Analyzing International Marketing and Research: Head & Shoulders

This report provides a detailed analysis of the international marketing strategies employed by Head & Shoulders shampoo, a product of Procter & Gamble (P&G). It explores the reasons for companies to go international, various entry strategies into foreign markets, and the importance of internation...Read More

Running Head: INTERNATIONAL MARKETING 0
International marketing
Head & Shoulders shampoo
(student name)
11-8-2018

INTERNATIONAL MARKETING 1
Contents
Introduction....................................................................................................................................2
International Marketing...............................................................................................................2
Why go International?..................................................................................................................3
Entry to the international market................................................................................................3
International Marketing Research...............................................................................................4
Types of researches conduct internationally................................................................................4
Need for international marketing research..................................................................................5
Head & Shoulders shampoo.........................................................................................................5
Head & Shoulders export to countries:........................................................................................6
Marketing Mix of Head & Shoulders anti-dandruff shampoo.....................................................6
Head & Shoulder’s International marketing research.................................................................7
Marketing research online.......................................................................................................7
Internal and external sources of information...........................................................................7
Australia’s 10 best-selling shampoo brands................................................................................8
Conclusion....................................................................................................................................10
References.....................................................................................................................................11

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Introduction
International Marketing
International marketing is making products available in the foreign market. It is
marketing of products to more than one countries. Products that Crossing domestic boundaries
and marketing principles are applied to two or more countries. In order to fulfill the needs of
customer residing in other countries companies enter into another country in different ways
(businessjargons, 2018). Marketing at an international level involves selling and buying of
products across domestic boundaries and making marketing mix decisions for that country. This
could be done by manufacturing goods in home country and marketing through different
channels in a foreign market or by manufacturing goods in other countries and marketing them to
the third country. Marketing in other countries is quite challenging, due to a different culture,
education system, languages, values, ethics and believes and mostly, different government laws
and regulations (Craig & Douglas, 2005).
In this report, International marketing research will be discussed in detail. The product
chosen for this report is “head & shoulder shampoo.” This report will consist of the brief of
international marketing, and research, its importance, process. Further, Head & Shoulders
shampoo international marketing and research will be part of the discussion.

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Why go International?
Reasons for companies to go international are as follows:
 Economies of scale are increasing: reducing cost by large production for a large number
of customers
 Increase market share: selling product internationally will gradually increase market
share of the company in the industry
 Profit opportunities: it is an opportunity for the company to increase sales in the foreign
market and earn more profits.
 The life cycle of the product: when a product is a maturity or decline stage of life cycle, it
is advisable to increase growth through investment in the foreign market.
 Untapped market: to grow either a company needs to go for diversification in the product
line or cover the untapped market in order to deliver goods and services to new customers
(Dickmann, Doherty, Mills, & Brewster, 2008).
Entry to the international market
Ways through which a company can enter cross-national boundaries. Some ways are as
follows:
 Exports: exports are the simplest way to enter a foreign market. There are two ways to
export, direct and indirect exports. Direct export is when company market or sells its
goods and services by itself in the foreign market. In indirect exports, the company sells
its products through channels that involve trading companies.

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 Direct investment: firms establishing their own business facilities abroad or to facilitate
the sale, it owns a part of the local company. The objective to go international in this case
is increasing the market share of the company.
 Joint ventures: joining hands with companies that are host country based is another way
of entering another country. Marketing becomes easy due to the existing relationship of
other company with local customers.
 Licensing and franchising: franchising contract occurs when a company gives the
franchise to someone in a foreign country but the higher control is in hands of the
domestic company, for example, McDonald's. While Licensing is when a domestic
company provides a license to a foreign company and allows them to use patents,
trademarks, and the name of the domestic company and allow the sale of products cross-
border. Here, the control of the licensee is very low.
 Global web strategy: the internet is one short solution to the problem of consumer
awareness in the foreign market. Through electronic media creating brand awareness has
become very easy across the globe without physically present at that place (Mühlbacher,
Leihs, & Dahringer, 2006).
International Marketing Research
International marketing research is systematic designing, collecting, recording, analyzing,
interpreting, and reporting information needed for a specific marketing decision of company
operating internationally (Rialp & Rialp, 2007).

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Types of researches conduct internationally
 Research of Industry, market characteristics, and trends: this will include analysis of
market share, acquisition analysis, diversification analysis, and export research.
 Buyer behavior research: this will consider buyer purchase behavior; brand
awareness, attitudes, and preferences, studying consumer segmentation.
 Product research: in international marketing, the company need to do concept
development testing, product testing, competitive products, packaging designing, and
test marketing.
 Distribution research: analyzing import & export procedure, distribution channels in
the international market, and search for warehouse location.
 Promotion research: studies advertising effectiveness, study related to coupons and
deals in that country, local media research, studies related to personal selling.
 Pricing research: projecting demand, study currency, & counter trades, study inflation
rates, and negotiation tactics as per foreign country are studied. (Mora, 2015)
Need for international marketing research
 In order to understand consumer behavior and consumer demand and translate that
behavior into the company’s marketing strategies. Choices are increasing rapidly for
customers due to market research and development of internet communication.
 In case of lack of international research, many companies had failed in marketing their
products internationally. Therefore, good international marketing research is necessary.

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Head & Shoulders shampoo
Head & Shoulders is an American brand. Parent company of Head & Shoulders is “Procter &
Gamble”, introduced in year 1961. It produces Anti-dandruff shampoos. By 1982, it was number
one brand, it was 20 years brand, and no other brand could match its sales. Procter & Gamble
(P&G) is an American based company. Its headquarters are in Ohio, USA. The company’s
products include food, personal care products, beverages, and cleaning products (Dalzell, Dyer,
& Olegario, 2004).
Matt Elliott made P&G researchers initiate a new anti-dandruff shampoo that was Head &
Shoulders in the year 1950. With many years of research, the latest formula was found,
pyrithione zinc in the range of shampoo. With blue-green formula, a shampoo was introduced to
the U.S in the year 1961 (headandshoulders, Head & Shoulders , the world leaders in dandruff
and calp care, 2018).
Head & Shoulders export to countries:
 Latin America
 North America
 Asia
 Middle East
 Africa
 Australia
 New Zealand
 Europe

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Marketing Mix of Head & Shoulders anti-dandruff shampoo
Product
 Product Differentiation
 Product Variation
 Product Elimination
 Product Innovation

Place
 Direct sales
 E-commerce
 Distribution channel
 Indirect sales
Price
 Penetration pricing
 Cost recovery pricing
 Price skimming
Promotion
 Mass communication
 Individual communication
 Corporate identity
 Brand management
 Products: Head & shoulder is the number one brand in shampoos. It was one of the most
popular products listed in P&G. It claims to remove dandruff, and give soft manageable
hair after using this product (headandshoulders, All Head & Shoulders Products , 2018).
 Price: products prices were reasonable for all customer segments and within the reach of
people. Internal factors affecting prices of this product were the company’s goals and
objectives were to maintain market share of the shampoo and for the existence of the
product in the competitive market.
External factors affecting the Head & Shoulder’s price were ‘market and
demand’. There are many competitors in the market due to which head & Shoulder had

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faced tough competition. Promotional price strategy according to the season was
followed by the company.
 Place: Head & Shoulders Anti-dandruff shampoo is available in country's leading stores.
Head & Shoulder shampoo was distributed in the city by main supplier and some small
distributers. It was made available in most of the shops in all countries.
 Promotion: In order to promote Head & Shoulders, P&G uses expensive promotional
tools. Some of these tools are through television, internet(online marketing), radio
channels, top magazines, printing pamphlets, bill boards, posters, journals, and through
sales promotion.
Head & Shoulder’s global branding: P&G has the strongest and largest portfolios
of the trusted brands in the world. To increase purchase intent and drive awareness, P&G
ran a brand campaign for Head & Shoulders. Benefits of product’s global branding:
future adoption worldwide; Economies of scale; maintaining brand image; decrease in
marketing costs.
Head & Shoulder’s International marketing research
For every product division, market researchers were employed. For advertising and
market testing, two formal research teams were responsible.
For product and market development, new ideas were to be generated. Customers were
engaged in discussions over different features of the products. This would also increase
consumer and researchers personal interaction. Focus-group discussions, in-store interview, in-
home visits were some major qualitative research tools. The company used surveys through
practical or wed approach in the market (businesswire, 2013).

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Marketing research online
In order to get feedback from customers, P&G conducted online concepts tests. It helped in
introducing new product and improving versions of old products. These online surveys were very
helpful to the company, as it saves lots of time and costs for the company.
Internal and external sources of information
Internal sources for the company were financial aspects, machinery since the cost of the
machine effects decision-making, check of raw materials availability, personnel resources.
External sources include:
 social forces like the population of the countries, their culture, and income
 economic forces, general economic conditions of countries, GDP, interest rate level,
inflation rate, the unemployment level
 demographic forces, growth rate, population size, age distribution, and education levels
 technological forces
 regulatory forces, a legal framework by government legislation, patent laws in order to
protect firms
 competitive forces, evaluation of the industry in that country, P&G used Michael
Porter’s five force of competition.

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Australia’s 10 best-selling shampoo brands
(Source: insidemug, 2016)
In Australia, head and shoulders were in the second position when a survey
conducted for the purchase of shampoos in the last six months. Alverto and Head and
Shoulders are best selling shampoos targeting different segments of consumers. Alberto
being more natural product gain advantage and is at number one in Australia (insidefmcg,
2016).

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Conclusion
To conclude this report, international marketing is selling goods and services in one or
more countries or even across the globe. International marketing research is an important aspect
of international marketing as it is not advisable to enter a foreign market without knowing your
target audience. Thus, a detailed research on international customer segment, pricing, products is
must before deciding on company strategies for international marketing.
P&G is one of the largest FMCG Company in the world. Head and shoulders are one of
the products of P&G. they offer Head &Shoulders for different segments of customers.
Providing super quality branded products was their major purpose. Serving products that will
improve the lives of the consumers worldwide. They gave decades in market research in all the
countries form both the internal and external environment. P&G invests a lot in promotion of
head and shoulders so as to create brand awareness. The online market research survey was also
held for improving existing products, packaging. Head and shoulder shampoo are available in
many countries like New Zealand, America, Europe, North America, the Middle East, and
Australia.

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References
businessjargons. (2018). International Marketing. Retrieved from businessjargons:
https://businessjargons.com/international-marketing.html
businesswire. (2013). Research and Markets: Head & Shoulders: Establishing a mass consumer
brand . Retrieved from businesswire:
https://www.businesswire.com/news/home/20130308005235/en/Research-Markets-Head-
Shoulders-Establishing-mass-consumer
Craig, C., & Douglas, S. (2005). International Marketing Research. Chichester: John wiley &
sons.
Dalzell, F., Dyer, D., & Olegario, R. (2004). Rising Tide: Lessons from 165 Years of Brand
Building at Procter & Gamble. Harvard Business press, 423.
Dickmann, M., Doherty, N., Mills, T., & Brewster, C. (2008). Why do they go? Individual and
corporate perspectives on the factors influencing the decision to accept an international
assignment. The International Journal of Human Resource Management, 731-751.
headandshoulders. (2018). All Head & Shoulders Products . Retrieved from headandshoulders:
https://www.headandshoulders.com.au/en-au/shop-products
headandshoulders. (2018). Head & Shoulders , the world leaders in dandruff and calp care.
Retrieved from Head & Shoulders :
https://www.headandshoulders.com.au/en-au/about/about-head-and-shoulders
insidefmcg. (2016). Australia’s best selling shampoo brands. Retrieved from insidefmcg:
https://insidefmcg.com.au/2016/11/04/australias-best-selling-shampoo-brands/

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Mora, M. (2015, november 18). Types of Market Research and Their Differences. Retrieved
from surveygizmo: https://www.surveygizmo.com/resources/blog/market-research-types/
Mühlbacher, H., Leihs, H., & Dahringer, L. (2006). nternational marketing: A global
perspective. London: Thomson learning.
Rialp, A., & Rialp, J. (2007). International Marketing Research: Opportunities and Challenges
in the 21st Century. Emerald group publishing limited.