L’oreal hair dye project report


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L’oreal hair dye project report

  1. 1. Executive SummaryThe application of the four Ps (Product, Price, Promotion, andPlace) of marketing revolves mainly around the customers in thetarget segment. The target segment for any product is thathomogeneous group of people which is purported to be the mostpotential customer for the product. The market follows the ParetoPrinciple, which says that 80 per cent of the sales come from 20per cent of the people. Thus, for any product, one of the majortasks of marketers is to identify the group of 20 per cent thatgives 80 per cent revenue of that product’s sale to the company.No surprise then that major marketing efforts of companies attemptto attract the most potential group.This project is an extensive study of the 4Ps analysis of the Garnierproducts. This detailed study helped us in understanding the Price,Place, Product and Promotion aspect of the Garnier products inthe region of study i.e. Greater Noida and Noida. After having donethis study we were able to identify the pricing strategies followed byL’Oreal in terms of their product along with their promotionalstrategy in the NCR region.This case study also helps in getting an overview of the Indian skincare and hair care market scenario, its growth trends, futureprospects and opportunities available.LOreal is one of the most successful International premium brandsin India. This French brand came to India in 1991 with its Ultra
  2. 2. Doux range of Shampoo through its Agent Laboratories Garnier. In1994 Laboratories Garnier became the 100% subsidiary of LOréal.In 2000 L’Oreal launched its range of cosmetics in to Indianmarket. The Indian Cosmetic and skin care market is estimated to bearound $300 Million. In this market the Color Cosmetic segment isaround Rs 250 crore while the Skin care segment is estimatedto be around Rs 400 crore.LOréals strategy is to evolve Garnier into a master brand,stretching across categories that over the next few years wouldinclude soap, body wash and facial care, similar to Unilever withDove. "Fructis shampoo and conditioner is core, and they areintroducing styling aids as part of a mega brand strategy.
  3. 3. PROJECT OBJECTIVE:• The objective of our project is to comprehensively researchon one of the most successful sub-brands of L’Oreal-GARNIER.• Within Garnier, we have incurred a study on the hair careproduct range of Garnier that is Garnier Fructis and UltraDoux. We have essentially focused on shampoos andconditioners.• Our research has been aimed at understanding the marketshare of Garnier within the L’Oreal brand and among otherbrands. Also we have captured the market capabilities ofGarnier hair care shampoos and conditioners.• We have researched on the brand perception of the product bythe customers and customer loyalty towards the product.• We have also stressed on the four P’s of marketing in relationto this product and the marketing strategies that have beenadopted by L’Oreal, essentially Garnier from time to time.• The stress however has been on the PRODUCT out of all thefour P’s and on the consumer behavior and their perceptiontowards the brand.• We have also focused on the current leading competitors ofL’Oreal-Garnier and conducted a brief study on theirmarketing strategies.
  4. 4. TABLE OF CONTENTS Introduction Company Profile Scope & Product Data SWOT Analysis Research Methodology Data Analysis Conclusion Recommendation Questionnare Bibliography Annexure
  5. 5. Introduction – Hair ColoursHair Dye, or Hair Color, is a chemical tool that is used to change thecolor of a persons hair. Hair dye is used mostly to change gray hair,since gray hair is a sign of an advanced age. Younger people thatused hair dye use it as a fashion statement or simply because theywant to change their hair color. The Romans have been known to beinterested in changing hair color and history revealed that theycreated over a hundred recipes that are made out of naturalingredients but unfortunately it could only darken hair. InRenaissance time, blonde was a popular choice because it wasconsidered to be angelic and attractive. In 1907, Eugene Schuler, thefounder of LOreal, created the first synthetic hair dye, but it wasntwidely sold. There has been concern about hair dye since scientist istrying to find out if there is a link between hair color and cancer.
  6. 6. L’OREAL – INTRODUCTIONL’Oreal was founded in the year 1909 by Eugene Schueller, aFrench chemist who developed an innovative hair color formula.Today, the L’Oreal Group is the worlds largest cosmetics andbeauty company and is headquartered in the Paris suburb of Clichy,France. It got its start from the hair color business but soon itdeveloped activities in the field of cosmetics, concentrating on skincare, sun protection, make up, perfumes and hair care. LOreal isactive in the dermatological and pharmaceutical fields. It is also thetop nanotechnology patent-holder in the United States. LOreal is alisted company, but the founders daughter Liliane Bettencourt whois one of the richest people in the world, and the Swiss foodcompany Nestlé each control over a quarter of the shares and votingrights. L’Oreal famous advertising slogan is "Because I’m worth it".It has recently been replaced by "Because youre worth it". Itsportfolio of brands includes the cosmetics range of LOreal Paris andMaybelline NY, shampoo range Garnier, luxury products such asLancóme and active cosmetics such as Vichy. Its closest globalcompetitor in the premium make-up segment is Revlon.India’s contribution to the growth of the global cosmeticsmarket is about 60 percent. The beauty and the wellness sector in
  7. 7. India are on a boom. L’Oreal started its operations in India thirteenyears ago. The share of the Indian market to LOreals turnoverof 15.8 billion is small, but is growing. It operates in India throughits wholly owned subsidiary, L’Oreal India and has four divisions— consumer products, professional products, active cosmeticsand luxury products. The biggest contributor to its revenue inIndia is the consumer products division led by its strongest brand interms of sales - Garnier.L’Oreal India has recently setup its own manufacturing plant inPune. It imports most of its products from its facilities abroad andmanufactures the rest in Pune. The Indian subsidiary headed byChief Operating Officer Dinesh Dayal, who has been with thecompany for 20 years, is one of the key officials responsible for theformation and operations of LOreal India. The operations in Indiaare conducted through a judicial mix of global and local methods ofadvertising to appeal to the Indian consumers. In India, the L’Orealadvertising account is handled by Mccann Erickson. L’Oreal Indiahas discovered over the years, the behavior of the Indian consumersand has realized that the Indian consumer is not as price consciousas is portrayed. The brand is more expensive than the averageFMCG, but offers a true value for money. The company’s growth inIndia can be attributed to its innovation of new products, supplychain management, systems and structure. Being the world’s secondlargest cosmetics major, L’Oreal is planning to foray into the Rs1,000-crore Indian herbal and ayurvedic cosmetics industry. Afteridentifying its targets, L’Oreal India is in advanced talks withBiotique and VLCC to acquire herbal/ayurvedic cosmetics brands.The group is taking the acquisition route to enter this niche sector.
  8. 8. L’Oreal has thus identified India as one of its top five growingbusinesses globally. LOréals research facilities in France, the USA,and Japan bring together more than 3,000 scientists and researchstaff. Their discoveries are published in leading scientific journals.L’Oréal’s innovations are patented, creating some 586 patents in2004 alone.L’Oreal’s methodologies for evaluating the safety and efficacy ofingredients and finished products, product evaluation and claimsubstantiation are recognized by the international scientificcommunity.L’Oreal products are the result of the following research,development and evaluation process:1. The benefits offered by our products are supported by thescientific and customer evidence gathered at 13 research centers, 13evaluation centers and through collaborations with leadingindependent research institutes around he world.2. L’Oréal products are validated by independent cosmetic-clinicalstudies under dermatological control to assess their efficacy andsafety. The sample size of these cosmetic-clinical studies is in linewith the industry’s standards.3. In addition, L’Oréal conducts consumer studies to assess the
  9. 9. products’ efficacy and satisfaction rate before they are launched.These tests are conducted by independent research companies andperformed on a statistically significant number of women and men.GARNIER- AN EXTENSIVE RESEARCH ON A L’OREALSUB-BRANDL’Oreal operates in India through four main divisions: consumerproducts, professional products, active cosmetics and luxuryproducts. The biggest contributor to its revenue in India is theconsumer products division led by its strongest brand in terms of sales— Garnier. In the hair color segment, Garnier operates in the mid-price and luxury segment. This has enabled it to garner a 20 per centshare in a market dominated by local hair colorants and dyes. Garnierattributes its performance to being the first player in India to introducea cream-based hair color below the price of Rs 100 (2002) and the firsthome-highlighting kit (2005).Garnier mainly produces hair care products, including theFructis line, and most recently, skin care products under thename, Nutritioniste, that are sold around the world. One of theirkey ingredients is a fruit concentrate used in all their products. It is acombination of fruit acids, vitamin B3, B6, fructose andglucose.Garnier, the LOreal-owned brand that shook up the US haircare market with the introduction of Fructis in 2003, now has plansto bring over its skin care collection too. While LOréal was
  10. 10. focusing on hair color market in the initial stages of its launch,Maybelline was in the premium color cosmetic segment whileGarnier in the "naturals" segment.In 2000 L’Oreal launched its range of cosmetics in to Indianmarket. Garnier concentrated on the Natural Hair care market withthe main USP of strong hair. The brand positioned as a Unisexbrand mainly used its international campaigns in India to appeal tothe Indian consumer. Garnier believes in beauty through nature.Scientifically developed and enriched with selected naturalingredients, its products help look healthy and feel good every day.Garnier, LOreal and Maybelline, the three brands of L’Oreal havebeen defined by their price segments and positioning. The companyhas been steadily increasing its product portfolio in the Indianmarket especially in the hair care segment. Its skin care brand ofGarnier has been extended to a shampoo and hair conditioner underthe Fructis brand, in spite of the presence of Garniers Ultra Douxshampoo and hair conditioner. Its hair coloring portfolio has alsobeen given a boost and the company has decided roped in KareenaKapoor as its new brand ambassador for its hair color brand ofGarnier Nutrisse. Garnier concentrated on the Natural Hair caremarket with the main USP of strong hair. The brand positioned as aUnisex brand mainly used its international campaigns in India toappeal to the Indian consumer.Garnier has been able to establish itself firmly in the Indian marketand has clearly defined its target market which is the middle classand the upper middle class segment. Garnier has very effectively
  11. 11. designed its promotional strategies by adapting to the changingcustomer demand. It has penetrated firmly in the Indian market bothin skin care as well as hair care products covering a wide range fromshampoos, conditioners, to gels, serums, hair mousse, anti-acneointments, anti-wrinkle creams etc. The accessibility factor ofGarnier products has been taken care of by the company by ensuringeasy availability of its products in almost all confectionery itemstores to malls and kiosks.COMPANY REVIEWGarnier offers a vast range of hair color, hair care and skin care thatbring you natural beauty.To guarantee complete satisfaction to its customers, Garnier seeks tocontinually improve product performance by addressing theircustomer’s specific needs using the company’s long expertise inhair care, hair color and skin care.To be sure Garnier products guarantee maximum effectiveness intotal harmony with the customer’s body, the company rigorouslylab-tests all its new product propositions. Evaluated by experts andconsumers before being put on the market, Garnier products giveimmediate and visible results. For the natural beauty of hair andskin, the company offers to its customers, more than simpleproducts, providing advice and routines adapted to their personalneeds.HAIR CARE INDUSTRY IN INDIA- MARKET ANALYSIS
  12. 12. The hair care market in India is valued at $200 million. It hasregistered a growth of 3.8% over the previous year. The hair caremarket can be segmented into hair oils, shampoos, hair colorants &conditioners, and hair gels. According to A C Nielsen (the worldsleading marketing information company), hair colorants, femininehygiene, and baby care have accelerated growth in personal caremarket. Hair colorants are substitutes for hair dye to counter grayinghair. Hair colorants indicate strong growth trends with a year overyear growth of 8 per cent. Gone are the days when hair conditionersand hair colorants were used occasionally to look beautiful. Today,they have become the way of life. Today, if there are more brands inthe Indian market, it’s largely due to demand. For instance whenhair colors first came to India, more than a decade ago, it waslargely to cover grey hair. But with the increasing number of youthin the country; it has become a fashion statement, especially withthe young and trendy. That’s why all the players have plans tomodify existing products, launch new products and target differentgeographic segments and age-groups. However, hair conditioners inIndia still face a difficult market due to long established habit ofusing hair oil and ayurvedic treatments, as they are cheaper forconsumers and lack the chemicals of conditioners.
  13. 13. The major players in hair colorants category are Godrej, Garnier,LOreal, and Lakme. The hair oil market is valued at Rs. 6 billions.Hair oiling is a major niche in the hair care segment. Unlike marketabroad, India has a large quantity of consumers whose hair careexpenditure also includes hair oils. The penetration level of hair oilis around 87%. Around 50% of the population uses hair oil everyday. The growth rate of hair oils in rural India is faster than thegrowth rate in urban India. The major players in hair shampoocategory are HLL, Marico, and Dabur India. Hair gel marketsegment is at a primary stage and not many local brands areavailable in India. Hair gels/creams are mainly used for hairgrooming by men and is used as a fashion accessory. The marketpenetration of hair gels/creams is very low, and is limited to a smallsection of the urban market.EVOLUTION OF SHAMPOOS IN INDIA
  14. 14. • HLL has been an undisputed leader in this market from early90’s from where the concept of shampoos got consideration.• In 1964, Sunsilk was launched on a general or a normalshampoo platform.• In 1971, Clinic Plus was launched on a different platform as ahealth shampoo for family usage.• P&G launched for the first time, an anti-dandruff shampoo in1987.• Sunsilk re-launched in 1987 - Shampoo + Conditioner withSachet packs. This time, it was launched on a beauty platformwith a new variant in its packaging.• HLL goes rural with Sachet shampoo concept. HLL was thefirst company to target the rural market with shampoos.• P&G later launched Clinic Active in 1991 focusing more onthe health platform by introducing pro Vitamin B in itsshampoos.• Sunsilk re-positioned and re-launched in 1994 (Nutracare) -Pink for dry hair, yellow for normal hair, green for oily hairand black for long hair.• This stage marked the entry of competition in India due tocertain factors such as the burgeoning middle class, a hugeuntapped market, low penetration levels, rising awareness ofthe youth.• P & G enters India in Nov 1995, with the world’s largestselling brand - Pantene• Colgate Palmolive launched Optima also in Nov 1995( breakthrough in Keratin treatment )
  15. 15. • Nirma launched Nirma Shampoo which went into roughweather because it also had a detergent and soap with thesame name. The brand name also had low price connotations.• In mid 1997, per capita consumption of Shampoo increased• Of the Rs. 350 Cr. Shampoo market, the AD segmentaccounted for a 20 % share• P & G launched its internationally acclaimed A & D shampooH & S in 1997 with Zinc Pyrithine (ZPT) - a unique anti-microbial agent. There were 2 variants - regular and menthol• Sachet sale became 40 % of all shampoo consumption in thecountry.• Clinic, Sunsilk, Organics and Lux and their various brandextensions dominate the shampoo market.• In 1998, the company re-launched Clinic and Sunsilk brands.• Sunsilk was re-launched with Fruitamins.• Today HLL has a 63 % market share in the shampoo market.• In South India, Clinic Plus and Clinic All Clear put togetherhave a market share of about 70 %• While toilet soaps have reached saturation, there is immensepotential for penetration of shampoos into Indian households.• According to NCAER, Shampoo penetration is expected togrow from 314 thousand households in 1998-99, to 506 perthousand households in 2008-09.CURRENT SCENARIO OF SHAMPOO MARKET
  16. 16. Shampoos are a significant segment of the hair care industry andthey mainly cater to the middle class, the upper middle class,teenagers and now the upper class rural consumers. The penetrationof shampoo market in India is just about 15% out of which thepenetration in the urban market is 40% and in the rural market, it is10%.There are broadly three basic segments in the shampoo market inIndia. These are:• Cosmetics• Anti-Dandruff• HerbalThe top three brands in the Normal shampoo range are Clinic Plus,Sunsilk and Chik while in Herbal shampoo range, the top threebrands are Ayush, Dabur Vatika and Nyle. The anti-dandruffshampoos include Clinic All Clear, Head and Shoulders and DaburVatika as the best performing brands. The premium products in theshampoo market include Shehnaz Hussain, L’Oreal and Revlon Flexas the ruling brands in the market. On the basis of the researchconducted by us, the shampoo market has a large untapped marketas it is still considered as a premium cosmetic product by a hugepart of the Indian population. This can be justified from the currentmarket scenario of shampoo market which states that the current percapita consumption of shampoos by Indian consumers is just 13 mlwhich is very less as compared to its other Asian counterparts wheret is about 160 ml in Indonesia and about 330 ml in Thailand.Further, our research shows the following facts:
  17. 17. • The frequency of shampoo usage is very low. Mostconsumers use shampoo only once or twice in a week. Inmany cases, these products are used on special occasions suchas weddings, parties etc.• Some customers use shampoo only to address a specificproblem such as dandruff or when they need to condition theirhair.• Use of conditioners is not common. It is restricted to thesuper premium segment or those who are very involved withtheir hair care.• Some consumers use natural conditioning agents such ashenna.• About 50% of consumers use ordinary toilet soaps to washtheir hair.• About 15 % of consumers use toilet soaps as well as shampoofor cleaning their hair.• Brand loyalties in shampoo are not very strong. Consumersfrequently look for a change, particularly in fragrance.• Consumers attribute lathering to the act of cleaning.• Major expectations from the product are improvement intexture and manageability, giving softness and bounce to hair,curing and avoiding damage to the hair.• An Indian needs more shampoo for a proper wash ( average 6ml ) compared to 4 ml needed in Western countries as mostIndian women have long hair• Most consumers do not use shampoo daily.
  18. 18. • Regular users would need smaller quantity of shampoo perbath. Hair tends to collect more dust due to dustyenvironment and oiling habits.• Southern market is predominantly a sachet market,accounting for 70 % of sachet volumes.• In Contrast, shampoo bottles are more popular in the Northernmarkets.• About 50 % of the shampoo bottles are sold in the Northernregion alone.• In the North, local brands such as Ayur have strong equitiesand these products being low priced dilute sachet’s USP oflow price.With changing times, this particular market segment is alsoimproving at a fast pace. The main challenge therefore in front ofmarketers is to increase the product awareness in the Indian marketand also focusing on targeting the rural market which is majorlyunaware about the product. It is due to this reason hat Ad campaignsare on a rise as there is a lot of competition in this area and there arelow penetration levels with a large untapped market. There arecertain brands that are actively increasing their presence in themarket by marketing their shampoos through different channels,especially online marketing.
  19. 19. SKIN CARE INDUSTRY IN INDIA- MARKET ANALYSISThe skin care market is valued at $180 million in India. With safeand effective procedures, advancement in medical technology,increase in awareness, the Indian Skin care solutions business isgrowing very fast.The skin care market can be segregated into toners, cleansers,sunscreens, anti-wrinkle creams, dark circle removing creams,astringents, facial creams, moisturizers, fairness creams, day andnight creams, etc. Out of these, facial creams, moisturizers, fairnesscreams, day and night creams, etc. are the most popular productsand account for approximately 60% of the skin care segment.The skin care market is at a primary stage in India. The penetrationlevel for both the urban and rural market is low. Many people stillprefer to use homemade and traditional products to cure the skinproblems. However, within a period of five-six years, the use of skincare products has increased significantly in India. With changinglife styles, increase in disposable incomes, greater product choiceand availability, and influence of satellite television, more peopleare taking interest in personal grooming. The facial skin care marketis booming. Products are competing with one another to take shelfspace in the retail stores. Facial skin care products have become anessential part of the beauty market. Like western countries, creamsand potions are applied in India also, in an effort to remove thepimples and the acne, fight stress and worry lines, and to remainyoung. Since the penetration level is still relatively low, growth isexpected to be around 25% over the next five years.Some of the major players in this segment are Hindustan Lever (Fair& Lovely, Lakme, Ponds) with a market share of 53%, followed byCavinKare- Fairever with a market share of over12 % and Godrej-
  20. 20. Fair Glow with a market share of 3.4 %. The other players that havea presence in the market are Emami (Gold Turmeric and NaturallyFair), Revlon (Fair & Glow).GARNIER TESTING POLICIES:All products are the result of rigorous research and development andbenefit from the expertise of our multi-disciplinary scientists &research staff. Their discoveries are frequently published in leadingscientific journals and have resulted in several patents.Garnier uses methodologies recognized by the internationalscientific community as part of its products development processwhich assess their safety and effectiveness.Stages of research, development and evaluation at Garnier:• STAGE I: Garnier products benefits from scientific andcustomer research gathered from several research centers andevaluation centers around the world.• STAGE II: Independent clinical studies to assess theeffectiveness and safety of our products. They can be doneunder dermatological or Ophtalmological control.• STAGE III: Consumer studies verify product effectivenessand consumer satisfaction rates before the product islaunched.• STAGE IV: Once products are launched; customersatisfaction surveys are also carried out. These involveinterviewing a statistically significant number of people who
  21. 21. have bought and used the products for several weeks. Thisinformation helps us to monitor levels of satisfaction and weuse this type of customer feedback to evaluate and improveour products on an ongoing basis.STUDY OF 4 P’S OF GARNIERHAIR CARE PRODUCTS• Garnier Fructis Daily CareGarnier Fructis Daily Care is fortified with Reinforced ActiveFruit Concentrate - an innovative combination of vitamins B3and B6, fructose and glucose. Gentle enough for everydayuse, it nourishes, strengthens and smoothes each hair strand,keeping it balanced and healthy-looking. Hair is up to 5xstronger, up to 5x smoother and so much shiner. The result:Great-looking hair that is anything but ordinary.
  22. 22. • Garnier Fructis Color ShieldGarnier Fructis Color Shield is fortified with UV protectant andReinforced Active Fruit Concentrate - an innovative combination ofvitamins B3 and B6, fructose and glucose. Specially created to carefor color-treated or highlighted hair, it penetrates inside the hair tomoisturize and strengthen it. With UV protectant, the formula helpskeep your color-treated hair brilliant and shiny on the outside. Hairis up to 5x stronger, up to 5x smoother and so much shinier, so colorlooks brilliant longer.• Garnier Fructis Moisture Works
  23. 23. Drench your hair with moisture! Fortified with Reinforced ActiveFruit Concentrate - an innovative combination of vitamins B3 andB6, fructose and glucose - this creamy system helps restore moisturein dull, brittle or dry hair. Moisture is replenished and brilliant shinereturns. Hair is up to 5 times stronger, up to 5 times smoother and somuch shiny• Garnier Fructis Sleek & ShineCan your frizzy, coarse, rebellious hair withstand even the mosthumid weather? Get the strength to fight frizz with Garnier FructisSleek & Shine. Its specially created to smooth dry, unmanageable
  24. 24. hair and contains Nutritive Fruit Micro-Oils - an innovativecombination of apricot and avocado oils, and vitamins B3 and B6.Hair is 5x stronger, 5x smoother and so much shinier. The result:Long-lasting frizz control for hair thats incredibly sleek, even withmoisture in the air.• Garnier Fructis Length & StrengthImpossibly long locks arent impossible with Garnier Fructis Length& Strength! Stronger hair grows even longer. Its the first anti-breakage system with Reinforced Active Fruit Concentrate - aninnovative combination of vitamins B3 and B6, fructose andglucose. Specially created for hard-to-grow-long hair, this systemreinforces hair, protecting it from breakage and split ends.• Garnier Fructis Anti-DandruffSoothe your scalp! Created with Pyrithione Zinc and Active FruitConcentrate - an innovative combination of vitamins B3 and B6,fructose and glucose - this double-action formula is gentle on your
  25. 25. scalp, but ruthless on dandruff. Its a powerful force for healthy-looking hair and the confidence that comes with it. It helps eliminatethe symptoms of dandruff, effective with the first wash, and makesyour hair up to 3 times stronger! The result: No flakes guaranteed.• Garnier Fructis Strength & RepairGarnier Fructis introduces the Strength & Repair System to helpreverse the signs of damage in one week, leaving hair intenselynourished, repaired from the inside out and more resistant tobreakage. The formulas with Nutritive Fruit Micro-Oils - acombination of apricot and avocado oils - nourish hair, andCeramide Reconstructor to help repair and fortify hair.SKIN CARE PRODUCTS
  26. 26. Garnier Pure Anti-blemish ProductsGarnier Pure Anti-blemish - Garnier Pore purifyingAstringent, Garnier Pure Pimple Control Pen, GarnierPure Exfoliating Face Wash, Garnier Pure Deep CleanGel Face Wash, Garnier Pure Daily Treatment Cream.Garnier Light Fairness Anti-Marks ProductsGarnier Light Fairness Anti-Marks Products - GarnierFairness Face Wash, Garnier Fairness Wipe-off Lotion,Dark Spots Prevention moisturizer, Garnier Anti-marks& Fairness concentrate, Garnier Total ComfortNourishing + Anti-tightening cold cream, Garnier LightMatte Mattifying Fairness Cream, Garnier Light UnderEye Dark Circle Lightening Cream.Garnier Essential Cleansers ProductsGarnier Essential Cleansers - Garnier Gentle FaceWash, Garnier Gentle Cleansing Milk, Fresh Clean feelFace Wash.
  27. 27. Garnier Essential Care ProductsGarnier Essential Care - Garnier Daily MoisturizingLotion, Garnier Daily Moisturizing Cream, GarnierReplenishing Night Cream, Garnier Eye Contour Gel.Garnier Sun Control ProductsGarnier Sun Control - Garnier Daily Moisturizer, Dailymoisturizer SPF 15 / UVA +, Daily moisturizer SPF20 / UVA.Garnier Wrinkle Lift Anti-ageingProductsGarnier Body cocoon BodyMoisturizersGarnier Wrinkle Lift Anti-ageing-Garnier Anti ageing Cream.Garnier Bodycocoon BodyMoisturisers - Intense Moisture Lotion.
  28. 28. NATURAL INGREDIENTS OF GARNIER:FRUCTOSE AND GLUCOSE:Fructose is also known as fruit sugar because it is abundantlyfound in fruits. It is generally associated with Glucose. They area part of the class of Carbohydrates, which represent animportant source of energy for all living organisms. The role ofFructose and Glucose in nourishing hair was demonstrated by invitro culture of hair follicles. Fructose and Glucose are fuel forhair.FRUIT AHA’s:Alpha Hydroxy Acids are a specific and original chemical familythat is found in numerous fruits: malic acid in apples, citrus acidin citrus fruits, and tartaric acid in grapes. Of these, citric acid isthe most nourishing for the hair; it penetrates deep into the hairto improve the mechanical resistance of hair structure.GREEN TEA EXTRACT:It is obtained from young dry leaves which have been macaratedand percolated in cold extraction process in order to reserve theplant’s active components. Green tea contains Caffeine, whichhas stimulating properties and is considered a medical plant.
  29. 29. CAFFEINE:The stimulating properties of caffeine help to break down fat. Itis also known for its beneficial effect on micro-circulation andfor its decongesting properties.ANTI STORAGE GINGKO:Gingko slows down storage of fats and is renowned for itfiltering properties.GRAPE SEED OIL:Fragrant fruit oil concentrate that starts nourishing while onecolors his/her hair.VITAMINS B3 AND B6:These vitamins are organic compounds which are vital forcellular life: they actively participate in metabolic reactions.Vitamin B6 can be found in various fruits including avocado,grapes, pineapple and peaches. Vitamin B3 can also be found infruit; apricots, bananas, lemons, figs, pears.FRUIT OILS:Garnier has selected a unique combination of fruit oils fromolives, grape seeds, blackcurrants, avocado, almond and apricotto help replenish lipids that the skin is lacking.
  30. 30. PROMOTIONGarnier has been very active and upfront in adopting newpromotional techniques to market its products. The companyfollows a very popular technique to advertise and market itsproducts that is the Viral Marketing policy. Viral marketing is aterm coined to define the productive ways a marketing message ismade available. And corporate are using the medium to circulatebrands and brand messages. The idea has caught on like a virus, asefficiently as Information Technology has entered households andbusinesses.Firms are now structuring their businesses in a way that allows themto grow like a virus and lock out the existing brick and mortarcompetitors through innovative pricing and exploitation ofcompetitors distribution channels. The beauty of this marketingtechnique is that none of it requires any marketing. Customers, whohave caught the virus, do the selling. Viral marketing describes anystrategy that encourages individuals to pass on a marketing messageto others, creating the potential for exponential growth in themessages exposure and influence. Like viruses, such strategies takeadvantage of rapid multiplication to explode the message tothousands, to millions.Off the Internet, viral marketing has been referred to as "word-of-mouth, "creating a buzz, "leveraging the media and even"network marketing. Its a deceptively simple concept: Create amessage, send it via e-mail, and make it so compelling that
  31. 31. recipients want to pass it on to everyone in their address book.Advertisers are hot on the tactic, and the idea of putting consumersto work spreading the word about a brand or service seems sound.What is unique about the concept is that where brands or brandideas are exchanged within communities, they are idea-led, notadvertising-led. There are some high-profile viral success stories.Like Hotmail. By simply sending an e-mail, consumers hawked theservice because every message contained a Hotmail ad that helped itgrow to 12 million accounts in its first year, way back in 1996. The1999-hit film The Blair Witch Project also benefited from a similarcontagion. On web sites and in chat rooms, the films promotershinted that the fictional tale was really a documentary and let thebug run wild. In most cases, the consumers were bitten.When Garnier launched its Fructis shampoo, they latched on to theidea. The firm had to introduce the aspect of five times stronger hairand the firm had a braid competition whereby consumers couldregister on a site and create a knot on the Fructis braid, as part oftheir entry into the contest. The knot creation was actually created(visually presented on the site) and as a next step, consumers wereexpected to invite their friends to visit the braid and add to theirscore. A record 76,000 consumers created their own knot on thebraid and forwarded the link to more than 82,000 of their friends, asurvey report indicated. Viral marketers practice delayedgratification. They may not profit today, or tomorrow, but if theycan generate a groundswell of interest from something free, theyknow they will profit soon and for the rest of their lives. Since Freehappens to be the most powerful word in a marketers vocabulary,most viral marketing programmes have attached themselves to it.
  32. 32. The idea is to give away valuable products or services to attractattention. And, more importantly, someone elses resources aredepleted rather than our own. Garnier has positioned itself as alifestyle product mainly targeting teenagers and young girls. This isvery evident from Garnier ads be it for Garnier fructis shampoos orfor hair color. In a recent advertisement of Garnier hair color, adaughter advises her mother to try the product and thus makes anattempt to promote product among middle-aged women. Hence,expanding the base of the target segment gives a whole new marketto marketers, provided they are successful in convincing thecustomers of the second-rung segment.Companies need to be very strategic in presenting the product andits features to attract another segment.At the same time, companies need to be sensitive about the impactof targeting other segments on the existing target segment. It may bedamaging, especially, if in a process of expanding its customer base,a premier brand is targeted at the aspiring middle-class also. In caseof any signals of lowering demand with the existing target group,companies should adopt line extensions by bringing suitablechanges in the products.Advertising and marketing specialists are aiming at young,urban Indian women, who are earning their own money and arepotential customers for a host of products, including name-brand clothes, cosmetics and new cars.
  33. 33. Relying on international ad campaigns:Increasing its ad spend for the launch of its new products, LOrealhas been relying more on its international campaigns to make animpact in the Indian market. McCann Erickson in Mumbai handlesthe LOreal and Maybelline account while Publicis India is in chargeof Garnier. "The ad accounts have been aligned according to ourinternational affiliations with these agencies and we try to have amix of both the Indian and international ads," says Mr. Rajgopal.LOreal India currently has three brands in its consumer productsportfolio and there are product overlaps between its hair care, skincare and color cosmetics brands. Garnier, LOreal and Maybellinehave been defined by their price segments and positioning.L’Oreal Group and Godrej Consumer Products dominate Spends on HairDyes in Television AdvertisingLast time, we had seen that Shampoos was not a very seasonal category interms of advertising on TV. Lets check out the trends for another similarcategory from the Personal Care Sector-Hair Dyes. The below graph suggeststhat like Shampoos, Hair Dyes do not show any seasonality in terms ofadvertising peaks.
  34. 34. Lets look at the top players in the Hair Dyes category. L’Oreal Group andGodrej Consumer Products Ltd are the two big giants in this category. Theirshare of expenditures on this category on Television are close to each otherwith L’Oreal getting the top slot with nearly 38% share of the advertising piewhereas Godrej Consumer Products gets 33% share of advertising. At the 3rdplace we have Hygienic Research (although the margin between the 2nd and3rd position is large) with nearly 18% share of advertising followed by HennaExport Corporation and Cavin Care Ltd with 5.5% and 3.8% shares ofadvertising respectively.
  35. 35. Moving on to the Top Brands in this category-its once again flooded byLOreal Group & Godrej Consumer Products. Garnier Color Naturals (L’Oreal)is in the top position whereas its other product - Nutrisse Hair Color Mask andL’Oreal Excellence Cream are at the 4th and 5th position. Super Vasmol 33(Hygienic Research) is at the 2nd position. At the 3rd position, we have GodrejPowder (Godrej Consumer Products) whereas its other products - Godrej ColorSoft, Godrej Kesh Kala Tel and Godrej Herbal Hair Dye are at 6th, 7th & 9thposition respectively. Black Rose Kali Mahendi at 8th while Indica Hair Dyegains the 10th position.
  36. 36. Promotional Strategy
  37. 37. The cosmetics giant is using hairdressing schools to stimulatedemand for products many Indians saw as an alienextravagance.Above a bank in north Bombay, India’s future hairdressers aresculpting the tresses of volunteer models more willing to let traineesloose on their hair than a seasoned local stylist wielding a bottle ofdye. “Everyone is very particular about their hair these days,” saidRuchi Khater, from beneath a stack of silver foil at L’Oréal’shairdressing academy.For a customer who needs more than a trim, a visit to a hairdresserin India has traditionally been something of a hair-raisingexperience. This was particularly true for fair-haired Westernwomen with layered styles and blonde highlights. They learnt thehard way that Indian hairdressers know little of color beyond a jet-black rinse or a streak of henna.That is not surprising as 85 per cent of Indian women have long,straight hair. Their natural tone is dark and they prefer homeremedies recommended by their mothers. Most still use hair oil- vegetable oil, no less – rather than fancy conditioners.It is a challenging environment for any company trying to sellpackaged beauty products – to the majority of India’s 1.1 billionpeople they are not only alien but also an extravagance.The solution for L’Oréal, the world’s largest beauty and cosmeticsgroup, was to create a market from scratch.Since it opened its first academy in Bombay in 2006, 73 hairdressershave graduated. The six-month course turns out professionals
  38. 38. capable of working as a junior in one of the select but growingnumber of international-standard salons in India’s big cities.L’Oréal’s distribution network also plays a vital role. Over the pastdecade the company has trained more than 30,000 hairdressersin India in the use of its products.And it has helped to establish about 300 salons in the past fiveyears. The theory is simple: If there is no natural demand for yourgoods, stimulate it. “We have created a profession and a market,”Didier Villanueva, L’Oréal India’s country manager, said. “If youtrain people they will use your products.”The students, who pay 200,000 rupees (£2,440) each, are green tosay the least. “Most who come do not know how to hold scissors oruse a blow dryer,” Caroline Lannuzel, academy director, said.Competition is strong with more than 50 applications for 15 places.Sohini Rohra, 24, a former model, got in. “People did not knowwhat a bad haircut was. My mother’s generation did not have a cluebecause there was no exposure to these things,” she said.In a media-driven culture obsessed with Bollywood, urbanconsumers are very demanding and image is everything. Theyread glossy magazines such as Vogue, which launched an Indianedition in September, and follow the changing fashions of theirfavourite celebrities.Much like Britain’s tabloid fascination with David Beckham’schanging hairstyles, the recent decision by Mahendra Singh Dhoni,the 26-year-old captain of the one-day cricket team and the face ofBrylcreem in India, to chop his long locks made front-page news.
  39. 39. Unprecedented economic growth in India, which is forecast byMcKinsey to become the world’s fifth-biggest consuming nation by2025, has created a raft of opportunities for international lifestylebrands.Emerging markets such as India are driving the growth of thecosmetics industry. L’Oréal, which uses Aishwarya Rai, theBollywood star and former Miss World, as one of its internationalfaces, estimates there are 70 million potential consumers beingcreated every year.Its sales in India, where it is No 2 behind Unilever, are growing at35 per cent a year. This year, they are about €100 million (£71million).Although L’Oréal’s professional products division representsonly 17 per cent of total revenues, hair color was the Paris-basedgroup’s genesis and remains the creative heart of the business.Money-spinning mass-market brands such as Garnier are beingpushed hard in India, where the company estimates there is amarket of 50 million people.Its rivals agree. Franck Provost, the beauty salon group, also has ahairdressing academy in Bombay and Toni & Guy opened a salonthis year.Two thirds of the population is under 35: youth will drive growth. Inthe L’Oréal academy, it has at least two new potential customers.L’Oréal hopes that very soon it will be because they think they’reworth it.
  40. 40. In India, advertisements for LOréal-branded products and thecompanys Garnier line generally feature a pale model and focus onthe ingredients in the product, using take-action language like "YESto fairer and younger looking skin" or "Against inside celldamages."
  41. 41. TYPES OF HAIR COLORThe four most common classifications are temporary, semi-permanent, demi-permanent (sometimes called deposit only) and"permanent".Temporary hair colorTemporary hair color is available as rinses, shampoos, gels, sprays,and foams among others. This type of hair color is typically brighterand more vibrant than semi-permanent and permanent hair color.Temporary color is most often used to color hair for specialoccasions and is often used in unusual shades for events, parties, cosplays, and Halloween.The pigment molecules in temporary hair color are large and cannotpenetrate the cuticle layer. Instead, the color particlesremain adsorbed (closely adherent) to the hair shaft and are easilyremoved with a single shampooing.However, even temporary hair color can persist if the users hair isexcessively dry or damaged, allowing for migration of the pigmentsto the interior of the hair shaft.Semi-permanent hair colorSemi-permanent hair dye has smaller molecules than temporarydyes, and is therefore able to partially penetrate the hair shaft. Forthis reason, the color will survive repeated washing, typically 4-5shampoos. Semi-permanents contain no, or very low levels ofdeveloper, peroxide or ammonia, and are therefore safer for
  42. 42. damaged or fragile hair. However, semi-permanents may stillcontain the toxic compound P-Phenylenediamine or other suchingredients.The final color of each strand of hair will depend on its originalcolor and porosity, so there will be subtle variations in shade acrossthe whole head. This gives a more natural result than the solid,allover color of a permanent dye. However, it also means that grayor white hairs will not dye to the same shade as the rest of the hair.If there are only a few gray/white hairs, the effect will usually beenough for them to blend in, but as the gray spreads, there will comea point where it will not be disguised as well..In this case, the move to permanent color can sometimes be delayedby using the semi-permanent as a base and adding highlights.Semi-permanent color cannot lighten the hair.Demi-Permanent hair colorDemi-permanent hair color is permanent hair color that contains analkaline agent other than ammonia (e.g., ethanolamine, sodiumcarbonate) and, while always employed with a developer, theconcentration of hydrogen peroxide in that developer may be lowerthan used with a permanent hair color. Since the alkaline agentsemployed in dem-perms are less effective in removing the naturalpigment of hair than ammonia these product provide little to nolightening of hairs color during dyeing. As the result, they cannotcolor hair to a lighter shade than it was before dyeing and are lessdamaging to hair than their permanent counterpart.
  43. 43. Demi-permanents are much more effective at covering gray hairthan semi-permanents, but less so than permanents.Demi-permanents have several advantages as compared withpermanent color. Because there is essentially no lifting (i.e.,removal) of natural hair color, the final color is lessuniform/homogeneous than a permanent and therefore more naturallooking; they are gentler on hair and therefore safer, especially fordamaged hair; and they wash out over time (typically 20 to 28shampoos), so root regrowth is less noticeable and if a change ofcolor is desired, it is easier to achieve. Demi-permanent hair colorsare, in essence, permanent color and the darker shades in particularmay persist longer than indicated on the packet.Permanent colorAll "permanent" hair color products and lighteners contain adeveloper, or oxidizing agent, and an alkalizing agent ammonia.When the tint containing the alkalizing ingredient is combined withthe developer cause a chemical reaction that swells the hairpermitting the tint to enter the cortex, where the melanin is located.The melanin is lightened and subsumed by the new color.The ammonia swells the cuticle of the hair to allow the colorpigments to penetrate deep into the hair shaft.Permanent color is truly permanent and will not wash out, althoughit may fade. New hair regrowth will obviously be in the hairsnatural color, meaning that regular monthly or six-weekly coloringwill be essential for as long as the hair color is maintained.
  44. 44. Permanent hair color is the only way to dye dark hair into a lightershade, and it must be done in two parts: First, the hair is lightened,and then color is applied.Ways to get rid of permanent hair color include bleaching (if youdont mind damage or yellow/orange hair), stripping with a colorremover (which will return hair to its normal color if hair has onlybeen dyed with a permanent color once), or just cutting off thepermanently dyed hair.
  45. 45. APPLICATION TECHNIQUESHair color was traditionally applied to the hair as one overall color.The modern trend is to use several colors to produce streaks orgradations, either on top of the natural color or on top of a singlebase color. These are referred to as: Highlighting, where sections of hair are treated withlighteners, usually to create blond streaks. Lowlighting, where sections of hair are treated with darkerhair color.These can be applied by the following methods: Foils, where pieces of foil or plastic film are used to separateoff the hair to be colored; especially when applying more thanone color. Cap, when a plastic cap is placed tight on the head andstrands are pulled through with a hook. Balayage, where hair color is painted directly onto sections ofthe hair with no foils used to keep the color contained.All application techniques can be used with any type of color. Forhighlights, the hair will usually have to be bleached before coloring.
  46. 46. HAIR COLOR MARKET IN INDIA After L’Oreal, Godrej and Garnier, the new player to enterthe Indian retail market is German major Henkel-Schwarzkopf. Today, the total hair colour industry in India is around Rs.650crore. This is further divided into two segments i.e. Retail category&Salon category. The Rs.450 crore retail segment, which is growing at a 20 percent clip annually. The two big brands in the salon category are multinationalsL’Oreal and Schwarzkopf. Industry sources pegSchwarzkopf’s share at 24 per cent with L’Oreal dominatingat 76 per cent.Factors that influence consumer behavior Cultural Factors:-Social class, Geographical area &Individual perception. Social Factors:-Reference groups & Family.
  47. 47.  Personal Factors:-Buyer’s age & Stage in the life cycle,Occupation & Personality of buyer & Lifestyle.Health HazardsSkin irritation and allergyIn certain individuals, the use of hair coloring can result in allergicreaction and/or skin irritation.Symptoms of these reactions can include redness, sores, itching,burning sensation and discomfort. If any of these symptoms occur,alert your hair colorist immediately so that they can remove thecolor. Symptoms will not always be present right at the applicationand processing of the tint but can also arise after hours or even aday.To help prevent or limit allergic reactions, the majority of haircolor products recommend that the client conduct a patch test beforeusing the product. This involves mixing a small quantity of tintpreparation and applying it directly to the skin for a period of 24hours. If irritation develops, manufacturers recommend that theclient not use the product. A skin patch test is advised before the useof every coloring process, since allergies can develop even afteryears of use with no reaction.Adverse reactions can result from both at-home and salon haircoloring products, as similar chemicals are used in both settings.In some cases, allergic reactions are caused by the aniline derivativeand/or p-Phenylenediamine (PPD) found in permanent hair color.
  48. 48. Hair breakageHair that has been damaged by excessive exposure to chemicals isconsidered over-processed. This results in dry, rough and fragilehair. In extreme cases, the hair can be so damaged that it breaks offentirely. This is especially true for Afro-textured hair, especially ifused in combination with relaxers. Treatments are available but theonly real solution is to stop the use of chemicals until the hairrecovers.It is advised that colored hair be deep conditioned regularly, andwashed and conditioned with gentle products specifically designedfor color-treated hair. This will help keep the hair intact, as well asensuring that the color doesnt fade as quickly.Skin discolorationSkin and fingernails are made of the same type of keratinizedprotein as hair. That means that drips, slips and extra hair tintaround the hairline can result in patches of discolored skin. This ismore common with darker hair colors and persons with dryabsorbent skin.This discoloration will disappear as the skin naturally renews itselfand the top layer of skin is removed (typically takes a few days or atmost a week). A good way to prevent dye discoloration is to put athin layer of Vaseline or any oil-based preparation around thehairline. It is recommended that latex gloves be worn to protect thehands.
  52. 52. PRICE
  53. 53. The target segment for any product is that homogeneous group ofpeople which is purported to be the most potential customer for theproduct. The market follows the Pareto Principle, which says that 80per cent of the sales come from 20 per cent of the people. Thus, forany product, one of the major tasks of marketers is to identify thegroup of 20 per cent that gives 80 per cent revenue of that product’ssale to the company. No surprise then that major marketing effortsof companies attempt to attract the most potential group. In thepresent stage of immense competition, companies are required toeffectively plan their pricing strategies to not only retain currentcustomers but to also expand the customer base by targeting newsegments with an aim to convert them into loyal customers.Trying to strike a balance in its pricing strategy for the Indianmarket, `LOreal India Private Ltd believes that by introducingmore stock keeping units (SKUs) it will be able to tide over thesteep pricing of its products.Mr. Ashwin Rajgopal, Marketing Manager, LOreal ConsumerProducts, told Business Line that, "We are looking at pricing in theIndian context and there is a kind of balance we have struck.Considering the large number of SKUs that we already haveworldwide, it is possible to market the products at an almostcomparable pricing."Considering the company has set up its manufacturing facilities inPune and has also been sub-contracting its products, it has beeneasier for it to control its prices in the Indian market.
  54. 54. For aspirational products Garnier has adopted an internationalpricing strategy, which may not be the case for the rest of theproducts. However there is no hard and fast ruleBesides, the company has also been customizing its products forthe Indian market and there is expected to be a blend of bothinternational as well as Indian formulations for its products. Forinstance its Garnier brand of Color Naturals is an `Indianisedproduct.LOreal’s innovations always start from its luxury brands thenpenetrate to the brands in different price level and differentmarkets eventually implemented in its consumer brands. Theinnovations based on the same technology platform will reduce thecost. The knack for LOreal to create the advantages is to spreadaround strategic investment by sharing the production of innovationbetween different product divisions. LOreal not only focuses on thesingle brand but also pays attention to the technology relevancy inthe series of brands. For example, LOreal first introduced a breakthrough anti-aging composite by using Lancôme brand.Subsequently, it was implemented in Vichy brand and brought intothe consumer product division eventually. The broad distributionchannel of consumer products was used to promote this technologyat last. In term of same products in the different market, LOreal alsoexerts the technology platform to meet the specific needs ofconsumers. From LOreal’s experiences, the core technologyplatform is a key component to the success of an internationalcompany with complicated brand house. Without leveraging theresources between brands, it will cause increase of operational costand waste of resources and will be very hard to manage the
  55. 55. LOreal’s sophisticated brand architecture. Other than building thebrand structure according to the product identity, LOreal relied ondistribution channel to carry out its strategy of brand structure.There are four product departments in LOreal’s structure. Everydepartment has several brands and each brand has many names.They are conspicuously different in packages and with distinctimage and advertising. The different brands share the resources ofdistribution channel and have high integration effect onmanagement. The luxury brands of L’Oreal are sold in strictlyselected distribution channel like department store, perfumeries andtax free shop. Professional products are provided to the hairdressers.Active cosmetic products are sold in pharmacists. The mostimportant sector consumer products are distributed through massconsumption channel like department store and supermarket.LOreal has formed a brand matrix with great power of integration.Any new brand merged into the relevant channel will fully utilizethe resources in existing channel as well as expand LOreal’s wholedistribution channel by integrating its original channel. Thedissemination of brand will improve company’s overall influentialpower.LOreal recognized the leverage effect of it brand and focus itspropagandas on brand rather than propagandas on particularproduct. It is dedicated in building the relationship between itsbrand and the market. It aims to enhance brand power bymaintaining the good image in publicities. LOreal’s efforts werealso embodied on its marketing strategy. It always concentrates onsupporting those brands which can mostly represent its advantagesand leverage resources to those premium products.
  56. 56. Firms that aim to expand internationally or strengthen marketposition tend to acquire new brand into the brand architecture.Acquiring influential and well positioned brand is an importantstrategy of LOreal in developing its brand architecture. It achievesrapid growth by acquiring brand in same or related business and iscontinually seeking these opportunities in the worldwide scope.LOreal expanded its brand architecture by acquiring Maybellinebrand in 1996, which was a very successful transaction. TheMaybelline’s image was enhanced by branded LOreal while LOrealgot complementary in its brand architecture. Recent years in Asia, itacquired the third skincare brand Mininurse in China and Japanesetop luxury brand Shu Uemura. These acquisitions representLOreal’s ambition to Asian market. They have the same productbusiness with LOreal. In China the acquisition will enhanceLOrealÂ’s market position in skincare and acquire distributionchannels Mininurse had. It is also a preparation for the futureexpansion in the most fast-growing market China. By acquiring ShuUemura, LOreal want to use this Japanese brand to compete withSK-…¡which was a competitor in the same level, in order to meetthe trend of prevalence of Japanese cosmetic brand in Asia. This isconsidered to be an effective and cost-efficient strategy which isconsistent with LOreal’s overall brand architecture
  57. 57. PLACETo run a company in profit the place factor out of the 4p’s ofmarketing mix plays a very crucial role. This includes decisionsabout where to sell the product or concerns about where thecustomers are, and how to get to them. It also includes the "channelof distribution" - meaning, all the different middlemen a companyuse to get the product out to the customer. L’Oreal runs a massiveworldwide operation employing nearly 62,000 men and women ofvarious races, backgrounds and religions across nearly 60 countries.Part of the reason for the corporation’s success has been itssensitivity not only to its consumers but also to each and every oneof its employees. The corporation has made sure that all theiremployees have opportunities to develop themselves bothpersonally and professionally. This commitment by the corporationto take care of their own employees has resulted in L’Oreal beingrated by the European business school students as The Employer ofChoice for the year 2006. With over a century of experience in thecosmetics industry, L’Oreal has established 19 global brands andproduces them in 40 factories across the world. These factories areall state of the art and ISO 140001 certified and all of their industrialsites are audited with the standard SA 8000 (L’Oreal Corporation).The corporation makes sure that every product that rolls out fromtheir factories complies with their own high standards and meets orexceeds quality and safety standards set by local governmentalagencies such as the Food & Drug Administration of the UnitedStates of America. L’Oreal’s success in the cosmetic industry is duenot only to their high quality, but also to the corporation’s marketingefforts to make sure their various brands have a strong market
  58. 58. presence. In past 100 years that it has expanded, it has supplied to130 countries with offices in 58 different countries. To make itspresence feel in different parts of the world L’Oreal has acquiredmany different companies like “The Body Shop International plc”,known as The Body Shop, which has over 2,000 stores in more than50 countries.
  59. 59. ANALYSIS OF INDIAN MARKETGarnier being an important brand of L’Oreal in both hair care andskin care is available all round the globe easily. In Indian market thehair care products of garnier like “garnier fructis”, “ultra doux” etcis available in both organised and unorganized retail shops in India.The high end skin care products like “Nutritionsite” are availableonly in selected retail outlets in country. In India Garniermanufactures its products in Pune whereas it’s registered office is inMumbai. To popularize its product line L’Oreal has occupied brandcorners in many big malls and retail outlets in which garnierproducts get a major chunk. L’Oreal has tie ups with many bigbeauty salons and parlors who can promote and sell its products.Over the past decade the company has trained more than 30,000hairdressers in India in the use of its products. And it has helped toestablish about 300 salons in the past five years. The theory issimple: If there is no natural demand for your goods, stimulate it.“We have created a profession and a market,” Didier Villanueva,L’Oréal India’s country manager, said. “If you train people they willuse your products.” Its sales in India, where it is No 2 behindUnilever, are growing at 35 per cent a year. This year, they areabout €100 million (£71 million). Although L’Oréal’s professionalproducts division represents only 17 per cent of total revenues, haircolor was the Paris-based group’s genesis and remains the creativeheart of the business. Money-spinning mass-market brands such asGarnier are being pushed hard in India, where the companyestimates there is a market of 50 million. Garnier products are easilyavailable for sale on many websites in India.
  60. 60. SWOT ANALYSIS OF GARNIER PRODUCTSStrengths Strong and Focused Brand Portfolio. Presence in Emerging Markets. Strong R&D Capability. Variants available. Geographical Coverage.Weaknesses Dependence on Western European Markets Late Entry into Asian markets. Unable to gain much of market share.Opportunities M&A Opportunities. Growth in Adjacent Categories. Demand for Natural Cosmetics. Growth of Direct Sales Channels Changing Consumer Lifestyles. Rural market growth. Beauty products market growing with a significant rate.Threats Competition from Private Labels. Price Competition among Branded Manufacturers.
  61. 61. Research MethodologyThe purpose of methodology is to describe the process involved inresearch work. This includes the overall research design, datacollection method, the field survey and the analysis of data.Objectives Of the StudyObjective of the Study:· To know the consumer satisfaction.· Financial performance in FMCG industry.· Market performance.· Market position.· Economic and the industry environment.· To find out the satisfaction level of people.· To find out the awareness level of customer.· To find the satisfaction amongst the customersSources Of Data CollectionPrimary:For my survey primary data have been used as a questionnaire tocollect the data.
  62. 62. SECONDARY:The secondary data has been collected from the following modes:· Magazines· Books· Newspaper· Data through internet sourcesResearch DesignResearch Design is the arrangement for conditioned for datacollection & analysis of data in a manner that aims to combinedrelevance to research purpose with economy in procedure.A research design is a master plan or model for the conduct offormal investigation. It is blue print that is followed in completingstudy.The research conducted by me is a descriptive research. This isdescriptive in nature because study is focused on fact investigationin a well structured from and is based on primary data.
  63. 63. RESEARCH PLAN· Type of study: For completing my study I have gone for samplestudy because looking at the size of population & the time limitationit was not convenient for me to cover entire population. Hence, Ihave gone for sample study rather than census study.Sampling PlanA sample design is a definite plan for obtaining a sample from agiven population. It refers to the technique or the procedure thatresearcher would adopt in selecting items to be inched in the samplei.e. the size of sample. Sampling plan is determined before data areCollectedSteps In SamplingSampling Frame:The list of sampling units from which sample is taken is calledsampling frame.Moradabad City map was studied thoroughly and samples wereselected from the place in a scattered manner to get effective result.
  64. 64. SAMPLING SIZE:Total sample size is 100. The following sample size according toarea wise is asfollows: 25 KOTHIWAL NAGAR 25 KHUSHAL NAGAR 25 MALVIYA NAGAR 25 JAWAHAR NAGARSAMPLING PROCEDURE:The selection of respondents were accordingly to be in a right placeat a right time and so the sampling were quite easy to measure,evaluate and co-operative. It was a randomly area sampling methodthat attempts to obtain the sample of convenient.Limitations of the Study· I will have to rely upon the information get from secondarysources (Balance sheet, Profit & Loss Account and Cash Flow ) andgiven by respondents, which may not be fully true.· This study will be limited to only some areas of MoradabadDistrict of Uttar Pradesh.
  65. 65. · It is only for short period of time.· Lack of professional approach since researcher is a student· The sample size is only 100 so the sample may not be trulyrepresentative of the Moradabad population.Field WorkI have collected the data through medium called questionnairecollecting the responses from 100 people in all. I had done my fieldwork in the following area difficulty during my project in theprocess of explaining and taking there KOTHIWAL NAGAR ,MALVIYA NAGAR , KHUSHAL NAGAR , JAWAHAR NAGAR.I started my project very first educating the respondents about myentire project, and ask them to co–operate with me. Mostly all therespondent were aware of this type of surveys. So I didn’t face anytype of responses on the questionnaire.
  66. 66. DATA ANALYSISTOTAL NUMBER OF WORKING AND NON WORKNGRESPONDENTSThe above pie diagram indicates that out of the total 100respondents surveyed, 43% are working and the remaining 57% arenot working and are mostly students.
  67. 67. GARNIER USAGE AMONG WORKING RESPONDENTSOut of the total 43 working respondents surveyed, only 30% of themdon’t use any of the Garnier products, the remaining 70% of theworking respondents use Garnier products. This indicates that thebrand is popular amongst the working people. The respondents sosurveyed were well aware about the brand and were also aware
  68. 68. about almost all the product lines being offered by Garnier, be it inskin careor hair care. This result indicates that Garnier has a well definedtarget market catering mainly to upper middle class consumerswhich is mainly why the working respondents are frequent users ofdifferent products of Garnier.GARNIER USAGE AMONG NON WORKINGRESPONDENTS
  69. 69. Out of the 57 non working respondents surveyed, about 84% of therespondents use Garnier products which means about 47 out of 57people use Garnier products and 16% of the respondents don’t useany of the Garnier products. This again indicates that the brand ispopular among even the non working respondents who are majorlystudents in our survey.The inference that can be drawn from the above two pie charts isthat irrespective of whether the consumers are working or arestudents, the brand has a good popularity. This means that the brandhas successfully caters to the needs of the youth as well as peoplefalling in the age bracket of 35 to 55.PREFERENCE FOR SKIN CARE OR HAIR CARE AMONGWORKING RESPONDENTS
  70. 70. Out of the 43 people who are working, about 29 of them use Garnierproducts and out of these 29 people, only 4% of the respondents useonly skin care products and 18% of them use only hair care productswhile a major chunk of 78% of the respondents use both skin careand hair care products of Garnier.This indicates that the customers are regular and loyal users ofalmost all the product lines of Garnier.PREFERENCE OF SKIN CARE OR HAIR CAREPRODUCTS AMONG NON WORKING RESPONDENTS
  71. 71. Out of the 57 non working respondents, about 36 of them useGarnier products. Out of these 36 respondents, 25% use onlyGarnier hair care products, 28% of them use Garnier skin careproducts and 47% of them use both hair care and skin care productsof Garnier. This again indicates that majority of people like both thesegments of Garnier but unlike the working consumers the nonworking consumers prefer Garnier skin care products over its haircare products.USAGE FREQUENCY AMONG WORKING RESPONDENTS
  72. 72. Out of the 29 people using Garnier products, 9% of the respondentspurchase Garnierproducts fortnightly, 69% of the respondents purchase the productson a monthly basis and 22% of them purchase the products once inthree months. This indicates that a majority of respondents arefrequent users of Garnier products. This also indicates that there iseasy availability of Garnier products at almost all retail outlets.USAGE FREQUENCY AMONG NON WORKINGRESPONDENTS
  73. 73. Out of the 36 respondents who use Garner products, only 3%purchase the products fortnightly, about 6% purchase the productsweekly, 33% of them purchase the products once in three monthsand a majority of 58% of the customers purchase the products on amonthly basis. The result of this data is very much similar to that ofthe working respondents.This indicates that the buying pattern of customers is more or lessthe same irrespective of their occupation.AVAILABILITY OF GARNIER PRODUCTS
  74. 74. The above data gives a combined interpretation for both workingand non working respondents that out of 29 working respondents,10 feel that Garner products are easily available at every store while19 feel that they are available only at selective stores and out of 36non working respondents, 16 respondents feel that the products arereadily available at all stores, 19 feel that the products are availableonly at selective stores and only 1 respondent felt that the productsare not easily available at all.The combined interpretation of this result indicates that thedistribution network of Garnier is not very strong which leads to theunavailability of Garnier products quite often. Hence there is notmuch easy accessibility to Garnier products in general be it skincare or hair care.
  75. 75. PRICE OF GARNIER PRODUCTSThe graph states that out of 29 working respondents, 15 feel thatGarnier products are slightly overpriced and about 14 feel that theproducts are perfectly priced while none of the working respondentsfeel that the products are highly overpriced. In case of the 36 nonworking respondents, 20 feel that Garnier products are slightlyoverpriced while 15 feel that the products are perfectly priced.A combined interpretation of this can be that about 50% of bothworking respondents as well as students feel that the prices of all theGarnier products are slightly overpriced. This means that Garnier
  76. 76. does not have a prime aim to offer the products at reasonable oraffordable prices for all segments of consumers. This is becauseGarnier caters mainly to the middle class and the upper middle classconsumers with a prime aim of providing good quality products toits loyal customers.SATISFACTON LEVELOut of the 29 working people surveyed, about 5 found garnierproducts highly satisfactory and a majority of 24 found the productssatisfactory while none of the working respondents found thembelow satisfaction levels. While out of the 36 no working
  77. 77. respondents surveyed, 2 respondents found the products highlysatisfactory and a majority of 33 people found them satisfactory.Only 1 person out of the non working respondents found theproducts below satisfaction levels.The common interpretation out of this result can be that a majorityof customers find Garnier products satisfactory which leaves somescope for improvement in the quality of products being offered byGarnier.USAGE PURPOSE
  78. 78. Out of the 100 people surveyed, 77 people use Garnier products.Out of these 77 people only 2 answered that they use the product formedical purpose, while a majority of 75 people answered that theyuse the products for cosmetic purpose. Therefore those people whouse Garnier products, 97% use them for cosmetic purpose, while avery small percentage of 3% use it for medical purpose. It is veryclear from this data that people prefer Garnier products for cosmeticuse only.PRODUCTS USAGE
  79. 79. Out of the 100 people surveyed, 77 answered that they use Garnierproducts. The chart above depicts the usage of different products bythese 77 people. Shampoo & conditioner is used by 57 people,Facewash by 39 people, Acne Removal Cream by 8 people, HairColor by 20 people, Anti-Ageing Cream by 3 people, FairnessCream by 23 people, Anti Wrinkle Cream by 2 people, Dark CircleRemoval Cream by 4 people, Moisturiser by 14 people and BodyLotion by 28 people. This data suggests that Shampoos &Conditioner are the most popular of Garnier products.AWARENESS
  80. 80. Out of the 100 people surveyed, 77 answered that they use Garnierproducts. We gathered information through our survey that how arespondent came to know about Garnier products. 74 respondentsanswered that they came to know about Garnier products throughtelevision, 21 by newspaper and magazines, 20 by word of mouthand 7 through internet. This data suggests that TV is the mostpopular source of information and awareness regarding Garnierproducts.Reasons for Not Using Garnier Products
  81. 81. Out of the 22 respondents who do not use the Garnier products, 14people (64%) are happy with their current brand and have not triedGarnier yet, rest 4 people (18%) do not find Garnier productseffective, the other 3 people (14%) finds the price of the garnierproducts as the main reason for not using it. Thus if Garnier needsto make the customers use their products for once and be able tostand on their expectations.
  82. 82. ConclusionThe present study comes to the floor with the revelations havingexciting and full of curiosity determinants in relation to the specifiedobjectives to understand and analyze the 4P aspects of marketing forGarnier. Further the study helped in identifying the reasons whichstops the customers to buy Garnier Products over other products andto understand customer Brand knowledge with regard to Garnier. Asthe study has been conducted, in the context of Indian customers(where interviewed customers are from Noida and Greater Noida),the investigation perspectives have been thrown, conditioning thespecified motives of Indian people, putting aside the motives outsideIndia. The research conducted was also helpful in identifying thefrequency of purchase and usage of the Garnier products.Following are the few key findings of the study: 70% of the total working respondents use Garnier products. 84% of the total non working respondents use Garnierproduct. 78% of the working respondents users use both hair and skincare products, whereas 18% uses only hair care products byGarnier and 4% only skin care products. In non working respondents 47% uses both skin and hair careproducts by Garnier, 25% only hair care and 28% skin careproducts. Among the non users of the Garnier products 64% are happywith their current brand, 18% find Garnier productsineffective and 14% people find the price of the products amajor concern.
  83. 83.  TV is the most popular source of information and awarenessregarding Garnier products. Shampoos & Conditioner are the most popular Garnierproducts. Only 40% of the users said that garnier products are availableat every store. 82% of the Garnier users are satisfied with the products.
  84. 84. Recommendations• It needs to improve the availability network of the product soas to reach a large customer base because 60% of therespondents feel that it is available at selectivestores only.• Almost 64% people are happy with their current brand and donot want to switch to Garnier products thus it needs to makethe customers aware of the products.• Garnier need to adopt different promotional mediums likeinternet, magazines, product binding schemes and evensurrogative marketing.• Introducing a low price product line for the rural market.• Introduce herbal product lines as the customer is getting moreinclined towards herbal products.• Make the consumers aware of all the products other than itsflagship products like shampoo, conditioner, hair color, andface wash etc.• Improve upon online sales service in tier 1 and tier 2 citiestaking the time constraint of the customers in the picture.• It is still considered as a product for youth so it needs to targetthe people in the age group of 35 and above.• As boys are also becoming looks conscious so the malebeauty segment can be one area of focus.
  85. 85. QUESTIONNAIREDear Respondent,This is a survey regarding the product analysis of Garnier byL’Oreal, so kindly furnish the correct information. The informationgiven will only be utilized for the research purpose only and not anyother purpose.RESPONDENT PROFILEArea of Residence:Age :Gender : Male____ Female____Your monthly household income:a) Below 10000 b) 10000-25000 c) 25000-50000d) Above 500001. You use Hair Colours .Regularly_____ Sometimes____Rarely _____ Never ____2. If Yes, Which Brand will you prefer :a) Garnierb) Lorealc) Other Brand3.Are you Brand Concious while buying Hair ColourProducts
  86. 86. a) Yesb) No3. Have you ever used Garnier or Loreal as a Hair Colour?a) Yesb) No4. Which one is more preferable according to you ?• Garnier• Loreal.5. If Garnier , then why ?• Quality• Effective Results• Price• Others6. How did you get to know about Garnier products?• TV• Newspaper/Magazines• Word of Mouth• Internet
  87. 87. • Any Other___________7. How do you find Garnier products?• Highly satisfactory• Satisfactory• Not satisfactory.8. Your purpose for purchasing Garnier products is for:• Cosmetics Use ____• Medical Use ____• Both ____9. If Loreal , Then why ?• Quality• Price• Effective Result• Others…10.A If No , You do not use Garnier because of:a) Price b) Effectiveness c)Happy with current brandd) Availability e) Unaware of the product f) Anyother reason__________
  88. 88. 10.B Alternate brand you prefer for hair care.a) Panteen b) Sunsilk c) Fiama Di Wills d)Head &Shoulderse) Dove f) Clinic All Clear g) Others (Pleasespecify) __________10.C Alternate brand you prefer for skin care.a) Ponds b) Lakme c) Nivea d)Dovee) Himalaya f) Fair&Lovely g) Ayur h)Others ___________11. Quality Matters while you go for Hair Colour ?• Yes• No12. Which Shade do you prefer the most ?• Natural black• Brown• Burgundy• Others13. Is Advertisements effects your decision while purchasing anyhair Colour ?• YES• No
  89. 89. Bibliography1. www.garnier.com2. www.equitymasters.com3. www.managementparadise.com4. www.hindubusinessline.com5. www.L’Oreal.com6. www.scribd.com7. www.google.com
  90. 90. ANNEXTURESDear Respondent,This is a survey regarding the product analysis of Garnier byL’Oreal, so kindly furnish the correct information. The informationgiven will only be utilized for the research purpose only and not anyother purpose.RESPONDENT PROFILEArea of Residence: 100 Respondents from MDA Colony ,MoradabadAge :0-18 : 218-25 : 2525-35 : 3535-50 : 3350-60 : 5Gender : Male__58__ Female_42___Your monthly household income:12345Gender12
  91. 91. b) Below 10000 b) 10000-25000 c) 25000-50000d) Above 5000010. You use Hair Colours .a. Regularly__30___c.Sometimes_22___b. Rarely ___40__ d.Never__8__11. If Yes, Which Brand will you prefer :d) Garnier - 35e) Loreal - 42f) Other Brand - 23Usage1234Brand123
  92. 92. 2a. Are you Brand Concious while buying Hair Colour Productsc) Yes 70d) No 25e) Cant Say 512. Have you ever used Garnier or Loreal as a Hair Colour?a) Yes 90b) No 1013. Which one is more preferable according to you ?• Garnier 6012312
  93. 93. • Loreal. 4014. If Garnier , then why ?• Quality 40• Effective Results 20• Price 35• Others 5Preffered Brand121234
  94. 94. 15. How did you get to know about Garnier products?• TV 70• Newspaper/Magazines 10• Word of Mouth 20• Internet 0• Any Other 016. How do you find Garnier products?• Highly satisfactory 10• Satisfactory 70• Not satisfactory 2012345123
  95. 95. 17. Your purpose for purchasing Garnier products is for:• Cosmetics Use ___90_• Medical Use ___5_• Both ___5_18. If Loreal , Then why ?• Quality 50• Price 30• Effective Result 20123
  96. 96. 10. Quality Matters while you go for Hair Colour ?• Yes 90• No 1011. Which Shade do you prefer the most ?• Natural black 50• Brown 22• Burgundy 25• Others 313. Is Advertisements effects your decision while purchasing anyhair Colour ?• YES 92Colour Choice1234123
  97. 97. • No 812