ITC Interrobang 2 : Case Challenge

Team Case-a-novas

Indian Institute of Management, Indore

Abhishek | Anup | Keerthan | Pradeep

Problem Statement

‘Formulating a growth roadmap for Vivel in the face wash market’

Brand Vivel

Vivel was built on the philosophy of offering superior functional benefits at similar price points as compared to other available products in the market. The user and usage imagery associated with Vivel Face Wash point to softness, nourishment, protection and moisturisation benefits, the positive demeanour and outlook it gives are all aspired by the urban youth.

Growth roadmap

Vision To be the leader In the Face Wash market by delivering higher value to the customers by being consumer-centric.

Goal

To be the clear market leader in the Face Wash category by March 2014.

Opportunities for Growth with Vivel

1. There is no Face Wash product aimed at Men 2. Many Customers want to use new Face Wash products on a trial basis. The Non-

Availability of smaller pack sized SKUs in the Vivel Face Wash category prevents new customers from trying it out.

3. The element ‘Fragrance’ is absent in the marketing communication

New Product:

We did a Benefit Structure Analysis . The details of the surveys conducted are given below.

Phase 1:

In phase 1, we talked to 5 retailers (including the one on campus, one supermarket and 3 Kirana stores in Indore) about the sales of various Face Wash products sold by them. All of them stocked Himalaya and Ponds Face Wash. Lakme and Garnier were stocked in 3 of the 5 retailers. Dove and Vivel Face Wash were found in the supermarket alone. The general consensus among retailers was that the Women’s face wash market was crowded with multiple brands fighting it out while there were fewer brands for Men. We wanted to check if there is an opportunity for a Men’s Face Wash product from Vivel.

Phase 2:

The sample size for the survey was 122 and the samples were men between the age of 18-30. We conducted the survey in TI mall, Indore. The questions revolved around their skin (in particular face) care habits. We identified the following benefits and product characteristics in a Face Wash product.

The summary of the survey and analysis are given below:-

A. Benefits and Characteristics identified with Skin(particularly face) Care products:

Benefits Product Characteristics

Cleansing Action Fragrance

Soothing effect Herbal/Non- Herbal

Freshness Lather Formation

Antiseptic properties Viscosity of the cream

Skin Conditioning

Sunscreen

Moisturizer

Bright and Glowing Skin

Removing Wrinkles

B. A scoring system for benefit desirability(want) and benefit availability(received) in current Face Wash products has been devised as under:- Benefit Not at all Wanted /Benefit Not at all Received +1 Benefit somewhat wanted / Benefit somewhat Received +2 Benefit Pretty much wanted / Benefit Pretty much Received +3 Benefit Definitely wanted / Benefit Definitely Received +4

A benefit deficiency matrix (desirability – availability) has been created to analyse which of the benefits are desired more by the customers and which of these benefits are not being provided by the current brands.

The table of Benefit wanted minus benefit received is as follows:

Then the following table was deduced which compares the size of sample wanting benefits and benefit deficiency.

From the table it is evident that there is greater deficiency among current products in providing Soothing Effect, Antiseptic properties, Bright and Glowing Skin and freshness. This is as perceived by the male respondents who were surveyed.

Phase 3:

Based on phase 2 results, we feel that the most apt product that Vivel can introduce is Men’s 2-in-1 face wash (Cleansing action + After-shave) which is Men’s face wash having the functional benefits of a Face Wash(cleansing and providing Bright glowing skin) along with the soothing, freshness and antiseptic benefits an aftershave gel or lotion provides.

The product would differentiate itself from multiple competitors. While all are offering a simple face wash, Vivel would be introducing a variant which has twin benefits: one being Face wash, the other being ‘After shave’. The product we feel would find wide spread acceptance because:-

Face Wash usage levels among men in India is quite low. So the market to capture is pretty large.

Most men who shave use an after shave lotion. They are however reluctant to use a Face Wash because the perceived benefits are quite low. If they are given a face wash with the functions of an after shave lotion, they can be persuaded to use it.

Criteria for evaluating New Product

Market Size:

Demand For After Shave

Market Size of After Shave in India (2009) ~ Rs. 300 crores i

So, the present market size (2012) ~Rs. 500 croresii

For Men’s Face Wash

Market Size of Face wash in India (2009) ~ Rs. 100 croresiii

So, the present market size (2012) ~Rs. 200 croresiv

For Vivel’s Face wash + After shave 2-in-1

Fit with Firm’s product portfolio As Vivel already has a shampoo which caters to men, a face wash which specifically targets men has a good fit. Face Wash for men can reinforce what Brand Vivel and ITC’s personal care stands for-youthful. With a strong R&D division, ITC has pioneered many successful FMCG product launches in India. Even though ITC wouldn’t be the first company to launch a Face Wash product for men, this new product will be disruptive innovation in many ways.

Firm’s Capability: Produce and Market Supported by a strong R&D team, the firm has all capabilities of developing a winning formula in producing Face wash+ After shave.

Also Vivel being already successful in marketing all other products will find it easy with the support of existing structure in marketing the new product ‘Vivel Men’s 2-in-1 Face wash+ After Shave’. Differentiation vis-à-vis existing products

1

3

5

Garnier Men's Facewash

Vivel 2 in 1 Face wash + After Shave

Old Spice After Shave

Considering a market share of 8% in after Shave and 7% in Men’s Face wash segments

= 0.08*500+ 0.07*200

Revenues in first year i.e 2012-13 = Rs. 54 crores (Not considering the conversion of non-users into users)

Revenues in 2013-14( at 20% growth)v = Rs. 65 crores

The above chart shows the differentiation vis-à-vis a Face wash and an After

Shave with respect to the attributes of the product. From the above chart, we

can see that the curve for our product is flatter on the higher side for benefits,

which means that perceived deficiency could be lower while a consumer uses

the product.

Marketing Strategy

Creating the Buzz

Pre-launch buzz should be created through Facebook pages and other social networking forums,

Contests and Events in colleges, channels like MTV.

Positioning:

The (Target Group)TG should be men in the age group of 18-35, in urban and semi-urban markets, college going or professionals, as they are most likely to shave daily or more than once a week and hence the prime users of the product.

The positioning should emphasize on the triple benefits of an antiseptic after-shave, face wash and a moisturizer.

Points of Parity would be cleansing action which a face wash is supposed to do, cleaning dirt from the pores of the face and providing a clear skin after the usage.

Points of difference would be the unique antiseptic action which would give relief from the cuts and rashes on the face after the shaving and thus not requiring an after shave separately.

The initial distribution strategy should consider:-

- The introduction of smaller packs This has to be done in order to get more consumers to try this product and avoid

price being the hindrance in doing so. This will also help in targeting people who are ‘On-the-go’ consumers. This will help in market development in towns where there is a huge potential This will help Vivel in a way similar to that of Fair & Lovely giving out smaller

packs (`5 pack).This will enable customers use it and experience the benefit before trying out larger packs.

- A signature fragrance for Vivel will be an added advantage and help in establishing

associations. This card is played by Lakme using fruit fragrance which has found a distinct connect with its consumers.

- Translucent Pack With opaque packs, it is difficult to determine if the gel/cream is completely used up or not. So the pack can be made translucent to observe the content.

In-store Marketing:

The product sample can be first offered in 3 pack sizes-small sachet (2-3 uses per pack), small tube (10-15 uses per pack) and large tube (30-40 uses per pack).

The product should be kept in shelves along with the other brands of Men’s face wash, so that it attracts special attention because of its after-shave property.

In retail stores where there is a separate section for shaving products, the customer service associate should be asked to suggest this product as a unique offering.

Advertising Ideas:

The advertising should focus on the burning sensation of alcohol based after shave, and portray it as something which can be done away with.

With a right mix of TV, Print and new – age media should be employed. A 60:30:10 respectively should be given for effective reach to the target audience.

It should also communicate that instead of using multiple products for different requirements, Vivel 2-in-1 is a single solution, thus reducing the clutter.

The dual benefits of cleansing action and aftershave benefits can be communicated through a youth icon with a chubby face (Actors Imran Khan, Shahid Kapur or Mahesh Babu). This jells in well with the user and usage imagery of Brand Vivel.

Suggested Timeline of Events

Translucent Pack

Oct 2012

Fragrance

Jan 2012

Men's Facewash+ After Shave

May 2013

Winter Varient

July 2013

Launch of other variants

Jan 2014

References

Benefit Structure Analysis: (For details about the method, please refer Analysis for Strategic Marketing by Vithala R

Rao, Joel H Steckel. ISBN:978-81-317-0160-7)

i http://articles.economictimes.indiatimes.com/2009-04-07/news/27644941_1_deodorant-market-share-brand ii http://www.thehindubusinessline.com/industry-and-economy/marketing/article3371077.ece

iiihttp://articles.economictimes.indiatimes.com/2010-11-12/news/27629303_1_personal-care-hair-care-grooming-market iv http://www.thehindubusinessline.com/industry-and-economy/marketing/article3371077.ece vhttp://articles.economictimes.indiatimes.com/2010-11-12/news/27629303_1_personal-care-hair-care-grooming-market