A REPORT ON

HEAD & SHOULDERS

Name-Rohit Khandelwal

Roll no.-11bsp0832

Section-f

Subject-marketing

Topic-head and shoulders (p&g)

Introduction to Procter &
Gamble
 In 1837, Procter and Gamble was founded in Cincinnati by
William Procter, a candle maker, and brother-in-law Gamble,
a soap maker.

 Their joint venture started one of the most influential

companies in all American industry.

 The company's first product was Ivory soap, introduced in

1879.

 Several products were developed during the time period

when William Procter's son, William Alexander Procter, took
over the company (1890-1907).

 Began working in the company in 1883 and served as

president of the company from 1907-1930.
Purpose, Values & Principle

Purpose:
 Provide branded products and services of superior quality

 Value that improve the lives of the world's consumers, now

and for generations to come.

Values:
 Attract and recruit the finest people in the world

 We build their organization from within, promoting and

rewarding people without regard to any difference unrelated
to performance.
 Principle:
 Show respect for all individuals

 Strategically focused on work

 Value Personal Mastery

 Seek to Be the Best

 Innovation Is the Cornerstone of Our Success

 Mutual Interdependency Is a Way of Life

 Externally Focused

Product Introduction
Head & Shoulders is world's No.1 anti-dandruff shampoo. A
power brand from P&G, this brand made its debut in India in
1997.

In the highly competitive Indian shampoo market which is

estimated to be worth around Rs 1800 crore, Head & Shoulders is
a major player in the Anti-Dandruff niche.

The entire shampoo market was dominated by HLL with a

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 Head & Shoulders fueled the growth of
this specialty market. Now anti-dandruff segment constitutes
around 15% of the total shampoo market
Product Definition
 Cleanness and Remove dandruff

 Its new best ever anti-dandruff formula provides better

scalp coverage to get rid of even the tiniest dandruff flakes.

 What's more it gives you soft, beautiful hair that's closer to

the look you want.

 The brand used the Markonym ZPT (Zinc Pyrithine) Formula

which has anti-fungal properties as its differentiator.

Product Depth:

 Smooth and silky - (Makes hair smoother and silkier)

 Refreshing menthol and silky - ( which removes scalp itch
and provides a cool sensation)
 Clear and Balanced - (Which is said to provide right balance
of cleaning and conditioning)
 Classic Clean Shampoo & Conditioner
 Dry Scalp Shampoo & Conditioner
 Ocean Lift Shampoo
 Restoring Shine
 Refresh Shampoo
 Sensitive Care Shampoo
 Extra Volume
 Intensive Treatment Shampoo
  Intensive Solutions Shampoo

STP Analysis of H&D

Segmentation
The available segments to Head & Shoulders are:

The available segments could have been found based on

demography, geography, psychographic or Life-style. But
being an FMCG product, like shampoo, the demographic or
geographic segmentation is not as important as it is based
upon the life-style as well as customers preferences despite of
their demography or geography. The core segments were
  Shiny Hair.
 Black Hair.
 Anti-Dandruff.
 Low Price.

Head & Shoulders started operating in the Anti-Dandruff

segment. As an added benefit it also emphasized on smooth
hair.

Target Market
The target market for Head & Shoulders are the higher middle
class people who are brand conscious, early adaptors and who
care about the overall health of their hair.

The Brand-positioning
Head & Shoulders was successful in establishing itself as a
strong brand. It is under the umbrella of P & G. Its branding
strategy includes:

 Firstly, it was able to differentiate itself from other anti-

dandruff shampoos by the means of introduction of new
element ZPT.

 Secondly, Head & Shoulders was able to create a strong

appeal as a mild, caring Anti-dandruff shampoo with lots of
variants based upon consumer needs.
 SWOT Analysis

Strengths:
 International Company.

 Strong Financial position of P & G.

 Brand Loyalty.

 High Quality Products.

 Well known brand.

  Availability of Products in Different Sizes.

 Large Network for Distribution.

 Consumer Trust.

Weaknesses:
 Competition with Clinic All Clear.

 Lagging behind Clinic All Clear in terms of creative

campaign.

 Less popularity in rural areas compare to urban areas in

India.

Opportunities:
 Have a Great Opportunity in New developing areas of India.

 Consumer behavior towards brand loyalty.

 High Rates of Imported Shampoos.

 Increase in the Shampoo consumption due to awareness.

 Heavy investment in the research of Shampoo.

Threats:
 High Competition in Indian Market.

 Uncertain economic condition of country.

 Rapidly change in price of raw material.

  Threats from new entrants.

 Threats from plenty other options available to consumers.

The major marketing management decisions can be classified in

one of the following four categories:

 PRODUCT

 PROMOTION

 PRICE

 PLACE

These variables are known as the marketing mix or the 4 P's of

marketing. They are the variables that marketing managers can
control in order to best satisfy customers in the target market.

Packaging
Product
 The product has eleven varieties with five SKUs each (2 ml
and 3 ml sachet, 100ml, 200ml and 400ml pack).

 The product uses attractive white and royal blue

combination as its base packing.
  The product use a freshness essence in its packaging which,
in consumers mind, creates a positive impression.

Promotion
Advertising
 P&G’s anti-dandruff shampoo brand, Head & Shoulders, has
roped in actor Kareena Kapoor as its new brand
ambassador.

 In its advertisements, Head & Shoulders introduces itself as

a premium brand and uses the charm and beauty of
beautiful models.

 Attractive Banners and Hoardings are used extensively.

 Print media (News papers, leaflets and pamphlets etc.) is

used with exclusive high resolution attractive models.

 The emphasized is on healthy, long and beautiful hair.

Price
Strategy
 At the time of launching it used price-quality inference
strategy.
  Currently it is using reference pricing as well as value
pricing.

Policies
 Firstly, at the time of introduction it emerged as a
international premium brand and it took its full
advantage.

 After a few years when several other competitors came

into the market it continued to deliver same quality but
with value pricing technique to grab the emerging
market of India.

Place
Distribution
The distribution channel of Head & Shoulders follows the
conventional route of FMCG goods marketing, viz. Factory to
distributor to whole-seller to retailer to consumer.

Vertical Markets
Vertical market opportunities:
The vertical market for shampoos is quite promising. The
introduction of compatible hair-oil or conditioner or hair-gel is
being followed by many brands like Clinic Plus. Head & Shoulder
has these kind of products introduced out of India but it still has
its opportunity in India.

Success Metrics
 At the time of launching, the target was to capture market
from HLL.

 After gaining adequate market share, it tried to expand its

usability scope.

 After launch, Head & Shoulder was a success. But by the end
of 2000, it started to lose its market to clinic all clear due to
their aggressive campaigns.

Requirements of Success
 Maintain its quality with constant improvements.
 To come up with new varieties according to market needs.
 To maintain a competitive pricing.
 Promotion in rural and semi-urban areas.
 Special offers, discounts to consumers as well as
distributors.

 Innovative means of promotions like forming a special

association or some distinct group which will help maintain
its brand equity and loyalty.