Brand Building and Category Expansion Strategy of Vivel_ITC Interroban

Chitty Chitty Bang Bang, FMS

Team Chitty Chitty Bang Bang Faculty of Management Studies, Delhi

Badal Choudhary Nikhil Dubey Sawedana Shirsat Sukesh Gain

Agenda

Case Overview: Personal Care Market

ITC’s trajectory in the Personal Care Category

Research Methodology: Primary & Secondary

Roadmap of Few Successful Personal Care Brands & Need Gap Analysis

Brand Identity Prism and Brand Equity Analysis

Recommendations based on Market & consumer analysis

Brand Resonance Model

Communication strategy

Mind Map for Brand Vivel extensions


•Market valued at INR 224 bn in 2009, estimated to grow at 19% CAGR •Market: categorised as body care, facial care, hand care, bath shower, deodorants, de-pilators, hair care, oral care, sun care & men’s range

Market

Drivers & Challenges

Challenges for Brand Vivel: •Which categories to expand into? •Consumer need identification & POD designing? •Branding strategy? •Market entry strategy?

Trends

•Entry of international players •Constant innovation & focus on branding •Price war amongst peer players to attract the consumer •Brands are moving up the value ladder

Competitors The market is competitive with large influx from foreign players The domestic players include HUL, P&G, Cavin care, Dabur, Emami, Godrejetc.

Case Overview: Personal Care Market

Drivers: •Increase in disposable income •Adoption of western styles •Inc. in awareness of personal image •Growth of retail

ITC’s trajectory in the Personal Care Category

Expansion Strategy??

Personal Care Market Study Industry Rs Mn(till

mid 2011)

Comment 2010 2011 2012 2013 2014 2015 CAGR (%)

Body Care 4104 Competitive –Direct Stretch 3812.6 4033.6 4376.1 4711.1 5048.4 5384.7 7.15

Facial Care 36792 Competitive –Direct Stretch 36755.9 41120.4 45760.4 50488.9 55275.3 60044.7 10.31

Facial Cleansers 5855 Medium Competition-Direct Stretch 5839.3 6723.6 7758.0 8844.0 9997.1 11205.0 13.92

Moisturizers/Anti-

Agers

1620 Highly Competitive –Direct Stretch 1,505.3 1,843.5 2,250.5 2,719.0 3,260.5 3,880.5 20.85

Men care 1860.3 Unrelated-Does not go with the current positioning of Vivel as a soft, gentle brand (see Brand Identity Prism)

Bath and Shower 104904 Highly Competitive-Direct Stretch 105000 109000 112000 118000 123000 127000 ~4

Deodorants 7920 Highly Competitive-Indirect Stretch 7821.0 9878.3 12026.5 14042.1 15983.0 17795.5 17.87

Roll-Ons Deo 112 Less Competitive-Indirect Stretch 108.6 115.2 123.2 132.3 142.9 155.0 7.37

Depilatories 4032 Highly Competitive-Indirect Stretch 4042.3 4836.3 5817.8 6924.1 8152.4 9518.2 18.68

Hair Care 79920 Highly Competitive –Direct Stretch 100308 120370 14400 17300 208000 249600 20

Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources

Consumer Preferences – Primary Research

Research

Problem identification

Market Segmentation

Product Recommendations

Need gap identification

Core Segment Leakage Segment

Research Methodology: Primary & Secondary

Secondary, Primary, Focus group

Market analysis & Benchmarking

Primary research: •Online questionnaires(Delhi, Mumbai & Bangalore) •PIs & FGDs(Delhi) •67 women (age group 15-34 years) (54 in 18-30 yrs, 5 in 15-17 yrs 7& 8 in 31-34yrs ) •30 men in age group 18-30 •3 FGDs (6 people in each) •Sample: Mix of college going students, young working professionals(married and single)


Basis for Segmentation: Age, Gender & Psychological Behavior Core target segment 18 – 30 years of age Highest usage of personal care products Two leakage segments •15 – 18 year olds Just started using Personal Care products Wish to look like their slightly elder counterparts •31 – 35 year olds Still high on usage of Personal Care products Wish to look like they did in their 20s

Dove Soaps Body Wash & Gels

Shampoo & Conditioners

Initially into beauty soaps USP - 1/4th moisturizing cream

Direct Stretch - into body wash and gels

In-Direct Stretch - into hair wash – shampoos and

conditioner

Consistent USP: 1/4th Moisturising cream

Ponds Cold Creams Body Lotions Face Wash

Initially into face cold creams USP - soft skin

Direct Extension - into body /skin care category

through body lotions

Extension - into face washes Consistent USP: Soft Skin


Roadmap of Few Successful Personal Care Brands & Need Gap Analysis

0

2

4

6

Awareness

Fragrance

Variety

Connection withbrand…

Advertisements

Confidence in thebrand

Value forMoney

Dove

Lux

Godrej No.1

Vivel Soaps

0

2

4

6

Awareness

Fragrance

Variety

Connectionwith…

Advertisements

Confidence

in…

ValueforMo…

Clear

Head &ShouldersSunsilk

Dove

Garnier

Vivel Soaps Vivel Shampoos

Soap Category: •Dove preferred soap brand. Value For Money •Lux highest on fragrance Shampoo category: •Dove high on fragrance women preferred softer, gentler smell in shampoos. •Sunsilk preferred because of customized variants.

Personality

Self Image

Confident Independent

Progressive Beautiful

Culture

Reflection

Relationship

Empowering, Inspiring

Sophisticated Urban

Indian, down to Earth, Aspirational

Brand Identity Prism

Data obtained from Consumer Research

Brand Vivel

Loyalty

Perception

Awareness

Association

Brand Equity

Attitudinal : MOD Behavioural : LOW Purchase : MOD

Soaps: HIGH Shampoo : MOD

•Soft and Gentle

•Young and Fresh

Personality, Culture & Self Image is internal identity

Physique

Soft Colours Packaging

Physique, Relationship and the Reflection is an external identity

Premium imagery Value for Money Physical & emotional beauty

Scope For Improvement Brand Awareness for Vivel Shampoos Increase in Attitudinal Loyalty for Vivel

Need to Improve synergies between Internal and External Identities to increase Perception and Association

Mind Map for Brand Vivel extensions

Transformation map of Vivel from a soap/shampoo brand to a beauty brand which provides “Complete Skincare Experience”

Recommendations based on Market & Consumer Analysis

“Beauty” regime is divided into Pre-bathing, during bathing & Post bathing activities Vivel soap variants with fragrance matching our TG (soft & gentle) and natural extracts such as Lavender, aqua etc

Beauty Regime

Pre bathing During bathing

Post bathing

Recommendation Target Group

Description

Consumer Needs

addressed

POD Positioning Market Entry

Strategies

Relevance

Aqua Young, energetic, have

a busy lifestyle, yet are

gentle and soft inside.

Ready to experiment in

life.

Softer fragrances

according to their

personalities

Sea minerals A beautiful,

soft and

glowing skin

which gives

you the

confidence to

face theworld

Priced similar to

current Vivel soaps.

Penetration in

existing markets.

Presence in all GT

& MT outlets

Lavender Lavender extracts

Almonds Goodness of almond oil

Pure No harsh chemicals

Local ingredients

(saffron, gram flour)

Tried & tested ingredients

Vivel shower gels: Highly competitive & direct stretch market.

Recommendation Target Group Description Consumer Needs

addressed

POD Positioning Market Entry

Strategies

Relevance

Vivel Shower gels

(variants

corresponding to

highest selling

soap variant)

Women who aspire to

upgrade their personal

care habits but are

sceptical mainly because

of the price.

1. An up gradation in

bathing habits at a

reasonable price (since

most shower gels are

priced 75 Rs upwards)

2. Exfoliation & Body

wash

Exfoliation of

dirt and oil from

skin

A beautiful, soft

and glowing skin

which gives you

the confidence to

face the world

Priced lesser than

Fiama shower gels.

Penetration in

metros. Presence

in bigger GT outlets

& MT outlets.

Vivel Repair Solutions: Sunsilk was preferred because of customization of variants for each type of hair. Fragrance should be mild & gentle


Description

Consumer Needs

addressed

POD Positioning Market Entry Strategies Relevance

Vivel Repair

solutions for

dyed/dry/

damaged/rough hair

Working women,

stressful work life (call

centres) with

dry/damaged/dyed hair

Vivel for

dry/damaged/dyed hair

to provide a complete

repair solution

No harsh

chemicals.

Milk/natural/prot

ein extracts

Compliment

glowing skin

with silky

and strong

hair

Priced similar to Sunsilk

Target Metros. Chemists,

salons, bigger GT and MT

outlets.

Face Wash: 95% users wash their faces before application of any creamface wash is complimentary bundling to a beauty cream & precedes its application. Fragrance should be mild. Words that have been associated with face washing activity are “cleaning”, “refreshing”.


addressed


Vivel Active Face

Wash

Young, energetic, have a

busy lifestyle, yet are

gentle and soft inside.

Ready to experiment in life.

Women prefer using

face washes on their

face instead of soap for

“soft skin”, “lasting

glow” and “fairness”.

Whitening and

softening agents

with a lasting glow.

A beautiful, Soft

and glowing skin

which gives you

the confidence to

face the world

Benchmark on Lakme

w.r.t price and

distribution

Vivel Body Care: Whitening Moisturiser with SPF(for smooth texture & colour of skin). Complimentary post bathing product in harmony with during bathing activity product soap. Variants to suit different skin types launched later on.


addressed


Vivel Body Care

with whitening

moisturizers+SPF

Young, energetic, have a

busy lifestyle, yet are gentle

and soft inside. Ready to

experiment in life.

Logical extension after

face wash. Moisturizing

body is part of daily skin

care routine

Whitening

moisturizer+SPF

gives lasting

smooth & glowing

effect

Soft and glowing

skin which gives you

the confidence to

face the world

Benchmark w.r.t.

Vaseline for price and

distribution

Post Bathing

•Vivel Anti-Ageing cream:

•Further the proposition of smooth skin by keeping skin wrinkle free in middle aged women.

•Can be portrayed as a brand that preserves beauty. Competitors such as Olay, Garnier, Neutrogena are high priced (Rs 300 onwards).

•Create unique positioning through its price.


Description

Consumer Needs

addressed


Vivel Anti-Ageing progressive middle

aged women

(through Brand

identity prism)

Soft, wrinkle free

skin at an affordable

price.

Reduces wrinkles &

pigmentation at

affordable price.

Soft and glowing

skin even in your

30s.

Priced lesser than

competitors.Distribution at all

chemist,GT,MT outlets

Hair removal: •Our surveys have revealed that major activity that instils confidence in a woman is waxed hairless skin. • We have also found that Vivel is recognized as a brand that takes care of needs of a woman during & post bathing & hence to become complete beauty brand there is need to enter pre bathing segment. •The depilatory market is a high growth market in India. • Presence of few playersmarket potential high


addressed


Vivel Hair

removal

women who wear western

clothes, models etc

Hair removal instils

confidence in a woman.

With moisturizers

to reduce rashes &

breakouts after hair

removal.

Soft and glowing

skin which gives

you confidence to

face the world

Pricing lesser than Veet and

Anne French.Market

penetration at all outlets.

Very High relevance Moderate relevance High relevance

Vivel Deo Sprays: Our consumer surveys have shown the opportunity to enter the post bathing segment as part of the daily personal care. Name Vivel will be retained for deo-sprays with the word “Pro” added for men. Recommendation Target Group Description Consumer Needs

addressed


Vivel Ultra

Sensitive

Whitening Roll

On

18-35 Years old urban

women who love to wear

sleeveless dresses, urban

& semi urban

Whitening

Deodorant

+Fragrance

Whitening Roll on,

0% Alcohol

Clean, fairer

underarms

which gives you

the confidence

Benchmark wr.t Dove Roll- On for

price. Presence in all MT outlets in

urban markets.

Vivel Skin

Lightening

Deodorant

18-28 Years Women,

urban & semi urban

Whitening

Deodorant

+Fragrance

Whitening spray, 0%

Alcohol

Clean, fairer

underarms

which gives you

the confidence

Benchmark price wr.t Fa. Presence

in all Pharmaceutical stores, MT

outlets in urban & Semi-urban

markets

Vivel-Pro for Men 16–34 years old young

consumers, urban & semi

urban

48+ Hrs

Protection+Freshn

ess

48+ Hrs,

Antiperspirant,

Fragrance

The New Hunk Benchmark wr.t Axe, Presence in all

Pharmaceutical stores, MT outlets

in urban & Semi-urban markets

PHASE 2: Vivel

Hair Perfume

Women between 16-35

years from Urban areas.

Protection from

hair odour, hair

knots, lost shine

Alcohol-free hair

perfume to untangle

hair & increase shine

Spread your

hair, spread

freshness

Benchmark price wr.t

Quco.Presence in all chemist stores,

MT outlets in urban & Semi-urban

markets

SALIENCE

PERFORMANCE IMAGERY

JUDGEMENTS FEELINGS

RESONANCE

Premium Imported Exciting, Trendy

Confidence, Youthful

Aspirational feel: Kareena Kapoor

Need to increase the aspirational value and international appeal for greater Loyalty

Enjoys a low degree of brand salience, reflected by the low market share

Communication Strategy

Product Communication Communication Keywords: Informational, Functional Aspirational Objectives : • Highlight product novelty &benefits • Leverage segment knowledge • Showcase entire product portfolio Key Vehicles : TVC : Sponsoring Talk shows like ‘Girl Talk’ and ‘Style Check,‘Get Gorgeous’ should be used as a platform to promote among the young girls Radio Channels: RJ’s are a big opinion leaders Beauty Blogs: Tie-ups with Beauty Innovative packaging and bundling with existing SKUs Social Media: Facebook: Targeted Ads using TG Profiles Twitter: Celebrity tweeting about Vivel Youtube: to start a Vivel channel where the TG can upload videos

Soap & Shampoo

Brand

Body & Face Care Brand

Beauty Brand

Future communication should be to increase awareness and favourable brand association resulting into increased loyalty

Brand Resonance Model

Functional Benefits need to be communicated uniquely

Focus on Credible Superior Aspects to gain consideration

Transformation for a “Complete Skin care Experience by Vivel”

Thank You

Marketing

Brand Building and Category Expansion Strategy of Vivel_ITC Interroban