MARKET ANALYSIS OF EVERYUTH DERMA CARE RANGE

1
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
2
CONTENTS
Page Acknowledgement Preface List of Figures List of Tables Chapter 1: Introduct
ion About the Company-Zydus Cadila Cadila Healthcare Limited Skin Care Market Sk
in Care Facts Skin Care Product Range Major Competitors Chapter 2 : Strategic Ma
rketing Techniques Study of 4 P’s of the Marketing Mix 4 P’s 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 fo
r the Derma Care Range Chapter 3 : Retailer Analysis of the Derma Care Range Res
earch Objective Research Methodology 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
3
Data Analysis and Interpretation Limitations Chapter 4 : Conclusions And Recomme
ndations Glossary Annexure Webliography
41 51 52 55 57 58
4
ACKNOWLEDGEMENT
Many people have guided and influenced us in preparing this project. First of al
l, we are grateful to Dr. A. H. Kalro, Director, AESPGIBM for giving us an oppor
tunity to experience the corporate way of working and in the process help us lea
rn. Our special thanks to our project guide Mr. Aniruddh Pandharkar, Product Man
ager, CPD and Mr. Abhiroop Chatterjea, Sr. Marketing Executive for their wholehe
arted 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 o
ur faculty members who guided us throughout the project. Lastly we thank our fam
ily members, friends and classmates who supported us.
Lakshmi Nair Varuna Singh
5
PREFACE
It is indeed a happy moment for us to present this project report. Proper care w
as taken while organizing the report so that it would be easy to understand and
comprehend. During the preparation of this project report, all Marketing Researc
h concepts were studied and implemented.
It has been a rich experience to work in a technically advanced environment of Z
ydus 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 comm
enced from 15th May, 2006 and concluded on 15th July, 2006. During this tenure w
e initially studied various aspects of Market Research and then actively partici
pated in the process of Marketing Analysis.
The project report is divided into four sections. These sections are sequenced i
n a way to give a comprehensive idea of work done. Sections encompass of Introdu
ction, Strategic Marketing techniques, and Retailers’ Analysis. The first section
gives a complete overview of the Skin Care Market. The second section gives an o
verview of the Strategic Marketing Techniques. The third and fourth section give
s an overview of the Retailers’ Analysis which helps in drawing the conclusions of
the study conducted and recommends few marketing strategies.
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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 1
2 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 analy
sis Vastrapur area analysis Jivraj area analysis Paldi Mahalaxmi area analysis N
avrangpura area analysis Naranpura area analysis Sardar Patel area analysis Raip
ur area analysis Gulbai Tekra area analysis Overall Ahmedabad market Scenario Pg
.No.
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LIST OF TABLES
Table 1 Table 2 Table 3 Revenue Segmentation for the year Jan 05-06 Everyuth Pro
duct 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
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CHAPTER 1
INTRODUCTION
9
ABOUT THE COMPANY- ZYDUS CADILA
The dawn of 50 s ushered in an era of awakening. Having broken free from the bon
dage of dormant history, a need arose for the country to be self-sufficient in a
ll spheres
Healthcare at this time was the sole domain of a few pharmaceutical giants. Coup
led 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 mo
st 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 co
ntribute his share by setting up a pharmaceutical company.
By the early 1990s, Cadila was ranked the third largest pharmaceutical company i
n India.(ORG -December 1991, 1992, 1993). The decade also marked the beginning o
f a new economic framework and a shift in government policies. To thrive in this
evolving environment, it became imperative for Cadila to restructure and stream
line its business operations. Thus in 1995, Cadila Laboratories emerged as Cadil
a Healthcare under the aegis of the Zydus group.
Moving beyond pharmaceuticals, the concept of total healthcare now forms the com
mercial heart of the group s operations and activities.
Spearheading the combined activities of the group, as a whole new identity Zydu
s . 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.
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Zydus today has a leadership position in key segments like cardio vascular, gast
ro intestinal and women’s healthcare and is amongst top three in the respiratory,
pain management and anti-infective segments. It also is a leading producer of ni
che and complex bulk drugs. Some of the well-known brands of Zydus Cadila includ
e Aten - the largest hypertensive brand in the country, Ocid, Amlodac, Atorva, P
antodac, GRD, Penegra, Nucoxia, Ciprobid, Dexona, Primolut-N, Dulcolax, Enew, Su
gar Free, Diane 35and Mifigest among others.
In recent years, Zydus has made an aggressive entry in the regulated global gene
ric market with operations in France and US, apart from the 25 other emerging ma
rkets worldwide. Zydus is aiming to be one of the top 10 global generics compani
es by 2010 and a global research driven company by 2020.
Some of the alliances that have been successfully forged by Zydus include allian
ce with Mallinckrodt, a leading US generic company, Zamban Group of Italy. JV wi
th Altana Pharma of Germany and Mayne Pharma of Australia, as well as the acquis
ition of companies like German Remedies in 2001, (which was the largest M&A in I
ndian 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 manag
ement. Zydus Alidac -- a specialty division, which focuses on the gastrointestin
al segment. Zydus Medica -- a specialty division, which focuses on the cardiovas
cular segment. Zydus Biogen -- a specialty division, which focuses on the biolog
icals. Zydus Neurosciences -- a specialty division, therapy areas include anti-d
epressants, anticonvulsants, anti-psychotics and tranquilizers.
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Zydus Vaccicare -- a division that exclusively markets vaccines like Vac Typh an
d HB Vac. Consumer Products Division -- a division that has a significant presen
ce in OTC and Skin care, with its basket of brands like Sugar Free (Low calorie
sugar substitute), Sugar Free D’lite (low calorie soft drink), Dietrim (Fat Soaker
) and EverYuth range of skin specialities. Zydus Pathline -- a division that man
ufactures and markets diagnostic reagents and instruments for the pathological l
aboratories, blood banks and hospitals. Micro marketing Division -- a division t
hat focuses on generic drug marketing. Phytosurge Division -- a division that ma
rkets herbal remedies for cold and cough, liver disorders, respiratory tract dis
orders, GI tract disorders and other general disabilities. Bulk Drugs -- a key s
trategic business unit of Zydus Cadila that manufactures a range of modern bulk
actives in the therapeutic areas of anti-ulcerants, psycholeptic drugs, antidepr
essants, 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 man
agement.
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 o
f facilities to help them grow as professionals in various facets of life. Recog
nizing the fact that a happy workforce is a productive workforce, Zydus Cadila e
nsures the well being of all its members.
A fact underlined in its core belief We build People to build our Business.
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CADILA HEALTHCARE LTD.
Cadila Healthcare Limited’s 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 a
lso 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 fru
itful ventures.
Consumer Products Division
• Sugar Free • Sugar Free - D’lite • EverYuth Orange Peel Off Skin Vitalizer • EverYuth Wa
lnut & Apricot Facial Scrub • EverYuth Clearskin Complexion Mask • EverYuth Sunblock
Lotion • EverYuth Exfoliating Face Wash • Complexion Crème
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 su
gar substitute, Sugar Free D’lite - a low calorie soft drink mix and Dietrim - a f
at soaker.
In the dietetic segment, Sugar Free - a healthy low cal sugar substitute, is ava
ilable in pellet and powder form. It is a leader in the low calorie sweetener ma
rket with more than
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70% market share. Sugar Free D’lite, when introduced was the first low calorie sof
t drink in the Indian market. Offering 85% lesser calories than all other soft d
rinks, Sugar Free D’lite is available in 5 flavors namely Orange, Lemon, Passion F
ruit and Mango. Dietrim was launched in the weight management segment. It is a u
nique first of its kind ‘fat soaker in the Indian market. Made from a rare Japane
se 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 fat
s consumed and also helps to cut down on your fat and calorie intake. This produ
ct is available in select markets.
EverYuth is a leading skincare brand of the Consumer Division of Cadila Healthca
re Limited – the flagship company of Zydus Group.
EverYuth occupies a unique distinction of being a skincare brand from a healthc
are company . Enriched with the power of natural ingredients, EverYuth has a str
ong presence in advanced skincare segments like soap-free Face Washes, Face Mask
s, 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 gr
owing Face Wash brand. Its brand Orange Skin Vitaliser was the first peel-off ma
sk to be launched in India and since then it continues to hold a leadership posi
tion in this segment. Specially designed to fulfill every woman’s skincare needs,
the EverYuth range also includes products like Skin Essential Moisturising Lotio
n & Crème, Sun Block Lotions, Face Cleanser etc. The percentage contribution of th
e 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:
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Product
Variant/sku
SKU contrib. to family
Family contrib. to total cosmetic sales
For
month Till
month For
month Till
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/sk
u 60g 120ml crème 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%
contrib. 19% 13% 57% 10%
contrib. 24%
contrib. 26%
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 EverY
uth Derma Care range has been specially created to suit Indian skin & weather co
nditions. 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 pr
oblems of darkening, pigmentation, acne & aging, which are triggered by the sun.
Understanding your special skincare needs, EverYuth Derma Care range of specialt
y products are classified into three categories - Protection, Enhancement & Repa
ir.
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SKIN CARE MARKET
India is one of the fastest growing markets for skin care products, and the targ
et of most cosmetic majors is women between 18-35, with a monthly income of Rs 1
0,000 and above.
Indian cosmetic industry is heading for a complete makeover, rediscovering the l
ongforgotten herbal formulas and beauty secrets. Those in the business say the g
oing 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 c
ent. 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 leadi
ng players in this industry are Hindustan Lever Ltd., Ponds India Ltd., Lakme, E
mami Ltd, Cavincare Ltd, Godrej Consumer Products Ltd., Lotus Herbals India Ltd.
, Procter and Gamble Hygiene and Healthcare Ltd., Cadila Healthcare Ltd. The lat
est 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 r
oles. 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 & inten
sify sun exposure, because of which you can get sunburned even when you cover yo
ur 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 chi
ef 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 yo
ur 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, wh
ich 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 a
ctually 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 c
reams only superficially lighten your complexion, without treating your skin fro
m within. Which is why, you need enhanced skin lighteners to keep your skin clea
r & flawless.
Why do we need skin repair?
Most common skin problems can be traced to the Sun Extreme hot & humid weather c
onditions of India, along with the sun s harmful UVA & UVB rays have been observ
ed to be the primary cause of two main common problems that women face inevitabl
y - Wrinkles & Acne.
The sun is the single most important factor responsible for causing premature ag
ing 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, l
eading 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 protec
tion for more than six hours. A blend of internationally proven sun block agents
and natural active ingredients that soothes the skin, Everyuth Dermacare sun bl
ocks are formulated to be absolutely non greasy and completely sweat resistant.
This range consists of:
Daily Sun Block Crème- SPF 30 (for dry skin) Daily Sun Block Lotion- SPF 30 (for a
ll skin types) Sensitive Skin Sun Block Lotion- SPF 15 (for sensitive skin and c
hildren) Daily Matte Sun Block Crème- SPF 30 (for all skin types)
Fig 1
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Derma Care Complexion Enhancement Range
Everyuth Derma Care’s Enhancement Range consists of two unique breakthrough formul
ations that will give your complexion a matte fair radiance, while also providin
g sun protection. Enriched with internationally proven active ingredients, these
specialty products also help in treating skin problems of pigmentation and blem
ishes, from within. When used in conjunction they will give you a flawless glowi
ng complexion. It consists of:
Daywear Matte Fairness Lotion- SPF 25 (for all skin types) Light And Clear Skin
Lightening Crème (for pigmented and blemished skin)
Fig 2
21
Derma Care Skin Repair Range
Everyuth Derma Care Repair Range consists of two unique advanced formulations th
at help to undo the damages and restore the natural health of skin. Enriched wit
h internationally acclaimed active ingredients, these products empower to regain
beauty and self confidence. This range consists of:
Age Defence Anti-Aging Crème (for matured and wrinkled skin) Acne Contol Gel (for
acne prone skin)
Fig 3
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MAJOR COMPETITORS
Dermacare, the newly introduced range is mainly targeted at the higher middle cl
ass and the creamy layer of the society. Hence it falls in the higher price rang
e. Therefore its major competitors are Garnier skin care range, Lotus herbals In
dia, 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 Prevent
ion Cream Garnier Wrinkle Lift Garnier Eye Contour Gel Garnier Pure (Anti bacter
ial cream)
The Lotus Herbals Skin Care Range consists of: ▪ ▪ ▪ ▪ Lotus Sun Protection Gel (for sen
sitive skin) Lotus Sun Protection Cream (SPF 10, 20, 25, 30, 40, 60) Lotus Fairn
ess Cream Lotus Acne Control Cream
The Lakme Sun Expert Range consists of: ▪ ▪ ▪ ▪ Lakme Sun Expert Sunscreen Lotion (SPF 1
5 - for all skin types) Lakme Sun Expert Sunblock (SPF 25 – for sensitive skin) La
kme Sun Expert Sunscreen Souffle (SPF 20 – for oily skin) Lakme Skin Brightening G
el
23
CHAPTER 2
STRATEGIC MARKETING TECHNIQUES
24
STUDY OF 4 P’S OF THE MARKETING MIX
The major marketing management decisions can be classified in one of the followi
ng four categories: ▪ ▪ ▪ ▪ Product Price Place (distribution) Promotion
These variables are known as the marketing mix or the 4 P s of marketing. The te
rm "marketing mix" became popularized after Neil H. Borden published his 1964 ar
ticle, The Concept of the Marketing Mix. The ingredients in Borden s marketing m
ix included product planning, pricing, branding, distribution channels, personal
selling, advertising, promotions, packaging, display, servicing, physical handl
ing, and fact finding and analysis.
These four P s are the parameters that the marketing manager can control, subjec
t to the internal and external constraints of the marketing environment. The goa
l is to make decisions that center the four P s on the customers in the target m
arket 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. He
re are some examples of the product decisions to be made:
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Brand name Functionality Styling Quality Safety Packaging Repairs and Support Wa
rranty Accessories and services
Price Decisions
Some examples of pricing decisions to be made include:
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Pricing strategy (skim, penetration, etc.) Suggested retail price Volume discoun
ts and wholesale pricing Cash and early payment discounts Seasonal pricing Bundl
ing Price flexibility Price discrimination
26
Distribution (Place) Decisions
Distribution is about getting the products to the customer. Some examples of dis
tribution decisions include:
▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Distribution channels Market coverage (inclusive, selective, or exclusive distri
bution) Specific channel members Inventory management Warehousing Distribution c
enters 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 pr
oduct with the goal of generating a positive customer response. Marketing commun
ication decisions include:
▪ ▪ ▪ ▪ ▪ ▪
Promotional strategy (push, pull, etc.) Advertising Personal selling & sales for
ce Sales promotions Public relations & publicity Marketing communications budget
27
4 P’S OF THE DERMACARE RANGE
Product
The term ‘product’ for the Derma Care Range and the Clear Skin Complexion Mask inclu
des:
Product
SKU
Daily Sunblock Crème 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 Crème SPF 30
50 g, 100 g
Daywear Matte Fairness Lotion SPF 25
100 g
Light & Clear Skin Lightening Crème
50 g
Age Defence Anti-Aging Crème
50 g
Acne Control Gel
50 g
Table 2
28
Price
The prices of the various products of the Dermacare Range are follows:
Product
SKU
MRP (Rs.) 90
Daily Sunblock Crème 50 g (SPF 30) Daily Sunblock Crème 100g (SPF 30) Daily Sunblock
Lotion 50 ml (SPF 30) Daily Sunblock Lotion 100 ml (SPF 30) Sensitive Skin Sunb
lock 100ml Lotion (SPF 15) Daily Matte Sunblock 100 g
175
85
150
125
195
Crème (SPF 30) Daily Matte Sunblock 50 g 110
Crème (SPF 30) Daywear Matte Fairness 100 g Lotion (SPF 25) Light & Clear Crème 50 g
90 150 150
Age Defense Anti-Aging 50 g Crème Acne Control Gel 50 g
Table 3
75
29
Place
This decision most importantly constitutes of the distribution channels. The var
ious 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’ str
ategy for its product.
Leading actress and model Perizaad Zorabian is the brand ambassador for their ra
nge. They have aired two advertisements, one comprising the entire range and one
showing the Dermacare Sun Protection Range, on all the major television channel
s and print media. They have a well developed and well connected personal sellin
g and sales force.
Under the public relations and publicity campaign, they have an Everyuth Club wh
ich 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 Ever
yuth 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 ap
plicable to either the corporate level or the business unit level and frequently
appears in marketing plans. SWOT stands for strengths, weaknesses, opportunitie
s, 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 o
f 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 valu
e. 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 Exclusive access to natural resour
atents New, innovative product or service Location of your business
Weaknesses ▪ ▪ ▪ ▪ ▪ Lack of marketing expertise Undifferentiated products Location of you
r company Competitors have superior access Poor quality of goods or services Dam
aged reputation
Cost advantage through proprietary ▪ know-how Quality processes and procedures Str
ong brand or reputation
Opportunities • Developing Internet) market (China,
Threats the ▪ ▪ A new competitor in your own house Price war Competitor has a new, i
nnovative service New regulations Increased trade barriers A potential new taxat
ion on your product trade
• Mergers, joint ventures or strategic ▪ alliances • Moving into new attractive market
▪ segments • A new international ▪ market ▪
Loosening of regulations • Removal barriers • A market that is led by a weak competi
tor. of international
34
Confrontation Matrix
A tool to combine the internal factors with the external factors is the Confront
ation 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 conduc
ting SWOT analysis. SWOT analysis should distinguish between where your organiza
tion 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 S
WOT 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 ma
rgin Lack of push strategy
Opportunities
Threats
▪ ▪ ▪
Growing market due to improving ▪ economic conditions Untapped potential in the sk
in care market Technical innovations ▪
Existing leaders Competition from MNC’s
Table 4
37
After combining the internal and external factors in the Confrontation Matrix, t
he strategy best suited for the Derma Care Range is the Defensive Strategy, wher
ein a close surveillance of the competition must be administered.
Improving economic conditions have led to larger and growing markets, due to whi
ch there is a great scope for the skin care industry. Hence opportunities are im
mense 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 outl
ets in Ahmedabad To find out the sale or movement of the Everyuth Dermacare Rang
e To evaluate the impact of advertisement on the movement of the product To stud
y the competition
2. Research methodology:
a. Time Scope b. Methods of Data Collection: ▪ ▪ Research Design Sample Design - Sam
ple Type - Sample Size ▪ Data Collection Sources - Primary Source - Secondary Sour
ce c. Geographical Scope: Retailers (Interview mode) Internet, library, newspape
rs 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
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% DSP
R
% availability
G SCR
G ER
G SRR
DSRR
LSCR
LER
LSRR
pdct category
Fig 7
From the above graph it can be derived that in satellite the sun control range o
f Derma Care is available in 62% of shops. Only 19% shops had the Derma Care Enh
ancement Range and around 14% shops stocked Derma Care Skin Repair Range. ▪ In the
sun control range, LAKME SUN BLOCK CRÈME AND LOTION is available at almost 100% s
hops. Next to LAKME is GARNIER SUN CONTROL i.e. 86%. LOTUS SUN CONTROL is availa
ble at 47% shops. ▪ In the Skin Enhancement Range, GARNIER LIGHT & GARNIER FAIRNES
S products are available at maximum number of shops i.e. 81% shops. After Garnie
r, LOTUS enhancement product is available at 48% outlets. DERMA CARE SKIN ENHANC
EMENT RANGE is available at 19% shops ▪ In the Skin Repair Range, which consists o
f Age Defence and Acne Control products, GARNIER again is the leading brand whic
h is available at 81% outlets. Lotus repair range is second most available produ
ct 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
Vastrapur
100.00% % availability 80.00% 60.00% 40.00% 20.00% DCER 0.00% DSPR GSCR GER GSRR
DSRR LSCR LER LSRR LSBR
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 Rang
e. ▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION and GARNIER SUN CONT
ROL are available in similar number of shops i.e. around 94% shops. LOTUS SUN CO
NTROL is available at only 53% shops, which is the least available product in Su
n Block Range in Vastrapur. ▪ In the Skin Enhancement Range, GARNIER products are
available at 100% of shops. After Garnier, LOTUS enhancement product is availabl
e at 65% outlets. DERMA CARE SKIN ENHANCEMENT RANGE is available at only 29% sho
ps, 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 Rep
air Range is the second most available product i.e. 35%. The brand which is leas
t stocked in this range is, DERMA CARE SKIN REPAIR RANGE. It is available in onl
y 29% of shops.
42
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% % a
vailability
Jivraj
DCER
GSCR
GER
GSRR
DSPR
DSRR
LSCR
LER
LSRR
pdct category
Fig 9
In Jivraj, the Sun Control Range of Derma Care is available at 50% of shops. Onl
y 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 CRÈME 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 RANG
E is the least available product in Jivraj, which is only12.5%. ▪ In the Skin Enha
ncement Range, DERMA CARE SKIN ENHANCEMENT RANGE is available at maximum 31% out
lets. GARNIER ENHANCEMENT RANGE is available at 25% of shops. 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. LOTUS enha
ncement product is not
43
LSBR
Paldi Mahalaxmi
1 % availability 0.8 0.6 0.4 0.2
DCER G SCR G ER G SRR DSPR DSRR
0
LSCR
LER
LSRR
pdct category
Fig 10
The Sun Control Range of Derma Care is available at 62% of the shops. Only 25% s
hops had the Derma Care Enhancement Range and around 37.5% shops stocked Derma C
are Skin Repair Range. ▪ In the Sun Control Range, GARNIER SUN CONTROL is availabl
e at 100% of shops, following this is LAKME SUN BLOCK CRÈME AND LOTION which is av
ailable at almost 87.5% shops. Next is DERMA CARE SUN CONTROL, which is availabl
e at 62.5% shops. LOTUS SUN CONTROL RANGE is the least available product in Pald
i, which is only 25%. ▪ In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE i
s available at maximum 50% outlets. DERMA CARE SKIN ENHANCEMENT RANGE & LOTUS en
hancement product is available at 25% of shops. ▪ In the Skin Repair Range, GARNIE
R 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 2
5% of shops.
44
LSBR
Navrangpura
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
% availability
DCER
GSCR
GER
GSRR
DSPR
DSRR
LSCR
LER
LSRR
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 Sk
in Repair Range. ▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION is ava
ilable 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 i
s available at 62.5% shops. LOTUS SUN CONTROL RANGE is the least available produ
ct at Navrangpura, which is only 25%. ▪ In the Skin Enhancement Range, GARNIER ENH
ANCEMENT RANGE is available at maximum 50% outlets. DERMA CARE SKIN ENHANCEMENT
RANGE & LOTUS enhancement product is available at 25% of shops. ▪ In the Skin Repa
ir 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 i
s available at 25% of shops.
45
LSBR
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
GSCR
GER
GSRR
DSPR
DSRR
LSCR
LSRR
LER
pdct category
Fig 12
The Sun Control Range of Derma Care is available at 25% of shops. No shops had t
he Derma Care Enhancement Range. Only 9% shops stocked Derma Care Skin Repair Ra
nge. ▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION is available at 83
% shops. GARNIER SUN CONTROL is available at 67% of shops, following this is Der
ma Care and is available at almost 25% shops. LOTUS SUN CONTROL RANGE is not ava
ilable at any outlet. ▪ In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE i
s the only brand available. This product is stocked at around 42% shops. Other b
rand 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 av
ailable at shops.
46
LSBR
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
DCER
GSCR
GER
GSRR
DSPR
DSRR
LSCR
LER
LSRR
pdct category
Fig 13
The Sun Control Range of Derma Care is available at 41% of shops. Derma Care Enh
ancement Range is available at only 4% shops. No shop stocked Derma Care Skin Re
pair Range. ▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION is availabl
e at 100% shops. GARNIER SUN CONTROL is available at 89% of shops, following thi
s is Derma Care & is available at almost 41% shops. LOTUS SUN CONTROL RANGE is n
ot available at only 4% outlets. ▪ In the Skin Enhancement Range, GARNIER ENHANCEM
ENT RANGE is available at 15% outlets, which is highest. DERMA CARE is stocked a
t 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. DE
RMA CARE SKIN REPAIR RANGE & LOTUS is not available.
47
LSBR
Raipur
1
% availability
0.8 0.6 0.4 0.2
DCER GSCR GER GSRR DSPR DSRR
0
LSCR
LER
LSRR
pdct category
Fig 14
The Sun Control Range of Derma Care is available at 60% of shops. Derma Care Enh
ancement Range is available at only 10% shops. Derma Care Skin Repair Range is a
vailable at 13% of shops. ▪ In the Sun Control Range, stocking of Derma Care is do
ne at 60% shops which is highest in Raipur. Next to Derma Care is LAKME SUN BLOC
K CRÈME AND LOTION, which is stocked at almost 50% of shops. GARNIER SUN CONTROL i
s available at 30 % of shops. LOTUS SUN CONTROL RANGE is not available at outlet
s. ▪ 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 br
and 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.
48
LSBR
gulbai Tekra
100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% DSP
R
% availability
DCER
GSCR
GER
GSRR
DSRR
LSCR
LER
LSRR
pdct category
Fig 15
From the above graph it can be derived that in Gulbai Tekra the sun control rang
e 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 t
he sun control range, LAKME SUN BLOCK CRÈME AND LOTION is available at almost 100%
shops. GARNIER SUN CONTROL is also available at 100% shops. Lotus SUN CONTROL i
s available at only 14% shops, which is the least available product in Gulbai Te
kra. ▪ In the skin enhancement range, GARNIER LIGHT & GARNIER FAIRNESS products ar
e 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 a
nd 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.
49
LSBR
Product Availaility
160 140
No. of shops
120 100 80 60 40 20 DC DL DDM DSS DDWM DSLC DAD DAC GSC GAM GDS GWL GEC GAB LG25
L10 L20 L25 L30 L40 L60 LF LAC LSB 0
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 ca
tegory 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 availabl
e 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 ma
rket share, followed by Derma Care with 15% share. The least available brand is
the Lotus Skin Repair Range.
50
LIMITATIONS
▪ Limited to a particular time period
The survey was conducted during the month of June and July, during which the sal
e of sun control range is maximum. This might be a reason why the sun control ra
nge of Derma care was available in majority of outlets. The market forces may ha
ve 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 m
arkets in Ahmedabad only.
51
CHAPTER 4
CONCLUSIONS & RECOMMENDATIONS
52
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 distr
ibution 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 marke
ts, 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 prod
ucts 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, bec
ause 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 prefe
rred 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 adv
ertisements and does not advertise in the television media. Lotus also pays a ve
ry high margin to the retailers, which helps to retain the retailers’ loyalty. Lot
us 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 rendere
d ineffective with the range not being promoted aggressively by the retailers.
▪ ▪
▪
▪
▪
▪
▪
53
RECOMMENDATIONS
On the basis of our study we would like to put forth the following recommendatio
ns:
▪
The ‘Push Strategy’ should be more implemented in order to increase the market penet
ration for the Dermacare Range.
▪ ▪ ▪
Retailer’s 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 r
eally 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 t
he 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 sch
eme.
54
GLOSSARY
1. OSV :- Orange Skin Vitalizer 2. WFS :- Walnut Face Scrub 3. CFP :- Cucumber F
ace Pack 4. FW :- Face wash 5. SSL :- Sun screen Lotion 6. DSPR :- Derma Care su
n Protection Range • • • •
DC :- Daily Sun block Crème (SPF 30) DL:- Daily Sun block Lotion (SPF 30) DDM:- De
rma Care Daily Matte Sun Block Crème DSS:- Derma Care Sensitive Skin Sun Block Lot
ion
7. DCER : - Derma Care Complexion Enhancement Range • • • • DDWM:- Derma Care Day Wear M
atte Fairness Lotion DSLC:- Derma Care Skin Lightening Crème
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
nti 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
55
• • • • • •
L10:- Lotus Sun Block SPF10 L20:- Lotus Sun Block SPF20 L25:- Lotus Sun Block SP
F25 L30:- Lotus Sun Block SPF30 L40:- Lotus Sun Block SPF40 L60:- Lotus Sun Bloc
k SPF60
13. LF:- Lotus Fairness 14. LAC:- Lotus Acne Control 15. LSB:- Lakme Sun Block C
rème and lotion
56
ANNEXURE
Questionnaire
Data for this study was collected through the interview mode. As a result most o
f the questions asked to the retailers were open-ended. Hence an unstructured qu
estionnaire was used for our purpose of reference. Questions asked are as under:
• What are the various brands stocked in the Sun-Protection, Complexion Enhanceme
nt and Skin Repair Range? • Do you stock the Derma Care Range? If yes, then on wha
t basis i.e. on customers’ demand or brand name or because of the distribution cha
nnel? • 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. La
kme, 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?
57
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
58