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A STUDY ON THE AYURVEDIC HAIR OIL MARKET IN KERALA WITH
SPECIAL REFERENCE TO HERBS & BERRIES HAIR OIL
Summer Internship Report
Submitted To
AMRITA VISHWA VIDYAPEETHAM
In partial fulfilment of the requirements for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY
ASWIN RADHAKRISHNAN
AM.BU.P2MBA14015
UNDER THE GUIDENCE OF
Prof. SOFI DINESH
2
DECLARATION
I, Aswin Radhakrishnan, a second year student of Amrita School of Business
(Amritapuri), Amrita Vishwa Vidyapeetham, hereby declare that the project
titled, “A study on the Ayurvedic Hair Oil market in Kerala with special reference
to Herbs & Berries Hair Oil” at HLL Lifecare Limited, Poojappura, Trivandrum has
been done by me under the guidance of Mr. Sajeev T, Deputy Manager
(Logistics), HLL Lifecare Limited and Prof. Sofi Dinesh, Amrita School of Business.
This project is done as part of academic curriculum of MBA program (20142016),
Amrita School of Business. I also declare that this project has not been
submitted, fully or partially for the award of any other degree, diploma, title or
recognition earlier.
Aswin Radhakrishnan
Date:
3
ACKNOWLEDGEMENT
I thank God The Almighty, for all His blessings and for helping me reach my
goals one by one.
My warm regards and thanks to faculty guide Professor Sofi Dinesh who guided
me throughout this project from college side with timely reminders and for
aiding me to be on track and complete the project on time.
I crossed through numerous leaps and bounds before finishing this project for
HLL Lifecare Limited. I worked happily with the great internal and external
support of all to complete this project. I extend my heartfelt thanks to Shri Vinod
.G. Pillai, Associate Vice-President (CTD & SD) for granting me the opportunity
to do my internship with HLL Lifecare, for his blessings and for allotting me a very
helpful company mentor. My special thanks to company mentor Mr. Sajeev T,
who advised me on every aspect related to the project by giving clarification,
spending time to explain things patiently and providing me with valuable
information. I thank my mom who took good care of me and assisted me in my
work. Completion of this task is not the lonely effort of me but also includes
many people from outside such as my friends, my mother’s colleagues and so
on. Last but not the least, I thank my close friend Sreeraj Jayaraj and his father
Mr. Jayaraj for being there for me during the course of this project.
I extent this opportunity to thank each and every one of them.
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CONTENTS
INTRODUCTION
5
HAIR OIL INDUSTRY
6-10
COMPANY PROFILE
11-18
ABOUT HERBS & BERRIES
19
RESEARCH OBJECTIVES
20
SCOPE OF STUDY
20
RESEARCH METHODOLOGY
21
PRIMARY DATA ANALYSIS
22-37
LIMITATIONS
38
CONCLUSION
39-40
SUGGESTIONS
41-42
BIBLIOGRAPHY
43-44
QUESTIONNAIRE
45-47
5
INTRODUCTION
Marketing research is the systematic and objective identification, collection,
analysis, dissemination and use of data for the purpose of assisting management
in decision making related to the identification and solution of problems in
marketing.
The Project has been prepared aiming at a study on the Ayurvedic Oil market in
Kerala, and to know where does Herbs & Berries Hair Oil stand among other hair
oil brands.
This project report is based on the survey conducted to track the brand
perception and attitude of Ayurvedic hair oil buyers in Kerala. The sample size
for this market research was a total of 1500 (500 each from Trivandrum,
Ernakulam and Calicut) taken randomly, including various age group, income
and profession.
To understand and analyse the marketing mix for leading brands of Ayurvedic
hair oils, I conducted a marketing research with the help of the primary data
collected.
During the study I met with different customers from different parts of Kerala
and got questionnaires filled by them and collected data for the marketing
research to study various parameters and analysed it
6
INDIAN HAIR OIL INDUSTRY
Unlike shampoos or hair colours, which are products relatively new to the Indian
psyche, the usage of hair oil is a deeply ingrained habit with Indian consumers.
Therefore, this is one product where the major players do not have to fight
either monetary or psychological barriers to usage. Hair oiling is an age-old
traditional habit of Indians. Hair oil is perceived to provide benefits of
nourishment, strengthening hair, faster and better growth and reducing the
problem of falling hair. Some consumers perceive that massaging hair oil has a
cooling impact on the head. It also has a cosmetic appeal in terms of hair styling,
as hair remain straight, soft and shining after applying oil. Coconut oil is very
popular in the south. In north people use coconut oil as well as some other oil
such as rapeseed, sesame, etc. Hair oil is primarily used as a prewash nourisher.
Some people also use hair oil after bath as a conditioner. The major positioning
platforms for hair oil are purity, hair nourishing and more recently, non- greasy
look. Coconut oil and perfumed oil accounts for about 65% and 35% of market
in volume terms.
Hair oils are composed of oils of vegetable origin as a base blended with small
quantities of perfumes. Vegetable oils commonly used are coconut oil, castor oil
and sesame oil. Hair oils are also coloured with a view to characterizing different
brands and also rendering appeal. Being an item of mass consumption and in
view of essentially simple nature of operations, a hair oil unit is an attractive
project proposition for budding entrepreneurs. Ayurvedic hair oil consists of
herbal extracts in hair oil base, like bringaraj, amala brahmi hair oil etc.While
hair oils are used both by the male and female population, its uses amongst
females is comparatively more than with males. It may be conservatively
assumed that about 80% of the female and 50% of the male population would
use hair oils regularly
7
Consumer Awareness and Penetration
Hair oil is an everyday habit with about 50% of the population. Hair oiling, a
peculiarly Indian habit, is extremely popular in urban as well as rural India.
Penetration of hair oil is 87% at all India level and is almost evenly distributed in
urban and rural areas. While penetration in urban areas is marginally higher at
90.2%, the same closely follows at 85.8% in rural areas. In urban areas,
penetration is higher in small towns (0.1-0.5m population) at 91.8% compared
to medium and large town where it is 89.5-89.9%.Awareness about hair oil is
over 90% in rural as well as urban areas.
Market size
The hair oil market is currently estimated at INR 45 billion, 48 %( Rs.3204 crore)
of which is coconut oil market. The market has been growing at around 3-4% in
volume terms and 6-7%pa in value terms. Market growth, although significantly
lower than the shampoo market, is impressive, as penetration is already high. In
fact, this growth rate has been maintained with strong marketing aggression by
leading players in the segment.
Growth
There are several consumers who use coconut oil in cooking (especially in the
south), and conversely other edible oil classified as cooking medium (for e.g.
castor oil) is used for hair care also. Therefore, the actual size of the oil market
should be larger than what is estimated on the basis of branded hair oils. The
current rate of growth of hair oil by value is 20% and current rate of growth by
volume is 12.5%. During the last few years, several product variants, such as non-
sticky hair oil, value added hair oil, etc. have become very popular. These
variants are growing at a much faster pace, compared to the pure coconut hair
oil segment.
8
Hair Oil Categories
There are three main categories of hair oil in India:
The Light Hair Oil segment has experienced significant growth in recent years as
consumers opt for lighter, more modern hair oil products. The light hair oil
segment recorded sales of Rs.6,828 million in 2009 according to the Nielsen
Retail Audit Report. Light hair oil is an urban dominated segment primarily due
to its comparatively high cost & is more geographically concentrated, in the
northern states of Punjab, Delhi, Uttar Pradesh and Rajasthan, due to higher
disposable incomes and the propensity of consumers to try new products. The
northern regions accounted for approximately 52% of sales volumes and grew
by 10% (volume growth) in FY 2009-10 according to the Nielsen Retail Audit
Report.
9
The Heavy Amla Hair Oil segment has seen strong growth in recent years. The
heavy amla hair oil market is primarily an urban driven market and tends to be
geographically concentrated in the northern parts of the country. The heavy
amla hair oil segment recorded sales of Rs.7, 370 million in FY 2009-10,
representing a growth rate of 4.7% from FY 2008-09, according to the Nielsen
Retail Audit Report.
Cooling Oils have emerged as an important segment in the Indian hair oil
market. Cooling oils are hair oils meant for cooling the scalp during the harsh
summer months. The ingredients in the cooling oils cause immediate relief by
cooling the scalp. The CAGR of the category has been 20% over the last 5 years.
The cooling oil category is now nearly Rs. 7,000 million in the financial year
ended March 31, 2010.
MAJOR HAIR OIL MANUFACTURERS IN INDIA
MARICO - is a leading FMCG Indian Manufacturer providing consumer products
and services in the areas of Health and Beauty. During 2009-10, the company
generated a Turnover of about Rs.26.6 billion, in respect of its food, hair care
and skin care related activities. The organisation holds a number of brands viz.
Parachute, Saffola, Sweekar, Hair&Care, Nihar, Shanti, Mediker, Revive, Manjal,
Kaya Skin Clinic, Aromatic, Fiancee, HairCode, Caivil, Code 10 and Black Chic. The
major brands of Marico holding significant market share are Parachute and
Saffola. Parachute is essentially coconut oil. The other sub brands of Parachute
are Nihar, Uttam and Oil of Malabar which are also coconut oils. It established a
plant at Kanjikode, Palghat to manufacture ‘Parachute Coconut Oil’. It also
manufactures hair care products such as Coconut Oil, Hair Oils & Anti Lice
Treatment solution, which are marketed under the brand names of Parachute,
Hair and Care & Oil of Malabar. Among all the products offered by Marico, the
most popular item is perhaps ‘Parachute coconut oil’. This unique product is
manufactured from high grade coconuts and helps users in all their hair related
ailments.
BAJAJ Corp. – Bajaj Corp Ltd is one of India’s leading FMCG Company with major
brands in Hair care category. It is one of the oldest business houses of the
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country. Bajaj Corp Ltd is part of Shishir Bajaj Group of companies. Brahmi Amla
Hair oil is one of the brands with longest heritage in India from the house of Bajaj
and has been a leading player in the Amla market for over 75 years. A hugely
trusted brand with a very loyal consumer base, today it is among the top 3
brands in its category. Over the years, Bajaj Brahmi Amla has withstood severe
competition but managed to retain its ground due to its superior quality. The
different hair oil products that the company offers are Almond drops, Brahmi
Amla, Amla Shikakai & Jasmine hair oil.
DABUR INDIA LIMITED – has marked its presence with significant achievements
and today commands a market leadership status. Dabur Amla Hair Oil is India’s
trusted hair oil. It contains the natural goodness of Amla (Indian gooseberry).
Dabur Amla Hair Oil is today the largest hair oil brand in the country with over
35 million consumers. Aster hair oil brands are Dabur- Ayurvedic healthcare
products & Vatika – Premium hair care.
EMAMI LTD. – the flagship company of the Group, is a Rs 1100 crore business
entity, a leading player in the personal and healthcare consumer products
industry in India engaged in manufacturing and marketing of health, beauty and
personal care products that are based entirely on ayurvedic formulation. Emami
Limited has over 30 brands under its portfolio. By repeatedly outperforming the
industry standard, Emami Ltd has maintained a CAGR of 27% over the last few
years. Himani Navratna hair oil is one of the flagship brands of Emami Ltd.
Navratna oil is among the top selling brands in India. Its traditional ayurvedic
formulation along with the cooling sensation has multiple benefits of providing
relief from hair related problems. It is the most trusted brand in the cool oil
category. It commands a holding of 50% of market share of the cool oil market.
It has a monopoly in the southern states with a market share of 98 %.
11
COMPANY PROFILE
Introduction to HLL As a condom-manufacturing company, HLL Lifecare started small, but dreamed
big. That dream changed lives in ways unimaginable. Soon, HLL became the
goto brand for various contraceptives. It was only a matter of time before
diversification followed, bettering the brand with healthcare products and
services. After more than 30 years of consistent quality performance, HLL
Lifecare now takes on an even bigger responsibility – the vaccine security of
the nation. No wonder then, at HLL work is about ‘innovating for healthy
generations’, every day.
Our Vision
Our vision is to become a INR 10,000 crore global healthcare company by 2020.
Our Purpose
The very purpose of business at HLL is to provide high-quality products and
services at affordable prices.
Our Values
HLL has a Value Charter – TTT– Trust, Transparency and Teamwork. It
symbolises the philosophy of HLL ; its reason for existence, values and
principles it follows in its daily activities. It also provides a common direction
for all employees of HLL; the way to conduct in personal and professional life.
Trust
• We shall practice what we profess and thereby build trust among
ourselves and all our stakeholders.
• We believe that trust creates an atmosphere of mutual respect and
support.
• We shall never compromise doing the right things at the right time
consistently.
Transparency We shall exhibit honesty and accountability in all
our activities.
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• We shall encourage active participation of all stakeholders in our
decision-making process.
• We shall practice Equity, Fairness and Justice at work.
Teamwork
• We believe that excellent outcomes can be achieved only through
teamwork.
• We shall build teams committed to company goals.
• We shall foster friendliness, camaraderie and selflessness.
HLL Lifecare Ltd. has adopted a Code of Business Conduct & Ethics for Board
Members and Senior Management, Enterprise-wide Risk Management Policy
and has constituted a qualified and independent Audit Committee of the Board
of Directors. It also has a formal statement of Board Charter that sets out the
role, structure, responsibilities and operation of the Board of HLL and its
delegation of authority.
Employees
The competence and commitment of the employees, sustained for over
decades, have made HLL a fast growing global entity. This is reflected in the
energy of more than 2700 employees. HLL provides demanding and
challenging opportunities to each employee. Through appropriate training and
mentoring programmes, business plan meets and regular communication,
employees are made to align to the organisation’s culture, vision and purpose.
A Global Perspective
With the changing socio-political climate, global health programmes are
constantly seeking diverse solutions in the areas of medicine and healthcare.
HLL provides the perfect answer to many questions that the world faces in
healthcare, thanks to its extensive experience, innovative technologies and
ample resources which today reach over 115 countries spanning the seven
continents. Its consultancy services and products are part of the global
healthcare packages of international agencies such as UNPFA, UNOPS, UNHCR,
WHO, PSI and IDA.
Origin & History Long ago, in 1966, a quiet revolution took place in Trivandrum, also known as
Thiruvananthapuram, a small picturesque town located in the south-western
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part of India. The revolution, called HLL, swept through the length and breadth
of the country. It reigned in the alarming population growth and enhanced the
quality of life of families in India. A revolution that eventually sparked off many
a movement and idea, it brought quality healthcare and prosperity to the
doorstep of millions.
The revolution resulted in creating a healthier India, with a record of 189
million couple year protections (CYPs*) during the past four decades.
We call it the Pink Revolution. The revolution, which today, has reached every
corner of the country as well as many parts of the world, addressing public
health challenges and bringing good health and happiness in its wake.
HLL’s first plant began operations on April 5, 1969 at Peroorkada in
Thiruvananthapuram district of Kerala. The plant was established in technical
collaboration with M/s Okamoto Industries Inc. Japan.
Today, seven manufacturing plants later, HLL has grown into a multi-product, multi-unit organisation addressing various public health challenges facing humanity. In 2003, when HLL had a turnover of a mere INR 163 crores, it had set its sights on becoming a INR 1000 crore company by 2010. HLL not only surpassed this figure by 2010 but also drew a clear road map to achieve tenfold growth by 2020. Now, HLL is a Mini Ratna, upgraded as a Schedule B Central Public Sector Enterprise. The company received the Prime Minister Award for being the best public sector enterprise in India. It is also the only company in the world which manufactures and markets such a wide range of contraceptives. Today, HLL produces 1.316 billion condoms annually, making it one of the world’s leading condom manufacturers, accounting for nearly 10 percent of the global production capacity.
Over the years each of the initiatives taken up by HLL have been aimed at
providing quality healthcare to every family. HLL’s ssociate institutions,
Hindustan Latex Family Planning Promotion Trust (HLFPPT) and LifeSpring
Hospitals, have ensured this to the nation’s underserved and vulnerable
populace, at an affordable cost.
With a vast array of innovative products, services and social programmes to
meet the country’s healthcare needs, HLL Lifecare Limited is firmly on track,
with its motto of 'Innovating for Healthy Generations'.
14
HLL continues to make its mark by setting new goals and taking on challenges
others often view as impossible.
Production facilities :
1. Peroorkada Factory, Trivandrum ( PFT )
2. Akkulam Factory, Trivandrum ( AFT)
3. Kanagala Factory, Belgaum( KFB )
4. Kakkanad Factory, Cochin( KFC )
5. Manesar Factory, Gurgaon( MFG )
6. Pharma Factory, Indore (PFI)
7. Irapuram Factory, Cochin (IFC)
Products HLL has an exhaustive assortment of products, from the popular brand of
condoms ‘MOODS’ to the company’s natural products ‘Herbs &Berries’, an
Ayurvedic products range. Right through its journey from manufacturing
contraceptives, many products have continued to take shape at HLL. These
include re-hydration salts, blood transfusion equipment and wound care
products, blood banking equipment, neo-natal care equipment and, surgical
and healthcare products. Each category caters to a different segment of
society, helping HLL make life a better experience.
Business Divisions Marketing
HLL’s large marketing network has been delighting its customers over the last
two decades. Servicing 200000 retail outlets, covering 3500 hospitals, reaching
over 30000 medical professionals, it has over 2800 stock points, 700 frontline
team members placed in every town, with offices in all metros and mini
metros, and reaches over 400000 villages in India. HLL is also one of the
leading social marketing organisations in the country in the area of
contraceptives - with a market share of over 70 percent in the rural and
semiurban markets. On the global front, HLL brands today reach more than
115 countries.
With two decades of dedicated efforts in brand building and market
development, HLL has developed a sound marketing infrastructure and
15
introduced an extensive range of its contraceptive, hospital and healthcare
products in the domestic and global markets.
Consumer Business Division (CBD)
CBD product mix includes a range of world-class products reaching its
customers through a network of 5000 stockists and over 500,000 retail outlets,
comparable to any of the leading FMCG companies in India. HLL is also one of
the largest Social Marketing Organisations (SMO) for the Ministry of Health
and Family Welfare (MoHFW), ensuring sales of over 70 percent of the
Government of India brands - Deluxe Nirodh and Mala-D nationally, and FC2 -
nitrile female condoms, to the vulnerable and high-risk groups of women,
under the programme initiated by National Aids Control Organisation (NACO).
HiCARE Division (HCD)
HiCARE Division offers a wide range of critical hospital products and services to
healthcare professionals in the field of transfusion services and advanced
patient care. The product range includes Blood Collection Bags, Surgical
Sutures, Hydrocephalus Shunts, Tissue Expanders, Surgical and Examination
Gloves, Blood Transfusion Sets, Intravenous Sets and Blood Banking
equipment. HCD has a strong team servicing over 20000 medical professionals
directly as well as reaching to over 3500 hospitals in India.
Women’s Healthcare Division (WHD)
WHD offers a whole range of women’s healthcare products with a promise to
provide total healthcare for women of all ages addressing their social, mental
and physical well-being. WHD’s product basket includes - Contraceptives,
Ovulation Inducers, Antiemetics, Menstrual Cycle Regulators, Antifibrinolytics,
MTP Pills, Pregnancy Test Kits, Natural Products and Vaccines. It has a strong
distribution network, reaching out to over 13000 gynaecologists across India.
Our flagship brand Novex-DS is being promoted for the long-term management
of Dysfunctional Uterine Bleeding (DUB) which, as a novel non-steroidal drug,
has gained acceptance among gynaecologists. A post-marketing surveillance
study is being conducted at multiple centres across the country to make it into
a INR.2.23 crore brand during the financial year 2010-11.
HLL has also entered in to a tie-up with Arya Vaidya Sala Kottakal, a renowned
company in the field of Ayurveda, and through their association launched an
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innovative product for the secretion of milk in lactating mothers at All India
Congress of Obstetrics and Gynaecology (AICOG) conference at Jaipur in
Januray 2009. A range of ayurvedic products for the health of women are in
the pipeline.
International Business Division (IBD)
HLL is aiming to be a global leader in the area of contraceptives and healthcare
products. The IBD manages the distribution of HLL's products to over 115
countries. HLL has also made inroads into Peru in South America for its
Nonsteroidal Contraceptive Pill marketed under the brand name Ivy femme.
HLL supplies its products to world bodies such as the UNFPA, PSI, Mission
Pharma, IPPF and IDA, in addition to various governmental procurement
organizations.
Government Business Division (GBD)
The Government Business Division (GBD) partners with the Union and State
Governments in India for their requirements of contraceptives and hospital
products under the National Family Welfare Programme (NFWP) and the
National Rural Health Mission (NRHM).
Vending Business Division (VBD)
In order to provide any-time access for condoms, HLL took the lead to install
Condom Vending Machines (CVM) in public places such as toilets, bars, parks,
cinema halls - particularly at places frequented by high-risk groups. HLL has
installed over 24000 CVMs across India with funding assistance from National
Aids Control Organisation (NACO), Government of India and also sold a wide
range of vending machines to public and private corporates.
Services A parallel world of services exists under HLL Lifecare apart from its products.
These services include Infrastructure Development, Healthcare Services and
Procurement & Consultancy Services. Infrastructure development service
offered by Infrastructure Development Division specialises in healthcare
infrastructure and facility management while Healthcare Services division
offers outsourcing partnerships to partnering institutions in the areas of
diagnostic services, pharmacy and other specialist services. Procurement and
17
Consultancy Division which provides procurement and consultancy services is
in charge of acquiring drugs, chemicals, medical equipment and other health
sector goods for its service-users. Procurement and Consultancy Division also
procures goods for central government agencies and several medical colleges
in India on behalf of the Ministry of Health and Family Welfare.
Service Divisions Infrastructure Development Division
Infrastructure Development Division of HLL is premier consultancy division for
development of medical and allied infrastructure facilities. Infrastructure
Development Division provides services in design, engineering and execution
of construction projects. Clients include Government of India, state
governments, government departments, public sector undertakings and
corporations such as Employees’ State Insurance Corporation of India (ESIC),
National Rural Health Mission (NRHM), Kerala Social Welfare department and
autonomous bodies such as Malabar Cancer Centre, Jawaharlal Institute of
Postgraduate Medical Education & Research (JIPMER) etc.
Healthcare Services Division
The changing attitudes towards healthcare and growing lifestyle diseases are
increasing the need for reliable, affordable and quality healthcare services. The
whole purpose HLL’s Healthcare Services Division came into existence is ‘to
provide affordable and reliable solutions for quality Healthcare’.
Procurement and Consultancy Division
The Procurement and Consultancy Division of HLL is designated as a National
Procurement Support Agency (NPSA). It is an ISO 9001 certified division of HLL.
Procurement and Consultancy Division with its highly qualified and
experienced team of professionals is fully competent to undertake various
consultancy assignments such as bid process management, procurement of
goods and stores including medical equipment, drugs and pharmaceuticals,
computer hardware, application and systems software, design and
construction of hospitals/ factories, project planning and monitoring.
18
Our Partners
In its search for becoming a truly world-class provider of healthcare products
and services, HLL has been seeking to adapt knowledge from its partners.
HLL has over the years been networking with various corporate
organizations, development agencies and NGOs by combining strengths and
capabilities of several world leaders. Some of them are listed below:
Okamoto Industries Inc. for male condoms.
• Female Health Company (FHC) for manufacture of Female Condoms and
its promotion.
• Finishing Enterprises, USA for Copper T IUD.
• Helm, Germany for distribution of DMPA (Depot Medroxyprogesterone
Acetate) in India.
• Arya Vaidya Sala (AVS), Kottakkal, Kerala, for Natural Ayurvedic products.
• Bharat Biotech International Ltd., Hyderabad for Hepatitis B and Typhoid
Vaccines.
• Chengdu Institute of Biological Products, China for supply of JE Vaccines
to Government of India.
• Cheng Da Biotechnology (CDBIO), China for marketing of Human
AntiRabies Vaccine in India.
• Cycle Technologies Inc., USA for manufacture and distribution of Cycle
Beads in India and abroad.
• More than 300 NGOs for implementing population stabilisation and
HIV/AIDS prevention and control programmes.
19
ABOUT HERBS & BERRIES OIL
H&B Nourishing Hair Oil combines the effectiveness of eight Ayurvedic ingredients in a coconut oil base for the daily nourishment of the hair follicles. b. H&B Anti-Dandruff Hair Oil uses the anti inflammatory and anti-dandruff properties of 4 essential herbs to prevent the inflammation of the scalp and to remove dandruff. Both the variants of hair oils are available in 100 ml bottles.
Ayurveda, the oldest science of healing, also prescribes a wide array of beauty care (prosadhana) formulations containing natural ingredients. the formulations act on the basic cause of the problem and provide long lasting benefits. The secret to luxuriant, strong and glossy hair is firm roots and healthy scalp. Dandruff is a major problem suffered by many, winch can hamper the beauty and health of hair. Formulated by the Arya Vaidya Sala, Kottakal, Herbs & Berries Hair Essentials Anti Dandruff Hair Oil is a unique blend of traditional ingredients such as Ayyappalayila, Aryaveppinnila, Brahmi, Kariveppila in pure coconut oil which effectively addresses the problem of dandruff and helps in maintaining healthy hair.
20
RESEARCH OBECTIVE
1. To find out the Market leader as well as the market shares of various
hair oil brands.
2. To find out the most preferred benefit from hair oils.
3. To find out the customer awareness of Herbs & Berries Hair Oil..
SCOPE OF STUDY
• Marketing research has its importance not only to track the current
scenario but also to know the future trend of consumer’s perception,
preferences and behaviour.
• After liberalization in India, competition among various FMCG companies
has increase. A lot every company is trying various strategies for creating
differentiation, leading to developing competitive advantage and HLL is
one of them. HLL has used multi Branding Strategy very successfully for
creating Competitive advantage. This area has good scope for studying.
• It ascertains the position of a company in specified industry point out
how the company’s affairs are being turned up.
• It helps in development and introduction of product.
• It helps to know the market share of a certain product.
21
RESEARCH METHODOLOGY
Sample Size
I took a sample size of 300 people who use Hair Oil, taken at random, across
Kerala (Trivandrum, Ernakulam and Calicut).
Target
Target population is residents of major districts in Kerala of age above 20.
Primary Data
Primary data are data gathered and assembled specifically for the project at
hand. Here the primary data collection was done with the help of structured
interview and questionnaire.
Secondary data The secondary data was collected from the website of HLL, business newspapers,
online business articles and previous works done by others in the field of hair oil.
Data collection
The main research instrument used for collecting the required data was personal
Interview and a well-structured questionnaire. A detailed questionnaire has
been prepared to seek the opinion of respondent. The respondents were asked
to answer and information elicited was noted.
22
DATA ANALYSIS & FINDINGS
23
1. FROM WHERE DO YOU BUY HAIR OIL?
50% of the respondents bought hair oil from Provision Stores,
followed by Fancy stores at 23%, Drug Stores at 14%, Supermarkets at
11% and Online stores at 2%.
14%
11%
2%
23%
50%
Purchasing from?
Drug store/Chemist
Supermarket
Online store
Fancy Store
Provision store
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2. HOW FAR WOULD YOU TRAVEL TO MAKE THE PURCHASE?
61% of the respondents would travel 0 to 2 kms, followed by 2 to 4 kms at 21%, 4
to 6 kms at 14% and 6 kms and above at 4%.
61%21%
14%4%
How far would you travel to make this purchase?
0 to 2 kms
2 to 4 kms
4 to 6 kms
6 kms or above
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3. HAIR OIL – PREVIOUSLY USED
The following oils were used PREVIOUSLY with the following percentages:
Parachute: 26%
Natural Unbranded Coconut Oil: 22%
KPS Neelibhringadi Hair oil: 12%
Dabur Amla Hair Oil: 12%
Kera: 11%
Dabur Vatika Hair Oil: 5%
Clinic Plus Hair Oil: 3%
Dhathri: 3%
L’Oreal: 2%
Indulekha: 2%
Himalaya Anti-dandruff Hair Oil: 1%
Dove Elixir: 1%
22%
26%
2%12%
2%3%
1%5%
12%
1%3%
11%
Hair oil - previously used
Natural unbranded coconutoil
Parachute
L'Oreal
KPS Neelibhringadi CoconutOil
Indulekha
Dhathri
Dove Elixir
26
4. HAIR OIL – CURRENTLY BEING USED
The following oils are CURRENTLY being used with the following
percentages: Parachute: 39%
Natural Unbranded Coconut Oil: 18%
KPS Neelibhringadi Hair oil: 8%
Dabur Amla Hair Oil: 12%
Kera: 7%
Dabur Vatika Hair Oil: 3%
Clinic Plus Hai Oil: 3%
Dhathri: 3%
L’Oreal: 2%
Indulekha: 3%
Himalaya Anti-dandruff Hair Oil: 1%
Dove Elixir: 1%
18%
39%2%
8%
3%3%1%3%
12%
1%3%7%
Hair oil - currently being used
Natural unbranded coconutoil
Parachute
L'Oreal
KPS Neelibhringadi CoconutOil
Indulekha
Dhathri
Dove Elixir
27
5. SINCE HOW LONG HAVE YOU BEEN USING THIS PRODUCT
40% of the respondents have been using their present hair oil brand for 6 years
and above, 23% for 1 to 2 years, 20% for 2 to 4 years, 11% for 4 to 6 years and
only 7% have been using for less than 1 year.
7%
22%
20%11%
40%
Usage period of current product
less than 1 year
1 - 2 years
2 - 4 years
4 - 6 years
6 years and above
28
6. SATISFACTION LEVEL WITH CURRENT PRODUCT
35% of the respondents are “Somewhat satisfied”, 25% are “Neither satisfied
nor dissatisfied”, 18% are “Dissatisfied”, 15% are “Very satisfied” and 8% are
“Very dissatisfied”.
17%
31%
23%
18%
11%
Satisfaction level with current brand
Very Satisfied
Somewhat satisfied
Neither satisfied nordissatisfied
Dissatisfied
Very dissatisfied
29
7. HAIR OIL – ALTERNATE/SECOND CHOICE
The following oils are the alternative choices with the following
percentages: Parachute: 42%
Natural Unbranded Coconut Oil: 13%
KPS Neelibhringadi Hair oil: 9%
Dabur Amla Hair Oil: 11%
Kera: 9%
Dabur Vatika Hair Oil: 5%
Clinic Plus Hai Oil: 3%
Dhathri: 3%
L’Oreal: 2%
Indulekha: 2%
Himalaya Anti-dandruff Hair Oil: 1%
Dove Elixir: 1%
13%
42%
1%9%
2%3%1%5%
11%
1%3%
9%
Alternate/Second choice
Natural unbranded coconutoil
Parachute
L'Oreal
KPS Neelibhringadi CoconutOil
Indulekha
Dhathri
Dove Elixir
Dabur Vatika Hair Oil
Dabur Amla Hair Oil
30
8. HEARD OF HERBS & BERRIES OIL?
93 % of the correspondents HAVE NOT heard of H&B Hair oil, as compared to
7% who have heard of it.
7%
93%
Have you heard of Herbs & Berries Hair Oil?
Yes
No
31
9. IF YES, THROUGH WHAT MEDIA?
Among those who HAVE HEARD about H&B Oil, 43% heard through
friends/relatives, 24% through the internet and 33% via other means such as
billboards, displays at shops, etc
24%
43%
33%
If yes, where did you hear it from?
Print media
Internet
Friends/Relatives
TV ads
Radio ads
Other
32
10. TYPE OF HAIR OIL PREFERRED
90 % of the correspondednts prefer Ayurvedic Oil and only 10 % prefer
nonAyurvedic/Cosmetic oils. This proves that Ayurvedic oils lead the hair-oil market by a very wide margin.
90%
10%
Type of hair oil
Ayurvedic
Cosmetic
33
11. PURCHASING DECISION MAKER
92 % of the respondents themselves make the purchasing decision,
5% lets their Spouse decide and 3% lets their mothers decide.
92%
3%5%
Buying decision is made by whom?
Self
Mother
Father
Sibling
Spouse
34
12. PURCHASING FREQUENCY
The purchasing frequency of 61% of the respondents is 30 days, 21%
is 60 days, 11% is 15 days and 6% is 45 days.
12%
60%
7%
21%
Purchasing frequency
15 days
30 days
45 days
60 days
35
13. USAGE FREQUENCY
The usage frequency of 65% of the respondents is once in 2 or 3
days, 20% is weekly, 15% is daily and 1% is ‘other’ (like on random
days).
14%
65%
20%1%
Usage frequency
Daily
Once in 2 or 3 days
Weekly
Other
36
14. TYPICAL BUDGET FOR HAIR OIL
47 % of respondents have a budget of Rs 100 – Rs 200 for purchasing
hair oil, 39% have a budget of below Rs 100, 9% have a budget of Rs
200 to Rs 300, 3% have a budget of Rs 400 and above and 2% have a
budget of Rs 300 to Rs 400.
39%
47%
9%2%3%
Typical budget for hair oil
below 100
100 to 200
200 to 300
37
15. EXPECTED BENEFIT
The most expected benefit from a hair oil is hair growth (41%),
followed by Anti-dandruff properties (19%) and Anti – hair loss
properties 1(3%), Fragrance(8%), Conditioning (6%), Hair
strengthening(5%), Hair repair (3%), Restructuring (3%),
Revitalization (2%), Anti-lice (1%) and Heat protection (0.5%)
41%
19%
13%
5%
2%2%
6%
3%
8% 1%
Benefit expected from the hair oil you use
Hair growth
Anti dandruff
Anti hairfall/lossHairstrengtheningRevitalization
38
16. FACTORS THAT CUSTOMERS GIVE PREFERENCE FOR BUYING
HAIR OILS, ACCORDING TO RANK.
I. Past usage experience
II. Brand
III. Availability
IV. Price
V. Offers
VI. Advertisements
VII. Packing
39
LIMITATIONS
• Respondents were reluctant to spare time.
• Some people avoided me thinking that I was trying to sell them some
product.
• It took a long while to come across people aware of Herbs & Berries Hair
Oil.
• I had to repeatedly explain how the ‘ranking’ question was to be
answered.
• Certain people were not comfortable as the questionnaire was in
English.
• The company was reluctant to disclose the information regarding sales
figures and unit-price breakdown as it was considered confidential.
• Only 3 major districts (Trivandrum, Ernakulam and Calicut) were selected
to represent population from entire Kerala.
However, in spite of these difficulties I have tried my best to bring out the facts
of the market scenario.
40
CONCLUSIONS
• Parachute (MARICO) is the market leader with 39% market share.
• Even though there is heavy advertising by many prominent brands like
Indulekha, Dhathri, etc, their market share is very low in comparison to
the market leader, i.e., Parachute.
• People are almost unaware (93%) about the hair oil brand “Herbs &
Berries”.
• Kottakal Aryavaidyasala increases their product cost every 6-8 months,
and HLL has a limit on the product’s MRP. This has caused the margin for
advertisement to be almost negligible which in turn has resulted in zero
promotional activities.
• According to a survey on 30 random medical shops and provision stores,
in 24 shops, there has been no stock of H&B Hair oil since the last 3-4
months. Maintaining stock levels in such shops is an issue.
• The most expected benefit from hair oils is ‘hair growth’.
• Provision stores and fancy stores (a total of 73%) are the most visited
places for purchasing hair oils.
• 58% of the respondents were females and they were able to exactly
remember the proper brand name and other details regarding the hair
oil they were using, better than men.
41
• Parachute (MARICO) is the market leader with 39% market share.
• Even though there is heavy advertising by many prominent brands like
Indulekha, Dhathri, etc, their market share is very low in comparison to
the market leader, i.e., Parachute.
• People are almost unaware (93%) about the hair oil brand “Herbs &
Berries”.
• Kottakal Aryavaidyasala increases their product cost every 6-8 months,
and HLL has a limit on the product’s MRP. This has caused the margin for
advertisement to be almost negligible which in turn has resulted in zero
promotional activities.
• According to a survey on 30 random medical shops and provision stores,
in 24 shops, there has been no stock of H&B Hair oil since the last 3-4
months. Maintaining stock levels in such shops is an issue.
• The most expected benefit from hair oils is ‘hair growth’.
• Provision stores and fancy stores (a total of 73%) are the most visited
places for purchasing hair oils.
• 58% of the respondents were females and they were able to exactly
remember the proper brand name and other details regarding the hair
oil they were using, better than men.
42
SUGGESTIONS
• The sales executives must ensure that H&B Hair oil has sufficient stocks
(via stockists) at provision stores as well as medical shops (73%
respondents), preferably once in every month, as 60% people purchase
hair oil, once in every month.
• 33% respondents were aware of H&B oil via bill-boards and display at
shops. Therefore proper visibility of the product must be ensured at the
shops it is supplied to.
• Along with anti-dandruff property, the benefit of hair-growth must also
be highlighted in the packing, as it is the most expected benefit in hair-
oils (by 41% respondents). The product maybe renamed to H&B Hair
growth & Anti-dandruff hair oil.
• 47% of people are ready to spend between Rs 100 and Rs 200 for
purchasing hair-oil, therefore the current MRP of Rs 185 can be
increased to up to Rs 200, which will also be beneficial in getting further
margin for advertising.
• Past usage experience of the hair oil (by self, friends, relatives, etc) is the
factor given the highest ranking by respondents. Encouraging repeat
43
users to put up good reviews/feedback via online media, is beneficial, as
24% of the respondents who are aware of H&B oil has referred to online
media.
BIBLIOGRAPHY
• http://www.lifecarehll.com/page/render/reference/Introduction_To_Hll
• http://www.lifecarehll.com/page/render/reference/Our_Vision
• http://www.lifecarehll.com/page/render/reference/Our_Histroy
• http://www.lifecarehll.com/product/view/reference/c9e1074f5b3f9fc8e
a15d152add07294hX-G
• http://www.business-standard.com/article/management/branded-
forvalue-115052400775_1.html
• http://marketingpractice.blogspot.in/2012/04/herbs-berries-
brandingayurveda.html
• http://archivehealthcare.financialexpress.com/200910/market26.shtml
• http://www.greenworldinvestor.com/2011/07/05/india-hair-oil-
marketgrowing-strongly-list-of-suppliersbrands-and-
categoriescocunutamlacoolinglight-hair-oil/
• http://www.abhinavjournal.com/images/Commerce_&_Management/N
ov12/16.pdf
• http://www.managementparadise.com/forums/marketingmanagement-
rm-im/202487-profile-hair-oil-industry.html
• http://www.slideshare.net/rathi_sachin/india-shampoo-industry
• http://www.business-standard.com/article/management/kit-the-
indianshampoo-and-hair-conditioner-market-110082300016_1.html
• http://books.google.co.in/books?id=K3QRwx7N-
44
PIC&pg=PA280&lpg=PA280&dq=market+size+for+shampoo+in+India&so
urce=bl&ots=yDptQy2K32&sig=56D6qfsOCgY8fLjd069n7z02xMc&hl=en
&sa=X&ei=nQGCUbzOMYKrrAfiu4GgCA&ved=0CEEQ6AEwAg#v=onepage
&q=market%20size%20for%20shampoo%20in%20India&f=false
• http://www.business-standard.com/article/specials/segment-and-
rule112040900058_1.html
• http://www.kuickresearch.com/press-details.php?presstitle=Ayurvedic-
Cosmetics-Emerged-As-New-Growth-Frontier-For-Beauty-Business-
InIndia
• http://www.rncos.com/Press_Releases/Indian-Cosmetic-Industry-Going-
Green.htm
• http://janathatrading.com/page40.php
• http://archivehealthcare.financialexpress.com/200910/market26.shtml
• http://marketingpractice.blogspot.in/2012/04/herbs-berries-
brandingayurveda.html
• http://marico.com/investorspdf/Marico_Investor_Presentation_-
_June14.pdf
QUESTIONNAIRE
Instruction: Please put a tick (✓) next to the answer of your choice or write in the
space provided as the case maybe.
PERSONAL DETAILS
Age: a. 20-30 b. 30-40 c. 40-50 d. 50-60 e. 60 and above
Gender: a. Male b. Female Household size ________________ Monthly income (In Rs) a. below 5,000 b. 5,000-15,000 c. 15,000-25,000 d. 25,000-35,000 e. 35,000-45,000 f. 45,000 and above Occupation a. Self employed b. Government servant c. Private Company d. Professionals e. Home maker f. Student. G. OTHER _______________
Education level a. 10th std b. 12th std c. Diploma d. Graduate e. Post Graduate f. PhD g. OTHER _______________ Marital Status a. Single b. Married Locality (City, Town, Village) a. City b. Town c. Village
District? _________________
45
46
1. From where do you buy hair oil?
a. Drug store/Chemist b. Supermarkets c. Online stores d. Fancy stores e.
Provision stores
2. How far would you travel to make the purchase? _________________
3. Hair oil - previously used _________________
4. Hair oil - currently being used _________________
5. Since how long have you been using this product? _________________
6. How satisfied are you with the hair oil brand you use currently?
a. Very satisfied b. Somewhat satisfied c. Neither satisfied nor d issatisfied
d. Dissatisfied e. Very dissatisfied
7. If the current hair oil is unavailable, which other brand will you buy?
_________________
8. Have you heard of “Herbs & Berries Hair Oil”
a. Yes b. No
9. If yes, from where did you hear it from?
a. Print media b. Internet c. Friends/Relatives d. TV ads e. Radio ads
f. OTHER ______________
10. Type of hair oil
a. Ayurvedic b. Cosmetic
11. Buying decision is made by whom? _________________
12. Purchasing frequency
a. 15 days b. 30 days c. 45 days d. 60 days
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