Pricing In India

ABOUT INDIAN SHAMPOO MARKET

Shampoo market is segmented on benefit platforms:

Ð'* Cosmetic ( shine, health, strength )

Ð'* Anti - Dandruff

Ð'* Herbal

HAIR CARE FACTS - Behavioral pattern in shampoo demand

Ð'* The frequency of shampoo usage is very low. Most consumers use shampoo only once or twice in a week. In many cases, these products are used on special occasions such as weddings, parties etc

Ð'* Some customers use shampoo only to address a specific problem such as dandruff or when they need to condition their hair

Ð'* About 50% of consumers use ordinary toilet soaps to wash their hair

Ð'* About 15 % of consumers use toilet soaps as well as shampoo for cleaning their hair

Ð'* Brand loyalties in shampoo are not very strong. Consumers frequently look for a change, particularly in fragrance

Ð'* Consumers attribute lathering to the act of cleaning

Ð'* Major expectations from the product are improvement in texture and manageability, giving softness and bounce to hair, curing and avoiding damage to the hair

Ð'* An Indian needs more shampoo for a proper wash ( average 6 ml ) compared to 4 ml needed in Western countries as most Indian women have long hair

Ð'* Most consumers do not use shampoo daily

Ð'* Regular users would need smaller quantity of shampoo per bath. Hair tend to collect more dust due to dusty environment and oiling habits

Ð'* Southern market is predominantly a sachet market, accounting for 70 % of sachet volumes.In Contrast, shampoo bottles are more popular in the Northern markets

Ð'* About 50 % of the shampoo bottles are sold in the Northern region alone

SUNSILK SHAMPOO

(Hindustan Lever Ltd.)

PRODUCT

Launched in 1964, Sunsilk is the largest beauty shampoo brand in the country. Positioned as the 'Hair Expert', Sunsilk has identified different hair needs and offers the consumer a shampoo that gives her the desired results.

It is a 160 crore plus brand for

The benefits are more compelling and relevant since the variants are harmonised in terms of the product mix - fragrance, colour and ingredients are all well linked to cue the overall synergy. The range comes in premium packaging and design. The accent is on "It knows you, and hence knows exactly what your hair needs"

COMPETITORS

PANTENE

(Procter & Gamble)

Recently P&G launched its new range of Pantene shampoo known as " Pantene Pro V". HLL launched its new range of Sunsilk, after which P&G followed in launching the new range of Pantene. The New Pantene Amino Pro-V Complex also comes with an all new refreshing exotic fruity fragrance called Asian Zest, created specially to suit Indian women. Amino Pro-V Complex range of shampoo comes in five variants suited for individual needs: Pantene Smooth & Silky, Volume & Fullness, Long Black, Hair Fall Control, and Lively Clean. P&G has a total market share of around 14% in shampoo market, whereas Pantene has a share of 4-5 %

DABUR VATIKA

(Dabur India Ltd.)

Dabur entered into shampoo segment with Dabur Vatika and with two variants ie. Anti-dandruff shampoo & Henna conditioning shampoo. The move clearly shows the strategy of company to remain in both anti-dandruff & general segment category. Dabur vatika occupies a market share of around 5% in general shampoo category. In herbal shampoo market worth Rs.200 Cr, Dabur Vatika holds onto an impressive 39% share.

SKU's COMPARISON

SKU SUNSILK PANTENE DABUR VATIKA

Sachet (7.5ml) yes yes yes

40 ml yes no yes

50 ml no no yes

100 ml yes yes yes

200 ml yes yes yes

400 ml yes yes no

500 ml no no yes

Ð'* In the SKU comparison, all the brands are available in sachet category. 95% of the sachet sale is in the rural sector. Sachet is the most selling shampoo SKU, especially in southern region where it occupies an impressive 70% share. When it comes to Sachet, consumer generally doesn't have concern of the quantity of the sachet, but the main concern is of the price. The main reason for companies to enter into the sachet in to have greater penetration & to achieve greater sales in volume terms.

Ð'* As we move up the SKU ladder, Pantene seems to be absent from the 40ml & 50ml category, where as its competitors are present in the 40 ml category. According to experts, every shampoo brand should be present in either 40ml or 50ml category. Thus , Pantene being absent in both the categories might be the reason of the low volume sales of Pantene.

Ð'* Sunsilk is absent in 50ml category as well as 500ml category. Pantene is also absent in the 500ml category.

Ð'* Dabur Vatika is available in all the SKU's except 400ml. The major sales in the shampoo category occurs in sachet, 50ml,100ml & 200ml category.

PRICE POINT COMPARISON Ð'- COST TO CUSTOMER

SUNSILK

Variants SKU's Price(Rs)

velvet soft Sachet 2

fresh&cool 40 ml 10

thick&strong 100 ml 42

black shine 200 ml 72

silky strength 400 ml 140

PANTENE

Variants SKU Price(Rs)

Hair fall control sachet(7.5ml) 3

smooth&silky 100 ml 51

long black 200