Product Assessment & Social Media Marketing Strategies for brand Fiami Di Wills

Contents

Particulars

Page number

Executive Summary 1

Company Profile 2

List of Products and Brands 4

ITC’s Personal Care Range 6

About Fiama Di Wills 7

An Overview of the Salon Industry in India 9

Objectives of the Project 15

Product Portfolio for Salons

16

Recommended Product Portfolio

For Shampoos

For Conditioners

19

20

Market Segmentation 21

Distribution 25

Training 30

Conclusion 32

Annexure 33

[IIM Indore PGP Students]

1 Salon Strategy for I.T.C. Hair Care Products

Executive Summary

The Primary Objective of the Project is :

To arrive at a Recommended Product Portfolio for ITC Hair Care Products.

To understand the profile segmentation of salons in Kolkata.

To understand the Distribution Channel of the Referent Brands.

To have a brief idea of the process of training for Salon Professionals.

Referent Brands : L’oreal Professionnal, Wella, Schwarzkopf & Kerastase.

Product Portfolio for Salons: Firstly an analysis of the benefits and attributes of the products of Referent Brands was carried out. On the basis of the results obtained a Benefit Mapping of the primary categories,i.e., Shampoos and Conditioners, were arrived at based on which a Recommended Product Portfolio for ITC Hair Care Products in salons was arrived at.(on page 8) Profile Segmentation of Salons Salons in different areas of the city were visited and on the basis of Brands used in these salons a Sample representative of the Market Segmentation in Kolkata was identified. On the basis of this a matrix was formed to differentiate between the various categories of salons on two parameters, i.e., Location and Starting price range of Basic Services and observations were formed. (On page 10) Distribution Channel The distributors of the Referent Brands were contacted to get a brief idea of the Distribution Channel and the key points were identified. (On pages 11& 12) Training of salon Professionals An understanding of the Training Process undertaken in Training Institutes of Salon Professionals was formed. Its importance in today’s scenario and how it can be used to create a positive word of mouth for the brand was also identified. ( On page 13)



Company Profile

ITC is one of India's foremost private sector companies with a market capitalisation of nearly US $

19 billion* and a turnover of over US $ 5.1 Billion. ITC is rated among the World's Best Big

Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine,

among India's Most Respected Companies by BusinessWorld and among India's Most Valuable

Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in

a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among

Asia's 50 best performing companies compiled by Business Week.

ITC India Limited

Type Public (BSE:ITC)

Founded 24 August 1910,

Radha Bazar Lane, Kolkata, India

Headquarters Kolkata, India

Key people Yogesh Chander Deveshwar, Chairman,

K. Vaidyanath, Director, Partho Chatterjee,

CFO

Industry Tobacco, foods, hotels, stationery, greeting

cards ,Products Cigarettes, packaged food,

hotels, apparel

Revenue ▲ $4.75 billion USD (2006)

Employees 21,000 (2007)

Website www.itcportal.com

http://www.itcportal.com/



ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging,

Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel,

Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding

market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and

Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods

& Confectionery, Branded Apparel, Personal Care and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to be

dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a

commitment beyond the market". In his own words: "ITC believes that its aspiration to create

enduring value for the nation provides the motive force to sustain growing shareholder value. ITC

practices this philosophy by not only driving each of its businesses towards international

competitiveness but by also consciously contributing to enhancing the competitiveness of the larger

value chain of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of

growth anchored on its time-tested core competencies: unmatched distribution reach, superior

brand-building capabilities, effective supply chain management and acknowledged service skills

in hoteliering. Over time, the strategic forays into new businesses are expected to garner a

significant share of these emerging high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the

country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's

'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by

empowering Indian farmers through the power of the Internet. This transformational strategy,

which has already become the subject matter of a case study at Harvard Business School, is

expected to progressively create for ITC a huge rural distribution infrastructure, significantly

enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is aggressively

pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services



and business process outsourcing.

ITC's production facilities and hotels have won numerous national and international awards for

quality, productivity, safety and environment management systems. ITC was the first company in

India to voluntarily seek a corporate governance rating.

ITC employs over 25,000 people at more than 60 locations across India. The Company

continuously endeavors to enhance its wealth generating capabilities in a globalising environment

to consistently reward more than 3,72,000 shareholders, fulfill the aspirations of its stakeholders

and meet societal expectations. This over-arching vision of the company is expressively captured

in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."



List of Products and Brands

ITC has a diversified presence in :

Cigarettes:

W. D. & H. O. Wills, Classic Verve, Insignia, India Kings, Classic, Gold Flake, Navy Cut, Scissors,

Capstan, Berkeley, Bristol and Flake

Hotels:

ITC_Welcomgroup_Hotels,_Palaces_and_Resorts is India's second largest hotel chain with over 80

hotels. Based out of Hotels Division Headquarters at the ITC Green Centre in Gurgaon, ITC

Welcomgroup is also the exclusive franchisee of The Luxury Collection brand of Starwood Hotels

and Resorts in India .

Paperboards & Specialty Papers:

ITC Bhadrachalam Paperboards Limited"ITC Tribeni Tissues Division" Now there are four units

under one name --> Paper Boards and Specialty Papers Division, Unit - Bhadrachalam, Tribeni,

Bollarum and Kovai.

Agricultural Industry:

Agri-Business, Leaf Tobacco, Gold Ribbon, Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and

Peninsular

Packaged Foods & Confectionery: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman,

Bingo Snacks .

Branded Apparel:

Wills Lifestyle, John Players, Miss Players

Toiletries:

Essenza Di Wills, Fiama Di Wills, Superia, Vivel Di Wills, Vivel

Greeting Card:

Expressions

Information Technology:

ITC Infotech



Safety Matches:

iKno, Mangal Deep(Discontinued), VaxLit(Discontinued), Delite(Discontinued) and Aim Brands

acquired from Wimco (Western India Match Company) (Swedish Matches)

Incense Sticks:

Mangaldeep, Spriha

Stationery:

Classmate, Paperkraft, Saathi

While ITC continues in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging

and Agri-Exports, it is gaining market share in its nascent businesses of Packaged Foods &

Confectionery, Branded Apparel and Greeting Cards.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is pursuing

emerging opportunities in providing end-to-end IT solutions, including e-enabled services and

business process outsourcing.



I.T.C.’S PERSONAL CARE RANGE

In line with ITC's aspiration to be India's premier FMCG company, recognised for its world-class

quality and enduring consumer trust, ITC forayed into the Personal Care business in July 2005. In

the short period since its entry, ITC has already launched an array of brands, each of which offers

a unique and superior value proposition to discerning consumers. Anchored on extensive consumer

research and product development, ITC's personal care portfolio brings world-class products with

clearly differentiated benefits to quality-seeking consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills'

'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is

being progressively extended nationally.

ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and

benchmarked manufacturing practices. Contemporary technology and the latest manufacturing

processes have combined to produce distinctly superior products which rank high on quality and

consumer appeal.

Extensive insights gained by ITC through its numerous consumer engagements have provided the

platform for its R&D and Product Development teams to develop superior, differentiated products

that meet the consumer's stated and innate needs. The product formulations use internationally

recognised safe ingredients, subjected to the highest standards of safety and performance.



About Fiama Di Wills

In September 2007, ITC launched Fiama Di Wills, a premium range of personal care products

comprising shampoos, conditioner, shower gels and soap. This premium range is a unique blend

of nature and science that promises gentle effective care. It is an outcome of 4 years of

extensive research and development by experts at ITC R&D Centre. The packaging for all Fiama

Di Wills products has been developed by a leading European design firm and the fragrances

have been developed by an international fragrance house in France.

Fiama Di Wills Shampoos developed in collaboration with

Cosmetech Labs Inc., USA, offers a range of five variants. Each of

these is designed to deliver a specific hair benefit to the consumer :

Everyday Mild (with extracts of Thyme & Juniper) is a gentle

caring shampoo suitable for daily use.

Aqua Balance (with extracts of Magnolia Blossoms &

Watercress) is a gentle moisturizing shampoo ideal for dry, dull hair.

Volume Boost (with extracts of Rosemary & Sage) is a gentle volumizing shampoo ideal

for thin, limp hair.

Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair smooth, silky and

strong and is ideal for weak, damaged hair.

Shine in Style (with extracts of Chamomile and Green Tea) makes hair shiny and

manageable, easy to style and is ideal for dull to normal hair.

Each of these shampoos can be complemented with Fiama Di Wills Polishing Drops conditioner.

This gentle conditioner enriched with Avocado Oil and Burdock extract promises to make hair

shiny, soft and smooth. It also gives the additional benefits of UV protection as it contains

Sunflower Seed extract, which is a natural UV absorber.



The Fiama Di Wills product line also consists of a 3-variant range of transparent shower gels

which are unique as they come with suspended beads:

• Mild Dew (enriched with soft beads, peach and avocado extracts) is for soft,

moisturized skin.

• Clear Springs (enriched with jojoba beads, sea weed and lemongrass extracts)

is for clear healthy skin.

•

Exotic Dream (enriched with glitter beads, bearberry leaves and black currant

extracts) is for stimulating freshness.

The Fiama Di Wills range of soaps has been launched under the sub -

brand SkinSense. The first variant to be introduced in this range is Soft Green. This is a gentle

caring soap, which helps enhance retention of skin proteins making skin look beautiful and

youthful.

Between February and June 2008, ITC expanded its personal care portfolio with the launch of

Vivel Di Wills and Vivel brands. Vivel Di Wills, a range of soaps, and Vivel, a range of soaps

and shampoos, cater to the specific needs of a wide range of consumers.

Backed by consumer insights, these ranges offer the unique value proposition of providing the

multiple benefits of Nourishment, Protection and Hydration in every single product. Thus providing,

the ever-discerning consumer, complete care.



An Overview of the

Salon Industry in India

Market Size

The beauty salon market in India has been growing steadily over the past few years. As

of end FY03, there were an estimated 61,000 beauty salons in towns with over 1 million

population.

For the purpose of analysing the beauty salon industry, Value Notes has used the

following classification of the beauty salon market in India –

Source : Value Notes

Category No. Of Employees Typical

Characteristics

Large

>8 Large parlours providing a

varied range of services

and/or

specialization, premium price

range

Medium

5-8 Medium parlours, medium

price range

Small

3-4 Small parlours, limited service

range

Home

1-3 Individuals operating from

home/giving home service



Exhibit 1 :

Population-wise estimate of salons by category (FY 2003)

Some observations:

· Interestingly, half of these parlours are in the ‘home’ category. The large salons (with

more than 6 employees, providing a wider range of services) constitute only 4% of

the total number of beauty salons in the country. The medium size salons (with 3-5

employees, medium price range) are less than 10 percent.

· More than half of the beauty salons are in the major metros - Mumbai, Delhi and

Kolkata (population more than 10 million). The others are balanced almost equally

between the mini-metros (population size 3 to 10 million) and the smaller towns

(population between 1 and 3 million).

· Also, there are a high number of small and home based beauty salons in the metros.



B. Turnover Estimates

The estimated total turnover of the beauty salon market is between Rs. 1493

crores and Rs. 1805 crores (FY03) in cities with more than 1 million population.

Exhibit 2: Turnover Estimates (FY 2003)

Across the town classes, the large beauty salons took up 27% of the revenue inspite of

being substantially lower in numbers as compared to the other categories. Also, of the

total, the metros account for about 60% of the total turnover.

Interestingly, it is the small beauty salons (1-2 employees, offering limited services) that

take up about 42% of the revenues in the metros. Adding the home category (those who

work out of homes/garages etc.), the total revenue generated is over 65% of the total.

In other towns of 1 million + also, they take up a sizeable portion of the revenue.

The home segment, on the other hand, despite being the largest in numbers, takes up

between 15-24% of the total revenue estimated in this market.



So what services are the money grossers for this industry?

Across the categories of beauty salons, haircuts are the most revenue generating

service, accounting for between 25-30% of the total revenues. Hair styling (hair

colouring, perming, streaking etc.) contribute to about 27% of the revenues for the

larger salons, but are very insignificant revenue earners for the other categories. This is

especially true of high-end speciality parlours.

In the medium size parlours, hairstyles lose out as the revenue generators since the skill

sets are generally perceived to be lower in this category. However, facials, being

comparatively price inelastic, make up for 31% of the revenue generation in this

category. This trend also follows to the smaller and home parlours as this is a function

of price rather than volumes.

Exhibit 3 : Revenue from various services across categories

Share of revenue by service (FY03)

Segment Large Medium Small& Home

Haircut 23% 26% 30%

Hairstyle 18% 8% 1%

Wax 17% 19% 16%

Manicure 7% 7% 5%

Pedicure 9% 8% 5%

Facial 20% 31% 35%

Others 7% 1% 7%

Therefore, it is easy to say that haircut is the most popular as well as the most revenue

earning service in this business. Interestingly, for the medium and small beauty salons,

facials form about 30-35% of the earnings.



Price:

Quite obviously, the price differences are highly significant between the town classes,

with prices in the metros being considerably higher than the smaller towns, the

difference being upto Rs. 500 for haircuts. Price differences are the highest in haircuts

and facials, followed by hairstyles. Among the other services, the price differences do not

appear to be so dramatic.

The main drivers for price variations are quality of the services offered and the retention

of good employees. These are also important factors which drive customer loyalty. Also

the locality in which the parlour is located drives the price. In case of large parlours, a

certain niche or speciality determines the price points for the services offered.

Product Sales:

Product sales constitute a very low part of the revenues. In fact, it is only the large

parlours that engaged in product sales. But this too contributed to only about 10% of the

revenues.But this is one aspect of the business that is seeing a gradual rise because of people

becoming more aware and conscious of their appearance and are willing to spend more money

for them.

Only L’Oreal appears to have has managed to successfully push its product line,

especially the hair treatment products through the beauty salons. Some of the reasons

for this being – exclusive sales of L’Oreal products in the salons, regular training for the

salon staff and sale of certain L’Oreal products not available at any other outlets.

Growth Estimates

According to Value Notes, the overall estimated growth rate for this industry (in FY

2008-09) in terms of number of parlours would be between 30-33%, but revenue growth



would be only about 9-10%. It is also estimated that the growth rate would be higher

among the metros and the smaller towns.

Also, growth rates would be better among the large parlours rather than the medium

and small parlours. This is because the smaller players are being threatened by the

burgeoning home segment.

Growth Drivers:

An overall increased awareness of beauty

Improvement of technical skills, a growing demand for something new

Veering of beauty salons towards ‘treatment’ and ‘therapy’

Aggressive efforts by companies like L’Oreal and Wella for their products.

Inhibitors to growth are mainly the stiff competition due to the establishment of small

and home size parlours. This is also due to the emergence of a lot of training institutes

offering inexpensive short duration courses.

Also, problems faced by the parlour owners include the service tax, felt by mostly the

large beauty salon owners. Undercutting by smaller parlour owners was also another

problem faced by this industry.



Some highlights:

The size of the beauty salon industry is estimated at between Rs. 1493 and Rs. 1805

crores. This is attributed to the advent of foreign TV channels, changing lifestyles,

higher purchasing power and greater awareness and need for ‘beauty’.

However, the growth rates in number and revenue are contrasting. While the

increase in numbers is dramatic, the revenue growth is pegged at only 9-10%.

The barriers to entry in this business are low and therefore it makes the business

very competitive. This is more significant in the smaller and home based parlour

segment.

The higher end market is growing at a considerably slower rate, but is grossing the

highest revenues. This is evident from the fact that a number of major national and

international names in the beauty and personal care segment are making forays into

this industry.

Typically, the speciality skills and branding, therefore appear to make the customer

loyal, especially in terms of the high-end large parlours.

Specialised services and niche products are the buzzwords. This is quite evident for

greater demand for aromatherapy, herbal treatments etc. Creating a niche seems to

the demand of the hour rather than a ‘jack of all’ business.

‘Health’ and ‘beauty’ are being converged. This also proves to be good news for the

industry as a wider range of services could be included in their offerings to

customers.

Also, a lot of salons (especially in the large metro segment) appear to be attracting

men as clientele. There seems to be a movement from traditional barber shops to

speciality salons for men offering a whole range of services.



Objectives of the Project

The objective of the project will be to design an entry strategy for Hair Care Products of ITC in

Beauty Salons. The objectives of the project can be sub divided into four heads:

Product Portfolio for Salons :

The product portfolio of the Referent Brands needs to be analysed. An analysis of the

benefits, attributes, advertisement and MRP needs to be done to arrive at the Benefit

Mapping of the Products.

Profile Segmentation for Salons :

An Ideal Representative Sample needs to be arrived at to understand how the market has

been segmented and which Referent Brand occupies a stronger foothold in the Kolkata

Market.

Distribution Process & Distribution Channel for Salons :

To understand the Distribution Process and Distribution Channel of Referent Brands

L’orealProfessionnel, Wella, Kerastase,& Schwarzkopf.

Process of Training for Salon workers for creating a positive word of mouth

for the Brand :

To understand the process of training of salon workers and how does it help.

Category:

The project covers all Hair Care Category Products.

Market Area:

The area of operation is restricted to the city limits of Kolkata.



Product Portfolio for Salons

Objectives

The product Portfolio of the various Salon Brands needs to be analysed. The Referent

Brands include:

L’oreal Professionnel, Wella, Schwarzkopf, & Kerastase

The product portfolio of the Referent Brands needs to be analysed. An analysis of the

benefits, attributes, advertisement and MRP needs to be done to arrive at the Benefit

Mapping of the Products.

A Profile Segmentation Definition for the salons needs to be arrived at.

The Brands & Portfolio of Products of a brand which is available in a Salon on the basis of

the Profile needs to be mapped.

A Recommended Product Portfolio for ITC needs to be arrived at on the basis of all the

above analysis.



Recommended Product Portfolio

For Shampoos:



For Conditioners



Market Segmentation

Objective:

A Profile Segmentation definition for the salons needs to be arrived at.

The Brands & Portfolio of Products of a brand which is available in a Salon on the basis of

the Profile needs to be mapped.

An Ideal Representative Sample needs to be arrived at to understand how the market has

been segmented and which Referent Brand occupies a stronger foothold in the Kolkata

Market.

Methodology:

Various salons across the city were visited.

The brands used in the various salons were identified.

Various Parameters to differentiate between the salons were identified.

The parameters included :

Location( whether Commercial or Residential)

Starting Price range of Basic Services

Number of Salon Chairs

Whether it is a Ladies Salon or a Unisex Salon

Customer Profile

Out of the above mentioned parameters, Location and stranding price range of basic services

were identified to be the most important criteria for classification of Salons.

On the basis of information gathered a matrix was formed with the parameters of Location

(whether Commercial or Residential) on one hand and starting price range of Basic Services

on the other.



Salons visited:



Sample Matrix



Observations

1. The most premium salons have either Shcwarzkopf or Kerastase Products.

2. L’oreal is found in all types of Salon Profiles and it occupies the highest Market Share.

Even though it is found in Salon Profiles it differentiates itself by keeping a larger range

of L’oreal Products in the Higher Profile Salons. For example, a salon in the 150-250

range will usually always have Serie Expert Products, but salons in the 350 range and

above will have, apart from Serie Expert , Tecni Art & Matrix products also.

3. Schwarzkopf is quite a premium Brand and can be found only in the 350+ and 500+

profile of Salons.

4. Kerastase is extremely premium and is not found much in Kolkata.

5. Wella can be primarily found in the first 2 Profiles only, i.e.,150+ and 350+.

6. L’oreal and Wella occupy a strong foothold in the 350-450 range in Residential as well

as Commercial Area.

7. Wella & Schwarzkopf are found in posh residential areas mainly as well as some can be

found in commercial areas.

Based on the above analysis it can be said that L’oreal occupies a foothold of around

70-72%. The rest comprise Schwarzkopf and Wella, whereas Kerastase has only 2-3

salons in Kolkata.



Distribution

Objective:

To understand the Distribution Process and Distribution Channel of Referent Brands L’oreal

Professionnel, Wella, Kerastase,& Schwarzkopf.

Methodology :

Various salons across the city were visited to understand the process of Distribution.

The Distributors of the various Referent Brands were also contacted to get a detailed

understanding of how the Distribution Process is spread out from the company to the

ultimate consumer.

An idea of the various Sales and Trade Promotion techniques used by the Companies is

also taken note of.

Apart from the above mentioned a note is also taken of the most popular selling products.



Wella :

CompanyCNF(Carrying and Forwarding Agent)DistributorSalon

These CNF’s are located in various zones in the country and they then forward the

products to the distributors in the various cities.

The order capture is done in a way such that salons in a particular area are allotted days

in a week. The salons call up the distributor with the order they require and on the day of

the week which is allotted to them the order is delivered to them.

The order capture is done in a way such that salons in a particular area are allotted days

in a week. The salons call up the distributor with the order they require and on the day of

the week which is allotted to them the order is delivered to them.

Offers- Various Trade Promotion schemes are on offer. There are mainly two types of

offers- Quantity Based Scheme and Price Based Scheme.

Quantity Based scheme is such that on purchase of a particular quantity of products

discounts are offered to the salons. It may also be in the form of commission,etc.

Price Based Scheme is such that on purchase of products worth a certain amount

discounts or price cuts are offered to salons.

Top Selling Products :

Wella is the world leader in straightening and rebonded hair products.



L’oreal Professionnel and Kerastase

CompanyCFA(Depot)DistributorSalon

These CFA’s are located in various parts of the country. The products are forwarded from

these areas to the distributors in the cities.

There are various distributors in Kolkata to cater to the many L’oreal Salons in different

areas.

Order capture is done in such a way that the salons call up the distributor and place an

order on the basis of their requirement.







Top Selling Products: Volume Hair Shampoo and L’Oreal Hair Spa Treatment are very

popular.



Schwarzkopf

CompanyCFN’sDistributorSalons

The distribution channel works in much the same way as in the case of the above two

companies.

The distributors are allotted certain areas and their market is thus the salons in these

areas.

The salons call up the distributors or the company to place an order with them. The order

is then transferred on to the distributor.







On a Kolkata basis there are around 35 Schwarzkopf salons .

Top selling Products- Client Specific.



Recommended Distribution Channel

Keeping in mind ITC’s infrastructure and reach the following Recommended Distribution Channel

diagram was designed to reach all the major markets of the city in the most appropriate and

timely manner :

Suggested Sales Promotion techniques :

Quantity Based scheme :

o Contests for reaching Target Sales o Commission for sale of Products beyond a specific quantity. o Discounts on purchase in Bulks.

Price Based Scheme :

o Gifts and Gifts Vouchers for High Performing Salon Clients o Attractive Discounts for consumers in the beginning Phase to attract consumers.



TRAINING

Objective:

To understand the process of training of salon workers and how does it help.

Observations:

All the main players in the Salon Business, L’oreal, Wella, Schwarzkopf have set up their

own Training Institutes where they train people to be Beauticians, Hair Dressers and Salon

Managers. They then work for their respective salons. However, these Training Institutes

provide training not only to people who will work in their salons but also to those who

want to start a salon of their own, or who want to be placed in other salons.

Training has become a very crucial aspect in the Salon Business as it is getting very

competitive. There is a need for trained professionals to keep up with changes in the

technical and service standards. It is important also to keep up the reputation of the salon

and the salon brand used.

The training courses offered are sometimes a 6 month course with internship or an 8 month

course with internship. There are options for both freshers and practicing beauticians and

there are short-term and long-term courses that cover the entire gamut of beauty:

skincare, makeup and hair and range and with all the aspects of salon services and client

care.



Training is given through practical demos with the help of modern salon machines and

equipment. It is conducted in a Professional environment where live demos are also shown.

Regular workshops and seminars are also conducted on a monthly basis or so where the

salon professionals are trained by renowned hair dressers.

These seminars are also conducted when the company is launching new trends hair styles

and also new hair colors. In these workshops the salon professionals are brought up to

date with the trends and introduced to the new products that the company is coming up

with.

Jawed Habib, for instance, has institutes in Mumbai, Kolkata, Hyderabad, Bangalore,

Ahmedabad, Delhi and Kathmandu (Nepal). Shahnaz Husain, in contrast, has some six

schools in Delhi and 56 branches across the country. Lakme has an institute in Mumbai,

where training is imparted to its personnel from time to time. The institute also provides

beauty education to external candidates, something that Jawed Habib and Shahnaz

Husain do too.

L’Oreal, has an academy in Mumbai, Christine Valmy, a school based in New York that

began imparting beauty education in India some two years ago, and Wella, has a tie-up

with popular hair stylist Nalini (of Nalini & Yasmin fame).



Conclusion

The Recommended Product Portfolio (Shampoo, Conditioners, and other Hair Care products)

will be used by ITC when they venture in the Salon Business.

After understanding the Market Segmentation and Distribution Procedure used by the Referent

Brands I reached the following recommendations:

Keeping in mind ITC’s brand value in the market and its ability to procure prime

locations in the city I recommend a Low Penetration and High Priced Strategy. The main

reason behind this strategy is to present the range as a Premium Range with high utility.

Exclusivity and adequate national promotional will help to raise the buzz about the

products.

In the initial stages the salons must be opened in central locations in the city and also in

the Wills Lifestyle stores to reach the target audience.

Salons can also be opened in I.T.C. Hotels. As most of ITC’s hotels are in the 5-star

category and the Wills Lifestyle Stores targeted at the higher income group the Salons

would be strategically placed to attract the end consumer.

The main idea is to promote the Salon chain as a high-end lifestyle product.

Proper training must be provided to the Salon Staff and High end beauticians and Hair

Stylists must be hired. Adequate training must be provided to the staff to ensure the

highest service level.

Training is an important aspect, as it helps the staff to keep in touch with the new trends

in the Industry, as the Industry itself is dynamic.

It is also important to come up with various Sales Promotion techniques targeting both

the Distributors and the consumers .



Annexure

OBSERVATIONS

Referent Brands- L’Oreal Professionnel, Wella, Schwarzkopf and Kerastase

Customer Profile

The customer profile differs in various salons across the city . The determinant in most cases is

Location. For a residential location :

50% Housewives

20-30% School and College Children

20 % Working Women

Commercial Location

60% Working Women

15% School and College Children

25% Housewives

Salons near or in malls and marketplaces have a mixed customer base and have more footfall.

Classification of salons can be done on the basis of price of a regular haircut. Price of services in

salons in dependent on location and then on brand name.

In residential areas : 200-250

In Commercial areas:350-400

For extremely premium salons like Habib’s and Bridget Jones the prices are higher: 500+

Distribution:

For most salons whether L’Oreal, Wella , Schwarzkopf there is an agent or middle man involved

who is the link with the company. He ensures regular availability of products.

In other cases the saloons call up the company to order the products they require.

Training:

The professionals working in the salons of L’oreal, Wella , Schwarzkopf are regularly trained in

the form of workshops and seminars on a monthly basis. They are trained in terms of new

trends and are informed about the new products launched and their uses and benefit



References

1. L’oreal Professionnel Distributor:

Mr. Mobashir – 9903397028

2. Wella Distributor:

Ambika Enterprises: 033 24656335

3. Schwarzkopf Distributor:

9830819660

4. Glitz and Glamour Training Institute:

Mrs. Kakuli-9836381831

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