By Anat Jacobson, Caleb Forbes, Jun Wang, Kouhei Ueta, Pablo Baptista Avila and Steffen Müller
I M B A 2 0 1 3 – N 1 – G r o u p D
2 Table of Contents Introduction ...................................................................................................................................................................... 3 Situation Analysis ............................................................................................................................................................. 3 Company ....................................................................................................................................................................... 3 Customer .................................................. ......................................................... ......................................................... ... 4 Competition................................................................................................................................................................... 4 Collaborators ................................................................................................................................................................ 5 Context .......................................................................................................................................................................... 6 SWOT Analysis ............................................................................................................................................................ 6 Strategy and Brand........................................................................................................................................................... 8 Marketing Strategy ...................................................................................................................................................... 8 Brand Analysis.............................................................................................................................................................. 8 Marketing Mix .................................................................................................................................................................. 9 Product .......................................................................................................................................................................... 9 Place................................................... ....................................................... ........................................................ ............. 9 Price ................................................... ....................................................... ........................................................ ............. 9 Promotion................................................. ......................................................... ......................................................... ... 9 Challenges........................................................................................................................................................................ 10 Recommendations .................................................. ......................................................... ................................................ 11 List of Tables ................................................................................................................................................................... 13 List of Figures ................................................................................................................................................................. 13 Appendix.......................................................................................................................................................................... 15 Mind reading focus group - Full Summary of Findings ......................................................................................... 19 Same Tier Competitors ......................................................... ......................................................... ............................ 22 Survey Results ............................................................................................................................................................ 24
2 Table of Contents Introduction ...................................................................................................................................................................... 3 Situation Analysis ............................................................................................................................................................. 3 Company ....................................................................................................................................................................... 3 Customer .................................................. ......................................................... ......................................................... ... 4 Competition................................................................................................................................................................... 4 Collaborators ................................................................................................................................................................ 5 Context .......................................................................................................................................................................... 6 SWOT Analysis ............................................................................................................................................................ 6 Strategy and Brand........................................................................................................................................................... 8 Marketing Strategy ...................................................................................................................................................... 8 Brand Analysis.............................................................................................................................................................. 8 Marketing Mix .................................................................................................................................................................. 9 Product .......................................................................................................................................................................... 9 Place................................................... ....................................................... ........................................................ ............. 9 Price ................................................... ....................................................... ........................................................ ............. 9 Promotion................................................. ......................................................... ......................................................... ... 9 Challenges........................................................................................................................................................................ 10 Recommendations .................................................. ......................................................... ................................................ 11 List of Tables ................................................................................................................................................................... 13 List of Figures ................................................................................................................................................................. 13 Appendix.......................................................................................................................................................................... 15 Mind reading focus group - Full Summary of Findings ......................................................................................... 19 Same Tier Competitors ......................................................... ......................................................... ............................ 22 Survey Results ............................................................................................................................................................ 24
3 Introduction
This document explores the behaviour of customers, market and consumption in the shampoo industry. This report focuses on Pantene, a P&G brand that has had success in the Spanish market. Current market status, opportunities, and challenges will be explored and recommendations will be given to deal with these challenges. The Procter & Gamble Company, or P&G, is an American multinational corporation founded in 1837. It is one of the largest consumer goods company with worldwide leadership, which holds more than 50 brands in personal care, food, beverages and speciality chemicals products. In 2012, the total sales revenues of P&G P &G group were $83.68 billion and the net income was $10.75 billion 1. P&G’s mission is to add vitality to life, meet every days needs for nutrition, hygiene and personal care with brands that help people feel good, look good and want to live a better life. Pantene is “one of the largest and strongest portfolios of trusted brands” of P&G, as well as other brands such as Pampers, Tide, Ariel, and so on i. Situation Analysis
Pantene offers a wide range of hair-care products in the Spanish market. In this section, its external and internal situations through Pantene ’s website were examined, observation of stores in Barrio Salamanca, Madrid ( “Salamanca”), and customer survey results. Company
Pantene is a brand of hair care products owned by P&G. The brand “Pantene” first appeared in 1947, as a premium hair care product of the Swiss drug company Hoffman-LaRoche, inspired by the shampoo ingredient named Panthenol. Pantene’s “Don’t hate me because I’m beautiful” campaign in the 80’s
became one of the most memorable campaigns
and taglines reaching a pop culture phenomenon. Pantene was bought by P&G in 1985. In 1995 it became a billion dollar brand, reaching the height of fashion in i n the t he late 90’s ru nning
as a premium hair care brand, getting endorsements from
Golden Door Salon, Ford Models, Cosmopolitan, and many other prestigious fashion related brands ii. It is best known for its conditioning shampoo Pantene Pro-V (See Figure 1), 1), and now Pantene products are sold in more than 47 countries and areas including Spain. In Spain, P&G employs more than 1,300 professionals, who work in two divisions: Beauty and personal care, including Pantene, Pantene, and Home care iii. The market share in Spain is not officially disclosed, but among participants of our survey who reside in Salamanca, 91% know Pantene and 31% currently use Pantene shampoo or conditioner (See Figure 11 and Figure 17). 17). In conclusion, Pantene positions itself as a brand that offers high quality and variety of hair-care products. Pantene enjoys high brand awareness and market share in the Spanish market.
4 Customer
Pantene’s customers buy
the product in supermarkets and cosmetics and beauty stores (See Figure 23). They buy it as a
routine purchase – buying a new bottle of shampoo and/or conditioner whenever the old one is running out. Customers are segmented as follows: - Target: Women concerned with their appearance and hair health, but unwilling to spend a lot on hair-care product, and/or satisfied with solution and result offered by middle-tier shampoo brands - Age: 18 to 44 - Gender: Female - Household income: €20k to €50k - Why Pantene: Pantene’s vitamin rich formula, for women who want to repair their hair. Salamanca target customer pen portrait
Marisa is a 30-year-old English teacher and a married woman. She lives in Barrio Salamanca, Madrid. She cooks very often so she goes to the neighbourhood grocery stores frequently. She likes to pamper herself by going to beauty salons and specialized beauty stores to buy personal care products. Marisa loves to travel around the World with her husband. She likes going out to restaurants, visit local wineries and reading novels. She enjoys hanging out with her friends and family. Someday Marisa wants to have children although she would like to continue teaching. Competition
Pantene has strong competition in store shelves. Shampoos and conditioners of many brands are sold with similar prices to Pantene products – approximately 3 Euro per 300ml bottle (See Table 1). These competing brands, including Elvive (L’Oreal), Fructis (Garnier), Gliss (Schwarzkopf), Herbal Essences and Head & Shoulders (P&G), are used by people who don’t use Pantene, according to our survey (See Figure 25). Most of them offer similar line-up to Pantene ’s, with some variation in accordance with the focus on hair solution they offer (See Figure 7 to Figure 10). The actual shelves in the stores look more colourful with these brands ’ products while Pantene products are mainly white (See Figure 3). It might make customers think that Pantene has less products variation. It is also worth noting that Head & Shoulders, another hair-care brand of P&G group, seems to avoid cannibalization by differentiating itself with Pantene – showing a famous football player, Íker Casillas, on its bottles and featuring masculinity. Besides these direct competitors with established brands, most of supermarkets offer private brand shampoos and conditioners. These are offered to consumers for much lower prices than Pantene (See Table 1), and usually sold in bigger bottles with 750ml or 1,000ml. Considering outstandingly better cost performance of these private brands, they also can be strong rivals as well as direct competitors. Pantene also competes, especially among women with higher income levels, with higher tier and more expensive cosmetic and skincare brands offering lines of hair-care , such as L’Occitane, Aveda and John Frieda . Customer research
5 (See Figure 25) shows that many of Pantene non-users in Salamanca know and use such brands, and perceive their products as ones with higher quality (See Figure 28). Collaborators Distribution Channels -
Supermarkets and cosmetics retailers seem to be the major distribution channels for Pantene.
(See Figure 23) Supermarkets
(e.g. Mercadona, Carrefour and Eroski) usually have two racks for shampoos and conditioners, with 6
shelves each. Mercadona and Carrefour located Pantene shampoos and conditioners in better places – upper and middle shelves , where the customers can easily view and reach the product (See Figure 3). It is worth noting that Pantene is among the most expensive brands in a supermarket in many cases (See Table 1). Cosmetics retailers
(e.g. Bodybell and Juteco) usually have more racks dedicated for hair-care products (approximately
4-5), offer a wider variety of brands and products, and assign about the same space for Pantene in proportion with shelfspace increase. Such stores offer more luxurious lines of hair products, and Pantene is not among the most expensive ones, but just another regular brand. However, compared with other brands sold in supermarkets, Pantene is still priced slightly higher (See Table 1). This seems to be in line with Pantene’s shelf location in such stores, which is closer to the more luxurious brands and products (e.g. L’Oreal EVER brand). Science and Cosmetics Companies – With the great competition and a highly developed and innovative market Pantene
operates in, performing research to develop new products compatible with different hair and skin types is key for Pantene’s
continuing success. In achieving this, Pantene collaborates with companies, which are skin-care and cosmetics
professionals. For example, Pantene scientists discovered, in collaboration with Olay scientists (under the P&G umbrella), a combination of anti-aging skin ingredients, leading to the development of a new hair treatment, which thickens existing fibresiv. Magazines – Pantene
collaborates with fashion and women targeting magazines in covers stories and fashion editorials,
presenting mainly celebrities and models in different clothing and hairstyles (See Figure 30). Pantene provides leading hair experts to perform hair design, and the Pantene brand is given credit. According to our survey, 30% bought Pantene products affected by magazines (See Figure 12) Celebrities and Agencies – Pantene uses well-known local presenters to promote its products. Sara
Carbonero, a Spanish
TV broadcaster and the girlfriend of Spanish goalkeeper Iker Casillas, promotes the Pantene brand. Sara Carbonero takes part in Pantene commercials on TV and in magazine, and also attends different events as a brand presenter. For example, Sara Carbonero attended the opening of the Pantene Clinic in Madrid, which was covered by media mainly because of her involvement and endorsement of the brand (See Figure 31).
6 Context
To understand the context of Pantene in Salamanca it is important to perform an analysis of this area regarding the political, economical, social and technological factors. Political – The
people of Salamanca are very conservative in relation to the population of Madrid or Spain in total.
Around 72% of residents in Salamanca voted for the People’s Party (conservative) during the last elections. Consideration on how to communicate in Salamanca would be needed. Economical – Salamanca in known for its expensive shopping streets like
C/ Serrano and its huge shopping areas like the
one around C/ Goya. Almost every known brand is represented with its own flagship store. Additionally all the usual supermarkets and department store have at least one (in generals much more) of its branches in the area. Numbers of diplomatic missions and high prices for real estate attract people with a higher income. Moreover big offices of Iberia, VIPS Group or Ogilvy and the top-ranked IE Business School bring people with a high purchasing power to the streets of Salamanca. Price sensitivity is not as high in Salamanca as in other areas of all Madrid and Spain. However, the current economic crisis should be addressed in marketing strategy. Social – Approximately 150,000 residents with wealthy Spanish and international backgrounds live in the Salamanca area. Technological – N/A
SWOT Analysis Strengths
- P&G: P&G is one of the largest consumer goods company in the world. The company is strongly focused on research and development and owns one of the best marketing team that helps the company remain leading market position. Pantene might also enjoy collaboration with other P&G brands such as Olay, as mentioned above under “Collaborators”.
- Awareness: Pantene enjoys wide global exposure, and often uses campaigns that feature local celebrities; this helps Pantene to create strong brand awareness, build strong brand equity and achieve high degree of attention and recall for consumers, eventually leading to higher sales. - Product line-up: Pantene has an extensive product line that mee ts most of the customer’s needs. S uch products are divided to four main categories: fine, medium-thick, curly and coloured hair. Pantene is focusing on every type of hair, creating product extensions addressing customer needs. Pantene’s selling point is the vitamin that nourishes hair. This differentiates Pantene from other brands in the market and creates a competitive advantage. - Hair repair: Customers strongly prefer Pantene to the competition, if their major concern is hair repair. The survey shows that 47% of the customers focus on this specific function of the shampoo. (See Figure 18) - Distribution: In addition, Pantene has a large distribution network across Salamanca area; t he products can be found in all supermarkets and beauty stores in the area.
7 Weaknesses
- Lack of customer loyalty: Pantene heavily relies on mature markets that offer a wide range of hair-care products, in which customers switch very easily from one brand to another and the brand suffers from lack of customer loyalty (75% of the surveyed customers who know Pantene stopped using it – See Figure 24). - Brand perception: Pantene is perceived as a normal brand found in every store, fashionable but with lower quality (3 out of 4 surveyed persons compare Pantene with the lower cost clothing store Zara – See Figure 19). - Low potential for growth: Pantene’s products are available in supermarkets, which represent a saturated market offering a wide choice of products from the same tier, making choice for the customer tough. - No natural line: Pantene’s products focus mainly on hair repair and have been less proactive in the natural and organic category, which seems to be gaining momentum in the market. - Price: Pantene’s middle ranged price is vulnerable to cheap brands that offer similar products. Pantene is not very expensive but not the cheapest. Consumers doubtful about Pantene ’s quality can easily go for other, cheaper brands (See Table 2) - Lack of differentiation in ads: Pantene’s TV commercials often use celebrities and they lack of differentiation from it s competitors such as L’Oreal.
- No improvements after usage: Consumer survey also shows that with some past Pantene users, after using Pantene products, their hair did not look as good as Pantene’s TV ads suggested. This, as well as the missing connection to the brand, seems to be the most prompted reason to stop using Pantene among the surveyed persons. - Uniform product appearance: Most of Pantene products are in white bottles and look similar to each other, though they have some variation in the product line-up (It can be treated as consistency and strength, but some of our survey participants actually felt Pantene has less variation in products). - Absence in digital media: Pantene’s does not use digital media often in Spain (Facebook page), and therefore loses an opportunity to promote the brand and engage with consumers online. Opportunities
- Market extension opportunity: Marketing of product extensions should focus on segmentation of consumers that need shampoo for different types of hair to gain loyalty of the new customer segmentation. With such focus on products that specialized in different types of hair and in natural and perhaps an organic category, Pantene can definitely gain more market share and increase sale. - More room for communication: Communication needs to be focused on segmentation of consumers that need shampoo for different types of hair. Pantene could leverage social media for more innovative marketing techniques in Salamanca. One example could be a translation and recommendation app for people who do not speak Spanish
8 fluently. The international students and expats in Salamanca are lost while buying the right shampoo. This is the perfect place to help and engage future customers. Threats
– Environmental
awareness: Increasing customer awareness for the environment generates demand for natural and
organic products. Beauty shops and professional skin-care brands such as L ’Occitane and Body Shop are creating their own brands, taking their loyal customers without leaving any room for Pantene due to low switching cost. - Market saturation: The market is saturated with new products from big local players and other international brands. Customers are spoiled with many choices and lack of loyalty for the Pantene. - Price competition: The consumer survey shows that the current shampoo market is flooded with competition, there are many brands that target the same cus tomers as Pantene and competitor’s products also target the different needs of the consumers with cheaper prices. In some stores Pantene product is sold offering a second unit discount. - Quality competition: Consumers think that Pantene’s competitors’ products (usually high-tier, more expensive ones such as L ’Occitane, Body Shop and Aveda) offer their hair better final look and results. - Economic uncertainty: Economic forecast showing that most of European countries facing stagnate economic growth including Spain, consumers are becoming more price sensitive when choosing daily consumer goods. Strategy and Brand
Marketing Strategy
Pantene uses a large amount of TV advertising to generate awareness of the brand and its benefits. This communication is focused on their unique pro-vitamin hair repair formula. Furthermore, local well-known celebrities are used to help consumers feel more involved and connect emotionally with the brand. From an active consideration point of view, the brand does very little to ensure it is “on the list” o f potential hair brands women wants to buy. Once the purchase has been made, the brand does very little in terms of relationship building and advocacy. Thus, it relies very much on the user having a positive experience due to the sophistication of the formula (See Figure 5 for a detailed consumer pathway). Brand Analysis
Market research has shown that Pantene is synonymous with hair repair. In particular, the vitamin association of the formula is particularly well known (namely vitamin e). As a result, the graphic showing the vitamin capsules repairing the hair in the TV ad has particularly high recall among the target group. It is seen as a “relaxing” and “calm” brand, very
much related to beauty. The spa-like atmosphere gives the brand a sense of wellbeing and makes it almost a kind of affordable luxury. Furthermore, the use of celebrities gives the brand a more premium edge, compared to its other midrange competitors. Brand Personality: Stylish, tasteful, healthy and beautiful
9 Marketing Mix Product
Pantene represents quality, it has many features that differentiate it among its competitors and it has a brand name that has been forged for almost 70 years. Pantene has a range of shampoos, conditioners and other hair-care products that appeal to the customers ’ needs. Largely there are four categories: Pelo Fino: fine hair, Pelo Normal a Grueso: normal to thick hair, Pelo Color: coloured hair and Clasicos Pantene: classical Pantene (See Figure 2). In further detail, health, volume, color, curly care, soothing care, anti-dandruff and anti- hair fall. Pantene’s slogan “Hair so healthy, it shines” is not just words, it has proven after all these years that it has a great effect on hair and satisfies its customers, which contradicts the result of the survey mentioned earlier. Place
Pantene products can be found in every supermarket and cosmetics retailer in Salamanca; it is one of the most accessible brands in the market. Pantene products can be found in key spots on the shelves. Supermarkets in Salamanca generally assign space to Pantene products in two to three shelves (See Figure 3) Price
In general, Pantene’s price
is reasonable; its shampoos and conditioners are sold approximately €3 per 300ml bottle. This
price is similar or slightly bit higher in comparison with direct competitors (See Table 1). Some stores offer a second unit discount on Pantene products. Based on the survey, Salamanca is not the target market for Pantene because people in this area are not that price sensitive. However, general consumers are very price-sensitive, and they are also concerned with what shampoo does to their hair. Promotion
Pantene’s
promotion strategy is effective; using beauty magazines, TV premium spots and billboards in fancy streets has
a great impact on the customers. Pantene also launched a website called Pelo Pantene v, which teaches customers what is the best product for their hair type directing them to the best product for them. Despite this integrated media mix, it is clear that the bulk of Pantene’s investment is in TV.
The current Spanish TV ad features Ariadne Artiles, a Spanish model, while magazine ads feature Sara Cerbonero, who is considered to be one of the “sexie st” women in Spain.
Sara Carbonero, Ariadne Artiles and Paula Echevarría (a Spanish
actress and model), have been chosen as Pantene brand ambassadors in 2012 for the “ALL
-NEW" Pantene line. Each one
of the three represents a different hair type (Normal to thick, Fine, and Colored, respectively), a move that is consistent with non-user concerns, as the consumer survey shows. However, the current Pantene TV ad, which features Paula, is actually an ad presenting the “Suave y Liso” product, which belongs to Sara’s product category. This inconsistency in
10 advertisement might create confusion among customers, finding it difficult to understand which product is the one that matches their hair. To analyse the effectiveness of the TV ad, a mind-reading focus group with six women aged between 18-39 was conducted (three brand users and three brand non-users). The current Spanish TV ad for Pantene
vi
was shown while
monitoring their subconscious thoughts. After asking them to explain how they were feeling and to give additional context, the results were analyzed. These are the results:
Brand users pay a lot of attention to the hair of the model – they are comparing her hair with theirs and get frustrated because “it’s not as nice”. However, this frustration is overcome, as brand users are relaxed by the end frame and slogan – hair so hea lthy it shines. It is familiar, makes them feel good and they know the product already, so they don’t need to
worry about what the bottle looks like. Conversely, non-users were relaxed by the frames featuring beautiful hair and paid attention to the end frame of the advertisement. This was part of a yearning for the spa-like environment, which then lead to heightened levels of attention at the end of the ad as they assessed the look of the actual product. Notably, all users paid attention to the animation of the vitamin capsules repairing the hair. They tended to take this message away, that the shampoo was full of vitamins to help make your hair soft. However, none could remember the variant of the brand – they could simply remember the brand itself. When asked if they would look for the variant in store, all said no. The ones who didn’t use it would not switch and the ones that did use Pantene did not feel the need to change their
current formula. Both also loved the spa scenes. They felt relaxed and somewhat pampered by the luscious environment, with the featured waterfall being the most prominent images the women connected with. The very beginning of the ad, however, was a big fail. No one connected with the models pain of “crispy hair”. They could not
recall this part of the ad, nor did these images register with them subconsciously. Hence, the ad’s attempt at problem solution fails. They see the solution, but don’t connect it with the problem, which is ultimately why they cannot recall
the product (See Mind reading focus group - Full Summary of Findings). Challenges
Pantene faces brand deterioration, it was once viewed as a premium product and now it is an everyday shampoo that anyone can use; it has lost its main core strategy, which was fashion and prestige. Pantene still wants to fit in the fashion world spending millions of Euros in advertising and celebrity hiring. In supermarkets Pantene is viewed as a more expensive shampoo, while facing the actual crisis, some Spanish people (not necessarily in Salamanca) might turn their back on it, preferring a more economic shampoo. Pantene has not been able to develop customer loyalty and it is very easy to substitute.
11 Additionally, women don’t connect with the problem of Pantene advertisers. What problems do face women with their hair? And how can Pantene create an ad and therefore product that addresses that? Since nobody, not even the users, connected to the problem. Therefore, the solution presented in the ad was irrelevant and inconsistent. Or, maybe the problem is fine, but the way the problem was communicated is not (with a celebrity, in black and white, so her hair looks worse than it is, even though everyone knows she has great hair). These questions can be answered by looking at the survey. Those who use Pantene do say that the main benefit they look for is hair repair. The brand is ubiquitous with hair repair. The results from our mind-reading focus group showed that this generates a lot of recognition, where the vitamins fill the hair up. Non-users don ’t connect that image to their hair; what they are looking for is a brand for their specific type of hair, and their perception is that Pantene does not offer this. So the question is – what is the real problem women face with their hair?
In conclusion: there has been significant brand deterioration , to the point where “ ALL-NEW” formulas and their (inconsistent) communications mean nothing to the consumer. There is no customer loyalty and in fact, current advertising makes customers feel anxious, as they believe the brand ambassadors’ hair is better than theirs. Non-users do not connect with ads since their primary concern is shampoo for their hair type, not hair repair. The subsequent choice paradox makes this situation worse, since it is not clear to consumers what formula type is suited to individual hair types. Recommendations
Currently Pantene offers a very wide line of products (13 types of solutions offering different products for each). This creates a “Choice Paradox”, confusing the customer in choosing the right type of product, which fits their hair type, without expert diagnosis. However, Pantene as well as other shampoo brands rarely use in-store communication to promote products, assist customers in choosing a tailed solution. In addition, as mentioned before, Pantene non-users seem to not connect with the message of Pantene ads, which does not address their main interest – type of hair. Thus, recommendations for Pantene to overcome its main challenges and revamp their brand perception are as follows: Product: Create one wide line catering to different hair types, categorizing each product-line in accordance with the type
of hair it fits to. Product-line should be narrowed according to past sales data to cater main customer needs and preferences. Also, when we say “hair type”, we recommend doing research into how consumers categorize their hair type, as we found the words they used to describe their hair type are not necessarily consistent with Pantene’s labeling. all Pantene products’ looks are quite simi lar
Today
(white bottle with a colored label) and limit line differentiation; in the new
categorization each line’s appearance should be distinct. This way, the products appearance will communicate clearly the
type of hair to which it caters, decreasing customer confusion and dissatisfaction due to too much choice (regret about the decision made, escalation of expectation).
12 Promotion: Promotion should still maintain the hair repair message with the unique Pantene vitamin formula. However, new brand categorization requires promotion in order to increase penetration among non-users and current users. The focus of promotion will be – Let Pantene help you find the shampoo that best fits your hair type and will give you a great look. This doesn’t mean we leave behind hair-repair, as this is a critical USP for the brand. Rather, we move the communications from “Hair -repair for everyone” to “Hair -repair for you”
This will be achieved by launching Campaign
“Pantene911”:
- Pantene will open a Facebook Pantene911 account. It will use online advertising to draw customer attention, and launch the Pantene911 Campaign: women who feel that their hair looks bad and their shampoo doesn’t fit them , will upload their photo to the Pantene911 Facebook wall. Each day, 10 of the women posting their photos will be chosen. A Pantene van, containing a mobile hair salon, will drive to the women’s location with a Pantene expert and hair stylist. The Pantene hair expert will diagnose the woman’s
type of hair and match her with the best matching
shampoo. Then, her hair will be washed and designed by the hair stylist, using the chosen line of products. This part of the campaign will be used to launch the full campaign, and will continue for a period of approximately 3 months. - The van trips, hair diagnosis and styling will be filmed and documented, creating a TV and magazine ad, which will create increasing focus to Pantene’s new categorization. The ads will then refer the viewer to Pantene911.com, a
nd to
their closest points of sale, in order to find the product-line, which fits their hair type. - In the Pantene911 website, which will be mobile-compatible, users will find a short questionnaire with hair and skin features (thickness, colour, etc.). After filling out the questionnaire, the user will get a result shortly analysing her type of hair, and presenting the product-line, which matches it and the expected results of using it. A coupon of 10% off selling price for the matching product-line will be available for printing or presenting in stores using a Smartphone. - In points of sale (supermarkets and cosmetics retailers), Pantene will install small, fashionably designed touch screens, attached to its products’ shelves. These screens will be user frie ndly
and visual. They will allow users in the
stores to quickly fill out the questionnaire and get a recommendation for the best matching line, making the choice at the store less confusing. In the first two months after the installation of the screens, sales people will encourage shoppers to use the screens, assist them in filling out the survey, and then persuade them to buy the products. - The ads, website and touch screens mentioned above will be used as longer-term promotion. Normalizing the product line to clear categories and giving promoting the “type of hair” importance using the Pantene911 should assist Pantene in completing the Consumer Pathway, engaging consumers, appealing to their emotions, and converting intent into purchase at points of sale. Having the best matching product, customers are more likely to have better experience using Pantene products, and so customer loyalty can be increased, resulting also in a p ositive word of mouth effect. - See Figure 32 for a detailed media mix along with a link to the Pantene911 “Rescue” launch video.
13 List of Tables
Table 1 Shampoo Prices (in EUR) of Pantene and its Competition
15
Table 2 Why did you quit (or never used it)? ................................................ ................................................................... 29 List of Figures
Figure 1 Pantene Pro V ..................................................................................................................................................... 15 Figure 2 Pantene Product Line in Spain ........................................................................................................................... 16 Figure 3 Top Shelf Space in a Salamanca Supermarket ............................................................. ...................................... 17 Figure 4 Pen Portrait ......................................................................................................................................................... 17 Figure 5 Consumer Pathway ............................................................................................................................................. 18 Figure 6 Mind-Reading Focus Group ............................................................................................................................... 18 Figure 7 ELVIVE - Main brand focus: Repair ................................................................................................................. 22 Figure 8 Schwarzkopf GLISS - Main brand focus: Type of Hair & Repair ..................................................................... 22 Figure 9 Herbal essences - Main brand focus: Final Look ............................................................................................... 23 Figure 10 Garnier Fructis - Main brand focus: Type of Hair ............................................................................................ 23 Figure 11 Brand Awareness.............................................................................................................................................. 24 Figure 12 Where do you know Pantene from? (More than one answer possible) ............................................................ 24 Figure 13 How satisfied are you with your current shampoo? ............................... .......................................................... 24 Figure 14 Please mention 3 or 4 shampoo brands that you know ..................................................................................... 25 Figure 15 Do you use Pantene? ........................................................................................................................................ 25 Figure 16 How long have you been using Pantene? .................................................................................... ..................... 26 Figure 17 What Pantene product do you use?................................................................................................................... 26 Figure 18 What do you look for in Pantene products? ..................................................................................................... 26 Figure 19 If Pantene was a clothes store, what would it be? ............................................................................................ 27 Figure 20 What would you change/add to Pantene? ......................................................................................................... 27 Figure 21 Why did you try Pantene for the first time? ..................................................................................................... 27 Figure 22 How satisfied are you with Pantene? (from 1 to 5) ........................ .................................................................. 28 Figure 23 Where do you usually buy Pantene products? .................................................................................................. 28 Figure 24 Have you used Pantene in the past?.................................................................................................................. 28 Figure 25 What shampoo do you use? .............................................................................................................................. 30 Figure 26 What benefits do you look for? ........................................................................................................................ 30 Figure 27 What would Pantene have to do for you to try it? ............................................................................................ 31
14 Figure 28 Do you think Pantene is more expensive or cheaper than the shampoo you currently use? ............................. 31 Figure 29 Where do you usually buy shampoo products? ................................................................................................ 31 Figure 30 Pantene collaboration with ELLE magazine in Spain .......................................................... ............................ 32 Figure 31 Pantene presenter media coverage .................................................................................................................... 33 Figure 32 Pantene911 Media Mix and "Rescue" Video ................................................................................................... 34
15 Appendix Figure 1 Pantene Pro V
Table 1 Shampoo Prices (in EUR) of Pantene and its Competition
Category
Supermarket
Store Pantene Fructis H&S ELVIVE GLISS Private label
Caprabo 3.00 2.95 3.00 2.95 2.65 N/A
(Name of private label)
Discount Drug store Mercadona Carrefour Dia Bodybell 3.00 3.25 3.38 3.15 2.95 3.15 3.13 2.95 3.00 3.25 3.18 2.99 2.95 3.15 3.58 2.99 2.95 3.19 N/A 2.95 1.00 1.00 1.05 (1.79) Deliplus
Carrefour
Dia
(Geniol)
Juteco Volume 2.99 300ml 2.95 300ml 2.99 300ml 2.95 300ml 2.95 300ml 1.00 Mercadona and Dia: 1,000ml, Carrefour and Bodybell: 750ml
16 Figure 2 Pantene Product Line in S pain
17 Figure 3 Top Shelf Space in a Salamanca Supermarket
Figure 4 Pen Portrait
18 Figure 5 Consumer Pathway
Figure 6 Mind-Reading Focus Group
19 Mind reading focus group - Full Summary of Findings
We conducted a mind-reading focus group with 6 women aged between 20-39, what we consider to be the core target audience for Pantene. We showed them the current Spanish ad for Pentene while monitoring their subconscious thoughts. After, we asked them to explain how they were feeling, to give us additional context when analyzing the results. Here’s what we found out:
Brand users pay a lot of attention to the hair of the model – they are comparing her hair with theirs and get frustrated because “it’s not as nice”. However, this frustration is overcome, as brand users are relaxed by the end frame and slogan – hair so healthy it shines. It is familiar, makes them feel good and they know the product already, so they don’t need to
worry about what the bottle looks like. Conversely, non-users were relaxed by the frames featuring beautiful hair and paid attention to the end frame of the advertisement. This was part of a yearning for the spa-like environment, which then lead to heightened levels of attention at the end of the ad as they assessed the look of the actual product. Strangely, all users paid attention to the animation of the vitamin formula. They tended to take this message away, that the shampoo was full of vitamins to help make your hair soft. However, none could remember the variant of the brand – they could simply remember the brand itself. When asked if they would look for the variant in store, all said no. The ones who didn’t use it would not switch and the ones that did use Pantene did not feel the need to
change their current
formula. Both also loved the spa scenes. They felt relaxed and somewhat pampered by the luscious environment, with the featured waterfall being the most prominent images the women connected with. The very beginning of the ad, however, was a big fail. No one connected with the models pain of “crispy hair”. They could not recall this part of the ad, nor did these images register with them subconsciously. Hence, the ad’s attempt at problem -solution solution, but don’t
fails. They see the
connect it with the problem, which is ultimately why they cannot recall the product.
So the question is – what is the REAL problem women face with their hair? And how can Pantene create an ad and therefore product that addresses that? Since nobody, not even the users, connected to the problem. Therefore, the solution was irrelevant. Or, maybe the problem is fine, but the way the problem was communicated is not (with a celebrity, in black and white, so her hair looks worse than it is, even though everyone knows she has great hair). We can answer this by looking at the survey. Those who use Pantene do say that they main benefit they look for is hair repair. The brand is ubiquitous with hair repair. The graphic that shows this greats a lot of recognition, where the vitamins fill the hair up. This is the main reason non- users don’t like the brand. They are looking for a brand for their specific type of hair, and their perception is that Pantene does not offer this.
20 BRAND NON-USERS:
Red for relaxation, blue for attention. The further left, the more relaxed or considered the user is.
21 BRAND USERS:
Red for relaxation, blue for attention. The further left, the more relaxed or considered the user is.
22 Same Tier Competitors
Figure 7 ELVIVE - Main brand focus: Repair
renutricion
multi total Re air 5 vitaminas
lisointenso
colorvive
nutre & ilumina
nutriloss
arginina hydra resist 3 colá eno
Figure 8 Schwarzkopf GLISS - Main brand focus: Type of Hair & Repair
rizos
liso seda
suave y sedoso
hidratació n rofunda
color y brillo
ultimate re air
nutrición total
23
Figure 9 Herbal essences - Main brand focus: Final Look
puntas sedosas
suave y sedoso
hidratación profunda
brillo radiante
rizos definidos
frescor purificante
Figure 10 Garnier Fructis - Main brand focus: Type of Hair
anti caspa
Nutri Repair 3
Color resist
brillo radiante
hidra liso
stop caida
Grasos oleosos fuerza & brillo
hidra rizos
24 Survey Results Figure 11 Brand Awareness
Figure 12 Where do you know Pantene from? (More than one answer possible)
Figure 13 How satisfied are you with your current shampoo?
25 Figure 14 Please mention 3 or 4 shampoo brands that you know
Other Tsubaki Tresaimee Schwarzkopf Gliss Avene sunsilk L'occitane Garnier Aveda Elvive Herbal Essence Wella Fruc s Dove L'Oreal Kerastase Head&Sholders Pantene 0
Figure 15 Do you use Pantene?
5
10
15
20
25
30
26 Figure 16 How long have you been using Pantene?
Figure 17 What Pantene product do you use?
Figure 18 What do you look for in Pantene products?
27 Figure 19 If Pantene was a clothes store, what would it be?
Figure 20 What would you change/add to Pantene?
Figure 21 Why did you try Pantene for the first time?
28 Figure 22 How satisfied are you with Pantene? (from 1 to 5)
Figure 23 Where do you usually buy Pantene products?
Results of people who do not use Pantene on a regular basis:
Figure 24 Have you used Pantene in the past?
29 Table 2 Why did you quit (or never used it)?
No relation to the product Missing hair repair Not my taste (No reason) Looks shabby, and I like Bodyshop Not a good shampoo I thought it was too chemical Expensive Because I don’t feel a change in my hair as others s hampoo does.
It produced scalp caused hair fall Didn't do what it advertised I've never feel the need to change brand After I used it, I got bad and dry hair
14% 7% 7% 4% 4% 11% 7% 4% 4% 4% 4% 7% 11% 4%
30 Figure 25 What shampoo do you use?
Figure 26 What benefits do you look for?
31 Figure 27 What would Pantene have to do for you to try it?
Lower price Setup a special hair repair line Smoother texture Softer against hair skin Good quality Nothing Better packaging Bigger variety Have a natural line Leave my hair less dry and with no freeze Change the smell. I think that the products that have a strong smell are bad. come up with a better and effective formula Offer products for man launch more premium range with more essential oil
17% 10% 3% 3% 23% 13% 3% 3% 10% 0% 3% 3% 3% 3%
Figure 28 Do you think Pantene is more expensive or cheaper than the shampoo you currently use?
Figure 29 Where do y ou usually buy shampoo products?
32 Figure 30 Pantene collaboration with ELLE magazine in Spain
vii
33 Figure 31 Pantene presenter media coverage
viii
34 Figure 32 Pantene911 Media Mix and "Rescue" Video
http://youtu.be/c5Ydc3GpSkM
