HUL’S TRESemme’: Creating Customer Value through Premiumization and Salonization
This case study enables a discussion on how customer value can be created through premiumization of an existing category (hair care) through offering a differentiated product, so that customers would uptrade. TRESemmé was introduced in India in 2012, targeting the salon frequenting customers, with a DIY proposition, claiming ‘salon inspired hairstyle at home, every day’ at affordable price. TRESEemme’ struck a chord with the consumers and within a year it became a ₹100 crore brand, giving tough competition to the existing players P&G and L’Oreal.
Any woman or a girl in her teens, who steps out from the salon with a hair treatment wishes for nothing more than her hair to stay - lustrous, smooth, soft to the touch, or at least be able to afford salon treatments more often. Unfortunately, the latter is a luxury few can afford even though the former stays a life-long aspiration. HUL wanted to offer that luxury at an affordable price for the mass segments with its premiumized product TRESemmé – shampoo and conditioner. Offering unique value proposition to the consumers, with its salonization pitch and deep ‘masstige’ (upper mass) positioning, TRESemmé took the Indian hair care market by storm and by 2013, it joined HUL’s ₹100 crore brand club. This case study analyzes, how TRESemmé would bridge the gap between the ‘Premium’ and ‘Mass’ segment, in the shampoo market, creating a new customer category that wants to uptrade. How long would TRESemmé’s winning streak continue, if the salon inspiration strategy wouldn’t trickle down to the mass segments? Would premiumization help ensure, TRESemmé to build a unique brand in India?
Prerequisite Conceptual Understanding/Before the Classroom Discussion
This case study presupposes a conceptual understanding of the following. A working knowledge along with the business implications of the following concepts would enable an effective discussion leading to more practical solutions than a mere intellectual exercise............
Expected Learning Outcomes
- • How a mass segment can be tweaked to offer a Premiumized product
- • How salonization pitch made TRESemmé to create new consumer segment between Mass and Prestige segments
- • Role of HUL’s unique product/promotional mix to project TRESemmé as a premiumized product, devised exclusively for salon frequenting customers
- • Measures that TRESemmé should undertake to increase and sustain its market position
- I. What’s your assessment of the growth and potential of Indian personal care market in general and hair care market in particular?
- II. What do you understand by HUL’s – business strategy theme – ‘Winning Today, Winning Tomorrow’? What were the contributing factors which became the shot in the arm for the introduction of TRESemmé and its success eventually?
- III. ..................
The classroom discussion and analysis for this case study could be summarized through the Board Plan [Exhibit (TN)-I]. However, the classroom discussion was facilitated under three broad sections as explained below [Exhibit (TN)-II]...............