INTERNATIONAL
BUSINESS CASE
JEUX DU COMMERCE 2012
UNIVERSITÉ LAVAL
LEVERAGING COMPETITIVE INTELLIGENCE1
Written by :
Procter & Gamble Canada
Since 1837, P&G has built a rich heritage of touching consumers’ lives with brands that make life a little
better every day. P&G has grown to a multi-billion company by leveraging consumer knowledge,
innovation, brand- building, go-to-market capabilities and scale. In addition to new business creation
with brands like Tide, Crest and Pampers, Febreze and Swiffer, acquisitions allowed P&G to grow and
refine its mission over the years. Since the 1980s, the company has acquired several brands such as
Vicks, Olay, Tampax, Clairol and Pantene, fortifying its presence in beauty and personal care. In 2005,
P&G acquired Gillette and added to its portfolio Duracell, Gillette, Oral-B and Braun.
Procter & Gamble manufactures and distributes more than 300 brands in 180 countries around the
world. With more than 138,000 employees working in 80 countries, P&G recorded sales of $82.5 billion
in 2011.
Context
The Global Market for Hair Care has been showing steady growth over the past five (5) years and
competition is heating up in all regions around the world. While developed markets (North America
and Western Europe) account for nearly half of the world’s beauty and personal care industry, it has
been showing low-digit growth over the past five (5) years. Demand is growing fast in Asia, Eastern
Europe, the Middle East and Latin America (see Appendix). The category counts two main product
segments:
i)hair care (80% of sales, 6% growth over past five (5) years)
ii) colour care (20% of sales, 5% growth over past five (5) years)
1
We would like to thank Procter&Gamble Canada the elaboration of this case. The present document should not be
considered as reflecting the opinion or position of Procter&Gamble Canada or the author, with regards to parts or the
totality of the issues (including products, services, practices and other elements of the case, implicit or explicit) addressed
or presented whatsoever. The statements included do not consist in recommendations, neither are formulated to prompt
or dissuade from an investment, whatsoever. Moreover, this case does not represent a reliable source of data on the
company, its activity sector or the general business environment. Indeed, several elements included have been altered,
partly developed or otherwise modified to meet the goals of the present situation. Besides, some data might come from
secondary sources, and may have been treated or transformed for practical or competitive reasons. This case does not
constitute an example of good or bad management practices. It was written in an entirely pedagogical objective: to
stimulate discussion and analysis in an academic context.
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Salon Hair Care remains a relatively small segment globally (1% of total sales, -1% growth over past 5
Years) and represent high margins for manufacturers and retailers, especially in North America and
Western Europe where it is over-developped.
P&G has successfully expanded in core white space markets and has become the number one hair care
manufacturer in the world (Euromonitor, 2010). Acquisitions (Richardson-Vicks, Clairol), vertical
expansion in both the salon segment and entry-tier, as well as early presence in white space markets
has fuelled P&G growth in Hair Care and Hair Colour. P&G now counts 13 Hair Care brands (see
Appendix) in its portfolio.
Assignment
You have just been hired in the Global Hair Care Category Team, managing global strategy and
innovation for several top hair care brands, such as Pantene, Head & Shoulders and Herbal Essences.
Your first project is to identify opportunities for the Hair Care category in the next 5 years.
You received, this morning, a report from the Competitive Intelligence team to help you gain a picture
of overall activity in this category (see attached) and your marketing director would like to understand
your recommendations in the following areas:
What are the two (2) or three (3) biggest opportunities (globally or regionally) and how can we achieve
them?Are there any competitive launches that pose a high risk to our business? Do we need to take
action to defend (e.g. re-focus a brand, expand a brand geographically, aquire a competitor)?
Be sure to quantify the size of the opportunities and risks and provide rationale for all your
recommendations using the data provided in the the CI report and appendix.
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Global Hair Care Competitive Intelligence (CI) Report
(information has been modified for the needs of this case study and does not reflect latest intelligence)
UNILEVER
Unilever continues to focus on global Sunsilk brand. Unilever continues to drive innovation on its
global brand Sunsilk through product innovation and ad campaigns. As predicted, Unilever recently
launched the Sunsilk Color Shine range in the U.S. which includes shampoo, conditioner and color
booster. It has also replaced its present line of Thermasilk shampoo and conditioner with the new
Sunsilk range called "Thermashine" in January 2007. The new range includes shampoo, conditioner and
Detangling Shine Spray. The products are to protect hair against damage caused by hair dryers or flat
irons and retail for US$ 3.59. Unilever has also launched an internet web site in Russia which looks very
similar to their other global sites and features their shampoo, conditioner and styling ranges. The
campaign's slogan is "Free to be Different". (Sostav.rv 15th January 2007; FDC reports 4th January
2007)
Unilever expand and build "CLEAR" leadership in Asia and potentially developing a global launch
model in anti-dandruff. "Clear" has appeared alongside Sunsilk & Dove in the Global Hair Care slide
shown during Unilever's Q3 results presentation. With the appointment of Seokhee Won as Global Vice
President for the brand in June 2006, we see Unilever's strategy and focus on building leadership in
Asia, developing it as their stronghold and expanding to other regions. We continue to see very strong
activities behind "Clear" in Malaysia and Singapore as they try to develop a winning business model in
the clean value seeker and mid-tier anti-dandruff segment. They have launched the brand in China and
in April 2007 launched "Clear Scalp Oil Control" in India. Trademark registration for Clear conditioner
and Clear shampoo for Men has also been noted in Indonesia. (The Hindu Business Line 18th January
2007)
Unilever launches "Dove Pro-age" worldwide and continues to invest behind the overall brand. As
part of the next phase of its Real Beauty campaign, Dove is hoping to change attitudes in the anti-aging
category with the launch of Pro-Age, a collection of hair and skin care products designed for pre- and
postmenopausal women. This is the first time Dove has introduced a collection of products
simultaneously across all categories both in the U.S. and worldwide. Dove's Marketing Director in the
U.S., Kathy O' Brien, mentioned they have aggressive plans over the next five (5) years and expect to
double their business again. Their UK Television copy for the range, that aired for the first time last
weekend, uses naked older women to promote the brand, continuing their "Real Beauty" theme. Dove
is continuing to drive their overall brand through their advertising campaigns, on-line promotions and
innovations.
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In Russia, Dove advertising has been named one of the best products in 2006. Dove also
introduced a new line of lightened and dyed hair care products in the market.
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

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Dove Unilever UK has also invested $20 million to relaunch its Dove brand with a more
contemporary packaging and improved product formulation.
In Brazil, it has launched a new product against hair loss.
In Argentina, Dove plans to introduce new versions of its four main products namely
deodorants, bath soaps, hair care items and creams this year. (Women’s Wear Daily 12th
January 2007; Industriya Reklamy January 2007; Cosmetics International 12th January 2007;
Clarin 23rd January 2007; Gazeta Mercantil 12th January 2007; Vitrina December 2006; Grocer
6th January 2007)
North America Unilever Retail Hair Care OGSM analysis.
We have recently simulated an OGSM for Unilever's NA retail hair care business (document capturing
Opportunities, Goals, Strategies, Measures). We expect Unilever to grow Dove and Sunsilk over the
next 5 years at CAGR of 6%. Furthermore, we can expect them to drive Sunsilk and double their first
(1st) year target share of 3.5%-7.0% while growing Dove to become number 2 brand in the category
over the next 5 years. The analysis predicts that Unilever’s strategy will be to focus on their “Big 3”
brands i.e., Dove, Sunsilk and Suave and we have already seen some of the predicted actions begin to
happen.
On Dove, we expect growth through realizing full potential of Campaign for Real Beauty in Hair Care,
bringing Dove anti-dandruff line to North America and continuing to capitalize on market trend toward
premium products through Advanced Care line (e.g., Dove Pro-Age). We have seen these activities
happening not only in North America but in other parts of the world as well.
On Sunsilk, Unilever will likely drive growth via proven global successes (i.e., new items every 6
months). As we predicted, they have recently launched the Color Care line in the U.S. which has been
launched in most Asia-Pacific markets over the past three (3) months. We can expect them to
introduce Sunsilk Anti-Dandruff in the U.S. and expand Styling line as well.
VO5 launches specific range for long hair.
VO5 is launching a new range of products specifically targeted at long hair. The range of haircare and
styling products, "Perfect Lengths", will be available in the UK this month, with a television and press
campaign launching in April. The products contain a keratin strengthening ingredient that apparently
offers "intense care" for long hair and is claimed to provide five (5) times more protection against
breakage. This launch follows a focus by L'Oréal on long hair (e.g. Nutri-Gloss, Fructis Long & Strong)
and aggressive anti-breakage claims (e.g. Elvive Anti-Breakage - "up to 95% less breakage from first
brushing") and continues Culver's focus on trying to strengthen the brand in the UK.
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Uniliver acquires Alberto-Culver.
On May 10th 2010, Unilever and the Alberto Culver Company jointly confirmed that they had obtained
the necessary regulatory clearances for Unilever to acquire the Alberto Culver Company. Unilever
payed $3.7 billion in cash for the Alberto Culver Company, which generated annual sales in excess of
€1.2 billion (US$1.6 billion) in fiscal year 2010. With the acquisition, Unilever becomes the world’s
leading company in hair conditioning, the second largest in shampoo and the third largest in styling.
Alberto Culver Company manufactures, distributes and markets leading beauty care and other
personal care brands including TRESemmé, Alberto VO5, Nexxus, St. Ives, Simple and Noxzema in the
United States and internationally. It is also the second largest producer in the U.S. of products for the
ethnic hair care market with leading brands including Motions and Soft & Beautiful. In a previous
analysts' call Culver confirmed the TRESemmé launch into Mexico, following previous launches in
Argentina and Chile, but said that they did not have"any specific plans for" further geographic
expansion although they are "investigating several things right now, several markets... We're testing
some things, we may do some experimentation sometime in the not too distant future". This suggests
that we should be on the alert for more TRESemmé activity in the near future but that their rapid
geographic expansion may be on hold for a short time. They also shared that they are "in the process
of launching some new items" within the US Nexxus range and that they are "actively researching
different [Mergers & Acquisitions] options".
L'ORÉAL
L'Oréal continue to focus on US with launch of VivePro Nutri-Gloss range and Studio Line relaunch. As
predicted, L'Oréal have followed the relaunch of their Vive brand as VivePro last year with the launch
of the VivePro Nutri-Gloss range this month. This completes the global roll out of this highly successful
initiative; we expect the launch of VivePro styling and anti-dandruff ranges to follow. The US range is
broader than the global range, featuring seven (7) skus, with three (3) shampoo and conditioner
collections for different hair types and one (1) treatment product, possibly highlighting another
digression of the US L'Oréal Paris brand from the global strategy or just a tactical measure to secure
more shelf space. The Studio Line relaunch restages the entire line into black packaging, reducing the
number of skus from 25 to 16, including two (2) new skus. The range seems to be targeted towards the
male consumer, with a large proportion (~40%) of the range in gels. The restage involves a price
increase of over 30%, in line with the 25%-30% increase we saw on the VivePro relaunch last year and
with L'Oréal's overall global strategy to tier up their brands; Fructis seems likely to be the next brand to
receive this treatment in the US. The US Studio Line restage takes the range into very different
packaging compared to the relaunches we saw in other markets, including Canada last year, another
example of the US L'Oréal Paris brand disgressing from the global norm.
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L'Oréal Professionnel launch new colorants line targeting grey hair.
L'Oréal Professionnel have launched a new colorants line in Germany aimed exclusively at grey haired
salon clients. The "Color Supreme" line consists of 17 shades and claims to provide "perfect coverage
for hair having 80-100% of white, without mixing". The launch appears to be pure commercial
innovation, possibly as a reaction to the KP relaunch. L'Oréal is promoting the launch via a range of
publications in the German trade press and we hear rumours that the launch may spread to Austria in
March 2007. Given that L'Oréal have launched this line as a stand-alone brand rather than under an
existing brand (e.g. Majirel), this could signal an intent to broaden the offer for this target group,
consistent with their corporate focus on the ageing population.
Review of hair ranges on CCB-Paris website confirms changing role for the site. We recently updated
our review of the direct mail site (Le Club des Créateurs de Beauté), 50% owned by L'Oréal. As shared
in our initiative launch patterns analysis, this site was used by L'Oréal as a testing ground although our
recent thinking is that it has become a more commercial operation. This seems to be confirmed by the
launch of products very similar to the Elvive Nutri-Gloss initiative, over a year after they were first
launched in retail and over two (2) years since the concept first appeared in professional salons.
However, L'Oréal have just launched an anti-dandruff treatment on the site that we haven'tbeen seen
elsewhere. The product (Peeling So Clean!) includes Zinc Pyrithone and is to be used three (3) times
per week during dandruff crises and before using AD (anti-dandruff) shampoo, suggesting exploration
of products for broader reapplication or just CCB following L'Oréal's overall increasing focus on antidandruff.
Other L'Oréal news in short.
L'Oréal are launching a specific collection targeted at women with grey hair under their Garnier Ultra
Doux brand in France. This is their second move to target specific consumer segments following the
launch of their ethnic collection last year and is consistent with L'Oréal's corporate themes and the
brand's focus on providing products tailor-made to their diverse prime prospects' needs.
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KAO
Kao manages to hold forecast with Q3 sales in line with first half. After poor first half results which
prompted Kao to lower their full year forecast, Kao's third quarter results enabled them to hold their
fiscal year forecast unchanged. Sales for the first 9 months were up +25%, in line with the first half and
mainly driven by the consolidation of Kanebo. Sales for the consumer division were up +5.3% (incl. FX)
mainly driven by FX help from overseas sales and underlying sales in Asia and Oceania (+7.4% like-forlike); sales were up +3.4% in Japan and +2.5% (like-for-like) in North America and Europe. The
expansion of Asience into Singapore and a "major renewal in the KMS professional hair care brand" in
North America and Europe were mentioned as contributors to growth while flat consumer spending
and prices in Japan and "fierce competition..., mainly in the hair care category" in North America and
Europe, held back growth. Operating income was down -7% driven by charges relating to the Kanebo
acquisition and higher raw material costs; excluding the Kanebo amortisation charges, operating
income was up +12%. Kao also announced changes to their structure, merging their sales companies
and introducing four new business units, including the beauty care business unit, apparently driven by
a need to respond to "dynamic shifts due to societal changes" in the Japanese market but probably
also reflecting their attempts to get the business back on track after the disruption of the Kanebo
acquisitions.
SHISEIDO
Shiseido delivers poor OND results.
After beating analysts' expectations in the first half, Shiseido have posted a disappointing sales growth
of +3.4% for the nine months to end December 2006. Net income fell 17%. Shiseido blamed the weak
sales on the "sluggish" Japanese market where sales were down -0.9%, a slight decline versus their first
half sales performance of -0.2%, presumably in part driven by an inability to sustain the strong share
growth they experienced with the Tsubaki launch earlier last year. International sales propped up the
overall company performance, although the weak Yen will have helped. Asia/Oceania was up +30%,
Americas +12% and Europe +4%. Having raised their fiscal year forecast last quarter, Shiseido kept their
sales and ordinary income forecasts unchanged at +3.6% and +16% respectively but increased their net
income forecast slightly driven by lower expected taxes. Shiseido are now halfway through their three
(3) years plan and will be hoping that this will start to drive faster sales growth in the near future.
Other Shiseido news in short.
Shiseido provided another indication of their increasing focus on China with the launch of its official
website in China last month. The new website offers links to Shiseido brands, news about the company
and attempts to attract consumers by providing beauty tips.
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UPSTREAM/TRENDS/OTHER
Bumble & Bumble and PureOlogy reviews give insights into premium professional brand business
models. Our recent analysis of the L'Oréal Kérastase brand highlighted the business model behind its
success in the premium professional care market. Estée Lauder's North American Bumble & Bumble
brand also plays in this segment and has experienced strong growth in the US. The brand shows many
similarities in its business model, including direct-to-salon and selective strategy, strong focus on
education, business consulting focus and a focus on raising awareness through public relations.
However, they do not advertise directly to consumers, a key strategy for Kérastase. PureOlogy is the
market leading luxury color care brand in the US. It is distributed to premium salons and spas via
distributors and uses its simple story of colour protection via sulphate-free products to sell its range to
stylists and consequently consumers. It has consistent trade advertising and very good public
relationscoverage but doesn't advertise directly to consumers. PureOlogy has recently announced the
appointment of a top stylist as International Artistic Director with the intent of taking their education
offering to the next level.
Revlon blows budget to air Superbowl ad to promote launch of new Colorist brand.
We reported on the expected US launch of Revlon Colourist, a new premium colour brand. The brand
has now launched, kicking off their campaign with a minute long advert during the Superbowl last
weekend. With CBS charging as much as $2.6million for a 30 seconds ad, this airing will make a
significant dent in Revlon's launch budget (estimated at $33million). The brand is targeting the very
premium of the US colorants market with an SRP of $15.99. This is far above the average pricing for the
category, even more premium versus L'Oréal Paris's recent launch into the premium segment with
Natural Match (SRP $11.99) and over 3 times the price of any of Revlon's other ranges, all priced in the
opening price point tier at $3.99-$4.99. We expected the product to contain a colorant and a weekly
colour refresher but the interesting twist is that the colour refresher is contained within the
conditioner, another example of the blurring of product forms. The brand attempts to justify its
premium price with claims that it will provide "salon quality haircolour" plus a "2-minutes weekly
colorglaze treatment" and the Superbowl ad featured their spokesperson Sheryl Crow with a lot of
emphasis that she actually used the product. Given the Revlon's recent poor performance on major
initiatives, they will be focusing very hard to make the Revlon Colorist launch a success. (PR Newswire
31st January 2007, Wall Street Journal 30th January 2007- thanks to Tracey Howard-TH - Global
Haircolor CI Council)
China competitor C-Bons shares reasons for success and is open to being acquired.
Domestic firm C-Bons is a significant player in Chinese market and, according to Euromonitor, is
number two in the hair care category with its Slek and Maestro brands. Their president shared his
thoughts on their success in a recent interview. These included a focus on product quality, with their
products apparently recording blind test wins, a focus on R&D to help provide new concepts and
products, an interactive marketing approach to avoid having to spend large sums on television, a shift
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in focus towards direct distribution to supermarkets with specific strategies, including public relations
(PR), for each channel and a plan to focus more on the growing rural markets. He shared that C-Bons
has been approached by a number of foreign personal care firms and investing institutions and, while
they were not in need of any outside capital, they "do not mind mergers or acquisitions, as long as it
benefits the growth of the whole firm". Given that many of their strategies are quite similar to their
larger rivals, an acquisition seems possible as our major competitors try to establish a stronger
presence in China. (China Business Weekly 14th January 2007)
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APPENDIX 1: P&G Hair Care Main Brands
Brand
Rejoice
NIOXIN
Aussie
Pantene
Description
Products
Rejoice has been the top-selling haircare brand in
China for over 20 years. Known as the expert in
smoothness, Rejoice has gained high recognition by
Chinese consumers, and was voted “The Most Popular
Foreign Trademark in China” by 250,000 consumers
and experts nationwide.
Segments: Shampoo, Conditioner, 2in1
Price tier: Entry-tier
NIOXIN uses advanced technologies to deliver thicker,
fuller, denser-looking hair. Our commitment to
innovation, supported by research, enables us to be
able to help more than 50% of people worldwide who
experience thinning hair.
Segments: Medicated Shampoo, Conditioner,
Treatment, Styling.
Price tier: Premium/Salon/Expert
Aussie was introduced to the market in 1979, with a
range exciting formulas containing ingredients from
Autralia such as Blue Gum Leaves, Australian Custard
Apple, Quandong, Mint Balm, Wild Cherry Bark and
Jojoba Seed Oil. The brand is mostly distributed in
mass retailers and includes shampoos, conditioners,
treatments an stylers. The brand is present in North
America and Western Europe.
Segments: Shampoo, Conditioner, 2in1, Styling.
Price tier: Entry-tier
For more than 60 years, Pantene has offered
consumers unsurpassed quality in state-of-the-art
products that have exemplified serious hair care and a
hands-on approach of achieving beautiful, healthy
hair. Pantene is one of P&G billion-dollar brands and
got distributed all over the world since P&G acquired
it in 1985. It is mainly distributed in mass retailers.
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Fekkai
Herbal
Essences
Segments: Shampoo, Conditioner, 2in1, Treatment,
Styling.
Price tier: Mid-tier
A roster of celebrity clientele, explosive press and an
award-winning product line transformed Frédéric
Fekkai from red-hot hairdresser to luxury lifestyle
brand by 1995. By 2005, Fekkai expanded the product
lineup and salon business that exuded his specific
brand of effortless style. Today, the Fekkai remains a
category headliner; the ultimate in luxury hair care
distributed in over 40 countries worldwide. It offers
salon shampoo, conditioners, treatments and stylers.
Segments: Shampoo, Conditioner, Treatment, Styling.
Price tier: Premium/Salon/Expert
Herbal Essences is an entry-tier hair care brand
distributed all-over the world offering shampoo,
conditioners, and stylers with scents inspired from
nature.
Segments: Shampoo, Conditioner, 2in1, Styling
Price tier: Entry-tier
Head
& For almost 50 years, Head & Shoulders has provided
Shoulders
millions of consumers with superior scalp care.
Introduced in 2007, the proprietary zinc pyrithione
(ZPT) formula in Head & Shoulders effectively targets
the source of dandruff so men and women can feel
confident that their hair looks great. With full lines of
shampoos and conditioners, Head & Shoulders
systems provide the dual benefits of achieving both a
healthy scalp and great-looking hair. Offering ten
shampoos and five corresponding conditioners, Head
& Shoulders has a line to fit the needs of all men and
women
Segments: Medicated Shampoo, Conditioner, 2in1.
Price tier: Mid-tier
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Wella
Sebastian
Sassoon
Throughout the brand’s history, Wella has earned its
title as the global authority on hair color. Wella
Professionals has a strong heritage of outstanding
leadership in the salon industry. For over 125 years,
Wella Professionals has perfected the science and
beauty of hair, working with scientists and colorists
worldwide to drive innovation and inspiration for
salon professionals. Wella Professional is available in
salon all over the world and the brand just launched
Wella Pro Series mid-tier offering in Western Europe.
Segments: Shampoo, Conditioner, Treatment, Styling.
Price tier:
Wella Professional: Premium/Salon/Expert
Wella Pro Series: Mid-tier
Sebastian offers professional Hair Care (Shampoo,
Conditioners, Treatments, Styling) and Colour
products and services around the world. Sebastian is
distributed in North America, Western Europe and
Asia.
Segments: Shampoo, Conditioner, Treatment, Styling
Price tier: Premium/Salon/Expert
By the early 1980s, Vidal Sassoon, a recognized British
hair-dresser, sold his name to manufacturers of
haircare products and the multinational Procter &
Gamble was applying his name to shampoos and
conditioners sold worldwide. Entry-tier products sold
in mass markets were discontinued in the 1990s.
Today, the brand offers salon hair care solutions,
appliances and services in North America and
Western Europe.
Segments: Shampoo, Conditioner, Treatment, Styling
Price tier: Premium/Salon/Expert
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APPENDIX 2: Unilver Hair Care Main Brands
Brand
TRESemmé
Sunsilk
Hazeline
Dove
Lux
Axe
Lynx
Ego
Description
Products
Started in Salons in 1947, TRESemmé has now
become a salon-inspired brand sold in mass channels
after it was bought by Alberto in 1968. Unilver
acquired Alberto in 2011.
Segments: Shampoo, Conditioner, 2in1, Styling
Price tier: Mid-tier
Sunsilk provides everyday hair solutions. It is
distributed in 80 countries around the globe.
Segments: Shampoo, Conditioner, 2in1, Styling
Price tier: Entry-tier
Dove provides a wide range of cleansing and personal
care products for your skin and hair. Dove started its
life in 1957 as a beauty soap bar and expanded in Hair
Care in the 1990s. It also has introduced a line for
men in 2010.
Segments: Shampoo, Conditioner, 2in1, Treatment,
Styling
Price tier: Mid-tier
Similar to Dove, Lux started as a soap, but the range
now includes shower gels, bath creams and a range of
hair care products such as shampoos, conditioners
and treatments. Lux is distrubuted in 80 countries,
mostly in Asia, Middle East, Brazil.
Segments: Shampoo, Conditioner, 2in1, Treatments.
Price tier: Mid-tier
Axe is a male personal care brand offering bodywash,
deodorant, shampoo, conditioner and hair styling
products. The European launch of the deodorant was
followed by a great success in Latin America and
North America and had a moderate impact in Asia and
Africa.
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Nexxus
Clear
Segments: Men Shampoo, Conditioner, 2in1, Styling
Price tier: Mid-tier
Nexxus is a salon hair care brand founded in 1979
before getting acquired by Unilver.
Segments: Shampoo, Conditioner, Treatment, Styling
Price tier: Premium/Salon/Expert
Clear is a hair and scalp care brand introduced by
Unilver in Asia and now expanding in other regions. It
offers products for both men and women.
Segments: Medicated Shampoo, Conditioner, 2in1
Price tier: Mid-tier
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APPENDIX 3: L’Oréal Hair Care Main Brands
Brand
L’Oréal
Paris
Description
Products
The L’Oréal Paris brand encompasses the four major
beauty categories – haircolour, cosmetics, haircare,
and skincare – and includes such well-known brands
as Superior Preference®, Natural Match™, and
Couleur Experte® haircolours; VIVE Pro; DermoExpertise skin care, including Advanced Revitalift®,
Age Perfect®, Men Expert, Skin Genesis, Sublime Glow
and Sublime Bronze; and L’Oréal Paris Cosmetics,
including Colour Riche®, True Match™, Bare Naturale,
and Wear Infinite™ collections, Voluminous®, Double
Extend™, Telescopic®, and Volume Shocking™
mascaras, among many others, and the HiP high
intensity pigments™ line.
L’Oréal Paris Hair Care is distributed globally.
Segments: Shampoo, Conditioner, 2in1, Treatment,
Styling
Price tier: Mid-tier
Garnier
Others
Created in 1904, the Garnier brand has become a
large player in the beauty industry by offering women
and men Skin Care, Hair Care, Hair Colour inspired by
natural ingredients. It is now distributed in over 70
countries.
Segments: Shampoo, Conditioner, 2in1, Treatment,
Styling
Price tier: Entry tier
L’Oréal Professional, Luxury and Active Divisions also
offers the following brands:
L’Oréal Professionel
Kérastase
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Redken
Matrix
Pureology
Mizani
Shu uemura art of hair
Kiehl`s
Vichy
The Body Shop
INTERNATIONAL BUSINESS CASE – JDC2012
17
APPENDIX 4
Market Sizes By Region and Segment
World
Asia Pacific
Australasia
Western Europe
Eastern Europe Middle East & Africa North America
Latin America
$MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR $MM USD P5Y CAGR
Beauty and Personal Care
6% 101,834
8%
6,274
7%
97,862
3%
25,803
8%
17,704
10%
67,789
2%
32,227
15%
67,568
6%
18,076
8%
955
6%
15,462
2%
4,658
8%
3,229
10%
11,530
0%
7,381
13%
23,131
8%
8,097
11%
287
4%
4,761
2%
1,911
9%
1,056
10%
2,475
2%
2,398
14%
729
3%
161
10%
14
7%
180
1%
55
11%
35
2%
226
-1%
34
11%
22,402
8%
7,936
12%
273
4%
4,581
2%
1,856
8%
1,021
10%
2,249
2%
2,365
14%
2-in-1 Products
2,956
-2%
436
-17%
8
0%
780
2%
296
2%
417
7%
592
1%
280
9%
Conditioners
13,747
8%
4,475
10%
208
4%
2,355
3%
490
8%
597
12%
1,762
2%
2,048
14%
Colourants
12,256
6%
1,953
7%
196
10%
3,104
2%
1,154
9%
438
12%
1,938
1%
1,892
13%
Hair Loss Treatments
681
7%
433
7%
14
2%
89
7%
4
8%
10
7%
116
6%
11
7%
Perms and Relaxants
1,002
5%
74
0%
0
-17%
95
-1%
36
-1%
160
7%
185
-1%
252
12%
Salon Hair Care
4,634
-1%
614
6%
124
6%
905
1%
44
11%
153
2%
2,696
-3%
58
11%
Styling Agents
9,161
3%
1,995
4%
119
6%
3,374
0%
723
5%
400
10%
1,766
Hair Care
Shampoos
Medicated Shampoos
Standard Shampoos
381,967
INTERNATIONAL BUSINESS CASE – JDC2012
1%
442
12%
Source: Euromonitor, 2005-2010
18
APPENDIX 5
Manufacturer and Brand Retail Shares (%) By Region
World
Asia Pacific
Australasia
Eastern Europe
Latin America
Middle East & Africa
North America
Western Europe
19.8
19.1
24.8
20.4
16.4
21.3
25.0
19.1
Pantene
7.1
7.0
10.0
4.7
6.2
8.6
8.8
7.1
Head & Shoulders
3.6
4.5
3.8
4.1
3.0
4.2
3.6
2.9
Herbal Essences
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
Wella
3.3
1.1
3.2
5.9
5.5
4.9
1.1
4.6
Clairol
3.0
1.2
7.8
1.3
1.4
2.7
8.4
2.7
Vidal Sassoon
0.5
1.8
-
0
0
0
-
0.2
Aussie
0.2
0.0
0.0
0.0
0.0
0.0
0.8
0.5
Sebastian
0.1
0
0
0
0
0
0.7
0
L'Oréal Groupe
17.5
3.6
23.2
14.9
14.7
13.6
25.1
31.6
L'Oréal Paris
7.8
1.9
7.5
7.5
8.1
4.6
6.7
16.3
Garnier
5.4
0.7
8.0
6.0
6.3
2.7
5.5
10.4
Matrix
0.7
0.0
0.0
0.0
0.0
0.0
3.9
0.1
Redken
0.6
0.0
2.2
0.0
0.0
0.3
2.7
0.3
L'Oréal Professionnel
0.4
0.5
0.0
0.2
0.1
0.7
0.2
0.6
Kérastase
0.3
0.1
3.0
0.0
0.2
0.3
0.0
0.7
Unilever Group
12.7
14.8
18.7
6.1
16.5
13.6
13.4
7.8
Sunsilk
4.4
2.6
7.4
2.4
11.9
6.9
0.9
2.1
Dove
2.0
1.8
2.0
1.4
2.7
1.9
1.9
2.0
Lux
1.0
3.8
0
0
0
0
0
0
TRESemmé
0.9
0
3.6
0
0.1
0.4
3.6
0.8
Clear
0.8
2.3
0
0.5
0
1.4
0
0.2
Suave
0.7
0
0
0
0.3
0
3.6
0
Alberto VO5
0.6
0.4
3.2
0.0
0.4
0.4
0.9
0.8
Nexxus
0.2
0.0
0
0.0
0
0.0
1.3
0.0
Hazeline
0.1
0.4
0.0
0.0
0.0
0.0
0.0
0.0
Axe/Lynx/Ego
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.0
Henkel AG & Co KGaA
5.0
1.3
13.0
18.4
1.2
3.8
0.9
11.6
Kao Corp
2.8
7.4
0
0
0
0.2
1.5
2.3
Shiseido Co Ltd
1.8
6.5
0
0
0
0
0.4
0
Beiersdorf AG
1.6
2.2
0
3.5
0
1.8
0
3.0
Colgate-Palmolive Co
1.5
0.8
4.1
1.1
4.8
1.0
0
0.6
Avon Products Inc
1.1
0.2
0.6
2.8
3.0
0.4
0.4
0.4
John Paul Mitchell Systems Inc
1.0
0
0
0
0
0.1
5.5
0.1
Johnson & Johnson Inc
0.9
0.4
1.7
0.7
0.5
0.8
1.9
1.2
Private Label
1.7
0.7
0.8
1.0
0.3
0.1
1.3
5.2
Others
19.1
15.8
9.5
19.2
20.4
21.7
Procter & Gamble Co, The
INTERNATIONAL BUSINESS CASE – JDC2012
11.5
10.2
Source: Euromonitor Brand Shares, 2010
19