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Presentation on
salon industry
Ravindra walkunde
 Introduction
 Scope of salon industry
 Brands presents in the market
 Market share & growth rate
 Changing trends & Market needs.
 Future of cosmetic industry
 Challenges and realties
 Swot analysis of the industry
Overview of the business
 Giants success story
 Market research
 Marketing strategies and plans
 Pricing strategies
 Brand management
 Sales and distribution
 Integrated marketing communication.
 History
 Current scenario
 Future of salon industry
Introduction
 Fast growing
 Employment Opportunities
 Entrepreneurship advantages
Scope of salon industry
 Lakme
 Lotus
 Biotique
 L’oreal
 Shahanaz Hussain
 Revlon India
 Maybelline
 Himalaya
 Colorbar
 Elle 18
Top Brands in indian market
 National:
 Javed habib
 Lakme
 Vlcc
 B-blunt
 Enrich
 Juice
 International:
 Jean-biguine
 Saks
 Toni & guy
Chain of salons in india
 Indian cosmetic industry growing with 35%
per year
 The industry currently stands at $2 billion
and expected to touch $3.5 billion by 2015
 No. of brands also increasing due to
increasing demand
Market share & Growth rate
Product category Rs.Billion % value
Shampoos 16.5 11.7
Skin care 21 14.9
Hair dyes & colors 7 5.0
Color cosmetics 3.5 2.5
Oral care 22.5 15.9
Men’s grooming 12.75 9.0
Personal wash 55 38.9
Deo & perfumes 3.1 2.2
141.4 100%
Major segments of market
Brands % value
Godrej 24.61
Loreal 38.46
Revlon 6.15
Henkel 7.70
Others 23.08
Hair dyes & colors market share
 Changing Lifestyle: Men & women
 Increase in Income
 People prefer Professional products
 Need of small size packaging
 Price should be economic
 Good after sales service
 Attractive packaging
 Promotional offers
Changing trends & market needs
 Due to increase in consumer awareness there will
be Decrease in chemical products demand
 Incline towards Herbal products
 Great future for indian cosmetic Brands
 Market size is increasing rapidly
 Investing in cosmetic industry would be good
option due to great ROI
Future of cosmetic industry
 Scarcity of trained professionals
 Lack of well qualified staff
 Focus on revenue and not on Education
 Huge competition between Brands leading to
Sales war
 salon sales decreasing: people are becoming
educated that they have started doing colouring,
hair treatments, facials at home
Challenges & realties
Strengths:
 Continuous increase in customer database
 People are Aware about the fashion & changing
market trends
 R & D for improved beauty products
 Great margins
Swot analysis of industry
 No.of brands increasing
 Increase in public awareness
 Every brand has to spend on research and
development
 Pricing issues
 Large cost associated for new start up
Weaknesses..
 Increase in market size
 FDI in cosmetic sector
 Govt.support for more facilities
 Today India is the most youngest nation in
world so great future for beauty products
Opportunities..
 Already existing Brands
 Psychological attachment with brand
 Excessive productions
 ever changing customer demands
Threats..
 Great Understanding of customer needs
 A well segmented Product portfolio
 Effective positioning compare to competitor
 Aggressive Marketing & advertisement
 High Media budget
 Good distribution network
 Excellent pricing strategies
 R & D, Innovations
 Technical support
Giant’s success story..L’oreal
 Established in 1907 & entered India in 1991
 World no.2 & India’s no.1
 Presence in more than 130 countries with
business of around 13.7 billion euros.
 First product in india: Garnier ultra doux
 Annual growth rate is 30%
 Spending 3% revenue on R&D each year.
 2700 researchers Worldwide.
 Globally L'Oreal backs itself with the twelfth-
largest media budget in the world. In India, it is
the fifth largest media spender in the industry.
L’oreal..Stats
Region specific products
MEXICO
W. EUROPE ASIA
E.
EUROPE
INDIA
 Direct interviews of clients in salons
 Doing surveys in public areas like
malls,colleges,hotels
 Online voting, Direct mailing questionnaire to
prospective clients
 Taking feedbacks from Retailers, Distributors
 Distributing samples to salons
 Analysing the consumer buying behaviour
Market Research
 Intensive growth strategies:
1.Market penetration
2.Market development
3.Product development
4.Diversification
 Interactive growth strategies:
1.Backword integration
2.Forward integration
3.Horizontal integration
Marketing strategies & plans
 Diversification growth:
1.Concentric diversification
2.Horizontal div.
3.conglomerate div.
 Porter’s generic strategies:
1.Cost leadership
2.Focused cost leadership
3.Diffrentiation
4.Focused differentiation
 Cost based pricing
 Demand based pricing
 Competition oriented pricing
Pricing strategies
Dual price strategy in India:
 Looking at the Indian consumers, L’Oreal has developed a dual
price strategy for Indian markets
 It has made its hair care range more affordable, at the same
time the skincare segment continues to be a premium segment
 It has also introduced sachets for shampoos and conditioners
to reach the masses in India
 At the same time, L’Oreal has kept its premium image in
shampoos vis-à-vis competitors.
 So while L’Oreal Paris shampoos are priced at Rs 69 for
100ml, Pantene is at Rs 59 and HUL’s Dove at Rs 64. “
Pricing Strategies..L’oreal
 Consumers should be able to recognise your
brand
 Product differentiation from competitors
 Price based differentiation
 Less harmful than others
 Mass product or premium product
Positioning
 Hitting the right target audience with the right
product
 Diversification
 Marketing efforts
 Brand consistency
 Social image of the brand
 Update positioning
Brand management
Sources of Brand Equity
Brand
knowled
ge
Brand
Aware
ness
Brand
image
Types of
brand
associations
uniqueness of
Brand
associations
Attributes
benefits
Overall
evaluation
Product
related[color,size
,design]
Non product
related[price,pa
ckaging]
 Authorised distributors
 Organised retail
 Retailers
 Direct marketing
 Online selling
 Beauty centres
Sales and distribution
 Television advertising
 PR activities
 Promotional seminars & events
 Online marketing: social media, Blogs
 Interviews of Brand managers, industry experts,
celebrities
 Print media: Articles in magazines, press issues
 In store sales promotion
 Digital screens showing ads at public spaces
 CSR activities
Integrated marketing comm.
Thank
you

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Presentation on salon industry

  • 2.  Introduction  Scope of salon industry  Brands presents in the market  Market share & growth rate  Changing trends & Market needs.  Future of cosmetic industry  Challenges and realties  Swot analysis of the industry Overview of the business
  • 3.  Giants success story  Market research  Marketing strategies and plans  Pricing strategies  Brand management  Sales and distribution  Integrated marketing communication.
  • 4.  History  Current scenario  Future of salon industry Introduction
  • 5.  Fast growing  Employment Opportunities  Entrepreneurship advantages Scope of salon industry
  • 6.  Lakme  Lotus  Biotique  L’oreal  Shahanaz Hussain  Revlon India  Maybelline  Himalaya  Colorbar  Elle 18 Top Brands in indian market
  • 7.  National:  Javed habib  Lakme  Vlcc  B-blunt  Enrich  Juice  International:  Jean-biguine  Saks  Toni & guy Chain of salons in india
  • 8.  Indian cosmetic industry growing with 35% per year  The industry currently stands at $2 billion and expected to touch $3.5 billion by 2015  No. of brands also increasing due to increasing demand Market share & Growth rate
  • 9. Product category Rs.Billion % value Shampoos 16.5 11.7 Skin care 21 14.9 Hair dyes & colors 7 5.0 Color cosmetics 3.5 2.5 Oral care 22.5 15.9 Men’s grooming 12.75 9.0 Personal wash 55 38.9 Deo & perfumes 3.1 2.2 141.4 100% Major segments of market
  • 10. Brands % value Godrej 24.61 Loreal 38.46 Revlon 6.15 Henkel 7.70 Others 23.08 Hair dyes & colors market share
  • 11.  Changing Lifestyle: Men & women  Increase in Income  People prefer Professional products  Need of small size packaging  Price should be economic  Good after sales service  Attractive packaging  Promotional offers Changing trends & market needs
  • 12.  Due to increase in consumer awareness there will be Decrease in chemical products demand  Incline towards Herbal products  Great future for indian cosmetic Brands  Market size is increasing rapidly  Investing in cosmetic industry would be good option due to great ROI Future of cosmetic industry
  • 13.  Scarcity of trained professionals  Lack of well qualified staff  Focus on revenue and not on Education  Huge competition between Brands leading to Sales war  salon sales decreasing: people are becoming educated that they have started doing colouring, hair treatments, facials at home Challenges & realties
  • 14. Strengths:  Continuous increase in customer database  People are Aware about the fashion & changing market trends  R & D for improved beauty products  Great margins Swot analysis of industry
  • 15.  No.of brands increasing  Increase in public awareness  Every brand has to spend on research and development  Pricing issues  Large cost associated for new start up Weaknesses..
  • 16.  Increase in market size  FDI in cosmetic sector  Govt.support for more facilities  Today India is the most youngest nation in world so great future for beauty products Opportunities..
  • 17.  Already existing Brands  Psychological attachment with brand  Excessive productions  ever changing customer demands Threats..
  • 18.  Great Understanding of customer needs  A well segmented Product portfolio  Effective positioning compare to competitor  Aggressive Marketing & advertisement  High Media budget  Good distribution network  Excellent pricing strategies  R & D, Innovations  Technical support Giant’s success story..L’oreal
  • 19.  Established in 1907 & entered India in 1991  World no.2 & India’s no.1  Presence in more than 130 countries with business of around 13.7 billion euros.  First product in india: Garnier ultra doux  Annual growth rate is 30%  Spending 3% revenue on R&D each year.  2700 researchers Worldwide.  Globally L'Oreal backs itself with the twelfth- largest media budget in the world. In India, it is the fifth largest media spender in the industry. L’oreal..Stats
  • 20. Region specific products MEXICO W. EUROPE ASIA E. EUROPE INDIA
  • 21.  Direct interviews of clients in salons  Doing surveys in public areas like malls,colleges,hotels  Online voting, Direct mailing questionnaire to prospective clients  Taking feedbacks from Retailers, Distributors  Distributing samples to salons  Analysing the consumer buying behaviour Market Research
  • 22.  Intensive growth strategies: 1.Market penetration 2.Market development 3.Product development 4.Diversification  Interactive growth strategies: 1.Backword integration 2.Forward integration 3.Horizontal integration Marketing strategies & plans
  • 23.  Diversification growth: 1.Concentric diversification 2.Horizontal div. 3.conglomerate div.  Porter’s generic strategies: 1.Cost leadership 2.Focused cost leadership 3.Diffrentiation 4.Focused differentiation
  • 24.  Cost based pricing  Demand based pricing  Competition oriented pricing Pricing strategies
  • 25. Dual price strategy in India:  Looking at the Indian consumers, L’Oreal has developed a dual price strategy for Indian markets  It has made its hair care range more affordable, at the same time the skincare segment continues to be a premium segment  It has also introduced sachets for shampoos and conditioners to reach the masses in India  At the same time, L’Oreal has kept its premium image in shampoos vis-à-vis competitors.  So while L’Oreal Paris shampoos are priced at Rs 69 for 100ml, Pantene is at Rs 59 and HUL’s Dove at Rs 64. “ Pricing Strategies..L’oreal
  • 26.  Consumers should be able to recognise your brand  Product differentiation from competitors  Price based differentiation  Less harmful than others  Mass product or premium product Positioning
  • 27.  Hitting the right target audience with the right product  Diversification  Marketing efforts  Brand consistency  Social image of the brand  Update positioning Brand management
  • 28. Sources of Brand Equity Brand knowled ge Brand Aware ness Brand image Types of brand associations uniqueness of Brand associations Attributes benefits Overall evaluation Product related[color,size ,design] Non product related[price,pa ckaging]
  • 29.  Authorised distributors  Organised retail  Retailers  Direct marketing  Online selling  Beauty centres Sales and distribution
  • 30.  Television advertising  PR activities  Promotional seminars & events  Online marketing: social media, Blogs  Interviews of Brand managers, industry experts, celebrities  Print media: Articles in magazines, press issues  In store sales promotion  Digital screens showing ads at public spaces  CSR activities Integrated marketing comm.