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1. SWOT Analysis of Shampoo Market Strengths: The major strengths of shampoo market includes low operational costs, presence of established distribution networks in both urban and rural areas, presence of well-known brands in FMCG sector, increase in income level of customers. Weaknesses: Weaknesses of shampoo market includes lower scope of investing in technology and achieving economies of scale, especially in small sectors, low exports levels, lack of education in rural market and so many products are already available in the market. Opportunities: Major opportunities of shampoo market includes untapped rural market, rising income levels of customers, large domestic market all over the country, a population of over one billion, export potential of companies and high investment of customers on consumer goods. Threats: Threats of shampoo market includes removal of import restrictions resulting in replacing of domestic brands, slowdown in rural demand, new entrants of well-known international brands and spurious goods and illegal foreign imports of different shampoo brands. 2.Understanding the problem: BCG Matrix of Shampoo Brands In India The portfolio of shampoo business in India is shown by the Boston Consulting Group (BCG) matrix in the above diagram on the basis of their relative market share and industry growth rate. The vertical axis denotes the rate of growth of sales from low to high as we move upwards for shampoo industry in India whereas the horizontal axis represents the relative market share from high to low as we move from left to right. The four cells of BCG matrix have been termed as Stars, Cash cows, Dogs and Question marks or Problem children. Stars: In shampoo segment of India it includes Sunsilk, Panteen, Head and Shoulders, Clinic Plus and Garnier Fructies which are high growth, high market share businesses. It means all these market players are in the growth phase of the product life cycle. All of them are following an expansion strategy to establish a strong competitive position with regard to a star business. Cash cows: Clinic all clear, Ayur and Chik are placed in this cell of BCG matrix as these market players are enerating large amounts of cash but their rate of growth is slow. All these market players fall in the maturity stage of product life cycle in shampoo segment. Question marks: This cell includes Dove, Vivel and Vatika which are of high industry growth but low market share businesses in shampoo segment of India. These market players are in the introduction stage of product life cycle. These market players may become ‘stars’ if enough investment is made or they may become ‘dogs’ if ignored. Dogs: The market players like Lux and Lifebuoy are placed in this cell of BCG matrix of shampoo segment in India. Both of these players are in the decline stage of product life cycle and a retrenchment strategy is generally suggested in this stage of product life cycle. 3.Pay attention to the target audience: Imported cosmetics have had a major impact on the Indian market. The emergence of a young urban elite population with increasing disposable income in cities, an increase in the number of working women, changing lifestyles, increased affordability of lifestyle-oriented and luxury products, mounting aspirations, penetration of satellite TV, increasing appetite for western goods.


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