Herbal Cosmetic Brands - Exploratory Reseach

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<p>Aloe Vera Gel &amp; Sunscreen</p> <p>Exploring the Market Place: Aloe Vera Gel &amp; Sunscreen11</p> <p>Vijayalakshmi | Balamurali | Karan | Florisha | Prahaladh | Nidheesh </p> <p>Mphatic MindsExploratory ResearchBiohemisphereAloe Vera Gel &amp; Sunscreen</p> <p>Table of Contents</p> <p>EXPLORATORY RESEARCH - SECONDARY DATA ANALYSIS 1. Introduction to Aloe Vera.5 Aloe Vera Gel .6 Aloe Vera Sunscreen 7 Different Categories of Healthcare Applications 12 Conclusion 12 EXPLORATORY RESEARCH QUALITATIVE METHODS 13 INDEPTH INTERVIEW 14 Introduction 14 Research Methodology 14 Table of Contents123456</p> <p>Introduction</p> <p>Aloe Vera According to World Health Organization (WHO), around 80% of the world population depend upon traditional medicine. They have been used as a diagnostic and for healing throught history to present and have proven to be effective without resulting in painful side effects. Ayurveda is one such system that has its roots deeply ingrown into the Indian culture, Ayurvedic cosmeceutical date back to the Indus Valley Civilization. Ayurveda consists of numerous plant and animal based ingredients which comprise the medications, along with identifying the type of body of the patient according to the five primary elements of the universe. Aloe Vera, referred to as Kumari is a key ingredient in Ayurveda which has varied uses from treating skin to liver ailments. The strength of the plant is rediscovered by the cosmetic industry which has begun to extensively use it and promote products commercially.How it helpsAloe can substitute synthetic ingredient used in cosmetic industry very competitively and is finding increasing use in the ever growing consumer product segment. Aloe contains a mixture of glucosides collectively called 'aloin', which is the active constituent of the drug. Aloin and its gel are used as skin tonic as they have a cooling effect and as a moisturizing agent. This helps in preparation of aloin based creams, lotions, shampoos and allied products.Cultivating Aloe VeraFarmers in India regularly face problem like lack of rain, low ground water level, soil degradation etc. Cultivation of aloe Vera would be beneficial as it requires minimum usage of water and the returns from it would be more than 50,000 yearly per acre. Most of the distributers we contacted and as per data available online, Aloe Vera products have a high market demand. Many processing units have already established in the country &amp; according to estimation, more than 300 industries are processing Aloe Vera leaf. However, there is still a high percentage that is left untapped as the raw material doesnt seem to be enough to meet the demand. Therefore, there is an unlimited market potential in India for the Sanjeevani of modern times Aloe Vera. </p> <p>Aloe Vera Gel</p> <p>Aloe Vera Gel is the most popular product that is derived out of the Aloe Vera plant. The preparation of the gel is quite simple, as slicing the leaf would result in the gel oozing out, to be consumed directly or can go in for further processing. The remarkable gel serves various purposes from being applied on the skin as a moisturizer and a coolant to being consumed internally for well-being of the digestive system, liver and kidney. CompetitionAs discussed earlier, the cosmetic industry has realized the great potential of aloe vera. 1. Premium Segment: Forever Living, Amway, Body Shop2. Affordable Segment: Patanjali, Fab India, Lotus fairness gel, Prakriti, Banjaras, Aloe Vera, Aroma TreasuresThese brands have launched products based on the Aloe Vera Gel positioned for different purposes such as Soothing skin, after being exposed to sun Moisturizing Clearing Acne/ Dark Spots Evening the skin tone Fairness and many more</p> <p>Aloe Vera SunscreenSunburns cause a lot of pain and irritation, while reducing the elasticity of skin causing early ageing. Aloe Vera is a great natural skin coolant and is known to treat sunburns while moisturizing skin. While Aloe Vera is not necessarily an active ingredient for Sun Screen, it has been used widely by various brands for its natural cooling and healing properties. CompetitionAffordable Segment: The key players in the aloe vera sunscreen affordable segment are Lotus, Biotique, Jovees, Aroma Magic and so on. </p> <p>Premium Segment: Forever LivingApart from readily available competition products as mentioned above, many niche products are also available online in the premium segment; whereas they might not be available on shop shelves. Some high priced competitors for sunscreen and gel are Rustic Art Organic Sunscreen, Sante Bio Aloe, Logona Aloe Day Cream.</p> <p>Apart from sunscreens and gel, Aloe Vera is used in other cosmetic products such as soaps, moisturizers, oils and packs. </p> <p>Competition Positioning Mapping for Aloe Vera Gel</p> <p>Forever LivingAloe VedaBrihanFab IndiaMoisturizingSoothingFairnessClears acnePatanjaliAroma treasuresKhadi LotusVana VidhiBanjarasPrakriti Herbals</p> <p>Inference: The popular players in the market fall in the above mentioned four categories: Soothing, Moisturizing, Clearing Acne and Fairness when it comes to their products positioning. Some brands like Patanjali and Prakriti Herbals speak about dual benefits. However, according to popular marketing management concept, it is better if we stick to a single unique selling proposition (USP) as it would be easier for customers to register.</p> <p>In-Depth InterviewDELPHI INTERVIEW: Dr. D Ragavendran MD AyurvedaResearch Associate Kotakkal Arya Vaidhya Chikitsalayam &amp; Research InstituteArya Vaidya Chikitsalayam, an Ayurveda Hospital at Coimbatore was established in 1950 is recognized by the Department of AYUSH, Ministry of Health and Family Welfare, Govt. of India and the World Health Organization. It offers services in the fields of Education, Research, Pharmacy and Clinical Practice in Ayurveda and takes care of the nationwide distribution of Ayurveda medicines through C&amp;F agents and over 1000 agencies.Dr. Ragavendran is a doctor of medicine in Ayurveda, working as a physician consultant and research associate at Arya Vaidhya Pharmacy (AVP). We requested Dr. Ragavendran to give us an insight on the benefits of Aloe Vera as a cosmetic. Dr. Ragavendran started our conversation by explaining that Ayurveda, the science of life is a historical medical approach to help human beings live a healthy life. He introduced us to the three kinds of body systems or Doshas that human beings are generalized to have, based on the five elements: air, water, ether, earth and fire:1. Pitha composes predominantly of heat2. Vatha composes of air and ether3. Kaptha composes of earthHe explained that Aloe Vera or Kumari is a key ingredient in Ayurveda that has varied purposes from cooling the system, purifying blood, anti-inflammation, diuretic to treating many Pitha related issues. He mentioned that Aloe is good for skin as a whole as it helps reduce dark spots, pimples, sunburn and lightens tan. People are also realizing the benefits and resorting to herbal practices for long term health. He does not suggest any specific products because as per Ayurveda, medication cannot be prepared using a single ingredient generic to a large audience. </p> <p>Exploring Consumers Mindsets1. InterceptsWe intercepted 40 people randomly Men and Women on the busy Race Course road in Coimbatore to understand what they felt/thought about of Aloe Vera gel and products. To sum their responses: </p> <p>Inference: Most of the respondents have heard of Aloe Vera but have not used it. Quite a few of them said that they own the actual plant and consume it. Some women and two men mentioned that they have used Aloe Vera in other forms, such as in moisturiser and aloe juice.Exploring Retail Outlets: Mystery Shopping and beyondOur team went as mystery shoppers to popular stores, supermarkets and pharmacies to see the stocking and awareness of Aloe Vera gel and sunscreen. Below given are the store-specific implications as well as the collective insight. 1. Kannan Departmental StoreKDS is a popular supermarket chain present in Coimbatore, Erode, Tiruppur etc. It caters predominantly to the middle class SEC and stocks all the common grocery items to health and beauty products. They try to sell products slightly lower than the MRP. Observation: We observed that KDS store is highly involved in selling herbal products. Apart from the usual brands such as Biotique, Aroma Magic, Banjaras, Jovees, KDS have their own Aloe Vera Gel brand in various flavours which they have placed in a) The Medical Department b) The Cosmetics department c) General Stores SectionSales Representatives Push: The sales reps take pride in their Aloe products and suggest to customers in their benefits. They explained that its fast moving.</p> <p>2. NilgirisNilgiris is a popular, established grocery retail outlet in South India that has been around since 1905. Nilgiris is visited by the upper-middle class families and is known for quality. Observation:Nilgiris stocks all the cosmetic products on one aisle. It holds the popular brands such as Biotique, Lotus, Himalaya, Jovees , Banjaras products. Sales Representatives Push: Biotique and Himalaya have company sales reps who push their respective products. The stores attendants, when spoken to suggested brands like Lotus and Jovees, and considered them as fast-moving.</p> <p>3. Pazhamudhir StoresPazhamudhir Stores is a popular store in Coimbatore that sells groceries and common consumer products. Observation: Pazhamudhir is rather congested and stocks all the cosmetics on a single narrow aisle. But the products are segregated neatly. </p> <p>Sales Representatives Push: Brand Himalaya has its own sales representative who constantly bugs customers to try out the products The stores sales reps did not have much idea about Aloe Vera but when asked about sunscreen, they suggested Lotus and Himalaya sunscreens. Only Banjaras Aloe Vera gel was available</p> <p>Projective TechniqueWord association</p> <p>Date : 10/3/14Location : Brookefields</p> <p>MoisturizerOotyyBest!!!PlantGreenVivel SoapFace washNatureWord association test was conducted for 25 people - both Male and Female, aged 20-50. People were asked to say the first word that comes to their mind when they think of aloevera. The words said by those people are shown in the picture above. The words which were often repeated by people were Green, Face wash, Moisturizer. Five of those people were not aware of aloevera.</p> <p>InsightsPeople associate aloevera with nature which is evident from many of the words which they associated, such as green, plant, nature, Ooty. Valuable insights such as these, throw light upon customers emphasizing the need for usage of Aloe Vera products as skin care applications. They are unaware of Aloe Vera product applications other than on skin.</p> <p>Unique business model: Serving domestic market (Own brand) Foreign markets (Sub contracting in clients brand names)Distributor 1Distributor 2Distributor 3</p> <p>Markets servicedSouth East Asian NationsCanada &amp; Sri LankaDomestic &amp; Foreign</p> <p>Profit margin~ 10% 20 %~ 35%~ 10%-20%</p> <p>Raw material sourceAgriculturists TamilnaduAgriculturists Direct sourcingContract farming entities</p> <p>Challenges in businessShortage of Raw materialsSitting on stockpile of 10 tons of Pure Organic gelProduction facilitys capacity shortage</p> <p>Location of businessCoimbatore, TamilnaduKovilpatti, TamilnaduChennai, Tamilnadu</p> <p>Product rangeAloe Vera gelCreams/Gel/Soap/Shampoo/OilSkin care kits</p> <p>NotesBusiness not vibrantLooking forward to venture into retail sectorSub contracting, catering to clients specifications</p> <p>Unique business modelConcentrates exclusively on gel productsSupplying exclusively to select geographiesManufacturing &amp; Distribution (Parallel activities)</p> <p>Fast moving productAloe Vera GelPure organic gelFacial Kit (Own brand name)</p> <p>PricingMarket orientedPure organic gel Rs.160/KgRs.626/- (Facial kit)</p> <p>Focus Group DiscussionGender: Male/FemaleAge: 13-25yearsNumber of FGDs: 5INTRODUCTIONMphatic Minds held totally five Focus Group Discussions. Three of which were for girls, aged 18-25, one for school girls, aged 13-16 and one for boys, aged 18-21, who are studying in Amrita University. FGD was conducted to understand various aspects of the buying and usage behavior of herbal and Aloe-Vera products. This was done to know the potential of Aloe Vera based products in Amrita University.Details of the participants of focus group discussions are as follows:Focus GroupNo of respondentsAgeNative Place</p> <p>15(girls)18- 20Vizag, Hyderabad, Bangalore, Chennai, Guntur</p> <p>29(girls)21- 24Salem, Palakkad, Kottayam, Kozhikode, Thrissur, Trichy</p> <p>34(girls)18Andhra Pradesh</p> <p>411(girls)13-16Tamil Nadu</p> <p>58(boys)18-21Chennai, Hyderabad, Trichy, Kollam</p> <p>Focus Group 2Moderated by: Prahaladh, Balamurali Date : 7/3/14Location : Amrita UniversityFocus Group 1Moderated by: Prahaladh, Balamurali Date : 7/3/14Location : Amrita University</p> <p>Focus Group 4Moderated by: Karan, FlourishaDate : 8/3/14Location : Amrita UniversityFocus Group 3Moderated by: Karan, Flourisha Date : 8/3/14Location : Amrita University</p> <p>Focus Group 5Moderated by: Karan, FlourishaDate : 8/3/14Location :Amrita UniversityLocation : Amrita University</p> <p>LIST OF ASPECTS OF THE FGD:1. Need for daily skincare2. Need for mens skincare3. Price sensitivity to products4. Preference for herbal products5. Other concerns of skin care products6. Awareness of Aloe Veras benefits and experience7. Concerns with the use of Aloe-Vera8. Opinion development about the product9. Frequency of change of skincare products10. Influence of packaging on the buying behaviorINSIGHTS INTO THE ASPECTS1. Need for daily skincareNeed for daily skincare takes birth from the existence of undesirable and unsuitable conditions, mainly polluted air and bath-water. The need for the same was considered limited in ideal conditions. Also many considered it to boost their overall morale.</p> <p>2. Need for mens skincareOpinions about the need for skin care by the males were found to be similar: they need care, for they have a skin! The need to moisturize was considered mandatory for all skin types irrespective of skin condition. However, some men thought they dont need as much care as women need. They think just washing the face twice a day would be sufficient. Only one of the men in the focus group is using sunscreen lotion however many are using moisturizers.</p> <p>3. Price sensitivity to productsPrice elasticity for skin care products is from moderate-high. To some people, price was not a deciding factor once a product was found to be suitable to the skin type and condition, apart from safety and reliability. A price of Rs 500 was quoted by some during the discussion and agreed by almost all for face wash and moisturizer which was enough for a month if used dail...</p>