ECONOMICS ASSIGNMENT

A study on observation & learning of shampoo market

SUBMITTED TO- SUBMITTED BY-

PROF.CHAKRABARTHY PRIYANJALI DAGA

SECTION-C

REGD.NO.-T-6048

THE OBJECTIVE OF THIS STUDY-

1.To evaluate the shampoo market of India from economic view.

2.Understand the demand of different shampoos in term their price,quality and many more

parameters

3.What type of market is this-it is also countable

THE RETAIL OUTLET I HAVE VISITED-

FOODWORLD

THE COMPANY ,THEIR BRANDS & THEIR PRICES AS I HAVE OBSERVED

HUL PRICE(100

ml)

P&G PRICE(90

ml)

DABU

R

PRICE(1

00 ml)

GARNI

ER

PRICE(100

ml)

ITC PRIC

E(10

0ml)

Sunsil

k

56 Pantene 59 Vatika 54 Fructis 64 Fiama 59

Clinic

all

clear

69 Head &

shoulder

s

69 Damage

therapy

Vivel 49

Clinic

plus

47 Vivel

anti

dandruf

f

69

Dove 64

THE PHOTOS OF FOODWORLD & ITS SHAMPOO SECTION

The different brands of shampoos can be catagorised on these parameters-

BRANDS PRICE QUALITY ADVERTIZING MARKET DEMAND SUPPLYSUNSILK AVEREGE AVERAGE GOOD Good Good GoodAll Clear High Good Good Good Good GoodClinic plus low Low Low Average Average GoodDOVE High Very good Very good Very good Very High ExceelentPANTENE High Very good Very good Good High Very goodHEAD& SHOULDER

Very high Very good Good Very good Very good exceelent

FIAMA DI WILLS

Average Good Good Good Good Very good

VIVEL Low Average Good Average Average Good GARNIER High Good Good Very good Very good Very goodVATIKA Average Average Average Average Average Average

We know what are the determinants of demand,they are

1.Price of the product

2.Income of the consumer

3.price of the related goods

4.Taste & preferances

5.Advertising

Now the determinants can be described in processing demand in case of sunsilk

1.PRICE-The most important determinant of demand is price.Sunsilk practiced value-based

pricing in which the strting price developes the market for them as well as satisfying the

consumers.The price of a 100 ml sunsilk shampoo is 56.It is an average price in regards their

quality.The quality is also average.So,the shampoo is well accepted by the consumers and the

demand is also good.Sunsilk with their value-based pricing system they are getting their profits

and also successful in holding the demand in the ever changing market.

2.INCOME -Normalyy income bears a positive relationship with demand.Observing the price of

the sunsilk it can be stated that sunsilk is not for higher income group.We know that sunsilk is

also available in pouches of Rs.3.So,it is very easy to consume sunsilk for lower income

group.As we know,normal goods have positive relation between demand and income and inferior

goods have negative relation between demand and income.We can catagorise sunsilk in normal

goods.But increase in income will always increase the demand for sunsilk it is not

granted.Because it is a average priced group,the increase in income can also decrease the demand

for sunsilk.But now by doing the study the demand for sunsilk is good.From the lower income

group to middle income group sunsilk is well accepted.Sumtimes higher income people also

enjoy this product.

3.PRICE OF THE RELATED GOODS-If we see the table again,we can say that,except few

products like dove ,clinic all clear,head & shoulder the prices of the related shampoos are not

very high.Sumtimes it is low also like clinic plus.So, there is a fair competition among them but

sunsilk is successful to hold their market.

4.TASTES & PREFERENCES- The middle income peple,the school and college girls prefer

sunsilk.As their income,culture and many other intermediates influence the consumption of a

particular nrand ,I have observed that most of the college girls and middle income groups like to

use sunsilk.

5.ADVERTISING-From the early days, sunsilk did its advertising part greatly.But if we look

two years back the demand and market share ware decresing rapidly.Then they came with their

old products in new packaging and also used filmstar Priyanka Chopra to introduce the brand

new sunsilk.The result was obvious.it influenced greatly the young public and its demand started

to rise up.

6.MARKET-The market for the shampoo is monopolistic competition.This market consist of

many buyers and sellers over a range of element,which allowes the sellers to gain market shares

in contrast to competitors.In this market condition,sunsilkdifferentiated its products and also sell

them in different prices to cover at least a large portion of the market.

The another brand of Hindustan Unilever Limited is Clinic All Clear.It is basically a anti

dandruff shampoo with different ranges.Now lets come to the alalysing part.

PRICE-The price of 100ml clinic all clear shampoo is Rs.69.Mainly,this shampoo is meant for

men.According to their quality their pricing is good.The demand of this particular shampoo from

its launching to today is just great.If compared to sunsilk,its price is high but its demnd is also

high and the company also supplies it in a better way as per demand

INCOME -As the price of this shampoo is high so it can be stated that as income of the

consumers increases the demand for this shampoo will also increase.

PRICE OF RELATED GOODS-As clinic all clear is a anti dandruff shampoo,there are so

many competetitors in the market like sunsilk,vatika,head & shouders etc.The price of vatika is

comparatively low but quality is also low.But in case of head & shoulders there is a tough

competition between the two.As they both are mainly anti-dandruff shampoo and the price of

H&S is relatively high,they are tough competitors.Sumtimes it is seen that because of this reason

the demand of all clear shampoo is fluctuating.

TASTES AND PREFERANCES-Taste for this shampoo is broadly depend on men.Men prefer

the shampoo most.At first its target was men only but later they wanted to catter their market

among women also but they are not fully successfull because it was already accepted by the men

and women could not accept this shampoo well.So,as taste and preference concern the demand

for all clear shampoo is among the men is very high

ADVERTISING- As long as advertising concerne clinic all clear advertising is very much

standard.To increasetheir demand the used from John Abraham,Bipasha Basu,Asin,Shahid

Kapoor to gain good

market share and they are successful

Now come to the clinic plus shampoo,the othldest & trusted brand of HUL shampoo section in

INDIA.

PRICE-The price of clinic plus shampoo of 100 ml pack is 47.No dought that the price is low

but there is no meaning that the demand of this shampoo is high as its price is low.As quality

concern ,in early days its demand was so much high as it was the oldest brand in India but now-

a-days the scenario is totally different.May be its price is low but demand is also low.

INCOME-In case of clinic plus shampoo,as income increases the demand of this shampoo will

decreases.The demand for this shampoo is negative relation with the income.

PRICE OF THE RELATED GOODS-In concerne of price of related shampoos there is no

shampoo of a reputed company with this price.So,there is no competitor in market.It ia meant for

lower income group.So,its demand is basically high in lower income people and children.

TASTES AND PREFERANCES-As already said,this brand is mainly preferred by lower

income group and parents for their children.And it is also a major point that this product is out of

fashion and that’s why the demand is also decreased.But some old people still preffer this brand

as it is most trusted for them.

ADVERTISING-HUL never expensed much amount on advertising for this shampoo.Once

they used Shahrukh Khan to promote ,but they never thought there is also a need to promote

this item well.The advertising did not play a major role for its demand

DOVE, the most powerfull brand in shampoo of HUL.The maximum profits ,revenue is gained

from DOVE in HUL.

PRICING-The price of 100 ml dove shampoo 64.HUL has created a remarkable pricing of

dove.The quality of dove shampoo is very good but its price is comparatively is lower .For that

reason the demand of dove is always high and HUL also supplies excellently to handle its

demand.And it is very obvious that if HUL increases its price the demand for this brand is not

going to decrease.

INCOME -In the market its demand is so high that if a consumer’s income decreases the

demand remain the same.But if income income increases of a consumer than early income

obviously the demand will increase.It has no negative relation with income .

PRICE OF THE RELATED GOODS-Yes,shampoo like head & shoulder and pantene is a

strong competitor of dove.So,it makes competition between HUL and P&G.If the price of

pantene is suddenly decreases it may happen that it will effect on the demand of dove.

TASTES AND PREFERENCES-Company claim by its advertising that it is a women product

but it is also well accepted by men.The people from middle class to higher income group all

preffer this brand.Also the working women preffer this brand.

ADVERTISING-HUL does its advertising in a different way.They don’t use celebrities but use

REAL WOMEN to promote their brand and it did miracle.Most of the women in India preffer

dove for their hair care.They also did a free sample campaign to promote their brand.

Pantene is the strongest brand of procter & gamble in India.It is the main competitor of dove in

Indian market.

PRICING-The price of the pantene 90ml pack is 59Rs.P&G very cleverly did this pricing

system to catter inIndian market.Every brand do price in respect of 100 ml pack.But as the price

should not show high ,keeping this in mind P&G launched pantene in India in 90ml pack and

wonderfully it worked in market.Its quality is exceelent and for that its demand is also good in

the market.And it can be hoped that there will be no demand decrease if its price increases.

PRICE OF RELATED GOODS-If the price of dove decreases it would effect the demand of

pantene.They are the tough competitor in this sector.

INCOME-As the income increases the demand of pantene will also increases.Being a

prestigious brand of P&G pantene is in high demand always.It has a positive relation between

income and demand.

TASTES AND PREFERENCES-From middle income group,college girls,working women to

high income group pantene is preferred.It is also recognized as fashionable shampoo that

enhance the young public to encourage to consume pantene.

ADVERTISING-The advertising of pantene is always very glamorous.In abroad Jeniffer Lopez

and in India its Katrina Kaif,Sushmita Sen,Shilpa Shetty promoted for pantene.They claim in

advertisement that they are using pantene and after using this they are giving their comment in so

called adds.True or false whatever it is ,it hit the Indian consumer and demand increases.

Another strong brand of P&G is head & shoulder shampoo in india.It is a anti-dandruff

shampoo.

PRICING-The price of 90ml shampoo is 69.P&G also used the same strategy in case of H&S

like pantene.The price is quite high as compared to other brands.But its demand is not low ,the

reason is same quality.

INCOME -If income increases the demand for this brand will also increase.But if one’s income

decreses there is a possibility to decrease its demand because its pricing is high.So,it has both

positive & negative relation with demand.

PRICE OF THE RELATED GOODS-Pantene,dove –if their price increases there is a

possibility to increase in demand for head & shoulder.As dove and pantene comperatively low in

price than h&s so the demand may increase.

TASTES AND PREFERENCES-This brand is equally accepted by men and women

both.Company is sccessfull to catter their product among men as well as women.It is the most

trusted brand in anti-dandruff shampoo category.

ADVERTISING-They took celebrities like Kareena Kapoor,Saif ali khan to promote their

product.

Kareena Kapoor at the ceremony of the hesd & shoulder

The very new launch of ITC is fiama dj wills shampoo range.It has a emerging market share for

ITC.

PRICING-The price of 100ml pack of fiama shampoo is 59.Recently it is offering a 50 ml

conditioner worth Rs.40 free with the shampoo.In the competitive market where strong brands

like dove,pantene etc are present,ITC planned to offer their product in joint venture with a

quality product.In the current scenario,fiama is successful to its ever increasing demand graph.

INCOME-There is a positive relationship between income and demand in case of fiama.While

income increases the demand for fiama shampoo also increases.

TASTE AND FREFERENCES-ITC is successful to catter the market only among women

consumer.Fiama is also recognized as one of the most stylish product.So,among the women this

brand is well preferred.

ADVERTISING-ITC hired the supermodel and filmstar Dipika Padukone to lunch fiama di

wills range to make their revenue targeting young people like college girls,working women and

also housewives.

DIPIKA PADUKONE IN THE CEREMONY OF FIAMA DI WILLS SHAMPOO RANGE……

VIVEL,the another shampoo category of ITC ,which is not strong as fiama,but it also has its

own market share

PRICE-The price of 100ml vivel shampoo is Rs. 49 and its anti-dandruff pack costs

Rs.69,which is comparatively lower than fiama and shampoo brands in market.But it is also

natable that the demand for this brand is not higher than fiama or any othe few brands.If its price

increases demand will surely decrease.

INCOME -If income increase the demand for vivel will decrese because consumer will go for

better product.But if income decreases the demand may increase.

TASTES AND PREFERENCES-Generally middle class group,lower income group frefer this

brand.Sometimes boys also prefer this brand

ADVERTISING-ITC used celebrities like Kareena Kapoor,Hrithik Roshan,Amrita Rao to

promote their product.But it did not work fully.The fault was in their product.The particular

brand is not a quality brand.This is the most crucial reason of not a huge success of vivel ultra

pro shampoo range.

LOREAL’S Garnier shampoo range is another strong brand of shampoo in India.

PRICING-A garnier fructis 100ml pack is Rs.64.But an ultradox is Rs.89.Its price may be little

high but its demand is always good in the market.

INCOME -It also has a positive relation with income and demand.If income increase demand

will also increase.If income decrease demand will also decrese.

TASTES AND PREFERENCES-Working women,normal girls prefer this product as it is a

standard one.

ADVERTISING-Garnier only used super models to promote their products.It also worked in

new generation and they success fully created the demand for garnier shampoo.

DABUR VATIKA shampoo is the only shampoo of dabur india limited.

PRICING-The price of dabur vatika shampoo of 100ml pack is Rs.54,very nearer to sunsilk

shampoo.It is lower in price but its demnd is not more than sunsilk.If its price increase its

demand will decrease.

INCOME -If income increase surely its demand decreases and if income decreases demand can

increase.so,it has a negative relation with income.

PRICE OF THE RELATED GOODS-Of course price of related shampoos will effect its

demand as it is a average product.

ADVERTISING-DABUR has taken up Preity Zinta,Jenolia D’Souza ,Riya Sen to promote

their vatika shampoo.In the early days it worked nicely but now the story is different

CONCLUSION

From the above observation and learning some conclusion and understanding can be drawn

It is not necessary that the LAW OF DEMAND will always be applicable to every

product and every market situation.In some cases there are many exception.

The determinants of demand play a great role in demand increase and decrease.

The market of shampoo is in monopoly competitive market where a large no. of players

are present and they set their product price as their wish .It is an independent market.The

entry and exit are also unrestricted in this market competition.

It is also understable that in monopolistic market,it is more profitable for a

monopolistically competitive firm to attract customers through advertising rather than by

lowering price.