GODREJ EXPERT HAIR COLOUR
Note: All information in the case has been garnered from sources in the public domain. This case has
been developed for purely academic purposes, and is not in any way the intended or actual plan
Godrej Consumer Products Ltd (GCPL).
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The Indian Hair Colour market
In the year 2012, the hair care segment in India increased by 18% in current value terms, to
reach Rs.11,600 crore. Within this segment, the hair colourants category saw the fastest
current value growth of 29%, and stood at approx. Rs.2000 crore. This translates into roughly
17% of the hair care market, by value.
Category
%
Sales
Hair Oils and
Conditioners
41
Shampoos
36
Colourants
17
Salon Hair Care
4
Styling Agents
2
Fig 1: Percentage Sales of Hair Care by Category: Value (2012) {Source: Euromonitor International}
In India, hair colorants have proven to be the hair care industry’s crowning glory. Once
primarily used to cover grey hair, hair colourants have today emerged as a lifestyle need.
An analysis of the drivers for growth of this market include rising disposable income, growth
in awareness and fashion consciousness, increasing media penetration, and a tremendous
rise in organized retail. An expanding distribution network ensures that more and more
people have access to these products, while mid-priced brands and smaller packs have
been launched to tap into the high-potential mid-segment. Moreover, beauty no longer
remains a domain restricted to women; it has gone beyond and encompassed males who are
spending more on grooming products.
Despite all of the above factors, the key challenge faced by this sector is the perception that
most hair colourants contain harmful chemicals that adversely affect the quality of hair in the
long run. To combat this, companies have introduced ammonia-free hair colours and colours
with certain natural ingredients like olive oil and aloe vera, which have led people to
become more amenable to using them.
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The Delivery Formats
Hair colourants are available in a variety of delivery formats, namely:





Powder-based
Cream-based
Oil-based emulsion
Shampoo-based
Liquids
The genesis of the Indian hair colour market was with liquid hair colours. Powders as format
gained acceptance post the launch of Godrej hair colour powder in a sachet, creating new
levels of access due to low put down price and simplicity of use.
Through the '90s, the popular hair colours were powder dyes or oil-based liquids. In 1997,
L’Oreal launched its premium brand Excellence Crème, which introduced the concept of
hair colour other than just the regular black and dark brown in an easy to apply form. They
also launched their Salon Business, aimed at getting the “experts” (stylists / barbers etc.) to
endorse the crème format and the L’Oreal brand.
However, even today, powder hair dyes comprise the biggest segment in this category, by
volume followed by cream based hair colours. In terms of franchise, the powder franchise is
approx. 10x the crème franchise (in terms of the number of households using.)
Delivery Format
Value-Base Share
Powder based
Cream based
45-50%
25%
Fig. 2: Delivery Formats: Value Share (Source: Business Standard, 2012)
According to industry estimates, powder hair colour constitutes 45-50 per cent of the hair
colour market by value, and is growing at 15 per cent yearly.
Cream hair colour constitutes 25 per cent by value of the hair colour market and is growing
at about 20 per cent yearly. This growth is partly because of the in use sensorials as well as
the modern image that this format has.
The market segments: Salon v/s DIY
The hair colorants market has two distinct segments—the professional coloring service
offered by salons and the DIY at-home hair color market.
L’Oréal Professionnel, followed by Schwarzkopf and Wella, dominate the professional
market. This segment has seen steady growth, predominantly in the metropolitan market
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since the tier two market consumers are slower to warm up to the relatively higher pricing
of these color services.
However, it is the at-home hair color market that has really excited the big marketers. It is
the market that is generating the highest volumes for most of them, but it is also the segment
that is facing stiff competition as many national and international brands compete for
consumers’ share of mind, heart and wallet. Some key brands in this market have been
indicated below.
Brand Shares - The at-home market:
Godrej Consumer Products Limited (GCPL) is the overall market leader in the hair colour
category deriving nearly 15 per cent of its domestic revenues from hair colour. Though it
has dominated the powder hair colour segment in India with a market share of 33 per cent in
this segment (Source: AC Nielsen), however it has yet to obtain a firm footing in the cream
hair colour format.
Currently, the top end of the hair colour market in the cream segment is dominated by
L'Oreal (60 per cent) followed by Streax (9 per cent). The colour cream category is skewed
towards the urban metros while the powders are being used mostly by Tier 2 and Tier 3
cities.
Vasmol from HRIPL (Hygienic Research Institute Pvt. Ltd.) tops the emulsion-based segment
with a 91 per cent share by value. Indian hair colour brands such as Godrej Kali Mehandi,
Black Rose Kali Mehandi (Henna Export Corporation), and Indica (CavinKare) contain
natural colouring agents such as henna/mehandi and thus are perceived to provide a more
‘natural’ way to colour hair.
Brand
Company
Godrej Consumer Products
Ltd.
Hygienic Research Institute
2009
2010
2011
2012
26.0
25.8
24.2
23.3
17.0
16.0
15.8
15.6
L'Oreal India Pvt. Ltd.
10.8
10.8
10.8
10.9
L'Oreal India Pvt. Ltd.
5.0
5.3
5.6
5.6
4.0
4.2
4.3
4.6
4.0
4.3
4.5
4.6
Streax
Cavinkare Pvt. Ltd.
Godrej Consumer Products
Ltd.
Hygienic Research Institute
2.3
2.0
2.0
2.0
Revlon Colorsilk
Modi Revlon Pvt. Ltd.
0.9
0.9
0.7
0.6
Others
Others
30.0
30.7
32.1
32.8
Total
Total
100.0
100.0
100.0
100.0
Godrej Hair Dye
Super Vasmol
L'Oreal Excellence
Creme
Garnier Colour Naturals
Indica
Godrej Coloursoft
Fig 4: Brand Shares by Value (in %) (Source: Euromonitor International)
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Godrej Hair Colours:
Godrej was one of the early pioneers in the hair colourants category. It launched its first hair
colour brand – Godrej Liquid Hair Dye – in the 1970s. Used in those days with some degree
of hesitation, it did become a category leader and laid the foundation for the market-tocome. In keeping with market developments, Godrej added to its portfolio in 1981 by
developing and launching a hair dye in powder form.
1n 1995, it revolutionised the market by packaging its hair dye in an economical, easy-touse, convenient-to-carry sachet format called Godrej Powder Hair Dye. In rural India which
is traditionally price sensitive, it had an open sesame effect. Its unique selling proposition
put succinctly in its communication – Kaato, Gholo, Lagaalo (cut, dissolve, apply) –helped it
establish unquestioned leadership.
Godrej Expert:
In 2008, Godrej Powder Hair Dye was relaunched as Godrej Expert Powder Hair Dye and
carried with it the promise of a much-needed product innovation. The colour lock
formulation technology developed by Godrej, enabled colour molecules to cover every hair
strand for a long-lasting, natural look. Simultaneously, the mildly perfumed conditioner
nourished hair and made it soft and shiny.
In 2011, a further relaunch provided a range of innovations. Godrej Expert Original is the
basic black hair colour (with the largest hair colour consumer franchise in India), Godrej
Expert Care (a henna based colour with the goodness of henna and amla) and Godrej
Expert Advanced (powder that forms a gel); the flagship gel innovation that took care of all
the fundamental powder format challenges - Non Drip, triple conditioner; and great post use
hair feel.
Another innovation in the Expert hair colour franchise was the launch of the Godrej Expert
Rich Crème in 2012. For the first time in India, a crème hair colour was made available in
convenient pre-measured sachets. It is available in five shades, and is enriched with the
goodness of aloe-protein which keeps the hair soft & shiny. Expert Rich Crème also offers a
complete one-stop solution by way of a Hair Colouring Kit (colour sachet + developer sachet
+ hair colouring brush + mixing bowl + gloves + ear caps + stain removal wipe +
conditioner) to hand-hold the first timers. Godrej Expert Rich Crème is affordably priced at
Rs.59 for the Kit and Rs.30 for the Single use pack (colour sachet + developer).
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Product
Price
Format
Godrej Expert Original
Rs. 15 / sachet
Powder
Godrej Expert Advanced
Rs. 15 / sachet
Powder
Godrej Expert Care
Rs. 20 / sachet
Powder
Godrej Expert Rich Crème
Rs. 30/ sachet
Rs. 59 (for the kit)
Cream
Fig. 3: The Godrej Expert Range
Other Cream-based hair colours from Godrej:
Apart from Godrej Expert Rich Crème, Godrej has two other cream- based hair colour
brands, namely Godrej Colour Soft and Godrej Renew.
Godrej Colour Soft is positioned as a gentle hair colourant that guarantees a pleasant
colouring experience. The built-in conditioner gently penetrates the hair during the
colouring process and strengthens it. The post-colour Moisture Lock conditioner gently
refreshes every strand, locking in moisture. Colour Soft offers a complete hair colouring kit
which includes a 40 ml colourant, 40 ml developer lotion, 4 post-colour conditioner sachets
of 24ml, a measuring cup, an instruction leaflet, a pair of gloves and a protective cape.
Godrej Renew cream hair colour is a breakthrough formulation which conditions hair, not
once but twice resulting in twice the shine and softness. It contains Aloe + Hibiscus
conditioners that protect and revitalize hair while colouring. The special after colour
conditioner provides nourishment and moisture to coloured hair, giving it a healthy shine. It
is available in two sizes. 50ml priced at Rs.125 and the new 20ml pack priced at Rs. 55.
Henna and henna-based colours from Godrej:
In their natural hair colour range, Godrej Nupur is a 100% natural hair colour while Godrej
Kali Mehandi and Godrej Kesh Kala contain natural colouring ingredients such as
mehandi and other herbal extracts to give a ‘natural’ colouring to hair.
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Key Competitors in the cream hair colour segment:
Brand
Name
Celebrity
in Ads
Key Differentiators
L’Oreal
Excellence
Crème
Aishwarya
Rai
Contains a 3X formula
– Ceramide which
protects, Collagen
which restores and
pro-keratin which
strengthens
L’Oreal
Casting
Crème
Gloss
Sonam
Kapoor
Targets younger
consumers who want
to get stylish, glossy
looking colour.
Revlon
Colorsilk
None
Imparts luminosity to
hair.
Godrej
Renew
Garnier
Color
Naturals
Karishma
Kapoor
Godrej
Coloursoft
Sonakshi
Sinha
Streax
Godrej
Expert
Rich
Creme
Perizaad
Zorabian
Type and
Constituents
Permanent Colour,
100% grey Coverage,
contains ammonia. The
pack consists of a
protective serum,
colourant, developer
and conditioner.
Semi-Permanent
colour, no ammonia,
50% grey coverage.
The pack consists of a
colourant, developer
and conditioner.
Permanent Colour,
contains ammonia. It
consists of a colourant,
developer and
conditioner.
Price per kit
No. of
shades
Rs.559
10+
Rs.529
10+
Rs. 350
10+
Contains the goodness
of Hibiscus and Aloe
vera
Permanent Colour,
100% grey Coverage,
contains ammonia
Rs. 125
4
It has a nourishing
cream formula and
contains olive oil.
Permanent Colour,
100% grey Coverage,
contains ammonia. The
pack consists of a
colourant, developer
and conditioner.
Rs.155
5
Mild and gentle hair
colour
No ammonia
Rs. 140
5
its key ingredient is
Walnut Oil which
helps strengthen and
imparts colour. It also
has a Kera-Vit formula
which conditions hair.
Permanent Colour,
100% grey Coverage,
contains ammonia. It
consists of a colourant,
developer and
conditioner.
Rs.120
17
Contains the
goodness of Aloe
Protein
Permanent Colour, No
Ammonia, Premeasured sachets
Rs.59
5
*The italicized Godrej brands are not on air.
Fig. 4: Key competitors in the cream hair colour segment – an overview
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The Communication Tasks


To strengthen Godrej’s leadership position in the hair colour market in the face of
new age competition by:
o Bringing new users to the category through the Godrej hair colour product
portfolio
o Driving format uptrades within the Godrej Expert Brand
To build relevance of the brand in the mind of the consumer through impactful and
innovative brand building initiatives.
The Communication Challenge
Godrej Expert currently faces the following major challenges:

Despite being the largest franchise in India it is seen as the category default. Its
strength on Godrej Expert Original is linked strongly to the low put down price. The
strong identification of consumers with Godrej Expert Original, makes their
acceptance of premium / value creating propositions from the brand a slow burn

Godrej Expert is seen as a great entry point for consumers who enter the category.
However, whenever they upgrade, they tend to switch to competing brands such as
L’Oreal, etc. that are seen to have more brand sheen.
Thus, the key communication challenge here is to propose a strong positioning &
differentiation to build the brand image of Godrej Expert vis-a-vis competition.
Key Deliverables
The task is to provide a communication strategy that details the way forward for Godrej
Expert which would help build the brands in the most effective manner. The strategy
document must provide solutions to the following key areas;
1. Identify key challenges for the brand and its communication.
2. Identify key characteristics of the target consumer.
3. Identify the key consumer insights in the target group and architect the offerings along
the needs of the consumer.
4. Identify the right positioning and messaging platform for targeting the consumer.
5. Identify the right communication message for the brand.
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Methodology to be followed:
Weightage will be given to adequate rigor employed in the case. Expert interviews, depth
interviews & focus groups are some of the tools that can be employed to derive consumer
insights and thus, to propose the right positioning & differentiation for the brand.
Rules & Regulations
Participation Rules:
1. Participating teams should comprise of only three members
2. Only one entry per institute will be considered
Two stages of this event:
Stage I: Submission of the written case solution.
Stage II: Power point presentation of the shortlisted cases.
Stage I: Process and rules for submission of the written case:
1. Draftfcb+Ulka Comstrat is a contest for Communication Strategy; hence students are
requested to focus on the same.
2. Creative renditions are not necessary and will not be judged.
3. A detailed Media plan is also not required and will not be judged.
4. A synopsis of the case solution should be submitted as a word document in a minimum
font size of 11 points and single line spacing. The document should not exceed 15 pages.
5. A written case solution on the case should be submitted either through email to
comstrat@draftfcbulka.com or by post to Draftfcb+Ulka Advertising, 4th floor, Nirmal,
Nariman Point, Mumbai 400021.
6. The last date for receipt of the submission is 30th October 2013 by 10 a.m.
7. A shortlist of six teams shall be arrived at by evaluating the case solutions received
8. The shortlist shall be declared on 15th November 2013 and posted on the website
www.draftfcbulkacomstrat.com and communicated to K. J. Somaiya Institute of Management
Studies and Research
9. The six shortlisted teams will be invited to make a power point presentation to a panel of
judges on 7th December 2013 in Mumbai
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Please remember:
1. Synopsis to be submitted as word document only
2. Font size should be minimum 11
3. The document should not exceed 15 pages
4. The document should have single line spacing
5. Synopsis should be submitted on or before 30th October 2013 by 10 a.m.
Stage II: Final power point presentation of the case:
1. Shortlisted teams are requested to reach the venue on 7th December 2013 at 10.30 am
sharp for the set-up and dry run.
2. Please get your power point presentations on a CD/Pen drive, rest of the equipment shall
be provided at the venue.
3. The time limit for each presentation is 20 minutes and the students are requested to
strictly adhere to the time-limit. A warning bell will ring after 15 minutes.
4. At the end of 20 minutes the team will be asked to stop the presentation.
5. Students are requested not to indicate their institute’s name on the slides or anytime
during the presentation.
6. Stay and travel arrangements have to be made by the participants themselves.
7. Comstrat is a contest for Communication Strategy; hence students are requested to focus
on the same.
8. In the case presentation, creative renditions are not necessary and will not be judged.
9. Media plan for the same is also not required and will not be judged.
10. The solution must have only one approach and not multiple options.
Key Dates to remember:
Last date for written submission
30th October 2013
Shortlist of 6 teams for power point presentation
15th November 2013
Final Presentation
7th December 2013
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