Indian Dish Wash Category

Market Snapshot

• Rs 400 to 450 crores branded dishwash category
• As per latest reports, dish care category is estimated to be around Rs. 1200, while the branded dishwash market is roughly 40%
• The percapita consumption of this category (value terms) in India is hardly Rs 4 while in UK it is Rs 150. There is long way to go for this category
• Dishwash bar category is huge: it's more than Rs 300-crore market churning out more than 1.2 lakh tonnes a year and growing at a CAGR of 20 per cent in the last five years. The dishwash powders market, however, is shrinking — it has fallen by 50 per cent from 3 lakh tonnes five years ago (2003 data)
• As per CII - The total size of the dish wash market, estimated at Rs 4.4 bn has recorded a negative growth of 3 per cent in 2003-04. Over 60 per cent of the market is dominated by bars, while dish wash powders accounts for 32 per cent. The penetration levels are, however, still very low.

Product Categories

1. Powder – outdated category. The players in this category are Vim, Sabena, Odopic
2. Bar – largest category (60 to 70%). Vim has created the dishwash bar category in 1993. Till that time urban households used dishwash powders. The bar offered many advantages to the homemaker over the powder which was messy and uneconomical. Since then Vim Bar ruled the dishwash market. The other brands present in this category are Nirma Clean Dish Wash, Nima Bartan Bar, Odopic, Exo, Private Labels (Spencer’s DishWash Bar etc)
3. Liquid (Dish Wash Concentrate) – evolving category, with Pril being the leader. Other players are Vim, Godrej Dish Wash, Godrej Glossy, Teepol, Private Labels (Spencer’s etc), some imported brands Good Maid
4. Dish Washing Paste (packed in a cup) – Axion and some imported brands like Budget (from the portfolio of Good Maid corp. SDN. BHD, Malasia)

Market/ Consumer Trends

• The trend has shifted from Powder to Bars and now its moving to Liquid dishwash
• The emerging category in dishwash market is the liquid dishwash. Pril from Henkel commands this market with a share of 70%. The other players are Vim, Teepol, Godrej
• Marketers beleive that over a period of time, consumers will shift to Liquid since it offers more economy and convenience. But there is a problem with this category: Liquid dishwash is targeted at urban upper middle class home makers and here the users are home maids rather than home makers. It will be difficult to teach house maids to use the liquid efficiently. But if you see recently there was a article in Business Line – Influence Sells, where Henkel has targeted the maids as they are influencer like a mechanic for car spare parts. Henkel undertook an intensive study, which involved talking to housewives about their dish-washing patterns and learnt that as products like Pril were expensive, they were reluctant to give it to maid servants to use and preferred scourers with an abrasive action
• While dishwash liquids do work efficiently against grease, consumers prefer scourers with an abrasive action to clean grease
• There is high sale of 400gm Vim in first week as compared to rest of weeks, as the wife has disposable income at the start of the monthly. Subsequently she may go for 200 or 100 gm as per requirement

Brand Details

Vim Journey

• Vim was initially positioned on the lemon content in the bar. The brand using its ingredients positioned itself on its Stain Removing benefit. The positioning was consistent through these years
• The brand changed its form, added new features and expanded the market to stay on the growth path. To reinforce the stain removing property , the brand repositioned in 2003 by introducing the Stain Cutter feature
• The company was trying to extend the brand from "Dish wash" to Kitchen Care market. The brand also created much inroads into the market with its Vim Challenge campaign which directly compared the brand with competition.
  Although Vim has launched its own variant, it failed to create an impact and was withdrawn in 2003
• 2006 saw a relaunch of Vim drop with Actor Madhavan endorsing the brand.
  To stay on top of this highly competitive market, Vim has invested not only in promotion but also in product improvements. In 2005, the brand took on the most problematic aspect of this category i.e the dishwash bar getting soggy. The reason is that these bars are kept near the sink and is always in contact with water and with in days, the bar gets messy. Vim then launched one of the most customer centric innovation at that time: Poly coated Vim bar. The coating prevented the bar from becoming soggy and hence the brand became more economical. This innovation is a testimony to HLL's ability to understand Indian consumer and translate that to product improvements
• Vim bar is strong in Maharashtra, Punjab, Delhi, Kolkata and Kerala

Pril

• HENKEL Spic India Ltd extended its dishwash liquid brand, Pril, the market leader in the category, to a dishwash bar in 2003
• 2006 saw a relaunch of Vim drop with Actor Madhavan endorsing the brand. Pril has countered the campaign using Shobana as the brand ambassador
• The bar has been designed with rounded edges so that use of the bar from its centre does not form a "mini pit" during use. Pril has been launched in three variants —vinegar + lime, vinegar + orange, vinegar + wildberry
• Henkel roped in Chef Sanjeev Kapoor to endorse the brand in past

Exo

• Exo brand has effectively differentiated itself by using its anti-bacterial property and uses the ingredient Trichlozene to reinforce the germ fighting positioning
• South centric
• Exo Dish Wash is also available as a liquid cleaner. Exo Dish Wash Liquid is the only anti bacterial dish wash liquid with Cyclozan as the active ingredient. Convenient and handy, this is ideal for stainless steel, crockery, cutlery and non-stick kitchen ware

Sabena

• The powder segment is dominated by Sabeena brand from ECOF. Sabena is very strong in the southern market and has a market share of over 65%
• The brand, which claims a market share of 65 per cent in the South, sells 4,800 tonnes of Sabena a month. One kg of powder sells for Rs 10 – strong in south only in 75000 retail outlets in South
  

Glossy: Specialized liquid cleaner for expensive and special utensils like glassware, non-stick ware, crockery, etc. It is meant to be used for the special kitchenware that requires gentle care. Glossy, with 'shine advancers' gives a sparkling shine to the utensils after cleaning, increasing its appeal on kitchen shelves. The formulation also ensures that there is no damage to the kitchenware

Category Substitute: In rural areas, Ash is used to clean utensils and the biggest hurdle in rural penetration of this category is to educate the rural folks to use Soap instead of ash. Still the penetration of branded dishwash category is low and has a high scope

Promotional Schemes in Past in Dish Wash Category

• Buy Vim bar and see under its wrapper. You could win a car, a house and some such great unbelievable prices, something that is unbelievable. And when one see the wrapper, there was an offer of 50 paisa off on next Vim bar you purchase
• Vim Gold Bar – Gold Free
• 45 g Meswak toothpaste free on purchase of 2 Odopic bars of 400 g
• 25000 wroth of insurance for maids

Pricing

• Bars are typically for Rs. 4 for 100 gm
• Liquid Dish Wash for Rs. 45 to 55 for 500ml (Private Labels are cheaper and run attractive schemes like 2+1 with MRP of Rs. 45). But there are some imported brands like Good Maid Bio is for Rs. 150 for 1000ml. Vim liquid comes in 150 and 225 gms for Rs. 15 and 25 respectively
• Vim powder is for Rs. 25 for 1Kg
• In dish washing paste, Budget is Rs. 50 for 400gm and Axion is for Rs. 24 for 200 gms (approx Rs. 12 per 100 gms). This category is priced premium to regular Dishwash bars

Manufacturing Facilities

• Axion is manufactured by Henkel India in Pondicherry (though it’s a trademark of colgate Palmolive)
• Budget is manufactured in Malasia (imported in India)
• Pril is from Henkel and is manufactured in Chennai
• Teepol is manufactured by Reckit Benkiser in Baddi, Solan
• Spencer Liquid is also manufactured in Chennai
• Vim is manufactured in Mumbai

Indian Ice Cream Market

Industry Snapshot

• Market Size - 800 Crores
• Ice Cream market is growing at 10 to 12%
• Ice creams traditionally are a low volume business

Players

1. Amul - Market Leader with share of 36%
2. HLL - Kwality Walls - 2nd biggest player
3. Mother Diary
4. Arun - Chennai Based Hatsun Agro Product
5. Metro Daily - Kolkata based
6. Aavin - Tamil Nadu based

Recent Happenings

1. HLL's Moo (Nutritional Ice Cream) - targeted at Kids

2. As Mother Dairy has competency cold chain distribution as they have Safal brand ( frozen peas, corn, juices and mixed vegetables) under their portfolio, they have expanded from Delhi to Bangalore, Hyderabad, Chennai, Punjab, Rajasthan, UP & Uttaranchal. Due to this and other brand extensions in the pipeline, Mother Diary expects their turnover by 20% this year over their present size of Rs. 2800 Rs. Cr.

3. Aavin, the cooperative sector milk and dairy products marketer in Tamil Nadu, has launched a low sugar variant of ice creams in the market. According to an official press release, the ice cream `without added sugar' is ideal for diabetics and safe for children and mothers-to-be. This variant has just 80 calories and has 16 mg of sweetener against 8,000 mg of sugar in the traditional ice creams. The ice cream conforms to the US and domestic food regulations,
the release said

4. GCMMF launched its pro-biotic ice creams that have live beneficial culture that confer beneficial health effects such as improving immunity and digestion and strengthening bones. It also introduced a sugar-free ice cream range and is planning a Web site on ice creams. There two ranges are - Amul Prolife and Amul Sugarfree. According to Mr. R.S. Sodhi, GM Marketing, Amul, Amul hopes to build the pro-biotic range into a Rs 100- crore brand within the next two-
three years. While Amul had earlier tested this market segment through the launch of an isabgol-enriched ice cream, this is company's first full-fledged attempt at capturing a good share of the pro-biotic enriched foods market in India. Both the brands are available in 125 ml (Rs 15), 500 ml and 1.25 litre (Rs 120) packs in five flavours, vanilla with chocolate sauce, strawberry, chocolate, shahi anjir and fresh litchi. On the retail front, it intends to hike its Amul parlours from 600 to 10,000 by 2010

5. Arun Ice Creams, the ice cream brand from Hatsun Agro Product Ltd, is launching a new range of ice cream outlets, Arun Ice Creams Unlimited. Hatsun Agro, which is the largest private dairy in India, plans to make available its range of dairy products at the conventional Arun ice cream outlets operated through franchisees. This network will also be expanded. The new range of outlets will sell ice cream by the scoop, `aggressively priced' at Rs 20 a scoop of 100 gm, Mr Chandramogan said. A feature of these parlours will be the wide selection of flavours, over 25 flavours with five new substituted for the existing ones
each month to ensure more variety. The company is investing over Rs 15 lakh in each of these outlets.

Few Brands/ Target Consumers

1. YOuth Centric - Chillz

2. Kids - Moo

3. Teenagers - Cornetto

4. Health COnscious - Amul Sugarfree & ProLife

This summer mother diary targeted children with the baseline — `Jagaye Andar ka Bandar' while it is luring adults with the message `Give In'.

Interesting piece of information: Hawking is not allowed in Mumbai which makes 1/3rd of business for HLL. Rest is contributed by retail outlets

Future of Ice Cream Market in India

Ice Cream market will expand with increase in number of malls - HLL has been increasing their ice cream outlets - Swirl. Few years consumers use to go out for walk after dinner and use to buy ice creams from hawkers. But now consumer who often visit malls for entertainment
prefer to buy ice creams during different times of the day as it is visible upfront and feel like spending Rs. 50 for that tasty chocolate swirl with cake and nuts. As marketers are understanding the different needs of consumers, be it health conscious people, kids, youngsters, young etc, and coming up with products specific for them... with portfolio of flavors, consumer today has plethora of options at hand to choose from and therefore high probability of buying one more scoop of ice cream. Also with increasing wallet size and innovative modern retail formats, it has definately given a philip to the ice cream industry in India.

FMCG Marketers Ice Cream Survey - Which Ice Cream do you consume & Why?

INDIAN SKIN CARE & ANTI AGEING CATEGORY: LAUNCH of P&G’s OLAY

Market Size

• Indian skincare market ~ Rs 2,100 crore
• Skincare moisturiser market ~ Rs 1,600 crore
• Premium Skincare Market ~ 450 crore
• Skincare market has been steadily growing at 16 per cent as of last year
• Anti-Ageing Market ~ 60 crore

Trends

• Anti-ageing solutions are nascent but gaining ground
• Fastest growing segment in the skincare market (approximately 3 per cent of the overall skin category, it has doubled in the last three years)
• Development of the skincare category in India
• Growing consumer awareness

Brands & Companies

• HUL – Pond’s Age Miracle Range
• P&G – Olay Total Effects: Fighting the ‘7 signs of ageing’ (lines and wrinkles, sagging, uneven skin tone, age spots, pores, dullness and dryness). Olay is a $2-billion brand.
• L’Oreal
• Garnier: In India from last decade

Target Consumer: Indian Women - looking for one product that will help her stay young and beautiful

P&G’s Strategy: Launching Olay in this Anti-Ageing category is a strategy to tap into the premium segment before its goes mass with its Olay brand. With the launch of the Olay range in India, P&G enters the skincare category. Apart from anti-ageing, Olay will make its presence felt in the whitening, moisturising, and cleansing products segments as well. According to Mr. Vohra, P&G has a large portfolio of brands globally and is constantly evaluating the right propositions for the Indian consumer. Currently P&G is focusing on existing categories and with the launch of the Olay range, P&G will continue to stay committed to meeting unmet consumer needs in India by bringing in the right brands and the right technologies from across the globe

Globally P&G’s personal care market is around $20 billion, of which $2 billion is contributed by Olay

Barriers: It is the working woman who is more conscious of the way she looks rather than the woman who stays at home. And in India that segment is still small, unlike the Chinese market where there is a high population of working women. To that extent, the brand might have its limitations in India

Brand Ambassadors: Apart from Sushmita Sen, other brand endorsers during the launch of the brand included successful professional women who have excelled in their respective fields. These were women such as Roopa Purshottam, Economist & Head, Future Trends (Future Group), fashion designer Anita Dongre and Tisca Chopra, TV anchor and actor, among other ‘real’ beauty icons who were roped in by P&G to speak about the virtues of the Olay brand during the launch.

Manufacturing: Just like the rest of the P&G brands, it will import Olay from its manufacturing unit in Thailand, which supplies to many other countries besides India. Although the brand is present in over 55 countries across the world, in the SAARC countries, Olay is not marketed by P&G.

Olay’s Market & Distribution: In India, the brand has been distributed and has been available in the grey market all this while. Now countering the grey market should be the top priority for the company. Building quick distribution to ensure availability of the brand will help in moving the products away from the grey market. As per Mr. Vohra, a part of the Olay range was available in select outlets through third party distributors or through the grey market. Today, with the launch of Olay, P&G will be offering the Indian consumer a full Olay experience and bringing in a range to meet her needs, which will now be widely and easily available at all nearby chemists and stores.

Pricing: Rs 599 for a 50 gm pump jar

Consumer Activation: Olay counters at cosmetics stores with counselling by expert beauty consultants at departmental stores and large modern retail outlets and further education on skincare and Olay

Source: Hindu Business Line - 30th Aug, 2007