Head & Shoulders
Recently, P&G, especially its product Head & Shoulders confronted with a problem that its product had a link to forest destruction. After this event, P&G was under high public pressure and consumers changed their image of Head & Shoulders. Based on this current situation, by doing some maketing analysis of Head & Shoulders, I provide a marketing plan for Head & Shoulders in the next five years.
Procter & Gamble Co. (P&G, NYSE: PG) is an American multinational corporation headquartered in Cincinnati, Ohio, which manufactures a wide range of daily consumer goods. The dominate P&G brands have five segments: Beauty, Grooming, Health Care, Fabric Care & Home Care, and Baby Care & Family Home Care. Among hundreds of brands, Head & Shoulders, a power brand from P&G, is world’s NO.1 anti-dandruff shampoo, which made its debut in India in 1997 after nearly a decade of research. According to the latest Nielsen date, Head & Shoulders led the anti-dandruff category at 13% while its closet competitors, Dove and Garnier Fructics were at 7.8% and 5.9% respectively (Harish, 2007).
In March, 2014, P&G, especially its product Head & Shoulders, confronted with a serious problem. The environmental group, Greenpeace, did a year-long investigation of P&G’s suppliers of palm oil and found that they are engaged in the clearing of endangered animal habitat, illegal forest fires and destruction deforestation in Indonesia. After this news, thousands of people worldwide have demanded P&G to break the link between their products and forest destruction, and some even have appealed to consumers not to use Head & Shoulders because using Head & Shoulders dandruff wash means consumers corporate social responsibility in helping companies to tigers missing from their homes in the forest off (Sheila, 2014). This event immediately changed the loyal consumers’ image of P&G, which used to be a “clean” marketing image, and what’s more, many consumers changed their cleaning products by using Unilever, L’Oreal, which commit to no deforestation. The event led P&G, including its small part Head & Shoulders, under high public pressure and its stock price were effected to some extend, which revealed unstable and relative low during the March.
Recently, P&G finally took the plunge and decided to clean up its act and wash its supply chain clean of bad palm oil, which means P&G joined a group of other palm oil traders and consumers in committing to no deforestation (Areeba, 2014). Also, Head & Shoulders said it will know the provenance of the palm oil and work with its suppliers and farmers to improve sustainablity, and promised that there will be no deforestation in its palm oil supply chain by 2020 (Paul, 2014). According to Head & Shoulders’ current situation, I think it is necessary for Head & Shoulders to do a marketing plan to change its current public image in consumers’ mind, otherwise, it will lose more market share.
First, it is essential to make a market analysis of Head & Shoulders. Head & Shoulders is a major player in the anti-dandruff niche and it had carried its heritage as worlds largest sellling anti-dandruff shampoo. Now anti-dandruff segment consititute around 15% of the shampoo market and P&G is the global market leader in the retail hair care market with over 20% of the global market share behind Pantene and Head & Shoulders. According to P&G’s annual report, Head & Shoulders is the prominent brand in P&G's Beauty segment.
1. Target market:
P&G are targeting customers having dandruff and dry & damaged hair in all age group and the target market for Head & Shoulders are the higher middle class people who are brand conscious, early adaptors and who care about the overall health of their hair. As can be seen, Head & Shoulders is positioned as a pure anti-dandruff shampoo and now has four targetd formulas, which are designed to treat itching, flaking, dryness and redness. In the future growth, as shampoo market...
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