Introduction
Hair coloring is the practice of changing the hair color. The main reasons for this are cosmetic: to
cover gray hair, to change to a color regarded as more fashionable or desirable, to restore the
original hair color after it has been discolored by hairdressing processes or sun bleaching.
Hair dye also some Durability how long color exits dyed hair so they are temporary hair dye,
semi-permanent, permanent hair dye. Now a days in youth they color for style and cover grey
hair. But present trend is personal care sector is growing so Hair care market increased by 16.8
% CGAR and hair colorants have market in India Rs.2900 Cr market share is 17% of hair care
Industry. So hair color industry may grow fill the remaining gap in future.
Genesis
Early '90s, the popular hair colors were powder dyes (Godrej Powder Hair Dye) or oil-
based liquids (Super Vasmol)
1997, Ultra Doux launched its premium brand Excellence Crème, which introduced the
concept of hair color other than just the regular black and dark brown.
In 2001, HUL's (then HLL) Sunsilk brand had launched the Pro-Color range of hair
colors.
Other premium hair colorants that entered the market were Wella, Schwarzkopf and
Revlon.
Godrej too moved on from powder dyes to launch liquid and cream based variants of
Color Soft, Renew and Expert.
Global hair colour trends and media exposure aided this, where they saw actresses and
models flaunting shiny, rich colored tresses. L’Oreal, launched Matrix (Rs 119), the
brand acquired from Bristol in 2004. It is positioned as ‘fun and lively’ compared to its
‘sophisticated’ counterpart
Behavioral change in consumers towards hair colors
'Traditional' Indian women were not experimenting with hair care and hairstyling, preferring
mainly shikakai powder and henna.
Steady improvement in purchasing power of women and the increasing exposure to global hair
trends leading to influx of new shades. The new male consumer helped the category grow.
Process of conducting study
The study approaching Through secondary data where source finding of product, market,
industry, functional analysis through websites, research papers, project reports.
Godrej
Brand- Godrej Expert
Product characteristics
Godrej Expert Original- powdered hair color
100 percent grey coverage. Zero percent ammonia. Trusted by more than 4 crore happy users,
Godrej expert original is India's largest selling hair color. Its color-lock formula ensures long-
lasting color with 100 percent grey coverage. Not just that, it comes with the safety of no
ammonia and hence, zero damage to the protein in your hair. Use it for natural looking color and
an experience to talk about. Godrej expert original is available in a natural black shade. Price-
100rs (contains box of 8 packets), Size- 6g+12ml pack, Durability- Semi permanent(These
survive only 4-8 shampoo washes), Availability of Color- Natural black.
Godrej Expert Advanced- Powdered hair color but gel color when powder is mix of
water it transforms in to gel. Godrej Expert Advanced Hair Color has 3x conditioners. So as you
color your hair meticulously, the conditioners will add softness and shine. Enjoy the ease rinse-
off when you wash. This gel color, unlike other hair colors, doesn't keep you waiting for too long
after coloring. Apply the gel color on your hair and leave it on just for 10 minutes. It rinses off
with amazing ease. Zero percent ammonia.
Price-120rs (contains box of 8 packets), Size- 6g+12ml pack, Durability- Semi-permanent(These
survive only 4-8 shampoo washes), Availability of colors- Natural Black, Natural Brown,
Burgundy.
Godrej Expert in Rich Crème- It is based on crème hair color. Godrej Expert Rich
Crème Hair Color has become your favorite hair color owing to the rich coloring experience it
offers and the joy that follows when people compliment your beautifully colored hair. Our 100%
your grey coverage Crème is just what you need for your graying tresses. Its Aloe & Milk
Protein enriched formulation makes hair unbelievably soft & shiny and its No-Ammonia formula
keeps your hair damage free.
The product is available in pre-measured sachets convenience to mix and apply to the hair.Price-
30rs, Size- 20g+20ml pack, Durability-Semi permanent(These survive only 4-8 shampoo
washes).
Product available in Godrej Expert Rich Crème Hair Color Multi-Application Pack. It comes
with a Colorant (Tube) & Developer (Bottle), and 2 Conditioner sachets. Price-120rs, Size-
62g+50ml, Durability- Semi-permanent(These survive only 4-8 shampoo washes).
Availability of colors shades- Natural Black, Black Brown, Dark Brown, Natural Brown and
Burgundy.
Composition- A powder hair dye composition containing sodium per carbonate with an active
oxygen amount within a range of 12.0 to 15.3% by mass as a component (A), additionally
containing a sequestering agent as a component (B) preferably and still additionally the sulfate
salt of an oxidation dye as a component (C) more preferably. In accordance with the invention,
the dye ability and bleaching ability of the powder hair dye composition can be enhanced,
together with the resulting good hair feeling after application; additionally, the increase of
oxygen gas pressure in the storage package can be suppressed, and the storage stability of the
powder hair dye composition can be retained in a secure fashion. Ingredients are used as
colorant Type(3) elements
Uses-Godrej hair dye products are used to coverage of 100% gray hair and looks as younger
and convenient colors chosen by people In three different products and using godrej expert hair
becomes soft and silky.
Place(Distribution)- The Godrej group has established a direct link with all its main
Indian distributors through an innovative scheme called Sam park. It has an efficient system that
collaborates all the information and deals with planning, forecasting and implementation of
ideas. The company consisting of effective channel in distribution through wholesalers, retailers,
outlets.
It has nearly 1,247 distributers with one hundred and forty two agents acting as super
stockists.
In order to provide ample support to the sales team the company also employs 3,175 sub
stockists.
All the distributors and stockists are involved in the enabling of efficient and prompt
marketing of the products to help 650,000retailers in India.
The goods are available in retail shops, high profile showrooms, malls and even internet. Godrej
also has an official website where goods are easily purchased. It also has tie-ups with other
shopping sites that result in quick sales.
Price- For godrej hair dye products reasonable prices and it can afford also by middle class
family persons and starting price starts 15rs, 20rs, 30rs up to premium products that’s why godrej
reaches mass market because of pricing strategy one of the reason.
Promotion- Already godrej consumer products got promoted by movie actors,
Advertisements, issuing Free samples to saloons to promote their brand by word of mouth. TV
ads, Social marketing, Different packaging, Labeling of three different languages to their
products so people easily recognizes.
L'Oréal
Brand- LORAL PARiS
Product Characteristics
L'Oréal Paris- Excellence crème
Product benefits-Excellence Crème is the leading protection hair color infused with its
triple care formula an advanced technology concentrating 3 powerful ingredients that strengthens
your hair while coloring, leaving it softer and protected. Hair feels healthy, silky and soft. Color
lasts long, looks sensational and without a grey hair in sight.
Durability- Permanent (color lasts up to 28 shampoos).
Innovations and Ingredients- Best New Triple-Care Formula for 100% Grey Coverage
combining three power ingredients are Ceramide protects the hair fiber, Pro-Keratin revitalizes
and strengthens the hair, Collagen nourishes the hair and makes it fuller and softer. After using
this ingredients hair becomes 85% stronger after color.
Product Extensions- according size and quantity and preference of customers product
extended following hair colors.
Price-590 to 600 rs, Size- 72ml+100g
10 types of hair colors they are: 1 Black,3 Natural darkest Brown, 3.16 Burgundy,4.16 Deep
palm, 6A Light Brown,4.25 Aishwaraya’s Brown,4 Natural Dark brown,5.Natural brown,5.5
Mahogany Brown, 1.07 Deep Bronze Brown.
Price-299 rs, Size-24ml+26g
5 types of hair color They are: Shade 3, Shade 3.16, Burgundy, Natural Black, Natural Darkest
Brown.
L'Oréal Paris- Casting Crème Gloss
Product Benefits- Casting Crème Gloss is a non-ammonia hair colorant that gives you a
natural-looking color with visible shimmering tones and glossy shine. Provides intense
conditioning while coloring.
Innovations and Ingredients- color No ammonia, Glossy shine, Natural looking color,
Covers Grey, Delicate fragrance, Glossy and natural looking in just 20 minutes.
Durability-Semi permanent.
Product Extensions- according to the price and quantity and preference of customers product is
extended following hair colors
Price- 600 rs, Size- 87.5g+75ml.
11 types hair colors: Black cherry 360, Plum/Burgundy 316, Chocolate 535, Dark Brown 400,
Darkest Brown 300, Ebony Black 200, Iced Chocolate 415, Mahogany 550, Medium Brown
500, Praline 530, Sonam's Dark Chocolate 323.
Price-300 rs, Size- 21 g + 24 ml.
3types hair colors: 200 Burgundy, Darkest Brown, Ebony Black.
Price – It ranges loreal Paris hair dye products in Excellence crème, 300-600 rs, Casting crème
gloss, in India almost it like a premium product.
Distribution- Today L’Oréal India is present in all distribution channels with 15
international brands, available in mass market channels (L’Oréal Paris, Garnier, Maybelline
New-York), in hair salons (L’Oréal Professionnel, Matrix, Kérastase, Kéraskin Esthetics), in
selective distribution (Lancôme, Kiehl’s, Yves Saint Laurent, Giorgio Armani, Ralph Lauren,
Diesel) and in pharmacies (Vichy, La Roche-Posay).
Promotion-Celebrate Endorsements by Aishwarya Rai, Katrina kaif, Sonam Kapoor, and
Advertising fashion magazines and journals for professional stylists, billboards, conducting
fashion shows, promoting in a social network, personal selling by sales representatives.
GARNIER
Garnier is a Brand of L’Oreal.
Garnier, the L'Oreal-owned brand that shook up the US hair care market with the introduction of
Fructis in 2003.L'Oréal was focusing on hair color market in the initial stages of its launch,
Maybelline was in the premium color cosmetic segment while Garnier in the "naturals"
segment.
In 2000 L’Oreal launched its range of cosmetics in to Indian market.Garnier concentrated on the
Natural Hair care market with the main USP of strong hair. Garnier believes in beauty through
nature. Scientifically developed and enriched with selected natural ingredients, its products help
look healthy and feel good every day.
Black Naturals
Product Benefits- Get color so natural, nobody can tell you've colored. Garnier Black
Naturals crème hair color gives 100% grey coverage, lasts up to 6 weeks and works in just 15
minutes.
Product type –Natural oil enriched crème color
Durability- permanent(color lasts up to 28 shampoos).
Ingredients- Enriched with the goodness of Almond Oil and Black Tea Extract, Garnier
Black Naturals is a no- ammonia crème formula that works in just 15 minutes.
Product Extensions- According to the consumer preference in color choices product
extended in to 5 types of colors. 1.0 Deep Black, 2.0 Original Black, 3.0 Brown Black, 3.16
Natural Burgundy, 4.0 natural Brown.Price- 39rs, Size- 20gm of each packet.
Color Naturals
Product Benefits- Get nourished hair, and better, long-lasting color. Garnier Color Naturals
rich cream formula gives you 100% Grey Coverage; Rich, Long-lasting color; Silky, Shiny hair.
Product type- Crème based, Durability- Permanent(color lasts up to 28 shampoos).
Ingredient Uses-Enriched with the goodness of 3 oils - Olive, Almond and Coconut, the
rich cream formula of Garnier Color Naturals nourishes your hair while you colour. Its Triple
Nutrition Conditioner makes hair smooth. Garnier Color Naturals - for Hair Colour as fresh as
day 1 even upto 8 weeks.
Product Extensions- This product is categorized gender based Men and Women,
Product also extended different types colors.
For Women different garnier Shades are 1.0 Natural black, 3.0 Darkest Brown, 3.16 Burgundy,
5 Light Brown, 4.26 Natural Burgundy, Garniar Color Naturals Regular pack-Brown- 175rs,
Size: 70ml+40g(Each one color)
5.64 Copper Reds, 6.60 Intense Reds- 200rs, Size-70ml+40g(Each color).
For Garnier color naturals Men are 1.0 Natural Black, 3.0 Darkest Brown, 3.16 Burgundy-110rs,
Size- 36ml+24g.
Price- Generally garnier is one of the brand of Loreal But when Doing business in India mass
market was more that’s garnier launches To reach Indian mass market reason because is we
already known Loral premium product so to fill that gap garnier reaches product middle class
and upper middle class people in India through hair colors and consumer products. Set
competitive pricing other brands
Place-. Garnier has its presence in large number of countries mainly in India, China and other
Asian countries. It sells its products through chain of supermarkets, cosmetic stores, medical
stores and online stores such as nykaa, flip kart etc. Brand follows usual distribution system
starting from manufacturer to whole seller to retailer.
Promotion- create awareness and publicity about its products through word of mouth.
Garnier spends huge quantum budget over TV and internet advertisements which employing
professional models. It also runs a YouTube channel which circulates the promotional videos and
campaigns of the company to its viewers across the world. Promotions through Faima magazines
and celebrity advertisement like kareena kapoor.
Market
Indian Hair care Market-
Type of Market structure- Oligopoly.
An industry which is dominated by a few firms,
Interdependence of firms, firms will be affected by how other firms set price and output.
Barriers to entry, but less than monopoly. Differentiated products, advertising is often
important. Oligopoly is the most common market structure.
Hair Care industry increased by 18% to reach Rs. 11,600 Crore
The hair care market is a key constituent of the Indian personal care sector and is witnessing
steady growth owing to increased product penetration as well as expanding product portfolio.
Hair care market categorized in to hair oil, shampoo, hair colors and recent additions such as hair
styling products are well received, especially among the youth population in urban areas. In
addition to the retail market, specialized hair care beauty salons are increasingly becoming a
popular medium for introducing specialized products in the premium market.
India has seen a recent growth of about 30% in recent years wherein a visit to a hair salon
is increased by both the genders.
Men’s grooming has been a big impact since 2015 and the average clientele to a standard
salon even in a rural area is around 3-4 male customers per day for hair color services.
Growth Opportunities- Availability of Gender specific products, Heightened awareness
of personal grooming, Rapid urbanization and Disposal Income, Wide portfolio across pricing.
India Hair Care Market is growing with a CAGR of 16.95% from last five years and is projected
to increase further by the year 2021.
The hair care market is estimated at around INR 152 billion in 2014-15.
Hair color segment accounts for around 15% of the total hair care market. Penetration level of
hair color is estimated at over 35% in Crème based, Powdered based 40%-42% . Hair styling
products comprising hair conditioners, gels, serums, perms and relaxers account for a small share
of the total hair care market and are rapidly gaining ground.
Other players- Godrej, Garnier, L’Oréal, Revlon, Bigen, Sterax, Wella Kelosint, Matrix,
Herbal Henna , Naturtient Hair color, Radico Herbal, Schawarzkopf.
Market Share Hair Colorants in India
Godrej- Godrej Hair colors are the market leader in India. Because main reason is pricing it
affordable by lower class and middle class people so it called mass product. As per 2016 market
share.
Godrej is leading the market with 45 per cent market share. Revenue Generated 470cr.
The brand has managed to capture 32 per cent share of the rural hair-dye market in India.
The domestic hair-dye market is valued at Rs 250 crore, growing at the rate of 25 per cent
per annum.
International godrej present in they are(Asia, Africa, Latin America).
Loral and Garneir-
Loral is a premium product it affordable by upper class people and mostly products available in
Hair Saloons mainly concentrates Metropolitan cities.
Garnier is sub brand of loral so it fills gap in mass product. It affordable by middle class people.
Combined share in India 25%. Revenue generates 170cr. In Geographically Loreal present in
130 countries.
Revlon-12%. Geographically present in 10 countries, Wella-8%, Others like Henna etc-10%.
INDUSTRY
PORTER’S FIVE MODEL FORCES- Hair color industry
Bargaining power of suppliers
With the company’s plans to develop its own manufacturing facilities in India, it is attempting to
decrease the bargaining power of the suppliers by decreasing its dependence on them. By doing
so, it is also decreasing the costs and risks of switching the suppliers.
Company’s move into herbal & natural products would definitely help it to explore a better
supplier market in future.
Bargaining power of customers
The bargaining power of the customers, which should have been high, due to the low switching
costs involved, is actually low due to the brand loyalty. The buyers are ready to pay premiums
for their brand rather than switch to other brands.
However, to establish Brand loyalty, Radico has to fight out a lot with existing strong players to
match the bargaining power of customers.
Threat of potential new entrants
Since the capital investments are low, growing market, other companies which are already
present in hair care market will enter hair color market, so the threat of newer entrants is higher.
But this can be decreased by achieving economies of scale and huge customer loyalty.
Also, lots of foreign players are entering into a very lucrative Indian market,which has to be
considered as a serious threat to existing & future product portfolio.
Threat of substitutes
There is little differentiation between different types of hair color products in the Indian market.
On the other hand, the customers preferring 100% natural products will not like to go for non-
natural products.
Also, Henna, Mehandi which has been used traditionally for years by Indians is a very easy,
cheap & trusted alternative.
Present competition
The present competitive rivals of the company are mainly, Godrej, Revlon, Wella (P&G),
Schwarzkopf and L’oreal, with the L’oreal and Garnier brands. Other competitors are Bigen and
Blackrose, etc. Godrej is the market leader with approximately 40% (which consists of their hair
dye, powdered color and their hair color Godrej Colorsoft). L’oreal has a market share of 25% (it
does not compare with Godrej as they want to increase their profit margins over the next few
years). Revlon has a market share of about 12% and Wella has 8%.
Generally hair color market 2016 is Rs.2900 crores in India. So generally first targeted
hair dye companies those who have gray hair But now a days youth preference on style
so their hair as preferring different hair styles in dying. At present problem is gray hair is
coming 15 years only irrespective of gender so more haircare market increase it increase
also hair color market. Urban New saloons my open and rural already present players
concentrate their strategy and New FDI well come Hire care sector It may Help economy
like expanding business help in Indian G.D.P.
Segmentation- Middle age group 35-50, Younger generation 18-34.
Targeting- Youth and mid generation.
Positioning- In Hair color industry Different companies position their products according
people preference based gender and color choice through advertisements or taglines of the
product.
COMPANY FUNCTIONAL ANALYSIS
Godrej consumer products Limited
Godrej consumer products limited is an Indian consumer goods company its type is a
public company.
The company originally it was founded by It was founded by Ardeshir
Godrej and Pirojsha Burjorji Godrej in 1897, and operates in sectors as diverse as real
estate, consumer products, industrial engineering, appliances, furniture, security and
agricultural products.
GCPL’s products include soap, hair colorants, toiletries and liquid detergents. Its brands
include ‘Cinthol’, ‘Godrej Fair Glow’, ‘Godrej No.1’ and ‘Godrej shikakai’ in
soaps, Godrej Powder Hair Dye, Renew, Color Soft in hair colorants and 'Ezee' liquid
detergent.
GCPL manufactures the products over seven locations in India. Madhya Pradesh,
Guwahati, Himachal Pradesh, Pondicherry, Chennai and Sikkim.
In the soaps category, GCPL brands compete with 'Lux' and 'Lifebuoy'- Hindustan
Unilever Limited, 'Nirma' – Nirma, Hair colors category, its products compete for market
share with 'Black Rose' ‘Super Vasmol' and 'L’Oreal', Shaving cream category are
'Gillette', 'Palmolive' and 'Old Spice'. GCPL's talcum powder brands, compete with
'Ponds'- Hindustan Unilever and 'Denim'. Liquid detergent category GCPL brands 'Ezee'
and 'Genteel', compete with 'Safe wash- Wipro' and 'Surf Excel- Hindustan Unilever
Limited'.
.Total employees 28000. Its present stock price-₹ 1,574.15 , Net revenue-37.93 billion
INR.
3×3 is building a presence in three emerging markets (Asia, Africa, Latin America) across three
categories (home care, personal care, hair care).
Movement of stock prices- From jan 2016 to jan 2017.
Competitor analysis-
HR Functions-
Potential appraisal and promotion- Selection of right person for right job and
promoting others to handle higher level responsibilities.
GALLOP trainees start with induction program.
Marketing Strategies-
Godrej Expert product is mass product because it is mostly used in rural areas than urban areas in
India. The product is also called mass product why because of perfect marketing strategies
implemented and continuing.
Umbrella Branding- “Your Home Salon” will bring consistent positioning for Godrej
Expert products and establish “Product as hero”.
Godrej expert approaches the Integrated Marketing Strategy Includes: Marketing through
television advertisement.
Digital and Social media marketing -Through Facebook page creating and
conducting events like Godrej Expert Brand ambassador, Share salon effect campaign. Creating
a Blogs consumers talk about brand and share their reviews.
In-Store(point of sale) Promotion-
Education Hot Spot-It is the small portion of shelf space where brand can talk to the consumers
directly.
Brand Header at Hair care Shelf, New Product Launch Indicators, Sample Display Strands.
Marketing through Magazines, Radio advertisement, Mobile app, Newspapers and Bill Boards.
Guerrilla Marketing - Brand wall stickers kept inside hair salons, lifts, Bus stops.
Outdoor Marketing- cabvertising.
Rural Marketing- Banners on Side Panel of Shop, Keeping stalls at mills, Advertising
through caller tunes, Listen advertise get 1rs balance.
Supply Chain of Godrej Consumer Products Limited
Operational Strategies-Godrej manufacturing strategy globally is also largely local. The
main differentiator between Godrej and other players is that Godrej have kept manufacturing
close to the consumer. So whether it is in Indonesia, Africa, or India, Godrej is That closer the
manufacturing is to a consumer the more relevant Godrej can be to tailor products to a
consumer's needs and agile in serving them. Not only Godrej managed to increase production
capacity and reduce conversion costs, but Godrej are also making our overall system more 'green'
by lowering specific energy consumption.
Flexibility of manufacturing processes Godrej has adopted in terms of Just-in-Time. It
prefers that one assembly line make 20-30 different kinds of products instead of being
dedicated to one product. This allows Godrej to make production schedules switches, and
now have the capability to switch at short notice. Godrej only company that makes daily
changes in production schedule.
Acquiring global companies offers another advantage - strategic sourcing of raw
materials, and if the same material is being sent to other factories, GCPL stands to gain as
it can negotiate with suppliers as volumes increase.
GCPL has turned to the SAP platform to run its operations in India and other geographies too.
SAP manages the entire workflow right from the ordering system to distribution, also helping the
company manage its supply chain. It uses APO (advanced planning and optimization), a module
of SAP to plan efficiently and manage the front-end distribution system. Since the company
manufactures multiple products at a facility, SAP's Manufacturing Operations Solutions help
them execute batch-managed materials precisely with continuous in-process control. Built-in
reports detail batch lifecycles and quantities enabling product traceability.
Some benefits the company has gained are Higher asset utilization, shorter manufacturing cycle
time, improved on-time delivery performance and lower procurement and manufacturing costs.
Ratio analysis-
Dividend per share- compared to FY-15, 0.25 Rs is increased in FY-16.
Operating profit ratio- In FY16 is 20.41%, Compared to FY15 ,2% increased.
Gross profit ratio- In FY16 is19.25%, Compared to FY15, 1% increased, may be reduced raw
material costs.
Return on capital employed- It measures profitability and efficiency of the company. But Gcpl as
Fy16-25.54% almost as same as previous FY-15.
Current ratio- In FY16 1.1% when compared to FY-15,0.11% is increased so we can say that
previous year was some liabilities know they repaid and balanced assets and liabilities.
Quick ratio- In FY16 0.55% we can say that company not having to much liquidity maximum in
wealth in assets.
Interest coverage ratio-Compared to FY15 in FY-16 has increased 3% (i.e. 26.2%) so we can say
that company may taken loans or debts.
Debtors turnover ratio- FY16 is 22.6% compared previous year 11% was decreased because of
company received more amount from debtors that’s why decreased.
Net sales-FY16 Rs 8957.15 cr, FY15 Rs 8242.20 cr.
Total Revenue-FY16 RS 4,854.38 cr FY15 RS 4,487.31 cr.
Total Expenses-FY16 Rs 3,913.17 cr FY15 Rs 3,668.72 cr .
PBT FY16 RS 941 cr, FY 15 Rs 818cr.
PAT FY16 RS 739 cr, FY 15 Rs 654cr.
Reserves and surplus FY16 RS 3789cr FY15 Rs 3749cr
Total capital and Liabilities FY16 Rs 5026cr FY15 Rs 4922, Non current liabilities FY16 Rs
2.6cr FY15 Rs 9.08cr, Current liabilities FY16 Rs 1200cr FY Rs 1529 cr.
Total Assets FY16 Rs 5026 cr FY 15 Rs 4922cr, Fixed assets FY16 Rs 1242cr Fy15 Rs 1239cr,
Noncurrent assets FY16 Rs 3810cr FY15 Rs 3563cr, Current assets FY16 Rs 1250cr FY15 Rs
1348 cr.
L 'Oréal
L'Oréal S.A. is a French cosmetics company headquartered in Clichy, Hauts-de-
Seine with a registered office in Paris.
It is the world's largest cosmetics company and has developed activities in the field of cosmetics,
concentrating on hair color, skin care, sun protection, makeup, perfume and hair care.
company is active in dermatology, toxicology, tissue engineering and biopharmaceutical research
fields and top nanotechnology patent-holder in the United States. Founded in the year 1909.
Type- Société Anonyme, Industry- Personal care. Jan 19 stock price-€170.20.
Movement of stock price- EuroStoxx 50.
HR Functions
Staffing and Recruitment- L’Oréal’s IHR strategy is based on international outlook and
cross-cultural competencies. It recruits staff internationally, and is keen to attract people who
wish to work in different countries. The company takes the view that moving to new countries
and taking on new roles is essential to career development.
Training and Development-L’Oréal views training and development as directed towards
taking on new challenges and acquiring new skills, which are linked to a new country, new role
or new brand. Managers are moved every 3-4 years to a new location. The result is that in any
location, there are people from diverse backgrounds, in terms of culture, job skills, professional
experience and experience of different brands. This makes for highly diverse multicultural teams.
The company sees this approach as an asset, as such teams generate more ideas than would
emerge in a less diverse organization.
L’Oréal IHR policies reflect the diversity in its brands and also the diversity in its
markets.
Marketing strategies
Distribution: Will widen distribution network by giving various incentives to distributers,
retailers, stockiest in order, not to loseself-space to competition.
Promotion: Will be distributing complementary lip care guide on minimum purchase, having
tips on how the various brand ambassadors of L'Oreal Paris apply Lip Color on themselves and
take care of their lips.
Social Responsibility: L'Oreal supports campaign for safe cosmetics which was started in
October 2007. This will help in building consumer confidence, that L'Oreal Lip color is safe
Brand Management
L'Oreal India is the only company to offer products at three different price points -- luxury,
premium and affordable. With this they will have a combination no one can beat.
Operational strategy
L'Oreal believes that it's their obligation to generate value for the customers and hence adopts
various sales strategies to the precise distribution channel of every individual market. With 290
subsidiaries, more than 100 distributors and 42 plants, all spread out in about 130 countries,
L'Oreal is the leader of the cosmetic industry.
First, commercialization of professional shampoos to hair-dressers via distributors in near
Europe (Spain, Italy, Great Britain, Germany and Poland) and in the Americans - "first
landing".
Second, local firms are taken over for example in the USA (Redken 1993, Maybelline
1996 etc.), in Argentina (Miss Y lang 2000) - "go native".
Third, subsidiaries (production, research and development) are directly created
(Greenfield investment) without any first passage via distribution. It is the case in Asia
(Japan and Hong Kong) - "globalization".
Financial Analysis
Performance of sales -from past 5 years sales was increaseing
Performance of operating profit- Profit also increasing because of their brands diversifying
and satisfying the customers and apply strategies according to the competitor.
Dividend
For shareholders who continuously hold their shares in registered form for a minimum of two
full calendar years, up to a maximum of 0.5% of the capital for the same shareholder.
Dividend proposed to the Annual General Meeting of April 20, 2016.Based on the dividend
proposed to the Annual General Meeting of April 20, 2016.
Pay-out ratio based on diluted net profit excluding non-recurring items, after non-controlling
interests, per share.
Financial Ratios
Learnings
Through this product for exposure of different products producing different companies
with extended brands.
I observed how companies positioned their products in to consumer mind. Different
Marketing strategies companies are implementing, operational strategies.
Searching the data, knowing the customers respondents about hair dye Through
conducting survey like question pro which may tome how to frame questionnaire.
All about I can say some thing gained Glance about product hair dye.
Conclusion
The study says that First yearly days hair color launched people think that 40 years above
women. But present transformation yearly days to today hair color market growing in by 2700 cr
due to the not only because of gray hair. The reason company targeted young generation towards
variety gray of styles in coloring hair and generally at present scenario increasing younger
generation to middle generation grey hair. So at present in India hair colorants market is 17% To
fill that gap companies eventually concentrating variant in products. So Above report shows in
analysis hair dye how the companies transformed up to know in Hair dye product in market and
haircare industry.