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SUNSILK – INNOVATIVE MARKETING STRATEGIES

1. INDUSTRY PROFILE

Shampoo in India was derived from the Hindi word ‘Champi’ meaning hair massage. The introduction of shampoo in India dates back to the British reign in the country. Being a recent development the growth of shampoo or rather the penetration levels of shampoo in the India has been commendable.

The shampoo market in India is estimated to be Rs 2,500-3,000 crore. The shampoo market is India is categorized according to the benefits they provide. Mostly consisting of three kinds of shampoos cosmetic, herbal and anti dandruff, the shampoo market in India has managed to tap users of the various segments according to their requirements and preferences.

Due to the continuous efforts of the top shampoo brands in India penetration of shampoos in urban areas is almost 100%. As far as penetration of shampoo in the rural areas is concerned it has risen by almost 18% in the current scenario.

The top shampoo brands in India include Sunsilk, Clinic Plus, Dove and Pantene. The company that leads the shampoo market in India is Hindustan Unilever Limited. The top three most sought after brands Sunsilk, Dove and Clinic are produced by HUL. The company holds a 44% market share in the Indian shampoo industry. It is said that HUL earns almost 8% of its revenue from the sale of these products The other recent brand that has taken the Indian personal care industry by storm is Pantene. Since its very inception the brand was a best seller. A product of FMCG giants Proctor and Gamble Pantene has slowly and steadily managed to capture quite a large amount of the Indian market. Proctor and Gamble the second top shampoo brand in India holds a market share of around 25% in the Indian shampoo industry. The revenue earned from the ale of shampoos from Proctor and gamble is almost 17%.

Together these two major players constitute a major part of the Indian shampoo industry. Both these players with their numerous brands dominating the Indian shampoo market are continuously trying to outdo one another by introducing different marketing schemes. Be it in the form of price cuts, discounts or increasing the size of the shampoo sachets without any extra costs these two to shampoo producing companies are at a continuous price war.

2. COMPANY PROFILE

Unilever, an Anglo-Dutch company, was formed in 1930 as a result of a merger between British soap maker Lever Brothers and Dutch margarine producer Margarine Union. Hindustan Unilever Limited (HUL) is a subsidiary of Unilever; one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €40 billion. HUL is the first foreign subsidiary to offer 10% of its equity to Indian public. Hindustan Unilever Limited (HUL) was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an employee strength of over 15,000 employees and contributes to indirect employment of over 52,000 people. The company was renamed in June 2007 as “Hindustan Unilever Limited”. Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The company’s Turnover is Rs. 17,523 crores (for the financial year 2009 - 2010). In 2009 Unilever has about 52% shareholding in HUL. Hindustan Unilever was recently rated among the top four companies globally in the list of “Global Top Companies for Leaders” by a study sponsored by Hewitt Associates, in partnership with Fortune magazine and the RBL Group. The company was ranked number one in the Asia-Pacific region and in India. HUL VISION

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