You are on page 1of 40

Executive Summary

The application of the four Ps (Product, Price, Promotion, and Place) of marketing revolves
mainly around the customers in the target segment. The target segment for any product is that
homogeneous group of people which is purported to be the most potential customer for the
product. The market follows the Pareto Principle, which says that 80 per cent of the sales come
from 20 per cent of the people. Thus, for any product, 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. No surprise then that major marketing efforts of companies attempt to attract the
most potential group.
This project is an extensive study of the 4Ps analysis of the Garnier products. This detailed study
helped us in understanding the Price, Place, Product and Promotion aspect of the Garnier
products in the region of study i.e. Greater Noida and Noida. After having done this study we
were able to identify the pricing strategies followed by L’Oreal in terms of their product along
with their promotional strategy in the NCR region.
This case study also helps in getting an overview of the Indian skin care and hair care market
scenario, its growth trends, future prospects and opportunities available.
L'Oreal is one of the most successful International premium brands in India. This French brand
came to India in 1991 with its Ultra Doux range of Shampoo through its Agent Laboratories
Garnier. In 1994 Laboratories Garnier became the 100% subsidiary of L’Oreal.
In 2000 L’Oreal launched its range of cosmetics in to Indian market. The Indian Cosmetic and
skin care market is estimated to be around $300 Million. In this market the Color Cosmetic
segment is around Rs 250 crore while the Skin care segment is estimated
to be around Rs
400 crore.
L’Oreal’s strategy is to evolve Garnier into a master brand, stretching across categories that over
the next few years would include soap, body wash and facial care, similar to Unilever with Dove.
"Fructis shampoo and conditioner is core, and they are introducing styling aids as part of a mega
brand strategy.

1

OBJECTIVE:

The objective of our project is to comprehensively research on one of the most successful
sub-brands of L’Oreal- GARNIER.

Within Garnier, we have incurred a study on the hair care product range of Garnier that is
Garnier Fructis and Ultra Doux. We have essentially focused on shampoos and
conditioners.

Our research has been aimed at understanding the market share of Garnier within the
L’Oreal brand and among other brands. Also we have captured the market capabilities of
Garnier hair care shampoos and conditioners.

We have researched on the brand perception of the product by the customers and
customer loyalty towards the product.

We 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.

We have also focused on the current leading competitors of L’Oreal-Garnier and
conducted a brief study on their marketing strategies.

2

What is International Marketing?
International marketing is simply the application of marketing principles to more than one
country. However, there is a crossover between what is commonly expressed as international
marketing and global marketing, which is a similar term. For the purposes of this lesson on
international marketing and those that follow it, international marketing and global marketing are
interchangeable.
Note: Keegan’s definition is typical of those that see international marketing a one stage of an
internationalization process.

Scope of International Marketing
International Marketing constitutes the following areas of business:Exports and Imports: International trade can be a good beginning to venture into international
marketing. By developing international markets for domestically produced goods and services a
company can reduce the risk of operating internationally, gain adequate experience and then go
on to set up manufacturing and marketing facilities abroad.

Contractual Agreements: Patent licensing, turn key operations, co – production, technical and
managerial know – how and licensing agreements are all a part of international marketing.
Licensing includes a number of contractual agreements whereby intangible assets such as
patents, trade secrets, know – how, trade marks and brand names are made available to foreign
firms in return for a fee.

3

Joint Ventures: A form of collaborative association for a considerable period is known as joint
venture. A joint venture comes into existence when a foreign investor acquires interest in a local
company and vice versa or when overseas and local firms jointly form a new firm. In countries
where fully owned firms are not allowed to operate, joint venture is the alternative.

Wholly owned manufacturing: A company with long term interest in a foreign market may
establish fully owned manufacturing facilities. Factors like trade barriers, cost differences,
government policies etc. encourage the setting up of production facilities in foreign markets.
Manufacturing abroad provides the firm with total control over quality and production.

Contract manufacturing: When a firm enters into a contract with other firm in foreign country to
manufacture assembles the products and retains product marketing with itself, it is known as
contract manufacturing. Contract manufacturing has important advantages such as low risk, low
cost and easy exit.

Management contracting: Under a management contract the supplier brings a package of skills
that will provide an integrated service to the client without incurring the risk and benefit of
ownership.

Third country location: When there is no commercial transactions between two countries due to
various reasons, firm which wants to enter into the market of another nation, will have to operate
from a third country base. For instance, Taiwan’s entry into china through bases in Hong Kong.
4

Strategic alliance differs according to purpose and structure. L'Oreal is a listed company. Its closest global competitor in the premium make-up segment is Revlon. distribution network. Today. but the founder's daughter Lillian Bettencourt who is one of the richest people in the world. It has recently been replaced by "Because you're worth it". Strategic alliances: A firm is able to improve the long term competitive advantage by forming a strategic alliance with its competitors. increase the flow of innovation and increase flexibility in responding to market and technological changes. The objective of a strategic alliance is to leverage critical capabilities. L’OREAL – INTRODUCTION L’Oreal was founded in the year 1909 by Eugene Schueller. 5 . new technology and patent rights. concentrating on skin care. France. make up. a French chemist who developed an innovative hair color formula. It also reduces the level of competition for firms which either merge or acquires. the L’Oreal Group is the world's largest cosmetics and beauty company and is headquartered in the Paris suburb of Clichy. It got its start from the hair color business but soon it developed activities in the field of cosmetics. shampoo range Garnier. perfumes and hair care. and the Swiss food company Nestlé each control over a quarter of the shares and voting rights. Its portfolio of brands includes the cosmetics range of L'Oreal Paris and Maybelline NY.Mergers and Acquisitions: Mergers and Acquisitions provide access to markets. L'Oreal is active in the dermatological and pharmaceutical fields. luxury products such as Lancôme and active cosmetics such as Vichy. It is also the top nanotechnology patent-holder in the United States. L’Oreal famous advertising slogan is "Because I’m worth it". sun protection.

the behavior of the Indian consumers and has realized that the Indian consumer is not as price conscious as is portrayed. systems and structure. 6 .8 billion is small. and Japan bring together more than 3. The brand is more expensive than the average FMCG. The company’s growth in India can be attributed to its innovation of new products. Being the world’s second largest cosmetics major. who has been with the company for 20 years.India’s contribution to the growth of the global cosmetics market is about 60 percent. After identifying its targets. creating some 586 patents in 2004 alone. but offers a true value for money. L’Oreal’s methodologies for evaluating the safety and efficacy of ingredients and finished products. The Indian subsidiary headed by Chief Operating Officer Dinesh Dayal. professional products. It operates in India through its wholly owned subsidiary. The biggest contributor to its revenue in India is the consumer products division led by its strongest brand in terms of sales . product evaluation and claim substantiation are recognized by the international scientific community. L’Oreal India has recently setup its own manufacturing plant in Pune. L’Oreal’s research facilities in France. is one of the key officials responsible for the formation and operations of L'Oreal India. The group is taking the acquisition route to enter this niche sector. L’Oreal started its operations in India thirteen years ago.Garnier. supply chain management.000-crore Indian herbal and ayurvedic cosmetics industry. In India.000 scientists and research staff. L’Oreal’s innovations are patented. The beauty and the wellness sector in India are on a boom. active cosmetics and luxury products. L’Oreal has thus identified India as one of its top five growing businesses globally. L’Oreal India has discovered over the years. the L’Oreal advertising account is handled by McCann Erickson. L’Oreal is planning to foray into the Rs 1. It imports most of its products from its facilities abroad and manufactures the rest in Pune. Their discoveries are published in leading scientific journals. The share of the Indian market to L'Oreal's turnover of 15. the USA. L’Oreal India and has four divisions — consumer products. but is growing. L’Oreal India is in advanced talks with Boutique and VLCC to acquire herbal/ayurvedic cosmetics brands. The operations in India are conducted through a judicial mix of global and local methods of advertising to appeal to the Indian consumers.

many of the women and also the young people regain their confidence and their self image gradually by using the cosmetics which are provided by L’Oreal. L’Oreal in European Market L’Oreal is the only company which uses the strategies which also supports the people in many ways and not only in providing good quality products at cheaper rates. L’Oreal used different strategies of marketing in the European market like they used the strategy of nurturing selfesteem of the people with beauty. In the countries like UK and Germany. In European countries L’Oreal also used the marketing strategies like taking calculated amount of risk etc but most of the strategies are related to the growth of the people mentally and not only for the beauty or the fashion purpose. Various innovative treatment programs are launched by L’Oreal for the young people of European countries and this company also launches the free 7 . In France. L’Oreal created the programs like “Beauty from the heart” for helping the people made helpless by illness or any kind of negative life experiences.L’Oréal in international market 1.

This helps them to cope with the treatment’s side effects and it also helps them to retain their self esteem which is very important for a patient. L’Oreal has the twelfth largest media budget in the world which is much more than the other companies of this field. The reason for this much success is that L’Oreal uses very good global marketing strategies in North America and the other countries like Canada etc. In the European countries L’Oreal generally uses the strategy of the management of brand by which L’Oreal had made a large amount of brands which are rooted in the local culture and which all appeals to the various segments of the global market. L’Oreal in North American Market North American markets are considered as a perfect place for the companies like L’Oreal. de Plus Belle” offers the free skincare and makeup for the cancer suffering women in all over the France. ponds etc. Olay. Matrix is the number one brand of L’Oreal in US and the main reason behind the success of matrix is the frequent and distinct advertisement and promotion of the cosmetic and the hair products. The global ad spending of L’Oreal was increased to $1. One of the successful strategies of L’Oreal in US market is brand extensions which includes the extensions of the brands after doing a complete research. So by keeping this thing in mind L’Oreal uses the strategies of modifications which 8 . For example in the late 1990’s the expenditure of L’Oreal advertising and promotion was jumped from the 37% to around 47% of the total amount of sales. The best business of L’Oreal comes from the market of US. We can clearly understand the advertisement and the promotions of L’Oreal through their media budget.skincare and make-up workshops for the women suffering from cancer. For example when L’Oreal launched a shampoo for kids they firstly made a complete research and also debated about the new launch or for an extension. The people of countries like Canada like to use new products that mean they like changes in their product after some interval of time. By using these social types of strategies for the people of Europe has helped L’Oreal in expanding their business in the whole Europe. As we know in the present scenario proper advertisements and promotions are very important for any company because people follow the promotions and due to which the demands of the products like hair colour increases at a very rapid rate. 2.25 billion which was on par with the company named as coca cola. For example in France a programme named as “La Vie. In US and Canada L’Oreal uses the strategy of frequent advertisements and promotions. The best thing about this company is that they have a separate and very distinct policy of promotion in the market of US.

(L'Oreal's Global Branding Strategy) 4. (Helping vulnerable people) 3.mean they modify their existing products according to the latest tastes and fashion of the local people. L’Oreal uses a global marketing strategy of launching its successful brands all around the world. L’Oreal made an announcement of the arrival of the matrix which is the number one brand of L’Oreal in US to India. L’Oreal entered into the market of India in the year 1997 and at that there was not much awareness about the sniff of structure in the industry of hairdressing.02B) – a double digit growth in China for eight consecutive years (compared to a decline in sales in Western Europe and North America in 2008). IN UAE. L’Oreal gains a huge profit from Europe every year. L’Oreal in Africa. UAE etc with a reason of adding range of hair products to their existing products at affordable prices. In the countries like UAE and Australia. Orient and Pacific Region Like other countries in the world L’Oreal is also very successful and equally famous in Africa and pacific region. The main thing about this company is that they make strategies according to the local culture of different countries and not uses the same strategies in every country. For example in February of this year only. According to latest surveys of the people of L’Oreal company.95M RMB (USD $1. L’Oreal products which were professional began selling through parisienne salons while the other companies have begun retailing their range of hair color to power growth. majority of the profits of this company is because of US and these perfect strategies used by this company in US is the reason behind this type of success specially in north American market. L’Oréal uses a multi-brand strategy to cover the mass market in China. However. Because of all these strategies.7% year-over-year to 6. The best way to describe their diversified brands is that of a pyramid: 9 . Their sales in China last year grew 27. China If you compare L’Oréal with its competitors. compare L’Oréal’s growth in China and they are simply in a league of their own. proper and the organized education was totally absent and perfect and well trained hairdressers were also not present at that time. L’Oréal entered the China market late. Despite of all these problems L’Oreal in India made some of the strategies and one of the best strategies of L’Oreal is that they launched various technical training centers and they even opened a club of only the hairdressers.

10 . branding. Maybelline New York is fashion driven. road or any other mode. and specialized boutiques. L’Oréal products go through different tiers of sales channels including supermarkets. These products are sold in retail outlets. which meets the needs of Chinese consumers from a price sensitivity perspective namely due to the wide income gaps in China. Even the geographical factors plays a very important role that Loreal should take into consideration in order to have feasible trade . high-end department stores. and specialized boutiques. Even L’Oréal brands have their own unique ‘personality’ – L’Oréal Paris is a high-performance technology brand. The very top of that pyramid is reserved strictly for the high-end products such as Lancome. and Kiehl’s. All marketing related activities and promotional strategies are designed taking into consideration the Cultural Background of the particular region where the company is planning to launch its products and the Services. and sales distribution all contribute to L’Oréal’s success in cornering the beauty and cosmetic market in China today. which leads to decide whether to use air . Now beyond price.At the base of the pyramid comprise of L’Oréal Paris. and Mini-Nurse – all products that target the mass market. and Garnier is often characterized as a natural brand. and Matrix make up the middle of this pyramid. their tastes and preferences . than only they can succeed. Shu Uemura. These products are sold in pharmacies and hair salons meant for consumers looking for that mid-level quality of products. Diversity in products. Kerastase.Oreal knowledge of variant Culture is of great importance so as to make a company acquire a firm base in the market of any country. If any company fails to take into consideration any cultural aspect and the other related factors that it might affect the company to stay for a longer time and would be thrown out of the market and the region. When an MNC explores any market for selling its specific services or product it has to focus majorly on the purchasing power of the customers. Each level of L’Oréal brand pyramid occupies a certain price area. as the landscape and conditions of transport might differ in every region. Understanding of different cultural distinctions for international market For L. Brands such as Vichy. Maybelline Garnier. department stores. hair salons. pharmacies. Biotherm. In order to succeed it is very essential for a company to understand the different cultural distinctions between the different cultures.

So it becomes the responsibility of the Company to do a proper scanning of these factors in order to have their longer stay in the region so that they can attain a Top most Competitive position by adapting to various regions cultural factors in their Global marketing Strategies. etc also cannot be the same for different employees working for the company in the different nations and thus it also needs the understanding of different aspects of the impacts of the cultural differences.The same reward schemes. Therefore the major things that should be kept in mind for L’Oreal while doing globalised business is to form an effective global strategic team for defining the trading policies to work in any country. it nourishes. North American Market or the Pacific Region .an innovative combination of vitamins B3 and B6. Gentle enough for everyday use. everywhere the culture differs in terms of varied factors. moreover the varying lifestyles of the peoples and the rapidly changing economies even should also be kept in mind. economic policies of the country etc. Whether its an Asian Market. The strategy of globalization should encompass of major factors like cultural differences. fructose and glucose. European market. motivational methods. keeping it 11 . desired working environments. STUDY OF 4 P’S OF GARNIER HAIR CARE PRODUCTS • Garnier Fructis Daily Care Garnier Fructis Daily Care is fortified with Reinforced Active Fruit Concentrate . strengthens and smoothes each hair strand. Proper analysis of the Macro and the Micro Environmental factors should be done in order to study how much technological and economical and politically that country is sound in order to carry out trade with them.

Hair is up to 5 times stronger. up to 5 times smoother and so much shiny 12 . Moisture is replenished and brilliant shine returns. up to 5x smoother and so much shinier. • Garnier Fructis Color Shield Garnier Fructis Color Shield is fortified with UV protestant and Reinforced Active Fruit Concentrate . Specially created to care for color-treated or highlighted hair. up to 5x smoother and so much shiner. brittle or dry hair. fructose and glucose. Hair is up to 5x stronger. it penetrates inside the hair to moisturize and strengthen it.this creamy system helps restore moisture in dull. Hair is up to 5x stronger.an innovative combination of vitamins B3 and B6.balanced and healthy-looking.  Garnier Fructis Moisture Works Drench your hair with moisture! Fortified with Reinforced Active Fruit Concentrate . the formula helps keep your color-treated hair brilliant and shiny on the outside. so color looks brilliant longer. With UV protestant. fructose and glucose . The result: Great-looking hair that is anything but ordinary.an innovative combination of vitamins B3 and B6.

Specially created for hard-to-grow-long hair. unmanageable hair and contains Nutritive Fruit Micro-Oils . 13 . Hair is 5x stronger. even with moisture in the air. and vitamins B3 and B6.an innovative combination of apricot and avocado oils. protecting it from breakage and split ends. It's the first anti-breakage system with Reinforced Active Fruit Concentrate an innovative combination of vitamins B3 and B6. 5x smoother and so much shinier. this system reinforces hair.• Garnier Fructis Sleek & Shine Can your frizzy. fructose and glucose. coarse. It's specially created to smooth dry. rebellious hair withstand even the most humid weather? Get the strength to fight frizz with Garnier Fructis Sleek & Shine. • Garnier Fructis Length & Strength Impossibly long locks aren't impossible with Garnier Fructis Length & Strength! Stronger hair grows even longer. The result: Long-lasting frizz control for hair that's incredibly sleek.

a combination of apricot and avocado oils . The formulas with Nutritive Fruit Micro-Oils . but ruthless on dandruff. Garnier Fructis Anti-Dandruff Soothe your scalp! Created with Pyrithione Zinc and Active Fruit Concentrate . 14 .nourish hair. effective with the first wash. and Creamed Reconstruct or to help repair and fortify hair. fructose and glucose . • Garnier Fructis Strength & Repair Garnier Fructis introduces the Strength & Repair System to help reverse the signs of damage in one week.this double-action formula is gentle on your scalp. and makes your hair up to 3 times stronger! The result: No flakes guaranteed. repaired from the inside out and more resistant to breakage. It helps eliminate the symptoms of dandruff. It's a powerful force for healthy-looking hair and the confidence that comes with it.an innovative combination of vitamins B3 and B6. leaving hair intensely nourished.

Customers. Like viruses. to millions. The beauty of this marketing technique is that none of it requires any marketing. and make it so compelling that recipients want to pass it on to everyone in their address book. the consumers were bitten. and the idea of putting consumers to work spreading the word about a brand or service seems sound. such strategies take advantage of rapid multiplication to explode the message to thousands. There are some high-profile viral success stories. viral marketing has been referred to as "word-of-mouth''. By simply sending an e-mail.PROMOTION Garnier has been very active and upfront in adopting new promotional techniques to market its products. Off the Internet. 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. "leveraging the media'' and even "network marketing. And corporate are using the medium to circulate brands and brand messages. What is unique about the concept is that where brands or brand ideas are exchanged within communities. who have caught the virus. In most cases. The idea has caught on like a virus. creating the potential for exponential growth in the message's exposure and influence. "creating a buzz''. consumers hawked the service because every message contained a Hotmail ad that helped it grow to 12 million accounts in its first year. way back in 1996. Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others. 15 . The 1999-hit film 'The Blair Witch Project' also benefited from a similar contagion. as efficiently as Information Technology has entered households and businesses. do the selling. they are idea-led. The company follows a very popular technique to advertise and market its products that is the Viral Marketing policy. send it via e-mail.'' It's a deceptively simple concept: Create a message. Viral marketing is a term coined to define the productive ways a marketing message is made available. not advertising-led. the film's promoters hinted that the fictional tale was really a documentary and let the bug run wild. On web sites and in chat rooms. Advertisers are hot on the tactic. Like Hotmail.

a daughter advises her mother to try the product and thus makes an attempt to promote product among middle-aged women. companies should adopt line extensions by bringing suitable changes in the products.When Garnier launched its Fructis shampoo. The knot creation was actually created (visually presented on the site) and as a next step. It may be damaging. Viral marketers practice delayed gratification. At the same time. This is very evident from Garnier ads be it for Garnier Fructis shampoos or for hair color.000 of their friends. as part of their entry into the contest. but if they can generate a groundswell of interest from something free. especially. a survey report indicated. companies need to be sensitive about the impact of targeting other segments on the existing target segment. They may not profit today.000 consumers created their own knot on the braid and forwarded the link to more than 82. Garnier has positioned itself as a lifestyle product mainly targeting teenagers and young girls. Companies need to be very strategic in presenting the product and its features to attract another segment. more importantly. The idea is to give away valuable products or services to attract attention. someone else's resources are depleted rather than our own. or tomorrow. And. expanding the base of the target segment gives a whole new market to marketers. consumers were expected to invite their friends to visit the braid and add to their score. they know they will profit soon and for the rest of their lives. provided they are successful in convincing the customers of the second-rung segment. A record 76. 16 . most viral marketing programmes have attached themselves to it. if in a process of expanding its customer base. Hence. In a recent advertisement of Garnier hair color. they latched on to the idea. Since 'Free' happens to be the most powerful word in a marketer's vocabulary. a premier brand is targeted at the aspiring middle-class also. 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. In case of any signals of lowering demand with the existing target group.

The sixmonth 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. This was particularly true for fair-haired Western women with layered styles and blonde highlights. a visit to a hairdresser in India has traditionally been something of a hair-raising experience. The solution for L’Oreal. Above a bank in north Bombay. no less – rather than fancy conditioners.” said Ruchi Khater. “Everyone is very particular about their hair these days. 73 hairdressers have graduated. 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. who are earning their own money and are potential customers for a host of products. was to create a market from scratch.Advertising and marketing specialists are aiming at young. Most still use hair oil vegetable oil. urban Indian women. Their natural tone is dark and they prefer home remedies recommended by their mothers. the world’s largest beauty and cosmetics group. from beneath a stack of silver foil at L’Oreal’s hairdressing academy. They learnt the hard way that Indian hairdressers know little of color beyond a jet-black rinse or a streak of henna. straight hair. For a customer who needs more than a trim. cosmetics and new cars. including namebrand clothes. 17 . Since it opened its first academy in Bombay in 2006. Promotional Strategy The cosmetics giant is using hairdressing schools to stimulate demand for products many Indians saw as an alien extravagance. That is not surprising as 85 per cent of Indian women have long. It is a challenging environment for any company trying to sell packaged beauty products – to the majority of India’s 1.1 billion people they are not only alien but also an extravagance.

which launched an Indian edition in September. are growing at 35 per cent a year. as one of its international faces. In a media-driven culture obsessed with Bollywood. where it is No 2 behind Unilever. L’Oreal. Unprecedented economic growth in India. the recent decision by Mahendra Singh Dhoni. “If you train people they will use your products. said. 18 . This year.440) each. “We have created a profession and a market. Its sales in India. estimates there are 70 million potential consumers being created every year. And it has helped to establish about 300 salons in the past five years. “Most who come do not know how to hold scissors or use a blow dryer. which is forecast by McKinsey to become the world’s fifth-biggest consuming nation by 2025. which uses Aishwarya Rai. stimulate it. they are about €100 million (£71 million). to chop his long locks made front-page news. said. They read glossy magazines such as Vogue. the Bollywood star and former Miss World.” Caroline Lannuzel. L’Oreal India’s country manager. My mother’s generation did not have a clue because there was no exposure to these things. got in.” Didier Villanueva. the 26-year-old captain of the one-day cricket team and the face of Brylcreem in India. a former model. urban consumers are very demanding and image is everything. “People did not know what a bad haircut was. who pay 200.000 hairdressers in India in the use of its products. Sohini Rohra. has created a raft of opportunities for international lifestyle brands. 24.” The students. Competition is strong with more than 50 applications for 15 places. Emerging markets such as India are driving the growth of the cosmetics industry.” she said. academy director. and follow the changing fashions of their favourite celebrities. are green to say the least. The theory is simple: If there is no natural demand for your goods. Much like Britain’s tabloid fascination with David Beckham’s changing hairstyles.L’Oreal’s distribution network also plays a vital role.000 rupees (£2. Over the past decade the company has trained more than 30.

Although L’Oreal’s professional products division represents only 17 per cent of total revenues. hair color was the Paris-based group’s genesis and remains the creative heart of the business. Two thirds of the population is under 35: youth will drive growth. the beauty salon group. Money-spinning mass-market brands such as Garnier are being pushed hard in India. In the L’Oreal academy. it has at least two new potential customers. also has a hairdressing academy in Bombay and Toni & Guy opened a salon this year. L’Oreal hopes that very soon it will be because they think they’re worth it. Its rivals agree. where the company estimates there is a market of 50 million people. Franck Provost. 19 .

Mr. Thus. 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. However there is no hard and fast rule Besides. For instance its Garnier brand of Color Naturals is an `Indianite' product. 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. Marketing Manager. for any product. For aspiration products Garnier has adopted an international pricing strategy. In the present stage of immense competition. L'Oreal Consumer Products.In India. The market follows the Pareto Principle. told Business Line that. Considering the large number of SKU's that we already have worldwide. advertisements for L’Oreal-branded products and the company's Garnier line generally feature a pale model and focus on the ingredients in the product. 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. which says that 80 per cent of the sales come from 20 per cent of the people."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. No surprise then that major marketing efforts of companies attempt to attract the most potential group. 20 . Ashwin Rajgopal. it has been easier for it to control its prices in the Indian market. "We are looking at pricing in the Indian context and there is a kind of balance we have struck. 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. Trying to strike a balance in its pricing strategy for the Indian market. using take-action language like "YES to fairer and younger looking skin" or "Against inside cell damages." Considering the company has set up its manufacturing facilities in Pune and has also been subcontracting its products.

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. L'Oreal relied on distribution channel to carry out its strategy of brand structure. the core technology platform is a key component to the success of an international company with complicated brand house. L'Oreal not only focuses on the single brand but also pays attention to the technology relevancy in the series of brands. L'Oreal also exerts the technology platform to meet the specific needs of consumers. The broad distribution channel of consumer products was used to promote this technology at last. L'Oreal has formed a brand matrix with great power of integration. 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. L'Oreal first introduced a break through anti-aging composite by using Lancôme brand. The innovations based on the same technology platform will reduce the cost. They are conspicuously different in packages and with distinct image and advertising.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. L'Oreal recognized the leverage effect of it brand and focus its propagandas on brand rather than propagandas on particular product. It is dedicated in building the relationship between its brand 21 . Every department has several brands and each brand has many names. The most important sector consumer products are distributed through mass consumption channel like department store and supermarket. Professional products are provided to the hairdressers. perfumeries and tax free shop. it was implemented in Vichy brand and brought into the consumer product division eventually. In term of same products in the different market. The different brands share the resources of distribution channel and have high integration effect on management. Active cosmetic products are sold in pharmacists. There are four product departments in L'Oreal’s structure. Subsequently. The luxury brands of L’Oreal are sold in strictly selected distribution channel like department store. Without leveraging the resources between brands. From L'Oreal’s experiences. For example. 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. Other than building the brand structure according to the product identity. The dissemination of brand will improve company’s overall influential power.

It achieves rapid growth by acquiring brand in same or related business and is continually seeking these opportunities in the worldwide scope. L'Oreal expanded its brand architecture by acquiring Maybelline brand in 1996. These acquisitions represent L'Oreal’s ambition to Asian market. 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.and the market. This commitment by the corporation to take care 22 . By acquiring Shu Uemura. This is considered to be an effective and cost-efficient strategy which is consistent with L'Oreal’s overall brand architecture PLACE To run a company in profit the place factor out of the 4p’s of marketing mix plays a very crucial role. The Maybelline’s image was enhanced by branded L'Oreal while L'Oreal got complementary in its brand architecture. L'Oreal want to use this Japanese brand to compete with SK-…¡which was a competitor in the same level. L’Oreal runs a massive worldwide operation employing nearly 62. The corporation has made sure that all their employees have opportunities to develop themselves both personally and professionally. Firms that aim to expand internationally or strengthen market position tend to acquire new brand into the brand architecture. It is also a preparation for the future expansion in the most fast-growing market China. Acquiring influential and well positioned brand is an important strategy of L'Oreal in developing its brand architecture. In China the acquisition will enhance L’Oreal’s market position in skincare and acquire distribution channels Manicures had. L'Oreal’s efforts were also embodied on its marketing strategy.meaning. and how to get to them. backgrounds and religions across nearly 60 countries. which was a very successful transaction. It always concentrates on supporting those brands which can mostly represent its advantages and leverage resources to those premium products. It aims to enhance brand power by maintaining the good image in publicities.000 men and women of various races. This includes decisions about where to sell the product or concerns about where the customers are. It also includes the "channel of distribution" . Recent years in Asia. They have the same product business with L'Oreal. it acquired the third skincare brand Manicures in China and Japanese top luxury brand Shu Uemura. all the different middlemen a company use to get the product out to the customer. in order to meet the trend of prevalence of Japanese cosmetic brand in Asia.

L’Oreal’s success in the cosmetic industry is due not only to their high quality. known as The Body Shop. In past 100 years that it has expanded.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. With over a century of experience in the cosmetics industry. it has supplied to 130 countries with offices in 58 different countries. but also to the corporation’s marketing efforts to make sure their various brands have a strong market presence. L’Oreal has established 19 global brands and produces them in 40 factories across the world. 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). To make its presence feel in different parts of the world L’Oreal has acquired many different companies like “The Body Shop International plc”. which has over 2. 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. 23 .000 stores in more than 50 countries.

L'Oreal has been relying more on its international campaigns to make an impact in the Indian market. 24 ." says Mr. Garnier. L'Oreal and Maybelline have been defined by their price segments and positioning. Rajgopal. McCann Erickson in Mumbai handles the L'Oreal and Maybelline account while Publics India is in charge of Garnier. skin care and color cosmetics brands. "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.Relying on international ad campaigns: Increasing its ad spend for the launch of its new products. L'Oreal India currently has three brands in its consumer products portfolio and there are product overlaps between its hair care.

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. said.” Its sales in India. 25 . “We have created a profession and a market. “ultra doux” etc is available in both organized and unorganized retail shops in India.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. In Indian market the hair care products of Garnier like “Garnier Fructis”. This year. Although L’Oréal’s professional products division represents only 17 per cent of total revenues. they are about €100 million (£71 million). stimulate it. L’Oréal India’s country manager. Money-spinning mass-market brands such as Garnier are being pushed hard in India. L’Oreal has tie ups with many big beauty salons and parlors who can promote and sell its products. Garnier products are easily available for sale on many websites in India. hair color was the Paris-based group’s genesis and remains the creative heart of the business. Over the past decade the company has trained more than 30. The theory is simple: If there is no natural demand for your goods. In India Garnier manufactures its products in Pune whereas it’s registered office is in Mumbai.” Didier Villanueva. where it is No 2 behind Unilever. “If you train people they will use your products. where the company estimates there is a market of 50 million. are growing at 35 per cent a year.000 hairdressers in India in the use of its products. And it has helped to establish about 300 salons in the past five years. The high end skin care products like “Nutritionist” are available only in selected retail outlets in country.

SWOT ANALYSIS OF GARNIER PRODUCTS Strengths  Strong and Focused Brand Portfolio.  Price Competition among Branded Manufacturers.  Rural market growth.  Variants available.  Unable to gain much of market share. 26 . Demand for Natural Cosmetics. Weaknesses  Dependence on Western European Markets  Late Entry into Asian markets.  Geographical Coverage.  Presence in Emerging Markets.  Beauty products market growing with a significant rate. Opportunities M&A Opportunities.  Strong R&D Capability. Growth of Direct Sales Channels Changing Consumer Lifestyles. Growth in Adjacent Categories.      Threats  Competition from Private Labels.

43% are working and the remaining 57% are not working and are mostly students. GARNIER USAGE AMONG WORKING RESPONDENTS 30% USE 70% 27 DON’T USE .DATA ANALYSIS TOTAL NUMBER OF WORKING AND NON WORKNG RESPONDENT 57% WORKING 43% NOT WORKING The above pie diagram indicates that out of the total 100 respondents surveyed.

only 30% of them don’t use any of the Garnier products. the brand has a good popularity. GARNIER USAGE AMONG NON WORKING RESPONDENT 16% USE DON’T USE 84% Out of the 57 non working respondents surveyed. USAGE FREQUENCY AMONG WORKING RESPONDENTS 28 . be it in skin care or hair care. The respondents so surveyed were well aware about the brand and were also aware about almost all the product lines being offered by Garnier. the remaining 70% of the working respondents use Garnier products.Out of the total 43 working respondents surveyed. The inference that can be drawn from the above two pie charts is that irrespective of whether the consumers are working or are students. about 84% of the respondents use Garnier products which means about 47 out of 57 people use Garnier products and 16% of the respondents don’t use any of the Garnier products. This means that the brand has successfully caters to the needs of the youth as well as people falling in the age bracket of 35 to 55. This indicates that the brand is popular amongst the working people. This result indicates that Garnier has a well defined target market catering mainly to upper middle class consumers which is mainly why the working respondents are frequent users of different products of Garnier. This again indicates that the brand is popular among even the non working respondents who are majorly students in our survey.

22% 9% fortnightly monthly 3months 70% Out of the 29 people using Garnier products. 29 . 69% of the respondents purchase the products on a monthly basis and 22% of them purchase the products once in three months. The result of this data is very much similar to that of the working respondents. This indicates that the buying pattern of customers is more or less the same irrespective of their occupation. 33% of them purchase the products once in three months and a majority of 58% of the customers purchase the products on a monthly basis. only 3% purchase the products fortnightly. 9% of the respondents purchase Garnier products fortnightly. This also indicates that there is easy availability of Garnier products at almost all retail outlets. USAGE FREQUENCY AMONG NON WORKING RESPONDENTS Out of the 36 respondents who use Garner products. This indicates that a majority of respondents are frequent users of Garnier products. about 6% purchase the products weekly.

30 . 19 feel that the products are available only at selective stores and only 1 respondent felt that the products are not easily available at all. 16 respondents feel that the products are readily available at all stores.6%3% fortnightly 33% monthly 3months weekly 58% AVAILABILITY OF GARNIER PRODUCTS 40 35 30 25 not working 20 working 15 10 5 0 every store selective stores nt available The above data gives a combined interpretation for both working and non working respondents that out of 29 working respondents. 10 feel that Garner products are easily available at every store while 19 feel that they are available only at selective stores and out of 36 non working respondents.

PRICE OF GARNIER PRODUCTS 100% 80% 60% 40% 20% 0% 1 0 WORKING 20 15 15 14 NOT WORKING The graph states that out of 29 working respondents. In case of the 36 non working respondents. A combined interpretation of this can be that about 50% of both working respondents as well as students feel that the prices of all the Garnier products are slightly overpriced.The combined interpretation of this result indicates that the distribution network of Garnier is not very strong which leads to the unavailability of Garnier products quite often. 15 feel that Garnier products are slightly overpriced and about 14 feel that the products are perfectly priced while none of the working respondents feel that the products are highly overpriced. This is because Garnier caters mainly to the middle class and the upper middle class consumers with a prime aim of providing good quality products to its loyal customers. This means that Garnier does not have a prime aim to offer the products at reasonable or affordable prices for all segments of consumers. 20 feel that Garnier products are slightly overpriced while 15 feel that the products are perfectly priced. Hence there is not much easy accessibility to Garnier products in general be it skin care or hair care. SATISFACTON LEVEL 31 .

The common interpretation out of this result can be that a majority of customers find Garnier products satisfactory which leaves some scope for improvement in the quality of products being offered by Garnier so that it can attract more customers thereby expanding the existing customer base. PRODUCTS USAGE 28 Body Lotion 49 14 Moisturiser 63 4 73 Anti Wrinkle Cream 2 75 Dark Circle Removal Cream 23 Fairness Cream Anti-Ageing Cream 54 3 20 Hair Color Acne Removal Cream Facewash User 57 8 69 39 38 57 Shampoo & Conditioner 0% Non-User 74 20% 20 40% 32 60% 80% 100% . 2 respondents found the products highly satisfactory and a majority of 33 people found them satisfactory. While out of the 36 no working respondents surveyed. about 5 found Garnier products highly satisfactory and a majority of 24 found the products satisfactory while none of the working respondents found them below satisfaction levels. Only 1 person out of the non working respondents found the products below satisfaction levels.35 30 25 20 15 10 5 0 WORKING NOT WORKING Out of the 29 working people surveyed.

Fairness Cream by 23 people. This data suggests that TV is the most popular source of information and awareness regarding Garnier products. Dark Circle Removal Cream by 4 people. 77 answered that they use Garnier products. Anti-Ageing Cream by 3 people. This data suggests that Shampoos & Conditioner are the most popular of Garnier products. 77 answered that they use Garnier products. Anti Wrinkle Cream by 2 people. AWARENESS Awareness 80 60 40 20 0 74 21 20 7 Awareness Out of the 100 people surveyed. Shampoo & conditioner is used by 57 people. Moisturiser by 14 people and Body Lotion by 28 people. Acne Removal Cream by 8 people. The chart above depicts the usage of different products by these 77 people. 21 by newspaper and magazines. Facewash by 39 people. We gathered information through our survey that how a respondent came to know about Garnier products. Hair Color by 20 people. 33 .Out of the 100 people surveyed. 74 respondents answered that they came to know about Garnier products through television. 20 by word of mouth and 7 through internet.

rest 4 people (18%) do not find Garnier products effective. 5% 3. 14 people (64%) are happy with their current brand and have not tried Garnier yet. 64% Unawareness Out of the 22 respondents who do not use the Garnier products. 34 . 14% Price Not Effective 4. the other 3 people (14%) finds the price of the garnier products as the main reason for not using it.Reasons for Not Using Garnier Products 1. 18% Happy with Current Brand Availability 14. Thus if Garnier needs to make the customers use their products for once and be able to stand on their expectations.

the investigation perspectives have been thrown. As the study has been conducted.  Only 40% of the users said that garnier products are available at every store.  Among the non users of the Garnier products 64% are happy with their current brand.  84% of the total non working respondents use Garnier product. in the context of Indian customers (where interviewed customers are from Noida and Greater Noida).  Shampoos & Conditioner are the most popular Garnier products. 18% find Garnier products ineffective and 14% people find the price of the products a major concern.  82% of the Garnier users are satisfied with the products. putting aside the motives outside India.  TV is the most popular source of information and awareness regarding Garnier products.CONCLUSION The present study comes to the floor with the revelations having exciting and full of curiosity determinants in relation to the specified objectives to understand and analyze the 4P aspects of marketing for Garnier. conditioning the specified motives of Indian people. Further the study helped in identifying the reasons which stops the customers to buy Garnier Products over other products and to understand customer Brand knowledge with regard to Garnier. The research conducted was also helpful in identifying the frequency of purchase and usage of the Garnier products. 35 . Following are the few key findings of the study:  70% of the total working respondents use Garnier products.

36 . Almost 64% people are happy with their current brand and do not want to switch to Garnier products thus it needs to make the customers aware of the products. Introduce herbal product lines as the customer is getting more inclined towards herbal products. Improve upon online sales service in tier 1 and tier 2 cities taking the time constraint of the customers in the picture. product binding schemes and even surrogative marketing. and face wash etc. conditioner. Garnier need to adopt different promotional mediums like internet.RECOMMENDATIONS It needs to improve the availability network of the product so as to reach a large customer base because 60% of the respondents feel that it is available at selective stores only. hair color. As boys are also becoming looks conscious so the male beauty segment can be one area of focus. Introducing a low price product line for the rural market. It is still considered as a product for youth so it needs to target the people in the age group of 35 and above. magazines. Make the consumers aware of all the products other than its flagship products like shampoo.

2. You use : a) Hair Care Products ____ b) Skin Care Products ____ c) Both ____ 3. You buy Garnier products:  Weekly  Fortnightly  Monthly  Once in 3 months 4. If Yes. What product(s) of Garnier you purchase?  Shampoos & Conditioners 37 d) Above 50000 . c) 25000-50000 You use Garnier products.QUESTIONNAIRE RESPONDENT PROFILE Area of Residence: Age : Gender : Male____ Female____ Your monthly household income: a) Below 10000 b) 10000-25000 1. Regularly_____ Rarely _____ Sometimes____ Never ____ If “No” go to question number 10.

The price you pay for the Garnier products is:  Highly overpriced  Slightly overpriced  Perfectly priced  Under priced 38 . The variant of Garnier that you use is available at: 6.  Not available in your area.  Every store.  Selective stores. Face wash  Acne Removal Ointments  Serum  Gel  Mousse  Hair Colors  Anti ageing Cream  Fairness Cream  Anti Wrinkle Cream  Moisturizer  Body Lotion  Anti Dark Circle Cream  Any Other___________________ 5.

10. How did you get to know about Garnier products?  TV  Newspaper/Magazines  Word of Mouth  Internet  Any Other___________ 8. How do you find Garnier products?  Highly satisfactory  Satisfactory  Not satisfactory.A You do not use Garnier because of: a) Price b) Effectiveness d) Availability c) Happy with current brand e) Unaware of the product 39 f) Any other reason__________ .7.

www. www.com 3.com 4.com 40 .hindubusinessline.equitymasters.scribd.REFERENCES 1. www.com 6.L’Oreal. www.com 5.com 7.google.garnier.com 2. www. www. www.managementparadise.