Shampoos – rural market

Clinic plus
chik
Sunsilk
Vatika
Heads & shoulders
Introduction
 Facts
 Approximately 70% of the India’s population resides in the rural
area.

 Increase in population = Increase in demand.

 Out of 2 million BSNL mobile connection, 50% are in small village

and towns.

 41 million Kisan credit cards issued against 22million credit +

debit cards in urban.

 Out of 20 million Rediffmail signup, 60% are from Small towns, &
50% transactions on Rediff online shopping site done by these
towns.

 42 million rural HHs avail banking services compared to 27

million in urban.
Contd…
 Seeing the potential “HUL” decided to enter into the Rural
Market.

HUL entered into the Rural Market with Project Shakti in 2001

 Objective : “It seeks to empower underprivileged rural women by

providing income generating opportunities , health and hygiene
education”

 Shakti entrepreneur earn Rs. 700 to 1000/ month almost double

their average household income.

 Achievement- 45,000 Shakti entrepreneurs in rural areas across

15 states in 1,00,000 villages.
Objectives of the Research
 To Analysis
 Level of awareness with respect to shampoos.

 Response of consumers towards clinic plus.

 Brand Recall of Clinic Plus in the rural Market.

 Usage (X No. of times/ week)

 Substitute products used.

 How Shampoo satisfy their needs.

 Research Methodology
Research Type: Primary

Data collection Method: One to One interaction

Sample Size: 15-20consumers/village (Visited 8 villages)

5 - 8 retailers/village

Respondent Segment: Gender : M/F

Age groups : All

Research Geographical Area: Haryana

Uttar Pradesh
Faridabad
Shampoo Market
 Market for Shampoos: Rs 1500 crore
 Sachet sales accounts for 70 % of total sales

Rural India
 80 % Awareness Level

 AD shampoos accounts for 20 % of Total Sales

 AD is the fastest growing segment (10% to 12% P.A)

 High Penetration level of various brands including HUL

 Expected growth rate is 25 % P.A

 Biggest competitor: Bathing soap (LUX etc.)

Bazaar Insight
 Bazaar has well stocked shops with sachets and bottles of major
and regional brand shampoos.
 Growing competition from upmarket players like Garnier and Dove

are a potential threat for this market as well.

Product Line Depth of Different Brands
 Chik - My didi told
Consumer’s views me how to use
it………I love the
smell

I tried number of brands

and then chose CLINIC
PLUS. I don’t go by TV
ads, they are all the same.

I use Lux soap

……… give me soft
hair
I use all of them. I like
H&S, VATIKA, CLINIC
PLUS, SUNSILK. They
make hair soft.
 Consumer’s views
CLINIC PLUS. I buy the
Mom doesn’t use it . Only I
shampoo from the market
put shampoo before going
to school every SUNDAY.

I like SUNSILK and CLINIC

PLUS. We buy bottle for
entire family once a month.
Market share
HUL – Hindustan unilever ltd
Revenue percentage - HUL
Issues to be Resolved
 Too many brands and less availability lead to brand shift
 Presence of fake products create problem for companies
 Shampoos were perceived to be as women usage product, hence
men feel shy in using these brands.
 Most consumers use shampoo only once or twice in a week
 Shampoos are used on special occasions such as weddings,
parties etc.
 50p sachet is used by 2-3 people (especially Men)
 Myth - shampoos lead to higher hair fall/weak hair as per
respondents
 Lack of intensive promotional schemes for retailers and attractive
trial offers like free sampling for consumers is affecting demand.
 Inadequate information about the usage of the product
Findings
 Major brands recalled during the interaction were Clinic
Plus, SunSilk, Chik and Head & Shoulders shampoos.
 Clinic Plus most recalled
 Sachet rules
 Younger Gen (12-18 yrs) is more experimental
 TV advertisements and strong word of mouth induces
personal trials of different brands
 Key drivers of using their preferred brand are softness of
hair, cleanliness and fragrance
Suggestions
 Free skin care tips from shakti ammas
 Special prizes for maintained & long hair
 Open beauty parlors in small villages/towns
 free samples for creating awareness about its benefits
 Branded mobile hair styling vans
 special get together for brand popular women
 Contd…
 Shampoo Day every fortnight
 Paint schools with brand’s colours

 Distribute free samples

 Organize games & create awareness

 Distribute branded calendars, stickers, hair clips, school hair bands,

notebooks with hair care tips for students

 Brand class time tables, basketball courts, benches, posters with

shampoo brands stressing on health and hygiene

HUL – corporate social
responsibility
 Project Sanjivini - Spread awareness about HIV/ AIDS
 Project shakti - training, and empowerment of
women
 Project I shakti – the Andhra Pradesh govt’s Rajiv
internet village program
 Shakti Vani – social communication program
Thank You