Introduction to the FMCG Sector:

Fast Moving Consumer Goods (FMCG):

Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples
of FMCG generally include a wide range of frequently purchased consumer products such as
toiletries, soaps, cosmetics, tooth cleaning products, shaving products and detergents, as well as
other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG
may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks,
tissue paper, and chocolate bars.

FMCG Industry Economy:

FMCG industry provides a wide range of consumables and accordingly the amount of money
circulated against FMCG products is also very high. The competition among FMCG
manufacturers is also growing and as a result of this, investment in FMCG industry is also
increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector
with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by
2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of
Gross Domestic Product (GDP).

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Industry Profile of Shampoo:
Shampoo in India was derived from the Hindi word ‘Champi’ meaning hair massage.
The introduction of shampoo in India dates back to the British reign in the country. Being a
recent development the growth of shampoo or rather the penetration levels of shampoo in
the India has been commendable.
The shampoo market in India is estimated to be Rs 2,500-3,000 crore. The shampoo
market is India is categorized according to the benefits they provide. Mostly consisting of
three kinds of shampoos cosmetic, herbal and anti dandruff, the shampoo market in India
has managed to tap users of the various segments according to their requirements and
preferences.
Due to the continuous efforts of the top shampoo brands in India penetration of shampoos
in urban areas is almost 100%. As far as penetration of shampoo in the rural areas is
concerned it has risen by almost 18% in the current scenario.
The top shampoo brands in India include Sunsilk, Clinic Plus, Dove and Pantene. The
company that leads the shampoo market in India is Hindustan Unilever Limited. The top
three most sought after brands Sunsilk, Dove and Clinic are produced by HUL. The
company holds a 44% market share in the Indian shampoo industry. It is said that HUL
earns almost 8% of its revenue from the sale of these products The other recent brand that
has taken the Indian personal care industry by storm is Pantene. Since its very inception
the brand was a best seller.

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Company Profile of HUL:

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
Company, touching the lives of two out of three Indians with over 20 distinct categories
in Home & Personal Care Products and Foods & Beverages. The company’s Turnover is
Rs. 17,523 crores (for the financial year 2009 - 2010). In 2009 Unilever has about 52%
shareholding in HUL.
Unilever, an Anglo-Dutch company, was formed in 1930 as a result of a merger between
British soap maker Lever Brothers and Dutch margarine producer Margarine Union.
Hindustan Unilever Limited (HUL) is a subsidiary of Unilever; one of the world’s
leading suppliers of fast moving consumer goods with strong local roots in more than 100
countries across the globe with annual sales of about €40 billion. HUL is the first foreign
subsidiary to offer 10% of its equity to Indian public.
Hindustan Unilever Limited (HUL) was formed in 1933 as Lever Brothers India Limited
and came into being in 1956 as Hindustan Lever Limited through a merger of Lever
Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd headquartered
in Mumbai, India. It has an employee strength of over 15,000 employees and
contributes to indirect employment of over 52,000 people. The company was renamed in
June 2007 as “Hindustan Unilever Limited”.

HUL’S Purpose and Principles:

Our corporate purpose states that to succeed requires "The highest standards of corporate
behaviour towards everyone we work with, the communities we touch, and the
environment on which we have an impact."

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Clinic All Clear:
About Clinic All Clear:

The Clinic All Clear brand was launched in 1980 in India. It was known as Clinic Special then
and its name was later changed to Clinic All Clear in 1996.The brand is also present as Clear in
14 other countries worldwide. To align itself to the international quality standards this year
Clinic All Clear has been re-launched as Clear.

The new range of Clear is powered with the dual benefit of Clear tech and essential oils. The
dual action of its advanced formula guarantees Zero dandruff and leaves you feeling fabulous.

Variants of Clinic All Clear:

Clear is available in 5 variants, each catering to a specific scalp/hair need.

 Clear Active Care – Provides extra nourishment for a healthy scalp and beautiful hair.
Powered by Cleartech also helps remove dryness which is the root cause of dandruff.
 Clear Ice Cool – Specially formulated with the Cleartech advantage it refreshes and cools
the scalp and also reduces dandruff.
 Clear Hair fall Defense –Also powered by Cleartech. It removes dandruff which helps in
reducing hair fall
 Clear Soft Gloss – Powered with the twin advantage of Cleartech soft and essential oils.
It not only removes dandruff* but also leaves your hair 4 X softer.
 Clear Radiant Black – Nourishes the scalp and gives a black shine to your dandruff free
hair.

Key Facts:

 Presence in countries like Indonesia, Thailand, Phillipines, Vietnam, Arabia, Russia,

turkey etc
 Clinic is Clear is the only brand that offers specially formulated Anti dandruff shampoo
for men
 Clinic All Clear also has Anti Dandruff Hair Oil that Fights dandruff gently and
effectively, giving you dandruff free hair.
 Strengthens hair from scalp to give you hair full of health.

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 Segmentation:

Demographic:
· Age: From youth to adult age but mostly youth
· Gender: Both male and female
· Religion: All
· Income: Middle and Upper Middle class

Social Grade:
· All grade of the society from middle class to higher end class

Geographical Segmentation:

Urban and Rural Market:

Clinic All Clear are high quality range of shampoo for the upper-mid and mid-
market consumer segments. As the segments mostly prevail in urban areas, vivel was
greater share of the markets. So, the new strategy will be to capture the rural
untapped markets, which accounts for 20% of shampoo sold in the country.

Targeting Audience:
 Upper middle class
 Middle class and housewives
 Upper class rural consumer
 Teenagers
 Lower middle class
 Semi rural

Positioning:
 Anti- Dandruff shampoo
 The Clinic All Clear first introduced in1996. It is dual shampoo- it not only fights
last dandruff flakes but also adds back lost nutrients to make hair healthy and
beautiful. Clinic all clear is a dandruff solution for everyday use.

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Procter and Gamble:
Matt Elliott got Procter & Gamble researchers to start making a new anti-dandruff
shampoo in 1950. Nearly a decade of research went into making a new formula, which
introduced the product Pyrithione zinc into a shampoo. Head & Shoulders was first
introduced to the U.S. market in November 1961, as a blue-green shampoo formula.

The brand's "Extra Strength" product had a cameo role in the 2001 film Evolution, where
its startling copper orange color was shown. It should be noted that the active ingredient
in Extra Strength Head & Shoulders is selenium sulfide, not Pyrithione zinc.

Endorsers of Head and Shoulders Shampoo are NFL Superstar Troy Polamalu, who plays
for the Pittsburgh Steelers and MLB Superstar Joe Mauer, who plays for the Minnesota
Twins.

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Head & Shoulders:

1) Head and Shoulder is the world no.1 anti-dandruff shampoo. A power brand of the
P&G Company. This brand made its debuted in the India in 1997
2) In the highly competitive India shampoo market, which is estimated to worth around
1800 crore, H&S is the major player in the anti-dandruff shampoo niche
3) The highly profile launch of H&S, fueled the growth of this specially markets. Now
anti-dandruff segmented constitutes around 15% of the total shampoo market

Product Definition:
1) Cleanness and remove the dandruff.

2) Its new best ever anti-dandruff formula provide better scalp coverage to get rid of even the

tiniest dandruff flakes.

3) What’s more it gives you soft, beautiful hair that’s closer to the look you want.

4) The brand used the Markonym ZTP (Zinc Pyrithine) formula which has anti –fungal properties

as its differentiators.

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 Segmentation:

The available segmentation to head & shoulder are:

The available segments could have been found on demographic, geography,

psychographic or the life–style. But being as FMCG product, like shampoo, the
demographic or geographic segmentation is the not important as it is the based upon the
life style as well as customer preference despite of their demography or geography .The
core segments were
 Shiny hair
 Black hair Anti –Dandruff
 Low price

Targeting:
Target market for the Head & Shoulder are higher and middle class people who
are brand conscious, early adopter and who care about the overall health of their hair.

Positioning:
 In its advertisements, Head & Shoulders introduces itself as a premium brand and uses
the charm and beauty of beautiful models.

 Attractive Banners and Hoardings are used extensively.

 Print media (News papers, leaflets and pamphlets etc.) is used with exclusive high
resolution attractive models.

 The emphasized is on healthy, long and beautiful hair.

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Critical Evaluation of Clinic All Clear and Head & Shoulders:

Clinic All Clear Head & Shoulders

a) Targeted to Upper middle class, a) Targeted to higher and middle class.

middle class and housewives, Upper
class rural consumer, Teenagers,
Lower middle class and semi rural.

b) Advertisement: They do not do b) Advertisement: They do have

aggressive advertisement strategy aggressive advertisement strategy

c) The 100 ml bottle carries a price tag c) The 100 ml bottle carries a price tag
of Rs 69 and 200 ml of Rs 129. of Rs 72 and 200 ml of Rs 140.

d) The core objective of Clinic All Clear d) The core objective of healthy, long
is to provide healthy, dandruff less and and beautiful hairs.
silky hair.

e) Clinic All is a popular e) Head & Shoulders is popular

Clear
shampoo that uses zinc Pyrithione as shampoo that uses Zinc Pyrithione as
its active ingredient. its active ingredients.

f) Clinic All Clear have distribution f) Head & Shoulders have distribution
channel, factory - distributor - retailer channel, factory - distributor - whole
- consumer seller - retailer - consumer

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Recommendation for Clinic All Clear:

 To come up with new varieties according to market needs.

 The popularity of Clinic All Clear is still less in rural area rather than Urban areas. They
should have innovative promotion strategy for rural markets.

 The HUL should focus on the brand image of Clinic All Clear shampoo.
 In past few years company emphasized on variants rather than its quality of the product.

Recommendation for Head & Shoulders:

 Maintain its quality with constant improvements.

 To maintain a competitive pricing.

 Promotion in rural and semi-urban areas.

 Special offers, discounts to consumers as well as distributors.

 Innovative means of promotions like forming a special association or some distinct group
which will help maintain its brand equity and loyalty.

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Pie Chart:

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Bibliography and References:

 Marketing Management by Kotler and Keller

 www.google.com
 www.wikipedia.com
 www.hul.co.in
 www.pg.com
 www.slideshare.com
 www.scribd.com

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