MARKET ANALYSIS

OF
EVERYUTH DERMA CARE
RANGE

1
A Project Report Submitted in Partial Fulfillment of award of MBA
Degree

Market Analysis
Of
Everyuth Derma Care Range

At
Zydus Cadila

Submitted to
Mr. Aniruddh Pandharkar
Product Manager, CPD

Submitted by
Lakshmi Nair
Varuna Singh

AES Post Graduate Institute of Business Management

Ahmedabad

2
 CONTENTS

Page
Acknowledgement 5
Preface 6
List of Figures 7
List of Tables 8
Chapter 1: Introduction 9
About the Company-Zydus Cadila 10
Cadila Healthcare Limited 13
Skin Care Market 17
Skin Care Facts 18
Skin Care Product Range 20
Major Competitors 23
Chapter 2 : Strategic Marketing Techniques 24
Study of 4 P’s of the Marketing Mix 25
4 P’s of the Derma Care Range 28
Product 28
Price 29
Place 30
Promotion 31
SWOT Analysis 33
Factors included in a SWOT Analysis 34
Confrontation Matrix 35
Simple Rules for Successful SWOT Analysis 36
SWOT Analysis for the Derma Care Range 37
Chapter 3 : Retailer Analysis of the Derma Care Range 39
Research Objective 40
Research Methodology 40

3
 Data Analysis and Interpretation 41
Limitations 51
Chapter 4 : Conclusions And Recommendations 52
Glossary 55
Annexure 57
Webliography 58

4
 ACKNOWLEDGEMENT

Many people have guided and influenced us in preparing this project. First of all, we are
grateful to Dr. A. H. Kalro, Director, AESPGIBM for giving us an opportunity to
experience the corporate way of working and in the process help us learn.

Our special thanks to our project guide Mr. Aniruddh Pandharkar, Product Manager,
CPD and Mr. Abhiroop Chatterjea, Sr. Marketing Executive for their wholehearted
support and invaluable guidance, without which this project would not have been
possible.

We also thank Mr. Rajendra Sharma and Ms. Jinal Parikh and all our faculty members
who guided us throughout the project.

Lastly we thank our family members, friends and classmates who supported us.

Lakshmi Nair
Varuna Singh

5
PREFACE

It is indeed a happy moment for us to present this project report. Proper care was taken
while organizing the report so that it would be easy to understand and comprehend.
During the preparation of this project report, all Marketing Research concepts were
studied and implemented.

It has been a rich experience to work in a technically advanced environment of Zydus

Cadila. This project is a part of First Year study, the final step towards the completion of
first year of MBA course. The project duration of 8 weeks commenced from 15th May,
2006 and concluded on 15th July, 2006. During this tenure we initially studied various
aspects of Market Research and then actively participated in the process of Marketing
Analysis.

The project report is divided into four sections. These sections are sequenced in a way to
give a comprehensive idea of work done. Sections encompass of Introduction, Strategic
Marketing techniques, and Retailers’ Analysis. The first section gives a complete
overview of the Skin Care Market. The second section gives an overview of the Strategic
Marketing Techniques. The third and fourth section gives an overview of the Retailers’
Analysis which helps in drawing the conclusions of the study conducted and recommends
few marketing strategies.

6
5LIST OF FIGURES

Figures Particulars Pg.No.

Fig 1 Derma Care Sun Protection Range
Fig 2 Derma Care Complexion Enhancement Range
Fig 3 Derma Care Skin Repair Range
Fig 4 The Marketing Mix
Fig 5 Dermacare complete Range add
Fig 6 Dermacare sun block range add
Fig 7 Satellite area analysis
Fig 8 Vastrapur area analysis
Fig9 Jivraj area analysis
Fig 10 Paldi Mahalaxmi area analysis
Fig 11 Navrangpura area analysis
Fig 12 Naranpura area analysis
Fig 13 Sardar Patel area analysis
Fig 14 Raipur area analysis
Fig 15 Gulbai Tekra area analysis
Fig 16 Overall Ahmedabad market Scenario

7
LIST OF TABLES

Table 1 Revenue Segmentation for the year Jan 05-06

Table 2 Everyuth Product Range
Table 3 Prices of the various products of the Derma
Care Range
Table 4 The Distribution Channel of Derma Care
Table 5 SWOT Analysis of Derma Care Range

8
 CHAPTER 1

INTRODUCTION

9
 ABOUT THE COMPANY- ZYDUS CADILA

The dawn of 50's ushered in an era of awakening. Having broken free from the bondage
of dormant history, a need arose for the country to be self-sufficient in all spheres

Healthcare at this time was the sole domain of a few pharmaceutical giants. Coupled to
this was the enormous task fighting the myth and malady by cutting across the barriers of
communication so as to reach out to people and to ensure the most effective cure in the
shortest possible time. Under such circumstances, with tenacity of purpose and unfailing
zeal to achieve perfection in quality, Cadila was founded in 1952 by Mr. Ramanbhai B.
Patel, an entrepreneur, determined to contribute his share by setting up a pharmaceutical
company.

By the early 1990s, Cadila was ranked the third largest pharmaceutical company in
India.(ORG -December 1991, 1992, 1993). The decade also marked the beginning of a
new economic framework and a shift in government policies. To thrive in this evolving
environment, it became imperative for Cadila to restructure and streamline its business
operations. Thus in 1995, Cadila Laboratories emerged as Cadila Healthcare under the
aegis of the Zydus group.

Moving beyond pharmaceuticals, the concept of total healthcare now forms the
commercial heart of the group's operations and activities.

Spearheading the combined activities of the group, as a whole new identity 'Zydus'. A
phonetically powerful word, the name combines the ethos of the Greco-Roman God Zeus
and the dawn of a new era. Zydus like Zeus also symbolizes the group's aspirations to
contribute to the welfare of the people and to society at large.

10
Zydus today has a leadership position in key segments like cardio vascular, gastro
intestinal and women’s healthcare and is amongst top three in the respiratory, pain
management and anti-infective segments. It also is a leading producer of niche and
complex bulk drugs. Some of the well-known brands of Zydus Cadila include Aten - the
largest hypertensive brand in the country, Ocid, Amlodac, Atorva, Pantodac, GRD,
Penegra, Nucoxia, Ciprobid, Dexona, Primolut-N, Dulcolax, Enew, Sugar Free, Diane
35and Mifigest among others.

In recent years, Zydus has made an aggressive entry in the regulated global generic
market with operations in France and US, apart from the 25 other emerging markets
worldwide. Zydus is aiming to be one of the top 10 global generics companies by 2010
and a global research driven company by 2020.

Some of the alliances that have been successfully forged by Zydus include alliance with
Mallinckrodt, a leading US generic company, Zamban Group of Italy. JV with Altana
Pharma of Germany and Mayne Pharma of Australia, as well as the acquisition of
companies like German Remedies in 2001, (which was the largest M&A in Indian
pharmaceutical sector); acquisition of Al Pharma in France among others.

Organizational architecture of Zydus Group

Zydus Cadila -- the flagship division focusing on anti-infectives and pain management.
Zydus Alidac -- a specialty division, which focuses on the gastrointestinal segment.
Zydus Medica -- a specialty division, which focuses on the cardiovascular
segment.
Zydus Biogen -- a specialty division, which focuses on the biologicals.
Zydus Neurosciences -- a specialty division, therapy areas include anti-depressants, anti-
convulsants, anti-psychotics and tranquilizers.

11
Zydus Vaccicare -- a division that exclusively markets vaccines like Vac Typh and HB
Vac.
Consumer Products Division -- a division that has a significant presence in OTC and
Skin care, with its basket of brands like Sugar Free (Low calorie sugar substitute), Sugar
Free D’lite (low calorie soft drink), Dietrim (Fat Soaker) and EverYuth range of skin
specialities.
Zydus Pathline -- a division that manufactures and markets diagnostic reagents and
instruments for the pathological laboratories, blood banks and hospitals.
Micro marketing Division -- a division that focuses on generic drug marketing.
Phytosurge Division -- a division that markets herbal remedies for cold and cough, liver
disorders, respiratory tract disorders, GI tract disorders and other general disabilities.
Bulk Drugs -- a key strategic business unit of Zydus Cadila that manufactures a range of
modern bulk actives in the therapeutic areas of anti-ulcerants, psycholeptic drugs, anti-
depressants, quinolones, anti-diabetics, anti-histaminics etc.
Dial for health India Limited -- a 100% subsidiary that provides forward integration in
the areas of distribution and e-commerce by setting up e-pharmacies.
Recon Healthcare Limited -- a 100% subsidiary whose main focus areas include
cardiovascular and pain management.

The life force at Zydus Cadila is the dedication of its employees. Zydus Cadila
understands and respects their individual needs and provides them with a range of
facilities to help them grow as professionals in various facets of life. Recognizing the fact
that a happy workforce is a productive workforce, Zydus Cadila ensures the well being of
all its members.

A fact underlined in its core belief 'We build People to build our Business.'

12
CADILA HEALTHCARE LTD.

Cadila Healthcare Limited’s parent organisation Zydus Group is one of the fastest
growing integrated healthcare companies with a turnover of Rs.13 billion. Zydus Group
is the 5th largest player in the Indian domestic formulations market and also has a global
presence. Cadila Healthcare came into being under the aegis of the Zydus Group in 1995.

The Consumer Division of Cadila Healthcare Limited is one of the fastest growing
departments of the company. It has pioneered the growth of some of the most fruitful
ventures.

Consumer Products Division

• Sugar Free
• Sugar Free - D’lite
• EverYuth Orange Peel Off Skin Vitalizer
• EverYuth Walnut & Apricot Facial Scrub
• EverYuth Clearskin Complexion Mask
• EverYuth Sunblock Lotion
• EverYuth Exfoliating Face Wash
• Complexion Crème

The Consumer Division of Cadila Healthcare Limited also has a strong presence in the
low calorie dietetic segment with brands like Sugar Free - a low calorie sugar substitute,
Sugar Free D’lite - a low calorie soft drink mix and Dietrim - a fat soaker.

In the dietetic segment, Sugar Free - a healthy low cal sugar substitute, is available in
pellet and powder form. It is a leader in the low calorie sweetener market with more than

13
70% market share. Sugar Free D’lite, when introduced was the first low calorie soft drink
in the Indian market. Offering 85% lesser calories than all other soft drinks, Sugar Free
D’lite is available in 5 flavors namely Orange, Lemon, Passion Fruit and Mango.
Dietrim was launched in the weight management segment. It is a unique first of its kind
‘fat soaker' in the Indian market. Made from a rare Japanese plant called Konjac, Dietrim
- a 100% natural dietary fiber, works by way of forming a viscous gel after consumption.
It absorbs all the excess sugar and fats consumed and also helps to cut down on your fat
and calorie intake. This product is available in select markets.

EverYuth is a leading skincare brand of the Consumer Division of Cadila Healthcare

Limited – the flagship company of Zydus Group.

EverYuth occupies a unique distinction of being a 'skincare brand from a healthcare

company'. Enriched with the power of natural ingredients, EverYuth has a strong
presence in advanced skincare segments like soap-free Face Washes, Face Masks, Scrubs
etc. EverYuth has more than 50% market share in the Face Mask & Scrub market and
12% market share in the Face Wash segment, where it is the fastest growing Face Wash
brand. Its brand Orange Skin Vitaliser was the first peel-off mask to be launched in India
and since then it continues to hold a leadership position in this segment. Specially
designed to fulfill every woman’s skincare needs, the EverYuth range also includes
products like Skin Essential Moisturising Lotion & Crème, Sun Block Lotions, Face
Cleanser etc. The percentage contribution of the various product ranges towards the total
revenue of the family and towards the total cosmetic sales from January 2005 to January
2006 is as under:

14
Product Variant/sku SKU contrib. to family Family contrib. to total
cosmetic sales
For month Till month For month Till month
contrib. contrib. contrib. contrib.
OSV 9g 18% 19% 24% 26%
30g 14% 13%
50g 56% 57%
90g 12% 10%
Product Variant/sku
WFS 7g 16% 15% 22.7% 23.1%
50g 62% 64%
100g 19% 17%
200g 4% 4%
Product Variant/sku
CFP 9g 16% 13% 8% 13%
50g 73% 79%
90g 11% 8%
Product Variant/sku
FW 50ml 82% 78% 24% 23%
100ml 18% 22%
Product Variant/sku
MST 60g 0% 0% 22% 14%
120ml 87% 79%
crème 13% 21%
Product Variant/sku
SSL 60ml #DIV/0! 44% 0% 1%
120ml #DIV/0! 56%
Table 1

15
Dermatologically tested and conforming to international standards, the new EverYuth
Derma Care range has been specially created to suit Indian skin & weather conditions.
Enriched with internationally proven active & natural ingredients and formulated to
effectively restore & improve the natural health of the skin, the new EverYuth Derma
Care range will empower you to effectively tackle the skin problems of darkening,
pigmentation, acne & aging, which are triggered by the sun.

Understanding your special skincare needs, EverYuth Derma Care range of specialty
products are classified into three categories - Protection, Enhancement & Repair.

16
SKIN CARE MARKET

India is one of the fastest growing markets for skin care products, and the target of most
cosmetic majors is women between 18-35, with a monthly income of Rs 10,000 and
above.

Indian cosmetic industry is heading for a complete makeover, rediscovering the long-
forgotten herbal formulas and beauty secrets. Those in the business say the going has
never been better for the Indian beauty industry. Estimated at Rs 1800 crore, the industry
is growing at 25 per cent annually, while the growth rate of herbal cosmetics sector,
estimated at Rs 400 crore is much higher - at 40 per cent. The natural and ayurvedic
sector has seen a phenomenal growth in the last 2-3 years. The Indian cosmetic
companies are just trying to rediscover, what was lying forgotten and untapped for a very
long period.

More and more companies are entering this lucrative market with a wide range of
products. This market surely works on the doctrine “Consumer is the King”. The
leading players in this industry are Hindustan Lever Ltd., Ponds India Ltd., Lakme,
Emami Ltd, Cavincare Ltd, Godrej Consumer Products Ltd., Lotus Herbals India Ltd.,
Procter and Gamble Hygiene and Healthcare Ltd., Cadila Healthcare Ltd. The latest
entrant in the skincare market is Amway India Ltd.

17
SKIN CARE FACTS

The skin is amazingly versatile and complex. It is the largest organ of the body and also
serves countless essential functions and performs a large variety of roles. This resilient
covering makes you waterproof and leak proof, and helps to protect your internal organs
from the environment.

Interesting Facts

The skin of an average-sized adult covers an area of more than 7 square feet and weighs
about 5 kg.
The skin is thickest on the soles of the feet, and thinnest around the eyelids, lips and
genitals.

Why do you need Sun Protection?

You need sun protection 365 days a year…

Sun contains harmful UVA (aging rays) & UVB (burning rays) that can darken your skin
in just 15 minutes… Surfaces such as water, sand and concrete reflect & intensify sun
exposure, because of which you can get sunburned even when you cover your skin or
take shelter in the shade.

90% of skin aging happens due to damages caused by sun's harmful UVA (aging rays),
which penetrates more deeply into the dermis. UVA is considered to be the chief culprit
behind wrinkling, leathering and other aspects of photo aging. Up to 80% of the sun's
UVA & UVB rays can even penetrate dense clouds, which is why your skin needs
specialist sun protection, every time you step out.

18
Why do you need Complexion Enhancement?

Sun damage goes beyond skin darkening...

Exposure to sun's ultraviolet light, which contains UVA & UVB rays, accounts for 90%
of the symptoms of premature skin aging. Many skin changes, which were commonly
believed to be due to aging, are actually a result of prolonged exposure to UV radiation.
Unprotected sun exposure and harsh Indian climatic conditions not just darken your skin
but also damage it by causing dark spots, pigmentation, blemishes and discolouration.
Fairness creams only superficially lighten your complexion, without treating your skin
from within. Which is why, you need enhanced skin lighteners to keep your skin clear &
flawless.

Why do we need skin repair?

Most common skin problems can be traced to the Sun

Extreme hot & humid weather conditions of India, along with the sun's harmful UVA &
UVB rays have been observed to be the primary cause of two main common problems
that women face inevitably - Wrinkles & Acne.

The sun is the single most important factor responsible for causing premature aging and
increasing the risk of skin cancer. 80% of wrinkles & fine lines on your skin are a result
of exposure to ultraviolet rays of the sun.

Excessive heat and humidity cause your sebaceous glands to produce more sebum,
leading to clogged pores & acne. Acne can become worse in extreme climate because
sweating increases oil production. Which is why, while repairing acne you need to take
extra-special care.

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SKIN CARE PRODUCT RANGE

Derma Care Sun Protection Range

This range is the only advanced sun block range that offers up to 97% sun protection for
more than six hours. A blend of internationally proven sun block agents and natural
active ingredients that soothes the skin, Everyuth Dermacare sun blocks are formulated to
be absolutely non greasy and completely sweat resistant. This range consists of:

Daily Sun Block Crème- SPF 30 (for dry skin)

Daily Sun Block Lotion- SPF 30 (for all skin types)
Sensitive Skin Sun Block Lotion- SPF 15 (for sensitive skin and children)
Daily Matte Sun Block Crème- SPF 30 (for all skin types)

Fig 1

20
Derma Care Complexion Enhancement Range

Everyuth Derma Care’s Enhancement Range consists of two unique breakthrough

formulations that will give your complexion a matte fair radiance, while also providing
sun protection. Enriched with internationally proven active ingredients, these specialty
products also help in treating skin problems of pigmentation and blemishes, from within.
When used in conjunction they will give you a flawless glowing complexion. It consists
of:

Daywear Matte Fairness Lotion- SPF 25 (for all skin types)

Light And Clear Skin Lightening Crème (for pigmented and blemished skin)

Fig 2

21
Derma Care Skin Repair Range

Everyuth Derma Care Repair Range consists of two unique advanced formulations that
help to undo the damages and restore the natural health of skin. Enriched with
internationally acclaimed active ingredients, these products empower to regain beauty
and self confidence. This range consists of:

Age Defence Anti-Aging Crème (for matured and wrinkled skin)

Acne Contol Gel (for acne prone skin)

Fig 3

22
MAJOR COMPETITORS

Dermacare, the newly introduced range is mainly targeted at the higher middle class and
the creamy layer of the society. Hence it falls in the higher price range. Therefore its
major competitors are Garnier skin care range, Lotus herbals India, and the Lakme Sun
Expert.

The Garnier Skin Care Range consists of:

▪ Garnier Skin Naturals Sun Control (SPF 20)
▪ Garnier Light (Antimarks & Fairness Cream)
▪ Garnier Fainess+Dark Spot Prevention Cream
▪ Garnier Wrinkle Lift
▪ Garnier Eye Contour Gel
▪ Garnier Pure (Anti bacterial cream)

The Lotus Herbals Skin Care Range consists of:

▪ Lotus Sun Protection Gel (for sensitive skin)
▪ Lotus Sun Protection Cream (SPF 10, 20, 25, 30, 40, 60)
▪ Lotus Fairness Cream
▪ Lotus Acne Control Cream

The Lakme Sun Expert Range consists of:

▪ Lakme Sun Expert Sunscreen Lotion (SPF 15 - for all skin types)
▪ Lakme Sun Expert Sunblock (SPF 25 – for sensitive skin)
▪ Lakme Sun Expert Sunscreen Souffle (SPF 20 – for oily skin)
▪ Lakme Skin Brightening Gel

23
 CHAPTER 2

STRATEGIC MARKETING TECHNIQUES

24
 STUDY OF 4 P’S OF THE MARKETING MIX

The major marketing management decisions can be classified in one of the following four
categories:
▪ Product
▪ Price
▪ Place (distribution)
▪ Promotion
These variables are known as the marketing mix or the 4 P's of marketing. The term
"marketing mix" became popularized after Neil H. Borden published his 1964 article, The
Concept of the Marketing Mix. The ingredients in Borden's marketing mix included
product planning, pricing, branding, distribution channels, personal selling, advertising,
promotions, packaging, display, servicing, physical handling, and fact finding and
analysis.

These four P's are the parameters that the marketing manager can control, subject to the
internal and external constraints of the marketing environment. The goal is to make
decisions that center the four P's on the customers in the target market in order to create
perceived value and generate a positive response.

Fig 4

25
Product Decisions

The term "product" refers to tangible, physical products as well as services. Here are
some examples of the product decisions to be made:

▪ Brand name
▪ Functionality
▪ Styling
▪ Quality
▪ Safety
▪ Packaging
▪ Repairs and Support
▪ Warranty
▪ Accessories and services

Price Decisions

Some examples of pricing decisions to be made include:

▪ Pricing strategy (skim, penetration, etc.)

▪ Suggested retail price
▪ Volume discounts and wholesale pricing
▪ Cash and early payment discounts
▪ Seasonal pricing
▪ Bundling
▪ Price flexibility
▪ Price discrimination

26
Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution
decisions include:

▪ Distribution channels
▪ Market coverage (inclusive, selective, or exclusive distribution)
▪ Specific channel members
▪ Inventory management
▪ Warehousing
▪ Distribution centers
▪ Order processing
▪ Transportation
▪ Reverse logistic

Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of
marketing communication, that is, the communication of information about the product
with the goal of generating a positive customer response. Marketing communication
decisions include:

▪ Promotional strategy (push, pull, etc.)

▪ Advertising
▪ Personal selling & sales force
▪ Sales promotions
▪ Public relations & publicity
▪ Marketing communications budget

27
4 P’S OF THE DERMACARE RANGE

Product

The term ‘product’ for the Derma Care Range and the Clear Skin Complexion Mask
includes:

Product SKU

Daily Sunblock Crème SPF 30 50 g, 100 g

Daily Sunblock Lotion SPF 30 50 ml, 100 ml

Sensitive Skin Sunblock Lotion SPF 15 100 ml

Daily Matte Sunblock Crème SPF 30 50 g, 100 g

Daywear Matte Fairness Lotion SPF 25 100 g

Light & Clear Skin Lightening Crème 50 g

Age Defence Anti-Aging Crème 50 g

Acne Control Gel 50 g

Table 2

28
Price

The prices of the various products of the Dermacare Range are follows:

Product SKU MRP (Rs.)

Daily Sunblock Crème 50 g 90
(SPF 30)
Daily Sunblock Crème 100g 175
(SPF 30)
Daily Sunblock Lotion 50 ml 85
(SPF 30)
Daily Sunblock Lotion 100 ml 150
(SPF 30)
Sensitive Skin Sunblock 100ml 125
Lotion (SPF 15)
Daily Matte Sunblock 100 g 195
Crème (SPF 30)
Daily Matte Sunblock 50 g 110
Crème (SPF 30)
Daywear Matte Fairness 100 g 150
Lotion (SPF 25)
Light & Clear Crème 50 g 90
Age Defense Anti-Aging 50 g 150
Crème
Acne Control Gel 50 g 75
Table 3

29
Place

This decision most importantly constitutes of the distribution channels. The various
distribution channels used by the marketing department is as follows:

FMCG Channel

Company

Pharmaceutical
channels Chemists

C & F Agents

Wholesale Redistribution
Stockists

Retailer Shops Retailers

Customers Customers

30
Promotion

The marketing department for the Everyuth Dermacare Range mainly uses the ‘Pull’
strategy for its product.

Leading actress and model Perizaad Zorabian is the brand ambassador for their range.
They have aired two advertisements, one comprising the entire range and one showing
the Dermacare Sun Protection Range, on all the major television channels and print
media. They have a well developed and well connected personal selling and sales force.

Under the public relations and publicity campaign, they have an Everyuth Club which
organizes competitions and other recreational activities for its members.

Under its various promotional schemes for the Dermacare Range, they came up with a
new programme on MTV (Music Television), MTV Evergreen Hits sponsored by
Everyuth Dermacare and hosted by Perizaad Zorabian.

31
 Dermacare Skin Dermacare Sun
Protection Range Protection Range

Fig 5 Fig 6

32
SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its environment. It is the first
stage of planning and helps marketers to focus on key issues. It is applicable to either the
corporate level or the business unit level and frequently appears in marketing plans.
SWOT stands for strengths, weaknesses, opportunities, and threats.

SWOT Analysis is a powerful framework for analyzing your company's Strengths and
Weaknesses, and the Opportunities and Threats you face. This helps you to focus on your
strengths, minimize threats, and take the greatest possible advantage of opportunities
available to you.

Strengths and weaknesses are internal factors that create value or destroy value. They can
include assets, skills at its disposal, compared to its competitors. They can be measured
using internal assessments or external benchmarks.

Opportunities and threats are external factors that create value or destroy value. A
company cannot control them. It includes demographic, economic, political, technical,
social, legal factors. Any organization must try to create a fit with its external
environment.

33
Factors included in a SWOT Analysis:
Major factors included in a SWOT Analysis are presented in the following matrix:

Strengths Weaknesses
▪ Specialist marketing expertise ▪ Lack of marketing expertise
▪ Exclusive access to natural resources ▪ Undifferentiated products
▪ Patents ▪ Location of your company
▪ New, innovative product or service ▪ Competitors have superior access
▪ Location of your business ▪ Poor quality of goods or services
▪ Cost advantage through proprietary ▪ Damaged reputation
know-how
▪ Quality processes and procedures
▪ Strong brand or reputation

Opportunities Threats
• Developing market (China, the ▪ A new competitor in your own house
Internet) ▪ Price war
• Mergers, joint ventures or strategic ▪ Competitor has a new, innovative
alliances service
• Moving into new attractive market ▪ New regulations
segments ▪ Increased trade barriers
• A new international market ▪ A potential new taxation on your
Loosening of regulations product
• Removal of international trade
barriers
• A market that is led by a weak
competitor.

34
Confrontation Matrix

A tool to combine the internal factors with the external factors is the Confrontation
Matrix. On the basis of this matrix an organization decides which strategy should be
adopted.

Opportunities Threats

Strengths Offensive Adjust

Make most of these Restore strengths

Weaknesses Defensive Survive

Watch competition closely Turn around

35
Simple rules for successful SWOT analysis

▪ Be realistic about the strengths and weaknesses of your organization when conducting
SWOT analysis.
▪ SWOT analysis should distinguish between where your organization is today, and
where it could be in the future.
▪ SWOT should always be specific. Avoid grey areas.
▪ Always apply SWOT in relation to your competition i.e. better than or worse than
your competition.
▪ Keep your SWOT short and simple. Avoid complexity and over analysis.
▪ SWOT is subjective.

36
SWOT Analysis for the Dermacare Range

Strengths Weaknesses

▪ Brand name ▪ High price

▪ Quality ▪ Poor promotion schemes
▪ Strong distributorship ▪ Restrained advertising budget
▪ Established Products ▪ Low retailers margin
▪ Lack of push strategy

Opportunities Threats

▪ Growing market due to improving ▪ Existing leaders

economic conditions ▪ Competition from MNC’s
▪ Untapped potential in the skin
care market
▪ Technical innovations

Table 4

37
After combining the internal and external factors in the Confrontation Matrix, the
strategy best suited for the Derma Care Range is the Defensive Strategy, wherein a close
surveillance of the competition must be administered.

Improving economic conditions have led to larger and growing markets, due to which
there is a great scope for the skin care industry. Hence opportunities are immense but
there are also certain weaknesses in the marketing strategy hindering their development.
Hence under such circumstances the Defensive Strategy is the best suited.

38
 CHAPTER 3

RETAILER ANALYSIS OF THE DERMACARE

RANGE

39
 RETAILER ANALYSIS OF THE DERMACARE RANGE

1. Research Objective:
▪ To check the stocking pattern of Everyuth Dermacare Range at various retail outlets
in Ahmedabad
▪ To find out the sale or movement of the Everyuth Dermacare Range
▪ To evaluate the impact of advertisement on the movement of the product
▪ To study the competition

2. Research methodology:
a. Time Scope 2 months
b. Methods of Data Collection:
▪ Research Design Descriptive Design
▪ Sample Design
- Sample Type Convenience
- Sample Size 162
▪ Data Collection Sources
- Primary Source Retailers (Interview mode)
- Secondary Source Internet, library, newspapers and magazines.
c. Geographical Scope: Satellite
Vastrapur
Gulbai Tekra
Paldi, Mahalaxmi
Navrangpura
Naranpura
Sardar Patel
Raipur

40
3. Data Analysis and Interpretation

Satellite
100.00%
90.00%
80.00%
% availability 70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
DCER
DSPR

DSRR

G SCR

G ER

G SRR

LSCR

LER

LSRR

LSBR
pdct category

Fig 7

From the above graph it can be derived that in satellite the sun control range of Derma
Care is available in 62% of shops. Only 19% shops had the Derma Care Enhancement
Range and around 14% shops stocked Derma Care Skin Repair Range.
▪ In the sun control range, LAKME SUN BLOCK CRÈME AND LOTION is
available at almost 100% shops. Next to LAKME is GARNIER SUN CONTROL
i.e. 86%. LOTUS SUN CONTROL is available at 47% shops.
▪ In the Skin Enhancement Range, GARNIER LIGHT & GARNIER FAIRNESS
products are available at maximum number of shops i.e. 81% shops. After Garnier,
LOTUS enhancement product is available at 48% outlets. DERMA CARE SKIN
ENHANCEMENT RANGE is available at 19% shops
▪ In the Skin Repair Range, which consists of Age Defence and Acne Control
products, GARNIER again is the leading brand which is available at 81% outlets.
Lotus repair range is second most available product i.e. 24%. The brand which is
least stocked in this range is, DERMA CARE SKIN REPAIR RANGE. It is
available at only 14% of shops.

41
 Vastrapur

100.00%

80.00%

% availability 60.00%

40.00%

20.00%

0.00%

DCER
DSPR

DSRR

GSCR

GER

GSRR

LSCR

LER

LSRR

LSBR
pdct category

Fig 8

From the above graph it can be derived that in Vastrapur, the sun control range of
Derma Care is available in maximum 59% of shops. Only 53% shops had the Derma
Care Enhancement Range and around 29% shops stocked Derma Care Skin Repair
Range.
▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION and
GARNIER SUN CONTROL are available in similar number of shops i.e. around
94% shops. LOTUS SUN CONTROL is available at only 53% shops, which is the
least available product in Sun Block Range in Vastrapur.
▪ In the Skin Enhancement Range, GARNIER products are available at 100% of
shops. After Garnier, LOTUS enhancement product is available at 65% outlets.
DERMA CARE SKIN ENHANCEMENT RANGE is available at only 29%
shops, which again is the least in the Enhancement Range.
▪ In the Skin Repair Range, GARNIER is again the leading brand which is available
at 94% outlets. Lotus Repair Range is the second most available product i.e. 35%.
The brand which is least stocked in this range is, DERMA CARE SKIN REPAIR
RANGE. It is available in only 29% of shops.

42
 Jivraj
100.00%
90.00%
80.00%
70.00%

% availability
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

DCER
DSPR

DSRR

GSCR

GER

GSRR

LSCR

LER

LSRR

LSBR
pdct category

Fig 9

In Jivraj, the Sun Control Range of Derma Care is available at 50% of shops. Only
31% shops had the Derma Care Enhancement Range and around 12.5% shops stocked
Derma Care Skin Repair Range.
▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION &
GARNIER SUN CONTROL is available at almost 87.5% shops. Next to them is
DERMA CARE SUN CONTROL, which is available at 50% shops. LOTUS SUN
CONTROL RANGE is the least available product in Jivraj, which is only12.5%.
▪ In the Skin Enhancement Range, DERMA CARE SKIN ENHANCEMENT
RANGE is available at maximum 31% outlets. GARNIER ENHANCEMENT
RANGE is available at 25% of shops. LOTUS enhancement product is not
available at all.
▪ In the Skin Repair Range, GARNIER is the leading brand which is available at
19% outlets. DERMA CARE SKIN REPAIR RANGE is available at 13% of
shops. Lotus Skin Repair Range is completely out of stock in all the outlets at
Jivraj.

43
 Paldi Mahalaxmi

0.8

% availability
0.6

0.4

0.2

DCER
DSPR

DSRR

G SCR

G ER

G SRR

LSCR

LER

LSRR

LSBR
pdct category

Fig 10

The Sun Control Range of Derma Care is available at 62% of the shops. Only 25%
shops had the Derma Care Enhancement Range and around 37.5% shops stocked
Derma Care Skin Repair Range.
▪ In the Sun Control Range, GARNIER SUN CONTROL is available at 100% of
shops, following this is LAKME SUN BLOCK CRÈME AND LOTION which is
available at almost 87.5% shops. Next is DERMA CARE SUN CONTROL, which
is available at 62.5% shops. LOTUS SUN CONTROL RANGE is the least
available product in Paldi, which is only 25%.
▪ In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE is
available at maximum 50% outlets. DERMA CARE SKIN ENHANCEMENT
RANGE & LOTUS enhancement product is available at 25% of shops.
▪ In the Skin Repair Range, GARNIER is the leading brand which is available at
50% outlets. DERMA CARE SKIN REPAIR RANGE is available at 37.5% of
shops. Lotus Skin Repair Range is available at 25% of shops.

44
 Navrangpura

100.00%
90.00%
80.00%

% availability
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

DCER
DSPR

DSRR

GSCR

GER

GSRR

LSCR

LER

LSRR

LSBR
pdct category

Fig 11

The Sun Control Range of Derma Care is available at 78% of shops. Only 22% shops
had the Derma Care Enhancement Range and around 44% shops stocked Derma Care
Skin Repair Range.
▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION is
available at GARNIER SUN CONTROL is available at% of shops, following this
is & is available at almost 87.5% shops. Next to that is DERMA CARE SUN
CONTROL, which is available at 62.5% shops. LOTUS SUN CONTROL
RANGE is the least available product at Navrangpura, which is only 25%.
▪ In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE is
available at maximum 50% outlets. DERMA CARE SKIN ENHANCEMENT
RANGE & LOTUS enhancement product is available at 25% of shops.
▪ In the Skin Repair Range, GARNIER is the leading brand which is available at
50% outlets. DERMA CARE SKIN REPAIR RANGE is available at 37.5% of
shops. Lotus Skin Repair Range is available at 25% of shops.

45
 Naranpura

100.00%
90.00%
80.00%

% availability
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

DCER
DSPR

DSRR

GSCR

GER

GSRR

LSCR

LSRR
LER

LSBR
pdct category

Fig 12

The Sun Control Range of Derma Care is available at 25% of shops. No shops had the
Derma Care Enhancement Range. Only 9% shops stocked Derma Care Skin Repair
Range.
▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION is
available at 83% shops. GARNIER SUN CONTROL is available at 67% of shops,
following this is Derma Care and is available at almost 25% shops. LOTUS SUN
CONTROL RANGE is not available at any outlet.
▪ In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE is the
only brand available. This product is stocked at around 42% shops. Other brand
i.e. LOTUS and DERMA CARE is not stocked at all.
▪ In the Skin Repair Range, GARNIER is the leading brand which is available at
33% outlets. DERMA CARE SKIN REPAIR RANGE is available at only 8% of
shops. Lotus Skin Repair Range is not available at shops.

46
 Sardar Patel

100.00%
90.00%
80.00%

% availability
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

DCER
DSPR

DSRR

GSCR

GER

GSRR

LSCR

LER

LSRR

LSBR
pdct category

Fig 13

The Sun Control Range of Derma Care is available at 41% of shops. Derma Care
Enhancement Range is available at only 4% shops. No shop stocked Derma Care Skin
Repair Range.
▪ In the Sun Control Range, LAKME SUN BLOCK CRÈME AND LOTION is
available at 100% shops. GARNIER SUN CONTROL is available at 89% of
shops, following this is Derma Care & is available at almost 41% shops. LOTUS
SUN CONTROL RANGE is not available at only 4% outlets.
▪ In the Skin Enhancement Range, GARNIER ENHANCEMENT RANGE is
available at 15% outlets, which is highest. DERMA CARE is stocked at only 4%
outlets and other brand i.e. LOTUS is not stocked at all.
▪ In the Skin Repair Range, GARNIER is the leading brand which is available at
11% outlets. DERMA CARE SKIN REPAIR RANGE & LOTUS is not available.

47
 Raipur

0.8

% availability
0.6

0.4

0.2

DCER
DSPR

DSRR

GSCR

GER

GSRR

LSCR

LER

LSRR

LSBR
pdct category

Fig 14

The Sun Control Range of Derma Care is available at 60% of shops. Derma Care
Enhancement Range is available at only 10% shops. Derma Care Skin Repair Range
is available at 13% of shops.
▪ In the Sun Control Range, stocking of Derma Care is done at 60% shops which is
highest in Raipur. Next to Derma Care is LAKME SUN BLOCK CRÈME AND
LOTION, which is stocked at almost 50% of shops. GARNIER SUN CONTROL
is available at 30 % of shops. LOTUS SUN CONTROL RANGE is not available
at outlets.
▪ In the Skin Enhancement Range, DERMA CARE is available at 10% outlets,
which is highest. GARNIER ENHANCEMENT RANGE is stocked at only 3%
outlets and other brand i.e. LOTUS is not stocked at all.
▪ In the Skin Repair Range, DERMA CARE SKIN REPAIR RANGE is the leading
brand which is available at 13% outlets. GARNIER is stoked at merely 3% of
outlets & LOTUS is not available at all.

48
 gulbai Tekra

100.00%
90.00%
80.00%

% availability
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%

DCER
DSPR

DSRR

GSCR

GER

GSRR

LSCR

LER

LSRR

LSBR
pdct category

Fig 15

From the above graph it can be derived that in Gulbai Tekra the sun control range of
Derma Care is available in 73% of shops. Only 14% shops had the Derma Care
Enhancement range and around 14% shops stocked Dermacare skin repair range.
▪ In the sun control range, LAKME SUN BLOCK CRÈME AND LOTION is
available at almost 100% shops. GARNIER SUN CONTROL is also available at
100% shops. Lotus SUN CONTROL is available at only 14% shops, which is the
least available product in Gulbai Tekra.
▪ In the skin enhancement range, GARNIER LIGHT & GARNIER FAIRNESS
products are available at maximum number of shops i.e. 95% shops. After Garnier,
DERMACARE SKIN ENHANCEMENT RANGE enhancement product is
available at 14% outlets. LOTUS is not available at all.
▪ In the Skin Repair Range, which consists of Age Defence and Acne control
products, GARNIER again is the leading brand which is available at 95% outlets.
DERMACARE SKIN REPAIR RANGE is second most available product i.e.
14%. The brand Lotus is not available.

49
 Product Availaility

160
140
120
No. of shops
100
80
60
40
20
0
DDM

DDWM

GEC
GDS
DC

DSLC

GSC
DSS
DL

GAM

GWL

LG25
DAD
DAC

LF
GAB

LSB
L10
L20
L25
L30
L40
L60

LAC
pdct category

Fig 16

Looking at the overall market trend, Garnier is the leading brand in all the categories.

In the Sun Control Range, Lakme leads with 87% of market share in the premium
category range. Garnier ranks second with 78% of the market share. Next to Garnier is
the Derma Care Range with a market share of 56%. Lotus products are available at
around 16% of the shops.

In the Skin Enhancement category Garnier leads with 48% share. Derma Care ranks
second with a 17% share. Lotus lags behind with a mere share of 14%.

In the Skin Repair category also Garnier is the market leader with 46% of the market
share, followed by Derma Care with 15% share. The least available brand is the Lotus
Skin Repair Range.

50
LIMITATIONS

▪ Limited to a particular time period

The survey was conducted during the month of June and July, during which the sale
of sun control range is maximum. This might be a reason why the sun control range of
Derma care was available in majority of outlets. The market forces may have changed
with time because of which the results may be different.

▪ Limited to Ahmedabad
Due to time and geographical constraints the Research was limited to the major
markets in Ahmedabad only.

51
 CHAPTER 4

CONCLUSIONS & RECOMMENDATIONS

52
CONCLUSIONS

The following are the conclusions from our study:

▪ Ad awareness of the Derma Care Range is low with majority of the stocking taking
place due to the strong distribution network.

▪ The margin provided to retailers is a major factor in deciding the extent of retailer
promotion.

▪ Derma care, though a newly introduced product, has a substantial amount of stocking
in the Ahmedabad market.

▪ The brand name of Everyuth plays an important role for this phenomenon. Everyuth
Dermacare has a very good distribution channel because of which it is available in all
the markets, from higher end markets like Satellite and Vastrapur to a lower end
markets like Raipur and Jivraj.

▪ A major challenge for Derma Care is that it is a premium brand which caters to people
in the premium category, where quality of the products is a crucial factor in deciding
brand loyalty and hence brand switching is less frequent.

▪ Lakme Sun Block is the most preferred brand in all the areas, because of the brand
name “Lakme” and the cost, which is comparatively less compared to other products
in this category.

▪ Garnier is the most favored brand after Lakme. It is more popular in higher end
markets, like Vastrapur and Satellite. The ad awareness of the Garnier Range is higher
than the other products.

▪ Lotus is preferred by consumers of the premium category, who are brand loyal and
are reluctant to switch to other products. Lotus Herbals Ltd. is mainly involved in
print advertisements and does not advertise in the television media. Lotus also pays a
very high margin to the retailers, which helps to retain the retailers’ loyalty. Lotus
also provides extra monetary benefits for space and shelf display.

▪ The Derma Care Range does not employ such strategies. The margin provided to
retailers is lower as compared to that of the competitors. Hence the push strategy is
rendered ineffective with the range not being promoted aggressively by the retailers.

53
RECOMMENDATIONS

On the basis of our study we would like to put forth the following recommendations:

▪ The ‘Push Strategy’ should be more implemented in order to increase the market
penetration for the Dermacare Range.
▪ Retailer’s Margin should be increased so as to motivate the retailers to push the
product.
▪ Display of products in strategic stores at high visibility points could be done to
improve the movement of the complete range.
▪ As the ad-awareness is really low, frequency of the advertisements should be
increased in the television and print media so as to increase the ad-recall.
▪ Bouts of intensive advertising should be done during specific periods, to keep the
brand in the consideration set of consumers.
▪ Trial packs and free samples of all the products of the complete range should be
introduced so as to facilitate the first-time users.
▪ More promotional schemes could be implemented in order to increase the movement
of the product. For example: Tie-ups with beauty parlours to organize competitions
for the target audience could be a nice promotional scheme.

54
GLOSSARY

1. OSV :- Orange Skin Vitalizer

2. WFS :- Walnut Face Scrub
3. CFP :- Cucumber Face Pack
4. FW :- Face wash
5. SSL :- Sun screen Lotion
6. DSPR :- Derma Care sun Protection Range
• DC :- Daily Sun block Crème (SPF 30)
• DL:- Daily Sun block Lotion (SPF 30)
• DDM:- Derma Care Daily Matte Sun Block Crème
• DSS:- Derma Care Sensitive Skin Sun Block Lotion
7. DCER : - Derma Care Complexion Enhancement Range
• DDWM:- Derma Care Day Wear Matte Fairness Lotion
• DSLC:- Derma Care Skin Lightening Crème
8. DSRR:- Derma Care Skin Repair Range
• DAD:- Derma Care Age Defence
• DAC:- Derma Care Acne Control Gel
9. GSCR:-Garnier Sun Control
10. GER:- Garnier Enhancement Range
• GAM:- Garnier Anti Marks
• GDS:- Garnier Dark Spot Prevention
11. GSRR:- Garnier Skin Repair Range
• GWL:- Garnier Wrikle Lift
• GEC:- Garnier Eye Contour
• GAB:- Garnier Anti Bacterial clear imperfection
12. LSBR:- Lotus Sun Block Range
• LG 25:- Lotus Gel SPF 25

55
 • L10:- Lotus Sun Block SPF10
• L20:- Lotus Sun Block SPF20
• L25:- Lotus Sun Block SPF25
• L30:- Lotus Sun Block SPF30
• L40:- Lotus Sun Block SPF40
• L60:- Lotus Sun Block SPF60
13. LF:- Lotus Fairness
14. LAC:- Lotus Acne Control
15. LSB:- Lakme Sun Block Crème and lotion

56
ANNEXURE

Questionnaire
Data for this study was collected through the interview mode. As a result most of the
questions asked to the retailers were open-ended. Hence an unstructured questionnaire
was used for our purpose of reference. Questions asked are as under:

• What are the various brands stocked in the Sun-Protection, Complexion

Enhancement and Skin Repair Range?
• Do you stock the Derma Care Range? If yes, then on what basis i.e. on customers’
demand or brand name or because of the distribution channel?
• Have you seen the advertisement of the Derma Care Range? Does it bring out all
the special features of the product?
• Comparing all the major brands i.e. Lakme, Garnier, Lotus and Derma Care in
this range, the movement of which brand is the fastest? Rank them.
• Which strategies are adopted by the various brands for promoting their product?
• What schemes could help in the better promotion of the Derma Care Range?

57
WEBLIOGRAPHY

1. www.zyduscadila.com

2. www.everyuth.com

3. http://www.12manage.com/methods_swot_analysis.html

4. http://mall.coimbatore.com/bnh/everyuth/everyuth.htm

58