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A MARKET REPORT ON

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INTRODUCTIONy In the early 1990s with the entry of

L'Oreal and hair colours. The hair colour market became one of the fastest growing segments in 1998.

y Today, if there are more brands in

the Indian market, its largely due to demand. India, it was largely to cover grey hair. youth in the country, it has become a fashion statement, especially with the young and trendy.

y When hair colours first came to

y But with the increasing number of

INTRODUCTIONy Hair colours were traditionally aimed

at the 15-45 age female segment.

y But market research shows that there

was a growing population of 15-45 males which patronised the category in a big way. culture that places an emphasis on young male employees looking smart and trendy. to modify existing products, launch new products and target different geographic segments and agegroups.

y This is because of the corporate

y Thats why all the players have plans

INTRODUCTIONy In 2005 the total hair colour industry

in India is around Rs 650 crore. y This is further divided into two segments. The Rs 450 crore retail segment, which is growing at a 20 per cent clip annually (2005).y According to market

research Godrejs market share at 40 per cent, followed by LOreal at 15 per cent and Revlon at 8 per cent(2005).y Rest of the brands make up the

remaining 37 per cent(2005).

INTRODUCTIONy The size of the hair colour

market in 2009 was Rs 1,100 crore and currently growing at 14 per cent year-on-year.the men's hair grooming and styling segment estimates the men's hair grooming and styling segment to be a Rs 1250 million market. Ahmedabad March 10, 2010,

y Godrej Sara Lee, which operates in

y Chitra Unnithan / Mumbai/

L'Oraly LOreal made its debut in India in 1991

with the launch of Ultra Doux shampoo from Laboratories Garnier. Group to launch the Ultra Doux range of hair-care products. Encouraged by the acceptance its brand received in India, L'Oral seized the opportunity to break the JV and form its own subsidiary in 1994. introduced its LOreal Excellence line of hair colour in 1997 The first time a company introduced the concept of hair colour other than black in the country.

y L'Oral formed a joint venture with MJ

y LOreal expanded rapidly since it

L'Oraly

A company known for consistently launching new products every few years, French cosmetics major L'Oral recorded a turnover of Rs 600 crore (Rs 6 billion), and a growth of nearly 40 per cent, in India in 2007.

One of the most important factors that worked for L'Oral is its high spend on advertising. Globally, L'Oral spends 30.7 per cent of its worldwide turnover on advertising and promotion and 3 per cent on research and development. y In India, it is the fifth largest media spender in the industry. y L'Oral operates in India through four main divisions:consumer products, professional products, active cosmetics and luxury products. y The biggest contributor to its revenue in India is the consumer products division led by its strongest brand in terms of sales - Garnier.y

Marketing Strategyy

According to Mr Alian Evrard, zone director, Asia-Orient-Pacific, LOreal, a simple strategy. Introduce new, different and better products, and added, we strongly believe that its never too late to enter a market if you have new, different and better products(2002). According to Mr. Dinesh Dayal, Chief Operating Officer "We have deployed a judicious blend of global and local methods of advertising to appeal to the Indian consumer,. The Indian consumer is not as price conscious as it is often portrayed to be. Our brands were more expensive than an average fast moving consumer good (FMCG) here, yet we found a market because we were offering the right value for money," says Dayal.

y

y

Godrej

Godrej was the leader in the hair dye business for over two decades (1976 - mid 90s) with virtually no competition to its dominance in the Hair Dye market. The brand enjoyed a steady, albeit slow growth penetrating 4-5% of the all adult segment(2002). y In 2005, while Godrej is largely mass-based, selling its Colour Soft and Renew brands at Rs 99 and Rs 65 respectively. y Godrej Consumer Products Ltd has seen a 17 per cent growth in the hair colour category during the quarter ended December 2009. y Godrej hair colours are available under the brands Godrej Kali Mehndi, Godrej Expert, Renew Cream Hair Colour, Kesh Kala and Colour Soft.y

Godrejy For GCPL, hair colour is the

second biggest business for the company making up 23 per cent of its net sales in the last financial year. y Also being one of the most inflation-resistant categories in the fast moving consumer goods sector, GCPL plans to launch more products periodically in this space in the coming months, said Press.

Godrej

y The powder hair dyes, make up 50

per cent of the Rs 580 crore hair colour market in India. However, in terms of volumes it makes up an even greater share of 75 per cent of the total market, said GCPL.y The rest of the market is made up

of cream based hair colourants, which are catching up fast among the affluent consumers.

Godrej GCPL is still the market

leader in the overall category with a share of 35.2 per cent. Although its share has gone down in the last six years from 43.9 per cent in 2002 as many players both global and local have entered the Indian market.

Market strategy of GCPLy Mainly television and a few press ads led the launch. The

launch TVC focussed on the fact that Colour Soft was a breakthrough product especially formulated for Indian hair. Stylish in their execution, the commercials were run on mainline TV channels like Star, Sony and Zee TV. Thus the target group (25+year-old, SEC A/B women) was effectively reached(2002).

y "Premium is not the big focus area for GCPL right now,. y The primary focus is to increase penetration of existing

products in rural and semi-urban areas.

Revlon

y Targeting the mass segment for driving

volumes, Modi Revlon plans to push its hair colour brands harder in the market. It plans to introduce Indiaspecific hair colour brands in the future.

y The company has brands such as

Colour Silk and Colour Stay, which span all price strata in the hair colour market. packet, will be available in six shades - Natural Black, Brown Black, Medium Brown, Darkest Brown, Burgundy and Light Brown.

y Color N Care, priced at Rs 120 per

Revlon

y

The Rs 100-crore Modi Revlon started making profits last year and has been growing at 25 per cent for the past three years.

The company has set aside 15 per cent of its total turnover as its ad budget. It has been releasing ads from its international catalogue and has not aappointed an advertising agency in the country. y 10 per cent market share in the first year. y Modi Revlon, a 74:26 joint venture between Modi Mundi Pharma and the USbased cosmetics giant. y Modi Revlon claims a market share of 41 per cent share of premium/mass premium segment as per Euromonitor data for 2006, placing it ahead of its competitors.y

Marketing Strategyy

"We have a two-phased roll out plan for the brand to build up our position in the mass market hair colour segment. While the first year, we only plan to educate consumers about the benefits of the product, the second year on, we will break onto the marketing scene with a 360degree approach," said Mr Deepak Bhandari, Director-Marketing, Modi Revlon(2007). "But due to the growing consumer base and demand for the segment in the country, we decided to launch a brand that was specific to the wants of Indian women" ., On marketing initiatives, the company plans various below-the-line activities and use the print medium to promote the product, while in the second year, the campaigns will be expanded to television campaigns.

y

y

Marketing Strategy

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The company also plans to add 25,000 outlets to its existing 25,000 distribution outlets to build upon its mass products portfolio. The total ad spends for Color N Care will be Rs 5 crore for 2007-08. Mr. Deepak Bhandari said, "Revlon's core area is colour cosmetics and we will continue to have innovations to develop the category in India. We are concentrating on 3 Ps i.e. product innovation, pricing and penetration at this juncture to increase our foothold / strengthen our position amongst the consumers.

y

y

y

Wella

y Wella India, a division of

Wella AG Germany, is the premier name in professional hair cosmetics & pioneer of innovation and trend spotting.y High-Quality, High-

Performance and HighFashion are three of the key reasons why Wella Professionals and its products are preferred by the world's most renowned hairdressers.

Wella

y P&G India now plans to enter

the Rs 1000 crore hair colour market and will also get into the premium end of shampoo segment through this brand(2009).

y According to Hyacinth

DSouza, Friseur Service Manager, Wella India, the advantage with P&G is that Wella already has a brand recall and awareness in the market, thanks to the grey market and salons.

Marketing Strategyy The company has plans

to partner with leading Indian hair dressers to provide them with backup and support systems such as the latest techniques in hair colouring and straightening, among other things.

Garnier

y In the hair colour segment, Garnier

operates in the mid-price and luxury segment. This has enabled it to garner a 20 per cent share in a market domin

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