olympus case study 2014

GOONJ14 Department of Management Sciences,

University of Pune (PUMBA)

OLYMPUS

Case Study Competition

GOONJ14 Say It Out Loud

Department of Management Sciences,

University of Pune (PUMBA)

GOONJ14 Department of Management Sciences, University of Pune (PUMBA)

Olympus is a Case study competition to be held in Goonj13. Participants in this competition will get to test their business acumen in front of Best of talent and jury. Prove yourself, Participate, showcase your potential.

Win or lose, you will surely learn!!!!

Give it your best shot. ALL THE BEST.

Round-1

Participants need to send a PPT of 5 slides (+1 Details Slide) answering questions

given below the case.

Details to be included in First Slide:

Name of Participants, Division Name, Seniors/Juniors(Also

MBA++ / MBA BT), Contact Number, Email ID Deadline: Thursday 18th Dec, 05:00 PM.

Submission Format: .ppt / .pptx

File Name: Olympus_Goonj_Div_Partner1Name

Subject Line: Olympus_Goonj_Div_Partner1Name Presentation to be sent on e-mail ID: [email protected]

Result of Round 1 will be declared on Thursday 18th

Dec, 10 PM.

Round II Event on 19 December 2014

Participants will need to give the presentation in front of the Faculty and Guests from

Industry.

Details to be included in First Slide: Name of Participants, Division Name, Seniors/Juniors(Also MBA++ / MBA

BT), Contact Number, Email ID

Presentation Time Limit: 10 Minutes (No slide limits)

Presentation to be sent on e-mail ID: [email protected]

Deadline for sending Presentation for round II: Friday 19th Dec, 05:00 AM.


File Name: Olympus_Goonj_Div_Partner1Name

Subject Line: Olympus_Goonj_Div_Partner1Name Only shortlisted candidates from Round-I need to present the case study at final

day of event Olympus i.e. 19th Dec 2014.

For both Rounds same case will be used.

For any queries please contact the organizers.

Dev Roy (9975316725)

Sneha Bhujbal (8149139994)

CASE:

GODREJ EXPERT HAIR COLOUR

The Indian Hair Colour market

In the year 2012, the hair care segment in India increased by 18% in current value terms, to

reach Rs.11,600crore. Within this segment, the hair colourants category saw the fastest

current value growth of 29%, and stood at approx.Rs.2000 crore. This translates into roughly

17% of the hair care market, by value.

Fig 1: Percentage Sales of Hair Care by Category: Value (2012) {Source: Euromonitor International}

In India, hair colorants have proven to be the hair care industrys crowning glory. Once

primarily used to cover grey hair, hair colourants have today emerged as a lifestyle need.

Category

%

Sales

Hair Oils and

Conditioners 41

Shampoos 36

Colourants 17

SalonHair Care 4

Styling Agents 2


An analysis of the drivers for growth of this market include rising disposable income,

growth in awareness and fashion consciousness, increasing media penetration, and a

tremendous rise in organized retail. An expanding distribution network ensures that more

and more people have access to these products, while mid-priced brands and smaller

packs havebeen launched to tap into the high-potential mid-segment.Moreover, beauty no

longer remains a domain restricted to women; it has gone beyond and encompassed males

who are spending more on grooming products.

Despite all of the above factors, the key challenge faced by this sector is the perception that

most hair colourants contain harmful chemicals that adversely affect the quality of hair in the

long run. To combat this, companies have introduced ammonia-free hair colours and

colours with certain natural ingredients like olive oil and aloe vera, which have led people

to become more amenable to using them.

The Delivery Formats

Hair colourants are available in a variety of delivery formats, namely:

Powder-based

Cream-based

Oil-based emulsion

Shampoo-based

Liquids

The genesis of the Indian hair colour market was with liquid hair colours. Powders as format

gained acceptance post the launch of Godrej hair colourpowder in a sachet, creating new

levels of access due to low put down price and simplicity of use.

Through the '90s, the popular hair colours were powder dyes or oil-based liquids. In 1997,

LOreal launched its premium brand Excellence Crme, which introduced the concept of

hair colour other than just the regular black and dark brown in an easy to apply form. They

also launched their Salon Business, aimed at getting the experts (stylists / barbers etc.) to

endorse the crme format and the LOreal brand.

However, even today, powder hair dyes comprise the biggest segment in this category, by

volume followed by cream based haircolours. In terms of franchise, the powder franchise is

approx. 10x the crme franchise (in terms of the number of households using.)

Delivery Format Value-Base Share

Powder based 45-50%

Cream based 25%

Fig. 2: Delivery Formats: Value Share (Source: Business Standard, 2012)

According to industry estimates, powder hair colour constitutes 45-50 per cent of the hair

colour market by value, and is growing at 15 per cent yearly.


Cream hair colour constitutes 25 per cent by valueof the hair colour market and is growing

at about 20 per cent yearly. This growth is partly because of the in use sensorials as well as

the modern image that this format has.

The market segments: Salon v/s DIY

The hair colorants market has two distinct segmentsthe professional coloring service

offered by salons and the DIY at-home hair color market.

LOralProfessionnel, followed by Schwarzkopf and Wella, dominate the professional

market. This segment has seen steady growth, predominantly in the metropolitan market

since the tier two market consumers are slower to warm up to the relatively higher pricing

of these color services.

However, it is the at-home hair color market that has really excited the big marketers. It is

the market that is generating the highest volumes for most of them, but it is also the segment

that is facing stiff competition as many national and international brands compete for

consumers share of mind, heart and wallet. Some key brands in this market have been

indicated below.

Brand Shares - The at-home market:

Godrej Consumer ProductsLimited (GCPL) is the overall market leader in the hair colour

categoryderiving nearly 15 per cent of its domestic revenues from hair colour.Though it has

dominated the powder hair colour segment in India with a market share of 33 per cent in

this segment (Source: ACNielsen), however it hasyet to obtain a firm footing in the cream

hair colour format.

Currently, the top end of the hair colour market in the cream segment is dominated by

L'Oreal (60 per cent) followed by Streax (9 per cent). The colour cream category is skewed

towards the urban metros while the powders are being used mostly by Tier 2 and Tier 3

cities.

Vasmol from HRIPL (Hygienic Research Institute Pvt. Ltd.) tops the emulsion-based segment

with a 91 per cent share by value.Indian hair colour brands such as Godrej Kali Mehandi,

Black Rose Kali Mehandi (Henna Export Corporation), and Indica (CavinKare) contain

natural colouring agents such as henna/mehandi and thus are perceived to provide a more

natural way to colour hair.

Brand Company 2009 2010 2011 2012

Godrej Hair Dye Godrej Consumer Products

Ltd. 26.0 25.8 24.2 23.3

Super Vasmol Hygienic Research Institute 17.0 16.0 15.8 15.6

L'Oreal Excellence

Creme L'Oreal India Pvt. Ltd. 10.8 10.8 10.8 10.9

Garnier Colour Naturals L'Oreal India Pvt. Ltd. 5.0 5.3 5.6 5.6

Indica CavinkarePvt. Ltd. 4.0 4.2 4.3 4.6

Godrej Coloursoft Godrej Consumer Products 4.0 4.3 4.5 4.6


Ltd.

Streax Hygienic Research Institute 2.3 2.0 2.0 2.0

Revlon Colorsilk Modi Revlon Pvt. Ltd. 0.9 0.9 0.7 0.6

Others Others 30.0 30.7 32.1 32.8

Total Total 100.0 100.0 100.0 100.0

Fig 4: Brand Shares by Value (in %)(Source: Euromonitor International)

Godrej Hair Colours:

Godrej was one of the early pioneers in the hair colourants category. It launched its first hair

colour brand Godrej Liquid Hair Dye in the 1970s. Used in those days with some degree

of hesitation, it did become a category leader and laid the foundation for the market-to-

come.In keeping with market developments, Godrej added to its portfolio in 1981 by

developing and launching a hair dye in powder form.

1n 1995, it revolutionised the market by packaging its hair dye in an economical, easy-to-

use, convenient-to-carry sachet format called Godrej Powder Hair Dye. In rural India

which is traditionally price sensitive, it had an open sesame effect. Its unique selling

proposition put succinctly in its communication Kaato, Gholo, Lagaalo(cut, dissolve, apply)

helped it establish unquestioned leadership.

Godrej Expert:

In 2008,Godrej Powder Hair Dye was relaunched as Godrej Expert Powder Hair Dyeand

carried with it the promise of a much-needed product innovation. The colour lock

formulation technology developed by Godrej, enabled colour molecules to cover every

hair strand for a long-lasting, natural look. Simultaneously, the mildly perfumed conditioner

nourished hair and made it soft and shiny.

In 2011, a further relaunch provided a range of innovations. Godrej Expert Original is the

basic black hair colour (with the largest hair colour consumer franchise in India), Godrej

Expert Care (a henna based colour with the goodness of henna and amla) and Godrej

Expert Advanced(powder that forms a gel); the flagship gel innovation that took care of all

the fundamental powder format challenges - Non Drip, triple conditioner; and great post use

hair feel.

Another innovation in the Expert hair colour franchisewasthe launch of theGodrej Expert

Rich Crme in 2012.For the first time in India, a crme hair colour was made available in

convenient pre-measured sachets. It is available in five shades, and is enriched with the

goodness of aloe-protein which keeps the hair soft & shiny.Expert Rich Crme also offers a

complete one-stop solution by way of a Hair Colouring Kit (colour sachet + developer

sachet + hair colouring brush + mixing bowl + gloves + ear caps + stain removal wipe +

conditioner) to hand-hold the first timers. Godrej Expert Rich Crme is affordably priced at

Rs.59 for the Kit and Rs.30 for the Single use pack (colour sachet + developer).


Other Cream-based hair colours from Godrej:

Apart from Godrej Expert Rich Crme, Godrej has two other cream- based hair colour

brands, namely Godrej Colour Soft and Godrej Renew.

Godrej Colour Soft is positioned as a gentle hair colourantthat guarantees a pleasant

colouring experience. The built-in conditioner gently penetrates the hair during the

colouring process and strengthens it. The post-colour Moisture Lock conditioner gently

refreshes every strand, locking in moisture. Colour Soft offers a complete hair colouring kit

which includes a 40 ml colourant, 40 ml developer lotion, 4 post-colour conditioner sachets

of 24ml, a measuring cup, an instruction leaflet, a pair of gloves and a protective cape.

Godrej Renew cream hair colour is a breakthrough formulation which conditions hair, not

once but twice resulting in twice the shine and softness. It contains Aloe + Hibiscus

conditioners that protect and revitalize hair while colouring. The special after colour

conditioner provides nourishment and moisture to coloured hair, giving it a healthy shine. It

is available in two sizes. 50ml priced at Rs.125 and the new 20ml pack priced at Rs. 55.

Henna and henna-based colours from Godrej:

In their natural hair colour range, Godrej Nupur is a 100% natural hair colour whileGodrej

Kali Mehandi and Godrej Kesh Kala contain natural colouring ingredients such as

mehandi and other herbal extracts to give a natural colouring to hair.

Key Competitors in the cream hair colour segment:

Brand

Name

Celebrity

in Ads

Key Differentiators Type and

Constituents

Price per kit No. of

shades

Product Price Format

Godrej Expert Original Rs. 15 / sachet Powder

Godrej Expert Advanced Rs. 15 / sachet Powder

Godrej Expert Care Rs. 20 / sachet Powder

Godrej Expert Rich Crme

Rs. 30/ sachet

Rs. 59 (for the kit) Cream

Fig. 3: The Godrej Expert Range


LOreal

Excellence

Crme

Aishwarya

Rai

Contains a 3X formula

Ceramide which

protects, Collagen

which restores and

pro-keratin which

strengthens

Permanent Colour,

100% grey Coverage,

contains ammonia. The

pack consists of a

protective serum,

colourant, developer

and conditioner.

Rs.559 10+

LOreal

Casting

Crme

Gloss

Sonam

Kapoor

Targets younger

consumers who want

to get stylish, glossy

looking colour.

Semi-Permanent

colour, no ammonia,

50% grey coverage.

The pack consists of a


and conditioner.

Rs.529 10+

Revlon

Colorsilk None

Imparts luminosity to

hair.

Permanent Colour,

contains ammonia. It

consists of a colourant,

developer and

conditioner.

Rs. 350 10+

Godrej

Renew

Contains the goodness

of Hibiscus and Aloe

vera

Permanent Colour,

100% grey Coverage,

contains ammonia

Rs. 125 4

GarnierCo

lor

Naturals

Karishma

Kapoor It has a nourishing

cream formula and

contains olive oil.

Permanent Colour,

100% grey Coverage,

contains ammonia. The

pack consists of a


and conditioner.

Rs.155 5

Godrej

Coloursoft

Mild and gentle hair

colour No ammonia Rs. 140 5

Streax

SonakshiSi

nha

its key ingredient is

Walnut Oil which

helps strengthen and

imparts colour. It also

has a Kera-Vit formula

which conditions hair.

Permanent Colour,

100% grey Coverage,

contains ammonia. It

consists of a colourant,

developer and

conditioner.

Rs.120 17

Godrej

Expert

Rich

Creme

PerizaadZo

rabian

Contains the

goodness of Aloe

Protein

Permanent Colour, No

Ammonia, Pre-

measured sachets

Rs.59 5

*The italicized Godrej brands are not on air.

Fig. 4: Key competitors in the cream hair colour segment an overview


The Communication Tasks To strengthen Godrejsleadership positionin the hair colour market in the face of new

age competition by:

o Bringing new users to the category through the Godrej hair colour product

portfolio

o Driving format uptrades within the Godrej Expert Brand

To build relevance of the brand in the mind of the consumer through impactful and

innovative brand building initiatives.

The Communication Challenge Godrej Expert currently faces the following major challenges:

Despite being the largest franchise in India it is seen as the category default. Its

strength on Godrej Expert Original is linked strongly to the low put down price. The

strong identification of consumers with Godrej Expert Original, makes their

acceptance of premium / value creating propositions from the brand a slow burn

Godrej Expert is seen as a great entry point for consumers who enter the category.

However, whenever they upgrade, they tend to switch to competing brands such as

LOreal, etc. that are seen to have more brand sheen.

Thus, the key communication challenge here is topropose astrong positioning &

differentiation to build the brand image of Godrej Expert vis-a-vis competition.

Key Deliverables

The task is to provide a communication strategy that details the way forward for Godrej

Expert which would help build the brands in the most effective manner. The strategy

document must provide solutions to the following key areas;

1. Identify key challenges for the brand and its communication.

2. Identify key characteristics of the target consumer.

3. Identify the key consumer insights in the target group and architect the offerings along

the needs of the consumer.

4. Identify the right positioning and messaging platform for targeting the consumer.

5. Identify the right communication message for the brand.


Judging Criteria:

Marks will be allotted for:

1. Originality of the contribution.

2. Supporting decisions with facts and evidence.

3. Effective utilization of allotted time.

The decision of the organizers will be final and shall be applicable to all teams.

For any queries please contact the organizers.

Dev Roy (9975316725)

Sneha Bhujbal (8149139994)

olympus case study 2014

Documents

hair care market

hair care segment

hair colorants

grey hair

hair colourants category

percentage sales of

sales hair oils

partner1name presentation