Owned

by Loreal Group which is the worlds largest beauty and cosmetics company Main 3 brands are Maybelline, Loreal Paris and Garnier Started operations from scratch in India Garnier was chosen as the flagship brand for India in 1991 Started with Ultra Doux range of shampoos

This research included a thorough study of the history, background, marketing strategies and competitive strengths
The prime concern was to check awareness of Garnier Hair colour amongst consumers and its usage The data was mainly collected by means of a questionnaire prepared and direct feedback from retailers Other sources were internet, magazines, marketing blogs and surveys

 India

is a Rs. 1214 crore hair colour market Leading players: 1) Godrej Hair dye: 33% 2) Loreal and Garnier: 60% 3) Others: 7% One of the fastest growing segments in 1998 onwards

 Garnier

Color Naturals is the biggest brand in the company Contributes to over 25% of the companys turnover First brand to introduce a cream based hair colouring solution It contains natural ingredients like olive oil that makes hair smooth and soft

 Segmentation:

Changing lifestyle has triggered the growth in this segment seeking its niche in teenagers and middle age Target Market: Middle and upper socioeconomic class with medium to high disposable income Positioning: Positioned as nature based, innovative personal care brand with a catchy tagline `Take Care

1) PRODUCT: Permanent colour cream enriched with Olive oil, that nourishes the hair as it colours. It uses natural ingredients like rose oil, magnesium, eucalyptus and acacia extracts and vitamins B3 and B6. Available in 5 shades in India,- black, natural brown, dark brown, burgundy, light brown. 2) PRICE: Mid segment; priced between Rs. 120 to Rs.140 depending from state to state.

3) PLACE: Available in all states and cities, in supermarkets, local retailers, parlours, medical stores, saloons, etc
4) PROMOTION: Used by urban modern middle class women Endorsed bymodels like Karisma kapoor, Kareena Kapoor, Simone Singh and Penelope Cruz and Sarah Jessica Parker at the international level The print ads are found in leading daily newspapers and magazines like femina, cosmopolitan, womans era, etc

Strengths: Established Global brand name Aggressive Marketing strategies First to introduce cream based hair Colour Offering high quality at low prices

Weaknesses: Not available in smaller packages Low penetration in rural areas Over usage tends to damage hair

Opportunities: Increase in disposable income of middle class Hair colouring is in fashion these days Major promotion which creates awareness

Threats: Tough competition from herbal products and hair dyes Inhibitions of Indian consumers Other international brands Societal groups can create trouble since environment is damaged majorly

Existing Competitors Wella Godrej Schwarzkopf Clairol

Potential Substitute Henna Dyes Herbal products

Potential Entrant Beauticians products International Brands

Porters Five Factor Model

Bargaining Power of Suppliers Quality Switching Cost

Bargaining Power of Buyers Herbal products High-Quality Many players in the market

Haircolor Users
Yes
No 40 % 60 %

Male / Female Ratio

Female Male
39 % 61 %

Age Group
9% 14 %

20-30
30-40
64 %

13 %

Above 40

Haircolor Preference Ratio

Wella Kolestint 10%
Clairol Hair Colour 3% Garnier Hair Colour 41% Loreal Hair Colour 36%

Schwarzkor pf Hair Colour 10%

Reason for using Garnier Hair Colour

Brand image Easy availability Price Quality

Satisfaction Level of Garnier Users

No Ye s

35%

36%

46%
65%

7%

11%

Garnier Color Preference

Substitute Products
Henna/Mehndi

Black Burgundy Dark brown Light brown

30% 29%

Herbal products 3% Local dyes

62% 35%

9% 17%

15%

Awareness Medium
2% 21% 66% 2%

9%

Television
Newspapers Magazines Radio

 They

should add more herbal content to the product They should penetrate in rural areas to increase their customer base. They should make it available in small packages. Should advertise more about the safety and usage of the product