Nielsen Pantene_Case Analysis

Nielsen: Market Research for Pantene Case Analysis Report Introduction NIELSEN: MARKET RESEARCH FOR PANTENE

In 2003, Garnier was launched in the United States, and it gained 5.1% market share within a year. During the same period, the share of Pantene, the market leader declined from 22.5% to 20%. This was a steep fall, which worried Procter & Gamble (P&G), the owner of Pantene brand. P&G want to figure out what happened and what they should do to turn around from that situation. And P&G set a long-term growth target of five share points. So P&G hired Nielsen to conduct market research to identify the cause of decline and suggest a marketing strategy to achieve that aggressive goal. The Nielsen is a global market research company. Nielsen provided solutions to clients marketing problems with its single-minded focus on consumers. While certain research needs were common across businesses, others were idiosyncratic depending upon the strategic goals of the business. They customized a research for Pantene. They applied a comprehensive solutions, called “Winning Brands,” which analyzed the brand from the varies perspectives. It included category issues; brand challenges equity, loyalty, personality; marketing mix price, promotion, distribution; and consumer behavior, also combined with “Retail Measurement” and “Consumer Panel”. This case includes a lot of data, 16 Figures and 7 Tables. Those data showed a multiple way to achieve the 5-points market share goal. According to the data. I found about two main perspectives about the solutions about how to get the goal of five share points.

Decision Makers Executives of Pantene brand Departments Executives of Proctor & Gamble Marketing Departments Nielsen Company

Problem Statement Pantene has set a long-term growth goal of five share points after losing 2.5 points when Garnier was launched to the United States shampoo market in 2003. And Garnier gained 5.1% in that year. Pantene needs apply some actions to stem the decline and accomplish the goal.

Alternatives Identity Data Analysis Through our analysis of the winning brands form all aspects; we found that the brand equity is the first thing should be considered in marketing. According to the Brand equity model. We found that the awareness and the associations are the most important angel in Brand Equity. In Figure 3 and Figure 4, we found the key drivers are the awareness and the associations in the Shampoo Brand Equity. Further on, the associations includes following four categories: health/shiny, premium quality, and family. Out of these, health/shiny was the most important followed by premium quality and emotive appeal. Because the decline of Pantene’s market share is mainly due to the rising of Garnier’s market share. So we’re going to mainly contrast Pantene with Garnier in the following analysis. In figure 6, we found the Pantene is dominating in in several importance aspects, It also explains why Pantene can dominate the market. By comparing with the Pantene and Garnier, we found that the index of Garnier and Pantene is very close in the following aspects: Range of hair care products; Cleans gently cares for colored hair; Makes you feel pampered. For the “Has attractive packaging” and the “Uses natural ingredients”, the Index is quite different. The Pantene falls behind the Garnier.

In figure 7, we found the brand equity of the Pantene is far greater than the other brands, that is to say Pantene has the strong competitiveness. But it also could be the answer to the decline of the market share question: Pantene meet the status quo; relax vigilance resulting in a decline in market share.

According to the Table 1 and Table 2, we found the customers who purchase Pantene has a wide range of age distribution, especially above 21 years old, they are dominating the mainstream and conformist customer. The Garnier mainly concentrated in the 18-30 age group, especially the age of 18 to 20. Only three years can

have a large number of customers, this age group is a huge potential market of shampoo. Garnier caught the young customers and constantly increase their market share.

In the Figure 8, we found that Garnier had a very good potential in development, high brand equity, but it didn't has the reasonable market share compared with other brands. But Pantene’s market share is reasonable under its brand equity. That means Pantene’s market share can be threaten by the Wella, Garnier and Sunsilk. But we noticed that VO5 had a high market share with low brand equity. We can gain the market share by striking the VO5. In Figure 10, we found that Garnier’s brand personality is very outstanding, partly, Garnier is the symbol of Fun, Young, Feminine, Fashionable, Attractive, Modern, and Trendsetter. But the Pantene just represents the elegant and confident. The brand personality is not very strong as Garnier. Packaging is an important factor which affecting brand marketing. According to the Figure 12, Garnier’s packaging is more modern than the others; the shape of bottle is also very attractive. But Pantene’s packaging is more common, adopting the opaque bottle. But for our Chinese people, we prefer the Pantene’s packaging and Clairol’s packaging. According to the Switch triggers, we can find if you shopping in the store, the new brand, promotion and the packaging are the key factors in shampoo market. Advertising is also a very important factor, especially for the role of the daughter; they will affect the decision of the family. So I think the advertising should focus on the young people. In figure 13,we found that those who have special hair type are change brand frequently. For example, those people who have colored hair will try a variety of shampoo, and then choose the most suitable one; perhaps, the selection action will never end. So we can increase the variety of the products, to capture some royal customers. In the table 6, we found that the Garnier has: 1. The low price. The customers will buy their products because of the cheaper price. 2. Attractive packaging. 3. Effective advertising. Garnier’s advertisements are very effective, can greatly promote the product sales. Pantene must according to the Garnier’s advantages, to analyze their own shortcomings, make up for their shortage.

In Figure 15, we noticed that the price of Pantene’s product is higher than the price customers are willing to pay. Pantene must adjust their pricing strategies, to adjust their product’s price to a reasonable price. Garnier adopt the low pricing strategies, their price have more advantages than the Pantene. And, more remarkable, another P&G brand: Clairol is also having the high pricing problem. In Figure 16 we found that the three product of P&G are both not promotion driven products. So they must change its promotion strategy. Personally, Palmolive and VO5 are promotion driven products, because they have already became the cheaper shampoo, the price will attract low-income people. And the two goods are also put on the for whole Family label as their product personality, that will contribute to the good market share. In the last table, we found that Even though the Pantene’s promotional stuff is rated as being effective, but the effective maybe based on the single product. Because we noticed that the brand cardio index is 0, that is to say Pantene has not introduced new products in last two years. That may be a strategy of Pantene, to keep their royal customers. But I think it’s time to launch some new products and compete with other brands.

Alternatives A1:Stick With Yourself，but do some changes. A2: Create a new Brand or Sub-brand. A3: Acquisition or Turn to another target

Alternatives Analysis and Action A1:Stick with yourself，but do some changes. Pantene always gives us the senses with reliable, healthy, shiny, high quality. These symbols always come with Pantene, we called it brand personality. According to the analysis and study of Nielsen, we can be targeted to do some changes on Pantene, but we don't destroy the original image of the Pantene. We adjust the product price, slightly lower the price. Increasing investment in advertising, the advertisement should add some attractive scenes. Slightly change the previous strategy, emphasize that if you use the Pantene’s shampoo, you will be charming and attractive. Add some natural ingredients in the products, and show the natural ingredients in the advertisement, that would attract the nature lovers. Introduce the new products, target on different hair, different purposes, and different ages to develop different series products. Use some fresh elements on packaging, change the shape of bottle.

A2: Create a new Brand or Sub-brand.

Create a new brand. This new brand can be based on Pantene, becoming a Pantene’s sub-brand, and also can be the P&G’s independent brand. If it’s a sub-brand of Pantene, it can take advantages of the Pantene’s great brand effect，quickly open the market. This new brand can take a brand-new packaging. This new product, not only focus on the healthy and shiny, but also specifically for younger customers, especially for 18 to 21. This new brand is aiming at compete with Garnier, gain the market share. If it’s a P&G’s independent brand. Although not attached Pantene's brand effect, but it has the bigger development space. Can be bolder to develop a new product according to the needs of the market, according to the customer taste design packaging, adding different fragrance. Also can take advantage of the new brand switch trigger to open the market. This new brand is aiming at disturb the Garnier’s development. To prevent the further development of Garnier by suppress Garnier.

A3: Acquisition or Turn to another target There are many brands in the market. Why we just focus on the Garnier? We can pick another brand. There are two ways to gain the market share. The best way is acquisition; the other way is creating a new brand that focus on the low price and family market . According to the analysis and study of Nielsen, we found that the VO5 had a high market share but with a low brand equity. We can buy VO5, and enhance the brand equity of VO5. This acquisition can make up the shortcomings of Pantene, but also keep the original brand personality of Pantene, prevent the original customers losing. If create a new brand, we should analysis the VO5 ’s marketing strategy (if the VO5 has a low brand equity but with high market share, it must benefit from the good marketing strategy). This new brand should aim at the low price market, also can put on the for whole Family label, to capture the low price market from other brands.

Action (recommendation) Create a new Sub-brand of Pantene. According to the Garnier’s personality and marteting direction, to tailor a new sub-brand. Using this sub-brand to compete with Garnier. Many shampoo company already had some series products. Pantene can also create their own sub-brand.

This sub-brand will have:  A brand-new packaging: Totally different from Pantene. By adopting the clear bottle with the transparent colorless shampoo, or black purple grind arenaceous packaging.The new packaging will attract customers, especially the young customers to buy their products. Of course, we need to do some surveys first, to figure out what kind of packaging is more attractive.

 Young elements in advertisement: Highlight the concept of young; it is aimed at young customers to design advertisement. Highlight the fashion and charm, personality those elements linked to young people.

 According to the market pricing of Garnier to set the price of the new product, the best pricing strategy is cheaper than the Garnier. It can enhance the effects, gain the market share. People tend to buy those inexpensive products also with good quality.

 Natural ingredients: add some natural elements, such as honey, aloe essence and other natural extract. The Naturel ingredients will attract the nature lovers to buy their product.

 Fragrance: it is very important for the young customers. We can accord the research of perfume market, to figure out what kind of taste does the young people like. According to the survey results, create some different fragrance of products.