Principles of Marketing: Head and Shoulders vs Pantene
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This report covers the marketing principles of Head and Shoulders and Pantene, including target market, product/brand, price, place, and promotion. It analyzes the effectiveness of their marketing strategies and compares their market share, product offerings, pricing strategies, distribution channels, and promotional activities.
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Table of Contents INTRODUCTION...........................................................................................................................1 FINDINGS.......................................................................................................................................1 CONCLUSION................................................................................................................................4 REFERENCES................................................................................................................................5
INTRODUCTION This report covers the Marketing Principles namely- Product, Price, Place and Promotion together known as the “4Ps” of marketing. These 4 components should be used in a proper manner in order for the marketing strategy to be effective. The brands chosen for this report are Head and Shoulders Shampoo and Pantene Lady's Shampoo. Being a renowned name in the hair care industry, Procter and Gamble are market leaders with earning a total of 20% from both Head and Shoulders and Pantene Shampoos. This report is aimed at carrying out in-depth secondary research about the two chosen brands and analyse the effectiveness of marketing mix for them. An overview of the brands is provided with their values and competitive positioning. FINDINGS Target Market –Head and Shoulders shampoo targets brand conscious higher middle class people, people who care about their hair and early adopters. The brand mainly focuses on men of middle age who have dandruff problems with initial advertising done showing that the shampoo is almost 100% effective from the first use. Many other features were introduced to the product in the later years such as volume boost and hair-fall therapy for the younger segment. Pantene on the other hand has a target audience of women who are in their mid-to-early 40s, who are more proactive on living a healthy lifestyle and feel more confident when their hair look good. Since most commercials in the market are targetted towards women, men are never implied on using these products. Therefore, Head and Shoulders has taken the advantage of offering products that are targetted more towards men. The brand focussed on the issue of people having dandruff which in turn reduces their confidence. Pantene targets women who are unhappy with their hair or have hair problems, are seeking solution to the same and are interested in beauty.Both the brands have almost same communication tools for promotions like television, social media, Internet, magazines, billboards, magazines, flash mobs and road shows etc. Pantene currently has a market share of 14% while Head and Shoulders has a market share of 9%. Head and Shoulders has a product definition of cleanliness and removing dandruff while Pantene defines its products as transforming and making the hair stronger and healthier. Product/ Brand –Head and Shoulders offers products ranging from shampoos to conditioners targetting various hair concerns like hair fall, itchy scalp, cool menthol, dry-scalp, 1
smooth and silky etc. with the main focus on dandruff. Pantene is a brand that is endorsed by celebrities, most popular and reputed hair care brands globally. With a unique product line, the brand easily occupies the top slot. It offers various products in various ranges with new add-ons on the list frequently such as the latest addition to their list being the waterless collection. Products like shampoo, hair mists, hair masks etc. Pantene has the major ingredient vitamin pro- v present in all of their products. The brand is giving all of its products and packaging an overhaul. The new bottles of the products are shinier, more colourful with a different shape than the old bottles. Also, instead of having all the shampoos and conditioners bottles arranged together in the usual way as before, they will now be arranged according to the hair type with styling products like mousse also placed alongside. Head and Shoulders on the other hand has come up with taking a big step of introducing first recyclable shampoo bottle that is made from beach plastic. The brand believes that the packaging of products plays a crucial role in consumers choosing the products and has plans of focussing on the packaging of their products besides the waste generated during the manufacturing of the products. The company has reduced the weight of its packaging per fluid oz by more than 30% since 2008. Price –Head and Shoulders relies on a reasonable pricing strategy to attract new customers as well as maintain the loyalty of the existing ones since the products offered are affordable and not heavy on the pocket. The products are available in different sizes depending on their price so customers can easily purchase the products depending on their personal needs. Pantene on the other hand, follows a competitive pricing strategy. The products offered are priced similar to its competitors. By offering the best value products for similar price range, Pantene has been able to attract in new customers and provides discounts and offers like free sachets with big bottles for the existing customers. The brand adopts value pricing policy at regular intervals in order to adjust with the purchasing power of the customers. Head and shoulders follows penetrating pricing strategy in order to sell high volumes and reach a large customer base globally and comes up with various discounts and offers and incentives as the sales is higher during the summer season resulting in higher sales and greater revenues. Whereby, Pantene aims at providing best products at the best price to retain existing customers and to attract new ones. Place –Head and Shoulders is a popular brand spread across several countries of the world having a distribution channel that follow conventional route of FMCG marketing, i.e., 2
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from factory to distributor to whole seller to retailer to customers. The products have a presence in from small retail shops to supermarkets in rural as well as urban areas. Pantene also follows a similar distribution system as that of Head and Shoulders shampoo. Both the brands follow direct marketing, with Pantene having a better presence on social media and products are available on the brands' websites as well. The distribution system of any brand needs to be excellent else the products will not be accessible to the customers which may lead to a loss of customers overtime. Pantene follows an intensive marketing strategy and follows an omni channel distribution system of its products where it has integrated stores online and offline to allow customers easy access to the products. As far as Head and Shoulders is concerned, the brand should open up on social media as well where it can sell more products through digital platforms. This will not only allow the company to have more sales but also maintain a long-term relationship with its customers. The brand should also focus on improving its website by making it more customer friendly and easy to navigate. The brand can have company-operated retail stores where it offers all its products. Both the brands try to make their products available to as many retail stores as possible. Promotion –Pantene uses multiple channels to promote its products including traditional media like advertising through television and radio due to their reach to a large number of people at the same time. The brand also uses ways like promoting through social media as the usage of Internet is growing day by day. Head and shoulders on the other hand relies mainly on its marketing team for conducting promotional activities and has a policy that is not only creative but also informative to the customers. The company has launched many campaigns and advertisements on various channels like advertising through television, radio, billboards at strategic places, pamphlets, magazines and posters to create and maintain their brand visibility time and over. Both the brands are positioned as affordable brands when it comes to the pricing of the products. The brands have more or less similar promotional activities like hiring influencers such as bloggers or celebrities on social media to promote their respective brands. Pantene does various sales promotion like taking part in various trade exhibitions and events and undergoes personal selling with its large sales force in various parts of different countries. Head and Shoulders lacks rigorous promotional activities with mainly focussing only on traditional ways of advertising and promotion of its products and therefore needs to cope up with other brands such as Pantene and its other competitors. 3
CONCLUSION From the above report, it can be concluded that both Head and Shoulders and Pantene as brands serve different target audience having different concerns and issues and the brands working on solving them with Pantene having a larger market share in the idustry than Head and Shoulders. Moreover, both brands have a variety of products under their distinct product lines addressing to different hair concerns with Pantene having more extended products under its product line. The pricing strategy of Head and Shoulders is more reasonable with Pantene offering various discounts and schemes and running various offers on the products. The brands also have different ideas on improving the packaging of their products and hence attract more customers and reach to an increased number of them globally. Both Head and Shoulders have different distribution channels serving to a large customer base and the products being made easily available to the customers irrespective of their location. Both the brands have almost similar promotional strategies with Head and Shoulders paying more focus on the traditional ways of promoting and advertising. 4
REFERENCES Books & Journals Armstrong and et. al., 2014.Principles of marketing. Pearson Australia. Brassington, F. and Pettitt, S., 2005.Principles of marketing. London, NY: FT Prentice Hall. Camey, J.P. and Williams, J.K., 2004. Selling principles: Influencing principles of marketing students’ perceptions of and attitudes toward marketing as a discipline.Journal of Marketing Education.26(2). pp.154-160. Jobber, D. and Ellis-Chadwick, F., 2012.Principles and practice of marketing(No. 7th). McGraw-Hill Higher Education. Klink, R.R. and Athaide, G.A., 2004. Implementing service learning in the principles of marketing course.Journal of Marketing Education.26(2). pp.145-153. Kotler and et. al., 2012.Principles of marketing: an Asian perspective. Pearson/Prentice-Hall. Kotler, P. and Levy, S.J., 1969. Broadening the concept of marketing.Journal of marketing. 33(1). pp.10-15. Merrilees, B. and Miller, D., 2008. Principles of corporate rebranding.european Journal of Marketing.42(5/6). pp.537-552. Munoz, C. and Huser, A., 2008. Experiential and cooperative learning: Using a situation analysis project in principles of marketing.Journal of Education for Business.83(4). pp.214-220. Shaw, E.H. and Jones, D.B., 2005. A history of schools of marketing thought.Marketing theory. 5(3). pp.239-281. Online REDUCINGWASTEATHEAD&SHOULDERS.2019.[Online].Available through:<https://www.headandshoulders.com/en-us/about/sustainability/reducing- waste>. OURPRO-Vnutrientstory.2019.[Online].Available through:<https://pantene.com/en-us/pantene-story>. PanteneGetsaMakeover.2019.[Online].Available through:<https://www.popsugar.com/beauty/New-Pantene-Packaging-7719446>. PanteneMarketingMixStrategy7PsAnalysis.2019.[Online].Available through:<https://www.essay48.com/term-paper/13858-Pantene-Marketing-Mix>. 5