The presentation details the penetration that HUL can follow to penetrate the Indian market for TIGI products.

1. For the Hairdressers, By the Hairdressers
Team Iguanas (IIM Ranchi)
Pulkit Bohra (pulkit.bohra12@iimranchi.ac.in)
Pulkit Mathur (pulkit.mathur12@iimranchi.ac.in)
Tarun Gupta (tarun.gupta12@iimranchi.ac.in)
TIGI
Professionals

2. [8]
Establishing TIGI as a premium, international quirky and
cool brand.
Keeping Hair stylists excited and engaged with TIGI
Converting the challenge of limited target market into
an opportunity
Create buzz/talk around the brand going beyond traditional
media
Strategy
for
TIGI
Case Study Objectives
1
2
3
4

3. Executive Summary
Objective 3 Objective 4Objective 1 Objective 2
To establish TIGI as a premium,
quirky and cool brand
Placement: Difficult for salon
chains with high number of
outlets to adopt a new product
Placement: Target high end
salons with limited number of
outlets; Avoid retail
stores/supermarkets.
Salons are the key engagers in a
Professional product’s life cycle
managing product sales to
product feedback to R&D team.
They suggest a product only once
they are satisfied with the
product and comfortable with
the usage. Rest is taken care by
margins & incentives
Hair Stylist Student: Invest in
associations with hair care
training academies. Offer
franchisee for vocational
training centres.
Few existing players in the high
growth market signal ample
opportunities.
Capture the latent demand for
premium products in the
segment by targeted
promotions at high end clubs,
and associations with resorts
and events like Sun Burn
To create a buzz around the
town
Strategic
objectives
Insights
Recommend-
ations
To keep the hairstylists excited
and engaged
To tackle the challenge of Styling
as a small category
Promotions: Easy acceptance of
foreign brands; Sampling works
best when customer is encour-
aged to visit salons to use them
Styling market limited to Men
and with only mass market
products
Traditional media is costly and
doesn’t work best for TIGI
Communication strategy is the
key, should be engagement
centric than just FYI
High growth ~ CAGR of 21%
during 2007-12
Promotions: Bed Head – Hair
styling workshops in colleges;
Kiosks in high end malls and
happening pubs in the metros.
S-Factor – Sampling of products
with magazines & in 5-star hotels
Hair Stylist: Direct-to-Stylist
incentive system and an annual
TIGI Style Stars meet for top 30
stylists
Target focused social media
marketing with interactive
YouTube channels and
Facebook groups
Communicate with users at
three levels – Emotional,
Technical and Engagement
Pricing: High enough to maintain
the Luxury exclusivity, but low
enough that can be sold down
Lack of knowledge on correct
usage and implications
Pricing: Bed Head – INR 500-1100
S-Factor – upwards of INR 1400
Salon Owners: Offer central
software POS system, free
samples, look books and
furniture for salon
Innovative campaigning
• Hair Pageants
• User based sampling
Executive
Summary
Research
methodology
Industry
Analysis
Objective
Recomme-
ndations

4. Information
Collection
Research Methodology
Secondary Research
 Leveraged access to 10+ databases with IIM Ranchi Library
 Studied research reports, company annual reports, analyst reports
 Drawn inferences from published articles in the media
Primary Research
 Field visits to premium salons in Ranchi, Hyderabad and New Delhi
 Telephonic interviews with Salon owners in Bangalore (YLG) & Chandigarh (Headmasters)
 Online and Offline survey conducted with 106 respondents
Analyzed data gathered to determine the
following:
 Market Dynamics
 Drivers and Restraints in the Market
 Critical Success Factors
Future Projections
 Growth Trends from the industry reports
 Stakeholder Views
Quality Check &
Information
Analysis
 Four objectives analysed in detail
 Recommendations given based on the analysis done in the initial sections
Case Objectives &
Recommendations
Executive
Summary
Research
methodology
Industry
Analysis
Objective
Recomme-
ndations

5. Industry Analysis: Trends, Issues, Drivers & Constraints
Market
• In 2012, Hair Care increased by 18% to reach INR 116 billion
• Growth observed in consumers’ willingness to spend more and
experiment with salon hair care products at home
• Fastest growth observed in the colorants category
0
50000
100000
150000
200000
2007 2012 2017E
Haircaresalesbycategory
(INRmillion)
Colourants Conditioners
Salon Hair Care Shampoos
Styling Agents
Hair care market in India is growing fast TIGI’s target market should be the top 8 metros
5%
7%
7%
8%
9%
12%
25%
27%
Ahemdabad
Pune
Hyderabad
Chennai
Bangalore
Kolkata
Mumbai
Delhi NCR
Salon hair and skin products sale, 2011
(~INR 3500 million)
Executive
Summary
Research
methodology
Industry
Analysis
Objective
Recomme-
ndations

6. L’Oreal Matrix
Schwarz-
kopf
Wella
Product
Range
Brand
Awareness
Outlet
Penetration
Perceived as
Youth Brand
Value for
Money
TIGI: Competitor Analysis
47 41 42
73 67
53
46
67
11 18 21
9
8
13
15
16 18
21
9
8 20
8
3326 18
16 9
17 13
23
6 8
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Others
Garnier
Wella
Schwarzkopf
Matrix
L'Oreal
Current Market Share of Leading Players in
Top 8 Metros
• Professional products market is highly consolidated
with 3 major players – L’Oreal, Schwarzkopf and Wella.
• L’Oreal has the best reach in the market with products
in Luxury (Kerastase), Premium (Professional) and
Affordable (Matrix) range.
None of the current brands is perceived as a Youth Brand.
This gap can be utilized by TIGI Bed Head
Wella and Schwarzkopf do not have an extensive range.
Their share is easy to target for S-Factor.
Executive
Summary
Research
methodology
Industry
Analysis
Objective
Recomme-
ndations

7. Understanding our Customer: Bed Head & S-Factor
Bed Head S-Factor
Smart
Rebellious
Individualistic
Sceptical Age: 18-25 Years
Gender: Male/Female
Re-bonding, Smoothing treatments is the most prominent
time for transition from normal to professional products
Age: 30-45 Years
Gender: Female
Brand
Conscious
Beauty as
a means
to achieve
control
Enjoy
superiority
Fear of
Ageing
Love to
avail
discounts
They listen to their hair stylists for guidance on hair
care. Motivated when their brands feature in top
magazines.
Executive
Summary
Research
methodology
Industry
Analysis
Objective
Recomme-
ndations

8. Establishing TIGI as a premium, international quirky and cool
brand.
Keeping Hair stylists excited and engaged with TIGI
Converting the challenge of limited target market into an
opportunity
Create buzz/talk around the brand going beyond traditional
media
Strategy
for
TIGI
Case Study Objectives
1

9. Recommendation 1
Basis analysis of our target customers, primary research & competitors marketing/branding
techniques below mentioned are the principles specifically applicable for TIGI:
YLG (You Look Good) is a high end Salon
& SPA chain with more than 40 outlets.
Rahul says that it is tough for a brand like
his, which have to maintain consistency
over all the outlets to shift to a new brand,
since the stylists in his salons trust the
existing brand in use and know in & out
of it.
*Salon’s Average billing = Rs 1000/Client/visit
A k Senthil
COO, YLG Salons & SPA
• Hence initially the placement for TIGI
products should be in high-end Salons in
Metros which have a single or limited number
of outlets and draws premium customers.
• Premium Salons also have a tendency to
stock brands which are not available in retail
market. Hence TIGI should not focus on
retail as a channel to reach customers.
Placement of Products
Executive
Summary
Research
methodology
Industry
Analysis
Objective
1
Recomme-
ndation

10. Recommendation 2
The market for female styling products in India is minimal, because Indian women
keep hair long making styling difficult. Moreover females want to use products
which make their hair look good and offers longevity at the same time. We have
also noticed an easy acceptance of products by foreign brands.
*Salon’s Average billing = Rs 2000/Client/visit
Archana Patel
Owner, Ashton Pierra Salon
Hyderabad
“Sampling works best when the customer is encouraged to visit the brands nearest salon and use their sample under the guidance of
experts, resulting in customer turnout ratio of greater than 10% of the samples given.” – CEO, YouLookGood Salon & SPA
• Hair styling workshops in colleges like NIFT,
NID etc giving tips on hair care, followed by a
demo of product use.
• Quick makeover kiosks in Malls, Multiplexes
established with a motive to give our target
customer(18-25) a feel of the product,
followed by a likely sale.
Promotions
Bed Head S-factor
• Sampling of products along with magazines
like Cosmopolitan, Femina etc.
• Tie-up with luxury hotels to make TIGI
products available to use in rooms and have
an outlet/Small Kiosk in the hotel as well.
(Usage increases propensity to buy.
Executive
Summary
Research
methodology
Industry
Analysis
Objective
1
Recomme-
ndation

11. Brands in India have to be really careful
while pricing their products for salon
segment, in India services are priced 5-10
times the product price as compared to 3-
6 times as per international standards,
making it challenging for the brand to strike
the perfect acceptable price band.
*Salon’s Average billing = Rs 2000/Client/visit
Rajveer Kaur
Marketing Manager
Tony & Guy, Hyderabad
Recommendation 3
Shampoo prices by Brand (est. for 250 mL)
0
200
400
600
800
1000
1200
1400
1600
Price Gap Optimum
for Bed Head
Optimum for
S-Factor
Vacant Premium Price Zone
PricesinRupees
Product Pricing
Two Different Vacant Premium Price Zones are
identified in Indian Market:
• for S-Factor: >INR 1400 (250 ml pack size)
• for Bed Head: INR 500-1100 range (for 250 ml)
Executive
Summary
Research
methodology
Industry
Analysis
Objective
1
Recomme-
ndation

12. Establishing TIGI as a premium, international quirky and cool
brand.
Keeping Hair stylists excited and engaged with TIGI
Converting the challenge of limited target market into an
opportunity
Create buzz/talk around the brand going beyond traditional
media
Strategy
for
TIGI
Case Study Objectives
2

13. Understanding the role
Why is a Salon/Stylist Important in Professional Products Segment
Key Takeaways
Salons are the key
engagers in this
Professional Product’s
Life cycle.
Salons manage:
• Product Sales
• Sales Collection
• End Customer
• Product Feedback to
R&D Team
Two Key Person in Salon
are:
• Salon Owner
• Stylist
Need to Incentivize both
separately
R&D
Key Function Key Function Key Functions
Manufacturing
Marketing Sales
Training
Distributors
Product
Company
Salons
Product SalesProduct Sales
Sales ReceiptsSales Receipts
End
Customer
Services &
Retail Sales
Product Feedback
Sales
Training
Receivables
Management
Logistics
Product Use As
part of Service
(Consumption)
Sources: Indian Salon Hair & Skin Products Industry Report- Reevolv
Executive
Summary
Research
methodology
Industry
Analysis
Objective
2
Recomme-
ndation

14. Keeping Hairstylists Excited & Engaged
Targeting loyalty from the start of owner-stylist’s professional lifecycle through early exposure with the brand and
later with an innovative incentive system
Invest In Setting Up College
Salon Labs
• Target Institutes: NIFT, LTA
School of Beauty, etc.
• Benefit:
Comfort & early exposure to
TIGI Professional brand.
These are the future salon
owners who would buy TIGI
franchise
Offer franchise of vocational
training in Hair Care
Benefits:
• Early exposure to TIGI
Brand for hair stylists.
• Development of Loyalty
& early adoption of
brand by stylists.
Incentivise The Salon Owner
• Margin Sharing Incentive
System
• Provide Owners a central
software POS system for
salons to ease their
setup/operations
• Provide ipad software to
salons to show customers
their expected hair style
with TIGI process.
• Provide salons with look
books of TIGI products.
Innovative direct-to-stylist
incentive system to record
TIGI sales made by each
stylist & to remunerate
them accordingly.
Organize a Grand TIGI Style
Stars Meet at Goa for top 30
Hair Stylist associated with
TIGI.
Benefits:
• Motivate the hair stylist to
sell more TIGI products.
• Identify low performing
stylists & aid them with
product training.
Hair Stylist - Professional Salon OwnerHair Stylist - Student
Diploma Vocational Course
Engage Stylists right from start Incentivize current stylists to boost sales
Incentivize Owner
to buy franchise
Executive
Summary
Research
methodology
Industry
Analysis
Objective
2
Recomme-
ndation

15. [8]
Establishing TIGI as a premium, international quirky and cool
brand.
Keeping Hair stylists excited and engaged with TIGI
Converting the challenge of limited target market into an
opportunity
Create buzz/talk around the brand going beyond traditional
media
Strategy
for
TIGI
Case Study Objectives
3

16. Opportunity Transcends Challenge
TIGI can be a “Big fish in small pond”: First mover advantage in the premium styling product segment by targeted
marketing at high end clubs, events like Sunburn and educating men for usage and implications of styling products
Styling
Market,
8.00%
Others,
92.00%
1.70%
1.90% 2.00% 2.00%
2.14% 2.14%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2007 2008 2009 2010 2011 2012
Styling Agents as a % of Hair Care Market
Leading Product
Price
(in INR)
Pack Size
(in gm)
Brylcream 60 60
Set Wet 85 100
Parachute After
Shower
160 75
Gatsby 72 100
Park Avenue 95 100
• The hair care market has grown
with a CAGR of 15.7% (2007-
12)
• The Styling market has grown
at a CAGR of 21%
So with increasing market pie of
Styling Market, and very few
existing players, opportunities
are abound for TIGI
• Currently styling products are
mass market products.
• Identified a latent demand for
a premium styling product.
TIGI can use directed & niche
marketing at high end clubs, tie-
ups with resorts, association
with events like SunBurn, etc. to
capture this latent market.
Some foreign brands
(minimal availability)
Price
(in INR)
Pack Size
(in gm)
Tony & Guy - Mist 700 50
Tony & Guy-
Smoothening Balm
975 200
Paul Mitchell 1295 100
Total Hair Care Market
Market Facts: Styling Market In India Mainly Comprises Of Men Styling Products
Lack of education on correct usage and implications.
Sources: Passport-Hair Care in India – Euromonitor, Sept’2013; Indian Salon & Skin Products Report’2013
Key takeaways
Executive
Summary
Research
methodology
Industry
Analysis
Objective
3
Recomme-
ndation

17. [8]
Establishing TIGI as a premium, international quirky and cool
brand.
Keeping Hair stylists excited and engaged with TIGI
Converting the challenge of limited target market into an
opportunity
Create buzz/talk around the brand going beyond traditional
media
Strategy
for
TIGI
17
Case Study Objectives
4

18. Comparable Case Study
In 2008 when Mad over Donuts started in India there was no category known to Indian customers called Donuts. Despite this
challenge, over a period of time they have been able to build a recognizable brand and are the biggest donuts selling chain in the
country.
“Companies in this business spend 5-6% of their revenues as marketing expenses, we on the other hand have focused heavily on
Social Media with no traditional media. This has not only reduced our marketing cost to 2-3% of the revenues but has also given us
an opportunity to connect with our customers on a personal level and to engage with them even after they have used our product.
“ – Tarak Bhattacharya, COO, Mad over Donuts
Recommendation 1
We suggest a similar marketing strategy for TIGI with focus on Social Media and innovative campaigns to reach a
larger audience.
All Social media channels and campaigns should have a consistent communication strategy focusing on the 3 pillars.
Emotional Technical
Engage via
Campaigns
The communication
should be directed in
a way that focuses on
building a loyal customer
base by relating to them
on an emotional level.
Target updates/
communication
based on the
products portfolio.
There by portraying
our technical
expertise in the hair
care segment.
Each communication
should be build on
the philosophy
“Engage every time,
every customer” .
Just FYI updates
aren’t able to spark
conversations.
Executive
Summary
Research
methodology
Industry
Analysis
Objective
4
Recomme-
ndation

19. Recommendation 2 : Targeted Advertising
Bed Head
S-Factor
There are 26 Lakh people
in the identified cities
who are in age bracket
18-25, use Facebook,
own an Iphone5 or buy
luxury products.
Facebook Ads targeting
this segment can do
wonders for BED HEAD in
building its brand.
The target segment of S
Factor is not found
online in large numbers.
Hence other forms of
promotions , advertising
can lead to a better ROI.
Executive
Summary
Research
methodology
Industry
Analysis
Objective
4
Recomme-
ndation

20. Recommendation 3: Innovative Campaigning
Hair Pageant
A large scale online campaign inviting
applications from the targeted cities, among
which the best entries (based on voting) will
win the titles of Mrs Adorable Hair & Ms/Mr
Stylish from TIGI
Colgate launched a similar online campaign “Visible white angels”,
which encouraged people to upload their smiling pictures. The
winners get featured on the magazine. The campaign has been
very successful with participation touching one lakh entries and
generating a reach of more than 2 million people.
User based Product Sampling
Encouraging people to get their hair
tested before a suitable product
sample is given to them. Such Kiosks
can be setup in Malls & Multiplexes.
Moreover encouraging user to use
these samples by visiting the nearby
authorized salon so as to get advice
from an hair expert.
Bangalore based You Look Good
salons undertook such a
campaign in the recent past.
From among 3000 people who
were given the samples, 300
people turned out at the salon
to use their sample in the
presence of an hair expert.
Hence generating an turnout
ratio of 10%.
Executive
Summary
Research
methodology
Industry
Analysis
Objective
4
Recomme-
ndation

21. APPENDIX
References
Reports/News
• Estée Lauder Shows Strength in Its Super Premium Strategy, GCI Magazine
• HUL to introduce premium brands for hair styling, Economictimes
• Curl Care With TIGI, All What she wants
• HUL to push Lakme salons, new products, Business Standard
• Can HUL take over L'Oreal's hair care market share?, Rediff News
• Educational Manual - TIGI Products
• Salon hair care industry : Business analysis, Brand spreads, Player Profiles – Passport
• Mad Over Donuts Social Media Strategy, SocialSamosa
Databases
• Euromonitor – accessed on 8th Sep’2013
• ISI Emerging Markets - accessed on 8th Sep’2013
• Frost & Sullivan - accessed on 11th Sept’2013
• Euromonitor Passport - accessed on 11th Sept’2013

22. Industry Analysis: Trends, Issues, Drivers & Constraints
Drivers and
Constraints
for a
premium
product
brand like
TIGI
Drivers
• Increasing disposable incomes and influx of brands, awareness
of various products and services has increased manifold
• Foreign brand or ‘imported’ still has an edge
• Pampering yourself is now equated to high self esteem – look
good, feel good
• Men’s grooming market is showing a significant upward trend
• Salons are frequently visited not only for hair cut but also for
hair straightening, colouring and treatments
Challenges/Constraints
• The growing middle class is well travelled and they want best
products at best prices
• Indian consumer (particularly in the 30-45 age group is akin to
natural and herbal products
• TIGI is not a well-heard of name vis-à-vis names like L'Oreal
and Wella

23. Salon Chains and Hair Brand Affiliations
Salon Hair Brands
Affinity Wella, Sebastian
B Blunt L'Oréal, Kérastase
Bellezza L'Oréal
Enrich L’Oréal, Kérastase
Envi Salon L’Oréal, Kérastase
Geetanjali L’Oréal, Kérastase
Green Trends L’Oréal
Jawed Habib L’Oréal
JCB L’Oréal, Kérastase
Juice TIGI
Salon Hair Brands
Kapils L'Oréal
Lakme Schwarzkopf, TIGI
Lime Lite L’Oréal and Wella
Looks L’Oréal, Matrix, Kérastase
Naturals Schwarzkopf
SAKS Kérastase
Strands L’Oréal and Matrix
VLCC L’Oréal
YLG L’Oréal and Matrix