Report on Ayur Shampoo

FMCG Industry Overview

FMCG refers to consumers non durable goods required for daily or frequent use. Typically, a consumer buys these goods at least once a month. Individual products are of small value but all FMCG products put together account for a significant part of consumer’s budget. Many of these products are perishable. Consumers spend little time on purchase decision and they rarely look for technical specification. Meet the demand of the entire cross section of population. E.g.: shampoos, soaps etc. Hair shampoos are targeted at upper middle class, middle class & house wives, teenagers etc.

TYPES OF SHAMPOOS: shampoo market is segmented on benefit platform: Cosmetic ( shine ,health ,strength;) Anti dandruff Herbal.

SHAMPOO MARKET SIZE 970 crores. SHAMPOO AWARENESS Urban 90%, Rural 70%SHAMPOO USAGE Per capita consumption of shampoo in India 13ml.

GROWTH IN SHAMPOO MARKET Average growth more than 20% Expected average growth 25%

HAIR CARE FACTS

1. The frequency of shampoo usage is very low. Most consumers use shampoo only once or twice in a week. In many cases these products are used on special occasions such as weddings , parties etc.

2. Some consumers use shampoo only to address a specific problem such as a dandruff or when they need to condition their hair.

3. Use of conditioners is not common. It is restricted to the super premium segment or those who are very involved with their hair care.

4. Some consumers use natural conditioning agents such as henna.

5. About 50% of consumers use ordinary toilet soaps to wash their hair.

6. Brand loyaty is not strong.

7. Southern market is predominantly a sachet market, counting for 70% of sachet volumes.

8. Shampoo bottles are more popular in north. Local brands such as ayur have strong equities and these products being low priced dilute sachets USP of low price.

Top herbal brands, Ayur, Dabur vatika , Nyle, Himalaya.

MARKET POSITION OF HERBAL SHAMPOO BRANDS

BRANDS MARKET POSITION

NYLE 1

AYUR 2

HIMALAYA 3

AYUSH 4

DABUR VATIKA 5

HISTORY

Ayur as a Company was formed in the year 1985. It was making one single product Hair Removing Wax initially. Buoyed by its success & laden with formulae of many preparations, it introduced Herbal Hair & Skin Care Products in the market. Soon it carved its own niche in the market, where there were only chemicals products available to the customer. Today, Ayur has more than 55 variants in Hair, Skin & Face Care Products.

Today, the Ayur Brand enjoys a high volume of sales in domestic, as well as in foreign market. The products are in high demand in countries like USA, UK, Mauritius, Canada, Russia, South East Asia & UAE.

Introduction

Ayur caters to the masses satisfying a need with a reasonably priced quality product which ensures value for money. Ayur is not fashionable but it is usable."The key to my success", says Mr. Dilvinder Singh Narang, the MD of Ayur, "lies in its ensuring that the customer gets what he pays for. The retailer is serviced properly with no false promises and that the business is carried out on the principal ethics of quality, right price and fairness in dealings". His key to success also lies in his treating his employees as his partners in business so that the watch word of work ethics is driven by a sense of proprietory- the final word in ensuring employees motivation.

The product Mix is evolving to cater to the diversity in the Indian  Market- a reflection of the diversity in Indian ethos. AYUR is adding a whole new range of products to its already vast repertoire of products.

We at Ayur  ensures, always, that the consumer gets his value from the product. Target this year is to reach a turnover of Rs 100crore. AYUR has a dealer network of about 1 Lac Dealers throughout the length and breadth of the country and the plan is to increased to about 700 from the present strength of about 500. The Distributors are being serviced by a network of 23 C/Fs and 4 Super Stockiest.

The message that AYUR is conveying to the Indian Companies reeling under the on slaughter of the multinationals is that if you believe in your ethics, remain fast to your principals and follow the age old dictum of treating your customer as your God- you will continue to succeed come what may. AYUR-truly a company seeped in our Indian way is the right flag bearer of our heritage-thus helping to carry it on.

People behind the Ayur Empire are 3 ambitious brothers. It is their hard work, perseverance & total dedication towards achieving their goal of being 'the tops' in their profession, that has shown them this success they enjoy today. The Company's mission & main aim is to reach maximum number of people, with a high quality & economically very affordable range of herbal products. The Company is aspiring to see its products in every household - in India definitely, but also abroad.

Ayur products

Skin care

Ayur ALL PURPOSE CREAM Ayur ALMOND NOURISHING CREAM Ayur HERBAL MASSAGE CREAM WITH ALOE VERA Ayur HERBAL COLD CREAM WITH ALOE VERA Ayur PETROLEUM JELLY Ayur HERBAL SKIN TONER WITH ALOE VERA

Hair care

Ayur AMLA SHIKAKAI WITH REETHA SHAMPOO Ayur COCONUT SHAMPOO Ayur HENNA TULSI SHAMPOO Ayur ROSEMARY SHAMPOO Ayur SOYA PROTEIN SHAMPOO Ayur LEMON SHAMPOO Ayur AMLA SHIKAKAI WITH BRAHMI OIL Ayur HAIR TREATMENT OIL Ayur NATURAL HAIR WASH WITH AMLA & SHIKAKAI Ayur HAIR STYLING GEL

Body care

Ayur TULSIEEM SOAP Ayur HERBAL KAJAL Ayur HOT WAX Ayur COLD WAX Ayur BEST'O'CREAM Ayur HENNA POWDER

METHODOLOGY

To prepare this report we have adopted the following approach :-

We chose to study the consumer behavior for Ayur Shampoo. We studied the brand on the different factors starting with the parent company RDB TRADERS PVT. ltd. its background and various products it offers to the market. We tried to collect the sales figure of the shampoo in different markets, the brand perception and the satisfaction which the consumer derived.

Methods of preparation of data

We collected the information from primary as well as secondary sources.

Primary sources

Target audience: market survey was conducted at various places in Gurgaon like sector14, sector23, Sadar bazaar, DLF market etc. the reasons why we chose these different markets is to obtain a representative response from people belonging to a cross section of society. We interviewed the shop owners and users of the shampoo.

Sample size

we surveyed 50 retailers and 50 consumers.

Secondary sources

Secondary sources were online information, journals and magazines. lastly we have done the analysis on the basis of our survey. We have made use of the analytical tools like pie charts, graphs etc. which helped us in getting better perspective of consumer perception, buying behavior, satisfaction and other things we required for our project.

ANALYSIS

1 Have you ever tried Ayur shampoo?

YES NO

23%

77%

Yes

No

2 Will you use it further?

Yes No

82%

18%

Yes

No

3 In which category do you place Ayur shampoo?

Chemically concentrated Herbal Medicated

90%

6% 4%

Herbal

Chemical

Medicated

4 What do look for in a shampoo?

Brand Price

Packaging Fragrance

46%

32%

10%

12%

Brand

Price

Packaging

Fragrance

5 How do you perceive Ayur as a brand? Good,effective Bad,effective

Good,ineffective Bad,ineffective

8%

30%

3%

59%

Good,Effective

Bad,Effective

Good,Ineffective

Bad,Ineffective

6 The packaging of Ayur shampoo?

Attractive Satisfactory

Needs Improvement

13%

85%

2%

Satisfactory

Needs Improvement

Attractive

7 Have you ever seen Ayur advertisement promotions?

Yes No

11%

89%

Yes

No

8 How satisfied are you with advertisement strategies of Ayur?

Less Moderately

Highly

78%

20%2%

Low

Moderately

High

9. How will you rate the advertisements ?

Bad Average Good

76%

16%

8%

Bad

Average

Good

10. Rate its affordability

Cheap Reasonable Expensive

88%

10% 2%

Cheap

Reasonable

Expensive

Findings from consumer survey

Consumer Perception

Ayur’s positioning in the minds of consumer is very clear as our survey reveals 90% of the sample is aware that Ayur is a Herbal Product brand. Brand name of the shampoo has lot of influence on the buying decision of the customers as per the survey. However Ayur as a brand is not thought of very highly by its consumers, but its shampoo is considered very effective.Something significant was noticed, that consumers are not satisfied with its packaging and find the shampoo bottles unattractive. This is the area where Ayur has to improve in order to fetch more consumers.

Advertising Strategies

Shocking results from the survey suggests that Ayur not only needs to invest more in advertising promotions but also needs to improve their quality. Their T.V and radio advertisements or hoardings are not eye catching which reduces the brand awareness.

Ayur vs its competitors

Packaging, sales promotion schemes, aggressive advertisements, celebrity endorsements etc are some of the marketing strategies where Ayur lags far behind which is costing it in the form of low brand awareness and consciousness. What is more noticeable is the fact that Ayur has positioned its products in a very unprofessional way whereas its competitors although using inferior inputs: but by using right STP makes their product more attractive and thus drives the consumers to their shops.

Findings of the Retailer survey

1. 70% of the southern India use sachets. Thus, it constitutes a big market. But Ayur is not available in sachets

2. Customer loyalty is there but the product is creating new customers at a very snail rate.

3. People tend to change their shampoo brands frequently hence the whole shampoo industry faces the problem of customer loyalty.

4. Ayur sales are majorly through its henna and shikaakayi shampoos. Its other flavors like rose, lemon and coconut contribute little shares in their sales.

5. Ayur has got strong network of distribution. From the small kiranas to the big retail houses, its availability is not a concern. This shows that company believes that if the consumer sees the product in the store then he will buy it.Also the shampoos were available at most of the medical stores.

SUGGESTIONS

ADVERTISEMENT AND PROMOTIONS Ayur is going out of site and there is risk of loosing mind share also. The need of the hour in the F.M.C.G industry is to keep the consumers updated with the product. With so many shampoos in the market, it is necessary to carve your own niche and ayur is lacking here. Hence to keep the customers literate about the product, they need to undertake adequate marketing and promotional activities.our suggestions for the advertising to be undertaken are:-

Ayur had its television advertisements but they were not appealing to the masses. Their advertisements were more inclined towards targeting women and gave a blind eye towards the bigger segment of men.

In addition, the advertisements were outdated and formed a overall dull brand image of the product. Most of the youth surveyed were ashamed of using the shampoo.

Now to do away with the above anomalies, the company needs to advertise more frequently through television commercials, print media and outdoor advertising. The advertising must be able to influence the youth and change the brand image.

IMPROVING THE PACKAGING

In the FMCG industry the saying works “ jo dikhtaa hai woh biktaa hai”. Ayur needs to improve its look – a complete makeover of its physical appearance. Since in the shampoo market, the buyer’s decision is largely affected by the appearance of the product, hence a trendy packaging can help in attracting new users.

MARKETING THROUGH DISTRIBUTORS AND THE RETAILERS

Company should increase the retailers and distributors profit margin so that they concentrate towards selling the product and promoting them in their stores.

MAKEOVER OF THE AYUR LOGO

The logo of Ayur gives a dowdy look, it needs to be uplifted with better design and look.

PROMOTING THEIR OTHER VARIANTS OF SHAMPOO

Ayurs shampoo sales are concentrated on henna and shikaakayi. They should work toward making masses aware of the various variants.

TAPPING THE RURAL MARKET

The major sales of Ayur are from the urban sector but it is the rural people which are more inclined towards using herbal products for hair care. Ayur needs to focus on this section of market, which has more expected growth rate than the urban market. Therefore, concentration on the rural markets by Ayur is necessary, and this can realize impressive revenues.

INTRODUCING SACHET

Since 70% of the consumers prefer buying shampoo in sachets and ayur is not available in the sachets so it is highly recommended that they should come up with the sachets so that they can fullfil the needs of different types of buyers.

UNEXPLORED MARKET

On the basis of our market survey we found that a large percentage of buyers buy their daily use items from csd canteens in gurgaon so it is recommended that Ayur should consider it as a possible market to increase their sales on the regional basis.