Team Name – Winter is Coming | Campus Name – NMIMS Mumbai

Mitesh Tanvi Apoorv Aashish

1

Industry Profile

Primary Research

Current Franchise

Promotions

Product Extension

Category Extension

Agenda

Industry Trends• Urban consumers who are well-aware of the use of deodorants

have started looking for secondary benefits from their deodorants

• Rural markets for deodorants growing at a staggering rate of 29%

Deodorant Market• Market has grown from 500 crore to 2100 crore from 2009 to

2014 • Men deodorant form 70% of the category • 986 varieties of deodorants (from 500 brands) are sold across

markets, with as many as 103 recent launches.• Illegal exports & counterfeits market is around 400 crore

Projected market size for deodorants (crores)

Year 2014 2015 2016 2017

Premium(%) 1.8 1.9 1.9 1.9

Mass(%) 98.2 98.1 98.1 98.1

2014 2015 2016 2017

Deodorant 2113.3 2407.1 2704.6 2990.4

2014-17 CAGR

Deodrant Sprays 14.7

12.5

8.1

6.9

6.9

0 2 4 6 8 10 12 14

FOGG

ENGAGE

AXE

WILDSTONE

Fogg Engage Axe WildStone

Volume 12.5 8.1 6.9 6.9

Market Share by Volume (%)

Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension

Expected growth rate for deodorants

1

Primary Research

• Survey of 200 consumers aged between 18-30. (120 men and 80 women)

• Interview and observation at 30 GT and 10 MT in the urban and suburban areas of Mumbai. (Juhu, Versova, Lokhandwala, Malad)

Secondary Research

• Euromonitor reports for Personal care, Lip Care, Fragrances in India, UK , US and China.

• Newspaper articles

• Competitor websites and social media

•Deodorants Awareness

Axe 100%

Nivea 100%

Dove 100%

Fogg 88%

Engage 70%

6%

31%

59%

4%Brand Loyal

Set of Brands

Love toExperiment

Buy Anything

15%

33%

52%

0%

Brand Loyal

Set of Brands

Love toExperiment

Buy Anything 30

31

Female

Male

25

37

88

12

27

Kirana Store

Chemists

Supermarkets

Online

Cosmetic Stores

21 21

70

20

78Kirana Store

Chemists

Supermarkets

Online

Cosmetic Stores

3%

11%

71%

15%

Once a week

2-4 days in aweek

5 or more days

Do not use adeodorant

Reasons for not using a deodorant:• Harmful to skin• Allergic• Contain Carcinogens• Do not last long• Prefer perfumes to deodorant

Research Methodology & Key Findings

Purchase BehaviourPurchase

Points(in %)

Purchase BehaviourPurchase Points

(in %) Willingness to Carry(%)

Frequency of Use

Men Men

Women Women

Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension

2

BRAND PERCEPTIONParameters:

• Value for money• Variety• Packaging• Fragrance

• Helpful in attracting opposite sex• Long Lasting

AXE is having the highest brand equity because of its perceived high value for money, variety and fragranceThin line of differences in the deodorant category for female deodorants

012345

Value formoney

Variety

Packaging

Fragrance

Helpful inattracting…

Long Lasting

AXE FOGG ENGAGE

012345

Value for money

Variety

Packaging

Fragrance

Helpful inattracting theopposite sex

Long Lasting

NIVEA DOVE ENGAGE

BRAND SCORES• Rating on Important factors leading to purchase decision• Score on these parameters to different brands• Axe is having highest Brand Equity in the men category • Dove is having the highest Brand Equity in the women

category

2%

10%

34%

70%

MEN

4%

13%

40%

73%

WOMEN

Awareness

Cons ideration

Purchase

Loyal ty

PURCHASE FUNNEL• Low conversion from awareness to consideration and from

consideration to purchase• Only 1 of the 7 people aware of the brand choose to buy

engage while buying a deodorant• Need to increase the POS activity to increase the

conversion from consideration to purchase

Measuring Current Brand Equity

Ben

chm

ark

ing

Purchase Funnel

Men Women

Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension

3

Mo

der

n T

rad

e

Absence of Promoters in outlets

in 8 out of the 10 outlets visited

Brands like Nivea & Yardley had promoters

Product placement in lower racks

4th or the 5th shelf from the top

Higher Secondary visibility for other

brands

Old-spice, Nivea & Axe (High Aisle visibility)

Absence of Testers and the entire line at

Supermarkets

Testers available for competing brands

(Yardley, Nivea, Axe)

Lesser Front facing for engage in the rack made the visibility cluttered

Yardley, Nivea and Dove had large no. of lines in the top-2 shelves

Gen

eral

Tra

de

Designated shelf space, posters & shelf-strips by Old Spice in pharmacies

Imported Deodorants displayed due to higher margins

No Eye Level Visibility

Secondary Visibility of Competitor Brands

2.33

3.72

4.39

3.67

2.83

0

1

2

3

4

5

Engage Axe Fogg Nivea Dove

Engage

Axe

Fogg

Nivea

Dove

• Ensuring Availability of Testers for all fragrances• Stationing Brand Promoters at outlets• Increased Secondary Visibility• Also, helps display Men & Women Deodorants

togetherRec

om

men

dat

ion

sV

isib

ility

Mat

rix

Market Observations & Visibility

Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension

4

Democratization of Content

Higher user generated content on the website

with the help of a Twitter\Facebook feed. Enabling them to rate

and review the deodorants

Increases engagement

Drives more traffic to website

Fragrance Pyramid

Top Note

Heart Note

Base Note

Perceived immediately on application of a

perfume

Act to mask the often unpleasant initial impression

Appears close to the departure of the

middle notes.

Gamification/Appification of Facebook page Deodorant Recommender

A Facebook game to get more user

engagement

Pla

yfu

l Ch

emis

try Asking fun questions

about one’s partner & recommending a deodorant based on replies

Campaign by Degree USA

Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension

5

Brand Strength consists of Brand Differentiation and Brand Relevance.

Brand Stature consists of Brand Esteem and Brand Knowledge

Axe, Dove and Nivea emerged to be in a leadership position primarily because of its high awareness and high perceived value

Gradually Engage is moving towards the leadership position. However, there is a need to move it into the consideration set of the TG

Protect Your Partner | Break the Bottle Campaign

Cheap, fake deodorants are infiltrating the market that causes skin infections and diseases.

Engage with the consumers and educate them regarding the real

and fake deodorants through social media

Exis

tin

g P

rob

lem

Solu

tio

n

1Encourage them to

“protect your partner” & make dents on the

used bottles !

2

Fact: Fake and imported deodorant market is 400cr

Get Your Selfie Printed Campaign

People love getting clicked

and like sharing it on the social

mediaOp

po

rtu

nit

y

Online Campaign

Integration with offline

world

Increased traction online +

more visibilitySt

rate

gy

Met

ho

do

logy

Installation Photo booths at high traffic areas and get their

selfies printed #youmeengage

1Instant rewards to the

Target audience-Higher sharing and

more mentions

2

3

Works on the principle of Geo-tags

and Hash-Tags

4

Currently Microsite for youmeselfie has a little over 1500 uploads on the Micro-site

which can be expanded through integration with the offline world.

This ensures more visibility and higher online traction

Cu

rre

nt

Stat

us

Social Media Campaign

Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension

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Incentivizing the user for sharing is necessary

Feature on Your Favourite Deodorant CampaignThe brand takes the youmeselfie campaign further and awards the winning selfies to feature on the deodorant can. This enables brand

recall. Also couples can relate to the product better as they can imagine themselves on the can.

Fragrance DescriptionAs we observed the lack of testers impacted the purchase of the product. Therefore a short description like “Fruity Fresh” etc will accelerate purchase. Users will be able to understand the offering

better even in the absence of a tester.

General Trade Campaign

Co

mp

eti

tor

Be

nch

mar

kin

g

Avoid Clutter! Ensure

Shelf Space Visibility

POS MaterialSuch as posters, stickers

& shelf strips.8 out of 30 stores that

we visited had competitor POS material

Enhance Visibility

Packaging Campaign

Modern Trade Campaign

Op

po

rtu

nit

y

Entice them!To capture the

user’s attention while shopping by

sending out an Engage Fragrance

Au

tom

atic

Air

Fre

she

ne

rs

It had time released

fragrances which can be

set to the preferred

fragrance level

Engage Deodorant can be used as fuel and can be an

intelligent substitute for

testers

Cost2500*Shelf Space* No. of Modern

Trade Outlets

Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension7

0% 10% 20% 30% 40% 50%

Smaller Pack Size

Colour Protection

Alcohol Free

Whitening

31%

40%

45%

38%

30%

38%

49%

50%

Red- Men, Blue - Women

75%

25%

Percentage of users that seek Additional Benefits

SeekAdditionalBenefits

Don't SeekAdditionalBenefits

Urban middle class segment becomes more demanding…..

Freshness48 hours protection, whitening & alcohol

free deodorants

48 hours protection, whitening & alcohol

free deodorants

Non English Inscriptions gives the feeling of imported product

Anti-BacterialDermatological

Tested

Insights

Brands have moved a step ahead of unique value proposition (USP) and now talk about extra value proposition (EVP)

Additional benefits that Engage can give to

their users to capture this market

Results of Primary Survey

Competitor Benchmarking

Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension

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Whitening

Alcohol Free

Colour Protection

Smaller Pack Size

Whitening Underarms

-Indians obsessed with fairness

- Rising consciousness amongst the consumers

-Growth of 30% of fairness industry-200 m market in

India

45% of men and women prefer deodorants that

claim to provide whitened underarms

Dark underarms are repulsive. Engage’s playful chemistry

resolves it

Benefit Consumer Behaviour Reason to Enter Primary Survey Point of Difference

Dove (HUL)Nivea (Beiersdorf)

Competitors

Alcohol Free Deodorants

-Informed & Sensitive Consumers

- Greater desire for products with less

additives and more nutrition

-67% of the women have sensitive underarm skin & are moving towards

alcohol free deodorants

48% of men and women prefer deodorants that do not contain alcohol

Positioning under “Protect Your Partner”

Campaign. Alcohol causes skin allergies &

irritation

Dove (HUL)Nivea (Beiersdorf)Cinthol (Godrej)

Colour Protection Deodorants

-Consumers care about their clothes

- Patches or discolouration gives a bad impression

-Certain deodorants cause yellow stains or

discolouration of clothes especially in the

underarm region.

39% of men and women are troubled by

discolouration & staining

-A Hygiene factor, Engage helps you to

prevent repulsion-keeps your reds as reds and yellows as yellows

Nivea (Beiersdorf)

Small Pack Sizes –Compressed Deodorants

People wants to carry deodorants to feel fresh

and stay odour free 24X7

-Trial is also needed-Cheaper option

Affordability, ease to carry, test packs and

environment friendliness

30% of the users would prefer smaller can sizes and would like to carry

deodorants

-Playful Chemistry helps you too stay fresh and smell attractive at all

times

Nivea (Beiersdorf)Wild StoneSure (HUL)

Product Extension vis-à-vis Competitors

Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension

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ProductMarket Size

(INR mn)Growth Rate Competitors Competitor Positioning Point of Differentiation

Cannibalization of exiting

products of ITCRelevance

Lip Balm 3000 25.00%1. Vaseline (HUL)2. Nivea (Beiersdorf)3. Maybelline (L’Oreal)

1.Medical Benefits2.Flavored Lip Balms

1.Complementary flavors for couples

2.Kissable LipsNone

Deodorant Wipes

225.6 23.80%1. Fresh Ones (Tainwala Personal

Care)2. Kara (Grasim Industries)

1.General purposewipes 2.Facial Cleansing wipes

1.Deodorant wipes for instant freshness and confidence

None

Instant Breath Freshener

Spray1600* 28% 1. Spraymintt ( Midas Care)

1. Be Kiss ready in 1 second

1. Different flavours for men & women

None

Body Spray 775 34.80%1.Fogg (Vini Cosmetic)2.Body Shop (L’Oreal)3.Fabindia

1.Last Longer2.More perfume per spray

1.Longer effectiveness2. More perfume in a single spray, in addition to playful chemistry

Medium

Shower Gel 1426 20%1.Axe (HUL)2.Nivea ( Beiersdorf)3.Adidas

1. Alternate to soapNone, cannot leverage on the playful chemistry image

High

Air Freshener 2700 30%1.Aer (Godrej)2.Ambi Pur (P&G)3.Park Avenue ( Raymond)

1.Love is in the air2. Change the air

None, though this is related to fragrances, but shall lead to brand dilution

None

* Estimated

Industry Profile Current Franchise Promotions Product Extension Category Extension

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Company Market Share Average Price Positioning

Vaseline 18% 150 Heal Chapped Lips

Nivea 19% 136 Shiny Lips with fruity flavors

Maybelline 13% 134 Moisturized and sun protection

Targeted at couples engaging in playful chemistry, positioned as kissable lips

Different flavor for men & women e.g. Peach & Cream ; Fire & Ice

Company Market Share Average Price Positioning

Tainwala 37.7% 38 General Purpose Wipes

Grasim 6.9% 60 General Purpose Wipes

Pristine Care 6.1% 65 General Purpose Wipes

Easy to carry Deodorant Wipes for Instant freshness and Confidence

Different scented wipes for men & women which have secondary benefits like anti bacteria , alcohol free, moisturizing

Estimated Market Potential in Lip Balm Category( CAGR 25%)Year Market Size Conservative(5%) Optimistic (16%)

2014 3000.00 150.00 480.00

2015 3750.00 187.50 600.00

2016 4687.50 234.38 750.00

2017 5859.38 292.97 937.50

2018 7324.22 366.21 1171.88

Estimated Market Potential in Wipes Segment (CAGR 23.8%)Year Market Size Conservative (5%) Optimistic (16.13%)

2014 225.60 11.28 36.39

2015 279.29 13.96 45.05

2016 345.76 17.29 55.77

2017 428.06 21.40 69.05

2018 529.93 26.50 85.48

Lip Balm Market Share Deodorant Wipes Market Share

Company Market Share Average Price Positioning

Midas Care 100% 69 Instant Kiss Ready

Estimated Market Potential in Instant Breath Freshener (CAGR 28%)

Year Market Size Conservative(20%) Optimistic (50%)

2014 1600.00 320.00 800.00

2015 2048.00 409.60 1024.00

2016 2621.44 524.29 1310.72

2017 3355.44 671.09 1677.72

2018 4294.97 858.99 2147.48

Mouth Freshener Market Share

Complementary flavors for men and women, e.g. Mint & Strawberry ; Clove & Chocolate

ITC can leverage its wide network to distribute the product, currently the product is available only at cosmetic shops & chemist shops

Industry Profile Primary Research Current Franchise Promotions Product Extension Category Extension

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QnA

Questions