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Of
Rural Marketing
Marketing plan for hair oil in Kerala
We have got the responsibility to prepare a marketing plan for launching a new hair oil brand
that is SHINE HAIR OIL. This time we have made an attempt to launch a totally different
product from the legacy of herbal products that shine product is carrying from generations.
Pricing strategy will reasonable cost only very little margins initially so that product will be
better positioned and get good sales from the customers. Print media, TV, Radio and Sales
Promotions all the marketing communication techniques will be used.
Value Chain analysis, SWOT also has been performed for SHINE HAIR OIL. Proper strategy
i.e. Concentration strategy is used along with the contingency approach the backup plan is also
made so that at any time the chances of failure will be very less. Overall the entire term paper is
a good initiative and learning experience to know the practicality of market and the challenges
that a marketer faces while launching the product in market.
Table of contents
Rural Marketing ............................................................................................................................................ 5
INTRODUCTION ............................................................................................................................................. 8
Key objective ............................................................................................................................................. 9
RURAL CONSUMER’S ................................................................................................................................... 9
Value-added hair oils .................................................................................................................................. 10
SITUATIONAL ANALYSIS .............................................................................................................................. 11
CATEGORY FACTORS ............................................................................................................................... 11
Bargaining power of buyers ................................................................................................................ 11
Bargaining power of suppliers ............................................................................................................ 11
Category rivalry ................................................................................................................................... 11
Product Analysis .................................................................................................................................. 12
Market Trends ..................................................................................................................................... 12
Distribution Channels.......................................................................................................................... 12
Market Factors Of hair oil ....................................................................................................................... 13
Market size .......................................................................................................................................... 13
Market growth .................................................................................................................................... 13
Product Life cycle: ............................................................................................................................... 13
Sales cyclist ......................................................................................................................................... 13
Seasonality .......................................................................................................................................... 13
Category Factors Of hair oil market ........................................................................................................ 14
Threat of new entrants ....................................................................................................................... 14
Switching cost: .................................................................................................................................... 14
Environmental Analysis Of hair oil .......................................................................................................... 14
REGULATORY FACTORS ....................................................................................................................... 14
Social factors ....................................................................................................................................... 14
Political factors.................................................................................................................................... 14
Economic factors................................................................................................................................. 14
Technological factors. ......................................................................................................................... 15
Current Market Potential ........................................................................................................................ 15
Hair oil consumption in Kerala .................................................................................................................... 15
Challenges ................................................................................................................................................... 18
Short-Term Objectives ................................................................................................................................ 19
Long-Term Objectives ................................................................................................................................. 19
Corporate Vision ......................................................................................................................................... 20
Segmentation targeting and positioning .................................................................................................... 21
Segmentation: ......................................................................................................................................... 21
Targeting ................................................................................................................................................. 26
Positioning .............................................................................................................................................. 27
MARKET RESEARCH ..................................................................................................................................... 28
Opportunity and Issue Analysis .................................................................................................................. 30
Marketing Mix for Shine Coconut Oil.......................................................................................................... 31
Product: Packaging innovations .......................................................................................................... 31
Pricing...................................................................................................................................................... 32
Place ( Distribution) ................................................................................................................................ 33
Promotion ............................................................................................................................................... 36
Push Strategy ...................................................................................................................................... 36
Pull Strategy ........................................................................................................................................ 36
SWOT ANALYSIS OF SHINE .......................................................................................................................... 38
Budget ......................................................................................................................................................... 39
Conclusion ................................................................................................................................................... 41
References .................................................................................................................................................. 42
Rural Marketing
Quite clearly, large Indian companies have begun looking at rural markets seriously. Some of
them are even developing exclusive marketing strategies to tap this huge mass of consumers. Of
India's one billion plus population, nearly 70 per cent live in non-urban or rural areas. According
to a National Council for Applied Economic Research (NCAER) study, there are as many
"middle income and above" households in rural areas as there are in urban areas. There are
almost twice as many "lower middle income" households in rural areas as in urban. According to
NCAER's projections, the number of middle and high-income households in rural India is
expected to grow from 80 million to 111 million by 2007. In Urban India, the same is expected
to grow from 46 million to 59 million.
Hence the absolute size of middle and high income households in Rural India is expected to be
nearly double that of Urban India.
Thus we see that Rural India contributes almost 56% to the National Income as against
population, which has its own challenges like how to sell small quantities to large base of
consumers.
PERCENTAGE OF POPULATION BELOW POVERTY LINE BY RURAL-URBAN
LOCATION STATE WISE (1999-2000)
BIHAR 45.10
58.85
GUJARAT 26.22 21.70
Hair oil is a very Indian phenomenon. It is used as a conditioner and nourishes. Hair oils are
broadly of two types viz coconut oil and non-greasy perfumed oil. The major positioning
platforms for hair oil are purity, hair nourishing and more recently, non-greasy look. Coconut oil
and perfumed oil accounts for about 65% and 35% of market in volume terms. Unlike hair oils or
hair colors, which are products relatively new to the Indian psyche, the usage of hair oil is a
deeply ingrained habit with Indian consumers. Therefore, this is one product where the major
players do not have to fight either monetary or psychological barriers to usage. But this does not
necessarily mean that being a branded player in the Rs 1,300-crore hair oils market is easy.
Branded players account for just over a third of the total hair oil market. Players in the plain
coconut oil segment operate in a category where there are few entry barriers in place. Loose oils
are priced on the basis of input costs and availability, both of which are notoriously volatile.
Since branded players have to grow at the expense of the ubiquitous unorganized segment and a
host of regional and local brands, it is difficult to shield margins and selling prices from the
vagaries of loose oil prices.
Key objective
The main objective of Shine hair oil coconut oil is to overtake the loose oil consumers in rural
areas. It also aims at being the market leader in rural market by overcoming other brands.
As per market research firm ORG-Marg's retail audit for the rural coconut oil market, SHINE’s
market share stood at 25.4 per cent in volumes in October, while that of Parachute was at 23.6
per cent. The total volume of the rural coconut oil market is around 54,000 tonne, growing at 6-7
per cent annually. Even as SHINE has managed to scrape through the leadership position of the
rural coconut oil market, it is still far from being crowned the all-India leader in coconut oils.
RURAL CONSUMER’S
• The consumer product sector mainly consists of personal care, cosmetics and home
products segments. The sector can be further sub-divided into dental care products, soaps,
detergents, surface cleaning products, skin care, and hair care products.
• India's rural markets have seen a lot of activity in the last few years. Since urban markets
are saturated in most categories, future growth can come only from deeper rural
penetration. FMCG majors are aggressively looking at rural India since it accounts for
70% of the total Indian households.
• The industry is volume driven and is characterized by low margins. The products are
branded and backed by marketing, heavy advertising, slick packaging and strong
distribution networks.
• Despite the strong presence of MNC players, the unorganised sector has a significant
presence in this industry.
• Brand building and extensive distribution network is a key factor. A successful brand is a
precious asset, which could fetch a price many times the cost of assets required to make
the product. A study conducted by A&M-ORG-MARG reflects that the share of branded
goods is high for a number of daily used products. Branded goods comprise of 65% of
sales in villages and the share of non-branded products is shrinking dramatically.
Value-added hair oils
Given the limited differentiation possibilities in the coconut oil segment, major players in the
branded hair oils market have been training their sights on value-added hair oils. This has
spawned a range of product innovations -- hair oils with herbal ingredients, non-sticky oils, light
hair oils, and lately, dandruff solution hair oil.
An entry into the value-added hair oils segment appears to offer quite a few benefits to the
branded players. One, with easier differentiation from the regional and local brands, establishing
a brand identity is easier. Two, this makes value-added hair oils less vulnerable to price
competition from cheaper alternatives. Third, value addition helps players command a price
premium over the no-frills coconut oil brands.
Both herbal oils and non-sticky hair oils have been quite successful as product concepts. Dabur
India's Vatika hair oil, one of the first players to milk the herbal category through aggressive
advertising, registered a growth rate of 74 per cent in 1998-99. Dabur's hair oils business
continued to grow at around 18 per cent in 1999-2000. SHINE's Clinic Plus non-sticky hair oil
(which combines coconut oil and mineral oil) has also been an unqualified success.
While Parachute continued to remain the lynchpin of Marico's hair care business, it was the
value-added hair oils, such as Hair and Care, which clocked higher growth rates of late. While
Parachute's growth rate fell from 14 to 6 percent in the first half of 2000-01, Hair and Care's
growth rates improved from around 7 per cent to 23 per cent in the same period. SHINE's Clinic
All Clear hair oil and Parachute Dandruff Solution have also entered the fray.
Importantly, while the plain coconut oils have revised their product prices downward, in line
with the meltdown in loose oil prices, value-added hair oils have been able to maintain their
price line.
SITUATIONAL ANALYSIS
Shine hair oil has potential for growth in the functional hair care industry in Kerala. Functional
hair herbal medicines.. The hair oil segment is the specific focus of this analysis. In the
following situational analysis the company, its product, customers and competitors are
examined..
CATEGORY FACTORS
Bargaining power of buyers –
The level of bargaining power differs among groups of buyers . The bottlers, distributors and
retailers have significantly greater bargaining power than the end consumer does . large
retailers , kiryana chains are able to extract from the hair oil manufactures through incentives
such as volume base rebates , promotions and displays .These retailers are highly concentrated
and can thus wield significant power.The bargaining power of buyers is high because of
presence of substitutes from hul . Dabur other and High bargaining power because of various
competitors .
Bargaining power of suppliers;- This assessment is really the mirror image of the buyer
power analysis .The Bargaining power of suppliers is low as there are many supplier. There
are many substitutes of the product supplied .
Category rivalry;-
There is category rivalry between HUL and P&G , Dabur . This rivalry leads to a pressure on
prices and significant investments in advertising in an attempt to build and maintain brand
loyalty . An article from competitive media group reported advertising expenditures in 2008
were 900 billion dollar. Thus HUL & P&G heatedly over prices, suppliers , spokespeople ,
retail space and mostly the taste buds from consumers.
Product Analysis
Shine hair oil coincides with the goals of the other products. This goal is to bring Shine hair oil
to a profitable market share and it is using the There are many Shine hair oil in the market today
and the main goal of Shine hair oil, is to make it one of the top competitors in the hair oil
segment.
Market Trends, hair are still a baby; they have only been popular for 5 years in hair oil .
Currently, heath drinks are most popular at college going students .
Pricing. Typically, heath drinks are sold at prices per can about 400 percent higher than a regular
carbonated beverage. PepsiCo sells AMP for $1.99 per can. Online shoppers can also buy
AMP by the case.
Distribution Channels. Presently, hair oils are being sold in grocery stores, convenience stores,
std booths In stores, shine are strategically placed near the front of the store, or near the
personal care section with eye-popping displays to draw in the customer. Advertising. Currently,
many health drink that is advertising on television and radio . The market is becoming
competitive and soon there will be a few key players in the industry, and advertising will
become a major part of their marketing strategy.
Competitors in the industry will be increasing advertising to distinguish their product from the
rest. Marketing will be very competitive and Shine hair oil will need to find a way to distinguish
its product from the others.
Market Factors Of hair oil
Market size
Indian hair oil market is still in its infancy due to the lack of awareness among the population. In
value terms, the personal care market is around Rs 1, 400 crore and in volume terms around
65,000 tonnes per annum.
Market growth
According to market research hair oil in rural is still at nascent at stage when compared to
urban. However the hair oil in india grew at 50% a year between 2002 and 2009 .on the back of
an increasing modern retail stores, the health drink market is expected to reach RS, 1100 crore
by 2010 youth
Shine hair oil advantage in this area is mainly due to its establishment strong branding and it is
now able to use this area of stable profitability
Sales cyclist ;-
Many categories experience substantial interlayer variation in demand in hair oil segment
same is the case . but it is less to some extent .
Seasonality -;
Intra year cycles in sales is generally not viewed positive . hair oil segment the demand is more
in summer as compared to winter .
Category Factors Of hair oil market
Threat of new entrants; -
threat of new entrants is very high in hair oil segment as hair oil segment is still in infancy
stage in rural market
Switching cost:
switching cost is low as customers can easily move from one marketer to another marketer
Government factors and other agencies have effect on category attractiveness through
regulations. Government has restricted the use of ingredients coming from animals and other
harmful chemicals like Acetate, acetic anhydride in India.
Social factors; -
Trends in demographics, lifestyles, attitudes and personal values among the general populations
are of particular concern for consumer products and manufacturers. First, new, products have
been developed to fit into today’s lifestyles. Shine hair oil will take this all into consideration.
Political factors;-
political factors play an important role in marketing planning of a product . for example .
Marketing Shine hair oil in Nagaland and Arunachal Pardesh however It cannot be
marketing in naxalities areas , because they are not politically stable . it can result in loss of
business , property , and risk of employees,
Economic factors; -
economic factors also plays an very important. The financial impact of having foreign markets
or producing in other countries can vary widely . when employment conditions are high like
in America they have to pay more . GDP of a country also plays an very important role on
product.
Technological factors.
* Advanced in technology change product/packaging
* Advance in science (add to Shine hair oil formula more safer /healthier)
Advances in production technology (more efficient + better quality/ less staff required = cheaper
for Shine hair oil = cheaper for customers).
Unlike synthetic chemical hair oil there are absolutely no side effects from using herbal
hair oil and Herbal hair oils generally attracts the customers, especially the fair sex .Hence there
is growing demand for such an herbal product in Rural and in semi urban areas.
• Marico
• Dabur
• Parachute
• Garnier
• Livon .
• Bajaj
Hindustan Unilever (25%) & Dabur (30%) are two major competitors in India hair oil market
and contribute around 55% of Indian fmcg market share.
It has been seen that around ---- % population have purchased hair oil in the last 6 months that
means there is market huge market size.
Challenges
• Lower literacy rates
• Seasonal demand
• Spurious goods
• Underdeveloped
Short-Term Objectives
1) Aggressive Marketing Strategy
SHINE can take advantage of the positive press on the health benefits of SHINE to boost the
sales. The company can use recent studies on the health benefits of SHINE as the basis of its
press releases and advertising campaigns.
2) Improve Packaging – Currently, the SHINE is available globally in two sizes: the
16-oz bottle and 500 ml bottle. SHINE other packaging sizes to ensure that consumers will have
other choices and SHINE will be easily and readily available to consumers.
3) Improve Shelf Presence – SHINE can make a deal with retailers ensure retail
shelf space and prominent positioning for SHINE . “Although an average shopper may not notice
what brands are positioned in prominent places on shelves or how much room is allotted to each
manufacturer, shelf space and positioning as make or break factors in introducing new products”
Long-Term Objectives:
4) Product Innovation – Shine must continue its innovative research and development strategy to
come up with new products. SHINE has extensive research facilities on product improvement.
The company can use its resources and professional expertise to come up with new flavors that
will suit the continuous demand for healthy ready-to-use SHINE .
PROBLEMS AND STRENGTHS OF SHINE
• Strong competition from other players in the market, especially Parachute of Marico
industries.
• Pricing is a critical issue in the branded coconut hair oil market where the consumption of
low-priced loose oils is huge.
Strength of Shine
• Shine can gain market share from conversion of loose oil consumers. The strategy is to
upgrade the loose oil use to Coco care/Shine by offering small pack forms, which are
affordable.
Shine has a very strong distribution network, so it can reach more rural areas with its help
and cover the market.
Corporate Vision
We shall achieve growth by continuously offering unique products and services that would give
customers utmost satisfaction and thereby be a role model”
• “Whatever I make, I want the coolies and rickshaw pullers to use. I want my product affordable
to them” “Sachets are going to be the product of future”
Target Audience
Segmentation:
segmentation is the process of dividing a heterogenic market into several sub-market segments,
each of which tends to be homogenous in all significant aspects. The segmentation of shine hair
oil will be done on the basis of geographic factors, demographic factor (income and population)
and socio-economic segmentation.
Segmentation on the basis of occupation:
The variation in major occupation groups necessitates the segmentation of rural markets on a
different basis. Both product categories and consumption change among different occupation
groups.
Occupation:
Occupation Percentage
Owner farmer 2.9
Leased farmer 0.2
Agriculture worker 1.8
Unskilled labor 17.9
Skilled labor 7.6
Shop/trade 3.9
Service(rural) 1.6
Service (urban) 2
Segmentation on the basis of income: The income from household to house hold varies. This
can be used as the basis of segmentation. As we can see in the below given table there are many
segments.
Income Percentage
3001-4000 7.9
4001-5000 4.1
5001-6000 2.2
6001-8000 1.4
8001-10000 1.2
10001-12000 0.2
12001-15000 0.2
15001-20000 0.2
20001-30000 0.1
Source: Marketing white book
Segmentation on the basis of socio-economic classes:
Socio economic condition of the consumers is also taken as the basis of segmentation.
The household size/ family size is one of the most important factors foe rural segmentation. The
family size varies from house to house so does the consumption of products.
District City
Kasaragod Kasaragod
Kannur Kannur
Wakanad Wakanad
Kozhikore Kozhikore
Malappuram Malappuram
Palakked Palakked
Thkissur Thkissur
Eranakulan Eranakulan
Idukki Idukki
Kottayam Kottayam
Auappuzha Auappuzha
Patnanamthitta Patnanamthitta
Kollam Kollam
Thiruvananthapuram Thiruvananthapuram
The target market for shine hair oil will be low and middle income group. In future the company
will look to cater higher income group as well. The target consumer for shine hair oil is those
people who are generally engaged in agriculture and other hard labored occupations. The
company will also offer different product lines across the different prices for different socio-
economic classes. Different pack sizes will be offered to cater the needs of different household
sizes.
Positioning
The name shine hair oil in itself is carefully chosen in order appeal large masses of consumers
throughout the Kerala. The product will be positioned as the hair oil for workers. The slogan It is
more than a hair softener… indicates that the shine is mere a hair oil but is something more
than that giving more values and benefits than any other oil in the market. The other product
variant coco cair is for higher income group. This will be positioned differently.
MARKET RESEARCH
1. Hair Care Facts
• The frequency of hair oil usage is very low. Most consumers use hair oil 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 hair oil only to address a specific problem such as dandruff or when they
use to gel their hair
• About 50% of consumers use ordinary mustard hair oil for their hair
• Brand loyalties in hair oil are not very strong. Consumers frequently look for a change,
particularly in fragrance
• 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 hair oil for a proper wash ( average 6 ml ) compared to 4 ml
needed in Western countries as most Indian women have long hair
• Regular users would need smaller quantity of hair oil per day. Hair tend to collect more
dust due to dusty environment and oiling habits
• In Contrast, hair oil bottles are more popular in the Northern markets
• About 50 % of the hair oil bottles are sold in the Northern region alone
• In the North, local brands such as Ayur have strong equities and these products being low
priced dilute sachet’s USP of low price
2. Market Size
Size of hair oil market 930 Cr
5. Growth
i. Should it target only urban and sub urban areas or also include the rural areas?
ii. Should it go for collaborating with some companies for producing bottles, transportation
or do all the things on its own?
iii. What should be the time to time strategies so as to gain a competitive advantage over
others
Objectives
• Earn an Annual Rate of Return on Investment of 20 percent after taxes over the next five
years.
• Achieve sales of about 20 million bottles (100 percent capacity utilization) in the first
year of operation.
• Achieve the position of being a reliable and widely used herbal hair oil
Marketing Mix for Shine Coconut Oil
Product: Packaging innovations
Shine, India's only double filtered coconut oil has made a change in packaging and logo, which
is innovative, convenient and vibrant. The logo lettering is now in a fresh green color and sports
a leaf over the brand name. Shine has consistently been bringing innovations to its consumers, it
was the first to introduce the wide mouth jar and pouches packaging. In keeping with Shine
heritage, the new packaging is part of Shine’s constant endeavors on improvising and providing
quality to our consumers. The tamper proof jar has been introduced with grooves on the side for
a firmer grip giving the jar a more feminine aspect. The flip top tin has been designed for
convenience in pouring out the oil; the wide mouth jar can be used in different climatic
conditions. The essence of the new packaging is to bring about practicality in daily usage of the
Shine coconut oil.
The double Filtration process involves the production of filtered coconut oil from copra. This is
done by downsizing the copra, which is then passed through a cooker and shair oilm heated for
facilitating oil release. The copra is then crushed at a higher pressure. The final step in this stage
involves sieving the oil and parts of the crushed copra through a screen. This still murky oil is
allowed to partially settle in flat-bottomed collection tanks. In the second stage the filtered
coconut oil is mixed with special quality silica and re-circulated, this continues until the required
clarity is achieved. This filtered oil with adequate purity finally goes to the packaging line.
Shine has also migrated to low unit packs to rope in new users. SHINE has launched 100 ml
pouches of Shine priced at less than Rs 10.
Apart from making the product more affordable to mass market consumers, the 100 ml pouches
are cheaper on a per ml basis than the larger bottles and flip top packs. This is likely to bring in
new users from the loose oil segment.
Pricing
So as to tackle the pricing issue, SHINE has launched Shine oil in various price points in
pouches, such as Rs 5.50 for 50 ml, Rs 10 for 100 ml and Rs 20 for 200 ml.
SHINE believes that the low-unit price packs will result in up gradation of the loose oil
consumer to this brand, and enable the company to gain a higher share of the market.
For example, Shine's small packs in AP has led to the brand's market share gain in this state from
a marginal 2% in April to 35 %.This example is being replicated by the company in each of the
states where Shine draw large consumption. The company feels there is enough room for brands
to gain share by upgrading loose oils users.
The price of copra, the key input in coconut based hair oils, has been a key factor determining
the fortunes of the major players in this segment. The continuation of the present price trends in
copra would probably determine the near term financial performance of the large players in the
plain hair oils business. On this count, there appears to be no near term cause for worry. A large
part of the decline in copra prices is due to the substitution of copra by cheaper imported
palmolein.
Even after three successive import duty hikes on palmolein, it continues to the remain the
cheaper option for industrial users. Prospects of a near-term up trend in coconut oil prices
therefore appear remote. With an aggressive price war breaking out between the players in the
coconut oil segment, value growth in this segment is likely to remain subdued. Strategies in this
segment will clearly hinge on price. The value-added segment appears likely to sustain the
present growth rates of 20-30 per cent.
Place ( Distribution)
Shine has a very good distribution network. Shine has leveraged the micro-credit model to
expand its rural market from its present 40 per cent penetration.
The project, with an obvious `win-win' partnership potential, involves women from SHGs
turning into direct-to-home distributors for SHINE in their area, thus helping the company
expand its rural market from its existing 40 per cent penetration in villages with population of
over 2000.
For the women, it means income generation without the headache of starting their own venture
and becoming vegetable vendors, fish vendors, pan shop owners, etc., which has generally been
the micro-credit model to date.
Kerala was obviously chosen for the pilot project as 20 per cent of its rural population is covered
by the micro-credit model. The micro-credit concept, that impacts 45 lakhs women belonging to
3.33 SHGs in the State, creates wealth for the members of the groups and helps them better their
lives and alleviate poverty. The micro-finance collected in the State, through savings as well as
institutional loans, is around a whopping Rs 800 crore.
For the project, 50 SHGs closest to the highway in Nalgonda district were identified. These are
covered by three Mutually-Aided Credit Thrift Societies (MACTS), which act as semi-
distributors in the project. MACTS, which generally consist of 14 to 15 SHGs, are federated into
a co-operative and work in close tandem with the SHGs.
In fact, the project has had several interesting spin-offs. One of the MACTs distributing SHINE
products has started its own supermarket, while another is shortly purchasing a vehicle for its
distribution network. Manufactured product will move through the following channel.
This channel of distribution has been adopted as the company is new to the country and
distributing the product by ourselves may result in excessive cost to the company. So to avoid
this problem the company will collaborate with a distributor (to be selected through the process
of tender filling) and as the market is very large it has to go through the dealers, to ensure proper
distribution.
The investment
opportunity is relatively risk-free and high on return. SHINE is committed to providing the
necessary training inputs to these groups on the basics of enterprise management which the
groups can then use to enlarge their initiatives.
Manufacturing unit
Train
Super stockist
Truck
Distributor
Wholesalers
Salesman
Large retailers
Other small
intermediateries
.
Final consumer
Promotion
Shine attracts a large consumer preference in Kerala. Promotional activities are region-specific
and locally flavored to suit the brand's requirement in its area of strength. The customers in the
rural area are very price sensitive. Great emphasis is laid on the price factor and so they advertise
keeping in mind the price. A lot of emphasis is given on the price and they also compare the
product with the local brands and how it is superior in quality from the other available local
brands. Shine does advertise in the rural area but they don’t use much of newspaper as there is a
very high level of illiteracy in the rural area.
Push Strategy: we will be using push strategy to concentrate some of our marketing efforts on
promoting our product to retailers to convince them to stock the product. A combination of
promotional mix strategies will be used in this aimed at the retailer including personal selling,
and direct mail, pushing the product onto the retailer.
Pull Strategy: we will also be using pull strategy to promote our product amongst the target
market to create demand. Consumers will pull the product through the distribution channel
forcing the wholesaler and retailer to stock it. This will be done through providing the customers
with money off coupons or special offers.
AIDA strategy – The third strategy to promote our product will be the implementation of AIDA
model which is Attention Interest Desire Action
This can be illustrated briefly as grabbing the attention of the customer, then holding his interest,
then making the product desirable to him and finally making him to purchase the product.
AIDA is an acronym for Attention, Interest, Desire, and Action. This strategy can be made
successful through effective advertisement, distribution of free samples etc.
ii. Advertising: To create awareness about the product in the minds of the customers and to
provoke their buying actions. Advertising will be done through the following mediums:
i. T.V. spots
ii. Magazines
iii. Billboards
i. Exclusives
Weaknesses:
• Consumers are brand loyal toward competitor’s product so we have to convince them.
Opportunities:
• Increase usage
Threats
Action plan:
To conclude, in a very short period of time shine has been successful in gaining control over
the urban market as well as the rural market. With the help of its strong distribution and its
continuous innovations to match the consumers’ choice it can continue to maintain its
leadership in rural market. The hair oil market is huge, valued at Rs 6 bn. Due to the varied
consumption habits of consumers across the country, where coconut oil and edible oil are
interchangeably used, the size of the market is likely to be higher than estimated. More
importantly, the market is growing at an impressive 6-7% in volume terms despite the high
penetration level. Usage of hair oil is a typical Indian traditional habit. It is perceived to offer
benefits of nourishment, hair strengthening, faster and better growth, and reduce the problem
of falling hair. There are two types hair oil available in the market; coconut oil and non
greasy perfumed oil. Coconut oil comprises 2/3 rd of the total market and the balance
comprises the non greasy perfumed oil. Usage of hair oil is an everyday habit with 50% of
the population out of which some perceive that massaging the head with hair oil has a
cooling impact. The penetration of hair oil is fairly high at around 87% and evenly