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The objective of our project is to do a comprehensive research on customer’s perception on one of the successful sub-brands of L’Oreal- GARNIER. Within Garnier, i have incurred a study on the hair care product range of Garnier that is Garnier Fructis and Ultra Doux. I have essentially focused on its shampoos and conditioners. My research has been aimed at understanding the market share of Garnier within the L’Oreal brand and among other brands. Also i have captured the market capabilities of Garnier hair care shampoos and conditioners. I have researched on the brand perception of the product by the customers and customer loyalty towards the product. I have also stressed on the four P’s of marketing in relation to this product and the marketing strategies that have been adopted by L’Oreal, essentially Garnier from time to time. The stress however has been on the PRODUCT out of all the four P’s and on the consumer behavior and their perception towards the brand. I have also focused on the current leading competitors of L’Oreal-Garnier and conducted a brief study on their marketing strategies.
the focus is on the discovery of ideas. depending on new idea and relationships among variables. descriptive studies are well structured and tend to be rigid.RESEARCH METHODOLGY Every project work is based on certain methodology.‖ Accordingly. DESCRIPTIVE RESEARCH: The objective of such a study is to answer the ―who. According to Clifford Woody. EXPLORATORY RESEARCH In the case of exploratory research. the methodology used in the project is as follows: Defining the objectives of the study Framing of questionnaire keeping objectives in mind (considering the objectives) Feedback from the respondents Analysis of feedback Conclusion. data collection and data analysis. An exploratory study is generally based on the secondary data that are readily available. It does not have formal and rigid as the researcher may have to change his focus on direction. It is a very important guideline and lead to completion of any project work through observation. where and how‖ of the subject under investigation. RESEARCH DESIGN Different types of research design have emerged on account of the different perspectives from which a research study can be viewed. what. There are three fundamental categories that we use frequently are given below. An exploratory research is in nature of preliminary investigation. when. making deductions &researching to conclusions. organizing &evaluating data. collecting. which is a way to systematically solve the problem or attain its objectives. ―Research Methodology comprises of defining & redefining problems. findings and suggestions. CASUAL RESEARCH A casual research investigates is cause and effect relationship between two or more variables. The casual research design is based on reason along .
e. a questionnaire to collect the data and to establish the view of the people from all the sectors of the society. And also visited various libraries for collection of the introduction part. both in the term of money and time spent. The data such collected is original in character. reports and various publications. DATA COLLECTION Research will be based on two sources: PRIMARY DATA Primary data is that kind of data which is collected by the investigator herself for the purpose of specific study.org and many more with the past records of the company. Primary sources in the form of questionnaire and secondary sources were various internet sites like Google. In my project work I have used both primary and secondary sources of data.com. SECONDARY DATA When an investigator uses the data that has been collected by others is called secondary data. Two basic types of questions are: O Open ended . The secondary data could be collected from journals. Must maintain impartiality and be very careful with personal data. Instrument for data collection Through questionnaires Through interview Through observation Questionnaire Formulation Marketing researchers have the best instrument in collecting primary data i.The research design used in this project is a DESCRIPTIVE DESIGN. The advantages of secondary data can be economical. The advantage of third method collection is the authenticity. Wikipedia. Questions should be: O O O Clear Easy to understand Directed towards meeting an objective.
of units in the population and n is the size of sample. The questions are framed keeping in mind the objective of research and kind of information required. All the questions are clearly defined.O Closed ended The questionnaire designed for this project contains closed-ended questions. STRATIFIED RANDOM SAMPLING A stratified random sampling is divided into mutually exclusive and mutually exhaustive strata or sub group and then a simple random sample is selected in each strata or sub group. Since random sampling implies equal probability to every unit in the population. RANDOM SAMPLING A random sample gives every unit of population a known and probability of being selected. It is necessary that the selection of the sample must be free from human judgments. SYSTEMATIC SAMPLING In this method first a sampling fraction is calculated as N/n where N is the total no. All the questions are clearly defined. Findings The findings of the project are Research Design : Data Source Research approach Research instrument Type of questions : : : : Descriptive Primary and secondary Survey method Questionnaire Closed ended Sample Size Collection Sample Area Time : : : : 100 samples Convenient sampling North Delhi 6 weeks Sample TECHNIQUE The sampling designs are mainly of two type non-probability and probability sample designs. .
JUDGEMENTAL SAMPLING The main characteristics of judgmental sampling is that units on elements of the population are purposely selected it is because of this that judgment samples are also called purposive. which are to be fulfilled by the interviewers. I have chosen convenient sampling for my project work SAMPLING SIZE Data collection Areas Sample Size Method Used North Delhi. Since the purpose of judgmental sampling is not based on random sampling it is also called non probability sampling.CLUSTER SAMPLING Cluster sampling implies that instead of selecting individual units from the population entire groups or clusters are selected random. QUOTA SAMPLING Quota sampling involves the fixation of certain quotas. 100 Survey Method CHAPTER 2: COMPANY PROFILE . samples. since quota sampling is not based on random selection it is not possible to calculate estimates of certain errors for the sample result.
is one of the key officials responsible for the formation and operations of L'Oreal India. In India. The operations in India are conducted through a judicial mix of global and local methods of advertising to appeal to the Indian consumers.000 scientists and research staff. a French chemist who developed an innovative hair color formula. It has recently been replaced by "Because you're worth it ". The share of the Indian market to L'Oreal's turnover of 15. but offers a true value for money. shampoo range Garnier. France. It operates in India through its wholly owned subsidiary. and Japan bring together more than 3. L’Oréal’s innovations are patented. The company’s growth in India can be attributed to its innovation of new products. the behavior of the Indian consumers and has realized that the Indian consumer is not as price conscious as is portrayed. Its portfolio of brands includes the cosmetics range of L'Oreal Paris and Maybelline NY. The biggest contributor to its revenue in India is the consumer products division led by its strongest brand in terms of sales . L'Oreal is a listed company. L’Oreal started its operations in India thirteen years ago. the L’Oreal advertising account is handled by Mccann Erickson. but is growing. professional products. L’Oreal India has recently setup its own manufacturing plant in Pune.8 billion is small. It imports most of its products from its facilities abroad and manufactures the rest in Pune. concentrating on skin care. L’Oreal famous advertising slogan is "Because I’m worth it". systems and structure. who has been with the company for 20 years. creating some 586 patents in 2004 alone. sun protection. make up. It got its start from the hair color business but soon it developed activities in the field of cosmetics. L’Oreal is planning to foray into the Rs 1. perfumes and hair care. luxury products such as Lancóme and active cosmetics such as Vichy. It is also the top nanotechnology patent-holder in the United States. and the Swiss food company Nestlé each control over a quarter of the shares and voting rights. Its closest global competitor in the premium make-up segment is Revlon. The group is taking the acquisition route to enter this niche sector. the L’Oreal Group is the world's largest cosmetics and beauty company and is headquartered in the Paris suburb of Clichy. The beauty and the wellness sector in India are on a boom. L’Oreal India and has four divisions — consumer products.L’OREAL – INTRODUCTION L’Oreal was founded in the year 1909 by Eugene Schueller. The Indian subsidiary headed by Chief Operating Officer Dinesh Dayal. the USA. supply chain management.000-crore Indian herbal and ayurvedic cosmetics industry. The brand is more expensive than the average FMCG. . Being the world’s second largest cosmetics major. but the founder's daughter Liliane Bettencourt who is one of the richest people in the world. L'Oréal's research facilities in France. L’Oreal India has discovered over the years.Garnier. L'Oreal is active in the dermatological and pharmaceutical fields. Their discoveries are published in leading scientific journals. After identifying its targets. active cosmetics and luxury product s. L’Oreal India is in advanced talks with Biotique and VLCC to acquire herbal/ayurvedic cosmetics brands. India’s contribution to the growth of the global cosmetics market is about 60 percent. L’Oreal has thus identified India as one of its top five growing businesses globally. Today.
development and evaluation process: 1. L’Oréal products are validated by independent cosmetic-clinical studies under dermatological control to assess their efficacy and safety. These involve interviewing a statistically significant number of people who have bought and used the products for several weeks to assess their level of satisfaction and to help us to continually improve L’Oreal products. customer satisfaction surveys are carried out after the products are launched. L’Oréal conducts consumer studies to assess the products’ efficacy and satisfaction rate before they are launched. L’Oreal products are the result of the following research.L’Oreal’s methodologies for evaluating the safety and efficacy of ingredients and finished products. The sample size of these cosmetic-clinical studies is in line with the industry’s standards. GARNIER. The benefits offered by our products are supported by the scientific and customer evidence gathered at 13 research centers. These tests are conducted by independent research companies and performed on a statistically significant number of women and men. Moreover. 2. product evaluation and claim substantiation are recognized by the international scientific community. In addition. 13 evaluation centers and through collaborations with leading independent research institutes around the world. 4. 3.AN EXTENSIVE RESEARCH ON A L’OREAL SUB-BRAND .
to gels. now has plans to bring over its skin care collection too. Garnier has been able to establish itself firmly in the Indian market and has clearly defined its target market which is the middle class and the upper middle class segment.Garnier. The . Garnier attributes its performance to being the first player in India to introduce a cream-based hair color below the price of Rs 100 (2002) and the first home-highlighting kit (2005). In 2000 L’Oreal launched its range of cosmetics in to Indian market. Garnier concentrated on the Natural Hair care market with the main USP of strong hair. serums. Garnier mainly produces hair care products. anti-acne ointments. Maybelline was in the premium color cosmetic segment while Garnier in the "naturals" segment. hair mousse. fructose and glucose. including the Fructis line. vitamin B3. active cosmetics and luxury products. B6. the L'Oreal-owned brand that shook up the US hair care market with the introduction of Fructis in 2003. The brand positioned as a Unisex brand mainly used its international campaigns in India to appeal to the Indian consumer. This has enabled it to garner a 20 per cent share in a market dominated by local hair colorants and dyes. Its hair coloring portfolio has also been given a boost and the company has decided roped in Kareena Kapoor as its new brand ambassador for its hair color brand of Garnier Nutrisse. conditioners. Garnier has very effectively designed its promotional strategies by adapting to the changing customer demand. professional products. its products help look healthy and feel good every day. the three brands of L’Oreal have been defined by their price segments and positioning. The company has been steadily increasing its product portfolio in the Indian market especially in the hair care segment. While L'Oréal was focusing on hair color market in the initial stages of its launch. anti-wrinkle creams etc. Garnier believes in beauty through nature. One of their key ingredients is a fruit concentrate used in all their products. Garnier operates in the mid-price and luxury segment. in spite of the presence of Garnier's Ultra Doux shampoo and hair conditioner. Garnier concentrated on the Natural Hair care market with the main USP of strong hair. Nutritioniste. and most recently. It is a combination of fruit acids. Its skin care brand of Garnier has been extended to a shampoo and hair conditioner under the Fructis brand. In the hair color segment. The biggest contributor to its revenue in India is the consumer products division led by its strongest brand in terms of sales — Garnier. skin care products under the name. Garnier. that are sold around the world. It has penetrated firmly in the Indian market both in skin care as well as hair care products covering a wide range from shampoos. Scientifically developed and enriched with selected natural ingredients. L'Oreal and Maybelline.L’Oreal operates in India through four main divisions: consumer products. The brand positioned as a Unisex brand mainly used its international campaigns in India to appeal to the Indian consumer.
COMPANY REVIEWGarnier offers a vast range of hair color. and Lakme. more than a decade ago. it was largely to cover grey hair. especially with the young and trendy. India has a large quantity of consumers whose hair care expenditure also includes hair oils. That’s why all the players have plans to modify existing products. For the natural beauty of hair and skin. hair color and skin care. Hair colorants indicate strong growth trends with a year over year growth of 8 per cent. However. The hair oil market is valued at Rs. To guarantee complete satisfaction to its customers. as they are cheaper for consumers and lack the chemicals of conditioners. Today. Hair oiling is a major niche in the hair care segment. launch new products and target different geographic segments and age-groups. Gone are the days when hair conditioners and hair colorants were used occasionally to look beautiful. For instance when hair colors first came to India. hair care and skin care that bring you natural beauty. L'Oreal.MARKET ANALYSIS The hair care market in India is valued at $200 million. Evaluated by experts and consumers before being put on the market. it has become a fashion statement. feminine hygiene. Garnier seeks to continually improve product performance by addressing their customer’s specific needs using the company’s long expertise in hair care. shampoos. Around 50% of the population . HAIR CARE INDUSTRY IN INDIA. According to A C Nielsen (the world's leading marketing information company). they have become the way of life. it’s largely due to demand. Figure 1 The major players in hair colorants category are Godrej. 6 billions. Today. hair conditioners in India still face a difficult market due to long established habit of using hair oil and ayurvedic treatments. Garnier. and baby care have accelerated growth in personal care market.accessibility factor of Garnier products has been taken care of by the company by ensuring easy availability of its products in almost all confectionery item stores to malls and kiosks. The penetration level of hair oil is around 87%. The hair care market can be segmented into hair oils. Hair colorants are substitutes for hair dye to counter graying hair. To be sure Garnier products guarantee maximum effectiveness in total harmony with the customer’s body. But with the increasing number of youth in the country. more than simple products. Unlike market abroad. hair colorants & conditioners. the company offers to its customers. It has registered a growth of 3.8% over the previous year. Garnier products give immediate and visible results. providing advice and routines adapted to their personal needs. the company rigorously lab-tests all its new product propositions. hair colorants. and hair gels. if there are more brands in the Indian market.
Sunsilk re-launched in 1987 .Pantene Colgate Palmolive launched Optima also in Nov 1995 ( breakthrough in Keratin treatment ) Nirma launched Nirma Shampoo which went into rough weather because it also had a detergent and soap with the same name. low penetration levels. In South India. Sunsilk. Today HLL has a 63 % market share in the shampoo market. and is limited to a small section of the urban market. The growth rate of hair oils in rural India is faster than the growth rate in urban India. • • • • • • • • • • In mid 1997. Marico. Clinic Plus and Clinic All Clear put together have a market share of about 70 % While toilet soaps have reached saturation. This time. the AD segment accounted for a 20 % share P & G launched its internationally acclaimed A & D shampoo H & S in 1997 with Zinc Pyrithine (ZPT) . This stage marked the entry of competition in India due to certain factors such as the burgeoning middle class. the company re-launched Clinic and Sunsilk brands. In 1971.uses hair oil every day. HLL was the first company to target the rural market with shampoos.a unique anti-microbial agent. EVOLUTION OF SHAMPOOS IN INDIA • • • • • • • • • • • • HLL has been an undisputed leader in this market from early 90’s from where the concept of shampoos got consideration. HLL goes rural with Sachet shampoo concept. Shampoo market. Sunsilk was launched on a general or a normal shampoo platform.Pink for dry hair. Sunsilk re-positioned and re-launched in 1994 (Nutracare) . P & G enters India in Nov 1995. In 1964. a huge untapped market. The market penetration of hair gels/creams is very low. The major players in hair shampoo category are HLL. Clinic Plus was launched on a different platform as a health shampoo for family usage. an anti-dandruff shampoo in 1987. 350 Cr. Hair gels/creams are mainly used for hair grooming by men and is used as a fashion accessory. it was launched on a beauty platform with a new variant in its packaging. Sunsilk was re-launched with Fruitamins. there is immense potential for penetration of shampoos into Indian households.regular and menthol Sachet sale became 40 % of all shampoo consumption in the country. Hair gel market segment is at a primary stage and not many local brands are available in India. green for oily hair and black for long hair. Clinic. There were 2 variants .Shampoo + Conditioner with Sachet packs. yellow for normal hair. per capita consumption of Shampoo increased Of the Rs. In 1998. Organics and Lux and their various brand extensions dominate the shampoo market. P&G later launched Clinic Active in 1991 focusing more on the health platform by introducing pro Vitamin B in its shampoos. The brand name also had low price connotations. P&G launched for the first time. with the world’s largest selling brand . and Dabur India. . rising awareness of the youth.
Further. This can be justified from the current market scenario of shampoo market which states that the current per capita consumption of shampoos by Indian consumers is just 13 ml which is very less as compared to its other Asian counterparts where t is about 160 ml in Indonesia and about 330 ml in Thailand. our research shows the following facts: . On the basis of the research conducted by us. Shampoo penetration is expected to grow from 314 thousand households in 1998-99. the shampoo market has a large untapped market as it is still considered as a premium cosmetic product by a huge part of the Indian population. teenagers and now the upper class rural consumers. CURRENT SCENARIO OF SHAMPOO MARKET Shampoos are a significant segment of the hair care industry and they mainly cater to the middle class. the upper middle class. L’Oreal and Revlon Flex as the ruling brands in the market. the top three brands are Ayush. The premium products in the shampoo market include Shehnaz Hussain.• According to NCAER. Dabur Vatika and Nyle. Sunsilk and Chik while in Herbal shampoo range. These are: Cosmetics Anti-Dandruff Herbal The top three brands in the Normal shampoo range are Clinic Plus. The anti-dandruff shampoos include Clinic All Clear. it is 10%. Head and Shoulders and Dabur Vatika as the best performing brands. to 506 per thousand households in 2008-09. There are broadly three basic segments in the shampoo market in India. The penetration of shampoo market in India is just about 15% out of which the penetration in the urban market is 40% and in the rural market.
Consumers attribute lathering to the act of cleaning. Some customers use shampoo only to address a specific problem such as dandruff or when they need to condition their hair. Most consumers use shampoo only once or twice in a week. Regular users would need smaller quantity of shampoo per bath. About 15 % of consumers use toilet soaps as well as shampoo for cleaning their hair. this particular market segment is also improving at a fast pace. There are certain brands that are actively increasing their presence in the market by marketing their shampoos through different channels. About 50% of consumers use ordinary toilet soaps to wash their hair. especially online marketing. . Southern market is predominantly a sachet market. • • • • • • • • • In the North. parties etc. curing and avoiding damage to the hair. It is restricted to the super premium segment or those who are very involved with their hair care. Hair tends to collect more dust due to dusty environment and oiling habits. GARNIER TESTING POLICIES: All products are the result of rigorous research and development and benefit from the expertise of our multi-disciplinary scientists & research staff. these products are used on special occasions such as weddings. It is due to this reason hat Ad campaigns are on a rise as there is a lot of competition in this area and there are low penetration levels with a large untapped market. shampoo bottles are more popular in the Northern markets. In many cases. particularly in fragrance. About 50 % of the shampoo bottles are sold in the Northern region alone. Their discoveries are frequently published in leading scientific journals and have resulted in several patents. Consumers frequently look for a change. In Contrast. An Indian needs more shampoo for a proper wash ( average 6 ml ) compared to 4 ml needed in Western countries as most Indian women have long hair Most consumers do not use shampoo daily. Brand loyalties in shampoo are not very strong. With changing times. Use of conditioners is not common. giving softness and bounce to hair. accounting for 70 % of sachet volumes.• • • • • • • The frequency of shampoo usage is very low. Major expectations from the product are improvement in texture and manageability. The main challenge therefore in front of marketers is to increase the product awareness in the Indian market and also focusing on targeting the rural market which is majorly unaware about the product. local brands such as Ayur have strong equities and these products being low priced dilute sachet’s USP of low price. Some consumers use natural conditioning agents such as henna. Garnier uses methodologies recognized by the international scientific community as part of its products' development process which assess their safety and effectiveness.
development and evaluation at Garnier: STAGE I: Garnier products benefits from scientific and customer research gathered from several research centers and evaluation centers around the world. They can be done under dermatological or Ophtalmological control. customer satisfaction surveys are also carried out. These involve interviewing a statistically significant number of people who have bought and used the products for several weeks. This information helps us to monitor levels of satisfaction and we use this type of customer feedback to evaluate and improve our products on an ongoing basis. STAGE III: Consumer studies verify product effectiveness and consumer satisfaction rates before the product is launched. STUDY OF 4 P’S OF GARNIER HAIR CARE PRODUCTS • Garnier Fructis Daily Care . STAGE IV: Once products are launched.Stages of research. STAGE II: Independent clinical studies to assess the effectiveness and safety of our products.
. fructose and glucose. The result: Great-looking hair that is anything but ordinary.Garnier Fructis Daily Care is fortified with Reinforced Active Fruit Concentrate . it penetrates inside the hair to moisturize and strengthen it.an innovative combination of vitamins B3 and B6. up to 5x smoother and so much shinier. Hair is up to 5x stronger. up to 5x smoother and so much shiner. Gentle enough for everyday use. strengthens and smoothes each hair strand. With UV protectant. Specially created to care for color-treated or highlighted hair. Hair is up to 5x stronger. keeping it balanced and healthy-looking. • Garnier Fructis Color Shield Garnier Fructis Color Shield is fortified with UV protectant and Reinforced Active Fruit Concentrate an innovative combination of vitamins B3 and B6. it nourishes. fructose and glucose. so color looks brilliant longer. the formula helps keep your color-treated hair brilliant and shiny on the outside.
Moisture is replenished and brilliant shine returns.an innovative combination of vitamins B3 and B6. fructose and glucose . Hair is up to 5 times stronger.this creamy system helps restore moisture in dull. Garnier Fructis Moisture Works Drench your hair with moisture! Fortified with Reinforced Active Fruit Concentrate . up to 5 times smoother and so much shiny • Garnier Fructis Sleek & Shine . brittle or dry hair.
5x smoother and so much shinier. this system reinforces hair. coarse. It's specially created to smooth dry. and vitamins B3 and B6. unmanageable hair and contains Nutritive Fruit Micro-Oils .an innovative combination of vitamins B3 and B6. It's the first anti-breakage system with Reinforced Active Fruit Concentrate .an innovative combination of apricot and avocado oils. even with moisture in the air. protecting it from breakage and split ends. Hair is 5x stronger. • Garnier Fructis Length & Strength Impossibly long locks aren't impossible with Garnier Fructis Length & Strength! Stronger hair grows even longer.Can your frizzy. rebellious hair withstand even the most humid weather? Get the strength to fight frizz with Garnier Fructis Sleek & Shine. The result: Long-lasting frizz control for hair that's incredibly sleek. fructose and glucose. Specially created for hard-to-grow-long hair. .
It's a powerful force for healthy-looking hair and the confidence that comes with it. effective with the first wash. .an innovative combination of vitamins B3 and B6. and makes your hair up to 3 times stronger! The result: No flakes guaranteed. Garnier Fructis Anti-Dandruff Soothe your scalp! Created with Pyrithione Zinc and Active Fruit Concentrate .this double-action formula is gentle on your scalp. but ruthless on dandruff. fructose and glucose . It helps eliminate the symptoms of dandruff.
• Garnier Fructis Strength & Repair Garnier Fructis introduces the Strength & Repair System to help reverse the signs of damage in one week. leaving hair intensely nourished. repaired from the inside out and more resistant to breakage.nourish hair.a combination of apricot and avocado oils . and Ceramide Reconstructor to help repair and fortify hair. The formulas with Nutritive Fruit Micro-Oils . .
FRUIT AHA’s: Alpha Hydroxy Acids are a specific and original chemical family that is found in numerous fruits: malic acid in apples. . citrus acid in citrus fruits. They are a part of the class of Carbohydrates.NATURAL INGREDIENTS OF GARNIER: FRUCTOSE AND GLUCOSE: Fructose is also known as fruit sugar because it is abundantly found in fruits. Of these. It is generally associated with Glucose. The role of Fructose and Glucose in nourishing hair was demonstrated by in vitro culture of hair follicles. Fructose and Glucose are fuel for hair. and tartaric acid in grapes. which represent an important source of energy for all living organisms. citric acid is the most nourishing for the hair. it penetrates deep into the hair to improve the mechanical resistance of hair structure.
Promotional Strategy The cosmetics giant is using hairdressing schools to stimulate demand for products many Indians saw as an alien extravagance. . CAFFEINE: The stimulating properties of caffeine help to break down fat. ANTI STORAGE GINGKO: Gingko slows down storage of fats and is renowned for it filtering properties.GREEN TEA EXTRACT: It is obtained from young dry leaves which have been macarated and percolated in cold extraction process in order to reserve the plant’s active components. It is also known for its beneficial effect on micro-circulation and for its decongesting properties. pears. avocado. almond and apricot to help replenish lipids that the skin is lacking. Green tea contains Caffeine. apricots. blackcurrants. Vitamin B3 can also be found in fruit. pineapple and peaches. which has stimulating properties and is considered a medical plant. grape seeds. GRAPE SEED OIL: Fragrant fruit oil concentrate that starts nourishing while one colors his/her hair. VITAMINS B3 AND B6: These vitamins are organic compounds which are vital for cellular life: they actively participate in metabolic reactions. lemons. FRUIT OILS: Garnier has selected a unique combination of fruit oils from olives. figs. grapes. bananas. Vitamin B6 can be found in various fruits including avocado.
straight hair. They read glossy magazines such as Vogue. and follow the changing fashions of their favourite celebrities. That is not surprising as 85 per cent of Indian women have long.1 billion people they are not only alien but also an extravagance. Their natural tone is dark and they prefer home remedies recommended by their mothers. Most still use hair oil vegetable oil. This year. hair color was the Paris-based group’s genesis and remains the creative heart of the business. For a customer who needs more than a trim. Although L’Oréal’s professional products division represents only 17 per cent of total revenues. India’s future hairdressers are sculpting the tresses of volunteer models more willing to let trainees loose on their hair than a seasoned local stylist wielding a bottle of dye. they are about €100 million (£71 million). Its sales in India. where the company estimates there is a market of 50 million people. In a media-driven culture obsessed with Bollywood. L’Oréal hopes that very soon it will be because they think they’re worth it. The six-month course turns out professionals capable of working as a junior in one of the select but growing number of international-standard salons in India’s big cities. 73 hairdressers have graduated. The solution for L’Oréal. are growing at 35 per cent a year. no less – rather than fancy conditioners. ―Everyone is very particular about their hair these days.Above a bank in north Bombay. It is a challenging environment for any company trying to sell packaged beauty products – to the majority of India’s 1. .‖ said Ruchi Khater. a visit to a hairdresser in India has traditionally been something of a hair-raising experience. Money-spinning mass-market brands such as Garnier are being pushed hard in India. was to create a market from scratch. This was particularly true for fair-haired Western women with layered styles and blonde highlights. the world’s largest beauty and cosmetics group. They learnt the hard way that Indian hairdressers know little of color beyond a jet-black rinse or a streak of henna. from beneath a stack of silver foil at L’Oréal’s hairdressing academy. Since it opened its first academy in Bombay in 2006. urban consumers are very demanding and image is everything. L’Oréal’s distribution network also plays a vital role. where it is No 2 behind Unilever. Over the past decade the company has trained more than 30.000 hairdressers in India in the use of its products. which launched an Indian edition in September.
Hair Dyes do not show any seasonality in terms of advertising peaks. L’Oreal Group and Godrej Consumer Products Ltd are the two big giants in this category. The below graph suggests that like Shampoos. Their share of expenditures on this category on Television . using take-action language like "YES to fairer and younger looking skin" or "Against inside cell damages.In India. we had seen that Shampoos was not a very seasonal category in terms of advertising on TV. Figure 2 Let's look at the top players in the Hair Dyes category. Let's check out the trends for another similar category from the Personal Care Sector-Hair Dyes." L’Oreal Group and Godrej Consumer Products dominate Spends on Hair Dyes in Television Advertising Last time. advertisements for L'Oréal-branded products and the company's Garnier line generally feature a pale model and focus on the ingredients in the product.
At the 3rd position. .are close to each other with L’Oreal getting the top slot with nearly 38% share of the advertising pie whereas Godrej Consumer Products gets 33% share of advertising.Godrej Color Soft. Godrej Kesh Kala Tel and Godrej Herbal Hair Dye are at 6th.8% shares of advertising respectively. Figure 3 Moving on to the Top Brands in this category-it's once again flooded by L'Oreal Group & Godrej Consumer Products. Garnier Color Naturals (L’Oreal) is in the top position whereas its other product Nutrisse Hair Color Mask and L’Oreal Excellence Cream are at the 4th and 5th position. we have Godrej Powder (Godrej Consumer Products) whereas its other products . 7th & 9th position respectively.5% and 3. Black Rose Kali Mahendi at 8th while Indica Hair Dye gains the 10th position. Super Vasmol 33 (Hygienic Research) is at the 2nd position. At the 3rd place we have Hygienic Research (although the margin between the 2nd and 3rd position is large) with nearly 18% share of advertising followed by Henna Export Corporation and Cavin Care Ltd with 5.
as efficiently as Information Technology has entered households and businesses. "creating a buzz''. Viral marketing is a term coined to define the productive ways a marketing message is made available. such strategies take advantage of rapid multiplication to explode the message to thousands. viral marketing has been referred to as "word-of-mouth''.Figure 4 PROMOTION Garnier has been very active and upfront in adopting new promotional techniques to market its products. "leveraging the media'' and even "network marketing. The beauty of this marketing technique is that none of it requires any marketing. who have caught the virus. Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others. Off the Internet. send it . to millions. And corporate are using the medium to circulate brands and brand messages. creating the potential for exponential growth in the message's exposure and influence. The company follows a very popular technique to advertise and market its products that is the Viral Marketing policy. Like viruses. do the selling. Firms are now structuring their businesses in a way that allows them to grow like a virus and lock out the existing brick and mortar competitors through innovative pricing and exploitation of competitors' distribution channels. The idea has caught on like a virus. Customers.'' It's a deceptively simple concept: Create a message.
In India. The idea is to give away valuable products or services to attract attention. consumers were expected to invite their friends to visit the braid and add to their score.000 of their friends. They may not profit today. Advertising and marketing specialists are aiming at young. This is very evident from Garnier ads be it for Garnier fructis shampoos or for hair color.via e-mail. Hence. more importantly. but if they can generate a groundswell of interest from something free. And. using take-action language like "YES to fairer and younger looking skin" or "Against inside cell damages. they know they will profit soon and for the rest of their lives. A record 76. they latched on to the idea. urban Indian women. Advertisers are hot on the tactic. The knot creation was actually created (visually presented on the site) and as a next step. Since 'Free' happens to be the most powerful word in a marketer's vocabulary. a daughter advises her mother to try the product and thus makes an attempt to promote product among middle-aged women." . The firm had to introduce the aspect of five times stronger hair and the firm had a braid competition whereby consumers could register on a site and create a knot on the Fructis braid. and make it so compelling that recipients want to pass it on to everyone in their address book. advertisements for L'Oréal-branded products and the company's Garnier line generally feature a pale model and focus on the ingredients in the product. as part of their entry into the contest. and the idea of putting consumers to work spreading the word about a brand or service seems sound. most viral marketing programmes have attached themselves to it. a survey report indicated. or tomorrow.. expanding the base of the target segment gives a whole new market to marketers. someone else's resources are depleted rather than our own. provided they are successful in convincing the customers of the second-rung segment. cosmetics and new cars. Garnier has positioned itself as a lifestyle product mainly targeting teenagers and young girls. L’Oréal hopes that very soon it will be because they think they’re worth it. Viral marketers practice delayed gratification.000 consumers created their own knot on the braid and forwarded the link to more than 82. When Garnier launched its Fructis shampoo. who are earning their own money and are potential customers for a host of products. In a recent advertisement of Garnier hair color. including namebrand clothes.
For instance its Garnier brand of Color Naturals is an `Indianised' product. Mr. the company has also been customizing its products for the Indian market and there is expected to be a blend of both international as well as Indian formulations for its products. for any product. Any new brand merged into the relevant channel will fully utilize the resources in existing channel as well as expand L'Oreal’s whole distribution channel by integrating its original channel. Considering the large number of SKU's that we already have worldwide. L'Oreal recognized the leverage effect of it brand and focus its propagandas on brand rather than propagandas on particular product. However there is no hard and fast rule Besides. The dissemination of brand will improve company’s overall influential power. The market follows the Pareto Principle. It always concentrates on supporting those brands which can mostly represent its advantages and leverage resources to those premium products. . Ashwin Rajgopal." For aspirational products Garnier has adopted an international pricing strategy. "We are looking at pricing in the Indian context and there is a kind of balance we have struck. It aims to enhance brand power by maintaining the good image in publicities. In the present stage of immense competition. told Business Line that. Marketing Manager. It is dedicated in building the relationship between its brand and the market. it is possible to market the products at an almost comparable pricing. No surprise then that major marketing efforts of companies attempt to attract the most potential group. L'Oreal’s efforts were also embodied on its marketing strategy. which may not be the case for the rest of the products. `L'Oreal India Private Ltd believes that by introducing more stock keeping units (SKU's) it will be able to tide over the steep pricing of its products. L'Oreal has formed a brand matrix with great power of integration. L'Oreal Consumer Products. Trying to strike a balance in its pricing strategy for the Indian market. companies are required to effectively plan their pricing strategies to not only retain current customers but to also expand the customer base by targeting new segments with an aim to convert them into loyal customers. which says that 80 per cent of the sales come from 20 per cent of the people. one of the major tasks of marketers is to identify the group of 20 per cent that gives 80 per cent revenue of that product’s sale to the company. Thus.PRICE The target segment for any product is that homogeneous group of people which is purported to be the most potential customer for the product.
000 men and women of various races. L’Oréal India’s country manager. are growing at 35 per cent a year. . And it has helped to establish about 300 salons in the past five years. The theory is simple: If there is no natural demand for your goods. stimulate it. L’Oreal has tie ups with many big beauty salons and parlors who can promote and sell its products. Over the past decade the company has trained more than 30. To make its presence feel in different parts of the world L’Oreal has acquired many different companies like ―The Body Shop International plc‖. L’Oreal has established 19 global brands and produces them in 40 factories across the world. they are about €100 million (£71 million). This includes decisions about where to sell the product or concerns about where the customers are.PLACE To run a company in profit the place factor out of the 4p’s of marketing mix plays a very crucial role. and how to get to them. all the different middlemen a company use to get the product out to the customer. said. To popularize its product line L’Oreal has occupied brand corners in many big malls and retail outlets in which garnier products get a major chunk. where it is No 2 behind Unilever.000 stores in more than 50 countries. ―ultra doux‖ etc is available in both organised and unorganized retail shops in India. hair color was the Paris-based group’s genesis and remains the creative heart of the business. With over a century of experience in the cosmetics industry. In Indian market the hair care products of garnier like ―garnier fructis‖. This commitment by the corporation to take care of their own employees has resulted in L’Oreal being rated by the European business school students as The Employer of Choice for the year 2006. L’Oreal’s success in the cosmetic industry is due not only to their high quality. Garnier products are easily available for sale on many websites in India. it has supplied to 130 countries with offices in 58 different countries.meaning. but also to the corporation’s marketing effor ts to make sure their various brands have a strong market presence. which has over 2. It also includes the "channel of distribution" . This year. known as The Body Shop. L’Oreal runs a massive worldwide operation employing nearly 62. In India Garnier manufactures its products in Pune whereas it’s registered office is in Mumbai. In past 100 years that it has expanded. The high end skin care products like ―Nutritionsite‖ are available only in selected retail outlets in country. ANALYSIS OF INDIAN MARKET Garnier being an important brand of L’Oreal in both hair care and skin care i s available all round the globe easily. ―If you train people they will use your products. backgrounds and religions across nearly 60 countries. ―We have created a profession and a market.‖ Didier Villanueva.‖ Its sales in India. Part of the reason for the corporation’s success has been its sensitivity not only to its consumers but also to each and every one of its employees. where the company estimates there is a market of 50 million. These factories are all state of the art and ISO 140001 certified and all of their industrial sites are audited with the standard SA 8000 (L’Oreal Corporation). Although L’Oréal’s professional products division represents only 17 per cent of total revenues.000 hairdressers in India in the use of its products. The corporation has made sure that all their employees have opportunities to develop themselves both personally and professionally. Money-spinning mass-market brands such as Garnier are being pushed hard in India. The corporation makes sure that every product that rolls out from their factories complies with their own high standards and meets or exceeds quality and safety standards set by local governmental agencies such as the Food & Drug Administration of the United States of America.
Demand for Natural Cosmetics. Price Competition among Branded Manufacturers. . Opportunities M&A Opportunities. Rural market growth. Strong R&D Capability. Geographical Coverage. Growth of Direct Sales Channels Changing Consumer Lifestyles. Presence in Emerging Markets. Growth in Adjacent Categories. Variants available. Unable to gain much of market share. Threats Competition from Private Labels. Weaknesses Dependence on Western European Markets Late Entry into Asian markets.SWOT ANALYSIS OF GARNIER PRODUCTS Strengths Strong and Focused Brand Portfolio. Beauty products market growing with a significant rate.
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