Garnier Full Case

Project Report [pic] Acknowledgement An Old Chinese proverb says: When eating your bamboo sprouts, remember the men who planted them. Now that my sprouts are ready to eat, it is time for me to express my deepest gratitude to all those who have made this possible.

We wish to express our sincere gratitude to ………….. who guided us and helped us from time to time to successfully conduct this research. We think her direction was the best thing that could happen to us and our project. We hope you enjoy reading the report as much as we enjoyed making it. TABLE OF CONTENTS 1.

We Will Write a Custom Case Study Specifically
For You For Only $13.90/page!

order now

Project Objective …………………………………………………………. 5 2.L’Oreal Introduction ……………………………………………………… 6 3. Introduction to Garnier ……………………………………………. …….

.. 9 3. 1 Company Review 10 4. Hair care market analysis……………………………………………….

…. 11 4. 1 Evaluation of shampoo in India 12 4.

2 Current scenario of shampoo market 14 5. Skin care industry in India………………………………………………… 16 6.

Study of 4P’S of Garnier…………………………………………………..

18 6. 1 Hair care products 18 6. Skin care products 22 3. Natural ingredients of Garnier 24 7. Promotion …. …………………………………………………………….

.. 26 7. 1 Relying on International Campaigning 28 2. Promotion Strategy 32 8. Price ……………………………………………………………………….

35 9. Place ……………………………………………………………………….

. 38 10. Analysis of Indian market ……………………………………………


. 39 11.SWOT Analysis ………………………………………………………….. 40 12. Data Analysis ………………………………………………………….

41-54 13. Conclusion …………………………………………………………….. 55 14. Recommendation ……………………………………………………… 56 15.

Questionnaire———————————————————————— 57-59 16. Reference ……………………………………………………………… 60 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 product’s 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 in the region of study i. e.Greater Noida and Noida.

After having done this study we were able to identify the pricing strategies followed by L’Oreal 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 skin care and 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’Oreal.

In 2000 L’Oreal 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’Oreal’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.

PROJECT OBJECTIVE: • The objective of our project is to comprehensively research on one of the most successful sub-brands of L’Oreal- GARNIER. • Within Garnier, we have incurred a study on the hair care product range of Garnier that is Garnier Fructis and Ultra Doux. We have essentially focused on shampoos and conditioners. • Our research has been aimed at understanding the market share of Garnier within the L’Oreal brand and among other brands. Also we have captured the market capabilities of Garnier hair care shampoos and conditioners. We have researched on the brand perception of the product by the customers and customer loyalty towards the product.

• We have also stressed on the four P’s of marketing in relation to this product and the marketing strategies that have been adopted by L’Oreal, essentially Garnier from time to time. • The stress however has been on the PRODUCT out of all the four P’s and on the consumer behavior and their perception towards the brand. • We have also focused on the current leading competitors of L’Oreal-Garnier and conducted a brief study on their marketing strategies. L’OREAL – INTRODUCTIONL’Oreal was founded in the year 1909 by Eugene Schueller, a French chemist who developed an innovative hair color formula. Today, the L’Oreal Group is the world’s largest cosmetics and beauty company and is headquartered in the Paris suburb of Clichy, France.

It got its start from the hair color business but soon it developed activities in the field of cosmetics, concentrating on skin care, sun protection, make up, perfumes and hair care. L’Oreal is active in the dermatological and pharmaceutical fields. It is also the top nanotechnology patent-holder in the United States.L’Oreal is a listed company, but the founder’s daughter Liliane Bettencourt who is one of the richest people in the world, and the Swiss food company Nestle each control over a quarter of the shares and voting rights. L’Oreal famous advertising slogan is “Because I’m worth it”.

It has recently been replaced by “Because you’re worth it”. Its portfolio of brands includes the cosmetics range of L’Oreal Paris and Maybelline NY, shampoo range Garnier, luxury products such as Lancome and active cosmetics such as Vichy. Its closest global competitor in the premium make-up segment is Revlon.India’s contribution to the growth of the global cosmetics market is about 60 percent. The beauty and the wellness sector in India are on a boom.

L’Oreal started its operations in India thirteen years ago. The share of the Indian market to L’Oreal’s turnover of 15. 8 billion is small, but is growing. It operates in India through its wholly owned subsidiary, L’Oreal India and has four divisions — consumer products, professional products, active cosmetics and luxury products. The biggest contributor to its revenue in India is the consumer products division led by its strongest brand in terms of sales – Garnier.

L’Oreal India has recently setup its own manufacturing plant in Pune. It imports most of its products from its facilities abroad and manufactures the rest in Pune. The Indian subsidiary headed by Chief Operating Officer Dinesh Dayal, who has been with the company for 20 years, is one of the key officials responsible for the formation and operations of L’Oreal India. The operations in India are conducted through a judicial mix of global and local methods of advertising to appeal to the Indian consumers. In India, the L’Oreal advertising account is handled by Mccann Erickson.

L’Oreal India has discovered over the years, the behavior of the Indian consumers and has realized that the Indian consumer is not as price conscious as is portrayed. The brand is more expensive than the average FMCG, but offers a true value for money. The company’s growth in India can be attributed to its innovation of new products, supply chain management, systems and structure. Being the world’s second largest cosmetics major, L’Oreal is planning to foray into the Rs 1,000-crore Indian herbal and ayurvedic cosmetics industry.After identifying its targets, L’Oreal 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. L’Oreal has thus identified India as one of its top five growing businesses globally. L’Oreal’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. L’Oreal’s innovations are patented, creating some 586 patents in 2004 alone.

L’Oreal’s methodologies for evaluating the safety and efficacy of ingredients and finished products, product evaluation and claim substantiation are recognized by the international scientific community. L’Oreal products are the result of the following research, development and evaluation process: 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.L’Oreal 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 industry’s standards. 3. In addition, L’Oreal 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 L’Oreal products. GARNIER- AN EXTENSIVE RESEARCH ON A L’OREAL SUB-BRAND |L’Oreal operates in India through four main divisions: consumer products, professional products, active cosmetics and luxury | |products. The biggest contributor to its revenue in India is the consumer products division led by its strongest brand in terms | |of sales — Garnier.In the hair color segment, Garnier 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 colorants and dyes.

Garnier attributes its performance to being | |the first player in India to introduce a cream-based hair color below the price of Rs 100 (2002) and the first home-highlighting| |kit (2005). | Garnier mainly produces hair care products, including the Fructis line, and most recently, skin care products under the name, Nutritioniste, that are sold around the world.One of their key ingredients is a fruit concentrate used in all their products. It is a combination of fruit acids, vitamin B3, B6, fructose and glucose. Garnier, the L’Oreal-owned brand that shook up the US hair care market with the introduction of Fructis in 2003, now has plans to bring over its skin care collection too.

While L’Oreal was focusing on hair color market in the initial stages of its launch, Maybelline was in the premium color cosmetic segment while Garnier in the “naturals” segment. In 2000 L’Oreal launched its range of cosmetics in to Indian market.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 believes in beauty through nature.

Scientifically developed and enriched with selected natural ingredients, its products help look healthy and feel good every day. Garnier, L’Oreal and Maybelline, the three brands of L’Oreal 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. COMPANY REVIEW- 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 customer’s specific needs using the company’s long expertise in hair care, hair color and skin care.To be sure Garnier products guarantee maximum effectiveness in total harmony with the customer’s 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.

HAIR CARE INDUSTRY IN INDIA- MARKET ANALYSIS The hair care market in India is valued at $200 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 occasionally to look beautiful. Today, they have become the way of life. Today, if there are more brands in he Indian market, it’s 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.

That’s 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.Figure 1 [pic] 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 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 90’s 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. 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 world’s 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. 50 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. • Today HLL has a 63 % market share in the shampoo market. In South India, Clinic Plus and Clinic All Clear put together have a market share of about 70 % • While toilet soaps have reached saturation, there is immense potential for penetration of shampoos into Indian households. • According to NCAER, Shampoo penetration is expected to grow from 314 thousand households in 1998-99, to 506 per thousand households in 2008-09. CURRENT SCENARIO OF SHAMPOO MARKET Shampoos are a significant segment of the hair care industry and they mainly cater to the middle class, the upper middle class, teenagers and now the upper class rural consumers.

The penetration of shampoo market in India is just about 15% out of which the penetration in the urban market is 40% and in the rural market, it is 10%. There are broadly three basic segments in the shampoo market in India. These are: • Cosmetics • Anti-Dandruff • Herbal The top three brands in the Normal shampoo range are Clinic Plus, Sunsilk and Chik while in Herbal shampoo range, the top three brands are Ayush, Dabur 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, L’Oreal 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.

It is restricted to the super 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. • Brand loyalties in shampoo are not very strong.

Consumers frequently look for a change, particularly in fragrance. • Consumers attribute lathering to the act of cleaning. • Major expectations from the product are improvement in texture and manageability, giving softness and bounce to hair, curing and avoiding damage to the hair. • An Indian needs more shampoo for a proper wash ( average 6 ml ) compared to 4 ml needed in Western countries as most Indian women have long hair • Most consumers do not use shampoo daily. Regular users would need smaller quantity of shampoo per bath. Hair tends to collect more dust due to dusty environment and oiling habits.

• Southern market is predominantly a sachet market, accounting for 70 % of sachet volumes. • In Contrast, shampoo bottles are more popular in the Northern markets. • About 50 % of the shampoo bottles are sold in the Northern region alone. • In the North, local brands such as Ayur have strong equities and these products being low priced dilute sachet’s USP of low price. With changing times, this particular market segment is also improving at a fast pace.

The main challenge therefore in front of marketers is to increase the 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.SKIN CARE INDUSTRY IN INDIA- MARKET ANALYSIS The skin care market is valued at $180 million in India. With safe and effective procedures, advancement in medical technology, increase in awareness, the Indian Skin care solutions business is growing very fast.

The skin care market can be segregated into toners, cleansers, sunscreens, anti-wrinkle creams, dark circle removing creams, astringents, facial creams, moisturizers, fairness creams, day and night creams, etc. Out of these, facial creams, moisturizers, fairness creams, day and night creams, etc. re the most popular products and account for approximately 60% of the skin care segment. The skin care market is at a primary stage in India. The penetration level for both the urban and rural market is low.

Many people still prefer to use homemade and traditional products to cure the skin problems. However, within a period of five-six years, the use of skin care products has increased significantly in India. With changing life styles, increase in disposable incomes, greater product choice and availability, and influence of satellite television, more people are taking interest in personal grooming.The facial skin care market is booming. Products are competing with one another to take shelf space in the retail stores.

Facial skin care products have become an essential part of the beauty market. Like western countries, creams and potions are applied in India also, in an effort to remove the pimples and the acne, fight stress and worry lines, and to remain young. Since the penetration level is still relatively low, growth is expected to be around 25% over the next five years.Some of the major players in this segment are Hindustan Lever (Fair & Lovely, Lakme, Ponds) with a market share of 53%, followed by CavinKare- Fairever with a market share of over12 % and Godrej-Fair Glow with a market share of 3. 4 %.

The other players that have a presence in the market are Emami (Gold Turmeric and Naturally Fair), Revlon (Fair & Glow). GARNIER TESTING POLICIES: All products are the result of rigorous research and development and benefit from the expertise of our multi-disciplinary scientists & research staff.Their discoveries are frequently published in leading scientific journals and have resulted in several patents. Garnier uses methodologies recognized by the international scientific community as part of its products’ development process which assess their safety and effectiveness. Stages of research, development and evaluation at Garnier: • STAGE I: Garnier products benefits from scientific and customer research gathered from several research centers and evaluation centers around the world.

• STAGE II: Independent clinical studies to assess the effectiveness and safety of our products.They can be done under dermatological or Ophtalmological control. • STAGE III: Consumer studies verify product effectiveness and consumer satisfaction rates before the product is launched. • STAGE IV: Once products are launched; customer satisfaction surveys are also carried out. These involve interviewing a statistically significant number of people who have bought and used the products for several weeks. This information helps us to monitor levels of satisfaction and we use this type of customer feedback to evaluate and improve our products on an ongoing basis.

STUDY OF 4 P’S OF GARNIER HAIR CARE PRODUCTS • Garnier Fructis Daily Care [pic][pic][pic][pic][pic][pic][pic][pic][pic][pic] 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. • Garnier Fructis Color Shield pic][pic][pic][pic] [pic][pic] Garnier Fructis Color Shield is fortified with UV protectant and Reinforced Active Fruit Concentrate – an innovative combination of vitamins B3 and B6, fructose and glucose. Specially created to care for color-treated or highlighted hair, it penetrates inside the hair to moisturize and strengthen it.

With UV protectant, the formula helps keep your color-treated hair brilliant and shiny on the outside. Hair is up to 5x stronger, up to 5x smoother and so much shinier, so color looks brilliant longer. • Garnier Fructis Moisture Works pic][pic] [pic][pic][pic][pic][pic][pic][pic] 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 [pic][pic][pic][pic][pic][pic] [pic][pic][pic][pic][pic][pic] 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 Micro-Oils – 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: Long-lasting frizz control for hair that’s incredibly sleek, even with moisture in the air. • Garnier Fructis Length & Strength [pic][pic][pic][pic][pic][pic] 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-grow-long hair, this system reinforces hair, protecting it from breakage and split ends.

• Garnier Fructis Anti-Dandruff [pic][pic][pic][pic] 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 Strength & Repair [pic][pic][pic][pic][pic][pic][pic][pic][pic][pic] 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.

SKIN CARE PRODUCTS | |[pic] |Garnier Pure Anti-blemish Products  | | |Garnier Pure Anti-blemish – Garnier Pore purifying Astringent, Garnier Pure Pimple Control Pen, | | |Garnier Pure Exfoliating Face Wash, Garnier Pure Deep Clean Gel Face Wash, Garnier Pure Daily | | |Treatment Cream. | | |[pic] |Garnier Light Fairness Anti-Marks Products  | | |Garnier Light Fairness Anti-Marks Products – Garnier Fairness Face Wash, Garnier Fairness | | |Wipe-off Lotion, Dark Spots Prevention moisturizer, Garnier Anti-marks & Fairness concentrate, | | |Garnier Total Comfort Nourishing + Anti-tightening cold cream, Garnier Light Matte Mattifying | | |Fairness Cream, Garnier Light Under Eye Dark Circle Lightening Cream. | | | | | | |Garnier Essential Cleansers Products  | | Garnier Essential Cleansers – Garnier Gentle Face Wash, Garnier Gentle Cleansing Milk, Fresh Clean feel Face Wash. | |[pic] | | | | | |[pic] |Garnier Essential Care Products  | | | Garnier Essential Care – Garnier Daily Moisturizing Lotion, GarnierDaily Moisturizing Cream, | | |Garnier Replenishing Night Cream, Garnier Eye Contour Gel. | | | | | | | |Garnier Sun Control Products  | | | | Garnier Sun Control – Garnier Daily Moisturizer, Daily moisturizer SPF 15 / UVA +, Daily moisturizer SPF 20 / UVA. |[pic] | | | | | | | |Garnier Wrinkle Lift Anti-ageing Products  | |Garnier Body cocoon Body Moisturizers  | | | |[pic] | |[pic] | | | | | | Garnier Wrinkle Lift Anti-ageing- Garnier Anti ageing Cream.

|  | |Garnier Bodycocoon Body Moisturisers – Intense Moisture Lotion. | | | | | | NATURAL INGREDIENTS OF GARNIER: FRUCTOSE AND GLUCOSE: Fructose is also known as fruit sugar because it is abundantly found in fruits. It is generally associated with Glucose. They are a part of the class of Carbohydrates, which represent an important source of energy for all living organisms. The role of Fructose and Glucose in nourishing hair was demonstrated by in vitro culture of hair follicles.Fructose and Glucose are fuel for hair.

FRUIT AHA’s: 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 plant’s 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. GRAPE SEED OIL: Fragrant fruit oil concentrate that starts nourishing while one colors his/her hair. VITAMINS B3 AND B6: These vitamins are organic compounds which are vital for cellular life: they actively participate in metabolic reactions. Vitamin B6 can be found in various fruits including avocado, grapes, pineapple and peaches. Vitamin B3 can also be found in fruit; apricots, bananas, lemons, figs, pears.

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. 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 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. What is unique about the concept is that where brands or brand ideas are exchanged within communities, they are idea-led, not advertising-led. There are some high-profile viral success stories.

Like Hotmail.By simply sending an e-mail, consumers hawked the service because every message contained a Hotmail ad that helped it grow to 12 million accounts in its first year, way back in 1996. The 1999-hit film ‘The Blair Witch Project’ also benefited from a similar contagion. On web sites and in chat rooms, the film’s promoters hinted that the fictional tale was really a documentary and let the bug run wild. In most cases, the consumers were bitten.

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 reation 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.Companies need to be very strategic in presenting the product and its features to attract another segment. At the same time, companies need to be sensitive about the impact of targeting other segments on the existing target segment. It may be damaging, especially, if in a process of expanding its customer base, a premier brand is targeted at the aspiring middle-class also.

In case of any signals of lowering demand with the existing target group, companies should adopt line extensions by bringing suitable changes in the products. 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.Relying on international ad campaigns: Increasing its ad spend for the launch of its new products, L’Oreal has been relying more on its international campaigns to make an impact in the Indian market. McCann Erickson in Mumbai handles the L’Oreal and Maybelline account while Publicis India is in charge of Garnier. “The ad accounts have been aligned according to our international affiliations with these agencies and we try to have a mix of both the Indian and international ads,” says Mr. Rajgopal.

L’Oreal India currently has three brands in its consumer products portfolio and there are product overlaps between its hair care, skin care and color cosmetics brands.Garnier, L’Oreal and Maybelline have been defined by their price segments and positioning. |L’Oreal Group and Godrej Consumer Products dominate Spends on Hair Dyes in Television Advertising | | | | | | | |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. |  | | Figure 2 | |[pic] | | | |  | | | | | | | | | | | | | |Let’s look at the top players in the Hair Dyes category.

L’Oreal 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 L’Oreal getting the top slot | |with nearly 38% share of the advertising pie whereas Godrej Consumer Products gets 33% share of advertising. At the 3rd place we have| |Hygienic Research (although the margin between the 2nd and 3rd position is large) with nearly 18% share of advertising followed by | |Henna Export Corporation and Cavin Care Ltd with 5. 5% and 3. 8% shares of advertising respectively.

|  | | Figure 3 | |[pic] | | | |  | | | | | |Moving on to the Top Brands in this category-it’s once again flooded by L’Oreal Group & Godrej Consumer Products. Garnier Color | |Naturals (L’Oreal) is in the top position whereas its other product – Nutrisse Hair Color Mask and L’Oreal 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.

| |  | | Figure 4 | |[pic] | | | Promotional StrategyThe cosmetics giant is using hairdressing schools to stimulate demand for products many Indians saw as an alien extravagance. Above a bank in north Bombay, India’s 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 L’Oreal’s 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 India’s 1.

1 billion people they are not only alien but also an extravagance. The solution for L’Oreal, the world’s 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 junior in one of the select but growing number of international-standard salons in India’s big cities. L’Oreal’s distribution network also plays a vital role.

Over the past decade the company has trained more than 30,000 hairdressers in India in the use of its products. And it has helped to establish about 300 salons in the past five years. The theory is simple: If there is no natural demand for your goods, stimulate it. “We have created a profession and a market,” Didier Villanueva, L’Oreal India’s country manager, said. “If you train people they will use your products. ” The students, who pay 200,000 rupees (? 2,440) each, are green to say the least.

Most who come do not know how to hold scissors or use a blow dryer,” Caroline Lannuzel, academy director, said. Competition is strong with more than 50 applications for 15 places. Sohini Rohra, 24, a former model, got in. “People did not know what a bad haircut was. My mother’s generation did not have a clue because there was no exposure to these things,” she said.

In a media-driven culture obsessed with Bollywood, urban consumers are very demanding and image is everything. They read glossy magazines such as Vogue, which launched an Indian edition in September, and follow the changing fashions of their favourite celebrities. Much like Britain’s tabloid fascination with DavidBeckham’s changing hairstyles, the recent decision by Mahendra Singh Dhoni, the 26-year-old captain of the one-day cricket team and the face of Brylcreem in India, to chop his long locks made front-page news. Unprecedented economic growth in India, which is forecast by Mckinsey to become the world’s fifth-biggest consuming nation by 2025, has created a raft of opportunities for international lifestyle brands.

Emerging markets such as India are driving the growth of the cosmetics industry. L’Oreal, which uses Aishwarya Rai, the Bollywood star and former Miss World, as one of its international faces, estimates there are 70 million potential consumers being created every year. Its sales in India, where it is No 2 behind Unilever, are growing at 35 per cent a year. This year, they are about €100 million (? 71 million).Although L’Oreal’s professional products division represents only 17 per cent of total revenues, hair color was the Paris-based group’s genesis and remains the creative heart of the business.

Money-spinning mass-market brands such as Garnier are being pushed hard in India, where the company estimates there is a market of 50 million people. Its rivals agree. Franck Provost, the beauty salon group, also has a hairdressing academy in Bombay and Toni & Guy opened a salon this year. Two thirds of the population is under 35: youth will drive growth. In the L’Oreal academy, it has at least two new potential customers.

L’Oreal hopes that very soon it will be because they think they’re worth it.In India, advertisements for L’Oreal-branded products and the company’s Garnier line generally feature a pale model and focus on the ingredients in the product, using take-action language like “YES to fairer and younger looking skin” or “Against inside cell damages. ” 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 product’s 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.

” Considering the company has set up its manufacturing facilities in Pune and has also been sub-contracting its products, it has been easier for it to control its prices in the Indian market. 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’s innovations always start from its luxury brands then penetrate to the brands in different price level and different markets eventually implemented in its consumer brands. The innovations based on the same technology platform will reduce the cost.

The knack for L’Oreal to create the advantages is to spread around strategic investment by sharing the production of innovation between different product divisions. L’Oreal not only focuses on the single brand but also pays attention to the technology relevancy in the series of brands. For example, L’Oreal first introduced a break through anti-aging composite by using Lancome brand. Subsequently, it was implemented in Vichy brand and brought into the consumer product division eventually.The broad distribution channel of consumer products was used to promote this technology at last. In term of same products in the different market, L’Oreal also exerts the technology platform to meet the specific needs of consumers.

From L’Oreal’s experiences, the core technology platform is a key component to the success of an international company with complicated brand house. Without leveraging the resources between brands, it will cause increase of operational cost and waste of resources and will be very hard to manage the L’Oreal’s sophisticated brand architecture. Other than building the brand structure according to the product identity, L’Oreal relied on distribution channel to carry out its strategy of brand structure.There are four product departments in L’Oreal’s structure. Every department has several brands and each brand has many names. They are conspicuously different in packages and with distinct image and advertising.

The different brands share the resources of distribution channel and have high integration effect on management. The luxury brands of L’Oreal are sold in strictly selected distribution channel like department store, perfumeries and tax free shop. Professional products are provided to the hairdressers. Active cosmetic products are sold in pharmacists. The most important sector consumer products are distributed through mass consumption channel like department store and supermarket.

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’Oreal’s whole distribution channel by integrating its original channel. The dissemination of brand will improve company’s overall influential power. 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’Oreal’s 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. Firms that aim to expand internationally or strengthen market position tend to acquire new brand into the brand architecture. Acquiring influential and well positioned brand is an important strategy of L’Oreal in developing its brand architecture. It achieves rapid growth by acquiring brand in same or related business and is continually seeking these opportunities in the worldwide scope.

L’Oreal expanded its brand architecture by acquiring Maybelline brand in 1996, which was a very successful transaction. The Maybelline’s image was enhanced by branded L’Oreal while L’Oreal got complementary in its brand architecture.Recent years in Asia, it acquired the third skincare brand Mininurse in China and Japanese top luxury brand Shu Uemura. These acquisitions represent L’Oreal’s ambition to Asian market. They have the same product business with L’Oreal.

In China the acquisition will enhance L’OrealA’s market position in skincare and acquire distribution channels Mininurse had. It is also a preparation for the future expansion in the most fast-growing market China. By acquiring Shu Uemura, L’Oreal want to use this Japanese brand to compete with SK-…? which was a competitor in the same level, in order to meet the trend of prevalence of Japanese cosmetic brand in Asia.This is considered to be an effective and cost-efficient strategy which is consistent with L’Oreal’s overall brand architecture PLACE To run a company in profit the place factor out of the 4p’s 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.

L’Oreal 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 corporation’s 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 L’Oreal 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, L’Oreal 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 (L’Oreal 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. L’Oreal’s success in the cosmetic industry is due not only to their high quality, but also to the corporation’s 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 L’Oreal has acquired many different companies like “The Body Shop International plc”, known as The Body Shop, which has over 2,000 stores in more than 50 countries.ANALYSIS OF INDIAN MARKET Garnier being an important brand of L’Oreal in both hair care and skin care is available all round the globe easily.

In Indian market the hair care products of garnier like “garnier fructis”, “ultra doux” etc is available in both organised and unorganized retail shops in India. The high end skin care products like “Nutritionsite” are available only in selected retail outlets in country. In India Garnier manufactures its products in Pune whereas it’s registered office is in Mumbai. To popularize its product line L’Oreal has occupied brand corners in many big malls and retail outlets in which garnier products get a major chunk.L’Oreal has tie ups with many big beauty salons and parlors who can promote and sell its products. Over the past decade the company has trained more than 30,000 hairdressers in India in the use of its products.

And it has helped to establish about 300 salons in the past five years. The theory is simple: If there is no natural demand for your goods, stimulate it. “We have created a profession and a market,” Didier Villanueva, L’Oreal India’s country manager, said. “If you train people they will use your products. ” Its sales in India, where it is No 2 behind Unilever, are growing at 35 per cent a year.

This year, they are about €100 million (? 71 million).Although L’Oreal’s professional products division represents only 17 per cent of total revenues, hair color was the Paris-based group’s genesis and remains the creative heart of the business. Money-spinning mass-market brands such as Garnier are being pushed hard in India, where the company estimates there is a market of 50 million. Garnier products are easily available for sale on many websites in India. SWOT ANALYSIS OF GARNIER PRODUCTS Strengths ? Strong and Focused Brand Portfolio. ? Presence in Emerging Markets.

? Strong R Capability. ? Variants available. ? Geographical Coverage. Weaknesses ? Dependence on Western European Markets ? Late Entry into Asian markets. Unable to gain much of market share. Opportunities ? M Opportunities. ? Growth in Adjacent Categories. ? Demand for Natural Cosmetics. ? Growth of Direct Sales Channels ? Changing Consumer Lifestyles. ? Rural market growth. ? Beauty products market growing with a significant rate. Threats ? Competition from Private Labels. ? Price Competition among Branded Manufacturers. DATA ANALYSIS TOTAL NUMBER OF WORKING AND NON WORKNG RESPONDENTS Figure 5 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. GARNIER USAGE AMONG WORKING RESPONDENTS Figure 6 [pic]Out of the total 43 working respondents surveyed, only 30% of them don’t 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. GARNIER USAGE AMONG NON WORKING RESPONDENTS Figure 7 [pic]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 don’t 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 SKIN CARE OR HAIR CARE AMONG WORKING RESPONDENTS Figure 8 [pic] 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. PREFERENCE OF SKIN CARE OR HAIR CARE PRODUCTS AMONG NON WORKING RESPONDENTS Figure 9 [pic] 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 them use Garnier skin care products and 47% of them use both hair care and skin care products of Garn