Customer Relationship

Management
Report
On
Wella Kolestint (Hair Color)

Submitted to: Submitted

Prof. Sham Sharma by:
(faculty) Simranjeet
On: 2nd Feb 2011 Kaur
PGDRM 12
IRS

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Content

S.No Topic Page no.

1 About Wella Kolestint

2 Wella Kolestint in India

3 Wella and P&G
4 About Leo Burnett
5 Launch of Wella India
Steps taken to inform the customer of the needs
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identified
Extent to which the product purports to satisfy
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consumer needs
Why the product will succeed or fail in the
marketplace
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 Positives

 Negatives

9 Appendices
10 References

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 About Wella Kolestint Hair Color

Wella Kolestint hair color is being introduced in India, one of the fastest
growing markets globally and one of the world’s top 10 hair color countries.
This is P&G’s first hair color launch into a new country since the company
acquired Clairol and Wella in 2001 and 2003, respectively. Wella Kolestint,
known in some other markets as Wella Koleston, has been one of P&G’s fastest-
growing global brands in the past year.

With deep, long-lasting color, Wella Kolestint is designed to appeal to

beauty-conscious Indian women:
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• Wella Kolestint is the #1 hair color in some of the world’s largest dark hair
markets*, including Brazil, Mexico, Turkey and Saudi Arabia. This is because
Wella Kolestint is designed to deliver outstanding color for dark hair.

• The unique Wella formula goes deep to the core and soaks each hair strand
with color while providing 100% gray coverage.

• 82% of Indian women rated Wella Kolestint the longest-lasting color ever**.

About Wella Kolestint Technology:

• Wella Kolestint creates deep, long-lasting color with a home coloring kit that
includes crème color, color developer, pre-treatment sachet and post-coloring
conditioner.

• The formulas have higher dye loads than formulas designed for markets with
lighter haired consumers.

• The formula is designed to minimize strand to strand variation and deliver

deep/rich color from root to tip.

Availability:
Wella Kolestint offers a palette of 12 Vibrant Shades, available from October
2010 throughout top cities in India in Modern Retail, Cosmetic, Drug and top
High Frequency Stores (HFS) and Pharmacies.

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*Based on external data.
**Based on AC Nielsen survey of 456 Indian women in 2009.

Wella Kolestint in India

The brand Wella is the inventor and a leader in the hair colour industry and
undisputed front-runner in the professional saloon and hairdresser segment.
India was the huge market and the company was focusing on professional
segment only in India. All the products were being imported from Germany and
used in A and B class parlours.
However on 1st October 2010; Procter & Gamble India (P&G) brought in one of
its biggest global brands– Wella hair colour—as it looks to strengthen its health
and beauty business in India. This was the first time that the detergents-to-
diaper maker entered the Indian hair colour market, which is dominated by
L'Oreal India's L'Oreal Excellence Crème and Garnier , and Godrej Consumer
Products.
P&G’s entry into hair colour market could be a formidable one, and a likely
threat to L'Oreal and Godrej Consumer Products." P&G's closest rival,
Hindustan Unilever (HUL), does not have a presence in hair colour segment.
Both HUL and P&G, however, compete aggressively in shampoos with their
respective brands Dove and Pantene.
The internationally recognized Hair Styling and Hair Color brand WELLA is in
India with its premium range of Hair colors. The subsidiary acquired by Procter
and Gamble is looking forward to cash in its international legacy in Hair Styling
category.
The Indian Hair color market was estimated to be worth 1200 Crores and is
growing at a healthy 25% as per A.C. Nielsen report. The market has major
players such as Godrej, L'Oreal, Garnier and HRIPL ( ie. Hygienic Research
Institute Pvt. Ltd.) which owns brands like Vasmol & Streax.
The market is further categorized into hair colors, powdered hair colors, Kali
Mehndi and Colored Creams.
German hair and beauty company brand Wella, which was established in 1880's,
was taken over by Proctor and Gamble in 2003 combining their respective
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product lines which gave the former strategic access to the global professional
hair care market. This made Wella among the top two global hair colour brands,
after French brand L'Oreal.
The first hair colour brand to be developed in the world in 1950, the brand is
likely to occupy the mid-premium price range in India.
The brand is also known as Wella Koleston in markets like the US. Wella
Professionals is the leader in professional hair colour and service, and its range
includes temporary to semi -permanent and permanent hair colours.

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 Wella and P&G

P&G spent most of the 1990s establishing a global footprint. Now, according to
Pritchard, it finally has the chance to live up to its purpose. The first step was
getting senior management to define a purpose for each of the brands in the
P&G stable: a blueprint on how the company could touch and improve lives.

Marc Pritchard , global marketing and brand building officer, P&G explains,
“We still have a core benefit but are thinking more broadly on how we can
deliver it. We are very focussed on sharpening what the brands stand for,
identifying human insights that can translate into big ideas.” Seven years after
Proctor & Gamble (P&G) acquired Wella for $7 billion, it will now have an
India impact.

In 2010 P&G India entered the Rs 1000 crore hair colour market and also got
into the premium end of shampoo segment through this brand.The world’s
largest consumer products company wanted to add color and shine to its Indian
business, literally.

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 About Leo Burnett

Type of agency: Advertising

Key personnel: Arvind Sharma, chairman of Indian sub-continent, Nitish

Mukherjee, MD, K V Sridhar, national creative director, Rajeev Sharma,
national planning director, Samir Gangahar, executive director-delhi

Accounts won: Avantha Corporate, Vedanta, United Technologies Corporation,

McCain Foods, Kohler, BILT, Tata International, CavinKare Digital - Carrefour
India website, Piramal Supractiv, HPCL racer 4, Procter &Gamble Wella India
website, Procter & Gamble shiksha, SRF India, RIM Blackberry Activation -
IPM India (Philip Morris), HPCL Racer 4 Loyalty programs, Procter & Gamble
MDO

Accounts lost: HomeTown

Notably, the agency worked on the launch campaign for Coca Cola India’s
Maaza, Milky Delite and Kaun Banega Crorepati – Season 4. Nitin Pradhan was
roped in as ECD and Seema Sood as director for their Events & PR division.

Leo Burnett left its impression across all the major awards this year for their
Tide Magnets campaign. Across categories, the agency collected two silvers and
a bronze at the Cannes Lions, a silver at Clio, two gold and one silver at the
New York Festivals Awards, and managed two silvers and four bronzes at the
Ad fest 2010. The agency managed five bronze awards at Spikes and two silvers
at London International awards.Among the Indian awards, Leo Burnett ended
their quest at Goafest 2010 with three silvers and eight bronzes.

How Leo Burnett rates itself: 8

In 2010 at 35% over 2009 Leo Burnett India registered its strongest ever growth
in the last ten years. This has happened on the back of robust new business
acquisition and our ability to convincingly contribute to our clients’ business
growth. Digital and Activation gathered steam through the year and
significantly increased contribution.
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Popular campaigns for Uninor and the launch of Kaun Banega Crorepati
deserve special mention amongst the host of successful campaigns through the
year.

Launch of Wella

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The Cincinnati-based FMCG major, Procter & Gamble launched Wella
Kolestint in India, marking its foray into the consumer hair colour market. This
aggressive business move has come after P&G bought Wella, the haircare and
beauty company.

Jacqueline Fernandez Kolestint Hair Color launch

Matt Cenelli,Marketing Manager, P&G Hair Colour, Asia & Australia

Matt Cenelli, Marketing Manager, P&G Hair Colour, Asia and Australia, has the
responsibility of establishing the retail brand Wella Kolestint in India. Having
been a salon brand in the Indian market, it has now been launched as a home
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colourant brand in the retail segment and will compete with other MNC brands
such as L'Oreal, Revlon and Garnier in the mid- and premium-end of the Rs
1,200-crore hair colour market.

In India, Wella Kolestint would sell with its ‘longest lasting colour' proposition
and has already roped in endorsers such as actress Jacqueline Fernandes and
Dimple Kapadia.

Steps taken to inform the customer of

the needs identified

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P&G India launches Wella Kolestint online

P&G India launched its leading hair-colour brand, Wella Kolestint, in the Indian
cyberspace. And they entrusted Arc Worldwide, Mumbai with the job of
developing the brand website. With an aim to make target audience brand
loyalists, the website has well-researched content, tips & videos on hair-
colouring.

Entry into the retail trade

P&G decided to enter the retail trade with Wella Kolestint at this point of time
as they strive to understand what consumers in each country are looking
for. They listen to their hair colour needs and try to address these needs as best
they can and try to deliver the benefits of their superior product propositions.

Brand ambassadors to endorse Wella Kolestint

Natasha Naegamvala, the expert celebrity colourist, recommends Wella

Kolestint on TV. Their brand ambassadors Dimple Kapadia and Jacqueline
Fernandez not only recommend Wella Kolestint but also use it.

Modern trade as the preferred route to spread awareness about the

offering

Wella Kolestint comes from the house of Wella, an international expert in hair
colour, which has a legacy in hair colour expertise. So, P&G is confident that

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they will be successful, especially since the initial results after our October 1
launch are encouraging. Modern trade is important as are high frequency stores
to enable better distribution and the best access.

Educate customers is through the stylist

The best way to educate customers is through the stylist. If a stylist is convinced
about a product, they recommend it to customers automatically — it is like the
relationship between a doctor and a patient. Normal advertisements work for
retail brands, but for professional brands this is the best way.

New awareness campaign for stylists

At Wella, the first pillar is education. Their stylists should be confident that they
can give their best to their customers. The stylists become the area of focus, and
they pass on this education to the customer.

Extent to which the product purports to

satisfy consumer needs

Relaunching of Wella in India

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Wella’s integration with P&G has been completed over the last year and now
they have a new logo and a new positioning of their products with a more
trendy, young and upbeat look keeping in mind the Indian consumers and Indian
hair type. This has been happening globally over the last few years and has been
completed in India now. This is a fresher, trendier Wella, more focused on the
professional business. Wella did this in two ways – one was a very grand
introduction for hair stylists, both those who have been working with them and
those who have not, with an event in Goa. At the event wella rolled out
personalized trends, education, seminars. There were presentations about the
new branding. Second, they launched the new trends with an international
stylist who gave salon owners a personalized understanding of creating the
trendy looks and lots of in-salon training.

Wella in terms of brand awareness in the last ten years

Wella was, and is, a well known brand in India. Before they arrived officially,
the products were bought in the gray market. Then the brand came to India, and
they had to understand the market, and find the right products for India. Now
there is no difference between the international and local markets. Wella has
more than 100 colors available here.

Distribution network

The distribution network is the biggest challenge that Wella will face. They
have to iron out the difficulties to have this work better over large geographical
areas, to have their supplies arrive in time. It’s very important to have good
associations with academies so that they can invest more in education and
training — they have been doing this, working with Nalini and Yasmin, Jawed
Habib, Pivot Point, Bounce academy.

Why the product will succeed or fail in

the marketplace
 Positives
 The youth – richer and much more aspirational than its previous
generations – is rapidly taking over the hair colour market in urban
areas, pushing demand for higher-end brands and prompting new
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 players such as Procter & Gamble, to check out the market. This is
one product segment where most urban consumers value quality
more than cost.

 The advantage with P&G is that Wella already has a brand recall
and awareness in the market, thanks to the grey market and salons.

 Is valued at a price point, which gives value to the consumer

(positioned at the premium, available at Rs. 489)

 Negatives
 The issue with the grey market is, it’s already a cluttered segment
and P&G has to think something out of the box.

 Has to present an absolutely unique and relevant product to Indian

consumers which has an distinctive edge over other brands in the
same segment.

 In a country where major part of the hair color market is taken by

L’Oreal and garnier, Kolestint will face high degree of competition.

References
1. http://www.wellaindia.in/

2. http://www.wellaindia.in/wellahistory.html

3. http://www.pginnovation.com/

4. http://www.currentnewsindia.com/business/brand-wella-enters-india.html

5. http://profit.ndtv.com/2009/07/18004441/Brand-Wella-enters-India.html
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6. http://www.bollyone.com/jacqueline-fernandez-kolestint-hair-color-launch

7. http://economictimes.indiatimes.com/topics.cms?query=wella

8. http://www.campaignindia.in/Article/242005,campaign-india-agency-report-
card-2010-leo-burnett.aspx

9. http://www.thehindubusinessline.in/catalyst/2010/12/09/stories/2010120950
020100.htm

10. http://leoburnett-connect.com/2010/12/04.php

11. http://economictimes.indiatimes.com/features/brand-equity/pg-combining-
brand-awareness-with-social-programmes/articleshow/7314752.cms

12. http://economictimes.indiatimes.com/news/news-by-industry/cons-
products/fashion-/-cosmetics-/-jewellery/demand-for-high-end-hair-colour-
brands-triggers-launches/articleshow/7142536.cms

13. http://economictimes.indiatimes.com/news/news-by-industry/cons-
products/fmcg/pg-set-to-enter-indian-hair-colour-market-with-
wella/articleshow/6616593.cms

14. http://fmcgindia.blogspot.com/2010_11_01_archive.html

15. http://www.thecoolhunter.net/cloud/view/Ads

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