Garnier Mpr.docx

MINOR PROJECT REPORT ON

MARKETING MIX OF GARNIER PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION By: AISHWARYA AGGARWAL Enrollment No. 00390201716

Under the guidance of MS. AMANPREET K. LUTHRA

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SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT &INFORMATION TECHNOLOGY (Affiliated to GGSIP University Delhi) (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. Signature of the scholar ...........................................

Place: Delhi

AISHWARYA AGGARWAL

Date:

Enrollment no. 00390201716

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CERTIFICATE This is to certify that AISHWARYA AGGARWAL student of Sri Guru Tegh Bahadur Institute of Management & Information Technology of course BBA Batch (2010-2013), has completed her research work titled “minor project report on marketing mix Garnier” under my guidance and supervision. The work submitted is genuine and authentic. .………………………………

Signature of Director (PROF.) DR. NAVNEET KAUR

….……………………………….....

Signature of Project In charge MS. INDERPREET KAUR

…...…………………………………

Signature of Guide MS. AMANPREET K. LUTHRA ......………………………………

Place: Delhi

Signature of Scholar

Date:

AISHWARYA AGGARWAL

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ACKNOWLEDGEMENT With profound sense of gratitude and regard, I express my sincere thanks to my guide and mentor Ms. Amanpreet K. Luthra for her valuable guidance and the confidence she instilled in me, that helped me in the successful completion of this project report. Without her help, this project would have been a distant affair, her thorough understanding of the subject and professional guidance was indeed of immense help to me. I am also greatly thankful to the faculty members of our institute who co-operated with me and gave me their valuable time. Acknowledgement

……………………………..

Signature of the scholar Place: Delhi

AISHWARYA AGGARWAL

Date:

Enrollment no.00390201716

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INDEX Table of content S.NO

CONTENT

1

ABOUT

PAGE NO COSMETIC

INDUSTRY 1.1

Changing lifestyle

1.2

Rising GDP

1.3

Segment overview

1.4

Global cosmetic market category

1.5

Cosmetic

market

key

benefit 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

5

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 6

Competitors Findings

6.1

Conclusion

6.2

Suggestions

6.3

References

6

LIST OF FIGURES S.NO

FIGURES

PAGE.NO

1

Top factors impacting global cosmetics market

2

Top winning strategies in world cosmetic brand

3

Market segmentation

7

CHAPTER 1 ABOUT COSMETIC INDUSTRY Global cosmetics market is expected to garner $429.8 billion by 2022, registering a CAGR of 4.3% during the forecast period 2016-2022. 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 colour cosmetics, and fragrances are some of the cosmetics products that are predominantly available and used by individuals. Retail stores including supermarkets, exclusive brand outlets, and specialty stores amongst others are the major distribution channels, with online channels gaining popularity among consumers. 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 Improvement in the current lifestyles of the individuals is majorly affecting the cosmetics market. Consumers have now become more conscious regarding the usage of cosmetics in their daily life in an effort to step up their style quotient and overall personality. Cosmetics play an important role in enhancing one’s inherent beauty and physical features. Men are also increasingly using cosmetics in their daily routine including various types of fragrances and deodorants. This growing demand of cosmetic products has in turn led to the growth of cosmetics market across the world. Rising GDPs of all the regions

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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. Use of natural ingredients Rising trend of the use of natural ingredients in cosmetic products is observed among various manufacturers. This trend caters to the ever increasing demand for natural or organic cosmetic products among customers. Use of herbal cosmetic products minimizes the chances of any possible side effects of the product. This ultimately increases the usage of cosmetics among individuals. Top winning strategies Presently, manufacturers are focusing on developing new products and innovating on the use of different ingredients in cosmetic products. In order to sustain and maintain their market position, manufacturers are adopting various strategies. Different strategies adopted by leading companies operating in the cosmetics industry are tracked from recent developments of the past two-three years. Product launch, acquisition, expansion and agreement are the prominent strategies adopted by the market players.

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Top winning strategies in world cosmetics market

FIG: 1.2 Segment overview The global cosmetics market is segmented based on category of cosmetics, mode of sale, gender and geography. The category segment includes skin & sun care products, hair care products, deodorants, makeup & color cosmetics and fragrances. Among these products, skin & sun care, and hair care products are majorly used by individuals and hold considerable amount of percentage share in global cosmetic products category market. The mode of sale comprises retail and online sale, where retail mode of sale is further classified into general departmental store, supermarkets, drug stores and brand outlets. Customers for buying cosmetic products majorly prefer the retail mode of sale. However, online medium for the purchase of cosmetic product is observed as a rising trend among customers.

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Geographically, the global cosmetics market is bifurcated into North America, Europe, Asia-Pacific and LAMEA. Market segmentation

FIG: 1.3 Global Cosmetics Market by Category 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. Rising demands for herbal cosmetics is prompting the leading manufacturers to launch new herbal cosmetic products. In March 2015, Unilever acquired REN Skin care; the acquisition would help Unilever to increase their customer base for skin care segment. In Dec 2014, Skin Food Brunei launched series of Premium Lettuce and Cucumber Watery line, which is customized for dry skin. COSMETICS MARKET KEY BENEFITS: 

The report includes an in-depth analysis of the cosmetics market, including information about current market trends, changing market dynamics, expected trends and market intelligence



Porter’s Five Forces illustrates the potency of buyers and sellers operating in the market, and would help in developing effective strategies



Value chain analysis of the industry provide a clear view of key intermediaries involved and highlights their roles including their valueaddition at every stage in the chain



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

COSMETICS MARKET SEGMENT: The Global cosmetics market is segmented as: By Category 

Skin and Sun care products 13



Hair care products



Deodorants



Makeup and Color cosmetics



Fragrances



Others

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. India’s contribution to the growth of the global cosmetics market is about 60 percent. Th e b e a u t y a n d t h e w e l l n e s s s e c t o r i n I n d i a a r e o n a boom. Garnier started its operations in India thirteen years ago.

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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.  Garnier attributes its performance to being the first player in India to introduce a cream based hair color below the price of Rs.100 (2002) and the first home-highlighting kit (2005).  One of their key ingredients is a fruit concentrate used in all their products. It is a combination of fruit acids, vitamin B3, B6, fructose and glucose.  Garnier believes in beauty through nature. Scientifically developed and enriched with selected natural ingredients, its products help look healthy and feel good every day.  Garnier can be considered as a massive brand. Although positioned as a premium offering, the brand was wise enough to price it reasonable. Currently Garnier is targeting the middle and upper socio-economic class.

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COMPANY PROFILE: 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. Garnier introduced home hair-color products to the mass market in the 1960’s with Belle color, Garnier Nutrisse and Color Naturals. Garnier skin care and hair care products are currently sold in more than 120 countries. In 2011, Garnier partnered with US manufacturer Terra Cycle to promote up cycling of product containers.

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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

 AYUR FACE WASH

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 DOVE FACE WASH

 LAKME FACE WASH

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INTERNATIONAL CAMPAIGNING GARNIER INTERNATIONAL WOMEN’S DAY CAMPAIGN

Garnier's latest celebrity-filled campaign for International Women's Day has been roundly criticised for its lack of diversity. The campaign features Davina McCall, Holly Willoughby, Angela Scanlon, Fearne Cotton, You Tuber and author Estée Lalonde and dancer Danielle Peazer - in other words, an extremely white line-up. 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." 20

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." Unfortunately, Garnier's response didn't go down too well, either.

GARNIER’S NEW CAMPAIGN UNDER FIRE FOR LACK OF DIVERSITY Garnier UK has come under fire for a lack of diversity in race, age and ability of the models used in its new campaign. The advert – which was released on International Women’s Day – features popular personalities Davina McCall, Holly Willoughby, Angela Scanlon, Fearne Cotton, Estee Lalonde and Danielle Peazer, alongside the caption: “We are strong, we are ambitious, we are awesome, and we are women.” Despite the inclusion of successful female figures in the campaign, Garnier received some criticism over its lack of ethnic minorities, differently-abled and older models. Following the backlash, Garnier said the models chosen to 21

represent the brand were done so “based on their values” as opposed to their physical attributes. 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.” ANALYSIS OF INDIAN MARKET Garnier being an important brand of Garnier in both hair care and skin care i s a v a i l a b l e a l l r o u n d t h e g l o b e e a s i l y. 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 t e ” a r e a v a i l a b l e o n l y i n s e l e c t e d r e t a i l o u t l e t s i n c o u n t r y. I n I n di a G a r n i e r ma n u f a c t u r e s i t s p r o d u c t s i n P u n e whereas its registered office is in Mumbai. To popularize its product line Garnier has occupied brand corners in many big malls and retail outlets in which Garnier products get a major chunk. Garnier has tie ups with man y big beauty salons and parlours who can promote and sell its products. Over the past decade the company has trained more than 30,000 hairdressers in India in the use of its products. And it has helped to establish about 300salons in the past five years. The theory is simple: If there is no natural demand for your 22

goods, stimulate it. “We have created a profession and a market,” Didier Villanueva, L’Oreal India’s country manager, said. “If youtrain people they will use your products.” Its sales in India, where it is No2 behind Unilever, are growing at 35 per cent a year. This year, they are about €100 million (£71 million). Although L’Oréal’s profe s s i o n a l products division represents only 17 per cent of total revenues, hair color was the Paris-based group’s genesis and remains the creative heart of the business. Money-spinning mass-market brands such as Garnier are being pushed

hard

in India, where the company estimates there is a market of 50million. Garnier products are easily available for sale on many websites in India.

HAIR CARE MARKET ANALYSIS The Garnier Frutics fortifying cream shampoo colour last is one of a large assortment of shampoos on the market. In the midst of such a large range of competitors, Garnier has taken steps to make their product stand out. The product is distinctively designed with a dark red bottle, combined with a dark green cap and label. The opening cap is small and rounded and differs to the usual large opening cap of most shampoos. The general theme amongst shampoos is very bright bold colours so this products darker colour does differentiate the product. Consumers purchasing this product need cleaner hair and a product that will prolong their highlights or completely dyed hair. The product labelling reassures the consumer that the product will meet this need by describing the features of the product. The labelling describes how the product has a double action: nourishes + resists colour fading (Product label), thereby seeking to profess that they are meeting the needs of the buyer. So people in the target market of having coloured hair will be attracted to this product because of these attributes. The main consumers who buy this product are women and casual surveillance of shoppers in the health products 23

section of the supermarket showed that a large degree of women will take two to three minutes to select a shampoo. Where this product is not available, the most probable outcome would be that consumers would select a substitute product. This is because there are many available alternative shampoos on the market and they all generally do the same job and profess the same sort of benefits. 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 24

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.

GARNIER TESTING POLICIES: 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 multidisciplinary 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.

Stages of research, development and evaluation at Garnier: •

STAGE

I:

Garnier

products

benefits

from

scientific

and

customer r e s e a r c h g a t h e r e d f r o m s e v e r a l r e s e a r c h c e n t e r s a n d e v a l u a t i o n centers around the world. • STAGE II: Independent clinical studies to assess the effectiveness and safety of our products. They can be done under dermatological or Ophthalmological control. • STAGE III: Consumer studies verify product effectiveness and consumer satisfaction rates before the product is launched.  STAGE IV: Once products are launched, customer satisfaction surveys are also carried out. These involve interviewing a statistically significant number of people who have bought and used the products for several weeks. This information helps us to monitor levels of satisfaction and we use this type of customer feedback to evaluate and improve our products on an ongoing basis. 25

ONLINE PRESENCE:  Use of Facebook page to interact with consumers for feedback and product rating.  The page is pro performance, which is the tag-line of Garnier Men’s range in India  It features performance quizzes, shares healthy recipes and even answers personal

queries

of

26

consumers.

CHAPTER 3 INTRODUCTION TO MARKETING MIX DISCUSSION ABOUT THE TOPIC:  DEFINITION Marketing mix is a combination of four elements- product, pricing structure, distribution system, and promotional activities used to satisfy the needs of an organization’s target market and, at the same time, achieve its marketing objectives. Every business enterprise has to determine its marketing-mix for the satisfaction of needs of the customers. Marketing-mix represents a blending of decisions in four areas- product, pricing, promotion, physical distribution. These elements are inter-related because decision in one area usually affects action in the others.

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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. The price mix includes the following decisions: a) Determination of unit price of product. b) Pricing policies and strategies. c) Discounts, rebates and level of margins. d) Credit policy e) Terms of delivery, payments etc. 28

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.

 Promotion – Promotion deals with informing and persuading the customers regarding the firm’s product. It involves decisions about advertising, giving free articles on purchase of the particular commodities, conducting contests, role of personal selling by the salesmen, and other sales promotion techniques. The promotional tools are: a) Advertising. It is tool which the marketing manager uses to communicate a message to consumers through newspapers, magazines, television etc. Marketing managers are faced with the necessity of making numerous decisions with regard to advertising. b) Personal selling. Personal selling is another means of communicating to consumers, and consists of direct person-to-person interaction between salesman and customers. Sales manager plan, direct and control the efforts of individual sales persons. Personal selling is necessary where the target consumers are industrial organizations or where the products are technical nature. Through personal selling, the marketing manager can make efforts directly at the prospect to win his patronage. This is something advertisement cannot do. c) Sales

promotion.

Sales

promotion

includes

all

the

methods

of

communicating with the consumers except advertising and personal selling. It includes free sample, premium on sale, contests, displays, shows and exhibitions, etc. 29

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.  Place or physical distribution- Place-mix entails activities that are necessary to transfer ownership of goods to customers and to make available goods at right time and place. Thus, it includes decisions about the channels of distribution and the place at which the product should be displayed and made available to the customers. It is management’s responsibility to select and manage trade channels through which the product will reach the customer at the right time and to develop a physical distribution system for handling and transporting the products through these channels. The important channels used for physical distribution of goods are wholesalers and retailers. In some cases, the manufacturers even own the retail outlets. For e.g., there are oil companies in India that own stations distributing their petroleum products. Many manufacturers like Eureka Forbes also sell directly to consumers by way of door to door sales person. Whatever may be channels selected, the marketing managers are also responsible for measuring channel performance and making changes when performance falls short of expected goals. In addition, he has to develop a system of handling and transporting the products through these channels.

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 THE FIFTH P: PACKAGING Packaging has assumed its importance as the 5th P of marketing-mix strategy. Packaging is a art, science and technology of preparing goods for transport, sale, and exchange. Packaging has become an effective marketing tool. It can create selfappeal-product and promotion. It has become a useful marketing tool because of the growing importance of self-service, innovation in packaging industry and positive effect on company and brand image. Packaging has become important for all products including services.

 THE EXPANDED MARKETING-MIX  PEOPLE. People constitute an important dimension of marketing of services. As provider of services, the marketer must deliver the right product to the customer. Every employee in the organization becomes a sales person of company’s service. Therefore his attitude, style, sense of responsibility, etc. become more important. For integrated marketing efforts, the company infests marketing orientation in the people who deliver goods and services. Customers are important to influence the other customers. Their word of mouth travels faster than company communication.  PHYSICAL EVIDENCE. A customer needs the service but, it also important how the service is offered. Thus, cleanliness at school, college, hotels, etc. becomes more important. Where people exchange the services, the provision of adequate facilities becomes more important in case of hotels, airport etc. Second part of the physical evidence is the peripherals-service coupon, airticket, cash memo, cheque book, token, slips, etc. A total of the two facilities and peripherals bring out the image of the organization. They are

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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.

 IMPORTANCE OF MARKETING MIX  Marketing mix represents a blending of four elements, namely, product, price, promotion and physical distribution. Determination of marketing mix is an important decision which the marketing manager has to take. If proper marketing mix is determined, the following benefits will accrue to the organization:  Marketing-mix serves as the link between the business firm and its customers. It focuses attention on the satisfaction of customers. Thus, it helps in pursuing consumer-oriented marketing.  Since marketing mix takes care of the needs of the customers, it helps in increasing sales and earning higher profit.  Marketing mix gives consideration to the various elements of the marketing system. There is a balanced relation between these elements. For instance, 32

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.

 PRODUCT LIFE CYCLE The concept of product life cycle (PLC) concerns the life of a product in the market with respect to business/commercial costs and sales measures. The product life cycle proceeds through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. PLC management makes the following three assumptions. 

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 33

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 endof-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 Product is introduced in the market with intention to build a clear identity and heavy promotion is done for maximum awareness. Before actual offering of the product to customers, product passes through product development, involves prototype and market tests. Companies incur more costs in this phase and also bear additional cost for distribution. On the other hand, there 34

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 35

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 At maturity stage, brand awareness is strong so sale continues to grow but at a declining rate as compared to past. At this stage, there are more 36

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. Marketing mix decisions include:  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 Decline in sales, change in trends and unfavorable economic conditions explain decline stage. At this stage market becomes saturated so sales

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declines. It may also be due technical obsolescence or customer taste has been changed. At decline stage company has three options:  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. At declining stage, marketing mix decisions depends on company’s strategy. For example, if company wants to harvest, the product will remain same and price will be reduced. In case of liquidation, supply will be reduced dramatically.

 Extending the product life cycle Extending the product life cycle by improving sales, this can be done through  Advertising: Its purpose is to get additional audience and potential customers.  Exploring and expanding to new markets: By conducting market research and offering the product (or some adapted form of it) to new markets, it is possible to get more customers.  Price reduction: Many customers are attracted by price cuts and discount tags. 38

 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, antiwar efforts, refugees, GLTBI, environment and animal protection, etc.) and the like. Something important to notice is that all these techniques rely on advertising to become known. Advertising needs the others to target other potential customers and not the same over and over again.

 SWOT ANALYSIS  Introduction SWOT analysis is a vital strategy applied in an effort to realize Strengths, Opportunities, Weaknesses and Threats of either an organization or individual. In the business context, this strategy enables a business to discover its strong and weak points, thus enabling it to survive both the internal and external forces. Therefore, this research examines the meaning and further, elaborates its basic components as applied in the analysis of enterprise.

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 Strengths Strength is considered as a positive internal characteristic of an organization, whether intangible or tangible. It is that attribute that is within the control of the business organization. A business that uses an effective SWOT analysis must know its strengths. Such knowledge is obtained through the business determining what it does exceptionally well and the resources the business owns. For instance, strength can be skills and reputation of workers, assets of the firm, the advantages that the firm enjoys over its competitors, and the general attributes that extend competitive advantage to the firm.

 Weaknesses According to Stanley, weaknesses are described as a firm’s internal attributes which are negative in nature and are responsible for denying an enterprise a competitive advantage over the other firms. In order to favourably compete in the market, a business must improve these negative aspects. Stanley argues that a firm might require identifying the factors that deter it from gaining competitive advantage. Further, it may require understanding the vital elements that would be lacking in comparison to its competitors and determining whether the business is located in a strategic place in the market.

 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. 40

 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 problemsolving 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 An effective SWOT analysis helps a business give emphasis to its strengths, improve on weaknesses take advantage of the opportunities present and avoid threats. This analysis is vital in the formulation of business strategies that majorly work towards achieving competitive advantage in the market through understanding of the internal and external factors within the structure of competition.

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CHAPTER 4 RESEARCH METHODOLOGY COLLECTION METHOD Data collection is an elaborate process in which the researches makes a planned research for all relevant data. Data is the foundation of all market research. Data are facts may be obtained from several sources. Data can be classified as:  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. COLLECTION OF SECONDARY DATA The researcher was assigned to do a comparative study on GARNIER PRODUCTS. In order to accomplish the job, the researcher adopted the method of collecting secondary data through Parle’s official site, magazines, newspaper, internet. 42

OBJECTIVES OF THE STUDY PRIME OBJECTIVES  To study marketing in detail.  To know importance of marketing.  To understand the concept of marketing clearly by means of GARNIER.  To find out the marketing strategy used by the GARNIER.  To know Strengths, weaknesses, opportunities, threats of GARNIER.  To know Segmentation Targeting and Positioning of GARNIER.

LIMITATIONS  Less time to do a complete study of Parle.  Less time to collect Primary data.  Focused on only one aspect of the company.

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CHAPTER 5 MARKETING MIX OF GARNIER

 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. Let us start the Garnier Marketing Mix:  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 44

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 PRODUCTS 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.

1. Garnier Skin Naturals White Complete Multi Action Fairness Night Cream

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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. 46

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.

5. Garnier White Complete Fairness Face Wash

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 48

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.

6. Garnier Pure Active Neem Face Wash

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.

8. Garnier BB Cream Miracle Skin Perfector

Garnier BB Cream is combination of moisturizer, foundation, primer and sunscreen. This instantly brightens the skin and gives the skin a better 50

looking skin. The SPF 24 gives UVA and UVB protection. BB creams are ideal to be used daily instead of using a heavy foundation. This Garnier BB cream costs 70 rupees for smaller 9 g tube.

9. Garnier Skin Natural Innovation Blackheads Uprooting Scrub

Blackhead is a problem which is common on oily skin. The hardened sebum forms blackheads which are difficult to get rid of but an uprooting scrub can easily get rid of the blackheads when used daily. This Garnier blackheads uprooting scrub is ideal for boys and girls and can be used daily to get a blackhead free skin. This is priced at 150 rupees and removes the dark spots, marks and blackheads from the skin.

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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

 HAIR CARE PRODUCTS .  Recently Garnier launched another new innovative product in the Indian market - Garnier Shampoo + Oil 2 in 1 shampoo. This is something that Indian consumer has never seen before. And a product which Indian consumer find little difficult to believe.  Shampoo and oil are something that is not supposed to work together. In fact shampoo is used against oil. Indian consumers are habituated to using oil regularly and time usually works against using them both. And since these 52

two products are supposed to work against each other and time factor prevents them from using both, Garnier has thought of a plan to integrate north-pole and south-pole together.  Garnier Oil + Shampoo are a blend of 3 oils and shampoo. According to press release, the oil will work within to strengthen the hair and shampoo will clean the hair. This shampoo variant contains three oils - Olive, avocado and Shea oil.

 Whether these innovations fail or succeed, Garnier gains much equity through these steady streams of product launches. The premium positioning, smart pricing, heavy investment in brand promotion, innovative products and strong distribution reach has enabled this brand to create a special place in the Indian personal care industry. A lesson for aspiring brands.

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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.

 HAIR COLOR MARKET:  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 54

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 55

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 CryoMenthol and oil absorbing mineral clay which cleans the skin, leaving it fresh and oil free all day long in the year 2011. 57

 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. 58

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. Considering the company has setup its manufacturing facilities in Pune and has also been sub-contracting its product, it has been easier for it to control its prices in the Indian market.

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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. Signalling a hand on approach, managers were told to roll up their sleeves and spruce up the in-store while on a round of market. Shopkeepers saw the same men in business suits who had presented L’Oreal plans to them working with sales representatives to clean shelves, windows and place the Garnier merchandise. This is important. Except in the premium category, shampoos, conditioners, hair colours and deodorants are impulse purchases where the advice of the retailer plays a crucial role. A better display therefore helps sell better. 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. 61

 Promotion: Garnier always adopts the most advanced techniques of promotion that includes very popular method of Viral Marketing Policy. Viral marketing is a term coined to define the productive ways a marketing message is made available. And corporate are using the medium to circulate brands and brand messages. The idea has caught on like virus, as efficiently as information technology has entered households and businesses. Firms are now structuring their businesses in a way that allows them to grow like a virus and lock out the existing brick and mortar competitors through innovative pricing and exploitation of competitor’s distribution channels. The beauty of this marketing technique is that none of it requires any marketing. Customers, who have caught the virus, do the selling. Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message’s exposure and influence. Like viruses, such strategies take advantage of rapid multiplication to explode the message to thousands, to millions.

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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. Since free happens to be the most powerful word in a marketer’s vocabulary, most viral marketing programmes have attached themselves to it. The idea is to give away valuable products or services to attract attention. And, more importantly, someone else’s resources are depleted rather than our own. Garnier has positioned itself as a lifestyle product mainly targeting teenagers 63

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

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 . 65

big

cities.

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 66

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 takeaction 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. 73

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. 10. PLACE OF DISTRIBUTION 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. 11. PROMOTION MIX Garnier always adopts the most advanced techniques of promotion that includes very popular method of Viral Marketing Policy. Viral marketing is a term coined to define the productive ways a marketing message is made available. 12. PACKAGING The fluorescent packaging stands out on shelves as well. Every Garnier product launch is initiated with the simultaneous launch of a trial pack.

13. SWOT ANALYSIS



Strengths

 Strong and Focused Brand Portfolio.  Presence in Emerging Markets. 75

 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  Cosmetic industry is a widest industry. Cosmetics Market (makeup or beauty products) are mixture of chemical generally used to enhance the appearance or odour of the human body. Insights regarding latent opportunities present in the market would help stakeholders in implementing strategic business plans. Cosmetic market segment done by category, distribution channel, gender, geography. Garnier’s main competitors are dove, himalya, ayur, lakme. In Indian market, garnier product available in both organized and unorganized retail shop. Garnier has enriched their product line. Garnier lies between growth and maturity stage. It should try to be in Growth maturity or stable maturity than in decline maturity phase.

SUGGESTIONS  It needs to improve the availability network of the product so as to reach a large customer base because 60% of the respondents feel that it is available at selective stores only.

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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.  Garnier need to adopt different promotional mediums like internet, magazines, product binding schemes and even surrogative marketing.  Introducing a low price product line for the rural market.  Introduce herbal product lines as the customer is getting more inclined towards herbal 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: 1. T.N. Chhabra, T.N. Chhabra & S.K. Grover, (2013) “MARKETING MANAGEMENT” fifteenth edition, Dhanpat Rai & Co., Delhi 2. Kotler, Kotler and Keler, (2015) “MARKETING MANAGEMENT” fourth impression, Person, Delhi

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-productsltd.html

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