In industry perspective, a company can define its competitors as other companies offering similar products and services to the same customers at similar prices. Competitive positions on existing brands:
Market leader : Rejoice , , Vidal Sassoon, Pantene and Head & Shoulders (P&G is the No. 1 consumer goods company in Hong Kong. It is also the category market leader in Baby care, Shampoo, Conditioner, and Facial Moisturizer.- http://hk-tw.experiencepg.com/home/pg_introduction.html) Market challengers: Asience , Bawang and Clairol Herbal Essences
As shampoo belongs to convenience products, in which customers usually buys frequently, immediately, and with a minimum comparison and buying effort.
The marketers always focus on mass promotion in commercial to build attractiveness and image to the customers as well as putting more resources on R and D to improve product quality.
Products →Instead of cleaning and conditioning purpose, most of companies is committed to helping each and every Chinese woman embrace their smoothness in hair with innovative shampoo on restoring hairs health.
Health care is to repair and revitalize dry, damage hair caused by blowdrying, brushing and washes. →innovative shampoo contains beneficial ingredients such as collagen and ginseng that are good for hair caring. Customers→Young women and household buyers are mostly segmented on shampoo market. Prices→Majority are sold at lower prices, which is economic for household users. Promotion→Advertising a series of commercial story to attract buyers, mostly involve celebrities Place→ Widespread distributed on supermarket and pharmacy
Market leader is the firm with the largest market share and leads the market price changes, product innovations, distribution coverage, and promotion spending.
Market Leader strategies on rejoice ( part1 b company analysis ) Market challengers can challenge the lender and other competitors in an aggressive bid for more market share. Market challenger strategies
2. Frontal Attack
(Matching competitor’s 4Ps)
Product: ASIENCE Shampoo Deep Nourish is specially formulated for Asian hair that is prone to damage from chemical treatment, UV rays, braiding, blow drying and frequent perming and styling (SGBox.com, 2009). Price: Based on competition pricing strategies, Asience sell its product with the same market price of Rejoice to keep competitive advantages. Place: Widespread distributed on supermarket and pharmacy , putting on the same shelves. Promotion:
Mass promotion on the product, like commercial
Provide combination package of shampoo and hair conditioner
Promote environmental-friendly package
Product: Bawang shampoo consist of Chinese herbal medicine like ginseng to help users strengthen the hair quality. Price: Based on competition pricing strategies, Bawang sell its product with the same market price of Rejoice to keep competitive advantages. Place: Widespread distributed on supermarket and pharmacy , putting on the same shelves Promotion:
3. Indirect Attack
(attack on competitor’ s weakness)
In market perspective, competitors are company offering products and services that satisfy the me needs of the same customers at similar prices.