ica ppt consolidated
TRANSCRIPT
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I C A P R O J E C T P R E S E N T A T I O N
G R O U P HA D H Y A
P R A N A V
P R A T E E K
R A H U L
R A T I K A
Hair Care Industry in India
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I N D U S T R Y A N A L Y S I S
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Haircare Industry: Some Facts
Concentrated Industry: 3 players 43.9% marketshare
Fragmented in terms of brands
100% FDI allowed 100s of unorganised sector players
Strategic market: national level
Product scope: as large as possible
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Sales($Million) of Haircare Products
1123.5
1301.2
1510
1727
1945.5
0
500
1000
1500
2000
2500
2007 2008 2009 2010 2011
$million
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Porters Forces Analysis
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C O M P E T I T O R A N A L Y S I S
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Focal Firm: Dabur
1884 Started inCalcutta
Early 1900s AyurvedicMedicins
1900-1936:Expansion Phase
1940: DaburAmla1948: DaburCHavanprash
1986: Public Ltd.
1986-96: JVGrowth
1996: 3 separate
Divisions
1998: ProfessionalManagement
1999-2000 :Herbal fromAyurvedic
2004-2005 :Rebranding
2006: 2 billionmarket cap.
2006-2010:Expansion
2010: Firstoverseasacquisition
2011: Enters skin
care market2012: Crosses
billion dollarturnover mark
2012-13: ProjectDouble
2012-13: VarikaRebranding &Relaunch
54%
10.80%
30.50%
Revenue Share
ConsumerCare
Foods
IBD
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Dabur Offerings
Supplements
Digestives
OTC
HEALTH CARE FOODS
PERSONAL CARE
Oral Care
Skin Care
SHAMPOO HAIR OIL
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Dabur (cont..)
Of total sales
Portfolio growth
Lagest player
17%
11%
2ndH
AIRCARE
CURRENT STRATEGIC FOCUS
LEADERSHIP
Proffessional Help, Intrernal leadership development
FOCUS ON RURAL SECTOR
Project Double
FOCUS ON IT
Channel Management, Data Management. Communication
FOCUS ON R&D
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C O M P E T I T I V E A N A L Y S I S - S H A M P O O
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About HUL
Entered Indian
market with 1895
Competes in differentcategories like soaps
& detergents,personal care, foods& beverages etc.
Market leader in HairCare category, which
comes underpersonal care
Major player in
shampoo market withmajor brands likeClinic+, Sunsilk,
Dove etc.
Recently entered hair
oil category withpremium productsunder Dove brand
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Major products in Shampoo category
HUL
Clinic+: Young girls, hair fallreduction
Clear: Dandruff removal
Sunsilk: Young urban females,trouble free hair
Dove: Mature women,nourishing hair
Ayure:Herbal products
DaburVatika: Initially herbal image,young girls; now have re-launched for fast moving girls
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Competitive Storyboard: Shampoo Category
From 1960s to 1990s, HUL came up with no. of products toestablish category leadership
Dabur, a late entrant in Shampoo category, launched Vatika in1999 with pro-herbal image
In response to it HUL launched herbal range of productsunder Ayurebrand in 2002
Dabur re-launched Vatika in 2007 with fresh pro-young imageto lure vast growing youth segment
With Dabur in its turf, HUL increased its ad spend to establishits brand Sunsilk deeper in the psyche of youth and launcheda no. of variants; recent Gang of Girls Campaign
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Competitive Storyboard (cont)
Market
Commonality
Resource Similarity
High
Low
Low High
Dabur - HUL
MediumAwareness
HighMotivation
HighAbility
HUL Ricardian Assets: brand image ,distribution network
Dabur Differentiating Advantage: Herbaloffering, Indian Brand
HUL Reaction: Allow entry, follow up withtheir own category cometing Products
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C O M P E T I T I V E A N A L Y S I S H A I R O I L
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About Marico
Founded in 1988 inMumbai
Flagship brand:Parachute coconutoil in 1990 followed
by Saffola
Turnover of Rs. 42.6bn. With profit of Rs.
4 bn.
Market leader in hair
oil with 27% marketshare
Present in fourmajor segment- Hair
Care, Health Care,Male Grooming,Skin Care
Hair Care Brands-Parachute, Nihar,
Hair & Care, Livon,Mediker
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Hair Oil Market in India
CoconutBased48%
AmlaCased
15%
Valueadded27%
Parachute Coconut, NiharCoconut together have 54%market share, Vatika Coconutclosest competitor
Dabur Amla is the marketleader with market share ofXX%
Niche categories:
Cooling: Emami NavratnaAlmond based: Bajaj Almonddrops, Dabur Almond, NiharAlmondLight: Maricos Hair & CareHot: Parachute Hot
Fragrance: Parachute Jasmine
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Storyboard in Hair Oil Segment
Dominated by unbranded players Dabur Amla was launched on a national scale 1953, Bajaj Brahmi Amla launched; couldnt match the success of Dabur
1940s-50s
1989, Premium oil Bajaj Almond Drops was launched
1990, Marico launched coconut based hair oil- Parachute at competitiveprice targeting young girls Dabur didnt see it as a competitor owing to different category
1989-90
1991, Emami launched Navratna cooling oil; Marico & Dabur launchedproducts in response but failed
Dabur launches coconut based hair oil in 1995 under the brand nameVatika - herbal image and targeting young girls
1997, HUL launches Nihar coconut oil positioned as 100% pure; success in
East India
1991-2000
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
2001-Present
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Competitive Rivalry Model
Market
Commonality
Resource Similarity
High
Low
Low High High
Awareness
HighMotivation
MediumAbility
Dabur-Marico
Dabur Ricardian Assets: brand identity ,learning curve, distribution
Dabur unable to take deterrent actions likeproduct proliferation etc.
Marico dethroned Dabur due to quickentrepreneurial actions