Presentation on

salon industry

Ravindra walkunde

Introduction

Scope of salon industry

Brands presents in the market

Market share & growth rate

Changing trends & Market needs.

Future of cosmetic industry

Challenges and realties

Swot analysis of the industry

Overview of the business

Giants success story

Market research

Marketing strategies and plans

Pricing strategies

Brand management

Sales and distribution

Integrated marketing communication.

History

Current scenario

Future of salon industry

Introduction

Fast growing

Employment Opportunities

Entrepreneurship advantages

Scope of salon industry

Lakme

Lotus

Biotique

L’oreal

Shahanaz Hussain

Revlon India

Maybelline

Himalaya

Colorbar

Elle 18

Top Brands in indian market

National:

Javed habib

Lakme

Vlcc

B-blunt

Enrich

Juice

International:

Jean-biguine

Saks

Toni & guy

Chain of salons in india

Indian cosmetic industry growing with 35% per year

The industry currently stands at $2 billion and expected to touch $3.5 billion by 2015

No. of brands also increasing due to increasing demand

Market share & Growth rate

Product category Rs.Billion % value

Shampoos 16.5 11.7

Skin care 21 14.9

Hair dyes & colors 7 5.0

Color cosmetics 3.5 2.5

Oral care 22.5 15.9

Men’s grooming 12.75 9.0

Personal wash 55 38.9

Deo & perfumes 3.1 2.2

141.4 100%

Major segments of market

Brands % value

Godrej 24.61

Loreal 38.46

Revlon 6.15

Henkel 7.70

Others 23.08

Hair dyes & colors market share

Changing Lifestyle: Men & women

Increase in Income

People prefer Professional products

Need of small size packaging

Price should be economic

Good after sales service

Attractive packaging

Promotional offers

Changing trends & market needs

Due to increase in consumer awareness there will be Decrease in chemical products demand

Incline towards Herbal products

Great future for indian cosmetic Brands

Market size is increasing rapidly

Investing in cosmetic industry would be good option due to great ROI

Future of cosmetic industry

Scarcity of trained professionals

Lack of well qualified staff

Focus on revenue and not on Education

Huge competition between Brands leading to Sales war

salon sales decreasing: people are becoming educated that they have started doing colouring, hair treatments, facials at home

Challenges & realties

Strengths:

Continuous increase in customer database

People are Aware about the fashion & changing market trends

R & D for improved beauty products

Great margins

Swot analysis of industry

No.of brands increasing

Increase in public awareness

Every brand has to spend on research and development

Pricing issues

Large cost associated for new start up

Weaknesses..

Increase in market size

FDI in cosmetic sector

Govt.support for more facilities

Today India is the most youngest nation in world so great future for beauty products

Opportunities..

Already existing Brands

Psychological attachment with brand

Excessive productions

ever changing customer demands

Threats..

Great Understanding of customer needs

A well segmented Product portfolio

Effective positioning compare to competitor

Aggressive Marketing & advertisement

High Media budget

Good distribution network

Excellent pricing strategies

R & D, Innovations

Technical support

Giant’s success story..L’oreal

Established in 1907 & entered India in 1991

World no.2 & India’s no.1

Presence in more than 130 countries with business of around 13.7 billion euros.

First product in india: Garnier ultra doux

Annual growth rate is 30%

Spending 3% revenue on R&D each year.

2700 researchers Worldwide.

Globally L'Oreal backs itself with the twelfth-largest media budget in the world. In India, it is

the fifth largest media spender in the industry.

L’oreal..Stats

Region specific products

MEXICOW. EUROPE ASIA

E. EUROPE

INDIA

Direct interviews of clients in salons

Doing surveys in public areas like malls,colleges,hotels

Online voting, Direct mailing questionnaire to prospective clients

Taking feedbacks from Retailers, Distributors

Distributing samples to salons

Analysing the consumer buying behaviour

Market Research

Intensive growth strategies:

1.Market penetration

2.Market development

3.Product development

4.Diversification

Interactive growth strategies:

1.Backword integration

2.Forward integration

3.Horizontal integration

Marketing strategies & plans

Diversification growth:

1.Concentric diversification

2.Horizontal div.

3.conglomerate div.

Porter’s generic strategies:

1.Cost leadership

2.Focused cost leadership

3.Diffrentiation

4.Focused differentiation

Cost based pricing

Demand based pricing

Competition oriented pricing

Pricing strategies

Dual price strategy in India:

Looking at the Indian consumers, L’Oreal has developed a dual price strategy for Indian markets

It has made its hair care range more affordable, at the same time the skincare segment continues to be a premium segment

It has also introduced sachets for shampoos and conditioners to reach the masses in India

At the same time, L’Oreal has kept its premium image in shampoos vis-à-vis competitors.

So while L’Oreal Paris shampoos are priced at Rs 69 for 100ml, Pantene is at Rs 59 and HUL’s Dove at Rs 64. “

Pricing Strategies..L’oreal

Consumers should be able to recognise your brand

Product differentiation from competitors

Price based differentiation

Less harmful than others

Mass product or premium product

Positioning

Hitting the right target audience with the right product

Diversification

Marketing efforts

Brand consistency

Social image of the brand

Update positioning

Brand management

Sources of Brand Equity

Brand knowled

ge

Brand Awareness

Brand image

Types of brand

associations

uniqueness of Brand

associations

Attributes

benefits

Overall evaluation

Product related[color,size

,design]

Non product related[price,pa

ckaging]

Authorised distributors

Organised retail

Retailers

Direct marketing

Online selling

Beauty centres

Sales and distribution

Television advertising

PR activities

Promotional seminars & events

Online marketing: social media, Blogs

Interviews of Brand managers, industry experts, celebrities

Print media: Articles in magazines, press issues

In store sales promotion

Digital screens showing ads at public spaces

CSR activities

Integrated marketing comm.

Thank

you