Shampoo

CHARMI NAGADA -140 | NIKITA YADAV-163 | RITVIK DINESH170 | RAJ AGNIHOTRI-169 | AMAN GARG-128 | GURU
RAGHAVENDRA SRINATH-148
Group 3D

Marketing Management-I

Introduction to Product Category

The haircare market in India was valued at $2010 million in 2014. Indias cosmetic market
has undergone its biggest ever evolution in the past decade, giving people a greater choice of
branded shampoo. The hair care market can be segmented into hair oils, shampoos, hair
colorants and conditioners, and hair gels. The size of shampoo market is $776 million with
urban areas accounting for 80 percent of shampoo sold and rural areas accounting for 20
percent of shampoo sold in country. The market's volume is expected to rise up to 3,311.1
million in 2019 from 2,391.5 million units in 2014, representing a CAGR of 6.7% for the
2014-2019 period.
Competitors: The major players are HUL and Procter and Gamble. P&G's market share in
shampoos is estimated to be 27 percent. HUL, in contrast, has a share of 46-47 percent in
shampoos. Other brands like Chic and Nyle from CavinKare have a market share of 11%
while Vatika from Dabur contributes to 5 percent of the market share.
Drivers - Urban India is witnessing a change in shampoo consumption, since families are
moving from one shampoo a family to one shampoo a family member. This
metamorphosis is a strong driver for growth. The existing marketing players, in face of new
entrants, are forced to maintain their market share through aggressive promotion, re-branding
efforts and reduction in prices. This competition is expected to further intensify in near future
and the determining factor is consumer connect.
Challenges - Shampoo is still considered a premium hair cleansing product as more than
50% of the population uses toilet soaps to wash hair. One of the major issues for the shampoo
manufacturing companies is to be able to maintain relations with customers as there is always
someone more innovative. Perhaps the biggest challenge brands face today is decimation of
the customer base by paradigm shifts in behaviour, preferences, and demographics.

Companies that Own the Brands

Hindustan Unilever Limited, Brand: Sunsilk
Hindustan Unilever Limited is owned by Anglo-Dutch Company Unilever which owns a 67
percent controlling share in HUL as of March 2015 and is the holding company of HUL. The
company was renamed in June 2007 as "Hindustan Unilever Limited.

Listed below are some shampoo brands under HUL.

a) Sunsilk - Sunsilk was launched in the UK in 1954, and was launched in India in 1964 by
HUL. Sunsilk has always been one of the major market share holder in shampoo market.
1954

Launched in UK

1971

Launch of Conditioner

1955

First TV Advertisement

1975

Biggest Name in Hair Colour

1964

India Launch

2006

Gang of Girls: India Launch

b) Tresemme - Tresemme is hair care product brand which was launched in the year 1947 by
Godfrey Manufacturing Company. Finally, in the year 2010, Unilever took over the brand and
presently Unilever owns this brand. Tresemme provides a complete range of hair care
products that include shampoos, hair conditioners, gels, hairsprays and other products.
c)

Clear - Clear is a brand of anti-dandruff shampoo produced by the Unilever

group. The brand was launched in 1981 and sold under the Clear name in most certain
global countries. It is the leading anti-dandruff shampoo brand, competing with Head
& Shoulders

Coty, Inc.
Coty, Inc., is an American beauty products manufacturer based in New York founded in Paris,
France, by Franois Coty in 1904. Cotys main products are fragrances, colour cosmetics and
skin and body care products.
Wella - Wella AG is a major German hair care company headquartered in Geneva,
Switzerland. It specializes in Haircare, Styling and Colorants sold to individuals, hairdressers
and sells shampoo as a secondary product when compared to Hair colour. It was controlled by
Procter & Gamble since 2003 until it was sold to Coty, Inc. It was launched in India under
Procter & Gamble in 2010 as P & G decided to foray into Hair colour market. Some Product
variants of Wella: Enrich Moisturising, Enrich for Dry, Damaged Hair, Calm Sensitive.

SWOT analysis of Sunsilk and Wella

Porters five forces analysis for Sunsilk

1. Industry competitors - Sunsilk has both advantages and

disadvantages in this aspect. The size of this segment being very large also allows for
multiple competitors. The growth rate of the industry is also good at a respectable 3.8
percent. Having other established brands in the industry is a minus. The competition for
market share is very fierce leading to price wars and high advertising costs.
2. Potential entrants - This FMCG sector needs strong
distribution networks, established business and R&D units and high capital requirements
to succeed. Without a strong brand name for customers to associate to any company may
find it difficult to sell the product. All these factors prove it difficult for any new
companies to enter this market.
3. Substitutes Sunsilk major competitors that are can
substitute it remain the shampoos that are price between ~Rs.100-Rs.140 for 180 ml.
4. Buyer power - Good and bad. The product is essential
in everyday life. But a large number of substitutes exist. So consumers can switch.
Switching costs are quite low.
5. Supplier power - This sector sees a large number of
suppliers providing raw materials for Sunsilk. Also there are substitute inputs which
Sunsilk can revert to in case a supplier stops production. This leads to high competition
among suppliers and finally low cost of switching suppliers.

Rural/Urban
Penetration
Price Point
Expert Formulation

Youth-only Women
Target
2. Chemical Intensive

Growth of
Herbal Market
High Volume
Consumption

Its strength of formulation

expert solutions can be used to
create herbal product

It can counter chemical

intensive nature of its
formulation by using herbal
market

Experimentation
Price wars

It can leverage its high rural

and urban penetration to
counter price wars

It should formulate herbal

shampoo to leverage
experimentation by
consumers

Wella caters in the high priced segment in the personal care market. It has two divisions.
Professional and Consumer. Professional division sells products for colouring, perming and
styling exclusively to hair dressers. Consumer division sells colouring, styling and care
products. Shampoo comes under the Consumer Care products.

Porters Five Forces Analysis for Wella

1. Industry competitors - The main competitors of Wella in this segment are Schwarzkopf,
LOral, The body shop, Matrix and Unilever. The customer in this segment is refined and
only looks for very particular needs. The products are rated on their effectiveness. The
competition is feature based rather than price based.
2. Potential entrants - Two big barriers for entry into this segment are R&D and tie ups with
professional salons. Unless the new company is very good in both it cannot compete with the
already established firms.
3. Substitutes - Since products cater to very niche needs in this segment substitution does not
play a major role.
4. Buyer power - Less number of competitors and complex differentiation robs the buyer of his
power. Also, salons do not recommend products. They just recommend services. They select
the products themselves. The buyer does not have power here. Also, since the salons also
would have tied up with Wella, would not have that much power. Unless salons get together
and change the brand, there is not much buyer power
5. Supplier power - Being a niche product Wella does not sell much compared to Sunsilk. This
keep the number of raw material suppliers to a minimum. This may give rise to supplier
power.

Growth of Herbal
Market
Growing need for
expert solution

Innovative Product
Status Symbol
Expert Formulation

Chemical Intensive
Salon-only product
Secondary Product

Its experienced and

strong product
development
team can build products
for mens hair care

Its R&D team can develop

chemical free products

segment

Experiment-ation
Rigorous
advertisement

Using innovative
product technology to
leverage
experimentation

It should formulate herbal

shampoo to leverage
experimentation by consumers

Segmentation and Targeting

Segmentation for Sunsilk
Demographic

Psychographic

Behavioural

Gender- Segmented the

Benefits sought

Frequency of buying- Its

market towards female

gender

nourishment for normal

Age- Age group

Segmentation 18-30

Geographic- Segmented
the market into three sub-

Ones who need

hair
The ones who need
extra body for thin and

Asia/Pacific, Middle east ,

limp hair
Conditioning, extra

colours and variety of coloured

products convinces its

hair
The ones who need rich customers to try and purchase
its diverse products
black shine and dull

continents i.e.
European countries

appealing tag line Life in

Usage- The brands cheap price

and availability in sachets
makes the customer use it more
frequently i.e. 3-4 times a week

shine and style for dry

Loyalty- Sunsilk has appointed

hair
Oil free hair for only

various hair experts to provide

Locality- Broader

hair type that looks flat

and scalp therapy, various stalls

segments involved the

and grassy due to the

are setup in the malls for such

urban and semi-urban

excess of moisture

exposure

Income group- upper and

middle class income

areas, later lower income

group in rural areas was
segmented as well
Occupation- Highly
important segment
involved the college youth,
couples and young
working women

consultation on hair treatment

Occasion- The product aims at

making the females instantly
ready for occasions such as
marriage, party etc.
Location- Sunsilk makes itself
available through all modes i.e.
E-commerce websites,
Supermarkets, retail stores

Segmentation for Wella Professionals

Demographics

Psychographics

Behavioural

Gender- young professional Brand came up with diverse

Frequency of buying- Young

women

products to meet ones

women looking for hair

desires such as casual look

treatment and hair styling at

while going out for a lunch

hair salons once in a week

Age- 25+ age group

segmented by the brand
Geographic- Segmented
the market on the basis of
climatic condition for

or attending an
organizational seminar
Benefits

Usage- The product is being

used twice in a week
Loyalty- Customized takeaway

different countries such as

The ones whose hair are dry

product and expert consultation

USA, UK, India

and need moisturizing

through online channels i.e.

nourishment, the brand

Wella India

Income- brand segmented

the middle and upper class
group who could afford
their product
Locality- The brand aims at
population of urban area
Occupation- segment
market is the young
professional working
women who lack time and
need instantaneous hair

majorly focuses on this

segment and has a great
product meeting this nee
the ones who need to
maintain and take care of
the coloured hair styling

Occasion of purchase- hair

styling for presenting at
organizational seminars,
marriages and corporate parties
Location of purchase- Wella
hair salon, professional hair

the ones who are struggling

salon and parlours, Wella store,

with hair fall, the brand

E-commerce sites

provides expert consultation

in this regard

treatment

Targeting for Sunsilk | Market Segmentation Based Targeting

The main target market of Sunsilk is women between the age of 18 to 30 years belonging to
lower and middle income groups. Sunsilk Shampoo bottle (250 ml) sells for about INR 270.

Sunsilk targets multiple segments in the market. It chooses its target segments on the basis on
purchasing power (products with varying sizes), buying behaviour and benefits sought by the
customer - they have shampoo variants such as Lusciously Thick and Long Shampoo,
Damaged Hair Reconstruction Shampoo, Black Shine Shampoo, Sunsilk Perfect Straight
Shampoo.
All their recent advertisements portray a middle aged woman or a college going girl who is
facing a hair problem or wants to improve their hair condition. The whole ad shows the
benefits of using the Sunsilk shampoo and how it easily solves the problem. The packaging
design for new Sunsilk range is exciting and makes the brand look modern and contemporary.
This new range has clearly identified there is a separate product for each hair type.
The benefits are more compelling and relevant since the variants are harmonised in terms of
the product mix - fragrance, colour and ingredients are all well linked to cue the overall
synergy. The range comes in premium packaging and design.

Targeting for Wella Professionals

Wellas targeting is based on product segmentation where it targets a select segment but
products to that segment vary. Wellas target market majorly includes salon, stylists and
women belonging to high income group in urban areas. Further Wella only targets metro
cities like New Delhi, Mumbai and Bangalore. Price of Wella Professional shampoo is nearly
double that of Sunsilk shampoo. Wella wants to drive trial by young women but also engage
with hair salons and stylists who are key influencers. Wella distribution network is robust and
has good connection with the salons. Wella has partnered with a number of beauty salons
(Naturals, Strands Salons, a North India- based salon chain and Affinity Salon) in India for
their major sales and influence. This helps Wella to enhance its market presence and to
provide a picture perfect salon experience to the customers, which is unparalleled in India.

Additional Basis of Segmentation for Sunsilk

Sunsilk has segmented the market on the basis of hair types and hair problems, introducing a
variant for Thick and Long, Strong and Abundant, Radiant Shine and, Hairfall Solution etc. It
has tried to create segments for each of following, Hairfall, Thick and Long, Perfect Straight,
Radiant Shine, Black Shine etc.

Sunsilk has created a segment for Straight hair and positioned itself with its variant Perfect
Straight that has been a successful variant helping women maintain straight hair for long
periods without any additional hair products.
Sunsilk for Curly Hair, Sunsilk Curls Lock - Sunsilk can create a market segment for Curly
hair and target it. This segment is relatively huge, especially in South India and has remained
relatively unharnessed. By targeting this segment, Sunsilk will create a large number of
customers who will be loyal to it owing a lack of competition and a relative beginners
advantage should offerings to this target group grows. It will be a psychological segmentation
created on benefits sought.
Pros and Cons:
Pros- Since curly hair and straight hair are complementary to each other, creating a market
segment for curly hair and targeting it will help Sunsilk in roughly targeting all women in the
age group of 18-30 years.
Cons- Targeting a market segment for curly hair will make Sunsilk lose consumers of its
other product variants as there might be an overlap, example: A woman who uses Strong and
abundant variant of Sunsilk switches to Curls Lock variant when the latter is launched. So,
even after launching a new variant which demands a huge expenditure, Sunsilk might fail to
tap in new customers.

Additional Basis of Segmentation for Wella Professionals

Behavioural (Benefit Sought): Herbal/Organic Shampoo - The Indian hair care market has
increased from INR 82 billion in 2010 to INR 176 billion in 2015. The market is expected to
grow at a CAGR of 8% to INR 262 billion by 2020. With the renewed interest in the natural,
organic, chemical-free shampoo and other hair care market, Wella can introduce a high-end
herbal product. Based on the results from google trend for the search term Herbal Shampoo,
it has been established that states of Karnataka, Tamil Nadu, Delhi, and Maharashtra remain
the prime markets for herbal product. Wellas distribution network through salons is wellestablished in Delhi and Mumbai. Distribution network of salons along with the need for
herbal category can be a good segmentation for Wella
Pros & Cons

Huge market provides impetus to the sales of Wellas herbal variant. However, there is a
competition from high-end Herbal and organic-only brands like Forest Essential and Organic
Harvest. Wella would have to invest in advertising the herbal product as the product is
contrary to its already existing chemical-rich products. Therefore, the consumers may take
time in establishing trust on its organic product variant.

Positioning for Wella and Sunsilk

Positioning Statement for Sunsilk Co-creation - Sunsilk co-creation is a brand that
has positioned itself as a hair expert for the young aspiring women. The intended
positioning of the brand has changed from Beauty Shampoo to Hair Expert with the
change of Sunsilk to Sunsilk Co-creation.

Current positioning strategy for Sunsilk

Parameters

Illustration

Product attributes

Sunsilk Co-creations does ingredient based marketing like the

Natural Recharge contains Ginseng Root and Oil, the Thick and
Long variant has Keratin Yoghurt Complex

User Image

Sunsilk Co-creation targets young independent women in the age

group of 18-30 years

Use/application

The brand is positioned on the basis of benefits sought like there

is a variant for thick and strong, hair fall control

Product Class

Sunsilk uses hair conditioning as a complement to the shampoo

as Sunsilk serves three functions of Cleansing, nourishing,
conditioning

Competitors

Garnier Fructis

Occasion of Use

Since March 2016, Sunsilk started marketing Long and Healthy

Growth Shampoo as a wedding season essential

Frame of Reference for Sunsilk - Sunsilk is a leading brand for young women in their 20s,
aiming to help them tackle the dramas of hair, so that they can never be held back. It is a
market leader in Shampoo range, competing with major brands like Dove (HUL), Fructis
(LOREAL), Pantene (P&G)

Sunsilk

Dove

Fructis

Pantene

Expert Solution

Gender Specific

Youth Centred

Carried forward through generations

Affordability

Vibrant Packaging

Celebrity Association

Single serving

Critique the current positioning strategy used by Sunsilk - It is evident from the marketing
campaigns that Sunsilk has positioned itself to be a Shampoo brand for the young,
independent women of age group 18-30 years, in India. Sunsilk has become a household
name for shampoo in urban as well as rural India. With Sunsilks advertisement and other
marketing campaign, it might be hard for women in rural India to relate to Sunsilk, even
though this segment is a major target.
Their advertisements make it hard for women above 35 years to relate to Sunsilk. This is a
disadvantage because Sunsilk has been branded as a shampoo that has been passed through
the previous generation, i.e. the young women who are loyal patrons of Sunsilk are so
because their mothers used Sunsilk. Sunsilk was a tried and tested brand, a shampoo that they
could trust. If women above 35 years stop relating to and stop subsequently using Sunsilk, the
next generation of women will be devoid of that trust that women of this generation have in
Sunsilk.

Two other ways in which Sunsilk can be positioned

a) Sunsilk for Curly Hair - Sunsilk can position itself as a shampoo brand for women with curly
hair by introducing a new variant for curly and wavy hair. A variant of this sort by hair expert
Ouidad is present in other countries like Italy under the name Curl Lock. This variant can
serve a major segment in India which has not been focused upon by any major shampoo
brands in Sunsilks price range.

Positioning strategy based on User Image - This variant will be positioned for
young, 20s women with curly hair. It can be marketed as a variant that aims to

reduce Indias obsession with straight hair, giving women with curly hair their due

dose of hair care.

Positioning strategy based on Use/application -The variant will be positioned on
the basis of benefits bestowed on women with curly or wavy hair. The variant
developed by New York hair expert, Ouidad will deliver expert hair care solutions

to women with curly hair.

Positioning strategy based on product class - The hair expert Ouidad recommends
detangling curly hair after applying conditioner. So, hair conditioning becomes
important for this category.

b) Sunsilk for Climatic control - Sunsilk can position itself as a shampoo that checks the impact
of humidity on hair during the monsoon season in North India and typically throughout the
year in South India. This segment has been relatively unexplored by shampoos in the price
range of Sunsilk.

Positioning strategy based on occasion of use - Sunsilk can position itself as a

shampoo brand for beating humidity frizzing during months of high humidity.

Print ad for Sunsilk which reflects the new segmentation and positioning

Sunsilk print ad.png

Pros and Cons of the suggested strategy for Sunsilk

Sunsilk Curls Lock
Pro: Since the variant is already present in many countries abroad, introduction of this variant
will save costs associated with innovation while targeting a major segment.
Cons: Positioning itself as a shampoo for curly hair will be in contrast to the user image
portrayed in Sunsilks marketing campaign.
Sunsilk for Climatic Control
Pro: This variant will cater to all hair types but in a niche urban segment which can lead to
potentially high sales volume during the monsoon season.
Con: Penetration of this shampoo in rural and semi-urban India will be low as women there
will not relate much to such a variant.

Positioning Statement for Wella - Wella has positioned itself as a professional

shampoo for high-end consumers that usually buy shampoo after consulting the salon
professionals.

Current Positioning Strategy for Wella

Parameters

Illustration

Product

The brands are positioned based on the benefit sought from the product:

Attributes

& Moisturizing, sun care, brilliance, shine, etc.

Use/application
User Image

-Consumers in need of professional and salon style hair

-Consumers who have coloured hair

Product Class

Marketing the shampoo as a complementary product with its hair colour

Competitors

It does not market or position itself based on what competitors are doing

Quality-price

This is one of the primary positioning strategy as Wella products offer

professional products at premium price for many of the niche benefits:
Sun protection, ageing, etc.

Frame of Reference for Wella Professionals - Wella Shampoo has positioned itself as a
Professional Salon brand and a premium shampoo product that is to be used for coloured hair.
The competitors for Wella can be grouped into as the ones that market:
1.

Professional Salon Shampoo: Tresemme by HUL, Matrix by LOral

2.

Colour Protecting Shampoo: LOral Professional

Wella

Tresemme

Matrix

LOral
Professional

Colour Protection

Premium-ness

Innovative Products

Availability in Salons

Salon Recommended

Complementary

Professional Product

Vibrant Packaging

Well Marketed

International

Small Packaging

Celebrity Association

product to Hair Colour

Critique the current positioning strategy used by Wella Professionals - Wellas position as a
premium and professional salon recommended product has helped it gain popularity in the
niche segment of consumers that generally buy the product after recommendation from salon
professionals. The salon professionals recommend the product to consumers who have
undergone hair treatments such as hair colour, hair straightening, amongst others.
Since the product is recommended by the salon experts, the chances of brand shift by the
consumers is less and the loyalty towards the brand is high. The international status
associated with the brand helps the client to associate a status symbol with the product. The
premium-ness of brand helps the consumers believe that it offers high quality.
The current positioning strategy adopted by Wella mainly revolves around selling the
shampoo as a secondary product to consumers visiting salons for colouring the hair. This
strategy leaves out the consumers who have not undergone any hair treatment but need expert
solution for a specific hair condition. Ex: Shine: Wella Brilliance
Its distribution channel has been majorly through salons and it has clearly reflected in its
positioning of the brand. Therefore, it leaves out the consumers who do not visit Wella
salons/Wella-associated salons, but would still want a product that serves a specific purpose

Two other ways in which Wella Professionals can be positioned

Behavioural (Benefit sought): Herbal, Organic Shampoo

Product Attributes: The Indian hair-care market is propelling towards consumers that need

relatively chemical free products, herbal/organic shampoos. The high-end consumers look for
alternatives that are less harmful to their hair. The consumer perceive that shampoos with
herbal actives is less harmful than the chemical ones. This behavioural aspect of the
consumers can be used to position the shampoo to these consumers

The new herbal variant of Wella can position itself as a shampoo and a conditioner

without its association with the hair colour product. This can particularly help to target
consumers who believe that hair colouring is harmful for hair health. This can help Wella tap
on consumers that want a premium herbal shampoo without any association with hair
colorant

Wella print ad which reflects the new segmentation and targeting

Wella print ad.png

Pro

Cons

Targets new segment of consumers that By not associating it with hair colorant, it
need chemical-free products in line with the may hurt the long establish brand image
growing need of the Indian market

Performance of Brands on Digital Platform

Sunsilk
1) Sunsilk GangofGirls - Unilever launched Sunsilkgangofgirls.com, Indias first online all
girl community in 2006 which quickly caught the attention of the target group (female in the
age group of 18-30). The site offers its users access to various local and global experts to
address various hair care needs through its content, blogs and live chat room. The site
includes rich content of hair care and fashion and users can also take part in interactive games
and quizzes. It has used the star power of Priyanka Chopra to promote their product and used
to target women through advertisements.

2). Sunsilk created a virtual interactive hair studio on YouTube - Sunsilk launched its latest
range of products under Keratinology that promised salon-style treatment for hair, while
sitting in the comforts of your home. For this, Sunsilk created a complete salon with Malaika
Arora Khan on YouTube which was equipped with the best salon style treatment videos and
also recommended products for your hair. They could enter their name and upload a picture
and choose from the various treatments available to get a virtual makeover.
There were two more videos launched by Sunsilk, Sunsilk style diaries and 247 Expert
advice that had the brands hair experts mete out expert advice. The trio of interactive
design, useful videos and hair care advice formed an innovative story by Sunsilk.
3). Sunsilk sources experimental ideas for straight hair - For the new Sunsilk Perfect Straight,
the brand ran a two-phased campaign involving bloggers and the Facebook community with
the idea of sourcing crazy hair straightening ideas before introducing the new product. A few
months before the product launch, Sunsilk launched a blogging contest inviting bloggers to
share their craziest, wackiest and wildest experimental ideas to get perfect straight hair.
Simultaneously, a Facebook contest also invited crazy ideas for straight hair, without
revealing the new product.
4). Other Strategies adopted by Sunsilk - Sunsilk ran a blogging contest where one could
avail free samples, try the product and then blog their experiences. The YouTube brand
channel that featured Tanu and Jias stories with hair took a whole new turn. One could
interact with them while they both challenged each other at whose hair stayed perfectly
straight despite various physical activities ranging from doing the hula-hoop a 100 times to
camping and playing football. The interactive storytelling on YouTube coupled with cocreating straight hair stories with bloggers has helped promote Sunsilk Perfect Straight on
social media.

Wella
They have a Facebook and Twitter page by the name of Wella Professionals through which
they keep people updated about their latest products being launched. They have a catalogue
of ideas on Pinterest, a Wella Professionals YouTube Channel, and an Instagram page by the
name of Wella hair. They also have a Blog page: The Wella Blog where they have posted all
the photos, trends, collections, events and lifestyle about their brand.

Strategies that can be incorporated by both the brands on Social Media

Sunsilk
1) Sunsilk can launch a mobile application as youngsters in the age group of 18-30 years
generally find it very convenient to order anything via app. In fact, ordering online will help
in discouraging brand switching.
2) A podcast can be made on the shampoo incorporating a comedian like Kenny Sebastian
describing the product in a comic way.
3) They should give exclusive offers to their loyal customers i.e. discounts on certain items on
their website and should also give them rewards for every purchase they make which can be
encashed later on after having a certain amount of points.
Wella
1) They should build a mobile application for the Wella Professionals Shampoo to access hair
type and recommend hair care range for them. It can use Accuweather to evaluate if they
need to use the UV protection range that day.
2) They should have more online presence including presence on google AdWords and
advertisements as most of the people in India still dont know about their brand.
3) They can share the experience of their customers on their blogging site and get the customers
involved with the product.

Analysing the Consumers side of the story

The consumer survey was conducted on 55 participants and the insights from the survey were
summarised and analysed on several parameters via excel graphs. Perceptual mapping was
done to compare major brands on two attributes smoothness and premium-ness. Consumers
perceive Wella Professionals as a premium shampoo while Sunsilk is perceived exceptionally
on both smoothness and premium-ness. Dove shampoo fares well in consumers minds on
smoothness. Then, the characteristics expected from the shampoo were plotted on the basis of
ranks allotted by the consumers of shampoos. The first rank was taken by benefits given by
the shampoo, i.e. most consumer decisions are driven by the benefits the shampoo promises
to deliver. Most consumers ranked lather as the second characteristic they seek in a shampoo.
Then, the consumer insights was used to understand the market share of various brands in
Shillong. The major chunk of market has been captured by Dove shampoo by HUL with 25
percent of the market share. Head and Shoulders from P&G and Sunsilk from HUL have each
captured 20 percent of the market. Tresemme from HUL has captured 9 percent of the market

as per the survey findings. HUL with its brands Sunsilk, Clinic Plus, Tresemme and Dove has
managed to establish a cumulative market share of 67 percent of the market of Shillong.
29 percent of the consumers of the shampoo industry seek anti-dandruff attribute in a
shampoo. 24 percent of the consumers rank moisturising as an important benefit to be sought
from a shampoo. Other benefits sought from the shampoo are volume enhancement, anti-hair
fall, etc. Most consumers said that they use shampoo 2-3 times a week and most use it when
their hair starts becoming limp or unmanageable. 50 percent of the consumers said that they
change their shampoo often and maximum change it between 1-3 months of usage. This
makes the shampoo industry highly dynamic and must be taken as an insight by the big
players to work towards making loyal customers. HULs strategy of offering a number of
brands is intelligent too because when the consumers will change the brand, it is very likely
that they switch between two brands of HUL itself. High end brands like Wella which are
known for innovativeness might not come up with a number of variants, in that case they
should focus a lot on building customer and retailer relationships.
47 percent of the consumers buy their product from supermarket and 20 percent of the
consumers buy it from the local general stores. Only 1.8% of the consumers said that they
buy shampoo from a Salon. Wellas distribution channel focuses on salons and hair clinics.
From the survey, Shillong is not a rosy place for Wella to sell their product. 47 percent of the
consumers stated that their parents pay for the shampoo which can be an indicator of the fact
that major consumers of shampoo in Shillong are young (approx. <25). Major companies
should pitch youth targeted brands in Shillong.

Story from the Retailers

Two retailers based in Shillong were surveyed. The major aim of the survey was to gain first
hand insights from the retailers and compare those insights with the brands positioning
strategy to see if the strategy is actually working. From the survey, Sunsilk is a clear favourite
of the retailors. It is bought majorly by women in age group of 18-30 years but the distinction
in age groups isnt very visible. It can be inferred from the data that Sunsilk runs an efficient
supply chain in Shillong. The goods that suffer under logistics issues are replaced usually in a
fortnight. A good margin will encourage the retailer to push a brand. In a city like Shillong,
retailers have a huge influence on consumer choices. The most sold brands other than Sunsilk
are Dove and Tresemme which are HUL offerings but they are facing a tough competition
from Head n Shoulders from P&G.

Distributors Words & Insights

The distributor has been having a great experience working with HUL. He has been working
with the brand for the last 10 years and with M/S Phynsai enterprise & drug distributor for
the last two years. The enterprise has been distributing shampoo to the retailers in every part
of Shillong except Police Bazaar. He believes working with the company is contributing to
his learning which is increasing his ability to face daily challenges.
The distributor believes there is a competitive market for the product category i.e. shampoo
and thus HUL has a separate product line, HUL line 2 which caters to personal care items
other than shampoo (HUL line1 involves food & beverages and detergents). Although Sunsilk
is one of the leading brands in the shampoo market there are other brands such as Head &
shoulders, Tresemme, Clinic plus that have a huge demand as well. These shampoos are
generally distributed to the retailers in bottles and sachets to the wholesalers.
According to the distributor, the company is great in terms of the support and appreciation
given to the dealers. The company offers a varying incentive of 1-2% known as the channel
distributor target (CDT) to the distributors on achieving the targets. The company allows a
margin of 10% and 4.76% to the retailers and distributors respectively. In case of distributor,
a fixed margin of 3% is provided on the purchase of goods and an additional 1.76% is given
in case a salesperson fulfills the companys specific terms and conditions.
The M/s Phynsai enterprise & drug distributor gives purchase credit to the retailers in
Shillong and a payback time of 15-16 days depending on the relationship with the retailer
though he often faces problems in collecting credit. The distributor feels the pay scale defined
by the company should vary according to the location in which the distributor. The distributor
believes that the company is very receptive to suggestions and entertains them honestly.

References

https://en.wikipedia.org/wiki/Pantene
https://www.pg.com/en_IN/company/pg-india.shtml
https://en.wikipedia.org/wiki/Hindustan_Unilever
http://www.abhinavjournal.com/images/Commerce_&_Management/Nov12/16.pdf
https://www.projectguru.in/publications/overview-indian-shampoo-market/
http://www.businesswire.com/news/home/20151006005921/en/Research-Markets-India-Hair-

Care-Market-Outlook
http://www.business-standard.com/article/companies/p-g-slashes-shampoo-prices-toimprove-market-share-115080501765_1.html
http://www.indiablooms.com/ibns_new/finance-details/4706/affinity-salons-launches-itsvery-first-salon-in-mumbai-in-exclusive-partnership-with-wella-professionals.html
http://news.franchiseindia.com/Wella-ready-to-partner-with-Indian-salons-and-wellnesscentres-pan-India-2911
https://www.youtube.com/watch?v=cHY5ihLmoI0
https://www.youtube.com/watch?v=Kk-XgdKOaBM
http://www.sunsilk.it/articolo/dettaglio/1148004/blog-capelli-ricci-i-consigli-del-nostroesperto
http://www.sunsilk.it/articolo/dettaglio/1148004/blog-capelli-ricci-i-consigli-del-nostroesperto