Hair Care Industry in India

ICA PROJECT PRESENTATION GROUP H

ADHYA PRANAV PRATEEK RAHUL RATIKA

INDUSTRY ANALYSIS

Haircare Industry: Some Facts

Concentrated Industry: 3 players 43.9% market

share Fragmented in terms of brands 100% FDI allowed 100s of unorganised sector players Strategic market: national level Product scope: as large as possible

Sales($Million) of Haircare Products

2500

2000

1500

$million 1000 1945.5

1727
1510 1301.2 500 1123.5

0 2007 2008 2009 2010 2011

Porters Forces Analysis

COMPETITOR ANALYSIS

Focal Firm: Dabur

Revenue Share
Consumer Care
54%

30.50%

Foods IBD
1986: Public Ltd.
1986-96: JV Growth 1900-1936: Expansion Phase 1940: Dabur Amla 1948: Dabur CHavanprash 1996: 3 separate Divisions 1998: Professional Management 1999-2000 : Herbal from Ayurvedic 2004-2005 : Rebranding 2006: 2 billion market cap. 2006-2010: Expansion 2010: First overseas acquisition

2011: Enters skin care market 2012: Crosses billion dollar turnover mark 2012-13: Project Double 2012-13: Varika Rebranding & Relaunch

10.80%

1884 Started in Calcutta

Early 1900s Ayurvedic Medicins

Dabur Offerings
HEALTH CARE FOODS

OTC Supplements Digestives

PERSONAL CARE

Oral Care

Skin Care

SHAMPOO

HAIR OIL

Dabur (cont..)
HAIR CARE
17%

Of total sales Portfolio growth

CURRENT STRATEGIC FOCUS

LEADERSHIP

11% 2nd

Proffessional Help, Intrernal leadership development

Lagest player

FOCUS ON RURAL SECTOR

Project Double

FOCUS ON IT
Channel Management, Data Management. Communication

FOCUS ON R&D

COMPETITIVE ANALYSIS - SHAMPOO

About HUL

Entered Indian market with 1895

Competes in different categories like soaps & detergents, personal care, foods & beverages etc.

Market leader in Hair Care category, which comes under personal care

Major player in shampoo market with major brands like Clinic+, Sunsilk, Dove etc.

Recently entered hair oil category with premium products under Dove brand

Major products in Shampoo category

HUL
Clinic+ : Young girls, hair fall reduction

Dabur
Vatika: Initially herbal image, young girls; now have relaunched for fast moving girls

Clear: Dandruff removal

Sunsilk: Young urban females, trouble free hair

Dove: Mature women, nourishing hair

Ayure: Herbal products

Competitive Storyboard: Shampoo Category

From 1960s to 1990s, HUL came up with no. of products to establish category leadership

Dabur, a late entrant in Shampoo category, launched Vatika in 1999 with pro-herbal image

In response to it HUL launched herbal range of products under Ayure brand in 2002

Dabur re-launched Vatika in 2007 with fresh pro-young image to lure vast growing youth segment

With Dabur in its turf, HUL increased its ad spend to establish its brand Sunsilk deeper in the psyche of youth and launched a no. of variants; recent Gang of Girls Campaign

Competitive Storyboard (cont)

Dabur - HUL

High

Market Commonality
Low

Low

High

Awareness Medium
Motivation High Ability

Resource Similarity
HUL Ricardian Assets: brand image , distribution network Dabur Differentiating Advantage: Herbal offering, Indian Brand HUL Reaction: Allow entry, follow up with their own category cometing Products

High

COMPETITIVE ANALYSIS HAIR OIL

About Marico

Founded in 1988 in Mumbai

Flagship brand: Parachute coconut oil in 1990 followed by Saffola Present in four major segment- Hair Care, Health Care, Male Grooming, Skin Care

Turnover of Rs. 42.6 bn. With profit of Rs. 4 bn.

Market leader in hair oil with 27% market share

Hair Care BrandsParachute, Nihar, Hair & Care, Livon, Mediker

Hair Oil Market in India

Coconut Based 48% Amla Cased 15% Value added 27%
Parachute Coconut, Nihar Coconut together have 54% market share, Vatika Coconut closest competitor Dabur Amla is the market leader with market share of XX%

Niche categories: Cooling: Emami Navratna Almond based: Bajaj Almond drops, Dabur Almond, Nihar Almond Light: Maricos Hair & Care Hot: Parachute Hot Fragrance: Parachute Jasmine

Storyboard in Hair Oil Segment

1940s50s
1989-90 19912000 2001Present
Dominated by unbranded players Dabur Amla was launched on a national scale 1953, Bajaj Brahmi Amla launched; couldnt match the success of Dabur

1989, Premium oil Bajaj Almond Drops was launched 1990, Marico launched coconut based hair oil- Parachute at competitive price targeting young girls Dabur didnt see it as a competitor owing to different category 1991, Emami launched Navratna cooling oil; Marico & Dabur launched products in response but failed Dabur launches coconut based hair oil in 1995 under the brand name Vatika - herbal image and targeting young girls 1997, HUL launches Nihar coconut oil positioned as 100% pure; success in East India

Dabur competes in Amla, coconut & almond with Dabur and Vatika brand Marico acquires Nihar, proliferates products in all the major categories with Parachute, Nihar and Hair & Care brands

Competitive Rivalry Model

Dabur-Marico

High

Market Commonality
Low

Awareness High
Low
High

Motivation High Ability

Resource Similarity
Dabur Ricardian Assets: brand identity , learning curve, distribution Dabur unable to take deterrent actions like product proliferation etc. Marico dethroned Dabur due to quick entrepreneurial actions

Medium