A Report on

“Exploring the market of pre-cut aluminium foil sheets in the beauty industry.”

for

on
31st May 2008

in
partial fulfillment of the requirement for the
Summer Training Project in
Post Graduate Program in Management

by
Aditi Srivastava

Under the guidance of

Project Giude: Mentor:

Amitabh Babbar Prof. Anantha Murthy
AGM (Sales and Marketing) Indian Business Academy
Consumer Products Bangalore
Hindalco Industries Ltd.
Mumbai.

1 11/16/2008
 CEO’s Certificate

This is to certify that Ms. Aditi Srivastava is a bonafide student of Indian Business
Academy, Bangalore. She is presently pursuing a Post Graduate Program in
Management.

She has submitted her project report titled “Exploring the market of pre-cut aluminium
foil sheets in the beauty industry” under my guidance, in partial fulfillment of the
requirement for the summer internship project during the Post Graduate Program in
Management.

This report has not been previously submitted as part of another degree or Diploma of
any other Business School or University.

Mr. Manish Jain, CEO, Indian Business Academy

INDIAN BUSINESS ACADEMY
Lakshmipura, Thataguni Post
Kanakpura Main Road,
Bangalore – 560 062
INDIA
Tel: +91-80-28435931/32/33/34
Fax: +91-80-28435935

2 11/16/2008
 Dean’s Certificate

This is to certify that Ms. Aditi Srivastava is a bonafide student of Indian Business
Academy, Bangalore. She is presently pursuing a Post Graduate Program in
Management.

She has submitted her project report titled “Exploring the market of pre-cut aluminium
foil sheets in the beauty industry” under my guidance, in partial fulfillment of the
requirement for the summer internship project during the Post Graduate Program in
Management.

This report has not been previously submitted as part of another degree or Diploma of
any other Business School or University.

Prof. Subhash Sharma, Dean, Indian Business Academy

INDIAN BUSINESS ACADEMY
Lakshmipura, Thataguni Post
Kanakpura Main Road,
Bangalore – 560 062
INDIA
Tel: +91-80-28435931/32/33/34
Fax: +91-80-28435935

3 11/16/2008
 Internal Guide’s Certificate

This is to certify that Ms. Aditi Srivastava, is a bonafide student of Indian Business
Academy, Bangalore. She is presently pursuing a Post Graduate Program in
Management.

She has submitted his project report titled “Exploring the market of pre-cut aluminium
foil sheets in the beauty industry” under my guidance, in partial fulfillment of the
requirement for the summer internship project during the Post Graduate Program in
Management.

This report has not been previously submitted as part of another degree or Diploma of
any other Business School or University.

Prof. Anantha Murthy, Internal Guide, Indian Business Academy

INDIAN BUSINESS ACADEMY
Lakshmipura, Thataguni Post
Kanakpura Main Road,
Bangalore – 560 062
INDIA
Tel: +91-80-28435931/32/33/34
Fax: +91-80-28435935

4 11/16/2008
 Student Declaration

I, Aditi Srivastava, the undersigned, a student of Indian Business Academy, Bangalore,

declare that this project report titled “Exploring the market of pre-cut aluminium foil
sheets in the beauty industry” is submitted in partial fulfillment of the requirement for the
summer internship project during the Post Graduate Program in Management, a
prestigious Post Graduate Diploma awarded by Indian Business Academy, Bangalore.

This is my original work and has not been previously submitted as a part of any other
degree or diploma of another Business school or University.

The findings and conclusions of this report are based on my personal study and
experience, during the tenure of my summer internship.

Aditi Srivastava PGPM 2007-09

INDIAN BUSINESS ACADEMY
Lakshmipura, Thataguni Post
Kanakpura Main Road,
Bangalore – 560 062
INDIA
Tel: +91-80-28435931/32/33/34
Fax: +91-80-28435935

5 11/16/2008
 Acknowledgement

I am sincerely grateful for the assistance of several individuals, who have contributed
towards fulfillment of this report. The knowledge, experience, guidance and the most
important factors – support from these people are indeed valuable.

I am extremely grateful to Mr. Amitabh Babbar, AGM (Sales and Marketing) Consumer
Products, Hindalco Industires Ltd. (Foil Division) and Ms. Shilpi Srivastava, Senior
Officer- HR, Foil and Wheel Business, Hindalco Industries Ltd. for giving me an
opportunity to work on the project “Exploring the market of pre-cut aluminium foil sheets
in "beauty care" segment, arriving at the SKU required, designing the packaging for the
application, launching this in the city of Mumbai, and preparing a blue-print for launch
in other cities”.

I express my sincere gratitude to Mr. Manish Jain, CEO, Indian Business Academy
Mr. Subhash Sharma, Dean, Indian Business Academy and my guide, Prof.
Ananthmurthy for their valuable inputs. I would like to thank Indian Business Academy
for giving me the platform to gain practical exposure apart from the regular curriculum
and to experience life from its near distance.

Aditi Srivastava

6 11/16/2008
 Table of Contents

Executive Summary 8
Aditya Birla Group 10
Hindalco Industries Ltd. 13
Aluminium Industry – An Overview 16
About the Project 19
Step 1: Market Survey
Step 2: Designing the SKU required
Step 3: Recording Customer Reaction
Step 4: Deriving a price
Step 5: Brand Name and Tagline
Step 6: Launching the Product
Step 7: Estimated Consumption of the Product
Graphical Findings from the survey 29
Exhibits 41
Bibliography 48

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 Executive Summary

Backed by over four decades of experience and expertise, Hindalco today enjoys
a domestic market share of more than 40 per cent in the foil packaging business.
Aluminium foil is has been widely in use for food packing since long. Hindalco entered
in to this industry to create the market for aluminium foil. So Hindalco made an attempt
to identify whether aluminium foil can be used for some other fruitful purpose other than
food packing. For this purpose the Consumer Products Division was evolved. The CPD
team is committed to increasing usage of aluminium foil in India. The domestic
aluminium foil and packing industry has witnessed decent growth on recent times. This
has been helped by the onset of organized retail wherein quality product offerings get
preferred placement.
A number of beauty salons in India are using household foils for the process of
highlighting hair. Highlighting, or streaking is meant to add depth to hair by adding
lighter colors, to strands of the hair .The CPD sees a potential in this market segment and
wants to explore the needs of this segment and accordingly arrive at the SKU required
and successfully launch such a product.

Stage 1: Market Research: Primary research carried out to evaluate the needs of the
market. The survey was conducted to find out the response of the salons regarding the
concept of a customized hair foil which would reduce wastage and be less time
consuming.

Stage 2:Designing the SKU required: After the survey if there was any positive
response from the salons then the next task was to ask them about their requirements in
the foil in terms of dimension, cost and other features and then design the product as per
the requirement. This step involves the developing of the product based on the market
research carried out. After the survey if there was any positive response from the salons
then the next job was to ask them about their requirement in the aluminium foil in terms
of cost and other features and then design the product as per the requirement.

8 11/16/2008
Stage 3: Sampling: This stage required the SKU to be distributed to a few select salons
to test the product. This stage will help us find out whether the concept of customizing
the foils will be accepted in beauty segment.

Stage 4: Product and Packaging Design: In this stage, the product is to be designed
incorporating the feedback received from the sampling. This would also include deciding
the size (length & width) & thickness of aluminium foil cut sheet, specs of interleaving
paper, the pack size and the packaging design for the final product. This would involve
consumer in-outs on the acceptable price points for the product being tested.

Stage 5: To Launch the Product: Once the product has been designed and packaging
has been done, the next objective would be to launch the product in the market. This
would include getting distributors in place for the launch and the use of BTL activities to
ensure success of the same.

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 The Aditya Birla Group

The Aditya Birla Group is India’s first truly multinational corporation. Global in
vision, rooted in values, the Group is driven by a performance ethic pegged on value
creation for its multiple stakeholders. A US $ 24 Billion conglomerate, with a market
capitalization of US$ 31.5 billion, it is anchored by an extraordinary force of 100,000
employees belonging to over 25 different nationalities. Over 50 per cent of its revenues
flow from its overseas operations. The Group’s products and services offer distinctive
customer solutions worldwide. Its 100 state-of-the-art manufacturing units and sectoral
services span 20 countries- India, Thailand, Laos, Indonesia, Philippines, Egypt, Canada,
Australia, China, USA, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg,
Switzerland, Malaysia and Korea.
A premium global conglomerate, the Aditya Birla Group is a dominant player in
all of the sectors in which it operates. Among these are viscose staple, metals, cement,
viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators,
financial services, telecom, retail, BPO and IT services.
The Group has been adjudged the best employer in India and among the top 20 in
Asia by the Hewitt- Economic Times and Wall Street Journal 2007.

Aditya Birla: Group Businesses – At a Glance

Non-ferrous Metals: Hindalco

Novelis Inc
Aditya Birla Minerals Limited
India Aluminium Company Limited

Cement: Grasim
UtraTech Cement Limited
Shree Digvijaay Cement Company Limited

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Textiles (Pulp, fibre, yarn, fabric, Grasim
apparel) Thai Rayon
PT Indo Bharat Rayon
Birla Jingwei
AV Cell Inc
Alexandria Fiber
Aditya Birla Nuvo
PT Elegant

Chemicals Grasim
Aditya Birla Nuvo
Bihar Cautic & Chemicals
Thai Peroxide
Aditya Birla Grasun Chemicals
Pan Century Surfactants

Agribusiness Aditya Birla Nuvo (unit Indo Gulf)

Carbon Black Aditya Birla Nuvo (unit Hi-Tech Carbon)

Alexandria Carbon Black
Thai Carbon Black
Liaoning Birla Carbon

Wind Power Essel Mining

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Sponge Iron Grasim

Aditya Birla Nuvo

Insulators

Telecommunications Idea Cellular

Financial Services Birla Global Finance Company

Birla Insurance Advisory Services
Birla Sun Life (Life Insurance, Asset
Management and Distribution companies)

IT & BPO PSI Data Sytems

Aditya Birla Minacs Worldwide Ltd

Retail Aditya Birls Retail Limited

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 Hindalco

Hindalco was established in the year 1958 which is a part of Aditya Birla Group.
Mr. Kumar Mangalam Birla is the Chairman of this company. It is the world’s largest
aluminium rolling company and one of the biggest producers of primary aluminium in
Asia. The company has been accorded the Star Trading House status in India. Its
aluminium metal is accepted for delivery under High Grade Aluminium Contract on
LME (London Metal Exchange). It is one of the lowest cost producers of aluminium in
the world. It has a fully integrated aluminium plant at Renukoot, UP. It has its foil plants
at Silvassa and Kalwa and aluminium wheel plant at Silvassa.

In May 2007, Novelis Inc. a Canadian company which is a world leader in

aluminium rolling and can recycling market became a Hindalco subsidiary with the
completion of acquisition process. This transaction makes Hindalco the world’s largest
aluminium rolling company and one of the biggest producers of aluminium in Asia

The aluminium foil segment of the company has been divided into following two
categories:

• Housefoil – sold under the two brands of Freshwrapp & Superwrap

• Semi rigid aluminium foil containers sold under the brand Freshpakk

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 Principal Activities of HINDALCO:-

Hindalco in India enjoys a leadership position in aluminium and copper. The

company's aluminium units across the country encompass the entire gamut of operations
from bauxite mining, alumina refining, aluminium smelting to downstream rolling,
extrusions, foils and alloy wheels, along with captive
power plants and coal mines. The Birla Copper unit produces copper cathodes,
continuous cast copper rods along with other by-products, including gold, silver and DAP
fertilisers.

ALUMINIUM
Hindalco is the world's largest aluminium rolling company and one of the biggest
producers of primary aluminium in Asia. In India, Hindalco enjoys a leadership position
in speciality alumina, primary aluminium and downstream products. Hindalco's major
products include standard and speciality grade aluminas and hydrates, aluminium ingots,
billets, wire rods, flat rolled products, extrusions, foil and alloy wheels

COPPER
Hindalco's Birla Copper unit at Dahej in Gujarat is the world's largest single location
custom copper smelter with 500,000 tpa capacity. The plant is backed by captive power
plants, oxygen plants, as also by product facilities for fertilisers and precious metals. A
captive jetty with cargo handling capacity of over four million tpa, facilitates easy input
of copper concentrate and other imported raw materials.

MINES
The two copper mines in Australia were acquired in 2003. Birla Nifty mine consists of an
open-pit mine, heap leach pads and a solvent extraction and electrowinning (SXEW)
processing plant, which produces copper-cathode. A copper sulphide deposit is located at
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the lower levels of the Nifty open pit mine and an underground mine and concentrator
have been developed to mine and process ore from this deposit.

HINDALCO’S VISION, MISSION AND VALUES

Vision
To be a premium metals major, global in size and reach, with a passion for excellence.

Mission
To relentlessly pursue the creation of superior shareholder value by exceeding customer
expectations profitably, unleashing employee potential and being a responsible corporate
citizen adhering to our values.

Values

Integrity
Honesty in every action.

Commitment
On the foundation of integrity, doing whatever it takes to deliver, as promised.

Passion
Missionary zeal arising out of an emotional engagement with work.

Seamlessness
Thinking and working together across functional silos, hierarchy levels, businesses and
geographies.

Speed
Responding to stakeholders with a sense of urgency

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 Indian Aluminium Industry: An Overview

The domestic aluminium industry can be divided into two broad categories:

• Primary metal producers process bauxite into aluminium ingots, billets or properzi rods.
Primary producers are generally integrated producers, engaged in the entire chain of
activities fro mining of bauxite to smelting of aluminium.

• Secondary fabrication units process aluminium into value-added aluminium products

such as rolled products, extrusions, foils, bars & rods, wires, plates, sheets, etc rolled
products, foils, sheets or extrusions.

Given that production of aluminium (the metal) is a more capital-intensive

activity than fabrication, there are just five large ingot producers in India, as against
several small downstream manufacturers. Despite being secondary products, rolled
products are largely manufactured in the primary sector on account of the high capital
costs involved in setting up cold/hot rolling mills. Since primary players produce
aluminium at lower costs vis-à-vis the landed cost of imported aluminium that is used by
most secondary players, the margins of primary producers increase if they undertake
secondary processing themselves. The primary industry has thus started integrating
downwards.

Primary metal producers

The primary aluminium industry in India is concentrated in three business groups i.e., the
Aditya Birla Group, Sterlite Industries, and Public Sector Undertakings (PSUs). The five
primary metal producers in the domestic aluminium industry are:

PSU: National Aluminium Company Limited (Nalco)

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Aditya Birla Group: Hindalco Industries Limited (Hindalco), Indian Aluminium
Company Limited (Indal).

In FY2000, Hindalco acquired a majority stake in Indian Aluminium Company Ltd

(Indal), which had a major presence in downstream aluminium products.

Sterlite Industries: Bharat Aluminium Company Ltd (Balco), Madras Aluminium

Company Ltd (Malco).

Secondary metal producers

Secondary rollers and extruders in the Indian aluminium industry either purchase the
primary metal (billets and blooms) from domestic producers or import the same and
process the metal at their own fabrication plants into semi- or fully fabricated products.
Such secondary metal producers include India Foils, Pennar Aluminium, and Century
Extrusions, which together control over 70% of the market for extrusions and foils.

The secondary metal (aluminium) industry in India is characterised by:

• Low entry barriers because of low capital costs and low dependence on technology. The
low entry barriers imply keen competition and low capacity utilisation.

• High input cost: Most of the domestic production of primary aluminium is either
captively consumed or exported by the primary producers. The secondary players,
therefore, rely heavily on imported aluminium, which is expensive because of the high
import duties. In fact, the high landed costs of primary aluminium exert great pressure on
the margins of secondary producers.

The annual production capacities of some of the major domestic secondary producers are
presented in the above table.

Industry’s features

High degree of concentration: The domestic aluminium industry is characterised by a

high degree of concentration because of the following reasons:
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• High capital costs because of large plant sizes (1.5 lakh - 2 lakh tonne per annum
smelters) and high capital intensity (Rs 1 lakh per tonne of aluminium capacity as
compared with Rs. 30,000 per tonne of integrated steel making capacity),

• Restricted access to technology; tie -ups have to be entered into with global technology
suppliers, and

• Entry into the aluminium industry restricted by licensing controls till 1989.

Hindalco accounts for the highest share, followed closely by Nalco. The other three
players cumulatively have a share of around 25% of the total domestic production of
aluminium.

Threat of substitutes

Steel, wood and copper are the main substitutes of aluminium. The relatively low per
tonne cost of steel, the higher aesthetic appeal of wood, and the higher conductivity of
copper are some of the major factors favouring the use of these prime substitutes of
aluminium. However, aluminium with properties like higher strength-to-weight ratio,
durability, and higher corrosion-resistance is still able to counter competition.

Low per capita consumption

The per capita annual consumption of aluminium in India is around 0.7 kg, which
compares poorly with the figures for most developing countries, including China, which
has a per capita consumption of around 3 kg per annum. The current low consumption of
aluminium in the country points to large growth potential for the sector.

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 About the Project

Hindalco is the largest manufacturer of aluminium foils in India. It entered the

downstream products to create market for these products. As already mentioned earlier
the Consumer Products Division or CPD in Hindalco is dedicated towards increasing
usage of aluminum foil in India. It had been observed that among the consumers for
household foils, beauty salons too end up using the same for hair highlighting.

Foil highlighting is the process of using foil to separate strands of hair that will be
lightened from strands of hair that will remain in their natural color. The process is done
by applying lightener to the hair that has been woven and separated using an applicator
brush. The foil is then folded as to protect the hair and surrounding area during the
"processing" time. This is the amount of time required to achieve the desired results. If
we are able to tap this segment, we can reap huge profits since it is a premium product.
The socio-economic changes like increase in the number of working couples and rising
disposable incomes that is leading to experimenting with appearances make this sector
well poised for a boom.

In this project, a survey of beauty parlors which provide highlighting services was
to be conducted. This was to be carried out to explore the potential market for
customized hair foils. The first step here was to find a list of beauty salons complete with
their addresses. It was decided that institutes which offered training in beauty courses
would be targeted.

The first visit was to the VLCC Institute in Andheri. We met the Head of the
Institute; Ms. Rashi Narula. Rashi introduced us to her hair stylist faculty – Ms. Anette
Khwamaichiugrywa. Anette explained the entire process of hair highlighting and the
common problems faced when using the foils. We took a look at the foils sheets used
and noted down the specifications. She was excited about the idea of customized hair
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foils and promised to help us. However we drew a blank on a list of beauty salons. She
gave us a list of VLCC institutes and Spa centres in Mumbai. But they could not help us
with a list of salons in Mumbai.

We then got a lead with the Area Sales Manger of Schwarzkopf, Mr. Rajesh
Pathak. Schwarzkopf is a Henkel Product and a leading player in quality products for
every type of salon treatment including hair coloring, hair styling and care. We visited
his office at Akruti Centre,Andheri and discussed the project. He was helpful enough to
look at our questionnaire and give useful inputs. He agreed to give us a list of twenty top
salons in Mumbai, to start us off.

The list of twenty salons covered some high end salons like Hakim Aalim etc.
However twenty salons were not enough to conduct a survey. We then searched the
internet and found a list of salons, complete with their addresses on the Mumbai Mirror
website.

Once the list was in place, the salons were divided area wise.

Area Visited Number of Outlets Visited

South Bombay 46
Mahim 5
Dadar 4
Santacruz 12
Bandra 25
Khar 9
Juhu 7
Andheri 1
Malad 7
Chembur 1
Kandivli 2

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Market Survey: The first step was to have a discussion with the salons about their
opinion regarding the concept of introducing a customized aluminium foil for the
process of highlighting. This discussion was important, since it established if a need for
customized foils existed in the market or not. For this purpose a questionnaire had been
designed, which recorded responses about the product dimensions, the problems they
were facing with the current household foil.

Findings from the Survey: From this discussion we found out that currently, beauty
salons are using either imported hair foils or foils which is thinner than their
requirements. Since there is no customized product available a lot of wastage occurs.

The response from the survey was overwhelming.

75% of the respondents felt a need for a customized product.

60 % felt that the foil were too thin for their requirements- “You can’t even cut it
properly, it is so thin”

75% felt that household foils led to a lot of wastage – “Almost half of the foil
gets wasted because it tears easily”

The current trend in beauty salons is of using household foils. Freshwrapp and
Superwrap are the market leaders in this category. The survey showed that Freshwrapp
and Superwrapp are being used in 68% of the salons covered. However, the present
thickness of 11 micron is thinner than the salon’s requirement. As mentioned above, the
colouring process requires the foil to be thick or sturdy enough to withstand the brush
while the colour is applied to the hair. Furthermore, the foil has to be folded. Thus, the
foils tear easily leading to a lot of wastage. The methods of tearing these foils are either
with the help of -

• A thread – 32%
• Scissor – 3 %
• Scale / Edge of the table – 1%
• The cutter provided in the foil box – 62%
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 Household foils are of the length 30 cm and the consumer can tear out the required
length. Thus, the foil sheets that are used by the salons, all have the common length of 30
cm with the width varying from 10 cm to 15 cm. Another important finding from the
survey was that nearly all the salons agreed that they used aluminum foils for no other
purpose except coloring.

Designing the SKU required: Based on the findings of the survey, two samples were
decided upon- pre cut foil sheets and foil rolls. To develop these samples, the
manufacturing plant of Hindalco in Silvassa was visited. Here we met Mr. Joshi, who
looks after CPD production at Hindalco. He explained the entire process of
manufacturing aluminium foils of reducing the 600 micron thick sheet to 14 micron foil,
to the process of splitting and annealing. We were given one foil roll of 14 micron and
width 300 mm

Manufacturing Process

Rolling the 600 micron thick foil

to 14 micron

These foils are then further split

into two sheets

Annealing the sheets: wherein

properties like strength and hardness
are changed

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 Based on the discussion with the beauty salons, sample foil rolls of width 12-
14cm instead of 30cm, with an increased thickness of 14 microns and an embossed finish
to provide better stay of colour were prepared. For this process of splitting and embossing
the foils, the foils were taken to another plant- Hai Pack – which manufactures cut sheets
for HIL. The end result was 50 samples of -

• 10mts foil rolls of width 10 cm and 14 cm each

• A pack of 50 cut sheets of 14cm by 25 cm were designed

SKU Width (cm) Length

14 10 M
Rolls
10 10 M

Cut Sheets 14 25 cm

Fifty salons were given these free samples of 50 cut sheets of 14 cm width and 25 cm
length and 10 metre foil rolls of width 10 cm and 14 cm .

Recording customer reaction: Feedback regarding the specifications of the sample

along with the monthly consumption and spending habits were recorded for which a
separate feedback form was designed. One of the problems faced while conducting the
survey and feedback, was the salon’s reluctance to share their monthly consumption and
expenses. Responses to the question of their average expenditure on foils were usually
vague and unhelpful. To overcome this problem, they were asked if they bought their
foils at a discounted rate or at the market price. This gave a some what clearer picture on
their expenses.

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The feedback from the sampling is as follows:

85% preferred cut sheets over foils- “Though rolls give the freedom to cut foils
according to the customer, Cut sheets are more convenient”

85% found it time saving- “Now we don’t have to prepare beforehand. We can
now use them at the time of colouring itself.”

87% said wastage reduced- “These foils don’t slip, tear or bleed.”

87% Satisfied with the new thickness – “The thickness is perfect. Imported
foils are much thicker, which just make them difficult to use.”

23% Satisfied with the new length- “ The Indian hair is long, these sheets are
good for shorter hair or men”

62% Satisfied with the new width of cut sheets

52% said embossing does not help

30% said they would prefer rolls over cut sheets if a dispenser is provided

90% said they would like to buy in bulk

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Keeping this feedback in mind, the specifications of the product were slightly changed.

• Since the width of 10 cm was too narrow and 14 cm was too broad, a
width of 12.5 cm was decided upon.

• Only 23% were happy with the length of 25 cm. The length had to be
increased.

Once these changes were incorporated in the product, and the new sample (of length 35
cm and width 12.5) was ready, re-sampling was done. This time we targeted only 20
salons. Feedback from this sampling is as follows:

• 100% felt that the product’s length was more convenient than the previous
sample’s length of 25 cm.

• 20% said they would prefer a length of 30 cm than the current length of 35 cm.

Deriving a price: To arrive at a price for the product, there were two options. Either the
cost of manufacturing such a product should be calculated and then sold at that cost. Or a
price based on the monthly consumption of the salon, gathered from the survey is
calculated. This will give an idea about how much the salons are willing to pay and then
accordingly a price for the product could be reached.

Since a premium segment is being targeted, the price of the product was based on
the consumption and their willingness to pay for the product. First, it was calculated how
much aluminium foils are costing the salons on per piece basis. Based on the calculations,
the average cost a salon is currently paying came out to be Re. 0.89 per sheet. Taking into
account the estimated consumption the pricing was done as

• Rs. 375 for a pack of 500 sheets, which is 0.75 per sheet

• Rs. 170 for a pack of 200 sheets, which is 0.85 per sheet

Brand Name and Tagline: Once a positive response was received from the sampling
and feedback, it was important to come up with a brand name, logo, tag-line and packing
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for the product. The brand name should relate to the product and convey explicitly what
the product is all about. Since both Freshwrapp and Superwrap are mother brands, the
brand name for the foils had to have either of them mentioned. Freshwrapp has the word-
“fresh” in product name. This has associations with food more than with beauty and care.
That left us with the brand Superwrapp. Thus, the name of Superwrap Hair Foils was
decided upon. The words – Hair Foils convey about the product usage. For the tagline,
two options were narrowed down -

For easy and smart colouring

Makes colouring smart and easy

Basically, any foil be it household foil or customized hair foils, can be used for
colouring. Since a good tagline should provide a functional as well as an emotional
connect, by using words like “Smart” an intangible emotional connect is being added,
while the word “Easy” gives a functional connect with the product. A small survey over
the phone was carried out and it was decided that the tagline should be

For easy and smart colouring.

The logo is the identity of the product; it has to be unique and appealing. The graphic
representation of the product had to be uniquely designed for ready recognition. Since the
beauty segment is all about appearances, it was decided that bright colours like pink, blue
and their shades should be worked with.

Launching the product: Once the product specifications had been decided, the next step
was to launch the product. Since customized hair foils are a B2B product, and there was a
limited advertising budget, the following options were available:

• Co-branding

• Participation in Trade shows and fairs

• Endorsement

For co- branding it was best to approach cosmetic companies like L’Oreal and
Schwarzkopf. Co-branding made sense, since an established distribution network is
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directly available. Also co-branding will ensure that the good- will and brand equity of
the company will rub off on to our product. However, there is a downside to co-branding
as well. There is a possibility that the company could develop our idea and sell it under
their brand name. Moreover, as in the case with L’Oreal, their product already exists in
the market.

By this time an alternative was found. The most effective method of reaching
across to all the salons in Mumbai and India would be through a magazine or publication.
The product would be launched through the magazine - New Age Salon. New Age Salon
is a bi-monthly publication and is India’s first ever magazine that caters to the hair and
beauty industry. The magazine is directly mailed to over 10,000 recognized salons in
India and with over 9,000 copies as paid circulation.

We got in touch with Mr. Richie D’souza, an advertising executive at the

magazine. After a meeting with him and the Editor, Mr. Allen John, we decided that the
product will be advertised and distributed exclusively through New Age Salon. The
advert will carry a sample of cut sheets along with a coupon which will be filled in by the
salons interested in buying the product. This advertisement will be carried in two issues
whereas the innovation shall be carried out in the 1st issue only. The advertisement will
have an aluminium foil sheet stuck on the magazine page, which when torn will reveal a
small sample pack of the product. Along with the sample, there will be a information
leaflet To build on a database of salons, we will also carry an offer of free sample of
hairfoils. This free sample will ensure that salons will fill in the coupon with their details

Estimated Consumption of the Product: Based on our survey and feedback, the
potential consumption of the product was calculated. Although we distributed samples to
50 salons, only 37 were able to give feedback. These 37 salons were divided into three
categories based on their monthly consumption of foils. (12.5 cm in width by 35 cm in
length)

32% fell into the A category i.e. their monthly consumption above 1000 sheets

35% fell into the B category i.e. their monthly consumption is above 500 sheets

32% fell into the C category i.e. their monthly consumption is 200 pieces sheets
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Among the 10,000 salons, that New Age Salon reaches out to, 25% (assumption) do not
offer hair colouring services, so we are left with 75,00 salons. Now this classification of
salons is projected on to the 75,00 salons that New Age Salon is distributed to.

2400 salons fall into the A category

2625 salons fall into the B category

2400 salons fall into the C category

The average monthly consumption of 75,00 salons across India is 4192500 sheets.
Multiplied by the volume of one sheet (1.66) the consumption is approximately
calculated as 7 tonnes.

28
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 Graphical Findings from the Survey:

• Question 1 : Are you facing any problems with the thickness?

Are you facing any problem w ith the thickness?

35
31
30

25
21
20

15

10

0
Yes No

29
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 • Question 2:: Are you facing any problems with the length ?

Are you facing any problem s w ith the length?

60
52
50

40

30

20

10
0
0
Yes No

• Question 3: Is there any wastage?

Is their any w astage?

45
39
40
35
30
25
20
15 13

10
5
0
Yes No

30
11/16/2008
 • Question 4: What method you use for cutting foils?

What method you use for cutting the foils?

30
25
25
20

15 13

10

5
1 1
0
r
ad

e
s
tte

or

al
re

cu

Sc
iss
Th

Sc
x
Bo

31
11/16/2008
Graphical Findings from the Feedback:

• Question 1: Are you satisfied with the thickness of the sample?

Are you satisfied with the thickness?

40 35
35
30
25
20
15
10 5
5
0
Change Satisfied

• Question 2: Are you satisfied with the width of the sample?

32
11/16/2008
 Are you satisfied with the width?

30
25
25

20
15
15

10

0
Change Satisfied

• Question 3: Are you satisfied with the length?

Are you satisfied with the length?

35 31
30
25
20
15
9
10
5
0
Change Satisfied

• Question 4: Do you find it time saving?

33
11/16/2008
 Do you find it time saving?

40 34

30

20

10 6

0
Yes No

• Question 5: If given a choice what would you prefer?

If given a choice what would you prefer?

40
34
35
30
25
20
15
10 6
5
0
Foil Roll Cut
sheets

• Question 6 : Is wastage reduced?

34
11/16/2008
 Is wastage reduced?

40
35
35
30
25
20
15
10
5
5
0
Yes No

• Question 7 : Does the embossed foil help the colour stay better?

Does the embossed foil help stay the

color better?

21.5 21
21
20.5
20
19.5 19
19
18.5
18
Yes No

35
11/16/2008
 • Question 8: If provided with a dispenser to cut the foil, would you prefer it over
the cut sheets?

If provided with a dispenser to cut the foil

would you prefer it over the cut sheet?

30 28

25

20

15 12

10

0
Yes No

• Question 9 : Would you like to buy foils in bulk?

Would you like to buy foils in bulk? If yes than

at what length?

40
36
35

30

25

20

15

10
4
5
0 0 0
0
9 mts 18 mts 72 mts 1 kg No

36
11/16/2008
 • Question 10: Are you happy with the fact that someone has paid attention to the
beauty segment and is coming up with a customized product?

Are you happy with the fact that someone has

paid attention to beauty segmant and is
coming up with customized product?

35
30
30

25

20

15
10
10

0
Yes No

QUESTIONAIRE

1. Name:

2. Which brand of foils are you using?

[ ] Freshwrapp [ ] Superwrap [ ] International Brand…………………
[ ] Any other (If some other brand, mention name)…………………………….

3. How many rolls of foils do you buy in a month?

[ ] 9 mts [ ] 18 mts [ ] 72 mts [ ] 1 kg pack
[Note down: Thickness, Length

4. From where you purchase foils?

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11/16/2008
 [ ] Retailer [ ] Distributor [ ] Local Shops
[ ] Any other (If some other brand, mention name)…………………………….

5. How much does it cost?

……………………………………………………………………………………..

6. What are the methods you use for tearing foil?

[ ] Thread/ Blade [ ] Scissor [ ] Cutter provided in the box
[ ] Any other (If some other brand, mention name)…………………………….

7. What is the dimension (length and width) of the foil that you cut?

………………………………………………………………………………………

8. How many pieces of foil do you use in a single sitting of highlighting?

For Crown ………………………………………………………………………..

For Over all ………………………………………………………………………..

9. How many sittings do you have in a week?

………………………………………………………………………………………

10. What are the major complaints about the foil you are using currently?

Thickness ……………………………………………………………………….

Length ……………………………………………………….........................

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11/16/2008
 Wastage ………………………………………………………………………..

Any other ……………………………………………………………………….

11. Do you use aluminium foils for any other process besides highlighting?

………………………………………………………………………………………

12. Are the beauticians/staff trained from a particular institute? [If yes, mention the
Name].

………………………………………………………………………………………

FEEDBACK FORM

1. Name:

2. Are you satisfied with the changes in

a) Thickness …………………………………………………………………..

b) Width …………………………………………………………………...

c) Length …………………………………………………………………..

3. If given a choice, what would you prefer: Roll or Cut sheets and why?
39
11/16/2008
 ………………………………………………………………………………………
………………………………………………………………………………………

4. Do you find the length of the Cut sheets convenient?

………………………………………………………………………………………

5. Is wastage reduced or still exist?

………………………………………………………………………………………

[The next sets of questions are to be asked with respect to the foil rolls]

6. When using the foil roll what is the method you use for cutting?

………………………………………………………………………………………

7. What is the length at which you are cutting the foil?

………………………………………………………………………………………

8. If provided with a dispenser to cut the foil would you prefer it over the cut sheets?

………………………………………………………………………………………

9. Any more suggestion for changes:

40
11/16/2008
 ………………………………………………………………………………………
………………………………………………………………………………………

Costing

Area sq m
Density g/cubic m

Weight Density volume

area x
2.71 thickness
.35 x .125 14
Weight g 1.66
Metal rate Rs./kg 162
Metal rate Rs./g 0.16
Metal cost Rs./pc 0.27
Transportation Rs./pc 0.00 2000 kgs
Job work cost Rs./pc 0.10 1500
Packing cost Rs./pk 5.00 0.75
41
11/16/2008
No. of pcs/pack 200 0.00075
Outer carton Rs./carton 20
No of
packs/carton 20
Packing cost Rs./pc 0.03

Product Cost Rs./pc 0.40

Product Cost Rs./pack 80.53
Price 108.263525
Excise 14.42% 15.6116003
Freight 1
CST 0%
Landed to dis 124.875125
Distributor
margin 5% 6.24375624
VAT 4% 5.24475524
Landed to SD 136.363636
SD margin 10% 13.6363636
Landed to
customer 150

Current
Landed cost/pc 0.75 cost

Contribution Rs./pack 27.74

kgs/pack 0.33
Contribution Rs./kg 83.5503603

Monthly Consumption of Foils

Cost
No. per Monthly
of sheet Consum
Total She Cost per (Whe ption (
Cost of Monthl ets sheet ( n In
One No of y per When length number
Salon M pack Pack Expendi pac length=3 =35 of
Name ts Rs s ture k 0cm) cm) sheets)
Ti amo 9 50 1 50 72 0.69 0.81 72
Create 9 52 1 52 72 0.72 0.84 72
Be you
Beauty
Salon 9 55 2 110 72 0.76 0.89 144
Ritu's 9 55 2 110 72 0.76 0.89 144

42
11/16/2008
Lakme
Juhu 9 49 3 147 72 0.68 0.79 216
Haute
hair 9 42 3 126 72 0.58 0.68 216
Arista 9 42 3 126 72 0.58 0.68 216
Bluewe
lla 9 55 3 165 72 0.76 0.89 216
Lulu's
Salon 9 40 3 120 72 0.56 0.65 216
Preciou 20
s 9 55 3 165 72 0.76 0.89 216 0
Salon
de
Beaute 9 55 3 165 72 0.76 0.89 216
Curl up
and dye 9 50 4 200 72 0.69 0.81 288
Spatika 9 50 6 300 72 0.69 0.81 432
Glam
girls
and
guys 9 45 6 270 72 0.63 0.73 432
Jueness
es 18 3 0 144 0.00 0.00 432
Slender
Gender 9 50 6 300 72 0.69 0.81 432
VLCC 9 45 6 270 72 0.63 0.73 432
Raih 68 450 1 450 544 0.83 0.97 544
Wet n
Wild 72 250 1 250 576 0.43 0.51 576
Trendy 72 200 1 200 576 0.35 0.41 576
Chi
kaba 9 59 8 472 72 0.82 0.96 576
Vous 72 375 1 375 576 0.65 0.76 576
Prochi's 72 375 1 375 576 0.65 0.76 576
Rewind 9 55 10 550 72 0.76 0.89 720
Impress 50
ion 50 250 2 500 400 0.63 0.73 800 0
Redz 68 375 2 750 544 0.69 0.80 1088
B-Age 72 200 2 400 576 0.35 0.41 1152
Coleens 72 200 2 400 576 0.35 0.41 1152
Dilshad 72 200 2 400 576 0.35 0.41 1152
Pretty
woman 72 200 2 400 576 0.35 0.41 1152
Rah
mehr 18 45 10 450 144 0.31 0.36 1440
Mad o
wat 9 45 30 1350 72 0.63 0.73 2160
43
11/16/2008
Champ
agne 9 55 30 1650 72 0.76 0.89 2160
Makeo
ver 9 42 36 1512 72 0.58 0.68 2592
Glory 18 40 30 1200 144 0.28 0.32 4320
Beyond
the
fringe 68 150 15 2250 544 0.28 0.32 8160
10
N&Y 9 59 150 8850 72 0.82 0.96 10800 00
Total 0.76 0.89 46664

Catego N Percen
ry o. tage
1000s 12 32%
500s 13 35%
10,0 All
200s 12 32% 00 parlours
Parlours
7,50
25% into
0
Total 37 streaking
Categ 2,43 2,432,43
ory A 1000 2 2
Categ 2,63 1,317,56
ory B 500 5 8
Categ 2,43
ory C 200 2 486,486
4,236,48
6
7.03

Bibliography

Books:

• Marketing Management, Philip Kotler

Websites

44
11/16/2008
 • http://www.google.com

• http://www.hairfoils.com

• http://www.consumer.schwarzkopf.com/hair-beauty

• http://www.loreal.com/_en/_ww/index.aspx

• http://www.vlccinstitute.com/about_us.html

• http://www.hindalco.com

• http://www.foillights.com

• http://www.style-hair-magazine.com/highlighting-hair.html

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