Garnier Market Research

2 February 2017

Our research has been aimed at understanding the market share of Garnier within the L’Oreal 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 P’s of marketing in relation to this product and the marketing strategies that have been adopted by L’Oreal, essentially Garnier from time to time. *The stress however has been on the out of all the four P’s and on the consumer behaviour and their perception towards the brand. *We have also focused on the current leading competitors of L’Oreal-Garnier and conducted a brief study on their marketing strategies. ? Product Description Garnier is a brand that epitomizes smart marketing practice.

Garnier Market Research Essay Example

This is a brand that came to India in 1991 and crafted a special place for itself in the Indian market. This is one global brand which has understood the dynamics of Indian market. Garnier came to India with its Ultra Doux range of shampoos. The brand is a mass market brand from L’Oreal which has a range of global premium personal care brands like Maybelline, Ralph Lauren, Diesel, Vichy etc. L’Oreal started its operations as a joint venture with MJ Group. Later in 1994, the company started its own operations. All through these years, Garnier had a very consistent marketing approach.

What we liked about this brand was the kind of investment that it had put in for marketing activities. Of course all these happened because it had the support of its parent company. Garnier can be considered as a mass 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. Globally L’Oreal is a company that is famous for its product innovation. Garnier too has built its brand by launching new products on a regular basis. A strategy based on product innovation works best for a brand like Garnier.

When the consumer sees regular new product flow from the brand, it creates a sense of excitement with in the consumer which will prompt her to stick to this brand. Garnier was the first brand to introduce a cream based hair colouring solution. Garnier is now present in a diverse range of personal care product categories. It is present in the hair-care and skin-care segments The brand has two sub-brands: Garnier Fructis and Garnier Ultra Doux. Fructis is an interesting sub-brand which has clicked in the Indian market because of its positioning as a fruit based product.

Consumers readily embraced this variant because it made sense to depend on a natural shampoo rather than chemical based one. Garnier is positioned as a nature- based (green) innovative personal care brand which takes care of your skin. The brand has a very catchy tagline “Take Care”. Garnier’s positioning strategy is more product based in the sense that it has tried to emphasis individual product properties rather than a common brand image. Most of its commercials are emphasizing on product strengths and innovation. The brand is an example of the success of rational product based advertising success.

The brand is also sending a message that Indian consumers are also influenced by rational messages and product innovations rather than mindless emotional blah-blahs. Another interesting marketing strategy adopted by Garnier is its advertising execution. True to its global parentage, Garnier was careful in its advertising theme. It uses a blend of foreign and Indian models and themes for its campaign. Garnier ads can be termed as localized international advertising which has a global touch but does not appear alien to Indian realities.

The brand uses a careful blend of celebrities and models in their campaigns without relying much on their individual persona. Their products are always the stars in their campaigns. 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 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 is 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 the steady stream 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. ? Hair care market analysis Evaluation of shampoos in India The shampoo market in India is valued at Rs. 4. 5 bn with the penetration level at 13% only. The market is expected to increase due to lower duties and aggressive marketing by players Shampoo is also available in a sachet, which is affordable and makes upto 40% of the total shampoo sale.

The Indian shampoo market is characterised by a twin-benefit platform: cosmetic and anti-dandruff. It is basically an upper middle class product, as more than 50% of the consumers use ordinary toilet soap for washing hair. While the awareness level is high, the penetration level is very low even in the metros where it is only 30%. Urban markets account for 80% of the total shampoo market. The penetration level is rapidly increasing due to decline in excise duty, which was 120% in 1993 to 30% currently. Shampoo in India was derived from the Hindi word champi meaning hair massage.

The introduction of shampoo in India dates back to the British reign in the country. Being a recent development the growth of shampoo or rather the penetration levels of shampoo in the India has been commendable. The shampoo market in India is estimated to be 2,500-3,000 crore. The shampoo market is India is categorized according to the benefits they provide. Mostly consisting of three kinds of shampoos cosmetic, herbal and anti-dandruff, the shampoo market in India has managed to tap users of the various segments according to their requirements and preferences.

Due to the continuous efforts of the top shampoo brands in India penetration of shampoos in urban areas is almost 100%. As far as penetration of shampoo in the rural areas is concerned it has risen by almost 18% in the current scenario. ? Current scenario of shampoo market The top shampoo brands in India include Sunsilk, Clinic Plus, Dove and Pantene. The company that leads the shampoo market in India is Hindustan Unilever Limited. The top three most sought after brands Sunsilk, Dove and Clinic are produced by HUL.

The company holds a 44% market share in the Indian shampoo industry. It is said that HUL earns almost 8% of its revenue from the sale of these products. The other recent brand that has taken the Indian personal care industry by storm is Pantene. Since its very inception the brand was a best seller. A product of FMCG giants Proctor and Gamble Pantene has slowly and steadily managed to capture quite a large amount of the Indian market. Proctor and Gamble the second top shampoo brand in India holds a market share of around 25% in the Indian shampoo industry.

The revenue earned from the sale of shampoos from Proctor and gamble is almost 17%. Together these two major players constitute a major part of the Indian shampoo industry. Both these players with their numerous brands dominating the Indian shampoo market are continuously trying to outdo one another by introducing different marketing schemes. Be it in the form of price cuts, discounts or increasing the size of the shampoo sachets without any extra costs these two to shampoo producing companies are at a continuous price war. Top Shampoo Brands in India.

Core Benefit or Service: the core benefit of Garnier Fructis Shampoo is the Hair care product it provides to the market. 2. Actual or Tangible Product: Garnier Fructis Shampoo attaches some tangible accessories with its product like the Packaging which is in green colour, Features it provides, the Styling it has, the level of Quality it provides to the consumers and finally the Brand Image it carries all over the world. 3. Augmented Product: Garnier Fructis Shampoo does not include any of the augmented services like installation, Delivery and credit, After Sale services and any warranty.

Price The pricing strategy that it uses is the price skimming but not to a large margin from the other competitors. Garnier Fructis Shampoo uses this strategy because the company mission entitles that they do not compromise on any quality, and because of this reason the doctors recommend Garnier Fructis Shampoo for medical purpose. The prices that are incorporated are RS. 235 for 250 ml and RS. 375 for 400 ml. These are the nominal prices which are used for the shampoo bottles. Place Garnier Fructis Shampoo is found in all major regions of India.

These include Ahmedabad, Agra, Amritsar, Bangalore, Bhopal, Chandigarh, Chennai, Coimbatore, Delhi, Hyderabad, Indore, Jaipur, Jalandhar, Jodhpur, Kolkata, Ludhiana, Mumbai, Nagpur, Nashik, Pune, Raipur, Rajkot, Ratlam, Surat, Vadodara, Ujjain and urban areas attached to these cities. As Garnier Fructis Shampoo is imported from US it follows a channel of distribution. It is not manufactured in India therefore it is firstly in hands with the imported then it follows through the whole sale, then the distributor distributes to the retailer and finally it reaches the end consumer.

Importer -> Wholesaler -> Distributor -> Retailer -> End Consumer Promotion Garnier Fructis Shampoo uses various forms of promotion. These include: • Advertising: Garnier Fructis shampoo uses advertising as a promotional tool to enhance its sale. It advertises through TV commercials during prime times all day long to create awareness about its product line it offers to the consumers. It also uses print media as a mode of advertising, which includes Newspapers Articles which explain the effectiveness of the shampoo and print ads.

It also uses Magazines as a form of print Ads to motivate consumers about its existence. Billboards are also used around the city as a form of advertising. These are some of the ways Garnier Fructis Shampoo uses to advertise its product. • Sales Promotions: Sales promotion is a very effective way of motivating consumers to buy the certain product. Garnier Fructis Shampoo uses point of sale promotion to expand its sales. A counter or rack of shampoo is available where Garnier Fructis Shampoo are displayed. The consumer is attracted by the colour and the shape of the bottle in which it is displayed in.

Hence by recalling the advertising of the product which is seen motivates the consumer in buying the product. Another way of sales promotion that is used is the discount offer it gives. These offers force consumers to buy the product because it is available in some kind of offer. • Public Relation: Garnier Fructis Shampoo is also into the Public Relation tool of advertising which includes sponsorships and workshops. Garnier Fructis Shampoo sponsors various events which are seen on TV like concerts, seminars and many other activities which help them gain recognition through the help of media.

Blogs, forums, online presence The overall marketing strategy followed by Garnier is upto the mark, however they should bring more creative approach to their marketing strategy. They should target the rural and newly developed areas and have sachets and bottles with different pricing to reach out to a larger customer base. They also need to increase the awareness among people for the use of shampoo. They should also promote Garnier Hair Care products in L’Oreal salons. Samples of Garnier products should be offered in parlour to attract new customers and retain the old ones.

Another approach could be via online ads, start blogs and forums where customers can share their experiences with the product. Vertical marketing should be incorporated where complementary products should be introduced also they can club various products like conditioners hair gels etc. in one pack as done by other competitors like Dove, Pantene etc. Since research is their strong and highly developed area, they should have online one to one consulting addressing customer’s problems.

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