Comstrat 2013 Page 1

GODREJ EXPERT HAIR COLOUR

Note: All information in the case has been garnered from sources in the public domain. This case has been developed for
purely academic purposes, and is not in any way the intended or actual plan Godrej Consumer Products Ltd (GCPL).

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






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

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



The Delivery Formats
Hair colourants are available in a variety of delivery formats, namely:
Powder-based
Cream-based
Oil-based emulsion
Category % Sales
Hair Oils and
Conditioners 41
Shampoos 36
Colourants 17
Salon Hair Care 4
Styling Agents 2
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Shampoo-based
Liquids
The genesis of the Indian hair colour market was with liquid hair colours. Powders as format gained acceptance
post the launch of Godrej hair colour powder in a sachet, creating new levels of access due to low put down price
and simplicity of use.
Through the '90s, the popular hair colours were powder dyes or oil-based liquids. In 1997, LOreal launched its
premium brand Excellence Crme, which introduced the concept of hair colour other than just the regular black
and dark brown in an easy to apply form. They also launched their Salon Business, aimed at getting the experts
(stylists / barbers etc.) to endorse the crme format and the LOreal brand.
However, even today, powder hair dyes comprise the biggest segment in this category, by volume followed by
cream based hair colours. In terms of franchise, the powder franchise is approx. 10x the crme franchise (in terms
of the number of households using.)
Delivery Format Value-Base Share
Powder based 45-50%
Cream based 25%

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

According to industry estimates, powder hair colour constitutes 45-50 per cent of the hair colour market by
value, and is growing at 15 per cent yearly.
Cream hair colour constitutes 25 per cent by value of the hair colour market and is growing at about 20 per cent
yearly. This growth is partly because of the in use sensorials as well as the modern image that this format has.

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

Godrej Consumer Products Limited (GCPL) is the overall market leader in the hair colour category deriving
nearly 15 per cent of its domestic revenues from hair colour. Though it has dominated the powder hair colour
segment in India with a market share of 33 per cent in this segment (Source: AC Nielsen), however it has yet to
obtain a firm footing in the cream hair colour format.
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Currently, the top end of the hair colour market in the cream segment is dominated by L'Oreal (60 per cent)
followed by Streax (9 per cent). The colour cream category is skewed towards the urban metros while the
powders are being used mostly by Tier 2 and Tier 3 cities.
Vasmol from HRIPL (Hygienic Research Institute Pvt. Ltd.) tops the emulsion-based segment with a 91 per cent
share by value. Indian hair colour brands such as Godrej Kali Mehandi, Black Rose Kali Mehandi (Henna Export
Corporation), and Indica (CavinKare) contain natural colouring agents such as henna/mehandi and thus are
perceived to provide a more natural way to colour hair.
Brand Company 2009 2010 2011 2012
Godrej Hair Dye Godrej Consumer Products Ltd. 26.0 25.8 24.2 23.3
Super Vasmol Hygienic Research Institute 17.0 16.0 15.8 15.6
L'Oreal Excellence Creme L'Oreal India Pvt. Ltd. 10.8 10.8 10.8 10.9
Garnier Colour Naturals L'Oreal India Pvt. Ltd. 5.0 5.3 5.6 5.6
Indica Cavinkare Pvt. Ltd. 4.0 4.2 4.3 4.6
Godrej Coloursoft Godrej Consumer Products Ltd. 4.0 4.3 4.5 4.6
Streax Hygienic Research Institute 2.3 2.0 2.0 2.0
Revlon Colorsilk Modi Revlon Pvt. Ltd. 0.9 0.9 0.7 0.6
Others Others 30.0 30.7 32.1 32.8
Total Total 100.0 100.0 100.0 100.0
Fig 4: Brand Shares by Value (in %) (Source: Euromonitor International)
Godrej Hair Colours:

Godrej was one of the early pioneers in the hair colourants category. It launched its first hair colour brand
Godrej Liquid Hair Dye in the 1970s. Used in those days with some degree of hesitation, it did become a
category leader and laid the foundation for the market-to-come. In keeping with market developments, Godrej
added to its portfolio in 1981 by developing and launching a hair dye in powder form.
1n 1995, it revolutionised the market by packaging its hair dye in an economical, easy-to-use, convenient-to-carry
sachet format called Godrej Powder Hair Dye. In rural India which is traditionally price sensitive, it had an open
sesame effect. Its unique selling proposition put succinctly in its communication Kaato, Gholo, Lagaalo (cut,
dissolve, apply) helped it establish unquestioned leadership.
Godrej Expert:

In 2008, Godrej Powder Hair Dye was relaunched as Godrej Expert Powder Hair Dye and carried with it the
promise of a much-needed product innovation. The colour lock formulation technology developed by Godrej,
enabled colour molecules to cover every hair strand for a long-lasting, natural look. Simultaneously, the mildly
perfumed conditioner nourished hair and made it soft and shiny.

In 2011, a further relaunch provided a range of innovations. Godrej Expert Original is the basic black hair colour
(with the largest hair colour consumer franchise in India), Godrej Expert Care (a henna based colour with the
goodness of henna and amla) and Godrej Expert Advanced (powder that forms a gel); the flagship gel innovation
Comstrat 2013 Page 5

that took care of all the fundamental powder format challenges - Non Drip, triple conditioner; and great post use
hair feel.

Another innovation in the Expert hair colour franchise was the launch of the Godrej Expert Rich Crme in 2012.
For the first time in India, a crme hair colour was made available in convenient pre-measured sachets. It is
available in five shades, and is enriched with the goodness of aloe-protein which keeps the hair soft & shiny.
Expert Rich Crme also offers a complete one-stop solution by way of a Hair Colouring Kit (colour sachet +
developer sachet + hair colouring brush + mixing bowl + gloves + ear caps + stain removal wipe + conditioner) to
hand-hold the first timers. Godrej Expert Rich Crme is affordably priced at Rs.59 for the Kit and Rs.30 for the
Single use pack (colour sachet + developer).



















Other Cream-based hair colours from Godrej:

Apart from Godrej Expert Rich Crme, Godrej has two other cream- based hair colour brands, namely Godrej
Colour Soft and Godrej Renew.

Godrej Colour Soft is positioned as a gentle hair colourant that guarantees a pleasant colouring experience. The
built-in conditioner gently penetrates the hair during the colouring process and strengthens it. The post-colour
Moisture Lock conditioner gently refreshes every strand, locking in moisture. Colour Soft offers a complete hair
colouring kit which includes a 40 ml colourant, 40 ml developer lotion, 4 post-colour conditioner sachets of 24ml,
a measuring cup, an instruction leaflet, a pair of gloves and a protective cape.

Godrej Renew cream hair colour is a breakthrough formulation which conditions hair, not once but twice
resulting in twice the shine and softness. It contains Aloe + Hibiscus conditioners that protect and revitalize hair
while colouring. The special after colour conditioner provides nourishment and moisture to coloured hair, giving
it a healthy shine. It is available in two sizes. 50ml priced at Rs.125 and the new 20ml pack priced at Rs. 55.

Henna and henna-based colours from Godrej:

Product Price Format
Godrej Expert Original Rs. 15 / sachet Powder
Godrej Expert Advanced Rs. 15 / sachet Powder
Godrej Expert Care Rs. 20 / sachet Powder
Godrej Expert Rich Crme
Rs. 30/ sachet
Rs. 59 (for the kit)
Cream

Fig. 3: The Godrej Expert Range

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In their natural hair colour range, Godrej Nupur is a 100% natural hair colour while Godrej Kali Mehandi and
Godrej Kesh Kala contain natural colouring ingredients such as mehandi and other herbal extracts to give a
natural colouring to hair.



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Key Competitors in the cream hair colour segment:

Brand Name Celebrity in
Ads
Key Differentiators Type and Constituents Price per kit No. of
shades
LOreal
Excellence
Crme
Aishwarya Rai
Contains a 3X formula
Ceramide which protects,
Collagen which restores
and pro-keratin which
strengthens
Permanent Colour, 100%
grey Coverage, contains
ammonia. The pack consists
of a protective serum,
colourant, developer and
conditioner.
Rs.559 10+
LOreal
Casting
Crme Gloss
Sonam
Kapoor
Targets younger consumers
who want to get stylish,
glossy looking colour.
Semi-Permanent colour, no
ammonia, 50% grey
coverage. The pack consists
of a colourant, developer and
conditioner.
Rs.529 10+
Revlon
Colorsilk
None Imparts luminosity to hair.
Permanent Colour, contains
ammonia. It consists of a
colourant, developer and
conditioner.
Rs. 350 10+
Godrej
Renew
Contains the goodness of
Hibiscus and Aloe vera
Permanent Colour, 100%
grey Coverage, contains
ammonia
Rs. 125 4
Garnier
Color
Naturals
Karishma
Kapoor
It has a nourishing cream
formula and contains olive
oil.
Permanent Colour, 100%
grey Coverage, contains
ammonia. The pack consists
of a colourant, developer and
conditioner.
Rs.155 5

Godrej
Coloursoft
Mild and gentle hair
colour
No ammonia Rs. 140 5
Streax
Sonakshi
Sinha
its key ingredient is Walnut
Oil which helps strengthen
and imparts colour. It also
has a Kera-Vit formula
which conditions hair.
Permanent Colour, 100%
grey Coverage, contains
ammonia. It consists of a
colourant, developer and
conditioner.
Rs.120 17

Godrej
Expert Rich
Creme
Perizaad
Zorabian
Contains the goodness of
Aloe Protein
Permanent Colour, No
Ammonia, Pre-measured
sachets
Rs.59 5
*The italicized Godrej brands are not on air.
Fig. 4: Key competitors in the cream hair colour segment an overview
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The Communication Tasks
To strengthen Godrejs leadership position in the hair colour market in the face of new age competition
by:
o Bringing new users to the category through the Godrej hair colour product portfolio
o Driving format uptrades within the Godrej Expert Brand
To build relevance of the brand in the mind of the consumer through impactful and innovative brand
building initiatives.

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

Godrej Expert is seen as a great entry point for consumers who enter the category. However, whenever
they upgrade, they tend to switch to competing brands such as LOreal, etc. that are seen to have more
brand sheen.
Thus, the key communication challenge here is to propose a strong positioning & differentiation to build the
brand image of Godrej Expert vis-a-vis competition.

Key Deliverables
The task is to provide a communication strategy that details the way forward for Godrej Expert which would help
build the brands in the most effective manner. The strategy document must provide solutions to the following key
areas;
1. Identify key challenges for the brand and its communication.
2. Identify key characteristics of the target consumer.
3. Identify the key consumer insights in the target group and architect the offerings along the needs of the
consumer.
4. Identify the right positioning and messaging platform for targeting the consumer.
5. Identify the right communication message for the brand.
Methodology to be followed:
Weightage will be given to adequate rigor employed in the case. Expert interviews, depth interviews & focus
groups are some of the tools that can be employed to derive consumer insights and thus, to propose the right
positioning & differentiation for the brand.
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Rules & Regulations
Participation Rules:
1. Participating teams should comprise of only three members
2. Only one entry per institute will be considered
Two stages of this event:
Stage I: Submission of the written case solution.
Stage II: Power point presentation of the shortlisted cases.

Stage I: Process and rules for submission of the written case:
1. Draftfcb+Ulka Comstrat is a contest for Communication Strategy; hence students are requested to focus on the
same.
2. Creative renditions are not necessary and will not be judged.
3. A detailed Media plan is also not required and will not be judged.
4. A synopsis of the case solution should be submitted as a word document in a minimum font size of 11 points
and single line spacing. The document should not exceed 15 pages.
5. A written case solution on the case should be submitted either through email to comstrat@draftfcbulka.com or
by post to Draftfcb+Ulka Advertising, 4th floor, Nirmal, Nariman Point, Mumbai 400021.
6. The last date for receipt of the submission is 30
th
October 2013 by 10 a.m.
7. A shortlist of six teams shall be arrived at by evaluating the case solutions received
8. The shortlist shall be declared on 15
th
November 2013 and posted on the website
www.draftfcbulkacomstrat.com and communicated to K. J. Somaiya Institute of Management Studies and Research
9. The six shortlisted teams will be invited to make a power point presentation to a panel of judges on 7
th

December 2013 in Mumbai
Please remember:
1. Synopsis to be submitted as word document only
2. Font size should be minimum 11
3. The document should not exceed 15 pages
4. The document should have single line spacing
5. Synopsis should be submitted on or before 30
th
October 2013 by 10 a.m.
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Stage II: Final power point presentation of the case:
1. Shortlisted teams are requested to reach the venue on 7
th
December 2013 at 10.30 am sharp for the set-up and
dry run.
2. Please get your power point presentations on a CD/Pen drive, rest of the equipment shall be provided at the
venue.
3. The time limit for each presentation is 20 minutes and the students are requested to strictly adhere to the
time-limit. A warning bell will ring after 15 minutes.
4. At the end of 20 minutes the team will be asked to stop the presentation.
5. Students are requested not to indicate their institutes name on the slides or anytime during the presentation.
6. Stay and travel arrangements have to be made by the participants themselves.
7. Comstrat is a contest for Communication Strategy; hence students are requested to focus on the same.
8. In the case presentation, creative renditions are not necessary and will not be judged.
9. Media plan for the same is also not required and will not be judged.
10. The solution must have only one approach and not multiple options.

Key Dates to remember:
Last date for written submission 30
th
October 2013
Shortlist of 6 teams for power point presentation 15
th
November 2013
Final Presentation 7
th
December 2013