ECONOMICS ASSIGNMENT A study on observation & learning of shampoo market

SUBMITTED TOPROF.CHAKRABARTHY

SUBMITTED BYPRIYANJALI DAGA SECTION-C REGD.NO.-T-6048

THE OBJECTIVE OF THIS STUDY1.To evaluate the shampoo market of India from economic view. 2.Understand the demand of different shampoos in term their price,quality and many more parameters 3.What type of market is this-it is also countable THE RETAIL OUTLET I HAVE VISITEDFOODWORLD THE COMPANY ,THEIR BRANDS & THEIR PRICES AS I HAVE OBSERVED HUL PRICE(100 ml) P&G PRICE(90 ml) DABU R PRICE(1 00 ml) GARNI ER PRICE(100 ml) ITC PRIC E(10 0ml) Sunsil 56 k Clinic all clear Clinic plus 47 69 Head & 69 shoulder s Vivel anti dandruf f 69 Damage therapy Vivel 49 Pantene 59 Vatika 54 Fructis 64 Fiama 59

Dove

64

THE PHOTOS OF FOODWORLD & ITS SHAMPOO SECTION

The different brands of shampoos can be catagorised on these parametersBRANDS PRICE SUNSILK AVEREGE All Clear High Clinic plus low DOVE High PANTENE High HEAD& Very high SHOULDER FIAMA DI Average WILLS VIVEL Low GARNIER High VATIKA Average QUALITY AVERAGE Good Low Very good Very good Very good Good Average Good Average ADVERTIZING GOOD Good Low Very good Very good Good Good Good Good Average MARKET Good Good Average Very good Good Very good Good Average Very good Average DEMAND Good Good Average Very High High Very good Good Average Very good Average SUPPLY Good Good Good Exceelent Very good exceelent Very good Good Very good Average

We know what are the determinants of demand,they are 1.Price of the product 2.Income of the consumer 3.price of the related goods

4.Taste & preferances 5.Advertising Now the determinants can be described in processing demand in case of sunsilk 1.PRICE-The most important determinant of demand is price.Sunsilk practiced value-based pricing in which the strting price developes the market for them as well as satisfying the consumers.The price of a 100 ml sunsilk shampoo is 56.It is an average price in regards their quality.The quality is also average.So,the shampoo is well accepted by the consumers and the demand is also good.Sunsilk with their value-based pricing system they are getting their profits and also successful in holding the demand in the ever changing market. 2.INCOME -Normalyy income bears a positive relationship with demand.Observing the price of the sunsilk it can be stated that sunsilk is not for higher income group.We know that sunsilk is also available in pouches of Rs.3.So,it is very easy to consume sunsilk for lower income group.As we know,normal goods have positive relation between demand and income and inferior goods have negative relation between demand and income.We can catagorise sunsilk in normal goods.But increase in income will always increase the demand for sunsilk it is not granted.Because it is a average priced group,the increase in income can also decrease the demand for sunsilk.But now by doing the study the demand for sunsilk is good.From the lower income group to middle income group sunsilk is well accepted.Sumtimes higher income people also enjoy this product. 3.PRICE OF THE RELATED GOODS-If we see the table again,we can say that,except few products like dove ,clinic all clear,head & shoulder the prices of the related shampoos are not

very high.Sumtimes it is low also like clinic plus.So, there is a fair competition among them but sunsilk is successful to hold their market. 4.TASTES & PREFERENCES- The middle income peple,the school and college girls prefer sunsilk.As their income,culture and many other intermediates influence the consumption of a particular nrand ,I have observed that most of the college girls and middle income groups like to use sunsilk. 5.ADVERTISING-From the early days, sunsilk did its advertising part greatly.But if we look two years back the demand and market share ware decresing rapidly.Then they came with their old products in new packaging and also used filmstar Priyanka Chopra to introduce the brand new sunsilk.The result was obvious.it influenced greatly the young public and its demand started to rise up. 6.MARKET-The market for the shampoo is monopolistic competition.This market consist of many buyers and sellers over a range of element,which allowes the sellers to gain market shares in contrast to competitors.In this market condition,sunsilkdifferentiated its products and also sell them in different prices to cover at least a large portion of the market.

The another brand of Hindustan Unilever Limited is Clinic All Clear.It is basically a anti dandruff shampoo with different ranges.Now lets come to the alalysing part. PRICE-The price of 100ml clinic all clear shampoo is Rs.69.Mainly,this shampoo is meant for men.According to their quality their pricing is good.The demand of this particular shampoo from its launching to today is just great.If compared to sunsilk,its price is high but its demnd is also high and the company also supplies it in a better way as per demand INCOME -As the price of this shampoo is high so it can be stated that as income of the consumers increases the demand for this shampoo will also increase. PRICE OF RELATED GOODS-As clinic all clear is a anti dandruff shampoo,there are so many competetitors in the market like sunsilk,vatika,head & shouders etc.The price of vatika is comparatively low but quality is also low.But in case of head & shoulders there is a tough competition between the two.As they both are mainly anti-dandruff shampoo and the price of H&S is relatively high,they are tough competitors.Sumtimes it is seen that because of this reason the demand of all clear shampoo is fluctuating. TASTES AND PREFERANCES-Taste for this shampoo is broadly depend on men.Men prefer the shampoo most.At first its target was men only but later they wanted to catter their market among women also but they are not fully successfull because it was already accepted by the men and women could not accept this shampoo well.So,as taste and preference concern the demand for all clear shampoo is among the men is very high ADVERTISING- As long as advertising concerne clinic all clear advertising is very much standard.To increasetheir demand the used from John Abraham,Bipasha Basu,Asin,Shahid Kapoor to gain good

market share and they are successful

Now come to the clinic plus shampoo,the othldest & trusted brand of HUL shampoo section in INDIA. PRICE-The price of clinic plus shampoo of 100 ml pack is 47.No dought that the price is low but there is no meaning that the demand of this shampoo is high as its price is low.As quality concern ,in early days its demand was so much high as it was the oldest brand in India but nowa-days the scenario is totally different.May be its price is low but demand is also low. INCOME-In case of clinic plus shampoo,as income increases the demand of this shampoo will decreases.The demand for this shampoo is negative relation with the income.

PRICE OF THE RELATED GOODS-In concerne of price of related shampoos there is no shampoo of a reputed company with this price.So,there is no competitor in market.It ia meant for lower income group.So,its demand is basically high in lower income people and children. TASTES AND PREFERANCES-As already said,this brand is mainly preferred by lower income group and parents for their children.And it is also a major point that this product is out of fashion and thats why the demand is also decreased.But some old people still preffer this brand as it is most trusted for them. ADVERTISING-HUL never expensed much amount on advertising for this shampoo.Once they used Shahrukh Khan to promote ,but they never thought there is also a need to promote this item well.The advertising did not play a major role for its demand

DOVE, the most powerfull brand in shampoo of HUL.The maximum profits ,revenue is gained from DOVE in HUL. PRICING-The price of 100 ml dove shampoo 64.HUL has created a remarkable pricing of dove.The quality of dove shampoo is very good but its price is comparatively is lower .For that reason the demand of dove is always high and HUL also supplies excellently to handle its demand.And it is very obvious that if HUL increases its price the demand for this brand is not going to decrease. INCOME -In the market its demand is so high that if a consumers income decreases the demand remain the same.But if income income increases of a consumer than early income obviously the demand will increase.It has no negative relation with income . PRICE OF THE RELATED GOODS-Yes,shampoo like head & shoulder and pantene is a strong competitor of dove.So,it makes competition between HUL and P&G.If the price of pantene is suddenly decreases it may happen that it will effect on the demand of dove. TASTES AND PREFERENCES-Company claim by its advertising that it is a women product but it is also well accepted by men.The people from middle class to higher income group all preffer this brand.Also the working women preffer this brand. ADVERTISING-HUL does its advertising in a different way.They dont use celebrities but use REAL WOMEN to promote their brand and it did miracle.Most of the women in India preffer dove for their hair care.They also did a free sample campaign to promote their brand.

Pantene is the strongest brand of procter & gamble in India.It is the main competitor of dove in Indian market. PRICING-The price of the pantene 90ml pack is 59Rs.P&G very cleverly did this pricing system to catter inIndian market.Every brand do price in respect of 100 ml pack.But as the price should not show high ,keeping this in mind P&G launched pantene in India in 90ml pack and wonderfully it worked in market.Its quality is exceelent and for that its demand is also good in the market.And it can be hoped that there will be no demand decrease if its price increases. PRICE OF RELATED GOODS-If the price of dove decreases it would effect the demand of pantene.They are the tough competitor in this sector. INCOME-As the income increases the demand of pantene will also increases.Being a prestigious brand of P&G pantene is in high demand always.It has a positive relation between income and demand. TASTES AND PREFERENCES-From middle income group,college girls,working women to high income group pantene is preferred.It is also recognized as fashionable shampoo that enhance the young public to encourage to consume pantene.

ADVERTISING-The advertising of pantene is always very glamorous.In abroad Jeniffer Lopez and in India its Katrina Kaif,Sushmita Sen,Shilpa Shetty promoted for pantene.They claim in advertisement that they are using pantene and after using this they are giving their comment in so called adds.True or false whatever it is ,it hit the Indian consumer and demand increases.

Another strong brand of P&G is head & shoulder shampoo in india.It is a anti-dandruff shampoo. PRICING-The price of 90ml shampoo is 69.P&G also used the same strategy in case of H&S like pantene.The price is quite high as compared to other brands.But its demand is not low ,the reason is same quality. INCOME -If income increases the demand for this brand will also increase.But if ones income decreses there is a possibility to decrease its demand because its pricing is high.So,it has both positive & negative relation with demand.

PRICE OF THE RELATED GOODS-Pantene,dove if their price increases there

is a

possibility to increase in demand for head & shoulder.As dove and pantene comperatively low in price than h&s so the demand may increase. TASTES AND PREFERENCES-This brand is equally accepted by men and women both.Company is sccessfull to catter their product among men as well as women.It is the most trusted brand in anti-dandruff shampoo category. ADVERTISING-They took celebrities like Kareena Kapoor,Saif ali khan to promote their product.

Kareena Kapoor at the ceremony of the hesd & shoulder

The very new launch of ITC is fiama dj wills shampoo range.It has a emerging market share for ITC. PRICING-The price of 100ml pack of fiama shampoo is 59.Recently it is offering a 50 ml conditioner worth Rs.40 free with the shampoo.In the competitive market where strong brands like dove,pantene etc are present,ITC planned to offer their product in joint venture with a quality product.In the current scenario,fiama is successful to its ever increasing demand graph. INCOME-There is a positive relationship between income and demand in case of fiama.While income increases the demand for fiama shampoo also increases. TASTE AND FREFERENCES-ITC is successful to catter the market only among women consumer.Fiama is also recognized as one of the most stylish product.So,among the women this brand is well preferred. ADVERTISING-ITC hired the supermodel and filmstar Dipika Padukone to lunch fiama di wills range to make their revenue targeting young people like college girls,working women and also housewives.

DIPIKA PADUKONE IN THE CEREMONY OF FIAMA DI WILLS SHAMPOO RANGE

VIVEL,the another shampoo category of ITC ,which is not strong as fiama,but it also has its own market share PRICE-The price of 100ml vivel shampoo is Rs. 49 and its anti-dandruff pack costs Rs.69,which is comparatively lower than fiama and shampoo brands in market.But it is also

natable that the demand for this brand is not higher than fiama or any othe few brands.If its price increases demand will surely decrease. INCOME -If income increase the demand for vivel will decrese because consumer will go for better product.But if income decreases the demand may increase. TASTES AND PREFERENCES-Generally middle class group,lower income group frefer this brand.Sometimes boys also prefer this brand ADVERTISING-ITC used celebrities like Kareena Kapoor,Hrithik Roshan,Amrita Rao to promote their product.But it did not work fully.The fault was in their product.The particular brand is not a quality brand.This is the most crucial reason of not a huge success of vivel ultra pro shampoo range.

LOREALS Garnier shampoo range is another strong brand of shampoo in India. PRICING-A garnier fructis 100ml pack is Rs.64.But an ultradox is Rs.89.Its price may be little high but its demand is always good in the market. INCOME -It also has a positive relation with income and demand.If income increase demand will also increase.If income decrease demand will also decrese. TASTES AND PREFERENCES-Working women,normal girls prefer this product as it is a standard one. ADVERTISING-Garnier only used super models to promote their products.It also worked in new generation and they success fully created the demand for garnier shampoo.

DABUR VATIKA shampoo is the only shampoo of dabur india limited. PRICING-The price of dabur vatika shampoo of 100ml pack is Rs.54,very nearer to sunsilk shampoo.It is lower in price but its demnd is not more than sunsilk.If its price increase its demand will decrease. INCOME -If income increase surely its demand decreases and if income decreases demand can increase.so,it has a negative relation with income. PRICE OF THE RELATED GOODS-Of course price of related shampoos will effect its demand as it is a average product. ADVERTISING-DABUR has taken up Preity Zinta,Jenolia DSouza ,Riya Sen to promote their vatika shampoo.In the early days it worked nicely but now the story is different

CONCLUSION From the above observation and learning some conclusion and understanding can be drawn It is not necessary that the LAW OF DEMAND will always be applicable to every product and every market situation.In some cases there are many exception.

The determinants of demand play a great role in demand increase and decrease.

The market of shampoo is in monopoly competitive market where a large no. of players are present and they set their product price as their wish .It is an independent market.The entry and exit are also unrestricted in this market competition.

It is also understable that

in monopolistic market,it is more profitable for a

monopolistically competitive firm to attract customers through advertising rather than by lowering price.