Upload
vijayalakshmi-sundararajan
View
277
Download
2
Tags:
Embed Size (px)
Citation preview
3/13/2014
Vijayalakshmi | Balamurali | Karan | Florisha | Prahaladh | Nidheesh
BIOHEMISPHERE ALOE VERA GEL & SUNSCREEN
Exploratory Research
Mphatic Minds
2 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Table of Contents
EXPLORATORY RESEARCH - SECONDARY DATA ANALYSIS 1. Introduction to Aloe Vera…………………………………………………………………….5
Aloe Vera Gel ………………………………….6 Aloe Vera Sunscreen 7 Different Categories of Healthcare Applications 12 Conclusion 12 EXPLORATORY RESEARCH – QUALITATIVE METHODS 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 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Introduction
Aloe Vera
According to World Health Organization (WHO), around 80% of the world population depend upon
traditional medicine. They have been used as a diagnostic and for healing throught history to
present and have proven to be effective without resulting in painful side effects. Ayurveda is one
such system that has its roots deeply ingrown into the Indian culture, Ayurvedic cosmeceutical
date back to the Indus Valley Civilization. Ayurveda consists of numerous plant and animal based
ingredients which comprise the medications, along with identifying the type of body of the patient
according to the five primary elements of the universe. Aloe Vera, referred to as “Kumari” is a key
ingredient in Ayurveda which has varied uses from treating skin to liver ailments. The strength of
the plant is rediscovered by the cosmetic industry which has begun to extensively use it and
promote products commercially.
How it helps
Aloe can substitute synthetic ingredient used in cosmetic industry very competitively and is
finding increasing use in the ever growing consumer product segment. Aloe contains a mixture of
glucosides collectively called 'aloin', which is the active constituent of the drug. Aloin and its gel
are used as skin tonic as they have a cooling effect and as a moisturizing agent. This helps in
preparation of aloin based creams, lotions, shampoos and allied products.
Cultivating Aloe Vera
Farmers in India regularly face problem like lack of rain, low ground water level, soil degradation
etc. Cultivation of aloe Vera would be beneficial as it requires minimum usage of water and the
returns from it would be more than 50,000 yearly per acre. Most of the distributers we contacted
and as per data available online, Aloe Vera products have a high market demand. Many processing
units have already established in the country & according to estimation, more than 300 industries
are processing Aloe Vera leaf. However, there is still a high percentage that is left untapped as the
raw material doesn’t seem to be enough to meet the demand. Therefore, there is an unlimited
market potential in India for the “Sanjeevani “of modern times – Aloe Vera.
4 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Aloe Vera Gel
Aloe Vera Gel is the most popular product that is derived out of the Aloe Vera plant. The
preparation of the gel is quite simple, as slicing the leaf would result in the gel oozing out, to be
consumed directly or can go in for further processing. The remarkable gel serves various purposes
from being applied on the skin as a moisturizer and a coolant to being consumed internally for
well-being of the digestive system, liver and kidney.
Competition
As discussed earlier, the cosmetic industry has realized the great potential of aloe vera.
1. Premium Segment: Forever Living, Amway, Body Shop
2. Affordable Segment: Patanjali, Fab India, Lotus fairness gel, Prakriti, Banjaras, Aloe Vera,
Aroma Treasures
These brands have launched products based on the Aloe Vera Gel positioned for different
purposes such as
Soothing skin, after being exposed to sun
Moisturizing
Clearing Acne/ Dark Spots
Evening the skin tone
Fairness and many more
5 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Aloe Vera Sunscreen
Sunburns cause a lot of pain and irritation, while reducing the elasticity of skin causing early
ageing. Aloe Vera is a great natural skin coolant and is known to treat sunburns while moisturizing
skin.
While Aloe Vera is not necessarily an active ingredient for Sun Screen, it has been used widely by
various brands for its natural cooling and healing properties.
Competition
Affordable Segment: The key players in the aloe vera sunscreen affordable segment are Lotus,
Biotique, Jovees, Aroma Magic and so on.
Premium Segment: Forever Living
Apart from readily available competition products as mentioned above, many niche products are
also available online in the premium segment; whereas they might not be available on shop
shelves. Some high priced competitors for sunscreen and 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 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Competition Positioning Mapping for Aloe Vera Gel
Inference:
The popular players in the market fall in the above mentioned four categories: Soothing,
Moisturizing, Clearing Acne and Fairness when it comes to their products positioning. Some brands
like Patanjali and Prakriti Herbals speak about dual benefits. However, according to popular
marketing management concept, it is better if we stick to a single unique selling proposition (USP)
as it would be easier for customers to register.
Forever Living
Aloe Veda
Brihan
Fab India
Moisturizing
Soothing Fairness
Clears acne
Patanjali
Aroma treasures
Khadi
Lotus
Vana Vidhi
Banjaras
Prakriti Herbals
7 Exploring the Market Place: Aloe Vera Gel & Sunscreen
8 Exploring the Market Place: 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 established in
1950 is recognized by the Department of AYUSH, Ministry of Health and Family
Welfare, Govt. of India and the World Health Organization. It offers services in
the fields of Education, Research, Pharmacy and Clinical Practice in Ayurveda and
takes care of the nationwide distribution of Ayurveda medicines through C&F
agents and over 1000 agencies.
Dr. Ragavendran is a doctor of medicine in Ayurveda, working as a physician consultant and
research associate at Arya Vaidhya Pharmacy (AVP).
We requested Dr. Ragavendran to give us an insight on the benefits of Aloe Vera as a cosmetic.
Dr. Ragavendran started our conversation by explaining that Ayurveda, “the science of life” is a
historical medical approach to help human beings live a healthy life. He introduced us to the three
kinds of body systems or ‘Doshas’ that human beings are generalized to have, based on the five
elements: air, water, ether, earth and fire:
1. Pitha – composes predominantly of heat
2. Vatha – composes of air and ether
3. Kaptha – composes of earth
He explained that Aloe Vera or “Kumari” is a key ingredient in
Ayurveda that has varied purposes from cooling the system,
purifying blood, anti-inflammation, diuretic to treating many
“Pitha” related issues.
He mentioned that Aloe is good for skin as a whole as it helps
reduce dark spots, pimples, sunburn and lightens tan. People
are also realizing the benefits and resorting to herbal practices
for long term health. He does not suggest any specific
products because as per Ayurveda, medication cannot be
prepared using a single ingredient generic to a large audience.
9 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Exploring Consumer’s Mindsets
1. Intercepts
We intercepted 40 people randomly – Men and Women on the busy Race Course road in
Coimbatore to understand what they felt/thought about of Aloe Vera gel and products. To sum
their responses:
Inference:
Most of the respondents have heard of Aloe Vera but have not used it. Quite a few of them said that
they own the actual plant and consume it. Some women and two men mentioned that they have
used Aloe Vera in other forms, such as in moisturiser and aloe juice.
Intercepts
i use Himalaya. it's comfortable, but there are
no visible change
I use Baba Ramdev's for wellbeing
Usage of Aloe Vera as 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 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Exploring Retail Outlets: Mystery Shopping and beyond
Our team went as mystery shoppers to popular stores, supermarkets and pharmacies to see the
stocking and awareness of Aloe Vera gel and sunscreen. Below given are the store -specific
implications as well as the collective insight.
1. Kannan Departmental Store
KDS is a popular supermarket chain present in Coimbatore, Erode, Tiruppur etc. It caters
predominantly to the middle class SEC and stocks all the common grocery items to health
and beauty products. They try to sell products slightly lower than the MRP.
Observation:
We observed that KDS store is highly involved in selling herbal products.
Apart from the usual brands such as
Biotique, Aroma Magic, Banjaras,
Jovees, KDS have their own Aloe Vera
Gel brand in various flavours which
they have placed in a) The Medical
Department b) The Cosmetics
department c) General Stores Section
Sales Representatives’ Push:
The sales reps take pride in their Aloe
products and suggest to customers in
their benefits.
They explained that it’s fast moving.
2. Nilgiris
Nilgiris is a popular, established grocery retail outlet in South India that has been around
since 1905. Nilgiris is visited by the upper-middle class families and is known for quality.
Observation:
Nilgiris stocks all the cosmetic products on one aisle. It holds the popular brands such as
Biotique, Lotus, Himalaya, Jovees , Banjaras products.
Sales Representatives’ Push:
Biotique and Himalaya have company sales reps who push their respective products.
The store’s attendants, when spoken to suggested brands like Lotus and Jovees, and
considered them as fast-moving.
3. Pazhamudhir Stores
Pazhamudhir Stores is a popular store in Coimbatore that sells groceries and common
consumer products.
Observation:
Pazhamudhir is rather congested and stocks all the cosmetics on a single narrow
aisle. But the products are segregated neatly.
11 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Sales Representatives’ Push:
Brand Himalaya has it’s own sales representative who constantly bugs customers to
try out the products
The store’s sales reps did not have much idea about “Aloe Vera” but when asked
about sunscreen, they suggested Lotus and Himalaya sunscreens.
Only Banjaras Aloe Vera gel was available
Projective Technique
Word association
Plant Vivel Soap
Best!!!
Date : 10/3/14
Location : Brookefields
Nature
Green
Moisturizer
Face wash
Ootyy
12 Exploring the Market Place: 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 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Unique business model: Serving domestic market (Own brand) Foreign markets (Sub contracting in
clients’ brand names)
Distributor – 1 Distributor – 2 Distributor – 3 Markets serviced South East Asian
Nations Canada & Sri Lanka Domestic & Foreign
Profit margin ~ 10% – 20 % ~ 35% ~ 10%-20% Raw material source
Agriculturists – Tamilnadu
Agriculturists – Direct sourcing Contract farming entities
Challenges in business
Shortage of Raw materials
Sitting on stockpile of 10 tons of Pure Organic gel
Production facility’s capacity shortage
Location of business
Coimbatore, Tamilnadu
Kovilpatti, Tamilnadu Chennai, Tamilnadu
Product range Aloe Vera gel Creams/Gel/Soap/Shampoo/Oil Skin care kits Notes Business not vibrant Looking forward to venture
into retail sector Sub contracting, catering to clients’ specifications
Unique business model
Concentrates exclusively on gel products
Supplying exclusively to select geographies
Manufacturing & Distribution (Parallel activities)
Fast moving product
Aloe Vera Gel Pure organic gel Facial Kit (Own brand name)
Pricing Market oriented Pure organic gel – Rs.160/Kg Rs.626/- (Facial kit)
Focus Group Discussion
Gender: Male/Female
Age: 13-25years
Number of FGDs: 5
INTRODUCTION
Mphatic Minds held totally five Focus Group Discussions. Three of which were for girls, aged 18-25,
one for school girls, aged 13-16 and one for boys, aged 18-21, who are studying in Amrita University.
FGD was conducted to understand various aspects of the buying and usage behavior of herbal and
14 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Aloe-Vera products. This was done to know the potential of Aloe Vera based products in Amrita
University.
Details of the participants of focus group discussions are as follows:
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
Focus Group 1
Moderated by: Prahaladh, Balamurali
Date : 7/3/14
Location : Amrita University
Focus Group 2
Moderated by: Prahaladh, Balamurali
Date : 7/3/14
Location : Amrita University
Focus Group 3
Moderated by: Karan, Flourisha
Date : 8/3/14
Location : Amrita University
Focus Group 4
Moderated by: Karan, Flourisha
Date : 8/3/14
Location : Amrita University
Focus Group 5
Moderated by: Karan, Flourisha
Date : 8/3/14
Location :Amrita University
Location : Amrita University
15 Exploring the Market Place: 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
Opinions about the need for skin care by the males were found to be similar: they need care,
for they have a skin! The need to moisturize was considered mandatory for all skin types
irrespective of skin condition. However, some men thought they don’t need as much care as
women need. They think just washing the face twice a day would be sufficient. Only one of
the men in the focus group is using sunscreen lotion however many are using moisturizers.
3. Price sensitivity to products
Price elasticity for skin care products is from moderate-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 from safety and reliability. A price of Rs 500 was quoted by some duri ng the 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 in the discussion were already using a lot 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
two different aloevera gels, 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
Awareness of the benefits of ‘Aloe Vera’ to the skin and otherwise (for external application
to hair, and for intake) was found to be 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 few told that 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 Exploring the Market Place: Aloe Vera Gel & Sunscreen
Seniors (Age: 22-25) were found to be cautious of the use of ‘Aloe Vera’ based products due
to ‘stated reversal’ of ‘Aloe Vera’s benefits by their elders. 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 ‘Aloe Vera’ mainly emanated through elders (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
Opinions were somewhat diverse about the habit of changing the 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’s recommendation drove the buying behavior. Most of them seemed to pick products
which were either known to them or 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. Its use and benefits have been experienced by elders (mainly mothers) in many families of
the girls who formed a significant part of the FGDs that were conducted. But due to the increase d
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 Exploring the Market Place: Aloe Vera Gel & Sunscreen
References
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3151377/
www.indiamart.com
www.flipkart.com