Changing Dynamics in the Shampoo Market in India | Marketing Management Case Studies

Details

Case Code : CLMM039
Publication date : 2009
Subject : Marketing Management
Industry : FMCG
Length : 04 Pages
Price : Rs. 100

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Key words:

Shampoo market, hair care, fast moving consumer goods, market share, pricing environment, price war, India, Hindustan Unilever Ltd., Procter & Gamble, CavinKare, Dabur, Godrej, Marico, ITC, Garnier, Sunsilk, Clinic Plus, Clinic All Clear, Pantene, Head & Shoulders, Chik, Nyle, Ayur, Vatika, Rejoice, Dove, bottom-of-pyramid, segmentation, differentiation, relaunch

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

The shampoo market in India has changed significantly since the 1960s when it first became a lifestyle product in urban homes. As of 2008, it was a very competitive market with dominant players such as Hindustan Unilever Ltd. and Procter & Gamble Company. Analysts expect competition in the market to intensify further with the entry of companies such as ITC Ltd. The market is marked by intense competition from domestic as well as multinational companies. The changing dynamics in the industry coupled with comparatively low penetration rates offer the players in this market the opportunity to grow in both the top and bottom ends of the market, according to analysts.

Issues:

  » Market analysis
  » Competition
  » Market leader strategy
  » Market entry strategy

Introduction

The shampoo market in India was estimated at Rs. 21.41 billion per annum as of February 2008, growing annually at a rate of 14.5 percent. The market was dominated by India’s largest fast moving consumer goods company, Hindustan Unilever Ltd. (HUL), and one of the world's largest consumer goods companies, Procter & Gamble Company (P&G)...

Questions for Discussion:

1. Critically analyze the shampoo market in India. Discuss how the market evolved over the years. What, according to you, are the reasons for the changes happening in the shampoo market?

2. In the changing scenario, what should a company like HUL do to sustain its leadership position in the shampoo market? What should the smaller players do?

3. ITC is planning to enter the shampoo market in India. According to you, what strategy should it adopt to emerge as a leading player in the market?