sunsilk and head & sholder

8/18/2019 Sunsilk and Head & Sholder

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“I never knew you had dandruf”…….

Strategic Marketing

Plan


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Submitted by:

Course:

Advance Strategic Marketing

MS(Management Sciences)

Submitted to:

Sir ArifVaseer

ACKNOWL!"MN#

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In the name of Allah who blessed us to learn and gain knowledge. He is the beneficent

and gracious to all mankind.

We would like to extend gratitude to Management of Muhammad Ali Jinnah University

Islamabad and our suervisor !ir A"I# $A!%%" who afforded us the oortunity to exlore our

knowledge regarding the sub&ect Advance strategic marketing.

Words are very few to exress enormous humble obligations to our affectionate 'arents for their

rayers and strong determination to enabling us to accomlish this reort.

We also areciate the cordial co(oeration from all our grou members of the 'ro&ect and !ir

Arif$aseer for roviding us re)uisite information and knowledge for comilation of our

comlete reort.

Seria$ No% Contents &g ' *ecutive summer+ ,

- .ntroduction of com/an+ 0

1 &rocter 2 "amb$e 3

, Vision 2 mission statement 4

5 6istor+ 2 introduction of 6 2 S

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0 Customer and com/etitive ana$+sis 1

3 #ota$ sa$es 2 market s7are 5

4 SWO# ana$+sis 4

8 .nterna$ resource ana$+sis -1

Strategies -3 *terna$ environmenta$ ana$+sis 1

- Structura$ ana$+sis 15

&orter five forces

1 Va$ue c7ain ana$+sis 14

, 9eferences ,-

*ecutive Summar+:

*his ro&ect reort is about +strategic marketing lan, of Head - shoulders.it is art of our

course +advance strategic marketing, which is comulsory to comlete our course work.

*he urose of this reort is to rovide an oortunityto the students to observe the ractical

alication of marketing strategies in the business.

In this reort we have given brief history of industry comany /'-01 and roduct /H-!1.

2ustomer analysis

2ometitor analysis

Market analysis

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%nvironmental analysis

!trategic develoment

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.N!S#9; OV9V.W

*he hair care market is one of those sectors in 'akistan which has been making raid imressive

rogress. A number of these roducts are also cometing successfully in the international

markets. *he shamoo roduct manufacturing sector of hair care sector in 'akistan was newly

develoing and in growth stage of their life. Most comanies are offering the best hair shamoos

for every tye of hairs. *he cometition between comanies to rovide best hair shamoo is

really tough. *oday in shamoo market the situation is basically different because of the fact

that internationally known roducts are manufactured here. *he ranges of roducts of shamoo

are very wide. *he bulk of the market share of shamoos in 'akistan is held by two big

comanies '-0 'akistan and Unilever 'akistan. *hey control about 34 to 54 ercent share of

the total market. *he total consumtion of shamoo in the country is around 644444 tones er annum but the local manufacturers are losing market share gradually due to the easy availability

of imorted shamoos. *he multinationals involved in manufacturing shamoos in 'akistan are

Unilever 'akistan and 'roctor - 0amble 'akistan. In addition a local comany ( 7ala 7ola ( is

also manufacturing a roduct named 8ioamla.*he shamoo9s comanies can be divided into two

ma&or grous those catering to the masses and those catering exclusive to taste of the elite and

uer middle classes. 2ometition always exists in the market. !hamoo Market in 'akistan

which is very crowded and becoming cometitive day by day as there exists many shamoo in

the market such asHead - !houlders 'antene ro(v!unsilk :ove and have a tuff cometition

between them.

Head - !houlder is ever best hair shamoo which hels to reduce dandruff esecially Head -

!houlder 0reen is roven as a great acne - dandruff removal as it contains anti bacterial

ingredients and 'yrithione ;inc.

2lean - 2lear also best for dandruff and hair fall. !unsilk is also listed in 'akistani shamoos

and roviding best hair shamoos for all hair tyes.

'antene is good to revent hair loss. Although it does not sto total hair falling but its secial

hair fall formula gives nourishment to reduce hair fall.

:ove is another comany whose hair roducts are getting huge oularity recently in 'akistan

and consider as best hair shamoo. :ove is offering shamoos for all hair tyes.


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damaging and hels in reconstruction of hairs. :ove can be a best hair shamoo from hair

breakage and slit ends - its moisturi=er serum gives nourishment and softness to your hairs.

Hair care market can be divided into the following broad categories

Hair 2onditioners

!tyling 'roduct

Herbal remedies

.N#9O!C#.ON O< #6 COM&AN;

'roctor and 0amble of 'akistan is a subsidiary of 'rocter and 0amble U!A established in6??4

and started roduction in 6??6.*he '-0 2omany were founded in 6@B in 2incinnati


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&9OC#9 AN! "AM=L .N &AK.S#AN:

'-0 started its oerations in 'akistan in 6??6. #irst it introduces its brand of Head- !houlder

After that it gave brand of $icks and


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V.S.ON S#A#MN#

“To be a leading consumer goods company and

toimprove the lives of world consumers by

providing valuable and innovative products”.

M.SS.ON S#A#MN#

We will rovide roducts and services of suerior )uality and value that imrove the lives of the

worldGs consumers.

As a result consumers will reward us with leadershi sales rofit and value creation allowing

our eole our shareholders and the communities in which we live and work to roser.

*hese are the 'rinciles and suorting behaviors

Which flow from their 'urose and $alues

• *hey show resect for all individuals

• *he interests of the comany and the individual are insearable.

• *hey are strategically focused in their work.

• Innovation is the cornerstone of their success.

• *hey are externally focused

• *hey value ersonal mastery• *hey seek to be the best.

• Mutual interdeendency is a way of life

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"OALS

• *hink globally act locally

• 8uild ma&or global brands through strong rograms based on local understanding.

• Imrove the environmental )uality of its roducts ackaging and oerations around the

world.

• 'roduce )uality roducts at very cometitive costs.

• 8uild suerior relationshis with all the arties who contribute to fulfilling their cororate

urose including their customers suliers universities and government.

O=>C#.VS

• 8ring together transactional activities such as accounting and order management in a

single organi=ation to rovide services to all -g units at best in class.

• "emains on the cutting edge of the industry.

• *o be a thought leader within each cororate function.

• *o be the first consumer goods comany in 'akistan.

• 8e cometitive with other high )uality comanies in order to hel attract motivate and

retain the talent needed to lead and grow '-09s business.

• !trive to be best in all areas of strategic imortance to the comany.

ANAL;S.S O< VALS 2 &9.NC.&LS


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&2" &O&L: *hey attract and recruit the finest eole in the world. *hey build their

organi=ation from within romoting and rewarding eole without regard to any difference

unrelated to erformance. *hey act on the conviction that the men and women of 'rocter -

0amble will always be their most imortant asset.

LA!9S6.&K *hey are all leaders in their area of resonsibility with a dee commitment to

deliver leadershi results. *hey have a clear vision of where they are going. *hey focus their

resources to achieve leadershi ob&ectives and strategies. *hey develo the caability to deliver

their strategies and eliminate organi=ational barriers.

OWN9S6.&: *hey accet ersonal accountability to meet the business needs imrove their

systems and hel others imrove their effectiveness. *hey all act like owners treating the

2omany9s assets as they9re own and behaving with the 2omany9s long(term success in mind.

.N#"9.#;K *hey always try to do the right thing. *hey are honest and straightforward with

each other. *hey oerate within the letter and sirit of the law. *hey uhold the values and

rinciles of '-0 in every action and decision. *hey are data based and intellectually honest in

advocating roosals including recogni=ing risks.

&ASS.ON


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• *he interests of the 2omany and the individual are insearableK

• *hey are strategically focused in their workK

• Innovation is the cornerstone of their success

• *hey are externally focusedK

• *hey value ersonal masteryK

• *hey seek to be the bestK

• Mutual interdeendency is a way of lifeK

6.S#O9; AN! .N#9O!C#.ON O< 6A! 2 S6OL!9

Head - !houlders is a brand of anti(dandruffshamoo roduced by 'rocter - 0amble.*he idea

for Head - !houlders dates back to about 6?34 when 'rocter - 0amble research determined

that consumers were not comletely satisfied with the then existing anti(dandruff shamoos.

After 64 years of research '-0 scientists found an new and effective ingredient againstdandruff that that really workedL'yrithione ;inc. In 6?54 '-0 tested the roduct and by the

sring of 6?56 the shamoo was given its name Head - !houlders and 'rocter - 0amble

started to work on the ackaging dislays advertising and marketing rograms. Head -

!houlders was introduced to the ublic with the original roduct which was a blue(green cream

shamoo in a white glass &ar and was +clinically roven to reduce dandruff.,


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• Active suort.

• 2linical strength.

• "estoring shine.

*here are so many other available otions for both men and women esecially designedaccording to their needs. *he formula of Head - !houlders shamoo is esecially designed to

target the customers with dandruff dry and damaged hair in all age grous.

*he Head - !houlders shamoo intensive solutions available are formulated to treat itching

flaking irritation dryness and redness caused by dandruff with medicated formula that also hels

to rotect hair against damage. It removes dandruff and revents further flaking. Its formula

rovides better scal rotection and coverage to get rid of dandruff flakes u to 644. It gives

you soft beautiful and dandruff free hair with the use of &ust one roduct. It is no.6 anti(dandruff

shamoo that is recommended by most of the dermatologists. With its regular use you can have

healthy scal and flake free hair. *he rich formula is gentle enough for daily use even on the

colored hair. Head - !houlders treated hair remains soft and manageable as it deely cleanses

moisturi=es and nourishes scal and hair both. It is available for different hair tyes and textures

and these work best for fri==y damaged hair.

*he benefits of using Head - !houlders will beK

• 2ontinuous fight against dryness

• 2alms itching with =inc based actives to comfort scal

• "educes the flakes and revents dandruff from coming back

• "elives irritation

• Makes hair look more beautiful and dandruff free

*his roduct gives the best solution for the eole who suffer from dandruff irritable scal and

itching. Making dandruff and its symtoms a history from life is easy with the use of Head -

!houlders shamoo range and conditioners. *he Head - !houlder formulas are clinically roven

to get maximum rotection right from the first wash.

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http://www.qeemat.com/head-shoulder-shampoo-price-in-pakistan/http://www.qeemat.com/head-shoulder-shampoo-price-in-pakistan/http://www.qeemat.com/head-shoulder-shampoo-price-in-pakistan/


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CS#OM9 AN! COM&#.#.V ANAL;S.S:

#arget market:

*he target market for the Head - !houlder is the Higher middle class eole who are brand

conscious early adators and who care about the overall health of their hair.

#emaleK 65( 4 years

MaleK 65(4years

Consumer &rofi$ing:

Head and !houlder in 'akistani customer are offer different kinds of shamoo brand

according to their needs.

Ma?or Segmentation:

Marketing is one of the most imortant functions in business. It is the disciline re)uired to

understand customersG needs and the benefits they seek. Market segmentation is the identification

of ortions of the market that are different from one another. !egmentation allows the firm to

better satisfy the needs of its otential customers.


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!emogra/7ic:

Head and shoulder9s general market segment is younger generation. 8ut t h e y g o

w i d e i n t h i s t h i n g . * h e y s e g m e n t h i g h i n c o m e s a n d u e r class families

which can send money on the best roduct )uality in the mark e t .

&s+c7ogra/7ic:

Head and shoulder9s sy cho gra hi c seg men tat i on inc lude s eo le wi th having

good attitude about beauty sense esecially uer status regular grou otential user and non(

user.

=e7aviora$:

Head and shoulder9s behavioral segment is the class where eole love to send money on

high )uality roduct. *hat9s why in 'akistan head and shoulder is the firsts largest

s h a m o o b r a n d i n ' a k i s t a n a n d h a v e 5 3 m a r k e t s h a r e i n a n t i d a n d r u f f

s hamoo .

MA>O9 @.S#.N" AN! &O#N#.AL COM&#.#O9

!unsilk

Fifebuoy

'antene 8ioamla

:ove

Medicam

2lear

:abur$atika

#O#AL SAL MA9K# S6A9 AN! &9O


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gamble came from hair care orduct like head - shoulder and entene both are cature 34

share of total shamoo market in akistan. '-0Gs market share has been consistently increasing

in the ast five years as 'rocter - 0amble has ut an increased emhasis on establishing its

roducts in this markets. '-0 has created roducts designed secifically to target develoing

nations. "esearch - :eveloment focuses both inside and outside the comany in C464 '-0

sent aroximately C.4 billion on "esearch - :eveloment nearly 6 billion more than its

closest cometitor Unilever. *he two most imortant factors in '-0Gs innovation rocess are its

ractice of consumer demand research and its N2onnect and :eveloN "-: structure. #irst

when entering new markets '-0 sets u in(home visits with consumers in order to fully

understand the needs and desires consumers have for household and ersonal roducts. *his way

'-0 gets directly to its customers and is able to cater to their needs. '-0 also incororates

consumersG inut into the "-: rocess through its N2onnect and :eveloN initiative.

18%

30%

24%

9%

15%4%; 4%

Sales %

Baby Care

Fabric Care

Beauty

Groomig

!ea"t# Care

$ac& Care

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16%

26%

24%

14%

18%2%

Earning %

Baby Care

Fabric Care

Beauty

Groomig

!ea"t# Care

$ac& Care

COMMO!.#; &9.CS

A diversified consumer roducts manufacturer '-0 deends heavily on a wide basket of global

commodities for manufacturing its goods. Higher commodity costs subtracted 4.3 from gross

margin growth. Dearly half of the comanyGs cost of goods is directly related to commodity

goods. *he comany has increased rices due to higher costs of oil and other raw materials. '-0

instituted broad rice ad&ustments in O6 C464 to close widening rice gas in several businesses

Analysts believe ricing ad&ustments are largely behind '-0 as of OC C464 with an imact on

about 64 of '-0Gs roducts. As the market leader the comany does benefit from ricing

ower and can moderate commodity inflation better than its cometitors.

MA9K# S6A9:

*he good comanies are offering the best hair shamoos for every tye of hairs. *he cometition

between comanies to rovide best hair shamoo is really tough. We can get shamoo in

'akistan for every hair tye

*he total consumtion of shamoo in the country is around 644444 tonnes er annum but the

local manufacturers are losing market share gradually due to the easy availability of imorted

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http://www.fashioncentral.pk/beauty-style/hair-care/http://www.fashioncentral.pk/beauty-style/hair-care/http://www.fashioncentral.pk/beauty-style/hair-care/


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shamoos.

*he market for hair care in 'akistan increased at a comound annual growth rate of ?.?

between C464 and C466. *he shamoo category led the hair care market in 'akistan accounting

for a share of 36.5. At resent two multinational comanies are manufacturing four

international brands in 'akistanK 'antene Head - !houlder 'ert 'lus and !unsilk. Another

brand :abur$atika is also sold in the market. *he multinationals involved in manufacturing

shamoos in 'akistan are Unilever 'akistan and 'roctor - 0amble 'akistan. In addition a local

comany ( 7ala 7ola ( is also manufacturing a roduct named 8ioamla. *he market share of

Head- !houlder in 'akistan is almost 53 in anti dandruff shamoo.

C99N# S#9A#";:

Ma&or international brands turned u their focus on dandruff control and hair strength in their

marketing camaigns to target the secific and most common hair roblems in C466. *he

strategy was emloyed by ma&or layers such as Unilever 'akistan and 'rocter - 0amble to

retain their brands9 visibility and remain a referred choice for consumers. 'romotional messages

had a scientific ring to them as scientific evidence such as a dermatologist9s suort or

information on the ingredients of the hair roducts continued to be the ma&or theme.

*he focus of these two ma&or international layers in hair care in 'akistan continued to focus on

marketing and advertising camaigns during C464 as these leading layers strive to maintain

brand image and consumer loyalty. In a bid to retain and boost their value shares leading

manufacturers continue to focus on building brand ercetion by offering added value. In order

to achieve this many leading multinational comanies are involved in establishing a strong

media resence not only through the electronic and rint media but also through below(the(line

marketing engaging in activities including free roduct samling and events which target

secific consumer grous such as young urban dwellers.

COM&#.#.V LAN!SCA& AN! "9OW#6 #9N!S

+'-0 is now one of the world9s largest beauty comanies, /'-0 Annual reort1. '-0 states

that Head - !houlder is the world9s largest hair care brand and that it grew in double digits over

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the last two(years. '-0 claims that this success is due in art to their unsurassed hair

conditioning technology. 'rocter - 0amble 'akistan led hair care during C464 with a value

share through its brands Head - !houlders 'antene 'ro($ Herbal %ssences and 'ert 'lus. *hese

brands have a long(standing resence in the country as well as a high degree of visibility in the

media and widesread availability throughout 'akistan.

Hair care is exected to increase in constant value at a 2A0" of ?.? over the last few eriod

with this ositive but moderate erformance reflecting the slow ace of recovery in the 'akistani

economy as a whole and the lingering negative effects of the devastating floods which hit

'akistan during C464. *hese floods caused a significant amount of damage to 'akistan9s rural

areas although the ma&or consumers of hair care include affluent urban consumers who were

largely unaffected by the floods. $alue growth during the forecast eriod will deend on the high

degree of inflationary ressure imacting manufacturers and distributors the factors which have

the greatest influence on the overall retail selling rice of hair care roducts.

SWO# ANAL;S.S O< 6A! AN! S6OL!9

Strengt7:

• !hamoo market leader.

• 8east anti dandruff in 'akistan.

• Most admired brand in 'akistan.

• !ale in small ack.• %asily available in market.

• #ocused on the fri==y and dry hair caused by hair color or curling hair dryer.

• 'roduct are constantly develoing such as changing ackaging to modern and modify the

formula etc.

• It is well known in the market.

Weakness:

• *he most exensive as comare to cometitors.

• *argeting only high middle and uer class income.

O//ortunit+:

• 0rowth in the hair care market can be morethan ?.? .

• It can cature the more market share in the rural areas.

#7reat:

• High shamoo market cometitive.

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• 2onsumer is not loyal influence of switch brand easily.

• High rice as comare to cometitor.

MA9K#BS=MA9K# ANAL;S.S:


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#ec7no$ogica$ c7anges:

*here are a number of ma&or and raid breakthrough in the technology of shamoo and their

manufacturing rocess but innovations is re)uired so that the roduct does not become obsolete.

COM&#.#.V A!VAN#A"

2ometitors are an essential art of any roduct9s scheme of oerations. *he strategies adoted

by cometitors decide the oeration lans for the roduct. Under the marketing concet

comanies gain cometitive advantage by designing offers that satisfy target(consumer needs

better than cometitors offers. *hey might deliver more customer value by offering consumers

lower rices than cometitors for similar roducts and services or by roviding more benefits

that &ustify higher rices. Marketing strategies must consider the strategies of cometitors as well

as the needs of target consumers. !ome of the main oints that constitute the cometitive

advantage of '-0 in general and Head - !houlder in secific areK

'-0 is one of the largest #M20 comanies in the 'akistan and world. Its main cometition is

with Unilever which has almost e)ual resence in the 'akistan and world. 'rocter and 0ambles

sales @C billion in worldwide. Head - !houlder is known worldwide. It was the best selling

hair care line in 6??6. Head - !houlder is known to create healthy shiny hair. '-0 has one of

the largest advertising exenditures in the whole world. #ollowing is the 'roctor- 0amble9s

advertising exendituresK In C466 '-09s advertising exense reached C billion. '-0 is known

for its innovation. It has a large diverse ortfolio of roducts.

Head -!houlderPs customer base is also its very significant cometitive advantage. It targets

women and girls and they constitute its loyal customer base. Head - !houlder has a good 8rand

%)uity and there are always new kinds of hair tyes that it markets to. '-0 intends to build

brand e)uity by develoing distinctive roducts that stand for something and that have a definite

osition in the market. *hey want to communicate the roducts benefits as comared to the

cometitor with a brand that is so ama=ing aealing and reliable that the consumer begins to

trust the bran

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.N#9NAL 9SO9CS ANAL;S.S

MA9K#.N" 9SO9CS

Marketing resources are very critical for every organi=ation because it leads to the erformance

of a comany. An organi=ation with worthwhile marketing resources can fetch high sales and

rofit. Marketing resources include following ingredientK (

• 8readth and deth of roduct line

• Market share

• Marketing information system

• :istribution channel

• Market coverage

• 2omany image

'-0 is doing concentrating efforts on the best )uality growth oortunity in the whole shamoo

market.

=9A#6 AN! ! O< &9O!C# L.N

'-0 has launched one shamoo in the market of 'akistan in 6??6 named head - shoulder.

*herefore they have different roduct deths are available roviding by '-0 as comared to

their cometitors in case of shamoo. In the deth they haveK(

Head - !houlders now comes in a new ack(design and logo in six variantsK

•

Head - !houlders !mooth - !ilky• Head - !houlders "efreshing Menthol

• Head - !houlders 2lean and 8alanced

• Head - !houlders !ilky 8lack

• Head - !houlders Daturally 2lean

• Head - !houlders Dourishing Aloe $era

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6MAN 9SO9CS

'-0 'akistan is determined to create a way of working that release the energy and talents of

everyone in the comany and stris away everything that stifles creativity. It aims to be a

comany in which very emloyee knows what is exected of them has the freedom to take

initiatives is accountable for the results and is roerly rewarded for success.

At resent more than 44 emloyees are emloyed in '-0 'akistan and in order to enable their

emloyees to achieve what is exected of them the comany has a well established rogram for

the training and a system for the measurement of their erformance.

Human "esources ensure that '-0 has the emloyees organi=ational design and work culture to

deliver business roductivity and to continually imrove consumer emloyee and shareholder

value.

9SA9C6 AN! !VLO&MN#

+It is our olicy to continue ushing the enveloe when it comes to develoing validating and

using new alternative test methods so we can reduce our need to do animal testing and our

ultimate goal is to eliminate it.,

S6A9 6OL!9S

!hareholders are imortant stakeholders at '-0. '-0 has 6. billion shares of stocks

outstanding. Farge institutions and mutual funds retirement rograms individual investors and

emloyees throughout the world own these shares. Individuals hold aroximately 34 ercent of

their shares with nearly C4 ercent held by emloyees and retirees. *hey work to increase the

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value of '-0 stock for all their shareholders in a variety of ways including growing the

comany9s sales and earnings each year. *hey measure for tracking their success for shareholders

is total shareholder "eturn /*!"1. *!" measures how much value their investors receive as a

result of owning '-0 stock. *hey track *!" against C? comanies in similar industries such as

consumer health care and beauty roducts. '-0 tracks erformance to comensate key

managers based on how well they increase shareholder value. *heir !hareholder "elations team

is available every day to answer )uestions listen to shareholder feedback and rovide

ersective on 2omany decisions.

MA9K#.N" .N


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• !ociety

• 2ustomers

• %mloyees

'-0 has adoted all its ways to achieve this aim which will lead to a better cororate image of

the comany in future. If they got a chance to see the advertisement of '-09s head and shoulder

customer satisfaction and environmental safety are emhasi=ed.

As exlained above that comany image can be used as marketing resource. :ue to the image

eole are attracted to '-0. *hat9s why market hels the sales force to ersuade the customers.

In this way '-0 is using cororate image as a marketing resource.

MA9K# COV9A"

As far as head and shoulder is concerned '-0 is emhasi=ing only on urban areas while rural

areas are neglected because their target market is middle and uer class and this class is mostly

located in urban areas. *herefore due to their roduct features their market coverage is better.

9SA9C6 AN! !VLO&MN#

With resect to "-: '-0 'akistan has a strong back from the '-0 worldwide network of

research and develoment '-09s innovations is a ma&or cometitive strength and is driven by

the market lace. *he comany sets out to deliver the customers the right science with the right

rocesses at the right lace. It must be seen to rovide a )uality of service which is the best in

the market. '-0 is sending millions of dollars in "-: worldwide while they have "-: cells

in the countries in which the oerations of business are going on. *hese "-: cells are

resonsible to identify the technological breakthrough taking lace in these countries. *hey are

mostly customer oriented for which they test the roducts in the market and then introduce it to

the whole target market.


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due to increase in sales on C4 of head and shoulder in C466. Along with this internal resource

generation cororate name is at its back as sound credit worthiness for any borrowed fund.

&9OMO#.ON AN! A!V9#.SMN#

&9OMO#.ONAL S#9A#";

&romotion too$s

• Web marketing

• Detworking

• 2ontests

• Advertising sonsorshi

• !ocial awareness

*he romotional strategy of head and shoulder is highly useful and effective. Using maga=ine

rint advertisements and commercials allows for the oortunity to segment their advertisements

by secific maga=ines secific *$ shows and secific time slots. *hese strategies rovide

'antene with the oortunity to wisely advertise to their target audience.

Without romotion the brand would be relatively unknown and its oularity would not be near

what has been established with romotion. Many times when a consumer sees a roduct in the

store that they have not heard of they will browse over it and choose a roduct they know.2onsumer and market knowledge are revalent because head and shoulder and '-0 are built

around what consumers want.

'ublic "elations is a large asect of the '-0>head and shoulder romotional mix. large factor

for head and shoulder they use marketing and business techni)ues to try and imrove

consumer9s lives. *hey are always finding new and better ways to reach their consumers and

between their '" camaigns and advertising they are constantly aealing to consumers and

causing them to trust head and shoulder.

*he urose in using asects of the romotional mix is to build brand e)uity brand awareness

and fre)uently ut our advertisements and name into the ublic to be seen. *he fre)uency in

which the ads are seen is as imortant as the message we are roviding.

%ndorsersK global celebs like 'akistan cricket layer like shahid khan afridi. In indiakarina

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%ach collection includes a shamoo conditioner treatment and styling roducts that hels the

consumer achieve their uni)ue look. Dot only did they change their roducts to match the

consumer9s desired style they claim to have imroved their technologies. Hair care comanies

are building on the desire for women to maintain a young natural and fresh look. Marketers are

also beginning to key onto teenage girls more. 0irls ages 63(6? increased sales 6C from C44@(

C466. Head and !houlder9s romotional tactics are ideal and we feel they are aroaching the

target audience well.

S#9A#".S

&9.C.N" S#9A#".S

'-0 always emhasi=es head and shoulder as )uality roduct and they try to differentiate it as

comared to cometitors. 8ut they have set the rice of

head and shoulder which is e)ual to the ma&or cometitor roduct !unsilk and :ove . *herefore

we can say they are somewhat following cometitive rice strategy.

!.S#9.=#.ON S#9A#".S

As described earlier that '-0 is distributing head and shoulder through International 8rands

Ftd. distribution network which is a renowned distribution comany. In each I8F office there is

an Area !ales manager of '-0 who is resonsible to watch the activities of I8F regarding

distribution of !afeguard and make direct contact with customers to obtain the comlaints.

&9O!C# S#9A#".S

Head and !houlder is )uality roduct and '-0 do not comromise on )uality. *herefore in

roduct strategy they are following differentiation strategy. *here are the marketing strategies of

head and shoulder but there are a grou of strategies which determine the strategies of comany

regarding a roduct.

• Market enetration

• Market develoment

• 'roduct develoment

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MA9K# &N#9A#.ON

Market enetration means to exloit the available consumer efficiently to achieve high market

share. *his is robably done for a roduct which is at the growth stage. Market enetration can

be done through heavy advertisement and by roviding roducts of different si=es and tyes for

different consumers. #or this urose highly extensive distribution channel should be used.

MA9K# !VLO&MN#

In market develoment strategy organi=ation should find the new uses of roduct new segments

and entering into new geograhic areas. !till head and shoulder is being used for shining and

germs rotection urose focusing on urban areas and more emhasis on middle and uer

class.

&9O!C# !VLO&MN#

#or roduct develoment develoment of internal resources is emhasi=ed. *herefore '-0

should ac)uire one more roduct or manufacturing lant for the roduction of head and shoulder

to cature the wide market. #or head and shoulder '-0 is intensifying the efforts to increase the

market share in growing industry because shamoo industry is growing with an annual rate of

?.?. *herefore we can say they are following consolidation strategy for head and shoulder

because they are intensifying their efforts on advertisement and romotional activities.

S#9A#".C &9O=LM

' - 0 is facing the roblems in the following areasK

• *here is gradual increase in the substitution of Head and !houlder due to its higher rice.

*here is also great cometition in the local 'roducers due to low rice shamoo and also

great cometition in the organi=ed sector due to e)ual si=e of the cometitive

organi=ations.

• As far as Head and !houlder is concerned '-0 is emhasi=ing only on urban areas

while rural areas are neglected.

• ' - 0 is Unwilling to serve low(income market.


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uer class middle class and lower class each class with resect to different rices. Head

and !houlder9s 'rice is esecially very high towards lower income grous.

• '-0 itself has no distribution channel for Head and !houlder rather they are distributing

the Head and !houlder through International 8rands Fimited /I8F1. *his is also the

reason for the high rice.

&O.N# O< !.


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&roduct design:

*he design of the bottle head and shoulder is attractive for its customer.

Satisf+ and $o+a$ customer:

:ue to the high )uality of the roduct the 'rocter - 0amble is committed to roviding roducts

and services of suerior )uality and value that imrove the lives of the worldGs consumers. *he

customer of '-0 are fully satisfied with the roduct and they are also loyal to the comany

!istribution:

*he distribution channel of head and shoulder follows the conventional o route of #M20

marketing factor to distribution to whole seller to retailer to consumer. Head and shoulder has

the strong distribution channel it can be available every where and customer can not find any

difficulty to buying this roduct.

=9AN!S .N &AK.S#AN

• Head - !houlder

• 'ert 'lus

• $icks

• 'entene• "e&oice

• 2amay

• !afeguard

• 'amers

• Always

• Ariel

@#9NAL NV.9ONMN#AL ANAL;S.S

Nature of t7e environment

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http://www.blogger.com/post-edit.g?blogID=5956563483849053115&postID=4708433979752452553http://www.blogger.com/post-edit.g?blogID=5956563483849053115&postID=4708433979752452553


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'-0 head - shoulder is oerating in a comlex and stable environment comlex because there

is a number of factors in its environment about which less information stable because the

changes in these factors is redictable factors which makes its environment comlex areK

9etai$ers

A grou having strong influence over the oinion of the consumers regarding which shamoo

should be urchased. *his grou is becoming more and more concern to their own

incentives>margin.

Loca$ /roducers

!mall head - shoulder shamoo manufacturing units having no or very low overhead charges

under fix tax system or hidden units evading tax and growing like mushroom involve in the low

rice shamoo war exloiting consumers through retailers.

9eference grou/

'eole having social influence on their neighbors also affect on the sale of shamoo.

#ec7no$og+:

Moderate changes in the technology of shamoo manufacturing decrease the QQQQQ...

rbaniDation:

Increase in rate of urbani=ation esecially in 'akistan has made the environment more comlex

of shamoo industry.

SWO# ANAL;S.S O< &2"

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S#9N"#6S

• Heavy and imressive romotional lan for head and shoulder.

• 'roduct innovation

• !trong social - cororate image of '-0.

•

!trong financial osition of comany.• !trong customer loyalty.

• !trong brand image.

• More concern towards total )uality management.

• Highly health caring roduct.

• :iversified business structure.

• :irect contact with customers.

• '-09s good relations with the sulier.

• !trong emhasis on environmental roserity.

• Worldwide research and technology engineering and manufacturing.

• Well(established and renowned distributors.• Highly enthusiastic sales team of the comany.

WAKNSSS

• Unwilling to serve low(income market. 'rice is esecially very high towards lower

income grous.

• Increasing romotional sending to kee healthy sales.

• 2ustomer concentration

•

"eductions in cash flow levels• Mature Markets

• High customer concentrations

O&&O9#N.#.S

• *he shamoo market is growing at an annual rate of ?.?. *he main reasons for this

growth areK "aid growth in oulation High urbani=ation Increase in awareness

among eole about new advancements. :ue to this growing market there are lots of

oortunities for '-0 to exloit this growing market by introducing new shamoo

brand.

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• :ue to rising awareness among eole switching trend toward health hair care shamoos

is high. *herefore it is a good oortunity to cature this segment through efficient

marketing ractices.

• !elling direct to the customer.

• 8etter roduct exerience.• 0ood growth otential in the Health and8eauty segment

• 0rowth otential of domestic retailers

#69A#S

• Increasing market share of local 'roducers. *he local 'roducers are laying an imortant role

in shamoo industry because they are roviding low rice shamoos and try to enetrate in

their local market by relacing the branded roducts.

• Increasing cost of raw material

• !ubstitute brand that have a cheaer rice.

• Increasing inflation in the country is also a ma&or threat of '-0 because it is reducing the

urchasing ower of consumers.

• High levels of cometition

• "aw material and energy rice increases

MA>O9 S#9A#".S:

=usinessE$eve$ Strateg+

'-0 with the largest roduct ortfolio in the consumer roducts industry faces significant

challenges maintaining cost efficiency and scale economies while creating innovation and

differentiation.

*he comany is divided into four illarsK

6( 0lobal 8usiness UnitsC( Market :eveloment


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its four core categories 8aby 2are #eminine 2are /31 #abric 2are /aroximately 41 and

Hair 2are /greater than C41. *o achieve sustainability and continued growth '-0Gs strategy is

to continue to innovate and sell roducts that aeal to retail trade customers and consumers

roviding ricing and roduct that adds value for the customer while imroving efficiencies in

sales and oerations with their ongoing restructuring and technology enhancements and )uickly

resonding to cometitive advancements. *heir comrehensive research network and C8 of

research sending annually suort their innovative focus. And are technology innovators for

imroving efficiencies and reducing costs such as with bar coding and wireless technologies.

With their market knowledge and focus on efficiencies. *hey excel at Ndemand chain lanningN

identifying their Ntarget marketGs re)uirements and designing the suly chaining backward

from that oint.

"$oba$ Strateg+

'-0 has made substantial investments globally and used ac)uisitions &oint ventures and

alliances to exand their market understanding and reach. 7ey to exansion are three

cometencies '-0 has develoedK

6( understanding of the foreign marketlace

C( ability to manage eole in foreign markets

( skills at managing foreign subsidiaries.

*heir global strategy includes innovation increasing market share on base business while

focusing on each business as well as on each industry and investing in the develoing

marketlace. '-0 has gained substantial market knowledge has innovative databases including

over 644 million consumers across 4 countries utili=es a blend of local and exatriate

managers and rovides training global resource centers and artnershis and alliances for

managing foreign subsidiaries all successful activities that romote local accetance and a

climate enabling knowledge transfer.


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'-0 markets over 44 roducts in 654 different countries. '-0 grous its business into two

categories

6( foundation business

C( higher growth business.

'-0 is aware of their core roducts and business foundation but also understands that the

develoment of new roducts through innovation research and develoment is the key to

maintaining its cometitive advantage. '-0 should continue its current successful strategy.

S#9C#9AL ANAL;S.S

&orter mode$%

!tructural analysis hels to analy=e the cometitive rocess as well as the sources of cometitive

ressure. In the structure analysis certain )uestions like what are the strengths of these ressures

what tye of cometition is revailing and what future cometitive conditions will be included.

0enerally there are five forces which affect the cometitive osition in an industry and these

forces are as followsK(

61 2ometitive rivalry

C1 8uyer9s ower

1 !ulier9s ower

1 *hreat of new entrants

31 !ubstitute roducts

COM&#.#.V 9.VAL9;

2ometition is concerned with the degree of rivalry within the industry. :anger of rivalry

is greater when the cometitors are of e)ual si=e. In the shamoo industry the

cometitors areE

!unsilk

Fifebuoy

'antene

8ioamla

:ove

Medicam

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2lear

:abur$atika

!o cometition is very tight. "ivalry is greater between these three firms due to their e)ual si=es.

!hamoo industry shows growth rate which is ?.? er annum. It seems that it offered very

lucrative business oortunities but these oortunities also carry threats with them. 8ecause to

cature the high market share an organi=ed distribution channel is re)uired for this industry

which carry heavy cost.

#69A# O< NW N#9AN#S

'-0 ossess a significant amount of market share in 'akistan. It is generally said that the

industry where the threat of new entrants is low the industry is considered to be secure and

attractive. In the case of shamoo industry the barriers to new entrants are large initial caitalre)uirements and roduct differentiation as well.

Also the available shamoos have a strong image among consumers and it is very difficult for

new comers to break that image. :ue to these reasons the threat of new entrants is low but not

=ero. 8ecause there are chances that I2I may enter into the shamoo industry. Anyhow it is very

difficult for new comers to enter into the sham44 industry. *o comete '-0 a cometitor must

have a large sums of caital for heavy marketing and "-:.

#69A# O< S=S#.##S

!ubstitute means a roduct which can erform the same functions as the original roduct can

erform. !ubstitute of the head and shoulder anti dandruff is :ove and 2lear and clean

shamoo. !ince the )uality of these substitutes is not comarable. !o there is low threat of

substitute to the shamoo. 8ut due to rise in inflation in the countrythreat of the substitute of

high rice shamoo like head and shoulder is gradually increasing.

=;9FS &OW9

When there are a few number of buyers those urchase the large ortion of a comany9s sale

then in this case they have maximum ower. 8ut in the case of shamoo industry the buyers are

the distributors to whom bulk amount of roducts is sold and this sale is maximally on the cash

basis. !o the buyers have no handsome ower to interrut or interfere in the !hamoo industry.

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S&&L.9FS

!ulier9s ower is less because they are having suort from their arent comany fraw

material and technological assistance. !ulier of '-0 need key customer for rofitability

revenue generation and will have little bargaining ower. "ising interest rate and decaling

availability of credit ultimately should not affect '-09s relationshi with is sulier.

Value Chain Analysis, P&G

$alue 2hain Analysis describes the activities that take lace in a business and relates them to an

analysis of the cometitive strength of the business. $alue 2hain Analysis is one way of

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identifying which activities are best undertaken by a business and which are best outsourced. It

suggests that the activities of a business could be

6. rimary activities

C. suorting activities'

1. Primary Activities( *hose that are directly concerned with creating and delivering a

roduct /e.g.

2omonent assembly1.

Sourcing and &rocurement /sourcing suly lanning materials rocurement1

"elating this model to '-09 it could be imlied that H-! raw materials are sourced

and or rocured from all over the world wherever it would be cost(effective. It is thus no

surrise

that for a number of years it had focused on ways to imrove suly chain efficiency and costs. It

now

has a owerful industrial network linking electronically to ma&or suliers and customers. *his is

to the

extent that it changed comanies when efforts to reduce inventory levels only roduced marginal

imrovements.

O/erations (assembly branch oerations1

'-09s oerations had four business unitsK health and beauty babies snacks and beverages and

fabric

and home care. It offered more than 44 roducts including ma&or brands like *ide. It has been

aggressively using roduct lifecycle management software since C444 for new roduct

develoment.

*he comany uses Matrix


39/42

suly chain rocesses with its owerful &ust(in(time continuous inventory relenishment

system. A

database is used to hold information about work rocesses vital for creating reviewing

aroving and distributing roducts. *his enabled the comany to lower its costs on item such as

igments and chemicals and to reduce develoment time.

Sa$es and Customer Service /sales order rocessing customer suortaccording to the Wal(

Mart was '-09s largest customer accounting for nearly C4 ercent of its sales and could be

resonsible for one(third of '-0 global sales by C464. Wal(Mart caitalised on this osition to

force '-0 to sell wares to them at the cheaest rices ossible.

-% Su//ort Activities

It is rare for a business to undertake all rimary and suort activities.


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6uman 9esource Management (recruiting training com/ensation)

P(G bega to u&e i)ormatio &y&tem& to &u**ort #o+ "earig occurre, +it#i t#e

com*ay'

-t create, a itraet t#roug# +#ic# e+ em*"oyee& cou", et+or +it# e.*ert&/

"ear )rom *roect& a, receie a&+er& to *ertiet ue&tio&' #i& &y&tem

ecourage, e.*ert& to are t#eir o+"e,ge +it# e+bie& t#roug# a im*"icit

com*e&atio or re+ar, &y&tem' Furt#er/ #uma re&ource +a&

*roi,e, +it# too"& t#ey ee,e, to e#ace t#eir tra,e' For e.am*"e/ maretig

*er&oe" +ere gie

Marketing an Avertising

#e com*ay em*"oye, t#e u&e o) o+"e,ge &y&tem& to maage maretig' -t a"&o

u&e& a ery &ma""

i)ormatio' &ig i)ormatio tec#o"ogy i maretig #a, bee igore, i t#e

*a&t becau&e t#ey &a+ it a& com*"e.' P(G& ariou& bra,&/ *ro,uct "ie&/

cu&tomer&/ a, ee ,ieret maretig grou*& eac# u&e, t#eir o+ i,e*e,et

&o)t+are )or &ome )uctio&/ ic"u,ig emai" a, maretig cam*aig maagemet'

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9eferences:

GGG%7ead2s7ou$ders%com

GGG%ansGer%com GGG%/2g%com

GGG%goog$e%com
http://var/www/apps/conversion/tmp/scratch_4/http:%2F%2Fwww.head&shoulders.comhttp://www.answer.com/http://var/www/apps/conversion/tmp/scratch_4/http:%2F%2Fwww.p&g.comhttp://www.answer.com/http://var/www/apps/conversion/tmp/scratch_4/http:%2F%2Fwww.head&shoulders.comhttp://var/www/apps/conversion/tmp/scratch_4/http:%2F%2Fwww.p&g.com

sunsilk and head & sholder

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