Professional Documents
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ON
EXECUTIVE SUMMARY
The application of the four Ps (Product, Price, Promotion, and Place) of
marketing revolves mainly around the customers in the target segment. The
target segment for any product is that homogeneous group of people which is
purported to be the most potential customer for the product. The market follows
the Pareto Principle, which says that 80 per cent of the sales come from 20 per
cent of the people. Thus, for any product, one of the major tasks of marketers is
to identify the group of 20 per cent that gives 80 per cent revenue of that
products sale to the company. No surprise then that major marketing efforts of
companies attempt to attract the most potential group.
This project is an extensive study of the 4Ps analysis of the Garnier products.
This detailed study helped us in understanding the Price, Place, Product and
Promotion aspect of the Garnier products. After having done this study I was
able to identify the pricing strategies followed by LOreal in terms of their
product along with their promotional strategy in the NCR region.
This case study also helps in getting an overview of the Indian hair care market
scenario, its growth trends, future prospects and opportunities available.
L'Oreal is one of the most successful International premium brands in India.
This French brand came to India in 1991 with its Ultra Doux range of Shampoo
through its Agent Laboratories Garnier. In 1994 Laboratories Garnier became
the 100% subsidiary of L'Oral.
In 2000 LOreal launched its range of cosmetics in to Indian market. The Indian
Cosmetic and skin care market is estimated to be around $300 Million. In this
market the Color Cosmetic segment is around Rs 250 crore while the Skin care
segment is estimated to be around Rs 400 crore.
L'Oral's strategy is to evolve Garnier into a master brand, stretching across
categories that over the next few years would include soap, body wash and
facial care, similar to Unilever with Dove. "Fructis shampoo and conditioner is
core, and they are introducing styling aids as part of a mega brand strategy.
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CHAPTER 1: INTRODUCTION
The hair care market in India is valued at $250 million. It has registered a
growth of 3.8% over the previous year. The hair care market can be segmented
into hair oils, shampoos, hair colorants & conditioners, and hair gels. According
to A C Nielsen (the world's leading marketing information company), hair
colorants, feminine hygiene, and baby care have accelerated growth in personal
care market. Hair colorants are substitutes for hair dye to counter graying hair.
Hair colorants indicate strong growth trends with a year over year growth of 8
per cent. Gone are the days when hair conditioners and hair colorants were used
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occasionally to look beautiful. Today, they have become the way of life. Today,
if there are more brands in the Indian market, its largely due to demand. For
instance when hair colors first came to India, more than a decade ago, it was
largely to cover grey hair. But with the increasing number of youth in the
country; it has become a fashion statement, especially with the young and
trendy.
Thats why all the players have plans to modify existing products, launch new
products and target different geographic segments and age-groups. However,
hair conditioners in India still face a difficult market due to long established
habit of using hair oil and ayurvedic treatments, as they are cheaper for
consumers and lack the chemicals of conditioners.
The major players in hair colorants category are Godrej, Garnier, L'Oreal, and
Lakme. The hair oil market is valued at Rs. 6 billions. Hair oiling is a major
niche in the hair care segment. Unlike market abroad, India has a large quantity
of consumers whose hair care expenditure also includes hair oils. The
penetration level of hair oil is around 87%. Around 50% of the population uses
hair oil every day. The growth rate of hair oils in rural India is faster than the
growth rate in urban India. The major players in hair shampoo category are
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HLL, Marico, and Dabur India. Hair gel market segment is at a primary stage
and not many local brands are available in India. Hair gels/creams are mainly
used for hair grooming by men and is used as a fashion accessory. The market
penetration of hair gels/creams is very low, and is limited to a small section of
the urban market.
EVOLUTION OF SHAMPOOS IN INDIA
HLL has been an undisputed leader in this market from early 90s from
where the concept of shampoos got consideration.
In 1964, Sunsilk was launched on a general or a normal shampoo
platform.
In 1971, Clinic Plus was launched on a different platform as a health
shampoo for family usage.
P&G launched for the first time, an anti-dandruff shampoo in 1987.
Sunsilk re-launched in 1987 - Shampoo + Conditioner with Sachet packs.
This time, it was launched on a beauty platform with a new variant in its
packaging.
HLL goes rural with Sachet shampoo concept. HLL was the first
company to target the rural market with shampoos.
P&G later launched Clinic Active in 1991 focusing more on the health
platform by introducing pro Vitamin B in its shampoos.
Sunsilk re-positioned and re-launched in 1994 (Nutracare) - Pink for dry
hair, yellow for normal hair, green for oily hair and black for long hair.
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This stage marked the entry of competition in India due to certain factors
such as the burgeoning middle class, a huge untapped market, low
penetration levels, rising awareness of the youth.
P & G enters India in Nov 1995, with the worlds largest selling brand Pantene
Colgate Palmolive launched Optima also in Nov 1995 ( breakthrough in
Keratin treatment )
Nirma launched Nirma Shampoo which went into rough weather because
it also had a detergent and soap with the same name. The brand name
also had low price connotations.
In mid 1997, per capita consumption of Shampoo increased
Of the Rs. 350 Cr. Shampoo market, the AD segment accounted for a 20
% share
P & G launched its internationally acclaimed A & D shampoo H & S in
1997 with Zinc Pyrithine (ZPT) - a unique anti-microbial agent. There
were 2 variants - regular and menthol
Sachet sale became 40 % of all shampoo consumption in the country.
Clinic, Sunsilk, Organics and Lux and their various brand extensions
dominate the shampoo market.
In 1998, the company re-launched Clinic and Sunsilk brands.
Sunsilk was re-launched with Fruitamins.
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Vatika and Nyle. The anti-dandruff shampoos include Clinic All Clear, Head
and Shoulders and Dabur Vatika as the best performing brands. The premium
products in the shampoo market include Shehnaz Hussain, LOreal and Revlon
Flex as the ruling brands in the market. On the basis of the research conducted
by us, the shampoo market has a large untapped market as it is still considered
as a premium cosmetic product by a huge part of the Indian population. This can
be justified from the current market scenario of shampoo market which states
that the current per capita consumption of shampoos by Indian consumers is just
13 ml which is very less as compared to its other Asian counterparts where t is
about 160 ml in Indonesia and about 330 ml in Thailand. Further, our research
shows the following facts:
The frequency of shampoo usage is very low. Most consumers use
shampoo only once or twice in a week. In many cases, these products
are used on special occasions such as weddings, parties etc.
Some customers use shampoo only to address a specific problem such
as dandruff or when they need to condition their hair.
Use of conditioners is not common.
premium segment or those who are very involved with their hair care.
Some consumers use natural conditioning agents such as henna.
About 50% of consumers use ordinary toilet soaps to wash their hair.
About 15 % of consumers use toilet soaps as well as shampoo for
cleaning their hair.
product awareness in the Indian market and also focusing on targeting the rural
market which is majorly unaware about the product. It is due to this reason hat
Ad campaigns are on a rise as there is a lot of competition in this area and there
are low penetration levels with a large untapped market. There are certain
brands that are actively increasing their presence in the market by marketing
their shampoos through different channels, especially online marketing.
INTRODUCTION
on
hair
colour
the
, skin
care,
company
sun
is
protection, makeactive
in
range Garnier, luxury products such as Lancme and active cosmetics such as
Vichy. Its closest global competitor in the premium make-up segment is Revlon.
LOral has six worldwide research and development centers: two in
France: Aulnay and Chevilly;
one
in
Jersey;
one
management, systems and structure. Being the worlds second largest cosmetics
major, LOreal is planning to foray into the Rs 1,000-crore Indian herbal and
ayurvedic cosmetics industry. After identifying its targets, LOreal India is in
advanced talks with Biotique and VLCC to acquire herbal/ayurvedic cosmetics
brands. The group is taking the acquisition route to enter this niche sector.
LOreal has thus identified India as one of its top five growing businesses
globally. L'Oral's research facilities in France, the USA, and Japan bring
together more than 3,000 scientists and research staff. Their discoveries are
published in leading scientific journals. LOrals innovations are patented,
creating some 586 patents in 2004 alone.
LOreals methodologies for evaluating the safety and efficacy of ingredients
and finished products, product evaluation and claim substantiation are
recognized by the international scientific community.
Board of directors
Current members of the board of directors of LOral are:
Jean-Paul Agon, Chairman and CEO
Jean-Pierre Meyers, Vice-Chairman of the Board of Directors
Peter Brabeck-Letmathe, Vice-Chairman of the Board of Directors
Franoise Bettencourt Meyers, Director
Paul Bulcke, Director
Charles-Henri Filippi, Director
Xavier Fontanet, Director
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1. The benefits offered by our products are supported by the scientific and
customer evidence gathered at 13 research centers, 13 evaluation centers and
through collaborations with leading independent research institutes around
the world.
2. LOral products are validated by independent cosmetic-clinical studies
under dermatological control to assess their efficacy and safety. The sample
size of these cosmetic-clinical studies is in line with the industrys standards.
3. In addition, LOral conducts consumer studies to assess the products
efficacy and satisfaction rate before they are launched. These tests are
conducted by independent research companies and performed on a statistically
significant number of women and men.
4. Moreover, customer satisfaction surveys are carried out after the products
are launched. These involve interviewing a statistically significant number of
people who have bought and used the products for several weeks to assess their
level of satisfaction and to help us to continually improve LOreal products.
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14
products
help
look
healthy
and
feel
good
every
day.
Garnier, L'Oreal and Maybelline, the three brands of LOreal have been defined
by their price segments and positioning. The company has been steadily
increasing its product portfolio in the Indian market especially in the hair care
segment. Its skin care brand of Garnier has been extended to a shampoo and
hair conditioner under the Fructis brand, in spite of the presence of Garnier's
Ultra Doux shampoo and hair conditioner. Its hair coloring portfolio has also
been given a boost and the company has decided roped in Kareena Kapoor as its
new brand ambassador for its hair color brand of Garnier Nutrisse. Garnier
concentrated on the Natural Hair care market with the main USP of strong hair.
The brand positioned as a Unisex brand mainly used its international campaigns
in India to appeal to the Indian consumer.
Garnier has been able to establish itself firmly in the Indian market and has
clearly defined its target market which is the middle class and the upper middle
class segment. Garnier has very effectively designed its promotional strategies
by adapting to the changing customer demand. It has penetrated firmly in the
Indian market both in skin care as well as hair care products covering a wide
range from shampoos, conditioners, to gels, serums, hair mousse, anti-acne
ointments, anti-wrinkle creams etc. The accessibility factor of Garnier products
has been taken care of by the company by ensuring easy availability of its
products in almost all confectionery item stores to malls and kiosks.
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COMPANY REVIEW
Garnier is a mass market cosmetics brand of L'Oral that produces hair
care and skin care products. The company started as Laboratoires Garnier in
1904, and was acquired by L'Oral in the 1970s. Garnier is sold in numerous
countries worldwide, with specific product lines targeted for different skin types
and cultures. In 2011, Garnier partnered with Terra Cycle to promote up
cycling of
product
containers
and
the
introduction
of biodegradable products. Garnier hair care and skin care products is one of the
highest luxury brands used in Asia, China, Japan & India. In the Brand Trust
Report 2012, Garnier was ranked 73rd among India's most trusted brands and
subsequently, according to the Brand Trust Report 2013, Garnier was ranked
47th among India's most trusted brands. In 2014 however, Garnier was ranked
83rd among India's most trusted brands according to the Brand Trust Report
2014, a study conducted by Trust Research Advisory, a brand analytics
company.
Garnier offers a vast range of hair color, hair care and skin care that bring you
natural beauty. To guarantee complete satisfaction to its customers, Garnier
seeks to continually improve product performance by addressing their
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customers specific needs using the companys long expertise in hair care, hair
color and skin care.
To be sure Garnier products guarantee maximum effectiveness in total harmony
with the customers body, the company rigorously lab-tests all its new product
propositions. Evaluated by experts and consumers before being put on the
market, Garnier products give immediate and visible results. For the natural
beauty of hair and skin, the company offers to its customers, more than simple
products, providing advice and routines adapted to their personal needs.
INTRODUCTION TO 4 PS OF MARKETING
The Marketing mix is a set of four decisions which needs to be taken before
launching any new product. These variables are also known as the 4 Ps of
marketing. These four variables help the firm in making strategic decisions
necessary for the smooth running of any product / organization. These variables
are
1.
Product
2.
Price
3.
Place
4.
Promotions
Marketing mix is mainly of two types.
1) Product marketing mix Comprised of Product, price, place and
promotions. This marketing mix is mainly used in case of Tangible goods.
2) Service marketing mix The service marketing mix has three further
variables included which are people, physical evidence and process.
The term marketing mix was first coined by Neil H Borden back in 1964 in his
article The concept of marketing mix. Several strategic analysts over the years
believe that the marketing mix can make or break the firm. Having the right
marketing mix at the start of the marketing plan is absolutely essential. Over
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time the concept of marketing mix has provided a steady platform for the launch
of a new product or business.
As mentioned before, the marketing mix is characterized by four different but
equally important variables. These variables are never constant and may be
changed over time. However, a change in one of the variables may cause a
change in all the other variables as well. The variables are as follows
1) Product The first thing you need, if you want to start a business, is a
product. Therefore Product is also the first variable in the marketing mix.
Product decisions are the first decisions you need to take before making any
marketing plan. A product can be divided into three parts. The core product, the
augmented product and the tertiary product. Before deciding on the product
component there are some questions which you need to ask yourself.
What are the secondary products which can be sold along with primary
(Warranty, services)
Based on these questions, several product decisions have to be made. These
product decisions will in turn affect the other variables of the marketing mix.
For example You launch a car with is to have the highest quality. Thus the
pricing, promotions and placing would have to be altered accordingly. Thus as
long as you dont know your product, you cannot decide any other variable of
the marketing mix. However, if the product features are not fitting in the
marketing mix, you can alter the product such that it finds a place for itself in
the marketing mix.
2) Pricing Pricing of a product depends on a lot of different variables and
hence it is constantly updated. Major consideration in pricing is the costing of
the product, the advertising and marketing expenses, any price fluctuations in
the market, distribution costs etc. Many of these factors can change separately.
Thus the pricing has to be such that it can bear the brunt of changes for a certain
period of time. However, if all these variables change, then the pricing of a
product has to be increased and decreased accordingly.
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Along with the above factors, there are also other things which have to be taken
in consideration when deciding on a pricing strategy. Competition can be the
best example. Similarly, pricing also affects the targeting and positioning of a
product. Pricing is used for sales promotions in the form of trade discounts.
Thus based on these factors there are several pricing strategies, one of which is
implemented for the marketing mix.
3) Place Place refers to the distribution channel of a product. If a product is a
consumer product, it needs to be available as far and wide as possible. On the
other hand, if the product is a Premium consumer product, it will be available
only in select stores. Similarly, if the product is a business product, you need a
team who interacts with businesses and makes the product available to them.
Thus the place where the product is distributed depends on the product and
pricing decisions, as well as any STP decisions taken by a firm.
Distribution has a huge affect on the profitability of a product. Consider a
FMCG company which has national distribution for its product. An increase in
petrol rates by Rs. 10 will in fact bring about drastic changes in the profitability
of the company. Thus supply chain and logistics decisions are considered as
very important costing decisions of the firm. The firm needs to have a full proof
logistics and supply chain plan for its distribution.
4) Promotions Promotions in the marketing mix includes the complete
integrated marketing communications which in turn includes ATL and BTL
advertising as well as sales promotions. Promotions are dependent a lot on the
product and pricing decision. What is the budget for marketing and advertising?
What stage is the product in? If the product is completely new in the market, it
needs brand / product awareness promotions, whereas if the product is already
existing then it will need brand recall promotions.
Promotions also decide the segmentation targeting and positioning of the
product. The right kind of promotions affect all the other three variables the
product, price and place. If the promotions are effective, you might have to
increase distribution points, you might get to increase the price because of the
rising brand equity of the product, and the profitability might support you in
launching even more products. However, the budget required for extensive
promotions is also high. Promotions are considered as marketing expenses and
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the same needs to be taken in consideration while deciding the costing of the
product.
Thus as we see from the above diagram, all the four variables of marketing mix
are inter related and affect each other. By increasing the pricing of the product,
demand of the product might lessen, and lesser distribution points might be
needed. On the other hand, the product USP can be such that maximum
concentration is on creating brand awareness, thereby increasing need of better
pricing and more promotions. Finally, the overall marketing mix can result in
your customer base asking for some improvement in the product, and the same
can be launched as the upgraded product.
The role of marketing mix in Strategy Marketing mix plays a crucial role
while deciding the strategy of an organization. It is the first step even when a
marketing plan or a business plan is being made. This is because, your
marketing
mix
decision
will
also
affect segmentation,
targeting
and
STUDY OF 4 PS OF GARNIER
Garnier Fructis Daily Care is fortified with Reinforced Active Fruit Concentrate
- an innovative combination of vitamins B3 and B6, fructose and glucose.
Gentle enough for everyday use, it nourishes, strengthens and smoothes each
hair strand, keeping it balanced and healthy-looking. Hair is up to 5x stronger,
up to 5x smoother and so much shiner. The result: Great-looking hair that is
anything but ordinary.
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Drench your hair with moisture! Fortified with Reinforced Active Fruit
Concentrate - an innovative combination of vitamins B3 and B6, fructose and
glucose - this creamy system helps restore moisture in dull, brittle or dry hair.
Moisture is replenished and brilliant shine returns. Hair is up to 5 times
stronger, up to 5 times smoother and so much shiny.
Garnier Fructis Sleek & Shine
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Can your frizzy, coarse, rebellious hair withstand even the most humid weather?
Get the strength to fight frizz with Garnier Fructis Sleek & Shine. It's specially
created to smooth dry, unmanageable hair and contains Nutritive Fruit MicroOils - an innovative combination of apricot and avocado oils, and vitamins B3
and B6. Hair is 5x stronger, 5x smoother and so much shinier. The result: Longlasting frizz control for hair that's incredibly sleek, even with moisture in the air.
Garnier Fructis Length & Strength
Impossibly long locks aren't impossible with Garnier Fructis Length &
Strength! Stronger hair grows even longer. It's the first anti-breakage system
with Reinforced Active Fruit Concentrate - an innovative combination of
vitamins B3 and B6, fructose and glucose. Specially created for hard-to-growlong hair, this system reinforces hair, protecting it from breakage and split ends.
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Soothe your scalp! Created with Pyrithione Zinc and Active Fruit Concentrate an innovative combination of vitamins B3 and B6, fructose and glucose - this
double-action formula is gentle on your scalp, but ruthless on dandruff. It's a
powerful force for healthy-looking hair and the confidence that comes with it. It
helps eliminate the symptoms of dandruff, effective with the first wash, and
makes your hair up to 3 times stronger! The result: No flakes guaranteed.
Garnier Fructis introduces the Strength & Repair System to help reverse the
signs of damage in one week, leaving hair intensely nourished, repaired from
the inside out and more resistant to breakage. The formulas with Nutritive Fruit
Micro-Oils - a combination of apricot and avocado oils - nourish hair, and
Ceramide Reconstructor to help repair and fortify hair.
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Active Fruit concentrate nourishes the hair from the roots and strengthen the
hair fibre to give 5X less hairfall. * Lab test: Shampoo + conditioner vs.
ordinary shampoo.
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Its innovative formula makes hair up to 5X stronger* and helps reduce breakage
and split-ends * Instrumental test on shampoo + conditioner vs. nonconditioning shampoo.
Garnier Fructis Long & Strong Serum smoothes hair without heaviness,
detangles unruly hair and helps prevent breakage & split ends.
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Alpha Hydroxy Acids are a specific and original chemical family that is
found in numerous fruits: malic acid in apples, citrus acid in citrus fruits, and
tartaric acid in grapes. Of these, citric acid is the most nourishing for the
hair; it penetrates deep into the hair to improve the mechanical resistance of
hair structure.
GREEN TEA EXTRACT:
It is obtained from young dry leaves which have been macarated and
percolated in cold extraction process in order to reserve the plants active
components. Green tea contains Caffeine, which has stimulating properties
and is considered a medical plant.
CAFFEINE:
The stimulating properties of caffeine help to break down fat. It is also
known for its beneficial effect on micro-circulation and for its decongesting
properties.
ANTI STORAGE GINGKO:
Gingko slows down storage of fats and is renowned for it filtering properties.
FRUIT OILS:
Garnier has selected a unique combination of fruit oils from olives, grape
seeds, blackcurrants, avocado, almond and apricot to help replenish lipids
that the skin is lacking.
Promotional Strategy
The cosmetics giant is using hairdressing schools to stimulate demand for
products many Indians saw as an alien extravagance.
Above a bank in north Bombay, Indias future hairdressers are sculpting the
tresses of volunteer models more willing to let trainees loose on their hair than a
seasoned local stylist wielding a bottle of dye. Everyone is very particular
about their hair these days, said Ruchi Khater, from beneath a stack of silver
foil at LOrals hairdressing academy.
For a customer who needs more than a trim, a visit to a hairdresser in India has
traditionally been something of a hair-raising experience. This was particularly
true for fair-haired Western women with layered styles and blonde highlights.
They learnt the hard way that Indian hairdressers know little of color beyond a
jet-black rinse or a streak of henna.
That is not surprising as 85 per cent of Indian women have long, straight hair.
Their natural tone is dark and they prefer home remedies recommended by their
mothers. Most still use hair oil - vegetable oil, no less rather than fancy
conditioners.
It is a challenging environment for any company trying to sell packaged beauty
products to the majority of Indias 1.1 billion people they are not only alien
but also an extravagance.
The solution for LOral, the worlds largest beauty and cosmetics group, was to
create a market from scratch.
Since it opened its first academy in Bombay in 2006, 73 hairdressers have
graduated. The six-month course turns out professionals capable of working as a
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Last time, we had seen that Shampoos was not a very seasonal category in terms
of advertising on TV. Let's check out the trends for another similar category
from the Personal Care Sector-Hair Dyes. The below graph suggests that like
Shampoos, Hair Dyes do not show any seasonality in terms of advertising
peaks.
LOreal Group and Godrej Consumer Products Ltd are the two big giants in this
category. Their share of expenditures on this category on Television are close to
each other with LOreal getting the top slot with nearly 38% share of the
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Moving on to the Top Brands in this category-it's once again flooded by L'Oreal
Group & Godrej Consumer Products. Garnier Color Naturals (LOreal) is in the
top position whereas its other product - Nutrisse Hair Color Mask and LOreal
Excellence Cream are at the 4th and 5th position. Super Vasmol 33 (Hygienic
Research) is at the 2nd position. At the 3rd position, we have Godrej Powder
(Godrej Consumer Products) whereas its other products - Godrej Color Soft,
Godrej Kesh Kala Tel and Godrej Herbal Hair Dye are at 6th, 7th & 9th position
respectively. Black Rose Kali Mahendi at 8th while Indica Hair Dye gains the
10th position.
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PROMOTION
Garnier has been very active and upfront in adopting new promotional
techniques to market its products. The company follows a very popular
technique to advertise and market its products that is the Viral Marketing policy.
Viral marketing is a term coined to define the productive ways a marketing
message is made available. And corporate are using the medium to circulate
brands and brand messages. The idea has caught on like a virus, as efficiently as
Information Technology has entered households and businesses.
Firms are now structuring their businesses in a way that allows them to grow
like a virus and lock out the existing brick and mortar competitors through
innovative pricing and exploitation of competitors' distribution channels. The
beauty of this marketing technique is that none of it requires any marketing.
Customers, who have caught the virus, do the selling. Viral marketing describes
any strategy that encourages individuals to pass on a marketing message to
others, creating the potential for exponential growth in the message's exposure
and influence. Like viruses, such strategies take advantage of rapid
multiplication to explode the message to thousands, to millions.
Off the Internet, viral marketing has been referred to as "word-of-mouth'',
"creating a buzz'', "leveraging the media'' and even "network marketing.'' It's a
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deceptively simple concept: Create a message, send it via e-mail, and make it so
compelling that recipients want to pass it on to everyone in their address book.
Advertisers are hot on the tactic, and the idea of putting consumers to work
spreading the word about a brand or service seems sound.
When Garnier launched its Fructis shampoo, they latched on to the idea. The
firm had to introduce the aspect of five times stronger hair and the firm had a
braid competition whereby consumers could register on a site and create a knot
on the Fructis braid, as part of their entry into the contest. The knot creation was
actually created (visually presented on the site) and as a next step, consumers
were expected to invite their friends to visit the braid and add to their score. A
record 76,000 consumers created their own knot on the braid and forwarded the
link to more than 82,000 of their friends, a survey report indicated. Viral
marketers practice delayed gratification. They may not profit today, or
tomorrow, but if they can generate a groundswell of interest from something
free, they know they will profit soon and for the rest of their lives. Since 'Free'
happens to be the most powerful word in a marketer's vocabulary, most viral
marketing programmes have attached themselves to it. The idea is to give away
valuable products or services to attract attention. And, more importantly,
someone else's resources are depleted rather than our own. Garnier has
positioned itself as a lifestyle product mainly targeting teenagers and young
girls. This is very evident from Garnier ads be it for Garnier fructis shampoos or
for hair color. In a recent advertisement of Garnier hair color, a daughter
advises her mother to try the product and thus makes an attempt to promote
product among middle-aged women. Hence, expanding the base of the target
segment gives a whole new market to marketers, provided they are successful in
convincing the customers of the second-rung segment. Advertising and marketing
specialists are aiming at young, urban Indian women, who are earning their own money
and are potential customers for a host of products, including name-brand clothes,
cosmetics and new cars. LOral hopes that very soon it will be because they
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PRICE
The target segment for any product is that homogeneous group of people which
is purported to be the most potential customer for the product. The market
follows the Pareto Principle, which says that 80 per cent of the sales come from
20 per cent of the people. Thus, for any product, one of the major tasks of
marketers is to identify the group of 20 per cent that gives 80 per cent revenue
of that products sale to the company. No surprise then that major marketing
efforts of companies attempt to attract the most potential group. In the present
stage of immense competition, companies are required to effectively plan their
pricing strategies to not only retain current customers but to also expand the
customer base by targeting new segments with an aim to convert them into loyal
customers.
Trying to strike a balance in its pricing strategy for the Indian market, `L'Oreal
India Private Ltd believes that by introducing more stock keeping units (SKU's)
it will be able to tide over the steep pricing of its products.
Mr. Ashwin Rajgopal, Marketing Manager, L'Oreal Consumer Products, told
Business Line that, "We are looking at pricing in the Indian context and there is
a kind of balance we have struck. Considering the large number of SKU's that
we already have worldwide, it is possible to market the products at an almost
comparable pricing."
For aspirational products Garnier has adopted an international pricing strategy,
which may not be the case for the rest of the products. However there is no hard
and fast rule. Besides, the company has also been customizing its products for
the Indian market and there is expected to be a blend of both international as
well as Indian formulations for its products. For instance its Garnier brand of
Color Naturals is an `Indianised' product.
L'Oreal has formed a brand matrix with great power of integration. Any new
brand merged into the relevant channel will fully utilize the resources in
existing channel as well as expand L'Oreals whole distribution channel by
integrating its original channel. The dissemination of brand will improve
companys overall influential power.
36
L'Oreal recognized the leverage effect of it brand and focus its propagandas on
brand rather than propagandas on particular product. It is dedicated in building
the relationship between its brand and the market. It aims to enhance brand
power by maintaining the good image in publicities. L'Oreals efforts were also
embodied on its marketing strategy. It always concentrates on supporting those
brands which can mostly represent its advantages and leverage resources to
those premium products.
PLACE
To run a company in profit the place factor out of the 4ps of marketing mix
plays a very crucial role. This includes decisions about where to sell the product
or concerns about where the customers are, and how to get to them. It also
includes the "channel of distribution" - meaning, all the different middlemen a
company use to get the product out to the customer. LOreal runs a massive
worldwide operation employing nearly 62,000 men and women of various
races, backgrounds and religions across nearly 60 countries. Part of the reason
for the corporations success has been its sensitivity not only to its consumers
but also to each and every one of its employees. The corporation has made sure
that all their employees have opportunities to develop themselves both
personally and professionally. This commitment by the corporation to take care
of their own employees has resulted in LOreal being rated by the European
business school students as The Employer of Choice for the year 2006. With
over a century of experience in the cosmetics industry, LOreal has established
19 global brands and produces them in 40 factories across the world. These
factories are all state of the art and ISO 140001 certified and all of their
industrial sites are audited with the standard SA 8000 (LOreal Corporation).
The corporation makes sure that every product that rolls out from their factories
complies with their own high standards and meets or exceeds quality and safety
standards set by local governmental agencies such as the Food & Drug
Administration of the United States of America. LOreals success in the
cosmetic industry is due not only to their high quality, but also to the
corporations marketing efforts to make sure their various brands have a strong
market presence. In past 100 years that it has expanded, it has supplied to 130
countries with offices in 58 different countries. To make its presence feel in
different parts of the world LOreal has acquired many different companies like
37
The Body Shop International plc, known as The Body Shop, which has over
2,000 stores in more than 50 countries.
Weaknesses
Dependence on Western European Markets
Late Entry into Asian markets.
Unable to gain much of market share.
Opportunities
M&A Opportunities.
Growth in Adjacent Categories.
Demand for Natural Cosmetics.
Growth of Direct Sales Channels
Changing Consumer Lifestyles.
Threats
Competition from Private Labels.
Price Competition among Branded Manufacturers.
39
40
41
CHAPTER 3:
RESEARCH METHODOLOGY
DESCRIPTIVE RESEARCH:
The objective of such a study is to answer the who, what, when, where and
how of the subject under investigation, descriptive studies are well structured
and tend to be rigid.
CASUAL RESEARCH
A casual research investigates is cause and effect relationship between two or
more variables. The casual research design is based on reason along
The research design used in this project is a DESCRIPTIVE DESIGN.
DATA COLLECTION
Research will be based on two sources:
PRIMARY DATA
Primary data is that kind of data which is collected by the investigator
herself for the purpose of specific study. The data such collected is original in
character. The advantage of third method collection is the authenticity.
SECONDARY DATA
43
When an investigator uses the data that has been collected by others is
called secondary data. The secondary data could be collected from journals,
reports and various publications. The advantages of secondary data can be
economical, both in the term of money and time spent.
In my project work I have used both primary and secondary sources of data.
Primary sources in the form of questionnaire and secondary sources were
various internet sites like Google.com, Wikipedia.org and many more with the
past records of the company and also visited various libraries for collection of
the introduction part.
Questionnaire Formulation
Marketing researchers have the best instrument in collecting primary data
i.e. a questionnaire to collect the data and to establish the view of the
people from all the sectors of the society.
Questions should be:
Clear
Easy to understand
Directed towards meeting an objective.
Must maintain impartiality and be very careful with personal data. Two basic
types of questions are:
Open ended
Closed ended
The questionnaire designed for this project contains closed-ended
questions. All the questions are clearly defined. All the questions are clearly
defined. The questions are framed keeping in mind the objective of research
and kind of information required.
Findings
The findings of the project are
Research Design
:
Descriptive
44
Data Source
Research approach
Survey method
Research instrument
Questionnaire
Type of questions
Closed ended
Sample Size
Collection
Sample Area
Time
:
:
:
100 samples
Convenient sampling
Asansol
31 days
SAMPLE TECHNIQUE
The sampling designs are mainly of two type non-probability and probability
sample designs.
RANDOM SAMPLING
SYSTEMATIC SAMPLING
In this method first a sampling fraction is calculated as N/n where N is the total
no. of units in the population and n is the size of sample.
Cluster sampling implies that instead of selecting individual units from the
population entire groups or clusters are selected random.
45
QUOTA SAMPLING
Quota sampling involves the fixation of certain quotas, which are to be
fulfilled by the interviewers, since quota sampling is not based on random
selection it is not possible to calculate estimates of certain errors for the
sample result.
JUDGEMENTAL SAMPLING
Sample Size
100
Method Used
Survey Method
Chapter 4
FINDINGS AND ANALYSIS
46
TOTAL
NUMBER
OF
WORKING
AND
NON WORKNG
RESPONDENTS
43%
57%
WORKING
NOT WORKING
47
Interpretation:
The above pie diagram indicates that out of the total 100 respondents surveyed,
43% are working and the remaining 57% are not working and are mostly
students.
30%
USE
70%
DONT USE
Interpretation:
48
Out of the total 43 working respondents surveyed, only 30% of them dont use
any of the Garnier products, the remaining 70% of the working respondents use
Garnier products. This indicates that the brand is popular amongst the working
people. The respondents so surveyed were well aware about the brand and were
also aware about almost all the product lines being offered by Garnier, be it in
skin care or hair care. This result indicates that Garnier has a well defined target
market catering mainly to upper middle class consumers which is mainly why
the working respondents are frequent users of different products of Garnier.
16%
USE
84%
DONT USE
Interpretation:
49
Out of the 57 non working respondents surveyed, about 84% of the respondents
use Garnier products which means about 47 out of 57 people use Garnier
products and 16% of the respondents dont use any of the Garnier products.
This again indicates that the brand is popular among even the non working
respondents who are majorly students in our survey.
The inference that can be drawn from the above two pie charts is that
irrespective of whether the consumers are working or are students, the brand has
a good popularity. This means that the brand has successfully caters to the needs
of the youth as well as people falling in the age bracket of 35 to 55.
PREFERENCE
FOR
HAIR
CARE
AMONG
WORKING
RESPONDENTS
4%
17%
skin care
hair care
78%
both
Interpretation:
50
Out of the 43 people who are working, about 29 of them use Garnier products
and out of these 29 people, only 4% of the respondents use only skin care
products and 18% of them use only hair care products while a major chunk of
78% of the respondents use both skin care and hair care products of Garnier.
This indicates that the customers are regular and loyal users of almost all the
product lines of Garnier.
28%
47%
skin
hair
25%
both
Interpretation:
Out of the 57 non working respondents, about 36 of them use Garnier products.
Out of these 36 respondents, 25% use only Garnier hair care products, 28% of
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them use Garnier skin care products and 47% of them use both hair care and
skin care products of Garnier. This again indicates that majority of people like
both the segments of Garnier but unlike the working consumers the non
working consumers prefer Garnier skin care products over its hair care products.
9%
22%
fortnightly
monthly
3months
70%
Interpretation:
Out of the 29 people using Garnier products, 9% of the respondents purchase
Garnier products fortnightly, 69% of the respondents purchase the products on a
52
monthly basis and 22% of them purchase the products once in three months.
This indicates that a majority of respondents are frequent users of Garnier
products. This also indicates that there is easy availability of Garnier products at
almost all retail outlets.
6% 3%
fortnightly
33%
monthly
3months
weekly
58%
Interpretation:
Out of the 36 respondents who use Garner products, only 3% purchase the
products fortnightly, about 6% purchase the products weekly, 33% of them
purchase the products once in three months and a majority of 58% of the
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customers purchase the products on a monthly basis. The result of this data is
very much similar to that of the working respondents.
This indicates that the buying pattern of customers is more or less the same
irrespective of their occupation.
40
35
30
25
not working
20
working
15
10
5
0
every store
selective stores
nt available
Interpretation:
The above data gives a combined interpretation for both working and non
working respondents that out of 29 working respondents, 10 feel that Garner
products are easily available at every store while 19 feel that they are available
only at selective stores and out of 36 non working respondents, 16 respondents
feel that the products are readily available at all stores, 19 feel that the products
54
are available only at selective stores and only 1 respondent felt that the products
are not easily available at all.
The combined interpretation of this result indicates that the distribution network
of Garnier is not very strong which leads to the unavailability of Garnier
products quite often. Hence there is not much easy accessibility to Garnier
products in general be it skin care or hair care.
100%
80%
60%
40%
20%
0%
20
15
WORKING
15
14
NOT WORKING
Interpretation:
The graph states that out of 29 working respondents, 15 feel that Garnier
products are slightly overpriced and about 14 feel that the products are perfectly
priced while none of the working respondents feel that the products are highly
overpriced. In case of the 36 non working respondents, 20 feel that Garnier
products are slightly overpriced while 15 feel that the products are perfectly
priced.
55
35
30
25
20
15
10
5
WORKING
NOT WORKING
Interpretation:
Out of the 29 working people surveyed, about 5 found garnier products highly
satisfactory and a majority of 24 found the products satisfactory while none of
the working respondents found them below satisfaction levels. While out of the
36 no working respondents surveyed, 2 respondents found the products highly
satisfactory and a majority of 33 people found them satisfactory. Only 1 person
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out of the non working respondents found the products below satisfaction
levels.
The common interpretation out of this result can be that a majority of customers
find Garnier products satisfactory which leaves some scope for improvement in
the quality of products being offered by Garnier so that it can attract more
customers thereby expanding the existing customer base.
USAGE PURPOSE
Purpose Of Usage
2
Cosmetic Use
Medical Use
75
Interpretation:
Out of the 100 people surveyed, 77 people use Garnier products. Out of these 77
people only 2 answered that they use the product for medical purpose, while a
majority of 75 people answered that they use the products for cosmetic purpose.
57
Therefore those people who use Garnier products, 97% use them for cosmetic
purpose, while a very small percentage of 3% use it for medical purpose. It is
very clear from this data that people prefer Garnier products for cosmetic use
only.
PRODUCTS USAGE
28
Body Lotion
49
14
Moisturiser
63
73
75
23
Fairness Cream
54
Non-User
Anti-Ageing Cream
3
20
Hair Color
Acne Removal Cream
Facewash
74
57
69
39
38
57
User
20%
40%
20
60%
80%
100%
Interpretation:
Out of the 100 people surveyed, 77 answered that they use Garnier products.
The chart above depicts the usage of different products by these 77 people.
58
AWARENESS
Awareness
80
70
60
50
40
74
Awareness
30
20
10
21
20
Interpretation:
Out of the 100 people surveyed, 77 answered that they use Garnier products. We
gathered information through our survey that how a respondent came to know
about Garnier products. 74 respondents answered that they came to know about
59
1; 5% 3; 14%
Price
Not Effective
4; 18%
14; 64%
Unawareness
Interpretation:
Out of the 22 respondents who do not use the Garnier products, 14 people
(64%) are happy with their current brand and have not tried Garnier yet, rest 4
people (18%) do not find Garnier products effective, the other 3 people (14%)
finds the price of the garnier products as the main reason for not using it. Thus
60
if Garnier needs to make the customers use their products for once and be able
to stand on their expectations.
Findings
70% of the total working respondents use Garnier products.
84% of the total non working respondents use Garnier product.
78% of the working respondents users use both hair and skin care
products, whereas 18% uses only hair care products by Garnier and 4%
only skin care products.
In non working respondents 47% uses both skin and hair care products by
Garnier, 25% only hair care and 28% skin care products.
Among the non users of the Garnier products 64% are happy with their
current brand, 18% find Garnier products ineffective and 14% people find
the price of the products a major concern.
TV is the most popular source of information and awareness regarding
Garnier products.
Shampoos & Conditioner are the most popular Garnier products.
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Only 40% of the users said that garnier products are available at every
store.
82% of the Garnier users are satisfied with the products.
Chapter 5
LIMITATION
62
63
Chapter 6
RECOMMENDATION
64
RECOMMENDATION
It needs to improve the availability network of the product so as to reach
a large customer base because 60% of the respondents feel that it is
available at selective Stores only
Almost 64% people are happy with their current brand and do not want to
switch to Garnier products thus it needs to make the customers aware of
the products.
Garnier need to adopt different promotional mediums like internet,
magazines, product binding schemes and even surrogative marketing.
Introducing a low price product line for the rural market.
Make the consumers aware of all the products other than its flagship
products like shampoo, conditioner, hair color, and face wash etc.
65
Improve upon online sales service in tier 1 and tier 2 cities taking the time
constraint of the customers in the picture.
It is still considered as a product for youth so it needs to target the people
in the age group of 35 and above.
As boys are also becoming looks conscious so the male beauty segment
can be one area of focus.
Introduce herbal product lines as the customer is getting more inclined
towards herbal products.
Chapter 7 - CONCLUSION
66
CONCLUSION
The present study comes to the floor with the revelations having exciting and
full of curiosity determinants in relation to the specified objectives to
understand and analyze the 4P aspects of marketing for Garnier. Further the
study helped in identifying the reasons which stops the customers to buy
Garnier Products over other products and to understand customer Brand
knowledge with regard to Garnier. As the study has been conducted, in the
context of Indian customers (where interviewed customers are from Asansol
only), the investigation perspectives have been thrown, conditioning the
specified motives of Indian people, putting aside the motives outside India. The
research conducted was also helpful in identifying the frequency of purchase
and usage of the Garnier products.
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Chapter 8
BIBLIOGRAPHY
68
BIBLIOGRAPHY
Principles of Marketing, Philip Kotler & Gary Armstrong, 11th edition,
Prentice Hall of India Private Limites, New Delhi, 2006
Marketing Management, A south Asian Perspective, Philip Kotler, Kevin
Lane Keller, Abraham Koshy, Mithileshwar Jha, 13th Edition, Pearson Prentice
Hall, 2009
Marketing Management, Planning, Implementation and control, Global
Perspective Indian Context, V S Ramaswamy & S Namakumari, 3rd Edition,
Macmillan India Limited, New Delhi, 2007
Marketing Managemnet, Rajan Saxena, 3rd Edition, Tata McGraw Hill
Publishing Company Limited, New Delhi, 2006
69
Websites:
www.google.co.in
www.garnier.in
www.loreal.co.in
www.loreal.com
www.wikipedia.org
www.facebook.com/garnier.aspx
ANNEXURE
70
QUESTIONNAIRE
RESPONDENT PROFILE
Area of Residence:
Age
Gender
: Male____
Female____
c) 25000-50000
d) Above 50000
Weekly
Fortnightly
Monthly
Once in 3 months
71
Yes
No
Highly satisfactory
Satisfactory
Not satisfactory.
6. Why do you prefer Garnier Hair care products:
Quality
Brand image
Price
Status quo
7. The variant of Garnier hair care that you use is available at:
Every store.
Selective stores.
Not available in your area.
The price you pay for the Garnier hair care products is:
Highly overpriced
Slightly overpriced
Perfectly priced
Under priced
9. Your purpose for purchasing Garnier hair care products is for:
Cosmetics Use ____
Medical Use ____
Both
____
8.
IF NO,
10. You have not used Garnier hair care because of:
a)
b)
c)
d)
e)
Price
Effectiveness
Availability
Unaware of the product
Any other reason__________
a) Panteen
b) Sunsilk
c) Fiama Di Wills
d) Head &Shoulders
e) Dove
f) Clinic All Clear
g) Others (Please specify) __________
72