Thursday, 8 March 2012

India's first hair "CLINIC"


In India, you can find the families who don't have voter card and who didn't see polling stations, but you can't find the families who are not using HUL product. Actually it owned by a Anglo-Dutch company called UNILEVER, which is having 52% stake in HUL. Can you believe Indian were used soaps in 1888?. Yes, they were used, which were made by this successful company called UNILEVER and they were shipped the soaps to Kolkata harbor. It was started as HUL in India in 1933 by Lever Brothers India ltd. In 1956 it became as Hindustan lever Ltd by merger of Lever Ltd, Hindustan Vanaspati Mfg and united traders Ltd. It is a Mumbai based company.It is the leader of FMCG segment in India and it has most efficient and effective distribution channels. it has around 20 lack outlets.


Now our topic is about a shampoo which is having largest market share, Clinic Plus. before that we will see about some stats about shampoo industry.It is 2500-3000 Cr. business in India.Mostly 3 types of shampoos, cosmetic, herbal and anti-dandruff. Before introduction of this shampoos in India 100%( my opinion) of the people were using their toilet soaps for their hair also and now also 50% of the people are using toilet soaps .In this segment major players are HUL and P&G only. Products are Sunsilk, Clinicplus, Dove, Pantene and H&S. In this industry a storm came when P&G introduction of Pantene in Indian market.
My first shampoo is Clinic Plus only, because HUL only having the distribution channels that can give their products to the rural people in 1990's.It was introduced in 1971 as family health shampoo( for mother and daughters) Now first we will discuss about STP of this product.


STP:
       When they introduced the product, they have consider women and their daughters. It was purely a female concentrated product. it was released in only one type of cosmetic which cleans hair and give shining. That time people couldn't differentiated the product and that's why men also used this product.It had been continued to rural market until almost 2000. Even i am also not an exception from this group.
      They were mainly concentrated upper middle class and urban people( SEC A, B, C &D) and that too younger people. Now it is shifted to upper class in rural( SEC R1, R2 and R3) and middle class also and this happened because of increase in customer knowledge about products and availability of products.Since it is having the largest distribution network, it is easily reaching rural market also.
    It positioned itself as a family shampoo and cost-benefit product.For rural people it the only name they know in shampoos and it is the big advantage for them. it has some drawbacks like when ever they ask for shampoo shopkeeper will give what ever is there in his shop and customers also take whatever they give. they won't insist on the particular product.

4Ps:



     First P, we will take price, this is one of the product which is available at large range of price from 50ps-90rupee bottle. Actually its pricing strategy was one of the key factor of success, especially in the rural market
because rural people can't spend so much of their pocket share to shampoo. It is available from 25ml pack -200ml pack.
   Product is our next P. When you come to the product it is absolutely good and it is available in 4-5 types and it has distinctive features of 5 in 1: Strengthen weak hair, prevent hair breakage, softens rough dry hair, shine for thick and healthy hair, and contains anti-dandruff ingredient. No other product is providing this kind of features in one pack.
  Our next p is promotion. When it comes to the promotions, this was their first commercial



They were aired a cartoon commercial with a tune called chulbuli. In that ad you can see a girl(kid) with long hair and they were showing a village king of thing with cows and bulls. she was playing with dust and finnaly she came to home her mother asked her to take bath and clean hair.it was targeted their TG and it was specified their key features in it( my opinion). The tune was so attractive and it was attractive many housewives and their children. It was succeed. 


But when it comes to the latest ads:http://www.youtube.com/watch?v=Vh2KtN_kr1A
If you watch the both commercials. both were concentrated on households and their daughters and they specified the key features by mentioning about their strong and long hair and now they have anti-dandruff also they were mentioned about types also. But it has been not changing and people, especially forgot about this product because it was not come up with new generation tastes and their needs.they have been using discount strategies like buy one get one free and bubble pack.
  Last P is place. it is available in all kinds of retail shops and it has the advantage of effective and efficient distribution channel.

SWOT:
    The strengths of the product is mainly the awareness. In India almost for every 5 people 3 people will tell the CLINICPLUS name when you the question "which shampoo did you use first time in your life". That much of awareness this product is having. Distribution network it is having and variability of the product in prices and features.
    The main weakness of the product is its traditional looking. It is the main drawback because whenever we see the CLINICPLUS we feel that it is old fashioned shampoo. Package is also weakness or drawback. It has been having same kind of package which is having mother and daughter(family).
   Since it is having great awareness among rural market it can hold the market by offering different kind of product varieties and new fashioned package which can attract upper middle class in urban areas also.
   Threats are mainly coming from the competitors and their distribution networks and their variety of product features. More specific on their segments which will divide the family into men and women, and young and old. this is the major threat posed by the competitors. Anyhow still it is the market leader in its segment but its market share is not increasing as its competitors'(chik from cavincar). When you take BCG matrix it comes under cows for HUL.

In my way if it won't come out of traditional way of package and promotions, it will no more a market leader in its segment.   what do you say?

-Bharath