Hairdressing and Hair

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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 product’s sale to the company.

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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 L’Oreal 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 L’Oreal. In 2000 L’Oreal launched its range of cosmetics in to Indian market. The Indian Cosmetic and skin care market is estimated to be around $300 Million.

There are four product departments in L’Oreal’s 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 L’Oreal 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’Oreal’s whole distribution channel by integrating its original channel. The dissemination of brand will improve company’s 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 and the market. It aims to enhance brand power by maintaining the good image in publicities. L’Oreal’s 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

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