MARKETING ESSENTIALS

A
A

L
PRESENTATION

F
H
R
ON

E S
BRAND CREATION
[SOAP]

BATCH:- ISBE-B SECTION-1

GUIDED BY:- DR.RAJIV PANDIT
:GROUP MEMBERS:
 CONTENT
 MICRO ENVIRONMENT
 MACRO ENVIRONMENT

 MARKET SCAN

 DEFINITION OF FMCG

 HISTORY

 MARKET SEGMENTATION

 FACTORS AFFECTING BUYING BEHAVIOUR

 PEST ANALYSIS

 SWOT ANALYSIS

 BCG MATRIX

 CONCLUSION


MICRO ENVIRONMENT
MARKET SCAN
WHAT IS A FMCG?
CLASSES:




HISTORY








 The market shows a seasonal behavior for some

brands, i.e. the brands change as per the
customers' need for that particular season. For e.g.
in summer - running brand popular and sub-popular
most of the buyer take bath twice in a day specially
in northern belt, in monsoon - running brand
antiseptic and medicated soap, in winter running
brand premium (moisturizer and creamy soap).

ENVOIRNMENT
ANALYSES …
Geographic Environment

W E

S
Geographic Environment
 Region : North, south, West, East
 City size : Major metropolitan areas,
 Small cities , Towns
 Density of Area : Urban, Suburban, Rural
 Climate : Temperature, Hot, Humid.
 Since the temperature is HOT & HUMID,
sweating is at high rate.
 Customers need a product which keeps them
fresh all day long.
 They also require fragrance which is
longlasting.

DEMOGRAPHIC ENVIRONMENT
 POPULATION

 India is a country of 1.15 billion people.

 Rural Population consists 72% of total
population.
 It is a ‘ Young Country ’ having 46 crores of
people between age 13-35.
 Women population is around 55 crores.
•
•

Income
Lit e r a cy
• Literacy rate in India is around 65%.
• 35 crore people in age 13-35 are literate.
• 62% literate youth lives in Rural villages.
• Women literacy rate is around 55%.
• Housewives are the main target for this
product.

 Economic Environment :

Per Capita Income $3100

Inflation Rate 10%

GDP (PPP) $3.57 Trillion

Economic Comparison 5
Rank Worldwide
All figures in million as on 2006-07

Households Estimated
Income Class Population

Rich 5.2 30

Consuming class 75.5 432

Climbers 81.7 472

Aspirants 20.2 117

destitute 16.5 95
ECONOMIC ENVIRONMENT
 Economic Environment :
Income & Growth in Rural & Urban Area in 2015
(Expected).
Psychographic Environment
Social-Cultural Environment




Cultural Environment
COMPITATIVE
ANALYSIS …
 COMPETITORS
[ men’s category]

 WILD STONE


 PARK AVENUE


 AXE


 REXONA


 CINTHOL

 COMPETITORS
[child’s category]

 JOHNSON & JOHNSON



 DOY



There are many types of competitors
 Brand competitors
 which makes product with the similar features
and benefits to the same customers at a similar
price


Product competitors
 which compete in the same product class but
their product have a different features, benefits,
price


Generic competitors
 which provide very different product that solve
the same problem or satisfy the same basic
customer needs


Total budget competitors

Market Share
CONSUMERS
ANALYSIS …
Benefits sought by various customers from
various brands are
Factors affecting buying behaviour



FACTORS OF BRANDS
Benefit Factor
MARKET
SEGMENTATION …
WHOLE PROCESS OF BRAND CREATION


 Market Segmentation


 The market is growing at 7% a year. This means that the incremental

demand generation is 5% over and above the population growth.


 With increasing awareness of hygienic standards, the market could grow at

a rate higher than 8% annually.

HIGHLIGHTING SEGMENT …
 PREMIUM SOAPS ARE ESTIMATED TO HAVE A
MARKET VOLUME OF 80000 TONES.


 THEY POSESS A SHARE OF AROUND 14-15%.



 THIS SEGMENT HAVE COMPARITIVELY HIGH

LOYALYTY.
TARGETING …



 PEST Analysis:

 Political Factors: --


 Politically there is no much of a problem for the ALFRESH

SOAP and will create an impact that will not affect our
product.


 Government banned the import of tallow, a soap making raw

material (which was requiring a very little processing to
make soap). It then followed an incidence of adulteration
of vanaspati by unscrupulous manufacture.

Economic Factors
 Soaps in India cost very high in India as compared to other
countries like Indonesia. This is primarily attributed to
the high cost of imports due to high import duties.

 Since India is now a WTO member India will have to bring
down the import duty rates to as much as 20% from
35%. Also the excise rate at 16% forms formidable
portion of the cost.

 For toilet soap, the average expenditure per user
household for low-income households is Rs. 237, while it
is Rs. 706 for high-income groups.

Social factors:

 With the rising education and disposable income levels, the

need for hygiene and personal / skin care becomes important.


 Premium soaps are thus targeted at the audience to change

their habits by raising their aspiration levels.


 Fragmented approach of govt. and NGO’s towards inefficient

PHC-primary health center also aggravates the problem.


 The growing reach of advertising medias like satellite and cable

TV too is expected to give a boost to the market penetration
initiatives of the industry players.

Technological Factors:

 The industry though capital intensive is not very technology

intensive. Premium soap manufacturing though compared with
other soaps manufacturing relies to an extent on technology
(especially in the finishing stage). The more important is logistics
management where marketing and distribution play a pivotal
role. Here technology like (SCM) Supply Chain Management and
(E-CRM) Electronic Customer Relationship Management will play
a pivotal role. Companies like HLL are working very hard towards
such a system to rope up the entire small stores and retailers
(Kirana Stores).

 The results of a survey done by National Council of Applied
Research (NCAER) suggest that Indian FMCG space is all set to
enter a new growth phase, sample this: the study says that the
lower income group is expected to shrink from over 60 percent
(1996) to 20 per cent by 2007 and the higher income group is
expected to rise by more than 100 per cent. It looks; the industry
is all set for a fast-paced race ahead.

SWOT ANALYSIS
BRAND PERSONALITY
BRAND POSITION
POSITIONING OF BRAND
RESEARCH & DEVELOPMENT

After extensive research and development we have

come up with an idea of launching ALFRESH LIQUID
SOAPS
GAP OF OPPORTUNITY

 There are 2 major competitors for liquid

soaps.


 Fiama De Wills of ITC.

 Lux liquid soap of HUL.

 Out of which Fiama De Wills is growing faster.



 There are no other prominent players in this

segment.

GAP OF OPPORTUNITY
 Such liquid soaps are more popular in women
of age 15-35.


 The major player in baby liquid soap is

johnson & johnson.


 So, after all the analysis we can see that this

segment of soap is not yet explored.


 Looking at the development and growth of

country this would be the right time to
enter this segment.



THE BOSTON CONSULTING GROUP’S
GROWTH-SHARE MATRIX (BCG)
 BCG Matrix Include;

INTERPRETATION OF BCG MATRIX
BECAUSE BATHING WITH SOAP IS
OUTDATED.
 ADD LIFE TO YOUR BATH
WITH ALL NEW…….


ALFRESH

CHILD MEN WOMEN
SOAPS.

.
OUR PRODUCTS…
ALFRESH BABY’S LIQUID SOAP…
ALFRESH MEN’S SOAP…
ALFRESH WOMEN’S LIQUID SOAP…
WHY ALFRESH LIQUID SOAPS.
CUSTOMERS TARGETED .
PROMOTIONAL ACTIVITIES
DISTRIBUTION CHANNELS
SUMMARY

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