Shampoo Market Segmentation- Trends & Marketing Mix For Shampoo Brand

With the recent surge in the personal grooming industry and a major focus on hair care, the shampoo industry is witnessing an upwelling like never before. Gone are the days when there was one shampoo for the entire family; today, we have a shampoo for each in the family addressing the different hair types.

How do shampoo brands grow their marketing strategy to cater to this wide consumer market, and what marketing mix of shampoo do they adopt to push their products? All this and more ahead.

Marketing Mix of Shampoo

The marketing mix is the tactful combination of 4 major P’s of marketing to help companies penetrate the market. The marketing mix of shampoo includes Product, Price, Place, and Promotion.

• Product Strategy of Shampoo: The product is the star feature of the marketing mix of shampoo. Today, shampoo products are available in various ways, ranging from anti-dandruff, hair control, moisturizing, anti-frizz, medicated, and baby shampoos. Each shampoo product category addresses a specific hair problem or segment of consumers. Good product performance is what gives businesses an edge.
• Pricing Strategy of Shampoo: Companies usually price their shampoo products based on the competitive pricing policy adopted by their contemporaries in the market. Available in sachets ranging from Re1/- to 1-litre shampoo bottles, the pricing strategy of shampoo differs according to quantity. Too low or too high prices, along with wide fluctuations in the price, can hamper your pricing strategy of shampoo.
• Place Strategy of Shampoo: Shampoo market segmentation revolves around the sale of shampoos for two main segments-home and salon use. Further, the shampoo market can be geographically segmented into rural and urban areas. Demand for shampoo is relatively higher in urban areas than in rural areas, and the marketing strategy should focus accordingly.
• Promotion Strategy of Shampoo: Shampoo companies use a great mix of promotional media, including TV commercials, hoardings, social media marketing, and print media. Sponsorships and collaborations or partnership marketing are innovative ways companies advertise their products, reaching out to more and more people. More publicity directly translates to better marketing and increased sales.

When applied in the correct ratio, the above four P’s of the marketing mix of shampoo bring positive outcomes in the market segmentation for shampoo, helping businesses grow and boost their sales.

Shampoo Market Trends

With increased image consciousness and hair care becoming a quintessential element of grooming, the shampoo market trends are witnessing remarkable growth and boom. Shampoo market segmentation and analysis reflect the following major shampoo market trends:

• A surge in anti-dandruff and anti-hairfall shampoo sales is expected to rule the roost stemming from poor lifestyle and its consequences like unhealthy eating habits, poor diet and nutrition, and increased environmental pollution.
• With vast celebrity endorsements, the emphasis is set to shift shampoo market trends to more sustainable beauty products like organic and herbal shampoos rather than chemically formulated ones.
• Travel-size packaging, sleek bottles, and reusable pouches and sachets are the new shampoo market trends as compared to bulky bottles or family packs.
• The inclination of Gen X towards a more sustainable tomorrow gives rise to the growing popularity of organic products and the use of everyday kitchen ingredients like fenugreek, onion, or coconut milk in shampoo. These products promise a more natural and gentle treatment of hair rather than harsh chemicals.
• The shampoo market trends focus more on moisturizing and improving hair quality, making it soft and silky, rather than on cleansing or removing dead scalp. Accordingly, 2-1 shampoos that come with the dual formulation of conditioners are gaining ground and witnessing increased sales.

Market Segmentation For Shampoo Business

A detailed analysis of the shampoo market segmentation reveals that it has always shown an increasing shampoo market trends, with competition intensifying as the market grows and swells both in terms of production and revenue.

Some key factors influencing the market segmentation for shampoo are:

1. Hair Type-Centric Shampoo Market Segmentation

Unlike Western countries, India reflects huge diversity in hair type. Both men and women have different hair, from curly, straight, and voluminous to scanty. Shampoo products are designed accordingly to meet different needs.

For example, moisturizing shampoos are designed to control frizz and keep curly hair manageable, while voluminous shampoos target people with thin, straight hair to add volume and lustre.

2. Shampoo Market Segmentation By Hair Concerns

Dandruff, hair fall, and treating damaged, colour-treated hair are some of the major challenges and concerns that modern shampoos need to address.

Many companies today come up with tailor-made products to address these specific issues with products like anti-dandruff shampoo, anti-hair fall shampoo, and Keratin protein shampoos to treat damaged and chemically treated hair. These shampoos lure the younger generation, who are more aware of their hair concerns and are looking for specific products.

3. Demographic-Driven Shampoo Market Segmentation

The demographic pattern of the market plays a crucial role in deciding the type of product or shampoo to be produced and supplied by the companies. For example, companies formulate tear-free and organic shampoos for babies and infants.

Similarly, in markets for middle-aged consumers and adults facing the problem of grey hair, companies highlight the use of anti-ageing shampoos for the hair.

4. Shampoo Market Segmentation For Busy Lifestyles

In the modern era of the go-busy life, shampoo companies aim to meet the needs of the busy urban generation by offering them quick solutions like dry shampoos, quick rinsing shampoos and products that show instant or quick results.

For people sweating out in the gym, companies have launched conditioner-based shampoos and effective cleansers that help them take a quick shower without worrying about rinsing off all the lather.

5. Shampoo Market Segmentation By Ingredient Preferences

The growing awareness of environmentally friendly products amongst consumers and the need to incorporate sustainable ingredients in everyday use has encouraged shampoo companies to switch to more organic ingredients like onion, coconut milk, fenugreek, curry leaves, and plant-based compounds that have fewer side effects.

Today’s market segmentation for shampoo is witnessing a paradigm shift to herbal, cruelty-free, and organic shampoos based on essential oils and natural extracts.

A study of the shampoo market segmentation based on the above factors gives shampoo companies great insight into the type of products to produce and supply to meet changing consumer demands.

Conclusion

As the market size of the shampoo industry grows by leaps and bounds, shampoo companies have to face some regular challenges. Whether it is changing consumer tastes, cut-throat competition of mushrooming start-ups, or the increasing inclination towards herbal and organic shampoos, proper market analysis and insightful market segmentation for shampoo are what keep good shampoo companies ahead in the game.

With lakhs of shampoo products flooding the market, the consumers are spoilt for choice, and the shampoo business has tons of opportunities to tap. Focusing on customer-centric products and offering key solutions to hair problems makes good shampoo companies the market leaders.