A STUDY ON THE MARKET SIZE

OF THE PERFUMED HAIR OILS

IN THE RURAL MARKETS

Submitted by- RAM

INDIAN FMCG INDUSTRY IN CONTEXT OF

RURAL
MARKETING
1)STRUCTURAL ANALYSIS
OF
FMCG INDUSTRY

3) Competitions

1. Individual items are of small

value (small SKU's) although all
FMCG products put together
account for a significant part of
the consumer's budget.

Factors that enable small,

unorganized players with local
presence to flourish include the
following

2. The consumer spends little

time on the purchase decision.
He seldom ever looks at the
technical specifications.

Basic technology for most

products is fairly simple and
easily available.

The small-scale sector in India enjoys

exemption/ lower rates of excise duty,
3. Limited inventory of these
sales tax etc. This makes them more
products (many of which are
price competitive vis-a-vis the organized
perishable) are kept by consumer
sector.
and prefers to purchase them
A highly scattered market and poor
frequently, as and when required.
transport infrastructure limits the ability
of MNCs and national players to reach
4. Brand switching is often
out to remote rural areas and small
induced by heavy advertisement,
towns.
2)Huge
recommendation of the retailer
or Distribution Network
Low brand awareness enables local
word of mouth.
players
to market
their
spurious looka)India is home to six million retail
outlets,
including
2
brands.
million in 3,160 towns and fouralike
million
in 627,000
villages.
b) Since retailers are reluctant to allocate slow
moving items important factors for the FMCG s to
success are the ability to build, develop, and maintain

PROBLEMS PREVAILING IN THE

PARICULAR SECTOR
Less developed infrastructure.
In rural markets, brands are non-existent. They identify FMCG
by three things -primarily by color, visuals of animals and birds
and by numbers.
Low education level.
To do proper marketing of their products FMCG companies
needs to educate the consumers. So if you have to create
brandcommunication, marketing efforts must be supported by
education.
Longer credit period requirement.
Rural retailers are far less specialized than their urban
counterparts and carry a wider range of products. Since
frequent delivery is not possible in their part of the world, they
tend to carry only a single brand in each product category &
usually, the brands that are first on the rural shelves become
synonymous with product category and are difficult to dislodge

MARICO business profile

Marico is a leading Indian Group in Consumer Products and Services
in the Global Beauty and Wellness space. Marico markets wellknown brands such as Parachute, Saffola, Sweekar, Hair & Care,
Nihar, Shanti amla, Mediker, Revive,Manjal, Kaya, Sundari,
Aromatic, Camelia, Fiancee and HairCode.
a)Distribution channel
b)Sales hierarchy
Need of the project:Marico has been the undisputed market leader in the hair oil, antilice segment. The brand equity of this FMCG Company is one of the
best in the market. But, over sometime, the company has been
facing lots of threat from other hair-oil companies like Bajaj almond
drops.Dabur,shalimer&vasmol in the light hair oil segment.In this
context, the project was undertaken for, competition mapping&to
determine the existing market size of Hair-oils .

RESEARCH METHODOLOGY
a) RESEARCH APPROACH:1. Primary data collected by the survey method.
2. Secondary data collected by surfing the Internet, Organization records,
etc.
b)RESEARCH INSTRUMENTS:1. Detailed Questionnaire Method
2. Informal face to face interview method
c)SAMPLING PLAN:
Sampling Unit :-Retailers.stockists,consumers
Sample size :-190 outlets,100 consumers
Sampling Procedure :-Questionnaire, personal interaction & Secondary
data.
Research Area: Markets studied
Golaghat
Dergoan
Amguri
Nazira
Bokakhat
Dimow
Titabar

Research objectives: Competition mapping of the hair-oils category with special

reference to
a)hair&care,BAD,Clinic
all clear
b)Parachute jasmine,Bajaj jasmine,Vasmol jasmine.
c)Parachute,shalimer,paragon&fortune coconut oils
To understand customers response to the small packs20ml,50 ml,75 ml,100ml.
To know the availability of coconut oils in the rural markets
Companies under study: Bajaj Almond Drops
Vasmol jasmine
Paragon
Shalimer
Fortune coconut oil.

FINDINGS&ANALYSIS

Availability of marico product is 92%.

Outlets

Numbers

Keep marico product

174

Donot keep marico

products

16

Total outlets

190

Availability of Marico products in the markets

Outlets keep Marico products
Outlets do not keep marico products
8%

92%

Reasons for not keeping Marico productsReasons for not

keeping marico
products

No of outlets

No sales person(PSR
or sales person from
stockist)visit

Inadequate credit
facility

Delivery issue

Total outlets

16

From the table, it is

seen that irregular
visit made by the
sales person is the
prime reason for
not keeping marico
products followed
by the improper
delivery&credit
facility.

c)Retailer purchasing from outside

the territory
MARKET

aaa

NO OF OUTLETS PURCHASE

TOTAL

FROMSTOCKIST

WHOLESELLE OUTSIDE THE

R
TERRITORY

Underutting of rate

GOLAGHA
T

25

29

54

NAZIRA

15

20

37

AMGURI

15

TITABAR

15

11

29

BOKAKHAT 8

DIMOW

14
2

Reasons for purchasing outside the terrtory

Less offering in scheme

No credit facility
No sales persons visit
No cash discount

13%
6%

13

50%

19%

DERGAON

PURCHASED MARICO PRODUCT FROM

OUTSIDE THE TERRITORY

12

16

174

From the above table it is observed that in the

Amguri market most retailers purchases from outside
the territory,followed by Titabar&Dergoan.

13%

Undercutting of rate is the

major reason for the
retailers for purchasing
out the territory

2)Factor that influence a retailer to motivate a customer to buy a

product

When I asked that is profit margin is important for them to

motivate that customer to buy that brand, then 81% said that
profit margin is an important factor&the rest of 19% said no.

Factor that motivate a the retailer

No; 19%

Yes; 81%

3)Brand awareness of coconut oils among users

3.a)When I asked retailers about brand
awareness of coconut oils among the
consumers then 62% said that yes,
customers coming to my shop
specifying the name of the particular
coconut oil.

3)b)When I asked the 62%

retailers what
coconutoil
brand the most customers
specifying for when they
come to your shop,then 67%
said that customers come to
my specifying the name of
parachute,17% said shalimer.

Brand awareness of coconut oils

YES

NO

Brand awareness

others; 13%
paragon; 4%

38%
62%

shalimer; 17%
Parachute; 67%

3) Availibility of Parachute in different outlets as compared to

its competitors
BRANDS

PARACHUTE

SHALIMER

PARAGON

FORTUNE

CLINIC
PLUS
COCONUT OIL

TOTAL
OUTLET

VISITED
A B

Total

MARKET
GOLAGHA 4
T

20

30

54

55

NAZIRA

12

23

37

3 2

40

AMGURI

20

25

2 1

15

TITABAR

3 1

30

BOKAKHA
T

13

15

DIMOW

13

15

DERGAON 2

12

A=A class outlets= 4500< MONTHLY SALES

B=C category outlets= 2000< MONTHLY SALES< 4500
C= C category outlets=MONTHLY SALES< 2000

From the above availability table it can be said that the availability of
parachute in the different outlets is much better than its competitors
brands.

15

4)Promotions of various perfumed hair oil companies in the rural market

a)Point of sale advertisement of
bajaj almond drops

b)Wall painting promotion of

Marico at the point of sale.

5)Availability of perfumed hair oils(BAD,H&C,Clinic all clear) in the

outlets of different markets
BRANDS

MARKETS
GOALGHAT
NAZIRA
TITABAR
DERGAON

HAIR AND
CARE
A
B
4
20
2
10
2
4
1
3

BAJAJ ALMOND DROPS

CLINIC ALL CLEAR

C
30
20
15
8

A
4
2
3
1

B
20
12
5
3

C
30
23
20
9

A
1
1
2
1

BOKAKHAT

AMGURI

10

DIMOW

B
20
8
3
3

C
10
10
8

30
25
20

GOALGHAT

15

NAZIRA

10

TITABAR

5
0

DERGAON
BOKAKHAT
AMGURI
DIMOW

A=(A category outlets)=

4500< MONTHLY SALES
B= (B category outlets) =
2000< MONTHLY SALES< 4500
C=(C category outlets)=
MONTHLY SALES< 2000

Availability of H&C is found highest in Golaghat in the outlets including A category,B category,C
category followed by Nazira. The availability of hair&care is found lowest in Dimow,followed by
Dergoan.On the other hand the availability of bajaj almond drops is found highest in the outlets

7)Comparative study of Bajaj Almond Drops,Clinic all clear and H&C in terms of price
,consumer offer,trade offers
BRANDS

Bajaj
Almond
Drops
If
contains,
then Y
If dont
contain,
then N

MRP
(in Rs)

20 ml

10

50 ml

Y ,Godrej
soap
Y
,Chinthol
soap
N

24

sku

Consume
r offer

75 ml
100 ml
150 ml

Trade
offer

H&C

20 ml

50 ml

ns,then

Y
If dont
contain,
then N

Y
If dont
contain,
then N

N
Y,20%
extra

100

Y,20%
extra

60

N
N

150 ml

N
N

35

35
N

Retail
10%
10%
The blank row indicates
absence of 9%
such SKU of the brand

FINDINGS
i)SKU variety
of
Bajaj
almond drops
is higher than
H&C and Clinic
all clear.

20

38
42

MRP
(in Rs)

Ifcontai

ins,then

75 ml

200 ml

Clinic all
clear

Ifconta

75

200 ml

100 ml

MRP
(in Rs)

55

ii)Cash
discount of
Bajaj almond
drops,
Clinic
all
clearis
higher than
H&C.
iii)Retail
margin
of
Bajaj almond
drops,
Clinic
all
clearis
higher than
H&C.
Stretegy
adopted
by
both
the
companies :Both
the
companies are
trying
to
create
demand
among

7)Brand awareness
a)When I asked retailers about brand
awareness of perfumed hair oils among
the consumers then 56% said that
yes,customers coming to my shop
specifying the name of the particular
perfumed hair oil brand.the brand
awareness among the consumers is low
from the retailers prospective.

brand awareness

b)From the 44% retailers to where

most brand aware customers

specially come,63% said that
customers coming to their shop
asking bajaj almond drops .So we
can say bajaj almond is the most
preffered brand.

Brand awareness

clinic all clear; 6%

YES; 44%
NO; 56%

hair&care; 31%
bajaj amond drops; 63%

Monthly sales of Hair&care,bajaj almond Drops&clinic all clear

BRAND
H&C

GOLAGHA
T

(IN A CATEGORY OUTLETS)

BOKAKHA
DERGOA
T
DIMOW
TITABAR
N

800

200

BAD
CLINIC
ALL
CLEAR

1600

500

300

100

TOTAL

2700

800

BRAND

GOLAGHA
T

400

400

Monthly
sales(in Rs)

MARKETS
AMGURI

NAZIRA

200

120

400

450

1400

500

1000

900

120

90

200

180

1720

710

1600

1530

(IN B category outlets)

MARKETS
BOKAKHA
DERGOA
T
DIMOW
TITABAR
N
AMGURI

100

100

80

90

100

150

BAD
CLINIC
ALL
CLEAR

480

300

200

400

250

400

420

100

80

50

40

70

50

90

TOTAL

780

480

350

520

410

550

660

MARKETS

GOLAGHA
T

BOKAKHA
T

H&C

100

80

60

40

40

80

100

BAD
CLINIC
ALL
CLEAR

340

220

120

220

150

300

260

60

40

35

35

40

50

TOTAL

460

360

215

295

420

410

DIMOW

TITABAR

DERGOA
N

190

AMGURI

A
Between
2000&4500

Below 2000

NAZIRA

200

BRAND

Above 4500

H&C

(IN C CATEGOY OUTLETS)

Category

NAZIRA

Some
abbreviations
H&C=Hair care
BAD=bajaj
almonds drops
Sku=stock
keeping unit

To find the marketshare of H&C,Bajaj Almond Drops ,Clinic all clear in the different rural markets I have selected some of
the specific rural markets with very high sale,high sale,moderate sale&low sale,since it is notpossible to present to present
the
market
shares
of
all
the
markets
that
have
visited.

Sale

Market

Very high
sale
High sale
Moderate
sale
Low sale

Golaghat

CALCULATION OF MARKET SHARE

Total monthly sale is calculated in terms of the

brand sold in the respective outlet .

Nazira
Titabar
Dergoan

BRAND

GOLAGHAT MARKET

AVERAGE
SALE IN THE
A CLASS
RETAIL
OUTLETS

Total outlet covered in the Golaghat market =55

Among the outlets surveyed I have found that 54
outlets keep both BAD,H&C and33 outlets kept Clinic
allAVERAGE
clear.
AVERAGE
SALE IN TERMS OF
SALE OF B
CATEGORY
OUTLETS

SALE OF C
CATEGORY
OUTLETS

H&C

800

200

100

BAD

1600

480

340

CLINIC ALL CLEAR

300

100

60

AVAILABILITY

(Availability in the
different category
outlets)*(average sale)
4*800+20*200+30*100=1020
0
4*1600+20*480+30*340=262
00
3*300+20*100+10*60=3500
TOTAL SALE=39900

MARKET SAHRE OF BAD=(Sale of BAD/total

sale)*100=(26200/39900)*100=66%
MARKET SHARE OF CLINIC ALL CLEAR=(3500/39900)*100=9%
MARKET SHARE OF H&C=(10200/39900)*100=25.56%

Red colour digits

represent the A category
outlets
Green colour digits
represent the B category
outlets
Blue colour digits

NAZIRA MARKET
MARKET SHARE OF H&C=(Sale of H&C/Total sale)*100
=(4400/18620)*100
=24%
MARKET SAHRE OF BAD=(12820/18620)*100
=69%
MARKET SHARE OF CLINIC ALL CLEAR=(1400/18620)*100
=7%

DERGOAN MARKET(Total outlet covered in the Dergoan

market =40)

MARKET SHARE OF H&C=(Sale of H&C/Total sale)*100

=(710/3610)*100
=20%
MARKET SAHRE OF BAD=(2600/3610)*100
=72%
MARKET SHARE OF CLINIC ALL CLEAR=(300/3610)*100
= 8%

MARKET SHARE OF H&C=(Sale of H&C/Total sale)*100

=(1320/12570)*100
=11%
MARKET SAHRE OF BAD=(Sale of BAD/total sale)*100
=(10600/12570)*100
=84%
MARKET SHARE OF CLINIC ALL CLEAR=(650/12570)*100
=4%

From the above calculation it is found that Bajaj almond Drops

is the market leader.

Analysis regarding quantity of perfumed hair oil (H&C),Bajaj Almond Drops)purchased

with
Monthly
salesoftheoutlet:
I have made a cross tabulation of quantity perfumed hair oil purchased&their monthly sales in
the outlet.After that I have made chi-square test assuming the null hypothesis:-there is no significant
between quantity purchased by the retail outlet & monthly sales of the respective outlets

9)Analysis regarding quantity of perfumed hair oil (H&C),Bajaj Almond Drops)purchased with Monthly sales of the
outlet:
I have made a cross tabulation of quantity perfumed hair oil purchased&their monthly sales in the
outlet.After that I have made chi-square test assuming the null hypothesis:-there is no significant between quantity
purchased by the retail outlet & monthly sales of the respective outlets.
For hair&care(H&C)
Quantity purchased for H&C * Monthly sales
Chi-Square Tests

Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear
Association
N of Valid Cases

Value
80.774a
72.265
57.779

10
10

Asymp.
Sig.
(2-sided)
.000
.000

.000

df

164

a. 10 cells (55.6%) have expected count less than 5.

The minimum expected count is .43.

Symmetric Measures

Nominal by Nominal
N of Valid Cases

Contingency Coefficient

Value
.574
164

Approx.
Sig.
.000

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null
hypothesis.

Interpretation
From the above the chi square test it is found that the value of Pearson Chi-square is 0.000,which is less
than 0,01,thus rejecting the hypothesis we can conclude with 99 percentconfidence level that there is a significant
relation between the monthly sales in the outlet &the quantity purchased for H&C.
The contingency coefficient which is found to be .574 is more than 0.500 and less than1. This indicates that
the relationship between the variables selected very strong. And significance level of 0.01 indicates that the
relationship holds true.

Cross tabulation
Crosstab

Crosstab
Count

Count

quantity
purchased
for h&c

Total

0 to 6
6 to 12
13to 18
19 to 24
25to30
31 to 36

Below Rs
2000
47
34
24
1
1
107

Monthly sales
2000<sale
s <= 4500
4
18
8
7
3
3
43

4500 <
sales
1
4
2
1
6
14

Total
51
53
36
10
5
9
164

From the above cross tabulation it is

seen that retailers having their monthly sales
below 2000 mostly purchase 13 to 18
pcs.The retailers having income level more
than 4500 usually purchase31 to 36 pcs. The
retailers having monthly sales in
between2000&4500 most purchase 19 to 24
pcs of Bajaj Almond Drops.Thus it can be
concluded that a retaler having high monthly
sales going to purchase more pcs.
Important observation

quantity
purchased
for BAD

Total

0 to 6
7 to 12
13 to 18
19 to 24
25 to 30
31 to 36

Monthly sales
Below Rs 2000<sale 4500 <
2000
s <= 4500
sales
21
16
3
1
30
8
3
21
21
3
19
13
4
2
5
107
47
16

Total
21
20
41
45
36
7
170

From the above cross

tabulation it is seen that retailers having their
monthly sales below 2000 mostly purchase
0 to 6 pcs&6 to 12 pcs,13 to 18 pcs.The
retailers having income level more than
4500 usually purchase31 to 36 pcs.thus it
can be concluded that a retaler having high
monthly sales going to purchase more pcs.

It is seen from th both the cross tabulations that retailers having monthly sales in between 2000&4500 purchase
more 19 to 24 pcs of bajaj almond drops than Hair &Care.

Test for one way anova

There is no significant difference in the the mean ratings given by the consumers in the different skus of H&C.

ANOVA
Preference level of the hc users

Between Groups
Within Groups
Total

Sum of
Squares
28.500
14.500
43.000

df
2
9
11

Mean
Square
14.250
1.611

F
8.845

Sig.
.008

INTERPRETATION

Since the significant value is less than0.001,we can said that there is a
significant difference between the ratings given by the H&C users in the
different skus of H&C.

H&C users
50 ML

100ML

200 ML

17%
50%
33%

From the above

observation it can be said
that 50 ml is the most
preffered sku of H&C
among H&C users.

Comparison of the Price lists of jasmine hair oils

Sku(parachute MRP
jasmine)
50 ml

14

9%

RATE TO
PRIMARY
RETAILER
SCHEME
(14/1.09)=12.84
6

100 ml

29

9%

(29/1.09)=26.60

25.61

200 ml

49

9%

(49/1.09)=44.95

42.9

Scheme

Net rate

Bajaj jasmine

R.M.

SECONDARY SCHEME
4

NET RATE IN
CARTON
12.34

50 ml

18 10% (18/1.10)=16.28

5%

[16.28-(16.28*5%)]=15.4

100 ml

34 10% (34/1.10)=30.90

5.20%

[30.9-(30.9*5.2%)]=29.2

200 ml

65 10% (65/1.10)=59.09

5.20%

[59.09-(59.09*5.2%]=55.9

SCHEME

Net rate

6.36-0.56=5.80

SKU(Vasmol
jasmine)
20 ml

MRP

R.M.
7 10%

RATE TO
RETAILER
(7/1.10)=6.36

35 ml

10 10%

9.09

One piece free

with one dozen
Do

50 ml

12 10%

10.9

Do

100 ml

26 10%

26.63

Do

Comparison of offers

Consumer offer

BRANDS

Bajaj Jasmine

Parachute
Jasmine
If contains, then

Vasmol Jasmine

sku

If contains, then
Y
If dont contain,
then N

Y
If dont contain,
then N

20 ml

Y
If dont contain,
then N
N

35 ml

50 ml
100 ml
200 ml
Trade offer

N
N
N

N
Y,20% extra
Y,20% extra

20 ml

If contains, then

N
N
N

35 ml

One piece free

with every one
dozen
One piece free
with every one
dozen
One piece free
with every one
dozen

50 ml

100 ml

200 ml

Retail Margin

10%

9%

10%

Cash discount

1.5-2%

1.5%

2%

Market share of parachute jasmine

Golaghat
Brand
Parachu
te
Jasmine
Bajaj
Jasmine
Vasmol
Jasmine

Averagemonth
ly sale,A

Average
monthly sale

Average
monthly sale

Monthly Sale
Availability in the different category
outlets*average sale

900

B
300

C
200

200

150

60

3*200+20*150+20*60=4800

500

170

80

2*500+20*170+20*80=6000

4*900+20*300+30*200=156
00

Total
Sale=25400
Market share of parachute jasmine=61%

Market share of bajaj jasmine=19%%

Market share of Vasmol jasmine=20%

Red colour digits

represent the A category
outlets
Green colour digits
represent the B category
outlets
Blue colour digits
represent the C
category outlets

Findings from the other market it is sais that parachute is the

clear market leader.

Recommendations

Value for money:Maricos strategy when it comes to consumer offer should be improved.During my market
study I have found that the competitors offer involving a free FMCG product (soap)along with
the hair oil is more alluring to consumers than offering 10% or 20% extra.
Thus Marico could explore a tie tie up with other FMCG segment &can offer both the product
at a discounted rate.This step will create a better pull for the product in the market.
Increase the market coverage
In the rural market it has been found that the stockist does not have complete coverage of
the area as assigned to him due to lack of manpower&other financial problems.Marico could
give assistance to such stockists by proving a part time sales persons ,so that he can cover
every corner of his territory.This step will boost the sales for the Marico along with stokists.
Incentives for retailers
The awareness among consumers,as he is the sole point point of contact with the end
consumers.In the most cases I have found that the retailers promote or takes initiatives to
sell a product which give him better profit margin as the brand awareness among consumer
is very low.So they should strengthen the secondary schemes or trade offers among the
reatailers &also provide better margins than competitors.
Sales support
The sales support provided by the Marico is very low to boost the sale for the product.
Marico should take extra sale support initiatives to reinforce the sale.
The main competitor of H&C ,bajaj almond drops is adopting aggressive promotions
in the retailers to boost the sale.On the other
hand Marico is lagging in such cases.They should also give point of sale materials to retailers
which will help to create consumer demand.

Push strategy
Parachute is clerarly market leader in the in terms sale availability in the coconut oi segment
.So Marico should adopt push strategy place their low selling items in the retail outlets along
with their highest selling item Parachute.
Increase in sku variety
The sku variety perfumed hair oils of Marico is found low as compared to its competitors So
they should increase the sku variety of the product to capture the greater volume of customer.
Packaging
The packaging of the perfumed hair oils is found as compared to its competitors especially
bajaj almond drops. They should modified the packaging of their perfumed hair oils to attract
more customers towards their brand.
Similer packaing adopted by its rival company
Rival FMCG brands using the similer packaging as tool to confuse the consumer in the rural
markets as usually they pay more attention to the external packaging of the product. So there
may be a chance or capturing Marico's market share specially in the coconut oil segment.
Attractive USP
Marico should come with unique selling proposition strategy with each product of the hair oil
category,,like its competitors ..because usp ,in case of hair oils is found very weak as compared
to its competitors.
By increasing the volume of potential customers
From my market survey it is found that the potential users of coconut oils ae specially
females&old aged peoples.Marico shold target the childs to expand its market volume,because
they hardly goes for using hair oils.they should be targeted with well planned promotional
strategy.
Promotion of hair oils in the haats,melas
In the most of the market that I visited,has malas&haats in the evey weekend ,so the
company should adopt aggressive promotional campaign to allure the rural customers towards
their brand.