The Hindu Business Line : L'Oreal to tackle pricing pressure through stock keeping units

TRYING to strike a balance in its pricing strategy for the Indian market, `L'Oreal India Private Ltd believes that by introducing more stock keeping units (SKU's) it will be able to tide over the steep pricing of its products.

Mr Ashwin Rajgopal, Marketing Manager, L'Oreal Consumer Products, told Business Line that, "We are looking at pricing in the Indian context and there is a kind of balance we have struck. Considering the large number of SKU's that we already have worldwide, it is possible to market the products at an almost comparable pricing."

Considering the company has set up its manufacturing facilities in Pune and has also been sub-contracting its products, it has been easier for it to control its prices in the Indian market.

"For our aspirational products we have decided to adopt an international pricing strategy, which may not be the case for the rest of the products. However there is no hard and fast rule," states Mr Rajgopal.

Besides, the company has also been customising its products for the Indian market and there is expected to be a blend of both international as well as Indian formulations for its products. For instance its Garnier brand of Colour Naturals is an `Indianised' product.

Men's grooming market: Meanwhile the company has been trying to create a separate category in the men's grooming market through a range of skin care products.

Explains Mr Rajgopal, "Today almost 70 per cent of the men's grooming market comprise shaving products such as foams, creams and gels. We are looking at new space within the grooming market in the skincare range for men."

Introducing daily moisturisers, cleansers and hydrating gels, the French FMCG major hopes to tap into a hitherto untapped segment for men.

Relying on international ad campaigns: Increasing its ad spend for the launch of its new products, L'Oreal has been relying more on its international campaigns to make an impact in the Indian market. McCann Erickson in Mumbai handles the L'Oreal and Maybelline account while Publicis India is in charge of Garnier. "The ad accounts have been aligned according to our international affiliations with these agencies and we try to have a mix of both the Indian and international ads," says Mr Rajgopal.

L'Oreal India currently has three brands in its consumer products portfolio and there are product overlaps between its hair care, skin care and colour cosmetics brands. Garnier, L'Oreal and Maybelline have been defined by their price segments and positioning.

The company has been steadily increasing its product portfolio in the Indian market especially in the hair care segment. Its skin care brand of Garnier has been extended to a shampoo and hair conditioner under the Fructis brand, in spite of the presence of Garnier's Ultra Doux shampoo and hair conditioner. Its hair colouring portfolio has also been given a boost and the company has decided roped in Kareena Kapoor as its new brand ambassador for its hair colour brand of Garnier Nutrisse.

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