INDUSTRIAL

PROJECT

STUDY OF THE INDIAN DEODORANT

INDUSTRY

OBJECTIVE OF THE
STUDY

Identification & analysis of Competitive forces of the

industry on the basis of Michael Porters five force model.
Identification of threat and opportunities in the External
business environment with the help of OT (Opportunities,
Threat) analysis.
In-depth analysis of factors affecting the business
environment with the help of Political, Economical, Social
and Technological (PEST) analysis.
Strategic analysis to know about Strategies followed by the
industry in the current market scenario.
Segmentation Analysis would be undertaken so as to know
the industrys major player operate in which segment and
how Industry is divide in various segment.

RESEARCH
METHODOLOGY

Study Area- Indian Deodorant Market

Sources of Data Collection Data for the research
project has been collected through Secondary data sources
such as Books, magazines, euromonitor, CRISIL, FICCI,
internet and Business and marketing periodicals.

Research Type: Exploratory Research Exploratory

Research is being undertaken so we can find insights and
understanding of Indian deodorant Market.

Limitations of Study Boundary surrounding the project

is time, unavailability of financial data and other financial
limits as well as we have to rely on secondary data,as
organisations dont manage these products as SBUs

INDUSTRY PROFILE

The Indian Deodorant market is of Rs 2200 crore, the male

segment contributes Rs 1,600 crores, pegging the male to female
ratio at 70:30.
The industry has grown at over CAGR of 40% p.a over the last 5
years
Hindustan Unilever is the market leader in deodorants, with 31.5%
market share. Its flagship product, Axe, is highly sought after by
both middle and upper classes, followed by Paras Pharmaceuticals
Set Wet, with 10% market value, and McNroe Chemicals Wild
Stone garnering 9% market value.
Some of the deodorant brands that cater to the females are Nike,
Fa, Dove, and Nivea.
To tap into the growing needs of urban consumers, new entrants
like Fogg and Engage have hit the right chord with the consumers.
Fogg has touched 0.5 per cent to 10.5 per cent market share in
two years.

MALE MARKET SHARE CHART

Brand

Market Share

Axe

31%

Set Wet

10%

Fogg

10.50%

park Avenue

8%

Wild Stone

9%

Adidas

6%

Others

23%

Source- digitalimpulse.in

FEMALE MARKET SHARE CHART

Brand

Market Share

Eva

19%

Nivea

10%

Fogg

10.20%

Spinz

10%

Engage
Others

6%
43%

Source- digitalimpulse.in

MICHAEL PORTERS FIVE FORCES

MODEL

Equivalent utility products is not a rare phenomenon, Stick and solid

Substitutes Available

Barriers to entry

Bargaining power of suppliers

Bargaining power of customers

deodorants constitute the second largest deodorants segment,

followed by Roll-On deodorants. 'Other' deodorants segment,
comprising niche formats such as cream, gels, and wipes, represents
the smallest but fastest growing market in the global deodorants
market.
Low capital costs, technology, distribution network, and availability of
chemicals .
Low, due to stiff competition.
Very high, due to availability of options. FOGG catapulted its market share
from 0.5 % to 10.5 % in just two years, due to sensible usage of
communication.
High. Expected to increase even further.

Existing Competition

Dove, Axe, Sure, Rexona, Old Spice, Secret Temptation, Fogg ,

Engage, Park Avenue.
Around 300 private as well as local level brands are there in the
market

SWOT ANALYSIS

STRENGTH
STRENGTH
Investments
by
foreign
Investments by foreign deodorant
deodorant manufacturers
manufacturers
Increase in
Increase
in the
the export
export levels
levels
Iow
Iow cost
cost and
and cheap
cheap labour
labour
Rise in
in the
the working
working and
and middle
middle class
class income
income
Rise
Increasing
demand
for
european
quality
Increasing demand for european quality
Developing market
market for
for environment
environment friendly
friendly products
products like
Developing
like
FOGG
FOGG
Large
Large youth
youth population
population

OPPORTUNITIES
OPPORTUNITIES
Growing
population
Growing population in
in the
the country
country

Rising
Rising living
living standards
standards
Still the
the industry
industry is
is in
in Infancy
Infancy stage,with
lots of
of growth
Still
stage,with lots
growth
potential
potential
Rising
Rising rural
rural demand
demand
Emerging
Emerging women
women segment
segment

SWOT
WEAKNESS
WEAKNESS
Low
quality
compared
Low quality compared to
to other
other Asian
Asian countries
countries
itself,leaving
apart
the
itself,leaving apart the west
west
Unability
Unability to
to reach
reach rural
rural marketspace
marketspace
Very
high
advertisement
Very high advertisement cost.
cost.
Production
Production cost
cost are
are generally
generally higher
higher than
than some
some other
other
asian
asian states,
states, such
such as
as china
china
Low
Low investment
investment in
in r&d
r&d area
area
Rural
Rural demand
demand is
is still
still low,
low, due
due to
to low
low income
income levels
levels and
and
lack
lack of
of exposure
exposure

THREAT
Less skilled labour
Lack of technologies for indian companies
Increase in the import tariff and technology cost
Smaller players that do not fulfill international
standards
Increased congestion in the urban areas
Environmental factors could affect
Misleading advertisements
Duplicate products

PEST ANALYSIS

Political
Indian government cosmetics policy aimed at promoting an
integrated, phased and Conducive growth of the Indian cosmetic
industry.
Allowing automatic approval for foreign equity investment up to
100 per cent, with no minimum investment criteria.
Establish an international hub for manufacturing small integrated
business parks with lucrative soaps.
Ensure a balanced transition to open trade at minimal risk to the
Indian economy and local industry.
Assist development of products keeping in mind the safety norms
of the society
Laying emphasis on R&D activities carried out by companies in
India by giving a weighted tax deduction for in-house research and
R&D activities.

PEST ANALYSIS contd.

Economic
The Indian economy has grown at 8.5 per cent per annum.
The manufacturing sector has grown at 810 per cent per
annum in the last few years.
FMCG,and more specifically the personal care segment is
growing at an emphatic phase
Finance availability to small and medium manufacturers has
grown in scope during the last few years.
Several Indian firms have partnered with global players. While
some have formed joint ventures with equity participation,
others have entered into technology tie-ups.
Establishment of India as a Manufacturing hub, for personal care
products.

PEST ANALYSIS contd.

Social
Growth in urbanization, 4th largest economy by PPP (purchasing power
parity) index.
Upward migration of household income levels.
Increase in PPP, led to the increase in market share of compact cars.
Huge youth population,(65% of the population under 35 years of age)
Indian customers are highly discerning, educated and well informed. They
are price sensitive and put a lot of emphasis on value for money the well-off.
Controversial advertisements often hurting Indian values
There is also a role of environmental outfits as well as NGOs to create
awareness against the use of aerosol based deodorants.
Long summer months,when people want refreshing and cooling effects,which
can be directly achieved using deodorants.
New measures are being taken to make the cans less polluting. This well help
in reducing the exploitation of atmosphere. Better atmosphere gives better
life.

PEST ANALYSIS contd.

Technology
With the entry of global companies into the Indian market, advanced
technologies, both in product and production processes have developed.
With the development or evolution of alternate cooling technologies,
aerosol cans are fast exiting the market.
Few global companies have setup their R&D centers in India.
Government initiatives regarding tax rebates have led to global
players setting up their R&D centers in India. India is harmonizing its
Emission Norms for these kinds of industries with the European
Regulation and has adopted Euro III, equivalent norms in 11 Metropolitan
Cities from Apr 1 2005.
A lot of new safety measures are now taken into consideration before
the car or any other motor vehicle is launched to ensure its safety and
reliability.

ANSOFF MODEL
ANALYSIS

MARKET
SEGMENTATION

Age
Group

Segment Trends

Brands Targeting
the segment

14-17
years

1. Influenced by parents
2. Curious & explorative
3. No Loyalty

Axe, SetWet,
Rexona, Fa,Spinz

18-22
years

1. More of an experimenting group Axe,SetWet,Nike,

2. Seek attention and want to be
Adidas,Cinthol
trendy

23-28
years

1. Trend to become loyal towards a Axe, Fogg,Park

particular brand
Avenue,Nivea,
2. Try expensive variants
Playboy
3. Status seekers

28+
years

1. High brand loyalty

2. Health conscious
3. High expenditure

Old
spice,Tommy,Do
ve,Fogg,Wild

ADVERTISEMENT
ANALYSIS

Exhibitionism (Till early 2012)

Axe from HUL is controlling the majority of the market space through its
campaign positioning as a chick magnet & helping men be attractive to
women, has been copied by many Me too brands like wild stone
,Kamasutra etc. AXE generally had saucy ads showing barely clothed
women throwing themselves at men.
Axe advertisement which showed angels dropping from the skies when a
man uses AXE, was not considered appealing by the Indian consumers.
Functionality(late 2012)
FOGG has a unique positioning, as it is high on fragrance & it uses a nonaerosol pump which does not require gas. Hence FOGG does not vaporize
easily and linger when sprayed on - overall a value for money proposition.
FOGG has more number of sprays per bottle as compared to any of its
competitor, which has been communicated effectively to the consumer
through the Brand communication efforts.

FINDINGS

India`s largest FMCG company HUL ,holds the maximum share .

The industry has grown at over CAGR of 40% p.a over the last 5 years
11th largest deodorant market in the world
The industry is still at its infancy stage, showing huge growth potentials
The Industry which grew at a rate of above 25% over 2001-07 has grown by around
40% after 2009 .
HUL, McNroe, Marico, Adidas, CavinKare, Vini are the dominant player of the Indian
deodorant Industry.
Ability to enhance and vary product mix, Sales and distribution service network,
Access to new technologies and niche markets are the key success factor of Indian
deodorant Industry.
Environmental impacts have been a key concern over the last two years.
Rise in interest rates may prove to be a dampener on the entrepreneurial ground.
Cost advantage is the strongest point for the Indian deodorant Industry,as it can be
developed as a export base
Perfumery industry can never be its competitor owing to lack of
branding,technological advancements of the later,or the youth appeal.
In near future we are not seeing much substitute of deodorant Industry,apart from
some packaging variants
Indian deodorant Industry use sales promotional tool as marketing tool most and

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