MARKET ANALYSIS OF EVERYUTH DERMA CARE RANGE

A Project Report Submitted in Partial Fulfillment of award of MBA

Degree

Market Analysis Of Everyuth Derma Care Range At Zydus Cadila

Submitted to Mr. Aniruddh Pandharkar Product Manager, CPD

Submitted by Lakshmi Nair Varuna Singh

AES Post Graduate Institute of Business Management Ahmedabad

CONTENTS
Page Acknowledgement Preface List of Figures List of Tables Chapter 1: Introduction About the Company-Zydus Cadila Cadila Healthcare Limited Skin Care Market Skin Care Facts Skin Care Product Range Major Competitors Chapter 2 : Strategic Marketing Techniques Study of 4 Ps of the Marketing Mix 4 Ps of the Derma Care Range Product Price Place Promotion SWOT Analysis Factors included in a SWOT Analysis Confrontation Matrix Simple Rules for Successful SWOT Analysis SWOT Analysis for the Derma Care Range Chapter 3 : Retailer Analysis of the Derma Care Range Research Objective Research Methodology
3

5 6 7 8 9 10 13 17 18 20 23 24 25 28 28 29 30 31 33 34 35 36 37 39 40 40

Data Analysis and Interpretation Limitations Chapter 4 : Conclusions And Recommendations Glossary Annexure Webliography

41 51 52 55 57 58

ACKNOWLEDGEMENT

Many people have guided and influenced us in preparing this project. First of all, we are grateful to Dr. A. H. Kalro, Director, AESPGIBM for giving us an opportunity to experience the corporate way of working and in the process help us learn. Our special thanks to our project guide Mr. Aniruddh Pandharkar, Product Manager, CPD and Mr. Abhiroop Chatterjea, Sr. Marketing Executive for their wholehearted support and invaluable guidance, without which this project would not have been possible. We also thank Mr. Rajendra Sharma and Ms. Jinal Parikh and all our faculty members who guided us throughout the project. Lastly we thank our family members, friends and classmates who supported us.

Lakshmi Nair

Varuna Singh

PREFACE
It is indeed a happy moment for us to present this project report. Proper care was taken while organizing the report so that it would be easy to understand and comprehend. During the preparation of this project report, all Marketing Research concepts were studied and implemented. It has been a rich experience to work in a technically advanced environment of Zydus Cadila. This project is a part of First Year study, the final step towards the completion of first year of MBA course. The project duration of 8 weeks commenced from 15th May, 2006 and concluded on 15th July, 2006. During this tenure we initially studied various aspects of Market Research and then actively participated in the process of Marketing Analysis. The project report is divided into four sections. These sections are sequenced in a way to give a comprehensive idea of work done. Sections encompass of Introduction, Strategic Marketing techniques, and Retailers Analysis. The first section gives a complete overview of the Skin Care Market. The second section gives an overview of the Strategic Marketing Techniques. The third and fourth section gives an overview of the Retailers Analysis which helps in drawing the conclusions of the study conducted and recommends few marketing strategies.

5LIST OF FIGURES

Figures Fig 1 Fig 2 Fig 3 Fig 4 Fig 5 Fig 6 Fig 7 Fig 8 Fig9 Fig 10 Fig 11 Fig 12 Fig 13 Fig 14 Fig 15 Fig 16

Particulars Derma Care Sun Protection Range Derma Care Complexion Enhancement Range Derma Care Skin Repair Range The Marketing Mix Dermacare complete Range add Dermacare sun block range add Satellite area analysis Vastrapur area analysis Jivraj area analysis Paldi Mahalaxmi area analysis Navrangpura area analysis Naranpura area analysis Sardar Patel area analysis Raipur area analysis Gulbai Tekra area analysis Overall Ahmedabad market Scenario

Pg.No.

LIST OF TABLES

Table 1 Table 2 Table 3

Revenue Segmentation for the year Jan 05-06 Everyuth Product Range Prices of the various products of the Derma Care Range

Table 4 Table 5

The Distribution Channel of Derma Care SWOT Analysis of Derma Care Range

CHAPTER 1

INTRODUCTION

ABOUT THE COMPANY- ZYDUS CADILA

The dawn of 50's ushered in an era of awakening. Having broken free from the bondage of dormant history, a need arose for the country to be self-sufficient in all spheres Healthcare at this time was the sole domain of a few pharmaceutical giants. Coupled to this was the enormous task fighting the myth and malady by cutting across the barriers of communication so as to reach out to people and to ensure the most effective cure in the shortest possible time. Under such circumstances, with tenacity of purpose and unfailing zeal to achieve perfection in quality, Cadila was founded in 1952 by Mr. Ramanbhai B. Patel, an entrepreneur, determined to contribute his share by setting up a pharmaceutical company. By the early 1990s, Cadila was ranked the third largest pharmaceutical company in India.(ORG -December 1991, 1992, 1993). The decade also marked the beginning of a new economic framework and a shift in government policies. To thrive in this evolving environment, it became imperative for Cadila to restructure and streamline its business operations. Thus in 1995, Cadila Laboratories emerged as Cadila Healthcare under the aegis of the Zydus group. Moving beyond pharmaceuticals, the concept of total healthcare now forms the commercial heart of the group's operations and activities. Spearheading the combined activities of the group, as a whole new identity 'Zydus'. A phonetically powerful word, the name combines the ethos of the Greco-Roman God Zeus and the dawn of a new era. Zydus like Zeus also symbolizes the group's aspirations to contribute to the welfare of the people and to society at large.

10

Zydus today has a leadership position in key segments like cardio vascular, gastro intestinal and womens healthcare and is amongst top three in the respiratory, pain management and anti-infective segments. It also is a leading producer of niche and complex bulk drugs. Some of the well-known brands of Zydus Cadila include Aten - the largest hypertensive brand in the country, Ocid, Amlodac, Atorva, Pantodac, GRD, Penegra, Nucoxia, Ciprobid, Dexona, Primolut-N, Dulcolax, Enew, Sugar Free, Diane 35and Mifigest among others. In recent years, Zydus has made an aggressive entry in the regulated global generic market with operations in France and US, apart from the 25 other emerging markets worldwide. Zydus is aiming to be one of the top 10 global generics companies by 2010 and a global research driven company by 2020. Some of the alliances that have been successfully forged by Zydus include alliance with Mallinckrodt, a leading US generic company, Zamban Group of Italy. JV with Altana Pharma of Germany and Mayne Pharma of Australia, as well as the acquisition of companies like German Remedies in 2001, (which was the largest M&A in Indian pharmaceutical sector); acquisition of Al Pharma in France among others. Organizational architecture of Zydus Group

Zydus Cadila -- the flagship division focusing on anti-infectives and pain management. Zydus Alidac -- a specialty division, which focuses on the gastrointestinal segment. Zydus Medica -- a specialty division, which focuses on the cardiovascular segment. Zydus Biogen -- a specialty division, which focuses on the biologicals. Zydus Neurosciences -- a specialty division, therapy areas include anti-depressants, anticonvulsants, anti-psychotics and tranquilizers.

11

Zydus Vaccicare -- a division that exclusively markets vaccines like Vac Typh and HB Vac. Consumer Products Division -- a division that has a significant presence in OTC and Skin care, with its basket of brands like Sugar Free (Low calorie sugar substitute), Sugar Free Dlite (low calorie soft drink), Dietrim (Fat Soaker) and EverYuth range of skin specialities. Zydus Pathline -- a division that manufactures and markets diagnostic reagents and instruments for the pathological laboratories, blood banks and hospitals. Micro marketing Division -- a division that focuses on generic drug marketing. Phytosurge Division -- a division that markets herbal remedies for cold and cough, liver disorders, respiratory tract disorders, GI tract disorders and other general disabilities. Bulk Drugs -- a key strategic business unit of Zydus Cadila that manufactures a range of modern bulk actives in the therapeutic areas of anti-ulcerants, psycholeptic drugs, antidepressants, quinolones, anti-diabetics, anti-histaminics etc. Dial for health India Limited -- a 100% subsidiary that provides forward integration in the areas of distribution and e-commerce by setting up e-pharmacies. Recon Healthcare Limited -- a 100% subsidiary whose main focus areas include cardiovascular and pain management. The life force at Zydus Cadila is the dedication of its employees. Zydus Cadila understands and respects their individual needs and provides them with a range of facilities to help them grow as professionals in various facets of life. Recognizing the fact that a happy workforce is a productive workforce, Zydus Cadila ensures the well being of all its members. A fact underlined in its core belief 'We build People to build our Business.'

12

CADILA HEALTHCARE LTD.

Cadila Healthcare Limiteds parent organisation Zydus Group is one of the fastest growing integrated healthcare companies with a turnover of Rs.13 billion. Zydus Group is the 5th largest player in the Indian domestic formulations market and also has a global presence. Cadila Healthcare came into being under the aegis of the Zydus Group in 1995. The Consumer Division of Cadila Healthcare Limited is one of the fastest growing departments of the company. It has pioneered the growth of some of the most fruitful ventures.

Consumer Products Division

Sugar Free Sugar Free - Dlite EverYuth Orange Peel Off Skin Vitalizer EverYuth Walnut & Apricot Facial Scrub EverYuth Clearskin Complexion Mask EverYuth Sunblock Lotion EverYuth Exfoliating Face Wash Complexion Crme

The Consumer Division of Cadila Healthcare Limited also has a strong presence in the low calorie dietetic segment with brands like Sugar Free - a low calorie sugar substitute, Sugar Free Dlite - a low calorie soft drink mix and Dietrim - a fat soaker. In the dietetic segment, Sugar Free - a healthy low cal sugar substitute, is available in pellet and powder form. It is a leader in the low calorie sweetener market with more than

13

70% market share. Sugar Free Dlite, when introduced was the first low calorie soft drink in the Indian market. Offering 85% lesser calories than all other soft drinks, Sugar Free Dlite is available in 5 flavors namely Orange, Lemon, Passion Fruit and Mango. Dietrim was launched in the weight management segment. It is a unique first of its kind fat soaker' in the Indian market. Made from a rare Japanese plant called Konjac, Dietrim - a 100% natural dietary fiber, works by way of forming a viscous gel after consumption. It absorbs all the excess sugar and fats consumed and also helps to cut down on your fat and calorie intake. This product is available in select markets. EverYuth is a leading skincare brand of the Consumer Division of Cadila Healthcare Limited the flagship company of Zydus Group. EverYuth occupies a unique distinction of being a 'skincare brand from a healthcare company'. Enriched with the power of natural ingredients, EverYuth has a strong presence in advanced skincare segments like soap-free Face Washes, Face Masks, Scrubs etc. EverYuth has more than 50% market share in the Face Mask & Scrub market and 12% market share in the Face Wash segment, where it is the fastest growing Face Wash brand. Its brand Orange Skin Vitaliser was the first peel-off mask to be launched in India and since then it continues to hold a leadership position in this segment. Specially designed to fulfill every womans skincare needs, the EverYuth range also includes products like Skin Essential Moisturising Lotion & Crme, Sun Block Lotions, Face Cleanser etc. The percentage contribution of the various product ranges towards the total revenue of the family and towards the total cosmetic sales from January 2005 to January 2006 is as under:

14

Product

Variant/sku

SKU contrib. to family

Family contrib. to cosmetic sales

total

For month contrib. OSV 9g 30g 50g 90g Product WFS Variant/sku 7g 50g 100g 200g Product CFP Variant/sku 9g 50g 90g Product FW Variant/sku 50ml 100ml Product MST Variant/sku 60g 120ml crme Product SSL Variant/sku 60ml 120ml #DIV/0! #DIV/0! 0% 87% 13% 82% 18% 16% 73% 11% 16% 62% 19% 4% 18% 14% 56% 12%

Till month contrib. 19% 13% 57% 10%

For month contrib. 24%

Till contrib. 26%

month

15% 64% 17% 4%

22.7%

23.1%

13% 79% 8%

8%

13%

78% 22%

24%

23%

0% 79% 21%

22%

14%

44% 56%
Table 1

0%

1%

15

Dermatologically tested and conforming to international standards, the new EverYuth Derma Care range has been specially created to suit Indian skin & weather conditions. Enriched with internationally proven active & natural ingredients and formulated to effectively restore & improve the natural health of the skin, the new EverYuth Derma Care range will empower you to effectively tackle the skin problems of darkening, pigmentation, acne & aging, which are triggered by the sun. Understanding your special skincare needs, EverYuth Derma Care range of specialty products are classified into three categories - Protection, Enhancement & Repair.

16

SKIN CARE MARKET

India is one of the fastest growing markets for skin care products, and the target of most cosmetic majors is women between 18-35, with a monthly income of Rs 10,000 and above. Indian cosmetic industry is heading for a complete makeover, rediscovering the longforgotten herbal formulas and beauty secrets. Those in the business say the going has never been better for the Indian beauty industry. Estimated at Rs 1800 crore, the industry is growing at 25 per cent annually, while the growth rate of herbal cosmetics sector, estimated at Rs 400 crore is much higher - at 40 per cent. The natural and ayurvedic sector has seen a phenomenal growth in the last 2-3 years. The Indian cosmetic companies are just trying to rediscover, what was lying forgotten and untapped for a very long period. More and more companies are entering this lucrative market with a wide range of products. This market surely works on the doctrine Consumer is the King. The leading players in this industry are Hindustan Lever Ltd., Ponds India Ltd., Lakme, Emami Ltd, Cavincare Ltd, Godrej Consumer Products Ltd., Lotus Herbals India Ltd., Procter and Gamble Hygiene and Healthcare Ltd., Cadila Healthcare Ltd. The latest entrant in the skincare market is Amway India Ltd.

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SKIN CARE FACTS

The skin is amazingly versatile and complex. It is the largest organ of the body and also serves countless essential functions and performs a large variety of roles. This resilient covering makes you waterproof and leak proof, and helps to protect your internal organs from the environment.

Interesting Facts
The skin of an average-sized adult covers an area of more than 7 square feet and weighs about 5 kg. The skin is thickest on the soles of the feet, and thinnest around the eyelids, lips and genitals.

Why do you need Sun Protection?

You need sun protection 365 days a year

Sun contains harmful UVA (aging rays) & UVB (burning rays) that can darken your skin in just 15 minutes Surfaces such as water, sand and concrete reflect & intensify sun exposure, because of which you can get sunburned even when you cover your skin or take shelter in the shade. 90% of skin aging happens due to damages caused by sun's harmful UVA (aging rays), which penetrates more deeply into the dermis. UVA is considered to be the chief culprit behind wrinkling, leathering and other aspects of photo aging. Up to 80% of the sun's UVA & UVB rays can even penetrate dense clouds, which is why your skin needs specialist sun protection, every time you step out.
18

Why do you need Complexion Enhancement?

Sun damage goes beyond skin darkening... Exposure to sun's ultraviolet light, which contains UVA & UVB rays, accounts for 90% of the symptoms of premature skin aging. Many skin changes, which were commonly believed to be due to aging, are actually a result of prolonged exposure to UV radiation. Unprotected sun exposure and harsh Indian climatic conditions not just darken your skin but also damage it by causing dark spots, pigmentation, blemishes and discolouration. Fairness creams only superficially lighten your complexion, without treating your skin from within. Which is why, you need enhanced skin lighteners to keep your skin clear & flawless.

Why do we need skin repair?

Most common skin problems can be traced to the Sun Extreme hot & humid weather conditions of India, along with the sun's harmful UVA & UVB rays have been observed to be the primary cause of two main common problems that women face inevitably - Wrinkles & Acne. The sun is the single most important factor responsible for causing premature aging and increasing the risk of skin cancer. 80% of wrinkles & fine lines on your skin are a result of exposure to ultraviolet rays of the sun. Excessive heat and humidity cause your sebaceous glands to produce more sebum, leading to clogged pores & acne. Acne can become worse in extreme climate because sweating increases oil production. Which is why, while repairing acne you need to take extra-special care.

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SKIN CARE PRODUCT RANGE

Derma Care Sun Protection Range
This range is the only advanced sun block range that offers up to 97% sun protection for more than six hours. A blend of internationally proven sun block agents and natural active ingredients that soothes the skin, Everyuth Dermacare sun blocks are formulated to be absolutely non greasy and completely sweat resistant. This range consists of:
Daily Sun Block Crme- SPF 30 (for dry skin) Daily Sun Block Lotion- SPF 30 (for all skin types)

Sensitive Skin Sun Block Lotion- SPF 15 (for sensitive skin and children) Daily Matte Sun Block Crme- SPF 30 (for all skin types)

Fig 1

20

Derma Care Complexion Enhancement Range

Everyuth Derma Cares Enhancement Range consists of two unique breakthrough formulations that will give your complexion a matte fair radiance, while also providing sun protection. Enriched with internationally proven active ingredients, these specialty products also help in treating skin problems of pigmentation and blemishes, from within. When used in conjunction they will give you a flawless glowing complexion. It consists of: Daywear Matte Fairness Lotion- SPF 25 (for all skin types) Light And Clear Skin Lightening Crme (for pigmented and blemished skin)

Fig 2

21

Derma Care Skin Repair Range

Everyuth Derma Care Repair Range consists of two unique advanced formulations that help to undo the damages and restore the natural health of skin. Enriched with internationally acclaimed active ingredients, these products empower to regain beauty and self confidence. This range consists of: Age Defence Anti-Aging Crme (for matured and wrinkled skin) Acne Contol Gel (for acne prone skin)

Fig 3

22

MAJOR COMPETITORS
Dermacare, the newly introduced range is mainly targeted at the higher middle class and the creamy layer of the society. Hence it falls in the higher price range. Therefore its major competitors are Garnier skin care range, Lotus herbals India, and the Lakme Sun Expert. The Garnier Skin Care Range consists of: Garnier Skin Naturals Sun Control (SPF 20) Garnier Light (Antimarks & Fairness Cream) Garnier Fainess+Dark Spot Prevention Cream Garnier Wrinkle Lift Garnier Eye Contour Gel Garnier Pure (Anti bacterial cream)

The Lotus Herbals Skin Care Range consists of: Lotus Sun Protection Gel (for sensitive skin) Lotus Sun Protection Cream (SPF 10, 20, 25, 30, 40, 60) Lotus Fairness Cream Lotus Acne Control Cream

The Lakme Sun Expert Range consists of: Lakme Sun Expert Sunscreen Lotion (SPF 15 - for all skin types) Lakme Sun Expert Sunblock (SPF 25 for sensitive skin) Lakme Sun Expert Sunscreen Souffle (SPF 20 for oily skin) Lakme Skin Brightening Gel

23

CHAPTER 2

STRATEGIC MARKETING TECHNIQUES

24

STUDY OF 4 PS OF THE MARKETING MIX

The major marketing management decisions can be classified in one of the following four categories: Product Price Place (distribution) Promotion

These variables are known as the marketing mix or the 4 P's of marketing. The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.

Fig 4

25

Product Decisions
The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:

Brand name Functionality Styling Quality Safety Packaging Repairs and Support Warranty Accessories and services

Price Decisions
Some examples of pricing decisions to be made include:

Pricing strategy (skim, penetration, etc.) Suggested retail price Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundling Price flexibility Price discrimination

26

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution decisions include:

Distribution channels Market coverage (inclusive, selective, or exclusive distribution) Specific channel members Inventory management Warehousing Distribution centers Order processing Transportation Reverse logistic

Promotion Decisions
In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:

Promotional strategy (push, pull, etc.) Advertising Personal selling & sales force Sales promotions Public relations & publicity Marketing communications budget
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4 PS OF THE DERMACARE RANGE

Product
The term product for the Derma Care Range and the Clear Skin Complexion Mask includes:

Product

SKU

Daily Sunblock Crme SPF 30

50 g, 100 g

Daily Sunblock Lotion SPF 30

50 ml, 100 ml

Sensitive Skin Sunblock Lotion SPF 15

100 ml

Daily Matte Sunblock Crme SPF 30

50 g, 100 g

Daywear Matte Fairness Lotion SPF 25

100 g

Light & Clear Skin Lightening Crme

50 g

Age Defence Anti-Aging Crme

50 g

Acne Control Gel

50 g

Table 2

28

Price
The prices of the various products of the Dermacare Range are follows:

Product Daily Sunblock (SPF 30) Daily Sunblock (SPF 30) Daily Sunblock (SPF 30) Daily Sunblock (SPF 30) Sensitive Skin Lotion (SPF 15) Daily Matte

SKU Crme 50 g

MRP (Rs.) 90

Crme 100g

175

Lotion 50 ml

85

Lotion 100 ml

150

Sunblock 100ml

125

Sunblock 100 g

195

Crme (SPF 30) Daily Matte Sunblock 50 g 110

Crme (SPF 30) Daywear Matte Lotion (SPF 25) Light & Clear Crme Age Defense Anti-Aging Crme Acne Control Gel 50 g
Table 3

Fairness 100 g

150

50 g 50 g

90 150

75

29

Place
This decision most importantly constitutes of the distribution channels. The various distribution channels used by the marketing department is as follows:

FMCG Channel Company Pharmaceutical channels Chemists

C & F Agents

Wholesale Stockists

Redistribution

Retailer Shops

Retailers

Customers

Customers

30

Promotion
The marketing department for the Everyuth Dermacare Range mainly uses the Pull strategy for its product. Leading actress and model Perizaad Zorabian is the brand ambassador for their range. They have aired two advertisements, one comprising the entire range and one showing the Dermacare Sun Protection Range, on all the major television channels and print media. They have a well developed and well connected personal selling and sales force. Under the public relations and publicity campaign, they have an Everyuth Club which organizes competitions and other recreational activities for its members. Under its various promotional schemes for the Dermacare Range, they came up with a new programme on MTV (Music Television), MTV Evergreen Hits sponsored by Everyuth Dermacare and hosted by Perizaad Zorabian.

31

Dermacare Skin Protection Range

Dermacare Sun

Protection Range

Fig 5

Fig 6

32

SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. It is applicable to either the corporate level or the business unit level and frequently appears in marketing plans. SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT Analysis is a powerful framework for analyzing your company's Strengths and Weaknesses, and the Opportunities and Threats you face. This helps you to focus on your strengths, minimize threats, and take the greatest possible advantage of opportunities available to you. Strengths and weaknesses are internal factors that create value or destroy value. They can include assets, skills at its disposal, compared to its competitors. They can be measured using internal assessments or external benchmarks. Opportunities and threats are external factors that create value or destroy value. A company cannot control them. It includes demographic, economic, political, technical, social, legal factors. Any organization must try to create a fit with its external environment.

33

Factors included in a SWOT Analysis:

Major factors included in a SWOT Analysis are presented in the following matrix:

Strengths Specialist marketing expertise

Weaknesses Lack of marketing expertise Undifferentiated products

Exclusive access to natural resources Patents

Location of your company Competitors have superior access Poor quality of goods or services Damaged reputation

New, innovative product or service Location of your business Cost advantage through proprietary know-how Quality processes and procedures Strong brand or reputation

Opportunities Developing Internet) Mergers, joint ventures or strategic alliances Moving into new attractive market segments A new international of international

Threats market (China, the A new competitor in your own house Price war Competitor has a new, innovative service market trade New regulations Increased trade barriers A potential new taxation on your product

Loosening of regulations Removal barriers A market that is led by a weak competitor.

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Confrontation Matrix
A tool to combine the internal factors with the external factors is the Confrontation Matrix. On the basis of this matrix an organization decides which strategy should be adopted.

Opportunities

Threats

Strengths

Offensive

Adjust

Make most of these

Restore strengths

Weaknesses

Defensive

Survive

Watch competition closely

Turn around

35

Simple rules for successful SWOT analysis

Be realistic about the strengths and weaknesses of your organization when conducting SWOT analysis. SWOT analysis should distinguish between where your organization is today, and where it could be in the future. SWOT should always be specific. Avoid grey areas. Always apply SWOT in relation to your competition i.e. better than or worse than your competition. Keep your SWOT short and simple. Avoid complexity and over analysis. SWOT is subjective.

36

SWOT Analysis for the Dermacare Range

Strengths

Weaknesses

Brand name Quality Strong distributorship Established Products

High price Poor promotion schemes Restrained advertising budget Low retailers margin

Lack of push strategy

Opportunities Growing market due to improving economic conditions Untapped potential in the skin care market Technical innovations

Threats

Existing leaders Competition from MNCs

Table 4

37

After combining the internal and external factors in the Confrontation Matrix, the strategy best suited for the Derma Care Range is the Defensive Strategy, wherein a close surveillance of the competition must be administered. Improving economic conditions have led to larger and growing markets, due to which there is a great scope for the skin care industry. Hence opportunities are immense but there are also certain weaknesses in the marketing strategy hindering their development. Hence under such circumstances the Defensive Strategy is the best suited.

38

CHAPTER 3

RETAILER ANALYSIS OF THE DERMACARE RANGE

39

RETAILER ANALYSIS OF THE DERMACARE RANGE

1. Research Objective:
To check the stocking pattern of Everyuth Dermacare Range at various retail outlets in Ahmedabad To find out the sale or movement of the Everyuth Dermacare Range To evaluate the impact of advertisement on the movement of the product To study the competition

2. Research methodology:
a. Time Scope b. Methods of Data Collection: Research Design Sample Design - Sample Type - Sample Size Data Collection Sources - Primary Source - Secondary Source c. Geographical Scope: Retailers (Interview mode) Internet, library, newspapers and magazines. Satellite Vastrapur Gulbai Tekra Paldi, Mahalaxmi Navrangpura Naranpura Sardar Patel Raipur Convenience 162 Descriptive Design 2 months

40

3. Data Analysis and Interpretation

Satellite

DCER DSR R

GSCR

100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
DSPR

% availability

GSRR LSC R

pdct category

Fig 7

From the above graph it can be derived that in satellite the sun control range of Derma Care is available in 62% of shops. Only 19% shops had the Derma Care Enhancement Range and around 14% shops stocked Derma Care Skin Repair Range. In the sun control range, LAKME SUN BLOCK CRME AND LOTION is available at almost 100% shops. Next to LAKME is GARNIER SUN CONTROL i.e. 86%. LOTUS SUN CONTROL is available at 47% shops. In the Skin Enhancement Range, GARNIER LIGHT & GARNIER FAIRNESS products are available at maximum number of shops i.e. 81% shops. After Garnier, LOTUS enhancement product is available at 48% outlets. DERMA CARE SKIN ENHANCEMENT RANGE is available at 19% shops In the Skin Repair Range, which consists of Age Defence and Acne Control products, GARNIER again is the leading brand which is available at 81% outlets. Lotus repair range is second most available product i.e. 24%. The brand which is least stocked in this range is, DERMA CARE SKIN REPAIR RANGE. It is available at only 14% of shops.

41

LSBR

GER

LER LSR R

Vastrapur
100.00% % availability 80.00% 60.00% 40.00% 20.00% DCER DSR R GSCR GSRR LSC R 0.00% DSPR GER LSBR LER LSR R

pdct category

Fig 8

From the above graph it can be derived that in Vastrapur, the sun control range of Derma Care is available in maximum 59% of shops. Only 53% shops had the Derma Care Enhancement Range and around 29% shops stocked Derma Care Skin Repair Range. In the Sun Control Range, LAKME SUN BLOCK CRME AND LOTION and GARNIER SUN CONTROL are available in similar number of shops i.e. around 94% shops. LOTUS SUN CONTROL is available at only 53% shops, which is the least available product in Sun Block Range in Vastrapur. In the Skin Enhancement Range, GARNIER products are available at 100% of shops. After Garnier, LOTUS enhancement product is available at 65% outlets. DERMA CARE SKIN ENHANCEMENT RANGE is available at only 29% shops, which again is the least in the Enhancement Range. In the Skin Repair Range, GARNIER is again the leading brand which is available at 94% outlets. Lotus Repair Range is the second most available product i.e. 35%. The brand which is least stocked in this range is, DERMA CARE SKIN REPAIR RANGE. It is available in only 29% of shops.

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100.00% 90.00% 80.00%

Jivraj

% availability

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

GSCR

DCER DSR R

GER

GSRR LSC R

DSPR

pdct category

Fig 9

In Jivraj, the Sun Control Range of Derma Care is available at 50% of shops. Only 31% shops had the Derma Care Enhancement Range and around 12.5% shops stocked Derma Care Skin Repair Range. In the Sun Control Range, LAKME SUN BLOCK CRME AND LOTION & GARNIER SUN CONTROL is available at almost 87.5% shops. Next to them is DERMA CARE SUN CONTROL, which is available at 50% shops. LOTUS SUN CONTROL RANGE is the least available product in Jivraj, which is only12.5%. In the Skin Enhancement Range, DERMA CARE SKIN ENHANCEMENT RANGE is available at maximum 31% outlets. GARNIER ENHANCEMENT RANGE is available at 25% of shops. LOTUS enhancement product is not available at all. In the Skin Repair Range, GARNIER is the leading brand which is available at 19% outlets. DERMA CARE SKIN REPAIR RANGE is available at 13% of shops. Lotus Skin Repair Range is completely out of stock in all the outlets at Jivraj.

43

LSBR

LER LSR R

Paldi Mahalaxmi
1
% availability

0.8 0.6 0.4 0.2

GSCR GSRR DCER GER

0
DSPR

pdct category

Fig 10

The Sun Control Range of Derma Care is available at 62% of the shops. Only 25% shops had the Derma Care Enhancement Range and around 37.5% shops stocked Derma Care Skin Repair Range. In the Sun Control Range, GARNIER SUN CONTROL is available at 100% of shops, following this is LAKME SUN BLOCK CRME AND LOTION which is available at almost 87.5% shops. Next is DERMA CARE SUN CONTROL, which is available at 62.5% shops. LOTUS SUN CONTROL RANGE is the least available product in Paldi, which is only 25%. In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE is available at maximum 50% outlets. DERMA CARE SKIN ENHANCEMENT RANGE & LOTUS enhancement product is available at 25% of shops. In the Skin Repair Range, GARNIER is the leading brand which is available at 50% outlets. DERMA CARE SKIN REPAIR RANGE is available at 37.5% of shops. Lotus Skin Repair Range is available at 25% of shops.

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LS RR LSB R

DS RR

LS CR

LE R

Navrangpura
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

% availability

GSCR

GSRR

DCER

GER

LSC R

DS RR

DSPR

pdct category

Fig 11

The Sun Control Range of Derma Care is available at 78% of shops. Only 22% shops had the Derma Care Enhancement Range and around 44% shops stocked Derma Care Skin Repair Range. In the Sun Control Range, LAKME SUN BLOCK CRME AND LOTION is available at GARNIER SUN CONTROL is available at% of shops, following this is & is available at almost 87.5% shops. Next to that is DERMA CARE SUN CONTROL, which is available at 62.5% shops. LOTUS SUN CONTROL RANGE is the least available product at Navrangpura, which is only 25%. In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE is available at maximum 50% outlets. DERMA CARE SKIN ENHANCEMENT RANGE & LOTUS enhancement product is available at 25% of shops. In the Skin Repair Range, GARNIER is the leading brand which is available at 50% outlets. DERMA CARE SKIN REPAIR RANGE is available at 37.5% of shops. Lotus Skin Repair Range is available at 25% of shops.

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LER LSR R LSB R

Naranpura
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

% availability

DCER DSR R

GSCR

GER

GSRR LSC R

DSPR

pdct category

Fig 12

The Sun Control Range of Derma Care is available at 25% of shops. No shops had the Derma Care Enhancement Range. Only 9% shops stocked Derma Care Skin Repair Range. In the Sun Control Range, LAKME SUN BLOCK CRME AND LOTION is available at 83% shops. GARNIER SUN CONTROL is available at 67% of shops, following this is Derma Care and is available at almost 25% shops. LOTUS SUN CONTROL RANGE is not available at any outlet. In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE is the only brand available. This product is stocked at around 42% shops. Other brand i.e. LOTUS and DERMA CARE is not stocked at all. In the Skin Repair Range, GARNIER is the leading brand which is available at 33% outlets. DERMA CARE SKIN REPAIR RANGE is available at only 8% of shops. Lotus Skin Repair Range is not available at shops.

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LER LSR R LSB R

Sardar Patel
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

% availability

GSCR

GSRR

DCER DSR R

GER

DSPR

pdct category

Fig 13

The Sun Control Range of Derma Care is available at 41% of shops. Derma Care Enhancement Range is available at only 4% shops. No shop stocked Derma Care Skin Repair Range. In the Sun Control Range, LAKME SUN BLOCK CRME AND LOTION is available at 100% shops. GARNIER SUN CONTROL is available at 89% of shops, following this is Derma Care & is available at almost 41% shops. LOTUS SUN CONTROL RANGE is not available at only 4% outlets. In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE is available at 15% outlets, which is highest. DERMA CARE is stocked at only 4% outlets and other brand i.e. LOTUS is not stocked at all. In the Skin Repair Range, GARNIER is the leading brand which is available at 11% outlets. DERMA CARE SKIN REPAIR RANGE & LOTUS is not available.

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LSBR

LSC R

LER LSR R

Raipur
1

% availability

0.8 0.6 0.4 0.2

DCER GSCR GSRR

0
DSPR

DSR R

GER

LSC R

pdct category

Fig 14

The Sun Control Range of Derma Care is available at 60% of shops. Derma Care Enhancement Range is available at only 10% shops. Derma Care Skin Repair Range is available at 13% of shops. In the Sun Control Range, stocking of Derma Care is done at 60% shops which is highest in Raipur. Next to Derma Care is LAKME SUN BLOCK CRME AND LOTION, which is stocked at almost 50% of shops. GARNIER SUN CONTROL is available at 30 % of shops. LOTUS SUN CONTROL RANGE is not available at outlets. In the Skin Enhancement Range, DERMA CARE is available at 10% outlets, which is highest. GARNIER ENHANCEMENT RANGE is stocked at only 3% outlets and other brand i.e. LOTUS is not stocked at all. In the Skin Repair Range, DERMA CARE SKIN REPAIR RANGE is the leading brand which is available at 13% outlets. GARNIER is stoked at merely 3% of outlets & LOTUS is not available at all.

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LSR R LSB R

LER

gulbai Tekra
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
DSPR

% availability

DCER

GSCR

GER

GSRR

LER

pdct category

Fig 15

From the above graph it can be derived that in Gulbai Tekra the sun control range of Derma Care is available in 73% of shops. Only 14% shops had the Derma Care Enhancement range and around 14% shops stocked Dermacare skin repair range. In the sun control range, LAKME SUN BLOCK CRME AND LOTION is available at almost 100% shops. GARNIER SUN CONTROL is also available at 100% shops. Lotus SUN CONTROL is available at only 14% shops, which is the least available product in Gulbai Tekra. In the skin enhancement range, GARNIER LIGHT & GARNIER FAIRNESS products are available at maximum number of shops i.e. 95% shops. After Garnier, DERMACARE SKIN ENHANCEMENT RANGE enhancement product is available at 14% outlets. LOTUS is not available at all. In the Skin Repair Range, which consists of Age Defence and Acne control products, GARNIER again is the leading brand which is available at 95% outlets. DERMACARE SKIN REPAIR RANGE is second most available product i.e. 14%. The brand Lotus is not available.

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LSR R LSB R

LSC R

DS RR

Product Availaility
160 140

No. of shops

120 100 80 60 40 20 0 DC DL DDM DSS DDWM DSLC DAD DAC GSC GAM GDS GWL GEC GAB LG25 L10 L20 L25 L30 L40 L60 LF LAC LSB

pdct category

Fig 16 Looking at the overall market trend, Garnier is the leading brand in all the categories.

In the Sun Control Range, Lakme leads with 87% of market share in the premium category range. Garnier ranks second with 78% of the market share. Next to Garnier is the Derma Care Range with a market share of 56%. Lotus products are available at around 16% of the shops. In the Skin Enhancement category Garnier leads with 48% share. Derma Care ranks second with a 17% share. Lotus lags behind with a mere share of 14%. In the Skin Repair category also Garnier is the market leader with 46% of the market share, followed by Derma Care with 15% share. The least available brand is the Lotus Skin Repair Range.

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LIMITATIONS
Limited to a particular time period
The survey was conducted during the month of June and July, during which the sale of sun control range is maximum. This might be a reason why the sun control range of Derma care was available in majority of outlets. The market forces may have changed with time because of which the results may be different.

Limited to Ahmedabad
Due to time and geographical constraints the Research was limited to the major markets in Ahmedabad only.

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CHAPTER 4

CONCLUSIONS & RECOMMENDATIONS

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CONCLUSIONS
The following are the conclusions from our study: Ad awareness of the Derma Care Range is low with majority of the stocking taking place due to the strong distribution network. The margin provided to retailers is a major factor in deciding the extent of retailer promotion. Derma care, though a newly introduced product, has a substantial amount of stocking in the Ahmedabad market. The brand name of Everyuth plays an important role for this phenomenon. Everyuth Dermacare has a very good distribution channel because of which it is available in all the markets, from higher end markets like Satellite and Vastrapur to a lower end markets like Raipur and Jivraj. A major challenge for Derma Care is that it is a premium brand which caters to people in the premium category, where quality of the products is a crucial factor in deciding brand loyalty and hence brand switching is less frequent. Lakme Sun Block is the most preferred brand in all the areas, because of the brand name Lakme and the cost, which is comparatively less compared to other products in this category. Garnier is the most favored brand after Lakme. It is more popular in higher end markets, like Vastrapur and Satellite. The ad awareness of the Garnier Range is higher than the other products. Lotus is preferred by consumers of the premium category, who are brand loyal and are reluctant to switch to other products. Lotus Herbals Ltd. is mainly involved in print advertisements and does not advertise in the television media. Lotus also pays a very high margin to the retailers, which helps to retain the retailers loyalty. Lotus also provides extra monetary benefits for space and shelf display. The Derma Care Range does not employ such strategies. The margin provided to retailers is lower as compared to that of the competitors. Hence the push strategy is rendered ineffective with the range not being promoted aggressively by the retailers.

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RECOMMENDATIONS
On the basis of our study we would like to put forth the following recommendations:

The Push Strategy should be more implemented in order to increase the market penetration for the Dermacare Range. Retailers Margin should be increased so as to motivate the retailers to push the product. Display of products in strategic stores at high visibility points could be done to improve the movement of the complete range. As the ad-awareness is really low, frequency of the advertisements should be increased in the television and print media so as to increase the ad-recall. Bouts of intensive advertising should be done during specific periods, to keep the brand in the consideration set of consumers. Trial packs and free samples of all the products of the complete range should be introduced so as to facilitate the first-time users. More promotional schemes could be implemented in order to increase the movement of the product. For example: Tie-ups with beauty parlours to organize competitions for the target audience could be a nice promotional scheme.

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GLOSSARY
1. OSV :- Orange Skin Vitalizer 2. WFS :- Walnut Face Scrub 3. CFP :- Cucumber Face Pack 4. FW :- Face wash 5. SSL :- Sun screen Lotion 6. DSPR :- Derma Care sun Protection Range

DC :- Daily Sun block Crme (SPF 30) DL:- Daily Sun block Lotion (SPF 30) DDM:- Derma Care Daily Matte Sun Block Crme DSS:- Derma Care Sensitive Skin Sun Block Lotion

7. DCER : - Derma Care Complexion Enhancement Range DDWM:- Derma Care Day Wear Matte Fairness Lotion DSLC:- Derma Care Skin Lightening Crme

8. DSRR:- Derma Care Skin Repair Range DAD:- Derma Care Age Defence DAC:- Derma Care Acne Control Gel

9. GSCR:-Garnier Sun Control 10. GER:- Garnier Enhancement Range GAM:- Garnier Anti Marks GDS:- Garnier Dark Spot Prevention

11. GSRR:- Garnier Skin Repair Range GWL:- Garnier Wrikle Lift GEC:- Garnier Eye Contour GAB:- Garnier Anti Bacterial clear imperfection

12. LSBR:- Lotus Sun Block Range LG 25:- Lotus Gel SPF 25

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L10:- Lotus Sun Block SPF10 L20:- Lotus Sun Block SPF20 L25:- Lotus Sun Block SPF25 L30:- Lotus Sun Block SPF30 L40:- Lotus Sun Block SPF40 L60:- Lotus Sun Block SPF60

13. LF:- Lotus Fairness 14. LAC:- Lotus Acne Control

15. LSB:- Lakme Sun Block Crme and lotion

56

ANNEXURE

Questionnaire
Data for this study was collected through the interview mode. As a result most of the questions asked to the retailers were open-ended. Hence an unstructured questionnaire was used for our purpose of reference. Questions asked are as under: What are the various brands stocked in the Sun-Protection, Complexion Enhancement and Skin Repair Range? Do you stock the Derma Care Range? If yes, then on what basis i.e. on customers demand or brand name or because of the distribution channel? Have you seen the advertisement of the Derma Care Range? Does it bring out all the special features of the product? Comparing all the major brands i.e. Lakme, Garnier, Lotus and Derma Care in this range, the movement of which brand is the fastest? Rank them. Which strategies are adopted by the various brands for promoting their product? What schemes could help in the better promotion of the Derma Care Range?

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WEBLIOGRAPHY

1. www.zyduscadila.com

2. www.everyuth.com

3. http://www.12manage.com/methods_swot_analysis.html

4. http://mall.coimbatore.com/bnh/everyuth/everyuth.htm

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