Professional Documents
Culture Documents
Project Report On Head and Shoulders Shampoo Marketing Essay
Project Report On Head and Shoulders Shampoo Marketing Essay
Project Report On Head and Shoulders Shampoo Marketing Essay
INTRODUCTION:
Procter & Gamble (P&G) is an American company headquartered in downtown
Cincinnati, Ohio, USA. Its products include foods, beverages, cleaning and personal
care products. In 2011, P&G recorded $82.6 billion dollars in sales. Fortune magazine
ranked P&G at fifth place of the "World's Most Admired Companies" list, which was up
from sixth place in 2010. Procter & Gamble is the only Fortune 500 Company to issue C
Share common stock.
As of July 1, 2011, the company structure is categorized into two "Global Business
Units" with each one further divided into "Business Segments" according to the
company's 2011 Annual Report. Dimitri Panayotopoulos is Vice Chairman of Global
Business Units.
Beauty segment
Grooming segment
Manufacturing operations are based in the following regions: United Sates of America,
Europe, Canada, China (31 wholly owned factories and other part of Asia, Philippines,
Africa, Mexico, Australia, Latin America.
Head & Shoulders is the world's number one anti-dandruff shampoo. A power brand from
P&G, this brand made it debuted in India in year of 1997. In the highly competitive
shampoo market, which is estimated to be worth around Rs.1800 Cr, H&S is a major
player in the anti-dandruff niche.
The entire shampoo market was dominated by HUL with whopping market share of
around 46% when the brand was launched in India, the anti-dandruff market was in its
nascent stage and dominated by Clinic-All-Clear. The high profile launch of H&S fueled
the growth of this specialty market. Now anti-dandruff segment constitute around 15% of
the shampoo market moreover P&G is the global market leader in the retail hair care
market with over 20% of the global market share behind Pantene and Head &
Shoulders. According to P&G's annual report of 2011, the Beauty and grooming market
share which primarily deals with the beauty segment constitute of '% of net sale of 24%
and percentage of net earning account to 23%' for P&G. The prominent brand is Head
and Shoulders in this segment.
Only segmented as an anti-dandruff shampoo whereas the competitor has wide range of
shampoos with different features.
Brand loyalty.
Opportunities
Threat
With the inclusion of FDI policy, P&G can revive its brand equity.
Expansion of market aimed towards all age groups, including middle aged women which
has significant market share.
High competitive market with new entrants like L'oreal and Dove in shampoo segment.
Stars: This tiles represents the high growth rate and high market share i.e. the business
is leader in its area.
Cash Cows: This tile represents high relative market share and low market growth rate.
Question mark: Here the growth rate is high but the market share is relatively low.
Dogs: This is segment where the growth rate is slow and has low market share as in the
business is lagging behind considerably.
Head and Shoulder can relatively be positioned in between the cross-sectional area of
'Question mark and Star'. The reason can be: The market share of H&S is low but the
growth rate is high. H&S needs to re-plan and revise it marketing plan as the opportunity
is ample which can make into star category completely.
Customer Value:
Customer value can be defined as the consumer get in return to their money. The
performance of a company is measured how the product or services gives the customer
value in compare to what the competitor are offering.
Here H&S claims that the shampoo delivers 100% dandruff-free hairs even with low
price, hence we can state that H&S delivers good customer value and satisfaction level.
The value delivery chains relates it-self to supply chain i.e. how it partners with suppliers
and distributions from formulating raw material and distribution of its produced. H&S
being a P&G's daughter company, takes a good leverage of good distribution channel
and supply chain. Prominently H&S sold in India is mostly shipped from Gulf countries.
With the introduction of sachets of denomination Rs.1 and Rs.3, H&S reached the rural
market easily. With more and more free sample distribution and blind-test, the company
is quite successful in value delivery chain.
Marketing plan:
H&S is basically a product for men and women with dandruff and scalp problems. The
want to acquire proper hygiene, maintain a healthy scalp and hair to gain the right
confidence and have a sense of belongingness as they socialize/interact with other. The
gap is that the other shampoo brands focus on enhancing or improving hair-condition.
Customer
Stakeholder
Media
Public
Competitor
Supplier
Employee
Macro Environment
Political Environment
Technological Environment
Socio-cultural Environment
Economical Environment
Men and women expect the following when the use H&S:
Dandruff elimination
Revitalize scalp
Safety
Social
Esteem
Self actualization.
Untitled.png
Marketing Research:
Marketing research tools used by H&S-
Quantitative tools- H&S undertook research to generate new ideas for the product and
market development. The researches engaged the customers in detailed discussion
over different features of their products. As a result the personal interaction between the
researches and the consumers was high, the major qualitative tools used by H&S
included
in-home visits
in context visits
in-store interviews
Focus group discussions: Here, a group of people who uses the H&S shampoo in
brought under a discussion about the every aspect of it including quality, after-use
satisfaction, thoughts of the user etc. The discussion is presided by a moderator who
takes notes and feedback of the customers.
In-Home visits: This technique is more used in western countries where the product is
taken to a home and then feedback is taken from a individual.
In context visits: To observe to practical difficulty consumer faces. Apart from gaining
information on the way consumer actually uses a product, the researcher elicits theirs
opinions on the product and weather they wish to suggest any modification.
In-Store visits: H&S used this strategy extensively to gather the information from the
consumer right from where it buys the product. The surveyor uses some questionnaires
to know the consumer's opinions which helps the company to develop further strategy.
Segmentation, Target and Positioning:
Segmentation: A market segment consists of a group of customers who share a similar
set of needs and wants. Rather than creating the segments, the marketers' task is to
identify them an decide which ones to target.
Anti-dandruff
black hair
shiny hair
low-price
Target Market:
Target market is the section of consumer which the business has decided to put
marketing efforts. Target market is done after segmenting where they filter out the
localized group and choose a particular section of consumer so that their product
provides adequate brand equity and brand value.
The target market for H&S are the higher middle class people who are brand conscious,
early adopter and who care about the overall health of their hair. H&S targets the people
of middle age men ( in the beginning) having scalp and dandruff problems. At the initial
period of its marketing strategy, it showed advertisement which show the facts with only
one use of the product, the shampoo gives almost 100% relief from shampoo. It
introduced many other features like menthol, volume boost, hair-fall therapy for the
college going youth and young professional with hair conscious. H&S took the
advantage of physiological mentality of this user group with adopting ads where
prominent actors were used.
Positioning
Brand positioning refers to "target consumer's" reason to buy your brand in preference to
others. It is ensures that all brand activity has a common aim; is guided, directed and
delivered by the brand's benefits/reasons to buy; and it focusses at all points of contact
with the consumer.
Is it sustainable - can it be delivered constantly across all points of contact with the
consumer?
H&S is positioned as anti-dandruff product which clear flakes with one wash. As the
market leader it has successfully acquired the niche market of anti-dandruff segment.
The effective distribution channel and deep penetration in the rural market has boosted
up the sales in past year making it a leader. According to annual report of H&S 2011 the
quote states "H&S was relatively small, primarily north American brand a decade ago.
We invested in combination of marketing and product innovations and began to expand
the brand globally. Since then w have more than tripled sales and H&S is now the
largest shampoo brand in the world."