MBA404 Consumer Behaviour: Strategic Marketing Report on Garnier

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This report provides a comprehensive analysis of Garnier shampoo, a product of L'Oreal, focusing on consumer behavior and marketing strategies. It evaluates the company and product profile, examines factors influencing consumer purchasing decisions, and highlights marketing strategies in the international market. The analysis covers social, personal, cultural factors affecting consumer behavior, and discusses advertising, sales promotions, and celebrity endorsements used by Garnier. The report also explores the relationship between consumer purchasing behavior and Garnier's marketing efforts, providing strategic recommendations to enhance sales and market presence, including efficient advertising, expanding the target market, cost-effectiveness, and capturing a wider market base. This document is available on Desklib, a platform offering study tools and solved assignments for students.
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Executive Summary
The purpose of this report is to enlighten the reader about the information of the company
Garnier shampoo. The company is owned by parent company L’Oreal. The product selected for
the below mentioned analysis is shampoo. The shampoo of Garnier is profound in the market and
earn optimum revenue as well. The report evaluates the product and company profile along with
the consumer behaviour analysis for the brand. This analysis helped in understanding the factors
affecting the purchasing decision of the customers present in the market. Further, the paper along
highlights the marketing strategies organized by Garnier in the external international market
along with the relationship between the marketing strategies of the company and consumer
behaviour against the shampoo. Further, recommendations are provided for the company to
effectively increase its sales in the target market.
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Contents
Garnier Shampoo Product Overview...............................................................................................1
Critical Analysis..............................................................................................................................2
Factors Affecting Consumer Behaviour......................................................................................2
Marketing strategies of Garnier Shampoo...................................................................................3
Relationship between Consumer Purchasing Behaviour and Marketing Analysis of Garnier
Shampoo......................................................................................................................................4
Strategic Recommendations............................................................................................................5
References........................................................................................................................................6
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Garnier Shampoo Product Overview
Garnier Company was established in the year 1904 by a French pharmacist Alfred Amour
Garnier. The organization was initially named as Laboratoires Garnier that was further taken
over by L’Oreal which is now the second best brand present in the world. Apart from shampoo,
the company has introduced many products like hair colour products, skin care products, hair
care products etc. Garnier sell its shampoo in more than 120 nations worldwide (Garnier 2018).
The company also partnered with TerraCycle to promote reusing of the bottles of the products
and introduce biodegradable packing as well. Biggest direct competitor of Garnier is Pantene and
indirect competitor is Hairprint (Cocke 2017). Further, it should be noted that the organization is
a mass market cosmetic brand of French cosmetics company L’Oreal. Garnier shampoo is highly
preferred by the people living in Asia, China and India. In brand trust report 2012, the company
was ranked 73rd among India’s most trusted brands. The L’Oreal group owned Garnier in the
year 1965, since then the company has also started producing shampoo and other products made
with natural ingredients as well.
The organization is known for providing efficient and innovative products to the customers in the
target market. The company is an international hair care and skin care brand that has various sub
brands in especially four categories and has seven areas of expertise as well. The company works
with a mission to meet the needs of women present all around the world. The organization works
with a tagline that is, ‘Stronger hair, stronger you. For hair shines with all its strength. Garnier
has recently produced a wide range of shampoos in the market according to the demand of
women present in the market. Along with the specialization in women products, the organization
also serves hair care and skin care services to men present in the market. Currently the
organization is working well in the external market but with effectively analysing the demand of
the customers present in the market, the company can easily increase the demand of their
shampoos in the market (Garnier 2018).
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Critical Analysis
Factors Affecting Consumer Behaviour
As a newly appointed manager of Garnier, I analysed that the sales rate of the organization
decreasing. Further, below mentioned are some the factors that affect the purchase decision of
the company in the target market and the marketing activities with the help of which the
organization can effectively regain its position in market. More details about the consumer
behavioural factors are discussed below:
Social Factors: The social factors of consumer include family and peer guidance and reference
groups as well. Family and peer affect the buying decision of the consumer in the market. Parent
guide their children to make choices in their environment. They help them in purchasing the
products in the market. Along with this, reference groups also hold the potential to build an
attitude in the eyes of customers present in the market. Reference groups influence the people
based on their identity and preferences present in the market (Ang, and Rusli 2018).
Personal Factors: Every buyer present in the environment possess different personal
characteristics that strongly motivates them to take purchase decisions in the environment.
Similarly, the company Garnier needs to find those group of people whose personal
characteristics align with the specifications of the product that they offer in the market.
Lifestyle: The lifestyle characteristic includes the way in which an individual spend their life.
Upper middle class people majorly purchase the product so the people having an upper middle
class life will purchase the product otherwise not. Apart from income, occupation affects the
purchase decision of buyer in the society. People having a healthy and happy life will prefer on
purchasing the products from the company (Howie, et. al., 2018).
Experience: experience is one of the biggest consumer behaviour factor that affects their buying
decision in the market. Experience of two individuals from same Garnier shampoo can differ
because of their expectations and choices. Further, if the company successfully matches to the
expectations of the buyers at first place then definitely the company will gain upper hand in the
business (Datta 2018).
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Age: life cycle and age of human also affect the choices that they make in the environment.
Children of small age group do not prefer the Garnier shampoo, however young women and men
prefer purchasing Garnier shampoo in the market. As the shampoo provide them those
supplements that can help them to increase the strength of their hair, so young people will surely
purchase the product from the company (Dholakia, Dholakia, and Chattopadhyay 2018).
Preferences and Personality: It is undoubtedly the most difficult factor to differentiate as the
personality of human being is affected by many factors including their age, economic status etc.
An organization can only have an idea about the personality and preference of customers in the
environment. It depends on people of what kind of hair care product they want for their hair, like
some people like to go for purely herbal products while other people wish to purchase natural
products that provide them quality as well quantity.
Cultural Factors: Culture in which a consumer is brought up helps them to make choices in the
environment. With the help of cultural influences, a person makes decisions in their life. So, the
culture of the consumer is crucial for the organization to picture before present the product to
them. Further, people living in same social class wish to purchase the same type of product for
their living. So, it can be said that social class also affect the decision making power of an
individual (Tanner, and Raymond 2015).
Marketing strategies of Garnier Shampoo
Advertising: The Company make use of most advantage advertisement strategies to promote its
brand name in the target market. The company make use of viral promotion strategies to succeed
from their competitors present in the industry. Viral promotions helps in the increasing the
demand of the product using social media tools and techniques. This type of marketing technique
spreads in no time that helps the organization to significantly increase the sales as well. Further,
the company also make use of innovative tagline to represent the brand in the target market.
Such advertisement strategies help the brand to create an impactful impression in the eyes of
customers (Zhang 2015).
Sales Promotion: There are various sales promotion techniques used by the company in the target
market that helps them to increase its sales in the market. Consumer oriented sales promotion
methods have been used by the organization like price-off deal, price pack deals etc. Under the
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price-off deal, the company reduces the price of the product for some time so that customers can
purchase the products in lot. This subsequently increases the sales for Garnier in the market.
Further, under the price pack deal, the customers are given something extra at the same price.
Like, the customers are given extra 10% or 20% at the same prices (Solomon, et. al., 2017).
Celebrity Endorsement: the company also make use of celebrity endorsement strategies to
increase the sales in the market. Celebrities that endorse the product form a part of reference
group who motivates the consumer to purchase the certain product in the target market. Further,
Tina Fey, Kate Walsh etc. are some of the celebrities who endorse the product in the market.
These celebrities effectively attract the customers to purchase Garnier shampoo in the market
(Godey, et. al., 2016).
Relationship between Consumer Purchasing Behaviour and Marketing
Analysis of Garnier Shampoo
Adequate alignment of marketing strategies of the company will consumer behaviour analysis
can successfully help an organization to grow and succeed in the target market. The biggest
reason due to which an organization fails to perform well is due to lack of proper understanding
about the behaviour of consumer present in the industry (Melon 2018). So, it can be said that if
the company can present the product to the customer with all the specifications that they desire
from it then Garnier can successfully achieve its sales objective in the market. Further, the
company should market the product in an easy going and cheerful manner so that customer can
also understand the theme of the product. All the specifications should be presented to the
customer at the point of sale only. This will enhance the repeated sales of the company in the
target market (Lantos 2015).
Strategic Recommendations
Efficient advertising and promotion strategies: Garnier is already using advertisement and
promotions strategies but now they should focus on changing these strategies on the basis of
demand and expectation of customers present in the market. With the help of above mentioned
consumer behavioural analysis, the company should attain information about the factors
affecting the consumer behaviour and then initiate activities accordingly. Further, the company
should initiate after sale services to increase the customer relationship in the market. Further, it
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should be noted that the company should also initiate event sponsorship strategies to attract
customers in the market (Prabakaran 2018). This aspect will help the organization to promote its
brand image in the eyes of customers.
Increasing target market: The Company usually target people that belong to upper middle
class. So, in order to increase its sales in the target market Garnier should target people that
belong to middle class group as well. This will increase the market base. Subsequently,
increment in market base will increase the prospective buyers as well. Further, the company can
introduce new product line of the company with the help of which they can target lower income
level people present in the market. Thus, increment in the target market base will subsequently
help the organization to diversify its scope of business and increase the profits for the
organization (Stephen 2016). Garnier shampoo is a product that is desired by all but some people
are unable to purchase it, so it the company will introduce a new product line then it will help
them to grow and compete in the target market.
Cost-effectiveness: This recommendation is in alignment to increasing target market
recommendation for the company Garnier. If the company will introduce a cost effective line for
their brand then they will attract more customers. This type of feature will enhance the
satisfaction level of the consumers as well. Everybody loves purchasing the same product at
lower price. So, it can be easily understood that making the product cost effective can help the
organization to grow and succeed in the target market. Although Garnier is positioned at, the
right place in the market but reduction in prices will definitely increase its brand reputation in the
market. Further, cost effective feature will help the company to introduce a new product line as
well.
Capture wider market base: the fact should be noted that Garnier currently target around 80
nations worldwide. However, according to the growth of the company, the organization should
aim to target more places worldwide. As Garnier is itself a brand of L’Oreal so the organization
gets the advantage to enjoy the market reputation of L’Oreal as well. So, the company should
add more locations in their marketing strategies. They should also conduct hair care campaigns
etc. to attract people in the business (Bamossy, and Solomon 2016).
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References
Ang, C. and Rusli, H., 2018. The Impact of Marketing Mix 4Ps and Consumer Behavior toward
Purchase Decision of Adidas Products. iBuss Management, 6(2).
Bamossy, G.J. and Solomon, M.R., 2016. Consumer behaviour: A European perspective.
Pearson Education.
Cocke, A., (2017). About Garnier [online]. Available from < https://bizfluent.com/about-
5130307-garnier.html> [Accessed on 10 February 2018].
Datta, Y., 2018. The US Shampoo Market: A Competitive Profile. Journal of Economics and
Public Finance, 4(2), p.180.
Dholakia, R.R., Dholakia, N. and Chattopadhyay, A., 2018. Indigenous marketing practices and
theories in emerging economies: Consumer behavior and retail transformations in India. Journal
of Business Research, 86, pp.406-415.
Garnier., (2018) About Garnier [online]. Available from <
https://www.garnier.co.uk/withingarnier/about-garnier> [Accessed on 10 February 2018].
Garnier., (2018) About Our Brand [online]. Available from < https://www.garnierusa.com/about-
our-brands/fructis> [Accessed on 10 February 2018].
Godey, B., Manthiou, A., Pederzoli, D., Rokka, J., Aiello, G., Donvito, R. and Singh, R., 2016.
Social media marketing efforts of luxury brands: Influence on brand equity and consumer
behavior. Journal of business research, 69(12), pp.5833-5841.
Howie, K.M., Yang, L., Vitell, S.J., Bush, V. and Vorhies, D., 2018. Consumer Participation in
Cause-Related Marketing: An Examination of Effort Demands and Defensive Denial. Journal of
Business Ethics, 147(3), pp.679-692.
Lantos, G.P., 2015. Consumer behavior in action: Real-life applications for marketing
managers. UK: Routledge.
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Melon, M.M.H., 2018. Managing Marketing Communications: A Study on Hemas Consumer
Brands Bangladesh Limited.
Prabakaran, D.J., 2018. A Study on the Influence of Advertising on Consumer Brand Preference
and Loyalty for Hair Shampoo in Dindigul District. International Journal, 6(2).
Solomon, M.R., White, K., Dahl, D.W., Zaichkowsky, J.L. and Polegato, R., 2017. Consumer
behavior: Buying, having, and being. Boston, MA, USA:: Pearson.
Stephen, A.T., 2016. The role of digital and social media marketing in consumer
behavior. Current Opinion in Psychology, 10, pp.17-21.
Tanner, J. and Raymond, M., 2015. Principles of marketing. University of Minnesota Libraries
Publishing.
Zhang, Y., 2015. The impact of brand image on consumer behavior: a literature review. Open
journal of business and management, 3(1).
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