Clinic Plus is a product that comes under the shampoo segment of hair care segment.

It
mainly faces competition from Dabur (Dabur India Ltd.), Parachute (Marico Ltd.), Loreal
excellence (Loreal India Pvt. Limited) and Head & Shoulders (Proctor and Gamble).
Year
2012
Market Share of Clinic
Plus as a part of Total hair 6.4
care segment (%)
Market Share of Clinic
Plus as a part of Total
17.87
shampoo segment (%)

2013

2014

2015

5.7

5.2

4.8

16.46

15.4

14.5

Clinic
Plus

PESTEL ANALYSIS
Complicated tax structure, high indirect tax, lack of uniformity, entry tax and
changing tax policies.
Complexity and lack of clarity in number of permits and licenses for various states
in the country.
Inflation alters the purchasing power of money which directly impacts the
consumer behavior.
India has seen increased economic growth, with a continuing and substantial
impact on consumer disposable incomes enabling good growth for the shampoo
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.
Changing Lifestyle of Indian consumers has led to shift of focus from mass to
Using development in IT to reduce costs in supply chain.
Flatten bottom line marketing through mobile and social media platforms.
Use of business insight tools to develop future strategies.
Import of Cosmetics is governed by The Drugs and Cosmetics Act, 1940. As a
consequence of this act a NOC is to be obtained from the designated authorities
at the point of import.
Manufacturer needs to follow the rules and processes highlighted in the
Various chemicals used in these products dont break heavily and stay in the
ecosystem for a long time. For example, Dioxane is a carcinogenic.
Bottles and packaging pose a challenge of disposing them so as to minimize
environmental damage.

PORTERS FIVE FORCE MODEL

Threat of new entrants

Medium
to Low;
Low; AttractivenessAttractiveness- Medium
Medium
Medium to
-Huge capital requirement required to build a brand right
from scratch
-Very strong distribiution network required; difficult for a
new entrant.
-Switching costs for a new player would be very high

Supplier Power
Medium
to Low;
Medium to
Low; AttractivenesAttractivenesMedium
Shampoo
makers have
Shampoo makers
have developed
developed
good
relationships
with
the
good
relationships
with
the
suppliers and thus have managed
to negotiate the pricing terms.
In the FMCG space, any fluctuation
of supplies by the supplier can
lead
production issues.
issues.
lead to
to production

Rivalry
High, Attractiveness- Low
Many international players like
HUL,
present in
in
HUL, P
P &
& G
G already
already present
the market.
Domestic
players
(like
Patanjali) also growing fast
and trying to leverage the
"Being Indian" advantage.

Buyer
power
Buyer power
High, Attractiveness- Low
Too
many choices
are available
Too many
choices are
available in
in
almost
every segment.
almost every
segment.
Behavior
Behavior not
not very
very consistent.
consistent.
End
End consumers
consumers make
make an
an opinion
opinion
of the product,s premiumness by
looking at their pricing.

Threat of substitutes
Low,
Low, AttractivenessAttractiveness- HIgh
HIgh
There
are not
substitutes for
for shampoos.
Also, the
There are
not many
many substitutes
shampoos. Also,
the
availability of cheap options has further made substitution
difficult.
In Indian specific context, some people use herbal powders
and homemade preparations. However, these factors have
not
a significant
significant impact
impact on
on the
not had
had a
the industry.
industry.

Factor

Status

Attractivenes
s

Threat of New Entrants

LOW TO MEDIUM

MEDIUM

Bargaining power of
Suppliers

LOW TO MEDIUM

MEDIUM

Bargaining power of
buyers

HIGH

LOW

Competitive Rivalry

HIGH

LOW

Threat of substitute
products

LOW

HIGH

Based on the Porters analysis we can conclude that the Shampoo Industry has a low
attractiveness and is already a saturated market.