Case Study: The Indian Fragrance Industry

The Indian Fragrance Industry, is growing at a compounded annual growth rate (CAGR) of 40 per cent and is likely to reach a figure of Rs 10000 crore by the year 2015.The main trend is that manufacturers have started to focus on introducing mass fragrances to exploit the growing demand for fragrances in tier II and tier III cities. Many companies entered fragrances by introducing new brands which were priced higher than mass and lower than the premium brands. By introducing mass brands, companies were planning to attract urban consumers to start using fragrances on a daily basis.

Any brand is an idea which we can see only if we believe in it. An effective brand strategy plays a significant role in building brand beliefs in the mind of the consumer.

The framework will enable the fragrance manufacturers/ company to set the price of a new launch. The project aims to identify the factors that influence pricing and determine the most significant of them. The project also identifies the consumer perception about fragrances and their ability to appreciate fragrances. Experimental approach will be used to identify whether consumers can appreciate fragrances and their willingness to pay for a particular fragrance will also be determined. Factors like user ship, frequency of buying deodorants etc. will also be determined. The final deliverable will be a framework based on consumer’s willingness to pay along with the suitable

In 2011, the personal care market in India is about $6.3 billion and is growing at over 13 percent per year. This major growth drivers in the Indian beauty and cosmetic industry are increasing per capita income, rapid urbanization, and aspirations among young Indian to look as good as local and global celebrities. The rising social image consciousness amongst Indian consumers supported growth of higher-priced new launches especially in a few categories like skin care, perfumes and colour cosmetics. As manufacturers started marketing their products based on promising claims, consumers have started to base their buying decision on these benefits.

Fragrance Industry in India:

The Indian fragrance industry is growing at a Compounded annual growth rate (CAGR) of 40% and it is expected to reach a figure of 10000 crore in 2015. Indian deodorant and roll-on market was valued at about Rs 1,800 crore in 2012 and is growing at about 55 per cent annually, whereas the perfume market is growing at about 30 per cent and is an Rs 1,500 crore industry. The roll on market's current size is a meagre Rs 400 crore and only a handful of brands are operating in this domain. The unorganised sector accounts for nearly 30 per cent of the total fragrance industry.

Indian deodorant