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Marketing & branding strategy for Men's Grooming Products_ L'Oreal Brandstorm Challenge
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Marketing & branding strategy for Men's Grooming Products_ L'Oreal Brandstorm Challenge

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  • 1. Team MarkSmiths Azar Zia, Nikhil Dubey, Sukesh Chandra Gain
  • 2. Male Grooming Market Body Care Market Fairness Market Hair Care Market Wellness Service Market Market Overview Market Segments Market Size and Growth Growth Drivers Increase in disposable income Increased awareness for beauty products Rise in organized retail Adoption of western culture Demand for organic and natural products Men’s Grooming Market-1500 Cr Men’s Fairness Product – 175 Cr Men’s fairness Product Market growth – 25% Men-20% of the total consumption of fairness cream Sale of Men's brand –only 5% OverallPenetration–25% 0 500 1000 1500 2000 2007 2008 2009 2010 2011 INR (Cr) Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations
  • 3. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations Beauty Products for Men (1/2)
  • 4. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations Beauty Products for Men (2/2)
  • 5. • VLCC• Jawed Habib • Kaya Skin Clinic for Men • Loreal Professionnel Hair care Products Hair loss Products Styling Range Hair Colour Face wash After Shave Gel Moisturiser Facial Kit Muscular Stress Massage Oil Shampoo Slimmer’s Aid Shower Gel Jawed Habib’s Total Hair Therapy Kit (5 Products): Shampoo, Hair Serum, Oil, Hair Spa, Conditioner • Shahnaz Hussain’s • Schwarzkopf Professional • B: Blunt• La belle Cleansers Moisturisers Hair care Products Scrubs Loreal Professionnel Products Shaving Products Skin Care Moisturiser Hair Colour (IGORA) Hair Styling (OSiS+) Hair Care Products Men’s Products & Services (Professional) Products Products Hair Care Skin Care Regular Skin Care Skin Concern Hair Free Hair Loss Prevention Skin Care / Facials Hair Treatments Face Lift / Grooming Obesity Mgmt Hair care Hair Spa Skin Care Hair Styling Hair Cut, Style, Colouring, Facials, Manicures Weight Management Beauty treatments Dermatological Treatments Hair Treatments, Facials Hair Care Styling Facials Skin Care Hair Care Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations
  • 6. Current Trends Blossoming of the ‘metro- sexual’ man More focus on male personal care products Entry of international players Increased focus on herbal and organic products Constant innovation and focus on branding Penetration in tier II and tier III cities 100% Respond ents 61% Believe 39% Does Not Believe 38% Willing SpendBelieve in Looking Best Total 62% Not Willing 76% Men Pdts Product Category 24% Any Type 100% Respond ents Total 84% > 35 Years 16% < 35 Years Use 68% 15-24 Years Age Category 32% 25 – 35 Years Current Market Trends Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations Survey Results 63% 37% Men only Unisex Choice of Salon
  • 7. Growth Opportunities Threats Global Market Local Market Characteristics of Global & Local MarketMarket Opportunities & Threats Increasing male clientele Enhanced connectivity of poorest districts Increasing number of middle class people Introduction of in-house wellness products Growing corporate life style More people moving to urban area Competition from small players Limited awareness about Men’s grooming Entry of international players Global market in 2009 - $19.7 billion Global consumption in 2009 -$61.3 billion Projected market by 2015 - $33.2 billion International players dominate the market Market is almost saturated with wide range of products Relatively New Market- 5 years old Men’s grooming market in 2010 –1500 Cr Growth rate -~22% CAGR Local payer still dominate the market Cultural barriers Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations
  • 8. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations SCHWARZKOPF Positioning: “ Professional Hair Care for you“; Schwarzkopf represents quality, expertise and innovation for more than a 100 years now Target Group: Young and Trendy Hairdressers in Tier -I and Tier -II cities Males with Graying hair in SEC A and B ORIFLAME Positioning: “Natural Swedish Cosmetics”;unique and innovative products inspired by nature with natural ingredients and developed with the latest scientific technologies Target Group: Target group is this middle class, men who aspire to look radiant and be self-fulfilled . Age 30+ SEC A, B,C AMERICAN CREW Positioning: Whether its shine, hold or texture, let American Crew men's hair products inspire your style Target Group: Men with Thinning hair. Well educated and Fashion conscious male. Age 25+ ,SEC A,B TIGI BEDHEAD FOR MEN: Positioning: A full service lifestyle that is effective, edgy and fun with a focus on maintaining healthy hair and a clean body Target Group: Teen and College going Students for whom style hair is individualistic in Urban Locations SEC A Competitors: Professional Market (Products)
  • 9. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations Positioning Jawed Habib-"The Professional" has integrated hairstyling, beauty & personality grooming in India . Perfect amalgam of Indian & western hairstyling based on science and the Geometrical System. Associates with Trident , Marriott International Target Group: College Students and Early Professionals SEC B,C Positioning The world's largest cosmetic dermatology chain customized treatments and special products to diet and skin care tips. Target Group: Young men – Age group of over 25 years, Well Educated SEC A,B Positioning Introduced a totally new concept of "care and cure“. Formulated her own Ayurvedic products growing of its own herbs to manufacturing of its cosmetics line to retail to specialized treatments through its chain Target Group: Focused on the Indian women, and Males inclined towards Herbal Beauty SEC B,C Positioning Treatment with Ayurvedic oils, massage & steam helps the penetration of herbs and is effective and long- lasting. Transforming Lives”, we imply transforming self, spreading happiness and transforming future. Target Group: Males in the 30+ age category in SEC A,B Competitors: Professional (Market Services)
  • 10. Himalaya Labs • Positioning: promise of good health and well-being; teal green represents proximity to nature, while the orange is evocative of warmth, vibrancy and commitment to caring. • Target Group: Targeted at the modern Indian consumer who is willing to pay a premium for good medicine, and for those who believe in Ayurvedic but are not inclined to go traditional Ayurvedic clinics SEC A,B Unilever Clear: • Positioning: Fights dandruff gently and effectively, giving you dandruff free hair and Strengthens hair from scalp to give you hair full of health. • Target Group: Urban and sub urban middle class, and rural poor people SEC A, B, C. Nivea: • Positioning: Consumers associate Nivea with trust, reliability and accessibility. • Target Group : Young Professionals onwards ( 25 yrs +) SEC A, B Paras: SET WET STYLE:: • Positioning: : confident sexy" positioning to life, and to create elite club of style and elegance and enjoy your role as the man who is always in the spotlight when it comes to women • Target Group: Teenagers , College Students and Young Professionals (15-35 yrs) SEC B,C Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations Competitors: Mass Market
  • 11. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations Supermarkets / hypermarkets ●Route adopted by mass market personal care products ●The major supermarkets are Big Bazaar, Pantaloons, Spencer’s Retail, Big Apple, Reliance Fresh, More etc Specialty Stores ●Premium segment or professional products of many reputed wellness stores are sold through specialty stores ●Kaya Skin Clinic, Jawed Habib’s, Reebok, Nike, Adidas brands are available through exclusive showrooms and specialty stores Pharmacy/Personal Care Stores ● Many mass market men’s grooming products are available through such stores ●Apollo Pharmacy has a pan India presence. Besides this, most local pharmacies stock these products Direct Sales/Marketing ●Brands such as Amway and Avon use the direct sales route for their products Beauty Salons ●Most professional products are sold through the salon only route. ●Kerastase, Loreal Professionnel and Matrix range of products sold through affiliated beauty salons like B:Blunt in Mumbai Internet/ Tele-Marketing ●Famous brands like Oriflame uses the telemarketing approach for distribution. ●All major beauty products are widely available through the internet L’Oreal Professionnel range of products are available in more than 50,000 salons across 100 cities in India Distribution Channels Loreal Professionnel: Distribution flow Sales Salons make availbale the products to professional hair designers as well as customers visiting them Distribution Products are made available to leading salons across the country affiliated to them Manufacturer Products are sourced from manufacturer site by importing if necessary
  • 12. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations The Common Indian Man has evolved….. Roti, Kapda aur Makaan will no longer suffice!!! Ye Dil Maange More! Growing Disposable IncomeRise in EmploymentRobust Economic Growth The Per capita income (average income) of Indians has grown by 10.5 per cent to US$ 947.21 in 2009-10 as against US$ 857.43 in 2008-09, at the current price. The Services Sector continues to grow at a fast pace, providing employment opportunities to millions across the country From 2004 until 2010, India's average quarterly GDP Growth was 8.37 percent reaching an historical high of 10.10 percent in September of 2006 .
  • 13. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations “My barber knows me very well. I get the haircut I want. Why waste hundreds of rupees on salons?” Vital Statistics Target : Mr. Sharma Age Group : 50+ years Occupation: Serviceman or Retired Income : Rs. 10000 + p.m. Mindset: Traditional Needs: Haircut & Shaving Preference : Barber Shop. Views : Salons are an unnecessary waste of money. Long-term relations with the local barber helps get customized service. Personalized attention and low fares are added benefits of local barber shop. Characteristics: •The older generation is satisfied with traditional modes of grooming. •Unwilling to change • Lack of awareness about salons •No interest in personal grooming --- just basic haircut and shave needed Perception: No differentiation in services offered by salons Target Status: Negative The Cynical Uncleji
  • 14. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations “Salons are fine for special occasions, that too when my wife insists. For regular needs, the local barber is good enough. Anyways, at my age , who needs special grooming. I also feel embarrassed of women around me in unisex salons. I prefer men only salons.” Vital Statistics Target : Mr. Gupta Age Group : 35-45 years Occupation: Corporate or Govt. job Income : Rs. 35000 + p.m. Mindset: Balance of tradition and modernity Needs: Haircut, Shaving. Occasional facials & hairstyling Preference : Barber Shop, local men only salons. Views : Doesn’t mind visiting salons once in a while. Believes that any local salon can give as good a service as branded ones, at much lower prices. Unisex salons make him uncomfortable. Characteristics: • Represents the typical middle aged family guy. Not brand conscious • The youthfulness in him is lost. Egged on by wife to visit salons for personal grooming Style not important. • Not comfortable with women around him in salons. Perception: All Salons provide same kind of service. Save costs by visiting local salons. Target Status: Neutral. An existing, but undependable TG The Couch Potato
  • 15. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations “Beauty products for men ? It’s only for effeminates. The real man doesn’t need Salons and skin whitening creams. Hair is a sign of virility & masculinity. Why fiddle with it?” Vital Statistics Target : Monty Singh Age Group : 20-35 years Occupation: Student / Professional Income : Any Mindset: Regressive, egotistical Needs: Haircut, shaving, hair color Preference : Barber Shop Views : Believes that men are by nature created to look ‘masculine’. Stuff like facials, pedicure, manicure, waxing are meant for effeminates. Abhors unisex salons and dislikes the growing trend of metrosexuality Characteristics: • Rustic, unsophisticated, lacking social etiquette • Arrogant, egoistic & stubborn • Prefers the local barber shop, if at all its services are needed Perception: Men should be ‘real’men --- shouldn’t get carried away by marketing gimmicks of beauty product companies Target Status: Negative The Desi Guy
  • 16. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations Vital Statistics Target : Mr. Rahul Khanna Age Group : 25-35 years Occupation: Corporate executive, IT professional, Media personality Income : Rs. 25,000 – 3,00,000 p.m. Mindset: Modern Needs: Hairstyling, pedicure, manicure, facials and more... Preference : Reputed Salons Views : A reputed salon is a must to take care of personal grooming needs. Looking & feeling good is essential to lead a healthy social life and be confident. Willing to spend a few more bucks for good quality service. Characteristics: • Beauty products and services for men thrive on such customers • Metrosexual man --- Status conscious with active social life •Brand conscious --- Armani and Polo are his favourite brands. Looks for reputation and quality in brands • Comfortable in unisex salons Perception: Men must take care of themselves. No sin in that. Target Status: Positive. Main TG. Money and passion --- Perfect combination. The Suave Socialite “It’s very important for me to look and feel good about myself. A good salon is extremely important for personal care and also a great place to de-stress ”
  • 17. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations Vital Statistics Target : Sameer Kapoor Age Group : 17-24 years Occupation: High School, College student, Entry-level professional Income : 0 – 15,000 p.m. Mindset: Ultra-Modern Needs: Hairstyling, hair color, facials Preference : Local Salons Views : Though he would love to visit a reputed salon, he can’t presently afford it. Understands the importance of grooming Characteristics: • MTV generation --- Global outlook & fashion conscious • High importance of personal grooming to attract the fairer sex •Brand conscious • High aspirational levels --- potential future customers Perception: Modernity requires a shift from traditional hair solutions to professionalized hair care services Target Status: Positive. Potential target group The Handsome Hunk “I’d love to visit high end salons, but right now, affordability is an issue. Good looks is a great confidence booster. Of course, have to keep myself updated with the latest trends as well!”
  • 18. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations Target Group • Age : 17-45 years • Socio-Economic Class : A, B • Lifestyle : Urban , sophisticated • Psyche: Modern and balanced • Income : INR10,000 + Customer Needs • Quality service • Value for money • All Grooming solutions under one roof • Confidence Boost • De-stressing ambience • Special products for men • Men only salons alongside unisex ones Every 2nd indian metro male has a date at the beauty salon once a month: Nielsen 3 in 5 single men claim they try to look stylish at all times Besides visiting a beauty salon, 1 in 3 Indian men claim they visit a hair salon two to three times a month Besides the most common activity – haircut – head massage and hair coloring are the next two most popular activities when they visit the salon * AC Nielsen Report, 2007 Frequency & Habits
  • 19. Schwarzkopf •Positioning: “Professional Hair Care for you“; Schwarzkopf represents quality, expertise and innovation for more than a 100 years now •Product Range: Colouring ,Taft, Taft Looks, Shampoos, Conditioners, Lotions, Serums, Men Perfect. •Promotion: Traditional •Brand Values: irresistibility, colour and inner confidence •Status: Primarily Hair Coloring Brand •Packaging: packaging is simple, elegant and precise, reflecting perfectly the professional level of the products; 13 packages with sub brand logo design L'Oréal Professionnel •Positioning: Refreshingly simple hair care, strong structured styling products, perfected for men alone by L'Oréal Homme. •Product range: Haircare, Hairloss Styling Range, Hair Color •Promotion: 1st launch of Homme by LPH, with a tagline of ‘Especially for Men’ catches the imagination of hairstylists and customers. •Brand Values: sophistication and elegance, innovation, performance, •Status: High Price, High Value •Packaging: Increasingly Environmentally Friendly. Colors vary with the different collections Nivea •Positioning: “Less alcohol, more care”. Offered smooth, freshness and soothing Qualities •Product Range: Shampoo, Hair Recharge shampoo and lotion, Style Freeze, Aqua Gel, Shower Gel •Promotion: Nivea has huge brand recall and equity. The brand has not been aggressive enough in India •Brand Values: “Mildness,” “reliability,” “gentleness,” “protection,” “high quality,” and “value for money” •Status: Family Brand •Packaging: Blue and White packaging is universal Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations Status comparison
  • 20. Strengths •Innovative Products through constant R&D •High Brand Equity,Awareness among customers for being a Trendsetter • Diversified and Effective Distribution Network. • ability to be global and to act local; market leader in the segment Opportunities •Consumers attach more & more importance to quality & global brands •Men’s attititude towards personal and hair care and more importantly Salons are changing for better •Target groups with growth potential and disposable income •Newer acquisitions—more range of products Threats •Target Group and Positioning is similar to most competitiors. Hence, Brand Cannibalisation •Entry of new Global and Local players in the hair care segment •LPH’s products are luxuries that could be hurt by an economic downturn • Non-Traditional Solutions like Ayurveda, Cosmetic Surgery Weaknesses • Low Profitability •Decentralized Organizational structure of L'Oréal Paris •Dissimilarities brought about in the campaign by worldwide operation •Only One existing product range cannot satisfy all customer needs S W TO Swot analysis Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations
  • 21. Future Marketing Mix Strategies Beauty cream - Dermatin Shaving products Deodorants and colognes - Eion Product Premium pricing Price Range Rs. 500 – Rs. 1200 Price L’Oréal Professionnel salons Hair styling salons Exclusive Homme Corner High end shopping malls ‘Men’s Corner’/‘Men’s Zone’ Place Grooming magazine - Men’s Health Celebrity endorsement Social media Promotion Existing Marketing Mix Tonique : Shampoo for normal hair Densité : Shampoo for thinning hair Energic : Energizing gel shampoo Controle+ :Daily conditioner Wax : Definition Wax Sculpte : Sculpting fiber paste Strong : Strong hold gel Clay : Strong hold matt clay Mat : Matt sculpting pomade Product Premium pricing Shampoos and conditioner : Rs. 495 Styling range : Rs. 550  Renaxil – anti hair loss shampoo : Rs. 2,200 Price L’Oréal Professionnel salons Hair styling salons : B Blunt Internert Place Internet Professionnel salons Promotion Road Ahead Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations
  • 22. Packaging Colour: Grey, black, brown, dark blueShape: Pumps and tubes Label: Identifiable, attractive graphics Logo : Tag Fresh look Ingredient Branding Highlight ‘Reason to Buy’ Packaging Strategy Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations
  • 23. Agenda Market Analysis Competitor Analysis Distribution Channel Consumer Trends Brand Analysis Strategies & Recommendations • Advertise on Yahoo India, Rediff & MSN homepage • Advertising in English on social networking sites like Facebook & Twitter • Tie-up with Zynga games to develop a game with men’s grooming as a theme --- on the lines of Farmville • Online contests such as quizzes based on brand history & recognition • Celebrity endorsement using Bollywood actor Imran Khan as brand ambassador • Sponsoring Male model hunt shows such as Gladrags Mr. India • Title Sponsors of India Fashion Week • Advertising in Fashion & Lifestyle magazines for men such as Men’s Health Promotion Strategies Internet & Social Media Fashion & Glamour World Mass media Tie-ups • •Tie- Ups with big Corporate Houses and provide grooming solutions for their male employees at discounted rates • Tie-Ups with International and reputed gyms in metros frequented by men from SEC A, B • Collaborating with professional male apparel brands & offering trial offers to loyal customers • Sponsorship & Advertment during popular cricket tournaments such as Cricket World Cup & IPL • Advertising during popular soccer leagues such as English Premier League • Advertising on English movie channels such as HBO & lifestyle channels like NDTV Good Times • Product placement in reality shows such as Big Boss, Indian Idol Promotion & Advertising Statistics reveal that TG men are not great watchers of TV nor are they fond of shopping. Cyberspace is their Comfort zone.