Marketing & branding strategy for Men's Grooming Products_ L'Oreal Brandstorm Challenge

Team MarkSmiths

Azar Zia, Nikhil Dubey, Sukesh Chandra Gain

Male Grooming

Market

Body Care Market

Fairness Market

Hair Care Market

Wellness Service Market

Market Overview

Market Segments

Market Size and Growth

Growth Drivers

Increase in disposable income

Increased awareness for beauty products

Rise in organized retail

Adoption of western culture

Demand for organic and natural products

Men’s Grooming Market-1500 Cr

Men’s Fairness Product – 175 Cr

Men’s fairness Product Market

growth – 25%

Men-20% of the total

consumption of fairness cream

Sale of Men's brand –only 5%

Overall P

enetratio

n – 2

5%

0

500

1000

1500

2000

2007 2008 2009 2010 2011

INR (Cr)

Agenda Market Analysis

Competitor Analysis

Distribution Channel

Consumer Trends

Brand Analysis

Strategies & Recommendations


Competitor Analysis


Consumer Trends

Brand Analysis


Beauty Products for Men (1/2)


Competitor Analysis


Consumer Trends

Brand Analysis


Beauty Products for Men (2/2)

• VLCC • Jawed Habib

• Kaya Skin Clinic for Men

• Loreal Professionnel

Hair care Products

Hair loss Products

Styling Range

Hair Colour

Face wash

After Shave Gel

Moisturiser

Facial Kit

Muscular Stress Massage Oil

Shampoo

Slimmer’s Aid

Shower Gel

Jawed Habib’s Total Hair Therapy Kit (5 Products):

Shampoo, Hair Serum, Oil, Hair Spa, Conditioner • Shahnaz

Hussain’s • Schwarzkopf

Professional

• B: Blunt • La belle

Cleansers

Moisturisers

Hair care Products

Scrubs

Loreal Professionnel

Products

Shaving Products

Skin Care

Moisturiser

Hair Colour (IGORA)

Hair Styling (OSiS+)

Hair Care Products

Men’s Products & Services (Professional)

Products Products

Hair Care Skin Care

Regular Skin Care Skin Concern

Hair Free Hair Loss Prevention

Skin Care / Facials Hair Treatments

Face Lift / Grooming Obesity Mgmt

Hair care Hair Spa Skin Care

Hair Styling

Hair Cut, Style, Colouring,

Facials, Manicures

Weight Management Beauty treatments

Dermatological Treatments

Hair Treatments, Facials

Hair Care Styling Facials

Skin Care Hair Care


Competitor Analysis


Consumer Trends

Brand Analysis


Current Trends

Blossoming of the ‘metro-sexual’ man

More focus on male personal care products

Entry of international

players

Increased focus on herbal

and organic products

Constant innovation

and focus on branding

Penetration in tier II and tier

III cities

100% Respond

ents 61%

Believe

39% Does Not

Believe

38% Willing

Spend Believe in Looking

Best

Total

62% Not

Willing

76% Men Pdts

Product Category

24% Any Type

100% Respond

ents

Total

84% > 35 Years

16% < 35 Years

Use

68% 15-24 Years

Age Category

32% 25 – 35 Years

Current Market Trends


Competitor Analysis


Consumer Trends

Brand Analysis


Survey Results

63%

37%

Men only Unisex

Choice of Salon

Growth Opportunities

Threats

Global Market

Local Market

Characteristics of Global & Local Market Market Opportunities & Threats

Increasing male clientele Enhanced connectivity of poorest districts Increasing number of middle class people Introduction of in-house wellness products Growing corporate life style More people moving to urban area

Competition from small players Limited awareness about Men’s grooming Entry of international players

Global market in 2009 - $19.7 billion Global consumption in 2009 -$61.3 billion Projected market by 2015 - $33.2 billion International players dominate the market Market is almost saturated with wide range of products

Relatively New Market- 5 years old Men’s grooming market in 2010 –1500 Cr Growth rate -~22% CAGR Local payer still dominate the market Cultural barriers


Competitor Analysis


Consumer Trends

Brand Analysis



Competitor Analysis


Consumer Trends

Brand Analysis


SCHWARZKOPF

Positioning: “ Professional Hair Care for you“; Schwarzkopf represents quality, expertise and

innovation for more than a 100 years now

Target Group: Young and Trendy Hairdressers in Tier -I and Tier -II cities

Males with Graying hair in SEC A and B

ORIFLAME

Positioning: “Natural Swedish Cosmetics”;unique and innovative products inspired by nature with natural ingredients and developed with the latest scientific technologies

Target Group: Target group is this middle class, men who aspire to look radiant and be self-fulfilled . Age 30+ SEC A, B,C

AMERICAN CREW

Positioning: Whether its shine, hold or texture, let American Crew men's hair products inspire your style

Target Group: Men with Thinning hair. Well educated and Fashion conscious male. Age 25+ ,SEC A,B

TIGI BEDHEAD FOR MEN:

Positioning: A full service lifestyle that is effective, edgy and fun with a focus on maintaining healthy hair and a clean body

Target Group: Teen and College going Students for whom style hair is individualistic in Urban Locations SEC A

Competitors: Professional Market

(Products)


Competitor Analysis


Consumer Trends

Brand Analysis


Positioning

Jawed Habib-"The Professional" has integrated hairstyling, beauty & personality grooming in India .

Perfect amalgam of Indian & western hairstyling based on science and the Geometrical System. Associates with Trident , Marriott International

Target Group: College Students and Early Professionals SEC B,C

Positioning

The world's largest cosmetic dermatology chain

customized treatments and special products to diet and skin care tips.

Target Group:

Young men – Age group of over 25 years, Well Educated SEC A,B

Positioning Introduced a totally new concept of "care and cure“. Formulated her own Ayurvedic products growing of its own herbs to manufacturing of its cosmetics line to retail to specialized treatments through its chain

Target Group:

Focused on the Indian women, and Males inclined towards Herbal Beauty

SEC B,C

Positioning

Treatment with Ayurvedic oils, massage & steam helps the penetration of herbs and is effective and long-lasting.

Transforming Lives”, we imply transforming self, spreading happiness and transforming future.

Target Group:

Males in the 30+ age category in SEC A,B

Competitors: Professional (Market Services)

Himalaya Labs

• Positioning: promise of good health and well-being; teal green represents proximity to nature, while the orange is evocative of warmth, vibrancy and commitment to caring.

• Target Group: Targeted at the modern Indian consumer who is willing to pay a premium for good medicine, and for those who believe in Ayurvedic but are not inclined to go traditional Ayurvedic clinics SEC A,B

Unilever Clear:

• Positioning: Fights dandruff gently and effectively, giving you dandruff free hair and Strengthens hair from scalp to give you hair full of health.

• Target Group: Urban and sub urban middle class, and rural poor people SEC A, B, C.

Nivea:

• Positioning: Consumers associate Nivea with trust, reliability and accessibility.

• Target Group : Young Professionals onwards ( 25 yrs +) SEC A, B

Paras: SET WET STYLE::

• Positioning: : confident sexy" positioning to life, and to create elite club of style and elegance and enjoy your role as the man who is always in the spotlight when it comes to women

• Target Group: Teenagers , College Students and Young Professionals (15-35 yrs) SEC B,C


Competitor Analysis


Consumer Trends

Brand Analysis


Competitors: Mass Market


Competitor Analysis


Consumer Trends

Brand Analysis


Supermarkets / hypermarkets

●Route adopted by mass market personal care products

●The major supermarkets are Big Bazaar, Pantaloons, Spencer’s Retail, Big Apple, Reliance Fresh, More etc

Specialty Stores

●Premium segment or professional products of many reputed wellness stores are sold through specialty stores

●Kaya Skin Clinic, Jawed Habib’s, Reebok, Nike, Adidas brands are available through exclusive showrooms and specialty stores

Pharmacy/Personal Care Stores

● Many mass market men’s grooming products are available through such stores

●Apollo Pharmacy has a pan India presence. Besides this, most local pharmacies stock these products

Direct Sales/Marketing

●Brands such as Amway and Avon use the direct sales route for their products

Beauty Salons

●Most professional products are sold through the salon only route.

●Kerastase, Loreal Professionnel and Matrix range of products sold through affiliated beauty salons like B:Blunt in Mumbai

Internet/ Tele-Marketing

●Famous brands like Oriflame uses the telemarketing approach for distribution.

●All major beauty products are widely available through the internet

L’Oreal Professionnel range of products are available in

more than 50,000 salons across 100 cities in India

Distribution Channels

Loreal Professionnel: Distribution flow

Sales

Salons make availbale the products to professional hair designers as well as customers visiting them

Distribution

Products are made available to leading salons across the country affiliated to them

Manufacturer

Products are sourced from manufacturer site by importing if necessary


Competitor Analysis


Consumer Trends

Brand Analysis


The Common Indian Man has evolved…..

Roti, Kapda aur Makaan

will no longer suffice!!!

Ye Dil Maange More!

Growing Disposable Income Rise in Employment Robust Economic Growth

The Per capita income (average income) of Indians has grown by 10.5 per cent to

US$ 947.21 in 2009-10 as against US$ 857.43 in 2008-09, at the current price.

The Services Sector continues to grow at a fast pace, providing employment opportunities to

millions across the country

From 2004 until 2010, India's average

quarterly GDP Growth was 8.37 percent reaching an historical high of 10.10 percent in September of 2006

.


Competitor Analysis


Consumer Trends

Brand Analysis


“My barber knows me very well. I get the haircut I want. Why waste hundreds of rupees on salons?”

Vital Statistics Target : Mr. Sharma

Age Group : 50+ years

Occupation: Serviceman or Retired

Income : Rs. 10000 + p.m.

Mindset: Traditional

Needs: Haircut & Shaving

Preference : Barber Shop.

Views :

Salons are an unnecessary waste of money. Long-term relations with the local barber helps get customized service. Personalized attention and low fares are added benefits of local barber shop.

Characteristics:

•The older generation is satisfied with traditional modes of grooming.

•Unwilling to change

• Lack of awareness about salons

•No interest in personal grooming --- just basic haircut and shave needed

Perception:

No differentiation in services offered by salons

Target Status: Negative

The Cynical Uncleji


Competitor Analysis


Consumer Trends

Brand Analysis


“Salons are fine for special occasions, that too when my wife insists. For regular needs, the local barber is good enough. Anyways, at my age , who needs special grooming. I also feel embarrassed of women around me in unisex salons. I prefer men only salons.”

Vital Statistics Target : Mr. Gupta

Age Group : 35-45 years

Occupation: Corporate or Govt. job

Income : Rs. 35000 + p.m.

Mindset: Balance of tradition and modernity

Needs: Haircut, Shaving. Occasional facials & hairstyling

Preference : Barber Shop, local men only salons.

Views :

Doesn’t mind visiting salons once in a while. Believes that any local salon can give as good a service as branded ones, at much lower prices. Unisex salons make him uncomfortable.

Characteristics:

• Represents the typical middle aged family guy. Not brand conscious

• The youthfulness in him is lost. Egged on by wife to visit salons for personal grooming Style not important.

• Not comfortable with women around him in salons.

Perception: All Salons provide same kind of service. Save costs by visiting local salons.

Target Status: Neutral. An existing, but undependable TG

The Couch Potato


Competitor Analysis


Consumer Trends

Brand Analysis


“Beauty products for men ? It’s only for effeminates. The real man doesn’t need Salons and skin whitening creams. Hair is a sign of virility & masculinity. Why fiddle with it?”

Vital Statistics Target : Monty Singh


Occupation: Student / Professional

Income : Any

Mindset: Regressive, egotistical

Needs: Haircut, shaving, hair color

Preference : Barber Shop

Views :

Believes that men are by nature created to look ‘masculine’. Stuff like facials, pedicure, manicure, waxing are meant for effeminates. Abhors unisex salons and dislikes the growing trend of metrosexuality

Characteristics:

• Rustic, unsophisticated, lacking social etiquette

• Arrogant, egoistic & stubborn

• Prefers the local barber shop, if at all its services are needed

Perception:

Men should be ‘real’men --- shouldn’t get carried away by marketing gimmicks of beauty product companies

Target Status: Negative

The Desi Guy


Competitor Analysis


Consumer Trends

Brand Analysis


Vital Statistics Target : Mr. Rahul Khanna


Occupation: Corporate executive, IT professional, Media personality

Income : Rs. 25,000 – 3,00,000 p.m.

Mindset: Modern

Needs: Hairstyling, pedicure, manicure, facials and more...

Preference : Reputed Salons

Views :

A reputed salon is a must to take care of personal grooming needs. Looking & feeling good is essential to lead a healthy social life and be confident. Willing to spend a few more bucks for good quality service.

Characteristics:

• Beauty products and services for men thrive on such customers

• Metrosexual man --- Status conscious with active social life

•Brand conscious --- Armani and Polo are his favourite brands. Looks for reputation and quality in brands

• Comfortable in unisex salons

Perception:

Men must take care of themselves. No sin in that.

Target Status: Positive. Main TG. Money and passion --- Perfect combination.

The Suave Socialite “It’s very important for me to look and feel good about myself. A good salon is extremely important for personal care and also a great place to de-stress ”


Competitor Analysis


Consumer Trends

Brand Analysis


Vital Statistics Target : Sameer Kapoor


Occupation: High School, College student, Entry-level professional

Income : 0 – 15,000 p.m.

Mindset: Ultra-Modern

Needs: Hairstyling, hair color, facials

Preference : Local Salons

Views :

Though he would love to visit a reputed salon, he can’t presently afford it. Understands the importance of grooming

Characteristics:

• MTV generation --- Global outlook & fashion conscious

• High importance of personal grooming to attract the fairer sex

•Brand conscious

• High aspirational levels --- potential future customers

Perception:

Modernity requires a shift from traditional hair solutions to professionalized hair care services

Target Status: Positive. Potential target group

The Handsome Hunk “I’d love to visit high end salons, but right now, affordability is an issue. Good looks is a great confidence booster. Of course, have to keep myself updated with the latest trends as well!”


Competitor Analysis


Consumer Trends

Brand Analysis


Target Group

• Age : 17-45 years

• Socio-Economic Class : A, B

• Lifestyle : Urban , sophisticated

• Psyche: Modern and balanced

• Income : INR10,000 +

Customer Needs

• Quality service

• Value for money • All Grooming solutions under one

roof • Confidence Boost • De-stressing ambience • Special products for men • Men only salons alongside unisex

ones

Every 2nd indian metro male has a date at the beauty salon once a month: Nielsen

3 in 5 single men claim they try to look stylish at all times

Besides visiting a beauty salon, 1 in 3 Indian men claim they visit a hair salon two to three times a month

Besides the most common activity – haircut – head massage and hair coloring are the next two most popular activities when they visit the salon

* AC Nielsen Report, 2007

Frequency & Habits

Schwarzkopf

•Positioning: “Professional Hair Care for you“; Schwarzkopf represents quality, expertise and innovation for more than a 100 years now

•Product Range: Colouring ,Taft, Taft Looks, Shampoos, Conditioners, Lotions, Serums, Men Perfect.

•Promotion: Traditional

•Brand Values: irresistibility, colour and inner confidence

•Status: Primarily Hair Coloring Brand

•Packaging: packaging is simple, elegant and precise, reflecting perfectly the professional level of the products; 13 packages with sub brand logo design

L'Oréal Professionnel

•Positioning: Refreshingly simple hair care, strong structured styling products, perfected for men alone by L'Oréal Homme.

•Product range: Haircare, Hairloss Styling Range, Hair Color

•Promotion: 1st launch of Homme by LPH, with a tagline of ‘Especially for Men’ catches the imagination of hairstylists and customers.

•Brand Values: sophistication and elegance, innovation, performance,

•Status: High Price, High Value

•Packaging: Increasingly Environmentally Friendly. Colors vary with the different collections

Nivea

•Positioning: “Less alcohol, more care”. Offered smooth, freshness and soothing Qualities

•Product Range: Shampoo, Hair Recharge shampoo and lotion, Style Freeze, Aqua Gel, Shower Gel

•Promotion: Nivea has huge brand recall and equity. The brand has not been aggressive enough in India

•Brand Values: “Mildness,” “reliability,” “gentleness,” “protection,” “high quality,” and “value for money”

•Status: Family Brand

•Packaging: Blue and White packaging is universal


Competitor Analysis


Consumer Trends

Brand Analysis


Status comparison

Strengths

•Innovative Products through constant R&D

•High Brand Equity,Awareness among customers for being a Trendsetter

• Diversified and Effective Distribution Network.

• ability to be global and to act local; market leader in the segment

Opportunities

•Consumers attach more & more importance to quality & global brands

•Men’s attititude towards personal and hair care and more importantly Salons are changing for better

•Target groups with growth potential and disposable income

•Newer acquisitions—more range of products

Threats

•Target Group and Positioning is similar to most competitiors. Hence, Brand Cannibalisation

•Entry of new Global and Local players in the hair care segment

•LPH’s products are luxuries that could be hurt by an economic downturn

• Non-Traditional Solutions like Ayurveda, Cosmetic Surgery

Weaknesses

• Low Profitability

•Decentralized Organizational structure of L'Oréal Paris

•Dissimilarities brought about in the campaign by worldwide operation

•Only One existing product range cannot satisfy all customer needs

S W

T O

Swot analysis


Competitor Analysis


Consumer Trends

Brand Analysis


Future Marketing Mix Strategies

Beauty cream - Dermatin Shaving products Deodorants and colognes - Eion

Product

Premium pricing Price Range Rs. 500 – Rs. 1200

Price

L’Oréal Professionnel salons Hair styling salons Exclusive Homme Corner High end shopping malls ‘Men’s Corner’/‘Men’s Zone’

Place

Grooming magazine - Men’s Health Celebrity endorsement Social media

Promotion

Existing Marketing Mix

Tonique : Shampoo for normal hair Densité : Shampoo for thinning hair Energic : Energizing gel shampoo Controle+ :Daily conditioner Wax : Definition Wax Sculpte : Sculpting fiber paste Strong : Strong hold gel Clay : Strong hold matt clay Mat : Matt sculpting pomade

Product

Premium pricing Shampoos and conditioner : Rs. 495 Styling range : Rs. 550 Renaxil – anti hair loss shampoo : Rs. 2,200

Price

L’Oréal Professionnel salons Hair styling salons : B Blunt Internert

Place

Internet Professionnel salons

Promotion

Road Ahead


Competitor Analysis


Consumer Trends

Brand Analysis


Packaging

Colour: Grey, black, brown, dark blue Shape:

Pumps and tubes

Label: Identifiable, attractive graphics

Logo : Tag Fresh look

Ingredient Branding Highlight ‘Reason to Buy’

Packaging Strategy


Competitor Analysis


Consumer Trends

Brand Analysis



Competitor Analysis


Consumer Trends

Brand Analysis


• Advertise on Yahoo India, Rediff & MSN homepage • Advertising in English on social networking sites like Facebook & Twitter • Tie-up with Zynga games to develop a game with men’s grooming as a theme --- on the lines of Farmville • Online contests such as quizzes based on brand history & recognition

• Celebrity endorsement using Bollywood actor Imran Khan as brand ambassador • Sponsoring Male model hunt shows such as Gladrags Mr. India • Title Sponsors of India Fashion Week • Advertising in Fashion & Lifestyle magazines for men such as Men’s Health

Promotion Strategies

Internet & Social Media

Fashion & Glamour

World

Mass media

Tie-ups

• •Tie- Ups with big Corporate Houses and provide grooming solutions for their male employees at discounted rates • Tie-Ups with International and reputed gyms in metros frequented by men from SEC A, B • Collaborating with professional male apparel brands & offering trial offers to loyal customers

• Sponsorship & Advertment during popular cricket tournaments such as Cricket World Cup & IPL • Advertising during popular soccer leagues such as English Premier League • Advertising on English movie channels such as HBO & lifestyle channels like NDTV Good Times • Product placement in reality shows such as Big Boss, Indian Idol

Promotion & Advertising

Statistics reveal that TG men are not great watchers of TV nor are

they fond of shopping. Cyberspace is their Comfort zone.