Estimate the market potential for FIBREPLEX by

Schwarzkopf@ Henkel, Kolkata.

Presented By:Abhishek Kumar

15397001

Under the guidance of Dr. Uma

Chandrasekaran Associate Professor

Department of Management StudiesSchool of ManagementPondicherry University.

Mr. Debraj DuttaRegional Sales Manager (East

India)Henkel Adhesive Technologies

Kolkata, India.

“To estimate the demand for

FIBREPLEX post launch in Ranchi.”To meet the above objective the following were important as well:

Estimating the potential of clients based on their permanent Full Time Hair Stylist (FTS).

Checking the presence of Schwarzkopf in salons and beauty parlours of Ranchi city.

Analysing the competition in Salons and Beauty Parlours w.r.t Schwarzkopf.

Observing the buying behaviour of salons and parlours.

Research Objective

Ansoff’s Product Market

Matrix

Research Type: Descriptive (Survey method) Sampling: Population of 20. Scope of the study:

A rough estimate of demand for FIBREPLEX post launch. May help the marketing team to know the last mile

strategy. Limitations of the Study:

Accepted sample :18. Inadequate information in some cases because of lack

of interest of Salon owners. The responses are completely based on the perception

of Salon owners.

Research Methodology

Sources of Data Collection:

Primary: Questionnaire and Personal Interview with different Salon owners.

Secondary: Internet, books, and company reports.

Analysis Tool: Percentage Analysis

Presentation Aids: Graphs (Pie and Bar Charts)

Data Analysis

To estimate the demand

of FIBERPLEX post launch.

Q. Have you ever heard of the

FIBREPLEX hair treatment solution?

So I was asked to explain the salon owners about Fibreplex Hair Treatment Solution and create awareness amongst them.

Yes; 3; 17%

No; 15; 83%

YesNo

Q. Are you willing to keep this FIBREPLEX at your Salon after

launch?

Yes; 16; 89%

No; 2; 11%

YesNo

Less than 10 ; 11; 69%

11 to 15; 2; 13%

More than 20; 3; 19%

Q. If yes, how many units do you think you can serve on an average

in a month?

Estimating the potential of clients

based on their permanent Full Time Hair Stylist (FTS).

Q. What is the average number of customers’ footfall per day?

Less than 15; 9; 50%15 - 30; 6;

33%

30-45; 2; 11%

More than 45; 1; 6%

Reasons: Untapped

Market. Unawareness

.

If a salon pays an FTS Rs.25000/- p.m.

Þ Owner generates 5 to 6 times revenue Þ 1.25 to 1.5 lakhs per FTS p.m.

Amount of investments in different range of products expected to be 1/5th of total expected revenue.

Schwarzkopf classifies customers on basis of expected purchase: A class Salon: Purchase >Rs. 5 lakhs/month. B class Salon: Purchase Rs.1 to 5 lakhs/month. C class Salon: Purchase <Rs. 1 lakh/month.

Basis for Estimation(As told by the corporate guide)

Less than 3; 6; 33%

3 to 6; 9; 50%

6 to 9; 1; 6%

More than 9; 2; 11%

>9 FTS: Revenue: Rs.13-14 Lakhs. Spending: Rs.2.6 to 2.8 lakhs.

6-9 FTS: Revenue: Rs.9-13 Lakhs. Spending: Rs.1.9 to 2.6 lakhs.

3-6 FTS: Revenue: Rs.4.5 -9 Lakhs. Spending: Rs.90,000 to 1.8

lakhs. <3 FTS:

Revenue: Rs.1.5 - 3 Lakhs. Spending: Rs.60,000

maximum.

Q. How many permanent Full Time Hair Stylist do you

employ?

(All figures are on an average per month.)

Checking the presence

of Schwarzkopf in salons and beauty parlours of Ranchi

city.

Q. Do you keep Schwarzkopf in

your Salon?

Yes ; 14; 78%

No; 4; 22% Reasons replied: Customers hesitate to

spend huge amount for colouring the hair and all such services.

Market of Ranchi is not so developed as compared to other capital cities.

Q. If YES, what according to you is your spending for

Schwarzkopf?(On an average a month in Rs.)

Less than 50000; 8; 57%50000-100000;

3; 21%

More than 200000; 3;

21%

Q. If NO, are you interested in keeping Schwarzkopf in your

salon?

Yes; 3; 75%

No; 1; 25%

Reasons: One salon

owner was not at all satisfied with his previous relationship with the company professionals and was also not happy with their service.

Analysing the

competition in Salons and Beauty Parlours w.r.t Schwarzkopf.

17

48

14

Q. Which are the other brands you are offering currently to

the customers?

Hair Color Hair Care Hair styling Hair straightening

43

6

1011 11

10

3

1 1 1 12

3

1

4

0 0 0 00 0 0 0

Schwarzkopf L’Oreal WellaMatrix Garnier Others

Q. Which brand comes first in your mind to serve a new customer in following cases?

Observing the buying behaviour of salons

and parlours. Q. How important is the

following attribute a strong reason to keep a particular

Brand in your salon?

Brand

Value

Margin

Servi

ce/Av

ailab

ility

Low Pr

ice

Consum

er Dem

and

Compa

ny Su

pport

Schem

es an

d Offers

Quality

13

10

17

12

13

9

16

Very Important

Conclusion

In hair colour market, the brands of lower or middle segment like L’Oreal, Matrix and Wella are more popular than professional segment brands.

Schwarzkopf has a presence in 78% of Ranchi’s Market leaving 22% still untapped.

In terms of Purchase pattern w.r.t Schwarzkopf: 67% of the total population spends less than Rs.50000

a month. 16% salon owners spend an amount of Rs.50000 to

100000 for the same purpose. And only 17% i.e. only 3 salons spend Rs.200000 and

more a month.

Salon Demo after launch. Promotion via internet media, in-salon training via experts. Mid-range, good quality and result oriented product. Regular Market visit. Should be a product with reasonable/economic pricing. Penetration pricing in case of new launches and then go

for a hike in future. Regular service and company support. Product should be cheap and best. Please support small salons also to penetrate in the

market via offering low range products. Proper advertising and launch.

Customer Feedback

Launch with a minimum of 5 kits per salon. Train the hair-dressers using latest learning tools. Exclusive Tie ups for competitive advantage. Mobile app enabled effective distribution system. Sponsor different events for brand awareness. Production in India to save cost. Under CSR, may give free training to make ladies of

Ranchi and outskirts a professional Hair Dresser. Aggressive Advertising to penetrate more and more

nationwide .

Suggestions

(n.d.). Retrieved 07 24, 2016, from Wikipedia:

https://en.wikipedia.org/wiki/Henkel (n.d.). Retrieved from Henkel India: http://www.henkel.in/company?

printview=true& (n.d.). Retrieved from http://www.henkelna.com/:

http://www.schwarzkopf.com/skus/en/home/schwarzkopf/about_us/history.html#id1455079561

Bosteels, K. (2016, 02 25). Double-digit growth for Henkel in 2015. Retrieved 07 24, 2016, from Retail Detail: http://www.retaildetail.eu/en/news/double-digit-growth-henkel-2015

Henkel's Global website. (n.d.). Retrieved 07 24, 2016, from http://www.henkel.com/brands-and-businesses/adhesive-technologies

Qualifying Sales Prospects. (n.d.). Retrieved from All business: https://www.allbusiness.com/qualifying-sales-prospects-1360-1.html

ranjan, R. (2015, october 19). The Hair Care market in India. Retrieved July 24, 2016, from BEAUTY NEWS INDIA: http://beautynewsindia.com/the-hair-care-market-in-india/

Tutor2u. (n.d.). Retrieved from Tutor2u: http://www.tutor2u.net/business/reference/ansoffs-matrix

Bibliography

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