Marketing Analysis on Garnier Fructis Shampoo (Entered in Turnitin)

1. 0 Situation Analysis/Current Marketing Mix 1. 1 Current Product The Garnier Fructis fortifying cream shampoo colour last is one of a large assortment of shampoos on the market. In the midst of such a large range of competitors, Garnier has taken steps to make their product stand out. The product is distinctively designed with a dark red bottle, combined with a dark green cap and label. The opening cap is small and rounded and differs to the usual large opening cap of most shampoos. The general theme amongst shampoos is very bright bold colours so this products darker colours does differentiate the product.

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Consumers purchasing this product need cleaner hair and a product that will prolong their highlights or completely dyed hair. The product labelling reassures the consumer that the product will meet this need by describing the features of the product. The labelling describes how the product has a double action: nourishes + resists colour fading (Product label), thereby seeking to profess that they are meeting the needs of the buyer. So people in the target market of having coloured hair will be attracted to this product because of these attributes.

The main consumers who buy this product are women and casual surveillance of shoppers in the health products section of the supermarket showed that a large degree of women will take two to three minutes to select a shampoo. Where this product is not available, the most probable outcome would be that consumers would select a substitute product. This is because therea€™s many available alternative shampoos on the market and they all generally do the same job and profess the same sort of benefits.

The Garnier shampoo range is quite diverse with shampoos specifically for normal, dry hair, dry damaged and stressed out hair, wavy hair and of course colour last. The first four shampoo hair types though come in a green bottle, with the colour last being the only one in a red bottle. This probably reflects the fact that people with non-highlighted hair might use any of the first four hair types and people with highlighted hair mainly use the colour last.

So Garniera€™s product for the later market segment is uniquely coloured to be easily identified amongst the others as people dona€™t colour their hair green but may colour their hair red (colour of bottle) or any other colour. The fragrance of this product is quite unique and fragrance has been shown to be an influencing factor on a product decision. Choice magazine has evaluated the fragrances of various shampoos; Garnier Fructis Fortifying Shampoo was rated highest, having a 70% fragrance score (Browne, 2006).

This is another aspect of the product which has helped differentiate Garniera€™s product. 1. 2 Current Pricing The shampoo market is highly competitive with many suppliers in the market, at varying pricing levels. Consumers have the option to purchase low, middle and high priced shampoos, with Garnier Fructis sitting around the middle to high price range. A recent visit to Coles, Karawara saw a 250ml bottle of Garnier Colour last priced at $5. 34 ($2. 14 p/100ml).

Two interesting points of note on this are that most shampoos come in 400ml bottles, indicating that Garnier may be undertaking the marketing ploy of offering a decreased product size in this product to appear less expensive, as well as decreasing consumers ability to make direct price comparisons with other products. The second point is that the 400ml bottle of Garnier Colour last was priced at $8. 99 ($2. 25 p/100ml), which is actually slightly more expensive per 100ml than the smaller bottle.

As most consumers would expect buying the larger bottle would be cheaper this is another example of underhand marketing tactics by Garnier. Garniera€™s colour last shampoo pricing sits above most brands, including Herbal Fusion ($1. 25 p/100ml), Natures Fruits ($0. 38 p/100ml), Organic Car Colour Shield Shampoo ($0. 77 p/100ml) and is similarly priced to Pantenea€™s Colour therapy shampoo ($2. 45 p/100ml) and Doves range of shampoos ($2. 31 p/100m). (ColesOnline 2011) Figures used are in per 100ml as many competitors use slightly different sized bottles; in comparing prices the closest bottle sizes have been chosen.

As Garnier has positioned their product towards the top of the market they have had to ensure the perceived value that their product offers is greater than cheaper alternatives. Average weekly product sales figures listed on the shelf product pricing ticket at Coles Karawara indicate 935 are sold weekly, which compares to 754 for Pantenea€™s colour shampoo and 832 for the budget natures fruits shampoo. These figures suggest that Garnier has positioned their product well and consumers are influenced by the product image and quality when deciding to purchase this product.

In pricing its products Garnier must consider its business costs; however the cost of making the product varies little between manufacturers. Experts say most shampoos… contain the same basic ingredients: water, cleansing agents, foaming agents and a few preservatives (Shampoo: Full Report, 2010) and thus the difference in price between Garnier and other brands must be driven by other costs such as marketing. Garnier does market there products quite extensively on TV, in magazines and through various other marketing mediums.

Therefore Garniera€™s product is higher up the scales on price due to greater advertising costs. a€? 1. 3 Current Distribution In deciding on the distribution of its product Garnier will first have looked at the type of product Fructis fortifying cream shampoo colour last is and what its characteristics are. The product is obviously a consumer product: a product bought by people for personal use and can be categorised as a convenience product. Convenience products are inexpensive frequent purchases, there is little effort needed to purchase them (Learn Marketing n. d. ).

As the name might suggest convenience products need to be located widely so that they can be easily located and purchased at convenient times. In response to this knowledge Garnier has ensured its product is widely distributed. Garnier Shampoo can be found at supermarkets including Coles and IGA. Supermarkets being of course where most consumers shop for their staple products, which includes shampoo. Other locations that stock Garniera€™s shampoo include multi goods stores such as Kmart, Target and Big W. Chemists are also stockists, this list includes Priceline, Terry White Chemist and Chemmart Pharmacy (Where to Buy Garnier Products. . d. ) Consumers therefore dona€™t have to spend much time shopping for Garniera€™s product. This is essential as consumers are unlikely to spend much time looking for convenience products but would rather accept a substitute as discussed earlier. 1. 4 Current Promotion Garnier runs many promotions including, sales promotions (in store specials), television promotions (commercials) and sponsorship/participation in various community events. In store specials are regularly run for Garniera€™s products to provide a short term incentive to encourage purchase… of its product (Kotler et al. 2008, 484).

The main purpose of this is to entice new consumers to buy Garniera€™s shampoo; be it loyal users of a competing brand or consumers who regularly switch brands. A recent example of an in store promotion is Priceline, who recently advertised in its catalogue a 25% discount off Garnier Fructis Shampoo or Conditioner 250ml. The original price was $5. 99 and the reduced price was $4. 49 (Priceline Catalogue. 2011). Television commercials run intermittently and can also be viewed via the Garnier website. A recent commercial specifically for Fructis colour last featured women in their early years (25-35yrs) leading active and social lifestyles.

The commercial begins with a group of female joggers, then jumps to a cocktail bar with friends, followed by swimming and then finally to a group of friends after a bike ride. The commercial has an outdoors and active theme throughout, which is representative of the lifestyles of the target audience for Garniera€™s Products. Garnier also sponsors the Surf rider foundation Love your Beach initiative, whereby volunteers are called to action to help clean up Australiaa€™s favourite beaches. This is advertised on the Garnier website but is also promoted around the time of the event.

Another community event that Garnier participates in is the Melbourne International Flower and Garden show. At this event Garnier treats people … to a mini facial, massage or hair styling (Garnier World on Tour. 2011). People experience this within the colourful and natural backdrop of the flower and garden show. With both of these events Garnier is seeking to attract publicity and attention to its brand in a different way to traditional advertising. Philanthropic endeavours such as the sponsorship of the Love your beach initiative and handing out freebies at other events help build a positive image of the brand in peoplea€™s minds.

The running common theme in all these promotions (excluding in store specials), is the outdoors and leading active, healthy and natural lifea€™s. In this way Garnier is being consistent in the image and brand values its portraying to its consumers. 2. 0 Segmentation Theory 2. 1 Definition and explanation of Segmentation Market segmentation can be described as the process of dividing a market into a meaningful and relatively similar and identifiable segments or groups (Martin, 2011) Business use segmentation to allow them to market different products and services to different people.

People can be split into different groups through geographic, demographic, psychographic and behavioural segmentation. A particular segment may be identified through using a combination of these. Once various segments have been identified the business can evaluate the attractiveness of the segments and then decide which segments are worth marketing to and which should be ignored. Then once the target segments have been identified the business must work on product positing; that is what place the product occupies in consumera€™s minds relative to competing products (Kotler et al. 2008, 246).

In the case of Garniera€™s shampoo colour last, consumera€™s impression or feelings about the shampoo may be that ita€™s a superior quality shampoo that will do a better job than competing brands. Finally the firm must decide on the products price, place and promotion, using the knowledge gathered and decisions made in the earlier steps. 2. 2 Three Benefits of Garniera€™s brand use of Segmentation The use of segmentation provides Garnier with the primary benefit of being able to provide higher value to customers by developing a market mix that address the specific need and concerns of the selected market (Restrepo. 003). In doing so Garnier receives a more loyal customer base that will decrease brand switching. Another benefit that Garnier receives through segmentation is that they can charge higher prices for each of its products as the individual products provide greater value to or perceived greater value to its customers. A product that provides high value to a specific segment can be priced higher than a generic product that provides average value to many segments. Thus the design and marketing of products to different segments allows Garnier to charge higher prices across the board.

The segmenting of the market allows Garnier to develop and implement more effective marketing campaigns as advertising and other customer interactions can be specifically tailored to the target segment. The consumers targeted in Garniera€™s campaigns will notice and recall the advertisements to a greater degree as the consumer will feel as if the advert is talking to them specifically. 3. 0 Target Market Identification Geographic Description Geographically, Garniera€™s target market is located around the inner city suburbs of Australia capital cities.

Garniera€™s products are of course sold all over Australia as all the states have consumers with similar needs and wants. Inner city areas have very dense populations and so people are always around and close to other people, hence the need to keep their hair looking good. The climate is warm most of the year round, except for three months in winter. Demographic Description The socioeconomic status of the target market is middle class. The household is made up of an adult female (25-35 yrs), adult male (25-35yrs) and one or two small children. The female may work as a personal assistant or middle tier worker in a city firm.

The male is a manager in a large retail store or service business. Both adults have diplomas or degrees. Household income is between one hundred thousand and one hundred and thirty thousand. Psychographic Description The consumers of Garniera€™s products have lots of activities in their life including jogging, social tennis, swimming, shopping and eating out. They are interested in the latest fashions including clothes and hairstyles. They believe looking good is an indicator of success and happiness. They therefore can be classed as having busy and social lifestyles, spending much time outdoors and on the go.

The primary VALS2 category of consumers would be achievers. People categorised as achievers strive for success and achieve it, they are committed to their work and have high job satisfaction. Importantly though they like to purchase products that demonstrate their success. Garniera€™s consumers have sociable and outgoing personalities. They like to live in the moment and experience new things. They have very good inter-personal skill which allows them to be in touch with other peoplea€™s feelings and needs. They are liked by everyone and always try hard to entertain and engage friends in a welcoming open way.

Behavioural Description Users of Garnier are seeking the following benefits: Softer and silkier hair, to feel healthier, to feel clean, the repair of split ends and the prolonging of hair highlights. Women use the product frequently; using during showering once every other day or more. So is used on a routine basis rather than just for special occasions or big nights out. Consumers will be somewhat loyal to the product where they will generally buy Garnier Fructis, but may be swayed from time to time to competing products when a price promotion is on.

Some consumers may also rotate there use of different brands of shampoos, staying with each for a month or so before trying another brand. This may be motivated by the feeling that their hair becomes immune to the effects of a shampoo over time. Attitudes towards Garnier is generally positive, they like the product attributes and the brand image. Though being a staple good they wona€™t be excessively enthusiastic about the product, but will favour it in general. a€? Reference List Browne, K. 2006. Shampoo Review and Compare. http://www. choice. com. au/reviews-and-tests (accessed April 3, 2011) ColesOnline. 011. https://www. colesonline. com. au (accessed March 19, 2011). Garnier World on Tour. 2011. http://www. garnier. com. au/_en/_au/news/world-on-tour. aspx (accessed April 3, 2011) Learn Marketing. n. d. Consumer Good Classifications. http://www. learnmarketing. net/consumergoods. htm (accessed April 1, 2011) Martin, C. (2011) Lecture 3: Market Segmentation, targeting and positioning. PowerPoint slides. Retrieved from Curtin University of Technology BlackBoard Web Site: http://lms. urtin. edu. au/webapps/portal (accessed April 1, 2011) Priceline Catalogue. 2011. http://priceline. dynamiccatalogue. com. au/ (accessed April 3, 2011) Restrepo, J. 2003. Segmentation-Targeting-Positioning. http://www. eurekafacts. com/Company/documents/STPWhitePaper. pdf (accessed April 1, 2011) Shampoo: Full Report. 2010. http://www. consumersearch. com/shampoo-reviews/best-shampoo (accessed April 3, 2011) Where to Buy Garnier Products. n. d. http://www. garnier. com. au/_en/_au/our_products/where_to_buy. aspx (accessed April 1, 2011)

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