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CONTENT

Sr.

PARTICULARS

No.

Page
No.

CHAPTER I – INTRODUCTION

1.1

INTRODUCTION

6

1.2

4P’S OF MARKETING

6

CHAPTER II – BACKGROUND

2.1

ABOUT L’OREAL

7

2.2

RESEARCH,DEVELOPMENT
PROCESS OF L’OREAL

9

CHAPTER III – GARNIER-A L’OREAL SUB BRAND

3.1

COMPANY PROFILE

11

3.2

GARNIER TESTING POLICIES

12

3.3

MARKETING STRATEGY OF
GARNIER

13

3.4

ANALYSIS OF GARNIER’S
INDIAN MARKET

26

CHAPTER IV – CONSUMER SURVEY

4.1

CONSUMER SURVEY

29

4.2

ANALYSIS OF CONSUMER
SURVEY

31

V – CONCLUSION

5.1

CONCLUSION

34

APPENDIX

5.2

BIBLIOGRAPHY

34

features. money dollars covering costs expenses packaging. 2) Place .MARKETING STRATEGIES PROJECT TOPIC: MARKETING STRATEGY OF GARNIER INTRODUCTION Marketing is a business function that identifies consumer needs. Marketing is integral to the success of a business. A strategy commonly utilised is the "Marketing Mix". customer service and any subsequent after-sales service. large or small. This tool is made up of four variables known as the "Four P's" of marketing. The marketing mix blends these variables together to produce the results it wants to achieve in its specific target market. determines target markets and applies products and services to serve these markets. When developing a product you should consider quality. consumer value and customer satisfaction. with its primary focus on quality. design. 4 P’s OF MARKETING The following describes the four P's of marketing: 1) Product Products are the goods and services that your business provides for sale to your target market. It also involves promoting such products and services within the marketplace.

Today. distributors. L’OREAL L’Oreal was founded in the year 1909 by Eugene Schueller. The target segment for any product group of people which is purported to be the most potential customer for the product. which says that 80 per cent of the sales come from 20 per cent of the people. No surprise then that major marketing efforts of companies attempt to attract the most potential group. location and methods of getting the product to the customer. and Place) of marketing revolves mainly around the customers in the target segment. 4) Promotion Promotion refers to the act of communicating the benefits and value of your product to consumers. logistics and the potential use of the internet to sell products directly to consumers. There are a number of considerations in relation to price including price setting. shop front. Thus. direct marketing. 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. a French chemist who developed an innovative hair color formula. credit and cash purchases as well as credit collection. This includes the location of your business. The application of the four Ps (Product. the L’Oreal Group is the world's largest cosmetics and beauty company and is . The market follows the Pareto Principle. Promotion. It then involves persuading general consumers to become customers of your business using methods such as advertising. Price. for any product. discounting. personal selling and sales promotion. 3) Price Price concerns the amount of money that customers must pay in order to purchase your products.Place is in regards to distribution.

sun protection. It is also the top nano technology patent-holder in the United States. professional products. is one of the key officials responsible for the formation and operations of L'Oreal India. the behaviour of the Indian consumers and has realized that the Indian consumer is not as price conscious . L’Oreal started its operations in India thirteen years ago. L’Oreal famous advertising slogan is "Because I’m worth it". France. luxury products such as Lancóme and active cosmetics such as Vichy. shampoo range Garnier. Its portfolio of brands includes the cosmetics range of L'Oreal Paris and Maybelline NY. It got its start from the hair color business but soon it developed activities in the field of cosmetics. L'Oreal is a listed company. but the founder's daughter Liliane Bettencourt who is one of the richest people in the world. make up. It imports most of its products from its facilities abroad and manufactures the rest in Pune. Its closest global competitor in the premium make-up segment is Revlon. L’Oreal India has recently setup its own manufacturing plant in Pune. The operations in India are conducted through a judicial mix of global and local methods of advertising to appeal to the Indian consumers. In India. L’O re al Indi a and has four divis ions — Consumer products. L’O re al advertis ing account is handled b y M cCann Ericks on.It operates in India through its wholly ow ned s ubs idiar y.8 billion is small. It has recently been replaced by "Because you're worth it". who has been with the company for 20 years. but is growing . India’s contribution to the growth of the global cosmetics market is about 60percent.headquartered in the Paris suburb of Clichy. The beauty and the wellness sector in India are on a boom. The share of the Indian market to L'Oreal's turnover of 15. perfumes and hair care. L’O rea l India has discovered over the years. L'Oreal is active in the dermatological and pharmaceutical fields.Garnier. The biggest contributor to its revenue in India is the consumer products division led by its strongest brand in terms of sales . concentrating on skin care. and the Swiss food company Nestlé each control over a quarter of the shares and voting rights. The Indian subsidiary headed by Chief Operating Officer Dinesh Dayal. active cosmetics and luxury product s.

L’Oréal conducts consumer studies to assess the products’ efficacy and satisfaction rate before they are launched. product evaluation and claim substantiation are recognized by the international scientific community. 2. 13 evaluation centres and through collaborations with leading independent research institutes around the world. systems and structure. The company’s growth in India can be attributed to its innovation of new products. and Japan bring together more than 3. L’Oreal India is in advanced talks with Biotique and VLCC to acquire herbal/ayurvedic cosmetics brands. creating some 586 patents. L'Oréal's research facilities in France. The benefits offered by our products are supported by the scientific and customer evidence gathered at 13 research centres . After identifying its targets. L’Oreal’s methodologies for evaluating the safety and efficacy of ingredients and finished products. In addition. Their discoveries are published in leading scientific journals. 3. development and evaluation process: 1. L’Oréal products are validated by independent cosmetic-clinical studies under dermatological control to assess their efficacy and safety. but offers a true value for money. The sample size of these cosmetic-clinical studies is in line with the industry’s standards. the USA.000 scientists and research staff. . The group is taking the acquisition route to enter this niche sector.000-crore Indian herbal and ayurvedic cosmetics industry. L’Oréal’s innovations are patented. supply chain management.as is portrayed. L’Oreal is planning to foray into the Rs 1. Being the world’s second largest cosmetics major. The brand is more expensive than the average FMCG. L’Oreal has thus identified India as one of its top five growing businesses globally. L’Oreal products are the result of the following research.

now has plans to bring over its skin care collection too. active cosmetics and luxury products. 4. B6.These tests are conducted by independent research companies and performed on a statistically significant number of women and men. and most recently. This has enabled it to garner a 20 per cent share in a market dominated by local hair colorants and dyes. It is a combination of fruit acids. vitamin B3. In 2000 L’Oreal launched its range of cosmetics in to . skin care products under the name. 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. Maybelline was in the premium color cosmetic segment while Garnier in the "naturals" segment. GARNIER. Moreover. customer satisfaction surveys are carried out after the products are launched. In the hair color segment. Garnier attributes its performance to being the first player in India to introduce a cream-based hair color below the price of Rs 100 and the first home-highlighting kit. Garnier operates in the mid-price and luxury segment. Nutritioniste. the L'Oreal-owned brand that shook up the US hair care market with the introduction of Fructis. The biggest contributor to its revenue in India is the consumer products division led by its strongest brand in terms of sales — Garnier. including the Fructis line. Garnier mainly produces hair care products. professional products. One of their key ingredients is a fruit concentrate used in all their products. that are sold around the world. While L'Oréal was focusing on hair color market in the initial stages of its launch.A L’OREAL SUB-BRAND L’Oreal operates in India through four main divisions: consumer products. fructose and glucose. Garnier.

Garnier concentrated on the Natural Hair care market with the main USP of strong hair. hair mousse. L'Oreal and Maybelline. its products help look healthy and feel good every day. Scientifically developed and enriched with selected natural ingredients. Garnier has very effectively designed its promotional strategies by adapting to the changing customer demand. Garnier concentrated on the Natural Hair care market with the main USP of strong hair. inspite of the presence of Garnier's Ultra Doux shampoo and hair conditioner. the three brands of L’Oreal have been defined by their price segments and positioning. 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. The company has been steadily increasing its product portfolio in the Indian market especially in the hair care segment. Garnier. anti-wrinkle creams etc. The 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. Garnier believes in beauty through nature. Its skin care brand of Garnier has been extended to a shampoo and hair conditioner under the Fructis brand. The brand positioned as a Unisex brand mainly used its international campaigns in India to appeal to the Indian consumer. conditioners. to gels. COMPANY PROFILE . The brand positioned as a Unisex brand mainly used its international campaigns in India to appeal to the Indian consumer. serums. 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. It has penetrated firmly in the Indian market both in skin care as well as hair care products covering a wide range from shampoos. anti-acne ointments.Indian market.

To be sure Garnier products guarantee maximum effectiveness in total harmony with the customer’s body. Garnier seeks to continually improve product performance by addressing their customer’s specific needs using the company’s long expertise in haircare. providing advice and routines adapted to their personal needs. 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. For the natural beauty of hair and skin. They can be done under dermatological or Ophthalmological control.Garnier offers a vast range of hair color. development and evaluation at Garnier: • S TAG E I : Garnier products benefits from scientific and customer research gathered from several research centres and evaluation centres around the world. Garnier uses methodologies recognized by the international scientific community as part of its products' development process which assess their safety and effectiveness. To guarantee complete satisfaction to its customers. the company offers to its customers. more than simple products. Evaluated by experts and consumers before being put on the market. Garnier products give immediate and visible results. . the company rigorously lab-tests all its new product propositions. hair color and skin scare. • STAGE II: Independent clinical studies to assess the effectiveness and safety of our products. 1) Stages of research. hair care and skin care that bring you natural beauty. Their discoveries are frequently published in leading scientific journals and have resulted in several patents.

• STAGE IV Once products are launched. customer satisfaction surveys are also carried out. MARKETING STRATEGY OF GARNIER (4P’S OF GARNIER) 1) PRODUCT Some of the popular Garnier products with their product descriptions are shown below:(i) Garnier Fructis Daily Care .• S TAG E I I I : Consumer studies verify product effectiveness and consumer satisfaction rates before the product is launched. These involve interviewing a statistically significant number of people.

it nourishes. Gentle enough for everyday use. Hair is up to 5x stronger. the formula helps keep your color-treated hair brilliant and shiny on the outside. fructose and glucose. so color looks brilliant longer. it penetrates inside the hair to moisturize and strengthen it. keeping it balanced and healthy-looking. With UV protectant. strengthens and smoothes each hair strand. (ii) Garnier Fructis Moisture Works . fructose and glucose. up to 5x smoother and so much shinier.Garnier Fructis Daily Care is fortified with Reinforced Active Fruit Concentrate – an innovative combination of vitamins B3 and B6. up to 5x smoother and so much shiner.an innovative combination of vitamins B3 and B6. (ii) Garnier Fructis Color Shield Garnier Fructis Color Shield is fortified with UV protectant and Reinforced Active Fruit Concentrate . Hair is up to 5x stronger. The result: Great-looking hair that is anything but ordinary. Specially created to care for color-treated or highlighted hair.

Hair is up to 5 times stronger. The result: Long-lasting frizz control for hair that's incredibly sleek. Moisture is replenished and brilliant shine returns. coarse. rebellious hair withstand even the most humid weather? Get the strength to fight frizz with Garnier Fructis Sleek & Shine. unmanageable hair and contains Nutritive Fruit Micro-Oils . (v) Garnier Fructis Length & Strength . It's specially created to smooth dry.this creamy system helps restore moisture in dull. up to 5 times smoother and so much shiny.an innovative combination of apricot and avocado oils. Hair is 5x stronger.Drench your hair with moisture! Fortified with Reinforced Active Fruit Concentrate – an innovative combination of vitamins B3 and B6. (iv) Garnier Fructis Sleek & Shine ` Can your frizzy. even with moisture in the air. 5xsmoother and so much shinier. brittle or dry hair. and vitamins B3 and B6. fructose and glucose .

this double-action formula is gentle on your scalp. (vi) Garnier Fructis Anti-Dandruff Soothe your scalp! Created with Pyrithione Zinc and Active Fruit Concentrate – an innovative combination of vitamins B3 and B6. fructose and glucose. fructose and glucose . leaving hair intensely nourished. and makes your hair up to 3 times stronger! The result: No flakes guaranteed. It's a powerful force for healthy-looking hair and the confidence that comes with it. Specially created for hard-to-grow-long hair. effective with the first wash. It's the first anti-breakage system with Reinforced Active Fruit Concentrate an innovative combination of vitamins B3 and B6.a combination of apricot and avocado oils – nourish hair.Impossibly long locks aren't impossible with Garnier Fructis Length & Strength! Stronger hair grows even longer. and Ceramide Reconstructor to help repair and fortify hair. It helps eliminate the symptoms of dandruff. repaired from the inside out and more resistant to breakage. (vii) Garnier Fructis Strength & Repair Garnier Fructis introduces the Strength & Repair System to help reverse the signs of damage in one Week. but ruthless on dandruff. The formulas with Nutritive Fruit Micro-Oils . protecting it from breakage and split ends. this system reinforces hair. SKIN CARE PRODUCTS (i) Garnier Pure Anti-blemish Products .

Garnier Daily Moisturizer. Garnier Pure Exfoliating Face Wash. Fresh Clean feel Face Wash. Daily moisturizer SPF 15 / UVA +. Garnier Pure Daily Treatment Cream.Garnier Pure Anti-blemish . .Garnier Pore purifying Astringent. Garnier Pure Pimple Control Pen. (iii) Garnier Sun Control Products Garnier Sun Control . (ii) Garnier Essential Cleansers Products Garnier Essential Cleansers . Daily moisturizer SPF 20 / UVA. Garnier Pure Deep Clean Gel Face Wash.Garnier Gentle Face Wash. Garnier Gentle Cleansing Milk.

Green tea contains Caffeine. It is generally associated with Glucose. Fructose and Glucose are fuel for hair. citrus acid in citrus fruits. GREEN TEA EXTRACT: It is obtained from young dry leaves which have been macerated and percolated in cold extraction process in order to reserve the plant’s active components. citric acid is the most nourishing for the hair. CAFFEINE: The stimulating properties of caffeine help to break down fat. The role of Fructose and Glucose in nourishing hair was demonstrated by in vitro culture of hair follicles.(iv) Garnier Wrinkle Lift Anti-ageing Products NATURAL INGREDIENTS OF GARNIER: FRUCTOSE AND GLUCOSE: Fructose is also known as fruit sugar because it is abundantly found in fruits. which has stimulating properties and is considered a medical plant. . FRUIT AHA’s: Alpha Hydroxy Acids are a specific and original chemical family that is found in numerous fruits: malic acid in apples. it penetrates deep into the hair to improve the mechanical resistance of hair structure. It is also known for its beneficial effect on micro-circulation and for its decongesting properties. Of these. They are a part of the class of Carbohydrates. and tartaric acid in grapes. ANTI STORAGE GINGKO: Gingko slows down storage of fats and is renowned for it filtering properties. which represent an important source of energy for all living organisms.

Advertisers are hot on the tactic. lemons. The company follows a very popular technique to advertise and market its products that is the Viral Marketing policy. who have caught the virus. send it via e-mail. apricots. and the idea of about a brand or service seems sound. And corporate are using the medium to circulate brands and brand messages. to millions. pineapple and peaches. do the selling. pears. Vitamin B6 can be found in various fruits including avocado. viral marketing has been referred to as "word-of-mouth''. avocado. putting consumers to work spreading the word . The idea has caught on like a virus. Vitamin B3 can also be found in fruit. "creating a buzz''.GRAPE SEED OIL: Fragrant fruit oil concentrate that starts nourishing while one colors his/her hair. Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others. Off the Internet. creating the potential for exponential growth in the message's exposure and influence. figs. grape seeds. 2) PROMOTION Garnier has been very active and upfront in adopting new promotional techniques to market its products. almond and apricot to help replenish lipids that the skin is lacking. "leveraging the media'' and even "network marketing. The beauty of this marketing technique is that none of it requires any marketing. 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. blackcurrants. grapes. as efficiently as Information Technology has entered households and businesses. and make it so compelling that recipients want to pass it on to everyone in their address book. VITAMINS B3 AND B6: These vitamins are organic compounds which are vital for cellular life: they actively participate in metabolic reactions.'' It's a deceptively simple concept: Create a message. FRUIT OILS: Garnier has selected a unique combination of fruit oils from olives. Customers. Like viruses. such strategies take advantage of rapid multiplication to explode the message to thousands. Viral marketing is a term coined to define the productive ways a marketing message is made available. bananas.

especially. This is very evident from Garnier ads be it for Garnier fructis shampoos or for hair color. the consumers were bitten. Companies need to be very strategic in presenting the product and its features to attract another segment. a daughter advises her mother to try the product and thus makes an attempt to promote product among middle-aged women. There are some high-profile viral success stories. they latched on to the idea. And. the film's promoters hinted that the fictional tale was really a documentary and let the bug run wild. way back in 1996. someone else's resources are depleted rather than our own. most viral marketing programmes have attached themselves to it. In a recent advertisement of Garnier hair color. At the same time. but if they can generate a groundswell of interest from something free. more importantly. When Garnier launched its Fructis shampoo. not advertising-led. On web sites and in chat rooms.What is unique about the concept is that where brands or brand ideas are exchanged within communities. Garnier has positioned itself as a lifestyle product mainly targeting teenagers and young girls. Like Hotmail. In most cases. Viral marketers practice delayed gratification. A record 76. It may be damaging. The 1999-hit film 'The Blair Witch Project' also benefited from a similar contagion. they know they will profit soon and for the rest of their lives.000 consumers created their own knot on the braid and forwarded the link to more than 82. as part of their entry into the contest. They may not profit today. companies need to be sensitive about the impact of targeting other segments on the existing target segment. if in a . Hence. By simply sending an e-mail. 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. a survey report indicated.000 of their friends. The knot creation was actually created (visually presented on the site) and as a next step. provided they are successful in convincing the customers of the second-rung segment. they are idea-led. expanding the base of the target segment gives a whole new market to marketers. Since 'Free' happens to be the most powerful word in a marketer's vocabulary. or tomorrow. consumers were expected to invite their friends to visit the braid and add to their score. consumers hawked the service because every message contained a Hotmail ad that helped it grow to 12 million accounts in its first year. The idea is to give away valuable products or services to attract attention.

"The ad accounts have been aligned according to our international affiliations with these agencies and we try to have a mix of both the Indian and international ads. who are earning their own money and are potential customers for a host of products. For a customer who needs more than a trim." says Mr. Promotional Strategy The cosmetics giant is using hairdressing schools to stimulate demand for products many Indians saw as an alien extravagance. a visit to a hairdresser in India has traditionally been something of a hair-raising experience. “Everyone is very particular about their hair these days . McCann Erickson in Mumbai handles the L'Oreal and Maybelline account while Public is India is in charge of Garnier. urban Indian women. . cosmetics and new cars. L'Oreal and Maybelline have been defined by their price segments and positioning.Rajgopal.”said Ruchi Khater. They learnt the hard way that Indian hairdressers know little of color beyond a jet-black rinse or a streak of henna. L'Oreal India currently has three brands in its consumer products portfolio and there are product overlaps between its hair care. In case of any signals of lowering demand with the existing target group. Above a bank in north Bombay. from beneath a stack of silver foil at L’Oréal’s hairdressing academy. Relying on international ad campaigns Increasing its ad spend for the launch of its new products. skin care and color cosmetics brands. Garnier. L'Oreal has been relying more on its international campaigns to make an impact in the Indian market. companies should adopt line extensions by bringing suitable changes in the products.process of expanding its customer base. Advertising and marketing specialists are aiming at young. This was particularly true for fair-haired Western women with layered styles and blonde highlights. including name-brand clothes. a premier brand is targeted at the aspiring middle-class also. 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.

“We have created a profession and a market. which launched an Indian edition in September. estimates . 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.440) each. and follow the changing fashions of their favourite celebrities.000 rupees (£2. L’Oréal. as one of its international faces.vegetable oil. Most still use hair oil . Since it opened its first academy in Bombay in 2006. Unprecedented economic growth in India. has created a raft of opportunities for international lifestyle brands. was to create a market from scratch. The solution for L’Oréal. 73 hairdressers have graduated. It is a challenging environment for any company trying to sell packaged beauty products – to the majority of India’s 1. Their natural tone is dark and they prefer home remedies recommended by their mothers. a former model. said. 24. In a media-driven culture obsessed with Bollywood.000 hairdressers in India in the use of its product and it has helped to establish about 300 salons in the past five years. which is forecast by McKinsey to become the world’s fifth-biggest consuming nation by 2025. urban consumers are very demanding and image is everything.” she said. the 26-year-old captain of the one-day cricket team and the face of Brylcreem in India. got in. Much like Britain’s tabloid fascination with David Beckham’s changing hairstyles. They read glossy magazines such as Vogue. said. who pay 200. the recent decision by Mahendra Singh Dhoni. My mother’s generation did not have a clue because there was no exposure to these things. straight hair.”The students. to chop his long locks made frontpage news. Emerging markets such as India are driving the growth of the cosmetics industry.That is not surprising as 85 per cent of Indian women have long. the Bollywood star and former Miss World. Over the past decade the company has trained more than 30. the world’s largest beauty and cosmetics group.1 billion people they are not only alien but also an extravagance. no less – rather than fancy conditioners. which uses Aishwarya Rai. “People did not know what a bad haircut was. academy director. are green to say the least. L’Oréal’s distribution network also plays a vital role. The theory is simple: If there is no natural demand for your goods.” Didier Villanueva. Sohini Rohra. L’Oréal India’s country manager.” Caroline Lannuzel. stimulate it. “Most who come do not know how to hold scissors or use a blow dryer. Competition is strong with more than 50 applications for 15 places. “If you train people they will use your products.

are growing at 35 per cent a year. In the present stage of immense competition. . also has a hairdressing academy in Bombay and Toni & Guy opened a salon this year. where it is No 2 behind Unilever. Its sales in India. In the L’Oréal academy. using take-action language like "YES to fairer and younger looking skin" or "Against inside celldamages."34 3) 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. 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. it has at least two new potential customers. they are about €100 million (£71 million). Its rivals agree. which says that 80 per cent of the sales come from 20 per cent of the people. Franck Provost. L’Oréal hopes that very soon it will be because they think they’re worth it. In India. Thus. 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. Money-spinning mass-market brands such as Garnier are being pushed hard in India.there are 70 million potential consumers being created every year. hair color was the Paris-based group’s genesis and remains the creative heart of the business. The market follows the Pareto Principle. 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. where the company estimates there is a market of 50million people.33 Although L’Oréal’s professional products division represents only 17 per cent of total revenues. the beauty salon group. This year. No surprise then that major marketing efforts of companies attempt to attract the most potential group. Two thirds of the population is under 35: youth will drive growth. for any product.

the core technology platform is a key component to the success of an international company with complicated brand house. L'Oreal first introduced a break through antiaging composite by using Lancôme brand. L'Oreal relied on . Ashwin Rajgopal."Considering the company has set up its manufacturing facilities in Pune and has also been sub-contracting its products. it will cause increase of operational cost and waste of resources and will be very hard to manage the L'Oreal’s sophisticated brand architecture. Considering the large number of SKU's that we already have worldwide. The innovations based on the same technology platform will reduce the cost. Mr. Subsequently. L'Oreal’s innovations always start from its luxury brands then penetrate to the brands in different price level and different markets eventually implemented in its consumer brands. For aspirational products Garnier has adopted an international pricing strategy. In term of same products in the different market. Without leveraging the resources between brands. For instance its Garnier brand of Color Naturals is an `Indianised' product. "We are looking at pricing in the Indian context and there is a kind of balance we have struck. Marketing Manager. Besides.Trying to strike a balance in its pricing strategy for the Indian market. The broad distribution channel of consumer products was used to promote this technology at last. L'Oreal also exerts the technology platform to meet the specific needs of consumers. However there is no hard and fast rule. The knack for L'Oreal to create the advantages is to spread around strategic investment by sharing the production of innovation between different product divisions. From L'Oreal’s experiences. told Business Line that. which may not be the case for the rest of the products. it was implemented in Vichy brand and brought into the consumer product division eventually. 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. it is possible to market the products at an almost comparable pricing. it has been easier for it to control its prices in the Indian market. For example. `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. Other than building the brand structure according to the product identity. L'Oreal Consumer Products. L'Oreal not only focuses on the single brand but also pays attention to the technology relevancy in the series of brands.

They are conspicuously different in packages and with distinct image and advertising. L'Oreal has formed a brand matrix with great power of integration. Recent years in Asia. They have the same product business with L'Oreal. By acquiring Shu Uemura. It is dedicated in building the relationship between its brand and the market. which was a very successful transaction. Firms that aim to expand internationally or strengthen market position tend to acquire new brand into the brand architecture. These acquisitions represent L'Oreal’s ambition to Asian market. in order to meet the . L'Oreal’s efforts were also embodied on its marketing strategy. It always concentrates on supporting those brands which can mostly represent its advantages and leverage resources to those premium products. Active cosmetic products are sold in pharmacists. It achieves rapid growth by acquiring brand in same or related business and is continually seeking these opportunities in the worldwide scope. The most important sector consumer products are distributed through mass consumption channel like department store and supermarket. Professional products are provided to the hairdressers. In China the acquisition will enhance L'Oreal’s market position in skincare and acquire distribution channels Mininurse had. The dissemination of brand will improve company’s overall influential power. L'Oreal expanded its brand architecture by acquiring Maybelline brand in 1996. Every department has several brands and each brand has many names.distribution channel to carry out its strategy of brand structure. it acquired the third skincare brand Mininurse in China and Japanese top luxury brand Shu Uemura. The luxury brands of L’Oreal are sold in strictly selected distribution channel like department store. 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. It is also a preparation for the future expansion in the most fast-growing market China. L'Oreal recognized the leverage effect of it brand and focus its propagandas on brand rather than propagandas on particular product. There are four product departments in L'Oreal’s structure. Acquiring influential and well positioned brand is an important strategy of L'Oreal in developing its brand architecture. The different brands share the resources of distribution channel and have high integration effect on management. perfumeries and tax free shop. L'Oreal want to use this Japanese brand to compete with SK-…¡which was a competitor in the same level. The Maybelline’s image was enhanced by branded L'Oreal while L'Oreal got complementary in its brand architecture. It aims to enhance brand power by maintaining the good image in publicities.

known as The Body Shop. all the different middlemen a company use to get the product out to the customer. The corporation has made sure that all their employees have opportunities to develop themselves both personally and professionally. L’Oreal has established 19 global brands and produces them in 40factories across the world.meaning. but also to the corporation’s marketing efforts to make sure their various brands have a strong market presence. it has supplied to 130 countries with offices in 58 different countries. backgrounds and religions across nearly 60 countries.000men and women of various races. 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. This is considered to be an effective and cost-efficient strategy which is consistent with L'Oreal’s overall brand architecture. and how to get to them. To make its presence feel in different parts of the world L’Oreal has acquired many different companies like “The Body Shop International plc”. This includes decisions about where to sell the product or concerns about where the customers are. 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). 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. 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. L’Oreal runs a massive worldwide operation employing nearly 62. . which has over 2. In past 100 years that it has expanded.000stores in more than 50 countries. With over a century of experience in the cosmetics industry. L’Oreal’s success in the cosmetic industry is due not only to their high quality. 4) PLACE To run a company in profit the place factor out of the 4p’s of marketing mix plays a very crucial role. It also includes the "channel of distribution" .trend of prevalence of Japanese cosmetic brand in Asia.

” Didier Villanueva. The high end skin care products like “Nutritionsite” are available only in selected retail outlets in country. In India Garnier manufactures its products in Pune whereas its registered office is in Mumbai.  Presence in Emerging Markets.“We have created a profession and a market. said. SWOT ANALYSIS OF GARNIER’S MARKETING STRATEGY Based on marketing strategy of Garnier as explained in this project we can show the SWOT Analysis of Garnier’s Marketing Strategy :Strengths  Strong and Focused Brand Portfolio.” Its sales in India. “ultra doux” etc is available in both organised and unorganized retail shops in India. L’Oréal India’s country manager. The theory is simple: If there is no natural demand for your goods. where it is No 2 behind Unilever.  Strong R&D Capability . hair color was the Paris-based group’s genesis and remains the creative heart of the business. Money-spinning massmarket brands such as Garnier are being pushed hard in India. In Indian market the hair care products of garnier like “garnier fructis”. L’Oreal has tie ups with many big beauty salons and parlours who can promote and sell its products. Although L’Oréal’s professional products division represents only 17 per cent of total revenues. stimulate it . Garnier products are easily available for sale on many websites in India. they are about €100 million (£71 million).000 hairdressers in India in the use of its products. 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. are growing at 35 per cent a year. where the company estimates there is a market of 50 million. “If you train people they will use your products. Over the past decade the company has trained more than 30. And it has helped to establish about 300 salons in the past five years.ANALYSIS OF INDIAN MARKET Garnier being an important brand of L’Oreal in both hair care and skin care is available all round the globe easily. This year.

Beauty products market growing with a significant rate. Growth in Adjacent Categories. Weaknesses  Dependence on Western European Markets  Late Entry into Asian markets  Unable to gain much of market share. Opportunities        M&A Opportunities. Variants available.  Geographical Coverage. Demand for Natural Cosmetics.  Price Competition among Branded Manufacturers . Rural market growth. Threats  Competition from Private Labels. Growth of Direct Sales Channels Changing Consumer Lifestyles.

organisational challenges and maintaining the company’s global culture. It was around the time when television viewing in India exploded and Indian women came to the forefront in international beauty pageants -two events that stirred consumer interest in cosmetics. BIBLIOGRAPHY 1) Secondary Data Resources 2) Consumer Survey . Disposable income and exposure to a globalised culture became key turning points. supply chain automation.CONCLUSION L’Oreal set up its wholly-owned Indian subsidiary operation in 1994 with the launch of its Garnier Ultra Doux shampoo products. But tangible changes were visible only five to seven years ago when women began joining the workforce in droves. The challenges that lie ahead with Garnier are innovating new products. knowledge of smaller markets.