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Marketing Plan for a New Product Launch of L’Oreal

Dry Shampoo: “Novus”

Table of Contents

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 CHAPTER:01

Executive Summary

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This paper is constructed on marketing plan of a new product: a new dry shampoo ‘Novus’ for
the “L’Oreal” company. The marketing plan consists of some specific steps and analysis.

The report is based on synthesis, analysis, and interpretation of information gathered regarding
the various market analysis of dry shampoo from year 2000-2025. I have analyzed the
information and data and gained insights using a secondary research to provide a holistic view of
the market.

First of all there is an introductory part for understanding about dry shampoo. Then an analysis
of current market situation, which contains the target audience, who are generation Y women,
mostly ranging between the age of 18-40. Then a detailed view is presented on the trends of
current dry shampoo market. Also there is a review of ‘Novus’, which shows its specification
and differentiation compared with other products in this sphere.

In second step

Introduction

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L’Oréal was founded in 1907 by chemist Eugène Schueller when he invented the first
nondamaging synthetic hair dye. Since its beginnings L’Oréal’s policy has been one of constant
innovation, research and hard work in a field which would eventually come to be known as
marketing. The fact that its founder was a chemist still influences the company’s research
orientation, as witness the 300 new patents L’Oréal takes out every year, enabling the company
to launch 200 new products annually.
Dry shampoos are types of shampoos that are used to clean hair and reduce greasing in the hair
without the use of water. Dry shampoos are available in both aerosol spray and powder forms.
Dry shampoos contain alcohol or corn starch, which absorbs grease and excess oil from the hair,
making it look fresh and shiny. The working population wash hair frequently to get rid of dust
and dirt caused by pollution, smog, dust and others while traveling between home and
workplace. Frequent use of regular shampoos can damage the hair and makes follicles weak and
hair dull. Dry shampoo needs to be sprinkled on the scalp and after a minute of combing, the
process is complete. This method of application is less time consuming and simple, as compared
to washing, using regular shampoo, or showering.
Increasing customer preference for organic and natural products is a major factor driving growth
of the target market. Some dry shampoos available are formulated to reduce scalp damage,
provide nourishment to the hair, and some types are formulated specifically for colored hair.
These are some of the factors that are resulting in rising preference towards dry shampoos as
compared to conventional one. In addition, increasing scalp-related diseases and rising hair fall
concerns are resulting in growing preference for organic and natural products. Furthermore,
influence of the fashion industry – hairstylist and models advertise and promote dry shampoos –
is expected to create rising demand for dry shampoos in the near future.

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 CHAPTER-02: Situation Analysis

Market Scenario

The Global Dry Shampoo Market is projected to reach USD 4.94 billion by 2025, at a CAGR of
6.7% between 2019 and 2025. The global dry shampoo market is highly competitive with the
presence of many national and international players catering to the increasing demand. There are
several global brands dominating the dry shampoo market. Brands such as Batiste, Dove, Living
Proof, TRESemme, Suave, Furterer, and Aveda are the most popular dry shampoos across the
world. A high level of competition among the market players leads to product innovation, which,
in turn, attracts consumers. This factor is expected to drive the growth of the global dry shampoo
market in the near future. To tap into the lucrative opportunities, many key players such as
Unilever PLC, L'Oreal SA, The Estee Lauder Companies Inc., MacAndrews & Forbes
Incorporated, Procter & Gamble Company, Shiseido Company Ltd., and LVMH Group are
investing in the dry shampoo market. The market players are adopting mergers & acquisitions,
expansions, and product launches as growth strategies. For instance, Kaia Naturals launched
Takesumi Detox Overnight Dry Shampoo in May 2018; the product uses natural ingredients to
eliminate odor and sweat and absorb oil and impurities from hair.

Market Synopsis

The global dry shampoo market has witnessed significant growth in recent years owing to the
increasing demand for convenience haircare products. Dry shampoo has gained popularity owing
to the busy lifestyles of the working population, demand for on-the-go hair care products, and
growth of the retail sector. Increasing consumer spending on personal care products is expected
to drive market growth further. Advancements in the e-commerce industry have created
opportunities for players in this market to expand their consumer base.
Dry shampoo is used to reduce the greasiness of hair without having to wash it. Dry shampoo is
available in the market in the form of powder and spray. The powder in dry shampoo absorbs the
sebum in the hair, which is excreted from sebaceous glands and can give hair a greasy
appearance. Starch is a common powder used in dry shampoo. The propellant used for dry
shampoo usually consists of butane, isobutane, and propane, which accounts for 70%–90% of the
total composition. Market players offer organic and conventional dry shampoo at online and
brick and mortar retail stores. The increasing demand for organic products, the rising influence
of beauty bloggers, and the growth of e-commerce channels are significantly contributing to the
growth of the global dry shampoo market.

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However, the widespread availability of substitutes such as conventional shampoo and high cost
of dry shampoo are expected to create challenges for dry shampoo manufactures.
Market USP
Increasing demand for convenience haircare products
Market Drivers
Growing demand for on-the-go hair care products: There is a rising preference for hair care
products that require minimum time. Due to water scarcity in various parts of the world,
consumers are adopting for dry shampoo. In 2019, almost 5 million Americans used the Suave
dry shampoo, and Suave Professionals was the second leading US shampoo brand in the
previous year.

 Easy availability of products in both online and offline retail stores

 Product offering by market players with different functions
 Increasing beauty consciousness

Market Restraints
Availability of substitutes
High costs as compared to conventional shampoo
Segmentation
By Type
Spray: The larger segment in this market. Dry shampoo in spray form is easy to apply to the
roots and adds volume to the hair while eliminating residue build-up on the hair and scalp. The
segment is also projected to register the highest CAGR.
Powder: Powder is easily absorbed by the hair and scalp and provides even nourishment to
every part of the head. The rising demand for aerosol-free products, including dry shampoo, is
expected to boost the growth of the segment.
By Function
Anti-Dandruff: The largest segment in this market. Anti-dandruff dry shampoo is popular
among consumers in Asia-Pacific, South America, and Europe.
Color Protection: A color-protecting shampoo protects hair color from fading and helps
maintain shine and smoothness, eventually making the hair color last longer. Color protection
dry shampoo is in high demand in the US, Canada, the UK, Italy, and France.
Hair Loss Protection: Market players are offering organic dry shampoo aimed at hair loss
protection. These shampoos do not contain any chemicals and parabens.

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Daily Care: This shampoo is used for daily hair care and to maintain a non-greasy look. It can
be used for all hair types.
Multi-Function: Multi-function shampoos serve various purposes such as cleaning the hair and
scalp, reducing dandruff, color protection, and maintaining hair volume and shine. These
shampoos are becoming increasingly popular due to the rising demand for convenience personal
care products across the globe.
By Distribution Channel
Store-Based: A majority of dry shampoo is sold through store-based retailers. The store-based
segment accounted for the larger share of the global dry shampoo market in 2018. Consumers
prefer store-based channels as they can verify the quality of the product before purchasing. This
segment has been further divided into hypermarkets and supermarkets, specialty stores,
pharmacies, and others. The specialty store segment is dominating the market.
Non-Store-Based: The non-store-based segment is expected to register a higher CAGR during
the forecast period. The growth of the segment is driven by the rising number of e-commerce
websites such as Alibaba, Amazon, and Flipkart, offering a wide range of products to consumers.
Most dry shampoo manufacturers sell their products online on e-commerce platforms where
consumers can choose from a wide variety.
By Region
North America: The North American market held the largest market share of 36% of the global
dry shampoo market in 2018 and is expected to remain dominant during the forecast period.
Europe: With rising awareness regarding scalp-related issues and hairfall, consumers in Europe
are increasingly inclined toward herbal and natural haircare solutions, which is fueling the
growth of the dry shampoo market in the region.
Asia-Pacific: Asia-Pacific has a large customer base for dry shampoo. The market in this region
is projected to register the highest CAGR during the forecast period.
Rest of the World: Growing consumer awareness regarding beauty and personal well-being and
increasing per capita disposable income are propelling the growth of the dry shampoo market in
the region.

Key Market Trends

1. Rising Demand for Convenient Hair Care Products for Busier Lifestyle
Most of the companies have started branding and advertising dry shampoo as convenience
products that been easily used on-the-go. For instance, Church & Dwight marketed its female-

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centric dry shampoo highlighting its lesser usage time as compared to other shampoos. Since the
number of employed women in the United States increased sharply at a CAGR of 0.77% in the
period 2000-2018, from being 63.59 million in 2000 to 73.06 million in 2018, so did the demand
for convenient haircare products. Thus, increasing female employment rate and busier lifestyle
are forecasted to drive the market for dry shampoo owing to the portability and convenience that
they offer.

2. Europe Being the Largest Market for Global Dry Shampoo Market
Europe has been witnessed to have the largest market for the global dry shampoo market.
Organic and natural products are emerging as significant product segments in the European hair
care market. With rising awareness regarding scalp-related issues and hair-fall, consumers are
increasingly inclining towards herbal and natural hair care solutions. A few companies have
come up with organic solutions in the dry shampoo market. For instance, ACURE ORGANICS
offers dry shampoos that have natural ingredients such as argan stem cells, arrowroot powder,
and kaolin clay. Currently, Europe is leading the way due to increasing organic products and new
product launches.

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3. Competitive Landscape
The global dry shampoo market faces high competition, with the majority of market share being
held by leading players including Procter & Gamble and Unilever. The key players are focusing
on product development, online distribution channels, strategic expansions, advertisement, and
branding of their products, in order to expand their geographic reach and consumer-base. The
leading companies are also investing heavily in R&D to ensure high-quality products. The
launch of new products and strategic expansions to untapped geographies are the preferred
strategies of players operating in the market. Leading manufacturers in the dry shampoo market
are focusing on leveraging the opportunities posed by the emerging markets of Asia-Pacific, such
as India, in order to expand their revenue base.

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 PRODUCT REVIEW: ‘Novus’ Dry Shampoo
Novus dry shampoo is a “All in one shampoo”. It would gently receive hair in 2 minutes
naturally. With a unique combination of plant based ingredients. Our dry shampoo will absorb
excess oil so hair is left lean and volumized. We specifically designed it in different botanical
formulas to meet different hair needs. Thus, for normal hair’s type we developed it with oat milk
that respects the natural balance of the scalp and hair, making it ideal for daily use for all hair
type. Another ingredient Nettle is used as an astringent and re-animator. Also, the product carries
depending on the color of hair.
These two types are offered especially for dark shades of the hair. So, bright hair colored
customers can also apply it. This product is made of very organic and ecologically friendly, there
is no sulfates, parabens, silicones or sodium chloride.
Novus Dry Shampoo will be available in both aerosol and non-aerosol bottles. Capacity size
would be 150ml and 50ml (travel size).

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 CHAPTER-03: Marketing Strategy

L’oreal’s ability to synchronize the many branding initiatives that comprises company’s separate
sub-brands need to focus on achieving the major initiatives to deliver the highest possible value.
To maintain the brand’s value in this competitive market, a perfect strategic plan is suggested for
the new product launch.

Mission
The new launch of the dry shampoo is expected to deliver the highest possible customer
satisfaction. The commitment to bring the best hair care shampoo that would not only provide
the regular cleanliness of hair but also it would be made of only organic products to give the best
result. This dry shampoo line would offer various types according to hair types and customer
needs. So, the mission statement is as follows: “Our commitment is that every customer is
satisfied”.

Target Market
The central part of marketing strategy is target customers. Our specialists had divided up a
market into distinctive groups on the basis of demographic, psycho-graphic and behavioral
factors. Thus, the new dry shampoo’s production is aimed at the target market of ‘optimistic,
altruistic, experiential’ Generation Y women, mostly ranging between the ages of 18-40. We
have decided to target this particular market because there are very few brands addressing the
needs of this age group specifically. The females in this target market are individualistic and like
to be aware of the latest trends and don’t afraid of trying new products. Moreover, people aged
between 18-40 are more likely to be busy with all sorts work like office work or house work or
child care or anything else.as to behavioral characteristics, our target audience is concerned that
frequent washing can actually strip the hair of its natural oils, damaging them and making them
dependent on daily washing. In terms of the income, our prospective customers are chosen from
the middle class. Besides, dry shampoo is a convenient solution for hair while traveling after
work outs. The usage of dry shampoo goes beyond the application of the traditional shampoo, in
order to satisfy the customers needs in the best way. Thus, “Novus” applies the want of a good
shampoo that helps people to make their hair clean in a short time with excellent quality, suitable
quantity and suitable for working women and age group of 18-40.

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Competition
There are lots of brand that are coming up with new dry shampoos. The key players are Batiste,
Schwarzkopf, Dove, Pierre Fabre, Henkel AG & company KGaA, The Estee lauder Companies,
L’Oreal etc. the most popular and demanding shampoo currently in the market is Batiste. So, to
beat that the L’Oreal team has to come up with new ideas. The new product that I am suggesting
here, “Novus” dry shampoo would be coming into market to beat the Batiste dry shampoo.
Because this product would made of total organic ingredients and all in one strategy follows that
the shampoo would offer every hair type like oily/dry/colored/non-colored etc. Customers feel
the needs according to environment and mood. So, if the product offers all in one in a single
spray bottle, they would be more than willing to buy the product.

Distribution
In term of distribution, the product would be sold at most major retailers, drug stores, and
grocery stores. Since these products are targeted to a wide audience and are positions as a mid-
level product, they won’t be distributed to hair salons.

CHAPTER-04: Marketing Tactics

The marketing strategy of “Novus” dry shampoo will be achieved by following marketing
tactics. The followings give the product’s introduction, what are the offerings. Then it will be

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followed by pricing and placing in the market. Finally, it will discuss on how the promotion will
be carried on.
1. Product

2. Price

3. Place

4. Promotion

CHAPTER-05: Financial Projection

CHAPTER-06: Implementation Controls

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