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A REPORT ON An Analysis of Consumer Behaviour in the Baby Personal Care products market

BY SAMARTH BAJORIA N . L. DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

A REPORT ON AN ANALYSIS OF CONSUMER BEHAVIOUR IN THE BABY PERSONAL CARE PRODUCTS MARKET.

BY SAMARTH BAJORIA

A REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS OF MBA PROGRAM.

DISTRIBUTION LIST: Mr. SAUMEN BHATACHARJEE, SENIOR BRAND EXECUTIVE, EMAMI Ltd.

ACKNOWLEDGEMENTS I would like to take this opportunity to thank all the people who have helped me and given me their wholehearted support while doing this project. I would like to thank Mr.R.S. Agarwal, Chairman Emami Group for giving me this opportunity to work with Emami Ltd., it has been an excellent and a learning experience. I would also like to thank my company guide, Mr. Saumen Bhatacharjee, for his excellent guidance without which this project would not have taken fruit. Even with his hectic schedule the time, patience and guidance that he gave me were priceless. I would again like to thank my faculty guide, Miss Priyam Kabra, for her invaluable support and guidance during the course of this project. Thank you for showing me the right path. I would also like to take this opportunity to thank all other people whom I had contact with in the course of this project. The entire sales team of Emami for showing me the ropes, the administrators of AMRI hospitals for the support that they showed me, I offer all a heartfelt Thanks. SAMARTH BAJORIA .

TABLE OF CONTENTS

Acknowledgements List of illustrations Snap shot of the plan Competitors Analysis Abstract 1. Introduction Purpose or Scope, and Limitations. Sources and methods. 2. 3. Industrial analysis. Company analysis. 22 22

4 6 7-17 18-19 20-21 22

23-27 28-32 33 33 34 35 36-53 54-56 57-60 61-63 64

4. Objective of the study. 5. Description of activities. Experimental work. Data collection. 6. Analysis. 7. Conclusions & Recommendations. 8. Appendix. 9. Questionnaire 10. References.

LIST OF ILLUSTRATIONS

1. BRAND AWARENESS 2. REASONS FOR USAGE 3. PRODUCT USAGE 4. REASONS FOR USAGE 4.1 SOAP 4.2 POWDER 4.3 SHAMPOO 4.4 CREAM 4.5 HAIR OIL 4.6 LOTION 4.7 BABY OIL 5. SPAN OF USAGE 6. FACTORS INFLUENCING BUYING DECISION 7. IMPORTANCE OF PRICE 8. AMOUNT OF PREMIUM 9. VIABILITY OF NEW PRODUCT 10. INDIVIDUAL SPAN OF USAGE

37 39 40

42 42 43 44 44 45 45 49 50 51 52 53 APPENDIX

SNAP SHOT OF EMAMIS PLAN ON BABY PERSONEL CARE RANGE There was a time when the term "Baby Brand" or "shopping" for a new-born was almost unheard of, in India. Today, our little angels not only seem to occupy the mind space of the largest FMCG Brands, they're also beginning to occupy "floor space" in every Mall and Departmental Store across India. And guess what? With the wide range of Baby Care Products offered by these Baby Brands, their proud moms and dads seem to be more excited than ever! It's little surprise these days to turn our Televisions on and find tons of Baby Brands' commercials highlighting the benefits of a certain Baby Hair Oil Brand, Baby Diaper Brand, Baby Nappies Brand, Baby Soap Brand, Baby Shampoo Brand, Baby Skin Care Brand or Baby Food Brand! Top 10 Indian Baby brands featuring on TV in 2005 (Source: TVAdEx 2005) Rank 1 2 3 4 5 6 7 8 9 10 Brands Huggies Dry Johnson Baby Powder Johnson Baby oil Johnson Baby Johnson Baby Milk Soap Johnson Baby Milk Lotion Johnson Baby Nappy Pad Himani Sonachandi Healthy Dabur Lal Tel Johnson Baby Cream % Share 19 12 9 9 8 8 7 7 6 6

The Rs 1,600-crore Kolkata-based Emami Group is readying itself for a fullfledged foray into the baby care segment in India which is estimated at

550crores and has an annual growth rate of 8%. In the next couple of months, the group will launch a range of baby products in the soap, oil and talc segment.

Emami will be taking on Johnson & Johnson (J&J) in a market which has long been dominated by J&J, but has ample scope for other players to create national brands in the baby care segment. To bolster its launch, Emami is looking at a brand endorser for the baby care range. The celebrity, according to Emami Group director Aditya Agarwal, will be finalized shortly.

The launching of the baby care range will be done before the festive season. It will be a complete range, from soaps, talc to lotions. Emami has launched the Himani Sona Chandi Healthy & Fair Baby Ayurvedic which is currently doing well in the market. The maximum growth rate is in baby lotion (12%) and baby oil (10%). More over the baby oil market size is Rs 160cr and only 47% is been captured by J&J and the rest 53% by the other companies. Thus EMAMI wants to take away some portion of the market share from the existing players by launching its baby care range in the market. On the other hand baby lotion has a market size of Rs 25cr in which the share of J&J is 88%, thus leaving a mere 12% market share to be captured by other companies. So currently the companys focus is on baby oil which has a huge percentage of market share The presence of media is heavily dominated by J&J with more than 80% SOE. EMAMI is trying to fill up the need gap by introducing all the baby range of products free of harsh chemicals such as mineral oil , triclosan, LLP, propylene glycol which is used by other competitive companies. These chemicals are really harmful for babies health and thus affect the skin of babies. As per the research done by EMAMI most of the companies use harsh chemicals which really affect the skin of the babies. Thus in order to reduce

this harmful effect on babies the company is launching an entire range of ayurvedic baby care product, in the market.

The 5Ps strategy are: As per the PRODUCT is concerned it will comprise of oil, soap, powder, cream and lotion which will be a herbal product and will compromise of gold, silver, saffron, and honey along with other herbs. The POSITIONING of the product will be completely safe and herbal baby products without any harsh chemicals as compared to other companies. The PRICE of the brand has been either kept at par with J&J or is lower than that by giving promotional offer or discounts in order to capture the market. The PLACEMENT for the product will be mainly through chemist and general stores, super markets like Big Bazaar etc. The PROMOTION for the range will be done by the company and the brand ambassador for the range will be renowned film actress, Madhuri Dixit as she is popularly known status as celebrity mother. So with all the strategies keeping in mind the company decided to launch the baby range in the market ,but before actually launching the products the company decided for pre launch activities and a state launch activity in Karnataka.so a detail analysis for the same has been provided below. The pre launch activity will be carried out across 10 cities in West Bengal, Uttar Pradesh, Maharashtra and Karnataka with a mix of big and medium cities. This pre launch activity will be done from door to door and In shop there by reaching 3000 household and thus getting their feedback about the product. The number of shops that will be targeted will be 130 and total

number of man days will be 1260. More over total cost for the in shop plan as well as door to door will be Rs 12.5 lacs. Apart from D2D and in shop plan there will be modern trade promotion which will take place in malls modern shops in Kolkata and Bangalore. The cost will be b/w Rs 1 to 1.50 lacs. The placement norms will be through general trade as well as through modern trade with more focus on malls and big bazaars as more than 50% stock for the product will be kept in such market. Products will be also sold through shop and small retail stores as more than 20% of such shops are been taken into consideration for selling of the products. As far as the marketing support is concerned the point of sales will be through display of posters, danglers, foams banners, cutouts, carry bags, table top dispensers. There will be BTL support which will include baby fairs, lectures on baby massage, interactive sessions on baby nutrition, sampling will be done through nursing homes and clinics, activity linked with media like radio etc. and it will be monitored on regular basis and a proper data base will be maintained. Under the ATL support the ads of baby oil, soap, and powder will be telecasted in regional channels. Ads and free sampling will be done through leading womens magazines. The pricing structure plays a very significant role for a product in the market as the price determines the demand for the product and whether it is perceived by the consumers or not in terms of the price paid and the quality of the product. More over the price of a newly launched product is dependent on the competitors pricing for the same type of product in that category. So one should really be careful on the pricing for the product. The price for EMAMI products will be same as the product for J&J , but some attractive promotional offers will be provided to its consumers either in terms of price or in terms of extra quantity in the same price. Under the baby oil range and baby Talc range pricing structure the ideal trade margin for oil is 16%, other trade schemes is 8%, the distribution margin is 5% and VAT applied to the oil is 4%(since it is an ayurvedic

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product) which is adopted by the company .Under the baby soap pricing structure the ideal trade margin is 12%, other trade schemes is 8%, the distribution margin is 5% and VAT will remain the same as it is an ayurvedic product. A snapshot of baby care category is as follows: The market size for massage oil is of Rs160cr with a growth rate of 10%. the major players in this segment is J&J(value: Rs 70cr) and Dabur.(value: Rs 50 cr) . The mkt size for powder is of Rs 135cr with a growth rate of 8.50%, major player in this segment is J&J with a market share of 93%.The market size for soap is estimated to be Rs 120cr and the major player is J&J who has captured the entire market in this segment with a market share of 86%. Currently EMAMI is in the market with the product name Sona Chandi

Healthy & Fair Baby Massage Oil which is the worlds first baby massage oil with additional benefit of fairness apart from health, and more over it is 100% vegetable oil with rare herbs. Now the company has realized a greater potential of baby care market and better opportunity of success with a complete launch of an entire baby care range, that will comprise of a pack which will include EMAMI Healthy and Fair herbal baby massage oil, baby powder and baby soap. All the product in the pack does not contain any harsh chemicals like Mineral oil, Parabens, Tricolsan etc in contrast with the products of other companies. These chemicals leave a harmful effect on the skin of the babies and there by gambling with the babies health. On the other hand all the product includes Gold, Silver, Saffron and Herbs that provides glowing fairer skin to the baby and along with that the olive and vitamins strengthens and nourishes bones and muscles of the baby. The main objective of the company is to test the product quality and their acceptability in the market. The Baby care market estimates at Rs 520cr and it is growing @ 7% p.a.. the major players in this market are J&J who has a staggering market share of

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75%+ , Wipro which has a market share of 7%, Marico, and Dabur. Thus EMAMI wants to tap the rest of the market which is not yet covered. The existing players are really very strong in the market and thus a frontal attack will be very difficult and expensive for the company. The products like baby oil, baby powder, baby soap have a large , attractive and established market there by the company can really earn good amount of revenue but on the other hand it is really difficult to establish and build the companies own equity in the market and due to competition the competitor will definitely respond to the newly launch product . more over there is huge amount of investment in order to sustain in the market. Before launching the product actually in the market the company wants to have a pre launch test for the product in the market. The product is segmented for moms of kids between 0-2 years, thereby is focusing on younger mothers with first born child, older mothers with second new born, mothers to be and grand Mothers who take care of babies. There are certain parameters that should be taken into consideration before launching the product: 1. The price for the pack is the main factor i.e. to compete in the current competitive market the company has to keep the price cheaper by 25% - 30% than its competitor. 2. 3. The distribution channel has to be very strong so that the product can reach to all the targeted places. The consumer should feel that the product is worth the price and thereby increasing the demand for the product in the market. 4. Since there is a monopolistic competition in the market the company should competitors. Since its a baby product the differentiation can be done by using funny characters in the product while packaging in contrast with the serious have a differentiated product as compared to its

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image of our close competitor J&J. Packaging should be in synch with brand personality of being vibrant, active, and enjoyable. More over the product can be positioned in the market as ayurvedic baby care since no harmful chemicals are used in the product. . The consumers in the market may be satisfied with the competitors product and it will be difficult for the company to switch the consumers to its newly launched product. Thus the company should come out with promotional offers for the first 5- 6 months to attract the consumers and there by capturing the market share. There should be professional as well as consumer programs at hospitals and clinics so that doctors and nurses will be well versed about the baby product and there by recommending the young mothers to use the baby oil and all other range of products. The company should invest in an entry strategy into baby care category under a new brand name that is aligned to long term vision.

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BABY RANGE EXTENSION LAUNCHES- AT A GLANCE

OIL Range Positioning Statement Proposition

TALC

SOAP

Completely safe & herbal baby products, without any harsh chemicals usually found in baby products, with the goodness of natural infredients and selected herbs. Herbal baby massage oil. Strong bones. Fair ang glowing skin. No harsh chemicals Olive and Almond for nourishment, strong bones and muscles. Gold, silver and saffron for fair and glowing complexion Saffron imparts fairness. Olive and almond provide nourishment and strengthen bones and muscles Rs 70( Rs 10 off)= Rs 60 for 100 ml. Rs 39(Rs 7 off)= Rs 32 for 50 ml Herbal baby powder .protection from germa and infection. Fair and glowing skin . no harsh chemicals Tulsi and jasad bhasma for projection from germs and infection. Gold, silver, honey and saffron for fair and glowing complexion.aloe vera provides all day freshness. Tulsi protects from germs . While Jasad Bhasma protect baby from all infection. Saffron and honey imparts fairness. Aloevera keeps baby fresh and happy Rs 35 for 100gm (50gm free) Rs 16 for 40 gm(10gm free) Herbal baby soap. Protection from germs and infection. . Fair and glowing skin . no harsh chemicals Tulsi and neem for protection from germs and infection. Gold, silver, honey and saffron for fair and glowing complexion.

Ingredients and claim

Benefits

Tulsi and neem provide protection from germs and infection. Saffron and honey impart fairness. Rs 27 (Rs 7 off)=Rs 20 for 75gm. Rs 6 for 25 gm

MRP& SKU

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The entire pricing structure, schemes & margin of the Competitors with respect to EMAMI.
BRA ND J&J PRO DUC T SOAP SKU 75gm 50gm 100gm 150gm 200gm 100gm 50gm 500ml 200ml 100ml 50ml 100gm 55gm 200ml 100ml 50ml 200ml 100ml 50ml 10PCS 5PC S 60ml 100ml 200ml 475ml PR ICE Rs 27 Rs 16 Rs 31 Rs 43 Rs 64 Rs35 Rs 19 Rs 199 Rs 125 Rs 73 Rs 43 Rs 90 Rs 55 Rs 78 Rs 42 Rs 23 Rs 87 Rs 57 Rs 40 Rs 55 Rs 30 Rs 40 Rs 70 Rs 125 Rs 197 TR ADE SC HEM E TRAD M E ARG IN 12% 7% ---8% 12% 7% ----8% 12% 7% ----8% 12% 7% ----8% 7% ----8% 14% 7% ----8% 14% 7% ----8% 14% 7% ----8% 7% ----8% 14% 7% ----8% 14% 7% ----8% 14% 7% ----8% 14% 7% ----8% 7% ----8% 16% 7% ----8% 16% 7% ----8% 7% ----8% 12% 7% ----8% 12% 7% ----8% 12% 7% ----8% 7% ----8% 16% 7% ----8% 16% 7% ----8% 16% 7% ----8% 7% ----8% 16% 7% ----8% 16% 7% ----8% 16% 16% 16% 16% 7% ----8% 7% ---8% 7% ---8% 7% ---8% DISTRIB UTIO M GIN N AR 4% ----5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ----5% 4% ----5% 4% ----5% 4% ----5% CO NSUM O ER FFE R

Rs 5 off

POW ER D

BABY O IL

CURR ENTLY TH ERE IS NO O FFER FO R CO NSUM S ER

BABY CR M EA

TOP TO TO W E ASH

BABY LO TION

BABY NAPPY PAD

BABY SHAM O PO

Rs 14 OFF O 200ml N

ENTIRE BABY CAR CO E LLE CTIO N BABY PO DER W SHAM OO P LO N TIO CREA M HAIR O IL SOAP BUDS BABY CARE DV D BABY CARE BO OKLET DA UR B LAL TAIL 200ml 100ml 50ml 100ml Rs 98 Rs 58 Rs 30 Rs 41 15% 15% 15% 15% 200gm 100ml 100ml 50gm 100ml 100gm 30stm 1 piece 1 piece 16% 16% 16% 16% 16% 16% 16% 16% 16% 7% ----8% 7% ----8% 7% ----8% 7% ----8% 7% ----8% 7% ----8% 7% ----8% 7% ----8% 7% ----8% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5% 4% ---- 5%

TOTAL Rs 501

NO O FFER

SARSO BAD N AM TAIL

HIM LA A YA BABY SHAM O PO BABY CR M EA BABY O IL BABY PO DER W BABY SO AP BABY SO AP BABY PO DER W DIA R RA CREAM PE SH BABY SO AP NO URISHING BABY O IL G TLE BA W EN BY IPES LO N TIO LO N TIO BABY CARE G IFT JA R

100ml 50ml 100ml 100gm 75gm 70gm 100gm 20gm 75gm 100ml 24pcs 50ml 100ml SO AP SH PO AM O PO DER W

Rs 72 Rs 51 Rs 74 Rs 32 Rs 24 Rs 24 Rs 32 Rs 30 Rs 24 Rs 24 Rs 48 Rs 24 Rs 69 75gm 100ml 100gm

13% 13% 13% 13% 13% 13% 13% 13%

1 FRE W E ITH 12 PCS

Rs 125

BA Y CA GIFT PA B RE CK BABY SHAM O PO BABY O IL DIA R RA CREAM PE SH M ISTURIZING BAB S O Y OAP BABY LO TION BABY PO DER W SM ALL GIFT PACK BABY O IL SOAP BABY LO TION MO ER CA E TH R BABY PO DER W BABY SHAM O PO BABY LO TION BABY O IL MYSO E R ( K RN TA S PS & DE A A KA OA TER GEN ) TS SOAP POW ER D

100ml 100ml 20gm 75gm 50ml 100gm

27%

100ml 75gm* 2 pcs 100ml

TOTAL Rs 250

300gm 300ml 300ml 300ml

Rs 195 Rs 196 Rs 197 Rs 198

NO O FFER

75 gm 50gm 100gm 200gm 400gm

Rs 25 Rs 15 Rs 28 Rs 50 Rs 75

NO O FFER

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THE EMAMI HEALTHY AND FAIR RANGE SNAP FOR THE PRODUCT

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A DETAIL SEGMENTATION OF PRODUCTS AND ITS MAJOR PLAYERS IN FMCG SECTOR

SEGMENT

PRODUCTS Fabric wash(laundry soaps and synthetic detergents), household cleaners( dish utensil cleaners, floor cleaners, toilet fresheners, insecticides and mosquito repellents, metal polish and furniture polish) Oral care, skin care, hair care, personal wash(soaps),cosmetics and toiletries, deodorants, perfumes, female hygiene products, paper products Food Stapels/cereals; bakery products( biscuit, cakes,bread), snack food, chocolate, ice cream branded flour, branded rice, branded sugar, ready to eat packaged food etc Beverages Health beverage, soft drink , tea, coffee, bottled water, juice, liquor etc

MAJOR PLAYER HUL , NIMA , GODREJ ,CONSUMER PRODUCTS, ITC , P&G, DABUR ,RECKITT & COLMAN

HOUSEHOLD CARE

PERSONEL CARE

COLGATE- PAMOLIVE , HUL , DABUR , LAKME , MARICO, FEM CARE , EMAMI , P&G, HIMALAYA ,ITC , GODREJ CONSUMER PRODUCTS. PARLE AGRO,BRITANNIA , ITC , NESTLE, CADBURY INDIA, DABUR, PEPSICO

FOOD AND BEVERAGES

UNITED BREWERIES,DABUR , RADICO, KHAITAN, UNITED SPIRITS, PEPSICO, COCA COLA, GLAXOSMITHKLINE

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COMPETITORS ANALYSIS The baby personal care category is dominated by Johnson&Johnson since ages and many players tried to enter into that category but failed as J&J is a well know brand in baby care products among mothers and grandmothers, thus having total belief on the brand. More over mothers do not want to take any risk with their childs skin by using a totally different brand there by the new brand is not able to capture the market. J&J is available in rural as well as urban place and through their best distribution channel the products of J&J is available in small stores as well as in big malls such as food bazaar and big bazaar Thus Johnson&Johnson is the undisputed market leader in the category with more than 75% share in value terms. SNAP SHOT OF JOHNSON&JOHNSON Baby Care Category 550cr.Growing at 8% Baby Powder Baby Oil Baby soap Baby Cream Baby Lotion Others 145cr . Growing at 5% 160cr .Growing at 8% 140cr . Growing at 8% 30cr . Growing at 8% 25cr. Growing at 12% 50cr. Growing at 20%

JOHNSON&JOHNSON ALL CATEGORY J&J Baby care category 425cr ( Brand share 77%) J&J Powder J&J Baby Oil J&J baby soap J&J Baby Cream J&J Baby Lotion J&J Others 135cr (Brand share 93%) 75cr (Brand share 47%) 120cr (Brand share 86%) 28cr (Brand share 93%) 22cr (Brand share 88%) 45cr (Brand share 90%)

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Media Presence Media in the category is heavily dominated by J&J. over 80% of the media spends is done by J&J with more than 80% SOE. Category spends J&J Baby powder J&J Baby oil J&J Baby soap J&J Baby cream J&J Baby lotion Rs 57.86cr Rs 10.18cr Rs 8.08cr Rs15.30cr Rs 4cr Rs 5.49cr

J&J over all media spends Rs 51.88cr (89.66%)

JOHNSON&JOHNSON PRICING STRUCTURE FOR THE PRODUCTS PRODUCT Baby oil 100 ml Baby oil 50ml Baby Powder 100gm Baby Powder 40gm Baby soap 75gm Baby soap 30gm Baby cream 30ml Baby lotion 50ml JOHNSON&JOHNSON MRP Rs 73 Rs 43 Rs 35 Rs 18 Rs 27 Rs 10 Rs 37 Rs 38

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ABSTRACT This report as the title suggests is about an analysis of consumer behaviour in the baby personal care products market. The objectives of this project were:

Why do people use baby personal care products? What products do they use and why do they use those particular products. What is the span of usage? Factors which influence the buying of particular brands. What premium is the consumer ready to pay for these baby personal care products.

A questionnaire was prepared for the purpose of the project keeping in mind the above mentioned objectives. The target respondents were chosen with care. The total sample was of a hundred and one respondents with 65 of them being mothers who have already used baby personal care products and 36 of them being expecting mothers. The questionnaire had 11 questions with a few demographical questions added. The analysis of the collected data revealed some interesting details. When asked about the reasons for use of baby personal care products about 45% of the respondents said that they use the products owing to the delicate skin of the babies. Around 48% of the responses said that it was because of family or friends advice. This shows the influencers very clearly. The immediate family of the mother and care for the skin should be the thrust for the promotion of these baby products. The data revealed around 58% of the respondents used all the available baby products. But the cake is taken by baby soap, powder, shampoo and oil, with the powder having a univocal 100% usage rate among the respondents. The reason for usage has been has been majorly due to the delicate nature of babies skin with advice from family/friends and doctors running a close second. The reason of the usage of the shampoo has mainly been the no tears claim and the mothers feel that it is not too strong for their babies.

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The span of usage has centered on the 0-5 yrs mark and after that the mothers feel that their children are grown up enough to use normal personal care products. The major factor influencing the choice of brands has mainly been the company image. The consumers feel that using an unknown brand is a little risky for the baby. The respondents even stated that any new product being launched would have to be tested thoroughly before they use it and they feel that the companys image is very important when it comes to choosing a brand. The respondents felt that price was not a very important factor when it comes to buying a baby personal care product. The consumers are ready to pay a hefty premium for the products. The price they are comfortable paying ranged from Rs. 27 to Rs. 35 for 100 gm soap, The premium for a product being in the range of Rs. 12- 20. This covers the set objectives of the project and when asked whether the consumers would buy an economically priced product which uses natural ingredients the response was a big positive with over 84% of the respondents willing to buy it.

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INTRODUCTION This project titled An Analysis of Consumer Behaviour in the Baby Personal Care Products Market was undertaken during the summer internship program of N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH, under Emami Ltd. The duration of the project was 8 weeks and this time was utilized in completing this project. The purpose of the project was to gain an understanding of the consumer behaviour in the baby personal care products market and to strengthen the hypothesis existing with the company, Emami Ltd For this purpose the objectives were defined in lieu with the requirements of the company, and accordingly a questionnaire was formed. The scope of the study was to ascertain the formed objectives and give a conclusion based on the data obtained. The area of the survey was the city of Kolkata in which the survey was conducted. The limitations were the relatively low number of respondents i.e. 101 and the survey being conducted only in one city which might not give a clear picture of the variations in consumer behaviour throughout the nation. The target respondents consisted of mothers and expecting mothers, the mothers were intercepted in the shopping malls of Kolkata like Forum, City Center, South city, Pantaloon, West side and Spencers. The expecting mothers were interviewed in the maternity wards of hospitals like AMRI hospital and medical center. The expecting mothers were also interviewed at a mother-care workshop organized by the peerless group. The expecting mothers proved to be a difficult group of respondents to target but the target was attained at the workshop. Emami Ltd. is in the process of developing baby products for the market and this study can be used to strengthen their existing hypothesis about which products to develop, what prices to charge and who are the major influencers in the buying decision. Another limitation in this survey is the lack of available secondary research. There seems to be a dearth of research done

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in the baby personal care market. Therefore the research has mainly been first hand and original. INDUSTRY ANALYSIS Fast Moving Consumer Goods The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organised and unorganised. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented. Industry Classification The FMCG industry is volume driven and is characterised by low margins. The products are branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. The FMCG segment can be classified under the premium segment and popular segment. The premium segment caters mostly to the higher/upper middle class which is not as price sensitive apart from being brand conscious. The price sensitive popular or mass segment consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly brand conscious. Products sold in the

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popular segment have considerably lower prices than their premium counterparts. The fast-moving consumer goods have started moving off the shelves faster in the past two months on stable prices, tempting companies to boost promotional activities and offer products at multiple price points. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. To address healthy rural demand and a cautious urban consumer, companies such as Hindustan Unilever (HUL), Nestle, Procter & Gamble, Godrej and Dabur are shifting focus to volume growth and making higher investments in mass brands. HUL, which had been focusing on premium highmargin products, is now sharpening its mass-products strategy. FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India. . An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets. Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45

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per cent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset. A distinct feature of the FMCG industry is the presence of most global players through their subsidiaries (HUL, P&G, Nestle, Heinz, Colgate-Palmolive), which ensures new product launches in the Indian market from the parent's portfolio. Availability of key raw materials and cheap labor costs give India a competitive edge. Rural and semi-urban markets will drive the FMCG business in the country to a compounded annual growth of 50% for the next six years. A good number of malls, nearly 220 in the country, would come up in the next four to five years in semi-urban areas that would lead to an increase in the demand for the products

SWOT Analysis of FMCG Sector Strengths: 1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector Weaknesses: 1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors 2. Low exports levels 3. "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Opportunities: 1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers 3. Large domestic market- a population of over one billion. 4. Export potential

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5. High consumer goods spending Threats: 1. Removal of import restrictions resulting in replacing of domestic brands 2. Slowdown in rural demand 3. Tax and regulatory structure FMCG Evolution

1950s-80 Low Investment in the sector Low purchasing power Govts emphasis on small scale sector HLL and other companys urbane focus Post liberalization Entry of MNCs Focus shifted to getting to rural consumer first Others, like Nestle, remained with the urban population Latest fad to hit the market is the sachet bug. Mushrooming of regional brands Nirma enters and changes the focus to Value for Money in the 70s. Post liberalization, Jyothi Laboratories, Ghari Detergent and Anchor toothpaste giving the nation-wide brands a run for their money.

Forecast 2010

Rural and semi-urban 128 million population thrice the urban market size growth from 48k to 100k Crores (Growth of 50% at 10%CAGR). Increase penetration from the current less than 1% Problems in the rural sector Low per capita disposable incomes Large number of daily wage earners Acute dependence on vagaries of monsoon Seasonal consumption

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Poor infrastructure roads and power supply Urban market 16.5k to 35k Crores (Growth of 100% at 20%CAGR) Intense competition severe pressure on margins Focus on newer products, such as fruit juices

The baby personal care products market has been a segment which has had very little research done. The facts about consumer behavior in this segment have been hitherto unknown. The market size is only 0.67% of the total FMCG market at present. This coupled with Indias exponentially growing population tells us that this is a segment which has great potential for growth. It is up the marketer and the company to take advantage of this potential.

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Company Analysis Emami, which started as a cosmetics manufacturing company in the year 1974, advancing with increased momentum has expanded into Emami Group of Companies of today. The Group is expanding its FMCG portfolio basket and existing business of paper, healthcare and diversifying into cement, real estate, bio-diesel and power generation and being endorsed by top celebrities, making it a prime acquisition target from multinational FMCG companies. To avoid such situation, maybe the company is diversifying to get a good valuation from It is investing Rs 220 crore for acquisitions in personal care and healthcare space and product portfolio enhancement through forays into new categories of babycare, haircare and mens grooming. It is expecting Rs. 500 crore revenue by 2010. Emami Group is looking at developing in Orissa and Gujarat to add to the existing Coimbatore and Hyderabad projects. It is venturing into retail with opening 10 stores in eastern region. Its paper mill capacity of to be raised to 500 tonne per day from 150 tonne. The 4 million tonne cement plant is to built in Chattisarh along with a 100 MW captive power plant at an investment of Rs 1,600 crore. Meanwhile, Emami is also planning to enter into bio-diesel business and set up a speciality hospital in Orissa to add to its existing JV hospital in Kolkata. The companys brands, with their Ayurvedic positioning, are strong in various niche segments. But expanding this presence may be difficult in the face of intensifying competition in personal and health care, both from domestic companies and MNCs. Also, the infrastructure projects taken up by company are insignificant to compete with big players in the respective areas. Its growth rate has been quite stagnant over the years and it was in 2003, when it had expected a Rs. 750 crore turnvoer. But some of its leading brands have a considerable market

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presence the market and deter any takeover threats. Kolkata-based personal and healthcare major Emami Group is now planning to manufacture and market a range of ayurvedic over-the-counter (OTC) medicines under the brand name Himani. The move will bring Emami closer to the turf of ayurvedic majors like Dabur India and Himalaya Herbal. Emamis new foraywhich starts next monthwill include a range of products. Emami Limited is eyeing Rs 300 crore sales during the summer season this year, on the back of new product launches and product innovation. The company is also investing close to Rs 70 crore on advertising and promotions for its brands this season.The Rs 1,500-crore Emami Group is targeting Rs 2,500 crore turnover by 2009, on the back of its expansion into new categories, product launches in the FMCG segment, as well as rapid expansion in its FMCG major, Emami group, is eyeing a Pan India presence for HairLife, its instant haircare pack, which is positioned as a substitute for traditional home-made treatments for healthy hair. Emami Limited is in the business of manufacturing personal, beauty and health care products. The company manufactures herbal and Ayurvedic products through the use of modern scientific laboratory practices. This blend enables the company to manufacture products that are mild, safe and effective. The company's product basket comprises over 20 products, the major being Boroplus Antiseptic Cream, Navratna Oil, Bororplus Prickly Heat Powder, Sona Chandi Chyawanprash and Amritprash, Mentho Plus Pain Balm, Fast Relief, Golden Beauty Talc, Madhuri Range of Products and others. The products are sold across all states in India and in countries like Nepal, Sri Lanka, the Gulf countries, Europe, Africa and the Middle East, among others. Continuous innovation: Emamis strong R&D and aggressive marketing capabilities enable it to identify emerging needs and aspirations of consumers and convert them into opportunities. Fairness cream for men,

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the first of its kind in India and the branding of Chyawanprash as SonaChandi Chyawanprash are results of such innovative R&D and marketing efforts. Entry into new segments: Emami forayed into hair care and baby care segments through the introduction of products like Mr. and Mrs. Black kesh kala and hair dye powder, and Sona Chandi baby massage oil. It plans to come out with a full range of baby care range. VALUES Respect for people Consumers delight Transperency & share holders value Quality Team work The right environment

VISION A company, which with the help of nature, caters ot the customers need and their inner cravings for dreams of better life, in the fields of personel and health care, both in India and through out the world. MISSION To sharpen consumer insights to understand and meet their needs with value added differentiated products which are safe, affective and fast. MANUFACTURING

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Emami's products are manufactured in Kolkata, Pondicherry, Guwahati and Mumbai. The company commenced operations at its fully automated manufacturing unit in Amingaon, Guwahati in 2003-04.

Fresh capacity being commissioned: The Company is in the process of commissioning another state-of-the-art factory in north-east India, enjoying economic benefits NETWORK The company's dispersed manufacturing facilities are complemented with a strong product throughput, facilitated by a robust distribution network of over 2100 direct distributors and 3.9 lakh retail outlets. With a view to reach its products deeper into the country, direct selling has been extended to rural villages. As a result, rural sales increased substantially in 2003-04 compared to the previous year. Emami is headquartered in Kolkata. The company's branch offices are located across 27 cities in India. Emami Limited is on the lookout for acquisitions in India and abroad for inorganic growth in the FMCG sector, it has identified realty as a potential business opportunity leveraging its resources. A whollyowned subsidiary, Emami Realty Pvt. Limited, was formed in May 2007 to drive this business through an independent focus since it would be a 100% subsidiary of Emami Ltd. As a result of increased capacity, upcoming launches, product extensions, wider geographic coverage and growing service station, the company expect to accelerate the topline growth and strengthen the margins. BUSSINESS FORAYS As mentioned above, EMAMI has ventured in paper manufacturing, health care, pen manufacturing. It is providing many aurvedic medecines under its HIMANI line. A brief description of every venture undertaken is given below.

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PAPER MANUFACTURING Emami Paper Mills Ltd, part of the Kolkata-based Emami Group and the largest paper manufacturing company in India, has signed an agreement with West Bengal Industrial Development Corporation for setting up a paper mill in West Midnapore district .The 600-tpd plant, which is estimated to cost Rs 2,200 crore, is likely to come up on more than 2,000 acres in the paper park at Kulti Kuri near Jhargram, West Midnapore, being set up by the state government. "The required land for the project is in our possession," Ghanshyam Saraf, Vice President (Finance) & Company Secretary of Emami Paper. HEALTH CARE Emami is into health care with AMRI hospitals locating in several parts of Kolkata. PEN MANUFACTURING Emami started pen manufacturing in the year 1995 as CRI ltd and has established itself as undisputed dleader in manufacturing Quality and Refills for ball pens in India. RETAIL Emami ventured into retailing into by setting up mall know as Emami shoppers in the heart of Kolkata. AYURVEDIC PRODUCTS The Ayurvedic association of Emami's products, which has helped the company retain its dominant market shares, has been a differentiating factor so far. However, domestic companies with an equally strong Ayurvedic base, such as Dabur, Himalaya Drugs, and Zandu Pharma, have been regrouping

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for an aggressive foray into these segments. And a good number of FMCG and pharma companies have also lined up forays into OTC drugs and healthcare, as these offer greater opportunities for growth than the home-care segment Promoters: Emami is promoted by Shri R. S. Agarwal and Shri R. S. Goenka, Kolkata based industrialists. Emami's shares are listed on the Calcutta Stock Exchange, Bombay Stock Exchange and National Stock Exchange. OBJECTIVES OF THE PROJECT:

Why do people use baby personal care products? What products do they use and why do they use those particular products. What is the span of usage? Factors which influence the buying of particular brands. What premium is the consumer ready to pay for these baby personal care products.

DESCRIPTION OF ACTIVITIES: The study required the intern to first discuss and set the required objectives of the study. Then a questionnaire was needed to be prepared. Then the intern had to travel through the city collecting data for the study. After the data collection was completed the analysis was done and the results drafted into the final report.

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EXPERIMENTAL WORK This study necessitated the preparation of a questionnaire which was needed for collection of the required data. The questionnaire was prepared keeping in mind the set objectives of the study. The initial draft questionnaire had a large number of open-ended questions which could have posed a problem in the analysis stage of the study. For this reason a primer was prepared and given to a select few respondents. From the responses in the primer the present options were extracted. If you look at the questionnaire given in appendix II, the questions numbered 3, 4,5,6,8 and 10 needed primers to be made. The primers consisted of open ended questions with the purpose of identifying and extracting the various factors needed for the final questionnaire. The primer has been given in appendix I. After the questionnaire was prepared it was tested. 10 respondents were given the draft questionnaire and there responses were noted down. The purpose was to find out whether the respondents were able to answer the questions without any difficulty, the quality of data being generated was also observed. In this case it was ascertained that I had missed out adding baby oil in the questionnaire. This was duly noted and taken care of. The final questionnaire was then prepared and the project was ready for the next stage, i.e. data collection.

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DATA COLLECTION: This was the stage of the project which took the maximum time. The target respondents were of two groups, 1.mothers 2.expecting mothers. The mothers were relatively easy to locate but difficult to interview. Due to the large influx of salespeople in the city the respondents were reluctant to respond. The approach had to be perfect and it had to be made clear to them that I was not there to sell anything and was only trying to get a few questions answered. For this reason I did not make it obvious to the respondents that I was in fact working for Emami Ltd. but was only an MBA student from N.L.DALMIA INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH. It took a large number of rejections before I was able to get the desired number of responses and move on to the next group of respondents, i.e. the expecting mothers. This group of respondents was a difficult group to track and tackle. The initial trouble was encountered in locating these expecting mothers. I managed to get a few addresses from personal contacts and visit them at a place of their convenience after getting an appointment. But these were very few in number. At the advice and guidance of the company guide I spoke to the administrators of AMRI hospitals which are a part of the Emami group. The administrators were generous enough to grant me permission to use their facilities to contact the desired respondents.I visited these hospitals and the AMRI medical center when there were expecting mothers present for consultation. I was able to get a number of responses at these places. I then managed to contact a doctor at the local Peerless hospital who was holding a workshop for expecting mothers at Peerless. The remaining responses were obtained at this workshop. Now the study was ready for analysis.

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ANALYSIS: The responses generated have been very insightful. The consumer behaviour is filled with diverse influences which act alone and together on the consumer. So there were many instances where the respondents felt that all the listed options along with a few more were influencing the consumers behaviour. So, all the results and analysis of the generated data have to be taken with a pinch of salt. When any decision is taken based on the results obtained in the study an open mind-set has to be kept so that the decision is not based completely on one of the influences. The decision has to keep in mind the fact that there are a myriad of influences acting on the consumer with every decision he or she takes. Another factor to note is that the age of the respondents barring a few was in the late twenties or early thirties. Most of the expecting mothers were in their early twenties. Now we can go to the detailed analysis of every question in the questionnaire and discuss them further. All the table and charts for the analysis are given in the list of illustrations. The page numbers and question numbers are mentioned in the list of illustrations. Q1. . What baby personal care product brands are you aware of ? This was an introductory question which tested the brand awareness of the respondents. It was found that the awareness of Johnson & Johnson was overwhelming. 100% of the respondents were aware of the brand. In fact it can be safely said that 100% of the consumers using baby personal care products do use or have used Johnson & Johnson products in some form. A number of

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other brands like Wipro, Pigeon, Mothercare, Dabur, Lander, Doy and Emami also got some but very limited recognition. In fact Emamis market print was very little and from the three responses that it generated two were from people connected to the company in some way or the other. Wipro was the second when it came to awareness with about 23 responses. On launching new baby products by Emami there should be a thrust on promotion. The market visibility of the company as a baby products brand needs to be aggressively

B ra n d A w a re n e s s
120 100 80 60 40 20 0
Do y J& J To lly jo y La nd er Mo the r ca re Or ifla me Em Da bu r o W ipr ge on am i

S e rie s 1

As we can see from the above chart the awareness of Johnson & Johnson is way above the rest of the brands. Q2. . Do you use baby personal care products? Yes/No The second question is again just an introductory question which intends to find out whether the respondent fits into the target group or not. In case of the

Pi

37

expectant mothers the question was deemed as do you plan to use baby care products? In two instances the respondents answered no to this question so their responses were removed from the study. These two were the respondents who do not use baby products either due to some medical condition or because they believe in homemade products. In fact a recommendation could be to find out the reasons why people do not use baby products. This could prove to be useful in taking further related product decisions. Thus only the respondents who answered in the positive to this question were included in the survey.

Q3. . Baby personal care products are used because: (a) Doctors advise (b) Family/friends Advise (c) Delicate skin of babies (d) Any other -----------------This question intended to find out the reasons why do people use baby products. The purpose was to find out the influencers in the decision to use baby products. The primer revealed that there were three major factors in decision namely doctors advise, family/ friends advice and the delicate skin of the babies. Analysis of the data revealed that the major influencers for this decision are babys skin. The survey was conducted more as an interview rather than just a form fill type of survey. This interview revealed that the consumers feel that babies have very delicate skin when they are born and this skin needs special care. The consumers were very concerned that the normal personal care products used strong chemicals which might harm the babys skin. This concern opened up the field for the respondent to ask about natural or herbal products. The consumers seemed very enthusiastic about this and gave unanimous thumbs up to the idea. The data also revealed that the consumers took great heed to their family/friends advice concerning babies. This actually gives us an idea about the thrust of the promotional campaign. Like the campaign of Johnson and Johnson focuses on the mother and child bond, Emamis campaign should focus on influencing the

38

family/friends of the mothers. If the campaign can successfully focus on may be the mother/father-in-law or the mother/father of the mother then maybe their influence would induce the mother to buy the desired products.

Reasons for usage

50 40 30 20 10 0 Doctors advise Family/friends advice Delicate skin of babies Others c Series1

The data also reveals that there are some of the respondents who have been advised by the doctor to use baby products. Thus it might be really helpful if there was a medical association which certified Emamis products. Q4. . What products do/would you prefer to use? (Please tick on the correct options) i. Baby soap ii. Baby powder iii. Baby shampoo iv. Baby cream v. Baby hair oil vi. Baby lotion vii. Baby oil This question attempts to find out which products do the consumers prefer to use. The respondents were asked to tick the products that they used. The use of this question is to find out which products are the most widely used so that the company can then concentrate on developing and launching those

39

particular products. For the data it was found that 100% of the respondents used the baby powder and around 95% of them used the oil, shampoo and cream. The company already has baby oil in its portfolio but some of the respondents expressed concern over the visible metals used in the product. Maybe the company could go in for a product modification for the oil. The shampoo was used by a majority of the consumers but there the differentiation factor is minimal because the available shampoo uses no tears as a selling point and then all Emami can do is highlight its herbal formulation. Therefore the products that Emami should develop and launch are the soap, powder and cream. But again the cream is only for seasonal use so initially the company could concentrate on the soap, powder and the baby oil.

PRODUCT USAGE
120 100 80 60 40 20 0 SOAP SHAMPOO HAIR OIL OIL Series1

The data shows that the hair oil is used by the least number of respondents. The data also shows that only 58% of the respondents use all the products available in the market. Thus it is not necessary to have the entire range in the companys portfolio while entering the market initially. Q5. Why do/would you use these particular products? (Please tick only for the products that you use) i. Baby soap (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other -----ii. Baby powder (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other --

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iii. Baby shampoo (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other iv. Baby cream (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ----v. Baby hair oil (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ---vi. Baby lotion (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ----vii. Baby oil (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ----The next question looks at finding out the reasons for usage of particular products. This question has seven parts in it. Each part talks about the reasons for usage of a particular product that is available in the market. The respondent was asked to respond to the reasons for usage of a particular product. The charts for this question are given in the list of illustrations. Let us take up each product at a time and elaborate. SOAP when asked about the reasons for the usage of the soap about 55% of the respondents said it was due to the delicate skin of the babies. About 29% said it was due to doctors advice that they used the soap the family/friends advise was limited to only 16%. This tells us that to sell the soap there are a few things that need to be done. The ingredients of the soap should be such that it nurtures the babys skin and then maybe a medical certification could be obtained for the soap. The promotional campaign should also focus on these factors. For the soap the family/friends advice does not seem to be of that much importance so that factor could be left out for the promotion while focusing on the above mentioned factors.

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SOAP
60 50 40 30 20 10 0 Doctor's advice Family/Friends advice Baby's skin cost others c Series1

POWDER The reasons for usage of the powder seem to be very similar to the reasons for the usage of the soap. The skin of the babies is the major concern with some of the respondents giving importance to the smell of the powder. One of the respondents even stated that the only reason that she used the powder was because of its nice smell and the feeling of softness. The jury seems to be divided on factors such as doctors advice and family/friends advice so the promotion needs to keep them in mind.

POWDER
60 50 40 30 20 10 0 Doctor's advice Family/Friends advice Baby's skin cost others Series1

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SHAMPOO Similarly for the shampoo the reason is mainly because the shampoo is not too strong and the available shampoo uses a no tears formulation. 48% of the respondents use the shampoo for the delicate nature of babies and around 36% of them use it on advice from family/friends.

SHAMPOO
60 50 40 30 20 10 0 Doctor's advice Family/Friends advice Baby's skin cost others Series1

CREAM There is a similar story with the cream with 48% using it for babys skin 32% due to family/friends advice and only about 19% on the doctors advice. But this product is only for seasonal usage. It is only used for a few months in winter.

CREAM
50 40 30 20 10 0 Doctor's advice Baby's skin others Series1

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HAIR OIL A pretty similar scenario with the hair oil but with an exception, the doctors dont seem to advice usage of the hair oil because there is only a 9% response which says that the usage is due to advice given by the doctor. People who dont use the hair oil have even said that this is a frivolous product and is really not needed for the baby. There was a feeling that this product is just used because it is available

HAIR OIL

0% 13% 1% DOCTORS ADVICE FAMILY/FRIENDS ADVICE 53% BABIES SKIN 33% COST ANY OTHER

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LOTION The hair oil and the lotion have the same story with 51% opting for it due to the babys skin and29% opting for it on family/friends advice.

0% 0%

LOTION

11% DOCTORS ADVICE FAMILY/FRIENDS ADVICE BABIES SKIN 57% 32% COST ANY OTHER

OIL The oil and the lotion have exactly the same percentage of responses.

0% 0%

BABY OIL

14% DOCTORS ADVICE FAMILY/FRIENDS ADVICE BABIES SKIN 55% 31% COST ANY OTHER

An overview of all the above mentioned factors and responses give us a pretty decent picture of the requirements of the consumer and the reasons for usage.

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The consumer mainly uses baby personal care products owing to the delicate nature of the babys skin. The major influencers in this decision are family/friends and there is a factor which looks at the doctors advice. So the companys product should be something which nurtures and protects the babys skin, the promotion should also target the mothers immediate family and effort should be made to get a medical associations approval or certification.

Q6. Why do/would you not use some of the products? (Please tick only for the products that you do not use) i. Baby soap (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other -----ii. Baby powder (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other -iii. Baby shampoo (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other iv. Baby cream (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other ----v. Baby hair oil (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ---vi. Baby lotion (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other ----vii. Baby oil (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other -----

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This question tackles the reasons for non usage of particular products by the consumers. Most of the respondents used baby products and used most of them. There are only some products like the hair oil which have not been consistently used. Lets us take up the responses one product at a time. SOAP There was only one respondent who did not use the soap. The reason given was that the available J&J baby soap did not form any foam. This might not be a very important factor because only one of the respondents felt that way. POWDER All the surveyed consumers used baby powder. SHAMPOO About three of the respondents did not use the shampoo. The reason given was that it was not needed by them and they were happy using the soap for hair. CREAM About 5 of the respondents did not use the cream the reasons give were that it was not needed, the oil was enough and in two cases the doctor had advised against it. HAIR OIL Around 23% of the respondents did not use the hair oil and in the 23 % the majority felt that it was not needed and the use of traditional hair oil was better. LOTION 16% 0f the respondents did not use the lotion. Majority of them felt it was too watery and it was not needed for the baby. OIL Only 6% of the people did not use the baby oil. Around 2 % felt the traditional oils were better for the baby and 2% even claimed that doctors nowadays advise against use of baby oil. It is a very difficult task to read into the above mentioned reasons. There are actually very few people who do not use these baby products and owing to the small number of the sample drawn in the first place it is not possible to draw any conclusive result from the collected data in Q6.

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Q7. . How long would/did you use these products? (Please tick on the correct box) Product 0-1 0-2 0-3 0-4 yrs 0-5 yrs 0-6 yrs Others yrs yrs yrs Baby powder Baby shampoo Baby cream Baby oil Baby soap Baby hair oil Baby Lotion In this question the intern attempts to fulfill another objective of the project, which is to find out the span of usage of the baby products. In the collected data, the charts are shown in the list of illustrations, the mode falls at 5 years. It tells us that all the products taken together the average span of usage of baby products is 5 years. Even if we look at the products individually we find that the mode always falls at 5 years. We need to look at this data a little more

48

closely. The longest span got is for the shampoo, soap and oil. Around 4% of the people use these products for 14 years. This gives us an indication that these are the products that people tend to use for longer. So for these particular products the promotion can be aimed at slightly older children, the challenge being maintaining the younger audience simultaneously. The respondents were asked to specify the usage of each product specifically. The mode turned out to be 5 years. This tells us that the main feature in the promotion have to be children below 5 years. The products are meant for children below 5 years so the packaging would reflect this age group. The package and the bottle will have to be designed keeping this age group in mind. The package should colorful with pictures of flowers of toys. The colors should be kept light keeping in mind the delicate nature of the product.

SPAN OF USAGE
40 35 30 25 20 15 10 5 0
AR S AR S AR S AR S AR S O TH ER AR S S

POWDER SHAMPOO CREAM BABY OIL SOAP HAIR OIL LOTION

YE YE YE YE 05 YE 06

01

YE

02

03

The charts for span of usage of individual products are given in appendix

04

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Q8.. What makes you decide to buy a particular baby products brand? (a) Advertisements (b) Family/Friends advise (c) Cost (d) Doctors advise (e) Company Image (f) Ingredients used in the product (g) Any other With this question the shift factors are to be identified in the baby personal care products market. The respondents were asked about the factors that influence them to buy a particular brand. The results showed that the consumers were majorly influenced by the company image. The respondents were of the opinion that the company sells the products should be trustworthy and should have a good reputation in the market. When prodded on this line of thought the respondents said that because these products are meant for the babies they would like to buy a product sold by a company which has a great goodwill in the market. One major reason for this could be the fact that the market leader in this segment, Johnson & Johnson, has almost a monopoly in the market and this view about the company reputation being a major influencer could be this monopoly and the goodwill that J&J enjoys in the market. The good thing about this response is that Emami enjoys substantial goodwill in the market and could get a good response to its launch. This could be a reason why a company like Marico failed in the market. Marico as a company is relatively unknown in the Indian market and this could have contributed to its downfall. 21% of the respondents used a particular brand due to doctors advice and 20% used it owing to family and friends advice. There are a relatively low percentage of respondents who said that the influencing factor is advertisements but we can never underestimate the value of advertising. It helps in a whole lot of ways to communicate the companys message to the consumer.

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FACTORS INFLUENCING BUYING DECISION

6%

1%

13% 17%

ADVERTISMENTS FAMILY/FRIENDS ADVICE COST DOCTOR'S COMPANY IMAGE INGREDIENTS USED ANY OTHER

43% 17%

3%

Q9. . How important is price while buying baby personal care products? (a) Extremely important (b) Very Important (c) Somewhat important (d) Not so important (e) least important. The main purpose of this question is to ascertain the importance that the consumers give to the price of a baby personal care product. The respondents were asked to rate their level of importance to price on an importance scale. The results obtained were as expected. None of the respondents thought that price was very important factor while buying baby personal care products. All the responses were clubbed at the somewhat important, not so important and least important points. This confirms the fact that price is not an important influence on the consumer buying decision. This also tells us that the consumer is ready to pay a premium for the baby personal care product. This question introduces the pricing factor in the questionnaire to the respondents.

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IMPORTANCE OF PRICE
40 35 30 25 20 15 10 5 0 35 37

19

Series1

0 EXTREMELY IMPORTANT

0 VERY IMPORTANT SOMEWHAT IMPORTANT NOT SO IMPORTANT LEAST IMPORTANT

Q10. . Baby personal care products are normally priced at a high premium. Given a normal soap priced at Rs.15 for 100 grams, how much over and above Rs 15 for 100 grams are you ready to pay? (a) Rs. 3-7 (b) Rs. 7-12 (c) Rs. 12-20 (d) Any other . Now this question finds out how much premium the consumer is ready to pay. There is a point of comparison given in the form of normal personal care soap. The respondents were asked to tell us the amount of premium that they are ready to pay over the price of soap at Rs. 15 for 100 Grams. Now we already know that price is not a major influence in the buying decision. The responses showed that over 45% of the respondents were ready to pay a premium in the range if Rs. 12- 20 which meant the price of Rs. 27-35 for a 100 gram soap. 38% of the respondents were ready to pay a premium of Rs.7-12 which meant a price of around Rs. 22-27. There were even a couple of respondents who said that they were ready to pay a premium of Rs.50-100. But it is hard to believe these respondents because no one will pay such a high premium when you have a more economical and good option. So the price range for soap for

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the company should be in the range of Rs.22-27. This is due to the fact that J&J has priced its soap at Rs.33 for 75 grams and Emami should aim to get the cost leadership to counter the enormous brand equity that J&J enjoys.

AMOUNT OF PREMIUM
ANY OTER Rs. 12-20 Series1 Rs. 7-12 RS. 3-7 0 5 10 15 20 25 30 35 40 45

Q11.. Given an option to buy a baby personal care product which uses natural ingredients and is priced economically would you buy it. Yes/No This question was not covered in the project objectives but the intern thought it would be interesting to directly ask the respondents whether they would buy an economically priced natural product. The response was an overwhelming yes. Around 85% of the respondents said they would want to buy the product. The remaining 15% said that they would only buy the product if the company image was good and the product was tested thoroughly. This is a very good and encouraging sign for the Emami which is on the verge of launching new baby personal care products. The only detriment to the launch seems to be the incredible amount of brand equity that J&J enjoys in the market. But with astute pricing and focus on the ingredients of the product Emami might be able to counter this road block.

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VIABILITY OF NEW PRODUCT

15%

PEOPLE WHO WILL BUY PEOPLE WHO WILL NOT BUY

85%

CONCLUSION & RECOMMENDATIONS This study has been a unique learning experience for me. It has also thrown up some interesting insights into consumer behaviour. Now I has an idea about how a marketing decision is taken. When a new product is launched it is meant for a large number of people so it is very important to understand the consumer behaviour as a whole. Only when this consumer behaviour is understood can a marketer take any kind of decision concerning the four marketing Ps. This study took a sample group of 101 respondents. If we project these 101 respondents to the whole population of target consumers then we can draw some conclusions and take decisions based on those conclusions. From this study it was found out that the consumers use baby products mainly due to the delicate nature of the babys skin. So for the products that Emami launches the core benefit should be nurturing the babys skin. An advantage

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for the company is that Emami is launching an herbal product and that should go a long way in convincing the consumer that the product is not harmful for babies. The focus should be on the benefit of the product for babys skin. Another major influencer group is the family/friends advice. The promotional campaign should focus on exhibiting the benefits of the product and should focus on influencing the family/friends of the mother i.e. the in-laws or the grandmother of the baby. This study also found out that the consumers largely use most of the products. It was only for the hair oil that the consumers were doubtful. Majority of the consumers use the powder, soap and oil. The company should plan a launch of these three products initially. These products are the most widely used and the initial launch should focus on these three products. The reasons for usage were a little varied but the thrust remained the same. Lets us just talk about the above mentioned three products, namely, soap, powder and oil. The companys product should be something which nurtures and protects

the babys skin, the promotion should also target the mothers immediate family and effort should be made to get a medical associations approval or certification. The company could go in for a product modification for the existing oil because there were some respondents who felt that the use of visible metals in the oil could be harmful for the baby. The mode for the span of usage came to around 5 years. There were some products like the oil and the soap which were used for much longer. But if we look at the average span then we can understand that the majority of the consumers will have children below 5 years off age. This tells us about the kind of promotion to be done and also tells us about the kind of packaging that would work for the products. The packaging should be of a kind that appeals to the children and should convey the delicate nature of the products. It should be colorful with pictures of flowers or toys. There could be a kind of a mascot

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used in the promotion for selling these products to the mothers. Something like a teddy bear telling the mothers that this is product which does not use harmful chemicals should appeal to the mother and the child. Now we come to the price that the company can charge. It was ascertained in the study that the consumer does not pay much importance to the price when it comes to buying baby personal care products. They are ready to pay a high premium for these products. The consumer was ready to pay a price of Rs. 35 for a 100 gram product. But the company should aim to get a price leadership in the market so the right price to charge should be around Rs. 22 to Rs 28 for a 75 gram product.

Recommendations:

Focus on the core benefit for babys skin. Promotion should focus on the family/friends of the mother and the herbal nature of the products. A medical associations approval of certification could be very helpful for the product. The packaging should appeal to children below 5 years. A mascot in the form of a teddy bear or something like that could be adopted. In the initial phase only the powder, soap and the oil could be launched. The company should aim to get a cost leadership in the market and should price their product in the range of Rs. 22-27 for 75 grams.

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The company could look at modifying its existing oil and relaunching it.

\APPENDIX INDIVIDUAL SPAN OF USAGE Q NO. 7 NO. I

USAGE OF POWDER
40 35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

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, Q NO 7 NO. II
USAGE OF SHAMPOO
40 35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

Q NO. 7 NO. III

USAGE OF CREAM
35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

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Q NO. 7 NO. IV
USAGE OF BABY OIL
35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

Q NO. 7 NO. V
USAGE OF SOAP
40 35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

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Q NO. 7 NO. VI
USAGE OF HAIR OIL
30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS Series1

Q NO. 7 NO. VII

USAGE OF LOTION
35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

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Questionnaire: Baby Care - Be part of the survey. Thank you for your time and patience. Q1. What baby personal care product brands are you aware of?

Q2. Do you use baby personal care products? Yes/No Q3. Baby personal care products are used because: (a) Doctors advise (b) Family/friends Advise (c) Delicate skin of babies (d) Any other -----------------Q4. What products do/would you prefer to use? (Please tick on the correct options) i. Baby soap ii. Baby powder iii. Baby shampoo iv. Baby cream v. Baby hair oil vi. Baby lotion vii. Baby oil Q5. Why do/would you use these particular products? (Please tick only for the products that you use) i. Baby soap (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other -----ii. Baby powder (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other -iii. Baby shampoo (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other iv. Baby cream (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ----v. Baby hair oil (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ----

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vi. Baby lotion (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ----vii. Baby oil (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ----Q6. Why do/would you not use some of the products? (Please tick only for the products that you do not use) i. Baby soap (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other -----ii. Baby powder (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other -iii. Baby shampoo (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other iv. Baby cream (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other ----v. Baby hair oil (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ---vi. Baby lotion (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other ----vii. Baby oil (a) Doctors advice (b) Family/friends advice (c) Babies skin (d) Cost (e) Any other ----Q7. How long would/did you use these products? (Please tick on the correct box) Product Baby powder Baby shampoo Baby cream Baby oil Baby Soap Baby Hair Oil Baby Lotion 0-1 yrs 0-2 yrs yrsOther s 0-3 yrs 0-4 yrs 0-5 yrs 0-6

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Q8. What makes you decide to buy a particular baby products brand? (a) Advertisements (b) Family/Friends advise (c) Cost (d) Doctors advise (e) Company Image (f) Ingredients used in the product (g) Any other Q9. How important is price while buying baby personal care products? (a) Extremely important (b) Very Important (c) Somewhat important (d) Not so important (e) least important. Q10. Baby personal care products are normally priced at a high premium. Given a normal soap priced at Rs.15 for 100 grams, how much over and above Rs 15 for 100 grams are you ready to pay? (a) Rs. 3-7 (b) Rs. 7-12 (c) Rs. 12-20 (d) Any other . Q11. Given an option to buy a baby personal care product which uses natural ingredients and is priced economically would you buy it. Yes/No Name: Age: Occupation: (a) Student (b) Business (c) Service (d) Homemaker (e) Any other. Annual family income (a)< 200000 (b) 200000-500000 (c) 500000-800000 (d) > 800000

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REFERENCES Market research methods, ICMR Kotler Philip, Marketing management. Marketresearch.com Marketandresearch.com IBEF survey Assocham website Indiatimes.timesofindia.com www.ibef.org/artdisplay.aspx?cat_id=94&art_id=7933 www.thehindubusinessline.com/2005/07/19/stories/2005071903080 400.htm economictimes.indiatimes.com/News/News_By_IndustryFMCG/articl elist/13358807.cms Reuters India

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