1. 3/13/2014
Vijayalakshmi | Balamurali | Karan |
Florisha | Prahaladh | Nidheesh
BIOHEMISPHERE ALOE VERA GEL & SUNSCREEN
Exploratory Research
Mphatic Minds
2. 2Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Table of Contents
EXPLORATORY RESEARCH - SECONDARY DATAANALYSIS
1. Introduction to Aloe Vera…………………………………………………………………….5
Aloe Vera Gel ………………………………….6
Aloe Vera Sunscreen 7
Different Categories of Healthcare Applications 12
Conclusion 12
EXPLORATORY RESEARCH –QUALITATIVEMETHODS 13
INDEPTH INTERVIEW 14
Introduction 14
Research Methodology 14
Table of Contents
Type chapter title (level 1)............................................................................................................ 1
Type chapter title (level 2)......................................................................................................... 2
Type chapter title (level 3)..................................................................................................... 3
Type chapter title (level 1)............................................................................................................ 4
Type chapter title (level 2)......................................................................................................... 5
Type chapter title (level 3)..................................................................................................... 6
3. 3Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Introduction
Aloe Vera
According to WorldHealth Organization (WHO),around 80% of the world populationdependupon
traditional medicine. Theyhave beenusedas a diagnostic and for healingthrought history to
presentand have proven to be effective withoutresultingin painful side effects.Ayurvedais one
such systemthat has its roots deeplyingrown intothe Indian culture,Ayurvediccosmeceutical
date back to the Indus ValleyCivilization.Ayurvedaconsistsof numerousplant and animal based
ingredientswhichcomprise the medications,alongwith identifyingthe type of body of the patient
according to the five primary elementsofthe universe.Aloe Vera,referredto as “Kumari” is a key
ingredientinAyurveda whichhas varieduses from treatingskin to liverailments.The strength of
the plant isrediscoveredby the cosmetic industrywhich has begun to extensivelyuse itand
promote products commercially.
How it helps
Aloe can substitute syntheticingredientusedincosmeticindustry very competitivelyandis
findingincreasinguse in the evergrowing consumerproduct segment. Aloe contains a mixture of
glucosidescollectivelycalled'aloin',whichisthe active constituentof the drug. Aloinand its gel
are usedas skin tonicas they have a coolingeffectand as a moisturizingagent. This helpsin
preparation of aloinbased creams, lotions,shampoosand alliedproducts.
CultivatingAloe Vera
Farmers in India regularlyface problemlike lack of rain, low ground water level,soil degradation
etc. Cultivationof aloe Vera wouldbe beneficial asit requiresminimumusage of water and the
returns from it wouldbe more than 50,000 yearly per acre. Most of the distributerswe contacted
and as per data available online,Aloe Vera products have a high market demand.Many processing
units have already establishedinthe country & according to estimation,more than 300 industries
are processingAloe Vera leaf.However,there isstill a high percentage that is leftuntappedas the
raw material doesn’tseemto be enoughto meetthe demand. Therefore,there isan unlimited
market potential in India for the “Sanjeevani “ofmoderntimes – Aloe Vera.
4. 4Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Aloe Vera Gel
Aloe Vera Gel isthe most popular product that is derivedoutof the Aloe Vera plant. The
preparation of the gel isquite simple,asslicingthe leafwould resultin the gel oozingout, to be
consumeddirectlyor can go in for further processing.The remarkable gel servesvarious purposes
from beingappliedon the skinas a moisturizerand a coolant to beingconsumedinternallyfor
well-beingofthe digestive system,liverandkidney.
Competition
As discussedearlier,the cosmeticindustry has realizedthe great potential of aloe vera.
1. PremiumSegment: ForeverLiving, Amway, Body Shop
2. Affordable Segment: Patanjali,Fab India,Lotus fairnessgel,Prakriti, Banjaras, Aloe Vera,
Aroma Treasures
These brands have launchedproducts based on the Aloe Vera Gel positionedfordifferent
purposessuch as
Soothingskin, after beingexposedtosun
Moisturizing
ClearingAcne/ Dark Spots
Eveningthe skintone
Fairness and many more
5. 5Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Aloe Vera Sunscreen
Sunburns cause a lot of pain and irritation, while reducingthe elasticityof skin causingearly
ageing.Aloe Vera is a great natural skin coolant and is known to treat sunburns while moisturizing
skin.
While Aloe Verais not necessarilyan active ingredientforSun Screen,it has beenusedwidelyby
various brands for its natural coolingand healingproperties.
Competition
Affordable Segment:The key players inthe aloe vera sunscreenaffordable segment are Lotus,
Biotique,Jovees, Aroma Magic and so on.
PremiumSegment:ForeverLiving
Apart from readilyavailable competitionproducts as mentionedabove,many niche products are
also available online inthe premiumsegment;whereasthey might not be available on shop
shelves.Some highpriced competitorsfor sunscreenand gel are Rustic Art Organic Sunscreen,
Sante Bio Aloe,Logona Aloe Day Cream.
Apart from sunscreens and gel, Aloe Vera is used in other cosmetic products such as
soaps, moisturizers, oils and packs.
6. 6Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Competition Positioning Mapping for Aloe Vera Gel
Inference:
The popular playersin the market fall in the above mentionedfour categories:Soothing,
Moisturizing,ClearingAcne and Fairnesswhen it comesto theirproducts positioning.Some brands
like Patanjali and Prakriti Herbals speak about dual benefits.However,accordingto popular
marketing managementconcept,it is better ifwe stick to a single unique sellingproposition(USP)
as it would be easier for customersto register.
Forever Living
Aloe Veda
Brihan
Fab India
Moisturizing
SoothingFairness
Clears acne
Patanjali
Aroma treasures
Khadi
Lotus
Vana Vidhi
Banjaras
Prakriti Herbals
8. 8Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
In-Depth Interview
DELPHI INTERVIEW:
Dr. D Ragavendran MD Ayurveda
Research Associate
Kotakkal Arya Vaidhya Chikitsalayam & Research Institute
Arya Vaidya Chikitsalayam,an Ayurveda Hospital at Coimbatore was establishedin
1950 is recognizedbythe Department of AYUSH,Ministry of Healthand Family
Welfare,Govt.ofIndia and the WorldHealth Organization. It offers servicesin
the fieldsofEducation, Research,Pharmacy and Clinical Practice in Ayurvedaand
takes care of the nationwide distributionofAyurveda medicinesthroughC&F
agents and over 1000 agencies.
Dr. Ragavendran is a doctor of medicine inAyurveda,working as a physicianconsultant and
research associate at Arya VaidhyaPharmacy (AVP).
We requestedDr. Ragavendran to give us an insight on the benefitsofAloe Vera as a cosmetic.
Dr. Ragavendran started our conversationby explainingthat Ayurveda,“the science of life” isa
historical medical approach to helphuman beingslive a healthylife.He introducedus to the three
kinds ofbody systems or ‘Doshas’ that human beingsare generalizedtohave,based on the five
elements:air,water, ether,earth and fire:
1. Pitha – composespredominantlyofheat
2. Vatha – composesof air and ether
3. Kaptha – composesof earth
He explainedthatAloe Veraor “Kumari” is a key ingredientin
Ayurveda that has variedpurposesfrom cooling the system,
purifyingblood,anti-inflammation,diuretictotreating many
“Pitha” relatedissues.
He mentionedthat Aloe is good for skinas a whole as it helps
reduce dark spots, pimples,sunburnand lightenstan. People
are also realizingthe benefitsand resortingto herbal practices
for long term health. He doesnot suggest any specific
products because as perAyurveda, medicationcannot be
preparedusing a single ingredientgenerictoa large audience.
9. 9Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Exploring Consumer’s Mindsets
1. Intercepts
We intercepted40 people randomly – Men and Womenon the busy Race Course road in
Coimbatore to understandwhat they felt/thoughtabout of Aloe Vera gel and products. To sum
theirresponses:
Inference:
Most of the respondentshave heardof Aloe Verabuthave notusedit.Quite afew of themsaid that
theyownthe actual plantand consume it.Some womenandtwomenmentionedthat theyhave
usedAloe Verainotherforms,suchas in moisturiserandaloe juice.
Intercepts
i use Himalaya. it's
comfortable, but there are
no visible change
I use Baba Ramdev's for
wellbeing
Usage of Aloe Veraas Gel or Sunscreen
Heard of it, but not used
Used the gel
Never heard of it
Used other AV products
Use directly from plant
10. 10Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Exploring Retail Outlets: Mystery Shopping and beyond
Our teamwentas mysteryshoppersto popularstores,supermarketsandpharmaciestosee the
stockingandawarenessof Aloe Veragel andsunscreen.Belowgivenare the store-specific
implicationsaswell asthe collective insight.
1. Kannan Departmental Store
KDS isa popularsupermarketchainpresentinCoimbatore,Erode,Tiruppuretc.Itcaters
predominantlytothe middle classSECandstocks all the commongroceryitems to health
and beautyproducts.Theytryto sell productsslightlylowerthanthe MRP.
Observation:
We observedthatKDSstore ishighlyinvolvedinsellingherbal products.
Apart fromthe usual brandssuch as
Biotique,AromaMagic, Banjaras,
Jovees,KDShave theirownAloe Vera
Gel brand invariousflavourswhich
theyhave placedina) The Medical
Departmentb) The Cosmetics
departmentc) General StoresSection
SalesRepresentatives’Push:
The salesrepstake pride intheirAloe
productsand suggesttocustomersin
theirbenefits.
Theyexplainedthatit’sfastmoving.
2. Nilgiris
Nilgirisisapopular,establishedgroceryretail outletinSouthIndiathathasbeenaround
since 1905. Nilgirisisvisitedbythe upper-middle classfamiliesandisknownforquality.
Observation:
Nilgirisstocksall the cosmeticproductsonone aisle.Itholdsthe popularbrandssuchas
Biotique,Lotus,Himalaya,Jovees,Banjarasproducts.
SalesRepresentatives’Push:
Biotique andHimalayahave companysalesrepswhopushtheirrespective products.
The store’sattendants,whenspokentosuggestedbrandslike LotusandJovees,and
consideredthemasfast-moving.
3. Pazhamudhir Stores
PazhamudhirStoresisapopularstore in Coimbatore thatsellsgroceriesandcommon
consumerproducts.
Observation:
Pazhamudhirisrathercongestedandstocksall the cosmeticsona single narrow
aisle.Butthe productsare segregatedneatly.
11. 11Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
SalesRepresentatives’Push:
Brand Himalayahasit’sown salesrepresentative whoconstantlybugscustomersto
try out the products
The store’ssalesrepsdidnothave much ideaabout“Aloe Vera”butwhenasked
aboutsunscreen,theysuggestedLotusandHimalayasunscreens.
OnlyBanjarasAloe Veragel wasavailable
Projective Technique
Word association
Plant
Vivel
Soap
Best!!!
Date : 10/3/14
Location : Brookefields
Nature
Green
Moisturizer
Face wash
Ootyy
12. 12Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Word association test was conducted for 25 people - both Male and Female, aged 20-50.
People were asked to say the first word that comes to their mind when they think of
aloevera. The words said by those people are shown in the picture above. The words
which were often repeated by people were Green, Face wash, Moisturizer. Five of those
people were not aware of aloevera.
Insights
People associate aloevera with nature which is evident from many of the words which they
associated, such as green, plant, nature, Ooty. Valuable insights such as these, throw light
upon customers emphasizing the need for usage of Aloe Vera products as skin care
applications. They are unaware of Aloe Vera product applications other than on skin.
13. 13Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Unique businessmodel:Servingdomesticmarket (Ownbrand) Foreignmarkets (Sub contracting in
clients’brand names)
Distributor – 1 Distributor – 2 Distributor – 3
Markets serviced SouthEast Asian
Nations
Canada & Sri Lanka Domestic& Foreign
Profit margin ~ 10% – 20 % ~ 35% ~ 10%-20%
Raw material
source
Agriculturists –
Tamilnadu
Agriculturists –Directsourcing Contract farming
entities
Challengesin
business
Shortage of Raw
materials
Sittingonstockpile of 10 tons
of Pure Organicgel
Productionfacility’s
capacityshortage
Location of
business
Coimbatore,
Tamilnadu
Kovilpatti,Tamilnadu Chennai,Tamilnadu
Product range Aloe Veragel Creams/Gel/Soap/Shampoo/Oil Skincare kits
Notes Businessnotvibrant Lookingforwardto venture
intoretail sector
Subcontracting,
cateringto clients’
specifications
Unique business
model
Concentrates
exclusivelyongel
products
Supplyingexclusivelytoselect
geographies
Manufacturing&
Distribution(Parallel
activities)
Fast moving
product
Aloe VeraGel Pure organicgel Facial Kit(Own
brand name)
Pricing Market oriented Pure organicgel – Rs.160/Kg Rs.626/- (Facial kit)
Focus GroupDiscussion
Gender:Male/Female
Age:13-25years
Numberof FGDs: 5
INTRODUCTION
Mphatic Minds heldtotallyfive FocusGroupDiscussions.Three of whichwere forgirls,aged18-25,
one for school girls,aged13-16 and one forboys,aged18-21, whoare studyinginAmritaUniversity.
FGD was conductedtounderstandvariousaspectsof the buyingandusage behaviorof herbal and
14. 14Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Aloe-Veraproducts.Thiswasdone toknow the potential of Aloe VerabasedproductsinAmrita
University.
Detailsof the participantsof focusgroupdiscussionsare asfollows:
Focus Group No of
respondents
Age Native Place
1 5(girls) 18- 20 Vizag, Hyderabad, Bangalore,
Chennai, Guntur
2 9(girls) 21- 24 Salem, Palakkad, Kottayam,
Kozhikode, Thrissur, Trichy
3 4(girls) 18 Andhra Pradesh
4 11(girls) 13-16 Tamil Nadu
5 8(boys) 18-21 Chennai, Hyderabad, Trichy, Kollam
LIST OF ASPECTS OF THE FGD:
1. Need for daily skincare
2. Need for men’s skincare
3. Price sensitivity to products
4. Preference for herbal products
5. Other concerns of skin care products
6. Awareness of ‘Aloe Vera’s benefits and experience
7. Concerns with the use of Aloe-Vera
8. Opinion development about the product
9. Frequency of change of skincare products
10. Influence of packaging on the buying behavior
INSIGHTS INTO THE ASPECTS
FocusGroup 1
Moderatedby:Prahaladh,Balamurali
Date : 7/3/14
Location : Amrita University
FocusGroup 2
Moderatedby:Prahaladh,Balamurali
Date : 7/3/14
Location : AmritaUniversity
FocusGroup 3
Moderatedby:Karan, Flourisha
Date : 8/3/14
Location : AmritaUniversity
FocusGroup 4
Moderatedby:Karan, Flourisha
Date : 8/3/14
Location : AmritaUniversity
FocusGroup 5
Moderatedby:Karan, Flourisha
Date : 8/3/14
Location :AmritaUniversity
Location : AmritaUniversity
15. 15Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
1. Need for daily skincare
Need for ‘daily’ skincare takes birth from the existence of undesirable and unsuitable
conditions, mainly polluted air and bath-water. The need for the same was considered
limited in ideal conditions.
Also many considered it to boost their overall morale.
2. Need for men’s skincare
Opinionsaboutthe needforskincare bythe maleswere foundtobe similar:theyneedcare,
for they have a skin! The need to moisturize was considered mandatory for all skin types
irrespectiveof skincondition.However,some menthoughttheydon’t need as much care as
womenneed.Theythinkjustwashingthe face twice a day would be sufficient. Only one of
the menin the focusgroup isusing sunscreen lotion however many are using moisturizers.
3. Price sensitivity to products
Price elasticityforskincare productsisfrommoderate-high. To some people, price was not
a deciding factor once a product was found to be suitable to the skin type and condition,
apart fromsafetyand reliability.A price of Rs 500 was quotedbysome duringthe discussion
and agreed by almost all for ‘face wash and moisturizer’ which was enough for a month if
used daily. Some were not ready to spend more than 250 for a month.
4. Preference for herbal products
Herbal products were considered safe and reliable, hence preferred over chemical based
products. Almost all expressed very strong opinions about it. Most of the school girls who
were inthe discussionwere alreadyusingalot of herbal products which were suggested by
their parents. 6 out of 8 men agreed that herbal products are good for their skin, whereas
the rest told that they are not seeing any visible changes. They also thought that herbal
products don’t have many variants and there are no specific products for different skin
types.
5. Other concerns of skin care products
The smell and feasibility of usage was given extreme importance. When given samples of
twodifferentaloeveragels,nine out of eleven school girls preferred the same product, for
its smell. They also said that they would pay more for the product that had better smell.
6. Awareness of ‘Aloe Vera’s benefits and experience
Awarenessof the benefitsof ‘AloeVera’tothe skin and otherwise (for external application
to hair,and for intake) wasfoundtobe moderate-high in terms of depth and very common
in terms of number of people.
Experience of the benefits on skin with the use of Aloe Vera based products:
suppleness, reduction in blemishes, tightening of loose skin, shine, smoothness.
A fewtoldthat disliked direct application of ‘Aloe Vera’ due to the sticky nature of
the gel apart from cumbersome process from finding the plant to application of its gel,
however many have tried using it and found it good.
7. Concerns with the use of Aloe-Vera
16. 16Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
Seniors(Age:22-25) were foundto be cautiousof the use of ‘Aloe Vera’ based products due
to ‘statedreversal’of ‘Aloe Vera’sbenefitsbytheirelders.Some were found to be reluctant
to use Aloe-Vera products due to its need to be used daily.
8. Opinion development about a product
Preference for‘AloeVera’mainlyemanatedthroughelders(mainly female members of the
family) apart from friends’ personal experience. Many of the respondents’ mothers have
asked them to use aloevera directly from the plant.
9. Frequency of change of skincare products
Opinionswere somewhatdiverseaboutthe habitof changingthe product frequently. Some
were always keen to try something new, while others enjoyed sticking to a product and
developing a bond with the product.
10. Influence of packaging on the buying behavior
To girls, packaging was least likely to drive a purchase. Ingredients of the product and
friend’srecommendationdrove the buyingbehavior.Mostof themseemedto pick products
whichwere eitherknowntothemor recommended to them by their friends. The decision-
making was backed by the availability of the herbal ingredients in the product which held
value according to their knowledge.
Most were least likely to get enticed with the glamorous advertisements, whereas some
men attributed poor advertising to lesser usage of herbal products by them. They are
influenced by advertisements and packaging.
It was generally observed that men were influenced by products that had good packaging
and which were advertised well.
SUMMARY: ‘Aloe Vera’ has been used in conjunction with other herbs, and sometimes used
directly.Itsuse andbenefitshave beenexperiencedbyelders (mainly mothers) in many families of
the girls who formed a significant part of the FGDs that were conducted. But due to the increased
pace of life of people the direct use of ‘Aloe Vera’ by girls has become extremely limited. This has
seemingly opened the doors for the Aloe-Vera based products.
17. 17Exploring the MarketPlace:Aloe Vera Gel & Sunscreen
References
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3151377/
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