Environmental and SWOT Analysis
Pantene Pro-V, one of the world's leading hair care products, delivers over $1.7 billion a year to its parent company, Procter & Gamble. Procter & Gamble experiences annual sales of over $40 billion and is one of the world's largest advertisers "“ ahead of General Motors and Phillip Morris. Pantene Pro-V is targeted at women 18-49, and is positioned as the brand that makes hair so healthy it shines.
Pantene Pro-V has the best selling shampoo in the world. Marketed in 72 countries, it is one of Procter & Gamble's truly global products. Although "Pantene"? has been on the market for over 50 years, it was acquired by Procter & Gamble as part of their 1985 purchase of Richardson-Vicks. At the time, the shampoo's market share was less than one-half percent and it was priced at more than $6 for a 7 oz. Bottle.
Procter & Gamble sent the shampoo to its research labs in Taiwan, which came out with a lower cost product, Pantene Pro-V, named for its vitamin formula, in 1990. Procter & Gamble began promoting it worldwide, turning it into the world's best seller within a few years. Global sales are at an all-time high. However, in the U.S. Pantene Pro-V Shampoo sales have been generally flat. Conditioner sales have dropped .3%. Situational Analysis (continued):
In June 2001, Pantene Pro-V was relaunched with new packaging and product enhancements. While much money was invested in the relaunch, it has not yielded the expected results, and there is concern that we may be losing loyal customers. Additionally, there is concern that a downturn in the economy could cause customers to switch to a less expensive shampoo and conditioner.
Chief competitors in the Shampoo arena include: Clairol Herbal Essences, Pert Plus, Head & Shoulders, and Suave. Conditioner competitors include: Clairol Herbal Essences, Thermasilk,...