Garnier Fructis - Innovation

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L’Oreal Garnier Fructis Oil+Shampoo

Introduction:
L’Oreal, the French cosmetic giant has become one of the leading players in the salon products sector in India. It marks its presence with a portfolio of 15 brands that grew over the span of nearly two decades in the Indian market, having an annual growth rate of 30 percent with a market share of 10 percent in the urban area. These different brands were launched in order to cover various product categories. “The mass consumer brands L’Oreal Paris, Garnier and Maybelline New York; luxury brands Yves Saint Laurent, Kiehl’s, Ralph Lauren, Giorgio Armani, Diesel and Lancôme; professional brands L’Oréal Professionnel, Matrix, Kérastase and Kéraskin Esthetics and pharmacy brands Vichy and La Roche-Posay.” (premiumbeautynews.com, 2012). With almost 750,000 points of sale in both the traditional network as well as in the modern supermarket network, the brand Garnier has successfully become the leading multi-category beauty brand in India. Launched in 1991, this global brand understood the dynamics of the Indian market and was able to craft a special place for itself. Even though Garnier is positioned as a premium, nature-based and innovative brand, it is priced reasonably targeting at both, the upper and middle socio-economic classes. Worldwide, L’Oreal is famous for its product innovation and this trait is strongly portrayed in Garnier through its continuous new product launches. This also creates excitement amongst the consumers to try out the new innovative personal care products, leading to brand loyalty. Garnier has two sub-brands – Garnier Fructis and Garnier Ultra Doux. Garnier Fructis almost immediately created a very strong bond with the consumers since it was positioned as a fruit based brand. The Indian consumer is happier using natural based products compared to the chemical based ones. Under this brand, a revolutionary product was launched in the year 2010; Garnier Fructis Oil+Shampoo that took the hair care market by storm. In this report, L’Oreal’s innovation and new product development models are explained in respect to their Garnier Fructis Oil+Shampoo product. Innovation Model:

According to L’Oreal India’s chief operating officer, Mr. Dinesh Dayal, for this kind of success, the most essential factor is to yield the right kind of innovation, which was achieved through a blend of aggressive market research, intuition and the power of their global R&D. Along with the three main drivers of innovation for L’Oreal, i.e. active ingredients, formulation and evaluation; research has always been the main crux for the company’s growth. When it comes to creating cosmetic products, science is the main driver of innovation. An advanced research for discovering new active ingredients is conducted, where scientific knowledge about skin and hair around the world is gathered, after which formulation systems are developed and adapted by various brands including Garnier around the world. For the Fructis Oil+Shampoo launch in the Indian market, the product is formulated using three oils as its key active ingredients, i.e. Olive oil for deep nourishment of the roots, Avocado oil for nourishment of the hair fiber and making it supple and Shea oil for softening the surface. Once the formulation has been complete, the transition from the molecule to finished product is done after demonstrating the products’ safety and whether it is scientifically effective. But rather than focusing entirely on scientific research, L’Oreal believes in research that listens to consumers. They aim to nurture innovation through a constant dialog between science and marketing. Thus, in order to discover and disseminate beauty habits of international consumers, the “International Department of Studies and Consumer Insights” was created. Garnier realized that in India, in order to nourish their hair, women extensively believed in the beauty ritual of oiling their hair, followed by a scalp massage and...
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