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A STUDY ON THE AYURVEDIC HAIR OIL MARKET IN KERALA WITH

SPECIAL REFERENCE TO HERBS & BERRIES HAIR OIL

Summer Internship Report

Submitted To

AMRITA VISHWA VIDYAPEETHAM

In partial fulfilment of the requirements for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

ASWIN RADHAKRISHNAN

AM.BU.P2MBA14015

UNDER THE GUIDENCE OF

Prof. SOFI DINESH

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DECLARATION

I, Aswin Radhakrishnan, a second year student of Amrita School of Business

(Amritapuri), Amrita Vishwa Vidyapeetham, hereby declare that the project

titled, “A study on the Ayurvedic Hair Oil market in Kerala with special reference

to Herbs & Berries Hair Oil” at HLL Lifecare Limited, Poojappura, Trivandrum has

been done by me under the guidance of Mr. Sajeev T, Deputy Manager

(Logistics), HLL Lifecare Limited and Prof. Sofi Dinesh, Amrita School of Business.

This project is done as part of academic curriculum of MBA program (20142016),

Amrita School of Business. I also declare that this project has not been

submitted, fully or partially for the award of any other degree, diploma, title or

recognition earlier.

Aswin Radhakrishnan

Date:

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ACKNOWLEDGEMENT

I thank God The Almighty, for all His blessings and for helping me reach my

goals one by one.

My warm regards and thanks to faculty guide Professor Sofi Dinesh who guided

me throughout this project from college side with timely reminders and for

aiding me to be on track and complete the project on time.

I crossed through numerous leaps and bounds before finishing this project for

HLL Lifecare Limited. I worked happily with the great internal and external

support of all to complete this project. I extend my heartfelt thanks to Shri Vinod

.G. Pillai, Associate Vice-President (CTD & SD) for granting me the opportunity

to do my internship with HLL Lifecare, for his blessings and for allotting me a very

helpful company mentor. My special thanks to company mentor Mr. Sajeev T,

who advised me on every aspect related to the project by giving clarification,

spending time to explain things patiently and providing me with valuable

information. I thank my mom who took good care of me and assisted me in my

work. Completion of this task is not the lonely effort of me but also includes

many people from outside such as my friends, my mother’s colleagues and so

on. Last but not the least, I thank my close friend Sreeraj Jayaraj and his father

Mr. Jayaraj for being there for me during the course of this project.

I extent this opportunity to thank each and every one of them.

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CONTENTS

INTRODUCTION

5

HAIR OIL INDUSTRY

6-10

COMPANY PROFILE

11-18

ABOUT HERBS & BERRIES

19

RESEARCH OBJECTIVES

20

SCOPE OF STUDY

20

RESEARCH METHODOLOGY

21

PRIMARY DATA ANALYSIS

22-37

LIMITATIONS

38

CONCLUSION

39-40

SUGGESTIONS

41-42

BIBLIOGRAPHY

43-44

QUESTIONNAIRE

45-47

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INTRODUCTION

Marketing research is the systematic and objective identification, collection,

analysis, dissemination and use of data for the purpose of assisting management

in decision making related to the identification and solution of problems in

marketing.

The Project has been prepared aiming at a study on the Ayurvedic Oil market in

Kerala, and to know where does Herbs & Berries Hair Oil stand among other hair

oil brands.

This project report is based on the survey conducted to track the brand

perception and attitude of Ayurvedic hair oil buyers in Kerala. The sample size

for this market research was a total of 1500 (500 each from Trivandrum,

Ernakulam and Calicut) taken randomly, including various age group, income

and profession.

To understand and analyse the marketing mix for leading brands of Ayurvedic

hair oils, I conducted a marketing research with the help of the primary data

collected.

During the study I met with different customers from different parts of Kerala

and got questionnaires filled by them and collected data for the marketing

research to study various parameters and analysed it

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INDIAN HAIR OIL INDUSTRY

Unlike shampoos or hair colours, which are products relatively new to the Indian

psyche, the usage of hair oil is a deeply ingrained habit with Indian consumers.

Therefore, this is one product where the major players do not have to fight

either monetary or psychological barriers to usage. Hair oiling is an age-old

traditional habit of Indians. Hair oil is perceived to provide benefits of

nourishment, strengthening hair, faster and better growth and reducing the

problem of falling hair. Some consumers perceive that massaging hair oil has a

cooling impact on the head. It also has a cosmetic appeal in terms of hair styling,

as hair remain straight, soft and shining after applying oil. Coconut oil is very

popular in the south. In north people use coconut oil as well as some other oil

such as rapeseed, sesame, etc. Hair oil is primarily used as a prewash nourisher.

Some people also use hair oil after bath as a conditioner. The major positioning

platforms for hair oil are purity, hair nourishing and more recently, non- greasy

look. Coconut oil and perfumed oil accounts for about 65% and 35% of market

in volume terms.

Hair oils are composed of oils of vegetable origin as a base blended with small

quantities of perfumes. Vegetable oils commonly used are coconut oil, castor oil

and sesame oil. Hair oils are also coloured with a view to characterizing different

brands and also rendering appeal. Being an item of mass consumption and in

view of essentially simple nature of operations, a hair oil unit is an attractive

project proposition for budding entrepreneurs. Ayurvedic hair oil consists of

herbal extracts in hair oil base, like bringaraj, amala brahmi hair oil etc.While

hair oils are used both by the male and female population, its uses amongst

females is comparatively more than with males. It may be conservatively

assumed that about 80% of the female and 50% of the male population would

use hair oils regularly

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Consumer Awareness and Penetration

Hair oil is an everyday habit with about 50% of the population. Hair oiling, a

peculiarly Indian habit, is extremely popular in urban as well as rural India.

Penetration of hair oil is 87% at all India level and is almost evenly distributed in

urban and rural areas. While penetration in urban areas is marginally higher at

90.2%, the same closely follows at 85.8% in rural areas. In urban areas,

penetration is higher in small towns (0.1-0.5m population) at 91.8% compared

to medium and large town where it is 89.5-89.9%.Awareness about hair oil is

over 90% in rural as well as urban areas.

Market size

The hair oil market is currently estimated at INR 45 billion, 48 %( Rs.3204 crore)

of which is coconut oil market. The market has been growing at around 3-4% in

volume terms and 6-7%pa in value terms. Market growth, although significantly

lower than the shampoo market, is impressive, as penetration is already high. In

fact, this growth rate has been maintained with strong marketing aggression by

leading players in the segment.

Growth

There are several consumers who use coconut oil in cooking (especially in the

south), and conversely other edible oil classified as cooking medium (for e.g.

castor oil) is used for hair care also. Therefore, the actual size of the oil market

should be larger than what is estimated on the basis of branded hair oils. The

current rate of growth of hair oil by value is 20% and current rate of growth by

volume is 12.5%. During the last few years, several product variants, such as non-

sticky hair oil, value added hair oil, etc. have become very popular. These

variants are growing at a much faster pace, compared to the pure coconut hair

oil segment.

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Hair Oil Categories

There are three main categories of hair oil in India:

The Light Hair Oil segment has experienced significant growth in recent years as

consumers opt for lighter, more modern hair oil products. The light hair oil

segment recorded sales of Rs.6,828 million in 2009 according to the Nielsen

Retail Audit Report. Light hair oil is an urban dominated segment primarily due

to its comparatively high cost & is more geographically concentrated, in the

northern states of Punjab, Delhi, Uttar Pradesh and Rajasthan, due to higher

disposable incomes and the propensity of consumers to try new products. The

northern regions accounted for approximately 52% of sales volumes and grew

by 10% (volume growth) in FY 2009-10 according to the Nielsen Retail Audit

Report.

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The Heavy Amla Hair Oil segment has seen strong growth in recent years. The

heavy amla hair oil market is primarily an urban driven market and tends to be

geographically concentrated in the northern parts of the country. The heavy

amla hair oil segment recorded sales of Rs.7, 370 million in FY 2009-10,

representing a growth rate of 4.7% from FY 2008-09, according to the Nielsen

Retail Audit Report.

Cooling Oils have emerged as an important segment in the Indian hair oil

market. Cooling oils are hair oils meant for cooling the scalp during the harsh

summer months. The ingredients in the cooling oils cause immediate relief by

cooling the scalp. The CAGR of the category has been 20% over the last 5 years.

The cooling oil category is now nearly Rs. 7,000 million in the financial year

ended March 31, 2010.

MAJOR HAIR OIL MANUFACTURERS IN INDIA

MARICO - is a leading FMCG Indian Manufacturer providing consumer products

and services in the areas of Health and Beauty. During 2009-10, the company

generated a Turnover of about Rs.26.6 billion, in respect of its food, hair care

and skin care related activities. The organisation holds a number of brands viz.

Parachute, Saffola, Sweekar, Hair&Care, Nihar, Shanti, Mediker, Revive, Manjal,

Kaya Skin Clinic, Aromatic, Fiancee, HairCode, Caivil, Code 10 and Black Chic. The

major brands of Marico holding significant market share are Parachute and

Saffola. Parachute is essentially coconut oil. The other sub brands of Parachute

are Nihar, Uttam and Oil of Malabar which are also coconut oils. It established a

plant at Kanjikode, Palghat to manufacture ‘Parachute Coconut Oil’. It also

manufactures hair care products such as Coconut Oil, Hair Oils & Anti Lice

Treatment solution, which are marketed under the brand names of Parachute,

Hair and Care & Oil of Malabar. Among all the products offered by Marico, the

most popular item is perhaps ‘Parachute coconut oil’. This unique product is

manufactured from high grade coconuts and helps users in all their hair related

ailments.

BAJAJ Corp. – Bajaj Corp Ltd is one of India’s leading FMCG Company with major

brands in Hair care category. It is one of the oldest business houses of the

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country. Bajaj Corp Ltd is part of Shishir Bajaj Group of companies. Brahmi Amla

Hair oil is one of the brands with longest heritage in India from the house of Bajaj

and has been a leading player in the Amla market for over 75 years. A hugely

trusted brand with a very loyal consumer base, today it is among the top 3

brands in its category. Over the years, Bajaj Brahmi Amla has withstood severe

competition but managed to retain its ground due to its superior quality. The

different hair oil products that the company offers are Almond drops, Brahmi

Amla, Amla Shikakai & Jasmine hair oil.

DABUR INDIA LIMITED – has marked its presence with significant achievements

and today commands a market leadership status. Dabur Amla Hair Oil is India’s

trusted hair oil. It contains the natural goodness of Amla (Indian gooseberry).

Dabur Amla Hair Oil is today the largest hair oil brand in the country with over

35 million consumers. Aster hair oil brands are Dabur- Ayurvedic healthcare

products & Vatika – Premium hair care.

EMAMI LTD. – the flagship company of the Group, is a Rs 1100 crore business

entity, a leading player in the personal and healthcare consumer products

industry in India engaged in manufacturing and marketing of health, beauty and

personal care products that are based entirely on ayurvedic formulation. Emami

Limited has over 30 brands under its portfolio. By repeatedly outperforming the

industry standard, Emami Ltd has maintained a CAGR of 27% over the last few

years. Himani Navratna hair oil is one of the flagship brands of Emami Ltd.

Navratna oil is among the top selling brands in India. Its traditional ayurvedic

formulation along with the cooling sensation has multiple benefits of providing

relief from hair related problems. It is the most trusted brand in the cool oil

category. It commands a holding of 50% of market share of the cool oil market.

It has a monopoly in the southern states with a market share of 98 %.

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COMPANY PROFILE

Introduction to HLL As a condom-manufacturing company, HLL Lifecare started small, but dreamed

big. That dream changed lives in ways unimaginable. Soon, HLL became the

goto brand for various contraceptives. It was only a matter of time before

diversification followed, bettering the brand with healthcare products and

services. After more than 30 years of consistent quality performance, HLL

Lifecare now takes on an even bigger responsibility – the vaccine security of

the nation. No wonder then, at HLL work is about ‘innovating for healthy

generations’, every day.

Our Vision

Our vision is to become a INR 10,000 crore global healthcare company by 2020.

Our Purpose

The very purpose of business at HLL is to provide high-quality products and

services at affordable prices.

Our Values

HLL has a Value Charter – TTT– Trust, Transparency and Teamwork. It

symbolises the philosophy of HLL ; its reason for existence, values and

principles it follows in its daily activities. It also provides a common direction

for all employees of HLL; the way to conduct in personal and professional life.

Trust

• We shall practice what we profess and thereby build trust among

ourselves and all our stakeholders.

• We believe that trust creates an atmosphere of mutual respect and

support.

• We shall never compromise doing the right things at the right time

consistently.

Transparency We shall exhibit honesty and accountability in all

our activities.

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• We shall encourage active participation of all stakeholders in our

decision-making process.

• We shall practice Equity, Fairness and Justice at work.

Teamwork

• We believe that excellent outcomes can be achieved only through

teamwork.

• We shall build teams committed to company goals.

• We shall foster friendliness, camaraderie and selflessness.

HLL Lifecare Ltd. has adopted a Code of Business Conduct & Ethics for Board

Members and Senior Management, Enterprise-wide Risk Management Policy

and has constituted a qualified and independent Audit Committee of the Board

of Directors. It also has a formal statement of Board Charter that sets out the

role, structure, responsibilities and operation of the Board of HLL and its

delegation of authority.

Employees

The competence and commitment of the employees, sustained for over

decades, have made HLL a fast growing global entity. This is reflected in the

energy of more than 2700 employees. HLL provides demanding and

challenging opportunities to each employee. Through appropriate training and

mentoring programmes, business plan meets and regular communication,

employees are made to align to the organisation’s culture, vision and purpose.

A Global Perspective

With the changing socio-political climate, global health programmes are

constantly seeking diverse solutions in the areas of medicine and healthcare.

HLL provides the perfect answer to many questions that the world faces in

healthcare, thanks to its extensive experience, innovative technologies and

ample resources which today reach over 115 countries spanning the seven

continents. Its consultancy services and products are part of the global

healthcare packages of international agencies such as UNPFA, UNOPS, UNHCR,

WHO, PSI and IDA.

Origin & History Long ago, in 1966, a quiet revolution took place in Trivandrum, also known as

Thiruvananthapuram, a small picturesque town located in the south-western

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part of India. The revolution, called HLL, swept through the length and breadth

of the country. It reigned in the alarming population growth and enhanced the

quality of life of families in India. A revolution that eventually sparked off many

a movement and idea, it brought quality healthcare and prosperity to the

doorstep of millions.

The revolution resulted in creating a healthier India, with a record of 189

million couple year protections (CYPs*) during the past four decades.

We call it the Pink Revolution. The revolution, which today, has reached every

corner of the country as well as many parts of the world, addressing public

health challenges and bringing good health and happiness in its wake.

HLL’s first plant began operations on April 5, 1969 at Peroorkada in

Thiruvananthapuram district of Kerala. The plant was established in technical

collaboration with M/s Okamoto Industries Inc. Japan.

Today, seven manufacturing plants later, HLL has grown into a multi-product, multi-unit organisation addressing various public health challenges facing humanity. In 2003, when HLL had a turnover of a mere INR 163 crores, it had set its sights on becoming a INR 1000 crore company by 2010. HLL not only surpassed this figure by 2010 but also drew a clear road map to achieve tenfold growth by 2020. Now, HLL is a Mini Ratna, upgraded as a Schedule B Central Public Sector Enterprise. The company received the Prime Minister Award for being the best public sector enterprise in India. It is also the only company in the world which manufactures and markets such a wide range of contraceptives. Today, HLL produces 1.316 billion condoms annually, making it one of the world’s leading condom manufacturers, accounting for nearly 10 percent of the global production capacity.

Over the years each of the initiatives taken up by HLL have been aimed at

providing quality healthcare to every family. HLL’s ssociate institutions,

Hindustan Latex Family Planning Promotion Trust (HLFPPT) and LifeSpring

Hospitals, have ensured this to the nation’s underserved and vulnerable

populace, at an affordable cost.

With a vast array of innovative products, services and social programmes to

meet the country’s healthcare needs, HLL Lifecare Limited is firmly on track,

with its motto of 'Innovating for Healthy Generations'.

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HLL continues to make its mark by setting new goals and taking on challenges

others often view as impossible.

Production facilities :

1. Peroorkada Factory, Trivandrum ( PFT )

2. Akkulam Factory, Trivandrum ( AFT)

3. Kanagala Factory, Belgaum( KFB )

4. Kakkanad Factory, Cochin( KFC )

5. Manesar Factory, Gurgaon( MFG )

6. Pharma Factory, Indore (PFI)

7. Irapuram Factory, Cochin (IFC)

Products HLL has an exhaustive assortment of products, from the popular brand of

condoms ‘MOODS’ to the company’s natural products ‘Herbs &Berries’, an

Ayurvedic products range. Right through its journey from manufacturing

contraceptives, many products have continued to take shape at HLL. These

include re-hydration salts, blood transfusion equipment and wound care

products, blood banking equipment, neo-natal care equipment and, surgical

and healthcare products. Each category caters to a different segment of

society, helping HLL make life a better experience.

Business Divisions Marketing

HLL’s large marketing network has been delighting its customers over the last

two decades. Servicing 200000 retail outlets, covering 3500 hospitals, reaching

over 30000 medical professionals, it has over 2800 stock points, 700 frontline

team members placed in every town, with offices in all metros and mini

metros, and reaches over 400000 villages in India. HLL is also one of the

leading social marketing organisations in the country in the area of

contraceptives - with a market share of over 70 percent in the rural and

semiurban markets. On the global front, HLL brands today reach more than

115 countries.

With two decades of dedicated efforts in brand building and market

development, HLL has developed a sound marketing infrastructure and

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introduced an extensive range of its contraceptive, hospital and healthcare

products in the domestic and global markets.

Consumer Business Division (CBD)

CBD product mix includes a range of world-class products reaching its

customers through a network of 5000 stockists and over 500,000 retail outlets,

comparable to any of the leading FMCG companies in India. HLL is also one of

the largest Social Marketing Organisations (SMO) for the Ministry of Health

and Family Welfare (MoHFW), ensuring sales of over 70 percent of the

Government of India brands - Deluxe Nirodh and Mala-D nationally, and FC2 -

nitrile female condoms, to the vulnerable and high-risk groups of women,

under the programme initiated by National Aids Control Organisation (NACO).

HiCARE Division (HCD)

HiCARE Division offers a wide range of critical hospital products and services to

healthcare professionals in the field of transfusion services and advanced

patient care. The product range includes Blood Collection Bags, Surgical

Sutures, Hydrocephalus Shunts, Tissue Expanders, Surgical and Examination

Gloves, Blood Transfusion Sets, Intravenous Sets and Blood Banking

equipment. HCD has a strong team servicing over 20000 medical professionals

directly as well as reaching to over 3500 hospitals in India.

Women’s Healthcare Division (WHD)

WHD offers a whole range of women’s healthcare products with a promise to

provide total healthcare for women of all ages addressing their social, mental

and physical well-being. WHD’s product basket includes - Contraceptives,

Ovulation Inducers, Antiemetics, Menstrual Cycle Regulators, Antifibrinolytics,

MTP Pills, Pregnancy Test Kits, Natural Products and Vaccines. It has a strong

distribution network, reaching out to over 13000 gynaecologists across India.

Our flagship brand Novex-DS is being promoted for the long-term management

of Dysfunctional Uterine Bleeding (DUB) which, as a novel non-steroidal drug,

has gained acceptance among gynaecologists. A post-marketing surveillance

study is being conducted at multiple centres across the country to make it into

a INR.2.23 crore brand during the financial year 2010-11.

HLL has also entered in to a tie-up with Arya Vaidya Sala Kottakal, a renowned

company in the field of Ayurveda, and through their association launched an

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innovative product for the secretion of milk in lactating mothers at All India

Congress of Obstetrics and Gynaecology (AICOG) conference at Jaipur in

Januray 2009. A range of ayurvedic products for the health of women are in

the pipeline.

International Business Division (IBD)

HLL is aiming to be a global leader in the area of contraceptives and healthcare

products. The IBD manages the distribution of HLL's products to over 115

countries. HLL has also made inroads into Peru in South America for its

Nonsteroidal Contraceptive Pill marketed under the brand name Ivy femme.

HLL supplies its products to world bodies such as the UNFPA, PSI, Mission

Pharma, IPPF and IDA, in addition to various governmental procurement

organizations.

Government Business Division (GBD)

The Government Business Division (GBD) partners with the Union and State

Governments in India for their requirements of contraceptives and hospital

products under the National Family Welfare Programme (NFWP) and the

National Rural Health Mission (NRHM).

Vending Business Division (VBD)

In order to provide any-time access for condoms, HLL took the lead to install

Condom Vending Machines (CVM) in public places such as toilets, bars, parks,

cinema halls - particularly at places frequented by high-risk groups. HLL has

installed over 24000 CVMs across India with funding assistance from National

Aids Control Organisation (NACO), Government of India and also sold a wide

range of vending machines to public and private corporates.

Services A parallel world of services exists under HLL Lifecare apart from its products.

These services include Infrastructure Development, Healthcare Services and

Procurement & Consultancy Services. Infrastructure development service

offered by Infrastructure Development Division specialises in healthcare

infrastructure and facility management while Healthcare Services division

offers outsourcing partnerships to partnering institutions in the areas of

diagnostic services, pharmacy and other specialist services. Procurement and

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Consultancy Division which provides procurement and consultancy services is

in charge of acquiring drugs, chemicals, medical equipment and other health

sector goods for its service-users. Procurement and Consultancy Division also

procures goods for central government agencies and several medical colleges

in India on behalf of the Ministry of Health and Family Welfare.

Service Divisions Infrastructure Development Division

Infrastructure Development Division of HLL is premier consultancy division for

development of medical and allied infrastructure facilities. Infrastructure

Development Division provides services in design, engineering and execution

of construction projects. Clients include Government of India, state

governments, government departments, public sector undertakings and

corporations such as Employees’ State Insurance Corporation of India (ESIC),

National Rural Health Mission (NRHM), Kerala Social Welfare department and

autonomous bodies such as Malabar Cancer Centre, Jawaharlal Institute of

Postgraduate Medical Education & Research (JIPMER) etc.

Healthcare Services Division

The changing attitudes towards healthcare and growing lifestyle diseases are

increasing the need for reliable, affordable and quality healthcare services. The

whole purpose HLL’s Healthcare Services Division came into existence is ‘to

provide affordable and reliable solutions for quality Healthcare’.

Procurement and Consultancy Division

The Procurement and Consultancy Division of HLL is designated as a National

Procurement Support Agency (NPSA). It is an ISO 9001 certified division of HLL.

Procurement and Consultancy Division with its highly qualified and

experienced team of professionals is fully competent to undertake various

consultancy assignments such as bid process management, procurement of

goods and stores including medical equipment, drugs and pharmaceuticals,

computer hardware, application and systems software, design and

construction of hospitals/ factories, project planning and monitoring.

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Our Partners

In its search for becoming a truly world-class provider of healthcare products

and services, HLL has been seeking to adapt knowledge from its partners.

HLL has over the years been networking with various corporate

organizations, development agencies and NGOs by combining strengths and

capabilities of several world leaders. Some of them are listed below:

Okamoto Industries Inc. for male condoms.

• Female Health Company (FHC) for manufacture of Female Condoms and

its promotion.

• Finishing Enterprises, USA for Copper T IUD.

• Helm, Germany for distribution of DMPA (Depot Medroxyprogesterone

Acetate) in India.

• Arya Vaidya Sala (AVS), Kottakkal, Kerala, for Natural Ayurvedic products.

• Bharat Biotech International Ltd., Hyderabad for Hepatitis B and Typhoid

Vaccines.

• Chengdu Institute of Biological Products, China for supply of JE Vaccines

to Government of India.

• Cheng Da Biotechnology (CDBIO), China for marketing of Human

AntiRabies Vaccine in India.

• Cycle Technologies Inc., USA for manufacture and distribution of Cycle

Beads in India and abroad.

• More than 300 NGOs for implementing population stabilisation and

HIV/AIDS prevention and control programmes.

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ABOUT HERBS & BERRIES OIL

H&B Nourishing Hair Oil combines the effectiveness of eight Ayurvedic ingredients in a coconut oil base for the daily nourishment of the hair follicles. b. H&B Anti-Dandruff Hair Oil uses the anti inflammatory and anti-dandruff properties of 4 essential herbs to prevent the inflammation of the scalp and to remove dandruff. Both the variants of hair oils are available in 100 ml bottles.

Ayurveda, the oldest science of healing, also prescribes a wide array of beauty care (prosadhana) formulations containing natural ingredients. the formulations act on the basic cause of the problem and provide long lasting benefits. The secret to luxuriant, strong and glossy hair is firm roots and healthy scalp. Dandruff is a major problem suffered by many, winch can hamper the beauty and health of hair. Formulated by the Arya Vaidya Sala, Kottakal, Herbs & Berries Hair Essentials Anti Dandruff Hair Oil is a unique blend of traditional ingredients such as Ayyappalayila, Aryaveppinnila, Brahmi, Kariveppila in pure coconut oil which effectively addresses the problem of dandruff and helps in maintaining healthy hair.

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RESEARCH OBECTIVE

1. To find out the Market leader as well as the market shares of various

hair oil brands.

2. To find out the most preferred benefit from hair oils.

3. To find out the customer awareness of Herbs & Berries Hair Oil..

SCOPE OF STUDY

• Marketing research has its importance not only to track the current

scenario but also to know the future trend of consumer’s perception,

preferences and behaviour.

• After liberalization in India, competition among various FMCG companies

has increase. A lot every company is trying various strategies for creating

differentiation, leading to developing competitive advantage and HLL is

one of them. HLL has used multi Branding Strategy very successfully for

creating Competitive advantage. This area has good scope for studying.

• It ascertains the position of a company in specified industry point out

how the company’s affairs are being turned up.

• It helps in development and introduction of product.

• It helps to know the market share of a certain product.

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RESEARCH METHODOLOGY

Sample Size

I took a sample size of 300 people who use Hair Oil, taken at random, across

Kerala (Trivandrum, Ernakulam and Calicut).

Target

Target population is residents of major districts in Kerala of age above 20.

Primary Data

Primary data are data gathered and assembled specifically for the project at

hand. Here the primary data collection was done with the help of structured

interview and questionnaire.

Secondary data The secondary data was collected from the website of HLL, business newspapers,

online business articles and previous works done by others in the field of hair oil.

Data collection

The main research instrument used for collecting the required data was personal

Interview and a well-structured questionnaire. A detailed questionnaire has

been prepared to seek the opinion of respondent. The respondents were asked

to answer and information elicited was noted.

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DATA ANALYSIS & FINDINGS

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1. FROM WHERE DO YOU BUY HAIR OIL?

50% of the respondents bought hair oil from Provision Stores,

followed by Fancy stores at 23%, Drug Stores at 14%, Supermarkets at

11% and Online stores at 2%.

14%

11%

2%

23%

50%

Purchasing from?

Drug store/Chemist

Supermarket

Online store

Fancy Store

Provision store

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2. HOW FAR WOULD YOU TRAVEL TO MAKE THE PURCHASE?

61% of the respondents would travel 0 to 2 kms, followed by 2 to 4 kms at 21%, 4

to 6 kms at 14% and 6 kms and above at 4%.

61%21%

14%4%

How far would you travel to make this purchase?

0 to 2 kms

2 to 4 kms

4 to 6 kms

6 kms or above

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3. HAIR OIL – PREVIOUSLY USED

The following oils were used PREVIOUSLY with the following percentages:

Parachute: 26%

Natural Unbranded Coconut Oil: 22%

KPS Neelibhringadi Hair oil: 12%

Dabur Amla Hair Oil: 12%

Kera: 11%

Dabur Vatika Hair Oil: 5%

Clinic Plus Hair Oil: 3%

Dhathri: 3%

L’Oreal: 2%

Indulekha: 2%

Himalaya Anti-dandruff Hair Oil: 1%

Dove Elixir: 1%

22%

26%

2%12%

2%3%

1%5%

12%

1%3%

11%

Hair oil - previously used

Natural unbranded coconutoil

Parachute

L'Oreal

KPS Neelibhringadi CoconutOil

Indulekha

Dhathri

Dove Elixir

26

4. HAIR OIL – CURRENTLY BEING USED

The following oils are CURRENTLY being used with the following

percentages: Parachute: 39%

Natural Unbranded Coconut Oil: 18%

KPS Neelibhringadi Hair oil: 8%

Dabur Amla Hair Oil: 12%

Kera: 7%

Dabur Vatika Hair Oil: 3%

Clinic Plus Hai Oil: 3%

Dhathri: 3%

L’Oreal: 2%

Indulekha: 3%

Himalaya Anti-dandruff Hair Oil: 1%

Dove Elixir: 1%

18%

39%2%

8%

3%3%1%3%

12%

1%3%7%

Hair oil - currently being used

Natural unbranded coconutoil

Parachute

L'Oreal

KPS Neelibhringadi CoconutOil

Indulekha

Dhathri

Dove Elixir

27

5. SINCE HOW LONG HAVE YOU BEEN USING THIS PRODUCT

40% of the respondents have been using their present hair oil brand for 6 years

and above, 23% for 1 to 2 years, 20% for 2 to 4 years, 11% for 4 to 6 years and

only 7% have been using for less than 1 year.

7%

22%

20%11%

40%

Usage period of current product

less than 1 year

1 - 2 years

2 - 4 years

4 - 6 years

6 years and above

28

6. SATISFACTION LEVEL WITH CURRENT PRODUCT

35% of the respondents are “Somewhat satisfied”, 25% are “Neither satisfied

nor dissatisfied”, 18% are “Dissatisfied”, 15% are “Very satisfied” and 8% are

“Very dissatisfied”.

17%

31%

23%

18%

11%

Satisfaction level with current brand

Very Satisfied

Somewhat satisfied

Neither satisfied nordissatisfied

Dissatisfied

Very dissatisfied

29

7. HAIR OIL – ALTERNATE/SECOND CHOICE

The following oils are the alternative choices with the following

percentages: Parachute: 42%

Natural Unbranded Coconut Oil: 13%

KPS Neelibhringadi Hair oil: 9%

Dabur Amla Hair Oil: 11%

Kera: 9%

Dabur Vatika Hair Oil: 5%

Clinic Plus Hai Oil: 3%

Dhathri: 3%

L’Oreal: 2%

Indulekha: 2%

Himalaya Anti-dandruff Hair Oil: 1%

Dove Elixir: 1%

13%

42%

1%9%

2%3%1%5%

11%

1%3%

9%

Alternate/Second choice

Natural unbranded coconutoil

Parachute

L'Oreal

KPS Neelibhringadi CoconutOil

Indulekha

Dhathri

Dove Elixir

Dabur Vatika Hair Oil

Dabur Amla Hair Oil

30

8. HEARD OF HERBS & BERRIES OIL?

93 % of the correspondents HAVE NOT heard of H&B Hair oil, as compared to

7% who have heard of it.

7%

93%

Have you heard of Herbs & Berries Hair Oil?

Yes

No

31

9. IF YES, THROUGH WHAT MEDIA?

Among those who HAVE HEARD about H&B Oil, 43% heard through

friends/relatives, 24% through the internet and 33% via other means such as

billboards, displays at shops, etc

24%

43%

33%

If yes, where did you hear it from?

Print media

Internet

Friends/Relatives

TV ads

Radio ads

Other

32

10. TYPE OF HAIR OIL PREFERRED

90 % of the correspondednts prefer Ayurvedic Oil and only 10 % prefer

nonAyurvedic/Cosmetic oils. This proves that Ayurvedic oils lead the hair-oil market by a very wide margin.

90%

10%

Type of hair oil

Ayurvedic

Cosmetic

33

11. PURCHASING DECISION MAKER

92 % of the respondents themselves make the purchasing decision,

5% lets their Spouse decide and 3% lets their mothers decide.

92%

3%5%

Buying decision is made by whom?

Self

Mother

Father

Sibling

Spouse

34

12. PURCHASING FREQUENCY

The purchasing frequency of 61% of the respondents is 30 days, 21%

is 60 days, 11% is 15 days and 6% is 45 days.

12%

60%

7%

21%

Purchasing frequency

15 days

30 days

45 days

60 days

35

13. USAGE FREQUENCY

The usage frequency of 65% of the respondents is once in 2 or 3

days, 20% is weekly, 15% is daily and 1% is ‘other’ (like on random

days).

14%

65%

20%1%

Usage frequency

Daily

Once in 2 or 3 days

Weekly

Other

36

14. TYPICAL BUDGET FOR HAIR OIL

47 % of respondents have a budget of Rs 100 – Rs 200 for purchasing

hair oil, 39% have a budget of below Rs 100, 9% have a budget of Rs

200 to Rs 300, 3% have a budget of Rs 400 and above and 2% have a

budget of Rs 300 to Rs 400.

39%

47%

9%2%3%

Typical budget for hair oil

below 100

100 to 200

200 to 300

37

15. EXPECTED BENEFIT

The most expected benefit from a hair oil is hair growth (41%),

followed by Anti-dandruff properties (19%) and Anti – hair loss

properties 1(3%), Fragrance(8%), Conditioning (6%), Hair

strengthening(5%), Hair repair (3%), Restructuring (3%),

Revitalization (2%), Anti-lice (1%) and Heat protection (0.5%)

41%

19%

13%

5%

2%2%

6%

3%

8% 1%

Benefit expected from the hair oil you use

Hair growth

Anti dandruff

Anti hairfall/lossHairstrengtheningRevitalization

38

16. FACTORS THAT CUSTOMERS GIVE PREFERENCE FOR BUYING

HAIR OILS, ACCORDING TO RANK.

I. Past usage experience

II. Brand

III. Availability

IV. Price

V. Offers

VI. Advertisements

VII. Packing

39

LIMITATIONS

• Respondents were reluctant to spare time.

• Some people avoided me thinking that I was trying to sell them some

product.

• It took a long while to come across people aware of Herbs & Berries Hair

Oil.

• I had to repeatedly explain how the ‘ranking’ question was to be

answered.

• Certain people were not comfortable as the questionnaire was in

English.

• The company was reluctant to disclose the information regarding sales

figures and unit-price breakdown as it was considered confidential.

• Only 3 major districts (Trivandrum, Ernakulam and Calicut) were selected

to represent population from entire Kerala.

However, in spite of these difficulties I have tried my best to bring out the facts

of the market scenario.

40

CONCLUSIONS

• Parachute (MARICO) is the market leader with 39% market share.

• Even though there is heavy advertising by many prominent brands like

Indulekha, Dhathri, etc, their market share is very low in comparison to

the market leader, i.e., Parachute.

• People are almost unaware (93%) about the hair oil brand “Herbs &

Berries”.

• Kottakal Aryavaidyasala increases their product cost every 6-8 months,

and HLL has a limit on the product’s MRP. This has caused the margin for

advertisement to be almost negligible which in turn has resulted in zero

promotional activities.

• According to a survey on 30 random medical shops and provision stores,

in 24 shops, there has been no stock of H&B Hair oil since the last 3-4

months. Maintaining stock levels in such shops is an issue.

• The most expected benefit from hair oils is ‘hair growth’.

• Provision stores and fancy stores (a total of 73%) are the most visited

places for purchasing hair oils.

• 58% of the respondents were females and they were able to exactly

remember the proper brand name and other details regarding the hair

oil they were using, better than men.

41

• Parachute (MARICO) is the market leader with 39% market share.

• Even though there is heavy advertising by many prominent brands like

Indulekha, Dhathri, etc, their market share is very low in comparison to

the market leader, i.e., Parachute.

• People are almost unaware (93%) about the hair oil brand “Herbs &

Berries”.

• Kottakal Aryavaidyasala increases their product cost every 6-8 months,

and HLL has a limit on the product’s MRP. This has caused the margin for

advertisement to be almost negligible which in turn has resulted in zero

promotional activities.

• According to a survey on 30 random medical shops and provision stores,

in 24 shops, there has been no stock of H&B Hair oil since the last 3-4

months. Maintaining stock levels in such shops is an issue.

• The most expected benefit from hair oils is ‘hair growth’.

• Provision stores and fancy stores (a total of 73%) are the most visited

places for purchasing hair oils.

• 58% of the respondents were females and they were able to exactly

remember the proper brand name and other details regarding the hair

oil they were using, better than men.

42

SUGGESTIONS

• The sales executives must ensure that H&B Hair oil has sufficient stocks

(via stockists) at provision stores as well as medical shops (73%

respondents), preferably once in every month, as 60% people purchase

hair oil, once in every month.

• 33% respondents were aware of H&B oil via bill-boards and display at

shops. Therefore proper visibility of the product must be ensured at the

shops it is supplied to.

• Along with anti-dandruff property, the benefit of hair-growth must also

be highlighted in the packing, as it is the most expected benefit in hair-

oils (by 41% respondents). The product maybe renamed to H&B Hair

growth & Anti-dandruff hair oil.

• 47% of people are ready to spend between Rs 100 and Rs 200 for

purchasing hair-oil, therefore the current MRP of Rs 185 can be

increased to up to Rs 200, which will also be beneficial in getting further

margin for advertising.

• Past usage experience of the hair oil (by self, friends, relatives, etc) is the

factor given the highest ranking by respondents. Encouraging repeat

43

users to put up good reviews/feedback via online media, is beneficial, as

24% of the respondents who are aware of H&B oil has referred to online

media.

BIBLIOGRAPHY

• http://www.lifecarehll.com/page/render/reference/Introduction_To_Hll

• http://www.lifecarehll.com/page/render/reference/Our_Vision

• http://www.lifecarehll.com/page/render/reference/Our_Histroy

• http://www.lifecarehll.com/product/view/reference/c9e1074f5b3f9fc8e

a15d152add07294hX-G

• http://www.business-standard.com/article/management/branded-

forvalue-115052400775_1.html

• http://marketingpractice.blogspot.in/2012/04/herbs-berries-

brandingayurveda.html

• http://archivehealthcare.financialexpress.com/200910/market26.shtml

• http://www.greenworldinvestor.com/2011/07/05/india-hair-oil-

marketgrowing-strongly-list-of-suppliersbrands-and-

categoriescocunutamlacoolinglight-hair-oil/

• http://www.abhinavjournal.com/images/Commerce_&_Management/N

ov12/16.pdf

• http://www.managementparadise.com/forums/marketingmanagement-

rm-im/202487-profile-hair-oil-industry.html

• http://www.slideshare.net/rathi_sachin/india-shampoo-industry

• http://www.business-standard.com/article/management/kit-the-

indianshampoo-and-hair-conditioner-market-110082300016_1.html

• http://books.google.co.in/books?id=K3QRwx7N-

44

PIC&pg=PA280&lpg=PA280&dq=market+size+for+shampoo+in+India&so

urce=bl&ots=yDptQy2K32&sig=56D6qfsOCgY8fLjd069n7z02xMc&hl=en

&sa=X&ei=nQGCUbzOMYKrrAfiu4GgCA&ved=0CEEQ6AEwAg#v=onepage

&q=market%20size%20for%20shampoo%20in%20India&f=false

• http://www.business-standard.com/article/specials/segment-and-

rule112040900058_1.html

• http://www.kuickresearch.com/press-details.php?presstitle=Ayurvedic-

Cosmetics-Emerged-As-New-Growth-Frontier-For-Beauty-Business-

InIndia

• http://www.rncos.com/Press_Releases/Indian-Cosmetic-Industry-Going-

Green.htm

• http://janathatrading.com/page40.php

• http://archivehealthcare.financialexpress.com/200910/market26.shtml

• http://marketingpractice.blogspot.in/2012/04/herbs-berries-

brandingayurveda.html

• http://marico.com/investorspdf/Marico_Investor_Presentation_-

_June14.pdf

QUESTIONNAIRE

Instruction: Please put a tick (✓) next to the answer of your choice or write in the

space provided as the case maybe.

PERSONAL DETAILS

Age: a. 20-30 b. 30-40 c. 40-50 d. 50-60 e. 60 and above

Gender: a. Male b. Female Household size ________________ Monthly income (In Rs) a. below 5,000 b. 5,000-15,000 c. 15,000-25,000 d. 25,000-35,000 e. 35,000-45,000 f. 45,000 and above Occupation a. Self employed b. Government servant c. Private Company d. Professionals e. Home maker f. Student. G. OTHER _______________

Education level a. 10th std b. 12th std c. Diploma d. Graduate e. Post Graduate f. PhD g. OTHER _______________ Marital Status a. Single b. Married Locality (City, Town, Village) a. City b. Town c. Village

District? _________________

45

46

1. From where do you buy hair oil?

a. Drug store/Chemist b. Supermarkets c. Online stores d. Fancy stores e.

Provision stores

2. How far would you travel to make the purchase? _________________

3. Hair oil - previously used _________________

4. Hair oil - currently being used _________________

5. Since how long have you been using this product? _________________

6. How satisfied are you with the hair oil brand you use currently?

a. Very satisfied b. Somewhat satisfied c. Neither satisfied nor d issatisfied

d. Dissatisfied e. Very dissatisfied

7. If the current hair oil is unavailable, which other brand will you buy?

_________________

8. Have you heard of “Herbs & Berries Hair Oil”

a. Yes b. No

9. If yes, from where did you hear it from?

a. Print media b. Internet c. Friends/Relatives d. TV ads e. Radio ads

f. OTHER ______________

10. Type of hair oil

a. Ayurvedic b. Cosmetic

11. Buying decision is made by whom? _________________

12. Purchasing frequency

a. 15 days b. 30 days c. 45 days d. 60 days