Competitive landscape
887.51182
1860
2500
3230
4200
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2008 2009 2010 2011 2012 2013
Men skin care category size in Rs millions
2008-13
CAGR:
36.8%
Bargaining power of consumers: Moderate
-Large market and less players
-Options for quality products is less
-Products with more functional features are yet to be released
Bargaining power of Suppliers: Moderate
-Less number of players on the market
-Suppliers will have to choose amongst players; pressure from other players not to supply.
Threat of substitutes: High
-Can be replaced with sandal, turmeric, ayurvedic creams etc
-Products with more functional benefits > potential threat as they have a natural composition
Threat of new entrants: High
-Nascent market; just 9% of the entire personal care category
-Huge potential to expand the pie and get market shares irrespective of the existing players
Rivalry in the category:
High-Fair and handsome is the market
leader
-All establish brands like HUL,
Emami, Eyeryuth, Zydus Cadila etc
are present
-Huge investments in Research
and Development
-Companies trying to differentiate
the products
Nascent category
with sales of around
4200 million in an
overall men’s
grooming category
of 45000 million
Source:http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx
Case
Competitor analysis: Emami Fair and Handsome
Brand
endorsement:
Sharukh Khan >
High influence
on men within
age group 18-
32; An ideal
celebrity
endorsement
Selling points
5 power fairness cream
Double strength
peptide complex
Sun guard
Stress busters
Anti Bacplus
Herbo cool
70% market
share and a
100 crore
brand
Strengths
-Created the category: first movers advantage
-Celebrity endorsement
-Available in various SKUs
-Distribution is good and visibility is high
Weakness
-Men's fairness category itself forms 45% of the brand sales; Emami as a brand is small when compared to global giants like HUL & PG.
Threats
-A lot of competitor products being released
-The competitor products may bank on their brand global presence
-Threat from natural ingredient products
Opportunity
-Largest market share, can leverage the position and drive out competition
-Increasing interest in men for grooming products
-Developing country
Positioning: World’s number 1 fairness cream for men
Sources:
http://www.business-standard.com/article/companies/fmcgs-give-men-a-facelift-110022300001_1.html
Case
Nivea SWOT analysis
Strengths
-Strong brands create goodwill
-High scope of expansion
-Strong financial position
Weakness
-Sales and distribution channels in India
-Selection of celebrity endorsement
Threats
-Emami fair and handsome has 70% market share, more shelf space
-Men buy products based on availability, retailers might not be willing to give shelf space to new entrants
Opportunity
-Category growth has been very high for the past 6 years
-Changing attitudes amongst men; men becoming more receptive for facial creams
Sources:
http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx
0
200
400
600
800
1000
2009 2010 2011 2012 2013
Nivea Men’s Grooming
category sales in INR million
Sales % of Nivea in overall men’s grooming
category has only increased from 1.3 to 1.8 in the
past 5 years
Nivea for men other than deodorant has been
stagnant at 0.9%
0
100
200
300
400
500
2010 2011 2012 2013
Nivea for men sales in INR million
Case
Market Research
Observational studies > Consumer behavior; time spent on purchase (high involvement, low involvement, impulse purchase?)
In depth interviews and Focus group discussions (Qualitative analysis)
Quantitative analysis (Questionnaire study
Consumer behavior
Social Image
• Urban men have become more conscious and have started to put more efforts
Men’s Grooming category
• Due to this kind of change the category has see a high growth
Industry Reaction
• Increased portfolio extending to face cleansers and face washes
The big change: 2013
saw a change in men
preferring men
specific products
including soaps and
shampoos
Transactional time is relatively
small
Prominent in shelves/
availability
Hence mass brands sell more;
Companies should target for more shelf space and
should increase the visibility of the
product
Male population aged 18-32
accounted for the maximum sales
Men face issues with dust sticking to
their faces
Influence of Bollywood actors is high
Men do not worry about they age in
late 30’s hence anti ageing creams
might not be an attractive option
Reliance on economical and
affordable products
Men quickly adapt to skin care
products more broadly
Men of age >35 face rough skin issues
Students face problems with excessive
sweatSources:
http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx
http://www.livemint.com/Industry/3GiSPeViRTFQQsSs6q7zbN/Male-grooming-emerges-as-fast-growing-segment.html
Case
Segmentation
Segmentation Targeting Positioning Product Place Price Promotion Packaging
Age
•12-18 years
•18-24 years
•24-35 years
•35-45 years
•>45 years
Education
•<10th standard
•12th Standard
•Graduate
•Post graduate
Family Income
•<3,00,000
•>3,00,000
Psychographic
Lifestyles
Opinions
Behavioral
Benefits sought
Usage status
Descriptors for
behavioral
and
psychographic
segmentation:
Segment name High self image
buyer
Benefit buyer Price conscious
buyer
Lazy buyer Intelligent buyer
Personality Highly social Goal seeking Self oriented Lazy Analytical
Lifestyle Image centric Energetic Value centric Hedonistic Saving
Behavior Premium brands Brand loyal Test and use Heavy user Quality
searcher
Benefits sought Brand image Attributes Price Not specific Functional
Case
Targeting
Segmentation Targeting Positioning Product Place Price Promotion Packaging
18-35 yrs
12th
standard & Graduate
Family income< 300000
Price conscious
buyer
High Self image
buyer/Benefit
Buyer
18-35 yrs
Graduate & Post graduate
Family income> 300000
35-45 yrs
Graduate & Post graduate
Family income> 300000
Benefit buyer/
Intelligent buyer
Different lines can be made
to meet the requirement of
each target segment.
Case
Positioning
Segmentation Targeting Positioning Product Place Price Promotion Packaging
Price conscious buyer
Prevents dust, keeps your face clean and
shining; sun protection
In the budget limit
Effective for any kind of skin
High Self image buyer/Benefit Buyer
Prevents dust, keeps your face clean and
shining; sun protection
Extra whitening, anti per spirant
Effective for any kind of skin
Benefit buyer/ Intelligent buyer
Prevents dust, keeps your face clean and
shining; sun protection
Smoothening agent, keeps your skin soft
After shave face cream
Effective for any kind of skin
The main positioning would be
that the cream prevents dust
and keeps your skin clean and
shining; sun protection
The creams shall have variants
for dry and oily skin and
hence shall be effective for all
kinds of skin
How do we want to position Nivea face cream in the consumer’s mind?
Case
Product
Segmentation Targeting Positioning Product Place Price Promotion Packaging
Product A: Dust
protection
•Dust & sun protection
•Skin cleansing agent
•Skin shining agent
•Number of variants: 2 (for oily skin and dry skin)
Product B: Dust
protection, extra
whitening & anti
perspirant
•Dust & sun protection
•Skin cleansing agent
•Skin shining agent
•Extra whitening
•Anti perspirant
•Number of variants:2 (for oily skin and dry skin)
Product C: Dust
protection with
smoothening agent
•Dust & sun protection
•Skin cleansing agent
•Skin shining agent
•Smoothening agent
Product attributesThe product will be for
the price conscious
segment and hence only
basic need of dust
protection and clean &
shining skin are covered .
Consumer insight
considered: Men face
issues with dust
The product is made for
the people who can
spend an extra amount
for certain additional
attributes like anti
perspirant. Consumer
insight considered:
School and college
students face sweat
issues
The product is made for
the people who want to
smoothen their skin.
Consumer insight
considered: Men of age
>35 face rough skin issues
Case
Packaging
Segmentation Targeting Positioning Product Place Price Promotion Packaging
NIVEA being an established company globally,
the shape of the product should reflect its
premium nature and brand image
Packaging for product A can be in the normal
tube type packaging
Pricing of 60 g SKU is done in a manner to
elevate the sales of the 120 gm SKU (Decoy
effect)
Packaging for product B and C should not be
the typical tube type like all other brands; the
packaging for these products need to be
differentiated; sample shape is shown beside:
SKU’s
30 gm 60 gm 120 gm
Product B &C >
Premium packaging
Product A > Normal
packaging
Small packages of 5 gm can be
made for testing purpose in the
market. These packages can be used
in the promotional activities at various
point of sales
Case
Pricing <-> Packaging
Segmentation Targeting Positioning Product Place Price Promotion Packaging
Product (SKU in gm) Competitor price (INR) NIVEA Launch price bracket (INR) Rationale
Product A (15) 25 30-35 Nivea has a premium brand image and the
pricing should be relatively higher than the
competitor product.
Product A is for the price conscious segment,
hence it is priced at 20% higher than emami
F&H; Pushing the 60 gm tube sales by Decoy
effect (marginal increase in price/quantity is
very less from 30-60 gm)
Product A (30) 60 80-90
Product A (60) 110 130-140
Product B - 20% higher than Product A The product is for the high self image
buyer/benefit buyer who is looking for a
premium product
Product C - 10% higher than product A The product is for an intelligent buyer who is
looking for functional benefits and is willing to
pay more than the price conscious buyer.
Assumption: The pricing has been done relative to the main competitor Emami Fair and Handsome and by
considering the brand image of NIVEA. The cost structure of each of these products has not been considered
as the information is difficult to obtain. Hence the profit margins for each of these products are not being
mentioned.
Case
Retail landscape in India
Organized
9%
Unorganized
91%
RETAIL IN INDIA
Penetration of just 9%
High growth potential
for Modern trade; 3
year CAGR of 38%
US 500 billion $ industry
Contributes to 14-15% of the India’s GDP
Employment over 40 million people and over 90% of them
employed in General trade
Fastest growing
retails market in the
world
500 B$ in
2014
900 B$
in 2020
Per capita organized retail space in India is approximately
around 2 feet
Per capita organized retail space in China is 8 times larger
than that of India
Indian MT not growing as fast as that of
Vietnam, China & Indonesia though
the penetration of MT is just 9%
More than 3% of people are employed in unorganized retail
and hence people cannot easily shift to Modern trade
Segmentation Targeting Positioning Product Place Price Promotion Packaging
General trade Modern trade
91% 9%
Huge population employed in General trade; Penetration is very high
Margins distributed across distributor and retailer; hence producer margin is low as compared to MT
Unionized retailers => High coordination amongst the retailers in any area
Change in FDI regulations has increased the limit to 100% investment in single brand retail and 51% in multi brand retail
Global players to enter the market to capture the huge potential
Creation of jobs in India
Retail landscape in India
Segmentation Targeting Positioning Product Place Price Promotion Packaging
Private labels
Higher margins; 10% more than the other brands
Cultivates brand loyalty; Walmart has a lot of loyal customers in foreign countries
These are cheaper to produce as there are no advertising and marketing costs
Marketing budgets are more efficiently used
Gives the shelf space to different brands
Motivates the consumers to visit the store
Introduces Private labels of its own to earn large margins(10% more than normal); makes the competition price sensitive
Motivates the people to buy the Walmart labelled goods and gives very less space to other brands
PlaceDistribution
network
Conventional
High frequency
storesModern Retail
Non conventional
Nivea men’s outlets/E-
commerce
HFS Availability of the products in the
stores is very critical especially for
men products availability of
different variants is very important.
Shelf space is very critical, In the
high frequency stores, there
should be availability of all
variants => sales shall be higher for
the product A
Product A can be sold to the
retailer at discount offers; the
presence of other variants will
push the sales of product A which
is targeted at the price conscious
customer
Visible and most effective shelf
space to be taken from the
retailer
Modern Retail Shelf space is very critical as it influences
the purchase decision of men
All the products A,B,C have to be
available in this channel
Special shelf space near the women
cream section to be taken> women
shall be inclined to buy product C for
their husbands (face smoothening)
Space near the counters (arms length)
has to be taken to help men have a look
at the product while they are at the
cash counter
Non conventional Collaboration with e-commerce
websites
College students are increasingly
purchasing online
Nivea men outlet in lobby space of
malls
Segmentation Targeting Positioning Product Place Price Promotion Packaging
Case
Promotion
Segmentation Targeting Positioning Product Place Price Promotion Packaging
1. Trade promotions (Retailers)2. Consumer sales promotions
(Discounts, Bundling offers etc)
1. Direct selling; Direct marketing2. Advertising 3. Publicity4. PR
Promotion
Segmentation Targeting Positioning Product Place Price Promotion Packaging
Identify the ideal test market where the products can be
tested
Ensure that the stickiness factor is
present. How?
Discover the consumer insights by observations and by
feedback
1. Pre launch campaign
Connectors
•Dermatologists: The safety factors have to be explained to the doctors
Mavens
•Gym instructors :They have an influence over the customers
•Grooming experts: Salons are another place where the testing can be done
The proposition of
the products with
dust protection,
clean and shining
face can create a
stickiness factor
Identify the consumer insights and their affinity/aversion towards some attributes
in the product
Incorporate the feedback and re test the products at the same place
Enhanced brand image as “customer centric” and development of brand
loyalty
Engaging the
customer and
making him a co
creator and a
collaborator
Case
Segmentation Targeting Positioning Product Place Price Promotion Packaging
Test Markets
Increasing number of people these days are enrolling in gymnasiums in Urban India because of the increasing consciousness to be fit and presentable. These men are potential users of the face cream. Hence counters inside the gymnasiums can be installed as test counters
Gymnasiums
There has been an increase in the number of people visiting established salons. The products can be launched here for testing and for collecting consumer insights/ feedback
Salons
-Women spend more time shopping than men. This makes many men move into the lobby space while their women are shopping, hence the lobby space counters shall be an effective means for test marketing.
-Test centers near the cash counters and near the women beauty section (often men wait with their women at these places)
Malls
Test centers outside skin clinics shall also be effective if recommended by the doctor
Skin clinics
Case
Segmentation Targeting Positioning Product Place Price Promotion Packaging
Bundling and using the brand image of NIVEA (strength of NIVEA & weakness of EMAMI)
2. Bundling offers
•The bundling offers can be with women’s face cream and this will be only for product C which is targeted at men of age group 35-45
•The purchaser in this case is in the women who feels that her husband’s skin is not soft
•Point of Sale would be giant apparel retail outlets like shopper stop, Life style etc. and normal retail chains.
3. NIVEA hampers
•NIVEA hampers can be introduced which contain a portfolio of products of NIVEA like the face was, face cream, moisturizer & shaving gel.
•These hampers can be given as goodies to promote the products and also the mother brand.
•These hampers can also be given at discounted price to attract the customers
4. NIVEA point of purchase promotion
•One of the consumer insight is that men prefer to buy those products which have large variants and occupy high shelf space.
•NIVEA display stands in the retail outlet which display the portfolio products of NIVEA (EMAMI lacks wide category range)
•NIVEA point of sale display of the men’s face cream variants; men generally pay the bills in India and they have considerable time to look at the products
Case
5. Tactile marketing
Packaging of Product A
•Product A is targeted at a price conscious segment
•Heavy package shall have a positive effect on the customers
Packaging of Product B/C
•The product is targeted at a brand conscious segment who are willing to spend for the quality.
•The product preferable should not have any outer cover.
•The product should have a smooth finish to give a premium feeling to the customer.
•The shape and the finish of the product is shown in the package
Segmentation Targeting Positioning Product Place Price Promotion Packaging
The consumer will hold the product in his hands before making the decision of buying it. This will
create a sort of intimacy between them. Hence it is important to gain his attention during this short
span. The influence of touch is HUGE, and human being are extremely affected by it.
Case
5. Celebrity endorsement
Segmentation Targeting Positioning Product Place Price Promotion Packaging
- Towards the end of his career
-Very less fan following
-Credibility not established
-Not a great influencer
NIVEA face wash
-Is an established superstar in the industry
-Huge fan following
-Most effective in medium and low class segments
EMAMI fair and
handsome
“Not an ideal option
for the new launch”
Whom is NIVEA looking for?
A person who is in the peak of his
career
A person who is expected to stay for a
considerable amount of time
Great influencer
Established credibility
Who has a screen presence and fan
following almost equal or greater than
“Sharukh khan”
Plausible celebrities:
• His new film “Bang Bang” can
be used to promote the
product
• Has a lot of youth connect
• Will stay In the industry because
of established family and
charismatic appearance
• The Mr. Perfect of
Bollywood
• Has an established
credibility
• Known for his unique
and diverse screen
presence
Segmentation Targeting Positioning Product Place Price Promotion Packaging
6. TVCs
The central idea in the TVC should be dust/sun protection and a clean shining face.
The ad concept can be as follows:
A biker travelling under the hot sun and using a NIVEA face cream will have a better shine and a clean face with no dust or skin tanning.
The TVC can also directly attack the central idea of EMAMI of “fairness” which traditionally has been considered as a women’s attribute
The TVCs should feature mostly in between sporting leagues like IPL, Indian Football league, Sports channels and News channels;
Audio copies on Radio shall also be effective as many men who drive prefer to listen to the Radio
7. Bill boards
Location Rationale
Outside Gymnasiums Gym going population are
the people who are
conscious about their
appearance and health.
Hence there is a connect
with the product’s
proposition
Near traffic signals Male drivers are
considerable large in
number and bill boards near
the traffic signals will have
more viewing time
Exit gates of mall parking
spaces
Considerable amount of
time is spent near the
parking ticket collection
counter and the traffic
moves really slow in these
locations, hence a good
place to locate a bill board
Case