur Vatika, Garnier Ultra Doux etc Economy- Nyle,
Chik
Major Issues :
Major Issues Low penetration of shampoo market in India. Gradual emergence of
local players Rapid emergence of the organized sector due to reduction of excise
duties. Sachets fuelling growth in the shampoo market. Bulk of the growth at low
price end of the market as a result of increased rural consumption. Globalization,
liberalization, increase in awareness levels, increase in purchasing power etc has
spurred on demand for personal care products like shampoos.
The Salon Business in India :

The Salon Business in India Salons are fashion trendsetters and caters mainly to
the age group of 15-34. Hair-related services generate the bulk of the business in a
salon. India has 20,000 salons with total turnover of 500 crores and salon business
is primarily unorganized. Has a unique distribution network, run by independent
businessman wherein products are sourced locally. Witnessing a two-way brand
movement- salon brand entering retail and vice versa.
Marketing Strategy For HLL :
Marketing Strategy For HLL Product Variants are harmonized in terms of the
product mix Fragrance, colour and ingredients: Sunsilk Naturals Highest number
of variants Promotion Innovative promotion channel: Sunsilk gang of girls Brand
experience in form of therapy centres: Lever Ayush Place Intensive distribution
network
Marketing Strategy For HLL :
Marketing Strategy For HLL Use its intensive distribution network to expand its
rural market Re-launch its Organics shampoo brand to capture herbal shampoo
segment HLL can make foray in fast growing Salon business and compete with
other retail brands

Market strategy:
It is also seen that from past few months the sales of Pantene were declined due to
the sun silk and dove. to maintain the status in the market proctor and gamble
decide to launch the total improved Pantene series which includes a hairfall,black
long ,nourishement,smooth and silk. To compete with this hul launched various
kind of shampoos and conditioners made by experts in sunsilk

Opportunity cost: as the space acquired by the different brands on the shelf it
showcase to the opportunity cost. Shelf is generally arranged in the attractive way
to grab the attention of the customers. Customers get attracted to the 1st shelf
product as all product serves the same purpose with the some special features
consumers purchased those shampoos. This leads to the opportunity cost.
Market Share: Number of brands under one company:
Endorsements and advertising: Heavy expenses on advertising the most advertising
is done for the dove nod sun silk.
In over all survey of shampoos we can keenly observed the features of
monopolistic markets which are
Large no of buyers and sellers: There are various players in the market in this
survey we are considering the various shampoo brand of Hindustan uniliver ltd and
proctor and gamble
Product difference: under same brand there are various different type of shampoo
is manufactured by the company they are very specific in nature though they are
shampoos but the features are different this differences among the competing
brands all product is actually based on the imaginary or real difference in quality.
Here quality refers to the differences in the color, smell, shape etc; here the
customer is made to believe the differences in the quality. The variation is done not
only inters of the product features but also in the terms of the advertising. The main
goal of the firm is to maximize the profits. The firm maximize their profits through
the three policy variables we can be describes as follows;
Price
Product quality
Selling cost
Free entry: there is no restrictions entry for any kind of manufacturer who is
willing to entre in the market. there are neither legal or economic barriers are
observe red in the monopolistic competition

Price: the price control is observed over all firms who are producing the different
product. These products are sold under same brand name for ex; sun silk is the
brand of Hindustan uniliver ltd. It is also seen that the customer is attach to the
brand. And because of this reason the product is brought on the basis of brand for
ex under DOVE the various sub brands with different features can be observed like
HAIRFALL THERPY, DRY THERPY and so on...
Heavy selling costs: selling costs include the promotional activity takes place for
the establishment of the product in the market. As we can see the high
advertisement and various offers are included for the establishment. Many times
the buyer is also unaware about the product usefulness because the many times the
advertised qualities can't be checked by the buyers.
Prices: the prices of the brand and sub brand products are almost same because in
the monopolistic competition if the price is raised of the particular product then the
demand will not fall to zero for that product because the company and brands are
close substitutes but not perfect substitutes for each other. The loyal customers
would pay the high price for the particular product which gives them full
satisfaction. They would stick to the particular brand rather going for new brand.
Non price competition: in this situation the firm can compete with the rival firm by
changing the qualities for the particular product or by increasing the promotional
cost, but generally it is seen that this activity is done without changing the price of
the particular product. This is called the non price competition.