TEAM BIG FISH
During 2008, the baby care sales grew by 8% in current value terms to
reach Rs3.3 billion. Rising disposable incomes have allowed parents to
spend more on buying branded products for their babies. Consumers are
shifting from unbranded and traditional home-made items to branded
Highlights products such as those from Johnson & Johnson and Dabur. Urban
consumers have realised the benefits of using products from reputed
allow parents to
spend more on companies, instead of using ones that are either home-made or meant
for adults. Though there has been an increase in the prices of the baby
Johnson & Johnson care products, demand was inelastic, as parents are typically unwilling to
leads sector sales,
compromise on quality.
with 69% value
share Johnson & Johnson remained the clear leader in baby care in 2008, with
the company accounting for 69% of value sales. The company’s greatest
Baby care is
predicted to strength is the trust consumers have in it. Its products have the
witness 36% reputation of being of high quality, and undergo the strictest quality
growth over the
control tests. Johnson & Johnson is able to cater to a wide range of
(2008-2013) consumers by carrying multiple brands in hair care, skin care and
toiletries. Johnson & Johnson led in terms of advertising expenditure in
2008, with its campaigns heavily tilted towards baby skin care products.
In addition, the company benefits from a strong nationwide distribution
network. Second and third placed Dabur and Wipro accounted for 27%
of total value sales in 2008.
Baby skin care and baby toiletries are expected to experience the fastest
growth in constant value terms over the forecast period, at 37% and
36%, respectively. Consumer familiarity with soaps and body oils will put
them at ease using such products, as compared to shampoos, which they
themselves might not be using.
The moisturizing product category is composed mainly of two types of
products – creams and lotions. In India, the moisturising product
category has been seen to be dominated by creams. However, the
lotions category has been seen to be growing in recent years. The
Johnson’s baby moisturising portfolio is comprised of both lotions and
creams with both available in regular and milk variants. The Johnson’s
cream products account for 2/3 of the sales in its moisturizing portfolio
while lotions account for 1/3 of the sal es. The milk variants are a new
introduction to the portfolio. Despite low advertising, the milk variants
account for 30% of the sales. After a rapid growth, this category is
seeing a slowdown in the growth rate.
To identify clear roles for each of the products in the Johnson’s baby
This would be accomplished with the help of the following broad
1. To identify the differences between the 2 moisturizing formats by
identifying usage patterns, areas of application, and other
2. To profile customers buying each of the different formats based on
demographic and psychographic characteristics.
3. To identify consumer’s perception of the milk variants.
The above research objectives and the research plan are explained in
detail in later sections.
As was expected, the secondary research also indicated that baby
Findings From skin care products are high involvement purchases. Following
Secondary variables have been identified as important for decision making for
Research baby skin care products.
1) Ingredients 2) Enhancing muscular growth
3) Gentleness of the product 4) Non sticky
5) Cute Packaging 6) Natural glow
7) Brand repute 8) Healthy ingredients
9) Skin softness 10) Enhancing health of skin
11) Skin smoothness 12) Protection from
13) Moisturizing effect 14) Suitability of the product for
the kids age
15) Natural products 16) Peer/Family
17) Medicinal properties 18) Previous experience
Following are the differences between consumer’s perceptions about
lotions and creams
Attribute Cream Lotion
Greasiness More greasy Less greasy
Absorption Slower Quickly and easily