Garnier: Hairdressing and Hair

Topics: Hairdressing, Marketing, Hair care Pages: 46 (12905 words) Published: October 14, 2012
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'Oréal.

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'Oréal'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. IMPORTANCE OF STUDY

Shampoo is personal hygiene product that is very essential in our daily needs. It feeds consumers’ physiological needs as it cleans the hair and provides other additional benefits such as conditioning, reducing dandruff, moisturizing, nourishing and etc. it is a multi-million ringgit industry that contributes largely in the annual GNP (Gross National Product) and GDP (Gross Domestic Product).

There are countless brands in the market and only the famous ones are those that we usually hear of. What about local brands? Usually, consumers purchase by recognizing the brand and sometimes ignore the fact about quality and price. Imported shampoos dominate the market and the aim of the research is to research on what are the factors that influences consumers’ behavior and on a smaller scale, consumers’ purchasing pattern and behavior.

Local shampoo brands includes Shurah, Fair & Lovely, TLC (Tender, Loving, Care) and so forth. Examples of imported shampoos such as Schwarzkopf, Redken, Pantene, Tracia, L’ Oreal are those we usually hear of because of its intensive advertising and popular brand name. These imported shampoos have terrorized the local market scene and not many consumers can actually differentiate between local and imported ones.

Shampoo is an industry that contributes annual income in millions of ringgit. Therefore, it is crucial to investigate the reason consumers prefer certain types or brands of shampoo compared to others. The problem that arises is that consumers nowadays just simply cannot differentiate between imported shampoo brands and local brands. For those who are able to identify the difference, these consumers are using it based on its brand-name and thus do not put other important criteria into consideration.

There are also consumers who...
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