Professional Documents
Culture Documents
By
Sandeep Ram
Enrolment:-2016PGDM0028
Dr. A. H. Ansari
Website: www.kimds.co.in
Batch: - 2016-18
Certificate of the guide
This is to certify that the Project Work titled SALON MAPPING FO HAIR CARE
PRODUCT is a bonafied work of
Mr./Ms...
In partial fulfilment for the award of PGDM/MBA of KIMDS under my guidance. This
project work is original and not submitted earlier for the award of any degree/
diploma or associate ship of any other University / Institution.
Guides Seal*
Place:-
Date:-
Qualification, Designation & Office Address or the certificate should be in the official
letter head.
Student Declaration
of.
Date:-
A student gets theoretical knowledge form class room and practical knowledge from industrial
trainings. When these two aspects theoretical knowledge and practical experience comes together
then a student is fully equipped to secure his best.
Conducting the project study in an industry students get exposed and have knowledge of the real
situation in the work field and gains experience the practical aspect of in the organisation. It
provides a chance to get fell of the organisation and its function.
Executive summary
Within a short span of the last five-six years, the use of cosmetics by Indian
consumers has increased significantly with more and more women and men taking
greater interest in personal grooming, increasing disposable incomes, changing life
styles, influence of satellite television and greater product choice and availability.
This hair care industry has been growing at an average rate of 20 per cent for the
last few years. The growing Indian cosmetics market offers promising prospects for
international brands. The growth rate in the cosmetics market reflects an increasing
demand for beauty care products in India. Perfumes and fragrances, skin care, and
hair care products are some of the major segments with promising prospects for
German companies.
The urban population with increasing purchasing power is the major force driving
demand for hair care industry.
ACKNOWLEDGEMENT
All of us know that there are some extent persons, those have crucial role behind any success of
an individual.
The successful competition of my project from SCHWARZKOPF bears imprint people. I am very
grateful and would like to take this opportune moment to convey my sincere gratitude heartfelt
thanks them. I would like to acknowledge them for their tremendous support and help towards my
project.
First of all I would like to thank my parents and god obviously. I take this opportunity to extend my
sincere gratitude and deep indebtedness to Mr. Debraj Dutta jonal business manager (east) of
Schwarzkopf, for permitting me to work out my project work in his reputed firm, always forwarded
his helpful hands in the forms of support and guidance to successfully completing my work.
I would like to convey my regard to course coordinator Dr. A K Singh, Dr. A. H. Ansari, Prof.
Sidharth Raja Halder, and Prof. Bikram Dutta, Lecturers of my Institute for their excellence support
and guidance during my project work.
Last but not the least it is my pleasure to convey my whole hearted thanks to those people who
directly and indirectly help me to give a shape of my project report from the beginning to
completion stage.
TABLE OF CONTENTS
INTRODUCTION
Hair care Sector in India
The hair is our crowning glory. It is vital to have soft, shiny and well styled hair to make a
good impression in todays world. People are willing to spend a considerable amount of
money to ensure their hair is well taken care of. No wonder the market is flooded with all
kinds of hair care products.
With more and more demand, the companies investing in hair care are not only thriving but
booming at a good pace. Hair forms a major part of beauty and grooming industry.
2017 has seen a rise in styling products, argon oil based masks and products, organic
serums.etc. Have paved their way successfully as in salon retail products.
Growing demographics and economies in the developing countries such as India and China
are expected to offer good opportunities in hair care market.
Various trends that have been observed in the global hair care market include growing
popularity of hair care treatments such as hair spa and deep nourishment, increasing
number of product launches.
In addition, rising number of mergers and acquisitions between companies, increasing
focus on personal grooming and online retail for hair care products are some of the latest
trends for global hair care market.
CHAPTER.II
COMPANY PROFILE
HENKEL An Introduction:-
Founded in 1876, the Dax-30 company is organized into three globally operating business
units (laundry & home care, beauty care, adhesive technologies) and is known for brands
such as Persil and Fa amongst others.
In the fiscal year ended 2015, Henkel reported sales of 18.1 billion euros and an operating
profit of 3.172 billion euros. (Bosteels, 2016)
In the fiscal year ended 2016, HENKEL reported sales of 18.714 billion euros and the
operating profit of 3.172 billion euros.
More than 80% of its about 51,350 employees work outside of Germany.
Laundry & Home Care with household cleaning products such as laundry detergent and
dishwashing liquid.
Beauty Care with beauty and oral care products such as shampoo, hair colourant and
shower products.
Adhesive Technologies with adhesives, sealants and surface treatments for consumer
and industrial purposes.
Brands
Beauty Care
Schwarzkopf hair care, Schauma shampoo, Fa shower gel and deodorant, Diadermine
skin and body care, Dial shower and hand soap.
The cosmetics company Hans Schwarzkopf was acquired by Henkel in 1995.
Adhesive Technologies
Loctite and LePage as well as UniBond adhesives and sealants, Pritt glue sticks,
Polyseam seal caulk, and Plastic Padding chemicals.(Henkel's Global website)
Henkel mural in Berlin, 1951
HISTORY
Founded in 1876 in Aachen as Henkel & Cieby Fritz Henkel (a 28-year-old merchant who
was interested in science) and two more partners.
They marketed their first product, "Universal waschmittel", a universal detergent based on
silicate.
In 1878, to take advantage of the better transport links and sales opportunities, Henkel
relocated his company to Dsseldorf on the Rhine (its present site).
Dsseldorf was the gateway to the Ruhr region, which became the most important industrial
area of the German Empire from the 19th century onward.
That year, the first German brand-name detergent appeared: Henkel's Bleich-Soda
[Bleaching Soda], an affordably-priced product supplied in sturdy paper bags. Made
from water-glass and soda, it was the result of Fritz Henkel's own research. The soda was
obtained from Matthes & Weber in Duisburg (Henkel bought this company in 1917 and sold
it in 1994).
In 1879, Fritz Henkel was entered as the sole owner in the register of companies. Sales of
Henkel's Bleaching Soda increased so rapidly that within just one year the rented factory on
the Schtzenstrae in Dsseldorf was unable to meet the demand. Fritz Henkel decided to
build his own factory with a railway link.
In 1883, to improve liquidity and make better use of the company's travelling sales staff,
Fritz Henkel decided to sell merchandise in addition to his detergents.
Sales started in 1884. The range included the colourant ultramarine [laundry bluing agent],
gloss starch, a liquid cleaning agent, a pomade for cleaning, beef extract, and a
hair pomade.
In 1886, Henkel opened its first international sales office in Austria. Carl Pathe had gone to
Vienna as a representative the year before.
In 1893, Henkel established its first business links with England and Italy.
In 1903, Schwarzkopf founded by Hans Schwarzkopf (18741921) launched a powder
shampoo. Persil came in 1907 as the first self-acting laundry detergent.
Henkel has been a family-run business since the beginning. In 1893, Fritz Henkel, Jr.
(18751930) joined the firm as an apprentice.
On July 25, 1904, he became a partner in Henkel, which was transformed into a general
commercial partnership. By this time, 110 people were employed at the Holthausen site.
On April 25, 1905, Dr. Hugo Henkel (18811952), the youngest son of Fritz Henkel, Sr.,
joined the company as a chemist.
In 1908, he became a personally liable partner in the company.
In 1912, total production in Dsseldorf-Holthausen rose to 49,890 tons. At 19,750 tons,
Persil laundry detergent accounted for 40% of this, just five years after its market launch.
The number of employees increased by 89 relative to the previous year, resulting in a total
workforce of 1,024. Around half were female.
A first-aid centre was set up in the plant and a full-time nurse was employed.
In the previous year Henkel had installed ball fields and play areas to encourage exercise
during break times.
Female employees could attend the plant's own housekeeping school during the lunch
break.
On January 11, 1923, troops from France and Belgium occupied the Rhineland. The
occupation made delivery of adhesives from suppliers used for the packaging of Persil
unreliable. The disruption caused Henkel to internally manufacture adhesives for its own
needs.
Henkel found there was a demand for adhesives on the market, and on June 22, 1923, the
first adhesive shipment left the plant.
During World War II, foreign civilian slavery workers and prisoners of war were working for
the company. Henkel was part of a large-scale restitution settlement.
On April 16, 1945, American troops occupied Henkel's Dsseldorf site.
On June 5, the British military command in Dsseldorf took over from the Americans.
From July 20, the British military government gradually granted permission for the
production of adhesives, P3 and water-glass by Henkel, and for soaps and detergents as
well as shoe polish by Thompson.
On September 20, 1945, five members of the Henkel family and another seven members of
the Management Board and the Supervisory Board were interned.
In February 1946, Matthes & Weber in Duisburg was given permission to process available
raw materials into soda
In 1949, the launch of Schauma shampoo by Schwarzkopf marked the start of the most
successful German shampoos.
In 1954, Henkel-subsidiary Dreiring launched Fa soap, a new type of toilet soap.
In 1960, by acquiring Standard Chemical Products, Inc. (known as Henkel Inc from 1971),
Henkel entered the U.S. chemical products market.
In 1962, Henkel acquired Sichel-Werke AG, Hannover, its main German competitor in the
adhesives sector.
From 1970 onward it was joined by a series of Fa deodorants, shower gels and bubble
baths, making Fa one of the best known umbrella brands in the toiletry sector.
Pritt, the world's first glue stick, made its debut in 1969. Exports of Pritt began in the same
year, eventually making this Henkel's most widespread global brand.
Vernel fabric softener and enzyme-based bioactive Persil 70 appeared the same year.
In 1974, Henkel acquired shares in The Clorox Company, USA, to facilitate the production
and sale of certain products developed by Henkel for household and bulk consumers (sold
in 2004).
In 1983, Henkel acquired the AOK facial care range from the company von Heyden
GmbH and thus strengthened its position in the cosmetics retail trade.
In 1984, Teroson of Heidelberg (in existence since 1898) was acquired and integrated into
Henkel's Adhesives and Surface Technologies business sectors.
Cosmetics Company Hans Schwarzkopf GmbH was acquired by Henkel in 1995.
In 1996 Henkel acquired Thiem Automotive, a division of National Starch and Chemical
Company. The acquisition included a manufacturing plant in Oak Creek, Wisconsin.
Later it purchased Loctite in 1997.
The purchase of The Dial Corporation in 2004 was the biggest acquisition in the history of
the company until then. This renowned U.S. personal care and household cleaning
products company gave Henkel a strong foothold on the North American market.
In 2004, Henkel also acquired the American cosmetics company Advanced Research
Laboratories (ARL), that has developed and marketed hair cosmetics.
Also in 2004, Henkel acquired Orbseal. The former Orbseal plant in Richmond, MO was
converted to a Henkel plant.
In April 2008, Henkel has taken over from AkzoNobel the Adhesives and Electronic
Materials businesses previously owned by National Starch.
In 2007, these two business segments of National Starch generated sales of 1.25 billion
(about 1.83 billion). The purchase price was 2.7 billion (about 3.7 billion).
On May 5, 2011, Jyothy Laboratories bought 50.97% stake in Henkel India. It has offered to
buy 20% more in Henkel India through a compulsory open offer mandated by SEBInorms.
In 2008, Henkel KGaA became Henkel AG & Co. KGaA.
That same year, Prof. Dr. Ulrich Lehner retired from his position as Chairman of the
Management Board of Henkel KGaA. He was succeeded by Kasper Rorsted.
In September 2009, Dr. Simone Bagel-Trah was elected as new Chairwoman by the Henkel
Shareholders Committee as well as Henkels Supervisory Board.
The retirement of Albrecht Woeste, who had been member of the Committee since 1976
and its president since 1990, marked the transition from the fourth generation of the Henkel
family to the fifth.
In 2010, Henkel defined a new corporate vision: A global leader in brands and
technologies. In order to implement them into the companys working environment, the
five values customers, people, financial performance, sustainability and family were
discussed by all employees in around 5,000 workshops.
In 2011, Henkel introduced its new corporate design combined with the launch of its new
claim Henkel Excellence is our Passion.
In 2014, laundry products specialist Henkel offered to buy French-based laundry aids-to-
shoe polish manufacturer Spotless for 940 million Euros (about $1.3 billion) in cash.
The deal would slightly increase Henkel's share of the $82 billion global laundry care
market to 8.7%, still well behind Procter & Gamble's 26.6% and the 14.8% market share
held by Unilever, which sells Persil detergenta Henkel brandin some markets.
The takeover, which was subject to approval from antitrust authorities, was completed in
May 2015.
Effective May 1, 2016, Hans Van Bylen took over the position as Chairman of the Henkel
Management Board. (Henkel's Global website)
SUSTAINABILITY
SOCIAL PARTNERSHIP
In 2002, Henkel CEE launched the Henkel Art Awarda prize for art in 30 countries in
Central Eastern Europe and Central Asia.
In addition to the monetary prize and presentation of the works of art in Vienna, an
exhibition is also organized for the winner in his or her homeland.
COMPETITORS
Henkel's main competitors in its cleaning division are Unilever, Procter & Gamble and
Reckitt Benckiser.
In its beauty division, its main competitors are L'Oral, Wella, Matrix, Lotus O3+, Jawed
Habib, Lakme etc.
HENKEL INDIA
Henkel Adhesive Technologies India Private Limited is a subsidiary of Henkel AG & Co.
KGaA, Germany. In India Henkel operates in two business units Adhesive Technologies
and Henkel Beauty Care.
Headquartered in Mumbai, Henkel is the market leader in adhesives, sealants and surface
treatments for consumers, craftsmen and industrial applications.
Well-known brands in India include Loctite, Teroson, Bonderite and Aquence.
Under Henkel Beauty Care Division, there is Schwarzkopf Professional and Indola
Professional which is part of the Henkel Group, Dusseldorf and one of the leading suppliers
in the hairdressing business worldwide.
Schwarzkopf Professional is present in 80 Countries across the world and in India it is
fast leading the way in professional hair care. Leading brands include BC Bonacure, Seah
and Oasis.
Henkel Anand India Private Limited, headquartered at Gurgaon is a Joint Venture
Company of Henkel KGaA and Anand Automotive Systems and has Technical License with
Sunrise MSI Corporation Japan.
Henkel Teroson India has manufacturing facilities at Gurgaon, Chennai and Parwanoo.
Henkel Anand India Private Limited is TS 16949, ISO 14001 and OHSAS 18001 Certified
Company by DQS of Germany. The company manufactures and supplies Adhesives,
Sealants and NVH Products to all Automotive OEMs in India.
Henkel Chembond Surface Technologies Ltd., established in 1996, is a joint venture
between Henkel KGaA and Chembond Chemicals Ltd. Headquartered in Navi Mumbai,
India, Henkel Chembond operates in the business areas of Metal Treatment Chemicals,
which includes pre-treatment chemicals, neutral cleaners, lubricants, and coatings.
The renowned brands offered by Henkel Chembond in the country include Bonderite,
Multan, P3, Turco, Autophoretic, Aquence, and Passerite.
Henkel Chembonds manufacturing facilities are located in Tarapur and Sitarganj with
warehouses and offices across the country.(Henkel India)
Henkel has a very unique and powerful strategy which they follow in their organization.
Their strategy is: We will outperformer competition as a globalized company with simplified
operations and a highly inspired team.
Henkel new strategy is built on the foundation of corporate values and will drive their
successful development in the coming years in order to achieve our long-term vision for
Henkel - to become a global leader in brands and technologies.
In order to steer the focus of the entire organization toward the new strategy and ensure its
successful implementation, Company have defined four strategic priorities:
Outperform
Henkel want to leverage the full potential in our product categories in order to gain market
shares and thus to outperform our competition by:
actively managing our portfolio,
strengthening our top brands,
launching powerful innovations, and
Focusing on our customers and consumers.
To capture the potential for accelerated growth and increased profitability in
categories, company have segmented them into three clusters:
Strengthening our brands: Henkel will continue to focus on our top brands such as Persil,
Schwarzkopf or Loctite while further consolidating brand portfolio. By end of FY 2016, companies
top 10 brands are expected to generate approximately 60 percent of total sales (2012: 44
percent). To achieve this, Henkel will expand their global brands and support the top brands with
strong innovations and focused marketing investments.
Innovation and customer focus: A consistent innovation process, driving trend based
innovations that are developed to meet the individual needs of their customers and consumers,
will help them to reinforce their innovation leadership. By capitalizing on sustainability and on
trends such as accessible luxury or convenience, company will ensure that their products remain
highly attractive and relevant for their customers and consumers.
Globalize: The strategic priority Globalize describes their differentiated regional strategies to
grasp growth opportunities around the world.
Leverage strengths in mature markets and expand in emerging markets: In mature markets,
they will leverage their strengths and generate profitable growth by increasing their brand
investments and maintaining their cost focus. By 2016, company aim to gain more top positions in
these markets with their strong brands, while increasing profitability.
Speed and efficiency: They are strengthening our global presence continuously.
Simplify: Simplify is the strategic priority which summarizes their ongoing improvement of global
processes. They will continuously drive their operational excellence by making their processes
faster and more standardized, focusing on cost-efficiency as well as end-to-end optimization.
Extending shared services: new hubs, more business processes: Henkel will extend our
existing shared services by increasing the number of processes handled in shared service
centres.
Inspire: Inspire is the strategic priority which describes their clear commitment to strengthen their
global team. They will focus on three areas: Leadership, Talents & Performance, and Diversity.
Talents & Performance: To attract and retain talents globally, company will strengthen their
employer brand and continue to concentrate on making Henkel a highly attractive employer. This
includes competitive compensation and reward programs that are strongly linked to performance,
as well as attractive career development opportunities in different businesses, offering
international experience and participation in challenging projects.
ABOUT SCHWARZKOPF
Schwarzkopf & Henkel is one of the largest cosmetic companies in the market. Henkel have
customers in 125 countries worldwide that purchased EUR 3.269 billion in 2010.
Their extensive portfolio includes many best known brands and best loved products in
colourant, styling, hair care, toiletries, skin care, oral hygiene and fragrances.
Henkel 'Schwarzkopf Professional' division holds a top 4 position among salon exclusive
brands. They are part of the Henkel Group which also has strengths in adhesives,
detergents and technologies.
Milestones Schwarzkopf
RESEARCH OBJECTIVE
The primary objective of the project is:
To the mapping potentiality of hair segment in professional salon in Jharkhand
Sources of Data Collection:- Data for the research project is collected through both primary and
secondary sources.
Primary sources:-
Data was collected from different Salons with the help of a self made questionnaire and
interviews were also conducted by me with the salon owners for getting the first hand data.
Secondary sources:-It includes different sources like internet, books, and company
reports. The data was gathered through company websites and various books of Marketing
Management and Research Methodology were consulted to equip myself with the topic.
Research Type
Descriptive Research:-Descriptive research methods describe situations. They do not
make accurate predictions and they do not determine cause and effect. There are two main
types of descriptive methods:
Observational methods
Survey methods:- Survey method was used by me with the help of a questionnaire and
personal interview so as to know the current scenario of the market of Ranchi, Ramgarh,
Bokaro, Hazaribagh, and Jamshedpur w.r.t Schwarzkopf.
Sample Size
Universe: The entire bunch of salon owners who serve the city of Ranchi, Ramgarh, Bokaro,
Hazaribagh, and Jamshedpur with professional salon services (all A, B class Salons).
Population: The no. of salon owners who serve their customers with all sort of brands like
Schwarzkopf, Wella, LOreal, Lotus, VLCC, O3+, LAKME, Jawed Habib etc. (A & B class Salons
only). As per the companies database there are only 59 such Salons in the city of Ranchi, which
can be said as an A class or a B class salon. There are almost 59Salons in the city of Ranchi,
7salon in Ramgarh, 5salon in Hazaribag, 9salon in Bokaro and 20 salon in Jamshedpur.
Sample: I choose all of them as a sample to get the responses which can show a clear picture for
the estimation of the success of Schwarzkopf. Out of those 100 responses only 20 responses
were duly filled and in a condition to be analysed and evaluated. The analysis of the received
responses is shown in the later chapter.
The data was collected from approx 10 different Salons present at different prime locations of
Ranchi, Ramgarh, Hazaribagh, Bokaro and Jamshedpur.
Sampling Technique: For the commencement of this project, the method used for sampling was
Convenience Sampling. I was asked to go and get insights from all the Salon owners.
Limitations of Study
Sample size was restricted to 100 only as there are very less no. of professional salons
present on five cities (Ranchi, Ramgarh, Bokaro, Hazaribagh and Jamshedpur).
Inadequate information in some cases as some of the questions were not answered/ filled
properly or accurately by the salon owners because of their negligence so finally only 100
responses were considered to move on for analysis.
The responses are completely based on the perception of Salon owners.
CHAPTER.IV
LITERATURE OF REVIEW
ANSOFFS PRODUCT MARKET MATRIX
The Ansoffs Growth matrix is a marketing planning tool that helps a business determine its
product and market growth strategy (as shown in the below figure).
Market Development Strategy: Market development is the name given to a growth strategy
where the business seeks to sell its existing salon (here SCHWARZKOPF) into new markets
(here JHARKHAND). There are many possible ways of approaching this strategy, including:
New geographical markets like launching a product in a new untapped city or exporting the
44product to a new country.
New product dimensions or packaging.
New distribution channels (e.g. moving from selling via retail to selling using e-commerce
and mail order)
Different pricing policies to attract different customers or create new market segments.
PROSPECTING IN BUSINESS
Prospecting is a two stage process that involves finding new customers for your business. It is a
key component of the selling process that can be used to improve your capacity to make sales
and increase profitability in your small business.
As we strive to grow our business, its easy to get caught up chasing every lead that comes
our way. But all prospects are not created equal, and some are more likely than others to
turn into sales.
To avoid wasting precious resources, we need to weed out the long shots and concentrate
our efforts on those prospects that are likely to yield a return on our investment of
time, money, and energy.
A need: A highly qualified prospect needs our product now or relatively soon.
A sufficient budget: A qualified prospect has the money to buy our product or service. We
should not waste time pursuing someone who truly cant afford to buy what we sell.
The authority to buy: A strong prospect is empowered and prepared to take action.
Moreover, the simpler and more streamlined their decision-making processes, the better
our chances of closing a sale.
CHAPTER.V
Ranchi, Ramgarh, Hazaribagh, Bokaro and Jamshedpur area and also the interviews conducted
by me. The questionnaires were filled by 100 salon owners of Ranchi, Ramgarh, Hazaribagh,
PRIMARY DATA
Questionnaires
Personal interview
SECONDARY DATA
ANALYSIS TOOLS
Graphs
Pie charts
To estimate the potential of clients based on their permanent FTS (full time stylist).
To check the presence of Schwarzkopf in the professional salon of five city (Jharkhand).
RESPONSES &
INTERPRETATION
Q1. What is the average number of footfall of customers per day?
60
49
50
40 38
frequency
Less than 15
30
15-30
30-45
20
More than 45
10 8
5
0
Less than 15 15-30 30-45 More than 45
sample
According to the responses of the Salon owners I found that 38 out of 100 salons have a
customer footfall of less than 15 customers a day where as only 5 out of 100 only a class
salon is able to attract more than 45 clients a day.
49 out of 100 salons have a customers footfall between 15-30 clients a day and 8 out of
100 salons have a footfall of clients between 30-45 a day.
So as per above market responses we can conclude that Ranchi, Ramgarh, Hazaribagh,
Bokaro, Jamshedpur is not yet tapped up to its full potential in terms of Professional Salon
Services.
Also the people of this city are not so much aware about these services and even many
are not so conscious about their Hair as well as Beauty.
Q2. What are the hair care service you are providing in your salon?
120
100 100 98
100 96
80
hair color
frequency
60 hair styling
hair straightening
hair care
40
other
20
0
0
hair color hair styling hair straightening hair care other
Service
According to responses of salon owner/manager I found that 100 out of 100 salons have
hair color service are providing to the customers.
100 out of 100 professional salons have hair styling service are provided to the customers.
96 out of 100 professional salons have hair straightening service are provided to the
customers. Few salon (B class) in a city of Ramgarh have hair straightening are not
provided to the customers.
98 out of 100 professional salon have hair care service are provided to the customers. 2
salon (B class) have not hair care service are provided to the customers.
And no other services are provided to the customers from professional salon.
3. What are the brands which you use more often for the hair care service in your salon?
Hair Color(Q.3a)
25
20
20
15
frequency
10 9
6 6 6
5 5
5 4 4
3
2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0
2,12,15
1
2
4
7
2,4,9
2,6,9,12,18
4,6,9
1,2,3
1,2,4
1,2,7
1,2,9
13
1,2
1,4
1,7
2,4
2,7
2,8
2,9
4,9
5,7,
1,10
1,17
2,10
1,2,10
1,2,15
1,2,6,9
1,2,7,9
1,7,14
1,9,16
2,7,10
2,7,12
1,2,4,6,8,9
1,2,9,15
2,3,4,6,16
2,4,6,9,12
Using Brand
According to responses of salon owner/manager I found that what are the brands which
they are use more often for the hair care service in their salon:-
Hair color: - Most of a professional salon using a brand of Matrix, LOreal, Schwarzkopf,
Wella, Lotus, Streax, and Garnier for Hair color services are provided in theirs salon.
And rest of the salon use other brand like Age lock, O3+, Raga, Bio care, Vlcc, Lakme,
Mazzero, Shahnaz, Oriflame, Indola and Aroma for Hair color services provided in their
salon.
25
Hair Styling(Q.3b)
20
20
15
frequency
10 9
6 6 6
5 5
5 4 4
3
2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0 2,12,15
1
2
4
7
1,17
2,6,9,12,18
4,9
1,2,3
1,2,4
1,2,7
1,2,9
13
1,2
1,4
1,7
2,4
2,4,9
2,7
2,8
2,9
4,6,9
5,7
1,10
2,10
1,2,10
1,2,15
1,2,6,9
1,2,7,9
1,7,14
1,9,16
2,7,10
2,7,12
1,2,4,6,8,9
1,2,9,15
2,3,4,6,16
2,4,6,9,12
Using Brand
According to responses of salon owner/manager I found that what are the brands which
they are use more often for the hair care service in their salon:-
Hair styling: - Most of a professional salon using a brand of Matrix, LOreal, Schwarzkopf,
Wella, Lotus, Streax, and Garnier for Hair styling services are provided in theirs salon.
And rest of the salon use other brand like Age lock, O3+, Raga, Bio care, VLCC, Lakme,
Mazzero, Shahnaz, Oriflame, Indola and Aroma for Hair styling services provided in their
salon.
Hair Straightening(Q.3c)
25
20
20
15
frequency
10 9
6 6 6
5 5
5 4 4
3
2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0 2,12,15
1
2
4
7
2,6,9,12,18
1,17
1,2,3
1,2,4
1,2,7
1,2,9
13
1,2
1,4
1,7
2,4
2,4,9
2,7
2,8
2,9
4,6,9
4,9
5,7
1,10
1,2,10
1,2,15
1,2,6,9
1,2,7,9
1,7,14
1,9,16
2,10
2,7,10
2,7,12
1,2,9,15
1,2,4,6,8,9
2,3,4,6,16
2,4,6,9,12
Using Brand
According to responses of salon owner/manager I found that what are the brands which
they are use more often for the hair care service in their salon:-
And rest of the salon use other brand like Age lock, O3+, Raga, Bio care, VLCC, Lakme,
Mazzero, Shahnaz, Oriflame, Indola and Aroma for Hair Straightening services provided in
their salon.
Hair Care (Q.3d)
25
20
20
15
frequency
10
10
6 6 6
5 5
5 4 4
3
2 2 2 2 2
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
0
1,7
1
2
4
7
2,4,9
2,6,9,12,18
13
1,2
1,2,3
1,2,4
1,2,7
1,2,9
1,4
2,4
2,7
2,8
2,9
4,6,9
4,9
5,7
1,10
1,17
2,10
1,2,10
1,2,15
1,2,6,9
1,2,7,9
1,7,14
1,9,16
2,7,10
2,7,12
1,2,4,6,8,9
1,2,9,15
2,3,4,6,16
2,4,6,9,12
Using Brand
According to responses of salon owner/manager I found that what are the brands which
they are use more often for the hair care service in their salon:-
Hair care: - Most of a professional salon using a brand of Matrix, LOreal, Schwarzkopf,
Wella, Lotus, Streax, and Garnier for Hair care services are provided in theirs salon.
And rest of the salon use other brand like Age lock, O3+, Raga, Bio care, VLCC, Lakme,
Mazzero, Shahnaz, Oriflame, Indola and Aroma for Hair care services provided in their
salon.
4. What are the brands for hair care you keep in your salon?
90 85
80
70
60
Matrix
frequency
50 47
45 L'oreal
Wella
40
Schwarzkopf
30 Age lock
20 Other
20
10
4
2
0
Matrix L'oreal Wella Schwarzkopf Age lock Other
Sample
According to the responses of the professional salon owner/manager I found 45 out of 100
salons keep Matrix for hair care in their salon.
85 out of 100 professional salons are keeping LOreal for hair care in their salon.
4 out of 100 professional salons are keeping Wella for hair care in their salon.
20 out of 100 professional salons are keeping Schwarzkopf for hair care in their salons.
2 out of 100 professional salons are keeping Age Lock for hair care in their salon.
And 47 out of 100 professional salons are keep other brand like (O3+, Raga, Lotus,
Garnier, Streax, Vlcc, Lakme, Shahnaz, Oriflame, Indola, Aroma etc.) for hair care in their
salon.
Q5. Rank the following brand in terms of product quality?
Matrix(Q.5a)
60
54
50
39
40
frequency
30 Not using
Good
20 Excellent
10 7
0
Not using Good Excellent
Rank
7 out of 100 professional salons owner/manager say that Matrix is good for hair care.
And 39 out of 100 professional salons say that Matrix is excellent for hair care.
L'Oreal(Q.5b)
90
83
80
70
60
frequency
50
Not using
40 Good
30 Excellent
20 15
10
2
0
Not using Good Excellent
Rank
2 out of 100 very less number of professional salon owner/manager say LOreal is good for
hair care product.
And 83 out of 100 very large numbers of professional salon owner/manager say LOreal is
excellent for hair care product.
Wella(Q.5c)
100 95
90
80
70
60
Frequency
50 Not using
40 Good
30 Excellent
20
10 4
1
0
Not using Good Excellent
Rank
1 out of 100 professional salon owner/manager are says Wella is good for hair care
product.
And 4 out of 100 professional salon owner/manager are says Wella is excellent for hair care
product.
Schwarzkopf(Q.5d)
90
80
80
70
60
frequency
50
Not using
40 Good
30 Excellent
19
20
10
1
0
Not using Good Excellent
Rank
1 out of 100 professional salon owner/manager are says that Schwarzkopf is good for hair
care product.
And 19 out of 100 professional salon owner/manager are says Wella is excellent for hair
care product.
Q6. Rank the following parameters for keeping a particular brand in your premises?
100 96
80
frequency
60
Significant
40 Very significant
20
4
0
Significant Very significant
Rank
And 96 out of 100 the large numbers of professional salon owner/manager say we are very
significant the brand image of using company.
Margin/Price of using brand (Q.6b)
100 95
90
80
70
60
frequncy
50 Neutral
40 Significant
Very significant
30
20
10 4
1
0
Neutral Significant Very significant
Rank
95 out of 100 a large number of professional salons owner/manager says that margin/price
are significant for keeping a particular brand.
And 4 out of 100 a less number of professional salon owner/manager say margin/price are
very significant for keeping a particular brand.
Availability of using brand (Q.6c)
100
89
90
80
70
60 Not significant
frequency
50 Neutral
40 Significant
30 Very significant
20
10 7
1 3
0
Not significant Neutral Significant Very significant
Rank
7 out of 100 a large number of professional salons owner/manager say that availability are
neutral for keeping a particular brand.
89 out of 100 a large number of professional salon owner/manager say availability are
significant for keeping a particular brand.
And only 3 out of 100 professional salons owner/manager say availability is very significant
for keeping a particular brand.
Company support of using brand (Q.6d)
45
40
40 37
35
30
frequency
25 Not significant
20 Neutral
20
Significant
15
Very significant
10
5 3
0
Not significant Neutral Significant Very significant
Rank
37 out of 100 of professional salons owner/manager say that company support is neutral for
using a particular brand.
40 out of 100 professional salon owner/manager say company support is significant for
using a particular brand.
And only 3 out of 100 professional salons owner/manager say company support is very
significant for using a particular brand.
Product quality of using brand (Q.6e)
100
90 87
80
70
60
frequency
50
Significant
40
Very significant
30
20
13
10
0
Significant Very significant
Rank
And 87 out of 100 the large numbers of professional salon owner/manager say we are very
significant the product quality of using company.
Scheme & offer of using brand (Q.6f)
40 38
35
35
30
26
25
frequency
Not significant
20 Neutral
Significant
15
Very significant
10
5
1
0
Not significant Neutral Significant Very significant
Rank
35 out of 100 of professional salons owner/manager say that scheme and offers is neutral
for using a particular brand.
38 out of 100 professional salon owner/manager say scheme and offers is significant for
using a particular brand.
And only 1 out of 100 professional salons owner/manager say scheme and offers is very
significant for using a particular brand.
Customer demand of using brand (Q.6g)
90
81
80
70
60
frequency
50
Neutral
40
Significant
30 Very significant
18
20
10
1
0
Neutral Significant Very significant
Rank
18 out of 100 professional salons say that customers demand are significant for keeping a
particular brand.
And 81 out of 100 a large number of professional salon say customer demand are very
significant for keeping a particular brand.
Q7. What kind of support you get from the company for keeping their brands in your
premises? (You can choose more than one).
Q.7
60 56 57
42 Free sample
40
Regular visit
frequency
30 Training to stylist
Kits/Service
20
materials
11 Advertising
10 materials
0
Scheme & offers Free sample Regular visit Training to Kits/Service Advertising
stylist materials materials
Support
Provide Training
45
41
40
35
30
Every 15 Day
Frequency
25
Once in a Month
20 18 Once In 2 Months
15 Once in 3 Months
15
12 Once In 6 Months
11
10 Never
5 3
0
Every 15 Day Once in a Once In 2 Once in 3 Once In 6 Never
Month Months Months Months
Sample
90
80
80
70
59
60
frequency
50
41 Delivered by
company
40
personnel
Delivered by
30 Distributers
20 Go to Purchase
From Market
10
0 Other
0
Delivered by company Delivered by Distributers Go to Purchase From Other
personnel Market
Sample
According to responses of professional salon owner/manager I found how you procure the
materials/brands of hair care product:-
59 out of 100 professional salons are procuring the material/brand delivered by company
personnel.
80 out of 100 professional salons are procuring the material/brand delivered by distributers.
41 out of 100 professional salon are procure the material/brand go to purchase from
market.
Q10. If a competitive brand offers you attractive scheme/discount, would you switch your
regularly used brand?
Total
80
73
70
60
50
frequency
40
Yes
30 27 No
20
10
0
Yes No
sample
27 out of 100 professional salons are saying yes if a competitive brand offers attractive
scheme/discount, I switch our regularly used brand.
73 out of 100 professional salons are saying no if a competitive brand offers attractive
scheme/discount, I do not switch our regularly used brand.
Q11. Who decided upon which brand of hair care product to be purchased?
100
90 88
80
70
64
62
Owner/ Manager
60
frequency
50 Stylist
40 Costomer Request
30 Corporate/Central
Purchase
20
10 6
0
Owner/ Manager Stylist Costomer Request Corporate/Central
Purchase
Sample
62 out of 100 professional salon owner/manager is decided brand of hair care product to be
purchased.
64 out of 100 professional salons hair stylist is decided brand of hair care product to be
purchased.
88 out of 100 professional salons are purchased a product for customer request.
Q.12
45
40
40
25
21 21 Not sure
20
14 Exclusive outlate
15
hence can't
switch
10 Depends upon
customer/stylist
5 4
0
Will not change Will switch the Not sure Exclusive outlate Depends upon
the brand brand hence can't switch customer/stylist
Sample
40 out of 100 professional salon owner/manager say will not change the brand.
21 out of 100 professional salon owner/manager say will switch the brand.
4 out of 100 professional salon owner/manager say exclusive outlet hence cant switch.
21 out of 100 professional salon owner manager say depends upon customer/stylist.
CHAPTER.VII
CONCLUSION &
SUGGESTION
CONCLUSION
The following are the conclusions that can be drawn from the survey that was carried out by me:
The market of Ranchi, Ramgarh, Hazaribagh, Bokaro and Jamshedpur is at nascent stage
and it will require some time to get accelerated in case of premium hair colour market. In
hair colour market, the brands of lower or middle segment like LOreal, Matrix, Age lock,
O3+, Lotus, Vlcc, Lakme and Wella are more popular than professional segment brands.
One of the reasons being lower disposable income as compared to metro cities.
Talking about the statistics, according to the responses of the Salon owners it was found
that 38 out of 100 of the total salons have a customer footfall of less than 15 customers a
day whereas only 2 branded high class salon was able to attract more than 45 clients a
day.
Talking about the Full time hair stylist (FTS) employed by the salons, as per the research
findings, only 19 out of 100 respondents told that they employee more than 6 FTS and have
a spending of more than Rs. 2 lacks per month. Hence as per the companys expectations
only these 19 salons out of 100 can be said as an A class customer. Whereas 57 out of 100
of the salons employ only 3 to 6 FTS which the spending can be expected to be 90000 to
1.8 lacks which means they can be said as a B class Customer. Also 24 out of 100 of the
salons employ only one or two FTS, with an expected spending of a maximum of Rs.60000
per month, which means they are a C class Customer.
If we talk about the presence of Schwarzkopf in the salons, it was found that around 20 out
of 100 of the total sample keeps the brand Schwarzkopf in their salon and a small
population of around 80 out of 100 does not keep the brand Schwarzkopf in their salon. The
reasons when asked for not keeping the same, they replied that customer never ask (do not
know about the brand) and the customers who know also hesitate to use as it is slightly
costlier than all other brands available in the market.
According to the response of salon owners, it was found that LOreal is present in maximum
no. of professional salons (85 out of 100) of Ranchi, Ramgarh, Hazaribagh, Bokaro and
Jamshedpur. followed by Matrix i.e., 45 out of 100. Then it is Wella which is present in 4 out
of 100 salons and then other which is present in 47 out of 100 professional salons. Rest all
other brands like O3+, Raga, Lotus, Garnier, Streax, Vlcc, Lakme, Shahnaz, Indola,
Oriflame, Aroma etc.
Talking about Market Presence, it can be concluded that LOreal has highest presence in
the market of Ranchi., Ramgarh, Hazaribagh, Bokaro and Jamshedpur as compared to all
other brands in case of all three segments i.e. Hair Colour (85 out of 100), Hair Care (85 out
of 100) and Hair Styling (85 out of 100) and Hair Straightening (85 out of 100) which is a
very good symbol for LOreal but it is a worrying figure for Schwarzkopf. After LOreal the
most preferred in all the above cases is Schwarzkopf with presence in Hair Colour (20 out
of 100), Hair Care (20 out of 100) and Hair Styling (20 out of 100) segments. The only
segment where Schwarzkopf is preferred over others is the segment of Hair Straightening,
where 20 out of 100 of the total population prefer Schwarzkopf over other brands
.Schwarzkopf has to go a long way in the Ranchi, Ramgarh, Hazaribagh, Bokaro and
Jamshedpur market to become a market leader. To increase its presence the company
should promote aggressively and offer some lucrative offers to the salon owners.
For factors/ parameters which are most significant as a strong reason to keep a particular
Brand in Salons, it can be concluded that Service/ Availability of the products on time and
as per the demand is the most significant factor which purchase a customer to keep a
particular brand in their premises, followed by the Quality of the products. Company
Support and Brand Value scored hand in hand in terms of importance after the above
factors followed by importance of Margin given to the salon owners and lastly the Schemes
& Offers with 48 out of 100, Free sample 11 out of 100, Regular visit 42 out of 100, Training
to stylist 56 out of 100, Kits & service materials 48 out of 100 and Advertising materials 57
out of 100 people voting it as a very significant factor in choosing a Brand.
SUGGESTIONS
Here are the suggestions for Henkel-Schwarzkopf based on my personal experience during
survey period to help the brand in getting good response from the Ranchi, Ramgarh, Hazaribagh,
Bokaro and Jamshedpur market:
Under ASK Initiative, the Company should train the hair-dressers of Ranchi, Ramgarh,
Hazaribagh, Bokaro and Jamshedpur using the latest learning tools to make them equip.
with all the technical and business skills they need for professional success, as many of the
respondents said that they are still waiting for the first demo from companys side. This will
not only help the hair-dresser but also help the companys products to attain market
leadership in Ranchi, Ramgarh, Hazaribagh, Bokaro and Jamshedpur.
Henkel should get tie-up with all the A and B class salons/beauty parlours in order to
increase the sales of the product by offering an added advantage to partnered
salons/beauty parlours.
One of the key to success in this market is having effective distribution system which is
lacked by company. Many of the respondents complained that they are very unhappy with
the service/availability of the product. To overcome this problem company should take help
of technology by creating a mobile app for salon owners for updating their orders and
company should ensure that delivery of product is done in next 8 hours. It will create a
revolution in hair care market and help the company to get an advantage over others.
For increasing the brand awareness company should sponsor different fashion shows,
cultural events, collages/universities annual functions organized in and around Ranchi,
Ramgarh, Hazaribagh, Bokaro and Jamshedpur. This will help Schwarzkopf to be seen
more in the grounds.
On the foundation day of the company i.e., on 26th September onwards Henkel should start
Schwarzkopf week. In this week company can offer discounts to customers and salon
owners as well as company should call national or international hair-dressers to give the
customer free advice/service to 100 lucky customers and get a chance to meet with them.
This can help Schwarzkopf to promote their Products much more than they are able to do
now.
Henkel should start their production in India under Make in India initiative. It will help the
company to reduce its total cost of product and also help the nation in getting employment
opportunity. This will create a cycle where more employment will lead to more disposable
income and hence more of spending in these professional Hair and Beauty care services.
Under CSR initiatives, the company should help the poor children of Ranchi to get free
education and food. Also the company can give free training to some of the ladies of Ranchi
and outskirts to become a professional Hair Dresser, which will cost very less to the
company but can change the livelihood of those families. This will help the company to gain
trust among the people of Ranchi in the same way as TATA is having in minds of Indians.
Henkel feels that it serves a very niche segment and so is not so much aggressive in terms
of advertising. To penetrate more and more nationwide it should take help of television
advertisements because majority of people are everyday connected with televisions. In
order to target young girls and women, company should give their advertisement in Family
Hindi Channels like Star Plus, Zee TV, Sony, and different ladies approached channels.
Customer Feedback:- It is rightly said that company will only grow if it thinks and work on the
basis of regular customer feedback. Following are some of the feedbacks from customers side
which should be foreseen if the company wants to be a market leader in future.
Salon Demo after launch.
Promotion via internet media, in salon training via experts.
Mid-range, good quality and result oriented product.
Regular Market visit.
Should be a product with reasonable/economic pricing.
Penetration pricing in case of new launches and then go for a hike in future.
Regular service and company support.
Product should be cheap and best.
Please support small salons also to penetrate in the market via offering low range products.
Proper advertising and launch.
CHAPTER.VIII
BIBLIOGRAPHY
BIBLIOGRAPHY
(n.d.) Retrieved 07 24, 2016, from Wikipedia: https://en.wikipedia.org/wiki/Henkel
http://www.schwarzkopf.com/skus/en/home/schwarzkopf/about_us/history.html#id14550795
61
Bosteels, K. (2016, 02 25). Double-digit growth for Henkel in 2015. Retrieved 07 24, 2016,
from Retail Detail: http://www.retaildetail.eu/en/news/double-digit-growth-henkel-2015
ranjan, R. (2015, october 19). The Hair Care market in India. Retrieved July 24, 2016, from
BEAUTY NEWS INDIA: http://beautynewsindia.com/the-hair-care-market-in-india/
Dear Sir/Maam,
Regards,
Sandeep Ram
9631381527
Basic information:-
2. Concerned person: -
3. Address:-...................
4. Contact No.
Q2. What are the hair care services you are providing in your Salon?
e. Others.(please specify)
Q3. What are the brands which you use more often for the hair care services in your
saloon? Name of brands.(you can write more than one)
Hair color
Hair styling
Hair
Straightening
Hair care
Others
Q4. What are the brands for hair care you keep in your salon?
a. Matrix b. LOreal
c. Wella d. Schwarzkopf
Other
Q6. Rank the following parameters for keeping a particular brand in your premises?
Availability
Company
support
Product
quality
Scheme &
offers
Customer
demand
Q7. What kind of support you get from the company for keeping their brands in your
premises?
b. Delivered by distributors
Q10. If a competitive brand offers you attractive scheme/discount, would you switch your
regularly used brand?
a. Yes b. No
Q11. Who decides upon which brand of hair care product to be purchased?
a. Owner/Manager b. Stylist
Q12. What is your suggestion for any hair care brand to do goods in market?
QUESTIONNAIRE