BUSINESS
case_study_2015_FCBUlka

case_study_2015_FCBUlka - Set Wet Case Study The beauty and...

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Set Wet Case Study The beauty and fragrance industry The use of beauty and personal care products is no longer limited to urban India. Awareness of such products has strongly increased due to television commercials, celebrity endorsements, social media campaigns and print media. This has helped to drive the growth of beauty and personal care in India during 2014. Premium brands are growing faster than mass brands, especially with increased disposable incomes and higher awareness Premiumisation continued to drive the growth of beauty and personal care in India in 2014. Overall, premium beauty and personal care increased by 23% in current value terms in 2014. This was a trend which was observed across last year, when premium beauty and personal care increased by a current value CAGR of 25%. This growth was driven by urban consumers in the age group of 25-30 and having higher annual disposable incomes. Deodorants in India Growth in deodorant pump format Deodorant pumps (No gas deodorants led by Fogg) displayed remarkable value growth in 2014, and thus drove growth in overall deodorants. As the category is driven by impulse purchase and low brand loyalty, manufacturers are launching variants based on fragrances to retain customer. Deodorant pumps saw the fastest growth of 70% in value terms in 2014. This can be attributed to the claim of pumps to deliver more sprays per can and a long-lasting fragrance compared with aerosol-based sprays (Gas filled deodorants, led by Axe). This functional aspect, as well as value for money, acted as a good differentiation factor in the crowded and cluttered deodorants category. Rising disposable income causing shift from talc usage The value growth of deodorants was 23% in 2014. This was mainly due to rising disposable incomes amongst consumers in the age group 20-30, who opt for deodorants over talcum powder to tackle body odour. Growth drivers such as faster rural penetration and users buying multiple brands or variants for different occasions also drove growth in this category. Variants drive impulse purchase Fragrance-based variants are popular because consumers prefer deodorant as a cheaper alternative to fragrance, and apply it over their clothing rather than for its intended use, which is as a body spray.
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Table 1 Sales of Deodorants by Category: Value 2009-2014 INR million 2009 2010 2011 2012 2013 2014 Deodorant Creams (not in India) - - - - - - Deodorant Pumps (led by Fogg) - - - 1,203.5 2,486.1 4,212.9 Deodorant Roll-Ons (brought in by Rexona) 96.1 108.6 132.7 157.1 177.8 198.1 Deodorant Sprays (led by Axe) 5,576.8 7,821.0 11,153.0 13,840.4 16,806.3 19,612.4 Deodorant Sticks (not in India) - - - - - - Deodorant Wipes (brought in by Fresh Ones) - - - 4.1 5.0 6.1 Deodorants 5,672.9 7,929.6 11,285.7 15,205.1 19,475.3 24,029.5 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 2 Sales of Deodorants by Category: % Value Growth 2009-2014 % current value growth 2013/14 2009-14 CAGR 2009/14 Total Deodorant Creams (not in India) - - - Deodorant Pumps (led by Fogg) 69.5 - - Deodorant Roll-Ons (brought in by Rexona) 11.4 15.6 106.0 Deodorant Sprays (led by Axe) 16.7 28.6 251.7 Deodorant Sticks (not in India) - - -
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  • Winter '16
  • Random , Brand, Hindustan Unilever, India Pvt, Avon Beauty Products India Pvt Ltd

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