Loreal Marketing plan

8/10/2019 Loreal Marketing plan

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roject Report

Submitted To: Submitted By:

Dr. Kartik Dave Pradeep Sharma (951)

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Acknowledgement

An Old Chinese proverb says

!hen eatin" yo#r bamboo spro#ts$ remember the men %ho planted them.

&o% that my spro#ts are ready to eat$ it is time 'or me to epress my deepest

"ratit#de to all those %ho have made this possible.

!e %ish to epress o#r sinere "ratit#de to Dr. Kartik Dave%ho "#ided #s

and helped #s 'rom time to time to s#ess'#lly ond#t this researh. !e

think her diretion %as the best thin" that o#ld happen to #s and o#r

pro*et.

!e %o#ld also like to thank +,-/C0 'or lettin" #s #se the omp#ter

reso#res and library.

!e hope yo# en*oy readin" the report as m#h as %e en*oyed makin" it.

TABLE OF O!TE!TS


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1. Pro*et Ob*etive 2222222222222222222222. 5

. 34Oreal ,ntrod#tion 222222222222222222222

6. ,ntrod#tion to 7arnier 22222222222222222.22... 96.1 Company 8evie% 1

:. 0air are market analysis222222222222222222..... 11

:.1 /val#ation o' shampoo in ,ndia 1:. C#rrent senario o' shampoo market 1:

5. Skin are ind#stry in ,ndia222222222222222222... 1

. St#dy o' :P4S o' 7arnier222222222222222222..... 1;.1 0air are prod#ts 1;. Skin are prod#ts .6 &at#ral in"redients o' 7arnier :


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he appliation o' the 'o#r Ps (Prod#t$ Prie$ Promotion$ and Plae) o' marketin"revolves mainly aro#nd the #stomers in the tar"et se"ment. he tar"et se"ment 'or anyprod#t is that homo"eneo#s "ro#p o' people %hih is p#rported to be the most potential#stomer 'or the prod#t. he market 'ollo%s the Pareto Priniple$ %hih says that #$ %ercent o& t'e (ale( come &rom )$ %er cent o& t'e %eo%le. T'u(* &or any %roduct* one o&

t'e ma+or ta(k( o& marketer( i( to identi&y t'e grou% o& )$ %er cent t'at give( #$ %er

cent revenue o& t'at %roduct,( (ale to t'e com%any. &o s#rprise then that ma*ormarketin" e''orts o' ompanies attempt to attrat the most potential "ro#p.

his pro*et is an etensive st#dy o' the :Ps analysis o' the 7arnier prod#ts. hisdetailed st#dy helped #s in #nderstandin" the -rice* -lace* -roduct and -romotionaspet o' the 7arnier prod#ts in the re"ion o' st#dy i.e. 7reater &oida and &oida. A'terhavin" done this st#dy %e %ere able to identi'y the priin" strate"ies 'ollo%ed by 34Orealin terms o' their prod#t alon" %ith their promotional strate"y in the &C8 re"ion.his ase st#dy also helps in "ettin" an overvie% o' the ,ndian skin are and hair aremarket senario$ its "ro%th trends$ '#t#re prospets and opport#nities available.

3?Oreal is one o' the most s#ess'#l ,nternational premi#m brands in ,ndia. his @renhbrand ame to ,ndia in 1991 %ith its ltra Dou"ran"e o' Shampoo thro#"h its A"ent

3aboratories 7arnier. ,n 199: 3aboratories 7arnier beame the 1 s#bsidiary o'3?OrBal.

,n 34Oreal la#nhed its ran"e o' osmetis in to ,ndian market. he ,ndianCosmeti and skin are market is estimated to be aro#nd 6 -illion. ,n this market theColor Cosmeti se"ment is aro#nd 8s 5 rore %hile the Skin are se"ment is estimatedto be aro#nd 8s : rore.

3?OrBal?s strate"y is to evolve /arnierinto a master brand$ strethin" aross ate"oriesthat over the net 'e% years %o#ld inl#de soap$ body %ash and 'aial are$ similar tonilever %ith Dove. E@r#tis shampoo and onditioner is ore$ and they are introd#in"

stylin" aids as part o' a me"a brand strate"y.

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ROJECT OBJECTIVE:

he ob*etive o' o#r pro*et is to omprehensively researh on one o' the most

s#ess'#l s#b=brands o' 34Oreal= 7A8&,/8.

!ithin 7arnier$ %e have in#rred a st#dy on the hair are prod#t ran"e o'7arnier that is 7arnier @r#tis and ltra Do#. !e have essentially 'o#sed on

shampoos and onditioners.

O#r researh has been aimed at #nderstandin" the market share o' 7arnier %ithin

the 34Oreal brand and amon" other brands. Also %e have apt#red the market

apabilities o' 7arnier hair are shampoos and onditioners.

!e have researhed on the brand pereption o' the prod#t by the #stomers and#stomer loyalty to%ards the prod#t.

!e have also stressed on the 'o#r P4s o' marketin" in relation to this prod#t and

the marketin" strate"ies that have been adopted by 34Oreal$ essentially 7arnier

'rom time to time.

he stress ho%ever has been on the P8ODC o#t o' all the 'o#r P4s and on the

ons#mer behavior and their pereption to%ards the brand.

!e have also 'o#sed on the #rrent leadin" ompetitors o' 34Oreal=7arnier and

ond#ted a brie' st#dy on their marketin" strate"ies.

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LOREAL INTRODUCTION

34Oreal %as 'o#nded in the year 199 by /#"ene Sh#eller$ a @renh hemist %ho

developed an innovative hair olor 'orm#la. oday$ the 34Oreal 7ro#p is the %orld?s

lar"est osmetis and bea#ty ompany and is headF#artered in the Paris s#b#rb o' Clihy$

@rane. ,t "ot its start 'rom the hair olor b#siness b#t soon it developed ativities in the

'ield o' osmetis$ onentratin" on skin are$ s#n protetion$ make #p$ per'#mes and hair

are. 3?Oreal is ative in the dermatolo"ial and pharmae#tial 'ields. ,t is also the top

nanotehnolo"y patent=holder in the nited States. 3?Oreal is a listed ompany$ b#t the

'o#nder?s da#"hter 3iliane +etteno#rt %ho is one o' the rihest people in the %orld$ and

the S%iss 'ood ompany &estlB eah ontrol over a F#arter o' the shares and votin"

ri"hts. 34Oreal 'amo#s advertisin" slo"an is E+ea#se ,4m %orth itE. ,t has reently been

replaed by E+ea#se yo#?re %orth itE. ,ts port'olio o' brands inl#des the osmetis

ran"e o' 3?Oreal Paris and -aybelline &G$ shampoo ran"e 7arnier$ l##ry prod#ts s#has 3anHme and ative osmetis s#h as Iihy. ,ts losest "lobal ompetitor in the

premi#m make=#p se"ment is 8evlon.

0ndia,( contribution to t'e growt' o& t'e global co(metic( market i( about 1$

%ercent. he bea#ty and the %ellness setor in ,ndia are on a boom. 34Oreal started its

operations in ,ndia thirteen years a"o. T'e ('are o& t'e 0ndian market to L2Oreal2(

turnover o& 34.# billionis small$ b#t is "ro%in".,t operates in ,ndia thro#"h its %holly

o%ned s#bsidiary$ 34Oreal ,ndia and has 'o#r divisions J con(umer %roduct(*%ro&e((ional %roduct(* active co(metic( and lu"ury %roducts. he bi""est ontrib#tor

to its reven#e in ,ndia is the ons#mer prod#ts division led by its stron"est brand in

terms o' sales = 7arnier.

34Oreal ,ndia has reently set#p its o%n man#'at#rin" plant in P#ne. ,t imports most o'

its prod#ts 'rom its 'ailities abroad and man#'at#res the rest in P#ne. he ,ndian

s#bsidiary headed by Chie' Operatin" O''ier Dinesh Dayal$ %ho has been %ith the

ompany 'or years$ is one o' the key o''iials responsible 'or the 'ormation andoperations o' 3?Oreal ,ndia. he operations in ,ndia are ond#ted thro#"h a *#diial mi

o' "lobal and loal methods o' advertisin" to appeal to the ,ndian ons#mers. ,n ,ndia$ the

34Oreal advertisin" ao#nt is handled by -ann /rikson. 34Oreal ,ndia has

disovered over the years$ the behavior o' the ,ndian ons#mers and has realied that the


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,ndian ons#mer is not as prie onsio#s as is portrayed. he brand is more epensive

than the avera"e @-C7$ b#t o''ers a tr#e val#e 'or money. he ompany4s "ro%th in

,ndia an be attrib#ted to its innovation o' ne% prod#ts$ s#pply hain mana"ement$

systems and str#t#re. +ein" the %orld4s seond lar"est osmetis ma*or$ 34Oreal is

plannin" to 'oray into the 8s 1$=rore ,ndian herbal and ay#rvedi osmetis ind#stry.

A'ter identi'yin" its tar"ets$ 34Oreal ,ndia is in advaned talks %ith +iotiF#e and I3CCto aF#ire herbalLay#rvedi osmetis brands. he "ro#p is takin" the aF#isition ro#te to

enter this nihe setor. 34Oreal has th#s identi'ied ,ndia as one o' its top 'ive "ro%in"

b#sinesses "lobally. 3?OrBal?s researh 'ailities in @rane$ the SA$ and Mapan brin"

to"ether more than 6$ sientists and researh sta''. heir disoveries are p#blished in

leadin" sienti'i *o#rnals. 34OrBal4s innovations are patented$ reatin" some 5; patents

in : alone.

34Oreal4s methodolo"ies 'or eval#atin" the sa'ety and e''iay o' in"redients and 'inished

prod#ts$ prod#t eval#ation and laim s#bstantiation are reo"nied by the international

sienti'i omm#nity.

L,Oreal %roduct( are t'e re(ult o& t'e &ollowing re(earc'* develo%ment

and evaluation %roce((:

1. he bene'its o''ered by o#r prod#ts are s#pported by the sienti'i and #stomer


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evidene "athered at 16 researh enters$ 16 eval#ation enters and thro#"h

ollaborations %ith leadin" independent researh instit#tes aro#nd the %orld.

. 34OrBal prod#ts are validated by independent osmeti=linial st#dies #nder

dermatolo"ial ontrol to assess their e''iay and sa'ety. he sample sie o' these

osmeti=linial st#dies is in line %ith the ind#stry4s standards.

6. ,n addition$ 34OrBal ond#ts ons#mer st#dies to assess the prod#ts4 e''iay and

satis'ation rate be'ore they are la#nhed. hese tests are ond#ted by independent

researh ompanies and per'ormed on a statistially si"ni'iant n#mber o' %omen and

men.

:. -oreover$ #stomer satis'ation s#rveys are arried o#t a'ter the prod#ts are

la#nhed. hese involve intervie%in" a statistially si"ni'iant n#mber o' people %ho

have bo#"ht and #sed the prod#ts 'or several %eeks to assess their level o' satis'ation

and to help #s to ontin#ally improve 34Oreal prod#ts.

GARNIER- AN EXTENSIVE RESEARCH ON

A LOREAL SUB-BRAND

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34Oreal operates in ,ndia thro#"h 'o#r main divisions con(umer %roduct(* %ro&e((ional

%roduct(* active co(metic( and lu"ury %roduct(. he bi""est ontrib#tor to its reven#e

in ,ndia is the ons#mer prod#ts division led by its stron"est brand in terms o' sales J

/arnier. ,n the hair olor se"ment$ 7arnier operates in the mid=prie and l##ry

se"ment. his has enabled it to "arner a per ent share in a market dominated by loal

hair olorants and dyes. 7arnier attrib#tes its per'ormane to bein" the 'irst player in,ndia to introd#e a ream=based hair olor belo% the prie o' 8s 1 () and the 'irst

home=hi"hli"htin" kit (5)./arnier mainly %roduce( 'air care %roduct(* including t'e Fructi( line* and mo(t

recently* (kin care %roduct( under t'e name* !utritioni(te $ that are sold aro#nd the

%orld. One o' their key in"redients is a 'r#it onentrate #sed in all their prod#ts. ,t is a

ombination o' 'r#it aids$ vitamin +6$ +$ 'r#tose and "l#ose.7arnier$ the 3?Oreal=

o%ned brand that shook #p the S hair are market %ith the introd#tion o' @r#tis in

6$ no% has plans to brin" over its skin are olletion too. !hile 3?OrBal %as

'o#sin" on hair olor market in the initial sta"es o' its la#nh$ -aybelline %as in the

premi#m olor osmeti se"ment %hile 7arnier in the Enatural(E se"ment.

,n 34Oreal la#nhed its ran"e o' osmetis in to ,ndian market. 7arnier

onentrated on the &at#ral 0air are market %ith the main SP o' stron" hair. he brand

positioned as a nise brand mainly #sed its international ampai"ns in ,ndia to appeal to

the ,ndian ons#mer. 7arnier believes in bea#ty thro#"h nat#re. Sienti'ially developed

and enrihed %ith seleted nat#ral in"redients$ its prod#ts help look healthy and 'eel

"ood every day.

7arnier$ 3?Oreal and -aybelline$ the three brands o' 34Oreal have been de'ined by their

prie se"ments and positionin". he ompany has been steadily inreasin" its prod#t

port'olio in the ,ndian market espeially in the hair are se"ment. ,ts skin are brand o'

7arnier has been etended to a shampoo and hair onditioner #nder the @r#tis brand$ in

spite o' the presene o' 7arnier?s ltra Do# shampoo and hair onditioner. ,ts hair

olorin" port'olio has also been "iven a boost and the ompany has deided roped in

Kareena Kapoor as its ne% brand ambassador 'or its hair olor brand o' 7arnier trisse.

7arnier onentrated on the &at#ral 0air are market %ith the main SP o' stron" hair.

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he brand positioned as a nise brand mainly #sed its international ampai"ns in ,ndia

to appeal to the ,ndian ons#mer.

7arnier has been able to establish itsel' 'irmly in the ,ndian market and has learly

de'ined its tar"et market %hih is the middle lass and the #pper middle lass se"ment.

7arnier has very e''etively desi"ned its promotional strate"ies by adaptin" to the

han"in" #stomer demand. ,t has penetrated 'irmly in the ,ndian market both in skin

are as %ell as hair are prod#ts overin" a %ide ran"e 'rom shampoos$ onditioners$ to

"els$ ser#ms$ hair mo#sse$ anti=ane ointments$ anti=%rinkle reams et. he aessibility

'ator o' 7arnier prod#ts has been taken are o' by the ompany by ens#rin" easy

availability o' its prod#ts in almost all on'etionery item stores to malls and kiosks.

O5-A!6 7E80E9

7arnier o''ers a vast ran"e o' hair olor$ hair are and skin are that brin" yo# nat#ral

bea#ty.

o "#arantee omplete satis'ation to its #stomers$ 7arnier seeks to ontin#ally improve

prod#t per'ormane by addressin" their #stomer4s spei'i needs #sin" the ompany4s

lon" epertise in hair are$ hair olor and skin are.

o be s#re 7arnier prod#ts "#arantee maim#m e''etiveness in total harmony %ith the

#stomer4s body$ the ompany ri"oro#sly lab=tests all its ne% prod#t propositions./val#ated by eperts and ons#mers be'ore bein" p#t on the market$ 7arnier prod#ts

"ive immediate and visible res#lts. @or the nat#ral bea#ty o' hair and skin$ the ompany

o''ers to its #stomers$ more than simple prod#ts$ providin" advie and ro#tines adapted

to their personal needs.

;A07 A7E 0!DST76 0! 0!D0A 5A7KET

A!AL6S0S

he hair are market in ,ndia is val#ed at million. ,t has re"istered a "ro%th o' 6.;

over the previo#s year. he hair are market an be se"mented into hair oils$ shampoos$

hair olorants N onditioners$ and hair "els. Aordin" to A C &ielsen (the %orld?s

leadin" marketin" in'ormation ompany)$ hair olorants$ 'eminine hy"iene$ and baby are

have aelerated "ro%th in personal are market. 0air olorants are s#bstit#tes 'or hair

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dye to o#nter "rayin" hair. 0air olorants indiate stron" "ro%th trends %ith a year over

year "ro%th o' ; per ent. 7one are the days %hen hair onditioners and hair olorants

%ere #sed oasionally to look bea#ti'#l. oday$ they have beome the %ay o' li'e. oday$

i' there are more brands in the ,ndian market$ it4s lar"ely d#e to demand. @or instane

%hen hair olors 'irst ame to ,ndia$ more than a deade a"o$ it %as lar"ely to over "rey

hair. +#t %ith the inreasin" n#mber o' yo#th in the o#ntry it has beome a 'ashionstatement$ espeially %ith the yo#n" and trendy. hat4s %hy all the players have plans to

modi'y eistin" prod#ts$ la#nh ne% prod#ts and tar"et di''erent "eo"raphi se"ments

and a"e="ro#ps. 0o%ever$ hair onditioners in ,ndia still 'ae a di''i#lt market d#e to

lon" established habit o' #sin" hair oil and ay#rvedi treatments$ as they are heaper 'or

ons#mers and lak the hemials o' onditioners.

Figure 3

he ma*or players in hair olorants ate"ory are 7odre*$ 7arnier$ 3?Oreal$ and 3akme.

he hair oil market is val#ed at 8s. billions. 0air oilin" is a ma*or nihe in the hair are

se"ment. nlike market abroad$ ,ndia has a lar"e F#antity o' ons#mers %hose hair are

ependit#re also inl#des hair oils. he penetration level o' hair oil is aro#nd ;


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market.

E8OLT0O! OF S;A5-OOS 0! 0!D0A

033 has been an #ndisp#ted leader in this market 'rom early 94s 'rom %here the

onept o' shampoos "ot onsideration.

,n 19:$ S#nsilk %as la#nhed on a "eneral or a normal shampoo plat'orm.

,n 19


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,n mid 199


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here are broadly three basi se"ments in the shampoo market in ,ndia. hese are

Cosmetis

Anti=Dandr#''

0erbal

he top three brands in the &ormal shampoo ran"e are Clini Pl#s$ S#nsilk and Chik

%hile in 0erbal shampoo ran"e$ the top three brands are Ay#sh$ Dab#r Iatika and &yle.

he anti=dandr#'' shampoos inl#de Clini All Clear$ 0ead and Sho#lders and Dab#r

Iatika as the best per'ormin" brands. he premi#m prod#ts in the shampoo market

inl#de Shehna 0#ssain$ 34Oreal and 8evlon @le as the r#lin" brands in the market. On

the basis o' the researh ond#ted by #s$ the shampoo market has a lar"e #ntapped

market as it is still onsidered as a premi#m osmeti prod#t by a h#"e part o' the ,ndian

pop#lation. his an be *#sti'ied 'rom the #rrent market senario o' shampoo market

%hih states that the #rrent per apita ons#mption o' shampoos by ,ndian ons#mers is

*#st 16 ml %hih is very less as ompared to its other Asian o#nterparts %here t is abo#t

1 ml in ,ndonesia and abo#t 66 ml in hailand. @#rther$ o#r researh sho%s the

'ollo%in" 'ats

he 'reF#eny o' shampoo #sa"e is very lo%. -ost ons#mers #se shampoo only

one or t%ie in a %eek. ,n many ases$ these prod#ts are #sed on speialoasions s#h as %eddin"s$ parties et.

Some #stomers #se shampoo only to address a spei'i problem s#h as dandr#''

or %hen they need to ondition their hair.

se o' onditioners is not ommon. ,t is restrited to the s#per premi#m se"ment

or those %ho are very involved %ith their hair are.

Some ons#mers #se nat#ral onditionin" a"ents s#h as henna.

Abo#t 5 o' ons#mers #se ordinary toilet soaps to %ash their hair.

Abo#t 15 o' ons#mers #se toilet soaps as %ell as shampoo 'or leanin" their

hair.

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+rand loyalties in shampoo are not very stron". Cons#mers 'reF#ently look 'or a

han"e$ parti#larly in 'ra"rane.

Cons#mers attrib#te latherin" to the at o' leanin".

-a*or epetations 'rom the prod#t are improvement in tet#re and

mana"eability$ "ivin" so'tness and bo#ne to hair$ #rin" and avoidin" dama"e to

the hair.

An ,ndian needs more shampoo 'or a proper %ash ( avera"e ml ) ompared to :

ml needed in !estern o#ntries as most ,ndian %omen have lon" hair

-ost ons#mers do not #se shampoo daily.

8e"#lar #sers %o#ld need smaller F#antity o' shampoo per bath. 0air tends to

ollet more d#st d#e to d#sty environment and oilin" habits.

So#thern market is predominantly a sahet market$ ao#ntin" 'or


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he skin are market is val#ed at 1; million in ,ndia. !ith sa'e and e''etive

proed#res$ advanement in medial tehnolo"y$ inrease in a%areness$ the ,ndian Skin

are sol#tions b#siness is "ro%in" very 'ast.

he skin are market an be se"re"ated into toners$ leansers$ s#nsreens$ anti=%rinklereams$ dark irle removin" reams$ astrin"ents$ 'aial reams$ moist#riers$ 'airnessreams$ day and ni"ht reams$ et. O#t o' these$ 'aial reams$ moist#riers$ 'airnessreams$ day and ni"ht reams$ et. are the most pop#lar prod#ts and ao#nt 'orapproimately o' the skin are se"ment.

he skin are market is at a primary sta"e in ,ndia. he penetration level 'or both the#rban and r#ral market is lo%. -any people still pre'er to #se homemade and traditionalprod#ts to #re the skin problems. 0o%ever$ %ithin a period o' 'ive=si years$ the #se o'skin are prod#ts has inreased si"ni'iantly in ,ndia. !ith han"in" li'e styles$ inreasein disposable inomes$ "reater prod#t hoie and availability$ and in'l#ene o' satellitetelevision$ more people are takin" interest in personal "roomin". he 'aial skin aremarket is boomin". Prod#ts are ompetin" %ith one another to take shel' spae in theretail stores. @aial skin are prod#ts have beome an essential part o' the bea#ty

market. 3ike %estern o#ntries$ reams and potions are applied in ,ndia also$ in an e''ortto remove the pimples and the ane$ 'i"ht stress and %orry lines$ and to remain yo#n".Sine the penetration level is still relatively lo%$ "ro%th is epeted to be aro#nd 5over the net 'ive years.

Some o' the ma*or players in this se"ment are 0ind#stan 3ever (@air N 3ovely$ 3akme$Ponds) %ith a market share o' 56$ 'ollo%ed by CavinKare= @airever %ith a market shareo' over1 and 7odre*=@air 7lo% %ith a market share o' 6.: . he other players thathave a presene in the market are /mami (7old #rmeri and &at#rally @air)$ 8evlon(@air N 7lo%).

/A7!0E7 TEST0!/ -OL00ES:

All prod#ts are the res#lt o' ri"oro#s researh and development and bene'it 'rom the

epertise o' o#r m#lti=disiplinary sientists N researh sta''. heir disoveries are

'reF#ently p#blished in leadin" sienti'i *o#rnals and have res#lted in several patents.

7arnier #ses methodolo"ies reo"nied by the international sienti'i omm#nity as part

o' its prod#ts? development proess %hih assess their sa'ety and e''etiveness.

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Stage( o& re(earc'* develo%ment and evaluation at /arnier:

STA/E 0: 7arnier prod#ts bene'its 'rom sienti'i and #stomer researh

"athered 'rom several researh enters and eval#ation enters aro#nd the %orld.

STA/E 00:,ndependent linial st#dies to assess the e''etiveness and sa'ety o'

o#r prod#ts. hey an be done #nder dermatolo"ial or Ophtalmolo"ial ontrol.

STA/E 000: Cons#mer st#dies veri'y prod#t e''etiveness and ons#mer

satis'ation rates be'ore the prod#t is la#nhed.

STA/E 08: One prod#ts are la#nhed #stomer satis'ation s#rveys are also

arried o#t. hese involve intervie%in" a statistially si"ni'iant n#mber o' people

%ho have bo#"ht and #sed the prod#ts 'or several %eeks. his in'ormation helps

#s to monitor levels o' satis'ation and %e #se this type o' #stomer 'eedbak to

eval#ate and improve o#r prod#ts on an on"oin" basis.

STD6 OF < -,S OF /A7!0E7

;A07 A7E -7ODTS

Gr!"er #r$ct"% D"&' Cre

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7arnier @r#tis Daily Care is 'orti'ied %ith 8ein'ored Ative @r#it Conentrate =

an innovative ombination o' vitamins +6 and +$ 'r#tose and "l#ose. 7entle

eno#"h 'or everyday #se$ it no#rishes$ stren"thens and smoothes eah hair strand$

keepin" it balaned and healthy=lookin". 0air is #p to 5 stron"er$ #p to 5

smoother and so m#h shiner. he res#lt 7reat=lookin" hair that is anythin" b#t

ordinary.

/arnier Fructi( olor S'ield

7arnier @r#tis Color Shield is 'orti'ied %ith I protetant and 8ein'ored Ative @r#it

Conentrate = an innovative ombination o' vitamins +6 and +$ 'r#tose and "l#ose.

Speially reated to are 'or olor=treated or hi"hli"hted hair$ it penetrates inside the hair

1;


19/60

to moist#rie and stren"then it. !ith I protetant$ the 'orm#la helps keep yo#r olor=

treated hair brilliant and shiny on the o#tside. 0air is #p to 5 stron"er$ #p to 5 smoother

and so m#h shinier$ so olor looks brilliant lon"er.

/arnier Fructi( 5oi(ture 9ork(

Drenh yo#r hair %ith moist#re @orti'ied %ith 8ein'ored Ative @r#it Conentrate = an

innovative ombination o' vitamins +6 and +$ 'r#tose and "l#ose = this reamy system

helps restore moist#re in d#ll$ brittle or dry hair. -oist#re is replenished and brilliant

shine ret#rns. 0air is #p to 5 times stron"er$ #p to 5 times smoother and so m#h shiny

/arnier Fructi( Sleek = S'ine

Can yo#r 'riy$ oarse$ rebellio#s hair %ithstand even the most h#mid %eatherT 7et the

stren"th to 'i"ht 'ri %ith 7arnier @r#tis Sleek N Shine. ,t?s speially reated to smooth

dry$ #nmana"eable hair and ontains tritive @r#it -iro=Oils = an innovative

ombination o' apriot and avoado oils$ and vitamins +6 and +. 0air is 5 stron"er$ 5

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20/60

smoother and so m#h shinier. he res#lt 3on"=lastin" 'ri ontrol 'or hair that?s

inredibly sleek$ even %ith moist#re in the air.

/arnier Fructi( Lengt' = Strengt'

,mpossibly lon" loks aren?t impossible %ith 7arnier @r#tis 3en"th N Stren"th Stron"erhair "ro%s even lon"er. ,t?s the 'irst anti=breaka"e system %ith 8ein'ored Ative @r#it

Conentrate = an innovative ombination o' vitamins +6 and +$ 'r#tose and "l#ose.

Speially reated 'or hard=to="ro%=lon" hair$ this system rein'ores hair$ protetin" it

'rom breaka"e and split ends.

/arnier Fructi( AntiDandru&&

Soothe yo#r salp Created %ith Pyrithione Rin and Ative @r#it Conentrate = an

innovative ombination o' vitamins +6 and +$ 'r#tose and "l#ose = this do#ble=ation

'orm#la is "entle on yo#r salp$ b#t r#thless on dandr#''. ,t?s a po%er'#l 'ore 'or healthy=

lookin" hair and the on'idene that omes %ith it. ,t helps eliminate the symptoms o'

dandr#''$ e''etive %ith the 'irst %ash$ and makes yo#r hair #p to 6 times stron"er he

res#lt &o 'lakes "#aranteed.


21/60

/arnier Fructi( Strengt' = 7e%air

7arnier @r#tis introd#es the Stren"th N 8epair System to help reverse the si"ns o'

dama"e in one %eek$ leavin" hair intensely no#rished$ repaired 'rom the inside o#t and

more resistant to breaka"e. he 'orm#las %ith tritive @r#it -iro=Oils = a ombination

o' apriot and avoado oils = no#rish hair$ and Ceramide 8eonstr#tor to help repair and

'orti'y hair.

SK0! A7E -7ODTS

/arnier -ure Antiblemi(' -roduct(

7arnier P#re Anti=blemish = 7arnier Pore p#ri'yin" Astrin"ent$

7arnier P#re Pimple Control Pen$ 7arnier P#re /'oliatin" @ae

!ash$ 7arnier P#re Deep Clean 7el @ae !ash$ 7arnier P#re Daily

reatment Cream.

/arnier Lig't Fairne(( Anti5ark( -roduct(

7arnier 3i"ht @airness Anti=-arks Prod#ts = 7arnier @airness @ae

!ash$ 7arnier @airness !ipe=o'' 3otion$ Dark Spots Preventionmoist#rier$ 7arnier Anti=marks N @airness onentrate$ 7arnier

otal Com'ort &o#rishin" Q Anti=ti"htenin" old ream$ 7arnier

3i"ht -atte -atti'yin" @airness Cream$ 7arnier 3i"ht nder /ye

Dark Cirle 3i"htenin" Cream.

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/arnier E((ential lean(er( -roduct(

7arnier /ssential Cleansers = 7arnier 7entle @ae !ash$ 7arnier

7entle Cleansin" -ilk$ @resh Clean 'eel @ae !ash.

/arnier E((ential are -roduct(

7arnier /ssential Care = 7arnier Daily -oist#riin" 3otion$ 7arnier

Daily -oist#riin" Cream$ 7arnier 8eplenishin" &i"ht

Cream$ 7arnier /ye Conto#r 7el.

/arnier Sun ontrol -roduct(

7arnier S#n Control = 7arnier Daily -oist#rier$ Daily moist#rier

SP@ 15 L IA Q$ Daily moist#rier SP@ L IA.


23/60

/arnier 9rinkle Li&t Antiageing -roduct( /arnier Body cocoon Body 5oi(turi>er(

7arnier !rinkle 3i't Anti=a"ein"= 7arnier Anti

a"ein" Cream.

7arnier +odyooon +ody -oist#risers = ,ntense

-oist#re 3otion.

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!AT7AL 0!/7ED0E!TS OF /A7!0E7:

F7TOSE A!D /LOSE:

@r#tose is also kno%n as 'r#it s#"ar bea#se it is ab#ndantly 'o#nd in 'r#its. ,t is

"enerally assoiated %ith 7l#ose. hey are a part o' the lass o' Carbohydrates$

%hih represent an important so#re o' ener"y 'or all livin" or"anisms. he role o'

@r#tose and 7l#ose in no#rishin" hair %as demonstrated by in vitro #lt#re o' hair

'olliles. @r#tose and 7l#ose are '#el 'or hair.

F70T A;A,(:

Alpha 0ydroy Aids are a spei'i and ori"inal hemial 'amily that is 'o#nd in

n#mero#s 'r#its mali aid in apples$ itr#s aid in itr#s 'r#its$ and tartari aid in

"rapes. O' these$ itri aid is the most no#rishin" 'or the hair it penetrates deep into

the hair to improve the mehanial resistane o' hair str#t#re.

/7EE! TEA E?T7AT:

,t is obtained 'rom yo#n" dry leaves %hih have been maarated and perolated in

old etration proess in order to reserve the plant4s ative omponents. 7reen tea

ontains Ca''eine$ %hih has stim#latin" properties and is onsidered a medial plant.

AFFE0!E:

he stim#latin" properties o' a''eine help to break do%n 'at. ,t is also kno%n 'or its

bene'iial e''et on miro=ir#lation and 'or its deon"estin" properties.

A!T0 STO7A/E /0!/KO:

7in"ko slo%s do%n stora"e o' 'ats and is reno%ned 'or it 'ilterin" properties.

/7A-E SEED O0L::


25/60

@ra"rant 'r#it oil onentrate that starts no#rishin" %hile one olors hisLher hair.

80TA50!S B@ A!D B1:

hese vitamins are or"ani ompo#nds %hih are vital 'or ell#lar li'e they atively

partiipate in metaboli reations. Iitamin + an be 'o#nd in vario#s 'r#its inl#din"

avoado$ "rapes$ pineapple and peahes. Iitamin +6 an also be 'o#nd in 'r#itapriots$ bananas$ lemons$ 'i"s$ pears.

F70T O0LS:

7arnier has seleted a #niF#e ombination o' 'r#it oils 'rom olives$ "rape seeds$

blak#rrants$ avoado$ almond and apriot to help replenish lipids that the skin is

lakin".

-7O5OT0O!

7arnier has been very ative and #p'ront in adoptin" ne% promotional tehniF#es to

market its prod#ts. he ompany 'ollo%s a very pop#lar tehniF#e to advertise and

market its prod#ts that is the Iiral -arketin" poliy. Iiral marketin" is a term oined to

de'ine the prod#tive %ays a marketin" messa"e is made available. And orporate are#sin" the medi#m to ir#late brands and brand messa"es. he idea has a#"ht on like a

vir#s$ as e''iiently as ,n'ormation ehnolo"y has entered ho#seholds and b#sinesses.

@irms are no% str#t#rin" their b#sinesses in a %ay that allo%s them to "ro% like a vir#s

and lok o#t the eistin" brik and mortar ompetitors thro#"h innovative priin" and

5


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eploitation o' ompetitors? distrib#tion hannels. he bea#ty o' this marketin" tehniF#e

is that none o' it reF#ires any marketin". C#stomers$ %ho have a#"ht the vir#s$ do the

sellin". Iiral marketin" desribes any strate"y that eno#ra"es individ#als to pass on a

marketin" messa"e to others$ reatin" the potential 'or eponential "ro%th in the

messa"e?s epos#re and in'l#ene. 3ike vir#ses$ s#h strate"ies take advanta"e o' rapid

m#ltipliation to eplode the messa"e to tho#sands$ to millions.

O'' the ,nternet$ viral marketin" has been re'erred to as E%ord=o'=mo#th??$ Ereatin" a

b#??$ Elevera"in" the media?? and even Enet%ork marketin".?? ,t?s a deeptively simple

onept Create a messa"e$ send it via e=mail$ and make it so ompellin" that reipients

%ant to pass it on to everyone in their address book. Advertisers are hot on the tati$ and

the idea o' p#ttin" ons#mers to %ork spreadin" the %ord abo#t a brand or servie seems

so#nd.

!hat is #niF#e abo#t the onept is that %here brands or brand ideas are ehan"ed

%ithin omm#nities$ they are idea=led$ not advertisin"=led. here are some hi"h=pro'ile

viral s#ess stories. 3ike 0otmail. +y simply sendin" an e=mail$ ons#mers ha%ked the

servie bea#se every messa"e ontained a 0otmail ad that helped it "ro% to 1 million

ao#nts in its 'irst year$ %ay bak in 199. he 1999=hit 'ilm ?he +lair !ith Pro*et?

also bene'ited 'rom a similar onta"ion. On %eb sites and in hat rooms$ the 'ilm?s

promoters hinted that the 'itional tale %as really a do#mentary and let the b#" r#n %ild.

,n most ases$ the ons#mers %ere bitten.

!hen 7arnier la#nhed its @r#tis shampoo$ they lathed on to the idea. he 'irm had to

introd#e the aspet o' 'ive times stron"er hair and the 'irm had a braid ompetition

%hereby ons#mers o#ld re"ister on a site and reate a knot on the @r#tis braid$ as part

o' their entry into the ontest. he knot reation %as at#ally reated (vis#ally presented

on the site) and as a net step$ ons#mers %ere epeted to invite their 'riends to visit the

braid and add to their sore. A reord


27/60

attahed themselves to it. he idea is to "ive a%ay val#able prod#ts or servies to attrat

attention. And$ more importantly$ someone else?s reso#res are depleted rather than o#r

o%n. 7arnier has positioned itsel' as a li'estyle prod#t mainly tar"etin" teena"ers and

yo#n" "irls. his is very evident 'rom 7arnier ads be it 'or 7arnier 'r#tis shampoos or

'or hair olor. ,n a reent advertisement o' 7arnier hair olor$ a da#"hter advises her

mother to try the prod#t and th#s makes an attempt to promote prod#t amon" middle=a"ed %omen. 0ene$ epandin" the base o' the tar"et se"ment "ives a %hole ne% market

to marketers$ provided they are s#ess'#l in onvinin" the #stomers o' the seond=

r#n" se"ment.

Companies need to be very strate"i in presentin" the prod#t and its 'eat#res to attrat

another se"ment.

At the same time$ ompanies need to be sensitive abo#t the impat o' tar"etin" other

se"ments on the eistin" tar"et se"ment. ,t may be dama"in"$ espeially$ i' in a proess

o' epandin" its #stomer base$ a premier brand is tar"eted at the aspirin" middle=lassalso. ,n ase o' any si"nals o' lo%erin" demand %ith the eistin" tar"et "ro#p$ ompanies

sho#ld adopt line etensions by brin"in" s#itable han"es in the prod#ts.

Adverti(ing and marketing (%eciali(t( are aiming at young* urban 0ndian women*

w'o are earning t'eir own money and are %otential cu(tomer( &or a 'o(t o&

%roduct(* including namebrand clot'e(* co(metic( and new car(.

7elying on international ad cam%aign(


28/60

,nreasin" its ad spend 'or the la#nh o' its ne% prod#ts$ 3?Oreal has been relyin" more

on its international ampai"ns to make an impat in the ,ndian market. -Cann /rikson

in -#mbai handles the 3?Oreal and -aybelline ao#nt %hile P#bliis ,ndia is in har"e

o' 7arnier. Ehe ad ao#nts have been ali"ned aordin" to o#r international a''iliations

%ith these a"enies and %e try to have a mi o' both the ,ndian and international ads$E

says -r. 8a*"opal.

3?Oreal ,ndia #rrently has three brands in its ons#mer prod#ts port'olio and there are

prod#t overlaps bet%een its hair are$ skin are and olor osmetis brands. 7arnier$

3?Oreal and -aybelline have been de'ined by their prie se"ments and positionin".

L,Oreal /rou% and /odre+ on(umer -roduct(

dominate S%end( on ;air Dye( in Televi(ion Adverti(ing

3ast time$ %e had seen that Shampoos %as not a very seasonal ate"ory in terms o'

advertisin" on I. 3et?s hek o#t the trends 'or another similar ate"ory 'rom the

Personal Care Setor=0air Dyes. he belo% "raph s#""ests that like Shampoos$ 0air

Dyes do not sho% any seasonality in terms o' advertisin" peaks.

;


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Figure )

3et?s look at the top players in the 0air Dyes ate"ory. 34Oreal 7ro#p and 7odre*

Cons#mer Prod#ts 3td are the t%o bi" "iants in this ate"ory. heir share o'

ependit#res on this ate"ory on elevision are lose to eah other %ith 34Oreal "ettin"

the top slot %ith nearly 6; share o' the advertisin" pie %hereas 7odre* Cons#mer

Prod#ts "ets 66 share o' advertisin". At the 6rd plae %e have 0y"ieni 8esearh

(altho#"h the mar"in bet%een the nd and 6rd position is lar"e) %ith nearly 1; share o'

advertisin" 'ollo%ed by 0enna /port Corporation and Cavin Care 3td %ith 5.5 and6.; shares o' advertisin" respetively.

9


30/60

Figure @

-ovin" on to the op +rands in this ate"ory=it?s one a"ain 'looded by 3?Oreal 7ro#p N

7odre* Cons#mer Prod#ts. 7arnier Color &at#rals (34Oreal) is in the top position

%hereas its other prod#t = trisse 0air Color -ask and 34Oreal /ellene Cream are

at the :th and 5th position. S#per Iasmol 66 (0y"ieni 8esearh) is at the nd position.

At the 6rd position$ %e have 7odre* Po%der (7odre* Cons#mer Prod#ts) %hereas its

other prod#ts = 7odre* Color So't$ 7odre* Kesh Kala el and 7odre* 0erbal 0air Dye

are at th$


31/60

-romotional Strategy

T'e co(metic( giant i( u(ing 'airdre((ing (c'ool( to (timulate demand &or %roduct(

many 0ndian( (aw a( an alien e"travagance.

Above a bank in north +ombay$ ,ndia4s '#t#re hairdressers are s#lptin" the tresses o'

vol#nteer models more %illin" to let trainees loose on their hair than a seasoned loal

stylist %ieldin" a bottle o' dye. U/veryone is very parti#lar abo#t their hair these days$V

said 8#hi Khater$ 'rom beneath a stak o' silver 'oil at 34OrBal4s hairdressin" aademy.

@or a #stomer %ho needs more than a trim$ a visit to a hairdresser in ,ndia has

traditionally been somethin" o' a hair=raisin" eperiene. his %as parti#larly tr#e 'or

'air=haired !estern %omen %ith layered styles and blonde hi"hli"hts. hey learnt the

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32/60

hard %ay that ,ndian hairdressers kno% little o' olor beyond a *et=blak rinse or a streak

o' henna.

T'at i( not (ur%ri(ing a( #4 %er cent o& 0ndian women 'ave long* (traig't 'air. T'eir

natural tone i( dark and t'ey %re&er 'ome remedie( recommended by t'eir mot'er(.

5o(t (till u(e 'air oil vegetable oil* no le(( rat'er t'an &ancy conditioner( .

,t is a hallen"in" environment 'or any ompany tryin" to sell paka"ed bea#ty prod#ts

W to the ma*ority o' ,ndia4s 1.1 billion people they are not only alien b#t also an

etrava"ane.

he sol#tion 'or 34OrBal$ the %orld4s lar"est bea#ty and osmetis "ro#p$ %as to reate a

market 'rom srath.

Sine it opened its 'irst aademy in +ombay in $


33/60

w'ic' launc'ed an 0ndian edition in Se%tember* and &ollow t'e c'anging &a('ion( o&

t'eir &avourite celebritie(.

-#h like +ritain4s tabloid 'asination %ith David +ekham4s han"in" hairstyles$ the

reent deision by -ahendra Sin"h Dhoni$ the =year=old aptain o' the one=day riket

team and the 'ae o' +rylreem in ,ndia$ to hop his lon" loks made 'ront=pa"e ne%s.

npreedented eonomi "ro%th in ,ndia$ %hih is 'oreast by -Kinsey to beome the

%orld4s 'i'th=bi""est ons#min" nation by 5$ has reated a ra't o' opport#nities 'or

international li'estyle brands.

/mer"in" markets s#h as ,ndia are drivin" the "ro%th o' the osmetis ind#stry.

34OrBal$ %hih #ses Aish%arya 8ai$ the +olly%ood star and 'ormer -iss !orld$ as one o'

its international 'aes$ estimates there are


34/60

-70E

he tar"et se"ment 'or any prod#t is that homo"eneo#s "ro#p o' people %hih is

p#rported to be the most potential #stomer 'or the prod#t. he market 'ollo%s the

Pareto Priniple$ %hih says that ; per ent o' the sales ome 'rom per ent o' the

people. h#s$ 'or any prod#t$ one o' the ma*or tasks o' marketers is to identi'y the "ro#po' per ent that "ives ; per ent reven#e o' that prod#t4s sale to the ompany. &o

s#rprise then that ma*or marketin" e''orts o' ompanies attempt to attrat the most

potential "ro#p. ,n the present sta"e o' immense ompetition$ ompanies are reF#ired to

e''etively plan their priin" strate"ies to not only retain #rrent #stomers b#t to also

epand the #stomer base by tar"etin" ne% se"ments %ith an aim to onvert them into

loyal #stomers.

Trying to (trike a balance in it( %ricing (trategy &or t'e 0ndian market* L2Oreal

0ndia -rivate Ltd believe( t'at by introducing more (tock kee%ing unit( SK2( it

will be able to tide over t'e (tee% %ricing o& it( %roduct(.

-r. Ash%in 8a*"opal$ -arketin" -ana"er$ 3?Oreal Cons#mer Prod#ts$ told +#siness

3ine that$ E!e are lookin" at priin" in the ,ndian ontet and there is a kind o' balane

%e have str#k. Considerin" the lar"e n#mber o' SK?s that %e already have %orld%ide$

it is possible to market the prod#ts at an almost omparable priin".E

Considerin" the ompany has set #p its man#'at#rin" 'ailities in P#ne and has also been

s#b=ontratin" its prod#ts$ it has been easier 'or it to ontrol its pries in the ,ndian

market.

@or aspirational prod#ts 7arnier has adopted an international priin" strate"y$ %hih

may not be the ase 'or the rest o' the prod#ts. 0o%ever there is no hard and 'ast r#le

Be(ide(* t'e com%any 'a( al(o been cu(tomi>ing it( %roduct( &or t'e 0ndian market

and t'ere i( e"%ected to be a blend o& bot' international a( well a( 0ndian

&ormulation( &or it( %roduct(. For in(tance it( /arnier brand o& olor !atural( i( an

0ndiani(ed2 %roduct.

L2Oreal,( innovation( alway( (tart &rom it( lu"ury brand( t'en %enetrate to t'e

brand( in di&&erent %rice level and di&&erent market( eventually im%lemented in it(

6:


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con(umer brand(. he innovations based on the same tehnolo"y plat'orm %ill red#e

the ost. he knak 'or 3?Oreal to reate the advanta"es is to spread aro#nd strate"i

investment by sharin" the prod#tion o' innovation bet%een di''erent prod#t divisions.

3?Oreal not only 'o#ses on the sin"le brand b#t also pays attention to the tehnolo"y

relevany in the series o' brands. @or eample$ 3?Oreal 'irst introd#ed a break thro#"h

anti=a"in" omposite by #sin" 3anZme brand. S#bseF#ently$ it %as implemented inIihy brand and bro#"ht into the ons#mer prod#t division event#ally. he broad

distrib#tion hannel o' ons#mer prod#ts %as #sed to promote this tehnolo"y at last. ,n

term o' same prod#ts in the di''erent market$ 3?Oreal also eerts the tehnolo"y plat'orm

to meet the spei'i needs o' ons#mers. @rom 3?Oreal4s eperienes$ the ore tehnolo"y

plat'orm is a key omponent to the s#ess o' an international ompany %ith ompliated

brand ho#se. !itho#t levera"in" the reso#res bet%een brands$ it %ill a#se inrease o'

operational ost and %aste o' reso#res and %ill be very hard to mana"e the 3?Oreal4s

sophistiated brand arhitet#re. Other than b#ildin" the brand str#t#re aordin" to the

prod#t identity$ 3?Oreal relied on distrib#tion hannel to arry o#t its strate"y o' brand

str#t#re. here are 'o#r prod#t departments in 3?Oreal4s str#t#re. /very department

has several brands and eah brand has many names. hey are onspi#o#sly di''erent in

paka"es and %ith distint ima"e and advertisin". he di''erent brands share the

reso#res o' distrib#tion hannel and have hi"h inte"ration e''et on mana"ement. he

l##ry brands o' 34Oreal are sold in stritly seleted distrib#tion hannel like department

store$ per'#meries and ta 'ree shop. Pro'essional prod#ts are provided to thehairdressers. Ative osmeti prod#ts are sold in pharmaists. he most important setor

ons#mer prod#ts are distrib#ted thro#"h mass ons#mption hannel like department

store and s#permarket.

3?Oreal has 'ormed a brand matri %ith "reat po%er o' inte"ration. Any ne% brand

mer"ed into the relevant hannel %ill '#lly #tilie the reso#res in eistin" hannel as

%ell as epand 3?Oreal4s %hole distrib#tion hannel by inte"ratin" its ori"inal hannel.

he dissemination o' brand %ill improve ompany4s overall in'l#ential po%er.

3?Oreal reo"nied the levera"e e''et o' it brand and 'o#s its propa"andas on brand

rather than propa"andas on parti#lar prod#t. ,t is dediated in b#ildin" the relationship

bet%een its brand and the market. ,t aims to enhane brand po%er by maintainin" the

"ood ima"e in p#bliities. 3?Oreal4s e''orts %ere also embodied on its marketin" strate"y.

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,t al%ays onentrates on s#pportin" those brands %hih an mostly represent its

advanta"es and levera"e reso#res to those premi#m prod#ts.

@irms that aim to epand internationally or stren"then market position tend to aF#ire

ne% brand into the brand arhitet#re. AF#irin" in'l#ential and %ell positioned brand is

an important strate"y o' 3?Oreal in developin" its brand arhitet#re. ,t ahieves rapid"ro%th by aF#irin" brand in same or related b#siness and is ontin#ally seekin" these

opport#nities in the %orld%ide sope. 3?Oreal epanded its brand arhitet#re by

aF#irin" -aybelline brand in 199$ %hih %as a very s#ess'#l transation. he

-aybelline4s ima"e %as enhaned by branded 3?Oreal %hile 3?Oreal "ot omplementary

in its brand arhitet#re. 8eent years in Asia$ it aF#ired the third skinare brand

-inin#rse in China and Mapanese top l##ry brand Sh# em#ra. hese aF#isitions

represent 3?Oreal4s ambition to Asian market. hey have the same prod#t b#siness %ith

3?Oreal. ,n China the aF#isition %ill enhane 3?Oreal[4s market position in skinare and

aF#ire distrib#tion hannels -inin#rse had. ,t is also a preparation 'or the '#t#re

epansion in the most 'ast="ro%in" market China. +y aF#irin" Sh# em#ra$ 3?Oreal

%ant to #se this Mapanese brand to ompete %ith SK=2\%hih %as a ompetitor in the

same level$ in order to meet the trend o' prevalene o' Mapanese osmeti brand in Asia.

his is onsidered to be an e''etive and ost=e''iient strate"y %hih is onsistent %ith

3?Oreal4s overall brand arhitet#re

6


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-LAE

o r#n a ompany in pro'it the plae 'ator o#t o' the :p4s o' marketin" mi plays a very

r#ial role. his inl#des deisions abo#t %here to sell the prod#t or onerns abo#t

%here the #stomers are$ and ho% to "et to them. ,t also inl#des the Ehannel o'

distrib#tionE = meanin"$ all the di''erent middlemen a ompany #se to "et the prod#t o#tto the#stomer. 34Oreal r#ns a massive %orld%ide operation employin" nearly $

men and %omen o' vario#s raes$ bak"ro#nds and reli"ions aross nearly o#ntries.

Part o' the reason 'or the orporation4s s#ess has been its sensitivity not only to its

ons#mers b#t also to eah and every one o' its employees. he orporation has made

s#re that all their employees have opport#nities to develop themselves both personally

and pro'essionally. his ommitment by the orporation to take are o' their o%n

employees has res#lted in 34Oreal bein" rated by the /#ropean b#siness shool st#dents

as he /mployer o' Choie 'or the year . !ith over a ent#ry o' eperiene in the

osmetis ind#stry$ 34Oreal has established 19 "lobal brands and prod#es them in :

'atories aross the %orld. hese 'atories are all state o' the art and ,SO 1:1 erti'ied

and all o' their ind#strial sites are a#dited %ith the standard SA ; (34Oreal

Corporation). he orporation makes s#re that every prod#t that rolls o#t 'rom their

'atories omplies %ith their o%n hi"h standards and meets or eeeds F#ality and sa'ety

standards set by loal "overnmental a"enies s#h as the @ood N Dr#" Administration o'

the nited States o' Ameria. 34Oreal4s s#ess in the osmeti ind#stry is d#e not onlyto their hi"h F#ality$ b#t also to the orporation4s marketin" e''orts to make s#re their

vario#s brands have a stron" market presene. ,n past 1 years that it has epanded$ it

has s#pplied to 16 o#ntries %ith o''ies in 5; di''erent o#ntries. o make its presene

'eel in di''erent parts o' the %orld 34Oreal has aF#ired many di''erent ompanies like

Uhe +ody Shop ,nternational plV$ kno%n as he +ody Shop$ %hih has over $

stores in more than 5 o#ntries.

A!AL6S0S OF 0!D0A! 5A7KET

6


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7arnier bein" an important brand o' 34Oreal in both hair are and skin are is available

all ro#nd the "lobe easily. ,n ,ndian market the hair are prod#ts o' "arnier like U"arnier

'r#tisV$ U#ltra do#V et is available in both or"anised and #nor"anied retail shops in

,ndia. he hi"h end skin are prod#ts like UtritionsiteV are available only in seleted

retail o#tlets in o#ntry. ,n ,ndia 7arnier man#'at#res its prod#ts in P#ne %hereas it4s

re"istered o''ie is in -#mbai. o pop#larie its prod#t line 34Oreal has o#pied brandorners in many bi" malls and retail o#tlets in %hih "arnier prod#ts "et a ma*or h#nk.

34Oreal has tie #ps %ith many bi" bea#ty salons and parlors %ho an promote and sell its

prod#ts. Over the past deade the ompany has trained more than 6$ hairdressers in

,ndia in the #se o' its prod#ts. And it has helped to establish abo#t 6 salons in the past

'ive years. he theory is simple ,' there is no nat#ral demand 'or yo#r "oods$ stim#late it.

U!e have reated a pro'ession and a market$V Didier Iillan#eva$ 34OrBal ,ndia4s o#ntry

mana"er$ said. U,' yo# train people they %ill #se yo#r prod#ts.V ,ts sales in ,ndia$ %here

it is &o behind nilever$ are "ro%in" at 65 per ent a year. his year$ they are abo#t

Y1 million (X


39/60

Iariants available. 7eo"raphial Covera"e.

9eakne((e(

Dependene on !estern /#ropean -arkets 3ate /ntry into Asian markets. nable to "ain m#h o' market share.

O%%ortunitie(

-NA Opport#nities. 7ro%th in Ad*aent Cate"ories. Demand 'or &at#ral Cosmetis. 7ro%th o' Diret Sales Channels Chan"in" Cons#mer 3i'estyles. 8#ral market "ro%th. +ea#ty prod#ts market "ro%in" %ith a si"ni'iant rate.

T'reat(

Competition 'rom Private 3abels. Prie Competition amon" +randed -an#'at#rers.

69


40/60

DATA A!AL6S0S

TOTAL !5BE7 OF 9O7K0!/ A!D !O! 9O7K!/

7ES-O!DE!TS

Figure 4

he above pie dia"ram indiates that o#t o' the total 1 respondents s#rveyed$ :6 are

%orkin" and the remainin" 5


41/60

/A7!0E7 SA/E A5O!/ 9O7K0!/ 7ES-O!DE!TS

Figure 1

70%

30%

USE

DONT USE

O#t o' the total :6 %orkin" respondents s#rveyed$ only 6 o' them don4t #se any o' the

7arnier prod#ts$ the remainin"


42/60

/A7!0E7 SA/E A5O!/ !O! 9O7K0!/ 7ES-O!DE!TS

Figure C

84%

16%

USE

DONT USE

O#t o' the 5< non %orkin" respondents s#rveyed$ abo#t ;: o' the respondents #se

7arnier prod#ts %hih means abo#t :< o#t o' 5< people #se 7arnier prod#ts and 1

o' the respondents don4t #se any o' the 7arnier prod#ts. his a"ain indiates that the

brand is pop#lar amon" even the non %orkin" respondents %ho are ma*orly st#dents in

o#r s#rvey.

he in'erene that an be dra%n 'rom the above t%o pie harts is that irrespetive o'

%hether the ons#mers are %orkin" or are st#dents$ the brand has a "ood pop#larity. his

means that the brand has s#ess'#lly aters to the needs o' the yo#th as %ell as people

'allin" in the a"e braket o' 65 to 55.

:


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-7EFE7E!E FO7 SK0! A7E O7 ;A07 A7E A5O!/

9O7K0!/ 7ES-O!DE!TS

Figure #

4%

17%

78%

skin care

air care

!"#

O#t o' the :6 people %ho are %orkin"$ abo#t 9 o' them #se 7arnier prod#ts and o#t o'

these 9 people$ only : o' the respondents #se only skin are prod#ts and 1; o' them

#se only hair are prod#ts %hile a ma*or h#nk o'


44/60

Figure G

$8%

$5%

47%skin

air

!"#

O#t o' the 5< non %orkin" respondents$ abo#t 6 o' them #se 7arnier prod#ts. O#t o'

these 6 respondents$ 5 #se only 7arnier hair are prod#ts$ ; o' them #se 7arnier

skin are prod#ts and :


45/60

Figure 3$

O#t o' the 9 people #sin" 7arnier prod#ts$ 9 o' the respondents p#rhase 7arnier

prod#ts 'ortni"htly$ 9 o' the respondents p#rhase the prod#ts on a monthly basisand o' them p#rhase the prod#ts one in three months. his indiates that a

ma*ority o' respondents are 'reF#ent #sers o' 7arnier prod#ts. his also indiates that

there is easy availability o' 7arnier prod#ts at almost all retail o#tlets.

:5

%

70%

$$%

&"r#ni'#()

*"n#()

3*"n#s


46/60

SA/E F7EHE!6 A5O!/ !O! 9O7K0!/ 7ES-O!DE!TS

O#t o' the 6 respondents %ho #se 7arner prod#ts$ only 6 p#rhase the prod#ts

'ortni"htly$ abo#t p#rhase the prod#ts %eekly$ 66 o' them p#rhase the prod#ts

one in three months and a ma*ority o' 5; o' the #stomers p#rhase the prod#ts on amonthly basis. he res#lt o' this data is very m#h similar to that o' the %orkin"

respondents.

his indiates that the b#yin" pattern o' #stomers is more or less the same irrespetive

o' their o#pation.

Figure 33

3%

58%

33%

6%

&"r#ni'#()

*"n#()

3*"n#s

+eek()

:


47/60

A8A0LAB0L0T6 OF /A7!0E7 -7ODTS

Figure 3)

e,er) s#"re se(ec#i,e s#"res n# a,ai(a!(e

0

5

10

15

$0

$5

30

35

40

n"# +"rkin'

+"rkin'

he above data "ives a ombined interpretation 'or both %orkin" and non %orkin"

respondents that o#t o' 9 %orkin" respondents$ 1 'eel that 7arner prod#ts are easily

available at every store %hile 19 'eel that they are available only at seletive stores ando#t o' 6 non %orkin" respondents$ 1 respondents 'eel that the prod#ts are readily

available at all stores$ 19 'eel that the prod#ts are available only at seletive stores and

only 1 respondent 'elt that the prod#ts are not easily available at all.

he ombined interpretation o' this res#lt indiates that the distrib#tion net%ork o'

7arnier is not very stron" %hih leads to the #navailability o' 7arnier prod#ts F#ite

o'ten. 0ene there is not m#h easy aessibility to 7arnier prod#ts in "eneral be it skin

are or hair are.

-70E OF /A7!0E7 -7ODTS

:


48/60

Figure 3@

0%

$0%40%

60%

80%

100%

015

14

1$0

15

WORKING NOT WORKING

he "raph states that o#t o' 9 %orkin" respondents$ 15 'eel that 7arnier prod#ts are

sli"htly overpried and abo#t 1: 'eel that the prod#ts are per'etly pried %hile none o'

the %orkin" respondents 'eel that the prod#ts are hi"hly overpried. ,n ase o' the 6

non %orkin" respondents$ 'eel that 7arnier prod#ts are sli"htly overpried %hile 15

'eel that the prod#ts are per'etly pried.

A ombined interpretation o' this an be that abo#t 5 o' both %orkin" respondents as

%ell as st#dents 'eel that the pries o' all the 7arnier prod#ts are sli"htly overpried.

his means that 7arnier does not have a prime aim to o''er the prod#ts at reasonable or

a''ordable pries 'or all se"ments o' ons#mers. his is bea#se 7arnier aters mainly to

the middle lass and the #pper middle lass ons#mers %ith a prime aim o' providin"

"ood F#ality prod#ts to its loyal #stomers.

SAT0SFATO! LE8EL

:;


49/60

Figure 3

Documents

Loreal Marketing plan