26518561 l Oreal Project Marketing

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PRODUCT ANALYSIS OF

GARNIER BY LOREALSubmitted by,

K.SANDHYA RANI

1225110116

MBA,Section-A

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LOREAL INTRODUCTION

LOreal was founded in the year 1909 by Eugene Schueller, a French chemist who

developed an innovative hair color formula. Today, the LOreal 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 the hair color business but soon it developed activities in the

field of cosmetics, concentrating on skin care, sun protection, make up, perfumes and 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. LOreal

famous advertising slogan is "Because Im worth it". It has recently been replaced by

"Because you're worth it". Its portfolio of brands includes the cosmetics range of L'Oreal

Paris and Maybelline NY, shampoo range Garnier, luxury products such as Lancme and

active cosmetics such as Vichy. Its closest global competitor in the premium make-up

segment is Revlon.

Indias contribution to the growth of the global cosmetics market is about 60

percent. The beauty and the wellness sector in India are on a boom. LOreal started its

operations in India thirteen years ago. The share of the Indian market to L'Oreal's

turnover of 15.8 billion is small, but is growing.It operates in India through its whollyowned subsidiary, LOreal India and has four divisions consumer products,

professional products, active cosmetics and luxury products. The biggest contributor

to its revenue in India is the consumer products division led by its strongest brand in

terms of sales - Garnier.

LOreal India has recently setup its own manufacturing plant in Pune. It imports most of

its products from its facilities abroad and manufactures the rest in Pune. The Indian

subsidiary headed by Chief Operating Officer Dinesh Dayal, who has been with the

company for 20 years, is one of the key officials responsible for the formation and

operations of L'Oreal India. The operations in India are conducted through a judicial mix

of global and local methods of advertising to appeal to the Indian consumers. LOreal

India has discovered over the years, the behavior of the Indian consumers and has realized

that the Indian consumer is not as price conscious as is portrayed. The brand is more

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expensive than the average FMCG, but offers a true value for money. The companys

growth in India can be attributed to its innovation of new products, supply chain

management, systems and structure. Being the worlds second largest cosmetics major,

LOreal is planning to foray into the Rs 1,000-crore Indian herbal and ayurvedic

cosmetics industry. After identifying its targets, LOreal India is in advanced talks with

Biotique and VLCC to acquire herbal/ayurvedic cosmetics brands. The group is taking the

acquisition route to enter this niche sector. LOreal has thus identified India as one of its

top five growing businesses globally. L'Oral's research facilities in France, the USA, and

Japan bring together more than 3,000 scientists and research staff. Their discoveries are

published in leading scientific journals.

COMPANY REVIEW-

Garnier offers a vast range of hair color, hair care and skin care that bring you natural

beauty. To guarantee complete satisfaction to its customers, Garnier seeks to continually

improve product performance by addressing their customers specific needs using the

companys long expertise in hair care, hair color and skin care.

To be sure Garnier products guarantee maximum effectiveness in total harmony with the

customers body, the company rigorously lab-tests all its new product propositions.

Evaluated by experts and consumers before being put on the market, Garnier products

give immediate and visible results. For the natural beauty of hair and skin, the company

offers to its customers, more than simple products, providing advice and routines adapted

to their personal needs.

Key Players

HLL has been an undisputed leader in this market from early 90s from where theconcept of shampoos got consideration.

In 1964, Sunsilk was launched on a general or a normal shampoo platform.

In 1971, Clinic Plus was launched on a different platform as a health shampoo for

family usage.

P&G launched for the first time, an anti-dandruff shampoo in 1987.

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Sunsilk re-launched in 1987 - Shampoo + Conditioner with Sachet packs. This

time, it was launched on a beauty platform with a new variant in its packaging.

HLL goes rural with Sachet shampoo concept. HLL was the first company to

target the rural market with shampoos.

P&G later launched Clinic Active in 1991 focusing more on the health platform by

introducing pro Vitamin B in its shampoos.

Sunsilk re-positioned and re-launched in 1994 (Nutracare) - Pink for dry hair,

yellow for normal hair, green for oily hair and black for long hair.

This stage marked the entry of competition in India due to certain factors such as

the burgeoning middle class, a huge untapped market, low penetration levels,

rising awareness of the youth.

P & G enters India in Nov 1995, with the worlds largest selling brand - Pantene

Sachet sale became 40 % of all shampoo consumption in the country.

CURRENT SCENARIO OF SHAMPOO MARKET

Shampoos are a significant segment of the hair care industry and they mainly cater to the

middle class, the upper middle class, teenagers and now the upper class rural consumers.

The penetration of shampoo market in India is just about 15% out of which the

penetration in the urban market is 40% and in the rural market, it is 10%.

There are broadly three basic segments in the shampoo market in India. These are:

Cosmetics

Anti-Dandruff

Herbal

The top three brands in the Normal shampoo range are Clinic Plus, Sunsilk and Chik

while in Herbal shampoo range, the top three brands are Ayush, Dabur Vatika and Nyle.

The anti-dandruff shampoos include Clinic All Clear, Head and Shoulders and Dabur

Vatika as the best performing brands. The premium products in the shampoo market

include Shehnaz Hussain, LOreal and Revlon Flex as the ruling brands in the market. On

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the basis of the research conducted by us, the shampoo market has a large untapped

market as it is still considered as a premium cosmetic product by a huge part of the Indian

population.

DATA ANALYSIS

Total number of working and non workng respondents

Figure 5

The above pie diagram indicates that out of the total 100 respondents surveyed, 43% are

working and the remaining 57% are not working and are mostly students.

GARNIER USAGE AMONG WORKING RESPONDENTS

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Out of the total 43 working respondents surveyed, only 30% of them dont use any of the

Garnier products, the remaining 70% of the working respondents use Garnier products.

This indicates that the brand is popular amongst the working people. The respondents so

surveyed were well aware about the brand and were also aware about almost all the

product lines being offered by Garnier, be it in skin care or hair care. This result indicates

that Garnier has a well defined target market catering mainly to upper middle class

consumers which is mainly why the working respondents are frequent users of different

products of Garnier.

GARNIER USAGE AMONG NON WORKING RESPONDENTS

Figure 7

Out of the 57 non working respondents surveyed, about 84% of the respondents use

Garnier products which means about 47 out of 57 people use Garnier products and 16% of

the respondents dont use any of the Garnier products. This again indicates that the brand

is popular among even the non working respondents who are majorly students in our

survey.

The inference that can be drawn from the above two pie charts is that irrespective of

whether the consumers are working or are students, the brand has a good popularity. This

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means that the brand has successfully caters to the needs of the youth as well as people

falling in the age bracket of 35 to 55.

PREFERENCE FOR SKIN CARE OR HAIR CARE AMONG

WORKING RESPONDENTS

Figure 8

Out of the 43 people who are working, about 29 of them use Garnier products and out of

these 29 people, only 4% of the respondents use only skin care products and 18% of them

use only hair care products while a major chunk of 78% of the respondents use both skin

care and hair care products of Garnier.

This indicates that the customers are regular and loyal users of almost all the product lines

of Garnier.

PREFERENCE OF SKIN CARE OR HAIR CARE PRODUCTS AMONG

NON WORKING RESPONDENTS

Figure 9

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Out of the 57 non working respondents, about 36 of them use Garnier products. Out of

these 36 respondents, 25% use only Garnier hair care products, 28% of them use Garnier

skin care products and 47% of them use both hair care and skin care products of Garnier.

This again indicates that majority of people like both the segments of Garnier but unlike

the working consumers the non working consumers prefer Garnier skin care products over

its hair care products.

USAGE FREQUENCY AMONG WORKING RESPONDENTS

Figure 10

Out of the 29 people using Garnier products, 9% of the respondents purchase Garnier

products fortnightly, 69% of the respondents purchase the products on a monthly basis

and 22% of them purchase the products once in three months. This indicates that a

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majority of respondents are frequent users of Garnier products. This also indicates that

there is easy availability of Garnier products at almost all retail outlets.

USAGE FREQUENCY AMONG NON WORKING RESPONDENTS

Out of the 36 respondents who use Garner products, only 3% purchase the products

fortnightly, about 6% purchase the products weekly, 33% of them purchase the products

once in three months and a majority of 58% of the customers purchase the products on a

monthly basis. The result of this data is very much similar to that of the working

respondents.

This indicates that the buying pattern of customers is more or less the same irrespective of

their occupation.

Figure 11

AVAILABILITY OF GARNIER PRODUCTS

Figure 12

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The above data gives a combined interpretation for both working and non working

respondents that out of 29 working respondents, 10 feel that Garner products are easily

available at every store while 19 feel that they are available only at selective stores and

out of 36 non working respondents, 16 respondents feel that the products are readily

available at all stores, 19 feel that the products are available only at selective stores and

only 1 respondent felt that the products are not easily available at all.

The combined interpretation of this result indicates that the distribution network of

Garnier is not very strong which leads to the unavailability of Garnier products quite

often. Hence there is not much easy accessibility to Garnier products in general be it skin

care or hair care.

PRICE OF GARNIER PRODUCTS

Figure 13

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The graph states that out of 29 working respondents, 15 feel that Garnier products are

slightly overpriced and about 14 feel that the products are perfectly priced while none of

the working respondents feel that the products are highly overpriced. In case of the 36 non

working respondents, 20 feel that Garnier products are slightly overpriced while 15 feel

that the products are perfectly priced.

A combined interpretation of this can be that about 50% of both working respondents as

well as students feel that the prices of all the Garnier products are slightly overpriced.

This means that Garnier does not have a prime aim to offer the products at reasonable or

affordable prices for all segments of consumers. This is because Garnier caters mainly to

the middle class and the upper middle class consumers with a prime aim of providing

good quality products to its loyal customers.

SATISFACTON LEVEL

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Out of the 29 working people surveyed, about 5 found garnier products highly satisfactory

and a majority of 24 found the products satisfactory while none of the working

respondents found them below satisfaction levels. While out of the 36 no working

respondents surveyed, 2 respondents found the products highly satisfactory and a majority

of 33 people found them satisfactory. Only 1 person out of the non working respondents

found the products below satisfaction levels.

The common interpretation out of this result can be that a majority of customers find

Garnier products satisfactory which leaves some scope for improvement in the quality of

products being offered by Garnier so that it can attract more customers thereby expanding

the existing customer base.

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USAGE PURPOSE

Out of the 100 people surveyed, 77 people use Garnier products. Out of these 77 people

only 2 answered that they use the product for medical purpose, while a majority of 75

people answered that they use the products for cosmetic purpose. Therefore those people

who use Garnier products, 97% use them for cosmetic purpose, while a very small

percentage of 3% use it for medical purpose. It is very clear from this data that people

prefer Garnier products for cosmetic use only.

AWARENESS

Out of the 100 people surveyed, 77 answered that they use Garnier products. We gatheredinformation through our survey that how a respondent came to know about Garnier

products. 74 respondents answered that they came to know about Garnier products

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through television, 21 by newspaper and magazines, 20 by word of mouth and 7 through

internet. This data suggests that TV is the most popular source of information and

awareness regarding Garnier products.

Reasons for Not Using Garnier Products

Figure 17

Out of the 22 respondents who do not use the Garnier products, 14 people (64%) are

happy with their current brand and have not tried Garnier yet, rest 4 people (18%) do notfind Garnier products effective, the other 3 people (14%) finds the price of the garnier

products as the main reason for not using it. Thus if Garnier needs to make the customers

use their products for once and be able to stand on their expectations.

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Conclusion

The present study comes to the floor with the revelations having exciting and full of

curiosity determinants in relation to the specified objectives to understand and analyze the

4P aspects of marketing for Garnier. Further the study helped in identifying the reasons

which stops the customers to buy Garnier Products over other products and to understand

customer Brand knowledge with regard to Garnier. As the study has been conducted, in

the context of Indian customers (where interviewed customers are from Noida and

Greater Noida), the investigation perspectives have been thrown, conditioning the

specified motives of Indian people, putting aside the motives outside India. The research

conducted was also helpful in identifying the frequency of purchase and usage of the

Garnier products.

Following are the few key findings of the study:

70% of the total working respondents use Garnier products.

84% of the total non working respondents use Garnier product.

78% of the working respondents users use both hair and skin care products,

whereas 18% uses only hair care products by Garnier and 4% only skin care

products.

In non working respondents 47% uses both skin and hair care products by Garnier,

25% only hair care and 28% skin care products.

Among the non users of the Garnier products 64% are happy with their current

brand, 18% find Garnier products ineffective and 14% people find the price of the

products a major concern.

TV is the most popular source of information and awareness regarding Garnier

products.

Shampoos & Conditioner are the most popular Garnier products. Only 40% of the users said that garnier products are available at every store.

82% of the Garnier users are satisfied with the products.

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QUESTIONNAIRE

Dear Respondent,

This is a survey regarding the product analysis of Garnierby LOreal, so kindly furnish

the correct information. The information given will only be utilized for the researchpurpose only and not any other purpose.

RESPONDENT PROFILE

Area of Residence:

Age :

Gender : Male____ Female____

Your monthly household income:a) Below 10000 b) 10000-25000 c) 25000-50000 d) Above 50000

1. You use Garnier products.

Regularly_____ Sometimes____

Rarely _____ Never ____

If No go to question number10.

2. If Yes, You use :

a) Hair Care Products ____

b) Skin Care Products ____

c) Both ____

If your choose option (b) or option (a) then you are also required to fill questionnumber10 or11 respectively.

3. You buy Garnier products:

Weekly

Fortnightly

Monthly

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Once in 3 months

4. The variant of Garnier that you use is available at:

Every store.

Selective stores.

Not available in your area.

5. The price you pay for the Garnier products is:

Highly overpriced

Slightly overpriced

Perfectly priced

Under priced

6. How did you get to know about Garnier products?

TV

Newspaper/Magazines

Word of Mouth

Internet

Any Other___________

7. How do you find Garnier products?

Highly satisfactory

Satisfactory

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Not satisfactory.

8. Your purpose for purchasing Garnier products is for:

Cosmetics Use ____

Medical Use ____

Both ____

9. you do not use Garnier because of:

a) Price b) Effectiveness c) Happy with current brand

d) Availability e) Unaware of the product f) Any other

reason__________

10. Alternate brand you prefer for hair care.a) Panteen b) Sunsilk c) Fiama Di Wills d) Head &Shoulders

e) Dove f) Clinic All Clear g) Others (Please specify) __________

11. Alternate brand you prefer for skin care.

a) Ponds b) Lakme c) Nivea d) Dove

e) Himalaya f) Fair&Lovely g) Ayur h) Others ___________

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