Presentation on

Pest analysis of mens grooming product

NAME & INTROCUCTION OF COMPANIES

• Fair and Lovely• Emami • Garnier • Ponds • Olay• Fair Ever• Godrej Consumer Products Ltd• Nivea India Pvt Ltd • Gillette• Cadila Healthcare Ltd• AXE• DENIM• LOREAL• ADDIDAS

PRODUCTS & MARKET SHARE

• deodorants and body sprays.• oral care, skin care, hair care• Colour Cosmetics• Men's Shaving, Men's Toiletries

CURRENT MARKET• The total FMCG market is in excess of Rs. 85,000 Crores• FMCG sector is the fourth largest sector in the economy and creates employment for more than three

million people in downstream activities.• Fairness cream market in India is an 800 crore industry• The rural market occupies a major share of the cosmetic products market. Cosmetic companies are now

starting to move towards the semi-urban cities and villages and are aiming to expand the diversity of their product portfolio.

FMCG SECTOR• Swot Analysis • Strengths: • • Low operational costs• • Presence of established distribution networks in both urban and rural • areas• • Presence of well-known brands in FMCG sector • Weaknesses: • • Lower scope of investing in technology and achieving economies of • scale, especially in small sectors• • Low exports levels• • "Me-too products, which illegally mimic the labels of the established ʺ• brands. These products narrow the scope of FMCG products in rural • and semi-urban market. • Opportunities: • • Untapped rural market • • Rising income levels, i.e. increase in purchasing power of consumers • • Large domestic market- a population of over one billion. • • Export potential • • High consumer goods spending • Threats: • • Removal of import restrictions resulting in replacing of domestic • brands • • Slowdown in rural demand • • Tax and regulatory structure

SWOT ANALYSIS

• SWOT analysis as the name suggest is a

method that analysis the strength, weakness,opportunities and threats of an individual or a firm. We have done the analysis on our newlaunched products (i.e. i-gel). From that following results can be found.

STRENGTH• Market• •various range of products like i-gel, i-hair color, I-cool gel etc• • Large Domestic Market

• Strong presence in Domestic Market with diversified customer base.•Adequate Marketing Network.• Steady increase in market demand provided impetus to the demand.•Diversified customer base.

• Input Availability• • Ample availability of raw material and consumables• Easy availability of Packaging

Materials Technology• Availability of low cost manufacturing facilities• HRD• • Most of the jobs are learnt by workers while doing it.

• Manpower is easily available but revises to be trained by units.•Young and Educated next generation.

• Business Environment• • Long Standing Relationship with Customers, ensures stable business• Environment.•

WEAKNESS

• Market• • Lack of bench marking and brand building practices / concept.• •Limited product range of cluster products• input Availability• • High cost of raw materials marginalized the profit margins..• • High cost of transportation & improper logistics management resulting• high freight cost.• • Insufficient access to technology• Business Environment• •Increased market competition• • Changing Business Environment• • •

OPPORTUNITY• Market• • Raw material, Man Power and Consumables are available in ample• quantity.• Input Availability• •Reduction in Custom Duty on raw material provides easy availability of• raw material at competitive prices.• • Competition is going to make available the latest Plant & Machinery, etc.• cheaper.• Technology• • Large scope for adopting advanced technology.• • Prospects for establishing for Testing Centre & R&D Lab.• Business Environment• •Changing Business Environment can provide ample opportunity for• competitive and enterprising firms.• • Units can grow if large companies are formed by joint ventures. Like• GARNIER, GODREJ etc.

THREAT• Market• •Inter and Intra Cut throat competition among companies like setwet,• garnier &godrej• • Low Volume of operations by cluster firms leads to higher cost production.• •Import is going to increase in coming years.• Input Availability• •Shortage of Working Capital.• • Low Capital base and small size of operations render the firm vulnerable• to external shocks.• •Increase in Raw Material prices.• Technology• • Insufficient access of Technology and Credit.

• Technology can impose major threat unless it is changed/modernized.• Slow pace of Technology Development.• Techno logy in IT, Telecommunication, etc. undergoing changes at rapid

• pace.• H.R. Practices• • Lack of diverse Work Force.• •No second ties management and lack of system and control lead to• increased dependence on the promoter.• • Lack of skill base to adopt latest technological know-how.• Business Environment• • Volatile input costs – fluctuation in prices of Glass Rods principal raw• materials, constrains the cluster firms pricing flexibility.• • Traditional enterprise management system of cluster firms is not able to• cope up with the changing business environment.• • •

PESTLE ANALYSIS

• “Awareness of the environment is not a special project to be

• undertaken when working of change becomes deafening.”• The SVAP Group is used PESTLE Analysis as a framework

looking outside the organization tohypothesis what may or may not happen. It helps to SVAP GROUP to framework that some ofthe basic factors are not overlooked or ignored. Used in a similar way that of business planningbut the application of the data is different.

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Following is a summary of the finding of PESTLE analysis ofour SVAP GROUP

• POLITICAL• ECONOMICS• SOCIOCULTURAL FACTOR• TECHNOLOGICAL FACTORS

POLITICAL

• The government plays a role within the operation of manufacturing these (i-gel)products in termsof regulation there are potential fines set by the government on companies if they do not meet astandard of laws . the following are some factors that could cause svap group actual resultdescribed in their underlying company

ECONOMICS

• Last year the economy was strong and nearly every part of it was doing well. However thingschanged most economists loosely of contraction of or negatively GDP growth.Due to lowinterest rates it can use the borrowing on research it can use the borrowing on research of newproduct or technology.

SOCIOCULTURAL FACTOR

• I –gel is a eco friendly product as they are also responsible for eco- disturbance but they alsoconduct optimum utilization of resources and minimum the wastages of natural resources. Now adays increasing life standard of people (standard of living) by providing the higher quality ofproduct at reasonable price due to cut to cut competitors among hair gel products.

• SVAP has a no. of range of products of each category which is suitable for upper class

• segment as well as lower class segment as it provides right of choice to their consumers.

TECHNOLOGICAL FACTORS

• “Improved technology leads to improve quality of products”

• I-gel have innovative technology which can improve the efficiency and life of theproduct. Due to advances technology the company can produce higherquality of products atreasonable price and in also short run. As the technology is getting advance there has beenintroduction of new machines

POLITICAL ENVIRONMENT• Governmental Policy • Indian Government has enacted policies aimed at attaining international • competitiveness through lifting of the quantitative restrictions, reducing excise • duties, automatic foreign in-vestment and food laws resulting in an • environment that fosters growth. 100 per cent ex-port oriented units can be set • up by government approval and use of foreign brand names is now freely • permitted. • India is second largest • Country in terms of • Popula-tion growth • and increase in • population has a • direct rela-tion to • FMCG Products.• FMCG SECTOR• Central & State Initiatives • Recently Government has announced a cut of 4 per cent in excise duty to fight • with the slowdown of the Economy. This announcement has a positive impact • on the industry.

ECONOMIC ENVIRONMENT

• Associated Chambers of Commerce and Industry of India (ASSOCHAM) predicts that the cosmetics market will grow from $950m to $1.4bn in the next 2-3 years, which would bring India's per capita expenditure up to that of China's.