wella
TRANSCRIPT
Customer Relationship Management
Report
On
Wella Kolestint (Hair Color)
Submitted to:Prof. Sham Sharma(faculty)On: 2nd Feb 2011
Submitted by:Simranjeet KaurPGDRM 12IRS
Indian Retail School(A Unit of: Pearl Retail Solutions Pvt. Ltd.)
A - 21/12, Naraina Industrial Area - Phase II(Next to Pearl Academy of Fashion)
New Delhi - 110028Ph.: +91 - 11 - 46769999 / 46769918 / 46769919
Fax: 46769933Email: [email protected]
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Content
S.No Topic Page no.
1 About Wella Kolestint
2 Wella Kolestint in India
3 Wella and P&G
4 About Leo Burnett
5 Launch of Wella India
6Steps taken to inform the customer of the needs identified
7Extent to which the product purports to satisfy consumer needs
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Why the product will succeed or fail in the marketplace
Positives
Negatives
9 Appendices
10 References
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About Wella Kolestint Hair Color
Wella Kolestint hair color is being introduced in India, one of the fastest growing markets globally and one of the world’s top 10 hair color countries.This is P&G’s first hair color launch into a new country since the company acquired Clairol and Wella in 2001 and 2003, respectively. Wella Kolestint, known in some other markets as Wella Koleston, has been one of P&G’s fastest-growing global brands in the past year.
With deep, long-lasting color, Wella Kolestint is designed to appeal to beauty-conscious Indian women:
• Wella Kolestint is the #1 hair color in some of the world’s largest dark hair markets*, including Brazil, Mexico, Turkey and Saudi Arabia. This is becauseWella Kolestint is designed to deliver outstanding color for dark hair.
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• The unique Wella formula goes deep to the core and soaks each hair strand with color while providing 100% gray coverage.
• 82% of Indian women rated Wella Kolestint the longest-lasting color ever**.
About Wella Kolestint Technology:
• Wella Kolestint creates deep, long-lasting color with a home coloring kit that includes crème color, color developer, pre-treatment sachet and post-coloring conditioner.
• The formulas have higher dye loads than formulas designed for markets with lighter haired consumers.
• The formula is designed to minimize strand to strand variation and deliver deep/rich color from root to tip.
Availability:
Wella Kolestint offers a palette of 12 Vibrant Shades, available from October 2010 throughout top cities in India in Modern Retail, Cosmetic, Drug and top High Frequency Stores (HFS) and Pharmacies.
*Based on external data.**Based on AC Nielsen survey of 456 Indian women in 2009.
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Wella Kolestint in India
The brand Wella is the inventor and a leader in the hair colour industry and undisputed front-runner in the professional saloon and hairdresser segment.
India was the huge market and the company was focusing on professional segment only in India. All the products were being imported from Germany and used in A and B class parlours.
However on 1st October 2010; Procter & Gamble India (P&G) brought in one of its biggest global brands– Wella hair colour—as it looks to strengthen its health and beauty business in India. This was the first time that the detergents-to-diaper maker entered the Indian hair colour market, which is dominated by L'Oreal India's L'Oreal Excellence Crème and Garnier , and Godrej Consumer Products. P&G’s entry into hair colour market could be a formidable one, and a likely threat to L'Oreal and Godrej Consumer Products." P&G's closest rival, Hindustan Unilever (HUL), does not have a presence in hair colour segment. Both HUL and P&G, however, compete aggressively in shampoos with their respective brands Dove and Pantene.
The internationally recognized Hair Styling and Hair Color brand WELLA is in India with its premium range of Hair colors. The subsidiary acquired by Procter and Gamble is looking forward to cash in its international legacy in Hair Styling category.
The Indian Hair color market was estimated to be worth 1200 Crores and is growing at a healthy 25% as per A.C. Nielsen report. The market has major players such as Godrej, L'Oreal, Garnier and HRIPL ( ie. Hygienic Research Institute Pvt. Ltd.) which owns brands like Vasmol & Streax.
The market is further categorized into hair colors, powdered hair colors, Kali Mehndi and Colored Creams.
German hair and beauty company brand Wella, which was established in 1880's, was taken over by Proctor and Gamble in 2003 combining their respective product lines which gave the former strategic access to the global
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professional hair care market. This made Wella among the top two global hair colour brands, after French brand L'Oreal.
The first hair colour brand to be developed in the world in 1950, the brand is likely to occupy the mid-premium price range in India.
The brand is also known as Wella Koleston in markets like the US. Wella Professionals is the leader in professional hair colour and service, and its range includes temporary to semi -permanent and permanent hair colours.
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Wella and P&G
P&G spent most of the 1990s establishing a global footprint. Now, according to Pritchard, it finally has the chance to live up to its purpose. The first step was getting senior management to define a purpose for each of the brands in the P&G stable: a blueprint on how the company could touch and improve lives.
Marc Pritchard , global marketing and brand building officer, P&G explains, “We still have a core benefit but are thinking more broadly on how we can deliver it. We are very focussed on sharpening what the brands stand for, identifying human insights that can translate into big ideas.” Seven years after Proctor & Gamble (P&G) acquired Wella for $7 billion, it will now have an India impact.
In 2010 P&G India entered the Rs 1000 crore hair colour market and also got into the premium end of shampoo segment through this brand.The world’s largest consumer products company wanted to add color and shine to its Indian business, literally.
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About Leo Burnett
Type of agency: Advertising
Key personnel: Arvind Sharma, chairman of Indian sub-continent, Nitish Mukherjee, MD, K V Sridhar, national creative director, Rajeev Sharma, national planning director, Samir Gangahar, executive director-delhi
Accounts won: Avantha Corporate, Vedanta, United Technologies Corporation, McCain Foods, Kohler, BILT, Tata International, CavinKare Digital - Carrefour India website, Piramal Supractiv, HPCL racer 4, Procter &Gamble Wella India website, Procter & Gamble shiksha, SRF India, RIM Blackberry Activation - IPM India (Philip Morris), HPCL Racer 4 Loyalty programs, Procter & Gamble MDO
Accounts lost: HomeTown
Notably, the agency worked on the launch campaign for Coca Cola India’s Maaza, Milky Delite and Kaun Banega Crorepati – Season 4. Nitin Pradhan was roped in as ECD and Seema Sood as director for their Events & PR division.
Leo Burnett left its impression across all the major awards this year for their Tide Magnets campaign. Across categories, the agency collected two silvers and a bronze at the Cannes Lions, a silver at Clio, two gold and one silver at the New York Festivals Awards, and managed two silvers and four bronzes at the Ad fest 2010. The agency managed five bronze awards at Spikes and two silvers at London International awards.Among the Indian awards, Leo Burnett ended their quest at Goafest 2010 with three silvers and eight bronzes.
How Leo Burnett rates itself: 8
In 2010 at 35% over 2009 Leo Burnett India registered its strongest ever growth in the last ten years. This has happened on the back of robust new business acquisition and our ability to convincingly contribute to our clients’ business
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growth. Digital and Activation gathered steam through the year and significantly increased contribution.
Popular campaigns for Uninor and the launch of Kaun Banega Crorepati deserve special mention amongst the host of successful campaigns through the year.
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Launch of Wella
The Cincinnati-based FMCG major, Procter & Gamble launched Wella Kolestint in India, marking its foray into the consumer hair colour market. This aggressive business move has come after P&G bought Wella, the haircare and beauty company.
Jacqueline Fernandez Kolestint Hair Color launch
Matt Cenelli,Marketing Manager, P&G Hair Colour, Asia & Australia
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Matt Cenelli, Marketing Manager, P&G Hair Colour, Asia and Australia, has the responsibility of establishing the retail brand Wella Kolestint in India. Having been a salon brand in the Indian market, it has now been launched as a home colourant brand in the retail segment and will compete with other MNC brands such as L'Oreal, Revlon and Garnier in the mid- and premium-end of the Rs 1,200-crore hair colour market.
In India, Wella Kolestint would sell with its ‘longest lasting colour' proposition and has already roped in endorsers such as actress Jacqueline Fernandes and Dimple Kapadia.
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Steps taken to inform the customer of the needs identified
P&G India launches Wella Kolestint online
P&G India launched its leading hair-colour brand, Wella Kolestint, in the Indian cyberspace. And they entrusted Arc Worldwide, Mumbai with the job of developing the brand website. With an aim to make target audience brand loyalists, the website has well-researched content, tips & videos on hair-colouring.
Entry into the retail trade
P&G decided to enter the retail trade with Wella Kolestint at this point of time as they strive to understand what consumers in each country are looking for. They listen to their hair colour needs and try to address these needs as best they can and try to deliver the benefits of their superior product propositions.
Brand ambassadors to endorse Wella Kolestint
Natasha Naegamvala, the expert celebrity colourist, recommends Wella Kolestint on TV. Their brand ambassadors Dimple Kapadia and Jacqueline Fernandez not only recommend Wella Kolestint but also use it.
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Modern trade as the preferred route to spread awareness about the offering
Wella Kolestint comes from the house of Wella, an international expert in hair colour, which has a legacy in hair colour expertise. So, P&G is confident that they will be successful, especially since the initial results after our October 1 launch are encouraging. Modern trade is important as are high frequency stores to enable better distribution and the best access.
Educate customers is through the stylist
The best way to educate customers is through the stylist. If a stylist is convinced about a product, they recommend it to customers automatically — it is like the relationship between a doctor and a patient. Normal advertisements work for retail brands, but for professional brands this is the best way.
New awareness campaign for stylists
At Wella, the first pillar is education. Their stylists should be confident that they can give their best to their customers. The stylists become the area of focus, and they pass on this education to the customer.
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Extent to which the product purports to satisfy consumer needs
Relaunching of Wella in India
Wella’s integration with P&G has been completed over the last year and now they have a new logo and a new positioning of their products with a more trendy, young and upbeat look keeping in mind the Indian consumers and Indian hair type. This has been happening globally over the last few years and has been completed in India now. This is a fresher, trendier Wella, more focused on the professional business. Wella did this in two ways – one was a very grand introduction for hair stylists, both those who have been working with them and those who have not, with an event in Goa. At the event wella rolled out personalized trends, education, seminars. There were presentations about the new branding. Second, they launched the new trends with an international stylist who gave salon owners a personalized understanding of creating the trendy looks and lots of in-salon training.
Wella in terms of brand awareness in the last ten years
Wella was, and is, a well known brand in India. Before they arrived officially, the products were bought in the gray market. Then the brand came to India, and they had to understand the market, and find the right products for India. Now there is no difference between the international and local markets. Wella has more than 100 colors available here.
Distribution network
The distribution network is the biggest challenge that Wella will face. They have to iron out the difficulties to have this work better over large geographical areas, to have their supplies arrive in time. It’s very important to have good associations with academies so that they can invest more in education and training — they have been doing this, working with Nalini and Yasmin, Jawed Habib, Pivot Point, Bounce academy.
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Why the product will succeed or fail in the marketplace
Positives
The youth – richer and much more aspirational than its previous generations – is rapidly taking over the hair colour market in urban areas, pushing demand for higher-end brands and prompting new players such as Procter & Gamble, to check out the market. This is one product segment where most urban consumers value quality more than cost.
The advantage with P&G is that Wella already has a brand recall and awareness in the market, thanks to the grey market and salons.
Is valued at a price point, which gives value to the consumer (positioned at the premium, available at Rs. 489)
Negatives
The issue with the grey market is, it’s already a cluttered segment and P&G has to think something out of the box.
Has to present an absolutely unique and relevant product to Indian consumers which has an distinctive edge over other brands in the same segment.
In a country where major part of the hair color market is taken by L’Oreal and garnier, Kolestint will face high degree of competition.
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References
1. http://www.wellaindia.in/
2. http://www.wellaindia.in/wellahistory.html
3. http://www.pginnovation.com/
4. http://www.currentnewsindia.com/business/brand-wella-enters-india.html
5. http://profit.ndtv.com/2009/07/18004441/Brand-Wella-enters-India.html
6. http://www.bollyone.com/jacqueline-fernandez-kolestint-hair-color-launch
7. http://economictimes.indiatimes.com/topics.cms?query=wella
8. http://www.campaignindia.in/Article/242005,campaign-india-agency- report-card-2010-leo-burnett.aspx
9. http://www.thehindubusinessline.in/catalyst/2010/12/09/stories/ 2010120950020100.htm
10. http://leoburnett-connect.com/2010/12/04.php
11. http://economictimes.indiatimes.com/features/brand-equity/pg-combining- brand-awareness-with-social-programmes/articleshow/7314752.cms
12. http://economictimes.indiatimes.com/news/news-by-industry/cons- products/fashion-/-cosmetics-/-jewellery/demand-for-high-end-hair-colour-brands-triggers-launches/articleshow/7142536.cms
13. http://economictimes.indiatimes.com/news/news-by-industry/cons- products/fmcg/pg-set-to-enter-indian-hair-colour-market-with-wella/articleshow/6616593.cms
14. http://fmcgindia.blogspot.com/2010_11_01_archive.html
15. http://www.thecoolhunter.net/cloud/view/Ads
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