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Godrej Expert Range of Hair Colors: Indian Consumers’ ‘Dyeing’ Decisions

CASE STUDY, CONSUMER BEHAVIOR
ET Cases, 11 pages

Case Preview

Godrej Expert Range of Hair Colors: Indian Consumers’ Dyeing Decisions

 

In 2013, Vivek Gambhir (Gambhir) took a market visit to Kurukshetra, Haryana, soon after he took over as the Managing Director of Godrej Consumer Products Ltd.,  (GCPL). During his visit he visited a small kirana store, the owner walked up to him with a sachet of Godrej Expert Rich Hair Crème, a hair color. Gambhir was surprised and expressed amazement that GCPL could offer premium products at an affordable 30. The smallest pack of any basic rival product cost no less than 60. The retailer remarked, “You are launching innovative products almost every quarter when the rest are cutting spends.”1 A couple of years ago, when GCPL was looking at upgrading consumers from powder hair dyes to crème hair dyes, it hit a roadblock on the price factor. It was a market leader in the powder hair dye segment but lost its market in the crème hair dye segment.2

Traditionally priced high in India, crème based salon-style dyes have always been perceived to be efficacious by consumers. GCPL saw an opportunity in this segment and introduced ‘Godrej Expert Rich Hair Crème’ at a minimum price of `30! To drive home the brand’s association with style and fashion, model and entrepreneur Perizad Zorabian was roped in for the ads. Since its launch ‘Godrej Expert Rich Hair Crème’ struck a chord with the consumers and became an instant success. What made consumers to decide in favor of GCPL’s Expert Rich Hair Crème?..................

 



1 Ajita Shashidhar, “Ministering to the masses”, http://businesstoday.intoday.in/story/business-today-top-500-companies-india-godrejrise/1/199727.html, November 10th 2013 (accessed date: May 6th 2015)
2 Prasad Sangameshwaran, “For a few rupees more”, http://www.thehindubusinessline.com/features/brandline/for-a-few-rupees-more/article7130764.ece, April 23rd 2015 (accessed date: May 7th 2015)

Teaching Note Preview

Godrej Expert Range of Hair Colors: Indian Consumers’ Dyeing Decisions

 

Synopsis

The premise of this case study is to enable a discussion on the dynamics of consumer decision-making with respect to Hair Dye as a product. By the end of 2010, Godrej Consumer Product Limited (GCPL) was the market leader in the powder hair dye segment but could not manage to secure a sizeable market share in the faster growing crème hair color segment. This had happened in the wake of its rivals like L'Oréal, and Streax making big strides in the crème segment. GCPL research insight claimed that it was the price factor that was deterring the consumer to upgrade to crème-based hair dye. GCPL decided to launch its crème based hair dye as a quality product at value prices. In 2012, it had launched Godrej Expert Rich Crème at an entry-level price point of 30! For the first time in the country, a crème hair color was made available in convenient pre-measured sachets and this delivery format made it an instant hit with the consumers. What made the consumers to make a decision on upgrading to crème segment? What were the influencing factors (external and internal)? This decisional shift was based on which of the four views (economic, passive, cognitive or emotional) of consumer decision-making? What is the efficacy of consumer decision to purchase Godrej Expert Rich Crème from the point of view of ‘Input, Process & Output’ model of consumer decision-making?

Prerequisite Conceptual Understanding (PCU)/and Prior Viewing

The students/participants should be encouraged to read the following mandatory readings bereft of which a meaningful discussion and adequate analysis of this case study would not be possible:

  • • Leon G. Schiffman, et al., “Consumer Decision Making and Beyond”, Consumer Behavior, 10th Edition – Pearson Publications, 2010 – To understand the dynamics involved in consumer decision-making

 

The following videos must be watched for detailed analysis of this case study:

  • • “Godrej Expert Rich Creme - Oh My God”, https://www.youtube.com/watch?v=oc-SSYh-ARI, November 26th 2012
  • • “Dwarkachand ad. Sam and Meera. Godrej Expert. 2014. – Zindagi Muskuraye”, https://www.youtube.com/watch?v=-OcN7aqg1_U, November 22nd 2014

 

Case Positioning and Setting

This case study can be used in MBA, Executive MBA or Executive Development Programs, for Consumer Behaviour Course:

  • • Consumer Behaviour Course: “Consumer Decision-making and Beyond” – To examine the dynamics of consumer decision-making with respect to Hair Dyeing product/brand buying decisions with a focus on Godrej Expert Rich Crème hair dye

 

Assignment Questions

  • I. What according to you is the nature of Hair Dyeing products? Are they FMCGs or Consumer Durables? Explain with reasons. Of all the three decision-making levels (EPS, LPS & RPS), which of the decision-making approaches do you think a ‘Hair Dye’ consumer would apply? Using the case facts (including exhibits) analyze the level of decision-making in the case of their dyeing habits.
  • II. While the consumer decision-making literature highlights four views of consumer decisionmaking, which view do you think is most appropriate to a Hair-Dyeing product-buying consumer?
  • III. ..................

 

Suggested Orchestration

The classroom discussion and analysis for this case study was facilitated under three broad sections as explained through the Classroom Orchestration [Exhibit (TN)-I] ....................................

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Abstract


This case study is meant to understand the contours of consumers' decision-making. Presented through the lens of Godrej's Expert range of hair dyeing products, this case study helps in meandering through the relevant theoretical constructs of consumer decision-making - levels of consumer decision-making, four views (economic, passive, cognitive or emotional) of consumer decision-making, category-based consumer decision-making, etc. Given the need-style spectrum of dyeing decisions, this case study enables an elaborate discussion on the layers of consumer decision-making.



Pedagogical Objectives

  • To understand the nature of 'Hair Dye' as a product - FMCG or Consumer Durable and debate on if, the hair dye market is driven by need or style statement?
  • To examine the nature of the consumer in the light of four views (economic, passive, cognitive or emotional) of consumer decision-making
  • To discuss the efficacy of Godrej Expert Rich Crème hair dye and its impact on the consumer decision-making in the backdrop of 'Input-Process-Output' consumer decision-making model

Case Positioning and Setting
This case study can be used in MBA, Executive MBA or Executive Development Programs, for Consumer Behaviour Course:

  • Consumer Behaviour Course: 'Consumer Decision-making and Beyond' - To examine the dynamics of consumer decision-making with respect to Hair Dyeing product/brand buying decisions with a focus on Godrej Expert Rich Crème hair dye



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