Entry Strategies For Indian Market

Ultra Doux Shampoos

Masstige product under the brand name Garnier Combination of low cost and natural ingredients Price at 15% premium of their nearest competitor

Positioned as a superior alternative to Conditioner Shampoo and provided excellent performance Ultra Doux Contributed to 30% of sales value of entire Ultra Doux Range of products Conditioners

Excellence Hair Colorants

Breakthrough product which was a result of strong gap analysis Its patented polymers provided superior performance The do-it-yourself kit provided an easy way to apply the color

Entry Strategies For Indian Market (Contd..)

Promotion

Positioned as a premium product; targeted at

upper middle class and was sold only in Metropolitan Cities Newspapers (For target marketing) and Magazines as medium for advertising Developed professional salon training centers in Delhi and later expanded to Mumbai

Evolution of Marketing Strategy 91-98

Focus on Quality & Credibility

Color Centers Beauty Advisors

Special Dispenser Unit Choose shades of Excellence

1998

Merchandising Distinguishable Shelves

Customer Advisory Cell Print Advertising, P-O-Sales material sampling
1991
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Marketing Mix

Product
Ultra Doux Shampoo and Conditioner

Price
Priced above average Differential pricing between signatures

Place
Consumer division & Salon segment

Promoti on Print media

used over television

Excellence Hair Colorant

Perfume and beauty division

Merchandising

Synergie Signature Brand

L'Oreal Paris people willing to pay more Laboratories Garnier entry level, accessible

Active cosmetics division

Beauty advisors

Success factors for Excellence range of colorants

Gap Analysis

Identified the Gaps in the current products prevalent in the market. Ammonia Based Dyes dried and damaged hair; Henna faded out; Messy to apply; Provided limited color choices

Target Customers

Targeted only Sec-A segment of customers; Positioned as a high-end luxury Product

Performance & Variety

Excellence, with patented polymers, not only covered gray hair, but also gave a long lasting natural look. Provided 9 color choices Developed training centers in Mumbai to train beauticians to use Loreal products. Created a strong professional salon network

Professional Network

Current Turnover
Shampoo
Ultra Doux has 1% of Urban market which is 75% of total shampoo market of Rs5500 million Rs 41.25 million

Hair Colourant
20,000 units per month @ Rs250 per pack Rs 60 million

Skin Care
Contributes to over 50% of companys turnover Rs 101.25 million

Total turnover of Rs200 million in 1997

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Shampoo Target Customer Segment

A 12% B, C 28%

LOreals Current focus

Expand towards the next segment

D, E 53%
Socio-Economic classification, India Urban

Goal: Rs 1 billion by 2000

Shampoo
Introduce Sachets with a new brand to target rural and lower middle class in urban. Market this brand as natural to target this segment Increase distribution channels** Potential to reach Rs500 million assuming a 5% market share**

Hair Colourant
Expected to reach 1 million units in 1999 reaching Rs250 million revenue Go to the other metros to reach more customers and open training centres in these cities Extend the brand to cater to men and market through saloons, newspapers etc

Skin Care
Assuming a modest 30% market growth (compared to 125% growth in 1997), turnover would reach Rs220 million by 2000 Keep it as a premium product targeting SEC-A
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