Professional Documents
Culture Documents
Whats happening.
Have you seen your elder cousin/non-trendy
professor/fashionista friend using hair color
recently ??
Hair color is a part of the cosmetics industry
and has been growing at a CAGR of 25%
Total category is valued at more than INR 16
bn.
Poised for Growth ??
FMCG A Snapshot
Personal Care Growth prospectus
Hair Color Market Overview
Types, Trends and Techniques
Distribution Channel
Brand Share
Major Competitor
Brand User and usage insights
Competitor Analysis and Profiling
Porters Five Force Analysis
Market Size and Market Share Analysis
Industry Trends
Drivers and Challenges
FMCG - Overview
FMCG :
Fourth largest sector in economy
Lower CAPEX Higher RoCE
Highest % expenditure Brand building
Contract Manufacturing
USP: Wide distribution network
Product Category introductgion-leg
Lower per capita consumption
Low rural penetration
Lower selected category penetration
Source : KPMG Indian FMCG Market Giant Unleashed
FMCG - Overview
FMCG
Personal Care
Indian personal care market is ranked 13th
globally
Size of approx. USD 6 bn
Moving from health to beauty
Skin whitening most popular claim
Category becoming more gender specific
Higher-priced new launch is an emerging
trend
Hair Care
Second largest segment of Personal
Care
It comprises of oneeighth of the fast
moving consumer goods market
Hair care grows by 17% in 2013 to
reach INR135.2 billion from INR 100
billion in 2011
Colourants continues to record the
fastest current value growth of 25%
in 2013
Hair Care
Hair Care
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
3,818.3 4,715.6 5,721.3 6,871.6 8,195.1 9,691.9 11,656.1 15,420.4 19,882.0 24,778.0
0
0
0
0
0
0
0
0
0
0
30,000.00
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Ton-on-Tone
Nonammonia dyes
Not to lift the base color of the hair but one can have it infused
with an arresting tone
Highlighting/Streaking
Anything from large strategically placed chunks of color to a
more subtle back-toback weaving or slicing techniques can be
employed to give either an outr or more traditional coloring of
ones preference
Global Coloring
All the hair is colored from root to end
Radical transformation (like bright red mop) or even settle for
more honey or chocolate colored tresses
Grey Coverage
Distribution Channel
Cream /Powder
Expert Original
Godrej
Expert Care
Expert Advanced
Powder
Nupur
Kali Mehandi
Colour Soft
Cream
Inoa
Garnier Color Natural
Cream
Top Speed
Cream
Color n Care
Frost & Glow
Hygienic Research Streax
CavinKare
Cream
Vasmol
Powder
Powder
Competitor Profiling
Godrej Consumer Products Ltd
A market leader in the hair color market and
follows a 3 by 3 marketing strategy
presence in 3 continents through 3 core
categories
Its care business grew by 19% for FY13
driven by robust sales of Expert range of
powder color and Nupur Mehendi
GCPL has acquired Darling Group, a leading
haircare company in Africa in 2012
Competitor Profiling
Hygiene Research India
Operates in India and market its
product across 15 countries
Has its flagship salons Streax Head
Turner all across India
Competitor Profiling
LOreal SA
LOreal India was established in 1993 when it
first entered the country in a joint venture with
MJ Group.
Has its presence in 130 countries and offers 23
global brands
It sells its products to hair salons; mass market
retail channels; department stores
Its ammonia and odorfree hair color Inoa was
used in more than 81,000 salons one year after
its launch in 2010
Competitor Profiling
Procter & Gamble Co.
Wella AG operates as a subsidiary of
P&G and is headquartered in
Darmstadt, Germany
Wella Professionals has earned its
title as the global authority on hair
color
It has relaunched both the
permanent hair color line Koleston
Perfect and Color Touch demi
Competitor Profiling
Revlon Inc
One of the strongest consumer brand
franchises in the world with its
products being sold in over 100
countries across six continents
It markets its products primarily under
Revlon ColorStay, Almay Intense i
Color, Almay Smart Shade, Revlon
ColorSilk and Gatineau brand names
Industrial
rivalry :
Low/Medium
Suppliers power:
Low
Threat of
substitutes
Low
Thus, overall the
category is
profitable
Brand Analysis
Brand Objective
Brand Positioning
Brand Promoter
Value Proposition
Differential Competitive Advantage (USP)
Brand Strategy
Expected future strategies
Target Market, their key expectations,
usage and socio-psychographic make-up
Brand Positioning
Can we identify how they are positioned ?
What is their core value proposition ? How are they
different ? (or not so different ?)
What is their TG ?
Core marketing strategy? How it has evolved ?
What could be possible strategic future direction for
the brand ?
Brand-User Insights
Godrej Leader in both Dye and
Color
Dye used by people in age category
45 years and above
Color more prevalent in 25-34 years
SEC AB Female Color Natural, Color
Soft
Brand-User Insight
Rural
Consumption by R1 and R2
Hair Dye more prominent
Urban
Hair Dye prominent in SEC C and lower
Color Natural and Color Soft most
prominent
Highly dominated by SEC B
Brand-User Insight
Media
TV, Friends and Retail Showroom are
most promient
Media awareness high for both Dye and
Color
Most favourite for Dye : Family Drama
and Comedy
Most favourite for color : Reality show,
sports and News
Brand - CB
Autonomy
Hair Color associated with autonomy
Discount
Hair color and Dye Extreme
differentiation
Usage
Low Penetration about 20%
Equal usage by Male and Female
Usage equally spread among age
group
More usage by SEC B then SEC A
Salon Segment
Salon
Segment
Buying Criteria
Pricing
Power of end
customer
Differentiatio
n
Luxury
Brand, Quality
High
Exclusivity for
use of the
product
Premium
Quality, Price,
Availability,
Specialization
Moderate
High
Salon specific
brand created
by co.
Mass
Premium
Quality, Price,
Margin,
Availability
Moderate
Private Labels
Mass
Price, Availability
Low
No
differentiation
3D Color Service
In this, panels of color are outlined and
layered on top of each other and different
shades are graduated
This gives an illusionary effect of added
depth and dimension for an upgraded
color look
The idea of colors fading from one into
the next without any real demarcation
gives an enhanced 3D look
Wella Professionals unveiled their
Autumn/Winter 2011 Seasonal Collection
which featured this innovation in hair
color 3D Color Effects