Nihar Coconut Oil

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A Project on Nihar Coconut Oil
Subject: Rural Marketing


| |TOPIC |PAGE NO | | |Introduction |1 | | |Key Objective |2 | | |Rural consumers and industry’s profile |3 | | |About HLL |5 | | |Performance of HLL in 2001 |6 | | |Nihar’s market share |9 | | |Marketing mix for Nihar coconut oil |10 | | |Problems and strength of Nihar |14 |


The hair oil market is huge, valued at Rs 6 bn. Due to the varied consumption habits of consumers across the country, where coconut oil and edible oil are interchangeably used, the size of the market is likely to be higher than estimated. More importantly, the market is growing at an impressive 6-7% in volume terms despite the high penetration level. Usage of hair oil is a typical Indian traditional habit. It is perceived to offer benefits of nourishment, hair strengthening, faster and better growth, and reduce the problem of falling hair. There are two types hair oil available in the market; coconut oil and non-greasy perfumed oil. Coconut oil comprises 2/3 rd of the total market and the balance comprises the non-greasy perfumed oil. Usage of hair oil is an everyday habit with 50% of the population out of which some perceive that massaging the head with hair oil has a cooling impact. The penetration of hair oil is fairly high at around 87% and evenly distributed among the urban and rural areas. Hair care category in India consists of the following major product groups. Hair oil is a very Indian phenomenon. It is used as a conditioner and nourisher. Hair oils are broadly of two types viz coconut oil and non-greasy perfumed oil. The major positioning platforms for hair oil are purity, hair nourishing and more recently, non-greasy look. Coconut oil and perfumed oil accounts for about 65% and 35% of market in volume terms. Unlike shampoos or hair colors, which are products relatively new to the Indian psyche, the usage of hair oil is a deeply ingrained habit with Indian consumers. Therefore, this is one product where the major players do not have to fight either monetary or psychological barriers to usage. But this does not necessarily mean that being a branded player in the Rs 1,300-crore hair oils market is easy. Branded players account for just over a third of the total hair oil market. Players in the plain coconut oil segment operate in a category where there are few entry barriers in place. Loose oils are priced on the basis of input costs and availability, both of which are notoriously volatile. Since branded players have to grow at the expense of the ubiquitous unorganised segment and a host of regional and local brands, it is difficult to shield margins and selling prices from the vagaries of loose oil prices.

Key objective
The main objective of Nihar coconut oil is to overtake the loose oil consumers in rural areas. It also aims at being the market leader in rural market by overcoming other brands. It is a quiet conquest by Hindustan Lever Ltd (HLL) in the rural...
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