PRODUCT MIX STRATEGY

(HEAD AND SHOULDERS)

Rommel Mananguit

I.

Background of the Company: A Humble Beginning

Procter and Gamble Company (P&G) was founded by William Procter (right side) and James Gamble (left side), in 1837. Both men were immigrants to the United States.

The company began by selling soap and candles, but after the invention of Edison's electric light bulb in 1850, candle sales were so slow that they stopped production. Things looked up, however, because the U.S. Government began to order loads of soap from Procter and Gamble for Union soldiers during the Civil War. With the increase of production demands, the company began to investigate more productive and less time-consuming ways to make soap. That eventually led the firm to many more innovative ideas and many more lines of soap, for hair, laundry, and eventually dishwashers. Other kinds of products would be born as well.

A company is formed The two men might not have met had they not married the sisters Olivia and Elizabeth Norris. Their new father-in-law suggested that they become business partners. In 1837, the Procter and Gamble Company was born. With intentions of heading farther west than they managed, William Procter (emigrating from England), and James Gamble (emigrating from Ireland), settled in Cincinnati, the "Queen City of the West." Procter had a sick wife to look after, while Gamble had medical problems of his own to overcome. Those factors compelled the future proprietors to "stay put," so that destiny would ensure a great company in Ohio. After Proctor's wife died of a terminal illness, he quickly prospered as a candle maker. Meanwhile, Gamble was making ends meet as an apprentice soap maker. A few months later, on

April 12th, 1837, Procter and Gamble started to make and sell mass quantities of candles and soap.

A company built of soap In 1859, 22 years after the partnership was formed, P&G had reached $1 million in total sales, in spite of declining candle sales. Fortunately, three years later during the Civil War, Procter and Gamble was awarded numerous contracts to supply soap and candles to Union armies. Those orders kept the factory of 80 employees busy day and night. The fact that P&G supplied soldiers enhanced the company's reputation for heavy-duty quality. That was reinforced when troops came home from the war carrying P&G's soap among their belongings. By the year 1879, a new generation of the company was emerging while unveiling improved ideas. Founders' sons Harley Procter and Norris Gamble helped to put a new spark into P&G. Norris Gamble developed an inexpensive white soap equal to the former high-quality, imported castiles. Inspiration for the soap's name Ivory came to Harley Procter, where he would place $11,000 towards well-spent advertising. The name became an ideal match for the soap's virtual purity ("99 and 44/100ths percent pure"), mildness, and long-lasting quality. By 1890, P&G was selling more than 30 types of soap, including Ivory. The year 1890 also brought an end to 53 years of the business as a partnership. The partners incorporated, and raised additional capital for expansion. William A. Procter, one of two sons of the founder, was then named the first president. P&G then set up one of the earliest product research labs in America at Ivory dale (a newly constructed plant in Cincinnati) to study and improve the soap-making process. In 1907, following the death of his father, William A. Procter, a new president was named, William C. Procter.

Expansion and Crisco The year 1911 saw the introduction of P&G's new Crisco product, and by 1915, the company built its first manufacturing facility outside of the United States, in Canada. The plant employed 75 people. By 1943, following the passing of William C. Procter, new president Richard R. Deupree continued the company's robust progress. The introduction of hair products and household cleaning products gained the growing company even more ground, responding to an increasing demand for daily consumer products. When Deupree took the helm in 1930, he didn't take long to supply the Far East with such products by means of the Philippine Manufacturing Company.

Household products and pharmaceuticals P&G weathered the Great Depression and World War II kept it perking. Most people who grew accustomed to P&G's convenience products couldn't put them down. What that allowed was more research and development of past products as well as newly introduced "conveniences." By 1978, Procter and Gamble seemed to have covered all bases in household products. From "Tide" laundry detergent to feminine products, P&G dominated the industry with company expansions throughout Japan, China, Europe, and other parts of the world. The company's introduction of pharmaceuticals in the form of Didronel (a treatment for Paget's disease), spurred a further upward spiral of corporate profits.

Still a diverse company Today, after nearly two centuries of research, development, and expansion, there are more than 300 P&G products available to the general public. If you brush your teeth, wash your hair, or take a prescription drug, chances are good that what you're using originated in a Procter and Gamble plant.

Purpose, Values & Principle

Purpose: Provide branded products and services of superior quality value that improve the lives of the world's consumers, now and for generations to come. Values: Attract and recruit the finest people in the world. We build their organization from within, promoting and rewarding people without regard to any difference unrelated to performance. Principle: Show respect for all individuals. Strategically focused on work Value Personal Mastery Seek to Be the Best Innovation Is the Cornerstone of Our Success Mutual Interdependency Is a Way of Life Externally Focused

Global Operations What began as a small, family-operated soap and Candle Company now provides products and services of superior quality and value to consumers in over 180 countries. Three billion times a day, P&G brands touch the lives of people around the world. The company has one of the strongest portfolios of trusted, quality, leadership brands, including Pampers, Tide, Ariel, Always, Whisper, Pantene, Folgers, Charmin, Downy, Lenor, Iams, Crest, Oral-B, Actonel, Duracell, Olay, Head & Shoulders, Wella, Gillette, and Braun. The P&G community consists of almost 140,000 employees working in over 80 countries worldwide.

II.

Marketing Mix Elements Product: Head and Shoulders

 History The idea for Head & Shoulders dates back to about 1950 when Procter & Gamble research determined that consumers were not completely satisfied with the then existing anti-dandruff shampoos. After 10 years of research, P&G scientists found a new and effective ingredient against dandruff that that really workedPyrithione Zinc. In 1960, P&G tested the product and by the spring of 1961, the shampoo was given its name, Head & Shoulders, and Procter & Gamble started to work on the packaging, displays, advertising, and marketing programs. Head & Shoulders was introduced to the public with the original product, which was a blue-green cream shampoo in a white glass jar and was clinically proven to reduce dandruff. Over the last 50 years, Head & Shoulders has significantly evolved offering a variety of shampoos and conditioners to meet consumers hair and scalp needs. Head & Shoulders is worlds No.1 anti-dandruff shampoo. A power brand from P&G, this brand made its debut in Pakistan in 1991. In Pakistan, H&S has a 65% market share of Anti Dandruff shampoo segment. It has consolidated this position since the new Renaissance launch. Core benefits, Features and Advantages Introduced in 2007, the proprietary zinc pyrithione (ZPT) formula in Head & Shoulders effectively targets the source of dandruff so men and women can feel confident that their hair looks great. With full lines of shampoos and conditioners, Head & Shoulders systems provide the dual benefits of achieving both a healthy scalp and great-looking hair. Offering ten shampoos and five corresponding conditioners, Head & Shoulders has a line to fit the needs of all men and women. Head & Shoulders is working hard to dispel the myth that dandruff is only visible flakes. The truth is that flakes, one sign of an unhealthy scalp, are a result of the bodys natural reaction to Malassezia globosa (M. globosa), the dandruff-causing fungus that lives on the scalp of 100 percent of the adult population. Thanks to breakthroughs in scalp care from the genomic sequencing of the Malassezia globosa fungus by Head & Shoulders and P&G Beauty, scientists can work toward additional scalp treatments for the millions of dandruff sufferers worldwide.

Head & Shoulders proprietary pyrithione zinc (ZPT) and hydra-mineral formula is an effective tool to control the growth and spread of M. globosa, helping to eliminate the fungus and ultimately promote a healthy scalp and great-looking hair. In addition, Head & Shoulders provides seven essential scalp and hair benefits: 1) Removes Flakes 2) Fights Dryness 3) Calms Itching 4) Relieves Irritation 5) Reduces Redness 6) Controls Oiliness 7) Gives Beautiful Hair

Branding Strategy Firstly, it was able to differentiate itself from other anti- dandruff shampoos by the means of introduction of new element ZPT. Secondly, Head & Shoulders was able to create a strong appeal as a mild, caring Antidandruff shampoo with lots of variants based upon consumer needs. Thirdly, belonging to P & G gives Head & Shoulders esteem in consumers mind and the quality maintenance with appropriate pricing gave Head & Shoulders strong respect. Lastly, its innovative campaigns and pervasive ways of promotion made the consumers well aware about Head & Shoulders.

Packaging Strategy The product has eleven varieties with five SKUs each (2 ml and 3 ml sachet, 100ml, 200ml and 400ml pack).

The product uses attractive white and royal blue combination as its base packing. The product uses a freshness essence in its packaging which, in consumers mind, creates a positive impression. Social Responsibility For more than 170 years, P&G brands and people have touched and improved consumers lives. This commitment extends to our social investments. Our people and our brands are our greatest assets, and together, they are a tremendous force that can make an impact that matters. Through P&Gs Live, Learn and Thrive cause, we are helping children in need around the world get off to a healthy start, receive access to education and build skills for life.

The P&G Childrens Safe Drinking Water (CSDW) Program uses powdered water purifying technology to turn dirty, potentially deadly water into clean, drinkable water. To date, CSDW has reached more than 65 countries and saved tens of thousands of lives.

Pampers and UNICEF are working to vaccinate women and children around the world from maternal and neonatal tetanus.

Protecting Futures works with partner organizations to help vulnerable girls stay in school.

Thanks to P&G Hope Schools, children now have better access to education in poverty-stricken rural areas of China.

India has the worlds largest number of uneducated childrenbut our Shiksha program (Hindu for "Education") is dedicated to fighting that trend.

Every day, 13 million children in the United States risk going hungry. But P&G is helping to change that.

There is widespread consensus about the importance of Early Childhood Development and its significant, positive impact on the long-term wellbeing of children. Disaster Relief at P&G Disaster relief is a major part of our corporate citizenship commitment. We focus our efforts on where P&G can uniquely add value. Grant Application Each grant request we receive is carefully evaluated to determine alignment with Live, Learn and Thrive and to be certain we are investing in sustainable solutions.

Price

Pricing Strategies At the time of launching it used price-quality inference strategy. Currently it is using reference pricing as well as value pricing. The prices of the products are reasonable and are within the easy reach of the people. These are internal factor that are affecting pricing of Head and Shoulders. Goals and Objectives: One of the most important factors is companys goals and objectives, company sets its goals and objectives for maintain the market share of Head & Shoulders and for survival in the market.

Cost aspects actual cost: There is also cost involves in the transportation of Head & Shoulders and its promotional advertisement.

Organizational Consideration Price of Head & Shoulders set by the Brand Director, Marketing Manager, Brand Manager and Companies Activation manager. Change occurs in the price of the Head & Shoulders due to the competitors price strategy. Market and Demand Head & Shoulders facing tough competition because of so many competitors. Companies follow the promotional price strategy in summer season because in summer seasons the demand for the Head & Shoulders increase.

Competitors Pricing Strategy Companys price and promotional strategy also affected by the competitors price strategy. But luckily Head & Shoulders holds quite good share in the market so competitors may have affect on the pricing strategy but normal extent.

Place/Distribution The distribution channel of Head & Shoulders follows the conventional route of FMCG goods marketing, viz. Factory to distributor to whole-seller to retailer to consumer. Head & Shoulder has already spread in all major towns and cities across India, almost 2400 distributors reaching out to 5.8 lakh retailers in all over the country. It is found in every Grocery Shops, Medical Shops as well as Stationary Shops.

Promotion Advertising P&Gs anti-dandruff shampoo brand, Head & Shoulders, has roped in actor Kareena Kapoor as its new brand ambassador. In its advertisements, Head & Shoulders introduces itself as a premium brand and uses the charm and beauty of beautiful models. Attractive Banners and Hoardings are used extensively. Print media (News papers, liflets and pamphlets etc.) is used with exclusive high resolution attractive models. The emphasized is on healthy, long and beautiful hair. Other media used: 1. Hair Saloons 2. TV advertisement 3. Sports events 4. Road shows 5. Community & Blogs

Advertisement

6. Different Sales Promotions Schemes 7. Magazines 8. Internet 9. Radio Sales Promotion Sales promotion is done on a continuous basis. This type of promotion includes coupon, samples, and rewards, Displays etc.

Identifying competitors

VS

Competitor
I. Introduction

Background of the Company

Unilever is a multi-national corporation, formed of Anglo-Dutch parentage that owns many of the world's consumer product brands in foods, beverages, cleaning agents and personal care products. It was created in 1930 by the merger of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie. In the 1930s the business of Unilever grew and new ventures were launched in Latin America. Since then Unilever has made tremendous growth, going through economic crises like the First World War and the Great Depression. Today the company is fully multinational with operating companies in over 100 countries, employing about 179000 employees. With the onset of the 21st century, Unilever implemented a strategy known as Path to Growth to transform business and to launch their Vitality mission. With 400 brands spanning 14 categories of home, personal care and foods products, no other company touches so many people's lives in so many different ways. 150 million times a day, someone somewhere chooses a Unilever product. From feeding ones family to keeping ones home clean and fresh, Unilever brands are part of everyday life. Unilevers mission is to add Vitality to life. It meets every day needs for nutrition; hygiene and personal care with brands that help people look good, feel good and get more out of life.

II. Presentation/ Discussion of the Marketing Mix Elements Product History of Sunsilk Shampoo Launched in 1954, in the UK, Sunsilk had quickly become Unilevers leading international shampoo brand. By 1959, it was available in eighteen countries worldwide. In the 1980s, Pakistan had a largely under-developed market in terms of personal care products. The

launch of Sunsilk in 1983 introduced FMCG industry in Pakistan to redefine the lives of its people. Sunsilk introduced in 1989 with three variants related to hair type endorsement of a hair stylist was the first step in building the image of brand as health care expert. With the competition of local and multinational companies due to rationalize of excise duties, Sunsilk has not been able to take market share. To strengthen the brand UPL decided to prelaunch Sunsilk premium range consisting of four variants in January 2000. Due to need of shampoo for oily hair and dandruff unilever launch a new variant of Sunsilk having citrus extracts. Sunsilk was introduced in 1989 in Pakistan with three variants related to hair types. With the competition from local and multinational companies due to rationalization of excise duties, Sunsilk has not been able to gain the desired share in the market. To strengthen the brand, LBPL decided to re-launch Sunsilk with a premium range consisting of four variants in January 2000. In 2001, due to the constant research of their affiliated hair care institutes, the need of a shampoo for oily hair was observed and they launched a new variant of Sunsilk having citrus extracts.

 Core benefits, Features, Advantages, Classification

Yellow Sunsilk with Bio Proteins from Vegetable Extracts: Normal hair needs wholesome nourishment. New Sunsilk with Bio Protein extracted from Vegetable milk has nutrients that deeply penetrate each hair strand, to nourish it leaving hair strong and beautiful.

Black Sunsilk with Melanin from Plant Extracts: Dull hair needs a rich black shine. New Sunsilk with Melanin extracted from plants serves this purpose very effectively. It helps in the growth and retention of the black color of hair, giving it a rich black shine.

Green Sunsilk with Fruitamins Vitamins from fruit Extracts: Thin and limp hair needs extra body and volume. New Sunsilk with Fruitamins has natural extracts from fruit that contains Vitamins. These vitamins help in giving extra body, shine and amazing manageability to the thinning and lifeless hair.

Pink Sunsilk with yoghurt proteins: Dry hair needs wholesome conditioning, extra shine and style. New Sunsilk with yoghurt proteins makes the dry hair full of life. Its especial ingredients moisturize each hair right to its tips leaving it shiny and beautiful.

Orange Sunsilk with active nutrients from Citrus Extracts: The advanced formula of orange Sunsilk is the result of the latest research. This shampoo is especially designed for oily hair type that looks flat and greasy due to the excess of moisture. New Sunsilk with active ingredients from citrus extracts cleans the excess oil off hair while its nutrients deeply penetrate each hair strand to nourish it.

The benefit that Sunsilk brings towards its customers lies in the fact that it has an established brand name, in fact the most established in many countries. It also provides variant solutions for different hair care needs and provides a range of product lines (cream shampoos, liquid shampoos, conditioners, tonics, etc) that answer to the complete needs of its customers. In addition, the product mix is also very prevalent as Sunsilk is able to provide various creations of every product that it has, in terms of smell, usage and other variables.

Branding strategy: The branding strategy for a firm reflects the number and nature of common and distinctive

brand elements applied to the different product sold by the firm. Branding strategy involves deciding the nature of new and existing brand elements to be applied to new and existing products. Branding Decisions: Branding strategy is one of the most vital decisions taking by marketers. It is a strategy, which brings lots of positive feedback for a firm. The first branding decision is whether to develop a brand name for a product. Today, branding is such a force that hardly anything goes unbranded.

Unilever follow individual name for setting brand name for their different products, such as Sunsilk, Dove (Shampoo), Ponds, Fair & lovely, Dove for skin care. Unilever get a major advantage of an individual name strategies that the company does not tie its reputation to the products. So, if any brand fails or appears to have low quality, the companies name or image is not hurt.

 Brand Elements: Brand elements can play a number of brand building roles. Band elements are those trademarkable devices that identify and differentiate the brand. Most strong brands employ multiple brand elements. Marketers choose brand elements to build as much brand equity as possible. Brand elements such as: memorable, meaningful, likable, adaptable and protect able. We describe those elements in short as follows:

Memorable: Every consumers mind catches the brand name. Their marketing programs set the brand name in consumers mind. Their short brand name such as: Dove, ponds, Sunsilk etc are easily memorable. Meaningful: Every consumer has a clear meaning about Sunsilk. Consumer thinks about Sunsilk as a product which solve their problem relating with hair. Likable: From our research we found that most of the people like the brand verbally and visually. Protectable: The brand name is legally and competitively protectable. The brand retain their trade mark rights and not generic. Adaptable: Another fact which we saw in Sunsilk. Different pack size and new formulas are easily accepted by the consumers.

Packaging The packaging and labeling of Sunsilk products includes its sleek containers,

distinguished and striking colours (Care and Repair in orange, Colour and Shine in red, Silky and Straight in purple, Anti Itch in peach, Anti Flat in blue, Waves and Curls in green, Respect and Balance in pink, and Fresh For Longer in turquoise ) for every hair care solution which make them very easy to remember. In addition, one feature or attribute of the product is that they are each created ban expert. The augmented aspect of it is the fact that the packaging is nicely integrated, assurance of proper hair treatment is guaranteed and an after-sales service which is observed to answer all the customers needs.

 Social Responsibility Sunsilk Celebrates Sharing and Togetherness in the 100 Becomes 2 Walk, this is one of the activities of sunsilk and at the same time its contribution to less fortunate girls. This is one of the activities that they did to become socially responsible. To celebrate the joy of sharing and to demonstrate the significance of Valentines Day as a symbol of love, Sunsilk invited teenage girls to demonstrate their care and concern for fellow girls who are less fortunate by participating in the 100 Becomes 2 Walk,involving 2,000 girls from several senior high schools in Jakarta on Sunday Feb 15. Funds collected from the event were presented to young women via the Sunsilk Circle of Beauty (SCOB) who could not finish school. As Sunsilk Senior Brand Manager Chris Oey explains: SCOB is a form of social responsibility Sunsilk undertakes for the benefit of the community, primarily for girls whose studies have not been completed due to funding difficulties. Sunsilk invites teenage girls to join in the 100 Becomes 2 Walk for which every participant paid 10,000 IDR to help residents of Sleman Village and Gunung Kidul, Yogyakarta, whose education has not been completed. Chris Oey sent off the participants in the 100 Becomes 2 Walk at the starting line at 07.00 a.m. Setting out from Wisma Pondok Indah, they followed a circular route totaling 5 km in length and ending at Pondok Indah Water Park. Despite the heat of the sun and being bathed in sweat, the girls enjoyed this relaxing event. After the walk, they were entertained by band Alexa and took part in swimming competitions at the Water Park in which they could win prizes.

They demonstrated their enthusiasm for the events with rousing cheers, while donning yellow t-shirts they had modified as accessories. One participant in the 100 Becomes 2 Walk, from State Senior School No 68 Jakarta told us about her enthusiasm in joining the event with her friends: Wow, Im really enjoying this event, just because Im walking together with my friends. Even better than that, were helping our other friends, who had to leave school, said Dini on the sidelines of the event. This event also the conditions that face girls whose activities take them outside their homes and under the sunlight, and what the outside environment can do to a girls hair: for instance, dry hair can break and fall out. There are many factors, including air pollution, direct sunlight, and swimming-pool water, that can affect hair health. For example break and fall out. So, for healthy hair that shines, treat it with a combination of products including shampoo and conditioner tailored to your hair type, like Sunsilk Hair Fall Solution Shampoo and Conditioner, says Chris. Healthy, fracture-free hair helps todays young women to fully explore their capability to contribute to the society and inspire others. That is the real meaning of being together, and Sunsilk is helping young women achieve that by helping other girls who have had to leave school.

Price Suns ilk is very sensitive to increase its market. Its sometime very challenging for a firm to expand its total market. Sunsilk basically wishes to increase new customer and more usage.

New customers: Sunsilk trying to attract buyers who are unaware of the product or who are resisting it because lack of such features. Sunsilk using market penetration strategy, new market segment strategy and geographical expansion strategy for searching new consumers. Very attractive advertising and other propositional activities perform a vital role in this case. More usage:

Sunsilk recently increase the amount, level and frequency of consumption. It also improves packaging and redesigns the product. It offers larger package sizes and makes the product more available. They emphasize more on marketing program, which inform the consumer about the brand and it frequently develops the product which also spurs new uses.

Place/ Distribution Product placement can be considered a new marketing tool when associated within motion pictures and television. It can result in a more positive brand attitude when the product is

associated with a character or group of characters that are preserved to be positive in the eyes of their audience. It is the intention of this study to look at the effects of product placement and its use in combination with advertising and their effects on the target audience. review is an attempt to view both sides of the controversial issue. The problem of this study is the effect of product placement, used as a marketing tool, in motion pictures, television, literature, Internet, and in games, and the effect that it has on particular product consumers. This literature

Product Display

Promotion

Communication Tools of Sunsilk

There a number of ways to advertise both local and global brands in the market. Some of the very common means through which advertisement is done include: Electronics Media: Electronic Media has been the major factor in determining the global success of Sunsilk. In todays world where an average middle class individual has access to 30 to 40 channels through the cable minimum, he has the ability to view different types of advertisement just flipping the channels. Thus the consumer of today is so well posted on the fact that whenever a new product is launched, is it in the United Kingdom or in the United States, a consumer living in Asia would be well aware of the features of the product sand he would know who the company is targeting. Print Media: Print Media advertisement is one of the common ways of advertising. The print media including the magazines, newspapers and brochures are relied upon a lot. In print media, the importance of placing the advertisement plays an imperative part in increasing the sales of the product.

Billboards: Billboards have become one of the most influencing ways to advertise in our world. Everyone can see a whole advertisement like you watch on your own televisions or the type of moving and animated type of advertisements that you can see on the billboards happen to be very much in fashion. Sunsilk also has nearly all of its products on the billboards when either its launching a new ad, coming up with price promotions or re launching any product. These ads seem to be appearing all the time, which is really good for the company, as they are easily attracting the customers in every possible manner.

Giving out free Samples: When the new Sunsilk Black was introduced, what the company did was, to create awareness amongst the youth they went to schools and colleges and distributed free samples of the products and gave out little brochures which told the qualities that the product had and the proper method of getting a black and shiny hair look. Advertising Alliance: AOL Time Warner and Unilever announced their multi-million dollar advertising alliance. AOL Time Warner, the world's largest advertiser, announced a multi-million dollar enhanced cross-platform advertising and marketing partnership under which AOL Time Warner will bring Unilever's wide array of leading consumer product brands to millions of consumers through innovative marketing campaigns across AOL Time Warner's broad range of online, on-air and print media in 2002.

Conclusion The user of Head & Shoulders has an Outgoing personality and can impress people easily. He is meticulous in nature although he independently takes decisions.

He is similar to most people and due to his friendly nature, provides Good company.

The consumer of Sunsilk is totally independent in making major decisions. He seldom seeks advice from others and is indifferent to advertisements. Although he is meticulous but lacks innovation. His similarity to most people, outgoing and friendly nature, provide good company and accord him an impressive personality.

Sun silk came with the idea to grab the market and to be superior in the market. Sun silk can targeting the lower class, who have lower income. Its innovative campaigns and pervasive ways of promotion made the consumers well aware about Sunsilk.

Head and shoulder successfully established itself as a strong brand. Head & shoulders targeting mainly high and middle class people. Belonging to P&G give Head & Shoulders an esteem in consumers mind. In urban areas, Sunsilk is acting as a market challenger against Head & Shoulder. Sunsilk has got the advantage of keeping their prices lower than Head & Shoulder shampoos but Head & Shoulder has captured a bigger share of the market due to its intense promotional activities.

Market Share
28% 34% 38%
Head & Sholders Sunsilk Other Brand