garnier
TRANSCRIPT
INTRODUCTION Owned by L’oreal Group which is the
world’s largest beauty and cosmetics company
Main 3 brands are Maybelline, L’oreal Paris and Garnier
Started operations from scratch in India Garnier was chosen as the flagship
brand for India in 1991 Started with Ultra Doux range of
shampoos
METHODOLOGY
This research included a thorough study of the history, background, marketing strategies and competitive strengths
The prime concern was to check awareness of Garnier Hair colour amongst consumers and its usage
The data was mainly collected by means of a questionnaire prepared and direct feedback from retailers
Other sources were internet, magazines, marketing blogs and surveys
INDIAN HAIR COLOUR MARKET India is a Rs. 1214 crore hair colour market Leading players: 1) Godrej Hair dye: 33%
2) Loreal and Garnier: 60%
3) Others: 7% One of the fastest growing segments in
1998 onwards
GARNIER HAIR COLOUR IN INDIA
Garnier Color Naturals is the biggest brand in the company
Contributes to over 25% of the company’s turnover
First brand to introduce a cream based hair colouring solution
It contains natural ingredients like olive oil that makes hair smooth and soft
MARKET PERSPECTIVES Segmentation: Changing lifestyle has
triggered the growth in this segment seeking its niche in teenagers and middle age
Target Market: Middle and upper socio- economic class with medium to high disposable income
Positioning: Positioned as nature based, innovative personal care brand with a catchy tagline `Take Care’
MARKETING MIX1) PRODUCT: Permanent colour cream enriched with Olive oil, that
nourishes the hair as it colours. It uses natural ingredients like rose oil, magnesium, eucalyptus and acacia extracts and vitamins B3 and B6. Available in 5 shades in India,- black, natural brown, dark brown, burgundy, light brown.
2) PRICE: Mid segment; priced between Rs. 120 to Rs.140 depending from state to state.
3) PLACE: Available in all states and cities, in supermarkets, local retailers, parlours, medical stores, saloons, etc
4) PROMOTION: Used by urban modern middle class womenEndorsed bymodels like Karisma kapoor, Kareena Kapoor, Simone Singh
and Penelope Cruz and Sarah Jessica Parker at the international level The print ads are found in leading daily newspapers and magazines
like femina, cosmopolitan, woman’s era, etc
SWOT ANALYSISStrengths: Established Global brand nameAggressive Marketing strategiesFirst to introduce cream based hair ColourOffering high quality at low prices
Weaknesses:Not available in smaller packagesLow penetration in rural areasOver usage tends to damage hair
Opportunities:Increase in disposable income of middle classHair colouring is in fashion these daysMajor promotion which creates awareness
Threats: Tough competition from herbal products and hair dyesInhibitions of Indian consumersOther international brandsSocietal groups can create trouble since environment is damaged majorly
Porter’s Five Factor Model
Existing Competitors
WellaGodrej
SchwarzkopfClairol
Potential Substitute
HennaDyes
Herbal products
Bargaining Power of BuyersHerbal
productsHigh-QualityMany players in the market
Bargaining Power of Suppliers
Quality Switching Cost
Potential Entrant
Beautician’s products
International Brands
40 %60 %
Haircolor Users
Yes
No
61 %
39 %
Male / Female Ratio
Female
Male
64 %
13 %
14 %9 %
Age Group
20-3030-40Above 40
Clairol Hair Colour3%
Garnier Hair Colour
41%Loreal Hair
Colour36%
Schwarzkorpf Hair Colour
10%
Wella Kolestint10%
Haircolor Preference Ratio
46%
11%6%
36%
Reason for using Garnier Hair Colour
Brand imageEasy availabilityPriceQuality
35%
65%
Satisfaction Level of Garnier Users
No
Yes
30%
15%17%9%
30%
Garnier Color Pref-erence
BlackBurgundyDark brown
62%34%
3%
Substitute Products
Henna/Mehndi
Herbal products
Local dyes
66%2%
21%
2% 9%
Awareness Medium
TelevisionNewspapersMagazinesRadioWord of Mouth/ References
RECOMMENDATIONS They should add more herbal content to
the product They should penetrate in rural areas to
increase their customer base. They should make it available in small
packages. Should advertise more about the safety
and usage of the product