Hamam Main Vivek

Sri Ramakrishna Engineering College (Autonomous Institution Affiliated to Anna University of  Technology Coimbatore) Vattamalaipalayam, NGGO Colony Post Coimbatore - 641022 Department of Management Studies Marketing Management 10DC201

Term Paper On SOAP INDUSTRY-AN ANALYSIS

Submitted by R.VIVEK  1091060

Date of Submission: 29.11.2010

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Marketing Strategy Of Hamam -An Analysis

INTRODUCTION Hamam is one of the oldest soap brands in India. The brand came into existence in 1934 and over this 73 years has successfully built a space for  itself in the consumer's mind.The brand has successfully fought the competition and the changed environment. Hamam is a brand of soap made in India and marketed by Hindustan Unilever, the Indian unit of Unilever. The name comes from the Arabic/Persian/Hindi word Hammam which refers to a public bathing establishment in the middle-eastern countries. It was launched in 1934 and is a leading product in its category. The hamam is a pure and gentle soap for a family family to use. This is an ordinary soap, which has not much features or qualities, but it is very soft and gentle soap, which serves best. This soap is an ideal soap even to use it for kids, as it does not contain strong chemicals and strong colors. This soap is the choice of all our family family members. We normally don’t change the brand of the soap, which we have been using since a long time and for us the Hamam soap is the best choice. The cost of this soap also fits in our monthly budget and gives the best results

The brand was owned by Tata Oil Mills ( TOMCO) and later became the HLL brand when HLL acquired TOMCO. Hamam is a natural soap .Although many reports put this brand as a herbal soap, Hamam is more of a natural soap than herbal. The brand have a market share of about 9-10 percent of the Rs 4000 crore Indian soap market.The  brand has a huge market share ( more than 25%) in the Tamilnadu market. It was launched as a ‘mild, family soap’, Hamam soon drew a large natural  following long before it was trendy or fashionable. Perhaps the only Indianmade natural soap at the time, Hamam was embraced by mothers and doctors alike, for its purity and safety on skin. Only Hamam brings alive ancient time-tested skincare rituals that have been  perfected over generations in convenient and contemporary formats. The three variants of Hamam - Sampoorna Snaan, Hamam Scrub Bath and Abhyanga Snaan embody traditional skin care practices. Hamam can best leverage this due to its heritage and natural ingredient legitimacy to claim purification of the body and spirit. When HLL implemented the Power Brand strategy, Hamam survived the axe  because of the strong equity it had among the consumers. Hence the axe fell

on Rexona which was also a natural soap with the same positioning as Hamam. HAMAM SOAP has been in India for a long time. Its infact very popular in south esp. Tamil Nadu. Hamam is a herbal skin care soap enriched with Tulsi, Neem & other natural ingredients.

ABOUT THE BRAND: •

•

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Assurance of being a soap which is “safe on skin” Manufactured Manufactured in modern soap plants Contains polyols-Good moisturizers

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Made from a blend of vegetable oils

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Palm oil and coconut oil mixed in the right proportion

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Gives lather which is stable and can effectively remove oil, dirt from the surface of the skin.

TOTALLY SAFE : •

Toxicologically Toxicologically cleared by, the Safety and Environment Assurance Center, (SEAC) Unilever 

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Meets all requirements mandated by IFRA (International Fragrance Association)

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Satisfies all the requirements of Toilet Soap Grade II as per  Bureau of Industrial Standards of India (IS 2888: 2004)

MICRO AND MACRO ANANLSIS: MICRO ANANLYSIS: COMPETITORS 

Margo

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Johnson & Johnson

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Dettol

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Medimix

CUSTOMERS 

Most of the Customers are Casual Buyers.

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Women’s were more influenced customers.

INTERMEDIARIES: 

Whole salers

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Retailers

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Distributors

MACRO ANALYSIS: Political environment: The uncertainities in the political environment has the direct impact over the  production and and distribution distribution of hamam soaps.

Social and cultural factors: The company has to be very careful in the implementation of its promotional campaigns,since the social cultural environment of India is very conservative and any suggestive advertisements usually face a lot of negative reactions on the part of the consumer.

SWOT ANALYSIS: STRENGHTS: ✔

Strong Market Research (door to door sampling is done once a year in

Urban and Rural areas) ✔

Strong sales and distribution network backed by HLL.

✔

Strong brand image

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Effective advertising, Free publicity

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Continuously evolving the campaign

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Strong emotional touch

WEAKNESS: ✔

Involved marketing risk 

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Copy by the competitors

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Undermining the aspiration aspiration of consumers

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Sustainability of campaign in long run

OPPORTUNITIES: ✔

Soap industry growing by 10% in India.

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Maintain better standards of quality

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Unified advertising throughout the globe

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Continuous innovation.

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More promotions like price-offs and samples

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Retentive strategy required as the soap segment is in the mature stage of its  product life cycle

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Line extension – probably with more variants catering to the beauty segment like natural, herbal soap etc

THREATS: ✔

 New entrants/local competitors/MNCs would increase the competition(Camay, P&G)

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High internal competition – medimix and dettol also catering the health care segment

✔

Excessive dependence on beauty segment makes Hamam vulnerable to changing customer tastes.

MARKET SHARE: HLL is proud of Hamam’s strong presence in Tamil Nadu having a share of 25% in T.N.market.

Only 400 crore Herbal soap brand in the personal care segment

✔

26% market share in the South Indian state of Tamil Nadu

HAMAM’S MARKETING STRATEGY  MARKET SEGMENTATION SEGMENTATION GEOGRAPHIC SEGMENTATION : 

World region: Asia

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Country: India

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Cities: All cities of India

DEMOGRAPHIC SEGMENTATION: 

Age: 5-50+

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Gender: Female and Girl Children

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Family size: 2, 3-4, 5+

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Income: Rs.5,000+

Age: They have different soaps positioned for different age groups for e.g. they have Hamam Sampoorna Snaan for women. They have Hamam nallangu maavu for the teenagers, Hamam Abhyanga Snaan for adults.

Gender: They had earlier focused their brand only on women and children. Later they repositioned their brand by including products for men and the family as a whole. They have lifebuoy skin clear.

Income: The income factor plays a major role in buying decision of the consumer.  Now they know that in rural areas people will not prefer shower gels and hand washes because their purchasing power permits them to satisfy only their basic need of having a bath. So soap prices are the least among their  range of products which are really affordable. Whereas a person from urban or semi urban area will have the purchasing power to buy shower gels and hand washes.

BEHAVIOURAL SEGMENTATION :

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Benefits: Herbal and Natural soap.

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User status : Regular user 

PSYCHOGRAPHIC PSYCHOGRAPHIC SEGMENTATION : It means segmenting a market into different groups based on social class, lifestyle, or personality characteristics. Hamam is being segmented on the basis of Social Class Class (middle-lower, upper lowers, middle class and upper class). It caters to different classes with different sizes of it. As people belonging to lower-lower class do not make a more profitable segment so they are not  being considered much. 

Social class: Middle & Lower class.

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Lifestyle: Outdoor-Oriented.

TARGETING: Targeted towards the young women who are much concerned about their beauty.Its main focus is on the housewives of the middle class families.

POSITIONING: Hamam was positioned initially as a complete natural family soap.The brand was built on the Trust factor. The earlier ads typically showed Mother and child with mother explaining the meaning of Trust using the example of 

Hamam.The brand may have acquired this quality from its original creators TATA.

REPOSITIONING STRATEGY: Although the brand was able to manage the PLC, it had its share of problems. At one point, HLL was facing the competition from Herbal/ayurvedic soaps. HLL tried to position Hamam as a herbal soap by changing the composition  by adding Neem ingredient and reducing reducin g the TFM(Total Fatty Matter). But that reduction of TFM disqualified Hamam as a soap and the brand lost many of their loyal customers. 2005 saw HLL repositioning the brand by adding more ingredients. The  brand now talks about having a Perfect Balance of Neem, Tulsi and Alovera Extracts. The packaging also has been made more contemporary and the shape of the soap has been made oval.2006-07 saw a change in the communication of the brand. The brand no longer talks about trust but now  positioning itself as a beauty enhancing soap.The brand has now come out with a variant that contains green gram, turmeric and sandal .The color of the soap also has changed to sandal from the traditional green color. This move is a marked deviation from the age old positioning of the brand as a natural green soap. Hamam for years has been able to sustain its market position because of the strong brand loyal customers .The brand now wants to be relevant to a new consumers ( younger generation). The brand also faces stiff competition from a plethora of brands offering the same ingredients and benefits. The latest repositioning exercise is aimed to keep the brand relevant and also leverage the brand equity it had built up over these years.

MARKETING MIX:

PRODUCT PRICE PLACE PROMOTION

PRODUCT: Form: Solid

Handmade: Yes

Transparent: No

Medicated: No

Ingredient: Herbal

Main Ingredient: Other 

Feature: Basic Cleaning

Place of Origin: Turkey

Brand Name: Olive Secret

Pure and gentle soap for family use. This is ordinary soap which has not much features or qualities,but it is very soft and gentle soap which serves  best.It is an ideal soap even to use it for kids,as it does not contain strong chemicals and strong colours.It is the choice of all family members. The product

length will include the various fragrances that

From our range

Hamam Sampoorna Snaan

Hamam Scrub Bath

Hamam Abhyanga Snaan

ELEMENTS ✔

Product involved some elements which are Variety, Quality, shape &Brand Name.

Variety: ✔

Hamam soap available in all 4 variants which are given as under.

✔

Hamam Sampoorna Snaan, Hamam Scrub Bath,Hamam Abhyanga Snaan,Hamam naalangu maavu.

Quality: ✔

Hamam’s quality is very popular among the people.

✔

Since the soap has undergone numerous product quality improvements to offer best hygiene results.

Shape: ✔

Hamam soap's has a classic green colour shape

Brand Name: ✔

Hamam soap is a strong brand of UNILEVER.

✔

Due to this name people consider Hamam soap as a valuable brand while buying it.

PRODUCT LEVELS: 

Core Core produc productt:

Core benef nefit that hat a cust ustome omer 

expects from a Hamam product is to keep them clean. 

Expected product: Customer buying Hamam  product expects that the products they use must be skin friendly and not in any form harm them and the environment.

MARKETING MIX: PRODUCT

PRICE PLACE PROMOTION

PRICE: The hamam soap is priced at Rs.17.50(100g).it is a affordable price for  middle class families.

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Hamam

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Rs.20 for 125gm

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Rs.17.50 for 

Sampoorna Snaan •

Hamam Scrub Bath

•

Hamam

100gm •

Rs. 15 for 100gm

Abhyanga Snaan

PRICING STRATEGIES PRICE MIX: Market penetration: Hamam extensively uses market  penetration for its sales of products. All the products that Hamam sells are affordable by one and all.Hamam products are mainly targeted towards middle class and hence the prices are quite high when compared to other  soaps.

MARKETING MIX: PRODUCT

PRICE

PLACE PROMOTION

Place: Hamam soap mainly concentrates over tamilnadu. Highly region specific  brand.The brand reaches the consumer either through direct selling or  through distributors.

PLACE MIX VARIOUS CHANNEL LEVEL 1.

Zero level: As a

brand brand of HUL, Hamam also follows follows zero

level level channel channel,wh ,where ere it conduc conducts ts door-to door-to-do -door or sellin selling, g, where where it gives gives free samples of a new product launched.

2.

One One leve level: l:

Hama Hamam m foll follow owss one one leve levell of chan channe nell very very

effectively. Here the manufacturer supplies the goods to the wholesaler  who may also act as a retailer and sells to the ultimate customer. 3.

Two level: Hamam follows this channel where it follows a traditional channel. Where the manufacturer supplies the goods to the whol wholes esal aler er,, who who supp suppli lies es it to the the reta retail iler er and and ulti ultima mate tely ly to the the consumer.

4.

Hamam’s, major aim is to cover the untapped Three level: Hamam’s, rural market for which it needs to have more number of intermediari intermediaries es to take take the good goodss from rom the the plac placee of prod produc ucttion ion to the the plac lace of  consumption. It uses these channel level when the manufacturer passes on the goods to the sole distributor, who gives it to the wholesaler who gives it to the small retail shops in the rural areas where the customers customers can have easy access to the goods.

TYPE OF INTERMEDARIES INTERMEDARIES Inte Intens nsiv ivee dist distri ribut bution ion:: HUL HUL the the comp company any exten extensi sive vely ly uses uses inten intensi sive ve distribution . Hamam the product is made available at all possible outlets, may it be the rural ,semi-urban r the urban areas. The manufacturers make sure that the product is available as and when demanded hence making it available where ever possible.

CHANEL OF DISTRIBUTION: DISTRIBUTION:

A distribution channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) dependent)intermediaries such as wholesalers, wholesalers, distributors, distributors, agents, agents, retailers. retailers. Each intermediary got the items at one pricing one pricing point and moves it to the next higher pricing point until it reaches the final buyer  final buyer also also called channel of distribution or marketing or marketing channel. channel.

MARKETING MIX: PRODUCT PRICE PLACE

PROMOTION Promotion: ✔

The brand is mainly promoted through advertisements in television and in print media.

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It also does promotion through TV and print campaigns.

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Provides many offers to their customers.

PROMOTION MIX Hamam uses all the promotion tools available for selling it’s product.

Advertising : Hamam uses advertising advertising extensive for the sale of it’s product product , they use advertising in all the stages of the product life cycle . they they modi modify fy the the adve advert rtis isem emen entt as the the prod produc uctt reac reache hess the the concerned stage.

Modes of advertising

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Television:

Hama Hamam m uses uses vari various ous adve advert rtis isem emen entt on

tele televi vission ion which hich leav eave a visu visual al impac mpactt on the the minds inds of the the custo custome mers rs.. Thes Thesee adds adds valu valuee aroun around d keepi keeping ng onese oneself lf clea clean n and healthy just by using a soap. 

Banners/Posters : Several banners and posters are put out across the city.

PERSONAL MARKETING 

RETAIL RET AIL STORE STORE SELLI SELLING NG:

Hamam amam soaps oaps are are

availa available ble at all the possib possible le retail retail outlet around around the nation. nation. Here Here the retailer is the direct seller who is personnally selling the product to the customer.

SALES PROMOTION Hamam Hamam uses uses sales sales promot promotion ion in several several ways to targets targets it’s desired desired audiences Hamam being a consumers. And hence consumer promotion tool is extensively used. 

Coupons: Coupons in newspaper are a common see where Life Lifebu buoy oy produc products ts go. Recen Recentl tly y the the coup coupons ons print printed ed was was

on a

  purc purcha hase se of a Life Lifebu buoy oy handw handwas ash h 250ml 250ml u get get a Life Lifebuo buoy y soap soap absolutely free.

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Price packs : Most of the Hamam soaps are sold with   pric pricee packs packs.. It’s It’s gener general ally ly alwa always ys buy 2 get get 1 freeo freeoff ffer er that that is available.

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Offers: Hamam Grihapravesham offer was given to the customers.

PRODUCT LIFE CYCLE: Introduction Stage: 

This is a brand that was launched in 1934.

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Hamam was positioned initially as a complete natural family soap.The brand was built on the Trust factor. The earlier ads typically showed Mother and child with mother explaining the meaning of Trust using the example of Hamam.

Growth Stage : 

The growth stage is a period of rapid revenue growth.

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Sales increase as more customers become aware of the product and its benefits and additional market segments are targeted.

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When competitors enter the market, often during the later part of the growth stage, there may be price competition and/or increased  promotional costs in order to convince consumers that the firm's  product is better than that of the competition.

Maturity: 

Over Period Of 100 Years , Rached Its Maturity Level.

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Market Share Becomins Almost Stagnent.

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Some Customers Became Loyal While Some Went For New Products.

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Same Brand Image Limited Consumer Base.

Decline Stage: 

The soap market in India was fairly sluggish in 2001, declining by 9-10 per cent. Lifebuoy's decline exceeded that of the overall market.

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The decline was partly on account of the sluggish growth in the rural market, which accounts for 50 per cent of soap demand.

Press releases:

Golden offer from Hamam:

Tuesday, June 05, 2001 CHENNAI: On the occasion of its 70th birthday, Hamam has launched a consumer promotion called the Golden Offer, in which it is offering 24-carat gold plated Estelle ear-rings worth Rs 55, free in exchange of 6 wrappers of  the 100 gm packs. Unique offer:

Saturday, Jun 12, 2004 HAMAM, THE soap brand from HLL, has come out with a unique offer —  collect the words "griha" and "pravesam" from two Hamam wrappers and call 98407 79880. Every fortnight, one can win a house worth Rs. 5 lakhs, and everyday, consumer goods worth Rs. 5,001 are given away. The offer is valid till July 31.

Traditional beauty care business hots up Nina Varghese

Many cos launch products based on traditional system

AN ADVERTISEMENT hoarding for the new Hamam soap on Mount Road in Chennai. — Bijoy Ghosh Chennai , Sept. 4 In the beauty and skincare business, it is back to the roots these days. Contemporary delivery systems are taking traditional beauty and hair care  products like turmeric (manjal ) scrub, shikkakai powder and hibiscus to national audience. Hindustan Lever recently launched a variant of Hamam soap, with greengram flour, turmeric, sandal and milk on the `ubtan' (a traditional ritual) platform, while CavinKare's Meera Hair Oil comes with five herbs in an inner   perforated tube. Hamam Grihapravesham offer:

Coimbatore: Hamam soap from Hindusthan Unilever has announced the Hamam Grihapravesham offer 2010. Wherein Hamam consumers in Tamil  Nadu and Puducherry could win 12 houses worth Rs. 10 lakh each by

sending six wrappers of Hamam along with completed slogan “I Love Hamam because ……….”. The offer is open till April 14. During this 12 weeks, winner will be announced on a weekly basis. Hamam also offers the participants an opportunity to win 250 gold vouchers worth Rs. 5,000 each, 750 mobile  phones worth Rs. 3,000 and Rs. 10,000 vouchers of Rs. 200 each from Hindusthan Unilever products. Rajesh Sethuraman, Senior Marketing Manager, Toilet Soaps of HUL, said that the offer is hosted in association with Anu Hasan. Interested participants could post their entries to Hamam Grihapravesham offer 2010, C/O Alpha Data Centre, Post Box No 3904 Girgaum, HPO Mumbai 400 004. Details about the offer could be checked online at www.hamamgp.com or call 1800-102-4850. First week winners would be announced on January 25. REFERENCES: http://www.projectfever.com/index.php? main_page=product_info&cPath=2&products_id=79 http://www.alibaba.com/showroom/unilever-soap.html http://pachatterjee.com/big/hamam1.html http://www.mouthshut.com/review/Hamam-Soap-qpnnltqqt http://www.scribd.com/opensearch? language=1&limit=10&num_pages=&page=5&query=hamam+soap http://www.scribd.com/doc/37276598/Mktg-Assign-on-Hamam-Sales-Study http://www.scribd.com/doc/39164031/Marketing-Environment-Soaps http://www.scribd.com/doc/18004677/Marketing-Mix-Product-1