Consumer behaviour analysis of Wild Stone deodorants.
This was done as a part of my Summer Internship Program for McNROE Consumer Products Pvt. Ltd.
The survey was done in Kolkata.
2. Wild Stone
• Leading male grooming brand with presence
across multiple categories such as deodorant,
talc, perfume, soap and shaving products.
• Is among the top three deodorant brands in
the country.
• Believes in continuously offering new choices
to their consumers, by constantly evaluating
potential categories in the male grooming
space.
3. Indian FMCG Market
• Fourth largest sector in the Indian Economy.
• Expected to increase at a growth rate of 14.7%
to touch US$ 110.4 billion (INR 7019.50
billion) during 2012 – 2020.
• Rural FMCG market anticipated to increase at
a rate of 17.7% to reach US$ 100 billion (INR
6358.24 billion) during 2012 – 2025.
5. Food Products
43%
Personal Care
22%
Fabric Care
12%
Hair Care
8%
Households
4%
OTC Products
4%
Baby Care
2%
Others
5%
Market break-up of Indian FMCG
industry
Source : India Brand Equity Foundation
(www.ibef.org)
6. 0
1000
2000
3000
4000
5000
6000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
INDIA GDP PER CAPITA PPP ($)
INDIA GDP PER CAPITA PPP ($)
(Source: www.tradingeconomics.com | World Bank)
7. Demand-Side Drivers
• Consistent GDP Growth.
• Increasing Consumer Income.
• High Private Consumption
– India has a very high rate of private consumption of
61%.
– Of that, a further 60% is due to retail spends - goods
and products that people consume, as opposed to
services or essential consumption items like rent and
education.
• Rising Urbanization
– India has 70% of its population living in rural areas.
8. Deodorant Industry Overview
• Has come up very fast in the FMCG category.
• Market size (2007): Rs. 283 Cr.
• Market size (2014): More than Rs. 2100 Cr.
• Fastest growing product in the FMCG category.
• FMCG growth rate: 9%
• Deodorant industry growth rate: 16%
• India is the fastest growing deodorant market
in the world.
9. 0
500
1000
1500
2000
2500
2007 2008 2009 2010 2011 2012 2014
Deodorant Market Size in India
Deodorant Market Size in India (Rs. Crore)
(Source: Euromonitor International)
10. Market Share
• According to an Economic Times report –
based on the March 2014 quarter Nielsen
data:
– Fogg leads the market with 17% market share.
– Followed by Park Avenue with 8%.
– Axe has slipped to third place with only 6% market
share and its market share is now almost identical
to Wild Stone.
11. The Market Leader: Fogg
• Owned and marketed by Vini Cosmetics.
• Found out that deodorants can be
differentiated by having less gas and more
perfume.
• Guaranteed their customers to have 800
sprays from a bottle of Fogg Royal priced at
around Rs.200/- in 2014.
• The working functionality of Fogg was to have
more number of sprays in a bottle.
12. The Market Leader: Fogg
• The functionality was also adopted well in the
promotion of the product with the tagline ‘No
Gas, Only Deo’.
• This kind of positioning was also different
from the competition, including Axe, which
emphasized only on the seduction aspect to
sell their deodorants.
• Used a Rational Appeal instead of an
Emotional Appeal.
18. Demographic Distribution: Break-up
of age.
Age Group
15-20 21
21-25 160
26-30 107
31-35 37
36 & above 11
Total 336
15-20
6%
21-25
48%
26-30
32%
31-35
11%
36 &
above
3%
Age Group
19. Demographic Distribution: Break-up
of Occupation
Occupation
Student 147
Service 168
Self-employed 21
Total 336
Student
44%
Service
50%
Self-
employe
d
6%
Occupation
21. Hypothesis Testing
• To test for the equality of two proportions, we can
perform a z-test.
• Null Hypothesis (H0): p1 = p2 (deodorants are as
popular to women as to men)
• Alternate Hypothesis (H1): p1 is not equal to p2
• Result: z = -2.583
• Table Value @ 95% level of confidence: 1.96
• Therefore, |Calculated Value| > |Table Value|
• Hence, we reject the null hypothesis, proving that the
deodorant market in India is dominated by the men’s
deodorant category.
22. Brand Preference
Brand Preference
Wild Stone 52
Park Avenue 33
Fogg 21
Engage 5
Axe 34
Layer 13
Wild
Stone
33%
Park
Avenue
21%
Fogg
13%Engage
3%
Axe
22%
Layer
8%
Brand Preference
Key Findings: Even though Fogg is the market leader, Wild Stone has a really good
presence in this part of the country.
Wild Stone’s Red and Park Avenue’s Good Morning are the two most popular
deodorant fragrances in this region.
24. Hypothesis Testing
• Z-type test.
• Null Hypothesis (H0): P=1/2 (the number of
switchers = the number of non-switchers)
• Alternate Hypothesis (H1): P is not equal to ½
• Result: z = 5.55
• Table Value @ 95% level of confidence: 1.96
• Therefore |Calculated Value| > |Table Value|
• Hence, we reject the null hypothesis that the
number of switchers and the number of non-
switchers are the same.
25. Key Findings
• This acts both as an advantage and a
disadvantage for Wild Stone or any other
deodorant brands.
• It suggests that it might be easy for a brand to
acquire customers from the competitors but
at the same time it is very hard to retain
customers as well.
26. Wild Stone
Have you used Wild Stone?
Yes 173
No 155
This table shows that 53% of the sample size or
173 out of 336 people have used Wild Stone
out of which only 52 are still using it.
• Good demand in the sub-urban regions due to a good
relationship between the firm and the retailers and
aggressive sales mechanisms.
• The problem lies within the urban areas - tough to convert
non Wild Stone users into Wild Stone users, even though
almost everyone has heard of and knows the brand Wild
Stone.
Do you know about
Wild Stone?
Yes 334
Blank 2
27. New Deodorant
Interest in buying a new
deodorant in the market
Yes 227
No 97
Maybe 11
Yes
68%
No
29%
Maybe
3%
Openness to Experience
28. Price
Reasonable price range
100 - 149 4
150 - 199 88
200-249 188
250 & above 52
100 -
149
1%
150 - 199
26%
200-249
57%
250 &
above
16%
How much is a customer is willing to
spend on a deodorant
29. Influencing Factors
What influences you to make
purchase decisions?
Advertisements 28
Price 71
Recommendations 41
Fragrance 195
Advertise
ments
9%
Price
21%
Recomme
ndations
12%
Fragrance
58%
Influencing Factors
30. Medium of Promotion
Medium of Brand
Awareness
TVC 314
Others 22
93% of the respondents said
that they’ve come to know of
Wild Stone through TV
commercials.
• In the present-day scenario, due to technological
advancements, people spend more time on the internet than
watching TV.
• Almost non-existent online presence.
• Last Facebook post: December 31st 2014.
• No presence in other social networking sites such as
Instagram and Twitter.
32. Deodorants v/s Perfumed Deodorants
• Fogg leapfrogged their competition and became
the market leader with the help of product
innovation in the form of perfumed deodorants.
• Majority of the population still prefers using
deodorants.
• Pareto Analysis: you can say that 80% of the
market demands deodorants while 20% demands
perfumed deodorants; where 80% of this 20%
demand is catered by Fogg alone. (Used just as an example and
these are not actual values)
34. • How to bridge the gap: intensive growth; integrative growth;
and diversification growth.
• Wild Stone is looking into and integrative growth plan and
aspires to have under them a full portfolio of men’s personal
care products in order to increase their brand equity and sales
volume.
35. • All deodorant brands are concentrating their focus on
Perfumed Deodorants.
• In my opinion, what Wild Stone can do is to focus on
Deodorants and not Perfumed Deodorants.
• The effort should lie in shifting from the “Market
penetration” quadrant to the other quadrants.
36. New Market
• To maximize market share, you’ll have to
maximize revenue by acquiring either new
customers or by hijacking your competitor’s
customers.
• Changing their target segment would not be
feasible as they’ve already created a deep brand
image within the mind of the customers.
• Rural FMCG market. (growth)
• Smaller SKUs priced at around Rs. 99/-.
37. Focus
• This is where their focus on Deodorants
instead of Perfumed deodorants will pay-off.
• The price-sensitive nature of the rural markets
would make it hard, if not impossible, at this
time for Perfumed Deodorants to be sellable.
• If the industry is going one way, this might be
a good time for Wild Stone to go the other
way.
38. Going Public
• ROI in the West Zone < East Zone.
• To increase their market share, they need to
make an impact all over the country, not just
in the Eastern region.
• Going public would be a good option.
• They could use that capital in order to expand
their operations in the future.
Hinweis der Redaktion
With rising urbanization, more people will have exposure to modern products and brands and thus shift to branded and packaged goods and products.
By 2015, an additional 75 Million consumers will have moved into cities, not only buying FMCG products for themselves but also serving as a conduit for information and goods to their families still in rural India.
Emotional approach vs
Key Findings: Even though Fogg is the market leader, Wild Stone has a really good presence in this part of the country.
What we noticed is that both Park Avenue and Wild Stone has a really loyal set of customers and Wild Stone’s Red and Park Avenue’s Good Morning are the two most popular deodorant fragrances in this region.
Wild Stone’s product managers must work hard to maintain or upgrade their existing products with respect to the changing needs of the consumers and the market in general and must innovate and expand their fragrance varieties carefully when introducing new products.
openness to experience is high
Key Findings: The above figure shows that the majority of the consumers are willing to spend as much as INR 200 to INR 249 to purchase a deodorant.
As I’ve mentioned before, a steady increase in the GDP of India along with an increase in the per capita income, has transformed to an increase in the disposable income. As we know that when income rises, the marginal propensity to consume increases. This when clubbed with the changes in lifestyle, has contributed to the growth of the deodorant industry in the country.
Key Findings: As the pie diagram suggests, recommendations, advertisements and price may play an important role in influencing a customer’s purchase decision, but the most important influencing factor in the present day scenario is fragrance or product. Fogg has leveraged this exact aspect of the market and has turned itself into the market leader by promoting their product’s specifications instead of taking an emotional appeal approach.
If the focus in on new markets, one problem that Wild Stone will face is if they try to change their target segment. That option for now is not feasible because they’ve already created a deep brand image within the minds of the customers.
The vast majority of India’s population is the rural population, and as I’ve mentioned before, the rural FMCG market is also growing at a phenomenal rate.
Wild Stone should come up with deodorants in smaller SKUs (stock keeping units) which should be priced somewhere around INR 99. Apart from increasing sales, if they could do it before any of the other brands, they’d have a competitive advantage over them.
