Building a ‘Beauty Brand’ Veet India Essay

Building a ‘Beauty Brand’ Veet India – Beyond Hair Removal Executive Summary The solution attempts to address the transition of Veet from a hair removal brand to a true beauty brand. Starting with a study of the depilatories market in India and Veet’s growth over the years to create a platform, the results of the primary research have been presented. The primary research was a combination of questionnaire based research and PAPIs (paper aided personal interviews). The brand awareness of Veet was measured through both recognition and recall of the brand. The salience for the competitor brands like Anne French and Fem were also analyzed. Responses were gathered to identify the preferred usage locations of hair removal products. The product attribute associations, both positive and negative, were measured. An assessment of the brand personality was also undertaken by means of projective market research techniques. A combination of the strong functional values along with the emotional benefits was used to identify the key categories that were suited for brand extension. Elimination of product categories were based on reasoning related to inappropriate associations as well as data on market dynamics achieved from secondary research. Finally, three extensions in two phases have been proposed with a market potential study for each. Highlights of the communication strategies have also been proposed. The recommended strategy aims to initialize the transition of Veet as a true beauty brand in the coming years. Contents Executive Summary2 Introduction3 Hair Removal Market in India3 Veet in India6 Veet – Brand Image6 Primary Research & Data Analysis7 Research Overview7 Data Analysis8 Brand Equity, Brand Personality & Possible Extensions12 Brand Equity12 Brand Personality Model12 PossibLe Extensions13 RoadmaP & Positioning16 Brand Extension plan16 Positioning In New Segments17 Conclusion19 Introduction Personal care sector covers segments like hair care, body care, baby care etc. In India this sector is currently valued at around INR 320 billion and is posting robust growth year-on-year. Veet is player in the niche depilatories segment within this market. Hair Removal Market in India Hair Removal or depilatories segment in India is relatively niche segment. It is valued at around INR 4 billion which means its contribution to the personal care market is a modest 1. 27%. While the market size is small the segment has tremendous potential and has been seeing robust growth year on year. As seen above, the segment was a ‘late bloomer’ showing exponential growth in 2004-05 and in 2006-07. Over the past few years year on year growth has stabilized around 19%. To better understand the nuances of this segment one must look at target consumer segments as well as the competing brands in this space. Brands in Depilatory Segment The brands dominating this segment are: Anne French dominated this category as the first mover and the only player for almost 4 decades. Anne French’s product positioning was primarily functional showing usage and highlighting product attributes. The entry of Veet in 2004 changed the face of the market with player moving from product centric, functional adverts to emotional benefits. Veet’s entry and new positioning strategy also explains the 60% y-o-y growth spurt in 2004-05. Currently Veet is the market leader in hair removal creams with a market share of around 34. 1%. Fem is the market challenger with its presence in hair removal creams and bleaching products. Target ConSumer Segments The penetration of hair removal products is relatively low with the young, single, educated and urban women being the prime users. * With a 68% category penetration there is enormous untapped potential in the segment. However this potential can only be realized with category expansion. * Increasing urbanization and more women entering the main stream white collar work force Growth in consumer base is on the cards