Soap Penetration in India

Topics: Vegetable fats and oils, Preference, Household income in the United States Pages: 4 (1033 words) Published: October 1, 2012

The product categories can be classified into three segments; premium (Lux, Dove), popular (Nirma, Cinthol), and economy (Nirma Bath, Lifebuoy). The price differential between the premium and economy segments is about 2X. The popular and economy segments account for about 4/5ths of the entire market for soaps.

• Penetration of toilet soaps is high at 88.6%. However per capita consumption levels remain low India's per capita consumption of soap at 460 gms per annum is lower than that of Brazil at 1,100 gms per annu

Soap Penetration in India

1. People belonging to different income levels use different brands, which fall under different segments but all income levels use soaps, making it the second largest category in India (detergents are number one)

2. Rural consumers in India constitute 70% of the population. Rural demand is growing, with more and more soap brands being launched in the discount segment targeting the lower socio-economic strata of consumers.

Soap Price (per 75 gram cake)

[pic]Carbolic* 5.00 Discount 7.00 [pic]Popular 11.00 [pic]Premium 17.00 [pic]Super Premium 35.00

[pic]* The carbolic segment consists of soap that has crysellic acid (e.g. carbolic acid) as an active ingredient to remove body odor. These soaps have a strong medicated/germ killing connotation.

3. Soap manufacturers originally targeted their products to the lowest income strata in urban as well as rural areas, positioning their brands as a way to remove dirt and clean the body

4. For some brands, that positioning persists even today with a focus on removal of body odor and keeping the user healthy. However, soap...
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