Market and Demand Analysis
of
Jasmine Hair Sanitizer (a HUL product)
Submitted by
Rajesh Singh Swati Chhabra Saurabh Tayal Amit Chaubey Shubhangi Singhal Manjot Singh Siddharth Wadhwa
Submitted to
Prof. Deeksha Singh
9th august 2011
Executive Summary
The main objective behind the introduction of Jasmine Hair Sanitizer is to cater the growing needs of 21 st century Indians who are becoming more and more conscious about their well being but have less time to take care of. Since 1933, Hindustan Unilever is a well known name in every part of the country. Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. As per an estimate, two out of three Indians use its many home and personal care products, food and b everages. As more and more Indians are leaving their doorsteps to explore the outside world, need of ready to use products are growing at a tremendous pace. The young generation wants to get maximum health care facilities without spending much of their precious time. Hair problems are one of the very common problems in a day to day life. As todays lifestyle requires smart personality, hair care has become much important than ever before. Keeping these conditions in mind, HUL is trying to bridge the gap b y introducing the JASMINE HAIR SANITIZER. This sanitizer has some unique features which will make it an after-sought product in the modern Indian life. Some of its features include: Pure herbal product No need of water 3 minutes and its done Non-alcoholic Anywhere, anytime Kills germs and bacteria Nourish hair and make them smooth and shiny Anti dandruff No side effects
This report has tried to find out the prospects of this product along with various factors to be considered while launching this product. The demand analysis has been done to identify the possible future demand of the product, the target customers and the features it should contain. The whole process is done by means of a survey of prospective customers along with forecasting technique like chain ratio analysis.
The technical analysis has been covering the aspects of suppliers of raw material, machineries, technology and plant location and layout. Then the environmental analysis will cover the water and waste disposal laws that the company has to abide in order to provide protection to the environment. HUL has always been very sensitive to environmental issues and tries to give back to the nature as much as possible. In all, the product can be considered as the need of the hour and as pioneers, it could be a profitable start up for the company.
Overview of the product
The product would be in a semi liquid form which can be applied directly on the hairs with the help of hands. In just a span of 3 -4 minutes, the strong herbal formula of the sanitizer will clean the hairs and make them smooth and shiny. It would be available in various verities catering the d iverse need of the consumers so that every problem shall have a solution in this Hair Sanitizer. For rough and dry hairs Oily hairs
Initially, the hair sanitizer would be available in these 2 categories only, but later on it could be expended to other spe cific categories.
Physical Appearance: -
The hair sanitizer would be available in plastic bottles and tubes in many suitable volume options like 20gm, 50gm and 100gm.
The plastic used for the packaging would be of very high quality which will not effect the preposition of the solution at all. These packages would be of two colors - pink for dry hairs and greenish blue for oily hairs.
Solution Composition: -
The solution would contain various herbal extracts and oils which are very necessary and effective in Hair Care. Benzalkonium chloride or triclosan (in place of alcohol) Water Aloe vera ext. Floral fragrance Triethanolamine, Acrylates/ c10-30 Glycerine Grape leaf extract and wheat germ extract and soyabean extract, Mannitol cellulose, Ultramarines ci 77007 Vitamin e acetate, Peppermint extract Pigment blue 15 (this is colour which would vary with each variant) Ginger oil Ashwagandha extract Reetha and shikakai extract hohoba oil lemon extracts Amla fruit extract Permitted preservatives
The items, quantity and composition of these items shall vary as per the type of sanitizer.
Demand and Market Analysis
For determining the demand of the product and market opportunities, a survey was conducted taking 120 respondents in all. The demographics of these 120 respondents are: 73 are females 47 are males 80% of the respondents were in the age group of below 30. 60% of respondents are students 38% of respondents are working 02% of respondents are housewives.
The outcomes of this survey are:o 62% respondents wash their hair 3 or less than 3 times a week o 37% respondents wash their hair 4 -5 times a week
On an average, people tend to wash their hair 3-4 times a week
o 94% respondents use shampoo for cleaning their hair.
The main competitor is the shampoo products.
o 44% respondents said dirt and pollution as their biggest reason for hair problems. o 32% said dry unmanageable hairs o 20% said oily hairs
The sanitizer must have the cleaning power to tackle the dirt and pollution related problems. Also, it should nourish the dry, unmanageable hair and remove the unnecessary oil from oily hairs.
o 50% respondents use shampoo specific to some purpose like Anti dandruff, for dry hair, oily hair etc.
The sanitizer must remove the dandruff problem as well.
o Almost half of the respondents were loyal to a specific brand like Loreal, dove, sunsilk etc.
This half population needs special attention and efforts to switch to the Hair sanitizer. Rest half could switch comparatively easier. The sanitizer bust be positioned in a way that it looks much better than any other shampoo in terms of usage and result.
o 75% respondents like to use conditioner after the shampo o.
The hair sanitizer should contain ingredients that can be used as conditioners.
o 77% respondents feel they are loosing hair with high or moderate pace. o Main reasons for the hair fall are Dirt and pollution along with changing weather conditions. o 80% of them never consulted dermatologist for their hair problems.
The hair sanitizer should also have herb extracts and oils which can check this hair fall.
o Almost 90% respondents admitted they are unable to give sufficient time for their Hair Care. o Almost all of these respondents are willing to try a less time consuming product.
It means they can accept a quality product which is very less time consuming and easy to use.
o 87% respondents are ready to try out the hair sanitizer.
These respondents liked the idea and concept of hair sanitizer and might consider accepting it once it satisfies their needs and requirements.
Overall outcome : - the respondents are willing to try out this new product for their hair solutions. The main target of this product must be the young generation and the working class people as they are the ones who dont have time for lengthy hair care processes. As they wash their hair on an average 3 -4 times a week, so the effective period of the sanitizer must be at least 2 days or more.
Potential of the market: -
After determining the acceptability of the product by the potential customers, the next thing in line is the market potential. It is done to find out whether there is sufficient market for this product or not. As the product is new in the market and is unique in its nature, chain ratio projection technique is chosen. In this technique, Market Sales Potential is a function of: 1. The number of Prospective Buyers (B) 2. The Quantity Purchased (Q) 3. The Price of an Average Unit (P) Population of Delhi (A) Hair care items penetration in urban areas (B) Per application usage per person (C) Average application in a year (D) 1,70,00,000 30% 10 ml on an average 3 X 52= 156 times (taking average 3 applications per week) Approx. Rs 0.75 per ml. (taking Rs. 15 for a 20 ml tube)
Price of average unit (E)
Market potential of sanitizer - A x B x C x D x E i.e. 1,70,00,000 x .30 x 10 x 156 x .75 = Rs. 600 Crores
As shampoo industry is growing at a rate of 20-25% for last few years, prospects of hair sanitizer also looks good. Only Delhi has a market of around Rs. 600 crores. If rest of NCR region included, it could touch Rs. 1000 crores or so. So, there is a huge market waiting for the right product.
Technical Analysis
Vendor selection : - after evaluating many options, the following firm s look best for the supply of raw material like herbal oils and extracts.
Alchemy chemicals, Ujjain, Madhya Pradesh . Its an ISO 9001:2000 certified company with total annual sales of around US$ 5 million. It exports 70-75% of their products. It has most modern scientific extraction facility which has Food and Drug Administration approval. It has most modern huge extractors along wi th distillatory, dryers and other machineries. It is among the few companies of India which has in -house sterilization facility. Awarded by the Good manufacturing facilities certification. [Link]
Venkatesh Natural Extracts Pvt. Ltd Based in Chhindwara, Madhya Pradesh
HACCP ISO 9001:2000 certified
Total annual sales around US $7.5 Million [Link]
Process of selection: -
First, quotations would be invited from each party and based on the suitable quotation as per the companys requirement, a party would be selected. Contract terms and conditions would be finalised then , which will include quantity of each item, time limit for the delivery, tenure of the contract, pricing methods etc. After that, all the other documentation work would be completed. The quotation received from the Alchemy chemicals states: 25 ml rates:Lemon Rosemary Peppermint Jojoba oil Rs. 150 Rs. 250 Rs. 75 Rs. 90
For Machinery: -
Volumetric paste filling and packaging machine Cost Output/minute Requirement Manpower : : : : around 40,000 per machine around 20 fill per minute 3-4 machines 2 person per machine
Vendors:1. Raksha Packaging, Faridabad, haryana a. Established in 1976 b. Products:- FFS Machines,Flow Wrap Machines,Packing Machines c. Website- [Link]
2. S.S. Pharma tech, Mumbai a. Established in 2002 b. Products:- Tube Filling machines, Paste Filling Machines, Pharma Machinery, Packing Conveyor, Packing Conveyor, Mass Mixer, Lobe Pump, Homogenizer, Capping Machine, Vibro Shifter, Powder Screw Feeder, bottle drilling machine
Selection process: -
Bids would be invited from interested parties along with all the specifications of the machinery. Overall cost of the procurement would be determined along with estimated future repairing costs, training costs etc before finalising on a machine. Then, necessary documentation work would be completed.
Plant location and layout: -
Factory size Factory location Reason
Around 1000 square meters Jind (Haryana) Proximity to delhi Cheap land rate (Rs. 2000 per square mtr.) as per HSIIDCL Developed industrial area Support from state government
Total cost of land Labour availability Waste disposal Plant layout
Rs. 20 lakhs adequate treatment plant space for 3-4 machines, conveyer belts, raw material storage space, finished goods storage space, area for loading and de loading of trucks etc.
Coding- for efficient inventory management, every item of raw material as well as finished goods would be coded and magnetic strips would be attached to the packages. In this way, company would be able to find out the level of stock at any point of time. Also, tracking the finished products as in which market they went would also be easy.
Environmental Analysis
Although, the hair sanitizer here is a herbal product but still, there would be some use of chemicals occur. Also, during the manufacturing process, there ought to be some kind of wastages which are more or less inevitable. So, a proper disposal system is very necessary.
Waste disposal and chemical treatment : - a water treatment plant would be there in order to check the leakage of harmful che micals in the local water bodies. The chemicals released/used would be degraded using specific reagents or bacterial process.
There are several environmental norms that the governments have framed which a company has to abide. Some of the provisions in simple terms are: A State Board or any officer empowered by it in this behalf shall have power to take for the purpose of analysis samples of water from any stream or well or samples of any sewage or trade effluent which is passing from any plant . They can inspect the factory premises anytime. Chemicals are not allowed to discharged in local water bodies like rivers, lakes, wells etc without properly treating them. Company has to follow the Water (prevention and control of pollution) act 1974, Environmental protection act. 1986 and any other local environmental laws. Non-compliance could result in the termination of licence and/or hefty fine and/or jail term depending upon the impact of the hazardous act.
Recommendation and Suggestion
The jasminehair sanitizer is a unique and promising product which, if launched carefully, can be a great success. It also has a name of HUL product with it which will make its path a bit easier. But still, a proper planning is must. Enhance the scope of this study beyond Delhi/NCR to get a broader picture. The product should be as much herbal and natural as possible. Awareness is must, especially among the youngsters and office goers. In the long term, company should include other categories also like kids. Packaging must be attractive There is a scope of further market research for better estimations. Company may include a variety which can be used by boys as Hair gel cum sanitizer.
Conclusion
This product could be a boon for those who have very tight schedules and are unable to give sufficient time for the Hair Care. Its use anywhere anytime feature makes it a very versatile product which could be handy anytime. As most of the respondents were very enthusiastic about this product, it cont ains very high hopes for future.
Questionnaire
Survey for Hair Sanitizer Name:Gender:Phone no.:Age:e-mail id:Occupation:-
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How many times do you wash your hair in a week? _____________________________ You prefer using: a) Shampoo b) Soap c) Any other, please specify _____________ Why do you use a shampoo: a) Dermatological ailment, b) Unmanageable hair, c) Dirt and pollution, d) Oily hair. You prefer using some specific category or use a specialised shampoo? a) No b) Yes, then please specify ______________ Do you stick to a specified brand? a) Yes, please specify_________________ b) No You prefer using something else after using shampoo: a) Conditioner b) Hair Serum c) Something else like egg, curd, beer etc. What is the intensity of your hair fall: a) High b) Low c) Minimal What do you think could be the possible reason for your hairfall? a) Professional Stress, b) Changing weather conditions, c) Age, d) Chemically treated hair e) Split ends f) Dirt and pollution Because of the above mentioned reasons have you ever consulted a dermatologist? a) Yes b) No Please choose the nearest possible constraint for not washing your hair frequently: a) Time constraint, b) Family constraint, c) Leave home early morning. Are you conscious of washing your hair on Tuesday, Thursday and Saturday? a) Yes b) No Would you like to use something that takes much less time a) Yes b) No Would you like to use a hair sanitizer instead of shampoo? a) Yes b) No With what frequency would you like to use the sanitizer? a) Frequently b) Rarely c) Only on special occasions like parties, marriages etc.
