Ombre, Tie-Dye, Splat Hair: Trends or Fads Harvard Case Solution & Analysis

Ombre, Tie-Dye, Splat Hair: Trends or Fads Case Solution

Question 1

Which of the hair color styles product(s) identified in the case study should L’Oreal pursue? Support your recommendation with compelling arguments.

Answer)

Hair coloring was one of the most important points at L’Oreal, but the growth rate of the home coloring market was not attractive at the start of 2012. L’Orealhad a good reputation in terms of innovation and research but still it was having problems in developing new products in the competitive market.

The consumer product department of L’Oreal was involved in three main product lines:
• L’oreal Paris
• Garnier
• Maybelline
L’orealParis and Garnier were involved in hair care category, whereas Maybelline focused on the make-up category. Furthermore, there are three main categories that define hair coloring which are temporary hair color, semi permanent and permanent dyes. Permanent dyes usually do not wash away easily they should be grown or re-colored.
The largest portion of the market share was shared by the permanent dyes and the demand for temporary and semi-permanent dyes was increasing as women and men were attracted to products which were targeted to their hair style, hair type and condition ( soft, smooth, tangled).

Top 10 competitors involved in the hair dye business:

• L’OrealParis (1st position)
• Garnier (3rd position)
• Schwarzkopf (4th position)
• Clairol (7th position)
• Wella professional (10th position)

L’oreal Paris brand portfolio comprised of the following:

• The casting crème gloss brand targeted those customers who were in the initial stage and were about to start using hair dye. This brand targeted customers were mainly involved in the age bracket of 20 – 30 years.
• The preference brand, which was the oldest brand of L’OrealParis targeted those mostly women who were demanding and more sophisticated women between the age group 30 – 50 years.
• The excellence brand targeted those customers who were relatively old as compared to the rest of the market segments. Age groups over 50 years were targeted with this brand and were offered color supremacy to cover their grey hair.
There were several challenges comprising in the hair color market; firstly the market was losing its attractiveness and less innovations were coming in the market by the hair color providers and marketing strategies only revolved around developing variety in the product lines however, L’Oreal was findings ways to develop new products and wanted to extend its product line further to cater several markets which are untapped by L’Oreal and the competitors.
As social media marketing was on the rise in the hair coloring industry, customers were looking for information and trendy styles and were interested in fashion related conversations on social media forums such as the Facebook, twitter and YouTube.
Tie-dye’s popularity was increasing and was believed that the market has growing potential and targeting those customers who prefer Tie-Dye would be more beneficial because it was becoming an emerging trend. On the other hand, Ombre’s popularity was decreasing in the market as celebrities such as Giselle Bunchen was promoting a new style of highlights and lighter colored hair. Ombre’s trend was diminishing in the market and Tie-Dye was becoming the new trend as celebrities were even portraying this new trend of Tie-Dye hair coloring. Similarly, Splat hair coloring also had its followers and several companies had already launched hair coloring products in this regard......................

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