3cs for P&Gs Herbal Essences Proposed Hair Oil Range

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Marketing Phase I
3 Cs of Marketing for Situation Analysis:
Customer :
The Indian hair oil market comprises over 50 % (approximately ₹6664 crores) of the hair care market (approximately ₹13000 crores). In addition to ‘champi’ being a part of the Indian culture since time immemorial, the recent rise in hair damage due to lifestyle, environmental changes and styling and hair colouring has led to increased consciousness among urban population. This has led to a healthy double digit growth in this market for the last 5 years: 20% rate of CAGR growth by value and 12.5% rate of CAGR growth by volume). Light hair oils comprising around 15% of the hair oil market (approximately ₹950 crores) which tend to be non-sticky have reported consistent increase of about 10% over the last 5 years. The market is concentrated in the urban areas due to comparatively high cost, consciousness of the urban population and their willingness to try new products. Scented hair oils seem to be preferred in this category. •Company :

The core strengths of P&G are consumer understanding, innovation, brand building, go to market capabilities and scale. One of the things P&G does absolutely brilliantly—it's a company hallmark—is to start with the customer, to understand the customer's relationship with that category, its products, and the way they're purchased. It understands how products are used, how they appear in the store, and what those products mean to customers' lives and their psyche. When it acquired Clairol thereby acquiring the Herbal Essences brand, an almost 35 year old mass market hair care brand for women was in a long term decline phase. To revive it, differentiation was necessary. P&G successfully identified women of Generation Y as the new target. This was primarily because, at that time there was hardly any brand that catered to their needs well. Hence it went all out to create a vibrant brand with attention to detail and the brand began to grow again, with sales growth...
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