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Project Report On Head And Shoulders Shampoo Marketing Essay INTRODUCTION: Procter & Gamble !P&G" is an American company head#uartered head#uartered in do$nto$n %incinnati Ohio 'SA( )ts products include *oods be+erages be+erages cleaning and personal care products( )n ,-.. ,-.. P&G recorded /0,(1 billion dollars in sales( 2ortune maga3ine ranked P&G at *i*th place o* the 45orld6s Most Admired Admired %ompanies4 list $hich $as up *rom si7th place in ,-.-( Procter & Gamble is the only 2ortune 8-- %ompany to issue % Share common stock( As o* 9uly . ,-.. ,-.. the company company structure is categori3ed categori3ed into t$o 4Global 4Global :usiness 'nits4 $ith each one *urther di+ided into 4:usiness Segments4 according to the company6s ,-.. Annual Report( ;imitri Panayotopoulos is :eauty segment Grooming segment Health %are segment Snacks & Pet %are segment 2abric %are & Home %are segment :aby %are & 2amily Home %are segment Manu*acturing operations are based in the *ollo$ing * ollo$ing regions> 'nited Sates o* America Europe %anada %hina !?. $holly o$ned *actories and other part o* Asia Philippines A*rica Me7ico Australia Australia @atin America( America(
About the Brand: Head & Shoulders is a brand o* antidandru** produced by P&G
Matt Elliott got Procter & Gamble researchers to start making a ne$ antidandru** shampoo in .B8-( Cearly a decade o* research $ent into making a ne$ * ormula $hich introduced pyrithione 3inc into the shampoo( )t $as *irst introduced to the '(S( market in Co+ember .B1. as a bluegreen shampoo *ormula( Head & Shoulders is the $orld6s number one antidandru** shampoo( A po$er brand *rom P&G this brand made it debuted in )ndia in year o* .BBD( )n the highly competiti+e shampoo market $hich is estimated to be $orth around Rs(.0-- %r H&S is a major player in the antidandru** niche( =he entire shampoo market $as dominated by H'@ $ith $hopping market share o* around 1F $hen the brand $as launched in )ndia the antidandru** market $as in its nascent stage and dominated by %linicAll%lear( =he high pro*ile launch o* H&S *ueled the gro$th o* this specialty market( Co$ antidandru** segment constitute around .8F o* the shampoo market moreo+er P&G is the global market leader in the retail hair care market $ith o+er ,-F o* the global market share behind Pantene and Head & Shoulders( According to P&G6s annual report o* ,-.. the :eauty and grooming market share $hich primarily deals $ith the beauty segment constitute o* 6F o* net sale o* ,F and percentage o* net earning account to ,?F6 *or P&G( =he prominent brand is Head and Shoulders in this segment(
Strategic Planning Models: SWOT analsis o! "ead # Shoulders: Strength Wea$ness )nternational brand $ith great brand e#uity( Only segmented as an antidandru** shampoo $hereas the competitor has $ide range o* shampoos $ith di**erent *eatures( Strong *inancial position in market( Mostly percei+ed as a harsh shampoo( :rand loyalty( @ess emphasis on other ne$ research based ingredients and *ormulas( High #uality & Ser+ices( More speci*ic to male gender(
A+ailability o* products in di**erent demographics areas pricing and market good$ill( @arge net$ork *or distribution(
O%%ortunities Threat 5ith the inclusion o* 2;) policy P&G can re+i+e its brand e#uity( )n*lation in )ndian economy( E7pansion o* market aimed to$ards all age groups including middle aged $omen $hich has signi*icant market share( High competiti+e market $ith ne$ entrants like @6oreal and ;o+e in shampoo segment( Ha+e a great opportunity in ne$ de+eloping areas o* )ndia(
BC& 'atri( o! "ead # Shoulders: :%G matri7 stands *or 6:oston consulting group6( =his is also kno$n as Gro$thShare matri7( =his matri7 helps us to classi*y a business o* a company in *our categories namely Star uestion mark %ash %o$s and ;ogs( =he details o* each are gi+en as *ollo$s> Stars> =his tiles represents the high gro$th rate and high market share i(e( the business is leader in its area( %ash %o$s> =his tile represents high relati+e market share and lo$ market gro$th rate( uestion mark> Here the gro$th rate is high but the market share is relati+ely lo$( ;ogs> =his is segment $here the gro$th rate is slo$ and has lo$ market share as in the business is lagging behind considerably( Head and Shoulder can relati+ely be positioned in bet$een the crosssectional area o* 6uestion mark and Star6( =he reason can be> =he market share o* H&S is lo$ but the gro$th rate is high( H&S needs to replan and re+ise it marketing plan as the opportunity is ample $hich can make into star category completely(
Custo'er )alue: %ustomer +alue can be de*ined as the consumer get in return to their money( =he per*ormance o* a company is measured ho$ the product or ser+ices gi+es the customer +alue in compare to $hat the competitor are o**ering( Here H&S claims that the shampoo deli+ers .--F dandru***ree hairs e+en $ith lo$ price hence $e can state that H&S deli+ers good customer +alue and satis*action le+el( =he +alue deli+ery chains relates itsel* to supply chain i(e( ho$ it partners $ith suppliers and distributions *rom *ormulating ra$ material and distribution o* its produced( H&S being a P&G6s daughter company takes a good le+erage o* good distribution channel and supply chain( Prominently H&S sold in )ndia is mostly shipped *rom Gul* countries( 5ith the introduction o* sachets o* denomination Rs(. and Rs(? H&S reached the rural market easily( 5ith more and more *ree sample distribution and blindtest the company is #uite success*ul in +alue deli+ery chain(
Mar$eting %lan: H&S is basically a product *or men and $omen $ith dandru** and scalp problems( =he $ant to ac#uire proper hygiene maintain a healthy scalp and hair to gain the right con*idence and ha+e a sense o* belongingness as they sociali3einteract $ith other( =he gap is that the other shampoo brands *ocus on enhancing or impro+ing haircondition(
Mar$eting 'i( and Strateg : H&S remo+es dandru** and stops it *rom coming back in just one $ash $ith a product range that suits +arious hair and scalp needs( )t uses =(< ads print ads sponsorship sales promotion and social media( H&S hired actor Sai* Ali Ihan and actress Iareena Iapoor *or their promotional acti+ities( Cation$ide distribution o* H&S is good(
Mar$eting en*iron'ent+ Micro and Macro: =here are t$o types o* en+ironment $hich company deals $ith macro en+ironment and micro en+ironment( Micro en+ironment are as *ollo$s> %ustomer Stakeholder Media Public
Consu'er Buing Beha*ior: Men and $omen need to address their> hygiene scalp health social needs sel* actuali3ation needs( =hey choose H&S o+er other antidandru** shampoos because o* the *ollo$ing reason> Product a$areness e**ecti+eness technology used price packaging popularity o* endorses credibility o* the manu*acturing company( Men and $omen e7pect the *ollo$ing $hen the use H&S> ;andru** elimination Re+itali3e scalp Remo+e itchy scalp Stop root cause o* dandru** Stops dandru** *rom coming back %ools and re*reshes the scalp Remo+e +isible *lakes More con*idence in interacting and sociali3ing $ith other people(
Maslo,-s "ierarch o! Needs: )t probably sa*e to say the best theory o* moti+ation is Maslo$6s( Maslo$ hypnoti3ed in e+ery human being there e7ist a hierarchy o* *i+e needs(
Physiological Sa*ety Social Esteem Sel* actuali3ation( 'ntitled(png
Mar$eting Research: Marketing research tools used by H&S uantitati+e tools H&S undertook research to generate ne$ ideas *or the product and market de+elopment( =he researches engaged the customers i n detailed discussion o+er di**erent *eatures o* their products( As a result the personal interaction bet$een the researches and the consumers $as high the major #ualitati+e tools used by H&S included *ocus group discussions inhome +isits in conte7t +isits instore inter+ie$s 2ocus group discussions> Here a group o* people $ho uses the H&S shampoo in brought under a discussion about the e+ery aspect o* it including #uality a*teruse satis*action thoughts o* the user etc( =he discussion is presided by a moderator $ho takes notes and *eedback o* the customers( )nHome +isits> =his techni#ue is more used in $estern countries $here the product is taken to a home and then *eedback is taken *rom a indi+idual( )n conte7t +isits> =o obser+e to practical di**iculty consumer *aces( Apart *rom gaining in*ormation on the $ay consumer actually uses a product the researcher elicits theirs opinions on the product and $eather they $ish to suggest any modi*ication( )nStore +isits> H&S used this strategy e7tensi+ely to gather the in*ormation *rom the consumer right *rom $here it buys the product( =he sur+eyor uses some #uestionnaires to kno$ the consumer6s opinions $hich helps the company to de+elop *urther strategy(
Seg'entation. Target and Positioning: Segmentation> A market segment consists o* a group o* customers $ho share a similar set o* needs and $ants( Rather than creating the segments the marketers6 task is to identi*y them an decide $hich ones to target( =he a+ailable segments o* H&S can be *ound based on demography geography pshychography or li*e style( :ut being an 2M%G product a shampoo brand like H&S the demographic and geographic segmentation is not as important as it based upon the li*e style as $ell as customer pre*erences despite o* their abo+e segmentation( =he core segments are Antidandru** black hair shiny hair lo$price H&S started operating in the antidandru** segment( As a added bene*it it also emphasi3ed on smooth hair( )n )ndia shampoo o* H&S mostly segmented on basis o* age and their $ants( )ts choose men and $omen o* t$enty to thirty*i+e age( Here they targeted them $ith di**erent strategy like mindset social need and other *actor(
Target Mar$et: =arget market is the section o* consumer $hich the business has decided to put marketing e**orts( =arget market is done a*ter segmenting $here they *ilter out the locali3ed group and choose a particular section o* consumer so that their product pro+ides ade#uate brand e#uity and brand +alue( =he target market *or H&S are the higher middle class people $ho are brand conscious early adopter and $ho care about the o+erall health o* their hair( H&S targets the people o* middle age men ! in the beginning" ha+ing scalp and dandru** problems( At the initial period o* its marketing strategy it sho$ed ad+ertisement $hich sho$ the *acts $ith only one use o* the product the shampoo gi+es almost .--F relie* *rom shampoo( )t introduced many other *eatures like menthol +olume boost hair*all therapy *or the college going youth and young pro*essional $ith hair conscious( H&S took the ad+antage o* physiological mentality o* this user group $ith adopting ads $here prominent actors $ere used(
Positioning :rand positioning re*ers to 4target consumer6s4 reason to buy your brand in pre*erence to others( )t is ensures that all brand acti+ity has a common aimJ is guided directed and
deli+ered by the brand6s bene*itsreasons to buyJ and it *ocusses at all points o* contact $ith the consumer( :rand positioning must make sure that> )s it uni#uedistincti+e +s( competitors K )s it signi*icant and encouraging to the niche market K )s it appropriate to all major geographic markets and businesses K )s the proposition +alidated $ith uni#ue appropriate and original products K )s it sustainable can it be deli+ered constantly across all points o* contact $ith the consumerK )s it help*ul *or organi3ation to achie+e its *inancial goals K )s it able to support and boost up the organi3ation K H&S is positioned as antidandru** product $hich clear *lakes $ith one $ash( As the market leader it has success*ully ac#uired the niche market o* antidandru** segment( =he e**ecti+e distribution channel and deep penetration in the rural market has boosted up the sales in past year making it a leader( According to annual report o* H&S ,-.. the #uote states 4H&S $as relati+ely small primarily north American brand a decade ago( 5e in+ested in combination o* marketing and product inno+ations and began to e7pand the brand globally( Since then $ ha+e more than tripled sales and H&S is no$ the largest shampoo brand in the $orld(4