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MM2 TERM PROJECT Presented By: Lakshman Singh Nishant Tiwari Priyankar Chakraborty Sreetama Dutta Praxis Business School MM2 Project - Air Freshener PRODUCT CATEGORY - AIR FRESHENER Date: December 12, 2012
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Page 1: Air Freshener

MM2 TERM PROJECT

Presented By:Lakshman SinghNishant TiwariPriyankar ChakrabortySreetama Dutta

Praxis Business School MM2 Project - Air Freshener

PRODUCT CATEGORY - AIR FRESHENER

Date: December 12, 2012

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AGENDA

Praxis Business School MM2 Project - Air Freshener

Overview - Air Freshener In Indian Market Product Category Market Segments Prominent Brands In Each Segment Air Freshener In Institutional Markets Air Freshener Price Market Segment Study Brand Positioning For Each Brand SWOT Analysis For “Dabur India Ltd” And “Odonil” Brand Extension – Proposal Marketing Mix Reasons For Choosing “ODONIL BREEZE” Car Air Freshener Bibliography

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OVERVIEW

Praxis Business School MM2 Project - Air Freshener

Air care market growing at an average of 20% year on year The air freshener has 3% penetration in air freshener market Air care market size is Rs 300-crore in India

INDIAN MARKET SIZE Rs. 300-crore

CONSUMER MARKET SIZE66.03% (198-Crore Approx)

DIRECT SALES TO INSTITUTIONS MARKET SIZE

33.97% (101.9-Crore Approx)

Source: http://www.thehindubusinessline.com/industry-and-economy/marketing/article3621054.ece?ref=wl_industry-and-economy http://www.business-standard.com/india/news/fresh-%5Caer%5C-in-air-care-market/483708/

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Praxis Business School MM2 Project - Air Freshener

2007 2008 2010

537924

1300

6631178 1373

610869

14031269

3003

4274

Number of urban households by SEC spending every month on air fresheners (in 000s)

SEC A SEC B SEC C Urban Inda

Number of households using the category has been increasing across all the SECs.

In urban India, the consumer base had increased by 236% from 2007 to 2010.

Source: IMRB wallet monitor studies of 2007, 2008 and 2010 (The Marketing Whitebook 2012-2013)

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Praxis Business School MM2 Project - Air Freshener

2007 2008 2010

25 27 2728

46 44

32

4650

25

3741

Average monthly household spends on air fresheners by Zone (in Rs)

East West South North

The average spend on the category has increased to Rs 44 in 2010 from Rs 30 in 2007.

The buyers in the South Zone on an average spend more than the other Zones.

Source: IMRB wallet monitor studies of 2007, 2008 and 2010 (The Marketing Whitebook 2012-2013)

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PRODUCT CATEGORY

42%

15%

14%

9%

2%

18%

Main Brands and Company Manufactured them with Shares 2010

Odonil - Dabur India Ltd

Ambi Pur - P&G Home Products Ltd

Premium - Helene Curtis India Ltd, JK

Air Wick - Reckitt Benckiser (India) Ltd

Lovin - Midas Care Pharmaceutical Pvt Ltd

Others

Praxis Business School MM2 Project - Air Freshener

Source: http://pitchonnet.com/blog/2012/05/21/air-fragrance-market-breathes-a-fresh-lease-of-life/

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MARKET SEGMENTS

Praxis Business School MM2 Project - Air Freshener

AIR FRESHNERMARKET SEGMENTS

TYPES Aerosols/Sprays Electric Air Fresheners Gels and Candles Car Air Fresheners Fridge Fresheners Bathroom Fresheners

PRICE

High-End Segment Mid-End Segment

BENEFITS

Odour Removal Active Fragrance

Hanger Pack Net Pack Dispensers Canister

PACKAGING

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PROMINENT BRANDS IN EACH SEGMENT

Praxis Business School MM2 Project - Air Freshener

Aerosols/Sprays

Electric Air Fresheners

Gels and Candles

Car Air Fresheners

Fridge Fresheners Bathroom Fresheners

Glades Aer Air Wick Renuzit

Air Wick Renuzit

Glade Ambi Pur Aer

Premium

Odonil

Premium Segment Mid Segment

Aer Air WickAmbi Pur

Odonil Premium

Hanger Pack Net Pack Dispensers &

Canister Odonil Odonil

Air Wick Odonil Aer

Odour Removal

Active Fragrance

Odonil

Ambi Pur Aer

TYPES OF AIR FRESHENERS

PRICE SEGMENT PACKAGING SEGMENT BENEFITS SEGMENT

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AIR FRESHENER IN INSTITUTIONAL MARKETS

Praxis Business School MM2 Project - Air Freshener

Hotels Corporate Houses, Factories Malls Hospitals Railways Public Bathrooms Show Rooms Theaters Government Institutions and Buildings R5 Diversey has high presence in Institution market and Odonil has high

presence in consumer market.

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PRICING - SEGMENT

Praxis Business School MM2 Project - Air Freshener

High-End Segment Mid-End Segment

Most prominent air freshener brands have similar pricing, Hence, we have segregated in the high-end segment and mid-end segment, in terms of pricing.

B2B Segment

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Praxis Business School MM2 Project - Air Freshener

PRODUCT-Premium - Available in 3 variants- Easy to use (per packaging)

PLACE-Launched in metros

PROMOTION-Perfumed print ad-Carried out BTL promotions and activations

PRICE- Premium Category

PACKAGING Company: Godrej Consumer Products Limited Tagline/ Slogan:“The Way It Smells, and The Way It

Spells”

Positioning: A delightful experience, aer aims to bring alive consumer experiences to enhance their personal space at home

STUDY OF THE BRAND

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Praxis Business School MM2 Project - Air Freshener

PRODUCT-Available in various flavors and varieties

PLACE-Targeted urban and semi-urban households

PROMOTION-Excellent brand promotion by advertising media and prints

PRICE-Standard price segment

PACKAGING Company: Reckitt & Benckiser (India) Limited Tagline/ Slogan:“It’s Good To Be Home”

Positioning: To transform your home to a great environment making it happy and joyous

STUDY OF THE BRAND

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Praxis Business School MM2 Project - Air Freshener

PRODUCT-Known for quality- Available in various varieties

PLACE

- Excellent distribution network

PROMOTION-High advertisement compare to other brands

PRICE- Premium Category

PACKAGING Company: Procter & Gamble Home Products Limited Tagline/ Slogan:“A Touch Of Freshness To Your Home, and

Car”

Positioning: Eliminates tough odours and freshens the air as if washed

STUDY OF THE BRAND

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Praxis Business School MM2 Project - Air Freshener

PRODUCT- Available in a variety of exciting fragrances

PLACE- Targeted urban and semi-urban households

PROMOTION- TV advertising

PRICE- Average price

PACKAGING Company: Dabur India Limited Tagline/ Slogan:

Positioning: Complete air freshening brand for every space in your home

STUDY OF THE BRAND

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Praxis Business School MM2 Project - Air Freshener

PRODUCT- Quality fragrance- Easy to use

PLACE- Lack availability

PROMOTION- Hardly does any promotion

PRICE-Average price

PACKAGING Company: JK Helene Curtis India Limited Tagline/ Slogan:“Home, Fresh Home”

Positioning: Feel fresh and bring home freshness

STUDY OF THE BRAND

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Praxis Business School MM2 Project - Air Freshener

PACKAGING Company: S.S.B Enterprises Established in the year 2011, the first commercial aerosol

plant for contract manufacturing in Andhra Pradesh Does direct marketing in terms of promotion

Positioning: The brand is positioned using the baseline " Fragrance Your Imagination". The company believes that perfumes relaxes the drivers and enhance comfort level. Since there is little competition, there is little promotion for this brand.

STUDY OF THE BRAND

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SWOT ANALYSIS – DABUR INDIA LIMITED

Praxis Business School MM2 Project - Air Freshener

STRENGTHS

WEAKNESSES

THREATS

PPORTUNITIES

O

• Strong Brand Image and Product Development Strength

• Strong Distribution Network and an Extensive Supply Chain

• Products present in over 60 countries and distribution through 5000 distributors and 2.8 million outlets

• Dabur products has stiff competition from big domestic players and international brands

• Tap rural markets and increase penetration in urban areas

• Increasing purchasing power of people thereby increasing demand

• Mergers and acquisitions to strengthen the brand

• Intense and increasing competition amongst other FMCG companies

• FDI in retail thereby allowing international brands

• Competition from unbranded and local products

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SWOT ANALYSIS - ODONIL

Praxis Business School MM2 Project - Air Freshener

STRENGTHS

WEAKNESSES

THREATS

PPORTUNITIES

O

• Available in easy-to-use & convenient packaging, such as 'Hanger Pack', 'Net Pack' , 'Dispensers' and ‘Sprays’

• Established brand support• Reasonable price• Available in a variety of

exciting fragrances

• Lack of knowledge about the home fragrances segment, mainly agarbattis, which are considered the original home fragrances

• Availability of cheaper substitutes

• Expand brand portfolio and make it a complete air freshening brand by bringing in car Air Fresheners

• Tie up with hotels, restaurants, airlines companies

• Bringing in home fragrances in the form of candles and gels, agarbattis.

• Develop customized fragrances for hotels and stores

• Aggressive competition from multinational giants

• Unexpected spike in input costs

• New entrants

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BRAND EXTENSION-PROPOSAL

Praxis Business School MM2 Project - Air Freshener

COMPANY Dabur India Limited

BRAND Odonil

PROPOSAL Car Air Freshener Segment

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MARKETING MIX

Praxis Business School MM2 Project - Air Freshener

PRODUCT

PRICE

PROMOTION

PLACE

Name: “Odonil Breeze” Packaging: Plastic bottles with adjustable lids Features: Bottles with 4 compartments containing different fragrances

Comparable Pricing in line with competitors

Free samples to customers in Car Showrooms, garages and car parking lots in malls Ads in TV and Newspapers

A three-pronged approach for distribution: General Trade Modern Trade Car Accessories Showrooms

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SURVEY

Praxis Business School MM2 Project - Air Freshener

Car67%

Gel33%

Sample Size: 21 Following are the conclusions from the surveyQ Which are the following brands are you aware of?

Odonil AirWick Aer Glade

100% people were aware about Odonil.

Q If Odonil comes in following formats, which one will you go for?

Car Air Freshener Gel Incense Sticks

67% people would like to go for “Car Air Freshener”

Odonil AirWick Aer Glade

100.0%

90.5%

52.4%

4.8%

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REASONS FOR CHOOSING “ODONIL BREEZE” CAR AIR FRESHENER

Praxis Business School MM2 Project - Air Freshener

Odonil has 42% market share in Air care market, which makes Odonil very popular. Therefore, no need of extensive advertising.

Dabur has strong distribution network and an extensive supply chain

Expand brand portfolio and make it a complete air freshening brand by bringing in car air freshener.

Number of households using the category has been increasing across all the SECs

Air care market growing at an average of 20% year on year Established brand support

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BIBLIOGRAPHY

Praxis Business School MM2 Project - Air Freshener

http://pitchonnet.com/blog/2012/05/21/air-fragrance-market-breathes-a-fresh-lease-of-life/

http://pitchonnet.com/blog/2012/07/10/godrej-re-enters-the-air-care-market-with-aer/

http://www.dabur.com/Products-Home%20Care-Odonil http://pitchonnet.com/blog/2012/05/21/air-fragrance-market-breathes-a-fresh-le

ase-of-life/

http://www.premiumhomefresh.com/Premiumlavender.aspx http://marketingpractice.blogspot.in/2008/03/airwick-its-good-to-be-home.html

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THANK YOU

Praxis Business School MM2 Project - Air Freshener


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