TERM PAPER

OF
PRODUCT AND BRAND MANAGEMENT
ON
BRAND EXTENTION OPPORTUNITIES AND EXPLORATION
INCLUDING MARKRTING PROGRAM AND ITS EFFECT ON PARENT
BRAND EQUITY OF GARNIERS

SUBMITTED BY
SUBMITTED TO
MOHD ASHAD Mr.
KRISHNA GOPAL
ROLLNO- RT1901B43
REG. NO- 10901750
PROGRAME CODE-: 194

LOVELY PROFESSIONAL
UNIVERSITY’
JALANDHAR “PUNJAB”
 TABLE OF CONTENT

(1) Introduction of Garnier.

(2) Brand extension and brand exploration in Garnier.

(3) Marketing program of Garnier.

(4) Effect on parent brand equity

(5 References
.
(1)Introduction of Garnier
Garnier is a mass market cosmetics brand of L'Oréal that produces hair care and skin care
products. Much like other brands from L'Oréal, it is sold in several markets around the world.

The L'Oréal Group is the world's largest cosmetics and beauty company. With its registered
office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine, France, it has
developed activities in the field of cosmetics. Concentrating on hair colour, skin care, sun
protection, make-up, perfumes and hair care, the company is active in the dermatological and
pharmaceutical fields and is the top nanotechnology patent-holder in the United States. L'Oréal
is a listed company, but the founder's daughter Liliane Bettencourt and the Swiss food company
Nestlé each control over a quarter of the shares and voting rights.

Garnier is a brand that epitomizes smart marketing practice. This is a brand that came to India in
1991 and crafted a special place for itself in the Indian market. This is one global brand which
has understood the dynamics of Indian market. Garnier came to India with its Ultra Duox range
of shampoos. The brand is a mass market brand from Loreal which has a range of global
premium personal care brands like Maybelline, Ralph Lauren., Diesel ,Vichy etc. Loreal started
its operations as a joint venture with MJ Group . Later in 1994, the company started its own
operations. All through these years, Garnier had a very consistent marketing approach. What I
liked about this brand was the kind of investment that it had put in for marketing activities. Of
course all these happened because it had the support of its parent company. Garnier can be
considered as a masstige brand. Although positioned as a premium offering, the brand was wise
enough to price it reasonable. Currently Garnier is targeting the middle and upper socio-
economic class. Globally Loreal is a company that is famous for its product innovation. Garnier
too has built its brand by launching new products on a regular basis. A strategy based on product
innovation works best for a brand like Garnier. When the consumer sees regular new product
flow from the brand, it creates a sense of excitement within the consumer which will prompt her
to stick to this brand. Garnier was the first brand to introduce a cream based hair coloring
solution. Garnier is now present in a diverse range of personal care product categories. It is
present in the hair-care and skin-care segments. The brand have two sub-brands : Garnier Fructis
and Garnier Ultra Doux. Fructis is an interesting sub-brand which has clicked in the Indian
market because of its positioning as a fruit based product. Consumers readily embraced this
variant because it made sense to depend on a natural shampoo rather than chemical based one.
Garnier is positioned as a nature- based ( green) innovative personal care brand which takes care
of your skin. The brand has a very catchy tagline " Take Care ". Garnier's positioning strategy is
more product based in the sense that it has tried to emphasis individual product properties rather
than a common brand image. Most of its commercials are emphasizing on product strengths and
innovation. The brand is an example of the success of rational product based advertising success.
The brand is also sending a message that Indian consumers are also influenced by rational
messages and product innovations rather than mindless emotional blah-blahs. Another
interesting marketing strategy adopted by Garnier is its advertising execution. True to its global
parentage, Garnier was careful in its advertising theme. It uses a blend of foreign and Indian
models and themes for its campaign.Garnier ads can be termed as localized international
advertising which has a global touch but does not appear alien to Indian realities. The brand uses
a careful blend of celebrities and models in their campaigns without relying much on their
individual persona. Their products are always the stars in their campaigns. Recently Garnier
launched another new innovative product in the Indian market - Garnier Shampoo + Oil 2 in 1
shampoo. This is something that Indian consumer has never seen before. And a product which
Indian consumer find little difficult to believe. Shampoo and oil are something that is not
supposed to work together. Infact shampoo is used against oil. Indian consumers are habituated
to using oil regularly and time usually works against using them both. And since these two
products are supposed to work against each other and time factor prevents them from using both,
Garnier has thought of a plan to integrate north-pole and south-pole together. Garnier Oil +
Shampoo is a blend of 3 oils and shampoo. According to press release, the oil will work within
to strengthen the hair and shampoo will clean the hair. This shampoo variant contains three oils –
Olive ,Avocado and Shea oil. Recently , one of my earlier students talked to me about this brand
launch. She and her group had suggest such a product combination during a project presentation
to me as a part of the marketing course three years back. I remember taking the group to a series
of tough questioning ( in other words -blasting) about the acceptance of such a product in the
Indian market. She was delighted that such an idea being implemented in the real marketing
world. My primary doubt is whether the brand be able to convince the customer that shampoo
and oil can go together ? Here the brand is trying to redefine a negative relationship between two
attributes and trying to convince the customers that there is a scope for these two working
together positively. According to Prof Kevin lane Keller, this strategy is difficult but once
established , it can be a powerful differentiator. What the brand has to do is to develop a credible
story that consumers can agree ( source : Strategic Brand Management by Keller)
Watch the commercial here Garnier oil shampoo Whether these innovations fail or succeed,
Garnier gains much equity through these steady stream of product launches. The premium
positioning , smart pricing, heavy investment in brand promotion, innovative products and
strong distribution reach has enabled this brand to create a special place in the Indian personal
care industry. A lesson for aspiring brands.

(2) Brand extension and brand exploration.

Brand extension or brand stretching is a marketing strategy in which a firm marketing a

product with a well-developed image uses the same brand name in a different product category.

The new product is called a spin-off. Organizations use this strategy to increase and leverage

brand equity (definition: the net worth and long-term sustainability just from the renowned

name). An example of a brand extension is Jello-gelatin creating Jello pudding pops. It increases

awareness of the brand name and increases profitability from offerings in more than one product

category.A brand's "extendibility" depends on how strong consumer's associations are to the

brand's values and goals. Ralph Lauren's Polo brand successfully extended from clothing to

home furnishings such as bedding and towels. Both clothing and bedding are made of linen and
fulfill a similar consumer function of comfort and hominess. Arm & Hammer leveraged its brand

equity from basic baking soda into the oral care and laundry care categories. By emphasizing its

key attributes, the cleaning and deodorizing properties of its core product, Arm & Hammer was

able to leverage those attributes into new categories with success. Another example is Virgin

Group, which was initially a record label that has extended its brand successfully many times;

from transportation (aeroplanes, trains) to games stores and video stores such a Virgin

Megastores. In the 1990s, 81% of new products used brand extension to introduce new brands

and to create sales. Launching a new product, is not only time consuming but also needs a big

budget to create awareness and to promote a product's benefits. Brand extension is one of the

new product development strategies which can reduce financial risk by using the parent brand

name to enhance consumers' perception due to the core brand equity. While there can be

significant benefits in brand extension strategies, there can also be significant risks, resulting in a

diluted or severely damaged brand image. Poor choices for brand extension may dilute and

deteriorate the core brand and damage the brand equity. Most of the literature focuses on the

consumer evaluation and positive impact on parent brand. In practical cases, the failures of brand

extension are at higher rate than the successes. Some studies show that negative impact may

dilute brand image and equity. In spite of the positive impact of brand extension, negative

association and wrong communication strategy do harm to the parent brand even brand family.

Brand extension in Garnier

Garnier Goes Beyond Shampoos

A lot of activities are happening for Garnier brand in the Indian market. From a brand focused
on shampoo, Garnier has moved into personal care category with a range of products from
fairness creams to deodorants. Garnier earlier had moved to a broader personal care market with
a wide range of personal care products for women. Later the brand broke into men's personal
care with the launch of Garnier men's fairness creams endorsed by Bollywood hunk John
Abraham.The brand also launched Garnier range of deodorants endorsed by the same celebrity.
Now, Garnier is all set to cover the entire shampoo market with the launch of Garnier Kids
Shampoo in the Indian market. It is interesting to see how this brand is slowly covering the
entire Indian personal care market. The brand is adopting a segment by segment targeting
strategy. It consolidated its position in shampoo then moved into men's personal care and now
into kid's hair care market. The launch of Garnier Fructis kid's shampoo is expected to revive the
kid's personal care category in India. The kid's hair care market is dominated by HUL's Clinic
Plus brand and the other players being Parachute Starz. But recently the activities in this
category has been minimal. The entry of Garnier into the kid's segment may have been to catch
them young.The new generation kids have a mind of their own and they are brand conscious. So
tapping them with a variant makes sense. Moreover mothers feel that young hair /skin needs
special care and adults products may be too strong for the kids. Garnier's brand strategy of slow
systematic growth has been reaping rich rewards. The brand has gained consumer acceptance
and retail support across various markets in India. The brand is careful in using the same
imagery across various categories. The brand uses a mix of foreign and Indian models for its
campaigns and is never fixated on depending on a celebrity face to push the product. The brand
although started as a shampoo brand has flexibility to move into various categories. The core
brand values of " Green " and the tagline " Take Care " can be used across multiple categories
without any dilution to the core brand positioning.
Garnier is wise enough to make maximum advantage of those attributes.

(3)Marketing planning

Executive summary
Garnier plans to foray into the men cosmetic segment as if has huge untapped potential. The
launch of the “Garnier man” range is a measure in this direction with the first product line as
Garnier power light. Garnier power light aims at targeting the “faimess cream for men” segment
by launching three products, India has been launching ground for the product which shall later
be expanded into the other countries. Thus a large onus for the success of the Garnier men range
falls on the performance and acceptance of the product in India.
The company has clearly defined objective which is intend to meet. It aims at establishing a
strong foothold in the fairness for men market while being on a constant lookout for the new
untapped market. It want to intensify company’s effort to develop products that women and men
need and want for skin care. And also, the company aims at producing drive for increased
margin through better product and necessary awareness.
The reason for our analyzing this trrm paper line in the fact that Garnier power light, being in
the nascent stage, offer a wide scope for analysis and strategy formulation. The success of this
product will rely beavily on the socio-cultural norms and the consumer behavior for the kind of
the product so, while analyzing the existing environmental factors, the work aims at addressing
these two core issue.
The deodorant market is set to see more competition. Consider this: After CavinKare, more deo
brands have been lined up by L’Oreal and Spencer’s, while Future Group has already rolled out
its deodorant range for men under its private label, John Miller. L’Oreal is slated to launch
deodorants under the Garnier brand within a week. Spencer’s, however, has not yet finalised the
name but will launch its own deodorant within two months. L’Oreal India Chief Operating
Officer Dinesh Dayal confirmed the development but did not provide details. This will be
L’Oreal’s first foray into the deodorant market, the size of which is pegged at Rs 700-800 crore
and is growing at 30 per cent. There are huge gaps in this segment in terms of price-points,
which the new brands are looking to fill. For instance, Future’s John Miller is priced at Rs 99 —
a tad below the market average of Rs 120-150. Spencer’s proposed product is likely to be priced
at the same rate too. But L’Oreal’s Garnier will probably be in the premium range of Rs 150 or
more. Technopak Associate Vice-President Purnendu Kumar believes the category will be
expanded by the entry of these players, especially by the two retailers. His reason being that
John Miller (apparel) consumers will not mind picking up a deodorant of the same brand to go
with the mood of their dressing. Pantaloon Retail India Head (Private Labels – Food and FMCG)
Devendra Chawla agrees with Kumar. “The popularity of the John Miller apparel brand will help
us leverage the deodorant brand. We have designed the variants to go with the apparel style,” he
said. The company has launched three variants — PowerPlay, Flirt and DarkNight. It plans to
develop a complete men’s toiletry range under John Miller. It is likely that Spencer’s will also
launch its deodorant under one of its existing popular apparel brands. On the other hand, L’Oreal
will leverage the brand equity of its Garnier range of men’s cream for its deodorant. Existing
players, like Godrej Consumer Products Ltd (GCPL), believe the new companies will only
benefit them. GCPL Managing Director Dalip Sehgal said: “Since the deodorant is a low-
penetrated category, more players will only help the market grow. This, in return, will benefit
existing players.” However, existing companies would have to focus more on innovation and
activation to remain in the market, he said. GCPL sells the Cinthol range of deodorants.
CavinKare launched its Hi 5 range a month ago. It already has other deodorants like Spinz,
Adidas and Jovan.
Situation analysis

Category factors
Environmental factor
POLITICAL:
The capital market of India is very vulnerable. India has been politically instable in the past but
it is a little politically stable now-a-days.the political instability of the country has a very strong
impact on the capital market. The share market of India changes as the political changes took
place. The BSE Index, SENSEX goes up and down with any kind of small and big political
news, like, if there is news that a particular political party has withdrawn its support from the
ruling party, and then the capital market will go down with a bang. The capital market of India is
too weak and is based on speculations. The political stability of the country is very important for
the stability and growth of capital market in India. The political imbalance or balance of the
country is the major factor in deciding the capital market of India. The political factors include:

• employment laws
• tax policy
• trade restrictions and tariffs
• political stability

ECONOMICAL:

The economical measures taken by the government of India has a very strong relationship with
the capital market. Whenever the annual budget is announced the capital market goes up and
down with the economical policies of the government .If the policies are supportive to the
companies then the capital market takes it positively and if there is any other policy that is not
supportive and it is not welcomed then the capital market goes down. Like, in the case of
allocation of 3-G spectrum, those companies that got the license for 3-G, they witnessed sharp
growth in their share values so the economic policies play a major part in the growth and decline
of the capital market and again if there is relaxation on any kind of taxes on items of automobile
industry then the share of automobile sector goes up and virtually strengthen the capital
market .The economical factors include:

• inflation rate
• economic growth
• exchange rates
• interest rates

SOCIAL:

India is a country of unity in diversity .India is socially rich but the capital market is not very
attached with the social factors .Yes, there is some relation between the social factors with the
capital market. If there is any big social factor then to some extent it affects the capital market
but small social factors don’t impact at all. Like, there was opposition of reliance fresh in many
cities and many stores were closed. The share prices of the reliance fresh went down but the
impact was on and individual firm there was not much impact on the capital market on a whole
the social factors have not much of impact on the capital market in India. The social factors
include:

• emphasis on safety
• career attitudes
 • population growth rate
• age distribution
• health consciousness

TECHNOLOGICAL:

The technological factors have not that much effect on the capital market. India is technological
backward country. Same as social factors, technological factor can have an effect on an
individual form but it cannot have a big impact on a whole of capital market. The Bajaj got a
patent on its dts-i technology, and launched it in its new bike but it does not effect on capital
market. The technological change in India is always on a lower basis and it doesn’t effect on
country as a whole. The technological factors include:

• R&D activity
• technology incentives
• rate of technological change
• automation

ENVIORNMENTAL FACTORS:

Initially The environmental factors don’t play a vital role in the capital market. But the time has
changed and people are more eco-friendly. This is really bothering them that if any firm or
industry is environment friendly or not. An increasing number of people, investors, corporate
executives are paying importance to these facts, the capital markets still see the environment as a
liability. They belie that it is of no use for their strategy. The environmental performance is even
under-valued by the markets.

LEGAL FACTORS:

Legal factors play an important role in the development and sustain the capital market. Legal
issues relating to any industry or firm decides the fate of the capital market. If the govt. of India
or the parliament introduces a new law that can affect the running of the industry then the
industry will be demotivated and this demonization will lead to the demonization of the investors
and will result in the fall of capital market. Like after the Hardhat Mehta scam, new rules and
regulations were introduced like PAN card was made necessary for trading, if any investor was
investing too much money in a small firm, then the investors were questioned,etc. These
regulations were meant to maintain transparency in the capital market, but at that time,
investment was discouraged. Legal factors are necessary for the improvement and stability of the
capital market.

Company and competitor analysis

Garnier faces competition from various competitors as mentioned below
1 Other fairness cream companies

2 Skin clinics

3 Ayurvedic products

4 Homemade solutions (face packs)

The other fairness creams which are present in the are as under

1 Fair and Handsome-Emami

2 Nieva for men

3 Fair Ever-Hindustan Lever Limited’s (HLL)

4 Fair one-Shahnaaz Hussain (Elder Healthcare Ltd)

5 Kaya skin clinic

6 Products by international brands like Clarins and Shiseido.

7 Fair and Lovely Menz Active – (HLL)

8Himalya Ayurvedic Fairness Cream

Emami and HUL which are leader in the market.

Customer analysis
All cosmetic user are the customer of Garnier, Garnier made its product for male and female and
they buy it from all palace their its product is available like shopping mall, big bazaar store,
confectionary shop etc and they use at the base it need like in summer and winter base product.

Objective
Corporate objective

To protect and improve Garnier’s position among top brands in Hair care and skin care.
Intensify company’s effort to develop products that women and men need and want for skincare.

Explore market for products specifically designed for fairness moisturizer.

Provide platform for company’s international market for men range in skin care.

Top produce drive for increased margin through better products and necessary.

Divisional objectives

Garnier power light Men’s range is a new entrant in the market of Men’s Fairness cream in
India. Few objectives that the company has for this range are

The first objective of Garnier for this range is to develop a strong foothold in the existing
customer base of Men’s Fairness cream market.

Garnier is also targeting its existing male customer base of Hair Care products.

Mostly, women buy such products for their male counterparts. Garnier would target its loyal
women product consumers to promote the men’s range.

The company is also on a lookout for the untapped potential market in India.

Marketing objectives

1 Volume and profit

2 Time frame

3 Customer retention

4 Intermediary retention
SWOT ANALYSIS
Product and brand strategy
Garnier is a brand that epitomizes smart marketing practice. This is a brand that came to India in
1991 and crafted a special place for itself in the Indian market. This is one global brand which
has understood the dynamics of Indian market. Garnier came to India with its Ultra Duox range
of shampoos. The brand is a mass market brand from Loreal which has a range of global
premium personal care brands like Maybelline, Ralph Lauren., Diesel ,Vichy etc. Loreal started
its operations as a joint venture with MJ Group . Later in 1994, the company started its own
operations. All through these years, Garnier had a very consistent marketing approach. What I
liked about this brand was the kind of investment that it had put in for marketing activities. Of
course all these happened because it had the support of its parent company. Garnier can be
considered as a masstige brand. Although positioned as a premium offering, the brand was wise
enough to price it reasonable. Currently Garnier is targeting the middle and upper socio-
economic class. Globally Loreal is a company that is famous for its product innovation. Garnier
too has built its brand by launching new products on a regular basis. A strategy based on product
innovation works best for a brand like Garnier. When the consumer sees regular new product
flow from the brand, it creates a sense of excitement within the consumer which will prompt her
to stick to this brand. Garnier was the first brand to introduce a cream based hair coloring
solution. Garnier is now present in a diverse range of personal care product categories. It is
present in the hair-care and skin-care segments. The brand have two sub-brands : Garnier Fructis
and Garnier Ultra Doux. Fructis is an interesting sub-brand which has clicked in the Indian
market because of its positioning as a fruit based product. Consumers readily embraced this
variant because it made sense to depend on a natural shampoo rather than chemical based one.
Garnier is positioned as a nature- based ( green) innovative personal care brand which takes care
of your skin. The brand has a very catchy tagline " Take Care ". Garnier's positioning strategy is
more product based in the sense that it has tried to emphasis individual product properties rather
than a common brand image. Most of its commercials are emphasizing on product strengths and
innovation. The brand is an example of the success of rational product based advertising success.
The brand is also sending a message that Indian consumers are also influenced by rational
messages and product innovations rather than mindless emotional blah-blahs. Another
interesting marketing strategy adopted by Garnier is its advertising execution. True to its global
parentage, Garnier was careful in its advertising theme. It uses a blend of foreign and Indian
models and themes for its campaign.Garnier ads can be termed as localized international
advertising which has a global touch but does not appear alien to Indian realities. The brand uses
a careful blend of celebrities and models in their campaigns without relying much on their
individual persona. Their products are always the stars in their campaigns. Recently Garnier
launched another new innovative product in the Indian market - Garnier Shampoo + Oil 2 in 1
shampoo. This is something that Indian consumer has never seen before. And a product which
Indian consumer find little difficult to believe. Shampoo and oil are something that is not
supposed to work together. Infact shampoo is used against oil. Indian consumers are habituated
to using oil regularly and time usually works against using them both. And since these two
products are supposed to work against each other and time factor prevents them from using both,
Garnier has thought of a plan to integrate north-pole and south-pole together. Garnier Oil +
Shampoo is a blend of 3 oils and shampoo. According to press release, the oil will work within
to strengthen the hair and shampoo will clean the hair. This shampoo variant contains three oils –
Olive ,Avocado and Shea oil. Recently , one of my earlier students talked to me about this brand
launch. She and her group had suggest such a product combination during a project presentation
to me as a part of the marketing course three years back. I remember taking the group to a series
of tough questioning ( in other words -blasting) about the acceptance of such a product in the
Indian market. She was delighted that such an idea being implemented in the real marketing
world. My primary doubt is whether the brand be able to convince the customer that shampoo
and oil can go together ? Here the brand is trying to redefine a negative relationship between two
attributes and trying to convince the customers that there is a scope for these two working
together positively. According to Prof Kevin lane Keller, this strategy is difficult but once
established , it can be a powerful differentiator. What the brand has to do is to develop a credible
story that consumers can agree ( source : Strategic Brand Management by Keller)
Watch the commercial here Garnier oil shampoo Whether these innovations fail or succeed,
Garnier gains much equity through these steady stream of product launches. The premium
positioning , smart pricing, heavy investment in brand promotion, innovative products and
strong distribution reach has enabled this brand to create a special place in the Indian personal
care industry. A lesson for aspiring brands.
 Supporting marketing program
Garnier has been very active and upfront in adopting new promotional techniques to market its
products. The company follows a very popular technique to advertise and market its products
that is the Viral Marketing policy. Viral marketing is a term coined to define the productive ways
a marketing message is made available. And corporate are using the medium to circulate brands
and brand messages. The idea has caught on like a virus, as efficiently as Information
Technology has entered households and businesses.

Firms are now structuring their businesses in a way that allows them to grow like a virus and
lock out the existing brick and mortar competitors through innovative pricing and exploitation of
competitors’ distribution channels. The beauty of this marketing technique is that none of it
requires any marketing. Customers, who have caught the virus, do the selling. Viral marketing
describes any strategy that encourages individuals to pass on a marketing message to others,
creating the potential for exponential growth in the message’s exposure and influence. Like
viruses, such strategies take advantage of rapid multiplication to explode the message to
thousands, to millions.

Off the Internet, viral marketing has been referred to as “word-of-mouth”, “creating a buzz”,
“leveraging the media” and even “network marketing.” It’s a deceptively simple concept: Create
a message, send it via e-mail, and make it so compelling that recipients want to pass it on to
everyone in their address book. Advertisers are hot on the tactic, and the idea of putting
consumers to work spreading the word about a brand or service seems sound.

What is unique about the concept is that where brands or brand ideas are exchanged within
communities, they are idea-led, not advertising-led. There are some high-profile viral success
stories. Like Hotmail. By simply sending an e-mail, consumers hawked the service because
every message contained a Hotmail ad that helped it grow to 12 million accounts in its first year,
way back in 1996. The 1999-hit film ‘The Blair Witch Project’ also benefited from a similar
contagion. On web sites and in chat rooms, the film’s promoters hinted that the fictional tale was
really a documentary and let the bug run wild. In most cases, the consumers were bitten.
When Garnier launched its Fructis shampoo, they latched on to the idea. The firm had to
introduce the aspect of five times stronger hair and the firm had a braid competition whereby
consumers could register on a site and create a knot on the Fructis brand, as part of their entry
into the contest. The knot creation was actually created (visually presented on the site) and as a
next step, consumers were expected to invite their friends to visit the braid and add to their score.
A record 76,000 consumers created their own knot on the braid and forwarded the link to more
than 82,000 of their friends, a survey report indicated. Viral marketers practice delayed
gratification. They may not profit today, or tomorrow, but if they can generate a groundswell of
interest from something free, they know they will profit soon and for the rest of their lives. Since
‘Free’ happens to be the most powerful word in a marketer’s vocabulary, most viral marketing
programmes have attached themselves to it. The idea is to give away valuable products or
services to attract attention. And, more importantly, someone else’s resources are depleted rather
than our own. Garnier has positioned itself as a lifestyle product mainly targeting teenagers and
young girls. This is very evident from Garnier ads be it for Garnier fructis shampoos or for hair
color. In a recent advertisement of Garnier hair color, a daughter advises her mother to try the
product and thus makes an attempt to promote product among middle-aged women. Hence,
expanding the base of the target segment gives a whole new market to marketers, provided they
are successful in convincing the customers of the second-rung segment.

Companies need to be very strategic in presenting the product and its features to attract another
segment. At the same time, companies need to be sensitive about the impact of targeting other
segments on the existing target segment. It may be damaging, especially, if in a process of
expanding its customer base, a premier brand is targeted at the aspiring middle-class also. In case
of any signals of lowering demand with the existing target group, companies should adopt line
extensions by bringing suitable changes in the products.

Advertising and marketing specialists are aiming at young, urban Indian women, who are
earning their own money and are potential customers for a host of products, including
name-brand clothes, cosmetics and new cars.

Increasing its ad spend for the launch of its new products, L’Oreal has been relying more on its
international campaigns to make an impact in the Indian market. McCann Erickson in Mumbai
handles the L’Oreal and Maybelline account while Publicis India is in charge of Garnier. “The
ad accounts have been aligned according to our international affiliations with these agencies and
we try to have a mix of both the Indian and international ads,” says Mr. Rajgopal.

L’Oreal India currently has three brands in its consumer products portfolio and there are product
overlaps between its hair care, skin care and color cosmetics brands. Garnier, L’Oreal and
Maybelline have been defined by their price segments and positioning.
(4)Effect on parent brand equity
Let me try to dabble with a little philosophy and branding. Branding is all about building beliefs
in the mind of the consumers. Brand is a belief . When a consumer buys a brand, what he is
essentially buying is a belief. Belief is a thought repeated often with emotion. When you repeat a
thought with lot of emotions, it becomes a belief. In medical terms, these repeated thoughts
create neural pathways which later drives the person to a particular action based on that pathway.
So when a marketer wants to build a brand, there are three essential requirements that will ensure
success.
1. Create a powerful thought
2. Back the thought with emotion
3.Make the consumer repeat that thought with emotion
First requirement is to create a thought in the mind of the consumer. The starting point of
successful branding is to create a valid powerful thought . In branding terms , we call it brand
mantra or brand essence. Not every thought will create beliefs. The thought needs to be
powerful, relevant and different. Either the thought needs to be powerful or the way the brand
thought is expressed should be in a powerful manner.
The second requirement to create beliefs is to add emotion to the brand thought. When the
marketers are able to connect their brand thoughts with powerful emotions, then the neural
pathways becomes powerful enough to create actions.
The difficult part though is the third requirement - to make consumers repeat the brand thought
with emotions. The more the thought is repeated, the more the brand gains its place in the mind
of the consumers.
Iconic brands evoke powerful emotions and thoughts in the consumers. Once that belief is
created, it will be difficult for the consumer and the competitors to change those beliefs.
Garnier's brand strategy of slow systematic growth has been reaping rich rewards. The brand has
gained consumer acceptance and retail support across various markets in India.The brand is
careful in using the same imagery across various categories. The brand uses a mix of foreign and
Indian models for its campaigns and is never fixated on depending on a celebrity face to push the
product. The brand although started as a shampoo brand has flexibility to move into various
categories. The core brand values of " Green " and the tagline " Take Care " can be used across
multiple categories without any dilution to the core brand positioning.
Garnier is wise enough to make maximum advantage of those attributes.
(5) Reference

http://en.wikipedia.org/wiki/Brand_extension
http://www.campaignindia.in/Article/228540,primesite-creates-new-outdoor-
campaign-for-garnier.aspx
http://marketingpractice.blogspot.com/2010/10/brand-update-garnier-goes-
beyond.html
http://www.scribd.com/doc/21754135/Garnier-Men-Powerlite-Range
http://marketingpractice.blogspot.com/2010/01/garnier-take-care.html
http://en.wikipedia.org/wiki/L%27Or%C3%A9al
http://thehoppeadvantage.com/docs/L%27Oreal-Final.pdf
http://www.projectfever.com/index.php?
main_page=product_info&cPath=2&products_id=71
http://www.slideshare.net/daniellewedge/marketing-strategy-loreal
http://ieeexplore.ieee.org/Xplore/login.jsp?url=http%3A%2F
%2Fieeexplore.ieee.org%2Fiel5%2F4443225%2F4443226%2F04443554.pdf
%3Farnumber%3D4443554&authDecision=-203
http://www.slideshare.net/nagpai/brand-management-lecture7
http://www.docstoc.com/docs/620568/The-new-strategic-Brand
http://www.slideshare.net/siddhantjain/brand-equity-of-parent-brand-helps-new-
product-within-the-same-umbrella