9. DISTRIBUTION

DISTRIBUTION CHANNELS

L'Oreal is the leader in the Global Cosmetics Industry. L'Oreal is broadly classified into mass sales division, professional products division, luxury products division and active cosmetics division. Matrix falls under the Professional products division of L'Oreal Paris Pvt Ltd. The Matrix Products are usually designed for small and medium sized hair dressing salons that desire to use affordable professional products. 

 The Matrix products are mainly distributed through well-established hairdressing wholesalers. It offers its distributes  a business model that allows them to be involved and participate in sales.

The distributor not only functions in storage, shipment and sale of Matrix products, but also in providing information, organizing training events and gaining new clients through its network of sales representatives. Matrix pays 75-85% of salaries to these network of sales representatives. 

Matrix products are intended exclusively for hairdresser. Selling products to final consumers directly was prohibited initially. For this reason, there were no official online sales channel. But recently in order to increase their brand value as well as market share they are selling their products through various online sales channels such as Amazon, Alibaba etc. 

8. PRICING

PRODUCT PRICING

Matrix is a brand which focuses mainly on hair care and hair styling products mainly targeting the beauty conscious female segment of the society. They broadly comprise of two ranges of products that are the core range and the advanced range. My product falls under the first category.Their pricing strategies for this particular product are the following :

• Maximum Market Skimming and Product-Quality Leadership Pricing Objectives

The Matrix Biolage launched a core range of products at a slightly higher price than most of its competitors to check whether their product is accepted in the market. Surprisingly they could reach their targets but their profits were not upto the level of their brand image in the market. So they started following the Going Price strategy and price the Matrix Biolage Deep Smoothing Serum at a price almost equal to the others in the market.

                                    

                                      They even focused on providing good experience to customers and satisfy them with this product. So they followed the Product-Quality Leadership Pricing Objective by making the product absolutely unique and harmless for any kind of hair thus enhancing brand image for their customers. This is the first 6-in-1 hair serum which can solve six major hair problems.

• Determining Demand

As there are many competitors in the Hair Care and Hair Styling Products Market the Demand curve of the product reflects that its price sensitivity is medium as it has many competitors and even the product is in its development stage of the PLC. Its Demand analysis have been done through many surveys through social networking sites.

• Estimating Costs

As this product is not much old in the market Matrix is following Target Costing Estimations at present as it is just in the development stage and they are experimenting new prices to observe and analyse the reaction of the customers.

• Analyzing Competitors' Costs , Prices and Offers

As it follows the Going Rate pricing objective it analyses its competitors' costs, prices as well as offers and discounts regularly and thus set their price or changes the price of the product accordingly.

• Selecting a Pricing Method

The product is on the initial sub stage of development stage of the PLC and so the Company is mainly focusing on Target- Return Pricing Strategy. 

They determine the price that yields its target rate of return on investment.

• Selecting The Final Price

Finally the company selects the price of the product which must be consistent with the company pricing policies and should follow certain terms and conditions. 

7. CUSTOMER-VALUE HIERARCHY , PRODUCT HIERARCHY AND PRODUCT MIX

THE CUSTOMER-VALUE HIERARCHY

As stated by Kotler "THE PRODUCT IS THE KEY ELEMENT OF THE BRAND."

The five levels of the Customer-Value Hierarchy are the following :

1. CORE BENEFIT : All marketers should mainly focus on providing benefits to the customers. The core benefit provided by my product is smooth, manageable and good quality hair. By buying the Matrix Biolage Serum the customers are actually buying good quality for their hair.
   
2. BASIC PRODUCT : Matrix Biolage produces all kinds of professional haircare products including shampoo, conditioner, serum, masque, and gel. All these products contain a blend of unique botanicals and latest technology which attracts the customers to buy its products as organic haircare products cause tremendous amount of damage to the hair. In this phase it faces a tough competition from other brands such as Loreal, Habibs, Garnier, Dove, Tresemme etc.
3. EXPECTED PRODUCT : The expectations of customers from any haircare product is smooth and damage free hair. These expectations are fulfilled by Matrix Biolage as they provide natural botanicals in their products which results in frizz free smooth hair. 
4. AUGMENTED PRODUCT : The wide variety of products produced by Matrix Biolage is worth mentioning. It provides FOUR ranges of products. 

• The CORE RANGE consists of Hydrasource, Colorlast, Volumebloom, Smoothproof, Cleanreset, Scalpsync.

• The ADVANCED RANGE consists of Fiberstrong and Keratindose. 

• The EXQUISITE OIL RANGE includes Micro-Oil Shampoo, Oil Creme Conditioner, Protective Treatment and Softening Treatment.

• The STYLING RANGE  includes many other augmented products such as Thermal Active Repair Gloss, Finishing Spritz Non-Aerosol Hairspray, Pliable Paste Matte Texturizer, Blow-In Control and Curl Defining Elixir. 

• 

My product belongs to the augmented category because it provides frizz free hair even in 97% humid weather conditions which is more than the expectations of the customer. It can also be used during blow drying the hair and hair styling of any kind without any damage.

5. POTENTIAL PRODUCT :  The wide range of products made by Matrix Biolage makes it a potential brand. It finds out new ways of satisfying the customers and even makes job easier for professional hair stylists.

"THE SECRET OF NATURE DECODED BY SCIENCE"

For further details visit  biolage.matrix.com

PRODUCT HIERARCHY

NEED FAMILY

PERSONAL CARE

PRODUCT FAMILY

          # SKIN CARE                                # HAIR CARE                           # DENTAL CARE etc.

PRODUCT CLASS

HAIR CARE PRODUCTS (L'Oreal)

PRODUCT LINE

               

                # SERUMS                                # HAIR OILS                                # HAIR SPRAYS                 

        DEEP SMOOTHING

        SPLIT END REPAIR

PRODUCT TYPE

DEEP SMOOTHING SERUM

ITEM

100ml BOTTLE OF MATRIX BIOLAGE DEEP SMOOTHING SERUM

PRODUCT DIMENSIONS MATRIX BIOLAGE

                            HYDRA           COLORCARE       SMOOTH       SCALP             OLI                 

                          THERAPIE         THERAPIE          THERAPIE     THERAPIE   THERAPIE

SHAMPOO       ULTRA                COLOR                 DEEP              ANTI-                 ULTRA

                      HYDRATING         CARE             SMOOTHING   DANDRUFF    NOURISHING

                                                                                                                                              OIL     

                                                                                                                      

               

CONDITIONER  ULTRA            COLOR                DEEP                                            ULTRA 

                          HYDRATING        CARE           SMOOTHING                            NOURISHING

                                                                                                                                              OIL

                                                        

SERUM                                                                         DEEP 

                                                                                   SMOOTHING

MASQUE       HYDRA-CREME       COLOR             DEEP                                         ULTRA

                           INTENSE-                CARE          SMOOTHING                          NOURISHING

                        MOISTURE         PROTECTIVE                                                               OIL

CREME      VITAL REPAIR      VITAL REPAIR

TONIC                                                                                                       ANTI

                                                                                                               HAIR-LOSS

                                                                                                            

GEL                                                                                                             ANTI

                                                                                                                DANDRUFF 

                                                                                                                PURIFYING                  

PRODUCT LINE :The Product Line of Matrix Biolage consists of shampoo, conditioner, serum, masque, creme, tonic, gel and hair oil.

The dimensions of the Product line can be explained as:

 PRODUCT LINE LENGTH :     

The product line length is given by the number of products in each product line. From the table above we can observe that the product line length of Tonic, Gel and Serum is one (1),that of creme is two(2),that of that of Conditioner and  Masque is four(4), and that of Shampoo is five(5).

PRODUCT LINE WIDTH :    

The product line width consists of HydraTherapie, ColorcareTherapie, SmoothTherapie, ScalpTherapie and OliTherapie.

PRODUCT LINE DEPTH : 

The product line depth is defined by the number of product lines present in the company. The Product Mix Depth determines the variety of products manufactured by the company. It determines the diversity of the BRAND.

6. MARKETING MIX -4Ps

THE 4Ps OF MARKETING

PRODUCT : 

My product is Matrix Biolage Deep Smoothing Serum which is for the people who face hair problems such as hair loss, split ends, rough and frizzy hair. This product belongs to the professional range of products of L'Oreal. 

PRICE : 

L'Oreal follows a dual pricing strategy in India wherein they have placed hair care products at an affordable price but simultaneously skin product product at a premium range .The product is pretty reasonable in comparison to other products of the same category. 260/- for 100ml. Thus it is affordable for mostly all segments of the society.

PLACE : 

This product is particularly for sale in beauty salons. It is specially useful for professional hair stylists. It acts as a catalyst for the professionals of the salons all over the world to improve their expertise by using them as distributors of these products.

PROMOTION : The promotion of this product is done through Campaigns on websites and advertisements on fashion magazines and journals. It is also promoted by hair stylists in professional beauty salons.

5. PRODUCT LIFE CYCLE(PLC) AND INDUSTRY LIFE CYCLE (ILC)

PRODUCT LIFE CYCLE 

My PRODUCT, the Matrix Biolage Deep Smoothing Serum is in the growth stage of its life cycle i.e. the second stage. It is a new product with unique organic ingredients in the market and Matrix Biolage is trying to find out other innovative ways to make it a totally different and unique product which the mass will be eager to buy once and buy it again and again. 

The Matrix Biolage is one of the professional products of L'Oreal Pvt. Ltd and is at the Maturity Stage i.e. the third stage of its Industry Life Cycle as it has achieved a position in the market and ranks third in the Hair Care products category. It has many competitors all over the world but still is one of the most unique brand in the whole world due to its exclusive range of products in the market including core and exclusive products.

4. COMPETITION

COMPETITION

The market share of hair care products among the FMCG products in India is around 9%. The main hair care products are - 

1. Hair Oil

2. Shampoo

3. Conditioner

4.  Serum

5. Masque or Hair Spa Products

6. Hair Dye and

7. Hair Colour

The top competitors of the Matrix Biolage Deep Smoothing Serum are listed below :

                                       

1. HABIBS HAIR SERUM

                                           

PRICE - Rs. 240 for 100 ml

• For dry and chemically treated hair
• Provides nourished , manageable tangle free hair
• Non sticky
• Heat Protectant
• Spreads easily through hair

2. STREAX PERFECT SHINE HAIR SERUM

PRICE - Rs. 175 for 100 ml

• Enriched with walnut oil
• Good for dry , frizzy and unruly hair
• All day long manageable and nourished hair
• Non Sticky

3. LOREAL PROFESSIONAL TEC LISS
CONTROL HAIR SERUM

PRICE - Rs. 525 for 50 ml

• Shining frizz - free hair
• Applied only in a pea sized amount
• Long lasting

4.  Kerastase Elixir Ultime
Oleo Complexe

PRICE - Rs. 2300 for 125 ml

• Multipurpose Serum
• Used as an Oil for massage
• Heat protectant before using Heating Equipments
• After wash product to add shine
• Nourishing effect lasts more than 3 days

5. JOHN FRIEDA FRIZZ EASE
HAIR SERUM

PRICE - Rs. 400 for 50 ml

• Controls frizz
• Applied on dry as well as wet hair
• Travel friendly packaging
• Protects hair from heat damage , UV Exposure and Pollutants

6. GIOVANNI FRIZZ BE GONE
HAIR SERUM

PRICE - Rs. 495 for 70 ml

• Contains Organic Ingredients and hence harmless
• Soft and silky hair
• Non sticky

7. L'OREAL SERIE EXPERT ABSOLUT
REPAIR CELLULAR UNIFIBRINE
HAIR SERUM

PRICE - Rs. 580 for 100 ml

• Enriched with Unifibrine
• Silky soft hair for two days
• Absolute repair for split ends

The other competitors are -

Khadi Smooth and Silk Hair Serum

The Body Shop Grapeseed Glossing Serum

L'Oreal Total Repair 5 Serum

Even Hair Oil Products can be considered as Competitors for this Serum.

Matrix being a product of the L'Oreal Pvt Ltd the main competitors of L'Oreal too deserve mention i.e. HUL, Procter & Gamble , Palmolive and Revlon.

3. BUYING DECISION MAKING PROCESS

BUYING DECISION MAKING

The main steps involved in decision making by customers for buying a particular product are :

RECOGNITION OF PROBLEM

Pollution and unhealthy lifestyles playS havoc with hair, and so hair serums have become a must for everyone to keep those tresses manageable, frizz-free,shiny,smooth,nourished and hydrated. Often i have heard teenagers saying "My mood depends on how good my hair looks". This is not only true for teenagers but for anybody facing problems regarding hair. This product is for all who face hair fall problems as well as have frizzy rough hair and wish they could get hair like the beautiful heroines.

SEARCHING INFORMATION 
&
 EVALUATION OF ALTERNATIVES

Customers often get confused among the options while choosing among many brands.The following are the main direct competitors of Matrix Biolage hair smoothing serum : 

• HABIBS HAIR SERUM - Applicable only for dry curly hair and chemically treated hair. 
• STREAX PERFECT SHINE HAIR SERUM 
• LOREAL PROFESSIONAL TEC LISS CONTROL HAIR SERUM - High price 
• KERASTESE ELIXIR ULTIME OLEO COMPLEXE - High price

The last two steps of Customer Buying Decision process comprises of the Purchase Decision and the Post Purchase Behaviour. 

Matrix is a very well known brand in India. Its marketing is done by Loreal Ltd. Its products are considered to be apt for majority of the youth and beauty conscious people (specially ladies). Its reasonable price and protection of hair against upto 97% humid weather condition makes it more attractive and worthy of buying.

                                                After taking reviews from many people it has been seen that people who use it once are eager to "use it again". This definitely leads to customer loyalty and brand image.

http://makeupandbeauty.com/matrix-biolage-smoothing-hair-serum-review/

THE TRIGGER FOR MY BUYING

One of my friends said "Matrix Biolage Deep Smoothing Serum is the secret of my beautiful hair". She really had beautiful shining long hair. I have curly hair which is a lot more difficult to handle in comparison to wavy and straight hair. I even straighten my hair often so my hair undergoes heat treatment which might lead to damage of hair. But Matrix Biolage contains botanicals which do not harm the hair in the long run. It keeps the hair frizz free even in humid conditions.