ITC Interrobang 2 : Case

Challenge

Team Case-a-novas
Indian Institute of Management,
Indore

Abhishek | Anup | Keerthan | Pradeep

Problem Statement
‘Formulating a growth roadmap for Vivel in the face wash market’

Brand Vivel
Vivel was built on the philosophy of offering superior functional benefits at similar price
points as compared to other available products in the market. The user and usage imagery
associated with Vivel Face Wash point to softness, nourishment, protection and
moisturisation benefits, the positive demeanour and outlook it gives are all aspired by the
urban youth.

Growth roadmap

Vision
To be the leader In the Face Wash market by delivering higher value to the customers by
being consumer-centric.

Goal
To be the clear market leader in the Face Wash category by March 2014.

Opportunities for Growth with Vivel

1. There is no Face Wash product aimed at Men
2. Many Customers want to use new Face Wash products on a trial basis. The Non-
Availability of smaller pack sized SKUs in the Vivel Face Wash category prevents new
customers from trying it out.
3. The element ‘Fragrance’ is absent in the marketing communication

New Product:
We did a Benefit Structure Analysis . The details of the surveys conducted are given below.
Phase 1:
In phase 1, we talked to 5 retailers (including the one on campus, one supermarket and 3
Kirana stores in Indore) about the sales of various Face Wash products sold by them. All of
them stocked Himalaya and Ponds Face Wash. Lakme and Garnier were stocked in 3 of the 5
retailers. Dove and Vivel Face Wash were found in the supermarket alone. The general
consensus among retailers was that the Women’s face wash market was crowded with
multiple brands fighting it out while there were fewer brands for Men. We wanted to check
if there is an opportunity for a Men’s Face Wash product from Vivel.
Phase 2:
The sample size for the survey was 122 and the samples were men between the age of 18-
30. We conducted the survey in TI mall, Indore. The questions revolved around their skin (in
particular face) care habits. We identified the following benefits and product characteristics
in a Face Wash product.
The summary of the survey and analysis are given below:-

A. Benefits and Characteristics identified with Skin(particularly face) Care products:

Benefits Product Characteristics

Cleansing Action Fragrance
Soothing effect Herbal/Non- Herbal
Freshness Lather Formation
Antiseptic properties Viscosity of the cream
Skin Conditioning
Sunscreen
Moisturizer
Bright and Glowing Skin
Removing Wrinkles

B. A scoring system for benefit desirability(want) and benefit availability(received) in

current Face Wash products has been devised as under:-

Benefit Not at all Wanted /Benefit Not at all Received +1

Benefit somewhat wanted / Benefit somewhat Received +2
Benefit Pretty much wanted / Benefit Pretty much Received +3
Benefit Definitely wanted / Benefit Definitely Received +4

A benefit deficiency matrix (desirability – availability) has been created to analyse which
of the benefits are desired more by the customers and which of these benefits are not
being provided by the current brands.

The table of Benefit wanted minus benefit received is as follows:

Then the following table was deduced which compares the size of sample wanting benefits
and benefit deficiency.

From the table it is evident that there is greater deficiency among current
products in providing Soothing Effect, Antiseptic properties, Bright and Glowing
Skin and freshness. This is as perceived by the male respondents who were
surveyed.
Phase 3:
Based on phase 2 results, we feel that the most apt product that Vivel can introduce is
Men’s 2-in-1 face wash (Cleansing action + After-shave) which is Men’s face wash having
the functional benefits of a Face Wash(cleansing and providing Bright glowing skin) along
with the soothing, freshness and antiseptic benefits an aftershave gel or lotion provides.

The product would differentiate itself from multiple competitors. While all are offering a
simple face wash, Vivel would be introducing a variant which has twin benefits: one being
Face wash, the other being ‘After shave’. The product we feel would find wide spread
acceptance because:-

 Face Wash usage levels among men in India is quite low. So the market to capture is
pretty large.

 Most men who shave use an after shave lotion. They are however reluctant to use a
Face Wash because the perceived benefits are quite low. If they are given a face
wash with the functions of an after shave lotion, they can be persuaded to use it.
Criteria for evaluating New Product
Market Size:

Demand For After Shave

Market Size of After Shave in India (2009) ~ Rs. 300 crores i
So, the present market size (2012) ~Rs. 500 crores ii

For Men’s Face Wash

Market Size of Face wash in India (2009) ~ Rs. 100 crores iii
So, the present market size (2012) ~Rs. 200 crores iv

For Vivel’s Face wash + After shave 2-in-1

Considering a market share of 8% in after Shave = 0.08*500+ 0.07*200
and 7% in Men’s Face wash segments
Revenues in first year i.e 2012-13 = Rs. 54 crores (Not considering the
conversion of non-users into users)

Revenues in 2013-14( at 20% growth)v = Rs. 65 crores

Fit with Firm’s product portfolio
As Vivel already has a shampoo which caters to men, a face wash which specifically targets
men has a good fit. Face Wash for men can reinforce what Brand Vivel and ITC’s personal
care stands for-youthful. With a strong R&D division, ITC has pioneered many successful
FMCG product launches in India. Even though ITC wouldn’t be the first company to launch a
Face Wash product for men, this new product will be disruptive innovation in many ways.

Firm’s Capability: Produce and Market

Supported by a strong R&D team, the firm has all capabilities of developing a winning
formula in producing Face wash+ After shave.

Also Vivel being already successful in marketing all other products will find it easy with the
support of existing structure in marketing the new product ‘Vivel Men’s 2-in-1 Face wash+
After Shave’.

Differentiation vis-à-vis existing products

5

Garnier Men's Facewash

3
Vivel 2 in 1 Face wash +
1 After Shave
Old Spice After Shave
 The above chart shows the differentiation vis-à-vis a Face wash and an After
Shave with respect to the attributes of the product. From the above chart, we
can see that the curve for our product is flatter on the higher side for benefits,
which means that perceived deficiency could be lower while a consumer uses
the product.

Marketing Strategy

Creating the Buzz

Pre-launch buzz should be created through Facebook pages and other social networking forums,
Contests and Events in colleges, channels like MTV.

Positioning:
The (Target Group)TG should be men in the age group of 18-35, in urban and semi-urban
markets, college going or professionals, as they are most likely to shave daily or more than
once a week and hence the prime users of the product.

The positioning should emphasize on the triple benefits of an antiseptic after-shave, face
wash and a moisturizer.

Points of Parity would be cleansing action which a face wash is supposed to do, cleaning dirt
from the pores of the face and providing a clear skin after the usage.

Points of difference would be the unique antiseptic action which would give relief from the
cuts and rashes on the face after the shaving and thus not requiring an after shave
separately.

The initial distribution strategy should consider:-

- The introduction of smaller packs

 This has to be done in order to get more consumers to try this product and avoid
price being the hindrance in doing so.
 This will also help in targeting people who are ‘On-the-go’ consumers.
 This will help in market development in towns where there is a huge potential
 This will help Vivel in a way similar to that of Fair & Lovely giving out smaller
packs (`5 pack).This will enable customers use it and experience the benefit
before trying out larger packs.

- A signature fragrance for Vivel will be an added advantage and help in establishing
associations. This card is played by Lakme using fruit fragrance which has found a
distinct connect with its consumers.
- Translucent Pack
With opaque packs, it is difficult to determine if the gel/cream is completely used up
or not. So the pack can be made translucent to observe the content.

In-store Marketing:
The product sample can be first offered in 3 pack sizes-small sachet (2-3 uses per pack),
small tube (10-15 uses per pack) and large tube (30-40 uses per pack).
The product should be kept in shelves along with the other brands of Men’s face wash, so
that it attracts special attention because of its after-shave property.

In retail stores where there is a separate section for shaving products, the customer service
associate should be asked to suggest this product as a unique offering.
Advertising Ideas:
The advertising should focus on the burning sensation of alcohol based after shave, and
portray it as something which can be done away with.

With a right mix of TV, Print and new – age media should be employed. A 60:30:10
respectively should be given for effective reach to the target audience.

It should also communicate that instead of using multiple products for different
requirements, Vivel 2-in-1 is a single solution, thus reducing the clutter.

The dual benefits of cleansing action and aftershave benefits can be communicated through
a youth icon with a chubby face (Actors Imran Khan, Shahid Kapur or Mahesh Babu). This
jells in well with the user and usage imagery of Brand Vivel.

Suggested Timeline of Events

Launch of other
variants
Winter Varient
Jan 2014
July 2013
Men's
Facewash+
After Shave
Fragrance May 2013
Jan 2012

Translucent
Pack
Oct 2012
References

Benefit Structure Analysis:

(For details about the method, please refer Analysis for Strategic Marketing by Vithala R
Rao, Joel H Steckel. ISBN:978-81-317-0160-7)

i
http://articles.economictimes.indiatimes.com/2009-04-07/news/27644941_1_deodorant-market-share-
brand
ii
http://www.thehindubusinessline.com/industry-and-economy/marketing/article3371077.ece
iii
http://articles.economictimes.indiatimes.com/2010-11-12/news/27629303_1_personal-care-hair-care-
grooming-market
iv
http://www.thehindubusinessline.com/industry-and-economy/marketing/article3371077.ece
v
http://articles.economictimes.indiatimes.com/2010-11-12/news/27629303_1_personal-care-hair-care-
grooming-market