OLYMPUS

Case Study Competition

GOONJ14

Say It Out Loud

Department of Management Sciences,

University of Pune (PUMBA)

GOONJ14
University of Pune (PUMBA)

Department of Management Sciences,

Olympus is a Case study competition to be held in Goonj13.

Participants in this competition will get to test their business acumen in
front of Best of talent and jury. Prove yourself, Participate, showcase
your potential.
Win or lose, you will surely learn!!!!
Give it your best shot. ALL THE BEST.

Round-1

Participants need to send a PPT of 5 slides (+1 Details Slide) answering

questions
given below the case.
Details to be included in First Slide:

Name of Participants, Division Name, Seniors/Juniors(Also

MBA++ / MBA BT), Contact Number, Email ID
Deadline: Thursday 18th Dec, 05:00 PM.
Submission Format: .ppt / .pptx
File Name: Olympus_Goonj_Div_Partner1Name
Subject Line: Olympus_Goonj_Div_Partner1Name

Presentation to be sent on e-mail ID: olympus.goonj.2014@gmail.com

Result of Round 1 will be declared on Thursday 18th Dec, 10 PM.
Round II
Event on 19 December 2014

Participants will need to give the presentation in front of the Faculty and
Guests from
Industry.
Details to be included in First Slide:
Name of Participants, Division Name, Seniors/Juniors(Also MBA++ / MBA
BT),
Contact Number, Email ID
Presentation Time Limit: 10 Minutes (No slide limits)
Presentation to be sent on e-mail ID: olympus.goonj.2014@gmail.com
Deadline for sending Presentation for round II: Friday 19th Dec, 05:00
AM.

GOONJ14

Department of Management Sciences, University of Pune (PUMBA)

File Name: Olympus_Goonj_Div_Partner1Name

Subject Line: Olympus_Goonj_Div_Partner1Name

Only shortlisted candidates from Round-I need to present the case study at final
day of event Olympus i.e. 19th Dec 2014.
For both Rounds same case will be used.

For any queries please contact the organizers.

Dev Roy (9975316725)
Sneha Bhujbal (8149139994)

CASE:

GODREJ EXPERT HAIR COLOUR

The Indian Hair Colour market
In the year 2012, the hair care segment in India increased by 18% in current value terms, to
reach Rs.11,600crore. Within this segment, the hair colourants category saw the fastest
current value growth of 29%, and stood at approx.Rs.2000 crore. This translates into roughly
17% of the hair care market, by value.

Category

%
Sales

Hair Oils and

Conditioners

41

Shampoos

36

Colourants

17

SalonHair Care

Styling Agents

Fig 1: Percentage Sales of Hair Care by Category: Value (2012) {Source: Euromonitor International}

In India, hair colorants have proven to be the hair care industrys crowning glory. Once
primarily used to cover grey hair, hair colourants have today emerged as a lifestyle need.

GOONJ14

Department of Management Sciences, University of Pune (PUMBA)

An analysis of the drivers for growth of this market include rising disposable income,
growth in awareness and fashion consciousness, increasing media penetration, and a
tremendous rise in organized retail. An expanding distribution network ensures that more
and more people have access to these products, while mid-priced brands and smaller
packs havebeen launched to tap into the high-potential mid-segment.Moreover, beauty no
longer remains a domain restricted to women; it has gone beyond and encompassed males
who are spending more on grooming products.
Despite all of the above factors, the key challenge faced by this sector is the perception that
most hair colourants contain harmful chemicals that adversely affect the quality of hair in the
long run. To combat this, companies have introduced ammonia-free hair colours and
colours with certain natural ingredients like olive oil and aloe vera, which have led people
to become more amenable to using them.

The Delivery Formats

Hair colourants are available in a variety of delivery formats, namely:

Powder-based
Cream-based
Oil-based emulsion
Shampoo-based
Liquids

The genesis of the Indian hair colour market was with liquid hair colours. Powders as format
gained acceptance post the launch of Godrej hair colourpowder in a sachet, creating new
levels of access due to low put down price and simplicity of use.
Through the '90s, the popular hair colours were powder dyes or oil-based liquids. In 1997,
LOreal launched its premium brand Excellence Crme, which introduced the concept of
hair colour other than just the regular black and dark brown in an easy to apply form. They
also launched their Salon Business, aimed at getting the experts (stylists / barbers etc.) to
endorse the crme format and the LOreal brand.
However, even today, powder hair dyes comprise the biggest segment in this category, by
volume followed by cream based haircolours. In terms of franchise, the powder franchise is
approx. 10x the crme franchise (in terms of the number of households using.)
Delivery Format

Value-Base Share

Powder based
Cream based

45-50%
25%

Fig. 2: Delivery Formats: Value Share (Source: Business Standard, 2012)

According to industry estimates, powder hair colour constitutes 45-50 per cent of the hair
colour market by value, and is growing at 15 per cent yearly.

GOONJ14

Department of Management Sciences, University of Pune (PUMBA)

Cream hair colour constitutes 25 per cent by valueof the hair colour market and is growing
at about 20 per cent yearly. This growth is partly because of the in use sensorials as well as
the modern image that this format has.

The market segments: Salon v/s DIY

The hair colorants market has two distinct segmentsthe professional coloring service
offered by salons and the DIY at-home hair color market.
LOralProfessionnel, followed by Schwarzkopf and Wella, dominate the professional
market. This segment has seen steady growth, predominantly in the metropolitan market
since the tier two market consumers are slower to warm up to the relatively higher pricing
of these color services.
However, it is the at-home hair color market that has really excited the big marketers. It is
the market that is generating the highest volumes for most of them, but it is also the segment
that is facing stiff competition as many national and international brands compete for
consumers share of mind, heart and wallet. Some key brands in this market have been
indicated below.

Brand Shares - The at-home market:

Godrej Consumer ProductsLimited (GCPL) is the overall market leader in the hair colour
categoryderiving nearly 15 per cent of its domestic revenues from hair colour.Though it has
dominated the powder hair colour segment in India with a market share of 33 per cent in
this segment (Source: ACNielsen), however it hasyet to obtain a firm footing in the cream
hair colour format.
Currently, the top end of the hair colour market in the cream segment is dominated by
L'Oreal (60 per cent) followed by Streax (9 per cent). The colour cream category is skewed
towards the urban metros while the powders are being used mostly by Tier 2 and Tier 3
cities.
Vasmol from HRIPL (Hygienic Research Institute Pvt. Ltd.) tops the emulsion-based segment
with a 91 per cent share by value.Indian hair colour brands such as Godrej Kali Mehandi,
Black Rose Kali Mehandi (Henna Export Corporation), and Indica (CavinKare) contain
natural colouring agents such as henna/mehandi and thus are perceived to provide a more
natural way to colour hair.
Brand
Godrej Hair Dye
Super Vasmol
L'Oreal
Excellence
Creme
Garnier Colour Naturals

Company
Godrej Consumer Products
Ltd.
Hygienic Research Institute

2009

2010

2011

2012

26.0

25.8

24.2

23.3

17.0

16.0

15.8

15.6

L'Oreal India Pvt. Ltd.

10.8

10.8

10.8

10.9

L'Oreal India Pvt. Ltd.

5.0

5.3

5.6

5.6

4.0

4.2

4.3

4.6

4.0

4.3

4.5

4.6

Indica

CavinkarePvt. Ltd.

Godrej Coloursoft

Godrej

GOONJ14

Consumer

Products

Department of Management Sciences, University of Pune (PUMBA)

Ltd.
Streax

Hygienic Research Institute

2.3

2.0

2.0

2.0

Revlon Colorsilk

Modi Revlon Pvt. Ltd.

0.9

0.9

0.7

0.6

Others

Others

30.0

30.7

32.1

32.8

Total

Total

100.0

100.0

100.0

100.0

Fig 4: Brand Shares by Value (in %)(Source: Euromonitor International)

Godrej Hair Colours:

Godrej was one of the early pioneers in the hair colourants category. It launched its first hair
colour brand Godrej Liquid Hair Dye in the 1970s. Used in those days with some degree
of hesitation, it did become a category leader and laid the foundation for the market-tocome.In keeping with market developments, Godrej added to its portfolio in 1981 by
developing and launching a hair dye in powder form.
1n 1995, it revolutionised the market by packaging its hair dye in an economical, easy-touse, convenient-to-carry sachet format called Godrej Powder Hair Dye. In rural India
which is traditionally price sensitive, it had an open sesame effect. Its unique selling
proposition put succinctly in its communication Kaato, Gholo, Lagaalo(cut, dissolve, apply)
helped it establish unquestioned leadership.
Godrej Expert:
In 2008,Godrej Powder Hair Dye was relaunched as Godrej Expert Powder Hair Dyeand
carried with it the promise of a much-needed product innovation. The colour lock
formulation technology developed by Godrej, enabled colour molecules to cover every
hair strand for a long-lasting, natural look. Simultaneously, the mildly perfumed conditioner
nourished hair and made it soft and shiny.
In 2011, a further relaunch provided a range of innovations. Godrej Expert Original is the
basic black hair colour (with the largest hair colour consumer franchise in India), Godrej
Expert Care (a henna based colour with the goodness of henna and amla) and Godrej
Expert Advanced(powder that forms a gel); the flagship gel innovation that took care of all
the fundamental powder format challenges - Non Drip, triple conditioner; and great post use
hair feel.
Another innovation in the Expert hair colour franchisewasthe launch of theGodrej Expert
Rich Crme in 2012.For the first time in India, a crme hair colour was made available in
convenient pre-measured sachets. It is available in five shades, and is enriched with the
goodness of aloe-protein which keeps the hair soft & shiny.Expert Rich Crme also offers a
complete one-stop solution by way of a Hair Colouring Kit (colour sachet + developer
sachet + hair colouring brush + mixing bowl + gloves + ear caps + stain removal wipe +
conditioner) to hand-hold the first timers. Godrej Expert Rich Crme is affordably priced at
Rs.59 for the Kit and Rs.30 for the Single use pack (colour sachet + developer).

GOONJ14

Department of Management Sciences, University of Pune (PUMBA)

Product

Price

Format

Godrej Expert Original

Rs. 15 / sachet

Powder

Godrej Expert Advanced

Rs. 15 / sachet

Powder

Godrej Expert Care

Rs. 20 / sachet

Powder

Godrej Expert Rich Crme

Rs. 30/ sachet

Rs. 59 (for the kit)

Cream

Fig. 3: The Godrej Expert Range

Other Cream-based hair colours from Godrej:

Apart from Godrej Expert Rich Crme, Godrej has two other cream- based hair colour
brands, namely Godrej Colour Soft and Godrej Renew.
Godrej Colour Soft is positioned as a gentle hair colourantthat guarantees a pleasant
colouring experience. The built-in conditioner gently penetrates the hair during the
colouring process and strengthens it. The post-colour Moisture Lock conditioner gently
refreshes every strand, locking in moisture. Colour Soft offers a complete hair colouring kit
which includes a 40 ml colourant, 40 ml developer lotion, 4 post-colour conditioner sachets
of 24ml, a measuring cup, an instruction leaflet, a pair of gloves and a protective cape.
Godrej Renew cream hair colour is a breakthrough formulation which conditions hair, not
once but twice resulting in twice the shine and softness. It contains Aloe + Hibiscus
conditioners that protect and revitalize hair while colouring. The special after colour
conditioner provides nourishment and moisture to coloured hair, giving it a healthy shine. It
is available in two sizes. 50ml priced at Rs.125 and the new 20ml pack priced at Rs. 55.

Henna and henna-based colours from Godrej:

In their natural hair colour range, Godrej Nupur is a 100% natural hair colour whileGodrej
Kali Mehandi and Godrej Kesh Kala contain natural colouring ingredients such as
mehandi and other herbal extracts to give a natural colouring to hair.
Key Competitors in the cream hair colour segment:
Brand
Name

GOONJ14

Celebrity
in Ads

Key Differentiators

Type
Constituents

and

Price per kit

No. of
shades

Department of Management Sciences, University of Pune (PUMBA)

LOreal
Excellence
Crme

LOreal
Casting
Crme
Gloss

Revlon
Colorsilk

Aishwarya
Rai

Sonam
Kapoor

None

Godrej
Renew

GarnierCo
lor
Naturals

Karishma
Kapoor

Godrej
Coloursoft
SonakshiSi
nha
Streax

Godrej
Expert
Rich
Creme

PerizaadZo
rabian

Contains a 3X formula
Ceramide which
protects,
Collagen
which restores and
pro-keratin
which
strengthens

Permanent
Colour,
100% grey Coverage,
contains ammonia. The
pack consists of a
protective
serum,
colourant,
developer
and conditioner.

Rs.559

10+

Targets
younger
consumers who want
to get stylish, glossy
looking colour.

Semi-Permanent
colour, no ammonia,
50% grey coverage.
The pack consists of a
colourant,
developer
and conditioner.

Rs.529

10+

Imparts luminosity to
hair.

Permanent
Colour,
contains ammonia. It
consists of a colourant,
developer
and
conditioner.

Rs. 350

10+

Contains the goodness

of Hibiscus and Aloe
vera

Permanent
Colour,
100% grey Coverage,
contains ammonia

Rs. 125

It has a nourishing
cream formula and
contains olive oil.

Permanent
Colour,
100% grey Coverage,
contains ammonia. The
pack consists of a
colourant,
developer
and conditioner.

Rs.155

Mild and gentle

colour

No ammonia

Rs. 140

its key ingredient is

Walnut
Oil
which
helps strengthen and
imparts colour. It also
has a Kera-Vit formula
which conditions hair.

Permanent
Colour,
100% grey Coverage,
contains ammonia. It
consists of a colourant,
developer
and
conditioner.

Rs.120

17

Contains
goodness
Protein

Permanent Colour, No
Ammonia,
Premeasured sachets

Rs.59

of

hair

the
Aloe

*The italicized Godrej brands are not on air.

Fig. 4: Key competitors in the cream hair colour segment an overview

GOONJ14

Department of Management Sciences, University of Pune (PUMBA)

The Communication Tasks

To strengthen Godrejsleadership positionin the hair colour market in the face of new
age competition by:
o Bringing new users to the category through the Godrej hair colour product
portfolio
o Driving format uptrades within the Godrej Expert Brand
To build relevance of the brand in the mind of the consumer through impactful and
innovative brand building initiatives.

The Communication Challenge

Godrej Expert currently faces the following major challenges:

Despite being the largest franchise in India it is seen as the category default. Its
strength on Godrej Expert Original is linked strongly to the low put down price. The
strong identification of consumers with Godrej Expert Original, makes their
acceptance of premium / value creating propositions from the brand a slow burn

Godrej Expert is seen as a great entry point for consumers who enter the category.
However, whenever they upgrade, they tend to switch to competing brands such as
LOreal, etc. that are seen to have more brand sheen.

Thus, the key communication challenge here is topropose astrong positioning &
differentiation to build the brand image of Godrej Expert vis-a-vis competition.

Key Deliverables
The task is to provide a communication strategy that details the way forward for Godrej
Expert which would help build the brands in the most effective manner. The strategy
document must provide solutions to the following key areas;
1. Identify key challenges for the brand and its communication.
2. Identify key characteristics of the target consumer.
3. Identify the key consumer insights in the target group and architect the offerings along
the needs of the consumer.
4. Identify the right positioning and messaging platform for targeting the consumer.
5. Identify the right communication message for the brand.

GOONJ14

Department of Management Sciences, University of Pune (PUMBA)

Judging Criteria:
Marks will be allotted for:
1. Originality of the contribution.
2. Supporting decisions with facts and evidence.
3. Effective utilization of allotted time.
The decision of the organizers will be final and shall be applicable to all teams.

For any queries please contact the organizers.

Dev Roy (9975316725)
Sneha Bhujbal (8149139994)

GOONJ14

Department of Management Sciences, University of Pune (PUMBA)