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Case Solution for Should Unilever Launch Shampoo Hair Color in India?

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Uploaded on July 14, 2025
Number of pages 20
Written in 2024/2025
Type Case
Professor(s) Mr sam
Grade A+

india
shraddha puri
w34187
case study solution
case solution
case analysis
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unilever launch shampoo hair color

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SHOULD UNILEVER LAUNCH SHAMPOO HAIR COLOUR IN INDIA?

CASE STUDY SOLUTION

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SYNOPSIS

Hindustan Unilever Limited (HUL) is a subsidiary of Unilever that has almost a century of presence in India
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and over 50 brands spanning various categories. It has several haircare and beauty brands, but none that cater
to the hair colour market. With established brands such as Godrej, Streax, Garnier, and BBLUNT gaining a
foothold in the Indian shampoo hair colour market, which was valued at around ₹6.77 billion 2 (US$82.72
million) in 20233 and the market estimated to grow at compound annual growth rate (CAGR) of more than
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17 per cent until fiscal year (FY) 2026,4 is it conducive for HUL to consider entering the market and increase
its customer base? The case explores the shampoo hair colour market, the major players, and the industry’s
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growth drivers. In a scenario where the shampoo hair colour market is growing exponentially, should HUL
enter the market or not? Should HUL decide to enter the market, what strategic and branding objectives should
it focus on? Should HUL extend any of its haircare brands—CLEAR, Dove, Sunsilk, Pure Derm, and
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TRESemmé—or develop a new shampoo hair colour brand? Considering that all shampoo hair colours
available in the Indian market are priced under a dollar, what pricing strategy should HUL adopt?
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OBJECTIVES

• Analyze the hair colour market and the key growth factors.
• Create a framework to assess new business opportunities and the risks of entering an untapped market
segment.
• Create a conceptual framework to examine the advantages and disadvantages of brand extensions.

The Case Solution Starts From page 5

,• Gain an understanding of segmentation, targeting, and positioning (STP) strategies for launching a new
product.
• Understand the various pricing strategies applicable to launching a new product.

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ASSIGNMENT QUESTIONS

1. Analyze the hair colour market in India and the key growth factors.
2. Should HUL launch a shampoo hair colour in India?
3. Should HUL introduce shampoo hair colour as a brand extension or create a new brand?
4. Should the company decide to launch a brand extension for shampoo hair colour, which of the HUL
haircare brands should it consider?
5. Suggest segmentation, targeting, and positioning for the new product.
6. What could be the pricing strategy for its shampoo hair colour?

The Case Solution Starts From page 5

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ANALYSIS
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1. Analyze the hair colour market in India and the key growth factors.
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The hair colour market in India has experienced remarkable growth in recent years, with a value of US$477
million in FY 2020 and a projected CAGR of over 17 per cent until FY 2026.5 The market is segmented
based on product type, product formulation, gender, application, region, and company. The market
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segmentation also includes various applications: total grey coverage, root touch-up, highlighting, and
others. Due to the growing population of older consumers, the grey coverage segment is projected to be the
leading category in India’s hair colour market. Additionally, the ammonia-free semi-permanent hair colour
segment holds the largest market share in the country. Women dominate the market in the “gender”
segment, surpassing men in terms of market share. In India, women are more inclined to explore different
hair colours and styles, whereas most men in the country primarily use hair colour to conceal their greying

The Case Solution Starts From page 5

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5. Suggest segmentation, targeting, and positioning for the new product.

To enter the shampoo hair colour market, HUL should conduct a macro-environmental analysis to identify
key market factors, segment the market, identify the target group, and formulate a positioning statement
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that aligns with the needs and expectations of the target segment.
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Segmentation

HUL can segment the shampoo hair colour market based on demographic, behavioural, and psychographic
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factors.
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• Demographic segmentation: HUL can segment customers along age lines: younger consumers (21–35
years) who are more likely to experiment with hair colour and have a higher disposable income and
middle-aged consumers (36–55 years) who are looking for a hair colour product for grey coverage and

The Case Solution Starts From page 5

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