Benefits that consumers get when using Head & Shoulders Anti Dandruff (H&S) shampoo include eliminating dandruff, leaving consumer with 100% flake free hair, nourished and healthy scalp and also oiliness control over their hair. Apart from that, consumers using H&S shampoo can solve any scalp itchiness associated with dandruff. Besides that, the menthol content in the shampoo gives consumer a cooling effect and refreshing after washing their hair (The Benefits of H&S 2011).
The H&S Anti dandruff shampoo bottle is a white rectangular shaped bottle with a royal blue upper part where the cover is, having a few different colored strips on it depending on the variant of the product. Using attractive white and royal blue as its base packaging and also freshness essence helps create a positive impression for consumers.
The labeling of this product can be found at the back of the bottle. It includes some information for the consumer such as a direction on how to use the shampoo to achieve the best result and also a caution part where consumers are reminded of their safety when using the shampoo. Furthermore, the labeling includes additional information and reminder to consumers that this product helps fight five signs of dandruff which are flakes, itchiness, dryness, oiliness and irritation.
Lastly, a list of ingredients used for the shampoo can be found in the labeling and also information of H&S’s manufacture- Procter and Gamble. H&S shampoo has a unique feature that is it is rich in Pyrithione Zinc (PTZ), the only active ingredient, which is highly effective at fighting and also preventing dandruff symptoms because of its anti-fungal properties. With PTZ, H&S created HydraZinc complex which is found in all H&S products. This formula allows consumers to control and also act on dandruff quickly (Our formula, 2011). Other than that, the ActiZinc formula which adds natural cool menthol to H&S’s menthol shampoo gives consumer a cooling and refreshed effect after washing their hair as mentioned earlier (Refreshing 2011).
Due to H&S shampoo is a convenience product, there are no extra services consumer get from this product but online members of Procter & Gamble are able to enjoy free samples of H&S Anti Dandruff shampoo and also free expert tips and advice of everyday life (Coupons, Samples and Savings, 2011). As for product classification, H&S Anti Dandruff shampoo is a consumer product and normally bought by consumers for personal use.
Consumers, especially those with dandruff symptoms, are willing to spend some time in looking for the availability of this product because of its unique function in treating dandruff. In the anti dandruff shampoo market, H&S has a few competitors such as Clear anti dandruff shampoo and Sunsilk anti dandruff shampoo, which are considered as acceptable substitute products for consumers. Normally brand conscious and loyal customers would spend more time in seeking this product before they turn to other brands or even do not buy at all compared to normal consumers. H&S anti dandruff shampoo comes with 11 varieties in the market based on consumer needs. The product is also divided into regular or menthol content. Each product has 3 SKUs (Stock-Keeping Unit) consisting 80ml, 200ml and 380ml.
The introduction of PTZ formula into the product has differentiated H&S Anti Dandruff from other anti dandruff shampoos. 1.2 Current Pricing
In Malaysia, anti-dandruff shampoo’s market is slightly saturated with a number of sellers of different brands; therefore H&S shampoo is in a monopolistic competition market. This is the case because there are different brands offering products with the same function and almost similar price as H&S. Examples of the competitors are Sunsilk Anti Dandruff shampoo, Pantene Anti Dandruff 2 in 1 shampoo, Clear Anti Dandruff Scalp Oil Control shampoo and also Dove Anti Dandruff shampoo (Shampoo Catalogue 2011).
A change in price of this product would definitely change consumers’ demand but preference is also a factor in this case. An increase in price will lead to a slight decrease in the quantity demanded although there are available substitute products with the same function but some consumers will still prefer H&S. An example on how the product’s price can affect its volume is shown when Procter & Gamble with the intention of increasing sales volume of H&S in India cuts down the products prices (Sharma Shailaja 2011).
The current price of the product is slightly higher than all its competitors in the market, close to around Ringgit Malaysia (RM) 1.00. Consumers of H&S Anti Dandruff shampoo normally based their purchase decision on the quality and feature of this product. It is clear that this product costs higher than its competitors, the reason why consumers choose this product because of its effectiveness in treating dandruff issues and most victims of dandruff symptoms find this product a solution to their problems.
Besides that, the company has successfully linked H&S shampoo’s to anti dandruff through its advertisement. This creates a brand image among consumers that when it comes to dandruff they would refer it to H&S shampoo. This established brand image also plays a part in influencing consumers’ purchasing decision.
Business’s costs are not very important when pricing this product because Procter and Gamble (P&G), a multinational company has 12 different hair care brands under it and also other products (Hair Care Brands 2011), because of P&G’s products diversification, the pricing of H&S is not based on the business’s costs. H&S is using price-quality inference strategy therefore it has a higher price compared to other brands. 1.3 Current Distribution
This product is available for consumers in many locations around Malaysia. In Miri, there are a few locations and shops where this product can be found. At Bintang Plaza, convenience stores such as Guardian and Watsons are selling the product and also hypermarkets such as Giant Hypermarket and Survey Hypermarket. Supermarkets selling H&S Anti Dandruff shampoo are the GK supermarket at Curtin University and also the Pick & Save Mart found at the shop lots in Senadin area, Miri (Supermarkets Directory 2011).
In Malaysia, Procter & Gamble (M) Sdn. Bhd. is the wholesaler of H&S shampoo and the products are imported by the company before distributing to retailers around the country. All the products are imported from Procter & Gamble (Thailand) Ltd. which is the manufacturer for H&S shampoos of Malaysia and the Philippines (Manufacturers 2011).
However, consumers who wish to buy directly from the wholesaler could do so but normally very few would go by this mean because of the availability of the products in most stores and online purchasing services. The factor that influences the wide distribution of this product includes the price of the product which is low and affordable for most consumers and also a convenience product. Apart from that, another characteristic is that the product comes in three bottle sizes ranging from 80ml, 200ml and 380ml. The small product size requires only a little space for display in most stores, which contributes to why it is widely distributed.
1.4 Current Promotion
One of the promotional message for H&S shampoo is “All-day itch relief.
Guaranteed.”. This message is promoted at the product’s official website (Head & Shoulders 2011). The message is to assure and guarantee consumers that the product will solve any itchiness or similar kind of issues on their hair. The other promotional message of the brand is “100% flake-free” that is found in a commercial advertisement on TV.
This message is showed at the last part of the advertisement together with H&S anti dandruff shampoo bottles. The message H&S is trying to bring out is the effectiveness and confidence it has in removing dandruff or flakes on people’s hair. The promotion of this product through advertisement and also internet has the intention of establishing the brand in the market so that consumers realize the existence of such product that comes with special functions.
It is obvious that H&S are using some promotional tools in promoting its product such as advertising through TV, advertising online and also discounts. The purpose of promotion is that the company wants to send a message to consumers that H&S anti dandruff shampoo is a solution for dandruff symptoms patients and people who are fed up with hair itchiness. By doing this, not only the company can establish the brand in the market but also increase sales volume as promotion can be a big tool in ensuring success.
The theme of the current promotions is emphasizing on the effectiveness of H&S anti dandruff in removing dandruffs and solving itchiness on the hair. In all the promotional tools that the company uses, the company has been consistent in shaping messages that reflect the theme of the promotions. Another example of the company’s promotional tool is a slogan “I Never Knew You Had Dandruff” (List of Advertising Slogans 2011).
2.0 Segmentation Theory
2.1 Define and Explain Segmentation
Market segmentation is a strategy that involves dividing a larger market into subsets of consumers with common needs. This can be done through the process of splitting potential customers into different groups, within which customers share similar interests for the goods or services offered in the market (Market Segmentation 2011). Market segmentation strategies can be developed over a wide range of characteristics found among consumers, for example one group may be identified by gender while the other group composes of consumers within a given age group (Malcolm Tatum 2011).
Market segmentation has allowed H&S to benefit from the anti dandruff market in a few ways. The first benefit gained is H&S was able to better understand consumers’ needs in the market (Rupal Jain 2011).
This is shown when H&S differentiate its product and came out with H&S anti dandruff shampoo, obviously wanting to help consumers that have a need in solving dandruff issues after the company found out the problem through market segmentation. The next benefit to the brand from using segmentation strategy is H&S through understanding and focusing on the needs of customers, was able to get ahead of its competitors, in this case anti dandruff. H&S anti dandruff shampoo succeeded in being the market leader by becoming the world’s No.1 brand in anti dandruff shampoo market (About Head and shoulders 2011).
The third benefit from segmentation that the brand enjoyed is consumers now buy their product because they are able to focus their marketing on consumers who are most likely to buy H&S anti dandruff shampoo. On emphasizing on the ability of the product to remove dandruff, refreshing and also prevent itchiness, H&S was able to focus particularly on a group of consumers in the market which leads to a possible higher profit from the sales to these consumers who share the same interest. In 2007, the introduction of PTZ as an active ingredient to the shampoo, which is highly effective in fighting dandruff because of its anti-fungal properties is an effort of H&S to further focus on marketing this product to its segmented market.
The three benefits mentioned reflects that market segmentation is used as a strategy by H&S which has successfully benefited the brand so far. 3.0 Target Market Identification
3.1 Geographic Segmentation
H&S can practice geographic segmentation for its product in Malaysia. The company should extend its product marketing into the state of Johor, the southern state of West Malaysia.
The capital city of Johor is Johor Bahru and this would be the focused city for H&S, with a city size of 1.37million. A density of 7,409 per km2 makes Johor Bahru the second largest urban area in Malaysia (Introduction to Johor Bahru, 2011). The main reason H&S should target the above city mentioned is because in urban areas, consumers have higher purchasing power and are more health conscious compared to consumers from rural areas.
The state of Johor has an average temperate ranging from 73°F to 89°F each year and has high humidity (Monthly averages for Johor Bahru, 2011). The hot and humid weather are causes for dandruff or itchiness for most people. With a high density city, hot and humid weather, Johor Bahru is a potential market to be targeted by H&S that provides refreshing and healthy hair for its users.
3.2 Demographic Segmentation
Demographic factors are popular bases for segmentation analysis. Based on other markets of H&S, the target market should be focused on Generation-Y, the age group of 18-30 years old male Malaysian consumers, with middle or high income level. This target group is a group that is brand conscious and care about the health of their hair. They are willing to spend more on a product as long as the product benefits them or provides a solution to their problem.
The H&S anti dandruff shampoo will be a good product to this targeted group. Not only the product has many benefits to the user, considered expensive among its competitors and fights dandruff or itchiness effectively, H&S anti dandruff shampoo gives users a healthy hair, which is suitable for those with active social life. Besides, the fact that H&S is the No.1 anti dandruff brand in the world makes it attractive to the targeted group which is brand conscious.
In terms of occupation and education level in an urban area, those which will be targeted are most likely professionals, managers, officers, high school graduates, businessmen and also college students. In short, the young adults are going to be the primary target of H&S.
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