Case Imb419: Nielsen: Market Research for Pantene

Case IMB419: Nielsen: Market Research For Pantene

Marketing Strategy to be recommended to Pantene:

A look at the SWOT analysis and recommendations on the same line for Pantene

Strengths:

1. The product is looked at favorably by the consumers on functionality for the hair, such as “makes hair soft and smooth”, hair body and vitality, “makes hair shiny”, “leaves hair smelling lovely”. This makes the product rank high in terms of benefit to the consumers thereby increasing its consumer perceived value. This value can be communicated and emphasized on in the communication strategies.
2. The product is also seen as technologically advanced and the range is accepted to provide solutions for different hair types albeit is seen as a “specialist hair care brand”. These strengths can be leveraged to introduce new variants for different hair types. Taking a cue from the research on “Shopping Modality-hair type and condition” variants to satisfy the needs of the hair types who are high in terms of switching and looking for a suitable product, can be introduced. The brand’s favorable image as a specialist will help in inducing customers to switch to Pantene and a technologically advanced and benefit product will add to reusing value.
3. The product has the highest market share and brand equity. As the product already has higher brand equity among higher age group and mainstream people and also the brand personality is looked at as confident and elegant, its communication directed to this group along with options such as a bigger SKU will retain the consumers already using the brand and also help switch consumers to Pantene.

Weakness:

1. The Brand is losing its younger customers and also is not able to attract younger customers to try or switch to its product. In line with introducing variants for different hair types the brand can introduce a variant for colored hair and can undertake perceptual communication by hiring youth icons to promote and communicate its message and value.
2. The product is priced higher than its competitors. Existing repeat customers might not take the reduction in price or introduction of various price points for the existing products very favorably. Instead the variants can be introduced at an introductory price, which can help the brand attract customers to try.
3. Consumers feel they are paying more than they are willing to. The brands superior functional benefits can be used to communicate value to the customer.

Opportunities:

1. Inline with the above recommendations the brand can expand its offerings to attract customers from across the band and newer SKU will also help in expanding market share.
2. Though the brand is high in acceptance across all target groups in terms of brand equity, it is still not looked at as a “brand for the entire family”. Introduction of variants and/or a communication strategy focused on communicating the benefit of the (existing) product for the family for all hair types will increase sales and acceptance of bigger SKU.
3. The Brand is an established one in the market and being a market leader in above 95% penetration category reflects good on its collaborators namely distributors and sales force. As a market leader the brand can use these collaborators to further expand the market, bring in newer consumers to the category, mobilize its sales force to use the “ Feet on field” Model to increase visibility on shelves and this can be combined with the above strategies for Product and Promotion to expand market share.

Threats:

1. Primarily from Garnier and Sunsilk , who are using a combination of price, packaging and aggressive promotion to attract younger customers. The brand should not change its packaging as this might not stand well with its mainstream and higher age group consumers. The brand can use the above strategies along with maintain its current stature as a market leader and personality as a confident, elegant brand.
2. From New Entrants.
3. A stagnant image as not being seen as a youthful brand in comparison to competitors can also be a threat given the changing demographics of India.

Changes that can be made in the marketing mix:

Product: AS pointed above newer variants, SKU can be introduced.

Price: The brand should maintain its price to maintain its image. In spite of cheaper options available the brand has been able to maintain its leadership across age groups. This can be attributed to its personality of confident and elegant and a premium price adds to this personality.