In partial fulfillment Of the Requirements in Marketing
Presented by Mr. Jayson R. Diaz Faculty of Our Lady of Fatima University Quezon City
Marketing Plan for Sunsilk Shampoo Submitted by: John Kelvin G. Anday Iren Traspece Carina Rose Escat Winnie Luis Jeanica Projas Juveelyn Reyes Angeline Quinalayo BSHRM 2A1-1 October 8, 2009
TABLE OF CONTENTS
I.
Introduction
II.
Marketing Environment
III. SWOT Analysis
IV. Objectives of the Marketing Plan
V.
Marketing Strategies
VI. Projected Income Statement
VII. Evaluation of Marketing Action Plan
ACKNOWLEDGMENT We would like to express our gratitude first and foremost to our Lord Almighty for giving us the valor to remain dedicated to make this marketing plan. This underlying plan is based on the analysis of different marketing functions of Unilever Corporation. Applied on “Sunsilk”. In making this marketing plan, we collected the whole data from publications, internet and magazines.
EXECUTIVE SUMMARY Unilever a multi-national corporation, formed of British and Dutch parentage, that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever was created in 1930 by the amalgamation of the operations of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie, a logical merger as palm oil was a major raw material for both margarines and soaps and could be imported more efficiently in larger quantities. The New Sunsilk Shampoo aims at fulfilling the needs of its target market by offering a high quality, assessment of the concept in terms of its acceptability, credibility and perceived benefits, that it offers a healthy choice shampoo alternative to the targeted consumer. The content of the plan is our unique marketing strategies that will be implemented on how to sell our products to the people, especially in the provinces and how we formulated a shampoo pack that is affordable to consumers. Life Can’t Wait, the latest campaign of Sunsilk aims to inspire women all over the globe to live their lives to the fullest.
I. INTRODUCTION
In the present time, personal hygiene of a person must be considered. Due to different pollution, hair is basically one part of our body that is being damaged. That’s why Unilever was the most trusted company in terms of home care brands, food care brands and personal care brands not only in Europe but all over the globe. A. Company History and Profile: Unilever is a multi-national corporation, formed of British and Dutch parentage, that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products. Unilever employed 174,000 people and had worldwide revenue of €40.5 billion in 2008. Unilever was created in 1930 by the amalgamation of the operations of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie, a logical merger as palm oil was a major raw material for both margarines and soaps and could be imported more efficiently in larger quantities. The food and consumer products giant actually has two parent companies: Unilever PLC, based in the United Kingdom, and Unilever N.V., based in The Netherlands. The two companies, which operate virtually as a single corporation, are run by a single group of directors and are linked by a number of agreements. Unilever considers itself the second largest consumer goods firm in the world, trailing only Philip Morris Companies Inc., and produces numerous brand name foods, cleaning products, and personal care items. About 52 percent of revenues are generated in the foods sector; brands include Imperial and Promise margarines, Lipton tea, Ragú foods, Lawry's seasonings, Breyers ice cream, and Birds Eye and Gorton's frozen foods. One-quarter of sales come from the personal care area; brands include Caress and Dove soap, Pears and Pond's skin care products, Degree, Fabergé, and Sure deodorants, Suave and Salon Selectives hair care items, Close-Up, Mentadent, and Pepsodent oral care products, and Calvin Klein, Elizabeth Arden, and Elizabeth Taylor prestige fragrances&mdash well as such miscellaneous brands as Q-Tips and Vaseline. Unilever's third major sector is that of cleaning products, which is responsible for about 22 percent of turnover; brands include Wisk and All laundry detergents, Snuggle and Final Touch fabric softeners, and Sunlight dish detergents, and this area also includes the company's line of institutional cleaning products. Unilever maintains production facilities in 88 countries and sells its products in an additional 70. About 47 percent of revenues originate in Europe, 21 percent in North America, 14 percent in the Asia-Pacific region, 12 percent in Latin America, and six percent in Africa and the Middle East.
Soap and Margarine Origins
William Hesketh Lever, later Lord Leverhulme, was born in Bolton, England, in 1851. The founder of Lever Brothers, Lever had a personality that combined 'the rationality of the business man with the restless ambitions of the explorer,' according to Unilever historian Charles Wilson. During the depression of the 1880s, Lever, then a salesman for his father's wholesale grocery business, recognized the advantages of not only selling, but also manufacturing, soap, a noncyclical necessity item. His father, James Lever, initially was opposed to the idea, believing that they should remain grocers, not manufacturers. He softened, however, in the face of his son's determination. In 1885 William established a soap factory in Warrington as a branch of the family grocery business. Within a short time Lever was selling his soap throughout the United Kingdom, as well as in continental Europe, North America, Australia, and South Africa. William also began a tradition that lasted well into the 20th century--that of producing all its raw components. Lever Brothers, a vertically integrated company, grew to include milling operations used to crush seeds into vegetable oil for margarine as well as packaging and transporting businesses for all of its products, which then included Lux, Lifebuoy, Rinso, and Sunlight soaps. In 1914, as the German Navy began to threaten the delivery of food imports-particularly Danish butter and Dutch margarine&mdashø Britain, the British government asked William Lever to produce margarine. He eagerly accepted the opportunity, believing that the margarine business would be compatible with the soap business because the products both required oils and fats as raw materials. Lever Brothers' successful diversification, however, now put the company in competition with Jurgens and Van den Bergh, two leading Dutch margarine companies. 1920s: The Birth of Unilever Jurgens and Van den Bergh both began commercial production of margarine in 1872. Fierce competitors for the remainder of the century, Van den Bergh and Jurgens decided in 1908 to pool their interests in an effort to make the best of the poor economic situation that existed in most of the world. Competition in the margarine industry had intensified, fueled by an increasing number of smaller firms, which were exporting their products and lowering their prices to get a piece of the market. Van den Bergh eliminated the potential for problems such as double taxation--which arose from its interests in both Holland and the United Kingdom--by creating and incorporating two parent companies for itself, one in Holland and one in England. In 1920 Jurgens and Van de Bergh decided there was strength in numbers and joined with another margarine manufacturer, Schicht, in Bohemia. In 1927 the three companies, borrowing the ideal of a dual structure from Van de Bergh, formed Margarine Union Limited, a group of Dutch firms with interests in England, and Margarine Unie N.V., located in Holland. Through the middle and late 1920s, the oil and fat trades continued to grow. Although the activities of Margarine Unie and Margarine Union were focused on edible fats (margarine), the companies had held soap interests throughout Europe for years.
Similarly, although Lever Brothers had produced margarine since World War I, its focus was soap. After two years of discussion, the companies decided that an 'alliance wasted less of everybody's substance than hostility' and merged on September 2, 1929. As it does today, the newly formed Unilever consisted of two holding companies: Unilever Limited, previously Margarine Union; and Unilever N.V., formerly Margarine Unie. The new organization included an equalization agreement to assure equal profits for shareholders of both companies, as well as identically structured boards. Unilever's parent companies were actually holding companies supervising the operations of hundreds of manufacturing and trading firms worldwide. The end result of the merger was a company that bought and processed more than a third of the world's commercial oils and fats and traded more products in more places than any other company in the world. Its manufacturing activities--which included detergents and toilet preparations, margarine and edible fats, food products, and oil milling and auxiliary businesses--were joined by a need for similar raw and refined materials, such as coconut, palm, cottonseed, and soybean oil, as well as whale oil and animal fats. 1930s: Surviving the Great Depression The Great Depression, which struck not long after the new company was formed, affected every aspect of Unilever's multifaceted operation: its raw material companies faced price decreases of 30 to 40 percent in the first year alone; cattle cake, sold as a product of its oil mills, suffered with the decline of the agricultural industry; margarine and other edible fats were affected by damaging competition as the price of butter plummeted; and the company's retail grocery and fish shops saw declining sales. As prices and profits around the world threatened to collapse, Unilever had to act quickly to build up an efficient system of control. The 'special committee' was established in September of 1930 to do that. Operating as a board of directors over the two boards the company already had, the special committee was designed to balance Dutch and British interests and act as an inner cabinet for the organization. It also began administering two committees established to deal with Unilever's world affairs: a continental committee to handle businesses in Europe, and an overseas committee to supervise business elsewhere. A new generation of management led Unilever through the 1930s: Francis D'Arcy Cooper, who had been chairman of Lever Brothers since William Lever's death in 1925; Georg Schicht, the former chairman of Schicht Company; and Paul Rijkens, who succeeded Anton Jurgens as chairman of Jurgens in 1933. It was Cooper who seemed to lead the efforts to turn the various companies that comprised Unilever into one AngloDutch team. It was also Cooper who convinced the board of the necessity for a reorganization in 1937, when the relationship between the profit-earning capacities of the Dutch and British companies found itself reversed. Originally, about two-thirds of Unilever's profits were earned by the Dutch group and one-third by the British group. By 1937, however, because of increasing trade conflicts in Europe, particularly in Germany, the situation had reversed. By selling the Lever Company’s assets outside Great Britain, including Lever Brothers Company in the
United States, to the Dutch arm of Unilever, the assets of the two groups were redistributed so that they would be nearly equal in volume and profits, which had always been the objective of the two parent companies. Before 1945 the oils and fats industries had progressed fairly smoothly. The only major industry breakthroughs were the discovery of the hydrogenation process just before World War I, which enabled manufacturers to turn oils into hard fats, and the possibility of adding vitamins to margarine in the 1920s, which created an opportunity for new health-related product claims. But it was not until the end of World War II that the industry in general, including Unilever, began to recognize the important relationship between marketing and research. Meantime, Unilever expanded its U.S. operations through two important acquisitions: Thomas J. Lipton Company, manufacturer of tea (1937), and the Pepsodent brand of toothpaste (1944). Postwar Era: Adapting to New Markets and Technology Although Unilever's growth until the mid-1940s was a result of expanded product lines and plant capacities, its greatest achievements between 1945 and 1965 were its adaptation to new markets and technology. The decade following World War II was a period of recovery, culminating by the early 1950s in rapid economic growth in much of the Western world. Until 1955 demand continued to rise and competition was not a major issue. Afterward, however, profit margins dropped, competition in Europe and North America sharpened, and success was less assured. Unilever's strategy was to acquire companies in new areas, particularly food and chemical manufacturers. Among the postwar acquisitions were U.K. frozen foods maker Birds Eye (1957) and U.S. ice cream novelty maker Good Humor (1961). 1980s: Restructuring and Major Acquisitions In the 1980s Unilever undertook a massive restructuring. The company sold most of its service and ancillary businesses, such as transport, packaging, advertising, and other services that were readily available on the market, and went on a buying spree, snapping up some 80 companies between 1984 and 1988. The restructuring was designed to concentrate the company in 'those businesses that we properly understand, in which we have critical mass, and where we believe we have a strong, competitive future,' Unilever PLC Chairman M.R. Angus told Management Today in 1988. Specifically, Unilever's core businesses were detergents, foods, toiletries, and specialty chemicals. In addition to increasing profitability in core areas, restructuring also helped Unilever execute its biggest acquisition to date, that of Chesebrough-Pond's in the United States in 1986. A company with sales of nearly $3 billion, Chesebrough owned such brands as Vaseline Intensive Care, Pond's Cold Cream, and Ragú spaghetti sauce. The acquisition allowed Unilever to fill out its international personal products business, particularly in the United States, where Unilever saw a higher profit potential. During the 1980s Unilever's detergent products posted a 50 percent growth in operating profit, while food products grew at a faster than normal rate. In the United
States, plans to take on longtime rival Procter & Gamble were successful in 1984, when Unilever's Wisk moved P & G's Cheer out of the number two spot in the laundry detergent market. In Europe, Unilever in 1984 completed its first hostile takeover attempt in 15 years, acquiring the British company Brooke Bond, the leading European tea company, for £376 million. Brooke Bond complemented Unilever's Lipton brand, the leader in the United States. Two years later, the company launched Wisk in the United Kingdom, as well as Breeze, its first soap powder introduced in the United Kingdom since the debut of Surf more than 30 years before. In 1989 Unilever became a major player in the world's perfume and cosmetic industry through three more acquisitions. It obtained Shering-Plough's perfume business in Europe; the Calvin Klein business from Minnetonka, Inc.; and, by far the largest purchase of the three, Fabergé Inc., the American producer of Chloe, Lagerfeld, and Fendi perfumes, for $1.55 billion. The upper-end cosmetics market was a high-margin business, and Unilever planned to step up marketing of its new products to raise sales. Positioning for the 21st Century As it entered the 1990s, Unilever had virtually completed reorganizing its European business to better compete within the evolving single market in that region. In 1991 the company further refined its operations by selling the last of its packaging businesses and by making provisions for the eventual sales of the majority of its agribusinesses. Unilever's flexible management structure and diverse product range were integral to its survival in the rapidly changing international market. In a 1992 Harvard Business Review article, Chairman and CEO Floris A. Maljers explained Unilever's management structure: 'The very nature of our products required proximity to local markets; economies of scale in certain functions justify a number of head-office departments; and the need to benefit from everybody's creativity and experience makes a sophisticated means of transferring information across our organization highly desirable. All of these factors led to our present structure: a matrix of individual managers around the world who nonetheless share a common vision and understanding of corporate strategy.' Despite poor performances by some of its subsidiaries and recessions in Europe and North America, Unilever's broad product range led to overall profit increases in both 1990 and 1991. In 1990 Unilever made substantial inroads into the newly opened markets created by the unification of Germany. The company began producing its Rama margarine at a former East German state plant in Chermnitz, established a task force to select sites for 23 Nordsee fish stores, and began distributing ice cream and frozen novelties to retailers in eastern Germany. In 1991 Unilever continued to battle with rival Procter & Gamble over the newly opened markets of the former Soviet Union. Unilever purchased an 80 percent stake in the Polish detergent firm Pollena Bydgoscz for $20 million, changing the name to Lever Polska, the first laundry detergent manufacturer to be privatized in Poland. The company earmarked approximately $24 million for product line expansions, including a fabric
conditioner and household cleaning products. Also in 1991 Michael Perry was named the U.K. cochairman of Unilever. Profits in Unilever's personal products division were down 11 percent in 1991, due to sluggish markets in the United States and only moderate growth in European markets. Unilever's newly purchased Elizabeth Arden and Calvin Klein, however, posted strong growth, supported by strong retailer relationships and $24 million in advertising expenditures. Such growth occurred despite an overall drop in department store cosmetic sales of nine percent from 1987 to 1992. In 1992, though, Elizabeth Arden profits began slipping, prompting the resignation of Joseph F. Ronchetti, Arden's CEO since 1978. Unilever underwent further restructuring of its personal products division, creating a prestigious subdivision geared toward introducing Calvin Klein and Elizabeth Arden into overseas markets. Unilever's fastest growing market in the early 1990s was in Asia. Although Unilever had been operating in Asia since its earliest days, the company was just beginning to tap into the region's newly acquired wealth. Asian sales of personal products, detergent, and packaged foods were growing more than twice as fast as sales in the United States and Europe. By 1992 Unilever was composed of some 500 companies conducting business in 75 different countries. Unilever continued to make acquisitions in the mid-1990s, completing more than 100 purchases between 1992 and 1996, more than half of which were in foods. In 1993 Unilever gained the number one position in the U.S. ice cream market through the completion of two acquisitions. The company paid $155 million to Empire of Carolina Inc. for the Klondike and Popsicle brands, and about $215 million for the ice cream business of Philip Morris's Kraft General Foods unit, which included the Sealtest and Breyers brands. The acquired brands were merged with the Good Humor line within Good Humor Breyers Ice Cream Company, a subsidiary based in Green Bay, Wisconsin. Also in 1993 Unilever launched a restructuring, taking a US$750 million charge against earnings to close or consolidate 60 plants and lay off 7,500 employees. One the largest acquisitions of this period was the 1996 takeover of Chicago-based Helene Curtis Industries Inc., manufacturer and marketer of personal care products, primarily shampoo and conditioners, hand and body lotions, and deodorants and antiperspirants. Purchased for about $770 million, Helene Curtis's portfolio included such brands as Suave, Finesse, and Salon Selectives. Another significant 1996 acquisition was that of Northbrook, Illinois-based Diversey Corporation, a maker of institutional chemical cleansers and sanitizers, and Unilever's first foray into the industrial cleaning sector. Unilever and Procter & Gamble (P & G) began battling again in 1994, this time for supremacy in the European detergent sector. Unilever aggressively went after P & G's market-leading brand, Ariel, with a new soap marketed under the names Persil Power, Omo Power, and Skip Power. Unilever spent $175 million developing the product and another $292 million marketing it during 1994. The product included a manganese complex molecule that Unilever claimed cleaned clothes better at lower temperatures
than rival products. P & G conducted tests on Persil Power, however, which indicated that the detergent resulted in abnormal wear after as few as 15 washings. When P & G publicized its findings, Unilever sued the company for slander. But the suit was quickly withdrawn after Unilever admitted that the detergent did indeed contain a flaw--a flaw that had not been uncovered in the pre-launch testing--and could damage clothes when exposed to a particular combination of dyes. Unilever reformulated the product, but not before it had turned into a public relations nightmare. In the end, the Power formula was abandoned entirely and Unilever, therefore, took a £57 million write-off in its 1994 accounts. According to Andrew Lorenz, writing in the July 1996 issue of Management Today, the Persil Power debacle served as a catalyst for fundamental management reorganization. On September 1, 1996, the three-person special committee that had run Unilever since its formation in 1929 was replaced by a seven-member executive committee composed of the chairmen of Unilever N.V. and Unilever PLC and five highranking Unilever executives. At the same time the company did away with a complex two-tiered management structure that included both worldwide product management groups and regional management groups. In their place was created a single team of 14 business presidents, with each president responsible for a portion of the European operations (e.g., the food and beverage Europe group), a portion of the North American operations (e.g., the home and personal care North America group), or a region of the rest of the world (Africa, Latin America, etc.). As was typical of the time, this streamlining was aimed at improving decision-making by pushing authority down to a lower level. Along with this major reorganization came a change in the chairmanships, with Niall FitzGerald replacing Michael Perry as U.K. cochairman; an Irishman, FitzGerald became the first non-English, non-Dutch to serve as cochairman, and he also reached the post despite having been in charge of Unilever's detergent operations during the Persil Power debacle. Continuing on the Dutch side was Morris Tabaksblat, who had replaced Maljers as Dutch cochairman in 1994. In the late 1990s FitzGerald and Tabaksblat oversaw a comprehensive review of Unilever's wide-ranging businesses in an effort to focus on the strongest core areas: ice cream, margarines, tea-based beverages, detergents, personal soaps, skin care products, and prestige fragrances. Several other areas were identified as 'developing' core areas: frozen foods, culinary products (sauces and side dishes), hair care products, oral care products, deodorants, household care products, and industrial cleaning products. Businesses outside of these areas were candidates for disposal. In 1996 the company sold its mass-market cosmetics business, its few remaining animal feed operations, some oilprocessing units, and a U.K. franchiser of Caterpillar Inc. heavy equipment. Unilever completed its largest disposal the following year, selling its specialty chemicals business to Imperial Chemical Industries PLC for about US$8 billion. The sale resulted in a net profit of US$4.55 billion, part of which cleared Unilever's US$2.78 billion in debt; the proceeds also contributed to a war chest that expanded to US$9.6 billion. The company made one large purchase in 1997, the US$930 million acquisition of Kibon S.A. Indústrias Alimenticia, the number one ice cream maker in Brazil. In 1998 Unilever sold its Plant Breeding International Cambridge Limited unit to Monsanto for about US$525 million. Unilever also sold off its Nordsee fast-food fish chain in the late 1990s.
In early 1999 Unilever spent a large portion of its war chest on a special dividend to shareholders of £5 billion (US$8.1 billion). In July of that year Tabaksblat retired and was replaced as Dutch cochairman by Antony Burgmans. Two months later Unilever announced that it would eliminate about 1,200 of its brands to focus on around 400 regionally or globally powerful brands--a group that accounted for almost 90 percent of 1998 revenue. This sweeping overhaul of the product portfolio was aimed at increasing annual growth rates from four percent to six to eight percent and at eventually reaping annual savings of £1 billion. Unilever ended the 20th century with a strategic plan that included a focus on top brands within core market sectors and an emphasis on growth within developing countries. Although it was facing considerable competitive pressures in various markets around the world--particularly from Procter & Gamble--Unilever was clearly no longer the risk-averse, staid organization of the past. The whirlwind events of the late 1990s seemed destined to position the company as one of the most formidable global consumer products companies of the 21st century. Sales Revenue & Value of Stocks: Unilever’s mission is to add vitality to life. It is estimated that people around the world in 150 countries uses Unilever products 150 times a day. The 2006 sales revenue was 39.6 billion pounds. This figure came from the Americas 13.8 billion (36%), from Europe 15.0 (38%) billion and from Asia/Africa 10.9 billion pounds (27%). Unilever has approximately 206,000 employees working all over the world. By 2010, Unilever plans to improve its financial standard by: • Ungearearing free cash flow in the period 2005-2010 of €25-30 billion • Improvement in Return on Invested Capital • Underlying sales growth of 3-5% p.a. • Operating margin of over 15% by 2010 after normal restructuring • Improving capital and tax efficiency
Value of Stocks: Unilever PLC ordinary shares are listed on the London Stock Exchange and as American Depositary Receipts in New York. Each ADR represents 1 underlying ordinary PLC share. There are 1 714 727 700 NV ordinary shares in issue, each with a nominal value of €0.16. There are 1 310 156 361 PLC ordinary shares in issue, each with a
nominal value of 3 1/9 pence. The equalization agreement between NV and PLC is such that each NV ordinary share has the same rights and benefits as each PLC ordinary share. (Unilever NV ordinary shares are listed on the stock exchanges in Amsterdam and as New York shares on the New York Stock Exchange.)
Unilever Corporation brands: 1. Food brands
• • •
Becel, Flora- Becel / Flora products contain Omega 3 and 6 that help keep your heart healthy. Bertolli- Bringing the Mediterranean lifestyle into your home. Blue Band, Rama- Try our healthy, affordable and convenient range of margarine products. Heartbrand- Our Heart ice cream range aims to inspire people of all ages to taste the fun side of life. Hellmann's, Amora- For sensational food and moods! Knorr- Our products help people make every meal a little more special. Lipton- Making a big splash in the global beverages market.
•
Slim·Fast- Millions of people all over the world have lost weight with Slim·Fast.
• • • •
2. Personal care brands
•
Axe- Helping males keep a step ahead in the mating game.
•
• • •
Dove- Celebrating beauty's diversity • Lifebuoy- Accessible hardworking soaps and liquid gels. • Lux- Lux offers a range of highly appealing beauty products at a price you can afford. • Pond's- Helping to keep your skin looking and feeling naturally beautiful. • Rexona- Rexona gives you the confidence to handle whatever the day has in store. • Signal, Close Up- Protecting and enhancing your oral health 24 hours a day. Sunsilk- Sunsilk provides real solutions to women's everyday hair needs everywhere. Vaseline- To help you enjoy great, healthy skin everyday. Clear- helps to eliminate dandruff
3. Home care brands
Cif- The power to deal with even the toughest dirt, every day. • Comfort- The best care for your clothes, yourself and your family. • Domestos- Experts in killing germs. With Domestos you can be sure the job is done. • Omo- Giving your kids the freedom to get dirty, safe in the knowledge that Omo will remove those awkward stains. •
• • •
Radiant-No other brand knows more about delivering superior whiteness than Radiant. Sunlight-Sunlight uses the magic of natural ingredients to create unbeatable results. Surf- Surf is on a mission to make everything it touches brighter – through cleaning and more!
Major Selling Products: About 54 percent of revenues are generated in the foods sector, which includes such brands as Knorr , Amora, Calve, Hellman’s, and Wish Bone dressings; Bertolli olive oil; Rama, Blue band, and Country Crock margarines; Becel and Flora heart healthy foodsLipton tea; and Slim Fast weight management products.
28 percent of sales com from the personal care area; brands include the Lux female beauty line, Dove and Lifebouy soup, Ponds skin care products, Rexona deodorants, Suave and Sunsilk hair care items, Signal and Close Up oral care products, and the Axe male grooming line, as well as such miscellaneous brands as Q- Tips and Vaseline. The third major sector is the home care products, which is responsible for about 18 percent of turnover; brands include Omo, Skip, Wisk, Surf, and all laundry detergentsa, Comfort and Snuggle fabric conditioners and softeners, Sunlight dis detergents, and Cif and Domestos household cleaners. Unilever maintains more than 300 production facilities around the world and has operations in more than 100 countries. About 34 percent in of revenues originate in Western Europe, 22 percent in North America, 18 percent on Asia Pacific region, 13 percent in Latin America, 9 percent in Africa, the Middle East, and Turkey, and 4 percent in central Europe/ Russia.
Market share and competition: Top Unilever Competitors: Company Proctor & Gamble Kraft Foods Nestle
Location Cincinnati,OH Northfield, IL Vevey, Switzerland
Competitor Comparison Top Segment
Unilever C/G Foods
P&G Consumer Care
Kraft Food
Nestle Food
Top Brand CEO Stock per share Growth Revenues Revenue Growth International Business Segments Employees
Dove A.Burgmans $66.03
Tide A.G.Lefley $53.76
Mac & Cheese R.Deromedi $30.70
KitKat P.Letmathe $66.90
15.55% $42.942m -11.93%
9.25% $28.2BL 19%
8.2% $31,010m 4.3%
11.23% $69.BL -1.93%
100+ 3
42 5
150+ 5
86 6
234000
110000
10600
253000
(source: Hoovers business Intelligence guide)
Unilever Philippines started as an oil milling business which at its peak produced nearly 100,000 tons of coconut oil annually. Today, the company is a leading manufacturer of home and personal care products, foods, and ice cream. With an annual sale of over Php 24 billion, Unilever Philippines employs over 2,000 people nationally. The company has been a leader in introducing new technologies into the country since the early days of its existence - margarine production in the 1930’s, non-soap detergents, shampoos and toothpaste in the 1960’s and 1970’s and state of the art sulphonation technology and cogeneration power plant in the 1980’s. The nineties had seen the company focusing on several improvements in the Environment, front one of which was the introduction of the first 100% biodegradable detergent bar in the Philippines. Unilever works closely with the community and other NGOs to protect and improve the environment. In year 2000, the company received recognition for its environment management systems with an ISO 14001 accreditation.
B. Product History, Profile and Content: Nowadays, women find shampoos that contain an ingredient that makes their hair longer and stronger for a single of month.
Introducing, the new Sunsilk Frutamin Strong & Long shampoo with fruit extracts and vitamins that helps in protecting the hair from breakage and split ends. Sunsilk shampoo truly understands hair. It aims to provide specific solutions to everyday hair problems of women by offering a range of shampoos and conditioners to suit various types of hair and solutions to different types of hair problems. Shiny, Healthy Manageable Hair! – This is the vision for Sunsilk, because, every woman knows, when you get your hair right- everything’s just right! Sunsilk offers different varieties of shampoo such as; Smooth & Manageable Soft & Smooth Damaged Repair Hair Fall Solution Anti-Dandruff Fresh Fruit (summer edition) Other shampoo products of sunsilk are 2 in 1 shampoo and conditioner, styling products, treatment products and many more. Sunsilk is one of the many brands of shampoo in the Philippines that became popular and in-demand for its soothing aroma that also offers a way to get straighter and shinier hair. First launched in the UK by Unilever group in 1954, people quickly begun to notice its unique blend compared to other brands of shampoos. By 1959, Sunsilk was already available in eighteen different countries worldwide. Currently, Sunsilk products are available in over 50 countries throughout the Middle East, North Africa, Latin America, and in the Philippines. So what made sunsilk Philippines so popular? Among all others, Sunsilk gained its popularity because of its marketing campaigns. In the early years, Sunsilk focused much of its marketing attention on gaining international presence. To do this, they targeted different market segments or countries with specialized products designed to address hair "issues" of each culture. For example in the UK, the core benefit in the 1960s was shiny hair. High interest internationally led to a dramatic decline in support in the United States and UK. Because of this, many years went by with little or no advertising which caused the brand to be viewed as targeted at older women. Although this was not Sunsilk's intention the outcome was inevitable. A new campaign was launched to recruit younger users. To do this, products also needed rejuvenating. Sunsilk decided that in addition to segmenting markets country by country, they should also segment by hair type within each market. The new products focused on hair color, texture, feeling, dryness, etc. The updated Sunsilk campaign, "Get Hairapy", followed the same strategy, marking a bold move towards users in their 20s and upwards said to be in their "quarter-life crisis". The target audience was also defined as single, fashion-conscious, working women who economized when looking good: women"on-the-go". The new product lines, which feature product threesomes include: Anti-Flat, AntiPoof, Hydra TLC, Straighten-Up, De-Frizz, No Major Issues, ThermaShine, Beyond
Brunette Color Boost (Auburn tones and non-highlighted brunette colorers) and Blonde Bombshell (all over blondes and highlighters). Sunsilk’s latest campaign, Life Can’t Wait, aims to inspire women all over the globe to live their lives to the fullest. To launch Sunsilk’s campaign the brand unveiled their Life Can't Wait advertisement during the Super Bowl XLII on February 3 2008. The founding idea behind the campaign is that hair can dramatically alter a girl’s mood and actions. The philosophy behind it is that by taking appearance into their own hands, girls are equally taking positive steps towards being more in control of their life: “Hair On=Life On”. Life Can't Wait campaign clearly gave a boost in the demand for Sunsilk Philippines by Filipinos all over the world. Today, Sunsilk Philippines is considered as one of the most popularly in-demand throughout the Philippines, recognized not only for women use, but also for the men. Other brands of Unilever Philippines are the following: Axe Selecta Ladies choice Cream silk Bestfoods SunSilk Lipton Domex Clear Surf Ponds Dove Close up Vaseline Lotion Rexona Knorr Comfort Vaseline Shampoo Our brands are trusted everywhere and, by listening to the people who bought them, we have grown into one of the world’s most successful consumer goods companies.
Company Perspectives:
Our purpose in Unilever is to meet the everyday needs of people, anticipate the aspirations of our consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of life. Our deep roots in local cultures and markets around the world are our unparalleled inheritance and the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers--a truly multilocal multinational. Our long term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively and to a willingness to embrace new ideas and learn continuously. We believe that to succeed requires the highest standards of corporate behavior towards our employees, consumers and the societies and world in which we live. This is Unilever's road to sustainable, profitable growth for our business and long-term value creation for our shareholders and employees.
Our mission Our mission is to add Vitality to life. We meet everyday needs for nutrition; hygiene and personal care with brands that help people look good, feel good and get more out of life.
Purpose & principles Our corporate purpose states that to succeed requires "the highest standards of corporate behavior towards everyone we work with, the communities we touch, and the environment on which we have an impact."
II. MARKETING ENVIRONMENT
Sunsilk shampoo maintains its # 1 position in the market. It’s always being patronized by a lot of women in the Philippines. That’s why, it’s also the #1 most trusted and most chosen shampoo product by the women. Last July, Unilever Philippines introduced its new product Sunsilk strong & long shampoo wherein Sarah Geronimo was chosen as the new endorser. Some of the endorsers of sunsilk were Marian Rivera, Heart Evangelista, Maja Salvador and Nikki Gil. Sunsilk strong & long shampoo was formulated to give you a long and strong hair within a month of using it. Your hair will grow up to 1.2 cm a month through the help of frutamin extract and vitamins nutrients. Unilever Phils. is the only company that produced a shampoo during summer. This is the Sunsilk Summer fresh fruit. A month ago, we also formulated a 3 pack sachet with two sunsilk shampoo with 1 cream silk conditioner. As we said our main concern is to give consumers a more economical sachet. Imagine 3 in 1 sachet, what more can you wish for! Since our product is being used most of the time, we formulate a more economical and affordable package of Sunsilk. This is to make our product more affordable to those who have lower income. We come up with Sunsilk shampoo 6 pack of sachet of 12ml with SRP P22.95. It means for every sachet, it will cost a P3.825 price And there’s more, we also made a two chambered sachet which contained 10 ml with SRP P 4.50 for the enjoyment of our valued consumers.
Target Market: Our main target market is females between age group 16-25 and our sub- target market is females 26 to 30 years old and above belonging the upper and lower classes. Men should be considered also, since some men use SunSilk too. Nevertheless, in our promotional activities, we cover the whole market irrespective what class they belong. Second, in terms of geographical location, we preferred the provinces as our target place because the people in the province prefer to use an alternative shampoo like aloe vera, “gugo” and etc. In Mega Manila, our shampoo products were stable .They are being patronized by many Filipino so we do not worry about it.
Competitors’ Review: •
The major competitors of Sunsilk in the rural and urban areas are the following:
1. Pantene shampoo by Procter & Gamble Procter & Gamble Co. (P&G, NYSE: PG) is a Fortune 500, American multinational corporation headquartered in Cincinnati, Ohio, that manufactures a wide range of consumer goods. As of 2008, P&G is the 8th largest corporation in the world by market capitalization and 14th largest US company by profit. It is 10th in Fortune's Most Admired Companies list (as of 2007). P&G is credited with many business innovations including brand management and the soap opera. According to the Nielsen Company, in 2007 P&G spent more on U.S. advertising than any other company; the $2.62 billion spent by P&G is almost twice as much as that spent by General Motors, the next company on the Nielsen list. P&G was named 2008 Advertiser of the Year by Cannes International Advertising Festival. William Procter, a candlemaker, and James Gamble, a soapmaker, immigrants from England and Ireland, respectively, who had settled earlier in Cincinnati, who met as they both married sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-in law, called a meeting in which he persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born. In 1859, sales reached one million dollars. By this point, approximately eighty employees worked for Procter & Gamble. During the American Civil War, the company won contracts to supply the Union Army with soap and candles. In addition to the increased profits experienced during the war, the military contracts introduced soldiers from all over the country to Procter & Gamble's products. In the 1880s, Procter & Gamble began to market a new product, an inexpensive soap that floats in water. The company called the soap Ivory. William Arnett Procter, William Procter's grandson, began a profit-sharing program for the company's workforce in 1887. By giving the workers a stake in the company, he correctly assumed that they would be less likely to go on strike. The company began to build factories in other locations in the United States because the demand for products had outgrown the capacity of the Cincinnati facilities. The company's leaders began to diversify its products as well and, in 1911, began producing Crisco, a shortening made of vegetable oils rather than animal fats. As radio became more popular in the 1920s and 1930s, the company sponsored a number of radio programs. As a result, these shows often became commonly known as "soap operas". The company moved into other countries, both in terms of manufacturing and product sales, becoming an international corporation with its 1930 acquisition of the Newcastle upon Tyne-based Thomas Hedley Co.. Procter & Gamble maintained a
strong link to the North East of England after this acquisition. Numerous new products and brand names were introduced over time, and Procter & Gamble began branching out into new areas. The company introduced "Tide" laundry detergent in 1946 and "Prell" shampoo in 1947. In 1955, Procter & Gamble began selling the first toothpaste to contain fluoride, known as "Crest". Branching out once again in 1957, the company purchased Charmin Paper Mills and began manufacturing toilet paper and other paper products. Once again focusing on laundry, Procter & Gamble began making "Downy" fabric softener in 1960 and "Bounce" fabric softener sheets in 1972. One of the most revolutionary products to come out on the market was the company's "Pampers", first test-marketed in 1961. Prior to this point disposable diapers were not popular, although Johnson & Johnson had developed a product called "Chux". Babies always wore cloth diapers, which were leaky and labor intensive to wash. Pampers provided a convenient alternative. Procter & Gamble acquired a number of other companies that diversified its product line and significantly increased profits. These acquisitions included Folgers Coffee, Norwich Eaton Pharmaceuticals (the makers of Pepto-Bismol), RichardsonVicks, Noxell (Noxzema), Shulton's Old Spice, Max Factor, and the Iams Company, among others. In 1994, the company made headlines for big losses resulting from leveraged positions in interest rate derivatives, and subsequently sued Bankers Trust for fraud; this placed their management in the unusual position of testifying in court that they had entered into transactions that they were not capable of understanding. In 1996, Procter & Gamble again made headlines when the Food and Drug Administration approved a new product developed by the company, Olestra. Also known by its brand name Olean, Olestra is a lower-calorie substitute for fat in cooking potato chips and other snacks that during its development stages is known to have caused anal leakage and gastrointestinal difficulties in humans. Procter & Gamble has dramatically expanded throughout its history, but its headquarters still remains in Cincinnati {Source, Ohio History Central}. In January 2005 P&G announced an acquisition of Gillette, forming the largest consumer goods company and placing Unilever into second place. This added brands such as Gillette razors, Duracell, Braun, and Oral-B to their stable. In 2008, P&G branched into the record business with its sponsorship of Tag Records, as an endorsement for TAG Body Spray.
P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study. For example, P&G's corporate strategists must account for the likelihood of one of their products cannibalizing the sales of another.
On August 24, 2009, the Irish-based pharmaceutical company Warner Chilcott announced they had bought P&G's prescription-drug business for $3.1 billion Pantene was created in 1947 by the Swiss drug manufacturer HoffmanLaRoche. It was primarily a European shampoo company until it was acquired in 1983 by Richardson-Vicks, who expanded the product line to 100 products, sold mainly in salons and department stores. They also expanded Pantene's coverage to include the United States and Canada. Pantene is a brand of hair care products owned by Procter & Gamble. The brand's best-known product is the conditioning shampoo Pantene Pro-V. The brand name stands for Pantene Pro-Vitamin. When Richardson-Vicks was acquired in 1985 by Proctor and Gamble, the conglomerate acquired the hair product line along with the sale. P&G expanded the product line and its sales outlets to include drug and variety stores as well as salons. P&G also developed, in 2003, the first product line by a major manufacturer designed exclusively for women of color. They followed, in 2005, with a line designed exclusively for Hispanic women. Other Brands of P&G; • • • • • • • • • • • • • • • • • • • • •
Always feminine hygiene products, including maxi pads, pantiliners(sometimes called Alldays), and feminine wipes Ariel washing powder/liquid Bounty paper towels, sold in the United States and Canada Braun, a small-appliances manufacturer specializing in electric razors, coffeemakers, toasters, and blenders Charmin bathroom tissue and moist towelettes Crest toothpaste Dawn dishwashing detergent Downy/Lenor fabric softener Duracell batteries and flashlights Folgers coffee. In June 2008 it was announced that Folgers would be acquired by The J.M. Smucker Co. based in Orrville, Ohio, by a projected date of Nov, 2008. Gillette, a safety razor manufacturer Head & Shoulders shampoo Iams dog and cat foods Nice n Easy hair color product Olay Personal and beauty products Oral-B inter-dental products Pampers & Pampers Kandoo disposable diapers and moist towelettes Pantene haircare products Pringles potato chips Tide laundry detergent Wella hair care products
Pantene Hair Products Pantene Pro-V (pro- vitamin) products are the top-selling hair products in the world. Their product line ranges from shampoo to hair color to conditioner to hair spray. The current product line includes: • • • • • • • •
•
•
Smooth and Sleek - Enriched with amino Pro-V complex to give hair a sleek, glowing finish. Sheer Volume - Designed to add body and shine. Daily Moisture Renewal - Designed to hydrate hair and protect it from urban pollutants. Color Revival - Designed to maintain color-treated hair, true to color. Hydrating Curls - Designed especially for naturally curly hair to promote healthy and full curls Classic Care - A well-balanced line, designed to promote healthy, shiny hair. Full and Thick - Designed for thin and thinning hair to make it look full and full of body. Relaxed and Natural - Designed for the special moisturizing and relaxing needs for hair of women of color. This is the first such line by a major hair products manufacturer. Pantene Pro-V Expression - The company's top of the line products, they include a special Pro-V formula that combines the best of all of their products for color-fast, shiny, and full-looking hair. Extra Liso - Designed with the Hispanic woman in mind, this line has extra moisturizing and conditioning.
Shampoo Strength*, Moisture and Shine in 1 Week** Pantene shampoos are specially designed to meet your specific hair needs, and help keep your hair strong, healthy and looking fabulous. * against damage ** shampoo & conditioning vs. non-conditioning shampoo
COLOR REVIVAL SHAMPOO Protects the shade of your color-treated hair.
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ANTI-FRIZZ SHAMPOO Helps protect and eliminate frizz.
hair against damage for a fuller look. 2.8 of 5 average rating
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ICE SHINE SHAMPOO Use it as a foundation to an ice-shining look.
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CURLS SHAMPOO Helps invigorate curls as it helps remove buildup and residue.
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CLASSIC CARE CLARIFYING SHAMPOO Get clean hair
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MOISTURE RENEWAL SHAMPOO Helps repair the look of damage.
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EXTRA STRAIGHT SHAMPOO For straight hair that looks defined and disciplined.
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CLASSIC CARE CLEAN SHAMPOO The first step to a classic look.
• •
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FULL & THICK SHAMPOO Helps strengthen
NATURE FUSION MOISTURE BALANCE
SHAMPOO Moisture Balance: For touchable softness and strength*.
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VITALITY SHAMPOO Smooth Vitality: For silky smoothness and strength*
designed to smooth and condition hair.
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NATURE FUSION SMOOTH
SMOOTH SHAMPOO Specially
Other products of Pantene are 2-in 1 shampoo plus conditioner, conditioner, styling, and treatment products
2. Rejoice shampoo by Procter and Gamble P&G announces the launch of Asia’s No. 1 shampoo – Rejoice. Rejoice with its patented ‘Micro-Silicone’ conditioning technology gives twice as smooth, and easy to comb hair versus ordinary shampoos. Rejoice has a strong global heritage and is the No. 1 i.e., the largest selling shampoo in Asia (China, Japan, Singapore, Thailand, Philippines, Hong Kong, Indonesia, Malaysia, Vietnam, etc.).
It is loved by consumers in 85 countries. Over the years Rejoice has enjoyed the endorsements of Tennis Star Michael Chang, and leading Asian Celebrity Hair Stylists such as Gusnaldi (Indonesia) and James Cooper (Philippines). Historically, Rejoice was the world’s first Shampoo-cum-Conditioner launched in 1987, and in 1995, it was awarded a Gold Medal for Technology by Former US President – Bill Clinton for its innovative technological breakthrough of the ‘shampoo + conditioner’ formula specially designed for making hair softer and smoother. Rejoice has been launched by P&G to specifically meet the unique needs of Filipinas consumers. The shampoo’s unique high-tech suspension system holds the surfactant and conditioner together, thus ensuring both wet and dry conditioning. Wet conditioning makes it easy to comb hair when wet, while dry conditioning
ensures that hair remains smooth even after it has dried up, thus making tangles a thing of the past. Rejoice is mild enough for everyday use and has a fresh floral fragrance that leaves hair pleasantly scented for several hours after use. Given the diversity of Filipino consumers and their varied hair needs, P&G has launched Rejoice in three unique variants: • Rejoice Rich: Specially formulated with higher conditioning to make hair extra smooth and superbly easy to comb. Suitable for those with dry hair. • Rejoice Silky Clean: Specially formulated for hair which is oiled frequently. It provides gentle, effective cleaning of oil and dirt from hair and then conditions the hair to make it silky smooth. Suitable for those who oil hair/ whose hair tends to get naturally oily or sticky. • Rejoice Complete: Specially formulated as a 3-in-1 shampoo that fights dandruff, and gives silky smooth hair that smells great all day long. Suitable for the entire family. • Rejoice Fruity • Rejoice anti- hair fall: helps to strengthen and decreases the hair fall. • Rejoice anti - frizz
Other products are rejoice conditioner. Rejoice shampoo is under the Procter & gamble Corp.
3. Head & Shoulders by Procter and Gamble Procter & Gamble researchers first decided on making a new anti-dandruff shampoo in 1950. Nearly a decade of research went into making a new formula, which introduced the product pyrithione zinc into a shampoo. Head & Shoulders was first introduced to the U.S. market in November 1961, as a blue-green shampoo formula. Head & Shoulders helps eliminate scalp dryness, itch and irritation, for hair that's 100% flake-free with regular use. The brand's "Extra Strength" product had a cameo role in the 2001 film Evolution, where its startling copper orange color was shown.
The idea for Head & Shoulders dates back to about 1950. At that time, Procter & Gamble research determined that consumers were not completely satisfied with the then-existing anti-dandruff shampoos. What we had to do was find a new and effective ingredient against dandruff. After ten years of searching, P&G scientists found one that really worked! Pyrithione zinc. In the 1950s, Procter & Gamble began screening tests to identify dandruff control agents. Over two thousand such ingredients were evaluated. Basically each compound was screened for three properties: • • •
It must retain its activity in the presence of sebum (scalp oils). It must remain on the scalp after shampooing. It must be safe for normal usage in the home. In 1960, we had a product and a code name, then came hundreds of tests on the product. For instance, we did safety tests to find out whether it would really work in the home. (It did.) Could people see the results? (They did.) How would it hold up during shipping? How would it withstand heat and cold? We found the answers to all these questions and more. By the spring of 1961, we were ready to give our shampoo a "real" name and start work on the packaging, displays, advertising, and marketing programs that would introduce it to the public. In November 1961, the code name became a brand name: Head & Shoulders. We were then ready for the most crucial phase: Marketing the product in a few selected areas. Why didn't we make it available everywhere in the country? At Procter & Gamble, no product is sold nationwide until it has first proven itself successful in limited areas.
Active Ingredients In all the years of our testing, no ingredient has ever performed better than Pyrithione zinc, the dandruff control agent in Head & Shoulders. Pyrithione zinc comprises approximately 1% of the Head & Shoulders formula. Pyrithione zinc is able to inhibit the growth of the microorganisms on the scalp which are believed to play a significant role in the cause of dandruff. This ingredient actually remains on the scalp after shampooing, thus continuing to fight the causes of dandruff. Our tests show that regular use of Head & Shoulders is required to keep dandruff flaking under control. Basically, Pyrithione zinc is an antimicrobial agent that works especially well on the microbes believed to cause dandruff. Furthermore, the active ingredient goes straight to the scalp, where it's needed, and doesn't affect the hair. Pyrithione
zinc is the official chemical name for the compound, but the structural name is zinc 2-pyridinethiol-1-oxide. The empirical formula is C10H8N2O2S2Zn and it has a molecular weight of 317.92. Products of Head & Shoulders:
Head & Shoulders Smooth & Silky- for a silky smooth look Head & Shoulders Extra Volume- to give volume and body Head & Shoulders Restoring Shine- to restore natural shine Head & Shoulders Ocean Lift- to invigorate hair and scalp Head & Shoulders Citrus Breeze- uplifting clean Head & Shoulders Refresh- featuring natural mint Head & Shoulders Sensitive Care- with aloe vera & moisturizers, soothes the scalp Head & Shoulders Dry Scalp Care- for dry scalp and itch Head & Shoulders Classic Clean- US #1 selling shampoo
4. Palmolive shampoo by Colgate- Palmolive Colgate-Palmolive Company is an American diversified multinational corporation focused on the production, distribution and provision of household, health care and personal products, such as soaps, detergents, and oral hygiene products (including toothpaste and toothbrushes). Under its "Hill's" brand, it is also a manufacturer of veterinary products. The company's corporate offices are on Park Avenue in New York City, across from the Waldorf Astoria. In 1806, William Colgate, himself a soap and candle maker, opened up a starch, soap, and candle factory on Dutch Street in New York City under the name of "William Colgate & Company". In the 1840s, the firm began selling individual bars in uniform weights. In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son. In 1872, Colgate introduced Cashmere Bouquet, a perfumed soap. In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars. His company sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896. By 1908 they initiated mass selling of toothpaste in tubes. His other son, James Boorman Colgate, was a primary trustee of Colgate University (formerly Madison University). In Milwaukee, Wisconsin, the "B.J. Johnson Company" was making a soap entirely of palm and olive oil, the formula of which was developed by B.J. Johnson in 1898. The soap was popular enough to rename their company after it - "Palmolive". At the turn of the century Palmolive, which contained both palm and olive oils, was the world's best-selling soap, and extensive advertising included The Palmolive Hour, a weekly radio concert program which began in 1927. A Kansas based soap manufacturer known as the "Peet Brothers" merged with Palmolive to become Palmolive-Peet. In 1928, Palmolive-Peet bought the Colgate Company to create the
Colgate-Palmolive-Peet Company. In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive Company", the current name. Colgate-Palmolive has long been in fierce competition with Procter & Gamble, the world's largest soap and detergent maker. P&G introduced its Tide laundry detergent shortly after World War II, and thousands of consumers turned from Colgate's soaps to the new product. Colgate lost its number one place in the toothpaste market when P&G started putting fluoride in its toothpaste. In the beginning of television, "Colgate-Palmolive" wished to compete with Procter & Gamble as a sponsor of soap operas. Although the company sponsored many shows in part, they were most famous for being the full sponsor of the serial The Doctors. George Henry Lesch was president, CEO, and chairman of the board of Colgate-Palmolive in the 1960s and 1970s, and during that time transformed it into a modern company with major restructuring. In 2005, Colgate sold the underperforming brands Fab, Dynamo, Arctic Power, ABC, Cold Power and Fresh Start, as well as the license of the Ajax brand for laundry detergents in the U.S, Canada and Puerto Rico, to Phoenix Brands, LLC as part of their plan to focus on their higher margin oral, personal, and pet care products. In 2006, Colgate-Palmolive announced the intended acquisition of Tom's of Maine, a leading maker of natural toothpaste, for US $100M. Tom's of Maine was founded by Tom Chappell in 1970. Today, Colgate has numerous subsidiary organizations spanning 200 countries, but it is publicly listed in only two, the United States and India.
In June 2007, counterfeit Colgate toothpaste imported from China was found to be contaminated with diethylene glycol, and several people in eastern U.S. reported experiencing headaches and pain after using the product. The tainted products can be identified by the claim to be manufactured in South Africa by Colgate-Palmolive South Africa LTD, they are 5oz/100ml tubes (a size which Colgate does not sell in the United States) and the tubes/packaging contain numerous mis-spellings on their labels. Colgate-Palmolive claims that they do not import their products from South Africa into the United States or Canada and that DEG is never and was never used in any of their products anywhere in the world. The counterfeit products were found in smaller "mom and pop" stores, dollar stores and discount stores in at least four states. In 1926, Colgate- Palmolive introduced in the Philippines. The Palmolive shampoo have a variety to choose from like Palmolive Naturals, Palmolive Aroma Therapy, Gard Anti Dandruff shampoo and the last offer of Palmolive, Palmolive Fashion Girl Shampoo which created for the girls ages 8-12 years old. Its ingredients have mild ingredients that very suitable for the
hair of the girls, more fragrance and effective to remove dirt, less than harm to the scalp. Other products of Palmolive shampoo is conditioner. Other product of Colgate- Palmolive are;
Toothpastes Toothbrushes From the Dentist Whitening Products Mouthwash
Dishwashing Products Cleansers Bar Soap Conditioner Shampoo Shower Gel Skin Care
5. BioLink VCO shampoo by Splash Corp. Splash Corporation manufactures and markets personal care products and is the personal care arm of the Splash Group of Companies which manufactures and markets personal care products. The Splash Group is composed of wholly-owned Philippine companies with business interests in personal care manufacturing and marketing, international distribution, and recently, health and wellness products development and marketing. Founded in 1985, Splash was able to grow from a Php12,000 backyard business into a Php4 billion enterprise through the vision, innovation, and commitment of its founders, Dr. Rolando B. Hortaleza and Dr. Rosalinda A. Hortaleza. Being consistently in the Top 300 corporations in the Philippines since 1998, the Company has established its reputation as one of the formidable players in the Philippine personal care industry. Splash carries the brands Extraderm, Maxi-
Peel, and Skin White. It also carries one of the fastest growing skin care brands in the Philippines – Biolink. In 2002, the Company invested in a Php400 million state-of-the-art manufacturing complex in Canumay, Valenzuela City which is expected to meet the Company’s capacity requirements in the medium-term. The Company established the Splash Research Institute in 1997. Through state-of-the-art facilities and equipment, and a research staff of more than twenty (20) chemists, pharmacists and engineers, SRI carries out the design and development of innovative products and packaging systems, thereby keeping Splash at the forefront of the personal and health care industries. It strives to maintain a two (2)-year rolling pipeline of new products. SRI also ensures that all products made available to the market are backed up by rigid clinical tests to guarantee superior efficacy, safety, stability and over-all product excellence. Splash has grown into a multi-billion peso company, with two of its core products, exfoliant and skin whiteners, dominating their segments with market shares of 86% and 41%, respectively, based on an AC Nielsen Philippine Retail Index Report dated June 2007. The Company is ranked sixth in the Philippine personal care industry, the only Filipino owned company in the top 10. The Company aims to strengthen its presence in the personal care markets in the Asia-Pacific region and to gain a foothold in the affluent markets of Europe and North America through its health and wellness products.
To date, Splash has established market presence in over 30 countries through its distributors and local exporters. These countries include Algeria, Australia, Bahrain, Canada, Egypt, Hong Kong, India, Indonesia, Iran, Japan, Jordan, Korea, Kuwait, Lebanon, Malaysia, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Singapore, Sudan, United Arab Emirates, Vietnam and the United States. BioLINK VCO Shampoo are intensely cleanses your hair from root to tip. Its rich lather helps remove daily build-up, enriched with Virgin Coconut Oil that intensely moisturizes scalp and hair strands, deeply nourishes scalp, and dermatologist Tested Safe and Effective • •
In 100ml bottle Available variants: o Anti-Frizz Intense Moisture and Shine Deeply moisturizes and relaxes unmanageable hair. o Anti-Hair Fall Smooth and Strong - Boosts hair strength and prevents hair fall due to breakage.
o
Anti-Dandruff Clean and Dandruff Free - Actively cares for your scalp and prevents dandruff.
Other Brands of Splash Corporation are;
BabySpa- perfect naturals head to toe baby care partner of babies aged 6 months old and above. BioLink Green Papaya- naturally whiter with another breakthrough in skin care with Biolink Green Papaya with Pearl Essence whitening range. It has the combined whitening powers of papain which is scientifically proven to be at its most abundant and potent concentration in green papaya and luscious Pearl Cream Essence for that naturally vibrant, soft and smooth skin. BioLink Tea Tree Oil- Biolink unlocks the safe and effective antibacterial properties of Tea Tree Oil through Biolink Tea Tree Oil, to effectively kill bad bacteria while preserving the natural flora of the external genitalia.Bringing together the requisites of complete and balanced feminine hygiene, Biolink Tea Tree Oil addresses the exacting need for superior intimate cleanliness of the Filipina through Biolink Tea Tree Oil All Day Fem Spray and Biolink Tea Tree Oil Daily Feminine Wash. BioLink VCO- Moisturize yourself with nature's healthiest oil, Virgin Coconut Oil (VCO) found in Biolink intensive moisturizing products. With the advance VCO7 Hydrolock Technology, it fuses Virgin Coconut Oil and 7 other natural moisturizers. This advanced moisturizing system helps maintain your natural moisture by replenishing your essential lipids. Extract- Experience the natural power of natures extracts with Extract skin care products. Specifically formulated to deliver intense moisturizing, natural and effective whitening while deeply nourishing skin to reveal smoother, softer, naturally radiant skin. Extract VCO- Extract VCO intensive moisturizing product range promises to rejuvenate your skin with the combined natural moisturizers found in natural extracts and pure Philippine Virgin Coconut Oil, leaving your skin silky soft, smooth and deeply nourished. Each product is richly blended with natural aromatic fragrances. Extraderm- The trusted name in skin care revolutionizes anti-ageing technology with Extraderm Age-Defy. Advanced Age-Block Bioactiv technology has a powerful combination of ingredients that effectively reduces visible signs of ageing, fine lines and wrinkles, dull and dry skin, and age spots. Enriched with moisturizers to nourish your skin for a more youthful, vibrant glow. Extraderm White & Smooth- The skin care expert introduces another innovation in facial care, Extraderm White & Smooth. Clinically formulated with the breakthrough Dermate Technology that combines powerful actives that effectively exfoliates dead skin cells, helps clear acne, reduces wrinkles and fine lines and lightens skin. Enriched with
essential vitamins and anti-oxidants to nourish skin for that soft, white & smooth skin. Hiyas- Hiyas Organics Orange Papaya Whitening Soap intensely whitens your skin with the natural fusion of nature-derived extract of orange papaya and other vitamins. It is improved with Intense WHITE+ that deliver superior whitening and natural moisturizing. Maxipeel- MAXI-PEEL is the Philippine's leading skin care brand in the exfoliant category. The proven effective combination of Tretinoin and Hydroquinone helps in treating and preventing mild, moderate to severe cases of pimples, blackheads and whiteheads. It also delivers significant whitening and prevents formation of dark spots. Kolours- Only Kolours know how to take care of Asian hair. Through the Science of Color and Care for Asian Hair, Kolours' unique formulation deeply penetrates hair cortex to give superior color coverage from root to tip while maintaining hair's natural moisture. Advanced Chroma-Plus Formula in Kolours Shampoo and Conditioner enhances various shades without changing its original color with a unique hydrating system that makes hair soft, manageable and shiny. Maxipeel New Generation- MAXI-PEEL, the leading skin care brand in the exfoliant category brings you its latest cutting-edge products that will give you great looking skin! Experience visibly smooth, healthy and young looking skin through exfoliation only from Maxi-peel. SkinWhite- Experience the power of whitening with Skin White whitening range. Scientifically formulated to deliver safe and effective whitening in as early as 2 weeks! With the revolutionary RENEW White 3C that conditions skin through gentle micro-exfoliation then releases powerful agents that prevents skin darkening effectively whitening skin. Enriched with Viatnourish Formula, a rich blend of Vitamin B5, B3 and E that deeply moisturizes skin and prevents it from harmful free radicals making it soft and smooth. TheraHerb- Theraherb VCO is made from pure Virgin Coconut Oil extracted from the choicest, freshest, and organically-grown Philippine coconuts. It is produced through fresh-dry method at the lowest temperature possible without chemical intervention. Theraherb VCO is carefully blended with the natural flavors of sweet corn, jackfruit, banana, strawberry, chocolate, and orange to provide a pleasant, enjoyable taste for smoother intake. It is also enriched with Medium Chain Triglycerides (MCT's) such as lauric acid, the same beneficial component commonly found in mother's milk. Moreover, Virgin Coconut Oil is known to aid in maintaining a healthy heart, promote weight loss, improve digestion, and also in boosting the immune system. Tricks- Real men know Tricks! With its revolutionary range of products that understands the specific needs of every man to look good and feel good all day, everyday. Tricks styling products give the opportunity for every man to create his own style. Tricks exfo cleansers gently care for the delicate skin of men, making it soft, smooth and supple. Do your Tricks!
Vitress- Behold the transformation of your dull, dry and damaged hair with Vitress Hair Solutions products. It is scientifically formulated to address the specific needs of your hair. Vitress protects your hair against harsh environmental elements that may damage hair making it dull, dry, frizzy and unmanageable. Each unique product is enhanced with vitamins, minerals and natural moisturizers to nourish your hair.
6. Vaseline shampoo by Unilever Corp. Vaseline Shampoo has been a leading innovator in the Philippine Hair Care market. It was launched in 2000 with a single variant called Vaseline Amino Collagen Shampoo and was a hugely successful campaign. It quickly became the second biggest shampoo after the long standing leader, Sunsilk, gaining shares mostly from P&G brands. It was also the first brand to introduce the innovative double-chamber shampoo sachet that offered an easy, hassle-free bathing experience enough for the entire family. Family has been at the core of Vaseline’s identity. It is the only shampoo that gives glowing, healthy hair, and has always been known to promote togetherness and intimacy within the family through its brand values and principles.
In 2008 Vaseline launched its Bigatin sachets – 18ml triple chamber. New Vaseline Dandruff Care was launched in July 2006, as the only shampoo that has Milk Proteins and Germ-Fighting Formula that kill germs in the hair and scalp that cause dandruff In 2008, Vaseline chose Maricel Soriano as a spokesperson of the brand’s commitment to health and family. Vaseline Shampoo had the record of being the largest single variant shampoo in the Philippines reaching 17% market share in less than a year from its launch in 2000, arguably the most successful innovation in recent Unilever Philippines history. This launch took corporate market leadership from P&G in the hair category in 2001
Vaseline Healthy Glow Shampoo with Active Aloe-Wheat Proteins
Vaseline Healthy Glow Shampoo with Amino Collagen Plus
Vaseline Healthy Glow Shampoo with Germ-Fighting Formula
Vaseline Healthy Glow Shampoo with Phot-Lipid Plus
In July 2009, Unilever Philippines launched New Family Pack Vaseline Naturals 2 in 1 shampoo and conditioner: Vaseline Naturals Clean & Fresh with Aloe Vera Vaseline Naturals Soft & Smooth Coco Milk Vaseline Naturals Anti Dandruff Anti Itchy Lemon & Sunflower Oil. Vaseline campaign was “Magbalik sa Nature”, wherein they suggest the customers to patronize a shampoo that contains a herbal composition. Vaseline was the first to formulate a family refill pack shampoo also, with 300ml plus 50% for free. That’s why, many consumers are being attracted by their marketing strategies No doubt that Vaseline is the leading innovator of hair care product in the Philippines .Governor Vilma Santos- Recto was chosen as the endorser of Vaseline Naturals. Vaseline Naturals main competitor now is the BioLink VCO by Splash Corp., as their shampoo contains an herbal composition also. Both are cheaper and more affordable thus they are being patronized by many people in the province. Vaseline Naturals is under the Unilever. 7. Clear shampoo by Unilever Corp. Clear nourishes the scalp from within to prevent dandruff from coming back. Clear is better than the No. 1 brand in making dandruff going away and stay away. Clear offers the following six benefits with every wash: • • • • •
Removes dandruff Nourishes the scalp Relieves dryness Prevents hair breakage Cools and refreshes the scalp
•
Prevents itchiness
Clear is a leading authority on the scalp, providing active health solutions for dandruff and scalp problems. Ordinary shampoos just wash away dandruff superficially, so dandruff comes back again and again. Clear nourishes scalp from within to prevent dandruff from coming back. Clear is the only shampoo to be endorsed by the International Academy of Cosmetic Dermatology. Clear’s revolutionary globally patented technology, includes an exclusive Zinc Vitanol complex™. TheZinc Vitanol complex combines Amino Acids, Vitamin E and Sunflower Oil which nourish the scalp and prevent dandruff from returning. Clear also recognizes that different scalps have different requirements; for example, men perspire 50 percent more than women and consequently are more prone to dandruff. To address this and other specific needs, Clear has developed 7 tailored dandruff solutions to suit consumer’s individual scalp types. This includes the first ever range of anti-dandruff shampoos formulated specifically for men. Clear is also available in conditioners. Clear is under the Unilever Corporation.
Different types of Clear Shampoo;
Activ Sport
Style -Express
Hair fall Decrease
Ice Cool
Hair fall Defense
Clean & Itch-Control
Complete Soft Care
Clear shampoo was launched in 2007, by its two years in the market, Clear shampoo are well known now as an efficient shampoo that clears dandruff and prevent it from coming back. Truly, clear shampoo loves by many men and women through its power. Clear is under Unilever.
Competitors Review: The main advantage of Bio Link VCO Shampoo, Vaseline Naturals and Palmolive Naturals are its Herbal compositions and low prices, which attract the rural market, but in terms of quality, they are far behind SunSilk. In urban areas, SunSilk is acting as a market challenger against P&G (particularly, Pantene shampoo). SunSilk has got the advantage of keeping their prices lower than P&G shampoos but P&G has captured a bigger share of the market due to its intense promotional activities. SunSilk are making its name in anti dandruff shampoo area, since they already launched their SunSilk Blue Anti- Dandruff shampoo. Their main competitors in this area are Palmolive Anti Dandruff Shampoo by Colgate- Palmolive Phils. Corpation, their sister brand Clear Anti Dandruff Shampoo by Unilever Phils. Corp and Head & Shoulders Anti Dandruff Shampoo by Procter & Gamble which claims in the market as the no. 1 anti dandruff shampoo in the world. SunSilk Anti dandruff shampoo is too far from H&S shampoos, because H&S counts its name in this area as an anti dandruff shampoo expert. It’s a must that Unilever Phils. must be focus on this matter. The main weaknesses of SunSilk are they don’t have a baby shampoo and a shampoo for the young girls like Palmolive Fashion Girl by Colgate – Palmolive Phils. Corporation and Baby Spa VCO shampoo by Splash Corporation. This area must be the focus of SunSilk and Unilever Phil. to increase their income and not be left out by the other. We chose Pantene, Palmolive, Rejoice, to be our direct competitors because they chose women as their target market and they also offer a hair fall control, anti frizz, Frutamin, and damage repair shampoo. Rejoice, Clear, and BioLink VCO can also our direct competitors for the reason that they also offer a product that helps hair lessens hair fall in just a week. Direct competition tells that there is an existence of rival products within the same market. Clear can also be an addition for the target competitor because like Head & Shoulders they also offer a product for women and anti dandruff. Finally, the strength of Sunsilk was they are the only hair care product that produced a shampoo during summer, the SunSilk summer fresh fruit .And also; they were the first who developed a hair dying and styling shampoos that being sold now in the market.
Packaging: The packaging design for the New Sunsilk range is extremely exciting and has been developed by Brown Inc. UK. The packaging makes the brand look expert and modern. This packaging makes the brand look more contemporary and hi-tech. It ensures more emphasis on the variants that have already been a part of the product but never been communicated to the customer that well. This new packaging has clearly identified that there is a separate product for each hair type. • •
Currently, the main range consists of:
SunSilk Strong & Long Shampoo: SunSilk Long & Strong Shampoo cleanses and refreshes both hair breakages anti split ends, with frutamin energizers. This new formula with fruit extracts and vitamins penetrates hair strands and fortifies hair fibers. Makes hair up to ten times more protected from hair breakage and split ends as hair grows up to 1.2 cm a month beautifully longer. •
SunSilk Blue Anti-Dandruff Shampoo: SunSilk Blue Anti-Dandruff Shampoo with citrus cream and ZPTO energizer. Anti dandruff eliminates dandruff starting from the first wash, cleans and refresh and fight dandruff. ZPTO enhance formula, start removing dandruff from the first wash while citrus cream energizers protect hairs naturals’ condition from dryness and hairfall.
•
Sunsilk Hair fall Solution: Sunsilk Hair fall Solution Shampoo with fortifying Ginseng and Soya energizer. Hair fall solutions visibly less hair fall in just one week. Cleanse and refresh boost hairs strength reduce hair fall. It gently cleanses needy, easily, broken hair, and infuses fortifying Ginseng and Soya energizers, to boost hair strength.
•
Sunsilk Smooth and Manageable: Sunsilk smooth and manageable smoothens fluffy hair from the first wash with nourishing creamy yogurt energizers, it gently cleanses and wraps around hair strands, so hair is less fluffy and more manageable.
•
SunSilk Damage Repair Shampoo: SunSilk Damage Repair Shampoo with Olive Oil Serum helps rebuild your hair's natural cellular structure and seals it with a natural conditioning blanket. So your hair's all ready for the next big style.
•
Sunsilk Smooth & Soft Sunsilk Smooth & Soft cleanses and refresh soften and smoothen hair from the first wash. It infuses with almond oil energizers.
•
Sunsilk Summer Fresh Sunsilk summer fresh with icy watermelon energizer it cools hair and packs keeps them smelling fresh all day! Its unique formula contains UV sun shield and protects hair from the sun.
Pricing
Shampoos SunSilk Strong & Long Shampoo SunSilk Blue AntiDandruff Shampoo SunSilk Smooth and Manageabl e Sunsilk Hair fall Solution SunSilk Damage Repair Shampoo Sunsilk Smooth & Soft Sunsilk Summer Fresh Clear Ice Cool
Clear Soft Care Clear Hairfall Decrease Clear Clean and Itch control Clear Men Cool Sport Clear Men Hairfall
10ml
P5.00 (2chamber ed sachet)
P5.00 (2chamber ed sachet)
P5.00 (2chamber ed sachet)
P5.00 (2chamber ed sachet)
P5.00 (2chamber ed sachet)
P5.00 (2chamber ed sachet)
P5.00 (2chamber ed sachet) 6 pack sachet
12ml 6 pack sachet
18ml 6 pack sachet
90 ml
100ml
180ml
200ml
P22.95 (P3.82 each)
P48.75
P75.75
P88. 75
P22.95 (P3.82 each)
P48.75
P73.75
P83. 75
P22.95 (P3.82 each)
P73.75
300ml
400ml
P161
750ml
P348
P348 P161
P83. 75
P161
P348
P83. 75
P161
P348
P83. 75
P161
P348
P22.95 (P3.82 each) P22.95 (P3.82 each)
P73.75
P22.95 (P3.82 each) P22.95 (P3.82 each)
P73.75
P83. 75
P161
P348
P73.75
P83. 75
P161
P348
P73.75
P69.75
P105
P202
P69.75
P105
P202
P69.75
P107
P204
P69.75
P107
P207
P69.75
P111
P207
P69.75
P112
P209
(P27.75) P4.63 each P4.63 each (P27.75) P4.63 each (P27.75) P4.63 each (P27.75) P4.63 each (P27.75) P4.63
Decrease Clear Men Clean and Itch Head & Shoulders (all products) Palmolive (all products)
each (P27.75) P4.63 each
P70
P113
P 58
P104
P201
P45
P85
P164
P43
P80
P153
P259
Rejoice Fruity
P43
P80
P152
P258
Rejoice Anti Frizz
P48
P89
P165
P262
Rejoice Anti Hairfall
P49
P88
P167
P265
Rejoice Sun Care BioLink VCO Vaseline Naturals Aloe Vera
P50
P89
P169
P262
Rejoice Rich
Coco Milk
Lemon and Sunflower Oil
Vaseline
P 50
6 pack sachet (P27.00) P4.50 each 6 pack sachet
P211 P350
(P22.95) P3. 82 each 6 pack sachet
(P22.95) P3. 82 each
P57 6 pack sachet
(P27.25) P4.54 each 6 pack sachet
(P28.50) P4.75 each
P95
P95
6 pack sachet
(P29.75) P4.96 each
P95
P75.
Refill Pack (all) Pantene Total Care Pantene Hairfall Control Pantene Glossy Shine Pantene Smooth & Silky
50 6 pack sachet
(24.95) 4.50 each 6 pack sachet
(24.95) 4.50 each 6 pack sachet
(24.95) 4.50 each 6 pack sachet
(27.00) 4.50 each
P104
P187
P350
P104
P187
P350
P104
P196
P356
P104
P190
P350
Since Unilever direct competitors are Pantene, Palmolive and Rejoice, they decided that they will price their product the way their competitors did. But they still considered their target market as one of the factors in pricing. Since their target market belongs to upper and lower class and our target place is on the province, they have to choose a price that the local market can afford and spend their money. Pantene, Palmolive and Rejoice shampoos are selling their six pack of sachet of 10mL. Pantene sells it in P24.75 while Rejoice and Palmolive shampoos sell their 6 pack sachet in P 22.95. Clear shampoo is selling this in P27.75 price. In Sunsilk shampoo sachet, you have two options. First, the Sunsilk shampoo 2 chambered sachet with 10mL that costs P4.50 and the 12mL Sunsilk Shampoo 6 pack of sachet that costs P22.95.It is more affordable than P24.75. It means for every sachet, it will cost a P3.82 price. In 200mL bottled shampoo, Sunsilk(Strong & Long) has P88.75 price and Pantene has P104.00.
Promotion and Distribution Promotion objectives:
Build top of the line consumers’ awareness. Creating a personality of the brand. Besides having these general objectives, the advertising objectives are set avoiding to the advertising strategy for each product, e.g. Sunsilk advertising objectives since it was being re-launched were:
To increase the usage. Conditioning benefits. Makes the hair appear clean and shiny. Imparts a feeling of freshness-due to fragrance. Easy to manage, silky, strong, soft hair.
Unique shampoo for every hair type. Effectively communicate brand promise. Distribution Objective: OUR AIMS: “To reach as many provinces as we can” Unilever Phils. has hundreds of distributors whose function is to sell to wholesalers directly. There are different distributors for different areas. They are carefully selected and their performance is constantly evaluated. They appear extremely satisfied with their channel systems and have a good rapport with them. We feel that this is essential since these are not too many levels, thereby preventing channel complexity and allowing Unilever greater control. Unilever’s statements were verified by our consumer survey, which revealed that the retailers were very satisfied with Unilever’s distribution system, which allowed well-stocked shelves. This is an added advantage, since the consumers undergo habitual buying behavior. Sunsilk has a very good distribution network all over the country. They have struggled hard to adopt such channels that guarantee the perfect results regarding the placement of their product. These distributors are given clear instructions regarding the selection of the retailer and to make sure that the retailer;
Knows about the significant characteristics of the product. Places the product along with its major competitors like P&G. Displays the sachets distinctly. They give off and on offers as trade promotion incentives to their distributors. The distributors contribute to the promotion of Sunsilk by word of mouth.
III. ANALYSIS OF ISSUES (SWOT) STRENGTHS
Unilever Philippines is one of the largest organizations in the Philippines The company has advanced technology and well skilled professionals. The New Sunsilk 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 the Philippines, in all major and small cities. The first company that developed hair dying shampoos and developed a limited shampoo products (Sunsilk fresh fruit) Strong relationship with retailers. Gives your hair shiny, smooth, manageable Strong and long, anti split ends, hair fall and hair breakage are another benefits of Sunsilk. Economies of scale.
WEAKNESSES
Competitor has strong promotional activities. Imported brands also available in the market. Customers are offered better alternatives by the competition. Inability in maximize acquisition. Some might not be satisfied to our products due to its not effective and less fragrance.
OPPORTUNITIES Population expanding at a rapid rate. Consumers are becoming more quality conscious. Customer base is increasing with effective marketing. Baby shampoo and natural shampoo are another area where Unilever Philippines can earn huge profits. Shampoo for the young girls is another area where Unilever Philippines can earn huge profits also.
Changing consumer preferences. Increasing need for healthy products. Rural areas are a large prospective market where they can introduce Sunsilk.
THREATS
Political and Economic factors. High rate of competition. Local and Foreign competition. Smuggling is another threats. Supplies from Indonesia and Thailand are another important issue. Recession of the world.
IV. MARKETING OBJECTIVES: • Main objectives; To increase market share from 50% to 60 % and earn huge profits in the provinces. •
Sub-objectives;
To improve advertising campaign. To seek new target market. Makes the hair appear clean, shiny, long, strong and healthy. Imparts a feeling of freshness-due to fragrance. Easy to manage, silky, soft hair. Unique shampoo for every hair type. Effectively communicate brand promise.
V. MARKETING STRATEGIES: MEDIA RECOMMENDATION •
T.V. Program: T.V. Patrol World T.V. Patrol World is the chosen T.V. program where SunSilk shampoo is to be advertised. This program is the longest-running Filipino Newscast in the Philippines. In this program, the company’s target market will certainly watch a newscast program that is why they selected this program where the market can easily see it and remember. However, the team manages to air the advertisements primarily on early talk shows like SIS and Ruffa and Ai, noon-time variety shows like ASAP, Eat Bulaga and WOWOWEE, game show like Pilipinas GKNB, soap opera in the evening like MAY BUKAS PA, DARNA, and TAYONG DALAWA, and KAMBAL SA UMA in the afternoon soap opera. The company believes that women mostly young adults to adults render their time watching television during these hours. They may get the consumer’s attention and interest in purchasing the product.
•
Radio Station: 90.7 Love Radio 90.7 Love Radio is the chosen Radio Station of Unilever Philippines. The country’s biggest radio network, Manila Broadcasting Company, proves that it is number one in Mega Manila, with its radio station 90.7 Love Radio leading the pack in the latest Nielsen Media Research Surveys. Then, the company’s target market is in Mega Manila. 90.7 Love Radio is also in a format of hot adult contemporary where this format is devoted to old hits and mostly classic hits where the company’s target market mostly preferred to hear. Other radio stations may include IFM 93.9, WRR 101.9,YES FM 101.1 and BRGY. LS FM 97.1.
•
Newspaper: Pilipino Star Ngayon Unilever Philippines chose Pilipino Star Ngayon as their newspaper where they can publish the print ad of the SunSilk shampoo. Their target market mostly preferred to read a tabloid which focuses on local interest and entertainment of the people. Newspaper may include TEMPO, PEOPLE’S TONIGHT and BULGAR as their secondary option.
SAMPLE OF THE PRINT AD
SALES PROMOTION •
Sunsilk Shampoo Sample
Since we want to make a huge income in the provinces, we created a Sunsilk sachet sample that will be distributed to local markets. Secondly, we hired promo agents that will go house to house and give some sample of sunsilk frutamin strong and long. We believe that if sunsilk shampoo will be effective to them, they will buy then at their nearest store and might patronized it permanently. •
“ Sunsilk Cares” promo
We cooperated with Bantay Bata 163. For every bottle of 100ml or 200ml in all Sunsilk Shampoo products bought, 5 pesos will be given to Bantay Bata.
PUBLICITY CAMPAIGN •
Life Can’t Wait aims to inspire women all over the globe to live their lives to the fullest.
•
“Hair On = Life On, Beat the Breast Cancer Marathon” This publicity campaign of Sunsilk Philippines will be held next year. It aims to gather Filipinas all over the Philippines, from all walks of life in one marathon challenge. It aims to make a record for the most female gathering in one place. Hopefully, this marathon can also make it to the Guinness Book of World Records. One reason of this marathon is not only to be conscious with your health but to tell the world that you can be whatever you want in your own way. You can be unique! “Maging unique”. In addition, it is also an awareness campaign for breast cancer. Sunsilk wants to inform women on how to prevent the disease that kills some of their acquaintances, friends and even family members.
VI. PROJECTED INCOME STATEMENT MEDIA TV Programs
Days to air
Frequency
Cost
Sis Ruffa and Ai Pilipinas GKNB Eat Bulaga Wowowee Kambal sa Uma TV Patrol World May Bukas Pa Darna
Mon-Wed- Fri Tues & Thurs Mon-Wed- Fri
2 times 3 times 3 times
P60,000 P60,000 P80,000
Total Expenses (per week) P360,000 P360,000 P720,000
Tues-Thurs-Sat Mon-Wed-Fri Tues & Wed
3times 3 times 3 times
P90,000 P90,000 P70,000
P810,000 P810,000 P420,000
Mondays to Sundays Mon-Wed-Fri Mon- TuesThurs Tues-Wed-Fri
2 times
P90,000
P1,260,000
3 times 3 times
P80,000 P80,000
P720,000 P720,000
3 times
P80,000
P720,000
Sunday
3 times
P100,000
300,000
Tayong Dalawa ASAP
TOTAL(per week)
Radio Programs 90.7 Love Radio YES FM 101.1 IFM 93.9 WRR 101.9 BRGY. LS FM 97.1.
P 7,200,000
Days to air
Frequency
Cost
Mondays to Sundays
5 times
P10,000
Total Expenses (per week) P350,000
Mondays to Sundays Mondays to Sundays Mondays to Sundays Mondays to Sundays
5 times
P10,000
P350,000
5 times
P10,000
P350,000
5 times
P10,000
P350,000
5 times
P10,000
P350,000
TOTAL(per week)
P1,750,000
Newspapers
Days to print
Cost
Pilipino Star Ngayon
Everyday
P6,000
Total Expenses (per week) P42,000
TEMPO
Everyday
P6,000
P42,000
PEOPLE’S TONIGHT
Everyday
P6,000
P42,000
BULGAR
Everyday
P6,000
P42,000
TOTAL(per week)
P 168,000
Total expenses in TV Ad per month
P 36,000,000
Total expenses in Radio Ad per month Total expenses in Print Ad per month
P 8,750,000
Total expenses of all media Ads in per month Total expenses of all media Ads in 3 months
P 45,590,000
P 840,000
P 136,770,000
SALES PROMOTION Sunsilk Shampoo Sample Produce sample Total expenses Location of distribution transportation expenses Total number of Salesmen agents Salary of the agents
750,000 P 3,750,000 Luzon, Visayas, Mindanao P1,000,000 700 P175.000 per day( 1 salesman)
Total salaries of the 700 agents in 1 month TOTAL EXPENSES FROM THE EXPENSES OF THE PRODUCE SAMPLE, TRANSPORTATION and SALARY of the agents
P3,675,000
P 8,425,000
Sunsilk Cares promo
Total expenses
P2,000,000
PUBLICITY CAMPAIGN “Hair On = Life On, Beat the Breast Cancer Marathon” o o o o o o
Predicted expenses Promotion Venue Agents salary Coordinator Stage set up Etc
Predicted Overall Expenses (media Ads to publicity campaign)
P 4,000,000
P 145,201,000
VII. EVALUATION OF MARKETING ACTION PLAN From the marketing strategies we created, we are hoping that these will be successful. If our valued consumers will learn and eventually use our product especially in the provinces, there is no reason for us not to have break-even. We think that within a couple of months our expenses incurred during our promotional activities will be recovered. With the marathon we are planning for next year, we want people to know that we are not only concern about our income but we are also looking for their fitness and wellbeing. As a whole, we are doing our very best to benefit our consumers. We are not wasting our time. We continue experimenting and making products that are affordable to Filipinos because like our latest campaign said “Life can’t wait!”
