Procter and gamble is usually one term paper

Macro Environment, Ajax, Superstore, Oligopoly

Excerpt from Term Paper:

The organization is forever spending considerable amounts on RD to improve its products and advertising to take care of the brands awareness substantial. Shareholders are definitely more satisfied than ever after Procter’s recovery in the late 1990s, early 2000. However they did not inspire much the recovery procedure because it got almost 2 years and they had been expecting an easy recovery process.

Pantene

Presently there are above 100 Pantene products. Pantene shampoo has 25 items in the supermarket shelves to protect all types of client needs. Regarding sales, the rand name has had a “blockbuster” evolution. It was released in the market about 10 years back and it is often reinvented as maintaining a high market share. Pantene, the shampoo or conditioner is actually the leader in this industry, followed by Elseve from L’oreal. Overall, Elseve product line is better positioned in the market, having a greater market share for all hair care products: shampoo, conditioner, 2 in 1, treatment and hair-styling.

A recent research (Mediapost, 2007) shows that Pantene’s market share in the 18-24 age bracket is 23%, in the 25-34 age group can be 25% and the 35-44 age group is definitely 22%. Pantene shampoo is doing very well in most age sectors, including that of 65 and above.

The permanent transfering is based on global market research about consumer behavior. The results pointed out that most women think they have hair problems and they associated frizzy hair health with shine. Pantene Pro-V products are advertising shine because their strong point and all Pantene curly hair products are preoccupied with getting a healthy hair aspect.

SWOT Analysis

Two competing items from the same market had been chosen to evaluate them with Pantene and determine its good points, weakness points, opportunities and dangers: Dove and Elseve.

Solid Points

Weakness points

Pantene is the market leader inside the shampoo marketplace by the sales volume ($ and units). The hair treatment line sales value is over $3bn/year and 2000 containers are sold every single hour;

The product line is very diversified covering all types of hair;

The shampoos happen to be complemented by conditioners, just like diversified;

The buyer has a substantial brand understanding

The product come to its maturity stage, hence the average production costs are decreasing;

PG suppliers will be distributing the items to a large number of supermarkets, meaning the products possess a wide insurance coverage.

PG hasn’t entered the professional hair care market, rather than L’Oreal. For that reason Elseve enjoys more believability than Pantene from the buyer;

Innovation rhythm is scaling down because the item reached the maturity level;

Elseve’s goods line covers both Pantene and Head Shoulders goods. Customers that are attached to Pantene brand could find their shampoo choice narrower because of that.

The item offer pertaining to low profits consumer is quite reduced

Possibilities

Threats

Enter the professional hair-care market, like L’Oreal using its product line L’Oreal Professional;

Improve products intended for low income consumers.

Grocery stores developing their particular brands just like Procter’s, but a substantially lower price;

Difficult advertising competition, which may go the company’s market share.

The 4Ps

Product. Currently, the Pantene product line involves 25 types of shampoo or conditioner, 23 types of moisturizing hair product, 9 types of 2 in 1 goods, 14 types of locks treatment (including creams and masks) and 37 style products (including frizz control serum, solution, hair spray, cream, milk and lotion). The shampoos come in 2 types of bottles: channel (250 ml) and large (400 ml) plus the rest of the goods come in one type just, the standard one.

Price. Pantene is positioned as a medium listed product, just like Dove via Unilever, Elseve from L’Oreal, Nivea from Nivea and Fructis from Garnier. The item doesn’t have specialist line found in hair bouchon, so you cannot find any highly priced product in this Pantene line.

Not long ago, in some regions with low income consumers, such as India, PG resorted to a price cut strategy for Pantene products, going out of Head Shoulders’ prices unmarked. This measure was taken because the selling price for similar products took place and the firm had to match the competition. Yet , soon after the corporation launched a whole new product line to get Pantene, withdrew the old items from the market and continuing to sell by medium cost as prior to the price cut warfare.

Promotion. Pantene is the planet’s best sold hair care merchandise and one of the advertised too. PG organizes annual frizzy hair contest to market this product and participates in a large number of events, such as beauty contests and hair styling competitions. The shampoo’s mottos improved a lot from your 1990s’ “don’t hate me because I am just beautiful. inches The latest one is called “Everybody got their particular something. inches

The new marketplace trends are towards colourful packaging and a wide range of exotic perfumes. PG is thinking to arrange these products in the supermarket shelves simply by category: healthy and balanced look, restorative and cultural.

Place – distribution. On the world wide level, L’Oreal is the leading company in the cosmetics industry. To contend with this huge, PG slowly acquired others that a new significant market share in this industry, such as Wella.

A while ago, PG launched a Pantene shampoo item for Africa women. The organization is facing true challenges when is concentrating on market markets with its products, which is why an element of the production is local. However , the circulation system in global and it is part of upon integrated modern system supposed to provide expense and less time.

The product exists in supermarkets, drugstores, medical stores, kiosks, part stores etc. Basically, any shop that sells beauty products has a Pantene product.

Citation

Colgate-Palmolive corporate and business website:

www.colgate.com

Mediapost (2007), http://publications.mediapost.com

Procter and Wager corporate web page:

www.pg.com

Sasi Group (2006):

http://www.sasi.group.shef.ac.uk/

Unilever corporate Internet site: http://www.unilever.com/

PANTENE STUDY CIRCUMSTANCE

The amounts show a dramatic enhancements made on Eastern Asia, high enhancements made on South-Pacific Asia and substantive change in The european union and Asia.

Even though the maximum growth rates are in poor countries, this simple truth is synonym within increase in the necessity for buyer products.