The project details are as follows-
1. Whether the selected brand was successful or a failure?
2. For either of the answers; the students will have to provide reasons based on their
understanding of Consumer Behaviour topics (e.g., Cb & technology, motivation, personality,
perception positioning, segmentation, attitude formation and change).
7. Some suggested lines of writing (not exhaustive): Give a background of the company and
product in the introduction, give the intended segment the product was targeted, was the
product solving any problem that the consumers were experiencing or reducing any tension in
the consumer, what were the marketing communication techniques that were used to appeal to
the consumer (use knowledge of CB)? Did it succeed? Did the product require any change in
the existing web of attitudes or does it need change? What is the future of the product?
● Introduction bhu
● Company background bhu
● Product background bhu
● Industry background bhu
● Segmentation of product- Consumption pattern - vishakha
● Behavioral segmentation, Gender segmentation, Income segmentation, Age
segmentation, Psychographic segmentation vishakha
● Utility of product in consumer demand simone
● Marketing channels(adv) and messages to reach consumers ( Marketing strategies)
anushka
● Success or failure of the communication - arnab
● Any change in product evolution/ Suggestion of product evolution simone
● Future of product simone
INTERNAL AND EXTERNAL FACTORS AFFECTING CONSUMER BEHAVIOR
Introduction:
The international hair care marketplace is predicted to increase at a CAGR of 3.35 percent (2021
- 2026). The Haircare Market is segmented through Product Type Shampoo, Conditioner, Hair
Loss Treatment Products, Hair Colorants, Hair Styling Products, Perms, Relaxants, and Others;
Distribution Channels encompass Supermarket/Hypermarket, Convenience Stores, Specialty
Stores, Pharmacies/ Drug Stores, Online Channels, and Other Distribution Channels The
increasing awareness of the availability of new, more effective, and safer hair care products has
resulted in a major growth in the usage of organic and innovative products, which has bolstered
the worldwide hair care industry.
The Indian Hair Care Market is expected to increase at a CAGR of 6.58 percent to reach USD
4.89 billion by 2025. (2020 - 2025).
Consumer dynamics are changing, and product awareness is expanding, which has been defined
as a crucial factor. The demand for products containing natural components has risen as the
number of cases of hair loss and damage among the population has increased. Consumers'
willingness to pay a premium for products that deliver speedier results has been highlighted as a
growing trend among the urban and youth population. Users are more interested in products
created for specific hair types, with focus placed on active ingredient-rich solutions.
Company Background:
Loreal India Pvt Ltd
L'Oréal was a hair-color solution created in 1907 by French scientist Eugene Schueller.
"Aureole'' was the name given to it at the time. Schueller designed and developed his own
products, which he sold to hairdressers in Paris. Schueller registered his company as "Société
Française de Teintures Inoffensives pour Cheveux," the eventual L'Oréal, in 1909. Schueller
started exporting his products, which had been initially confined to hair colorants. Schueller's
products were also distributed in the United States, South America, Russia, and the Far East
through agents and consignments. As of now, the L'Oréal Group has subsidiaries and agents all
around the world making its presence known. L'Oréal began to diversify its product line beyond
hair colour to include other cleansing and cosmetic items. In the cosmetics industry, the L'Oréal
Group now sells approximately 500 brands and 2,000 products under its umbrella. Hair colours,
permanents, styling aids, body & skincare, cleansers, and fragrances are just a few examples.
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Industry & Product Background:
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SEGMENTATION OF THE PRODUCT: L’OREAL PARIS SHAMPOO (Vishakha)
L’Oreal has had different forms of market segmentation since it came to India. When it entered
the Indian market in 1991, it basically followed two types of segmentation:
a) Gender Segmentation:
L’Oreal segmented the Indian market based on Gender and their products catered to the
women sector of India. The brand believed that women in India like to use herbs and
natural ingredients as a part of their beauty culture.
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b) Income Segmentation:
The two major segments in the Indian market were “the poor masses” and “the rest”. It
brought in some low cost products to cater to the “Poor masses”. They were not very
proactive in targeting the middle and the upper class sections of India.
However, this seemed to be a poor start for L’Oreal and eventually they hd to change their
segmentation concept. There were some home brands in the country which offered cheaper
products than L’Oreal and their long presence in the Indian Market had created a sense of
brand loyalty for the consumers. Thus L’Oreal had to revise its segmentation in order to identify
its target segment better. The current segmentation is as follows:
a) Income Segmentation
Now L’Oreal has 3 major segments instead of the initial two. The third and the new
segment is the middle class, which was identified as the fastest growing income class in
India. This segment presented an untapped market potential and had a different mindset
than the other two masses. The brand follows a differentiation strategy to target the
middle, upper middle and upper income class customers, who are working professionals
and like to flaunt their personas.
b) Psychographic Segmentation
The psychographic segmentation is as follows:
The Older: These are the conservative Indians who hold their values stubbornly.
The Younger: This segment represents an impressionable generation who has
developed a westernized mindset on spending and culture.
c) Age Segmentation
The Indian market was also segmented as younger and older generations based on age.
d) Benefits Segmentation
This form of segmentation is based on the core concept of L’Oreal’s marketing strategy
which focuses on additional benefits to consumers when choosing between L’Oreal and
Home brands. It focuses on additional benefits like a 360 degree protection to hair, a feel
good long lasting effect, shine and nourishment to damaged hair, an ingredient
penetrating upto 10 layers of hair etc.
Arnab
Loreal strategy - Universalization
The company believes in selling its products through a universalization strategy whereby they
have a global presence and also tailor made products for the local markets. The company
though has a strategic concentration, it operates in a decentralized manner in the markets of the
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United States, Japan, India, South Africa, Brazil and China, with separate research and
innovation centres specific to each country.
Ref:
Strategy & Model of Loreal Groupe,
https://www.loreal.com/en/group/about-loreal/strategy-and-model/
Loreal Paris
The famous tagline of ‘You're worth it’ for Loreal Paris was created 50 years ago which brought
an advertising revolution meant to empower women.
Indian consumers hardly had any active conversation on women empowerment back then.
However, the voice of empowerment given to women through this advertising campaign made
society realize the importance of diversity and inclusion.
Brand awareness through celebrity endorsements
Over the years, the campaign has involved women endorsers of all ethnicity, age and from
different stages of their lives. In the words of the employees, Loreal products are meant to be
used by women from all around the world and their choice of influencers represent the
empowerment they communicate. Celebrity endorsers from Aishwarya Rai Bachchan to Eva
Longoria have been represented in their marketing ads to influence the consumers.
Communication Success
50 years is a long time enough to prove the sustainability of the campaign and the brand.
The advertising campaign achieved its target of establishing women as smart individuals and
showing the masses that they are more than their outer appearance.
A sense of confidence was instilled among the target consumers that no matter which part of
the world they come from,they have their own identity and should be proud of carrying it with
them, because ‘They’re worth it!”
Recently, the brand has adopted a new campaign slogan of ‘Stand Up’ which aims to highlight
the issues of street harassment and stand up and speak against the same. This kind of
innovation brought about by the brand emphasizes their long term vision of making changes to
the society by empowering women as the top priority. The campaign also syncs with the women
consumers of the product who look forward to having greater independence in their lives.
Hence, it can be said that the communication through the advertisement campaigns have been
a success for the brand. It also resulted in an attitude change where consumers were influenced
by the campaigns and benefited from direct personal experiences of using the products.
Ref:
Karuna Sharma, The evolution of L'oreal Paris 'You are worth it' tagline, March 9, 2021
https://www.businessinsider.in/advertising/brands/article/from-youre-worth-it-to-stand-up-how-lor
al-paris-communication-has-empowered-women-over-the-years/articleshow/81395810.cms
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https://www.mordorintelligence.com/industry-reports/hair-care-market-industry
https://www.euromonitor.com/hair-care-in-india/report
Anushka - Product range in India (Shampoo), Marketing campaigns, Digital Marketing
L’Oréal Paris has been constantly innovating its shampoo range to cater to the demands of its
ever-growing and diverse range of consumers. It offers a wide range of shampoos to choose
from depending upon one’s hair type and needs, and to address different hair problems.
The L’Oreal Paris Shampoos range are as follows –
· L’Oréal Paris Total Repair 5 Shampoo – This shampoo provides intense nourishment
and repair to damaged hair and combats the 5 visible signs of damage and helps in
improving one’s hair’s strength and resilience.
· L’Oréal Paris Dream Lengths Shampoo – This shampoo is for dry hair type and helps
in growing longer and stronger hair. It helps in protecting the last 3 centimetres of
hair and seal split ends.
· L’Oréal Paris 6 Oil Nourish Shampoo – This shampoo treats dry and lifeless hair and
transforms it to soft, shiny, and manageable. It provides complete nourishment from
roots to tip of the hair.
· L’Oréal Paris Fall Resist Shampoo – This hair fall control shampoo nourishes and
strengthens the roots and restructures hair fibres to make them stronger.
· L’Oréal Paris Extraordinary Clay Shampoo – This shampoo is for dealing with oily
roots and dry ends. It refreshes the scalp and moisturizes the locks, prevents the hair
from pollution using clay and gives one a fresh and free-flowing look.
· L’Oréal Paris Colour Protect Shampoo – This shampoo helps in protecting the hair
color and prevents it from fading quickly. It also prolongs the hair color’s vibrance
and radiance and shields from drying.
· L’Oréal Paris Anti-Dandruff Shampoo – This shampoo cleanses the scalps and helps
remove dandruff and also nourishes the hair from root to tip and provides strength.
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Evolution of the Brand Tag Line – The original tagline of L’Oréal Paris, “Because I’m Worth It”,
was coined by Ilon Specht, a junior female copywriter who was in her early 20’s in a male
dominated industry, making the phrase even more revolutionary. It portrayed a more assertive,
more contemporary and more real woman.
The tagline was changed in the year 2009 to “Because You’re Worth It” and it reached an
iconic status, making women across the globe feel empowered and connected to L’Oréal Paris.
The tagline was finally changed to “Because We’re Worth It”, emphasizing on the consumer
involvement in all the brand products.
Brand Ambassadors –
L'Oréal Paris has always focused on powerful, independent young achiever women
globally. In India, it has reached out to different actresses from time to time to promote
its various shampoo ranges. Aishwarya Rai, the former Miss World, has been the brand
ambassador of L'Oréal Paris from a long time, and the advertisement of L’Oréal Paris
Total Repair 5 Shampoo, featuring her, with the iconic line, “5 problems, 1 solution”, has been
etched in the minds of consumers.
L'Oréal Paris has reached out to various actresses to promote its different shampoo
ranges, like Sonam Kapoor promoting the L’Oréal Paris Fall Resist Shampoo range, while
Katrina Kaif promotes the L’Oréal Paris 6 Oil Nourish Shampoo range. Deepika Padukone is the
latest addition, promoting the L’Oréal Paris Extraordinary Clay Shampoo range.
Advertisement Campaign –
● Stay Rooted – To introduce its latest hair fall repair shampoo, L’Oreal Paris Fall Repair
3X’; L’Oreal Paris India put forth a question – If you could go back in time and thank
someone, who would that be? But one can ‘why so?’. The answer lies in roots, the roots
of your hair as well as the roots that have made you ‘You!’
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Almost every shampoo in the market boasts about providing strong and lustrous hair, but
what really matters is the roots that make the hair strong. Based on the philosophy that
real strength of people comes from their ‘roots’ L’Oreal has launched the ‘Stay Rooted’
campaign, where consumers are encouraged to connect with their roots by taking the
time out to thank and appreciate the people, things and places that have influenced
them in their past.
For the ‘Stay Rooted’ campaign, L’Oreal Paris India had created a film ‘Go back in time’,
that featured people from different walks of life thanking that one special person who
helped them connect with their roots. The idea of ‘Stay Rooted’ had been ingrained into
each piece of content across social media platforms, and through this single-point
message it aimed to connect with consumers on an emotional level. Playing around with
the idea of staying rooted to promote a hair fall shampoo and making that the core
message of the campaign were the two pillars on which it stood tall
● #WinOverDamage – The #WinOverDamage campaign was designed for its “Total Repair
5” range, featuring global ambassador Aishwarya Rai Bachchan and Shobhita Dhulipala
as the new face in the campaign. The campaign aims to highlight the proposition of the
Total Repair 5 hair care range that helps repair hair damage, backed by latest scientific
innovations tailored to specific hair care needs.
The campaign touches the emotional chords of the multi-tasking women, who shoulder
both personal and professional responsibilities and then often tends to compromise on
self-care. That’s when products like Total Repair 5 come to her rescue, as L’Oreal Paris
believes every woman deserves extra care and she truly is worth it!
Digital Marketing - L’Oreal Paris has been steadily working towards increasing its social media
presence across all platforms, and has been increasing its digital investments. It is looking to
engage with consumers directly through a wide range of digital initiatives such as video
advertising, online influencers, and personalised communications and recommendations.
L’Oreal is ensuring that it uses the right channels to communicate with the
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tech savvy millennial generation as they enter their high spending year, to
drive revenue growth.
References -
Shatzman, C. (2021, March 5). L’Oréal Paris Celebrates 50 Years Of Their Iconic
‘Because You’re Worth It’ Slogan. Forbes.
https://www.forbes.com/sites/celiashatzman/2021/03/05/loral-paris-celebrates-50
-years-of-their-iconic-because-youre-worth-it-slogan/?sh=2bb5bc1f5a24
Naidu, V. (2013, July 3). L’Oreal Paris India Launches The Stay Rooted
Campaign For Its New Hairfall Shampoo. Business 2 Community.
https://www.business2community.com/social-media/loreal-paris-india-launches-th
e-stay-rooted-campaign-for-its-new-hairfall-shampoo-0541977
Adgully Bureau. (2019, July 9). L’Oréal announces #WinOverDamage campaign
featuring global ambassador. Adgully.Com.
https://www.adgully.com/l-or-al-announces-winoverdamage-campaign-featuring-g
lobal-ambassador-86849.html
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