2011

IIM Rohtak Bharadwaj Battaram Jaideep Jaiman Sujata Swati

[HAIR CARE]

says RNCOS in its latest research report. Conditioner category (including . Hair care market in India is anticipated to reach around INR 208 Billion by 2014.1 ASPM INTERIM PROJECT REPORT Increasing consumer awareness and affordability are the two key growth drivers of the Indian cosmetic industry. Indian hair care market is undergoing a sea change in the way consumer nurture their hairs. growing at a CAGR of around 20% during 20112014.i Baby hair care market will grow at a CAGR of around 5% during 2011–2014. Traditional usage of hair oil for nurturing and hair styling makes it the biggest segment in the Indian hair care market. A strong undercurrent is being observed in the Indian hair care market with consumers showing readiness in experimenting with new products and manufacturers showering consumers with new products and services. 1.ii Below is a depiction of the hair care industry as a part of the FMCG industry in terms of size. Due to this.1 CHANGING LAST ENVIRONMENT FOR HAIR CARE (SHAMPOOS & OILS) OVER THE 10 YEARS From coconut oil to conditioners and henna to hair colorants.

has estimated the Indian hair care segment to grow at a CAGR of around 10 per cent over the next 5 years.8 per 1000 households in 2001-02 as compared to 1000. and is increasingly becoming one of the most sought-after destinations for retail investments in hair care. This gives us a good idea of the changing perception of shampoos as a dispensable product over the last 10 years. of HHs using (per 1000 HHs) Rural Demand (% of All India) *HH=Household 2001-02 21 391.000 tonnes in 2009-10 as shown in the table belowiv. The demand for Shampoos as a category of Hair Care products has risen from 7000 tonnes in 1995-96 to 50. A marketing insight report by Datamonitor.4 respectively.7 2009-10 50 583.0 in 2009-10. 1995-96 Demand (in „000 tonnes) No. 'Product Insights: Hair care in India'. Shampoos and conditioners.2 7 182.5 and 458.2 31. .9 33. making it one of the fastest growing hair care markets in the world.7 2005-06 33 480. the urban usage pattern of Shampoos in the middle income group was 827. which collectively accounted for around two-thirds of all new launches in 2009.0 From the above table. Similar figures for rural usage were 354. According to the same source. Styling and Perms & Relaxers category are still at a nascent stage and contributes only miniscule 3% of the hair care marketiii.hair oil) dominates the Indian hair care market with 48% share while Shampoo & Hair colorants form 38% and 11% share respectively. The growth is attributed to favourable demographics and key socio-economic factors such as rising beauty consciousness and increasing disposable incomes. are the mainstay of the market but categories such as styling agents and hair colorants are now beginning to gain traction.1 27. India was ranked eighth in terms of the new products launched globally in 2009. the penetration of shampoos in the rural and urban markets is very clear. Following is the CAGR in volume for Hair Oil Industry over the last 5 yearsv.

This abundance of choices makes the consumer much more demanding now than in the last decade. What used to be a commodity product. The consumer today is lot more aware due to the sheer variety of products on the shelves. has now changed into a high involvement product. Styling Gels.2 CHANGES IN THE TARGET MARKET PROFILE & CONSUMER BEHAVIOR The hair care market in India is going through a major change and has evolved over the past decade.CAGR in value for Hair Oil Market over the last 5 years: 1. with people hardly putting in any effort to select the „best thing for their hair‟. where Marico is still the market leader with its Parachute Brand. to whole new products like Hair Serums. There is a whole new range of products now available starting from the good old Hair Oil category. India has come a long way from the good old Keshnikhar days. The target market for Hair Care Products basically can be divided into 4 major categories: . and Leave-on conditioners.

there is a sense of excitement in the industry. post wash serums etc. also are demanding more and new products. Increasing Segmentation in Hair Care Products: According to the latest report “Hair care in India”.    Upper middle class. also the middle class and housewives. manufacturers of hair care products in India have realized the pressing need to differentiate their offerings from other competing brands. The aspiration value has increased beyond consumers in the tier one/urban markets across the cities. products such as hair styling creams & gels. Teenager – fast becoming a major contributing segment. including those in rural areas. Changing Consumer Aspirations: Hair care. there is a growing preference towards product made from natural/organic ingredients amongst Indian consumers. which once were nonexistent in the Indian market are increasingly finding a place in the Indian consumer‟s shopping basket. Upper class rural consumers. Increasing awareness among consumers has made manufacturers realize that a 'one size fits all' approach is no longer enough to attract customers. This has resulted in greater segmentation in the hair care market. The potential is such that major Indian manufacturers are now relaunching hair care brands that did not survive in earlier market scenarios. There are still more female buyers than male buyers. With consumers ready to experiment with new products and services and marketers churning out new products at an impressive rate. The companies also are launching separate men‟s hair care ranges. Consumers in the tier two and tier three markets. Owing to such a strong demand. once an occasion based activity. There is especially an increase of awareness amongst Indian women about hair care. Although hair colors as a market has matured. The . consumers are willing to pick up higher-priced brands. Now. This has created new opportunities for the companies in this sector. but that still has to mature. numerous personal care companies in India are introducing products that appeal to consumers who are keen to move away from conventional hair care products made from harmful chemicals. As a result. Indian consumers are not shying away from experimenting with newer or pricier products. A Shift Towards Natural/Organic Products: According to the new product insight report “Hair care in India” from Datamonitor. With globalization and greater purchasing power. With growing disposable incomes and increasing western influence. due to increasing competition. slowly there is a demand for hairstyling and hair care products from consumers. has now become an integral part of Indian consumer‟s daily beauty regime.

P&G tries to raise consumer awareness and exposure for its brands Pantene and Head & Shoulders by spending billions of dollars in advertising. With the objective of creating awareness for Parachute coconut oil.1 OBJECTIVES The IMC objectives can vary from creating and increasing brand awareness to changing perceptions about the philosophy of the company that would ultimately affect behaviour. It is also possible to increase the usage of existing customers in the product class. and loyalty. so it uses a reminder strategy.demand for customized offerings has resulted in the emergence of niche segments in the Indian hair care market. such as products which control dandruff. Sunsilk. The objectives are generally different at difference stages of product life cycle of a product. As a result. in order to convert loose oil buyers into Parachute pouch customers.3. another brand from HUL projects itself as a hair expert. products which offer protein enrichment or hair softening properties. hair loss and thinning. Other than increasing the market share. it does not need much recognition. the testimonials were not just on TV but also online through consumer generated content and in print. Rural markets or small towns. Haircare brands like Clear from HUL also go for persuasive advertising with the objective of comparing the brand with a competing brand and trying to acquire the customers of the competing brand. In essence the goal would be to increase the amount consumed per usage occasion. HUL initiated huge sampling in malls by setting up counters where consumers could get their hair washed and photographed.3 OBJECTIVES & BUDGETING FOR IMC PROGRAM 1. when HUL launched Dove in 2007. Sunsilk used the memorable slogan „Life can‟t wait‟ for its advertising campaign. the umbrella communication objective was to provide information to effectively change the target consumer's knowledge. Launched a van campaign in towns with population of less than 20000 in Tamilnadu. 1. As the brand is one of the leading shampoo brands in India. it tries to recommend a positive message about lifestyle to young generation. For example. Marico Industries Ltd. which would eventually change behaviour. Possible communications objectives may include education and information. These pictures were then showcased in the dove gallery. perceptions and attitudes towards the brand. It uses advertising for brand recall. . affecting attitudes. branding and image building. Haircare brands have also tried to acquire customers from new markets for eg. The objective for the IMC of the brand is to upgrade the value of the brand name.


 • Women believed that shine signaled health.based “heart” strategies. $12. Blink an eye." University of Tennessee professor Ron Taylor developed a model that divides strategies into the transmission view. companies spend a lot for improving awareness and visibility. and routine on the transmission side. and sensory on the ritual side. Research results. It was on the basis of the results of this research that P&G developed the advertising for its small premium brand of shampoo Pantene when in 1990 they made the decision to launch the brand around the world. and L'Oreal has just sold 85 products around the world. and the ritual view. In personal care.
 • Pro-vitamin formulation provided real support for claims. which is similar to the more feeling. which is similar to the more rational “head” strategies. "Hair So Healthy It Shines. social. 1. The company spent almost 25 per cent of its last year‟s turnover on above. and ego. compiled from markets around the world. . indicated that: • Women believed the ideal standard for hair is "healthy". The advertising was customized at the local level with the tag line.Market estimates put total L‟Oreal advertising budget at Rs 200 crore.4 CREATIVE STRATEGY In the battle for global beauty markets. that its shampoo must be used three times in a week . from Redken hair care and Ralph Lauren perfumes to Helena Rubinstein cosmetics and Vichy skin care. companies set aside 15 to 18 per cent of their turnover for such expenses. L‟Oreal spends a much higher proportion to improve its visibility.2 BUDGETING In personal care. He then divides each into three segments: ration (rational).3. 1.4 billion L'Oreal has developed a winning formula: a growing portfolio of international brands that has transformed the French company into the United Nations of beauty.
 • Women considered their own hair damaged. acute need.For example Clinic Plus recommendeds through its advertisement. Advertising was developed around the health positioning and was launched globally. This year it is expected to spend around Rs 350 crore .and below-the-line promotion.

not to the audience. advertising dramas are essentially stories about how the world works. This can also be a celebrity spokesperson or an authority figure. The speaker presents evidence (broadly speaking) and uses a technique such as an argument to persuade the audience. In advertising we use the phrase talking head to refer to an announcer who delivers a lecture about a product. get right to the point. Drama.Most advertising messages use a combination of two basic literary techniques to reach the head or the heart of the consumer: lectures and dramas. The advantages of lectures are many: They are relatively inexpensive to produce and are compact and efficient. A lecture is a serious instruction given verbally. novels. however. They can be funny as well as serious. parables. Sometimes the drama is in the story that the reader has to construct around the cues in the ad. the characters speak to each other. Like fairy tales. A lecture can deliver a dozen selling points in seconds. movies. and myths. and make the point explicitly. Through dramas. The Facets Model can be helpful in thinking through objectives and their related strategies:            Messages That Get Attention Messages That Create Interest Messages That Resonate Messages That Create Believability Messages That Are Remembered Messages That Touch Emotions Messages That Inform Messages That Teach Messages That Persuade Messages That Create Brand Associations Messages that drive action . Viewers learn from these commercial dramas by inferring lessons from them and by applying those lessons to their everyday lives. such as a doctor or scientist. advertisers tell stories about their products. relies on the viewer to make inferences about the brand.

Dove traditionally has shown women their natural beauty.indiafoodbrief. Years since their successful launch.ncaer.com/analysis/A%20Hair%20raising%20story. i ii Indian Hair Care Market Shows Enormous Growth Prospects Indian Baby Haircare Market Set to Explode http://www. and it just refuses to stop selling.pdf The AC Neilson Retail Audit Report iii iv v .pdf http://www.org/downloads/PPT/thegreatindianmarket. they still have the same message and strategy.

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