Principles of Marketing Report: Head & Shoulders vs Pantene Analysis

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Added on  2023/01/12

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This report provides a comparative analysis of the marketing strategies employed by two prominent shampoo brands: Head & Shoulders and Pantene. The report begins with an introduction to the principles of marketing and then delves into a detailed examination of the marketing mix (product, price, place, and promotion) of each brand. It highlights the differences in their pricing strategies, distribution networks, and promotional activities, including the use of celebrity endorsements. The report further explores the STP (Segmentation, Targeting, and Positioning) model for both brands, analyzing their target markets and how they position themselves in the competitive landscape. Secondary research methods were used to gather information from online sources. The report concludes with a summary of findings and recommendations for both companies, emphasizing the importance of marketing mix elements, targeting, and positioning in their success within the fast-moving consumer goods (FMCG) market.
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INTRODUCTION
Principles of marketing are define as the core marketing ideas that helps in driving and
implementing a successful marketing strategy. In this report the principles of marketing are
discussed on the two popular shampoo companies that are Head and Shoulders and Pantene.
Head and Shoulder is an anti-dandruff shampoo company originated in America. It is a
subsidiary of FMCG Company Procter and Gamble. It is a 58 years old brand arrives in
November 1961. Pantene is an American shampoo brand created in Switzerland. It is a hair care
brand owned by fast moving consumer goods company Procter and Gamble. Pantene was
founded by Swiss citizen named Hoffman-La Roche in the year 1945. The report covers the
comparison of marketing mix of two companies of same industry. The report also include the
illustration of STP marketing planning process model of two companies (Shaw, 2016).
Executive Summary
Aim: The aim of the report is to determine the importance of marketing mix in growth of
a given brands as well as evaluating the significance of targeting and positioning in the success
of given brands context.
Research Methodology: Secondary research methods are used in this report. All the
findings are gathered from online sources that means websites.
Results: Results drive from the assignment is that it Pantene is expensive than Head and
Shoulders. Both use celebrity endorsement to promote their product. Both have strong
distribution network which enable them to reach at every corner of the world. Head and Shoulder
is a subsidiary of Procter and Gamble while Pantene itself is brand of Procter and Gamble. In this
way both brands are linked to the same FMCG Company.
Conclusion: The report has been conclude that marketing mix are of huge importance for
the companies. Price element of Head and Shoulders and Pantene is different as former is cheap
and easily affordable and later is little more expensive. The report also conclude that targeting
and positioning plays a crucial role in growth of the companies. Head and shoulder and Pantene
have different target market as former brand target middle aged men with dandruff problem and
later brand target young women. Head and Shoulder positioned as the solution of dandruff
problem and Pantene positioned as a mechanism to extract inner and outer shine of a woman.
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TASK 1
Marketing Mix Comparison of Head and Shoulder and Pantene
Every company consider some major elements that are part of marketing process. These
elements of marketing are collectively called as marketing mix. Marketing mix consist of 4Ps.
The 4Ps of marketing are product, price, place and promotion. Product refers to distinct quality
and benefits offer by the company to serve customers. Price is the pricing strategy of the
company. Place connote the distribution channel of the firm. Lastly the promotion is the way to
communicate with customers. The detail description of marketing mix of Head and Shoulders
and Pantene is given below:-
Product
Head and shoulder manufactures product that prevent hair problems mainly dandruff.
Head and Shoulder develop their products after years of extensive research and development
process. It use highly effective and unique formula to solve several hair problems such as anti-
dandruff, anti-hair fall, silky black etc.
Pantene offer wide varieties of shampoo as per the need of individual. Pantene is the
leading brand in the shampoo industry that mainly target women. Pantene shampoo and
conditioners are initially delivers in the plastic bottles later arrives in format of sachet. Pantene
sachet and bottles are designed beautifully in order to fascinate the target market (Bowie, and et.
al., 2016).
Price
Head and Shoulder adopted strategy of price penetration in order to compete with its
immediate rival Unilever Limited. They offer shampoo at reasonable price. Products of the
company are easily affordable by the middle class and even lower middle class people.
There is intense competition in the shampoo industry. Slight increase in price can divert
customer interest toward other brand therefore Pantene follows price penetration strategy. Even
though the company utilize competitive pricing strategy the price of the product is slightly high
to maintain a perceived added value of good quality shampoos.
Place
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Head and Shoulder avail a strong distribution network because of its parent company
Proctor and Gamble. Products of Head and Shoulder are found on almost every format retail
outlet. It is available both online and offline retail stores. Customer can purchase its products at
General stores, departmental stores, groceries store and e-commerce store (Alserhan, 2015).
Being a product of popular company Proctor and Gamble Pantene enjoys a good supply
chain system. Company is very conscious over their availability in the market. Pantene ensure
that their shampoos are available at any retail store at any point of time. Stocks of Pantene
originate from manufacturing plant and reaches to final consumers by crossing several
intermediaries.
Promotion
Head and Shoulder often choose big celebrities as their brand ambassador. Celebrities
endorse Head and Shoulder brand in television advertisements. The company positioned its
brand as the most effective solution for dandruff problem. Firm promote their product through
several marketing mediums such as television commercials, newspaper, hoardings, posters and
magazines. Their campaigns are mainly emphasis on making shampoos as a means to achieve
confidences (Bühler, and Nufer, 2015)).
Pantene uses all the means of advertisement like television, social media, billboards,
YouTube, poster and hoardings. Shampoos of Pantene have been endorsed by beautiful actress
and models. The advertisement showcases it as a premium brand for women. These
advertisements are usually broadcast on daily soap and movie channels.
TASK 2
STP model of Head and Shoulder and Pantene
Every product has a specific consumer category according to people age, gender, income,
lifestyle, thought process, mind-set, culture, value and belief. Companies targets profitable
consumer segment according to feature and quality of product. Firm categorize whole population
into different segment according to certain common characteristics. This process is called as
segmentation. Segmentation is of four types- demographic, geographic, psycho graphic and socio
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cultural. Demographic segmentation includes income, age group, gender, education and
occupation. Geographic segmentation refer to regions of domestic and foreign marketplace.
Psycho graphic segmentation connotes lifestyles and mindset of an individual and lastly socio
culture segmentation implies culture, values and belief. Segmentation is followed by selecting
profitable consumer segment that is called targeting. Targeting is followed by creating image of
the product in the minds of consumer that means positioning. All the three activities of marketing
are essential for success of any firm. STP model of Head and Shoulder and Pantene are
discussed below:-
Segmentation
Head and Shoulder is a FMCG company. It cater to the needs of customers from all
demography and geography. Company divide their market on the basis of psycho graphic
segmentation. Company mainly concerned with the lifestyle and preferences of people. The main
segments are the people suffering from dandruff, people desiring black silky and shiny hair in
low price (Storey, Hess, and Saffitz, 2015).
Pantene also utilize demographic and psycho graphic segmentation. It segments the
market according to gender and lifestyles of an individual.
Targeting
Head and Shoulder usually target higher middle class people of society. Target consumer
segment of company are people want to prevent or cure dandruff. The advertisement of Head and
shoulder depict their shampoo as one stop solution for all hair problems. Company launch their
Firm usually aims to attract middle age men with and dandruff and hair fall problems or the men
wishing shiny and silky hair (Saunders, Barrington, and Sridharan, 2015).
Pantene mainly target teen and youth aged women of middle income and upper middle
income class. On the basis of lifestyle it target those women who are fond of going to salon for
styling and maintaining their hairs. They insist women to purchase Pantene shampoo and
conditioners instead of spending heavily on salon services.
Positioning
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Head and Shoulder create a positioning of its brands as the most effective remedy of
dandruff that can solve the problem of dandruff in one wash. It is a pioneer in offering dandruff
solution to the people. It is a market leader in niche market of anti dandruff segment. It became
successful in acquiring large market share in the shampoo industry. The strong distribution
network covering all the rural market consequent in acceleration of the sales in recent years.
Thus it became a market leader (French,and Russell-Bennett, 2015).
Initially Pantene positioned itself as cheap substitute of salon services. Later the company
repositioned their brand as product that is the cause of shining in women. A product that extract
internal shine with aid of external shine in hair render by shampoo.
CONCLUSION AND RECOMMONDATIONS
From the above file it has been concluded that both companies deals in same category of
products. Price of the Pantene is higher than Head and Shoulder. Both have strong distribution
network and large market share. Both use celebrity endorsement as a way of promotion. The
report also conclude that Head and Shoulder targets anti-dandruff segment and Pantene targets
young women. Head and Shoulders positioned as the best solution for dandruff while Pantene
positioned as the effective tool for shining hair and shining personality. Head and Shoulder is
recommended to launch new format of hair care products such as cream, gel and oils. Pantene is
recommended to reduce the prices of product or introduce new cheap variety for niche market.
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REFERENCES
Books and Journals
Bonaparte, Y.L., 2019. Sustainable outcomes of an experiential learning project in a principles of
marketing course. Journal of Global Scholars of Marketing Science. 29(1). pp.7-14.
Bowie, D., and et. al., 2016. Hospitality marketing. Taylor & Francis.
Bühler, A. and Nufer, G., 2015. Marketing in sports.
French, J. and Russell-Bennett, R., 2015. A hierarchical model of social marketing. Journal of
Social Marketing.
Saunders, S.G., Barrington, D.J. and Sridharan, S., 2015. Redefining social marketing: beyond
behavioural change. Journal of Social Marketing.
Shaw, S., 2016. Airline marketing and management. Routledge.
Storey, J.D., Hess, R. and Saffitz, G., 2015. Social marketing.
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