1.

Introduction :-

1.1 Shampoo products :-

Shampoo is a hair care product used for the removal of oils, dirt, skin

particles, dandruff, environmental pollutants and other contaminant

particles that gradually build up in hair. The goal is to remove the

unwanted build-up without stripping out so much as to make hair

unmanageable.

The shampoo market in India has changed significantly since the 1960s

when it first became a lifestyle product in urban homes. As of 2008, it was a

very competitive market with dominant players such as Hindustan Unilever

Ltd. and Procter & Gamble Company. Analysts expect competition in the

market to intensify further with the entry of companies such as ITC Ltd. The

market is marked by intense competition from domestic as well as

multinational companies. The changing dynamics in the industry coupled

with comparatively low penetration rates offer the players in this market the

1
opportunity to grow in both the top and bottom ends of the market, according

to analysts.

The shampoo market in India was estimated at Rs. 21.41 billion per

annum as of February 2008, growing annually at a rate of 14.5 percent. The

market was dominated by India's largest fast moving consumer goods

company, Hindustan Unilever Ltd. (HUL), and one of the world's largest

consumer goods companies, Procter & Gamble Company (P&G).

1.2 FMCG (Fast Moving Consumer Goods) :-

FMCG refers to consumer non-durable goods required for daily or

frequent use. Typically, a consumer buys these goods at least once a month.

2
1.3 Advertising :-
Advertising is mass, paid communication, the ultimate

purpose of which is to impart information, develop attitude

and induce action beneficial to the advertiser (generally the

sales of a product or service).

Advertising is the means of informing as well as influencing

the general public to buy products or services through visual

or oral messages. A product or service is advertised to create

awareness in the minds of potential buyers. Some of the

commonly used media for advertising are T.V., radio,

websites, newspaper, magazines, bill-boards, hoardings etc.

Advertising is one of the aspects of mass communication.

Advertising is actually brand building through effective

communication and is essentially a service industry. It helps

to create demand, promote marketing system and boost

economic growth. Thus advertising forms the basis of

marketing.

3
OBJECTIVES OF ADVERTISING :-

•To Create Awareness: One of the important objectives of

advertising is to create awareness of the brand. Brand

awareness is mostly required at the introductory stage.

•To Build or Reinforce Attitude: Ads need to create,

maintain and reinforce attitudes in the minds of target

audience. The target audience should develop a favourable

attitude towards the brand.

•To Develop Brand Image: Advertising is a long-term

investment to build brand image. Advertiser needs to develop

intended image of the brand through effective advertising.

The personalities used, the content of advertising message,

the media selected etc. do help to build brand image.

•To Educate the Audience : Some of the ads intend to

educate the audience regardingthe use of product, the

4
handling operations, etc. Public awareness campaigns

educate the citizens.

•To Counter Competitors’ Claims: The advertisements

often counter the claims madeby the competitors. The

advertisement usually claims the superiority of the brand in

the advertisement.

BENEFITS OF ADVERTISING :-

Advertising works for the advantage of various parties.

Advertising helps the manufacturer at the introductory stage

as well as at the subsequent stages, and build a brand image

which helps the manufacturer prosper in the market. It also

facilitates proper promotion and distribution of the product. It

is also beneficial to the retailers. The point of purchase

displays act as an effective tool of advertising to promote

goods in the stores. It also makes selling much easier for the

retailers. It also works to the benefit of the consumers.

5
Advertising is the primary source of information about the

product to the consumer. It also keeps the consumers

reminding about the product. Advertising also inculcates

competition which eventually benefits the consumer as they

get better quality goods. Also it saves lot for the consumer

during the actual buying process

2. Review Of Literature
FMCG Industry In India :-
The Indian FMCG sector is the fourth largest sector in the economy. It

has a strong MNC presence and is characterized by a well established

distribution network, intense competition between the organized and

unorganized segments and low operational cost. Availability of key raw

materials, cheaper labor costs and presence across the entire value chain gives

India a competitive advantage. Penetration level as well as per capita

consumption in most product categories like jams, toothpaste, skin care, hair

wash etc in India is low indicating the untapped market potential. Burgeoning

Indian population, particularly the middle class and the rural segments,

presents an opportunity to makers of branded products to

convert consumers to branded products. Growth is also likely to come from

consumer 'upgrading' in the matured product categories. With 200 million

6
people expected to shift to processed and packaged food by 2011. Around 70

per cent of the total households in India reside in the rural areas. This presents

the largest potential market in the world. An average Indian spends around 40

per cent of his income on grocery and 8 per cent on personal care products.

The large share of fast moving consumer goods (FMCG) in total individual

spending along with the large population base is another factor that makes

India one of the largest FMCG markets. Rapid urbanization, increased

literacy and rising per capita income, have all caused rapid growth and change

in demand patterns, leading to an explosion of new opportunities. Around 45

per cent of the population in India is below 20 years of age and the young

population is set to rise further. Aspiration levels in this age group have been

fuelled by greater media exposure, unleashing a latent demand with more

money and a new mindset.

A distinct feature of the FMCG industry is the presence of most global

players through their subsidiaries (HLL, P&G, Nestle, Heinz, Colgate-

Palmolive), which ensures new product launches in the Indian market from

the parent's portfolio. Availability of key raw materials and cheap labor costs

give India a competitive edge. Rural and semi-urban markets will drive the

FMCG business in the country to a compounded annual growth of 50% for

the next six years. A good number of malls, nearly 220 in the country, would

7
come up in the next four to five years in semi-urban areas that would lead to

an increase in the demand for the products.

FMCG Products
• Detergents

• Toilet soaps

• Toothpaste

• Shampoos

• Creams

• Powders

• Food products

• Confectioneries

• Beverages

8
History of shampoo :-

The word shampoo in English is derived from Hindi chāmpo and dates to

1762.[2] The Hindi word referred to head massage, usually with some form of

hair oil.[3] Similar words also occur in other North Indian languages. The word

and the service of head massage were introduced to Britain by a Bengali

entrepreneur Sake Dean Mahomed. Dean Mahomed introduced the practice to

Basil Cochrane's vapour baths while working there in London in the early

1800s, and later, together with his Irish wife, opened "Mahomed's Steam and

Vapour Sea Water Medicated Baths" in Brighton, England. His baths were

like Turkish baths where clients received an Indian treatment of champi

(shampooing), meaning therapeutic massage. He was appointed ‘Shampooing

Surgeon’ to both George IV and William IV.[4]

In the 1860s, the meaning of the word shifted from the sense of massage to

that of applying soap to the hair.[5] Earlier, ordinary soap had been used for

9
washing hair[6]. However, the dull film soap left on the hair made it

uncomfortable, irritating, and unhealthy looking.

During the early stages of shampoo, English hair stylists boiled shaved soap

in water and added herbs to give the hair shine and fragrance. Kasey Hebert

was the first known maker of shampoo, and the origin is currently attributed

to him. Commercially made shampoo was available from the turn of the

century. A 1914 ad for Canthrox Shampoo in American Magazine showed

young women at camp washing their hair with Canthrox in a lake; magazine

ads in 1914 by Rexall featured Harmony Hair Beautifier and Shampoo[7]

Originally, soap and shampoo were very similar products; both containing

surfactants, a type of detergent. Modern shampoo as it is known today was

first introduced in the 1930s with Drene, the first shampoo with synthetic

surfactants.[8]

Composition

Shampoo is generally made by combining a surfactant, most often Sodium

lauryl sulfate and/or Sodium laureth sulfate with a co-surfactant, most often

Cocamidopropyl betaine in water to form a thick, viscous liquid. Other

essential ingredients include salt (Sodium Chloride), which is used to adjust

10
the viscosity, a preservative and fragrance[9]. Other ingredients are generally

included in shampoo formulations to maximize the following qualities:

• Pleasing foam

• Easy rinsing

• Minimal skin/eye irritation

• No damage to hair

• Feels thick and/or creamy

• Pleasant fragrance

• Low toxicity

• Good biodegradability

• Slightly acidic (pH less than 7), since a basic environment weakens the

hair by breaking the disulfide bonds in hair keratin.

Many shampoos are pearlescent. This effect is achieved by addition of tiny

flakes of suitable materials, eg. glycol distearate, chemically derived from

stearic acid, which may have either animal or vegetable origins. Glycol

distearate is a wax. Many shampoos also include silicone to provide

conditioning benefits.

11
Specialized shampoos

Dandruff

Cosmetic companies have developed shampoos specifically for those who

have dandruff. These contain fungicides such as ketoconazole, zinc pyrithione

and selenium sulfide which reduce loose dander by killing Malassezia furfur.

Coal tar and salicylate derivatives are often used as well.

All-natural

Some companies use "all-natural," "organic," "botanical," or "plant-derived"

ingredients (such as plant extracts or oils), combining these additions with

one or more typical surfactants. The effectiveness of these organic ingredients

is disputed.

12
Alternative shampoos, sometimes marketed as SLS-free, claim to have fewer

harsh chemicals - typically none from the sulfate family. They are sometimes

claimed to be gentler on human hair.

3. FMCG
3.1 Typical Characteristics of FMCG products
• Individual products are of small value. But, all FMCG products put

together account for a significant part of the consumer’s budget

• The consumer keeps limited inventory of these products and prefers to

purchase them frequently, as and when required

• Many of these products are perishable

• The consumer spends little time on the purchase decision. Rarely does

he / she look for technical specifications ( in contrast to industrial

goods )

13
 • Brand loyalties or recommendations of reliable retailer / dealer drive

purchase decision

• Trial of a new product i.e brand switching is often induced by heavy

advertisement, recommendations of the retailer or neighbors / friends.

3.2 Marketing strategies for fast-moving consumer goods :-

The current recession is the most brutal economic downturn in a lifetime. One

industry where the consequences of the recession are felt particularly hard is

the fast-moving consumer goods (FMCG) industry. In the past, this industry

was dominated by such well-known manufacturer brands as Ariel detergent,

Nescafé coffee, Philadelphia cream cheese, Flora margarine, and Pampers

nappies. However, in recent decades, so-called private labels or store brands –

brands owned by retail giants such as Wal-Mart, Tesco, Carrefour and Aldi –

have made huge inroads, especially in western Europe and the US. Today

they control 20 per cent of the US FMCG market, 35 per cent in Germany,

and more than 40 per cent in the UK Much of the loss of market share of

14
 manufacturer brands is initiated in economic downturns. Faced with a

pressing need to save money, shoppers turn to (cheaper) store brands. They

discover that the quality is good and, consequently, many stick with the brand

when the economy improves again.

Our research, spanning several decades of purchasing behaviour and multiple

recessions in countries across the globe, shows that the growth of private

labels in recessions leaves permanent scars on manufacturer brands. Will it be

any different this time? It is possible, but this will depend on how brand

managers respond to the current downturn. Brands that take a proactive stance

and treat the recession as an opportunity are likely to come out of the

recession stronger than before. In this article, we describe what they should

do. Two issues drive the outcome of how brands make it through the

recession: their equity at the onset of the recession; and investments in the

brand during the recession.

Brand equity

How strong is your brand? Is it a brand with many loyal buyers that people

know and trust and are willing to pay a price premium for? Or is it a weak

brand, commanding little loyalty and esteem? In sum, is your brand equity

high or low? Strong brands enter the recession in a much more favourable
15
 position than weak brands. They are on the shelves of more retailers, have

more shelf space and have a larger and more committed customer base.

Marketing budgets for stronger brands also tend to be higher.

In recessions, retailers across the world devote more shelf space to their own

brands (especially since they also command a higher margin). For example, to

cater to the increased price sensitivity of UK consumers in the wake of the

economic downturn, Tesco launched on September 17 2008, its fourth line of

private labels, called “Discount Brands at Tesco.” Sales of Tesco’s discount

and value ranges are up 65 per cent on last year, and one in four shoppers now

purchases these ranges. This puts a pressure on the number of national brands

the retailer still carries. Retailers are less likely to kill brands with a strong

and loyal customer base.

High-equity brands are also better insulated against the switching to private

labels behaviour that is ubiquitous in recessions, if only because loyal

customers incur higher switching costs when buying non-preferred items.

High-equity brands are known to suffer less, and to recover faster, following a

product-harm crisis. The same holds true when faced with an economic crisis.

Feb '09 Stimulus - FMCG Sector indifferent

16
The Government has come up with a third and last stimulus on 24th Feb '09 –

set of tax measures that seek to alleviate cost pressures for India and give a

phillip to demand for goods and services.

Measures Announced

1> Extension of the 4 per cent Cenvat rate cut (announced in December 2008)

beyond March 31 2009

2> 2 per cent across-the-board reduction in service tax

3> Further 2 per cent cut in excise duty for products that are at the 10 per cent

slab

4> Reduction of excise duty levied on bulk cement

With most large FMCG categories (soaps, detergents, personal products, hair

care products) currently at the 10 per cent Cenvat slab, makers of FMCGs

may reap selective benefits from the extension of lower Cenvat rates and a

further 2 per cent cut in the Cenvat rate. The benefits, however, may not be

uniform across players. Players such as Dabur, Marico, Britannia and Emami

presently suffer very low excise duty incidence having located their

manufacturing facilities in tax-free zones. They may see limited savings from

these concessions. Players such as Hindustan Unilever, GlaxoSmithkline

Consumer, Henkel and Colgate (excise amounting to 5-8 per cent of sales)
17
may see more sizeable excise savings. Its looks unlikely that many of the

FMCG companies will increase the prices of their products.

Brand investments in recessions

In recessions, shoppers have a natural tendency to switch to private

labels in order to save money. The logical thing for brands to do is to

counter this tendency by either lowering their own price, or by offering

sufficient non-price reasons to consumers to buy their brand. Our

research, spanning more than two decades of actual marketing

behaviour, reveals that most brands do exactly the opposite. First,

brands can counter the price advantage of private labels by ramping up

their own price promotions (temporary price reductions). Consumers

are more price-sensitive in recessions, so offering more price

promotions makes a lot of sense. Surprisingly, price promotion activity

for most brands actually decreases in recessionary times.

Second, the brand can counter the price advantage of private labels by

increasing its investments in advertising or new product activity. Both

provide non-price reasons to purchase the manufacturer brand – image

and improved functional performance, respectively. However, our

18
research shows that advertising and innovation activity decreases in

recessions.

Marketing research is also one of the first victims in a recession. These

outlays are discretionary, and offer an easy way to reduce costs.

Unfortunately, in bad economic times, it is more difficult to convince

consumers to buy your higher-priced brand. Optimal matching of your

brand with consumer needs is even more necessary in difficult times,

but evidence shows that brand manufacturers prefer to operate without

this crucial guidance during recessions.

Why do companies manage brands in such a counterproductive way?

After all, their brands are their most valuable assets. Cutting back in

recessions on price promotions, innovation activity and advertising

saves money in the short term, but undermines the long-term equity of

brands. We believe that it is due to a toxic combination of short-term

perspective that characterises the decision-making of many managers

and the tremendous pressure on the bottom line in recessionary times.

The easiest way out is to cut costs, and since price promotions,

advertising, new product introductions and marketing research are

largely discretionary costs, they can easily be cut in the short term.
19
 However, this behaviour weakens the equity of brands and

negatively impacts on shareholder value. We studied the stock price

performance of 26 global companies over a 25-year period and found

that annual growth in shareholder value for companies that do not tie

their advertising investments to the business cycle is 1.3 per cent higher

compared with companies that do let their advertising investments

depend on the business cycle. This translates into billions of dollars of

shareholder value that are destroyed annually by adopting this

erroneous practice.

In sum, companies often do the wrong thing by reducing marketing

expenditure despite compelling evidence that it pays to not follow the

general trend of cutting back during a recession. Put differently, one

should start to treat those marketing expenses as strategic investments,

rather than as short-run costs that can easily be cut when the going gets

tough. Note that “going against the trend” can be in absolute terms

(strong form) or in relative terms (weak form). Indeed, by holding

brand expenditures at pre-recessionary levels, while other brands spend

less, one may still increase one’s share of total market communications.

20
 Four scenarios

By combining two dimensions of brand equity at the onset of the recession

and brand investments in the recession, we get four scenarios.

1> Brand Equity (High), Reduction in brand investments: High Loss

Potential

2> Brand Equity (High), No reduction/increase in brand investments:

Recession is opportunity

3> Brand Equity (Low), Reduction in brand investments: Survival game

4> Brand Equity (Low), No reduction/increase in brand investments:

Double or nothing

Brands in cell (1) run the distinct danger that their equity will be significantly

eroded in the current recession. They start from a favourable position, but

their behaviour will lead to a significant weakening of their position vis-à-vis

private labels and the brands in cell (2). Managerial decision-making for these

brands is overly cautious and focused on the short-term. These brands should

emphasise activities that keep their customers satisfied (and, hence, retain

them), rather than focus on cost-saving activities. Indeed, customers lost

during the recession may never come back, even when the economy’s outlook
21
 improves again.

For brands in cell (2), the recession is an opportunity to pull ahead of their

short-sighted competitors in cell (1). Their proactive behaviour will

strengthen their (relative) position, not only in the recession period, but also

in subsequent years. Brands in cell (3) are in the worst possible situation: they

start weak, and their management makes the wrong decisions. They are prime

candidates to be de-listed by retailers who are pushing their private labels in

recessions – and many of them will. Their brand equity will decline, and

many will not even survive the recession.

The brands in cell (4) have the opportunity of a lifetime to fight back. They

start in an unfavourable position – their equity is low and, in normal times, it

would take tremendous marketing investments to break through the

competitive clutter. However, given that most brands cut back in recessions

(and, hence, belong to cells (1) and (3), brands in cell (4) are able to increase

their share of total market communication in the category dramatically by

maintaining or – even better – increasing their marketing investments. But it

is a risky strategy – if it is poorly executed, the anticipated increase in sales

and profits will not materialise and the brand may be discontinued.

22
 Conclusion

Just as slumps in the stock market offer great opportunities for courageous

investors, slumps in the real economy offer great opportunities to courageous

managers. All evidence indicates that a proactive strategy is associated with

increased brand success and shareholder value. If you wait till the good times

come back, you ignore the advice given by the legendary ice hockey player

Wayne Gretzky: “I skate to where the puck is going to be, not to where it has

been.” Recessions are not for the faint-hearted but who said that fair weather

makes great managers?

Authors: Jan-Benedict E.M. Steenkamp (jbs@unc.edu) is C. Knox Massey

Distinguished Professor of Marketing and Marketing Area Chair, University

of North Carolina, Chapel Hill, U.S.A. & Executive Director of AiMark, and

author (with N. Kumar) of the book Private Label Strategy: How to Meet the

Store Brand Challenge. Marnik G. Dekimpe (m.g.dekimpe@uvt.nl) is

Research Professor of Marketing, Tilburg University, the Netherlands and

Professor of Marketing, Catholic University Leuven, Belgium

3.3 Impact of Slowdown and Inflation and Changing Strategies

in FMCG Sector :-

23
The recent financial crisis has impacted several industries across the globe. In

this article I will be addressing the impact on FMCG sector in India and the

changing strategies which are being considered to counter the meltdown.

Impact on FMCG Sector

Post liberalization, because of the entry of a number of MNCs in India, the

FMCG sales went up. But soon between 2000 and 2004, FMCG sector got

hit, attributed to agricultural crisis and industrial slowdown. The crisis of

declining FMCG markets was also driven by new avenues of expenditure for

growing consumer income such as consumer durables, entertainment,

mobiles, motorbikes etc. Indian population was all set to experience the new

basket of products, but with cut-down on FMCG products. This lead to low

share of FMCG spends in the consumer’s wallet.

But every year the disposable income was increasing, from $424 in 2002 to

$599 in 2007. There was an inflection in 2005, when they could spend on

value added/ premium products along with the new basket of products. This

was the boom stage; all categories were growing at healthy double digit rates.

As the share of FMCG spend has come down over the last few years, high

24
 inflation will not have a major impact on the consumer. The incremental

expenditure will not pinch. In the current slowdown and high inflation, my

hypothesis is that the consumers may not reduce the expenditure on FMCG

products; rather they may cut down expenditure on expensive restaurants.

People may prefer local cinema halls or in-house entertainment (Movies on

Demand), than multiplexes. Consumers may prefer a local transport than

Taxis. They may hold their decision of buying a new car for sometime.

Having said that let me discuss what possible impact can be there on FMCG

sector.

1. Marginal Slowdown in products with low perceived value

Can you think of consumers stop consuming Atta in North and Rice in South

in the current scenario? Will consumers stop bathing and washing their

clothes? The answer is No!! The simple reason being it’s a necessity. Now the

next question is whether consumer will buy expensive/ premium detergents or

the basic ones. I think that if the perceived value from the offer is high,

consumers will not downtrade to cheaper brands. This means that “Value for

Money” products will not be impacted. Here “Value for Money” is

independent of the price. There may be products that are inexpensive, but
25
 may offer less value to the consumers. Those will get impacted.

Therefore, large mass FMCG segment, which deliver value, may be insulated

from the vagaries of the financial market; the under-penetrated premium-end

category could face the heat.

From 2005, we have seen willingness in consumers to move to evolved

products/ brands, because of changing lifestyles, rising disposable income etc.

This was the key reason for FMCG companies like HUL, P&G, Marico

focusing lot on value-added products and premium-end products to drive their

growths. We all have seen big launches of two premium Anti-Ageing brands,

namely Olay and Pond's Age Miracle.

In the current scenario, there may be some hit to the premium FMCG brands,

because of mainly two reasons:

1. Products which are not differentiated and have low perceived value will be

impacted. Consumer may reconsider buying expensive skin care products,

high-end food items.

2. Some consumers who were ready to upgrade from popular to premium

brands may hold, as they may find more value in popular brands
26
 In a nutshell, consumer will look for value and not the MRP.

2. Rural FMCG Sales: The growth engine

In last few months we have several FMCG categories like shampoos,

toothpaste, hair oils etc growing faster in rural than urban markets. This is

attributed to higher prices of farm produce, farm loan waiver and rising rural

income. These consumers are not impacted with the global slowdown. The

rural consumers are upgrading to higher end products, which is driving the

volume sales of FMCG companies.

Now to understand the impact on FMCG sales, let us see the split. Rural,

semi-urban and urban contributed 57%, 21% and 22% respectively in 2007-

08. Rural with the highest base is growing the fastest. So even if there is

marginal drop in premium and value-added products (as mentioned in the

previous point), the overall sales would not be impacted much. Therefore,

FICCI’s prediction of growth of FMCG sector by 16% may marginally come

down, because of less than expected growth rates in the premium segments.

Changing Strategies in FMCG Sector

27
As mentioned in the first half of my article, the overall impact on the FMCG

sales will be marginal. Heavy dependence on the agri-sector and FMCG not

being very capital-intensive are among the factors that have insulated the

sector from the downturn. But rising input prices, inflation and increased

commoditization of products are forcing FMCG companies to adopt new

strategies, to have a viable business proposition. Let me enlist few of the

strategies which companies have adopted and the outcome of the same.

1. Increase in price: Due to increase in raw material prices, many companies

were forced to increase their prices and pass on the cost to the consumers.

a) HUL: Hiked the price of its detergent bar Surf Excel (120 g) earlier known

as Rin Supreme from Rs 13 to 15. They have also increased some of their

toilet soap brands

b) Tea Companies: Tata Tea and Duncans Tea have also hiked prices for

select brands in their stables. Even regional players like Royal Girnar and

Soceity Tea have increased prices of their brands to compete with national

players

c) Britannia: Hiked the price of its popular brand ‘Britannia NutriChoice

Digestive’ from Rs 14 to 15.

28
 Some companies have been able to maintain the prices. Parle Agro has not

changed the price of Frooti in spite of upward pressure on prices.

It may be easy to increase the prices of premium products but in case of

popular products, the preferred choice is between reducing grammage and

maintaining the same price points or introducing another price point to suit

consumer pockets.

2. Introduction of lower SKUs: To prevent down trading, the companies

have introduced packs with lower SKUs so that per unit purchase does not

pinch the consumer’s wallet. With that companies are sharpening their focus

on the existing smaller packs and increase their availability.

a) Henkel: Introduced a new 400 gm pack of Henko washing powder at Rs

40 and withdrawn the 500 gm pack that used to sell for Rs 46. As quoted by

Henkel, “A family of four requires only 400-425 gm of washing powder in a

month. We withdrew the 500 gm packs as they were making consumers spend

more and consume more”. They have reintroduced Pril liquid for Rs 50 (425

gm bottle), down from Rs 55 (500 gm). They recently brought out its popular

Fa deodorant in 75 ml and Margo soap in 40 grams.

29
 b) Procter & Gamble: P&G has reduced the pack size of its flagship

detergent brand ‘Tide’ from 1 kilo to 850 gm while maintaining the price

point at Rs 62. They have also also reduced the size of its 500 gm to 480 gm

at the same price.

c) Gujarat Cooperative Milk Marketing Federation: Amul introduced 25

gm packs of butter few months back, which is now registering higher sales

than the traditional 100 gm and 500 gm packs. Same has happened to their

milk powder. They used to sell more of traditional packs of 200 gm, 500 gm

and 1 kg, with the 500 gm packs selling the most. In the recent scenario, 25

gm and 50 gm packs are selling in higher numbers.

As an outcome, companies are registering faster offtake in the mid-sized

packs.

3. Cost Cutting Strategies: While companies resorted to price hike, many

companies are exploring ways to cut down cost.

a) Companies are busy in strengthening their distribution and logistics, by

bringing in more efficiency and innovation in the supply chain. Companies

are closely monitoring their stock levels and loading patterns

b) Soap companies have shifted to cheaper options of raw materials to source

30
 their products at a competitive price.

c) Some companies have cut down their spends on advertisement

4) Mergers and Acquisitions: The turmoil in global markets seems to have a

favorable impact on Indian FMCG majors’ acquisition. While many big

FMCG companies find this situation an ideal opportunity to go for

acquisitions, there are others who are cautious to invest in M&A. CK

Ranganathan, chairman & managing director, CavinKare Pvt Ltd said that the

global melt down will have a favorable impact for Indian companies’

acquisition plans. According to him, it’s an opportunity for them to acquire

companies as they get good value for money. The current financial crisis may

offer more opportunities because of better valuation.

5) Restructuring to leverage synergies: With the ‘power of one’ strategy,

PepsiCo is aligning its beverages and snacks businesses under a common

leadership. This will help them to maximize synergies of the two businesses

across key functions such as procurement, agriculture and production, which

will lead to production efficiencies. This will help them to minimize the price

hike.

Outcome: FMCG sales & profit unaffected despite mayhem

31
 In the June quarter, FMCG companies saw an impressive topline growth.

However, rising input prices and inflation impacted their profitability. To

counter the decreasing profitability, as mentioned above, companies adopted

multiple strategies.

As an outcome, if we look at September quarter results, it clearly shows that

the FMCG sector is not impacted, despite rise in raw material cost; credit

crisis and the global meltdown. The combined net profit of 12 Bombay Stock

Exchange (BSE) FMCG index companies has increased by 14% as compared

to the same quarter last year. In fact, net profit of 350 BSE-500 companies

increased 7% in the July-September 2008 quarter, as compared to the same

period last year.

The robust net profit was boosted by a 21% increase in net sales of these 12

companies, despite the fact that raw material cost increased by 29% as

compared to the same period last year. This clearly indicates that companies

were able to offset the input cost hike by passing it on to the consumers as

retail prices of goods in this segment increased on an average by 10-20% in

the last few months. The sector is showing strong volume growth across

product categories.
32
 Has the recent increase in prices of FMCG products impacted your

FMCG buying behavior?

a) Downgraded from Expensive Brands to Cheaper Ones

b) Stuck to your old brand; but moved to cheaper SKUs

c) No change in buying behavior

References

Top-end FMCG products may witness slowdown (Times of India)

FMCG cos remain unaffected despite turbulence (Financial Express)

PepsiCo to go ahead with India plans (Economic Times)

Slowdown in India won't impact growth, says Nestle (Business Standard)

FMCG: Strong volumes, margin pressure (Equitymaster)

Despite slowdown, FMCG cos put M&As on fast lane (Financial Express)

Inflation blues: FMCG prices set to rise (Financial Express)

FMCG companies push product launches despite inflation (Financial Express)

Inflation heat has not dampened FMCG offtake (Hindu Business Line)

Companies bet big on small packs to beat inflation heat (Economic Times)

Inflation: FMCG majors on a reinventing spree (Economic Times)

FMCG cos buck downtrend, may grow 17 pc (Ibef)

33
 FMCG firms in a fix over pricing strategy (Business Standard)

Corporates using sports events to promote their products

Whether it’s building brands, driving sales, or launching a new product,

corporate brands the world over are always trying to come up with

’new‘ and innovative ways to promote themselves. The use of major

sports events is a well-explored avenue with mega sports events such as

– English Premier League, Australian Open Tennis Championship,

Formula 1, etc, commanding high levels of sponsorship.

Like their counterparts in the west, Indian corporate brands are fast on

the heels of using sports events to leverage themselves. While quite a

few still embrace the standard marketing initiatives, more corporates

are exploring other platforms in the hope of extending visibility. Enter

sports. With more sporting events gaining prominence in the Indian

sporting calendar there are an increasing number of opportunities for

brands to showcase themselves.

34
The launch of the IPL last year, which saw numerous Indian brands and

personalities bidding for players, is a case in point. Vijay Mallya of

Kingfisher owning his own Formula1 race team, another example. A

more recent example, albeit on a more humble scale, is the Delhi half

marathon that happened on November 9th. Gaining prominence in its

own right, this event saw various ‘big’ brands take the traditional

sponsorship titles route – title sponsors, official aid care provider,

refreshments et al. However other corporate brands opted instead to

showcase themselves by creating costumes for the 7km Delhi Fun Run

race.

Indian quick service restaurant chain Nirula’s used the half marathon as

a pre-launch platform for the Nutribyte Burger®, a first of the

Nutribyte range of nutrilicious fast food – product child of Nirula’s

partnership with US weight management firm Nutritionvista. Tying in,

[appropriately] with the spirit of the half marathon, healthy lifestyle

through exercise and responsible nutrition, Nirula’s felt it a natural fit

to introduce its latest initiative – healthier fast food options for Indian

youth (Link)

35
To view Nirulas pictures of Delhi Half Marathon, please click here.

About Nirula’s:

Nirula’s, a reputed name in the hospitality industry, is a pioneer in the

family style restaurant business in India having set up the first outlet in

Connaught Circus, New Delhi in 1934. Nirula’s operates restaurants

under the brand name Nirula’s, casual dining outlets called Nirula’s

Potpourri and two hotels. The Group is present almost in 60 locations

across Delhi and NCR, Uttar Pradesh, Uttaranchal, Haryana, Rajasthan,

Punjab and Chandigarh. In June 2006, Navis Capital Partners and

Managing Director, Samir Kuckreja acquired the Nirula’s Group of

Companies. Navis is private equity fund based in Malaysia, which

manages US$ 2 billion in capital commitments. Samir Kuckreja is a

respected hospitality and retail professional with varied experience in

some of the best-known companies in the world.

About Nutrition Vista

Nutrition Vista was founded on the basic premise that for most working

adults access to healthy eating and weight management is not only time

consuming but also unreliable.

36
 To meet this unmet need, Nutrition Vista offers a convergence of both

online and off-line tools built around the services of their well-trained

dietitians who are certified by the Indian and/or American Dietetic

Associations (IDA, ADA) respectively. A US based company now with

an Indian presence, Nutrition Vista brings the latest in health

assessments and innovative tools that will help consumers get better

guidance, training and support on nutrition and related health issues.

Indian FMCG Sector Trends - 2008

In this post i have covered multiple trends happening in the Indian FMCG

sector.

1. Focus on Health

Companies are widening their health food portfolio to cash in on the rich,

urban, health conscious Indian. In recent we have seen flurry of products in

this segment. Have a look of some of them:

1.1) Sugar free Chywanprash

1.2) Organic spices/ pulses

37
 1.3) Multi grain pastas/ Biscuits

1.4) Processed foods particularly juices

1.5) Probiotic Ice Creams

1.6) Butter Lite (Nutralite)

1.7) Corn Flakes/ Oats

1.8) Lays (40% less saturated fats) – Snack Smart

1.9) Low Calorie Sweetners

2. Impact of Inflation: The expenditure of FMCG in the consumer's wallet is

coming down year on year. This is leading to low sensitivity with price

increases. ALmost a decade back people use to downtrade from expensive

brands to value for money ones. But now the trend is changing. Consumer are

not switching to cheaper substitutes. Rather companies have come with lower

quantity SKUs and make consumers switch from higher to lower SKUs and

not from premium to popular brands (like Dove to Lux International). Just to

give you an example, Henkel instead of increasing the price of their Henkwl

detergent from Rs. 46 to Rs. 50, they have launched a new SKU of 400gms

for Rs. 40. During the time of inflation, people shift to sachets of their brands.

Sales numbers of FMCG companies are quite robust.

FMCG spend now comprises a smaller share of consumer’s wallet

38
 3. Micro Segmentation/ Niches: Its interesting and funny to see that

companies are not leaving any opportunity to micro segment the market. I can

forsee that we are here to see further segments in different categories. Here

are some examples:

Age

a) Junior Horlicks

b) Junior Chyawanprash

c) Pepsodent Barbie for Kids/ Colgate Strawberry

Sex

a) Women’s Horlicks

b) Male fairness cream

Specialized Household Cleaners

a) Kitchen Cleaner: Mr. Muscle

b) Power Cleaner (Rust): Easy Off Bang

4. Low value SKUs - Sachetization: You name the category it has a sachet !!

We all know that it all started in 1980's with shampoos. I think Nano is an

interesting example of an automobile sachet. Here is a small list of sachets:

4.1) Shampoos

4.2) Butter (Munna Pack)

4.3) Hair Oils (Navratan – Thanda Thanda Cool Cool)

39
 4.4) Noodles (Chotu Maggi)

4.5) Ketchup (Pichko)

4.6) Toilet Cleaner (Harpic)

5. Jet Age Consumer Products: Becasue of changing lifestyles, busy jobs

etc marketers are coming up with Jet Age consumer products.

Ready to Eat

a) Con Flakes/ Oats

b) Pastas

c) Biscuits

d) Noodles

e) Pizzas

f) Burgers

Ready to Drink

a) Energy Drinks

b) Non-Cola Drinks (Juices)

Ready to Cook

a) Cut Vegetables

b) Soups

c) Paranthas/ Rotis

d) Snacks
40
 6. Mainstream Penetrated Growth Categories: The high penetrated

categories like Hair Oils, Washing Detergents, Detergent Cakes, Soaps etc are

expected to grow at a healthy rate of 10%, attributed to price increases (not

much impact of inflation - explained in point 2) and low volume growth.

7. Under-penetrated Growth Categories: Barring few main mainstream

categories as mentioned above, there are number of FMCG categories with

low penetration and are expected to grow by 20% during 2008-2009. Have a

look of that list:

7.1) Men’s grooming products

7.2) Skin care & Cosmetics

7.3) skin/fairness cream

7.4) Anti-aging solution

7.5) Shampoos

7.6) Toothpaste

7.7) Hair Colour

7.8) Deodorants

There lies a huge potential in these categories.

8. Low Per Capita Consumption: Currently we are nowhere near to other

41
developing countries in terms of per capita consumption. Be it Laundary, Skin

Care, Shampoos or deodarants. Marketers have put in efforts to increase the

consumption frequency or quantum of consumption per occasion. Colgate

started the "twice a day" campaign few years back. Recently we have Good

Night coming up with Double power pack. Per Re1 increase in per capita

consumption of a category will lead to growth of more than 100 crores (with a

popular base of more than 1 Billion)

9) Evolved Product Forms: 20 years back consumers had limited choices to

pick from. The days of Tortoise Mosquito repellent coils are gone. This is the

age of aerosols with value added functionality. I have picked up some

examples, were we have seen a change in the product forms. Here is the list:

Dish Wash: Powder to Bar to Liquid

Shaving: Creams to Foams/ Gels

Repellents: Coils to Aerosols/ Body Creams/ Gels

Air Freshners: Sprays to Electric

Toilet Cleaner: Acid to Harpic to In-Cistern

Some of the attractive ads :-

42
1. Thums Up

Baseline :- TAste the thunder

Description :-

The scene opens in the Akshay drinking Thums Up, when

suddenly agirl bungee- jumps and steals the bottle.

Akshay then indulges in an extrenme port of arkour all for his bottle of

Thumps Up. After a cat and mouse chase,

Akshay outsmarts the girl to get back his bottle. On being asked by him

the reason why she was stealing his bottle, she replies, "So that you

can follow me !".

2. IPL

Baseline :- Wapas apne ghar me

Description :-

A godzilla sized red carpet is tipped over from the top of a

mountain and gathers momentum while traversing India's landscape

and ends finally at stadium packed with eager fans reaveling 8 IPL

team icons - Sachin, Warne and the likes - ending with a high of a

tastefully composed welcome note.

43
3.4 Hair Care Facts

• The frequency of shampoo usage is very low. Most

consumers use shampoo only once or twice in a week.

In many cases, these products are used on special

occasions such as weddings, parties etc

• Some customers use shampoo only to address a specific

problem such as dandruff or when they need to

condition their hair

• Use of conditioners is not common. It is restricted to the

super premium segment or those who are very involved

with their hair care

• Some consumers use natural conditioning agents such

as henna

• About 50% of consumers use ordinary toilet soaps to

wash their hair

• About 15 % of consumers use toilet soaps as well as

shampoo for cleaning their hair

44
 • Brand loyalties in shampoo are not very strong.

Consumers frequently look for a change, particularly in

fragrance

• Consumers attribute lathering to the act of cleaning

• Major expectations from the product are improvement in

texture and manageability, giving softness and bounce

to hair, curing and avoiding damage to the hair

• An Indian needs more shampoo for a proper wash

( average 6 ml ) compared to 4 ml needed in Western

countries as most Indian women have long hair

• Most consumers do not use shampoo daily

• Regular users would need smaller quantity of shampoo

per bath. Hair tend to collect more dust due to dusty

environment and oiling habits

• Southern market is predominantly a sachet market,

accounting for 70 % of sachet volumes

Specialized shampoos

Dandruff
45
Cosmetic companies have developed shampoos specifically for those who

have dandruff. These contain fungicides such as ketoconazole, zinc pyrithione

and selenium sulfide which reduce loose dander by killing Malassezia furfur.

Coal tar and salicylate derivatives are often used as well.

All-natural

Some companies use "all-natural," "organic," "botanical," or "plant-derived"

ingredients (such as plant extracts or oils), combining these additions with

one or more typical surfactants. The effectiveness of these organic ingredients

is disputed.

Alternative shampoos, sometimes marketed as SLS-free, claim to have fewer

harsh chemicals - typically none from the sulfate family. They are sometimes

claimed to be gentler on human hair.

Traditional and prehistoric use

Indonesia

46
Early shampoos used in Indonesia were made from the husk and straw

(merang) of rice. The husks and straws were burned into ash, and the ashes

(which have alkaline properties) are mixed with water to form lather. The

ashes and lather were scrubbed into the hair and rinsed out, leaving the hair

clean, but very dry. Afterwards, coconut oil was applied to the hair in order to

moisturize it.[12]

India

In India, a variety of herbs and their extracts are used as shampoos. A very

effective shampoo is made by boiling soapnuts with dried gooseberry (amla)

and a few other herbs, using the strained extract. This leaves the hair soft,

shiny and manageable. Another product used is the mustard cakes left after

extraction of mustard oil.

Shampoo Awareness in India: Shampoo Awareness in India Urban areas -

90 %, accounting for 80 % of shampoo sold in the country Rural areas - 80 %,

accounting for 20 % of shampoo sold in the country

Evolution of Shampoo in India: Evolution of Shampoo in India HLL

undisputed leader from the early 90’s Sunsilk launched in 1964 ( General
47
Shampoo platform ) Clinic Plus launched in 1971 ( Family, health shampoo

platform ) Clinic All Clear launched in 1987 ( Therapeutic AD Shampoo )

Sunsilk re-launched in 1987 - Shampoo + Conditioner ( Beauty platform )

with Sachet SKU HLL Goes rural with Sachet Clinic Active launched in 1991

( with Pro Vitamin B - health platform ) Sunsilk re-positioned and re-

launched in 1994 ( Nutracare) - Pink for dry hair, yellow for normal hair,

green for oily hair and black for long hair

New Entrants into the Market: New Entrants into the Market P & G enters

India in Nov 1995, with the world’s largest selling brand - Pantene Colgate

Palmolive launched Optima also in Nov 1995 ( break through in Keratin

treatment ) Nirma launched Nirma Shampoo which went into rough weather

because it also had a detergent and soap with the same name. The brand name

also had low price connotations

HLL Dominance: HLL Dominance Clinic, Sunsilk, Organics and Lux and

their various brand extensions dominate the shampoo market In 1998, the

company re-launched Clinic and Sunsilk brands Sunsilk was re-launched with

Fruitamins. Today HLL has a 63 % market share in the shampoo market In

South India, Clinic Plus and Clinic All Clear put together have a market share
48
of about 70 %

The way forward: The way forward While toilet soaps have reached

saturation, there is immense potential for penetration of shampoos into Indian

households. According to NCAER, Shampoo penetration is expected to grow

from 314 thousand households in 1998-99, to 502 per thousand households in

2006-07.

Shampoo Boom in India

• In mid 1997, per capita consumption of Shampoo increased

• Of the Rs. 350 Cr. Shampoo market, the AD segment accounted for

a 20 % share

• P & G launched its Internationally acclaimed A & D shampoo H &

S in 1997 with Zinc Pyrithine ( ZPT ) - a unique anti-microbial

agent. There were 2 variants - regular and menthol

• Sachet sale became 40 % of all shampoo consumption in the

country

49
 • Clinic, Sunsilk, Organics and Lux and their various brand

extensions dominate the shampoo market

• In 1998, the company re-launched Clinic and Sunsilk brands

• Sunsilk was re-launched with Fruitamins.

Ad Budgets are on the rise

• The reasons are
– Lot of competition in the market
– Low penetration levels
– High potential
– Untapped rural market to reach

New dove moisture therapy shampoo with moisturizing serum replenishes the

moisture lost in daily wear and tear and helps protect hair from further

moisture loss. It also reduces static and flyways leaving hair looking healthy

and smooth, without weighing it down.

Different Shampoo Brands In India :-

• Sunsilk

• Vatika

• Ayur

50
 • Clinic all clear

• Head n shoulder

• Pantene

• Dove

3.5 Some of the product ads :-

Shampoo war :-
The price war between consumer goods giants Hindustan Lever [ Get

Quote ] and Procter & Gamble has intensified in the Rs 1,000 crore (Rs 10

51
billion) shampoo market. Procter & Gamble has slashed the price of Rejoice,

its mass-market shampoo brand, by over 20 per cent. Rejoice is positioned

against Hindustan Lever's best selling brand, Clinic Plus.

The price of a 100 ml pack of Rejoice has been slashed by 23 per cent to Rs

30 while a 200 ml pack has been marked down by 21 per cent to Rs 59.

In April, Hindustan Lever had relaunched Clinic Plus as a hair health benefit

formulation and had also cut its price. Clinic Plus is sold at Rs 30 for 100 ml,

Rs 55 for 200 ml and Rs 90 for 300 ml. For the first time, Procter & Gamble

is matching Hindustan Lever's prices, at least in the 100 ml segment.

Chester Twigg, director (marketing and sales), Procter & Gamble India

[ Images ], told Business Standard: "We have seen a very encouraging

response to the launch of Rejoice in India. The new prices are in keeping with

our policy to offer world-class brands to Indian consumers at a competitive

price. Procter & Gamble has no plans to further reduce prices of its Pantene

and Head & Shoulders shampoo brands."

52
When contacted, Hindustan Lever executives refused to comment on the

Procter & Gamble move. They also declined to comment on whether the

company would follow suit.

Hindustan Lever chairman M S Banga had been saying that the company

would take all necessary steps to enhance and protect its market share.

Hindustan Lever's shampoo brand portfolio, including Sunsilk [ Images ],

Clinic Plus, Clinic All Clear and Ayush, command a market share of 50 per

cent. Procter & Gamble, with Pantene, Head & Shoulders and Rejoice,

accounts for 15 per cent of the market in value terms.

Launched in 1988, Clinic Plus has a 25 per cent market share. Rejoice was

launched in January 2004 and, according to Procter & Gamble, Rejoice has

been performing well in the market.

Sachets account for over 70 per cent of the Rs 1,000 crore shampoo market.

The per capita consumption of shampoos in India is estimated at 38 ml, very

low compared with global consumption levels.

53
Recent Ad war between RIN and TIDE:-
Brand Update : Rin Vs Tide
Rin Strikes Again. But for the better or worse ?

Last day, I saw the latest ad for Rin , a comparative ad directly against

the competitor Tide. It was a shocker.

Watch the ad here : Rin Vs Tide

This is th e first time that HUL has directly

compared Tide with Rin. The ad even have the tagline " Rin offers

better whiteness than Tide".

According to ET, P&G has took HUL to court over this ad. The ad was

timed to coincide with the long weekend so that HUL could play the ad

before the Court hearing.

HUL is currently under severe pressure from its aggressive

competitors. The market share of most of HUL brands has come down

drastically over the last few years. The brands are facing pressure at all
54
price points. Along with the domestic pressure, HUL is facing the heat

from the parent Unilever. The Indian operations is under direct

scrutiny by the Unilever CEO Paul Polman.

Last year, HUL tried to restructure its brand portfolio and increased

the adspend on most of the core brands. But it could not arrest the

decline of the shares of some key brands to the competitors like P&G ,

Godrej and ITC.

This desperation has clearly manifested in the latest ad for Rin. What

on earth do a brand like Rin get into a direct comparative spat with its

competitor. The ET report mentions that the ad was created because

HUL executives feel that Tide is slowly neutralizing the whiteness

(point of difference) USP of Rin. Hence Rin is trying to tell the

consumers that it has more whitening property than Tide using a

direct comparison.

In my personal opinion, Rin chose a wrong way of telling its

superiority to the consumer . Last time I saw a direct comparative ad

war was between Horlicks and Complan. Horlicks started the direct

comparative ad and got a very very aggressive reply from Complan.

55
The current status is that Horlicks stopped the comparative ad and

Complan is continuing its aggression against Horlicks. It was an

unnecessary move from Horlicks which woke up a laid-back

competitor like Complan. I think that in that ad war, Complan won

over Horlicks ( not in sales terms but in share of noise ).

The same thing is going to happen with Rin. It is going to lose this war

primarily because there was no need for a direct comparison with Tide

atleast in the ads. . If you observe the ad, 22 seconds of the 30 second

ad is dedicated to Tide alone. That means in around 75% of the time,

the ad talks about Tide. Interestingly the ad even mentions the USP of

Tide as " It has fragrance and has whitening property". Then the rest of

the 8 seconds talks about Rin. So if HUL has blasted some 30 lakh in

the current promo, 22.5 lakh of it was spent on promoting Tide. Why

should you ever mention your competitor in your ads ???

Watching the ad, one homemaker commented " I never knew Tide and

Rin was from the same company, otherwise how can they show these

two brands together in the same ad ? " .

The current campaign lacks any long term objectives. The brand is
56
chosing a short-term path when the issue was a long-term competitive

threat.Instead of spending such money on this crap ad, HUL could

have run some serious sales promotional campaigns which could have

prompted consumers to opt for Rin . It could have filled the retail

outlets with Rin POPs. It could have run retailer campaigns to fill the

shelves with Rin rather than Tide. HUL still has a huge distribution

reach and strength compared to P&G, it could have won the war hands

down had it capitalized on the retailer support alone. If Rin was too

worried, it could have bought back Big B as the brand ambassador

which could have added punch to the tagline " Chamakte Rahna".

Now the outcome of the ad war will be that HUL will be retrained by

ASCII or the Court from further playing the ad . It means that Rin had

adapted an unethical means against the competitor which will cause an

unwarranted blemish on the brand reputation. Second outcome is that

it will encourage Tide to be more aggressive in the market. Tide now

has been officially and publically acknowledged as the competitor for

Rin. Third outcome is that an ad war will start which will benefit the

respective advertising agencies and the media.

57
Overview of shampoos/conditioners
advertising on TV during 2008

• 53 per cent rise in TV ad volumes of

'shampoos/conditioners' category during 2008 compared

to 2007.

• 'HUL' leads in advertising of 'shampoos/conditioners'

brands on TV during 2008.

Chart 2.1 :-

58
Chart 2.2 :-
59
Chart 2.3 :-

60
Some of the popular shampoo products ads:-

61
62
63
64
65
Sunsilk Shampoo : Unforgettable Hair
December 17, 2009 – 9:16 am by Bibhuti | No Comments »

“Unforgettable hair.”
Agency: JWT, Paris
Art Director: Giovanni Settesoldi
Copywriter: Luissandro Del Gobbo
Photographer: Riccardo Bagnoli
Published: 2006

66
4. Research Methodology :-

4.1 Primary Objectives of the study :-

• To understand the advertising appeal concept used by the advertisers.

• To study impact of it on consumer buying behavior

• To know about the latest trends in advertising industry

and how advertisers are trying to attract more and

more customers

67
4.2 LIMITATIONS OF THE STUDY

• Time constraint- The major limitation of this project is

the time period for this thesis because it is not possible

to look in to each and every aspect of advertising and

FMCG sector in such a short span of time.

• Since the results will draw on the basis of Information

which will be provide by the respondents; chance of

response error might possible. Disinterest of customers

may generate non response while collecting data.

4.3 Scope of the study

The research was carried on in Mumbai and Thane region. I have done

telephonic calling to people and have also visited to some of them.

4.4 Data sources:

Research is totally based on primary data. Secondary data can be used only

for the reference. Research has been done by primary data collection, and
68
primary data has been collected by calling with various people. The

secondary data has been collected through various journals and websites and

some special publications.

69
 5. Sampling:

5.1 Sampling procedure:

The sample is selected in a random way, it was collected through calls and

personal visits to the known persons; by formal and informal talks and

through filling up the questionnaire prepared.

5.2 Sample size

The sample size of my project is limited to 26 only. Out of which only 20

people attempted all the questions.

5.3 Sample design:

Data has been presented with the help of bar graph, pie charts, etc.

70
 6. DATA ANALYSIS AND
INTERPRETATION :-

Schedule :-

1) Sr. No -

2) Age Group - 18 – 20

20 – 25

25 – 30

30 – 35

35 – 40

40 – 45

45 – 50

50<

3) Sex - M/F

4) Educational

Qualification -

5) Occupation -

71
Questionnaire :-

1) Which hair care shampoo do you use for your hair ?

Reply :-

Table 1.1 :-

Sunsilk Clinic Pantene Dove Head n

Shoulder

5 6 4 2 3

Chart 2.4 :-

7
6
No Of Respondents

5
4
3
2
1
0
Shampoo

Sunsilk Clinic Pantene Dove Head n Shoulder

72
Chart 2.5 :-

15%
25%

10%

20%
30%

Sunsilk Clinic Pantene Dove Head n Shoulder

Interpretation :-

The survey shows that most of the people use the shampoos like Clinic,

Sunsilk and Pantene.

2) Are you regular user of this shampoo ?

a) Yes

b)No

Reply :-

73
 Table 1.2:-

Sunsilk Clinic Pantene Dove Head n

Shoulder
5 6 4 2 3

Chart 2.6 :-

16
14
No. of respondents

12
10
8
6
4
2
0

Yes No

Chart 2.7 :-

25%

75%

Yes No

Interpretation :-

74
 The survey shows that most of the people are regular user of the

shampoo and very few are not regular use of the shampoo.

3) What made you buy this particular shampoo ?

a) Satisfied with initial use

b) Friends / Families advice

c) Advertisement

Reply :-
Table 1.3 :-
Satisfied with initial use
Friends/ Advertisemen
families ts
suggestion
s

5 5 10

75
 Chart 2.8 :-

12

10
No. of respondents

Satisfied w ith initial use Friends/ families suggestions Advertisements

Chart 2.9 :-

25%

50%

25%

Satisfied w ith initial use Friends/ families suggestions

Advertisements

Interpretation :-
The survey shows that most of the people are influenced by the

advertisement of the shampoo to buy the product and some are satisfied with

the initial use and going by friends/families advice.

76
 4) Can you recall any hair shampoo ad ?

Reply :-
Table 1.4:-
Sunsilk Clinic Dove Head n
Shoulder
Pantene
7 6 4 2 1

Chart 2.10 :-

8
7
No. of respondents

6
5
4
3
2
1
0
Shampoo

Sunsilk Clinic Pantene Dove Head n Shoulder

77
Chart 2.11 :-

5%
10%

35%

20%

30%

Sunsilk Clinic Pantene Dove Head n Shoulder

Interpretation :-
The survey shows that most of the people could quickly recall the

advertisement of Sunsilk then Clinic and then Pantene. This shows how

these particular advertisement can quickly catch the peoples attention.

5) Which shampoo ad is the most appealing to you ?

Reply :-
Table 1.5 :-

78
Sunsilk Clinic Dove Head n
Shoulder
Pantene
7 5 3 4 1

Chart 2.12 :-

8
7
No.of respondents

6
5
4
3

2
1
0
Shampoo

Sunsilk Clinic Pantene Dove Head n Shoulder

Interpretation :-
The survey shows that most of the people are more attracted to the

advertisements of the Sunsilk followed by Clinic and Dove.

6) Why does this particular ad appeal to you ?

a) Storyline

b) Model

79
 c) Can’t say

Reply :-
Table 1.6 :-
Story Line Model Can't Say

7 9 4

Chart 2.13 :-

10
9
8
No. of respondents

7
6
5
4
3
2
1
0

Story Line Model Can't Say

Chart 2.14 :-

20%

35%

45%

Story Line Model Can't Say

80
 Interpretation :-
The survey shows that most of the people are more appealed by the

Model of the advertisements as the models hair are considered as the

inspiring and role "Model" for the shampoo users and then the "Story

Line" seems to attract the people and some people also seems to attracted

by some other reasons.

7) How well did the advertisement describe the (product/ service) ?

a) Very Well

b) Little confusing

c) Not Understandable

Reply :-
Table 1.7 :-
Very well Little confusing Not Understandable

11 6 3

81
Chart 2.15 :-

12

10
No. of respondents

Very w ell Little confusing Not Understandable

Chart 2.16

15%

55%
30%

Very w ell Little confusing Not Understandable

Interpretation :-

82
 The survey shows that most of the people believe that the

advertisement very well described the product and some people also find it

little confusing.

8) After viewing the advertisement will you consider purchasing this

product ?

a) Yes, I would definitely buy

b) I might buy this product

c) No, I would definitely not buy

Reply :-
Table 1.8 :-
Yes, I would definetly buy I might buy this product No, I would definetly not
buy

6 9 5

83
Chart 2.17 :-

10
9
8
No. of respondents

7
6
5
4
3
2
1
0

Yes, I w ould definetly buy I might buy this product

No, I w ould definetly not buy

Chart 2.18 :-

25%
30%

45%

Yes, I w ould definetly buy I might buy this product

No, I w ould definetly not buy

Interpretation :-
The survey shows that most of the people after seeing the convincing

advertisements, may consider buying the shampoo and few people were

sure of buying the product and few of not buying the product.

84
 9) While buying the shampoo whose advice or suggestion do you take ?

a) Friend’s and Colleagues

b) Kids

c) Spouse

d) Expert

Reply :-
Table 1.9 :-
Friends and Kids Spouse Expert
colleagues
8 2 3 7

Chart 2.19 :-

9
8
7
No. of respondents

6
5
4
3
2
1
0

Friends and colleagues Kids Spouse Expert

85
 Chart 2.20 :-

35%
40%

15% 10%

Friends and colleagues Kids Spouse Expert

Interpretation :-
The survey shows that most of the people takes the advice of their

Friends or Colleagues and Experts advice or suggestions to buy the

shampoo as these people have more knowledge and experience of the

product and are most trusted.

10) Which media of ads appeals you the most ?

a) TV

b) Newspaper

c) Bill Board

d) Radio

86
 e) Internet

Reply :-
Table 1.10 :-
Friends and Kids Spouse Expert
colleagues

8 2 3 7

Chart 2.21 :-

7
No. of respondents

5
4

3
2

TV New spaper Bill Board Radio Internet

Chart 2.22 :-

87
 15%

35%
10%

30% 10%

TV New spaper Bill Board Radio Internet

Interpretation :-
The survey shows that most of the people are appealed by the

advertisements shown on TV and Billboard. Few also seems to appealed by

advertisements on Internet, Radio and Newspaper.

7. Conclusion :-

7.1 Findings :-

1) Advertising is an essential part for any marketer in

today’s arena for attracting more and more customers & these strategies

affects customer buying behavior.

2) Although many respondents could recall ad more, but not that many used

it.

88
3) Satisfaction from initial use and friends and family advice played a

significant role in repeat purchase.

4) Most of them could recall an ad because of the models in it.

7.2 Conclusion :-
The researcher has thus come to the conclusion from the above study

that the buying behavior in shampoo products is much affected by

advertising but factors like spouse and friends play a significant role in

purchase decision. Brand recall did not always result in buying.

89
Bibliography :-

Books :
Kotler Philip - Marketing Management

Magazines - 4 P’s Business and Marketing , Business World

Websites :
www.rediff.com/money/2004/jul/28shampoo.htm

www. fmcgmarketers.blogspot.com

www.google.com

90
Annexure :-
Schedule :-

1) Sr. No -

2) Age Group - 18 – 20

20 – 25

25 – 30

30 – 35

35 – 40

40 – 45

91
 45 – 50

50<

3) Sex - M/F

4) Educational

Qualification -

5) Occupation -

Questionnaire :-

1) Which hair care shampoo do you use?

2) Are you regular user of this shampoo ?

a) Yes

b)No

3) What made you buy this particular shampoo ?

92
a) Satisfied with initial use

b) Friends / Families advice

c) Advertisement

4) Can you recall any hair shampoo ad ?

5) Which shampoo ad is the most appealing to you ?

6) Why does this particular ad appeal to you ?

a) Storyline

b) Model

c) Can’t say

93
7) How well did the advertisement describe the (product/ service) ?

a) Very Well

b) Little confusing

c) Not Understandable

8) After viewing the advertisement will you consider purchasing this

product ?

a)Yes, I would definitely buy

b) I might buy this product

c) No, I would definitely not buy

9) While buying the shampoo whose advice or suggestion do you take ?

e) Friend’s and Colleagues

f) Kids

g) Spouse

h) Expert
94
10) Which media of ads appeals you the most ?

a) TV

b) Newspaper

c) Bill Board

d) Radio

e) Internet

95