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Cover Sheet: Non-Anonymous Marking

Student Name: Hj Md Zulfadhli Ibnu Hj Md Huzaimi

Student ID: 8018995

Degree Title: BA Global Business Management

Level: Year 3

Module Title: International Marketing Strategy

Module Code: 307LON

Seminar Lecturer: Mr. Moin

Assignment Title: An Analysis of P&G

Word Count: 2282 words

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 I, Hj Md Zulfadhli Ibnu Hj Md Huzaimi, confirm that this submission is my own work and I accept all responsibility for any copyright infringement that may occur as a result of this submission.

Date of Submission: 19th November 2018

Hj Md Zulfadhli Ibnu Hj Md Huzaimi

Student ID : 8018995

International Business Strategy

An Analysis of P&G.

Table of Contents

• Introduction

• Environmental Analysis (Macro Industry)

• Industry Analysis (Micro Industry)

• Marketing Strategy Analysis

• Conclusions & Recommendations

• References

International Marketing Strategy – an Analysis of P&G

Introduction (a brief synopsis of the report & brand)

For a business to succeed in the long term, a strong strategy must be needed in order to expand market share. To strive in the industry, companies must be aware of the political and economic activities in local and international markets. This report will be a comparison between two different markets to critically evaluate the similarities and differences of the main marketing activities of Head & Shoulders when having to offer their products in United Kingdom (Local Market) and India being the International Market. Head & Shoulders is one of Procter & Gamble's most renowned brand which comes under the beauty care industry, also known as the World's number 1 Anti-Dandruff Shampoo. P&G products are known and made a name for themselves by inventing an anti-fungus formula that demolishes the dandruff. Head & Shoulders have been around since the 1960s, with a mission of freeing the world from dandruff. They are dedicated to getting rid of dandruff and giving consumers great-looking hair. (headandshoulders.co.uk) Head & Shoulders also creates products to cater the needs of everyone, regardless of ethnicity or hair type. According to Nielsen Sales, this that makes them the world's number 1 shampoo. (Nielsen Sales) The company has also been active in the participation to improve the environment. They are committed to reducing beach plastic and manufacturing the beach plastic to create bottles for their shampoos. 100% of Head & Shoulders' packaging are recyclable and reusable. (headandshoulders.co.uk) With their actions, the company enables and inspire responsible consumption amongst everyone.

Environmental Analysis (Macro Industry)

The UK has a gross domestic product of 2.622 trillion USD by the end of 2017. (BBC) The inflation was at a six month high of 2.7% (World Bank) Head & Shoulders in the United Kingdom are aware of the economic uncertainty due to the ongoing Brexit which has an effect of the exportation of their products. That is one of the main problems that head & shoulders are facing. Head and Shoulders in the United Kingdom is facing uncertainty in the business environment due to Brexit, also causing a political turmoil which has an effect on Head & Shoulders.

By the end of 2017 India's total GDP was 2.597 trillion USD and the percentage of the GDP has increased by 8.2% in the first quarter of 2018-2019.(World Bank) The inflation rate of India is low considering having a total population of 1.35 billion in 2018. The country is one of the largest democracies in the world, the political environment is vastly influenced by factors such as the government's imposed policies and ideologies of different political parties. This will result to the business environment in India being affected by multiple political factors. Every single product of Head & Shoulders goes through proper testing in order to confirm that they are safe and can be used by everyone. Being a subsidiary of Procter & Gamble, Head & Shoulders adheres to the same standards of safety as regulatory bodies around the world. (headandshoulders.co.uk) Now, they are continuously having intensive research to improve their product with new advanced technology to improve their products however they can. The growth of online shopping also offers Head & Shoulders new sales opportunities to sell to new and existing customers. India has been experiencing a constant growth in its GDP throughout the past decade.

The PESTEL Table below will compare between UK and India and its factors.

Political & Legal Economical Social Environmental Technological

UK In June 2016, the United Kingdom voted to leave the European Union causing political turmoil.

Brexit creates uncertainty in the business environment and financial markets.

Impacted EU labour recruitment, reducing the supply chain efficiency.

The pound sterling plunged to its lowest against

Low economic growth in the UK with an increase in price inflation.

GDP in 2017 2.622 trillion USD with a total population of 66.57 million. (World Bank). Less wide gap of income distribution comparing to India.

Rise of environmentally conscious consumers leading to new trends like use of recyable plastic to create bottles by Head & Shoulders. The growth of online shopping offers Head & Shoulders and other P&G products new sales opportunities to sell to new and existing customers.

INDIA Demonetizing currency

India facing corruption issues can have an effect on Head & Shoulders.

Being a democracy will have political issues with changes of policy and rules amongst the government. The inflation in India is low.

GDP at the end of 2017 was 2.597 trillion USD and its total population was 1.35 billion (World Bank).

Wide gap of income distribution

Water Pollution and Waste pollution is an issue that can be solved by recycling waste into making bottles for products. Technology in India has been able to imply new advanced technology slower than the local market.

Industry Analysis (Micro Industry)

Both United Kingdom and India have similarities when looking at the internal factors influencing the industry. The UK  In India, the market was dominated by Procter & Gamble and India's largest fast moving consumer goods company, Hindustan Unilever Ltd. (HUL), which has a subsidiary company of Sunsilk, who are the competitors of Head & Shoulders.

Threat of New Entry Threat of Substitution Competitive Rivalry Buyer Power Supplier Power

UK High High High High High

INDIA High High High High High

Marketing Strategy Analysis (STP)

One of Head & Shoulders best strengths is their association with Procter & Gamble. The parent company of Head & Shoulders has been a strong plyer in the international market, specifically the personal care industry, having many successful brands such as Gillette, Olay and Oral B. P&G gives a strong support being the backbone backing up with various research and having a strong distribution channel. Another strength is that Head and Shoulders as a product targets everyone, positioning themselves as a solution for different hair issues like dry hair, scalp problems, hair fall and anti-dandruff. Problems facing by Head & Shoulders are mainly due to the current crusade against chemicals. There are many campaigns that warn customers against usage of products that contain chemicals. This has affected the sales of shampoos and conditioners because there are people who prefer to use organic or natural ingredients on their hair, even though Head & Shoulders have said that their products are tested and safe to use. There is a huge market potential in the beauty care industry, especially shampoo, with increased stress level and poor water quality, more people are suffering from many hair issues. This will create new opportunities for multinationals to create a niche product to solve different hair issues.

The shampoo industry in India has evolved extensively since the 1960s, which was then considered a lifestyle product in urban India. (Chetty) Until 2005 where the market was dominated by companies such as Procter and Gamble and Hindustan Unilever Ltd. The competition has widened since then to include many more companies coming into the market as competitors such as Dabur Ltd and Garnier India Ltd (Chetty). With more companies entering the shampoo industry, the capacity of growth in all ends of the industry is high. The penetration rates are low which gives companies the advantage. Head and Shoulders cater to both men and women, with various shampoos available such as anti-dandruff, classic clean, silky black, lemon fresh, anti-hair fall, cool blast, dry scalp care with almond oil and hair retain. (headandshoulders.co.uk) Head and Shoulders positions themselves as a premium brand by using top actors, athletes and models to promote their brand while also being affordable amongst different users within different incomes in both UK and India.

UK Segmentation and Targeting Table:

Segmentation Variables Segmentation Variables Target

Demographic Variables Income

Age (18-25, 26-35, 36-40)

Education (Masters, Doctorate, High School, Undergraduate)

Gender All Income Areas

Ages 15-40, People working and college goers.

Both male and female

Behavioural Variables Purchase Occasion

Purchase Frequency Occasionally purchased

Psychographic Variables Social Class

Busy Lifestyle

Lifestyle

High Class

Upper Middle Class

Middle Class

College goers

Geographic Variables Big Cities

Small Cities

Rural Cities Urban Area

Rural Area

India Segmentation and Targeting Table:

Segmentation Variables Segmentation Variables Target

Demographic Variables Income

Age

Education

Gender All Income Area

Age 18-40

College and office workers.

Both male and female

Behavioural Variables Purchase Occasion

Purchase Frequency Frequently purchased

Psychographic Variables Social Class

High Class

Upper Middle Class

Middle Class

Low Class

Geographic Variables Big Cities

Small Cities Urban Area

Rural Area

Marketing Program Comparative Analysis:

The packaging of Head and Shoulders products consists of tactfully shaped white bottles with elements that resemble the essence of freshness in the mind of viewers. Head and Shoulders has put the pricing of their products competitively through being aware of their competitor Unilever. The approach taken by Head and Shoulders has been by penetrating prices in the past so it can sell high volumes to retrieve a large customer base. They kept their prices reasonable and affordable to retain its existing customers while also attracting new customers.

Their shampoo products are available in different sizes ranging from 3ml sachets available at 3 rupees (£0.033) to 675ml packs available at 370 rupees (£4.03) in India. Head & Shoulders has made their products accessible to a wide range of consumers who can buy in different quantities depending on their needs. During summer, the brand does promotional pricing where it provides a discount on their product range. Also, attracting new customers. This will further the sales which leads to higher revenues. Head and shoulders have launched many creative, informative and aggressive ad campaigns to create and maintain brand visibility in the market. Advertisements were shown in different media such as newspaper, television channels, posters and magazines. In April 2016, the company launched a new campaign with an aim to empower people to be bold, brave and confident. The company made an effort to link those characteristics to their products. In September 2018, The FA (Campaignlive) in the United Kingdom signs with Head & Shoulders as its first official haircare partner, which will involve England players starring in their advertisements (Chapman). The partnership with FA gives a boost to Head & Shoulders' football-focused marketing strategy.

Head and Shoulders has been successful in establishing itself as a reliable brand in the Indian market. With the brand also having to enter other markets and spreading its presence in many countries around the world. Being under Procter & Gamble gives Head and Shoulders the advantage of having a strong distribution network. The products travel from the factory to distributor to whole-seller to retailer and lastly the consumer. Their shampoos and conditioners are available in various stores, supermarkets, local markets and online sites.

4Ps UK India

Product (Packaging) Narrow range of packaging. Wide range of packaging ranging from 3ml sachets to 675ml packs.

Price Accessible to wide range of consumers. Accessible to wide range of consumers, can buy in different quantities.

Promotion Having a partnership with FA, involving England players to advertise their products. Focusing on the football audience. (reference) Working with Bollywood actors & actresses to advertise Head & Shoulder products by television channels.

Place Reliable, Affordable Affordable, Premium Product

Promotion: Acquisition and Retention Strategy Graph

Beauty Care/Shampoo Industry UK India

Customer Acquisition Strategy Endless promotions from television channels, newspaper on anti-dandruff shampoo Promote Head & Shoulders as a beauty product.

Customer Retention Strategy The environmental activities on going by Head & Shoulders retain their brand loyalty and customer loyalty. The effectiveness the product gives has earned brand loyalty and customer loyalty which makes consumers repeatedly buy the shampoo.

Conclusion & Recommendations

Consumers recognise that Head and Shoulders is a brand that is trustworthy and worth its quality. There are macro-environmental issues that needs medium and long-term planning and strategy to benefit the company. The external factors affecting Head & Shoulders in both United Kingdom and India will fluctuate overtime, thus regular observation is a must to ensure the relevance of Head & Shoulder's strategies in local and international markets.

References

Chetty, P. (2018). An overview of the Indian shampoo market. [online] Knowledge Tank. Available at: https://www.projectguru.in/publications/overview-indian-shampoo-market/ [Accessed 19 Nov. 2018].

Market value of shampoo in Great Britain from 2010 to 2017 (in 1, 0. (2018). Shampoo market value in Great Britain 2010-2017 | Statistic. [online] Statista. Available at: https://www.statista.com/statistics/474302/market-value-shampoo-great-britain-uk/ [Accessed 19 Nov. 2018].

Store.mintel.com. (2018). Shampoo & Conditioners in UK (2017) – Market Sizes - Market size data - retail sales value - sales volume. [online] Available at: https://store.mintel.com/shampoo-conditioners-in-uk-2017-market-sizes [Accessed 19 Nov. 2018].

Pg.co.uk. (2018). P&G brands and products. [online] Available at: https://www.pg.co.uk/brands/ [Accessed 19 Nov. 2018].

Campaignlive.co.uk. (2018). FA signs up Head & Shoulders as its first official haircare partner. [online] Available at: https://www.campaignlive.co.uk/article/fa-signs-head-shoulders-its-first-official-haircare-partner/1492163 [Accessed 19 Nov. 2018].

Data.worldbank.org. (2018). United Kingdom | Data. [online] Available at: https://data.worldbank.org/country/united-kingdom [Accessed 19 Nov. 2018].

Headandshoulders.co.in. (2018). Head & Shoulders - the world leaders in dandruff and scalp care. [online] Available at: https://www.headandshoulders.co.in/en-in/about/about-head-and-shoulders [Accessed 19 Nov. 2018].

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