Presented By: Group 7Members: Hitesh Bajaj 231065
Jashandeep Singh 231069 Jayant Adlakha 231070 Kirti Obhan 231076 Naveen Suman 231094 Rohan Sachdeva 231118
DEODORANT INDUSTRY
Submitted to Prof.Payal Kapoor
L'Oral- SAPPHIREStrong enough for a Man, But made for a Woman
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ContentsACKNOWLEDGEMENT ............................................................................................................................3
EXECUTIVE SUMMARY ..........................................................................................................................4
LOREAL ..................................................................................................................................................5
Mission................................................................................................................................................5
Vision ..................................................................................................................................................5
Values .................................................................................................................................................5
MARKET ANALYSIS ................................................................................................................................6
PESTEL ANALYSIS ................................................................................................................................6
Political factors: ..............................................................................................................................6
Economic Factors:...........................................................................................................................6
Social Factors: .................................................................................................................................6
Technological Factors: ....................................................................................................................6
Environmental factors:...................................................................................................................6
Legal factors:...................................................................................................................................7
Porters Five Forces ............................................................................................................................7
Bargaining power of buyers ...........................................................................................................7
Bargaining power of suppliers .......................................................................................................7
Threat of substitutes ......................................................................................................................7
Threat of new entrants ..................................................................................................................7
Industry Rivalry ..............................................................................................................................7
INDUSTRY ANALYSIS .............................................................................................................................8
FMCG Industry....................................................................................................................................8
Personal Care......................................................................................................................................8
Deodorant Industry ............................................................................................................................9
Market Value of different types of fragrances Deodorants, Perfumes and Roll Ons ....................10
Marketing Strategies of Competitors ..................................................................................................11
Fogg:..................................................................................................................................................11
Axe: ...................................................................................................................................................12
Wildstone: ........................................................................................................................................13
Engage: .............................................................................................................................................13
Park Avenue: ....................................................................................................................................15
Women Deodorant: .........................................................................................................................16
Fogg:..............................................................................................................................................16
Spinz:.............................................................................................................................................16
Nivea: ............................................................................................................................................16
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Eva:................................................................................................................................................16
SWOT Analysis for Beauty Segment (BU L'real, India) ..................................................................16
Strength: ...........................................................................................................................................17
Weakness:.........................................................................................................................................17
Opportunities: ..................................................................................................................................17
Threats:.............................................................................................................................................17
PERFORMANCE REVIEW..........................................................................................................................17
Fogg:..................................................................................................................................................18
Axe: ...................................................................................................................................................18
Engage: .............................................................................................................................................19
Wild stone: .......................................................................................................................................19
Park Avenue: ....................................................................................................................................19
SEGMENTATION, TARGETING AND POSITIONING .........................................................................................20
Segmentation ...................................................................................................................................20
Target................................................................................................................................................20
Positioning ........................................................................................................................................21
Perceptual Map for Womens Deodorant ...........................................................................................22
OBJECTIVES .............................................................................................................................................22
MARKETING STRATEGY ...........................................................................................................................23
ACTION PLANS ........................................................................................................................................24
Product Strategy...............................................................................................................................24
Pricing Strategy.................................................................................................................................25
Distribution Strategy ........................................................................................................................25
Promotion Strategy ..........................................................................................................................26
Sales force strategy ..........................................................................................................................27
PROFIT AND LOSS STATEMENT ............................................................................................................28
Calculation of Revenue from Operations (Gross) .............................................................................28
Profit and Loss Account ....................................................................................................................28
Profit Percentage before Tax, Interest and Depreciation are as follows:.........................................29
MONITORING AND CONTROL ..............................................................................................................30
Contingency Plan..............................................................................................................................30
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ACKNOWLEDGEMENT
Apart from the efforts of the group, the success of any project depends largely on the encouragement and guidelines of many others. We take this opportunity to express our gratitude to the people who have been instrumental in completion of this project. We would like to show our greatest appreciation to Prof. Payal Kapoor (FORE School of Management). We can't thank her enough for her tremendous support and help. Without her encouragement and guidance this project would not have got materialized. We would also like to thank our friends for their support and cooperation. Our appreciation also goes to the FORE School Of Management for allowing us access to various resources, and to the College Library.
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EXECUTIVE SUMMARYIndia is one of the largest economies in the world in terms of purchasing power and increasing consumer spending, next to China. The Indian FMCG industry, with an estimated market size of ~Rs. 2 trillion, accounts for the fourth largest sector in India.
In FMCG Sector, the personal care products (PCP) market in India is estimated to be worth ~Rs. 440 Billion. Personal hygiene products (including bath and shower products, deodorants etc.), hair care, skin care, colour cosmetics and fragrances are the key segments of the personal care market.
The fragrance industry consists of deodorants, perfumes and roll-ons. Rising demand for fragrances from tier II and III markets is the real growth driver of this industry. Though there are limited options for women but the segment is likely to see an upsurge with various existing brands and new entrants resorting to sustained media campaigns to cash in on the untapped category with enormous growth potential.
This report includes understanding of LOrals existing mission, vision and values of the company. The report provides the marketing plan for the launch of a new product by LOral in deodorant market by analysing the current industry scenario focusing on the existing deodorant market share for women, projected growth for few years, strength, weakness, marketing strategy, pricing strategy and product strategy of the company and its competitors.
The report provides the strategy to be adopted by the company by providing details about distribution channel, sales force allocation and promotion for the successful launch of the new product. The product, "Sapphire" deodorant, can be successfully launched successfully by using the existing distribution channel of other beauty products, spending more on advertising, adopting competitive pricing method and no change in the sales force team.
The project was done primarily on the basis of data collected for the LOral website, news, articles and other relevant information available online.
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LOREALMissionLOral has set itself the mission of offering all women and men worldwide the best of personal care innovation in terms of quality, efficacy and safety. It pursues this goal by meeting the infinite diversity of beauty needs and desires all over the world.
Our R&I centre has a dual mission: to adapt the technologies developed by the worldwide centres to meet the expectations of Indian consumers. And, we are looking at green field projects from ideation to implementation of projects and designing new technologies and products at our centre.
VisionTogether we will make beauty sustainable. Together we will make sustainability beautiful.
ValuesThe six founding values: Passion, Innovation, Entrepreneurial spirit, Open-mindedness, quest for Excellence and Responsibility.
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MARKET ANALYSISPESTEL ANALYSISPolitical factors:
Controversial advertisements of deodorants regularly subjected to criticism by political parties.
The custom duty on imported perfumes is high (around 27%) which makes it a premium product.
Political interference when it comes to culture and societal values. The depiction and portrayal of women in the ads are considered as overtly sexual.
Economic Factors: Deodorants are considered as a personal care product which is not necessarily a necessity,
when people have less purchasing power they reduce its consumption. Core driver for using deodorant is getting ready for jobs, when unemployment increases
usage decreases. Business environment is becoming highly competitive, as the numbers of brands are
increasing. Indian consumers want value for money; hence companies are providing different products
for different segments.
Social Factors: With change in Lifestyle and increase in personal disposable income, people tend to focus
more on hygiene and therefore increase deodorant consumption. Target segment is the younger generation which is more progressive and westernized. With increase in Female Employment use of deodorants by Females is also increasing.
Technological Factors: The R & D Cost is not very high, this provides for new easy entry of new players in deodorant
market. Failure to provide technical capability in the R&D function and quickly roll out the products
may adversely impact its profitability and reputation in near future. More spending on IT by different players to improve the efficiency of its business process
and reduce costs. Deodorant companies communicate to consumers, especially youth using digital platforms
i.e. social networking sites.
Environmental factors: Some people are allergic to aluminium and may experience contact dermatitis when
exposed to deodorants containing aluminium. Some studies have linked breast cancer with aluminium based antiperspirants. Showering washes our deodorants down the drain, introducing known or suspected toxins
into our nations waterways.
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Companies are maintaining high environmental standards by designing and producing products that are safe for consumers and using environment friendly materials and packing stuff.
Legal factors: Companies have a legal responsibility for the safety of their products and ingredients.
Companies are subject to laws and regulations both locally and globally, which cover diverse areas such as product safety, trademarks, copyright, patents, customers health and safety, the environment, corporate governance and unfair practices.
Failure to comply with laws and regulations could leave them open to civil and criminal legal challenge and may result in fines or imprisonment of personnel.
Porters Five ForcesBargaining power of buyersBuyers have moderate to high bargaining power as there are many products available to the consumer and they typically have low loyalty and can easily switch between products.
Bargaining power of suppliersBargaining power of supplier is low to moderate as the company incurs some cost while switching suppliers. On the other hand, suppliers that do a large amount of business with these companies also are somewhat beholden to their customers. Nevertheless, the bargaining power for both the firms and their suppliers is probably limited.
Threat of substitutesThe threat of substitutes is moderate to high as deodorants can be easily substituted by Perfumes, roll-ons, talcum powder etc.
Threat of new entrantsDeodorant is a highly competitive industry and the product features can be easily imitated due to relatively low cost of R & D .Hence new brands are being launched regularly and customer retention is difficult. Manufacturers of deodorants are typically large companies producing a wide range of personal hygiene products, cosmetics and other consumer goods and their economies of scale allow them to compete more efficiently. Small companies may require a huge capital investment to enter in personal care segment like Deodorants, and hence might find it difficult to sustain itself in the long run. Hence the threat of new entrants is moderate as there isnt much customer loyalty.
Industry RivalrySince the deodorant market is a high growing market , a large number of products are being launched by established market players which is increasing completion .Rivalry is increased by the presence of a large number of brands and limited differentiation within the market. Hence, competition in this market is high.
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INDUSTRY ANALYSISFMCG IndustryIndia is one of the largest economies in the world in terms of purchasing power and increasing consumer spending, next to China. The Indian FMCG industry, with an estimated market size of ~Rs. 2 trillion, accounts for the fourth largest sector in India. In the last decade, the FMCG sector has grown at an average of 11% a year; in the last five years, annual growth accelerated at compounded rate of ~14.7%. The sector is characterized by strong presence of global businesses, intense competition between organized and unorganized players, well established distribution network and low operational cost.
Source: www.ibef.com
Growing awareness, easier access, and changing lifestyles and with rise in disposable incomes, mid-and high-income consumers in urban areas have shifted their purchasing trend from essential to premium products. In response, firms have started enhancing their premium products portfolio. Rural demand & demand in tier 2 tier 3 cities is set to rise with rising incomes and greater awareness of brands.
Personal CareIndian personal care product market is observing different trends for different segment of users. On one hand we have urban customers whose needs are evolving and require customisation of the product offering. On the other hand, we have rural customers where the penetration is increasing, but their price sensitivity requires cost effective product offerings.
The personal care products (PCP) market in India is estimated to be worth ~Rs. 440 Billion. Personal hygiene products (including bath and shower products, deodorants etc.), hair care, skin care, colour
43%
22%
12%
8%
4%
4%2% 5%
Revenuewise Market share
Food Products
Personal Care
Fabric Care
Hair Care
Households
OTC Products
Baby Care
Others
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cosmetics and fragrances are the key segments of the personal care market. Each of these segments exhibits its unique trends and growth patterns.
Deodorant IndustryAccording to a study released by the industry body, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) titled 'Domestic Fragrance Industry: The way ahead', the industry in the last decade has grown with a CAGR of 38.5%. It is expected to reach around Rs.5000 crores by 2017 and Rs.6361 crores by 2018 with a CAGR of around 28%.
Source: www.economictimes.com
500 695952 1290
17302300
30183915
5020
6361
01000200030004000500060007000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenue
39.0% 37.0% 35.5% 34.1% 32.9% 31.2% 29.7% 28.2% 26.7%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Growth
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Market Value of different types of fragrances Deodorants, Perfumes and Roll ons
Source: Economic Times and ASSOCHAM India*
* - The market value for perfumes and roll ons are the Projected figure of ASSOCHAM 2013 report, which estimates the market value at Rs.1500 crores for perfumes and Rs.400 crores for roll ons at an annual growth rate of 30% and 55% respectively)
About 69 per cent of the whole fragrance market is dominated by the men's category which is also highly fragmented and keeps evolving with change in attitudes and lifestyle. Besides, high-end perfumes in the male category are also doing a brisk business courtesy the growing urge among urban Indian males to stay well-groomed. Though there are limited options for women but the segment is likely to see an upsurge with various existing brands and new entrants resorting to sustained media campaigns to cash in on the untapped category with enormous growth potential.Teenagers are a significant segment in both male and female categories as an average teenager at an urban center tends to spend anywhere between Rs. 500 and Rs. 2,000 only on fragrance including - deodorants, roll-ons and perfumes.
Source: www.economictimes.com
23001950
620
0
500
1000
1500
2000
2500
Market Value 2014
Market Value of Fragrances
Deodorant Perfume Roll ons
69
31
Gender-wise Split of Fragrance Industry
Male Female
90
10
100
16.7829
18
0
20
40
60
80
100
120
Urban Rural Total
Breakup based on Urban and Rural Market
Percentage Growth rate
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The deodorant market is growing at around 18 per cent annually, and the growth in rural markets that account for a tenth of deodorant sales, is 29 per cent.
Source: www.economictimes.com
Marketing Strategies of CompetitorsFogg:
Company: Vini Cosmetics Segment: Outdoor oriented, Fashion oriental, trendy Targeting: Concentrate on customers seeking products which give value in excess of its price
or for sophisticated customer. It focuses on youth (15-30) in Urban and Semi-urban areas, who are value oriented and will be attracted by the longevity and quality offered by Fogg
Occupation: Students, bachelors, young professionals Income Level: Middle income group Positioning: The Company started an aggressive TV campaign with a high number of ads
being broadcasted at primetime and high viewer segments such as cricket matches. The brand tried to differentiate itself from other products which were only focusing on advertising which shows the same concept of boy attracting girl. They have positioned the brand based on a very logical appeal where they focus on the positive qualities of the product and how much better its performance is in comparison to other products which they say only consist of gas while FOGG is without gas and full of product. The positioning statement of FOGG body spray focuses on the fact that it contains only perfumed liquid and no gas in it unlike other products and the company is guaranteeing 800 sprays for a bottle containing 100gm of container. This has created a differentiation for FOGG in terms of quality of product. The tagline is- "Bina Gas wala body Spray"- in English it means -"A body Spray without gas"
Product: The USP of the product is that it is perfume based deodorant unlike its competitors which are gas based. It promises long lasting fragrance and 800 sprays per bottle of Fogg deodorant. It comes in various fragrances targeted for men and women, and in various fragrances like Marco, Napoleon, Royale, emperor, Fresh, Black, Majestic, etc.
Price: Fogg is priced at Rs. 179 per 150 ml bottle, and its Black range of deodorants as priced at Rs.199 per 150 ml SKU. With promise of no gas and only perfume, and 800 sprays per bottle, it is priced as a value for money product.
13%
8%
7%
7%7%
59%
Market Share
Fogg
Engage
Axe
Wildstone
Park Avenue
others
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Place: Vini Cosmetics, the parent company which manufactures and markets Fogg range of deodorants has a wide and deep distribution network in India. It is available in modern trade as well as retail trade stores all over urban and rural India.
Promotion: Fogg has positioned the brand based on a very rational appeal where they have shown a customer who using a normal brand and gets fed up with it because the body spray consists of only gas, and only gas comes out instead of the perfumed liquid. Then a comparison is shown between a normal body spray and the FOGG body spray where the normal body spray fills glass less than half with liquid whereas the rest evaporates as gas, whereas the FOGG body spray fills the glass more than half with almost none of the liquid getting lost due to gas. The tagline is- "Bina Gas wala body Spray"- Which in English means -"A body Spray without gas"
Axe: Targeting : Concentrate on single-segment (male 15-30) in Urban and semi urban areas, who
are lifestyle oriented, trendy, cosmopolitan with regular and high usage of deodorant, Occupation: Students, bachelors, young professionals. Income: Middle income group Positioning: The Company extensively uses the TV ads and conducting many Campaigns.
Besides TV commercials the brand also uses internet media and sponsoring some events. The biggest strength of this brand is the underlying message that the brand users are high on confidence and always go for the Axe. It also ensures that consumers are mostly engaged with new Fragrances. In 2014, Axe had a profile lunch of its new fragrance "Axe Peace".
The male models used in Axe advertisements are regular guys, unlike those of its competitors, who use models with perfectly chiseled bodies. This conveys the message that Axe is for everyone, and your confidence and Axe Effect can cast a spell on girls.
Product: Variety of AXE DEO's: Axe offers a wide range of fragrances in their deodorants. Some variants of AXE are: peace, harmony, anarchy, Apollo, excite, dark temptation etc. Axe comes up with new fragrances and range of deodorants every 4 months to keep the freshness of brand alive.
Quality: All the variants of AXE deos are dermatologically tested and do not have any kind of side effects on the skin, it offers good fragrance which has long lasting effect.
Packaging: The bottle of Axe deodorant looks sturdier and its twisting on top which is better than older design. Unique bottle helps in brand differentiation and better recall.
Price: AXE deodorant is priced to offer its customers good value for money. The price of all variants of axe is same. They just have different fragrances and flavors. Rs. 150 for 150 ml of deodorant.
Place: Placing and availability of product plays significant role in determining the sales of product. Axe relies on location and distribution channels. There is high availability of Axe deos in all stores, such as modern retail, traditional mom and pop stores, drug stores of all sizes.
Promotion:o Advertising: Primary tool used by AXE is TV commercials, print ads and billboards
which increase brand awareness.o Interactive Marketing: Engage customers and directly or indirectly raise awareness
through social media and online. Campaigns like theaxeeffect.com. Various campaigns "Call me", "AXE feather", "AXE Land" for an increased customer engagements.
o Central Theme of Campaigns: Seduction where Girl makes the first move. Brand assumed that Men like to be seduced.
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Wildstone:The idea, is to create occasion specific offerings, such as mild fragrances for office-goers; stronger ones for party-goers and so on.
Under consideration: Wild Stone is also mulling an entry into gasless deo varieties. Targeting: Concentrate on single-segment (male 15-30) in Urban and semi urban areas, who
are lifestyle oriented, trendy, and cosmopolitan with regular and high usage of deodorant. Occupation: Students, bachelors, young professionals Income: middle income group, Same as AXE, but high regional concentration of sales in its
home turf East India, with rising sales and market share in southern and western markets. Positioning: Product was positioned as a sexy or naughty product for young males which
transformed an uninspiring average Joe into the jealousy-inducing Chick magnet. Whilesexy was the buzzword in the segment, the communication was not personalized to the Indian clientele. Axe and Set Wet propagated their message through foreign models in foreign locations. While they did capture attention and communicate, the characters werent relatable to the audience. This is where Wild Stone differentiated. Adopting to the Indian tastes, they communicated through Indian men and women, who the audience can relate to, set in typically Indian scenes like Durga Puja, Holi or Monsoon season. While others promised the user the attention of hordes of girls, Wild Stone promised inciting deep passion and frenzied fantasies in a single woman Indian, traditional, mysterious and not overtly sexual. Unlike others who were tagged as playful and youthful, Wild Stone became associated with passion and mystery.
Product: Wildstone too offers a wide range of fragrances in their deodorants. Some variants of Wildstone are: Red, Aqua Fresh, Ultra Sensual, Thunder, Smoke, and knight Rider etc. keeping in view the mystery element associated with the product.
Price: Wildstone deodorant is priced to offer its customers good value for money. The price of all variants of Wildstone is same and is priced similarly as its competitors.
Place: Wide distribution network ensures high availability of Wildstone deodorants in all stores such as modern retail, traditional mom and pop stores, drug stores of all sizes pan India. Also, available for sale on ecommerce sites like Flipkart.com.
Promotion: o Advertising: Primary tool is TV commercials, print ads and billboards which increase
brand awareness.o Central Theme of Campaigns: Similar to other competitors Wildstone also Seduction
where Girl makes the first move. Brand assumed that Men like to be seduced.
Engage:Engage Deo was launched by ITC in 2013. In just over a year, it is already number two in the deodorant market.
Positioning: Deodorant industry was crowded with similar products with similar advertising (man attracts women).On one side Fogg changed the market by focusing on its effectiveness and performance, Engage also tried to differentiate itself by being a product for both men and women. While deodorant market is mostly dominated by male customers (69%), Engage tried to cater to the needs of other 31 % too. They also try to focus on urban youth.
Product: Continuing their theme of a deo for couples, they have variants in pair. Engage was launched with three pair of deodorants, namely:
o Rush (Male) & Blush (Female)o Mate (male) and Spell (Female)o Urge (male) and Tease (Female)
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o Now they have 7 pairs of offering, namely (other than earlier three): Frost (M) and Drizzle (F) Jump (M) and Trail (F) Intensity (M) and OWhiff (F) Fuzz (M) and Tempt (F)
o Also, they try to differentiate with their packaging. Deodorant is a highly competitive market with numerous brands competing for shelf space. In this, a differentiated packaging helps in catching the eye of the customer. Packaging is made to appeal to the target group that is youth. Packaging is mostly in peculiarly shaped cans and uses silhouettes as its key design component. The brand proposition Playful Chemistry, is well complemented with this innovative and fashionable packaging design which helps in making some eye catching billboard advertising as well.
o Engage for men has a bold, modern look and has been designed in classical black with a tinge of effervescent colors. Black represent masculinity and bottle being mostly black helps in distinguishing the specific product as the male one .The range for women are in bright hues of Pink, Blue, Yellow and Green on a can shape designed with contemporary feminine patterns. Bright colors are generally more attractive to women and this kind of packaging distinguishes the male and female products properly thus making it easy for customers to pick the product. Also, color-codes show which specific variant it is from Engage and having a color code will ease purchase for customers.
Price: The Engage deo is priced toward the lower side of the market around INR 175. It is focused on urban youth and tried to provide service at a price well within their means. Perceived value of the deo is almost the same as for other products in the same price range. This can also be seen by the fact that the market share of engage deo is increasing which can only be because the customer is finding value more than the price being charged.
Place: ITC has a very extensive distribution network reaching out to far corners of India. Also, its available now on major online retailers like Flipkart, Snapdeal etc. ITC can do Direct servicing of 100,000 markets & 2 million retail outlets. ITC has been doing many innovations in the field of distribution management, one of the recent example of that would be the e-choupal initiative which links farmers directly to the company in a mutually beneficial relationship. Its also gearing up to roll out their products through paan wallahs. ITCs distribution for cigarettes over the years meant that there is a high amount of trust between the company and paan wallahs. ITC is planning to use them to distribute their product, thus shaking up its distribution. This advantage in channels have meant that Engage have been available at every place in India. Especially the target group of urban youth is easily covered. Brand name of ITC means that they tend to get better shelf space then other brands in different retail outlets. This reach has certainly been one of the major factors of them being able to leapfrog brands such as Axe, Wild Stone etc. to number two position in deodorants market.
Promotion: Engage is being positioned as India's first 'couple deodorant'. In addition to being sold as separate pieces, it is also being sold in couple combo packs which offers some monetary benefit over purchasing separately. This is to enhance the positioning as a brand for couples.
o Ad is based on the Chemistry between the couples. Its tag line is Love has an all new language.
o While Axe and a few other deo were focused on ads which showed men being desirable after using their product, and while Fogg showed itself to be a brand which gives high value, Engage was trying to position itself as something which celebrates young love. Its attractive packaging design is meant to attract this
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urban youth population. It shows deodorant as a product which is used by both men and women. While, the market is actually male dominated with 69% of volumes being consumed by male consumers. With such high competition and so many brands competing, a differentiated product is very important.
o A unique positioning coupled with ITCs extensive distribution network has led to the success of Engage.
o One of the promotion technique which used the packaging design was executed in Mumbai and Bangalore. The strategy was to promote the brand among youth while also bringing alive special couple moments engaging in a new language of love. This is
o What the positioning of Engage is all about. In rainy season ITC created umbrellas with the silhouette of a couple. These were then handed out to couples seated in parks, gardens, college campuses and popular streets. They created branding around benches in these areas with placed standees. Large units were created in the shape of the deodorants as they are sold and placed at famous destinations like the romance rocks at Bandstand, Carter Road and Marine Drive. This campaign helped define Engage as brand for young couples.
Park Avenue:PARK AVENUE, one of the biggest brands in the world of Apparels, Cosmetics & Toiletries is one of the ventures of the J.K. Helene Curtis Limited. Till date it has been generally successful with all the products and ranges offered. All this is the contribution of its strong brand equity & a strong PR it has built over a period of time about its products and has been leveraging that time and again. But the recently launched I.Q. in the Deodorant segment is not that successful, all this is the contribution of neglect of the product by J.K. Empire.
PARK AVENUE has a wide distinction in the deodorants segment in the FRESHNESS DEODORANT section. It offers-
1. Storm (Tagline: energetic, suave, cool, the stars fragrance)
2. Horizon (Tagline: airy, oceanic, profound, the travellersfragrance)
3. Alpha (Tagline: precise, strong, ahead, the directors fragrance)
4. Cool Blue (Tagline: calm, smooth, breezy, the temperate fragrance)
5. Tranquil (Tagline: serene, august, relaxed, the sailors fragrance)6. Cruise (Tagline: fresh, wavy, soothing, the explorers fragrance)7. Good Morning (Tagline: rejuvenating, prim, composed, the enigmatic fragrance)8. I.Q. (Tagline: vibrant, winsome, fast, the torchbearers fragrance)
(Picture: Deodorants offered by Park Avenue.)
Product: Hail to Freshness Deodorant section of PARK AVENUE (PA) range. Although new but has the potential to get to the top of mind and heart of the consumers.
Price: 179.00 INR for 150 ml bottle
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Place: Available at all The Raymond Shop across India. Except I.Q. all other deodorants of PARK AVENUE brand could be purchased from established retailers viz. BIG BAZAAR (PANTALOONS RETAIL INDIA LIMITED).
Promotion: Till date no promotion has been done from the side of manufacturer (J.K. Helene Curtis Limited) for its new product. This time no PR activity has been done while launching the product (I.Q.) which is resulting into this product losing out to others.
Women Deodorant:Fogg:
The deodorant mainly focuses on the use of nonarosol pumps and promoted its value for money proposition. It positioned itself as anti-perspirant deodorant.
Price: Rs. 180 for 150 ml bottle.
Promotion: Perfumed liquid which lasts for more than 800 sprays.
Spinz:The deodorant was launched in 1997 and positioned itself as a deodorant which fights order causing bacteria. It keeps you fresh and active.
Price: Rs. 170 for 150 ml bottle
Promotion: It promoted itself as a deodorant which gives or boots confidence, and keeps one fresh and cool.
Nivea:The deodorant gives 48 hour protection against bad odour and keeps under arm dry throughout the day. Nivea whitening deodorant was launched for fairer under-arms.
Price: Rs. 165-175 for 150 ml.
Promotion: It positioned itself as anti-perpirant and value for money deodorant.
Eva:Eva was launched in 2003 for teenagers and young women. The deodorant helps to restore the pH level and keeps one fresh for a long time.
Price: Rs. 120 for 125 ml pack
Promotion: It promoted itself through brand awareness campaigns, music concerts, street festivals, expos etc.
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SWOT Analysis for Beauty Segment (BU LOral, India)
Strength: Brand Differentiation Product Availability Strong R&D and Innovation Strong relevance with female products
Weakness: Not able to divest its poor brands Fake products sold under the name of their brands
Opportunities: Go Green / Eco-Friendly Tier 2 & Tier 3 Cities Growing market for beauty products
Threats: High Rivalry Indirect Competitors Products have stiff competition from big domestic players and international brands.
PERFORMANCE REVIEW
Fogg:The deodorant market has seen an explosion of products in the last few years. What Foggmanaged to do is set a new equilibrium with its unique selling proposition. But there is no denying that Fogg has cleverly managed to tap into the needs of the consumer. In a category such as deodorants, Fogg with a differentiated offering, now eventuMarket share of Fogg has grown from 1.5 to 12.5 from 2012 to 2014 making it the leader in the deodorant industry. Fogg promoted its brand as a High Value brand offering its product in both male and female division.It differentiated itself from the perception that women gets attracted to men by offering
Deodorants of low Gas content and a High value proposition.Company assures its customers around 800 sprays from its 100 gram bottle priced
value oriented brand focused on age group 15mainly of middle income group. Darshan Patel Owner, Vini cosmetics says that Fogg currently reaches 500,000 stores and the plan is to touch another 500,000 counters in the next two years. this objective in mind," Patel says.Private equity investor Sequoia Capital picked up a 9August, 2013, valuing the firm at over Rs 1,100 crore or nearly six times sale
Axe:Axe is most renowned brand of HUL in deodorant category. In 2012 it was leading the deodorant Market by a share of 14 %. Axe spends a lot of funds on advertisements and promotions through social media etc. In its advertisements it did not showcased celebrities unlike other brands for a long duration. They had to back paddle a bit from the image because Axe had gained a reputation of a product that was used only by losers. So in JuneBut the basic theme of the advertisements remained unchanged viz. Axe Effect can cast a spell on girls.
01020304050607080
Fogg Axe
2012 1.5 14
2014 12.5 6.9
Mar
ket S
hare
%
P a g e
Source: www.businessstandard.com
The deodorant market has seen an explosion of products in the last few years. What Foggmanaged to do is set a new equilibrium with its unique selling proposition. But there is no denying that Fogg has cleverly managed to tap into the needs of the consumer. In a category such as deodorants, Fogg with a differentiated offering, now eventually stands out.
has grown from 1.5 to 12.5 from 2012 to 2014 making it the leader in the industry. Fogg promoted its brand as a High Value brand offering its product in both male
f from the perception that women gets attracted to men by offering Deodorants of low Gas content and a High value proposition.Company assures its customers around 800 sprays from its 100 gram bottle priced at INR
age group 15-30 years comprising mainly of students, bachelors
Darshan Patel Owner, Vini cosmetics says that Fogg currently reaches 500,000 stores and the plan is to touch another 500,000 counters in the next two years. We raised money a few months ago with
Private equity investor Sequoia Capital picked up a 9-per-cent stake in Vini for about Rs 100 crore in August, 2013, valuing the firm at over Rs 1,100 crore or nearly six times sales.
Axe is most renowned brand of HUL in deodorant category. In 2012 it was leading the deodorant
Axe spends a lot of funds on advertisements and promotions through social media etc. In its ed celebrities unlike other brands for a long duration.
They had to back paddle a bit from the image because Axe had gained a reputation of a product that 2013, company roped in celebrity Ranbir Kapoor to break the ice.
But the basic theme of the advertisements remained unchanged viz. Axe Effect can cast a spell on
Axe Wild Stone Park Avenue
Engage Others
10.7 2 0 71.8
6.9 6.9 6.5 8.1 59.1
Deodrant Industry
P a g e 18 | 31
Source: www.businessstandard.com
The deodorant market has seen an explosion of products in the last few years. What Fogg has managed to do is set a new equilibrium with its unique selling proposition. But there is no denying that Fogg has cleverly managed to tap into the needs of the consumer. In a category such as
has grown from 1.5 to 12.5 from 2012 to 2014 making it the leader in the industry. Fogg promoted its brand as a High Value brand offering its product in both male
f from the perception that women gets attracted to men by offering
at INR 180. This 30 years comprising mainly of students, bachelors
Darshan Patel Owner, Vini cosmetics says that Fogg currently reaches 500,000 stores and the plan We raised money a few months ago with
cent stake in Vini for about Rs 100 crore in
Axe is most renowned brand of HUL in deodorant category. In 2012 it was leading the deodorant
Axe spends a lot of funds on advertisements and promotions through social media etc. In its ed celebrities unlike other brands for a long duration.
They had to back paddle a bit from the image because Axe had gained a reputation of a product that 2013, company roped in celebrity Ranbir Kapoor to break the ice.
But the basic theme of the advertisements remained unchanged viz. Axe Effect can cast a spell on
Others
71.8
59.1
P a g e 19 | 31
While Axe is among the first few brands which created the deodorant category in the country in 1999. Fogg was launched only two years back in 2013, still Axe could not retain its leadership position. In 2014, the market share of Axe fell to 6.9 % failing to hold on to the position of a leader. The major reason being that other brands came up with new and innovative ideas like High value Deodorants, no gas sprays and Couple Deodorants.
Engage:Interestingly, ITC's Engage deodorant brand, which launched a range for both men and women in April 2013, is one of the youngest brands in the category. It has managed to grab a chunky piece of the market pie. With its launch only Engage had garnered a share of about 5-6% in the Rs 2,100 crore deodorant market as of October 2013.ITC personal care's entry into the deodorants market with Engage has received an extremely encouraging response which now holds 8.1 % market share. Reason for such tremendous response for Engage is that it also focused on the women segment which holds an account of almost 31% of total market share.It leaves behind Men attracts women theme and got involved in playful chemistry of the two partners (Couple). Differentiated packaging- It brings freshness in the bottle design. Which helped the brand to attract users attention on the shelves of Retail outlets.For men, it introduced black and bold bottle and for women it introduced bottles in colours like pink, blue, yellow.From 6+ Variants in 2013 it launched 14+ variants till Dec 2014 which significantly helped the
company to compete with existing brands.
Wild stone:In 2012, Wild stone enjoyed 10.7 % of market share with its focus on 15-30 years of age group.According to Nielsen, little known company, McNROE Consumer Products, which sells the Wild Stone brand, toppled giants Hindustan Unilever and ITC in the June quarter 2014 to reach the second spot in sales.Wild Stone communicated its brand for Indian men and women who are lifestyle oriented and have passion and mystery rather than overly sexual brand.It came in mainly two variants a milder one for office goers and a stronger one for party goers.Wild stone currently has a 6.9 % market share marginally more than That HULs Axe.
Park Avenue:It is a brand which focuses on age group of 28+ and tries to build a high brand loyalty among this age group and focuses on anti-perspirant and long lasting fragrance. From 2% in 2012, Park Avenue has stepped to 6.5 % in 2014.JK Helene Curtis, part of Raymond group and the maker of Park Avenue deodorant is delighted to have gained an incremental market share in this cluttered category.This is a result of innovation in pack sizes and launch of new fragrances.
P a g e 20 | 31
SEGMENTATION, TARGETING AND POSITIONINGSegmentationThe deodorant consumers can be segmented on the basis of age or gender.
Age group Segment Trends Benefits Brands 14-17 years Influenced by parents,
peer group Curious & Explorative by nature. Lack of loyalty factor.
High Fragrance, Attraction
Axe, Set Wet, Brut, Park Avenue, Rexona, Fa, Lomani, Spinz, Fogg
18-22 years Experimenting and explorative by nature. Strivers
Anti-perspirant, Odour, Fragrance, Attraction.
Axe, Set wet, Wildstone, Fa, Adidas, Nike, Reebok, Zatak, Cinthol, Fogg
23-28 years Development of preference & brand loyalty. Willingness to try expensive brands Esteem-seeker, Striver, Utilitarian
Fragrance, Attraction, Long lasting smell, Anti-perspirant
Dove, Axe, Brut, Nivea, Playboy, Fogg
28-35 years Utilitarian, Traditionalist High brand loyalty
Fragrance, Health & Hygiene, Anti-Perspirant, Long lasting fragrance.
Old Spice, Park Avenue, Dove, Tommy
36 years & above Utilitarian May switch to other means like, perfumes to fulfil similar needs.
Health & Hygiene, Skin-care.
Tommy, Jovan, Old Spice, Dove, Nautica
Gender Segment Trends Benefits Brands Male More Influenced by
advertisements & promotional campaigns
Anti- Perspirant, Contemporary masculine fragrances such as Musk etc.
Axe, Set Wet, Playboy, Fogg, Park Avenue
Female Peer Groups influence, properties of the deodorants
Floral & Fruity fragrances, more hygiene conscious & Skin-care
Rexona, Dove, Yardley, Eva, Spinz, Nivea, Fa
TargetOur target audience would be the females of middle class and upper middle families living in metropolitan cities and tier -1 cities within the age group of 18 to 28 years. There are a number of deodorants for males but there are very few deodorants for females. This is because deodorants and antiperspirants have recently been introduced to the Indian market.
P a g e 21 | 31
For decades, the Indian market has been relying on perfumes to enhance the scent of the body. And as such, females in the country continue to use perfumes instead of deodorants and antiperspirants. Also, deodorants are used by those who are constantly outdoors, and this is dominated by males. It is only in the last few decades that there has been an increase in the number of Indian women spending ample amount of time outdoors, which is why the deodorant market for females is still in the infant stage. Primarily women going to college or working spend their time outside and would require deodorants. Some of the deodorant brands that cater to the females are Nike, Fa, Yardley, Eva, Dove, and Nivea.
PositioningStrong Enough for a Man. But Made for a Woman The positioning statement focusses on a deodorant which is for women and has a strong fragrance. Currently the industry lacks such deodorants for women while there is an increasing demand of the same. Most important attribute of a deodorant as perceived by the people:
Long-Lasting Antiperspirant Value for Money Strong Fragrance Brand Value Promotion Freshness Packing
Our product would focus on these factors, to cater to the teenagers as well as the young working women. Also, we have focused primarily on only these factors, to provide an added benefit of the perfumes by offering different variants for different occasions. We would position it as a fashionable, stylish and an impactful deodorant.
Points of Parity Points of Differentiation Pleasant Fragrance Strong Fragrance Long Lasting Skin Friendly Easy to Carry Packaging Freshness No Patches on Clothes Aluminium Free
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Perceptual Map for Womens Deodorant
OBJECTIVES
Total deodorant market has been valued at INR 2500 Crores for the F.Y. 2014-15o (Source www.Business-standard.com)
Total women deodorant industry is 30%o (Source- www.mbarendezvous.com)
Assumption for the growth rate of the industry is 25%o (Source www.mbarendezvous.com)
Based on the available data,Total Women deodorant industry for F.Y. 2014-15 is INR 750 crores
Our objective is to gain a market share of 9% in the women deodorant industry in F.Y. 2015.16 Total deodorant Market INR 3,125 Crores Women Deodorant Market - 937 Crores Sales Objective 84.3 Crores Average selling price of one Deodorant INR 150 Total Sales volume(Units)- 5,625,000
P a g e 23 | 31
MARKETING STRATEGY
For a Strong Independent women, Sapphire a premium deodorant that not only boosts her confidence but also complements her attitude with long lasting fragrance.
The positioning statement focusses on a deodorant which gives a premium long lasting fragrance to a modern independent woman. Currently the industry lacks deodorants for active women while there is an increasing demand of the same.
Most important attribute of a deodorant as perceived by the people:Long-Lasting Antiperspirant Value for Money Strong Fragrance Brand Value Promotion Freshness Packing
Our product would focus on these factors, to cater to the teenagers as well as the young working women. Also, we have focused primarily on only these factors, to provide an added benefit of the perfumes by offering different variants for different occasions. We would position it as a fashionable, stylish and an impactful deodorant.
Points of Parity Points of Differentiation Pleasant Fragrance Strong Fragrance Long Lasting Skin Friendly Easy to Carry Packaging Freshness No Patches on Clothes Aluminium Free
Marketing Strategies:
Since our target segment is females of middle class and upper middle families living in metropolitan cities and tier -1 cities within the age group of 18 to 28 years, in order to develop the marketing strategies, we have to list out their preferences, their lifestyle, where they spend their time, etc.
Mostly, women of age group 18-28 in metropolitans and tier 1 cities spend their time at following places
College/Institutes (If students) or Office (If Working professionals) Internet
o E-commerce siteso Facebook, Twitter and other Social Networking Siteso YouTube
Malls/Supermarkets TV/Radio Movies Parties Cafes (Food/Snacks/Coffee)
P a g e 24 | 31
We can make strategies to attract more women to use our product by exposing them to our product at these places. We can adopt the following Marketing Strategies
Colleges/Malls We can organize events dedicated to girls, couples, or with girls along with their friends in the Colleges and Malls under the umbrella of Sapphire, where we can make them aware of the product.
Facebook/Twitter/Other Social Media Create a webpage and Hashtag dedicated to the product, Start Debates and discussions on these webpage on women related topics on the webpage such as status of women in society, Women perception of deodorants, Gender equality, etc
Events Organize events related to women under the umbrella of Sapphire, Promote the event through TV, Radio and other media to indirectly promote the brand. (Example Sapphire Beach Party)
Parties Organize parties with celebrities under the umbrella of Sapphire and promote these parties as described in Events. (Example Sapphire Star Night with Ranbir Kapoor)
YouTube Video Ads, Sponsorship and partnership with YouTube channels like Bollywood review, etc.
LOral Beauty salon coupons We plan to provide a hidden code on every pack of our Deodorant Sapphire. The customer needs to message this code to our customer contact number which will automatically send a Coupon voucher code to the customer. This coupon can be redeemed on LOral Salon & would be worth 5% of total bill value or INR 500 whichever is least. This will not only be a promotion tool for our deodorant but will also increase our Footfall of LOral Salons.
ACTION PLANSProduct StrategyThe product is a brand extension in the already existing wide range of products of LOREAL. Sapphire, the highly successful brand of deodorants in countries like USA, Mexico and Canada is now being launched in India. The fragrances being launched in India are the ones that are the bestsellers in USA, Mexico and Canada. Sales of the three fragrances are expected to be equally distributed.
Sizes 275 ml
150 ml
Variants 3 Different FragrancesParis Romantic RoseHawaii Citrus BreezeBrazil Rainforest Mist
Benefits Strong Fragrance, Lasts All Day, Skin Friendly, No Patches on Clothes
Packaging Attractive design, Curvy Bottle
P a g e 25 | 31
Pricing StrategyThe product will be priced on the basis of competitive pricing.
Womens Brands Size Price RemarksEngage Women 165 ml 165 Value for money
Nivea Women 50 ml 165 Niche , relatively expensive
Fogg Women 120 ml 180 Provides More usage per Bottle
Spinz Women 150 ml 170 Moderate price.
LOREAL Women(Sapphire)
75 ml 120Premium Product
150 ml 189
Distribution StrategyThe FMCG Distribution network is a very wide spread network with about 12-15 million retail outlets across nation. A city like Delhi will have approximately 1 million retail outlets which have LOREAL products. These outlets are primarily catered through distributors and few directly through stockists.
The distribution network of LOREAL for its Beauty Care Products in India follows the below mentioned distribution channel.
LOREAL already has a well-established distribution channel for the beauty care products of the company and also has a strong brand name, so the same channel can be used for distributing the new product, Sapphire.
LOREAL Manufacturing
Stockist
Distributor
Retailer
Customer
P a g e 26 | 31
The existing distribution channel of LOREAL personal care products which can be used for deodorant brand of LOREAL which caters to the audience with same socio-economic background as the target segment of the new product under consideration, Sapphire. The only difference being that the new product under consideration targets women.
The new product, Sapphire can be made available in all those stores or retail outlets wherever LOREAL personal care products is available and thus in distribution channel i.e. stockists, distributors, and retailers no new additions will be required.
Following the norm of Beauty Care SBU of LOREAL, the following margins will be provided
Retailer Margin 15%Distributor Margin 6%Stockist Margin 1.5%
Initially push strategy will be used for the distribution of the deodorant. Provision of additional benefits like credit sales, bulk discounts will help in the same. After that a mix of push & pull strategy will be used. For retailers Quantity based purchase schemes, price reduction schemes and target based rewarding systems can also be used at a later stage.
Promotion StrategyA well thought of Promotion Strategy is required to create awareness about the brand in an already highly contested market. The promotion strategy will focus on 360 degree branding effort using print media, digital media, TV advertisements, direct marketing & PR.
For the new product under consideration, Sapphire, it is planned to spend Rs. 10cr in total on promotional activities.
Digital media online is gaining more and more popularity with increasing internet penetration levels across India especially in the metropolitan cities. The target segment which includes women from metropolitan cities also have access to the internet and thus this channel can prove to be an effective medium.
Promotion on the digital media and social networking sites like Facebook will include product pages which will post digital content and videos which will also be uploaded on YouTube. This will help in achieving more awareness within a short span of time.
Despite of increase in popularity of Digital Online Media, Print Media still has the highestreach, and the company will use it extensively to promote the product. Along with TVadvertisements will also be aired but not very frequently due to constraint of budget.
LOREAL will also use direct marketing, PR & word of mouth to create a buzz during thelaunch of the product.
Launch of the Product
As the potential users are in the age group of 18-28, promotion of the product in collegefestivals as well as shopping malls can be undertaken.
Initially the product will be launched in the 6 metro cities of India, thus for print media only the supplementary sections of leading English dailies will be used.
Videos will be uploaded on Facebook and YouTube regarding the product launch which willbe connected to the Facebook page.
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Promotional Cost
LOREAL will spend about Rs. 10cr in promotional activities to gain market share and make its presence felt in the market.
ModeBudget
(Rs. Lakhs) % Remarks
TV Advertisements 250 25Rs.75000 to Rs.80000 per 10 second (for FMCG companies like HUL, LOREAL)Number of advertisements = 330 (approx.)
Magazines 145 14.5 Womens Era, Filmfare, Femina, VogueNewspapers 120 12 Supplement Section like HT CityEvents and coupons 110 11 Rs.30,000 per event and rest for coupons
Online and Direct Ads 375 37.5
Online marketing campaigns through Facebook, twitter, yahoo etc.Word of mouth marketing and direct publicity drives like providing testers in malls as well as marketing campaigns.Sponsoring festivals such as youth festivals, music shows etc.
Total 1000 100
Sales force strategyLOral is one of the leading Beauty Company operating in India. Sales force strategy is based on Sales Growth. The sales force used by LOral for their other beauty products, would be compatible and sufficient for our product to create awareness and increase the sales.
The market targeted by other LOral products and our product (Sapphire) have same socio-economic background and demographic.
Not much training would be required to sell the new product, only the value offered by our product need to be told to the sales force.
Consumers need a little encouragement to buy the new deodorant, the sales force already has an experience to sell a personal care products in this market and is quite familiar with it so the sales force would be able to do the needful.
Based on sales, future growth potential and Efficiency of existing sales force, they should define the size of sales force required in each of the defined territories.
Since market potential is more in metro cities, so company is launching its product in six cities i.e. Delhi, Mumbai, Bengaluru, Kolkata, Hyderabad and Chennai.
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PROFIT AND LOSS STATEMENTThe following points have been considered for preparing the P&L Account: The Deodorant market in India is Rs.3195 crore. Our target market is female category which
stood at Rs.937 Crore in 2015. Therefore, it is expected that a new product launched in this category by LOral will go on to demand approximately 8.9% market share in the first year.
As per industry analysis, our CAGR is expected to be around 30% (as mentioned above)
The margin for various intermediaries are:o Distribution Margin 6%o Retailers Margin 15%o Stockiest Margin 1.5%
Therefore, gross revenue for LOREAL will be Total Sales at MRP less margin for various intermediaries.
Calculation of Revenue from Operations (Gross)For the year ended in
march 31, 2016For the year ended
march 31, 2017For the year ended
march 31, 2018
` In Lakhs ` In Lakhs ` In Lakhs
Total Sales at MRP
8430.00 10321.00 12437.00
Less: Margin for various intermediaries
2107.5 2580.80 3109.25
Revenue from Operations (Gross)
6322.5 7740.2 9363.7
Profit and Loss AccountFor the year ended June
31, 2016For the year ended June
31, 2017For the year ended June
31, 2018` In Lakhs ` In Lakhs ` In Lakhs
INCOMERevenue from Operations (Gross) 6322.5 7740.2 9363.7
Less: Excise Duty 843.00 1020.00 1242.36Revenue from Operations (Net) 5479.5 6720.2 8121.34
EXPENSESCost of Raw Material & Manufacturing 2893.18 3548.27 4288.06
Promotional Expenses 1000.00 1000.00 1000.00
Sales and Distribution Cost 980 1225 1531.25
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Administrative and Other Expenses 787 1023.1 1100.8
Total Expenses 5660.18 6796.37 7920.11
Operating Profit before Tax, Interest and Depreciation -180.68 -76.17 201.23
Working Notes:1. The excise duty levied is 12%.2. Cost of raw material and manufacturing is 66% of 80% (20% is profit) of gross revenue.
It includes material, processing charges, power and fuel and stock-in trade.(As calculated from the annual report of LOREAL India for the Year 2012-13)
3. Promotional expenses considered are Rs. 10cr for next three years.4. Cost of Sales and Distribution is 15.5% of Gross revenue.
It includes conveyance expenses, freight and warehousing expense, distributor coverage expense, travelling expense and trade incentives.
5. Administrative and other misc. expenses is 12% of gross revenue.(As calculated from the annual report of LOREAL India for the Year 2012-13)
6. In the first year, the percentage of deodorants for Female category is 31%. For second year it is 32% and for the third year it is 35%.
7. The projected market share for first year is 8.8%, for second year it is 9.1% and for third year it is 11%.
8. Hence, we get the sales at MRP forFirst year Rs. 8430 LakhsSecond year Rs. 10321 LakhsThird year Rs. 12437 Lakhs
Profit Percentage before Tax, Interest and Depreciation are as follows:
For the year ended march 31, 2016
For the year ended march 31, 2017
For the year ended march 31, 2018
Profit as % of sales
-3.3% -2.1% 2.5%
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MONITORING AND CONTROL The sales volume and market share should be constantly monitored. It should be monitored if the customers perceive our product in the same way as it was
positioned or differently. The impact of advertisements from different mediums should be monitored by conducting
surveys at the point of purchase and asking relevant questions. The reach can also be monitored by conducting random surveys in market places asking people if they have heard about the campaigns or not.
Adequacy of sales force can be monitored by taking feedback from retailers and distributors on different aspects like shortages or delays in ordering and delivering.
It is of utmost importance to monitor whether the product is delivering the benefits proposed. In case the product is not standing up to its requisites then the image of the brand will decline at a very fast pace. This can again be monitored by getting surveys filled.
Long term gains from the product will depend on the ability of the product to retain its customers. It becomes important to find out if the customer who has purchased the product once makes a repurchase or not. This is easy to monitor in modern retail outlets but difficult in traditional retail outlets.
Contingency PlanIf the above mentioned plan is not successful then company should conduct surveys to find out the weak areas of the strategy.
LOral can adjust the product's price in response to a competitor's price by keeping it lower than usual competitors for successful entry into the market.
LOral can offer discounts like buy two bottles of Sapphire and get one free to attract more customer.
Find out the most effective promotion channel which increases the visibility of the product and shift focus to those channels.
If the existing promotional campaign is ineffective in connecting with the customers, improve the campaign.
If the existing sales force is inadequate, try to increase or decrease as per requirement for increasing efficiency.
