Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ON
MARKETING MIX OF
GARNIER
OF THE REQUIREMENT
By:
AISHWARYA AGGARWAL
Enrollment No. 00390201716
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SRI GURU TEGH BAHADUR INSTITUTE OF
MANAGEMENT &INFORMATION TECHNOLOGY
(2016-2019)
DECLARATION
I hereby declare that the project work entitled minor project report on marketing
mix of Garnier submitted to the Guru Gobind Singh Indraprastha University is
record of an original work done by me under the guidance of Ms. Amanpreet K.
Luthra, faculty member, Sri Guru Tegh Bahadur Institute of Management &
Information Technology.
...........................................
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CERTIFICATE
Signature of Director
….……………………………….....
…...…………………………………
Signature of Guide
......………………………………
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ACKNOWLEDGEMENT
I am also greatly thankful to the faculty members of our institute who co-operated
with me and gave me their valuable time. Acknowledgement
……………………………..
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INDEX
Table of content
2 Garnier introduction
2.1 Company profile
2.2 International campaigning
2.3 Analysis of Indian market
2.4 Hair care market analysis
3 Marketing mix (general)
3.1 Definition
3.2 Components of marketing
mix
3.3 Packaging
3.4 The expanded marketing
mix
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3.5 Importance of marketing
mix
3.6 Product life cycle
3.7 SWOT analysis
4 Research methodology
4.1 Objectives of the study
4.2 Data collection method
4.3 Limitations
5 Marketing mix of garnier
5.1 4 P’s of garnier
5.2 Skin care products
5.3 Hair care products
5.4 PLC of garnier
5.5 Promotional strategy
6.3 Packaging
5.6 SWOT analysis of garnier
products
5.7 Competitors
6 Findings
6.1 Conclusion
6.2 Suggestions
6.3 References
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LIST OF FIGURES
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CHAPTER 1
There is a considerable rise in disposable incomes over the past decade. The growth
in global economies, changing lifestyles, rising demands of skin and sun
care products due to varying climatic conditions encourages the growth of the
market for cosmetics. A shift of preference towards natural and organic beauty
products, particularly in U.S. and European countries, fosters the growth of the
cosmetics market. Rising demand for natural, herbal and organic beauty products
creates potential opportunities for manufacturers to innovate and develop new
products in accordance to consumer preferences.
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Top factors impacting Global cosmetics market
FIG: 1.1
Changing lifestyles
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During recession 2007-2009, there was an overall global rise in GDP and
economies across various regions. Presently, increasing GDPs of various countries
is positively affecting the global cosmetics market. Continuous rise in GDP has
improved the economies of various countries and has raised the spending
capabilities of individuals. Rising disposable income levels of the individuals
across various regions is driving them to buy personal luxury goods, which, in turn,
is positively influencing the global market growth.
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Top winning strategies in world cosmetics market
FIG: 1.2
Segment overview
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Geographically, the global cosmetics market is bifurcated into North America,
Europe, Asia-Pacific and LAMEA.
Market segmentation
FIG: 1.3
Various categories of cosmetics and their current market trends are elaborated in
this section. Categories of cosmetics discussed in this report include skin and sun
care products, hair care products, deodorants, makeup and color cosmetics and
fragrances.
Skin care category is one of the most technically advanced, complex and diverse
categories of cosmetics. Products manufactured by the companies have to undergo
many dermatological tests before they are introduced for final use in the market.
Presently, product manufacturers are using new technologies such as nanogold and
nanosome technology or nano particles for manufacturing skin care products.
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Below mentioned figure shows the global percentage share of the different skin
care categories in 2013.
By Category
By Distribution Channel
Retail Sales
General departmental store
Supermarkets
Drug stores
Brand outline
Online Sales
By Gender
Men
Women
By Geography
North America
Europe
Asia-Pacific
LAMEA
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CHAPTER 2
GARNIER INTRODUCTION
G a r n i e r wa s f o u n d e d i n t h e ye a r 1 9 0 9 b y E u g e n e S c h u l e r , a
F r e n c h c h e mi s t w h o d e v e l o p e d a n i n n o v a t i v e h a i r c o l o r f o r mu l a .
T o d a y, t h e Garnier 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 theh a i r c o l o r b u s i n e s s b u t s o o n i t d e v e l o p e d a c t i v i t i
e s i n t h e f i e l d o f cosmetics, concentrating
on skincare, sun protection, and make up, perfume sand 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 Nestlé each control over a quarter
of the shares and voting rights. Garnier 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 c o s me t i c s r a n g e o f L' O r e a l P a r i s a n d
M a yb e l l i n e NY , s h a mp o o r a n g e Garnier, luxury products such as
Lancôme and active cosmetics such as Vichy. Its closest global
competitor in the premium make-up segment is Revlon.
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The share of the Indian market to L'Oreal's turnover of 15.8 billion is small, but
it’s growing.
I t o p e r a t e s i n I n d i a t h r o u g h i t s w h o l l y o wn e d s u b s i d i a r y, Garnier
India and has four divisions —
Consumer products, professional products, active cosmetics and luxury product
s. The biggest contributor to its revenue in India is the consumer products division
led by its strongest brand in terms of sales - Garnier.
Garnier is a mass market cosmetics brand of French cosmetics company L’Oreal. It
produces hair care and skin care products.
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COMPANY PROFILE:
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COMPETITORS
The company is creating a new in the market place and therefore faces competition
from a variety of companies. There are currently lots of head to head competitors.
The exiting competition can make more consumers focused. Before launching and
new product good knowledge about its competitors are very crucial. Because it
very necessary to know about competitors all the things like product quality, price ,
packaging, brand image of that product, marketing strategy that competitors are
using. A new product success is depending upon all the thing about competitors
mentioned top is play the very important role to success new product. The
competitors of Garnier face wash is given below:
HIMALYA FACE WASH
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DOVE FACE WASH
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INTERNATIONAL CAMPAIGNING
Sharing the photo on social media on March 8, Garnier wrote: "We are
strong, we are ambitious, and we are awesome (and into double denim!) We
are women."
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And although their message was one of celebrating womanhood, users were
quick to accuse the hair and beauty giant of using a visibly exclusive kind of
feminism to promote their brand.
"You do realise international women's day is about ALL women?? Not just
the white able bodied women you are promoting here?" one user wrote. "It's
not realistic? Make your feminism intersectional," they added.
Garnier has since responded to the backlash, explaining the rationale behind
the shoot: "These brilliant women have been chosen to represent Garnier
based on their values.
"Who they are, what they believe in... not what they look like. That said, we
do really appreciate all feedback and take it on board. Stay tuned."
Garnier UK has come under fire for a lack of diversity in race, age and
ability of the models used in its new campaign.
In a further statement, it said: “We acknowledge that this image does not
represent every community and background, but we feel it features a
selection of women who are inspiring the next generation. We know that we
have a broad range of consumers of different ethnicities from all over the UK
and we work with a range of spokespeople from different backgrounds to try
to represent them, not just those featured in the image.
“Our social media channels give us a direct link to our consumers and we
value any feedback we receive – in this instance we have taken the
comments on board and want to thank our consumers for raising their voices
on an issue they care strongly about.”
The Garnier shampoo range is quite diverse with shampoos specifically for normal,
dry hair, dry damaged and stressed out hair, wavy hair and of course colour last.
The first four shampoo hair types though come in a green bottle, with the colour
last being the only one in a red bottle. This probably reflects the fact that people
with non-highlighted hair might use any of the first four hair types and people with
highlighted hair mainly use the colour last. So Garnier product for the later market
segment is uniquely coloured to be easily identified amongst the others as people
colour their hair green but may colour their hair red (colour of bottle) or any other
colour. The fragrance of this product is quite unique and fragrance has been shown
to be an influencing factor on a product decision. Choice magazine has evaluated
the fragrances of various shampoos; Garnier Frutics Fortifying Shampoo was rated
highest, having a 70% fragrance score (Browne, 2006). This is another aspect of
the product which has helped differentiate Garnier product. 1.2 Current pricing
the shampoo market is highly competitive with many suppliers in the market, at
varying pricing levels. Consumers have the option to purchase low, middle and
high priced shampoos, with Garnier Frutics sitting around the middle to high price
range. A recent visit to Coles, Karawara saw a 250ml bottle of Garnier Colour last
priced at $5.34 ($2.14 p/100ml). Two interesting points of note on this are that
most shampoos come in 400ml bottles, indicating that Garnier may be undertaking
the marketing ploy of offering a decreased product size in this product to appear
less expensive, as well as decreasing consumers ability to make direct price
comparisons with other products. The second point is that the 400ml bottle of
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Garnier Colour last was priced at $8.99 ($2.25 p/100ml), which is actually slightly
more expensive per 100ml than the smaller bottle. As most consumers would
expect buying the larger bottle would be cheaper this is another example of
underhand marketing tactics by Garnier.
A l l p r o d u c t s a r e t h e r e s u l t o f r i g o r o u s r e s e a r c h a n d d e v e l o p me n t
a n d benefit from the expertise of our multi-
disciplinary scientists & researchs t a f f . Th e i r d i s c o v e r i e s a r e f r e q u e n t l y p
u b l i s h e d i n l e a d i n g s c i e n t i f i c journals and have resulted in several
patents.G a r n i e r u s e s me t h o d o l o g i e s r e c o g n i z e d b y t h e i n t e r n a t i o n a l
s c i e n t i f i c community as part of its products' development process which assess
their safety and effectiveness.
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ONLINE PRESENCE:
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CHAPTER 3
DEFINITION
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COMPONENTS OF MARKETING MIX
Various elements of marketing-mix are interrelated and independent.
Features of product determine its price, but the price customer can pay also
determines the product features. The choice of channels is determined by the
nature of product and its price. Elements of marketing-mix are:
Product - Product-mix involves planning, developing and producing the right
types of the products and services to be marketed by the firm. It deals with the
product range, durability and other qualities. Apart from producing the right
products, emphasis should also be laid on their branding, packaging, color and
other features. Product planning and development involves decision about (i)
quality of the product (ii) size of the product (iii) design of the product (iv)
volume of production (v) packaging (vi) warranties and after sales services (viii)
product testing (ix) product range etc.
Price – It is one of the most difficult tasks of the marketing manager to fix the
right price. The marketing manager has to do a lot of exercise to determine the
price. He should determine the price in such a way that the firm is able to sell its
products successfully. Pricing also involves establishing policies regarding
credit and discount. The variables that vitally influence pricing are: demand of
the product in question, its cost, and the buying capacity of various kinds of
customers, actual and potential completion, and government regulation.
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Pricing decision and policies have direct influence on the sales volume and profits
of the firm. Price therefore is an important element of the marketing mix. Right
price can be determined through pricing research and by adopting test marketing
techniques.
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Most promotional campaigns comprise a combination of two or more promotional
methods as no single method of promotion is effective alone. This situation has
arisen because of large scale competition and widening of market. When two or
more methods of promotion are combined in a single promotional campaign,
management faces a difficult task of most effective promotion inputs and
optimizing the expenditure on each. There is no ideal promotional mix that fix for
all situation. Factor like nature of product, nature of customer, stage of demand and
promotional budget influence the inputs that should be taken into consideration
while devising a promotional plan.
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THE FIFTH P: PACKAGING
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controllable part of any service organization, the uncontrollable being the
actual service part because it is qualitative in nature.
PROCESS. It refers to the process by which customer is served with a
desired product. The process of delivery becomes important in a service
organization. It includes the procedures, mechanisms and routines which
remain within the organization. The decision in service process covers
technology, specific equipments, location, layout etc. Effective marketing
must communicate with the customer through right processes so that
customer convenience is of utmost importance. Thus, we see that marketing
of services requires an expanded marketing-mix comprising the product,
price, place, promotion and the people, physical evidence, and process. The
marketer has to be more careful in selecting the right marketing-mix strategy
in case of marketing of services to satisfy the customer requirements.
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the price of a product depends upon its features and branding, packaging etc.
The media of advertisement will depend upon its features. The channels of
distribution will also depend upon the nature, utility etc. of the product.
Marketing mix signifies that its four elements are inter-related. Decisions or
changes in one element usually affect decisions or changes in the other.
Thus, product features, price, promotion and distribution of the product are
all determined in an integrated manner.
Marketing-mix facilities meeting the requirements of different types of
customers. Product design, pricing, promotion and distribution will depend
upon the needs and purchasing power of the customers. If the requirements
of customers change, the marketing-mix will also be changed to satisfy their
requirements.
Products have a limited life and thus every product has a life cycle.
Product sales pass through distinct stages, each posing different challenges,
opportunities, and problems to the seller.
Products require different marketing, financing, manufacturing, purchasing,
and human resource strategies in each life cycle stage.
Once the product is designed and put into the market, the offering should be
managed efficiently for the buyers to get value from it. Before entering into any
market complete analysis is carried out by the industry for both external and
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internal factors including the laws and regulations, environment, economics,
cultural values and market needs. Product life cycle is guanine concept and this
term ‘product life cycle’ is associated with every product that exists, however, due
to a limited shelf life the product has to expire. From the business perspective, as a
good business, the product needs to be sold before it finishes its life. In terms of
profitability, expiry may jolt the overall profitability of the business therefore there
are few strategies, which are practiced to ensure that the product is sold within the
defined period of maturity.
GOALS
The goals of product life cycle management (PLM) are to reduce time to market,
improve product quality, reduce prototyping costs, identify potential sales
opportunities and revenue contributions, and reduce environmental impacts at end-
of-life. To create successful new products the company must understand its
customers, markets and competitors. Product Lifecycle Management (PLM)
integrates people, data, processes and business systems. It provides product
information for companies and their extended supply chain enterprise. PLM
solutions help organizations overcome the increased complexity and engineering
challenges of developing new products for the global competitive markets.
STAGES
Introduction stage
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are a few customers at this stage, means low sales volume. So,
during introductory stage company’s profits shows a negative figure because
of huge cost but low sales volume. At introduction stage, the company core
focus is on establishing a market and arising demand for the product. So, the
impact on marketing mix is as follows:
Product
Branding, Quality level and intellectual property and protections are
obtained to stimulate consumers for the entire product category.
Product is under more consideration, as first impression is the last
impression.
Price
High(skim) pricing is used for making high profits with intention to
cover initial cost in a short period and low pricing is used to penetrate
and gain the market share. company choice of pricing strategy depends
on their goals.
Place
Distribution at this stage is usually selective and scattered.
Promotion
At introductory stage, promotion is done with intention to build brand
awareness. Samples/trials are provided that is fruitful in attracting
early adopters and potential customers. Promotional programs are
more essential in this phase. It is as much important as to produce the
product because it positions the product.
Growth Stage
In this stage, company’s sales and profits starts increasing and competition
also begin to increase. The product becomes well recognized at this stage and
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some of the buyers repeat the purchase patterns. During this stage, firms
focus on brand preference and gaining market share. It is market acceptance
stage. But due to competition, company invest more in advertisement to
convince customers so profits may decline near the end of growth stage.
Product
Along with maintaining the existing quality, new features and
improvements in product quality may be done. All this is done to
compete and maintain the market share.
Price
Price is maintained or may increase as company gets high demand at
low competition or it may be reduced to grasp more customers.
Distribution
Distribution becomes more significant with the increase demand and
acceptability of product. More channels are added for intensive
distribution in order to meet increasing demand. On the other hand
resellers start getting interested in the product, so trade discounts are
also minimal.
Promotion
At growth stage, promotion is increased. When acceptability of
product increases, more efforts are made for brand preference and
loyalty.
Maturity stage
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competitors with the same products. So, companies defend the market share
and extending product life cycle, rather than making the profits, By offering
sales promotions to encourage retailer to give more shelf space to the product
than that of competitors. At this stage usually loyal customers make
purchases.
Product
At maturity stage, companies add features and modify the product in
order to compete in market and differentiate the product from
competition. At this stage, it is best way to get dominance over
competitors and increase market share.
Price
Because of intense competition, at maturity stage, price is reduced in
order to compete. It attracts the price conscious segment and retain the
customers.
Distribution
New channels are added to face intense competition and incentives are
offered to retailers to get shelf preference over competitors.
Promotion
Promotion is done in order to create product differentiation and
loyalty. Incentives are also offered to attract more customers.
Decline stage
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declines. It may also be due technical obsolescence or customer taste has
been changed.
Maintain the product, Reduce cost and finding new uses of product.
Harvest the product by reducing marketing cost and continue offering
the product to loyal niche until zero profit.
Discontinue the product when there’s no profit or a successor is
available. Selling out to competitors who want to keep the product.
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Adding new features: Adding value to the product catches the attention of
many buyers.
Packaging: New, attractive, useful or eco-friendly packaging influences the
target customers.
Changing customer consumption habits: Promoting new trends of
consumption can increase the number of customers.
Special promotions: Raising interest by offering Jackpot and other offers.
Heightening interest: Many of the following things attract many customers
who match certain profiles: Eco-friendly production processes, good work
conditions, funding the efforts of non-profit organizations (cancer cure, anti-
war efforts, refugees, GLTBI, environment and animal protection, etc.) and
the like.
SWOT ANALYSIS
Introduction
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Strengths
Weaknesses
Opportunities
Böhm suggests that external and attractive elements which give hints on
expected prosperity of a business enterprise are its opportunities. These
positive elements can be detected by way of identifying the attractive factors
that a business can benefit from in the market. In addition, external factors
for any form of growth in the market are part of opportunities.
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Threats
In Böhm’s, threats are external factors that an enterprise has no control over,
which have the negative ability of putting the business or its strategic plans
at risk of failure. The only benefit that threats offer businesses is the fact that
success can be realized by responding to threats with effective problem-
solving and planning. Threats are seen as the strong competitors in the
market and are factors that reduce the profits of a business. Further, the
introduction of new goods or services that tend to make the products of a
business less popular in the market can be treated as a threat.
Conclusion
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CHAPTER 4
RESEARCH METHODOLOGY
COLLECTION METHOD
PRIMARY DATA
SECONDARY DATA
PRIMARY DATA
It is gathered for the first time by the researchers. If the secondary data is found to
be inadequate or unavailable, the researcher goes for primary data.
SECONDARY DATA
Secondary data is the data borrowed from secondary sources by the researcher.
Secondary data can be internal or external i.e., internal records of the company or
information available from library and other statistical organization.
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OBJECTIVES OF THE STUDY PRIME OBJECTIVES
LIMITATIONS
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CHAPTER 5
4 P’S OF GARNIER:
Garnier is one of the oldest cosmetics and skin care companies in the world. It is a
mass market brand of L’Oreal. Its skin care and hair care products are fall in the
category of luxurious products in India, Japan, China and few other Asian
countries. Garnier was ranked amongst the trusted brands in India as per the Brand
Trust report. It is second largest brand of L’Oreal group and has its presence almost
everywhere in the world catering the needs of men as well as women and provides
the best skin and hair care solutions to its customers. Garnier is one of the brands in
the cosmetics market with highest brand loyalty shown by its customers. Marketing
Mix of Garnier analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the business & marketing strategies of Garnier.
Product Mix:
Garnier consists of three types of products i.e. skin care, hair care and hair colours.
But there after to hold its position in the market Garnier has developed its product
width. Garnier has enriched product line under skin care such as Gentle, Pure
Active. The entire portfolio needs to be covered as a part of its marketing mix
product strategy. Garnier offers its products depending upon the demographic
needs of the customers that include products for fairness, cleansing, anti-ageing,
moisturizer etc. In hair care it offers hair care items such as Shampoo, conditioners
in different sizes of stock keeping units. Although these products are targeting for
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the women, Garnier also offers wide range of products for men that Fairness cream,
Lip balm, Face wash which is anti-pollution and insta-whitening product. Garnier
offers products catering to needs of almost every skin amongst both the genders.
Recently Garnier launched another new innovative product in Indian market.
Garnier shampoo + oil 2 in 1. This is something that Indian customers have never
seen before. And a product which Indian consumer find little difficult to believe.
Skin care is utmost important for those who wish to get clear, beautiful and radiant
skin. We use a lot of products to keep the skin in good state. Garnier has some great
skin care products like face washes, moisturisers, body lotions, face scrubs etc. So,
here we have compile a list of best Garnier face care and body care products
available in India with their respective prices.
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If you wish to make the skin whiter by a couple of shades then obviously you
will be searching for a good skin whitening cream. This is a night skin
whitening cream from Garnier white complete that rejuvenate the skin and
makes it fairer. It also reduces the dark spots. This night cream from Garnier
costs 185 rupees for 40 g.
2. Garnier Men Power Light Intensive Fairness Moisturizer SPF 15
Men with oily skin can easily use a skin moisturizer than the heavy creams.
This Garnier fairness moisturizer is dedicated to men with SPF 15. SPF 15
protects the skin from sun’s harsh rays. This gives a brightening effect to the
men’s tough skin as this is enriched with lemon extracts which removes the
dark spots and dead skin cells. This power light men’s fairness moisturizer is
for 180 rupees.
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3. Garnier Acno Fight 6 in1 Pimple Clearing Face Wash
Pimples can be a beauty concern for men as well. This Acno fight face wash
is formulated to get rid of painful red pimples and with continuous usage this
also lightens marks on the face. This is for 145 rupees for a 100 g tube pack.
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4. Garnier Wrinkle Lift Anti-Ageing Cream
Garnier wrinkle Anti aging cream is formulated to give a smooth and tighter
looking skin. The price of this anti aging cream is very inexpensive which
makes this affordable for everyone. This anti aging cream costs only 135
rupees. Garnier wrinkle lift is formulated with cherries, ginger and bilberry
extracts that increases the cell renewal rate and makes the skin appear firmer.
Girls and boys who wish to get fairness, then this face wash can be tried.
This has a thick texture which deep cleanses the skin and also scrubs off the
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dead skin cells. This face wash gives an instant brighter look on the face and
is ideal for teenagers. This facial cleanser from Garnier white complete costs
140 rupees for 10 g. The pure lemon essence will boost the skin whitening
and radiance.
Neem is an anti bacterial ingredient that purifies your skin. This clears the
dirt and pollutants sitting on the skin which can also cause the blackheads,
whiteheads and pimples. This is also really effective in removing the dark
spots and blemishes on the face.
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7. Garnier Care Daily Moisturizing Cream
A daily moisturizing cream is important. At times your skin need just the
moisturization like in winters dry skin feels dry and scaly the at that time a
moisturizing daily cream is suitable. This Garnier cream is a great nourishing
moisturizing cream for everyday use. This comes with the goodness of
almond oil. This is priced at 140 rupees.
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10. Garnier Skin Naturals Body Cocoon Intense Moisture Lotion
The Garnier Skin Naturals Body Cocoon gives a smoothness and extreme
hydration to the dry skin that need nourishment on a deeper level. This is
ideal for normal to dry skin and costs 180 rupees for 250 ml.
This Garnier Body Cocoon lotion has the blend of nutrients from Apricots,
Olives, Blackcurrant and nourishing Avocado oil
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GARNIER FRUCTIS KIDS:
Now, Garnier is all set to cover the entire shampoo market with the launch of
Garnier Kids Shampoo in the Indian market.
The launch of Garnier Frutics kid's shampoo is expected to revive the kid's
personal care category in India. The kid's hair care market is dominated by
HUL's Clinic Plus brand and the other players being Parachute Starz. But
recently the activities in this category have been minimal.
The early years also taught L’Oreal that me-too products or those with
superficial tweaks will not work in India. A global halo does not impress the
value-conscious Indian. L’Oreal got its biggest breakthrough when it
rethought hair colours for the Indian market in 2002. Its Garnier Nutrisse had
failed to strike a chord with the consumers (and L’Oreal Excellence was
positioned at the higher end of the price spectrum.) That was when it
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launched Garnier Colour Naturals which came in a Rs 99 hair-colouring kit
with blacks and browns.
Godrej had had a free run in the market till then with its Rs -7 pack of
powder dyes.
Indian women are touch-up specialists because of their long, parted hair.
Grey roots show more often; as a result they need to re-apply colour at the
roots while not colouring the entire length of their hair. The habit made
existing small packs meant for Westerners with short hair expensive and
inadequate.
L’Oreal’s research team created a cream colorant that could be priced well
below premium, spread uniformly and calibrated for touch-up doses. They
knew we were still priced more than the leader but they wanted the consumer
to try them first.
What helped was that L’Oreal had trained a large number of hairdressers in
India — more than 50,000 on last count — in the country. To drive trials for
Garnier Colour Naturals, its teams went beyond the salons in metros. “The
category was still small then. They wanted consumers not only to eye the
low price but also the features of the product. Education, then, was very
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important. They even went to the single-seat barber shops one finds in small
towns to train them in everything about hair and the product.
It has helped to establish about 300 salons in the past five
y e a r s . T h e t h e o r y i s 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.”
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PRODUCT LIFE CYCLE OF GARNIER
Business Opportunity and Idea: Garnier launched its range of Men’s face
cream following the suits of early entrants like Emani, HUL and Nivea. After
recognizing the need for an exclusive range of products that would react nicely
to the texture of male skin. Garnier, after launching Fairness face wash and oil
control fairness cream during the early days (2008-09), recognized the need for
a face wash that would contain the contents of oil control fairness cream and a
face wash. During the research period, they found the consumers feel uneasy
with the dry skins impelled by the usage of face wash. To counter that effect,
Garnier planned to launch a product which enriches the skin with cooling Cryo-
Menthol and oil absorbing mineral clay which cleans the skin, leaving it fresh
and oil free all day long in the year 2011.
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Introduction: During this period, L’OREAL introduced this product to the
consumers through commercial platform by frequent advertisements with John
Abraham becoming the brand ambassador from India. Initially the sales were
low as it was just launched in a new segment and regular promotion was
necessary for the face wash consumers to drive their taste from a normal men’s
face wash to more segmented face wash which extracts extra oil from skin. The
distribution was restricted to some major cities, just to view the response of the
consumers to the product.
Growth Stage: By the time product entered this stage, it was already accepted
by a lot of early adopters. They diversified the distribution channels to various
other cities to capture more users. By this period, a lot of other competitors like
Nivea, Ponds, VLCC observed the growth in this segment and launched a
product similar to Garnier but with different ingredients and advertising in the
best possible way. Garnier recognized the competition to be cut throat and came
up with more advertisements and promoted the product in all possible space.
The advertisement attached is two years old. During the last five seconds of the
advertisement, it says “best face wash used by most of the men”. This was
necessary to reassure the consumers that the product used by them is being used
by almost all the youth and it is the best in the segment.
Maturity stage: Garnier lies between the growth and maturity stage. With
Nivea launching its “All in one” face wash, captured the consumer attention.
During this stage the sales will stay maintained where it was in the growth stage.
Only thing a brand should take care is of that the consumer should not lose
interest off the product and should maintain the number of users it already has.
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It should try to be in Growth maturity or stable maturity than in decline maturity
phase. To reduce the costs, no new distribution channels should be opened and
product should start withdrawing from sectors having low sales to reduce its
cost.
Decline stage: During this stage the sales reduces, maybe because of variable
consumer taste or due to the launch of some other domestic or international
product. The sales might go low or might even diminish as low as nil. The only
way in which product can make money is by reducing the price. Again an
effective Brand crisis management will be required. According to Kotler, the
strategy could be by “Harvesting” or “Divesting”. In harvesting strategy, it
should reduce its business cost by maintaining sales for the loyal consumers. It
should reduce its advertisements costs and should move out without letting the
consumer and competitor coming to know about it. In Divesting strategy, it
should try to sell its product to some firm or try to liquidate the product.
Price:
The target segment for any product is that homogenous group of people
which is purported to be the most potential customer for the product.
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 will be able to tide over the steep pricing of its products.
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Garnier sets competitive pricing against its rival brands. The base of the
marketing mix pricing strategy of Garnier is competition offering,
demand for a product and type of product.
Since the brand has developed variety of products the pricing varies from
product to product serving its consumers belonging to varied financial
statuses.
Garnier sets premium prices for its high end products targeted for upper
middle and rich class of its consumers which makes its niche market for
Garnier. It also provides seasonal promotional discounts through online
sale through regular intervals. This helps in the penetration in the across
the markets resulting in the volume business.
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Place:
Garnier has its presence in large number of countries mainly in India, China
and other Asian countries. It sells its products through chain of supermarkets,
cosmetic stores, medical stores and online stores. Brand follows usual
distribution system starting from manufacturer to whole seller to retailer.
Garnier products are available in almost every retailer across the country
from where consumers can easily buy the product. High demand for
cosmetics in the modern world has led Garnier hold its position in the
market. This covers the distribution strategy in the marketing mix of Garnier.
Garnier also rewrote its fate in India. India was very different from servicing
a thousand departmental stores that we do in other countries. But Garnier
were quick to bring in different strategies, including one for kirana stores as
well.
If one compares their market shares with the share of shelves in urban stores,
it is evident L’Oreal spends a lot on retail display.
It introduced a lot new concepts at the store level. Garnier reps were the first
to roam about in the aisles of modern stores to include trials, even before
Hindustan Unilever did that with Lakme.
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Promotion:
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Off the internet, viral marketing has been referred to as ‘word of mouth’,
‘creating a buzz’, ‘leveraging the media’ and even ‘network marketing’. It is
deceptively simple concept.
Create a message and 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 this
concept is that where brands or brand ideas are exchanged within
communities, they are idea-led, not advertising-led.
When Garnier launched its frutics shampoo, they latched on to the idea. The
firm had to introduce the aspect of five times stronger hair and 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 frutics 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 76000 consumers created their own knot on
the braid and forwarded the link to more than 82000 of their friends, a survey
report indicated. Viral marketers practice delayed gratification. They may not
profit, or tomorrow, but if they can generate a ground shell of interest from
something free, they know they will profit soon and for the rest lives.
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and young girls. This is very evident from Garnier ads be it for Garnier
frutics shampoo or for hair colour.
Moreover, its loyal customers are its biggest sources of promotion who
create awareness and publicity about its products through word of mouth.
Garnier spends huge quantum budget over TV and internet advertisements
which employing professional models. It also runs a YouTube channel which
circulates the promotional videos and campaigns of the company to its
viewers across the world. Garnier promotes itself through print media
including newspapers and popular magazines like Femina. To attract the
attention of trendy and young generation it also engaged Bollywood celebrity
Kareena Kapoor in its advertisements in India. Hence, this concludes the
Garnier marketing mix.
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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, 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 v e r y p a r t i c u l a r a b ou t t h e i r h a i r t he s e d a ys ,” s a i d
R u c h i Kh a t e r , f r o m 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 colour
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 prefe
r h o m e r e me d i e s r e c o mme n d e d b y t h e i r mo t h e r s . M o s t s t i l l u s e h a
i r o i l - 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 g r a d u a t e d .
The six month course turns out professionals capable of
Working as a junior in one of the select but growi
n g n u m b e r o f international-standard salons in India’s big cities.
L ’ O r e a l ’s d i s t r i bu t i o n n e t wo r k a l s o p l a ys a v i t a l r o l e .
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O v e r t h e p a s t d e c a d e t h e c o mp a n y h a s t r a i n e d mo r e t h a n 3 0 ,0 0 0
h a i r d r e s s e r s i n 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 I n d i a ’s c o u n t r y
ma n a g e r , s a i d . “I f yo u t r a i n p e o p le t h e y w i l l u s e yo u r 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 R o h r a , 2 4 , a f o r m e r m o d e l , g o t i n .
“ P e o p l e d i d n o t k n o w w h a t a b a d 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
consumersa r e v e r y d e m a n d i n g a n d i m a g e i s e v e r y t h i n g . T h
ey read glossymagazines such as Vogue, which launche
d a n I n d i a n e d i t i o n i n September, and follow the changing
f a s h i o n s o f t h e i r f a v o u r i t e celebrities.
Much like Britain’s tabloid fascination with David Beckham’s changing
hairstyles, the recent decision by Mahendra Singh Dhoni, the 26-year-oldcaptain
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 McKinseyto become the world’s fifth-biggest consuming nation by
2025, has created raft of opportunities for international lifestyle brands. Emerging
markets such as India are driving the growth of the cosmetics i n d u s t r y.
L ’ O r e a l , wh i c h u s e s Ai s h wa r ya R a i , t h e B o l l ywo o d s t a r a n d former
Miss World, as one of its international faces, estimates there are 70million potential
consumers being created every year. Its sales in India, where it is No 2 behind
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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 17p e r c e n t o f
total revenues, hair c o l ou r wa s the Paris-based
g r o u p ’s g e n e s i s a n d r e m a i n s t h e c r e a t i v e h e a r t o f t h e b u
s i n e s s . M o n e y - 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, als
o h a s a h a i r d r e s s i n g a c a d e my i n B o mb a y a n d To n i & Gu y o p e n e d
a s a l o n t h i s 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."
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PACKAGING
In 2004, L’Oreal came out with Garnier Frutics shampoo and conditioner.
“Sure it was an international product, but the formulae were all for India.
With Garnier Frutics Long & Strong in 2006, they played with the braid as
the imagery and immediately connected with the contemporary Indian
consumer. The look was international but the product still spoke about long
and strong plaits”.
The unisex brand is seen as a high-energy and lively brand. V Sitaram, the
former chief operating officer (consumer care) of Dabur, says: “It has
established a strong franchise by depicting young people identifiable as a
South Delhi or Mumbai youth as its core consumer.
The fluorescent packaging stands out on shelves as well.
Every Garnier product launch is initiated with the simultaneous launch of a
trial pack.
SHAMPOO & CONDITIONER:
Bright green plastic bottles with snap-open lids for ideal amount of shampoo
dispensing. Both plastic jars as well as bottles used for conditioners.
Containers have a very funky look to them.
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HAIR STYLING GEL:
Plastic bottles for spray or spritzing gels that give a natural look or mild gels;
jars for stiff gels for a firmer hair style. Aerosol containers for hair sprays.
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SATCHETS:
Available in cheap 5 ml sachets for travelling or new product trial purposes.
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HAIR COLOR:
Opaque plastic bottles & tubes for product preservation since it is sensitive to
light.
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SWOT ANALYSIS OF GARNIER PRODUCTS
Strengths
Strong and Focused Brand Portfolio.
Presence in Emerging Markets.
Strong R&D 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&A 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.
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CHAPTER 6
FINDINGS
1. COSMETIC INDUSTRY
Cosmetics Market (makeup or beauty products) are mixture of chemical
generally used to enhance the appearance or odour of the human body.
Sun care, skin care, hair care, deodorants, makeup and color cosmetics, and
fragrances are some of the cosmetics products that are predominantly
available and used by individuals.
2. KEY BENEFITS
Insights regarding latent opportunities present in the market would
help stakeholders in implementing strategic business plans
Key market players are profiled in the report in order to gain an
understanding of the strategies adopted by them
3. COSMETIC MARKET SEGMENT
By category
By distribution channel
By gender
By geography
4. G a r n i e r wa s f o u n d e d i n t h e ye a r 1 9 0 9 b y E u g e n e S c h u l e r , a
F r e n c h c h e mi s t wh o d e v e l o p e d a n i n n o v a t i v e h a i r c o l o r
f o r mu l a .
5. Garnier was originally known as laboratories Garnier when it was
established in 1904 by French pharmacist Alfred Amour Garnier. The
company was acquired by L’Oreal in 1977 and is now the second largest
brand in the L’Oreal group.
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6. COMPETITORS
DOVE
AYUR
LAKME
HIMALYA
7. ANALYSIS OF INDIAN MARKET
I n I n d i a n ma r k e t t h e h a i r c a r e products of garnier like “garnier fructis”, “
ultra doux” etc is available in both organised and unorganized retail shops in
India. The high end skinc a r e p r o d u c t s l i k e “N u t r i t i o n s i te ” a r e
available only in selected retail outlets in country.
8 . P R O D UC T M I X
Garnier has enriched product line under skin care such as Gentle, Pure
Active. The entire portfolio needs to be covered as a part of its marketing
mix product strategy.
PLC-
Introduction stage- The distribution was restricted to some major cities, just
to view the response of the consumers to the product.
Growth stage- By the time product entered this stage, it was already accepted by
a lot of early adopters. They diversified the distribution channels to various
other cities to capture more users.
Maturity stage- Garnier lies between growth and maturity stage. It should try to
be in Growth maturity or stable maturity than in decline maturity phase.
9. PRICE MIX
The target segment for any product is that homogenous group of people
which is purported to be the most potential customer for the product.
74
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 will be able to tide over the steep pricing of its products.
Garnier has its presence in large number of countries mainly in India, China
and other Asian countries. It sells its products through chain of supermarkets,
cosmetic stores, medical stores and online stores. Brand follows usual
distribution system starting from manufacturer to whole seller to retailer.
Garnier products are available in almost every retailer across the country
from where consumers can easily buy the product.
12. PACKAGING
Strengths
Strong and Focused Brand Portfolio.
Presence in Emerging Markets.
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Weaknesses
Dependence on Western European Markets
Late Entry into Asian markets
Opportunities
M&A Opportunities.
Growth in Adjacent Categories.
Threats
Competition from Private Labels.
Price Competition among Branded Manufacturers.
CONCLUSION
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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.
As boys are also becoming looks conscious so the male beauty segment can
be one area of focus.
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REFERENCES
BOOKS: -
WEBSITES: -
https://en.wikipedia.org/wiki/Fast-moving_consumer_goods
http://www.garnier.com/
https://www.marketing91.com/marketing-mix-garnier/
http://www.mbaskool.com/brandguide/cosmetic_products/3541-garnier-products-
ltd.html
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