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.” 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.
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?..................
Hair Dye – The Genesis
Hair colour history can be traced back to 27 BC. Tools and dyes pertaining to men coloring their hair were unearthed by archaeologists at sites in the Middle East. Red appeared to be the color of choice and it most possibly was used to rank people in society. Since life expectancy was short, it is unlikely that it was ever used to cover grey...........
The Hair Color Market in India
The hair care market was estimated at around ₹152 billion in 2013-2014. The hair color segment accounts for around 15% of the total hair care market (Exhibit III). Penetration level of hair color is estimated at over 35% in India9 and hair colorants have proven to be the hair care industry’s crowning glory. The hair color industry grew by more than five times in the last 10 years and is currently growing at 15% year-on-year.............
Dyeing and Consumer Decision-Making
Hair Color was primarily used to cover grey hair till the late ’80s. However, in the last decade, it has emerged as a fashion statement. The streaked hair and glossy rich colored tresses, which used to be the fancy of the rich and famous, now reached to the masses. ‘Premature greying’ is a factor which is hardly ignored and is playing an instrumental role in driving the potential of this market. Bengaluru-based Dermatologist Dr. Mukta Sachdev (Sachdev) observes increasing numbers of children and young teens with greying hair and says............
Godrej Expert Rich Crème – 5Ps
Product & Price
In India, brands like L’Oréal Professionnel, followed by Schwarzkopf and Wella, dominate the salon/professional market. This segment has seen steady growth, predominantly in the metropolitan market since the tier two market consumers were a bit slow in upgrading to salon services. In order to tap the crème market, Godrej introduced the Expert hair color range in 2012 (Exhibit VI) which comes in five different shades (Natural Black, Dark Brown, Black Brown, Natural Brown and Burgundy)...........
..............................
Place
Industry experts opine that, most of the time personal care products are bought by the servants or the maids of the households. The neighborhood general store continues to be the most popular purchase location for personal care products. Department stores, women’s boutiques and salons are emerging as new purchasing destinations in urban areas............
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 and RPS), which of the decisionmaking 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 decision-making, which view do you think is most appropriate to a Hair-Dye product-buying consumer?
III. .................
Exhibits
Exhibit I: Godrej Powder Hair Dye
Exhibit II: Brand Shares By Value (in%) 2012
Exhibit III: Hair Care Market In India
Exhibit IV: Hair Color Market Key Drivers
Exhibit V: Influencing Factors In Buying Hair Dyes
Exhibit VI: Five Shades of Godrej Expert Rich Crème
Exhibit VII: Key Players in Crème Based Hair Color Category
Exhibit VIII: Godrej Expert Rich Crème - Oh My God - TVC
Exhibit IX: Godrej Product Price Stats
Exhibit X: Godrej Expert Rich Crème - Consumer Feedback