DEODORANT INDUSTRY

L'Oral- SAPPHIRE

Strong enough for a Man, But made for a Woman

Submitted to Prof.Payal Kapoor

Presented By: Group 7

Members: Hitesh Bajaj

231065
Jashandeep Singh 231069
Jayant Adlakha 231070
Kirti Obhan
231076
Naveen Suman 231094
Rohan Sachdeva 231118

Contents
ACKNOWLEDGEMENT ............................................................................................................................ 3
EXECUTIVE SUMMARY ..........................................................................................................................4
LOREAL ..................................................................................................................................................5
Mission................................................................................................................................................ 5
Vision ..................................................................................................................................................5
Values ................................................................................................................................................. 5
MARKET ANALYSIS ................................................................................................................................6
PESTEL ANALYSIS ................................................................................................................................6
Political factors:.............................................................................................................................. 6
Economic Factors:........................................................................................................................... 6
Social Factors:.................................................................................................................................6
Technological Factors:....................................................................................................................6
Environmental factors:...................................................................................................................6
Legal factors:...................................................................................................................................7
Porters Five Forces ............................................................................................................................ 7
Bargaining power of buyers ........................................................................................................... 7
Bargaining power of suppliers .......................................................................................................7
Threat of substitutes ......................................................................................................................7
Threat of new entrants .................................................................................................................. 7
Industry Rivalry .............................................................................................................................. 7
INDUSTRY ANALYSIS ............................................................................................................................. 8
FMCG Industry....................................................................................................................................8
Personal Care...................................................................................................................................... 8
Deodorant Industry ............................................................................................................................ 9
Market Value of different types of fragrances Deodorants, Perfumes and Roll Ons ....................10
Marketing Strategies of Competitors ..................................................................................................11
Fogg:..................................................................................................................................................11
Axe: ...................................................................................................................................................12
Wildstone: ........................................................................................................................................13
Engage: .............................................................................................................................................13
Park Avenue: ....................................................................................................................................15
Women Deodorant: .........................................................................................................................16
Fogg:..............................................................................................................................................16
Spinz:.............................................................................................................................................16
Nivea:............................................................................................................................................16

P a g e 1 | 31

Eva:................................................................................................................................................16
SWOT Analysis for Beauty Segment (BU L'real, India) ..................................................................16
Strength: ...........................................................................................................................................17
Weakness:.........................................................................................................................................17
Opportunities: ..................................................................................................................................17
Threats:.............................................................................................................................................17
PERFORMANCE REVIEW..........................................................................................................................17
Fogg:..................................................................................................................................................18
Axe: ...................................................................................................................................................18
Engage: .............................................................................................................................................19
Wild stone: .......................................................................................................................................19
Park Avenue: ....................................................................................................................................19
SEGMENTATION , TARGETING AND POSITIONING .........................................................................................20

Segmentation ...................................................................................................................................20
Target................................................................................................................................................20
Positioning ........................................................................................................................................21
Perceptual Map for Womens Deodorant...........................................................................................22
OBJECTIVES .............................................................................................................................................22
MARKETING STRATEGY ...........................................................................................................................23
ACTION PLANS........................................................................................................................................24
Product Strategy...............................................................................................................................24
Pricing Strategy.................................................................................................................................25
Distribution Strategy........................................................................................................................25
Promotion Strategy ..........................................................................................................................26
Sales force strategy ..........................................................................................................................27
PROFIT AND LOSS STATEMENT............................................................................................................28
Calculation of Revenue from Operations (Gross) .............................................................................28
Profit and Loss Account ....................................................................................................................28
Profit Percentage before Tax, Interest and Depreciation are as follows:.........................................29
MONITORING AND CONTROL ..............................................................................................................30
Contingency Plan..............................................................................................................................30

P a g e 2 | 31

ACKNOWLEDGEMENT
Apart from the efforts of the group, the success of any project depends largely on the
encouragement and guidelines of many others. We take this opportunity to express our gratitude to
the people who have been instrumental in completion of this project. We would like to show our
greatest appreciation to Prof. Payal Kapoor (FORE School of Management). We can't thank her
enough for her tremendous support and help. Without her encouragement and guidance this
project would not have got materialized. We would also like to thank our friends for their support
and cooperation. Our appreciation also goes to the FORE School Of Management for allowing us
access to various resources, and to the College Library.

P a g e 3 | 31

EXECUTIVE SUMMARY
India is one of the largest economies in the world in terms of purchasing power and increasing
consumer spending, next to China. The Indian FMCG industry, with an estimated market size of ~Rs.
2 trillion, accounts for the fourth largest sector in India.
In FMCG Sector, the personal care products (PCP) market in India is estimated to be worth ~Rs. 440
Billion. Personal hygiene products (including bath and shower products, deodorants etc.), hair care,
skin care, colour cosmetics and fragrances are the key segments of the personal care market.
The fragrance industry consists of deodorants, perfumes and roll-ons. Rising demand for fragrances
from tier II and III markets is the real growth driver of this industry. Though there are limited options
for women but the segment is likely to see an upsurge with various existing brands and new entrants
resorting to sustained media campaigns to cash in on the untapped category with enormous growth
potential.
This report includes understanding of LOrals existing mission, vision and values of the company.
The report provides the marketing plan for the launch of a new product by LOral in deodorant
market by analysing the current industry scenario focusing on the existing deodorant market share
for women, projected growth for few years, strength, weakness, marketing strategy, pricing strategy
and product strategy of the company and its competitors.
The report provides the strategy to be adopted by the company by providing details about
distribution channel, sales force allocation and promotion for the successful launch of the new
product.
The product, "Sapphire" deodorant, can be successfully launched successfully by using the existing
distribution channel of other beauty products, spending more on advertising, adopting competitive
pricing method and no change in the sales force team.
The project was done primarily on the basis of data collected for the LOral website, news, articles
and other relevant information available online.

P a g e 4 | 31

LOREAL
Mission
LOral has set itself the mission of offering all women and men worldwide the best of personal care
innovation in terms of quality, efficacy and safety. It pursues this goal by meeting the infinite
diversity of beauty needs and desires all over the world.
Our R&I centre has a dual mission: to adapt the technologies developed by the worldwide centres to
meet the expectations of Indian consumers. And, we are looking at green field projects from
ideation to implementation of projects and designing new technologies and products at our centre.

Vision
Together we will make beauty sustainable. Together we will make sustainability beautiful.

Values
The six founding values: Passion, Innovation, Entrepreneurial spirit, Open-mindedness, quest for
Excellence and Responsibility.

P a g e 5 | 31

MARKET ANALYSIS
PESTEL ANALYSIS
Political factors:

Controversial advertisements of deodorants regularly subjected to criticism by political

parties.
The custom duty on imported perfumes is high (around 27%) which makes it a premium
product.
Political interference when it comes to culture and societal values. The depiction and
portrayal of women in the ads are considered as overtly sexual.

Economic Factors:

Deodorants are considered as a personal care product which is not necessarily a necessity,
when people have less purchasing power they reduce its consumption.
Core driver for using deodorant is getting ready for jobs, when unemployment increases
usage decreases.
Business environment is becoming highly competitive, as the numbers of brands are
increasing.
Indian consumers want value for money; hence companies are providing different products
for different segments.

Social Factors:

With change in Lifestyle and increase in personal disposable income, people tend to focus
more on hygiene and therefore increase deodorant consumption.
Target segment is the younger generation which is more progressive and westernized.
With increase in Female Employment use of deodorants by Females is also increasing.

Technological Factors:

The R & D Cost is not very high, this provides for new easy entry of new players in deodorant
market.
Failure to provide technical capability in the R&D function and quickly roll out the products
may adversely impact its profitability and reputation in near future.
More spending on IT by different players to improve the efficiency of its business process
and reduce costs.
Deodorant companies communicate to consumers, especially youth using digital platforms
i.e. social networking sites.

Environmental factors:

Some people are allergic to aluminium and may experience contact dermatitis when
exposed to deodorants containing aluminium.
Some studies have linked breast cancer with aluminium based antiperspirants.
Showering washes our deodorants down the drain, introducing known or suspected toxins
into our nations waterways.

P a g e 6 | 31

Companies are maintaining high environmental standards by designing and producing

products that are safe for consumers and using environment friendly materials and packing
stuff.

Legal factors:

Companies have a legal responsibility for the safety of their products and ingredients.
Companies are subject to laws and regulations both locally and globally, which cover diverse
areas such as product safety, trademarks, copyright, patents, customers health and safety,
the environment, corporate governance and unfair practices.
Failure to comply with laws and regulations could leave them open to civil and criminal legal
challenge and may result in fines or imprisonment of personnel.

Porters Five Forces

Bargaining power of buyers
Buyers have moderate to high bargaining power as there are many products available to the
consumer and they typically have low loyalty and can easily switch between products.

Bargaining power of suppliers

Bargaining power of supplier is low to moderate as the company incurs some cost while switching
suppliers. On the other hand, suppliers that do a large amount of business with these companies
also are somewhat beholden to their customers. Nevertheless, the bargaining power for both the
firms and their suppliers is probably limited.

Threat of substitutes
The threat of substitutes is moderate to high as deodorants can be easily substituted by Perfumes,
roll-ons, talcum powder etc.

Threat of new entrants

Deodorant is a highly competitive industry and the product features can be easily imitated due to
relatively low cost of R & D .Hence new brands are being launched regularly and customer retention
is difficult. Manufacturers of deodorants are typically large companies producing a wide range of
personal hygiene products, cosmetics and other consumer goods and their economies of scale allow
them to compete more efficiently.
Small companies may require a huge capital investment to enter in personal care segment like
Deodorants, and hence might find it difficult to sustain itself in the long run.
Hence the threat of new entrants is moderate as there isnt much customer loyalty.

Industry Rivalry
Since the deodorant market is a high growing market , a large number of products are being
launched by established market players which is increasing completion .Rivalry is increased by the
presence of a large number of brands and limited differentiation within the market. Hence,
competition in this market is high.

P a g e 7 | 31

INDUSTRY ANALYSIS
FMCG Industry
India is one of the largest economies in the world in terms of purchasing power and increasing
consumer spending, next to China. The Indian FMCG industry, with an estimated market size of ~Rs.
2 trillion, accounts for the fourth largest sector in India. In the last decade, the FMCG sector has
grown at an average of 11% a year; in the last five years, annual growth accelerated at
compounded rate of ~14.7%. The sector is characterized by strong presence of global businesses,
intense competition between organized and unorganized players, well established distribution
network and low operational cost.

Revenuewise Market share

4%

2%

5%
Food Products

4%

Personal Care
8%
43%

Fabric Care
Hair Care
Households

12%

OTC Products
Baby Care
Others
22%

Source: www.ibef.com
Growing awareness, easier access, and changing lifestyles and with rise in disposable incomes, midand high-income consumers in urban areas have shifted their purchasing trend from essential to
premium products. In response, firms have started enhancing their premium products portfolio.
Rural demand & demand in tier 2 tier 3 cities is set to rise with rising incomes and greater awareness
of brands.

Personal Care
Indian personal care product market is observing different trends for different segment of users. On
one hand we have urban customers whose needs are evolving and require customisation of the
product offering. On the other hand, we have rural customers where the penetration is increasing,
but their price sensitivity requires cost effective product offerings.
The personal care products (PCP) market in India is estimated to be worth ~Rs. 440 Billion. Personal
hygiene products (including bath and shower products, deodorants etc.), hair care, skin care, colour

P a g e 8 | 31

cosmetics and fragrances are the key segments of the personal care market. Each of these segments
exhibits its unique trends and growth patterns.

Deodorant Industry
According to a study released by the industry body, the Associated Chambers of Commerce and
Industry of India (ASSOCHAM) titled 'Domestic Fragrance Industry: The way ahead', the industry in
the last decade has grown with a CAGR of 38.5%.
It is expected to reach around Rs.5000 crores by 2017 and Rs.6361 crores by 2018 with a CAGR of
around 28%.

Revenue
7000
6000
5000
4000
3000
2000
1000
0

6361
5020
3915

500

695

952

1290

2009

2010

2011

2012

1730

2013

2300

2014

3018

2015

2016

2017

2018

Growth
50.0%
40.0%

39.0%

37.0%

35.5%

34.1%

32.9%

31.2%

29.7%

28.2%

26.7%

2013

2014

2015

2016

2017

30.0%
20.0%
10.0%
0.0%
2008

2009

2010

2011

2012

2018

Source: www.economictimes.com

P a g e 9 | 31

Market Value of different types of fragrances Deodorants, Perfumes and Roll

ons

Market Value of Fragrances

2500

Gender-wise Split of Fragrance

Industry

2300
1950

2000
1500
1000

31

620

500

69

0
Market Value 2014
Deodorant

Perfume

Male

Roll ons

Female

Source: Economic Times and ASSOCHAM India*

* - The market value for perfumes and roll ons are the Projected figure of ASSOCHAM 2013 report,
which estimates the market value at Rs.1500 crores for perfumes and Rs.400 crores for roll ons at
an annual growth rate of 30% and 55% respectively)
About 69 per cent of the whole fragrance market is dominated by the men's category which is also
highly fragmented and keeps evolving with change in attitudes and lifestyle. Besides, high-end
perfumes in the male category are also doing a brisk business courtesy the growing urge among
urban Indian males to stay well-groomed.
Though there are limited options for women but the segment is likely to see an upsurge with various
existing brands and new entrants resorting to sustained media campaigns to cash in on the
untapped category with enormous growth potential.
Teenagers are a significant segment in both male and female categories as an average teenager at
an urban center tends to spend anywhere between Rs. 500 and Rs. 2,000 only on fragrance including
- deodorants, roll-ons and perfumes.

Breakup based on Urban and Rural Market

120
100

100
90

80
60
40
20

29
16.78

18

10

0
Urban

Rural
Percentage

Total

Growth rate

Source: www.economictimes.com

P a g e 10 | 31

The deodorant market is growing at around 18 per cent annually, and the growth in rural markets
that account for a tenth of deodorant sales, is 29 per cent.

Market Share
Fogg

13%
8%
7%
59%

7%
7%

Engage
Axe
Wildstone
Park Avenue
others

Source: www.economictimes.com

Marketing Strategies of Competitors

Fogg:
Company: Vini Cosmetics
Segment: Outdoor oriented, Fashion oriental, trendy
Targeting: Concentrate on customers seeking products which give value in excess of its price
or for sophisticated customer. It focuses on youth (15-30) in Urban and Semi-urban areas,
who are value oriented and will be attracted by the longevity and quality offered by Fogg
Occupation: Students, bachelors, young professionals
Income Level: Middle income group
Positioning: The Company started an aggressive TV campaign with a high number of ads
being broadcasted at primetime and high viewer segments such as cricket matches. The
brand tried to differentiate itself from other products which were only focusing on
advertising which shows the same concept of boy attracting girl. They have positioned the
brand based on a very logical appeal where they focus on the positive qualities of the
product and how much better its performance is in comparison to other products which
they say only consist of gas while FOGG is without gas and full of product. The positioning
statement of FOGG body spray focuses on the fact that it contains only perfumed liquid and
no gas in it unlike other products and the company is guaranteeing 800 sprays for a bottle
containing 100gm of container. This has created a differentiation for FOGG in terms of
quality of product. The tagline is- "Bina Gas wala body Spray"- in English it means -"A body
Spray without gas"
Product: The USP of the product is that it is perfume based deodorant unlike its competitors
which are gas based. It promises long lasting fragrance and 800 sprays per bottle of Fogg
deodorant. It comes in various fragrances targeted for men and women, and in various
fragrances like Marco, Napoleon, Royale, emperor, Fresh, Black, Majestic, etc.
Price: Fogg is priced at Rs. 179 per 150 ml bottle, and its Black range of deodorants as
priced at Rs.199 per 150 ml SKU. With promise of no gas and only perfume, and 800 sprays
per bottle, it is priced as a value for money product.

P a g e 11 | 31

 Place: Vini Cosmetics, the parent company which manufactures and markets Fogg range of
deodorants has a wide and deep distribution network in India. It is available in modern trade
as well as retail trade stores all over urban and rural India.
Promotion: Fogg has positioned the brand based on a very rational appeal where they have
shown a customer who using a normal brand and gets fed up with it because the body spray
consists of only gas, and only gas comes out instead of the perfumed liquid. Then a
comparison is shown between a normal body spray and the FOGG body spray where
the normal body spray fills glass less than half with liquid whereas the rest evaporates as
gas, whereas the FOGG body spray fills the glass more than half with almost none of the
liquid getting lost due to gas. The tagline is- "Bina Gas wala body Spray"- Which in English
means -"A body Spray without gas"

Axe:
Targeting : Concentrate on single-segment (male 15-30) in Urban and semi urban areas, who
are lifestyle oriented, trendy, cosmopolitan with regular and high usage of deodorant,
Occupation: Students, bachelors, young professionals.
Income: Middle income group
Positioning: The Company extensively uses the TV ads and conducting many Campaigns.
Besides TV commercials the brand also uses internet media and sponsoring some events.
The biggest strength of this brand is the underlying message that the brand users are high on
confidence and always go for the Axe. It also ensures that consumers are mostly engaged
with new Fragrances. In 2014, Axe had a profile lunch of its new fragrance "Axe Peace".
The male models used in Axe advertisements are regular guys, unlike those of its
competitors, who use models with perfectly chiseled bodies. This conveys the message that
Axe is for everyone, and your confidence and Axe Effect can cast a spell on girls.
Product: Variety of AXE DEO's: Axe offers a wide range of fragrances in their deodorants.
Some variants of AXE are: peace, harmony, anarchy, Apollo, excite, dark temptation etc. Axe
comes up with new fragrances and range of deodorants every 4 months to keep the
freshness of brand alive.
Quality: All the variants of AXE deos are dermatologically tested and do not have any kind of
side effects on the skin, it offers good fragrance which has long lasting effect.
Packaging: The bottle of Axe deodorant looks sturdier and its twisting on top which is better
than older design. Unique bottle helps in brand differentiation and better recall.
Price: AXE deodorant is priced to offer its customers good value for money. The price of all
variants of axe is same. They just have different fragrances and flavors. Rs. 150 for 150 ml of
deodorant.
Place: Placing and availability of product plays significant role in determining the sales of
product. Axe relies on location and distribution channels. There is high availability of Axe
deos in all stores, such as modern retail, traditional mom and pop stores, drug stores of all
sizes.
Promotion:
o Advertising: Primary tool used by AXE is TV commercials, print ads and billboards
which increase brand awareness.
o Interactive Marketing: Engage customers and directly or indirectly raise awareness
through social media and online. Campaigns like theaxeeffect.com. Various
campaigns "Call me", "AXE feather", "AXE Land" for an increased customer
engagements.
o Central Theme of Campaigns: Seduction where Girl makes the first move. Brand
assumed that Men like to be seduced.

P a g e 12 | 31

Wildstone:
The idea, is to create occasion specific offerings, such as mild fragrances for office-goers; stronger
ones for party-goers and so on.
Under consideration: Wild Stone is also mulling an entry into gasless deo varieties.
Targeting: Concentrate on single-segment (male 15-30) in Urban and semi urban areas, who
are lifestyle oriented, trendy, and cosmopolitan with regular and high usage of deodorant.
Occupation: Students, bachelors, young professionals
Income: middle income group, Same as AXE, but high regional concentration of sales in its
home turf East India, with rising sales and market share in southern and western markets.
Positioning: Product was positioned as a sexy or naughty product for young males which
transformed an uninspiring average Joe into the jealousy-inducing Chick magnet. While
sexy was the buzzword in the segment, the communication was not personalized to the
Indian clientele. Axe and Set Wet propagated their message through foreign models in
foreign locations. While they did capture attention and communicate, the characters
werent relatable to the audience. This is where Wild Stone differentiated. Adopting to the
Indian tastes, they communicated through Indian men and women, who the audience can
relate to, set in typically Indian scenes like Durga Puja, Holi or Monsoon season. While
others promised the user the attention of hordes of girls, Wild Stone promised inciting deep
passion and frenzied fantasies in a single woman Indian, traditional, mysterious and not
overtly sexual. Unlike others who were tagged as playful and youthful, Wild Stone became
associated with passion and mystery.
Product: Wildstone too offers a wide range of fragrances in their deodorants. Some variants
of Wildstone are: Red, Aqua Fresh, Ultra Sensual, Thunder, Smoke, and knight
Rider etc. keeping in view the mystery element associated with the product.
Price: Wildstone deodorant is priced to offer its customers good value for money. The price
of all variants of Wildstone is same and is priced similarly as its competitors.
Place: Wide distribution network ensures high availability of Wildstone deodorants in all
stores such as modern retail, traditional mom and pop stores, drug stores of all sizes pan
India. Also, available for sale on ecommerce sites like Flipkart.com.
Promotion:
o Advertising: Primary tool is TV commercials, print ads and billboards which increase
brand awareness.
o Central Theme of Campaigns: Similar to other competitors Wildstone also Seduction
where Girl makes the first move. Brand assumed that Men like to be seduced.

Engage:
Engage Deo was launched by ITC in 2013. In just over a year, it is already number two in the
deodorant market.
Positioning: Deodorant industry was crowded with similar products with similar advertising
(man attracts women).On one side Fogg changed the market by focusing on its effectiveness
and performance, Engage also tried to differentiate itself by being a product for both men
and women. While deodorant market is mostly dominated by male customers (69%), Engage
tried to cater to the needs of other 31 % too. They also try to focus on urban youth.
Product: Continuing their theme of a deo for couples, they have variants in pair. Engage was
launched with three pair of deodorants, namely:
o Rush (Male) & Blush (Female)
o Mate (male) and Spell (Female)
o Urge (male) and Tease (Female)

P a g e 13 | 31

Now they have 7 pairs of offering, namely (other than earlier three):
Frost (M) and Drizzle (F)
Jump (M) and Trail (F)
Intensity (M) and OWhiff (F)
Fuzz (M) and Tempt (F)

Also, they try to differentiate with their packaging. Deodorant is a highly competitive
market with numerous brands competing for shelf space. In this, a differentiated
packaging helps in catching the eye of the customer. Packaging is made to appeal to
the target group that is youth. Packaging is mostly in peculiarly shaped cans and
uses silhouettes as its key design component. The brand proposition Playful
Chemistry, is well complemented with this innovative and fashionable packaging
design which helps in making some eye catching billboard advertising as well.
o Engage for men has a bold, modern look and has been designed in classical black
with a tinge of effervescent colors. Black represent masculinity and bottle being
mostly black helps in distinguishing the specific product as the male one .The range
for women are in bright hues of Pink, Blue, Yellow and Green on a can shape
designed with contemporary feminine patterns. Bright colors are generally more
attractive to women and this kind of packaging distinguishes the male and female
products properly thus making it easy for customers to pick the product. Also, colorcodes show which specific variant it is from Engage and having a color code will ease
purchase for customers.
Price: The Engage deo is priced toward the lower side of the market around INR 175. It is
focused on urban youth and tried to provide service at a price well within their means.
Perceived value of the deo is almost the same as for other products in the same price range.
This can also be seen by the fact that the market share of engage deo is increasing which can
only be because the customer is finding value more than the price being charged.
Place: ITC has a very extensive distribution network reaching out to far corners of India.
Also, its available now on major online retailers like Flipkart, Snapdeal etc. ITC can do Direct
servicing of 100,000 markets & 2 million retail outlets. ITC has been doing many innovations
in the field of distribution management, one of the recent example of that would be the echoupal initiative which links farmers directly to the company in a mutually beneficial
relationship. Its also gearing up to roll out their products through paan wallahs. ITCs
distribution for cigarettes over the years meant that there is a high amount of trust between
the company and paan wallahs. ITC is planning to use them to distribute their product, thus
shaking up its distribution. This advantage in channels have meant that Engage have been
available at every place in India. Especially the target group of urban youth is easily covered.
Brand name of ITC means that they tend to get better shelf space then other brands in
different retail outlets. This reach has certainly been one of the major factors of them being
able to leapfrog brands such as Axe, Wild Stone etc. to number two position in deodorants
market.
Promotion: Engage is being positioned as India's first 'couple deodorant'. In addition to
being sold as separate pieces, it is also being sold in couple combo packs which offers some
monetary benefit over purchasing separately. This is to enhance the positioning as a brand
for couples.
o Ad is based on the Chemistry between the couples. Its tag line is Love has an all
new language.
o While Axe and a few other deo were focused on ads which showed men
being desirable after using their product, and while Fogg showed itself to be a brand
which gives high value, Engage was trying to position itself as something
which celebrates young love. Its attractive packaging design is meant to attract this
o

P a g e 14 | 31

o
o

urban youth population. It shows deodorant as a product which is used by both

men and women. While, the market is actually male dominated with 69% of
volumes being consumed by male consumers. With such high competition and so
many brands competing, a differentiated product is very important.
A unique positioning coupled with ITCs extensive distribution network has led to the
success of Engage.
One of the promotion technique which used the packaging design was executed
in Mumbai and Bangalore. The strategy was to promote the brand among youth
while also bringing alive special couple moments engaging in a new language
of love. This is
What the positioning of Engage is all about. In rainy season ITC created umbrellas
with the silhouette of a couple. These were then handed out to couples seated in
parks, gardens, college campuses and popular streets. They created branding around
benches in these areas with placed standees. Large units were created in the shape
of the deodorants as they are sold and placed at famous destinations like the
romance rocks at Bandstand, Carter Road and Marine Drive. This campaign helped
define Engage as brand for young couples.

Park Avenue:
PARK AVENUE, one of the biggest brands in the world of Apparels, Cosmetics & Toiletries is one of
the ventures of the J.K. Helene Curtis Limited. Till date it has been generally successful with all the
products and ranges offered. All this is the contribution of its strong brand equity & a strong PR it
has built over a period of time about its products and has been leveraging that time and again. But
the recently launched I.Q. in the Deodorant segment is not that successful, all this is the contribution
of neglect of the product by J.K. Empire.
PARK AVENUE has a wide distinction in the deodorants segment in
the FRESHNESS DEODORANT section. It offers1. Storm (Tagline: energetic, suave, cool, the stars
fragrance)
2. Horizon (Tagline: airy, oceanic, profound, the travellers
fragrance)
3. Alpha (Tagline: precise, strong, ahead, the directors
fragrance)
4. Cool Blue (Tagline: calm, smooth, breezy, the temperate
fragrance)
5. Tranquil (Tagline: serene, august, relaxed, the sailors fragrance)
6. Cruise (Tagline: fresh, wavy, soothing, the explorers fragrance)
7. Good Morning (Tagline: rejuvenating, prim, composed, the enigmatic fragrance)
8. I.Q. (Tagline: vibrant, winsome, fast, the torchbearers fragrance)
(Picture: Deodorants offered by Park Avenue.)
Product: Hail to Freshness Deodorant section of PARK AVENUE (PA) range. Although new but
has the potential to get to the top of mind and heart of the consumers.
Price: 179.00 INR for 150 ml bottle

P a g e 15 | 31

 Place: Available at all The Raymond Shop across India. Except I.Q. all other deodorants of
PARK AVENUE brand could be purchased from established retailers viz. BIG BAZAAR
(PANTALOONS RETAIL INDIA LIMITED).
Promotion: Till date no promotion has been done from the side of manufacturer (J.K. Helene
Curtis Limited) for its new product. This time no PR activity has been done while launching
the product (I.Q.) which is resulting into this product losing out to others.

Women Deodorant:
Fogg:
The deodorant mainly focuses on the use of nonarosol pumps and promoted its value for
money proposition. It positioned itself as anti-perspirant deodorant.
Price: Rs. 180 for 150 ml bottle.
Promotion: Perfumed liquid which lasts for more than 800 sprays.

Spinz:
The deodorant was launched in 1997 and positioned itself as a deodorant which fights order causing
bacteria. It keeps you fresh and active.
Price: Rs. 170 for 150 ml bottle
Promotion: It promoted itself as a deodorant which gives or boots confidence, and keeps one fresh
and cool.

Nivea:
The deodorant gives 48 hour protection against bad odour and keeps under arm dry throughout the
day. Nivea whitening deodorant was launched for fairer under-arms.
Price: Rs. 165-175 for 150 ml.
Promotion: It positioned itself as anti-perpirant and value for money deodorant.

Eva:
Eva was launched in 2003 for teenagers and young women. The deodorant helps to restore the pH
level and keeps one fresh for a long time.
Price: Rs. 120 for 125 ml pack
Promotion: It promoted itself through brand awareness campaigns, music concerts, street festivals,
expos etc.

P a g e 16 | 31

SWOT Analysis for Beauty Segment (BU

LOral, India)
Strength:

Brand Differentiation
Product Availability
Strong R&D and Innovation
Strong relevance with female products

Weakness:
Not able to divest its poor brands
Fake products sold under the name of their brands

Opportunities:
Go Green / Eco-Friendly
Tier 2 & Tier 3 Cities
Growing market for beauty products

Threats:
High Rivalry
Indirect Competitors
Products have stiff competition from big domestic players and international brands.

PERFORMANCE REVIEW

P a g e 17 | 31

Market Share %

Deodrant Industry
80
70
60
50
40
30
20
10
0

Fogg

Axe

Wild Stone

Engage

Others

10.7

Park
Avenue
2

2012

1.5

14

71.8

2014

12.5

6.9

6.9

6.5

8.1

59.1

Source: www.businessstandard.com

Fogg:
The deodorant market has seen an explosion of products in the last few years. What Fogg has
managed to do is set a new equilibrium with its unique selling proposition. But there is no denying
that Fogg has cleverly managed to tap into the needs of the consumer. In a category such as
deodorants, Fogg with a differentiated offering, now eventually
eventu
stands out.
Market share of Fogg has grown from 1.5 to 12.5 from 2012 to 2014 making it the leader in the
deodorant industry. Fogg promoted its brand as a High Value brand offering its product in both male
and female division.
It differentiated itselff from the perception that women gets attracted to men by offering
Deodorants of low Gas content and a High value proposition.
Company assures its customers around 800 sprays from its 100 gram bottle priced at INR 180. This
value oriented brand focused on age group 15-30
15 30 years comprising mainly of students, bachelors
mainly of middle income group.
Darshan Patel Owner, Vini cosmetics says that Fogg currently reaches 500,000 stores and the plan
is to touch another 500,000 counters in the next two years. We raised money a few months ago with
this objective in mind," Patel says.
Private equity investor Sequoia Capital picked up a 9-per-cent
9
cent stake in Vini for about Rs 100 crore in
August, 2013, valuing the firm at over Rs 1,100 crore or nearly six times sales.
sale

Axe:
Axe is most renowned brand of HUL in deodorant category. In 2012 it was leading the deodorant
Market by a share of 14 %.
Axe spends a lot of funds on advertisements and promotions through social media etc. In its
advertisements it did not showcased
ed celebrities unlike other brands for a long duration.
They had to back paddle a bit from the image because Axe had gained a reputation of a product that
was used only by losers. So in June 2013, company roped in celebrity Ranbir Kapoor to break the ice.
But the basic theme of the advertisements remained unchanged viz. Axe Effect can cast a spell on
girls.

P a g e 18 | 31

While Axe is among the first few brands which created the deodorant category in the country in
1999. Fogg was launched only two years back in 2013, still Axe could not retain its leadership
position. In 2014, the market share of Axe fell to 6.9 % failing to hold on to the position of a leader.
The major reason being that other brands came up with new and innovative ideas like High value
Deodorants, no gas sprays and Couple Deodorants.

Engage:
Interestingly, ITC's Engage deodorant brand, which launched a range for both men and women in
April 2013, is one of the youngest brands in the category. It has managed to grab a chunky piece of
the market pie.
With its launch only Engage had garnered a share of about 5-6% in the Rs 2,100 crore deodorant
market as of October 2013.
ITC personal care's entry into the deodorants market with Engage has received an extremely
encouraging response which now holds 8.1 % market share.
Reason for such tremendous response for Engage is that it also focused on the women segment
which holds an account of almost 31% of total market share.
It leaves behind Men attracts women theme and got involved in playful chemistry of the two
partners (Couple).
Differentiated packaging- It brings freshness in the bottle design. Which helped the brand to attract
users attention on the shelves of Retail outlets.
For men, it introduced black and bold bottle and for women it introduced bottles in colours like pink,
blue, yellow.
From 6+ Variants in 2013 it launched 14+ variants till Dec 2014 which significantly helped the
company to compete with existing brands.

Wild stone:
In 2012, Wild stone enjoyed 10.7 % of market share with its focus on 15-30 years of age group.
According to Nielsen, little known company, McNROE Consumer Products, which sells the Wild
Stone brand, toppled giants Hindustan Unilever and ITC in the June quarter 2014 to reach the
second spot in sales.
Wild Stone communicated its brand for Indian men and women who are lifestyle oriented and have
passion and mystery rather than overly sexual brand.
It came in mainly two variants a milder one for office goers and a stronger one for party goers.
Wild stone currently has a 6.9 % market share marginally more than That HULs Axe.

Park Avenue:
It is a brand which focuses on age group of 28+ and tries to build a high brand loyalty among this age
group and focuses on anti-perspirant and long lasting fragrance.
From 2% in 2012, Park Avenue has stepped to 6.5 % in 2014.
JK Helene Curtis, part of Raymond group and the maker of Park Avenue deodorant is delighted to
have gained an incremental market share in this cluttered category.
This is a result of innovation in pack sizes and launch of new fragrances.

P a g e 19 | 31

SEGMENTATION , TARGETING AND POSITIONING

Segmentation
The deodorant consumers can be segmented on the basis of age or gender.
Age group
14-17 years

18-22 years

23-28 years

28-35 years

Segment Trends
Influenced by parents,
peer group
Curious & Explorative
by nature.
Lack of loyalty factor.
Experimenting and
explorative by nature.
Strivers

Benefits
High Fragrance,
Attraction

Brands
Axe, Set Wet, Brut, Park
Avenue, Rexona, Fa,
Lomani, Spinz, Fogg

Anti-perspirant, Odour,
Fragrance, Attraction.

Development of
preference & brand
loyalty.
Willingness to try
expensive brands
Esteem-seeker, Striver,
Utilitarian
Utilitarian,
Traditionalist
High brand loyalty

Fragrance, Attraction,
Long lasting smell, Antiperspirant

Axe, Set wet,

Wildstone, Fa, Adidas,
Nike, Reebok, Zatak,
Cinthol, Fogg
Dove, Axe, Brut, Nivea,
Playboy, Fogg

36 years & above

Utilitarian
May switch to other
means like, perfumes
to fulfil similar needs.

Gender
Male

Segment Trends
More Influenced by
advertisements &
promotional campaigns

Female

Peer Groups influence,

properties of the
deodorants

Fragrance, Health &

Hygiene, AntiPerspirant, Long lasting
fragrance.
Health & Hygiene, Skincare.

Old Spice, Park Avenue,

Dove, Tommy

Benefits
Anti- Perspirant,
Contemporary
masculine fragrances
such as Musk etc.
Floral & Fruity
fragrances, more
hygiene conscious &
Skin-care

Brands
Axe, Set Wet, Playboy,
Fogg, Park Avenue

Tommy, Jovan, Old

Spice, Dove, Nautica

Rexona, Dove, Yardley,

Eva, Spinz, Nivea, Fa

Target
Our target audience would be the females of middle class and upper middle families living in
metropolitan cities and tier -1 cities within the age group of 18 to 28 years.
There are a number of deodorants for males but there are very few deodorants for females. This is
because deodorants and antiperspirants have recently been introduced to the Indian market.

P a g e 20 | 31

For decades, the Indian market has been relying on perfumes to enhance the scent of the body. And
as such, females in the country continue to use perfumes instead of deodorants and antiperspirants.
Also, deodorants are used by those who are constantly outdoors, and this is dominated by males.
It is only in the last few decades that there has been an increase in the number of Indian women
spending ample amount of time outdoors, which is why the deodorant market for females is still in
the infant stage. Primarily women going to college or working spend their time outside and would
require deodorants.
Some of the deodorant brands that cater to the females are Nike, Fa, Yardley, Eva, Dove, and Nivea.

Positioning
Strong Enough for a Man. But Made for a Woman
The positioning statement focusses on a deodorant which is for women and has a strong fragrance.
Currently the industry lacks such deodorants for women while there is an increasing demand of the
same.
Most important attribute of a deodorant as perceived by the people:
Long-Lasting
Antiperspirant
Value for Money
Strong Fragrance
Brand Value
Promotion
Freshness
Packing
Our product would focus on these factors, to cater to the teenagers as well as the young working
women. Also, we have focused primarily on only these factors, to provide an added benefit of the
perfumes by offering different variants for different occasions.
We would position it as a fashionable, stylish and an impactful deodorant.

Points of Parity
Pleasant Fragrance
Long Lasting
Easy to Carry Packaging

Points of Differentiation
Strong Fragrance
Skin Friendly
Freshness
No Patches on Clothes
Aluminium Free

P a g e 21 | 31

Perceptual Map for Womens Deodorant

OBJECTIVES
Total deodorant market has been valued at INR 2500 Crores for the F.Y. 2014-15
o (Source www.Business-standard.com)
Total women deodorant industry is 30%
o (Source- www.mbarendezvous.com)
Assumption for the growth rate of the industry is 25%
o (Source www.mbarendezvous.com)
Based on the available data,
Total Women deodorant industry for F.Y. 2014-15 is INR 750 crores
Our objective is to gain a market share of 9% in the women deodorant industry in F.Y. 2015.16
Total deodorant Market INR 3,125 Crores
Women Deodorant Market - 937 Crores
Sales Objective 84.3 Crores
Average selling price of one Deodorant INR 150
Total Sales volume(Units)- 5,625,000

P a g e 22 | 31

MARKETING STRATEGY
For a Strong Independent women, Sapphire a premium deodorant that not only boosts her
confidence but also complements her attitude with long lasting fragrance.
The positioning statement focusses on a deodorant which gives a premium long lasting fragrance to
a modern independent woman. Currently the industry lacks deodorants for active women while
there is an increasing demand of the same.
Most important attribute of a deodorant as perceived by the people:
Long-Lasting
Antiperspirant
Value for Money
Strong Fragrance
Brand Value
Promotion
Freshness
Packing
Our product would focus on these factors, to cater to the teenagers as well as the young working
women. Also, we have focused primarily on only these factors, to provide an added benefit of the
perfumes by offering different variants for different occasions.
We would position it as a fashionable, stylish and an impactful deodorant.

Points of Parity
Pleasant Fragrance
Long Lasting
Easy to Carry Packaging

Points of Differentiation
Strong Fragrance
Skin Friendly
Freshness
No Patches on Clothes
Aluminium Free

Marketing Strategies:
Since our target segment is females of middle class and upper middle families living in metropolitan
cities and tier -1 cities within the age group of 18 to 28 years, in order to develop the marketing
strategies, we have to list out their preferences, their lifestyle, where they spend their time, etc.
Mostly, women of age group 18-28 in metropolitans and tier 1 cities spend their time at following
places

College/Institutes (If students) or Office (If Working professionals)

Internet
o E-commerce sites
o Facebook, Twitter and other Social Networking Sites
o YouTube
Malls/Supermarkets
TV/Radio
Movies
Parties
Cafes (Food/Snacks/Coffee)

P a g e 23 | 31

We can make strategies to attract more women to use our product by exposing them to our product
at these places. We can adopt the following Marketing Strategies

Colleges/Malls We can organize events dedicated to girls, couples, or with girls along with
their friends in the Colleges and Malls under the umbrella of Sapphire, where we can make
them aware of the product.
Facebook/Twitter/Other Social Media Create a webpage and Hashtag dedicated to the
product, Start Debates and discussions on these webpage on women related topics on the
webpage such as status of women in society, Women perception of deodorants, Gender
equality, etc
Events Organize events related to women under the umbrella of Sapphire, Promote the
event through TV, Radio and other media to indirectly promote the brand. (Example
Sapphire Beach Party)
Parties Organize parties with celebrities under the umbrella of Sapphire and promote
these parties as described in Events. (Example Sapphire Star Night with Ranbir Kapoor)
YouTube Video Ads, Sponsorship and partnership with YouTube channels like Bollywood
review, etc.
LOral Beauty salon coupons We plan to provide a hidden code on every pack of our
Deodorant Sapphire. The customer needs to message this code to our customer contact
number which will automatically send a Coupon voucher code to the customer. This coupon
can be redeemed on LOral Salon & would be worth 5% of total bill value or INR 500
whichever is least. This will not only be a promotion tool for our deodorant but will also
increase our Footfall of LOral Salons.

ACTION PLANS
Product Strategy
The product is a brand extension in the already existing wide range of products of LOREAL.
Sapphire, the highly successful brand of deodorants in countries like USA, Mexico and Canada is
now being launched in India. The fragrances being launched in India are the ones that are the best
sellers in USA, Mexico and Canada. Sales of the three fragrances are expected to be equally
distributed.

Sizes

75 ml
150 ml

Variants

3 Different Fragrances

Paris Romantic Rose

Hawaii Citrus Breeze
Brazil Rainforest Mist

Benefits

Strong Fragrance, Lasts All Day, Skin Friendly, No Patches on Clothes

Packaging

Attractive design, Curvy Bottle

P a g e 24 | 31

Pricing Strategy
The product will be priced on the basis of competitive pricing.

Womens Brands
Engage Women

Size

Price

Remarks

165 ml

165

Value for money

Nivea Women

50 ml

165

Niche , relatively expensive

Fogg Women

120 ml

180

Provides More usage per Bottle

Spinz Women

150 ml

170

Moderate price.

LOREAL Women
(Sapphire)

75 ml

120

150 ml

189

Premium Product

Distribution Strategy
The FMCG Distribution network is a very wide spread network with about 12-15 million retail outlets
across nation. A city like Delhi will have approximately 1 million retail outlets which have LOREAL
products. These outlets are primarily catered through distributors and few directly through stockists.
The distribution network of LOREAL for its Beauty Care Products in India follows the below
mentioned distribution channel.

LOREAL
Manufacturing
Stockist
Distributor
Retailer
Customer

LOREAL already has a well-established distribution channel for the beauty care products of the
company and also has a strong brand name, so the same channel can be used for distributing the
new product, Sapphire.

P a g e 25 | 31

The existing distribution channel of LOREAL personal care products which can be used for
deodorant brand of LOREAL which caters to the audience with same socio-economic background as
the target segment of the new product under consideration, Sapphire. The only difference being
that the new product under consideration targets women.
The new product, Sapphire can be made available in all those stores or retail outlets wherever
LOREAL personal care products is available and thus in distribution channel i.e. stockists,
distributors, and retailers no new additions will be required.
Following the norm of Beauty Care SBU of LOREAL, the following margins will be provided
Retailer Margin
Distributor Margin
Stockist Margin

15%
6%
1.5%

Initially push strategy will be used for the distribution of the deodorant. Provision of additional
benefits like credit sales, bulk discounts will help in the same. After that a mix of push & pull strategy
will be used. For retailers Quantity based purchase schemes, price reduction schemes and target
based rewarding systems can also be used at a later stage.

Promotion Strategy
A well thought of Promotion Strategy is required to create awareness about the brand in an already
highly contested market. The promotion strategy will focus on 360 degree branding effort using print
media, digital media, TV advertisements, direct marketing & PR.
For the new product under consideration, Sapphire, it is planned to spend Rs. 10cr in total on
promotional activities.

Digital media online is gaining more and more popularity with increasing internet
penetration levels across India especially in the metropolitan cities. The target segment
which includes women from metropolitan cities also have access to the internet and thus
this channel can prove to be an effective medium.
Promotion on the digital media and social networking sites like Facebook will include
product pages which will post digital content and videos which will also be uploaded on
YouTube. This will help in achieving more awareness within a short span of time.
Despite of increase in popularity of Digital Online Media, Print Media still has the highest
reach, and the company will use it extensively to promote the product. Along with TV
advertisements will also be aired but not very frequently due to constraint of budget.
LOREAL will also use direct marketing, PR & word of mouth to create a buzz during the
launch of the product.

Launch of the Product

As the potential users are in the age group of 18-28, promotion of the product in college
festivals as well as shopping malls can be undertaken.
Initially the product will be launched in the 6 metro cities of India, thus for print media only
the supplementary sections of leading English dailies will be used.
Videos will be uploaded on Facebook and YouTube regarding the product launch which will
be connected to the Facebook page.

P a g e 26 | 31

Promotional Cost
LOREAL will spend about Rs. 10cr in promotional activities to gain market share and make its
presence felt in the market.
Mode

Budget
(Rs. Lakhs)

TV Advertisements

250

25

Magazines
Newspapers
Events and coupons

145
120
110

14.5
12
11

Online and Direct

Ads

375

37.5

Total

1000

100

Remarks
Rs.75000 to Rs.80000 per 10 second (for
FMCG companies like HUL, LOREAL)
Number of advertisements = 330 (approx.)
Womens Era, Filmfare, Femina, Vogue
Supplement Section like HT City
Rs.30,000 per event and rest for coupons
Online
marketing
campaigns
through
Facebook, twitter, yahoo etc.
Word of mouth marketing and direct publicity
drives like providing testers in malls as well as
marketing campaigns.
Sponsoring festivals such as youth festivals,
music shows etc.

Sales force strategy

LOral is one of the leading Beauty Company operating in India. Sales force strategy is based on
Sales Growth. The sales force used by LOral for their other beauty products, would be compatible
and sufficient for our product to create awareness and increase the sales.

The market targeted by other LOral products and our product (Sapphire) have same socioeconomic background and demographic.
Not much training would be required to sell the new product, only the value offered by our
product need to be told to the sales force.
Consumers need a little encouragement to buy the new deodorant, the sales force already
has an experience to sell a personal care products in this market and is quite familiar with it
so the sales force would be able to do the needful.
Based on sales, future growth potential and Efficiency of existing sales force, they should
define the size of sales force required in each of the defined territories.
Since market potential is more in metro cities, so company is launching its product in six
cities i.e. Delhi, Mumbai, Bengaluru, Kolkata, Hyderabad and Chennai.

P a g e 27 | 31

PROFIT AND LOSS STATEMENT

The following points have been considered for preparing the P&L Account:
The Deodorant market in India is Rs.3195 crore. Our target market is female category which
stood at Rs.937 Crore in 2015. Therefore, it is expected that a new product launched in this
category by LOral will go on to demand approximately 8.9% market share in the first year.

As per industry analysis, our CAGR is expected to be around 30% (as mentioned above)

The margin for various intermediaries are:

o Distribution Margin
6%
o Retailers Margin
15%
o Stockiest Margin
1.5%

Therefore, gross revenue for LOREAL will be Total Sales at MRP less margin for various
intermediaries.

Calculation of Revenue from Operations (Gross)

For the year ended in
march 31, 2016

For the year ended

march 31, 2017

For the year ended

march 31, 2018

` In Lakhs

` In Lakhs

` In Lakhs

8430.00

10321.00

12437.00

2107.5

2580.80

3109.25

6322.5

7740.2

9363.7

Total Sales at
MRP
Less: Margin for
various
intermediaries
Revenue from
Operations
(Gross)

Profit and Loss Account

For the year ended June
31, 2016
` In Lakhs
INCOME
Revenue from Operations
(Gross)
Less: Excise Duty
Revenue from Operations
(Net)
EXPENSES
Cost of Raw Material &
Manufacturing
Promotional Expenses
Sales and Distribution Cost

For the year ended June

31, 2017
` In Lakhs

For the year ended June

31, 2018
` In Lakhs

6322.5

7740.2

9363.7

843.00

1020.00

1242.36

5479.5

6720.2

8121.34

2893.18

3548.27

4288.06

1000.00

1000.00

1000.00

980

1225

1531.25

P a g e 28 | 31

Administrative and Other

Expenses

787

1023.1

1100.8

Total Expenses

5660.18

6796.37

7920.11

Operating Profit before Tax,

Interest and Depreciation

-180.68

-76.17

201.23

Working Notes:
1. The excise duty levied is 12%.
2. Cost of raw material and manufacturing is 66% of 80% (20% is profit) of gross revenue.
It includes material, processing charges, power and fuel and stock-in trade.
(As calculated from the annual report of LOREAL India for the Year 2012-13)
3. Promotional expenses considered are Rs. 10cr for next three years.
4. Cost of Sales and Distribution is 15.5% of Gross revenue.
It includes conveyance expenses, freight and warehousing expense, distributor coverage
expense, travelling expense and trade incentives.
5. Administrative and other misc. expenses is 12% of gross revenue.
(As calculated from the annual report of LOREAL India for the Year 2012-13)
6. In the first year, the percentage of deodorants for Female category is 31%. For second year it is
32% and for the third year it is 35%.
7. The projected market share for first year is 8.8%, for second year it is 9.1% and for third year it
is 11%.
8. Hence, we get the sales at MRP for
First year
Rs. 8430 Lakhs
Second year
Rs. 10321 Lakhs
Third year
Rs. 12437 Lakhs

Profit Percentage before Tax, Interest and Depreciation are as follows:

Profit as % of
sales

For the year ended

march 31, 2016

For the year ended

march 31, 2017

For the year ended

march 31, 2018

-3.3%

-2.1%

2.5%

P a g e 29 | 31

MONITORING AND CONTROL

The sales volume and market share should be constantly monitored.

It should be monitored if the customers perceive our product in the same way as it was
positioned or differently.
The impact of advertisements from different mediums should be monitored by conducting
surveys at the point of purchase and asking relevant questions. The reach can also be
monitored by conducting random surveys in market places asking people if they have heard
about the campaigns or not.
Adequacy of sales force can be monitored by taking feedback from retailers and distributors on
different aspects like shortages or delays in ordering and delivering.
It is of utmost importance to monitor whether the product is delivering the benefits proposed.
In case the product is not standing up to its requisites then the image of the brand will decline
at a very fast pace. This can again be monitored by getting surveys filled.
Long term gains from the product will depend on the ability of the product to retain its
customers. It becomes important to find out if the customer who has purchased the product
once makes a repurchase or not. This is easy to monitor in modern retail outlets but difficult in
traditional retail outlets.

Contingency Plan
If the above mentioned plan is not successful then company should conduct surveys to find out the
weak areas of the strategy.

LOral can adjust the product's price in response to a competitor's price by keeping it lower
than usual competitors for successful entry into the market.
LOral can offer discounts like buy two bottles of Sapphire and get one free to attract more
customer.
Find out the most effective promotion channel which increases the visibility of the product and
shift focus to those channels.
If the existing promotional campaign is ineffective in connecting with the customers, improve
the campaign.
If the existing sales force is inadequate, try to increase or decrease as per requirement for
increasing efficiency.

P a g e 30 | 31