Executive Summary

The application of the four Ps (Product, Price, Promotion, and Place) of marketing revolves
mainly around the customers in the target segment. The target segment for any product is that
homogeneous group of people which is purported to be the most potential customer for the
product. The market follows the Pareto Principle, which says that 80 per cent of the sales come
from 20 per cent of the people. Thus, for any product, one of the major tasks of marketers
is to identify the group of 20 per cent that gives 80 per cent revenue of that products sale to
the company. No surprise then that major marketing efforts of companies attempt to attract the
most potential group.
This project is an extensive study of the 4Ps analysis of the Garnier products. This detailed study
helped us in understanding the Price, Place, Product and Promotion aspect of the Garnier
products in the region of study i.e. Greater Noida and Noida. After having done this study we
were able to identify the pricing strategies followed by LOreal in terms of their product along
with their promotional strategy in the NCR region.
This case study also helps in getting an overview of the Indian skin care and hair care market
scenario, its growth trends, future prospects and opportunities available.
L'Oreal is one of the most successful International premium brands in India. This French brand
came to India in 1991 with its Ultra Doux range of Shampoo through its Agent Laboratories
Garnier. In 1994 Laboratories Garnier became the 100% subsidiary of LOreal.
In 2000 LOreal launched its range of cosmetics in to Indian market. The Indian Cosmetic and
skin care market is estimated to be around $300 Million. In this market the Color Cosmetic
segment is around Rs 250 crore while the Skin care segment is estimated
to be around Rs
400 crore.
LOreals strategy is to evolve Garnier into a master brand, stretching across categories that over
the next few years would include soap, body wash and facial care, similar to Unilever with Dove.
"Fructis shampoo and conditioner is core, and they are introducing styling aids as part of a mega
brand strategy.

OBJECTIVE:

The objective of our project is to comprehensively research on one of the most successful
sub-brands of LOreal- GARNIER.

Within Garnier, we have incurred a study on the hair care product range of Garnier that is
Garnier Fructis and Ultra Doux. We have essentially focused on shampoos and
conditioners.

Our research has been aimed at understanding the market share of Garnier within the
LOreal brand and among other brands. Also we have captured the market capabilities of
Garnier hair care shampoos and conditioners.

We have researched on the brand perception of the product by the customers and
customer loyalty towards the product.

We have also stressed on the four Ps of marketing in relation to this product and the
marketing strategies that have been adopted by LOreal, essentially Garnier from time to
time.

The stress however has been on the PRODUCT out of all the four Ps and on the
consumer behavior and their perception towards the brand.

We have also focused on the current leading competitors of LOreal-Garnier and

conducted a brief study on their marketing strategies.

What is International Marketing?

International marketing is simply the application of marketing principles to more than one
country. However, there is a crossover between what is commonly expressed as international
marketing and global marketing, which is a similar term. For the purposes of this lesson on
international marketing and those that follow it, international marketing and global marketing are
interchangeable.
Note: Keegans definition is typical of those that see international marketing a one stage of an
internationalization process.

Scope of International Marketing

International Marketing constitutes the following areas of business:Exports and Imports: International trade can be a good beginning to venture into international
marketing. By developing international markets for domestically produced goods and services a
company can reduce the risk of operating internationally, gain adequate experience and then go
on to set up manufacturing and marketing facilities abroad.

Contractual Agreements: Patent licensing, turn key operations, co production, technical and
managerial know how and licensing agreements are all a part of international marketing.
Licensing includes a number of contractual agreements whereby intangible assets such as
patents, trade secrets, know how, trade marks and brand names are made available to foreign
firms in return for a fee.

Joint Ventures: A form of collaborative association for a considerable period is known as joint
venture. A joint venture comes into existence when a foreign investor acquires interest in a local
company and vice versa or when overseas and local firms jointly form a new firm. In countries
where fully owned firms are not allowed to operate, joint venture is the alternative.

Wholly owned manufacturing: A company with long term interest in a foreign market may
establish fully owned manufacturing facilities. Factors like trade barriers, cost differences,
government policies etc. encourage the setting up of production facilities in foreign markets.
Manufacturing abroad provides the firm with total control over quality and production.

Contract manufacturing: When a firm enters into a contract with other firm in foreign country to
manufacture assembles the products and retains product marketing with itself, it is known as
contract manufacturing. Contract manufacturing has important advantages such as low risk, low
cost and easy exit.

Management contracting: Under a management contract the supplier brings a package of skills
that will provide an integrated service to the client without incurring the risk and benefit of
ownership.

Third country location: When there is no commercial transactions between two countries due to
various reasons, firm which wants to enter into the market of another nation, will have to operate
from a third country base. For instance, Taiwans entry into china through bases in Hong Kong.
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Mergers and Acquisitions: Mergers and Acquisitions provide access to markets, distribution
network, new technology and patent rights. It also reduces the level of competition for firms
which either merge or acquires.

Strategic alliances: A firm is able to improve the long term competitive advantage by forming a
strategic alliance with its competitors. The objective of a strategic alliance is to leverage critical
capabilities, increase the flow of innovation and increase flexibility in responding to market and
technological changes. Strategic alliance differs according to purpose and structure.

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, but the founder's daughter Lillian Bettencourt who is
one of the richest people in the world, and the Swiss food company Nestl each control over a
quarter of the shares and voting rights. 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 wholly owned 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. In India, the LOreal advertising account is
handled by McCann Erickson. 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 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 Boutique
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. LOreals 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. LOreals innovations are patented, creating some 586 patents in 2004 alone.
LOreals methodologies for evaluating the safety and efficacy of ingredients and finished
products, product evaluation and claim substantiation are recognized by the international
scientific

community.

LOral in international market

1. LOreal in European Market
LOreal is the only company which uses the strategies which also supports the people in many
ways and not only in providing good quality products at cheaper rates. LOreal used different
strategies of marketing in the European market like they used the strategy of nurturing selfesteem of the people with beauty. In France, LOreal created the programs like Beauty from the
heart for helping the people made helpless by illness or any kind of negative life experiences. In
the countries like UK and Germany, many of the women and also the young people regain their
confidence and their self image gradually by using the cosmetics which are provided by LOreal.
In European countries LOreal also used the marketing strategies like taking calculated amount
of risk etc but most of the strategies are related to the growth of the people mentally and not only
for the beauty or the fashion purpose. Various innovative treatment programs are launched by
LOreal for the young people of European countries and this company also launches the free
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skincare and make-up workshops for the women suffering from cancer. For example in France a
programme named as La Vie, de Plus Belle offers the free skincare and makeup for the cancer
suffering women in all over the France. This helps them to cope with the treatments side effects
and it also helps them to retain their self esteem which is very important for a patient. In the
European countries LOreal generally uses the strategy of the management of brand by which
LOreal had made a large amount of brands which are rooted in the local culture and which all
appeals to the various segments of the global market. By using these social types of strategies for
the people of Europe has helped LOreal in expanding their business in the whole Europe.

2. LOreal in North American Market

North American markets are considered as a perfect place for the companies like LOreal, Olay,
ponds etc. The best business of LOreal comes from the market of US. The reason for this much
success is that LOreal uses very good global marketing strategies in North America and the
other countries like Canada etc. One of the successful strategies of LOreal in US market is brand
extensions which includes the extensions of the brands after doing a complete research. For
example when LOreal launched a shampoo for kids they firstly made a complete research and
also debated about the new launch or for an extension. In US and Canada LOreal uses the
strategy of frequent advertisements and promotions. As we know in the present scenario proper
advertisements and promotions are very important for any company because people follow the
promotions and due to which the demands of the products like hair colour increases at a very
rapid rate. We can clearly understand the advertisement and the promotions of LOreal through
their media budget. LOreal has the twelfth largest media budget in the world which is much
more than the other companies of this field. For example in the late 1990s the expenditure of
LOreal advertising and promotion was jumped from the 37% to around 47% of the total amount
of sales. The global ad spending of LOreal was increased to $1.25 billion which was on par with
the company named as coca cola. The best thing about this company is that they have a separate
and very distinct policy of promotion in the market of US. Matrix is the number one brand of
LOreal in US and the main reason behind the success of matrix is the frequent and distinct
advertisement and promotion of the cosmetic and the hair products. The people of countries like
Canada like to use new products that mean they like changes in their product after some interval
of time. So by keeping this thing in mind LOreal uses the strategies of modifications which
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mean they modify their existing products according to the latest tastes and fashion of the local
people. According to latest surveys of the people of LOreal company, majority of the profits of
this company is because of US and these perfect strategies used by this company in US is the
reason behind this type of success specially in north American market. (Helping vulnerable
people)
3. LOreal in Africa, Orient and Pacific Region
Like other countries in the world LOreal is also very successful and equally famous in Africa
and pacific region. LOreal entered into the market of India in the year 1997 and at that there was
not much awareness about the sniff of structure in the industry of hairdressing. In the countries
like UAE and Australia, proper and the organized education was totally absent and perfect and
well trained hairdressers were also not present at that time. Despite of all these problems LOreal
in India made some of the strategies and one of the best strategies of LOreal is that they
launched various technical training centers and they even opened a club of only the hairdressers.
IN UAE, LOreal products which were professional began selling through parisienne salons
while the other companies have begun retailing their range of hair color to power growth.
LOreal uses a global marketing strategy of launching its successful brands all around the world.
For example in February of this year only, LOreal made an announcement of the arrival of the
matrix which is the number one brand of LOreal in US to India, UAE etc with a reason of
adding range of hair products to their existing products at affordable prices. The main thing
about this company is that they make strategies according to the local culture of different
countries and not uses the same strategies in every country. Because of all these strategies,
LOreal gains a huge profit from Europe every year. (L'Oreal's Global Branding Strategy)

4. China
If you compare LOral with its competitors, LOral entered the China market late. However,
compare LOrals growth in China and they are simply in a league of their own. Their sales in
China last year grew 27.7% year-over-year to 6.95M RMB (USD $1.02B) a double digit
growth in China for eight consecutive years (compared to a decline in sales in Western Europe
and North America in 2008).
LOral uses a multi-brand strategy to cover the mass market in China. The best way to describe
their diversified brands is that of a pyramid:
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At the base of the pyramid comprise of LOral Paris, Maybelline Garnier, and Mini-Nurse all
products that target the mass market.
Brands such as Vichy, Kerastase, and Matrix make up the middle of this pyramid. These products
are sold in pharmacies and hair salons meant for consumers looking for that mid-level quality of
products.
The very top of that pyramid is reserved strictly for the high-end products such as Lancome,
Biotherm, Shu Uemura, and Kiehls. These products are sold in retail outlets, high-end
department stores, and specialized boutiques.
Each level of LOral brand pyramid occupies a certain price area, which meets the needs of
Chinese consumers from a price sensitivity perspective namely due to the wide income gaps in
China.
Now beyond price, LOral products go through different tiers of sales channels including
supermarkets, pharmacies, hair salons, department stores, and specialized boutiques. Even
LOral brands have their own unique personality LOral Paris is a high-performance
technology brand, Maybelline New York is fashion driven, and Garnier is often characterized as
a natural brand. Diversity in products, branding, and sales distribution all contribute to LOrals
success in cornering the beauty and cosmetic market in China today.

Understanding of different cultural distinctions for international market

For L,Oreal knowledge of variant Culture is of great importance so as to make a company
acquire a firm base in the market of any country. In order to succeed it is very essential for a
company to understand the different cultural distinctions between the different cultures.
When an MNC explores any market for selling its specific services or product it has to focus
majorly on the purchasing power of the customers, their tastes and preferences , than only they
can succeed.
All marketing related activities and promotional strategies are designed taking into consideration
the Cultural Background of the particular region where the company is planning to launch its
products and the Services.
If any company fails to take into consideration any cultural aspect and the other related factors
that it might affect the company to stay for a longer time and would be thrown out of the market
and the region. Even the geographical factors plays a very important role that Loreal should take
into consideration in order to have feasible trade , as the landscape and conditions of transport
might differ in every region, which leads to decide whether to use air , road or any other mode.

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The same reward schemes, motivational methods, desired working environments, etc also cannot
be the same for different employees working for the company in the different nations and thus it
also needs the understanding of different aspects of the impacts of the cultural differences.
Proper analysis of the Macro and the Micro Environmental factors should be done in order to
study how much technological and economical and politically that country is sound in order to
carry out trade with them.
Whether its an Asian Market, European market, North American Market or the Pacific Region ,
everywhere the culture differs in terms of varied factors.
So it becomes the responsibility of the Company to do a proper scanning of these factors in order
to have their longer stay in the region so that they can attain a Top most Competitive position by
adapting to various regions cultural factors in their Global marketing Strategies.
Therefore the major things that should be kept in mind for LOreal while doing globalised
business is to form an effective global strategic team for defining the trading policies to work in
any country. The strategy of globalization should encompass of major factors like cultural
differences, economic policies of the country etc. moreover the varying lifestyles of the peoples
and the rapidly changing economies even should also be kept in mind.

STUDY OF 4 PS OF GARNIER
HAIR CARE PRODUCTS

Garnier Fructis Daily Care

Garnier Fructis Daily Care is fortified with Reinforced Active Fruit Concentrate - an
innovative combination of vitamins B3 and B6, fructose and glucose. Gentle enough for
everyday use, it nourishes, strengthens and smoothes each hair strand, keeping it
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balanced and healthy-looking. Hair is up to 5x stronger, up to 5x smoother and so much

shiner. The result: Great-looking hair that is anything but ordinary.

Garnier Fructis Color Shield

Garnier Fructis Color Shield is fortified with UV protestant and Reinforced Active Fruit
Concentrate - an innovative combination of vitamins B3 and B6, fructose and glucose. Specially
created to care for color-treated or highlighted hair, it penetrates inside the hair to moisturize and
strengthen it. With UV protestant, the formula helps keep your color-treated hair brilliant and
shiny on the outside. Hair is up to 5x stronger, up to 5x smoother and so much shinier, so color
looks brilliant longer.

Garnier Fructis Moisture Works

Drench your hair with moisture! Fortified with Reinforced Active Fruit Concentrate - an
innovative combination of vitamins B3 and B6, fructose and glucose - this creamy system helps
restore moisture in dull, brittle or dry hair. Moisture is replenished and brilliant shine returns.
Hair is up to 5 times stronger, up to 5 times smoother and so much shiny

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 Garnier Fructis Sleek & Shine

Can your frizzy, coarse, rebellious hair withstand even the most humid weather? Get the strength
to fight frizz with Garnier Fructis Sleek & Shine. It's specially created to smooth dry,
unmanageable hair and contains Nutritive Fruit Micro-Oils - an innovative combination of
apricot and avocado oils, and vitamins B3 and B6. Hair is 5x stronger, 5x smoother and so much
shinier. The result: Long-lasting frizz control for hair that's incredibly sleek, even with moisture
in the air.

Garnier Fructis Length & Strength

Impossibly long locks aren't impossible with Garnier Fructis Length & Strength! Stronger hair
grows even longer. It's the first anti-breakage system with Reinforced Active Fruit Concentrate an innovative combination of vitamins B3 and B6, fructose and glucose. Specially created for
hard-to-grow-long hair, this system reinforces hair, protecting it from breakage and split ends.
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Garnier Fructis Anti-Dandruff

Soothe your scalp! Created with Pyrithione Zinc and Active Fruit Concentrate - an innovative
combination of vitamins B3 and B6, fructose and glucose - this double-action formula is gentle
on your scalp, but ruthless on dandruff. It's a powerful force for healthy-looking hair and the
confidence that comes with it. It helps eliminate the symptoms of dandruff, effective with the
first wash, and makes your hair up to 3 times stronger! The result: No flakes guaranteed.

Garnier Fructis Strength & Repair

Garnier Fructis introduces the Strength & Repair System to help reverse the signs of damage in
one week, leaving hair intensely nourished, repaired from the inside out and more resistant to
breakage. The formulas with Nutritive Fruit Micro-Oils - a combination of apricot and avocado
oils - nourish hair, and Creamed Reconstruct or to help repair and fortify hair.

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PROMOTION
Garnier has been very active and upfront in adopting new promotional techniques to market its
products. The company follows a very popular technique to advertise and market its products
that is the 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 a 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
competitors' 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.
Off the Internet, viral marketing has been referred to as "word-of-mouth'', "creating a buzz'',
"leveraging the media'' and even "network marketing.'' It's a deceptively simple concept: Create a
message, 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 the concept is that where brands or brand ideas are exchanged within
communities, they are idea-led, not advertising-led. There are some high-profile viral success
stories. Like Hotmail. By simply sending an e-mail, consumers hawked the service because
every message contained a Hotmail ad that helped it grow to 12 million accounts in its first year,
way back in 1996. The 1999-hit film 'The Blair Witch Project' also benefited from a similar
contagion. On web sites and in chat rooms, the film's promoters hinted that the fictional tale was
really a documentary and let the bug run wild. In most cases, the consumers were bitten.

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When Garnier launched its Fructis shampoo, they latched on to the idea. 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 Fructis 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 76,000 consumers created their own knot on the braid and forwarded the link to more
than 82,000 of their friends, a survey report indicated. Viral marketers practice delayed
gratification. They may not profit today, or tomorrow, but if they can generate a groundswell of
interest from something free, they know they will profit soon and for the rest of their 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 and
young girls. This is very evident from Garnier ads be it for Garnier Fructis shampoos or for hair
color. In a recent advertisement of Garnier hair color, a daughter advises her mother to try the
product and thus makes an attempt to promote product among middle-aged women. Hence,
expanding the base of the target segment gives a whole new market to marketers, provided they
are successful in convincing the customers of the second-rung segment.

Companies need to be very strategic in presenting the product and its features to attract another
segment.
At the same time, companies need to be sensitive about the impact of targeting other segments on
the existing target segment. It may be damaging, especially, if in a process of expanding its
customer base, a premier brand is targeted at the aspiring middle-class also. In case of any
signals of lowering demand with the existing target group, companies should adopt line
extensions by bringing suitable changes in the products.

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Advertising and marketing specialists are aiming at young, urban Indian women, who are
earning their own money and are potential customers for a host of products, including namebrand clothes, cosmetics and new cars.

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, Indias 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 very particular about their hair these days, said Ruchi Khater, from
beneath a stack of silver foil at LOreals 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 color 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 prefer home remedies recommended by their mothers. Most still use hair oil 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 Indias 1.1 billion people they are not only alien but also an extravagance.
The solution for LOreal, the worlds 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 graduated. The sixmonth course turns out professionals capable of working as a junior in one of the select but
growing number of international-standard salons in Indias big cities.

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LOreals distribution network also plays a vital role. 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 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, LOreal Indias country manager, said. If you train people they will
use your 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 Rohra, 24, a former
model, got in. People did not know what a bad haircut was. My mothers 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 consumers are very demanding and
image is everything. They read glossy magazines such as Vogue, which launched an Indian
edition in September, and follow the changing fashions of their favourite celebrities.
Much like Britains tabloid fascination with David Beckhams changing hairstyles, the recent
decision by Mahendra Singh Dhoni, the 26-year-old captain 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 McKinsey to become the worlds
fifth-biggest consuming nation by 2025, has created a raft of opportunities for international
lifestyle brands.
Emerging markets such as India are driving the growth of the cosmetics industry. LOreal, which
uses Aishwarya Rai, the Bollywood star and former Miss World, as one of its international faces,
estimates there are 70 million potential consumers being created every year.
Its sales in India, where it is No 2 behind Unilever, are growing at 35 per cent a year. This year,
they are about 100 million (71 million).
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Although LOreals professional products division represents only 17 per cent of total revenues,
hair color was the Paris-based groups 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 50 million people.
Its rivals agree. Franck Provost, the beauty salon group, also has a hairdressing academy in
Bombay and Toni & Guy opened a salon this year.
Two thirds of the population is under 35: youth will drive growth. In the LOreal academy, it has
at least two new potential customers.
LOreal hopes that very soon it will be because they think theyre worth it.

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In India, advertisements for LOreal-branded products and the company's Garnier line generally
feature a pale model and focus on the ingredients in the product, using take-action language like
"YES to fairer and younger looking skin" or "Against inside cell damages."PRICE
The target segment for any product is that homogeneous group of people which is purported to
be the most potential customer for the product. The market follows the Pareto Principle, which
says that 80 per cent of the sales come from 20 per cent of the people. Thus, for any product, one
of the major tasks of marketers is to identify the group of 20 per cent that gives 80 per cent
revenue of that products sale to the company. No surprise then that major marketing efforts of
companies attempt to attract the most potential group. In the present stage of immense
competition, companies are required to effectively plan their pricing strategies to not only retain
current customers but to also expand the customer base by targeting new segments with an aim
to convert them into loyal customers.
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 (SKU's) it will be able to tide over the
steep pricing of its products.
Mr. Ashwin Rajgopal, Marketing Manager, L'Oreal Consumer Products, told Business Line that,
"We are looking at pricing in the Indian context and there is a kind of balance we have struck.
Considering the large number of SKU's that we already have worldwide, it is possible to market
the products at an almost comparable pricing."
Considering the company has set up its manufacturing facilities in Pune and has also been subcontracting its products, it has been easier for it to control its prices in the Indian market.
For aspiration products Garnier has adopted an international pricing strategy, which may not be
the case for the rest of the products. However there is no hard and fast rule
Besides, the company has also been customizing its products for the Indian market and there is
expected to be a blend of both international as well as Indian formulations for its products. For
instance its Garnier brand of Color Naturals is an `Indianite' product.
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L'Oreals innovations always start from its luxury brands then penetrate to the brands in different
price level and different markets eventually implemented in its consumer brands.

The

innovations based on the same technology platform will reduce the cost. The knack for L'Oreal
to create the advantages is to spread around strategic investment by sharing the production of
innovation between different product divisions. L'Oreal not only focuses on the single brand but
also pays attention to the technology relevancy in the series of brands. For example, L'Oreal first
introduced a break through anti-aging composite by using Lancme brand. Subsequently, it was
implemented in Vichy brand and brought into the consumer product division eventually. The
broad distribution channel of consumer products was used to promote this technology at last. In
term of same products in the different market, L'Oreal also exerts the technology platform to
meet the specific needs of consumers. From L'Oreals experiences, the core technology platform
is a key component to the success of an international company with complicated brand house.
Without leveraging the resources between brands, it will cause increase of operational cost and
waste of resources and will be very hard to manage the L'Oreals sophisticated brand
architecture. Other than building the brand structure according to the product identity, L'Oreal
relied on distribution channel to carry out its strategy of brand structure. There are four product
departments in L'Oreals structure. Every department has several brands and each brand has
many names. They are conspicuously different in packages and with distinct image and
advertising. The different brands share the resources of distribution channel and have high
integration effect on management. The luxury brands of LOreal are sold in strictly selected
distribution channel like department store, perfumeries and tax free shop. Professional products
are provided to the hairdressers. Active cosmetic products are sold in pharmacists. The most
important sector consumer products are distributed through mass consumption channel like
department store and supermarket.
L'Oreal has formed a brand matrix with great power of integration. Any new brand merged into
the relevant channel will fully utilize the resources in existing channel as well as expand
L'Oreals whole distribution channel by integrating its original channel. The dissemination of
brand will improve companys overall influential power.
L'Oreal recognized the leverage effect of it brand and focus its propagandas on brand rather than
propagandas on particular product. It is dedicated in building the relationship between its brand
21

and the market. It aims to enhance brand power by maintaining the good image in publicities.
L'Oreals efforts were also embodied on its marketing strategy. It always concentrates on
supporting those brands which can mostly represent its advantages and leverage resources to
those premium products.
Firms that aim to expand internationally or strengthen market position tend to acquire new brand
into the brand architecture. Acquiring influential and well positioned brand is an important
strategy of L'Oreal in developing its brand architecture. It achieves rapid growth by acquiring
brand in same or related business and is continually seeking these opportunities in the worldwide
scope. L'Oreal expanded its brand architecture by acquiring Maybelline brand in 1996, which
was a very successful transaction. The Maybellines image was enhanced by branded L'Oreal
while L'Oreal got complementary in its brand architecture. Recent years in Asia, it acquired the
third skincare brand Manicures in China and Japanese top luxury brand Shu Uemura. These
acquisitions represent L'Oreals ambition to Asian market. They have the same product business
with L'Oreal. In China the acquisition will enhance LOreals market position in skincare and
acquire distribution channels Manicures had. It is also a preparation for the future expansion in
the most fast-growing market China. By acquiring Shu Uemura, L'Oreal want to use this
Japanese brand to compete with SK-which was a competitor in the same level, in order to
meet the trend of prevalence of Japanese cosmetic brand in Asia. This is considered to be an
effective and cost-efficient strategy which is consistent with L'Oreals overall brand architecture

PLACE
To run a company in profit the place factor out of the 4ps of marketing mix plays a very crucial
role. This includes decisions about where to sell the product or concerns about where the
customers are, and how to get to them. It also includes the "channel of distribution" - meaning,
all the different middlemen a company use to get the product out to the customer. LOreal runs a
massive worldwide operation employing nearly 62,000 men and women of various races,
backgrounds and religions across nearly 60 countries. Part of the reason for the corporations
success has been its sensitivity not only to its consumers but also to each and every one of its
employees. The corporation has made sure that all their employees have opportunities to develop
themselves both personally and professionally. This commitment by the corporation to take care
22

of their own employees has resulted in LOreal being rated by the European business school
students as The Employer of Choice for the year 2006. With over a century of experience in the
cosmetics industry, LOreal has established 19 global brands and produces them in 40 factories
across the world. These factories are all state of the art and ISO 140001 certified and all of their
industrial sites are audited with the standard SA 8000 (LOreal Corporation). The corporation
makes sure that every product that rolls out from their factories complies with their own high
standards and meets or exceeds quality and safety standards set by local governmental agencies
such as the Food & Drug Administration of the United States of America. LOreals success in
the cosmetic industry is due not only to their high quality, but also to the corporations marketing
efforts to make sure their various brands have a strong market presence. In past 100 years that it
has expanded, it has supplied to 130 countries with offices in 58 different countries. To make its
presence feel in different parts of the world LOreal has acquired many different companies like
The Body Shop International plc, known as The Body Shop, which has over 2,000 stores in
more than 50 countries.

23

Relying on international ad campaigns:

Increasing its ad spend for the launch of its new products, L'Oreal has been relying more on its
international campaigns to make an impact in the Indian market. McCann Erickson in Mumbai
handles the L'Oreal and Maybelline account while Publics India is in charge of Garnier. "The ad
accounts have been aligned according to our international affiliations with these agencies and we
try to have a mix of both the Indian and international ads," says Mr. Rajgopal.
L'Oreal India currently has three brands in its consumer products portfolio and there are product
overlaps between its hair care, skin care and color cosmetics brands. Garnier, L'Oreal and
Maybelline have been defined by their price segments and positioning.

24

ANALYSIS OF INDIAN MARKET

Garnier being an important brand of LOreal in both hair care and skin care is available all round
the globe easily. In Indian market the hair care products of Garnier like Garnier Fructis, ultra
doux etc is available in both organized and unorganized retail shops in India. The high end skin
care products like Nutritionist are available only in selected retail outlets in country. In India
Garnier manufactures its products in Pune whereas its registered office is in Mumbai. To
popularize its product line LOreal has occupied brand corners in many big malls and retail
outlets in which garnier products get a major chunk. LOreal has tie ups with many big beauty
salons and parlors 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 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, LOral Indias country manager, said. If you train people they will use your
products. Its sales in India, where it is No 2 behind Unilever, are growing at 35 per cent a year.
This year, they are about 100 million (71 million). Although LOrals professional products
division represents only 17 per cent of total revenues, hair color was the Paris-based groups
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 50
million. Garnier products are easily available for sale on many websites in India.

25

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.

26

DATA ANALYSIS
TOTAL NUMBER OF WORKING AND NON WORKNG RESPONDENT

57%
WORKING

43%
NOT WORKING

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

30%
USE
70%

27

DONT USE

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 RESPONDENT

16%
USE
DONT USE

84%

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 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.

USAGE FREQUENCY AMONG WORKING RESPONDENTS

28

22%

9%
fortnightly
monthly
3months
70%

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 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.

29

6%3%
fortnightly
33%

monthly
3months
weekly

58%

AVAILABILITY OF GARNIER PRODUCTS

40
35
30
25
not working

20

working

15
10
5
0

every store

selective stores

nt available

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.

30

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

100%
80%
60%
40%
20%
0%

1
0

WORKING

20
15

15
14

NOT WORKING

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

31

35
30
25
20
15
10
5
0

WORKING
NOT WORKING

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.

PRODUCTS USAGE
28

Body Lotion

49

14

Moisturiser

63

73

Anti Wrinkle Cream 2

75

Dark Circle Removal Cream

23

Fairness Cream
Anti-Ageing Cream

54

3
20

Hair Color
Acne Removal Cream
Facewash

User

57

69
39

38
57

Shampoo & Conditioner

0%

Non-User

74

20%

20

40%

32

60%

80%

100%

Out of the 100 people surveyed, 77 answered that they use Garnier products. The chart above
depicts the usage of different products by these 77 people. Shampoo & conditioner is used by 57
people, Facewash by 39 people, Acne Removal Cream by 8 people, Hair Color by 20 people,
Anti-Ageing Cream by 3 people, Fairness Cream by 23 people, Anti Wrinkle Cream by 2 people,
Dark Circle Removal Cream by 4 people, Moisturiser by 14 people and Body Lotion by 28
people. This data suggests that Shampoos & Conditioner are the most popular of Garnier
products.

AWARENESS

Awareness
80
60
40
20
0

74

21

20

Awareness

Out of the 100 people surveyed, 77 answered that they use Garnier products. We gathered
information through our survey that how a respondent came to know about Garnier products. 74
respondents answered that they came to know about Garnier products 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.

33

Reasons for Not Using Garnier Products

1; 5% 3; 14%

Price
Not Effective

4; 18%

Happy with Current

Brand
Availability

14; 64%

Unawareness

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 not find 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.

34

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.
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.

35

RECOMMENDATIONS
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.
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.
Make the consumers aware of all the products other than its flagship products like
shampoo, conditioner, hair color, and face wash etc.
Improve upon online sales service in tier 1 and tier 2 cities taking the time constraint of
the customers in the picture.
It is still considered as a product for youth so it needs to target the people in the age group
of 35 and above.
As boys are also becoming looks conscious so the male beauty segment can be one area
of focus.

36

QUESTIONNAIRE
RESPONDENT PROFILE
Area of Residence:
Age

Gender

: Male____

Female____

Your monthly household income:

a) Below 10000
b) 10000-25000
1.

c) 25000-50000

You use Garnier products.

Regularly_____
Rarely _____

Sometimes____
Never
____

If No go to question number 10.

2.

If Yes, You use :

a) Hair Care Products

____

b) Skin Care Products

____

c) Both

____

3. You buy Garnier products:

Weekly

Fortnightly

Monthly

Once in 3 months

4. What product(s) of Garnier you purchase?

Shampoos & Conditioners

37

d) Above 50000

Face wash

Acne Removal Ointments

Serum

Gel

Mousse

Hair Colors

Anti ageing Cream

Fairness Cream

Anti Wrinkle Cream

Moisturizer

Body Lotion

Anti Dark Circle Cream

Any Other___________________

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

6.

Every store.

Selective stores.

Not available in your area.

The price you pay for the Garnier products is:

Highly overpriced

Slightly overpriced

Perfectly priced

Under priced

38

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

TV

Newspaper/Magazines

Word of Mouth

Internet

Any Other___________

8. How do you find Garnier products?

Highly satisfactory

Satisfactory

Not satisfactory.

10.A You do not use Garnier because of:

a) Price
b) Effectiveness
d) Availability

c) Happy with current brand

e) Unaware of the product

39

f) Any other reason__________

REFERENCES

1. www.garnier.com
2. www.equitymasters.com
3. www.managementparadise.com
4. www.hindubusinessline.com
5. www.LOreal.com
6. www.scribd.com
7. www.google.com

40