Garnier Men

1

Contents INTRODUCTION: ............................................................................................................................................ 3

Introduction of Company: ......................................................................................................................... 5

Values: ....................................................................................................................................................... 6

Mission: ..................................................................................................................................................... 8

Our Ethical Values: .................................................................................................................................... 9

Our Ambition: ........................................................................................................................................... 9

BEAUTY FOR ALL, BEAUTY FOR EACH INDIVIDUAL ......................................................... 9

OBSERVE LOCAL BEAUTY CUSTOMS ..................................................................................... 9

FACILITATING ACCESS TO COSMETICS PRODUCTS ........................................................... 9

TO ACCELERATE THE REGIONALISATION OF OUR EXPERTISE ....................................... 9

History: .................................................................................................................................................... 10

SWOT L’Oreal: ............................................................................................................................................. 11

Strengths: ................................................................................................................................................ 11

Weaknesses: ........................................................................................................................................... 12

Opportunities: ......................................................................................................................................... 12

Threats: ................................................................................................................................................... 12

What are the chances and risks the company faces? ............................................................................. 13

How could the company respond to the external forces? ..................................................................... 13

GARNIER MEN PAKISTAN: ........................................................................................................................... 14

Products available in Pakistan are; ......................................................................................................... 14

Ingredients: ............................................................................................................................................. 15

SWOT of GARNIER MEN PAKISTAN: ............................................................................................................ 15

ENVIRONMENTAL ANALYSIS ............................................................................................................. 16

Micro Environment: ................................................................................................................................ 16

Macro Environment: ............................................................................................................................... 17

Current Marketing Mix: .............................................................................................................................. 18

Garnier Men

2

Product: ................................................................................................................................................... 18

Price: ....................................................................................................................................................... 19

Place: ....................................................................................................................................................... 20

PROMOTION: .......................................................................................................................................... 21

Market Research: ........................................................................................................................................ 21

Methodology and Findings: ........................................................................................................................ 22

Interview from two L’Oreal Representatives: ......................................................................................... 22

Interview from five Managers and observations in different Cash and Carries in Islamabad: .............. 25

Survey in the form of Questionnaire: ......................................................................................................... 29

Graphical representation of the results: ..................................................................................................... 31

Competitors Analysis: ................................................................................................................................. 38

Future Strategies to Solve These Problems (Recommendations): .............................................................. 41

Target Market: ........................................................................................................................................ 41

Re-Branding: ........................................................................................................................................... 43

Promotion: .................................................................................................................................................. 44

Life Style: ................................................................................................................................................. 55

Owning distributor: ................................................................................................................................. 55

Presence: ................................................................................................................................................. 55

Placement: .............................................................................................................................................. 56

Local involvement: .................................................................................................................................. 56

GROWTH BARRIERS .................................................................................................................................... 56

Action Plan .................................................................................................................................................. 57

1) Resource allocation: ........................................................................................................................ 58

2) Distribution Improvement: ............................................................................................................. 58

3) Aggressive Marketing:..................................................................................................................... 58

4) Availability: ...................................................................................................................................... 59

5) Feedback ......................................................................................................................................... 59

Conclusion ................................................................................................................................................... 60

References: ................................................................................................................................................. 61

Garnier Men

3

INTRODUCTION:

With the help of globalization and improvement in technology, science, society, economy and

education people are able to have better standard of living. Due to this factor there is a development

in purchasing power of consumers and market trend causing people becoming more conscious of

hygiene and beauty (Souiden & Diagne, 2009). It leads to the rapid growth in beauty care industry,

especially in this decade. Because of the quality of the market is quite high in terms of profit and

value, so it has attracted many companies to enter to this market globally. Even though there is

severe competition in beauty care market all over the world; still many companies are investing in

this market to fulfill the high demand of this market.

All of us want to be look beautiful and healthy. Today’s global world creates models. These models

are then shown to us all around using daily life technologies as on the television, in the

commercials, on the billboard, in the fashion shows, in the magazines, in the streets and even at

school, colleges and universities or at workplace. This is a fact that most of us want to be like these

models who are both men and women, having a smooth bright skin with an ideal body shape for a

fantastic life (Nair et al, 2007).

This trend of following models has led to growth in cosmetic brands. But the next question is what

cosmetics are? How to define them? Basically cosmetics are substances used to increase the

smoothness and beauty of the human body. It implicitly shows that you are compensating for

something you do not have. Cosmetics include products such as shampoos and soaps as well as

make-up, face wash, hair cares and perfumes.

The women market of cosmetics is there since many years whereas men market of cosmetics is

growing since a few years. Keeping in mind of this trend of growing men market of cosmetics

many companies have launched cosmetics products for men around the globe and L’Oreal is one

Garnier Men

4

of them. L’Oreal has introduced Garnier Men around the globe including Pakistan. Garnier Men

was launched in 2013 in Pakistan. It launched three of its products as follow:

1. Garnier Men PowerLight

1.1. Intensive Fairness Face wash

1.2. Intensive Fairness Moisturiser with SPF15

2. Garnier Men OilClear

2.1. Deep Cleansing Face wash

But the performance of Garnier Men in Pakistan was very unsatisfactory last year. Garnier Men

was not able to generate revenues according to the expectations of company. Its sales were very

low as compared to its markets. This bad performance motivated us to choose this topic for this

report. After market research we came to know that there were two main reasons of bad

performance in the last year: firstly, brand awareness of Garnier Men was very low, hence their

promotion strategies were not good enough to create awareness and secondly, their distribution

channels are not enough to meet demand. Hence we worked on these two problems and come up

with certain recommendations to solve these issues.

Garnier Men

5

Introduction of Company:

Formed in 1907 by Eugène Scheller, a young French chemist, today L’Oréal Paris is the largest

global cosmetics and beauty brand currently present in over 65 countries, including Pakistan, with

headquarters in the Paris suburb of Clichy, Hauts-de-Seince, France. L’Oréal Paris is a leader in

new trends and innovations; it is brand that is rooted in scientific progress. Their key values

represent the 20th century woman with the global slogan ‘Because you’re worth it’ - a philosophy

that instills a sense of self esteem in people.

With a milestone 100 years of expertise and refinement, the L'Oréal Paris portfolio incorporates

and addresses all areas of beauty – skin care, hair color, hair care and make up. Within skin care,

L'Oréal Paris offers a complete beauty regime with their Dermo Expertise brand; Hair Colour

includes the unbeatable Excellence Crème and Casting ranges while the Hair Care range with

Elvive and Studio Line for Hair Styling are coveted. The brand includes an entire range of products

under the eponymous Make Up brand, L'Oréal Paris.

Over the years, L’Oréal Paris has also been involved in various humanitarian causes globally. The

esteemed L'Oréal Paris and UNESCO for Women in Science partnership rests on the fundamental

belief that the world needs science and science needs women. L'Oréal Paris has also actively

supported the ‘Ovarian Cancer Research Fund’ and in conjunction with the celebration of its

centenary, L’Oréal Paris introduced 100 citizen projects designed to assist and support the most

vulnerable communities on a local level through concrete initiatives.

L’Oréal Paris has always led the way in supporting and associating with the latest fashion trends

and innovations, the global fashion weeks, and following the same route, this year, L’Oréal Paris

in Pakistan announced their exciting official partnership with Fashion Pakistan Week starting 05

April 2010. This long term association sees L’Oréal Paris as Official Creator of the ‘Look’ for

Fashion Pakistan Week in consultation with Saba Ansari of Sabs Salon. L’Oréal Paris will also be

bringing their internationally coveted ‘black carpet’ to Fashion Pakistan Week and an official

L’Oréal Paris studio space revealed for fashionistas to experience the L’Oréal Paris product range

and expertise, from top to toe!

Garnier Men

6

Claiming a right for a multi-faceted beauty over a standardized or perfect beauty, the brands’

international ambassadors have thus always been icons from the world of arts, fashion and beauty;

Penelope Cruz, Aishwarya Rai, Eva Longoria, Beyonce Knowles, Jane Fonda and Patrick

Dempsey are a few amongst the many who have come to represent a cross section of age,

morphology and ethnic origin - all illustrative of the brands’ beauty philosophy.

Values:

Our values are embedded in L’Oréal’s genetic code. They continue to this day to express

themselves in the daily actions of all our teams across the globe. Here is a close-up on the Group’s

six founding values.

If for over a century L’Oréal has been devoted to just one business - beauty - it is above all because

of our Passion for it. Passion for what cosmetics can bring to women and men: well-being, self-

confidence, an openness towards others. Passion also for a business which is intrinsically linked

to humanity and culture. Because creating beauty products means seeking to understand others,

knowing how to listen to them, apprehending their traditions, anticipating their needs... Without

this passion, the L’Oréal adventure would never have been possible.

Innovation is also one of our founding values. We always have in mind the fact that our company

was founded by a scientist. Innovation is essential because beauty is an endless quest that

constantly requires a higher level of performance. At L’Oréal, it is vital. Always wanting to push

back the limits of knowledge means discovering new ways to create products that are truly

different and surprising. To always stay one step ahead.

Because there is no innovation without daring, without taking initiatives, L’Oréal has always given

priority to the individual rather than to organisations. Entrepreneurial spirit, a synonym for

autonomy, challenge, and adventure, has always been encouraged and embodied in a specific

management style. Today it is still the driving force behind a Group built above all on a belief of

the importance of each individual and their talents.

Garnier Men

7

Another value that has been guiding us since the Group’s foundation over a century ago is Open-

mindedness. Listening to consumers and understanding their culture, being open to others and

benefiting from their differences are absolute priorities in order to respond to the infinite diversity

of beauty aspirations around the world. They are inseparable from our business and our mission.

These four values are inextricably related to our fifth value, the quest for Excellence. A value that

permeates every aspect of our business, in every country and that is expressed in a state of mind

and a constant pursuit of perfection. We all share this desire to surpass ourselves to be able to

provide the best for our consumers.

Finally, whether the Group is innovating or showing its entrepreneurial spirit, it has always done

so with a sense for Responsibility. L’Oréal's first invention, the “safe hair dye” was already an

expression of this fundamental concern for effective, safe and innocuous products. But our sense

of responsibility goes far beyond that. As a world leader in beauty, we have, more than others, the

duty to preserve the beauty of the planet and to contribute to the well-being of our employees and

of the communities in which we are present.

Garnier Men

8

Mission:

Beauty for all

For more than a century, L’Oréal has devoted itself solely to one business: beauty. It is a

business rich in meaning, as it enables all individuals to express their personalities, gain self-

confidence and open up to others.

Beauty is a language.

L’Oréal has set itself the mission of offering all women and men worldwide the best of cosmetics

innovation in terms of quality, efficacy and safety. It pursues this goal by meeting the infinite

diversity of beauty needs and desires all over the world.

Beauty is universal.

Since its creation by a researcher, the Group has been pushing back the frontiers of knowledge.

Its unique Research arm enables it to continually explore new territories and invent the products

of the future, while drawing inspiration from beauty rituals the world over.

Beauty is a science.

Providing access to products that enhance well-being, mobilizing its innovative strength to

preserve the beauty of the planet and supporting local communities are exacting challenges,

which are a source of inspiration and creativity for L’Oréal.

Beauty is a commitment.

By drawing on the diversity of its teams, and the richness and the complementarily of its brand

portfolio, L’Oréal has made the universalization of beauty its project for the years to come.

Garnier Men

9

Our Ethical Values:

Our principles are Integrity, Respect, Courage and Transparency. Our Ethical Principles shape our

culture, underpin our reputation, and must be known and recognized by all L’Oréal employees.

Integrity because acting with integrity is vital to building and maintaining trust and good

relationships. Respect because what we do has an impact on many people’s lives. Courage because

ethical questions are rarely easy but must be addressed.Transparency because we must always be

truthful, sincere and be able to justify our actions and decisions.

Our Ambition:

Our ambition for the coming years is to win over another one billion consumers around the world

by creating the cosmetic products that meet the infinite diversity of their beauty needs and desires.

BEAUTY FOR ALL, BEAUTY FOR EACH INDIVIDUAL

OBSERVE LOCAL BEAUTY CUSTOMS

FACILITATING ACCESS TO COSMETICS PRODUCTS

TO ACCELERATE THE REGIONALISATION OF OUR EXPERTISE

Garnier Men

10

History:

Garnier Men

11

SWOT L’Oreal:

Strengths:

One of L’Oreal’s biggest strengths is their constant research and innovation in beauty products,

because of which they hold the crown of the leader in cosmetics industry, despite of their strong

competition. Also, they advertise and promote specific products for specific target customers.

Since they operate in more than 130 countries, they know what customers from different cultures

need, and they make sure they always deliver a quality product. Furthermore, they take great care

of their webpage, which is extremely organized, gives all the important information about the

products and the company itself, and most importantly, it links all the countries L’Oreal is present

in. In addition, L’Oreal’s strong feature is their environmental concern, since they stopped animal

Garnier Men

12

testing in 1989, and started producing natural and organic cosmetics. Above all, L’Oreal puts a

significant amount of effort into producing a strong brand image, which makes them a globally

known brand.

Weaknesses:

L’Oreal’s weakest link is their decentralized organizational structure; it is extremely difficult to

control the company because of so many subdivisions. Next, their profit margin is significantly

lower than of their competitors (such as Dior, Chanel, YSL, Lancôme Estee Lauder in quality, and

Nivea, Revlon and Vichy in general market brands). Also, they frequently have to rely on third

party retailers, which does not give them the chance to control their sales one hundred per cent.

Opportunities:

The most promising opportunity at this point is the market, which grows by the hour, and attracts

more and more customers (but also competitors) day after day. With further innovation, product

and services expansion, and a rise in demand for organic and natural cosmetics, L’Oreal could

have a very bright future.

Threats:

The biggest concern, not just for L’Oreal, but for every company, is the appearance of new global

economic crisis, and an economic downfall. Also, new markets could quite shake up L’Oreal’s

position in the industry, because with new markets come new (foreign) competitors with new

innovative products, gunning for L’Oreal’s place on the top, which L’Oreal could easily lose, if

they suffer a marketing and promotion failure. However, one of the most threatening events would

most certainly be a change in market demand and consumer preferences, because that would mean

L’Oreal had to completely change their whole offer, which would take up a lot of time and

earnings.

Garnier Men

13

What are the chances and risks the company faces?

As mentioned before, L’Oreal’s most promising opportunity is market expansion and the arrival

of new customers. Until they are completely ready to enter a new or expanded market, they have

the chance to work on current product innovation and improvement, as well as developing new

products and expanding their product/service range.

Risks, on the other hand, are always present. From new competitors, through changes in market

demand, all the way to world economic crisis, L’Oreal has to struggle in their industry if they want

to stay on top of ‘’the business food chain.’’

How could the company respond to the external forces?

The company needs to be able to keep up with technological trends, since technology changes

rapidly, and it’s the key factor of every business. Also, the company needs to always be prepared

for sudden government decisions, such as higher tax and interest rates, changing laws and

regulations, etc. This is done by constantly analysing the political, economic, social and

technological situations in the country of operation, as well as the rest of the world. This is

frequently referred to as the PEST Analysis. But most importantly, the company needs to focus on

knowing their customers’ needs, and complying to them, as well as knowing what your

competition is doing at every moment.

WHICH MARKETING STRATEGY WOULD ENSURE THAT THE COMPANY MATCHES ITS

INTERNAL CAPABILITIES WITH EXTERNAL OPPORTUNITIES?

Probably the smartest move would be to improve what the company already has. If they start from

the bottom, and with time improve and expand what is already working perfectly, and fix what is

maybe not working so great, they are making more room for growth. Even the smallest of changes

can make a difference.

Garnier Men

14

GARNIER MEN PAKISTAN:

When it comes to beauty and care of your skin L’Oreal always make products that help people live

life with beautiful and smooth skin. Garnier Men face wash comes in the category of consumer

men skin care products. Garnier Men face wash is very famous brand in many countries of the

world but unfortunately in Pakisan it does not show a good result therefore we are repositioning it

with new marketing plan.

Let´s keep things nice and clean. This oil-free foaming cleanser fights bacteria to help keep skin

clearer and more beautiful. Cleansing agents gently remove oil, dirt and makeup without over-

drying. You skin is left looking clean, noticeably clear, and at the top of its game

Garnier Men Face Wash keeps your skin beautiful, clean and smooth. This oil- free foaming

cleanser fights bacteria to keep skin clearer and more beautiful. Cleansing agents gently remove

oil and dirt without over-drying. Customer skin is left looking clean, noticeably clear, and at the

top its look beautiful.

Products available in Pakistan are;

Garnier Men Power Light:

1. Intensive Fairness face wash

2. Intensive Fairness Moisturiser with SPF15

Garnier Men Oil Clear:

3. Deep Cleansing Face wash

Garnier Men creates Power Light, the 1st moisturizer for men with a fairness performance so

intense that you can now measure it.

Garnier Men

15

Intensive visible fairness performance from the 1st application: Enriched with brightening lemon

extract that helps remove dark dead cells, it reveals visibly fairer and smoother skin

immediately.SPF15 sun protection to prevent skin from dark spots and further darkening. Now get

fairness performance you can measure.

Ingredients: Only two ingredients mentioned, Lemon Extract & Anti-pigmenting Long Dan.

Long Dan is a Chinese herbal extract known for its powerful anti-pigmenting properties. It acts to

prevent melanin production, a major cause of skin darkening.

SWOT of GARNIER MEN PAKISTAN:

POTENTIAL INTERNAL STRENGTH

Company reputation is recognized through all over the world

Customers satisfactions (toll free number, online services, and advisory services)

Customer’s retention ratio is high.

Supreme product qualities.

Stability in Pricing.

Larger Distribution network.

Aggressive sales force team

Geographical coverage

Company is financially strong

Company is internationally recognized in consumer segment

Well established products

High quality of products

POTENTIAL INTERNAL WEAKNESSES

Our Premium prices are basically set keeping in mind our target customers, but high prices

are a weakness to the sales of the product

No Product Awareness

Illegal smuggled products

Garnier Men

16

POTENTIAL EXTERNAL OPPORTUNTIES

Garnier Men has a strong market potential in the men market & can look forward to gaining

more shares in the skin care segment.

The market segment of upper-middle class and upper class are relatively less price

sensitive.

Men are becoming increasingly aware.

Can do heavily promotions to expand their market to its fullest ability.

The product is created keeping in mind its customer’s convenience, and their availability,

prices and packaging proves it.

POTENTIAL EXTERNAL THREAT

The switching potential can be high if the customers are not satisfied with our product.

If our product gets successful, there is a major threat of new entrants to follow up on our

trend.

Existing producers of face wash can decrease their prices as well as new entrants to attract

customers.

Competitors: Local and international competitors have well established businesses

Environment is constantly changing

Large proportion of men who are currently unaware and place low priority on skin care

ENVIRONMENTAL ANALYSIS

Micro Environment:

COMPETITION: The survey shows the only major competitor for Garnier men Face Wash is

Ponds Face Wash. The other competitors include Olay and Dove face wash but they have very

small market share.

CONSUMER AWARENESS: The target market for Garnier Men Face Wash are those who are

mostly already using other Garnier products so customers are already aware of Garnier and are

aware of its quality product. These customers will be made aware of Garnier men Face Wash

Garnier Men

17

through posters outside renowned superstores and super markets of Islamabad, Billboards, TV ads,

through print media and additional campaigns.

DISTIBUTERS: Garnier Company has segregated its distribution by 7:3 ratio, in which 70 % is

Garnier self – distribution which possesses 150 trucks and each truck visits approximately 20 to

25 outlets daily. And 30 % distribution is outsourced.GarnierMen Face Wash will be providing its

distributors with unique bottle shelves. And an incentive will be given to retailers that any retailer

who will generate the highest sales will get its superstore or supermarket’s name on the billboard.

Macro Environment:

DEMOGRAPHIC ENVIRONMENT: In Pakistan, large portion of population lives in rural

areas or are illiterate ad poor therefore Garnier had to target upper and upper middle class who

mostly lives in urban areas.

ECONOMIC ENVIRONMENT: Garnier men Face Wash will be initially launched in capital

city of Pakistan Islamabad. According to a survey here the average monthly income of an

individual is 15,000 and these are those people who fall is the target market.

NATURAL ENVIRONMENT: Major raw materials are lather boosters, lavender, jasmine, aloe,

plant derived ingredients, peony , hibiscus , vitamin E and orange flower. Some are locally

available and some are imported.

TECHNOLOGICAL ENVIRONMENT: Today Technological environment is changing fastly.

It includes research and development, rushing pace of technological change and unlimited

opportunities for innovation.

POLITICAL LEGAL ENVIRONMENT: At present the country seems politically stable as the

new government has taken steps to solve the security issues and is a good chance for investment

.The present condition also shows future stability of the country. During past political and

Garnier Men

18

economic instability Garnier has never faced any problems, because we are properly paying taxes

and are fulfilling all the Govt. requirements. The internal affairs of the city of Islamabad are like

always peaceful and show bright chances for good business. Establishment of a new setup for

launching shampoo will be easy as Govt. is supporting investment and banks are offering

reasonable interest rates. Govt. of Pakistan has issued a law stating against unfair practices such

as exploiting customers by over changing and false advertisement. L,Oreal abides by these

standards and laws in an ethnical and legal manner.

SOCIAL CULTURAL ENVIRONMENT: Garnieris a market leader in health care products. In

Islamabad it is doing good sales. Day by day people are moving towards modernization, acquiring

education, learning new cultures and looking forward to new trends. Now we are consuming

readymade products rather thenhome made. People of Islamabad are conscious, they care of their

personalities. Garnier Face Wash will help them to enhance their personalities

Current Marketing Mix:

Product:

Garnier men PowerLight face wash is of types Intensive Fairness Face wash , Intensive Fairness

Moisturizer with SPF15. Garnier men face wash is a skin care product that possesses special

ingredients to help eliminate acne blemishes without over drying. It leaves your skin look healthy,

clean, and radiant. This face wash is typically made for men skin. Previously the target audience

was men from 18 years age to 25 years but after conducting a survey we came to know that its

target audience is much greater than its current target so we have repositioned it from 16 to 35

years age.

Garnier Men

19

Price:

The price of the product is reasonable.

The Garnier men PowerLight Intensive Fairness Face wash is for Rs. 150

The Garnier men PowerLight Intensive Fairness Moisturizer with SPF15 is for Rs. 300

Garnier Men

20

Place:

Garnier men face wash is available at major super markets of Islamabad, Lahore, Faisalabad and

Karachi like Agha’s, Metro, D Watson etc and other retail outlets, . In addition to these well known

stores. Garnier men Power Light face wash is also available in small and medium retail stores.

Garnier Men

21

PROMOTION:

Currently promotion is only done through social media and there is no other advertisement

campaign for promotion. They are using the same Brand Ambassador that they are using in India.

Market Research:

To dig in to detail of bad performance of Garnier Men we carried out market research. Our Market

Research consisted of:

Interview from two L’Oreal Representative

Interview from 5 Managers of different Cash and Carries stories in Islamabad

Survey in the form of Questionnaire

Garnier Men

22

Methodology and Findings:

Interview from two L’Oreal Representatives:

We interviewed two representatives from L’Oreal Pakistan who helped us in providing

information about the Garnier Men. First person was Sana khan, the area manager of Islamabad

and second Hassan Umar who is currently working as brand manager in L’Oreal Pakistan. They

both have helped us a lot to understand the current Garnier Men strategy. From interviews we

concluded the following information:

Garnier Men falls under the umbrella of L’Oreal Paris and it has a global presence. The company

has divided its operations into six following main regions:

1) North America

2) Latin America

3) Africa, Middle East

4) Asia, Pacific

5) Western Europe

6) Eastern Europe

Garnier Men

23

Pakistan Region (Africa, Middle East) underperformed other regions by having following stats:

Africa, Middle East

Group Cosmetic sales 2.4%

Sales Growth 2013 14.3

Market Growth 6.5%

Surprisingly, Pakistan has been grouped under Africa, Middle East region. According to the

company consolidated financial statement that region has the lowest market share. Also Africa,

Middle East region only contributes approximately 25% revenues to the total revenues.

Garnier men brand is consolidated under the parent brand and does not have separate financials.

However, we were able to get some estimated budget figures from our source within the company.

Garnier men is considered to be one of the brands that have a lot a market in Pakistan, but the

market is not aware of the product. Almost 60% of the total marketing budget is allocated to create

the awareness in the market. Awareness is created by using mediums like Facebook and internet.

No traditional medium of advertising is utilized by the brand for this purpose. Rest is being

allocated to carry out limited branding activities. By saying limited marketing activities we mean

those activities are only limited to few areas of Karachi. The company has almost ignored the

proper branding of the brand. Even the brand managers of Garnier highlighted the fact that they

have spent very little amount of resources in making a known personality the brand ambassador

of Garnier.

Our contact mentioned that the growth rate calculated by the company in last five years for this

region was 14.23% which is higher than the growth rate of Asia Pacific region but still the resource

allocation is not done accordingly. Mostly ads that are run on the media are of Indian market and

strategies adapted by the company to launch a product are of Middle east.

Garnier Men

24

We believe that company’s competitor like Fair and lovely have played a major role in decreasing

their cost when it comes to market creation. Fair and handsome was the product on which the

Garnier Men

25

company spent a lot and captured the market. Now the company should focus on benefiting from

that, rather than creating more awareness.

The company has seen growth over the years, but the regional analysis shows that the rapid growth

was seen in this region and still the market is untapped. Many products are imported from Asia

Pacific region to this region which increases their growth. Despite of that this region is more

promising than that region.

Summary of Findings:

Basically according to them, currently Garnier Men is facing two issues: firstly, there is not much

emphasis on promotions to create brand awareness although they have an enough budget for

marketing and secondly their distributions channels for Garnier Men are not as much as strong as

compared to their competitors like Fair and Lovely. Moreover illegal smuggled product of their

company is also a big reason for bad financial performance in the last year.

Interview from five Managers and observations in different Cash and Carries in

Islamabad:

After taking interviews from L’Oreal representatives we went to supers stores of Islamabad and

took interview from five managers of different shopping stores of Islamabad who have Garnier

Men available at their store. We asked them about the consumer behavior when it comes to buying

of face wash. According to them most of the people are not that much brand loyal and they just

buy face wash on the bases of price. Whereas some people do not even both to buy on the basis of

price because most of the face wash falls under the price range of Rs 150 to Rs 300. Hence it’s

also not the deciding factor. But most people prefer to buy Fair & Lovely face wash not because

they are loyal to this brand but actually they one know about this brand. Garnier Men is very new

in this market and very few people know about it. People are not even aware of the fact that it is

the brand of L’Oreal because L’Oreal has good name in the market. Moreover another threat to

Garnier Men

26

Garnier Men is their own smuggled product. It’s very difficult for people to differentiate between

the smuggled product and company launched product. They have to look carefully and it consumes

time and customers do not want to spend this time on differentiating. So L’Oreal need to make

proper distribution channels where only their launched product are available not the smuggled one

and they should make their customers aware of this through promotions.

In our observations, we have found that there are several Men products available in the store shelf,

although Garnier has launched only three products in Pakistan. Moreover many recognized stores

are hiding the price tags and manufacturing place of the products so that they give impressions to

the customers that they are buying Pakistani products. In many cash and carries, they are selling

the products of competitors while using the shelf space of Garniers. On inquiry that mentioned that

they are lacking the supply of Garniers products.

1COMPETITORS PRODUCTS AT GARNIER SHELF 2: COMPETITORS PRODUCTS AT GARNIER SHELF

Garnier Men

27

3 SERVERAL BRANDS AVAILABLE THAT ARE NOT EVEN 4 SELLING FAKE PRODUCTS OF GARNIER

LAUNCHED IN PAKISTAN

PRODUCT THAT IS NOT LAUNCHED IN PAKISTAN

Garnier Men

28

5 HIDING THE LABLE OF IMPORTED PRODUCTS 6 DIRECT COMPETITORS PRODUCTS

Garnier Men

29

Survey in the form of Questionnaire:

We also performed survey of 165 people in Islamabad to know the market trend and behavior of

customer about face wash. We also wanted to know the position of Garnier Men face wash in the

market. We went to different school, colleges, universities and shopping malls to get these survey

filled. Sample was randomly selected and our sample size was 165 people. These people belonged

from different locality and had different purchasing power to get the overall market thinking about

the product, out of which 76.36% were between the age 18 to 24, 21.82 % were among 25 to 34

years and 1.82 % were more than 75 which was outlier.

Talking about the marital status 83.64 % was single and 16.36% were married.

If we look at their occupation then 10.91% were High school/College students, 60% were

University students, 16.36% were employed and 12.73% were others.

35.85% had income less than 5000, 47.17% had income between 5000 and 25000, 9.43% had

between 25000 to 50000, and 7.55% had more than 50000 monthly income.

When we asked them about how important is a beautiful youthful skin to you than 27.78% valued

it to be extremely important, 38.89% said it’s very important, 24.07% said it’s just moderately

important, and only 9.26% said that its slightly important.

When we asked them about their monthly spending on skin care than results revealed that 18.18%

spent only 200 or less than 200 per month on skin care, 40% spent between 200 to 500 and 41.82%

spent more than 500.

When we asked them about different products like face wash, fairness cream moisturizer than

70.91% said they use face wash/cleanser, 23.64% said that they use fairness cream, 18.18% said

that they use fairness moisturizer and surprisingly 20% said that they do not use any thing.

When people were asked about their buying behavior regarding cosmetics than almost half of the

people (49.09%) said that they buy cosmetics once in a month, 7.27% said they go and buy

Garnier Men

30

cosmetics more than once in a month, 29.09% said that they by cosmetics once in 2 months and

14.55% opted for others.

After asking them their buying trends we then asked them about cosmetic brand they use/prefer

and gave them a choice that they can chose more than one brand soresults reviled that ponds had

the largest market share of 40.74% with L,Oreal on the second position having 37.04%, Vaseliine

had 33.33% market share, Dove having 29.63% market share with Nivea following it with 27.78%,

Clean n Clear had 27.78% liking by the users , then having equal share to Nivea was Clean Clear

and had the same % of liking means 27.27%, Garnier following them with 25.45% demand, then

comes Fair & Lovely in that list with 23.64% of people liking and this % of people wanted to use

it, Neutrogena Oil Free had not very strong market penetration in the market and had 12.73% of

votes in its favor, Olay got 7.27% of people demand and the main reason behind this was its high

price as compared to other products in the market, Clarins got 3.64% people support, then came

Oriflamme and Every Man Jack sharing the last position and having the least number of support

they got only 1.82% support, there were other creams as well in the market and collectively they

got 16.36% market demand.

After this product selection we asked them about the factors on which they decide or purchase a

product means while shopping for a product which factor helps them to make a decision and again

we gave them more than one option to select , so the answers given by them were very diversified

80.36% said one point that make their decision was Brand means most of the people used to see

the brand name while buying a product then 35.71% said they look for the price of the product

means they are price conscious while buying a product, 10.72% people said they get a advice from

in store consultant and if a sales man advices them about a product then they try it on his/her

advice, 8.93% said if there is a special offer on a product then they go for it and try it to avail that

offer, 21.43% said if their friend uses a product and then advices them about that product or we

can say word of mouth then they go and try that product means it’s also a factor that helps them in

making decisions, 66.07% people said they prefer quality and go for a better quality product and

the product with good quality attracts them and they go for it, 7.14% people said that they go for

Garnier Men

31

those products having attractive and good packing means they go for the upper looks of the product

and it attracts them .

When we asked them about the shop or medium of their purchase means form where they like to

purchase these products then 12.50% said they like to purchase it from specialist stores that are

specially for these type of cosmetics, 17.86% said that they just go into supermarkets and get them

from there its easy and convent for them, 8.83% said they by these products from

drugstores/chemists, only 1.79% people said that they purchase it from internet as they don’t like

to go out and shop for these product or don’t have time for it so they use internet and buy them

from there, 26.79% said they buy these products from department stores as when they go for

grocery they also buy these product at that time and 10.71% said they buy it from beauty salons

and take them from there as if they are recommended by them or see that product being used their

and then use it by them selves

Graphical representation of the results:

Garnier Men

32

Garnier Men

33

Garnier Men

34

Garnier Men

35

Garnier Men

36

Garnier Men

37

Garnier Men

38

Competitors Analysis:

There are 3 main competitors to Garnier Men in Pakistan i.e. Pond, Nivea and Dove. There detailed

analysis is given below.

Our main competitor having the highest market share is Ponds. Pond’s was first introduced to

the world in 1846, when pharmacist Theron T. Pond developed ‘Pond’s Extracts’, a witch hazel-

based beauty product. It was the first step towards a true revolution in women’s beauty. The

brand’s role as a beauty innovator was further established in 1914 with the advent of Pond’s Cold

Cream, a product which became the staple of

women everywhere. With... its deep-cleansing

benefits and the promise that “Pond’s would change

your life”, Pond’s Cold Cream Cold Cream was the

one beauty secret that women kept close to their

hearts. In the 1950s, Pond’s introduced the ‘7 Day

Beauty Plan’, the first beauty regime of its kind and

a promise that still holds true today. In 2008, Pond’s

took a new lease on life. Both inside and out, the

Pond’s Institute reinvented the Pond’s range of

products to further meet the needs of women. The

beauty icon’s global rebirth translates to a

completely fresh, revolutionary range of face care

products. It featured solutions for all skin types,

breakthrough formulations, delicate perfumes, and

attractive packaging. From the classic cold cream,

which was considered a cure-all way back in the

day, Pond’s now offers various platforms such as

oil control and acne solution for young women on

the cusp of romantic discovery; skin lightening for

those in search of true love; as well as products that

Garnier Men

39

provide the best-proven anti-aging technology for those who wish to renew sparks and rekindle

passio. It has few strengths like Pond’s has many good quality products which care for and restore

the skin’s natural balance, Pond’s range includes Pond’s Age Miracle, Flawless White, Perfect

Results and White Beauty, Products are free from any toxic or mercury content, excellent

advertising and branding as Pond’s is one of the most recognized brands, the packaging of Pond’s

products are eye-catching, suitable for its target market

The Dove personal care brand is owned by Unilever and was first launched in 1955. Their creative

strategy and sales have been consistent since the original launch. Dove is considered the world’s

top cleansing brand (Dove Social Mission). Dove offers a product line that ranges from skin care,

hair care, body lotions, hand creams, body wash, face wash, bar soap and deodorants for both men

and women. In 2010, Dove expanded their product line to include Dove Men + Care. This new

product line reaches out to the male demographic.

Garnier Men

40

The NIVEA brand is one of the most recognised skin and beauty care brands in the world. NIVEA

creme was first introduced in 1911 and the NIVEA brand now extends to 14 product ranges

worldwide from suncare to facial moisturisers, deodorant and shower products.

Strengths: 1. Nivea globally is the brand that has its presence in around 20 product categories in

more than 50 countries. 2. Nivea has huge brand recall and equity. 3. Very strong distribution

network 4. The packs ‘Blue and White’ color as its brand element. 5.Excellent advertising and

brand visibility makes it a top-of-the-mind brand

Garnier Men

41

Future Strategies to Solve These Problems (Recommendations):

Future Strategies:

The data we gathered through our primary and secondary research highlighted some flaws in the

current strategies of the company. The flaws in the company strategies are making the company

not only lose in the profits, but also it is damaging the image of the company. Despite of having

global presence, strong team Garnier men has failed to become an eye candy in the market.

Following are the new strategies that we believe will be able to correct the flaws in the marketing

strategies.

Target Market:

The company identified working class as the main segment they were targeting. According to our

research the target market of these kind of products are basically people of age group 15-30. These

people are more conscious about their looks. People after this age mostly become more focused

towards other things and also become brand conscious. We believe that if the company revises

their strategies according to the new target market they will be in a position to spend less and create

more awareness. Detail of target market is as follow:

Target markets consist of a set of buyers who share common needs or characteristics that the

company decides to serve. These include people from all age groups especially ranging from 15-

30 where the attitudes of individuals are to be professional and successful in their social strata. It

also includes student of school, university and colleges. If we attract and keep these potential

customers then Garnier Men would be huge success in Pakistan. And off course Garnier Men Face

Wash would be targeting the market according to the classes of each area existing in Karachi,

Lahore and Islamabad. The upper class men spend a lot of money to choose the best face wash for

their face, which will give them maximum satisfaction and make their skin healthy glow. So they

usually opt for branded face wash.

Garnier Men

42

Our marketing strategies, which will follow differentiated marketing, will focus only on men from

the age of 15-30. In order to attract all these groups Garnier Men wash will now be re-promoted

SEGMENTATION:

The segmentation which we will use for Garnier Men Face Wash will be:

SOCIAL CLASS

Social class Upper-upper, upper-middle & middle class

Lifestyle Highly/mildly Modern

Personality Modern and educated

DEMOGRAPHIC SEGMENTATION

Age 15-30

Gender Male,

Family size 1 to 4 or above

Lifecycle Young, single, married, married with children, older

Income Average monthly income Rs. 30,000 and above

Occupation Student, Working and Business class

Education Literate

Religion Belong to any religion

Race Belong to any race

Nationality Pakistani

GEOGRAPHIC SEGMENTATION

World region Asia

Country Pakistan

Target market Islamabad, Karachi, Lahore

Garnier Men

43

BEHAVIOURAIL SEGMENTATION

Benefits Fair and Smooth

Usage rate Daily

Loyalty status Medium

Readiness stage Aware, Informed, Desirous

Attitude Enthusiastic, Positive

Re-Branding:

Rebranding in this report does not mean changing the logo of the product, but it means that

changing the outlook of the product. Currently, the products that are sold under the brand name of

garnier carry image of John Abraham, an Indian actor. The company should use the image of a

Pakistani celebrity to make people asscciate them with the Pakistani celebrity. This strategy has

been utilized by Faire and Lovely Pakistan lately. Fair and lovely Pakistan launched Fawad Afzal

Khan as their brand ambassador last week. Moreover it will also include to focus on create value

proposition as follow:

VALUE PROPOSITION: Customer value proposition consists of the sum total of benefits which a

vendor promises that a customer will receive in return for the customer's associated payment .It is

divided into three parts:

FUNCTIONAL BENFIT: Tthe functional benefit of face wash is that it would cleans deep down

the skin to the pores and removes oil, dirt and make-up to give clean, healthy looking skin.

EMOTIONAL BENEFIT: Emotional benefit will be the confidence which one gets after using

Garnier men face wash.

SELF-EXPRESSIVE BENEFIT: The consumers who are very defensive and careful for their

health and family would feel comfortable using this product it would gave them a sense of caring

and safety.

Garnier Men

44

Promotion:

Aggressive marketing should be the strategy that should be used by the company to launch and

create the awareness of the product. Currently, the company is only using social media to reach to

the target market and not exploring other mediums. The company should use television, radio,

billboards ad to create awareness of the product. University drives should be carried out to create

awareness in the student to use the men product. As revealed by the research and also the

interviewer that people currently use female products for skin whitening. That trend can only be

changed if proper marketing is done and message if conveyed to the target market.

PROMOTION PLAN:

I. Advertising Strategy:

The advertising strategy is determined by the advertiser’s use of the creative mix. The creative mix

is composed of four main elements:

The Product Concept: This refers to the bundle of values the product is intended to

represent to the customer. Garnier men concept is that of a face wash that provides

freshness, fairness and complete skin care.

Communications Media: These are the vehicles used to transmit the advertiser’s message.

Garnier men Power light face wash communication media will include Broadcast, Print,

Point- of-Purchase and Outdoor media.

Advertising Message: This is what the company plans to say in its advertisements and how

it plans to say it. Garnier men face wash advertising message will focus on the confidence

provided by fresh and blemish-free skin for men.

Language & Punch line: The ads in the broadcast media will be in English to get maximum

reach amongst the audiences especially of today’s generation. The tag line is:

“Take Care-GARNIER”

Garnier Men

45

ADVERTISING PLAN:

In order to deliver effectively its message to the consumers advertising is also an important element

in the Marketing Mix for Garnier.

The respective Brand Manager at Garnierwill be responsible for developing the advertising

strategy for their respective brands. In consultation with the Advertising Agency that will be on

retainer on each Brand, the Brand Manager develops the Advertising Strategy right from idea

conception to the delivery of the message to the audience.

The following are the elements on which the Advertising Program for Garnier is developed:

Garnier Advertising Objectives

Garnier Advertising Budgets

Garnier Advertising Strategy

Garnier Campaign Evaluation Strategy

The underlying principle for Garnier Advertising program is to develop importance, by building

strong brands, which supports our (Garnier) benefits claim and underpin our relationship with the

loyal consumers who have been using different products of our company and most importantly,

enable us to make a real contribution to the improvement and growth of strong shiny hairs.

Garnier Men

46

GARNIER ADVERTISING OBJECTIVES:

Based on the Brand Plan and activity plans for the year the Advertising objectives of each Brand

shall be set. Also as the first of launch there are different objectives for each Advertising program

in each Quarter. The general objectives that Garnier sets for all of its Brands are as follows:

Information Advertising

Persuasive Advertising

Reminder Advertising

Garnier heavily relies on Informative Advertising. The objective is to build primary demand for

the product.Specifically for Garnier men Face Wash an informative/persuasive advertising

campaign will be introduced.

The objectives of this campaign will be:

Explaining how the product works: Double deep action that penetrates to roots of the skin

where ordinary face wash do not normally reach making skin smother and cleaner making

it healthy since the environment is full of pollution.

Changing Customer perceptions of product attributes: Customers believe that until now

there are no face wash that have offered this feature and the ingredients, real herbs will

provide solution for their face. The double deep action campaign aimed at changing this

perception.

Garnier Men

47

GARNIER ADVERTISING BUDGET:

L,Oriel will set the Advertising Budget for each of its brands based on the Brands Marketing Plans.

This in turn is set on the basis of the following:

The Brand’s Stage in its Life Cycle

Market Share

Level of Competition

Level of Differentiation

The company plans to spend some good amount on the repositioning of the product, which will

help in establishing a name in the market. Garnier invasions to capture 25% of the market share

by next 10 years

Garnier men Face Wash is in the introduction stage of the lifecycle. As such the advertising budget

for the brand is an extremely high percentage of sales. (Around 15% of sales)

In addition other factors that contribute to a large advertising budget of Garnier are the following

facts:

The overall strategy for Garnier men Face Wash is to establish a greater market share over

its competitors.

The product class for face wash is largely undifferentiated, as most of the face wash are

perceived to essentially resemble each other in terms of use and attributes. Garnier men

Face Wash advertising campaign for Double Deep action will try to point out the

differences to consumers between double deep action face wash and other face washes.

Garnier Men

48

GARNIER ADVERTISING STRATEGY:

Garnier men recognizes that there are benefits to be gained from planning the creation of

advertising messages and selecting the advertising media jointly.

The Brand Manager for Garnier will have to work closely with the advertising agency and the

Company’s Media Planners as well as the Creative Directors for the Advertising Strategy.

Garnier will employ various communication channels to make people aware of its product and its

features.

I. TELEVISION

Our company will use television advertising, on top domestic channels: HUM TV, Geo TV and

TV ONE. It will advertise Garnier men Face wash aggressively on television because we feel that

channel wise these three can provide us the most apt and regular coverage for our product. We

feel that TV is a powerful medium and can offer us the following advantages:

The advertisements will show in moderate details of the product, along with useful information

about the product use. Even the benefits of the product can be discussed in the sense that it can be

compared with other competitor’s brands.

Garnier men Face Wash aims to air its advertisements during Prime Time on Television when 90%

of the television viewers are watching TV. This time is between 7-11 p.m daily. However, the cost

per spot during this time is also very high at an estimated Rs.25, 000-40,000 per spot.

After two months Garnier men Face Wash will successfully create awareness for the product.

II. BILLBOARDS AND POSTERS

The advertisements will be used to make people aware that some new brand is about to arrive.

Catchy captions will be placed on billboards to get people to notice it. This will build anticipation

Garnier Men

49

in the potential customers. We plan to keep these teasers running on display for an estimated 2

weeks. After this time duration we will place more descriptive and informative advertisements on

the billboards that talk about the actual product. These billboards will be located in metropolitan

areas of all cities of Pakistan.

III. MAGZINES

In order to attract our target market we intend to use appropriate magazines that are read by our

potential customers like SHE, Women Own, Akhbare-jehan, Mag, Aurora, Herald and many other

magazines. The magazines will feature full-page length color advertisements with greater detail

about the range of the companies’ offerings. Only four magazines have been selected in order to

ensure maximum coverage in this expensive medium with its limited geographic availability

IV. NEWSPAPER

The newspaper advertisements will feature appropriate sized advertisements like quarter page and

they will appear with an interval of a week. The timing of the add will be carefully monitored, they

will clearly state the message to be conveyed to the potential customers. The newspapers will be

THE DAWN, THE NEWS AND JANG etc.

V. ADVERTISING BUDGET FOR FIRST YEAR

Media channel Per Unit Cost in Rs. No. Of units Total Budgeted

Cost in Rs.

Television 150,000/week 8 12,00,000

Billboards 80000 5 400,000

Magazines 12000 30 360,000

Newspaper 15000 55 825,000

Sales Promotion ******* ******* 500,000

TOTAL 32,85,000

Garnier Men

50

Other promotion Strategies:

In order to compliment the advertising strategy, L,Orieal also plans to use the tools of sales

promotion to give short-term incentives in order to encourage the purchase of its products.

The main sales promotion tools used for Garnier men Face Wash offerings are:

Consumer promotions

Trade promotions

Sales force promotions

37%

12%11%

25%

15%

Promotion Budget

Television Bill Boards Magazines Newspaper Sales Promotion

Garnier Men

51

CONSUMER PROMOTION TOOLS:

During the advertising campaign of face wash, the company will also offer a very lucrative

consumer promotion. The mechanics of their consumer promotion will be (this will be offered at

the end of the first year of launch):

In order to win fabulous prizes, all consumers will have to do is to write their address with

an empty bottle of the Garnier men Face Wash that they purchase and send it to offices of

Garnier Karachi. These will be entered in lucky draw and the winner will receive a Suzuki

car or a trip to Dubai.

TRADE PROMOTION:

In order to increase our stocking of Garnier men Face Wash at retailer outlets, Garnier will offer a

3% retailer margin on the consumer price of each stocking. Other than this the company will

provide the retailer with gifts such as key chains, wall clocks, diaries and calendars.

The objective behind this is to increase the availability and stock levels at each retailer outlet.

SALES PROMOTION:

Recognizing that the above two promotions would actually work, Garnier realizes that the most

important agent in the whole process is the sales force that delivers the product to the retail shelves

from where the consumers make their purchase.

In order to make the promotion successful, the sales force of the distributor is being given

incentives on the achievement of volume and availability targets.

During the launch and advertising program of Garnier men Face Wash, the sales force will be

given incentives through the offer of higher sales commission per stock sold of Garnier men Face

Wash and a bonus will also be given for the achievement of the availability targets.

Garnier Men

52

Purpose of Promotion strategies:

Purpose of these promotion strategies would be to emphasize differential advantages for Garnier

Men face wash which includes

Garnier men Face Wash is the only face wash that has high quality with low price as

compared to the other competitive brands.

Garnier men Face Wash has fragrance add in it.

It prevents from skin from germs and bacteria which are the main cause of pimples.

It cleans deep down to the pores and removes oil, dirt and make-up to give you clean,

healthy looking skin.

Garnier men Face Wash is cost effective.

Garnier men Face Wash is only for men.

Promotions to create VALUE PROPOSITION

Customer value proposition consists of the sum total of benefits which a vendor promises that a

customer will receive in return for the customer's associated payment .It is divided into three parts:

1. FUNCTIONAL BENFIT: The functional benefit of face wash is that it would cleans

deep down the skin to the pores and removes oil, dirt and make-up to give clean, healthy

looking skin.

2. EMOTIONAL BENEFIT: Emotional benefit will be the confidence which one gets after

using Garnier men face wash.

3. SELF-EXPRESSIVE BENEFIT: The consumers who are very defensive and careful for

their health and family would feel comfortable using this product it would gave them a

sense of caring and safety.

Garnier Men

53

EVALUATING ADVERTISING:

At the end of each Advertising program the Brand Manager at Garnier men Face Wash will

evaluate the effectiveness of the program.

The Brand Manager for Garnier men Face Wash will conduct an analysis of pre-campaign and

post-campaign secondary sales (distributor sales) comparison to gauge the effectiveness of the

program. An increase in secondary sales is usually indicative of the success of the program.

CHANNEL STRUCTURE:

The consumer defines a distribution channel as a set of interdependent organizations involved in

the process of making a product or service available for use or consumption.

When L,Orieal imports products, they are actually stored in warehouses. Those products, which

are locally produced, go from the factory to the warehouses. Garnier menFaceWash will have to

rent three warehouses, one each in Karachi, Lahore and Islamabad.

The face wash will be sold to distributors: both on contract and otherwise. They are moved from

the factories to the warehouses, and then the distributors can take delivery from the warehouses.

The distributor in turn sells them either to wholesalers who later sell them to distributors or directly

to retailers themselves.

SHELF SPACE:

Garnier men Face Wash will strive to get maximum and more visible shelf space in comparison to

the competition by pushing the product through distributors and in turn offering higher rate of

retailer margin. The company will follow a push strategy and will be offering margins to the

retailer.

TARGETED OUTLETS:

Garnier Men

54

According to a survey conducted by M&A (marketing and advertising) the No. of outlets that are

targeted for the selling of face wash are 50000/-. As the distributor is not able to cater all he outlets

throughout Pakistan so the Company will be outsourcing the distribution network and will be

paying a higher rate of margin so that the maximum number of outlets are supplied with Garnier

men Face Wash Brand.

CITIES TARGETED:

L,Orieal will also be targeting in future the main cities of Sindh and Punjab. The demand for the

products Garnier offers is mainly vested in these two provinces. The major cities shall be Karachi,

Hyderabad, Sukkur, Faislabad, Sialkot, Rawalpindi, Islamabad, Lahore, Gujranwala and

Multan.The product will also be available in cities of Balouchistan and N.W.F.P.

Garnier Men

55

Life Style:

The company should focus on making the product just more than a skin care item. Currently the

tag line of the products are “Dare to care” whereas we believe that the products as have a strong

brand image which can be cashed by using a tag line such as “ You have earned a life style”. People

in Pakistan want to use a product to just get the basic benefits, but also they want to associate

themselves with the projects. Especially, the new target market consist of the people who want to

think big and also associate themselves with the product.

Owning distributor:

One of the main problems with the company sales is the problem in the distribution channel of the

company. The company when entered in Pakistan market they did not make any major moves to

make healthy relationship with the current distributors of the products. The distributors before the

launch of Garnier Pakistan were selling imported goods with no marketing. Only word of mouth

was the only source of the sales. The company should now focus at least on making strong

relationship with the distributor and give them higher margins to help them earn more from the

sales of Garnier products As, also highlighted by Hassan in the interview that the main reason of

selling the imported products by the distributors. If the distributors are provided with the incentives

to sale their products they will sale Garnier Pakistan’s product rather then imported products

brought through different sources.

Presence:

Large brands when launch themselves in a big market they try to launch themselves at once across

the country. The company should target the distributors of all big cities and sale the product with

an aggressive marketing campaign. Currently, the company is only focusing on the market in

Karachi. They have almost ignored Lahore and Islamabad market.

Garnier Men

56

Placement:

Garnier men products are currently available only in limited stores. Other stores carry usually the

competitor’s product or in most of the cases if Garnier products are available they will be imported.

These imported products does not only decrease the company’s profit, but also it can cause damage

to the image of the brand if the product is fake and harmful. The placement strategy should focus

on providing the big stores extra margins on placing the products in easily accessible shelves. This

strategy will make people not only know about the availability of the product, but also people will

prefer the products over other locally manufactured products.

Local involvement:

The main head office is based in Karachi and also decision making is done over there. The sales

head in Lahore and Islamabad does not have the liberty to make decisions on there on. The

company should either involve them in decision making or should give them the liberty to take

decisions when necessary.

GROWTH BARRIERS Garnier is a big company which has a strong backbone in the cosmetics and skin care industry and is

growing day by day with flying colors. It also faces certain growth barriers out of which the major are:

Political policies: Due to the new government in Pakistan, Garnier was inquired for last 5 years

data indeed it submitted the data each year regularly. Now providing the data requires

commitment of time and staff which in fact might have been utilized for some promotional

activities of the brand.

Rumors: Rumors also plays a growth barrier to any firm like a medical concept was at large that

Garnier men is not suitable for the person’s skin due to some heavy chemical in it. The rumor is

baseless however extra everything of everything can cause some trouble

Garnier Men

57

Action Plan

After devising the new strategies, it is very important to devise an action plan. An action plan must

be workable and also reflection of the strategies made. We have divided our action plan into certain

steps. Following are the steps of action plan given:

Resource Allocation

Distribution Improvement

Aggresive Marketing

Availabilty

Feedback

Garnier Men

58

1) Resource allocation:

According to our conclusion the company is more inclined towards the promotion of L’Oreal

rather than Garnier men. The company is arranging huge and expensive events to create awareness

of that product and also increase sales. However, the company has hardly done any promotion

drives for Garnier Men. Even the company has not even focused on low cost drives like

universities and Colleges. The main problem of this is the unjust allocation of resources. The

company should also give importance to this project and provide them efficient resources to

expand in the market. Less than 15% of the Pakistan’s office resources have been allocated to

Garnier men product promotion. At least, 35% resources should be given to the brand to initially

run the course.

2) Distribution Improvement:

The company should focus on the distribution in the second place. The company currently faces

the problem of competition with the local products and also fakes and imported products because

the company does not provide opportunity to the distributors to earn higher profits. The company

should keep this factor in mind that the distributors are loyal to the profits, they won’t sell their

products unless they earn higher profits from that sale. The best way to do that is not the decrease

in price but sale of products at a lesser rate to the distributor. This would make distributor increase

the sales of the Garnier men product.

3) Aggressive Marketing:

The company should focus on marketing the product by initially choosing the right person as the

brand Ambassador. The right person choice will enable the company to make people associate

themselves with the product. Like we have shown in one of our poster that Fawad Afzal Khan can

be selected as the brand ambassador or Asam Ul Haq. People want to associate themselves with

this kind of product and want to become like the person telling them that. Also, Facebook

marketing is not enough to create awareness. Traditional medium like newspaper, TV should be

used to give ads to reach to the population, This will serve as both creation of the awareness and

making a new market.

Garnier Men

59

4) Availability:

Despite of having a global brand and presence the company failed to launch itself at once in all

over Pakistan. The company should try to make the product available all across Pakistan. Smaller

town also have the population that affords and purchases this kind of product. The company is

currently focusing mainly on Karachi then Lahore and Islamabad. They have to make sure that

they have good relationships with the distributors of all major cities. If the company cannot make

the product available in all cities they should at least divide the country into regions and provide

the products in major regions and divisions. They should at least show their presence in the market

to create their image.

5) Feedback

The main focus of the company should be not only keep on doing the things as they are doing

right now. They should also see at some simple ratios like ROI and ROE. This will let them know

of the returns on Investments they have made in certain activity. This will help them in making

the decisions of carrying out certain practice in future or not. The consumer goods sector should

always keep in mind the ever changing needs of the market and those needs can be best described

by non-other than the customers themselves. The company should make contract with some

research house in Pakistan to carry out the research and help them improve from their mistakes.

We believe that if the company follows this action plan the company will be in a better position

to assess the market explore more opportunities and also gain market share as well. The company’s

main focus is profit maximization and this action plan will enable them to generate higher profits.

Garnier Men

60

Conclusion

After carrying out primary and secondary research and also working with the company officials

we were not only able to identify the problems, but we were also able to analyze the root cause.

The data interpretation and results show that the company has a lot of potential and the main reason

can be specified as the strong brand image, global presence and product mix. The company when

entered in the company the initial focus that they had was to develop it main brand which was

L’Oreal. They utilized their major resources to launch L’Oreal’s products rather than focusing on

Garnier Men products. Garnier already had a presence in the market due to the shampoos and

imported products, but the firm failed to get benefit from this. Garnier Men is considered as a mass

utilization product, but the initial research carried out by the company was flawed. The company

failed to highlight the main target market and also give the real results. So in order to make Garnier

Men a success story, company needs to follow our recommendations especially related to

promotion strategies. It will not only help it to create strong brand image among consumers but it

will also increase its sales and market share to increase its financial performance.

Garnier Men

61

References:

http://www.forbes.com/sites/gaurisharma/2013/02/12/4-key-marketing-strategies-from-the-startup-

world/

http://smallbusiness.chron.com/external-changes-can-affect-company-38646.html

http://www.lorealparis.hr/cesto-postavljana-pitanja.aspx

http://beautyfulbrands.wordpress.com/2011/11/09/key-competitors-of-loreal-paris-and-nivea/

http://www.studymode.com/essays/l'Oreal-Swot-Analysis-818863.html

http://www.mbaskool.com/brandguide/fmcg/1122-loreal-paris.html

http://www.studymode.com/essays/Loreal-Swot-Analysis-992102.html

http://www.wikiswot.com/SWOT/4_/L_Or__al_SA.html

http://www.loreal-paris.com/

Nair, D. V. K. & D. P. P. R. (2007). A Study on Purchase Pattern of Cosmetic amongConsumers in Kerala.

International Mar Deep Cleansing Face washketing Conferonence on Marketing & Society. Singapore:

M.A.K.

Souiden, N. & Diagne, M. (2009). “Canadian and French men’s consumption of cosmetics: acomparison

of their attitudes and motivations’, Journal of Consumer Marketing”, Vol.26, No. 2, pp. 97-109

Garnier Men

62

QUESTIONNAIRE:

What is your age?

o 18 to 24

o 25 to 34

o 35 to 44

o 45 to 54

What is your marital status?

o Single

o Married

What is your occupation?

o High school/College

o University students

o Employed/Self employed

o Others

How much is your monthly income/ pocket money?

o Less than 5,000

o 5,000 to 25,000

o 25,000 to 50,000

o More than 50,000

How important is beautiful skin for you?

o Extremely important

o Very important

o Moderately important

o Slightly important

Garnier Men

63

o Not at all

How much do you spend on skin care products in a month?

o Less than Rs.200

o 200 to 500

o More than 500

Do you use the following?

o Face wash/cleanser

o Fairness cream

o Fairness moisturizer

o None of the above

How often you buy these cosmetic products

o Once in a month

o More than once in a month

o Once in two months

o Others

Which cosmetic brand/brands do you prefer to buy/use? (Select more than one

option)

o Ponds

o L,Oreal

o Vaseline

o Dove

o Nivea

o Clean & Clear

o Garnier

o Fair and lovely

o Olay

Garnier Men

64

o Clarins

o Every man jack

o Oriflamme

What are the deciding factors when you purchase cosmetic product

o Brand

o Price

o Advice from in store

o Special offer or promotion

o Recommendation from a friend

o Quality

o Packaging

Where do you tend to buy your cosmetic products?

o Specialist store

o Super markets

o Drugstore/chemist

o Internet

o Department stores

o Beauty stores

Garnier Men

65

Balance Sheet for

Garnier

Millions of Rupee

Annual Annual Annual Annual Annual

Period Period Period Period Period

Description(000) 2012 2013 2014 2015 2016

Curr

ent

Assets

Cash and Cash Equivalents 1,339 1,012 1,102 1,150 1,100

Accounts Receivable 360 298 312 314 326

Inventory 240 280 321 334 356

Other Current Assets 870 1,150 1,370 1,650 1,530

Total Current Assets 2,809 2,740 3,105 3,448 3,312

NonC

urr

ent

Assets

Fixed Assets 7,740 11,454 9,826 10,233 12,724

Accumulated Depreciation (720) (1,440) (2,200) (2,550) (3,010)

Net Fixed Assets 7,020 10,014 7,626 7,683 9,714

Total Non Current Assets 7,020 10,014 7,626 7,683 9,714

Total Assets 9,829 12,754 10,731 11,131 13,026

Curr

rent L

iab

Accounts Payable 616 670 728 715 812

Short Term Borrowings 1,200 1,830 2,580 3,100 3,550

Other Current Liabilities 1,050 1,250 1,480 1,590 1,301

Total Current Liabilities 2,866 3,750 4,788 5,405 5,663

Longterm Debt / Borrowings 1,160 1,750 800 700 1,250

Total Non Current Liabilities 1,160 1,750 800 700 1,250

Total Liabilities 4,026 4,616 3,666 3,566 4,116

Owners Equity 2,768 1,601 900 400 875

Retained Earnings 3,036 6,537 6,165 7,165 8,035

Total Shareholder Equity 5,804 8,138 7,065 7,565 8,910

Total Liabilities & Equity 9,830 12,754 10,731 11,131 13,026

Garnier Men

66

Income Statement for

Garnier

Millions of Rupee

Annual Annual Annual Annual Annual

Period Period Period Period Period

Description(000) 2012 2013 2014 2015 2016

Op

era

tin

g

Net Sales 6,000 6,720 7,526 8,430 9,441

Total Revenues 6,000 6,720 7,526 8,430 9,441

Cost of Goods Sold (3,000) (3,360) (3,763) (4,215) (4,721)

Gross Profit 3,000 3,360 3,763 4,215 4,721

Operating Expenses (712) (762) (815) (872) (933)

Total Direct Expenses (3,712) (4,122) (4,578) (5,087) (5,654) Earning Before Interest and taxes 2,288 2,599 2,948 3,343 3,788

No

nO

pera

ti

ng

Interest Expenses (396) (212) (216) (282) (304)

Earning Before Tax 1,892 2,387 2,732 3,061 3,484

Tax Effects (35%) 662 835 956 1,071 1,219

Net Income 2,555 3,222 3,689 4,132 4,703

Earnings Before Int & Taxes 2,288 2,599 2,948 3,343 3,788

Depreciation & Amortization (720) (720) (760) (764) (512)

Tax Rate 35.00% 35.00% 35.00% 35.00% 35.00%

Garnier Men

67