Marketing Management

Group assignment

APO-9( Kutumb)

Diwakar yadav 220103060

Krishna kishor tiwari 220103093
Manansh Gambhir 220101063
Rishvanth yokesh 220101192
Vaibhav sapra 220103202
Vidhi Agrawal 220103209
Product life cycle for Loreal products: -

Introduction to Loreal product - Garnier

Following in the footsteps of forerunners like Emani, HUL, and Nivea, Garnier
debuted their line of men's face cream. following the realisation of the necessity for a
specialised line of products that would respond favourably to the texture of male skin.
Garnier realised the need for a face wash that would combine the ingredients of an oil
control fairness cream and a face wash after introducing Fairness face wash and oil
control fairness cream in the early days (2008–2009). They discovered during the
research time that consumers are uncomfortable with the dry skin caused by the use of
face wash.
Introduction:

As John Abraham served as the brand ambassador from India during this time,
L'OREAL used commercial platforms to frequently advertise this product to
consumers. Due to the product's recent entry onto the market, initial sales were
modest. Consistent marketing was required to shift consumers' preferences from a
standard men's face wash to a more specialised face wash that removes additional oil
from the skin. To see how the public would react to the product, distribution was
limited to a few big cities.

Growth Stage:

The product had already won over many early users by the time it reached this stage.
To attract more consumers, they expanded the distribution routes to numerous other
cities. By this time, a number of other companies—including Nivea, Ponds, and
VLCC—had also seen the expansion of this market and had developed products with
similar functions to Garnier's, but with different ingredients and more effective
marketing. Garnier created more commercials and pushed the product in every
available venue after realising how fierce the competition was. The attached
advertising is two years old. The phrase "best face wash utilised by most of the males"
appears in the final five seconds of the commercial. This was vital to ensure customers
that the product they were buying was the finest in its category and that practically all
young people used it.

Maturity stage:

Between the stages of growth and maturity is where Garnier oil clear face cleanser for
men is located. When Nivea introduced its "All in one" face wash, it got people's
attention. Sales will continue to be where they were in the growth stage during this
phase. The only thing a brand needs to worry about is maintaining its user base and
ensuring that consumers don't lose interest in the product. Instead of entering the
decline maturity phase, it should attempt to enter the growth or stable maturity phase.
No new distribution channels should be established, and the product should begin to
be withdrawn from markets with low sales to cut expenses.

Decline stage:

Sales decline during this phase, whether as a result of shifting consumer preferences
or the introduction of a competing domestic or foreign product. The sales could
decline significantly, possibly to zero. The only way a product can generate revenue is
by charging less. Once more, a strong brand crisis management will be necessary.
Kotler claims that the tactic can involve "harvesting" or "divesting." By retaining sales
to devoted customers, the harvesting approach should lower business expenses. It
should cut back on its advertising expenses and go quietly, keeping customers and
rival businesses in the dark. As part of the divesting plan, the company should
endeavour to liquidate the product or sell its goods to a company.

4P Analysis:

1. Product:

In the introductory stage, we select Garnier as our Minimal Viable Product

with minimum features and a single product with no different range.

In the growth stage, we introduce different variants of Garnier as Garnier

Mens’ facewash, lotion and also work on R&D.

In the maturity phase, the product features are stagnant and new market needs
to be catered. We renovate the Garnier product.

In the decline phase, we need to remove our extra cost offerings and minimize
our cost of production and this can be done in maturity phase as well.

2. Distribution Channel:

In the introduction phase, we go for selective distribution where we select Tier-

1 cities based on our geographical segmentation.
 In the growth phase, we go for selective distribution, exclusive distribution
where we target the D2C market and intensive distribution where we target
retail stores, supermarkets and hypermarkets and introduce our product to rural
regions as well.

In the maturity phase, we tap into new markets through direct and indirect
distribution channels.

In the decline stage, the distribution channels need to be maintained and

competitive advantage needs to be reduced by providing good deals to the
existing distributor.

3. Promotion:

In the introductory phase, we do product promotion by giving samples in malls

in bigger cities, and doing advertisements. We do sales promotion by offering
different offers like discount offers.

In the maturity phase, we need to use aggressive promotional strategies after

renovating or product and doing only selective promotion.

4. Price:

In the introductory phase, as Garnier is a rich lifestyle product, the price point
of entering the market must be high.

In the growth phase, Garnier must expand. So the pricing strategy needs to
include certain discounts and offers as mass volumes of Garnier is produced,
but extensive price drop should not be done as it affects the product and the
brand value deteriorates.

In the maturity phase, aggressive price points need to be introduced as per

competitiveness in the market.

In the decline phase, the price of the products needs to be maintained as per the
maturity phase. Also, the new Garnier product lines plus the existing products
should be offered as a collective offering at a discounted price.
BCG matrix for Loreal

Question marks are in Quadrant 1. They operate in a fast-growing industry with a

small market share. It has the potential to gain market share and become stars, or it
has the potential to become cash cows as market growth slows. However, question
marks necessitate careful consideration or the pursuit of an intensive strategy
because they do not always succeed after a large investment and may become dogs.
LUXE is located in the BCG matrix's question mark segment.
Quadrant 2 is stars which demonstrates that the company operates in a high-
growth market and has a large market share It represents the company's best
long-term growth and profitability opportunity. As a result, they require
significant investment to maintain their large market share, but they also
generate significant cash from their strong relative market share.
Loreal shampoo is in the star category. It is extremely popular.
Quadrant 3 is cash cows. They are the company with a low growth rate but a large
market share. They are generating more cash than they require to run the business.
As a result, they should be "milked" by investing as little money as possible in order
to maintain their strong position.
Hair colour is in the cash cow segment of the BCG matrix because it has a low
growth rate and a high market share, and there is a relatively high chance that the
product will be dogs rather than cash cows.

Quadrant 4 is dogs. In a slow-growing market, dogs have a small market share.

In general, they are only making enough money to break even and barely enough
to keep the business running. As a result, businesses in this quadrant are
frequently divested or sold off.

The high cost and low quality of cleansing water do not bode well for a strong
market comeback.

Contrast of Product life cycle and BCG matrix: -

PLC BCG Matrix

Introduction Stars/Question mark
Growth Star/Question mark
Maturity Cash cows/dogs
decline Cash cows/dogs

Stars and question marks only occur in the introduction and growth stages.
While cash cows and dogs exist during times of maturity and decline. Therefore, new
product portfolios categories will start off as either a star or as a question mark and
then in the longer term will progress downwards (to either a cash cow or a dog).

In today’s market, many new products and technology breakthroughs are being
adopted by the market much faster than previously, which then indicates the period of
time that a product portfolio will remain as a star or as a possible question mark is
decreasing.