Fogg Deodorant and Market Analysis

How fogg has been a market leader and proposed future plans of Fogg Deodorants.

1. Going to the Market Submitted to : Dr. KAVITA KULKARNI By: KANIKA SHARMA RAGHAV KHANNA DIVYA SHARMA ASHISH BEHL

2. OVERVIEW : When all the Deodorants brands were coming with the same type of product, Vini cosmetics came up with a different type of product, a liquid based product instead of gas. Fogg came with a punch tagline of “without gas body spray” and “again finished”. It came with a basic USP of long lasting fragrance and guaranteeing 800 sprays for a single Fogg bottle.

3. EXECUTIVE SUMMARY: The deodorant market in India is around Rs 2300 C r and is growing at 17-18% per annum for past three years  The Indian deodorant market has more than 500 deodorant brands. Indian fragrance Market is growing with a CAGR of 32.71% from last five years and is projected to get more than ten times by the year 2021 due to rising personal care, brand awareness, increasing disposable income, growing demand in middle class people and affordable price of fragrance in the form of mass perfumes and deodorants. MISSION STATEMENT : To exceed the customer satisfaction extending its new product and category line by fulfilling the personal grooming and hygiene needs of the consumers by providing innovative quality and value for money products. The employees will be trained with exceptional customer service and will be empowered to make decisions based on the business philosophies.

4. FUTURE PLANS Planning: The plans for the first financial year is to establish a consumer base in all the categories of our products and to look into the main objective of satisfying the existing users. Also we would develop this extensions as a Brand by running advertising campaigns which would be conceived by Ad Agency with reference to the Marketing team. Revenue maximization : Another 8 fold revenue. Market share – 25% in the next 12 quarters. Research & Development- Increasing budgets for the operational efficiency.

5. MARKETING STRATEGY MARKETING STRATEGY IS - CUSTOMER FOCUS WITH OPERATIONAL EFFICIENCY AND CUSTOMER INTIMACY

6. STP SEGMENTATION Segmented the people who are willing to try new products. People with sensitive skin Demographic Gender - Men(Hair gel and deodorant cream)Women(Deodorant cream) Income - Middle to upper middle class Young audience, age 16-30 Psychographic Outdoor oriented Fashion oriented and friendly

7. TARGETING A body spray without gas which hence lasts longer Skin sensitive products, ammonia free Focus on further uses of a deodorant Different packaging for the ease of usage Extension in personal hygienic products with more innovation Line extension after proper market surveys

8. High on confidence brand, with a common notion of getting more for less Innovative products Less for more products Non gaseous, but liquid products Approachability (made for the regular youngsters) Keeps customers engaged with new fragrances as it offers wide variety of deodorants. Each fragrance has a unique character and is marketed uniquely Adventurous and catchy marketing

9. THE SMELL CUTURE IS EVOLVING Deodorant Industry Overview Has come up very fast in the FMCG category Fastest growing product in the FMCG category FMCG growth rate: 9% Deodorant industry growth rate: 16% India is the fastest growing deodorant market in the world

10. MARKET SHARE OF BRAND The maker of  Fogg  deodorants crossed Rs 500 crore in turnover in  FY15. Fogg is leading in deodorant category(with 17.4% market share ) followed by Park Avenue(8%) and Wild Stone(6%). 10X

11. PRODUCT CATEGORY EXTENSION LINE EXTENSION FOGG HAIR GEL Price – Rs.60 (50ml) Place – Urban market Tag Line - Add Style to your hair Packaging – The colour of gel inside the pack will be of sky blue. Transparent tube type and small plastic containers. USP – Moisture Free and Prevents Hair fall. FOGG DEODORANT CREAM Price : Rs.240(50ml) Place – Urban elite market Tag Line – When only best will do Packaging – Small , pot-like container, which allows the user to dip their fingers in and apply the substance with hand. USP –Ammonia Free and Lasts 3X longer.

12. PRICING

13. CHANNEL DESIGN

14. Distribution network spanning 0.75mn points of sale 5,000 wholesalers with a 500 strong sales force. Margins provided to wholesalers would be between 18% and 25% and for retailers it’ll be around 22%. MARKETING CHANNELS: A marketing channel is a set of practices or activities necessary to transfer the ownership of goods, and to move goods, from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process.

15. CHANNEL OF DISTRIBUTION Two level Channel -- (Producers  Wholesalers  Retailers  Customer) It is also known as traditional or normal channel of distribution. This channel is useful for small producers for small means ADVANTAGES OF THIS CHANNEL Cost Saving Time Saving Customer Convenience Customers can buy in small quantities Resellers help in boosting sales Resellers provide valuable information

16. THINGS TO IMPROVE DISTRIBUTION PROCESS 1. Make it a priority.  Devote resources to channel management – preferably at least one dedicated manager whose sole responsibility is to manage those relationships and build the marketing programs to drive revenue through the channel. 2. Develop measurements and track performance.   Know who your best sales performers are at each point in the channel. By tracking orders, volume and total revenue at each point, you can identify and improve underperforming partners and keep your top performers happy. 3. Communicate!  Build relationships at each step of your channel. If you’re not talking with your partners, how can you identify problems and solve them? And how will you know whether your programs are working and how to make them better? 4. Drive revenue through the channel.   Take ownership of the marketing campaigns that will drive revenue at all levels through the channel. Your partners have to focus on building their own customer base, not marketing just your product (remember that you’re not the only solution they offer). 5. Avoid pricing conflicts.  Establish a pricing strategy and stick to it. If channel conflict arises because of price, attempt to resolve it ASAP. 6. Address conflicts swiftly.  Since distrust and channel conflict is common, it’s important to address problems quickly to find a solution.

17. IMC Objective : The major marketing objectives would be to successfully launch itself from the deodorant market to further new markets, gaining market share to establish itself as a major player in the market, and differentiating itself to occupy a unique position.

18. Communication Channels Television and Print  Social media Word-of-mouth   Creativity in integrating message across all media.  Television commercials .   Creative slogans and tag lines Out-of-home advertising can trigger a campaign through innovating the way it reaches to the customer. One example could be. They could use rubber deo bottles as handles in metros. They could put creative posters on the mall walls so that it subconsciously penetrates into the customers mind.

19. PRIMARY DATA

20. SECONDARY DATA According to Euromonitor International data Deodorants current retail value sales rise by 27% to reach INR31 billion in 2015 Deodorant pumps continues to drive sales within deodorants, registering current retail value growth of 54% in 2015 Average current unit prices within deodorant sprays increase by 6% in 2015 Vini Cosmetics continues to lead deodorants in 2015, recording a value share of 17% Deodorants has a projected forecast period constant 2015 price value CAGR of 21%, with sales set to reach INR78 billion by 2020 INR million 2012 2013 2014 2015 Deodorant Pumps  1,203.5 2,486.1 4,212.9 6,486.8 Deodorant Roll-Ons  157.1 177.8 198.1 219.8 Deodorant Sprays  13,840.4 16,806.3 19,612.4 23,781.5 Deodorant Wipes  4.1 5.0 6.1 7.4 Deodorants  15,205.1 19,475.3 24,029.5 30,495.4 Sales of Deodorants by Category: Value 2012-2015

21. According to the survey INR million 2016 2017 2018 2019 2020 Deodorant Pumps  9,368.0 13,374.7 18,400.7 24,876.7 33,430.6 Deodorant Roll-Ons  238.5 258.8 281.8 307.1 335.2 Deodorant Sprays  27,027.5 30,834.4 34,838.0 39,448.3 44,548.6 Deodorant Wipes  8.4 9.4 10.5 11.6 12.8 Deodorants  36,642.5 44,477.4 53,531.0 64,643.7 78,327.2 Forecast Sales of Deodorants by Category: Value 2016-2020

22. MARKET SHARE FOGG 7.9 12.4 16.6 17.4 20%

23. NOVELTIES ALCOHOL FREE UNDERARM WHITENING DIFFERENT SKU’S (TO CARRY FOR WORK ETC.) ROLL ONS ANTI PERSPIRANTS TALCUM POWDERS MORE BTL ACTIVITES SERUM

24. RECOMMENDATIONS

25. These brands should have the potential to lure more target customers Need of strong market recognition which can be built only through strong brand and product promotion. Preparation to fight against the competitors. They should enhance distribution channels Increase advertisements, and try to leverage their product’s fragrance which is different from the earlier series of ‘Freshness deodorant’. To maximize market share, we’ll have to maximize revenue by acquiring either new customers or by hijacking your competitor’s customers. Changing our target segment would not be feasible as we’ve already created a deep brand image within the mind of the customers. Rural FMCG market. (Growth) Smaller SKUs priced at around Rs. 99/-.

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