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 INTRODUCTION

i In the early 1990s with the entry of

L'Oreal and hair colours. The hair
colour market became one of the
fastest growing segments in 1998.

i Today, if there are more brands in

the Indian market, it¶s largely due to
demand.

i When hair colours first came to

India, it was largely to cover grey
hair.

i But with the increasing number of

youth in the country, it has become a
fashion statement, especially with
the young and trendy.
 INTRODUCTION

i Hair colours were traditionally aimed

at the 15-45 age female segment.

i But market research shows that there

was a growing population of 15-45
males which patronised the category
in a big way.

i This is because of the corporate

culture that places an emphasis on
young male employees looking smart
and trendy.

i That¶s why all the players have plans

to _
 

 



 

   
 

  _



 
 INTRODUCTION

i In 2005 the total hair colour industry

in India is around Rs 650 crore.
i This is further divided into two
segments. The Rs 450 crore retail
segment, which is growing at a 20 per
cent clip annually (2005).

i According to market
research 
 market share at 40
per cent, followed by ¢
 at 15
per cent and  at 8 per
cent(2005).

i Rest of the brands make up the

remaining 37 per cent(2005).
 INTRODUCTION

i The size of the hair colour

market in 2009 was Rs  
  

 
 

 
 
year-on-year.

i odrej Sara Lee, which operates in

the men's hair grooming and styling
segment estimates the men's hair
grooming and styling segment to be
a ? _
market.

i R  

 
_
_

    
 L'Oréal

i L¶Oreal made its debut in India in 1991

with the launch of Ultra Doux shampoo
from Laboratories arnier.

i L'Oréal formed a joint venture with MJ

roup to launch the Ultra Doux range of
hair-care products. Encouraged by the
acceptance its brand received in India,
L'Oréal seized the opportunity to break
the JV and form its own subsidiary in
1994.

i L¶Oreal expanded rapidly since it

introduced its L¶Oreal Excellence line of
hair colour in 1997² The first time a
company introduced the concept of hair
colour   

  
.
 L'Oréal

i A company known for consistently launching

new products every few years, French cosmetics
major L'Oréal recorded a turnover of Rs 600
crore (Rs 6 billion), and a growth of nearly 40
per cent, in India in 2007.

i One of the most important factors that worked

for L'Oréal is its 



 
.
lobally, L'Oréal spends *

of its
worldwide turnover on advertising and
promotion and *
on research and
development.
i In India, it is the    _


 in
the industry.
i L'Oréal operates in India through four main
divisions:   
 


 
 



i The biggest contributor to its revenue in India is
the consumer products division led by its
strongest brand in terms of sales - arnier.
 Marketing Strategy

i According to p  




¢
, a simple strategy.
³Introduce new, different and better products,´
and added, ³we strongly believe that its never too
late to enter a market if you have new, different
and better products(2002).´

i According to   
 R
!  
! ÕWe have deployed a
judicious blend of global and local methods of
advertising to appeal to the Indian consumer,³.

i ³The Indian consumer is not as price conscious as

it is often portrayed to be. Our brands were more
expensive than an average fast moving consumer
good (FMC) here, yet we found a market
because    
    
_
,Õ says Dayal.
 odrej

i odrej was the leader in the hair dye

business for over two decades (1976 - mid
90s) with virtually no competition to its
dominance in the Hair Dye market. The
brand enjoyed a steady, albeit slow growth
penetrating 4-5% of the all adult
segment(2002).
i In 2005, while 
 is largely mass-based,
selling its Colour Soft and Renew brands at
Rs 99 and Rs 65 respectively.
i odrej Consumer Products Ltd has seen a 
 
growth in the hair colour category
during the quarter ended December 2009.
i odrej hair colours are available under the
brands 
"



# ?
R _$ R   "
"

R   %  
 odrej

i For CPL, hair colour is the

second biggest business for
the company making up 23
per cent of its net sales in the
last financial year.
i Also being one of the most
inflation-resistant categories
in the fast moving consumer
goods sector, CPL plans to
launch more products
periodically in this space in
the coming months, said
Press.
 odrej

i The powder hair dyes, make up 50

per cent of the Rs 580 crore hair
colour market in India. However,
in terms of volumes it makes up an
even greater share of 75 per cent
of the total market, said CPL.

i The rest of the market is made up

of cream based hair colourants,
which are catching up fast among
the affluent consumers.
 odrej

‡ CPL is still the market

leader in the overall
category with a share of
35.2 per cent. Although its
share has gone down in the
last six years from 43.9 per
cent in 2002 as many
players both global and
local have entered the
Indian market.
 Market strategy of CPL

i Mainly television and a few press ads led the launch. The
launch TVC focussed on the fact that R 
was a
breakthrough product especially formulated for Indian hair.
Stylish in their execution, the commercials were run on
mainline TV channels like Star, Sony and Zee TV. Thus the
target group (25+year-old, SEC A/B women) was effectively
reached(2002).

i ÕPremium is not the big focus area for CPL right now,³.

i The primary focus is to increase penetration of existing

products in rural and semi-urban areas.
 ?

i Targeting the mass segment for driving

volumes, Modi Revlon plans to push
its hair colour brands harder in the
market. It plans to introduce India-
specific hair colour brands in the
future.

i The company has brands such as

R   %

R   % , which
span all price strata in the hair colour
market.

i Color N Care, priced at Rs 120 per

packet, will be available in six shades
- ÷
 
   

p   

  
  ¢
 

 ?

i The Rs 100-crore Modi Revlon started

making profits last year and has been
growing at 25 per cent for the past three
years.

i The company has set aside 15 per cent of

its total turnover as its ad budget. It has
been releasing ads from its international
catalogue and has not aappointed an
advertising agency in the country.
i 10 per cent market share in the first year.
i Modi Revlon, a 74:26 joint venture
between Modi Mundi Pharma and the US-
based cosmetics giant.
i p
   



 
  
  

 
   



 



 
 
 Marketing Strategy

i ÕWe have a two-phased roll out plan for the brand

to build up our position in the mass market hair
colour segment. While the first year, 


 
 
_    
 
 
  

 

 
 _  

 &' 

  Õ said Mr Deepak Bhandari,
Director-Marketing, Modi Revlon(2007).

i ÕBut due to the growing consumer base and

demand for the segment in the country, we
decided to launch a brand that was specific to the
wants of Indian womenÕ .,

i On marketing initiatives, the company plans

various below-the-line activities and use the print
medium to promote the product, while in the
second year, the campaigns will be expanded to
television campaigns.
 Marketing Strategy

i The company also plans to add 25,000

outlets to its existing 25,000 distribution
outlets to build upon its mass products
portfolio.

i The total ad spends for Color N Care will

be Rs 5 crore for 2007-08.

i Mr. Deepak Bhandari said, ÕRevlon's core

area is colour cosmetics and we will
continue to have innovations to develop the
category in India´.

i We are concentrating on 3 P¶s i.e. 
 



 
 



  
at
this juncture to increase our foothold /
strengthen our position amongst the
consumers.´
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 arnier

i In the hair colour segment, arnier

operates in the mid-price and luxury
segment. This has enabled it to
garner a 20 per cent share in a
market dominated by local hair
colourants and dyes.
i arnier attributes its performance to
being the first player in India to
introduce a cream-based hair colour
below the price of Rs 100 (2002)
and the first home-highlighting kit
(2005).
i ¢
 s sub-brand arnier
Colour Naturals carries a tag of
Rs 99, its Excellence is priced
at Rs 399.
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