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M. Azhar 10312
M. Imran
10325
Khawer jalal
10357
Adeel Azam
10354
EXECUTIVE SUMMARY:
This marketing plan forms the basis for the introduction of an innovative new
follow for the achievement of the company’s strategic goals.”Hair& style” will be
marketed as a unique product and would maintain the company’s status as brand
leader in hair care industry. The marketing strategies will enable us to reach the
This product will not only satisfy the need of the unnerved market for easy to use
colorant and 2in1 formulation of shampoo and colorant, but also capture market as
Company Description
Garnier Fructis is experts in hair care and hair styling. The complete Fructis Style
range allows you to create head turning styles whatever your hair type or look and,
enriched with Fruit Micro-Waxes, it cares for your hair whilst styling. Constantly
innovating and creating new technologies for styling, Garnier offers a vast array
of creative products. Whether you're going for that 'not a strand out of place' look
to that ' just out of bed' looks, Fructis Style have the right product for you. Garnier
Hair & style will be a shampoo which would maintain hair color
along with strengthening and shining them, and will be positioned as only easy to
use hair colorant with long lasting effects, initially available in four most
its consumers to maintain their hair color upto six months, firstly one would have
to apply hair & style’s colorant application of one’s own choice and afterwards
with only use of shampoo (available in pack and also you can buy only shampoo
relevant to the color from market)can maintain hair color without any botheration.
Now there is no need to apply colorant and harm your hair time and again. So look
cosmetics products.
To serve style seekers with convenience and be the market leader with
Situational Analysis
Industry Analysis
Consumption: “U.S. retail dollar sales of hair care products amounted to over $6.2
billion in 2006, for a 4.3% improvement over the $6.0 billion posted for 2009.
During 2006-2010, the overall hair care market’s compound annual rate of growth
(CAGR) was a robust 4.2%. Total growth for the same four years was 17.9%, or
by shampoo, styling products, conditioners, accessories, and hair color, while the
two smallest categories, home permanent/relaxer kits and hair growth products,
both continued to lose ground. The overall U.S. hair care market is projected to be
worth nearly $7.5 billion at retail in 2006. That record sum will result from steady
growth of roughly 3% or 4% during each year of the period 2006 through 2010.
The compound annual growth rate (CAGR) for the time frame will be 3.7%.”
As evidenced in the brief summary from the Market Watch report, the size of the
US hair color market is a small portion of the overall hair products market – just a
accessories and hair color. With the above statistics in mind, the hair care coloring
segment was one of the most dynamic product categories in 2009 “as baby
boomers, gen X, gen Y women, as well as more men than ever before, is more
frequently experimenting with hair color. Coloring has generated some $1.4 billion
worth of business through food, drug and mass, according to IRI; primarily due to
new product introductions in the segment, such as Gamier's Lumia, L'Oreal's Open
and Clairol's Herbal Essences hair color, said Katie All, category manager at Longs
Drug Stores. "These products are targeted to a younger (18- to 24-year-old) first-
time user and appear to have hit their target by heavily advertising on MTV and in
print media directed [toward] the younger consumer," she reported.” Read “Multi-
recession, it seems retailers can still feel good about the future of the hair care
category. Worth more than $5.5 billion in food, drug and mass, according to data
from Information Resources Inc. for the 52 weeks ended July 15, many of the same
factors that have grown the business in the last several months--including a
consumer.
well into 2009.”… “If anything, when dollars get tight, consumers tend to forego
expenses such as salon visits, turning to mass market products that allow them to
affect the most current styles at home. Products such as White Rain's recently
restaged Toni Home Perm line and the continued emergence of new hair color
Brightening Color Creme and Clairol Herbal Essence, speak to this need for
Statistics from Information Resources for the 52 weeks ending July 1, 2009, show
Read “Fashion Driven Hair-care Category Stays Strong.” Drug Store News
(10/8/2009). Industry estimates placed U.S. salon hair coloring revenues at $10
billion out of a total of $46 billion in 2009. Read ‘New fashion of salon has
Subway as model.” Palm Beach Post.com (6/6/2008). The incidence of hair color
has been rising and is now at 50 percent," said Liz Read, senior director of hair
color marketing at Clairol. "Of those who color, 36 percent color their hair at
home."
Drug Store News (3/26/2009), L’Oreal’s casting color Spa brand for women “grew
over 40 percent in unit and dollar sales last year (2009), according to Information
Resources Inc. Read “Hair Color Garners Broader Customer Base,” by Barbara
White-Sax. Drug Store News (3/26/2009). “With annual sales of about $1.6 billion,
controls 50 percent.” Read “A Market to Dye For,” by Peter Healy. The Advocate
“By the year 2009, the hair color market is expected to increase to 55 million
Hair,” by Sara Cormeny. “2009 was marked by more innovation in hair color than
any other year of the past decade. But what really set 2009 apart from the prior
year was the target audience of the hair color category. Teens, males and working
women received most of the attention from suppliers, a shift from 2008's focus on
baby boomers.” Please see chart of 2009 Sales in Thousands for Top Hair Coloring
Brands in the article, “Expanding the Market for Hair Color,” by Andrea
Male Trends:
“Men’s hair coloring is one of the fastest growing segments of the hair-coloring
market.” Read “Hair Color Garners Broader Customer Base,” by Barbara White-
Sax. Drug Store News (3/26/2001) at “Trend-watcher Roger Selbert notes that men
have turned to hair color in response to a changing workplace, filled with young
colleagues and superiors, a growing number of whom are female. “In the past,
looking older and more experienced was a benefit,” says Selbert, who publishes
the Century City, California-based Growth Strategies newsletter. “Now, you have
to keep up with all the changes in technology and look vigorous and youthful to
color as a fashion statement. “L'Oreal has targeted that consumer specifically with
its four-SKU Feria for Men line, launched last year. Two new Feria For Men SKUs
are slated to be added to the line this spring….Last spring, L'Oreal introduced
Casting Color Spa for Men, a seven-SKU line of tone-on-tone color for men who
want to blend away their first signs of gray. Read “Hair Color Garners Broader
Profitability opportunity:
“Gray hair is increasingly passé in men’s hair fashions, and dye purveyors have
launched an advertising push to get the word out. Television and print ads aimed at
getting men to dye the gray out of their hair have tripled over the past decade, in
line with an explosion in sales of hair-coloring products for men. Those sales
soared to $129.3 million last year from $39.6 million in 1989, according to
estimates by market researchers A.C. Nielsen.And while dyed males are still
outnumbered about 10-1 by their female counterparts, they are narrowing the gap.
indicated they had either tried coloring their hair or were open to it….”There’s a
whole new generation right behind us that’s pushing real hard, so men want to stay
on top of their game,” says Dominic DeMain, senior vice president of U.S.
marketing for Combe.As a result, men’s sales have become the hottest segment in
the U.S.’s $1.3 billion a year hair coloring industry. According to officials of one
national drug retailer, which asked that their company’s name not be used, the
store space they devote to men’s hair dyes has grown to six 2-foot shelves from
two over the past decade. Stoking the interest is a barrage of product advertising,
which grew to $32 million last year from $10 million a decade ago, according to
Competitive Media Reporting. Read article from “The Wall Street Journal”
(1/17/2009) at thttp://www.salonclick.com/pages/itn_wsj1.html.
“Fashion statements aside, hair color have long been used to camouflage gray and
the majority of users are still using color for that reason alone”. L'Oreal's
Preference and Excellence held the top two brand spots within the category
followed by Clairol's Nice N Easy.” Read “Hair Color Garners Broader Customer
Base,” by Barbara White-Sax. Drug Store News (3/26/2009). "More men than ever
are eschewing gray, and for a variety of reasons. For example, according to a study
conducted via the internet by Colomer’s Just for Men in cooperation with National
Family Opinion Research, Inc. (NFO), non-gray-haired men are viewed as more
successful at dating than gray haired guys. The survey, “Great Dating,” was
conducted nationwide among 500 women ages 30-49 and 500 men ages 35-54.
In four out of five instances, photos of the same man in dark hair vs. gray hair
were selected by both men and women as appearing more attractive and
“datable.”
Even more interesting is the fact that of those surveyed, both men and women
alone. “Luckily for men, more than 57% of women surveyed also felt that it was
acceptable for men to color their gray hair. Nearly one-third of men stated that they
have made changes to their hair, including hairstyle and coloring, and an additional
15% said they would be willing to do so in the future. Read “A Man’s World: The
L'Oreal introduced Gray Chic in 2000.. The seven-SKU translucent color tone line
erases yellow tints and boosts natural gray. Always fashion forward, packaging
uses age-appropriate, but fashionable models. Read “Hair Color Garners Broader
Teen Trends:
“The biggest growth (in the hair color industry) is in the 13- to24-year old market.
Hair color is a way for teens to express themselves, and they are willing to
experiment. "Permanent hair color and products that offer special effects are
currently hot in the market," says Johnna Manca, vice president of global hair care
and hair color at Revlon. Young women “have shown an interest in very vibrant
color and in coloring effects. In fact, younger consumers have shifted to colors so
vibrant they are unnatural. For these consumers, color is about being noticed--not
Nutricolor Masque are all marketed specifically to younger consumers who want
bold and vibrant hues. Those new launches, which are ethnically diverse and
nongender specific, have been successful. In fact, L'Oreal's Feria was the fourth
most popular brand in the category last year. Read “Hair Color Garners Broader
teens love to go to extremes with vibrant, unnatural hair colors. Some excerpt from
Cormery follow:
Moffitt, spokeswoman for L'Oreal. Teenagers see hair color as "an accessory," she
says, using bright funky colors "more and more." "Hair color has become
something you can change as easy as lipstick."…. John Robert Dale is a manager
semi-permanent hair dyes, all in extreme shades with names like Vampire Red and
Lagoon Blue…Girls are buying purple and red dyes, says Dale, and boys prefer the
greens and yellows. Brands like Manic Panic and Punky Colours are the most
popular. "A lot of people are doing assorted colors on the head," says Dale, putting
in large stripes of two or more different colors…..For many teenagers, high school
is a time with different pressures than those of adults. TJ, age 16 dyes his hair
white-blond. He says that he can experiment now, because he won't later. "Now is
my leisure time.If I went for a job with colored hair, they'd look at me and laugh."
He plans one day to put on a suit and go to work. "Conformity will always be
there," he says. "I will conform one day when it is time...conformity is a part of life
their 20s and 30s. "The launch will include three new iridescent blonde shades that
have a pink undertone and some true red tones that are very vibrant," said Read.
The no-ammonia formula and Herbal Essences' fragrance should play well among
shades are a big trend this spring. "With celebrities such as Sarah Jessica Parker
going blonde, we see a trend toward the light to dark blonde shades," said Tom
blonde with easy-to-use home blending/lightening kits such as the new Nutrisse
Lightening kit we are launching in June." L'Oreal will add three new blonde shades
in its new Feria Iridescente line extension this spring. Read “Hair Color Garners
Strengths Weaknesses
Brand strength Reliant upon line extensions
categories
COMPETITION:
Revelon, 10%
Polycolor,10
Redken 6%,
keune25% ,
Competition analysis
colour
Wella 235 Contains vit c to
strengthen hair
Polycolor 89 Long lasting colour
Redken 580 Long lasting and vit c
keune 300
LO’real 399 Long lasting colour
Revelon 250 Ammonia free
Target Market
Segment Identification:
Hair & style (hair color maintaining shampoo) is to established in hair care product
Segment needs:
This product will serve its consumers with convenience of managing their hair
color, hair color is becoming part of our live rapidly day by day, This product will
Segment trends:
“The biggest growth (in the hair color industry) is in the 13- to24-year old
market…Hair color is a way for teens to express themselves, and they are willing
to experiment. "Permanent hair color and products that offer special effects are
currently hot in the market," says Johnna Manca, vice president of global hair care
“U.S. retail dollar sales of hair care products amounted to over $6.2 billion in
2006, for a 4.3% improvement over the $6.0 billion posted for 2009. During 2006-
2010, the overall hair care market’s compound annual rate of growth (CAGR) was
a robust 4.2%. Total growth for the same four years was 17.9%, or $942.0 million.
DIMENSIONS ES
Geographic Region United states of America (All States ) with emphasis on
segmentation
urban/ metropolitan areas, and adapted strategies for all
geographical groups
Population USA Total: 315,534,716
Density Urban, suburban
Climate All (East, west)
Demographic Age 13to upwards
Gender Male-female
segmentation Income All over $20,000
Occupation All (young and old, teen)
Education All
Race All: Asian, Black, White, Native, other with adapted strategy
color.
Easy to afford.
Usage rate Daily basis, weekly basis
User status Regular user of dyers
Positioning strategy:
The only shampoo available in the market maintains hair color, with its unique
formulation. Beautiful and attractive packing, with premium price and high
quality. Available in attractive colors. Now it’s easy to and maintains your hair
color and shine with Garnier Naturals “Hair &style” colorant and shampoo.
Conclusion:
Based on analysis above, Hair& style would not only become a profitable product
but also it would lead hair care market with its unique formulation and easy to
to its consumers but also would become a high profitable product for the company.
Marketing objectives:
Superior University Lahore Page 19
Marketing Plan
The objective of the marketing plan is strategically centring around four criteria:
maximum market share in hair care industry, and to become one of the best market
Marketing program:
Product strategy
Hair and style is a product available in attractive packing easy to use and maintain
Branding : colorful in bottle and tube (attractive packing) prominent hair and
style logo and beautiful graphics, attractive phrases “look stylish ever with
hair & style” “maintaining hair color was not so easy before”
Brand personality: attractive easy to use , healthy hair, high quality, natural,
modern.
Brand equity: Garnier always provides high quality and natural products for
before”
Promotion strategy:
Objectives:
To create strong avarness about this new launch of hair & style shampoo +
To secure maximum market share over top colorant brand leader product
competitors.
Message:
The promotional strategies will convey a clear message that “hair & style” is
a product for all age group mostly for the people who cares for their social
lives.
The promotion would also make it clear in the mind of people that “hair &
style” is the only easy to use product which not only maintain long lasting
hair color and gives you a beautiful and attractive look but also strengthen
Concepts:
“Be gorgeous”
Media selection:
Output Examples
Television M TV, AXN, MUCH MUSIC, VRAK TV, FASHION TV, STAR WORLD,HBO.
Radio Almost all channels , FM(Almost all channels)
Magazines Leading fashion magazines.
Internet Chetoos and banners on selected fashion and cosmetic websites.
Outdoors Bill boards, Streamers, Sign boards, Buntings(in selected areas)
Others T-shirts, key chains, pen, diaries.
Personal Direct contact with retailers.
selling
Public Organize and sponsor different event and activities.
relations
Publicity Print and online mediums.
It is very important to analyze generation and age group to whom you are going to
launch a product. After analyzing age groups and activities of expected consumers
time that is often called multitasking. We realize that all groups of consumers
doesn’t give their full attention to one single message thorough single media, so
“Pricing”
Pricing is that factor which gives us revenue and while other three marketing mix
(other three Ps) Product, Place, and Promotion become cause in increasing cost and
expenditures of firm and firms set their prices by considering these three ps.
“Pricing is the amount which people pay for a product or services for fulfilling
their needs and requirements. They also exchange values with producer against
Hair and style is a new product of Garnier in USA market. Garnier prefers its
customer needs and values and provides products which fulfill the customer’s
needs. In this product “Hair & style” Garnier is setting its price by considering its
cost. As Hair and style is a new product with a lot features and with new
technology that’s why its manufacturing cost is high and because of its cost the
price of hair and style is somehow high but it is a first time cost for the customer
because there are not any extra charges for shampoo. The price also covers the
Garnier is determining both internal and external factors for setting the price of
Internal Factors;
Marketing Objective;
we are determined to provide the best quality and set the price to increase initial
profit and increase revenue and lead the market by achieving “Market Share
Leadership.”
As the marketer of Garnier we are setting its price with the coordination of other
Advertising Cost;
As our product is new in the market and it’s a business product so, our main
objective is to convey our clear massage of hair and style to targeted audience. We,
being the marketer of Garnier will aggressively advertise our product to educate
our target audience especially our main focus is on young and fashionable class. So
keeping this element as our key consideration, our communication cost will be a
As Garnier is going to launch its new product, we researched and designed this
new formulation for the convenience of our customers. As Garnier claims for
natural products it is very difficult to maintain quality and be natural and effects
cost. So its designing and manufacturing cost factor will be relatively high and
Organization Consideration;
The price of Garnier hair and style will be set by the top management and the
External Factors;
Garnier has monopoly in the market for his natural products because Garnier is
introducing first time a easy to use shampoo which will maintain hair color along
with strengthening and shining them, and has no competition in the market.
Demand;
By our analysis and research we observe that Gasrnier has a great demand in all
over the world’s market because of its natural hair care and skin care products and
this modern world has a great demand of such a new and innovative product.
“A New Hair Color Segment is born: a low ammonia permanent hair color” at to
see Loreal’s response to consumer desire for hair color which closely matches their
Macro environment has a great influence on any market. So we will set the price of
Garnier hair and style by consider the macro and micro environment such as
Government policies and laws about pricing, inflation, political situation, and
Economic Environment;
As our product is a business product that’s why we highly concern with the
economic condition because it has a great effect on our cost and our buyer
Cost-Based Price;
The pricing decisions of our product are cost based because as we explain earlier
that the overall cost of Garnier hair and style is a bit high that’s why we initially
charging the high price to cover our cost but we also providing a good quality
product and different facility to fulfill our customer’s needs. Our high price has no
effect on our customers because today, according to the research and analysis
steated above by leading organizations and market researchers hair color market
We set high price for our product to increase our initial profit and revenue to cover
its high cost and we observe from our market analysis that our target audiences are
also willing to pay high price. We set this high price under some conditions. As
Garnier has good image in our customer’s mind that’s why we are providing a high
quality natural product and giving different facilities to our customers, and they
provide a great support to its high price and Garnier hair and style has monopoly in
the market for some future years, competition entry is not possible and not easy to
Garnier hair and style is the combination of three major things (like semi-
permanent hair color with fortifying fruit complex to make hair not only strong
shine but also maintain color of hai) which is called its captive product, and the
price of captive products is high when customer wants to purchase them separately.
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