a project on SHAMPOO INDUSTRY

PANTENE

SUBMITTED TO: SUBMITTED BY: PROF: KUMAR MOHANTY ANSUMALI BEHERA (174)

SASWAT KUMAR SAHU(175)

MUKESH SHARMA (176)

DAISY RANI (177)

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CONTENT PAGE NUMBER

Introduction 2 Company Overview 3 Product Intrduction 4 Marketing Concept 4 Marketing Mix 5 Over All marketing

Strategy 7 Swot Analysis 8 BCG Matrix 9 Marketing Research 11 Marketing Research

Process 12 Consumer Behaviour 13 Conclusion 14

Introduction

Purpose of the project:

The project has been planed to be have a comprihenshive understandingof the company,and the industry and compitator,and to understand marketing as a function .

Shampoo:

Shampoo in India was derived from the Hindi word champi meaning hair massage. The introduction of shampoo in India dates back to the British reign in the country. Being a recent development the growth of shampoo or rather the penetration levels of shampoo in the India has been commendable.

The shampoo market in India is estimated to be `2,500-3,000 crore. The shampoo market is India is categorized according to the benefits they provide. Mostly consisting of three kinds of shampoos cosmetic, herbal and anti dandruff, the shampoo market in India has managed to tap users of the various segments according to their requirements and preferences.

Due to the continuous efforts of the top shampoo brands in India penetration of shampoos in urban areas is almost 100%. As far as penetration of shampoo in the rural areas is concerned it has risen by almost 18% in the current scenario.

The top shampoo brands in India include Sunsilk, Clinic Plus, Dove and Pantene. The company that leads the shampoo market in India is Hindustan Unilever Limited. The top

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three most sought after brands Sunsilk, Dove and Clinic are produced by HUL. The company holds a 44% market share in the Indian shampoo industry. It is said that HUL earns almost 8% of its revenue from the sale of these products The other recent brand that has taken the Indian personal care industry by storm is Pantene. Since its very inception the brand was a best seller. A product of FMCG giants Proctor and Gamble Pantene has slowly and steadily managed to capture quite a large amount of the Indian market. Proctor and Gamble the second top shampoo brand in India holds a market share of around 25% in the Indian shampoo industry. The revenue earned from the ale of shampoos from Proctor and gamble is almost 17%.

Together these two major players constitute a major part of the Indian shampoo industry. Both these players with their numerous brands dominating the Indian shampoo market are continuously trying to outdo one another by introducing different marketing schemes. Be it in the form of price cuts, discounts or increasing the size of the shampoo sachets without any extra costs these two to shampoo producing companies are at a continuous price war

COMPANY OVERVIEW

P&G INTRODUCTION

Procter & Gamble Co an American multinational corporation founded in 1987

Largest fast moving consumer goods company with leadership in home and personal care products, foods and beverages and specialty chemicals.

P&g Mission

P&g mission is to add vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

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Product introduction:

Pantene:

Pantene is a brand of hair care products owned by Procter & Gamble. The product line was first introduced in Europe in 1947 by Hoffman-LaRoche of Switzerland, which branded the name based on panthenol as a shampoo ingredient. It was purchased by Procter & Gamble (P&G) in 1985 in order for P&G to compete in the "beauty product" market rather than only functional

products.[1]

The brand's best-known product became the conditioning shampoo Pantene Pro-V (Pantene Pro-Vitamin). The product became most noted due to an advertising campaign in the late 1980s in which fashion models said, "Don't hate me because I'm beautiful’

MARKETING CONCEPT

Market segmentation:

Pantene has revitalized their product line by segmenting their shampoos, conditioners and stylingproducts into three categories:

Fine,

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Med-Thick, Curly and Color

This allows consumers the opportunity to tailor their selection according to need while

stillpaying a “drug-store price’

Target market of Pantene :

The primary target market of pantene :: female(age from 18-35)

secondary target market of pantene : Males :All other ages of female too.

Competitors:

Sunsilk . Clinic plus.

Brand Strategy:

Umbrella Branding.: An umbrella brand is an overarching brand used across multiple related products. Umbrella branding is also known as family branding. It contrasts with individual product branding, in which each product in a portfolio is given a unique brand name and identity.

Brand Extensions :

Optional feature Pricing

Marketing Mix (4 P)

PRODUCT. P&Gs great success in therough-and-tumble shampoo world comes from developing an innovative product concept;

FEATURES:

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The Pantene has whole range of shampoos with different features. These are Volume Care,Smoothing Care, Color Care, Curl Care and Basic Care, anti dandruff, anti-hair fall etc.

It is available in the both premium bottle pack as well as satchets

SIZE OF PACKAGEAvailable in 100 ml,200 ml and 400 ml sizes

PRICING

P&G claims to practice value-based pricingin which the customers’ perception of the product’s price provides astarting point for developing the marketing mix of the product. Theresearch department determines this price usually by using focus groups.The price of 3 for pantene shampoo sachets shows how theprice also reflects a concern to make the purchase more convenient,since the rupee is denoted in this value.

pantene is also available in Rs 51 and Rs 98 price bottles tocater to the demands

keeping in mind the wants of this particularcustomer segment. The primary importance of

this value-based pricing is that the productdemand will be much higher if its price is in

line with the customer’sperception of its value. One crucial concern for value-based

pricing isstrict management of cost in order to be able to make a profit at thevalue-based

price. After the initial price is determined, p&G then uses target costing in order to

achieve the required profits.

PROMOTION :

The objective of promotion is to build the line consumer awareness,creating personality of the brand,to increase the use,conditioning benefits,make hair appear clean and shiny,easy to manage silky and soft hair &effectively communicatie brand promise.

Promotional stratergy:

Innovative campaigns such as 'Shine Morning to Night' were launched to attract women

to the brand. Sponsored short films that were broadcast during popular television shows. Media platforms used,Print media,internet rural campaign,environment concern ads,Music videos, New product formulations according to changing consumer

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preferences, unique Advertising such as Pantene Building Advertisement – Anti-Breakage Shampoo, Pantene – Stops split ends,etc makes its ads more attractive, impressive and eye-catching.

PLACE:Placement (or distribution): refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This fourth P has also sometimes been calledPlace, referring to thechannel by which a product or service is sold (e.g. online vs. retail), whichgeographic region orindustry, to which segment (young adults, families, business people), etc.also referring to how theenvironment in which the product is sold in can affect sales.Pantene hasan undoubtedly amazing design & distribution channel and this can be supportedby the factPantene is one of the most easily available brands in the industry.In 1998-1999. Pantenelaunched global corporate restructuring program called Organization 2005,and made severalchanges in structure, work processes and culture to generate greater stretch,innovation and speedto help its products reach the market faster.Pantene retails through Spencers,RelianceFresh,More,RPG group and wide variety of Kirana storesspread all oveR..

OVERALL MARKETING STRATERGY OF PANTENE

When visiting www.pantene.com the viewer will find a list of countries worldwide; each web visitor is expected to select their country in order to be taken to a Pantene web page corresponding with their country and language).. Pantene has recently added two new hair care lines to target to a more diverse group of women. In July 2003 Pantene launched its “Pantene Long Black” line specifically for Indian women whose culture values hair as a beautiful feature on a woman. The formula darkens each strand uniformly from root to tip through intense moisturizing as well as reducing damage. Pantene has recently been awarded “Asia’s favorite Shampoo” in the Readers Digest Super Brands Survey. Also on the shelf next to the pearly white. Pantene has sponsored many Beauty Contests and Bollywood events. And T.V programs like NACH BALIYE 4 .

It is also associated with many corporate social initiaitives like Indian Heart Association for “condition for a Cause. It has come up with many offers for women where in they can meet a celebrity and

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get pampered like one. Pantene markets to women and girls. They market to all ages, races, social classes, and economic standings. On Pantene’s website there is a list of frequently asked question. The customers can become the member of the Pantene family and can have their log in ids using which they can access the website and also make use of all the facilities available . There is also a feature of expert’s advice on the website where users can seek solutions for all of their hair problems. Their retailers are stores like, Wal-Mart, K-Mart,and Target worldwide and Reliance Fresh.Spencers,More etc in India Pantene can be found in all sorts of discount stores, drugstores, and supermarkets .Apart from this they have adopted Value Pricing strategy at different times to adjust with the local conditions and purchasing power parity of the country.In

thisProcter & Gamble made dramatic and long-term changes in its pricing and promotion strategy during which it boosted advertising while simultaneously curbing itsdistribution channel deals (in-store displays, trade deals), and significantly reducingits coupon promotions.

It is interesting to note that P&G's value pricing strategy regarding Pantene is quite a misnomer. During this period many stores were switching to EDLP (every day low pricing ) policies, which meant that consumers would save on their overall purchase without having to deal shop. In contrast, P&G strategy essentially was a disguised price increase; coupons were cut by 50%, which contributed to an increase in the customer's price paid by 20%. It is possible that P&G lowered their wholesale price, but the retailer only enjoyed higher margins and did not pass the savings on to the customer. Another possibility is that retailers lowered retail prices consistently,

SWOT ANALYSIS:

STRENGTH:

P&G India Limited is one of the largest organizations in India. Company has advanced technology and well skilled professionals. The New pantene-pro Shampoo is a high quality product in terms of hair

protection. The target market is educated, professionals and belongs to premium and middle

class. Company totally owned, systematic distribution network, transparent

communication system. Participative management style Very good distribution network all over India, in all major and small cities.

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WEAKNESSES:

Bad communication Over leveraged fiancial position Not innovative Poor supply chain

Opertunity:

Population expanding at a rapid rate. Consumers are becoming more quality conscious Current capacity utilization is 80%, which can be further broadened with the

increase in demand. Customer base is increasing with effective marketing. Shampoo plus conditioner and anti-dandruff shampoos are another area where

P&G can earn huge profits. Rural areas are a large prospective market where they can introduce pantene.

THREATS:

Competition External changes (government, politics, taxes, etc) Lower cost competitors or imports Price wars

BCG MATRIX

The BCG matrix (aka B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis, portfolio diagram) is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.

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The Boston Consulting Group (BCG) Matrix is a simple tool to assess a company’s position in terms of its product range. It helps a company think about its products and services and make decisions about which it should keep, which it should let go and which it should invest in further.

BCG Matrix for Pantene

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Relative Market Share

The Position of Pantene is slightly fluctuating. Due to high competition it’s position is either as Star or question mark. The Pantene Color care always enjoying a star postion where as the other products are not so popular .

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MARKETING RESEARCH

Marketing research is "the function that links the consumer, customer, and public to the marketer

through information — information used to identify and define marketing opportunities and problems;

generate, refine, and evaluate marketing actions; monitor marketing performance; and improve

understanding of marketing as a process. Marketing research specifies the information required to

address these issues, designs the method for collecting information, manages and implements the data

collection process, analyzes the results, and communicates the findings and their

implications."[1] Marketing research is the systematic gathering, recording, and analysis of data about

issues relating to marketingproducts and services. The goal of marketing research is to identify and

assess how changing elements of the marketing mix impacts customer behavior. The term is

commonly interchanged with market research; however, expert practitioners may wish to draw a

distinction, in that marketresearch is concerned specifically with markets, while marketing research is

concerned specifically about marketing processes.[2]

Marketing research is often partitioned into two sets of categorical pairs, either by target market:

Consumer marketing research, and

Business-to-business (B2B) marketing research

Or, alternatively, by methodological approach:

Qualitative marketing research, and

Quantitative marketing research

.[4]

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Consumer marketing research is a form of

applied sociology that concentrates on understanding the

preferences, attitudes, and behaviors ofconsumers in a

market-based economy, and it aims to understand the

effects and comparative success of marketing campaigns.

The field of consumer marketing research as a statistical

science was pioneered by Arthur Nielsen with the

founding of the ACNielsen Company in 1923.[3]

Thus, marketing research may also be described as the

systematic and objective identification, collection,

analysis, and dissemination of information for the purpose

of assisting management in decision making related to the

identification and solution of problems and opportunities

inmarketing

Marketing Research process

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Result Of Marketing research of Pantene

Findings from the research allowed Pantene to gain a better understanding of the perceived importance of healthy hair, as well as help improve the brand's creative executions

Reasons to Purchase

*Stimulate ideation and invigorate brands by learning from industry leading examples with supporting consumer, product and market insight data

*Enhance Pantene’s market positioning and concept development efforts. In doing so, reduce risk for new product launches and increase the chances of success

Consumer behavior :

The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products);

The the psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);

The behavior of consumers while shopping or making other marketing decisions;

Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; 

How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and

How marketers can adapt and improve their marketing campaigns and marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society."

Consumer Behavior for Pantene

With their purchase decision Buy shampoo at Superstore andSupermarket Buy a new bottle of shampoo when old out

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Number of purchase is 1-2 bottle/time 70-80% of Thai’s behavior likes to do hair color and the average value

of a hair color is every 2-3 months

Conclusion

There are some recommendation for the Pantene.

P&G has a dubious pricing strategy.In india sometimes they adopt thepremium pricing and at other times they change it to value pricing.Thiscreates confusion in the mind of customer.Our recommendation is that Pantene should stick to one strategy anddevelop on it.Fluctuating prices have chances to affect the mind of customersnegatively.This should be avoided.

P&G should keep up the efforts of bringing in more and more innovativeproducts.This is because ultimately nothing works for a company more thanits products.

Some rumors about the presence of wax in Pantene shampoo affected the market.Such rumors should be severly dealt with as they affect the brand loyalty as well as market share.

There were some reports which said that Pantene tests its product onanimals which ultimately proves fatal to them.This created a big problem forPantene by the environmentalists.This project recommends Pantene to gomore herbal and environment friendly as it affects the company’s image inthe long run.

Pantene is still not much known in the semi urban India. Stress should be laid on the promotion of Pantene in the interior of country as well

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