ETHNIC CONSUMER

CONSULTING
Presented By:
Amit Raghuwashi
Perminder Singh
Neha Chopra
Vivek Ojha
INTRODUCTION
The research was conducted by Nitya Guruvayurappan
in September 2010.
She wanted to build a case with a practical orientation
that would result in interesting insights for the client on
consumer values
Case was being prepared for a company that
manufactured hair oils and fairness cream.
She wanted to know Could values get associated with
different socio-economic classes of consumers?
DEMOGRAPHICS, LIFESTYLE AND VALUES
Diverse array of product categories, brands, prices,
lifestyles and cultures.
Unique challenges to marketers:
these included the management of marketing mix
elements,
understanding the diversity of cultures,
development of appropriate product lines,
localizing global communication and more
specifically,
understanding the consumer psyche in a changing
environment.
CONTINUED
According to official definition given in the case:
Urban area: 5161 towns and cities included nearly 30%
of population
Rural area: more than 600000 villages, and included
more than 70% of the population.
CONTINUED
Classification of urban and rural Emerging India:
A. DEPRIVED: earning < Rs 90,000p.a. consisted of 103
million HHs
B. ASPIRERS: earning Rs 90,000-2,00,000p.a. consisted of
91.3 million HHs
C. SEEKERS: earning Rs 2,00,000-5,00,000p.a. consisted of 11
million HHs.
D. STRIVERS: earning Rs 5,00,000-10,00,000p.a. consisted of
2.5 million HHs.
E. Global Indians: earning>Rs 10,00,000p.a. consisted of more
than1 million HHs.


CHANGING VALUES AND LIFESTYLES
Consumers were characterized by a rising income, aided
by the increasing affordability of products.
Urban Consumers: They respected their tradition, but did
not tie their lives to these traditions.
technical competence was seen as a must for the urban
youth.
As consumerism and media exposure increased, India
also saw an evolution in its value systems and beliefs
CONTINUED
The fundamental values of conservatism and risk
avoidance were gradually being replaced by an openness
to experiment and to spend money on items beyond the
essentials
Rural Indians saw a lot of migration to the cities and
moved beyond their conventional forms of earning
livelihood.
Despite there being close family relationships, families
were rapidly growing nuclear.
CONTINUED
The influence of the West could be seen in the changing
lifestyle and trends of the Indian consumer: personal
grooming had increased in importance, especially with
more women stepping out and making careers for
themselves.
CATEGORY AND BRAND SUMMARY
FAIRNESS CREAM MARKET SCENARIO:
The personal care industry in India consisted of around US$4
billion
Skin care comprised 16 per cent of this segment including from
basic creams and moisturizers to specialized products such as anti-
wrinkle and dark circle removing creams.
And within this industry skin care was one of the most attractive
segments, with facial skin care (85 per cent of total skin care sales)
outperforming the rest of the skin care segment.
facial moisturizers were the biggest contributors to skin care in
India, comprising almost 50 per cent of the skin care segment.
CONTINUED
Indians were likely to remain partial towards lighter skin, fairness
alone was not expected to be the driving force of skin care sales in
the near future; rather, exfoliation, nourishment and freshness were
expected to become key selling points as almost all skin care
products in India already offered fairness benefits.
skin care in India was set to undergo a metamorphosis from a one-
product-fits-all mentality to providing separate solutions to suit each
different skin type.
Men accounted for about 25 per cent of the fairness cream usage in
the country and that figure was growing in absolute terms.


CONTINUED
Fairness creams penetrated only 25 percent of the market, with the
South being the largest market (36 per cent). The North and West
contributed 23 per cent each and the East contributed approximately
18 per cent.
In comparison with China, despite India having a higher personal
disposable income per household and an increasing population of
women in the 25-44 age group (the key consumer segment), it spent
only about one-tenth of what China spent on skin care. Pricing in the
skin care market ranged from offerings as low as the Rs5 sachets of
fairness creams in low income markets to Rs500-600 for the super-
premium end of anti-aging creams.
CATEGORY AND BRAND SUMMARY
HAIR OIL CREAM MARKET SCENARIO:
Coconut oil had been the traditional hair oil variety, there were other
segments in the market such as perfumed hair oils, light hair oils,
cooling oils and tonics or hair gels.
The $1.28 billion hair oil market in India was categorized into
coconut hair oil (50 per cent), amla (18 percent), light (17 per cent),
cooling (10 per cent) and tonics and gels (five per cent).
The penetration of hair oil was high at around 87 per cent and
similar across the urban and rural areas.
The biggest segment was the popular tier with brands such as
Parachute and Dabur Amla oil; the economy tier followed with
brands such as Nihar, Shanti Amla and other regional brands. The
premium tier consisted of brands such as Dabur Vatika and Hair and
Care.


CONTINUED
Parachute16 was a market leader in its category and positioned on
the platform of purity. It was also available in pouch packs such as
Parachute Mini, a Re1 SKU, and a 20 ml Parachute sold at Rs5 for
the rural consumer.

THE MAIN PROBLEM IN THE CASE
The main issue in the case is to different cultural values among
different class of people like middle and upper class people and the
challenge is to differentiate brand on the basis of culture among both
the classes.