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1
MATRIX AND PANTENE
US Shampoo:
A Tale of Two Brands
2
Successful brands are Meaningful, Different and Salient
Our model of consumer decision making
– is your brand Meaningfully Different?
Predisposition and in-market activation allow us to determine what drives your financial performance and the best way
for you to leverage volume share and/or to justify your price point now and in the future.
3
POWER AND PREMIUM
What is the overall
current equity for
Matrix and Pantene?
4
POWER is a prediction of the brand’s volume share based purely on perception, absent of
activation factors.
We report the Power score as a percentage share because we want to reflect the relationship it has
with Volume Share.
We assess current brand equity using two of our
key predisposition metrics
All the predisposition metrics are based on the same foundations (Meaningful, Different and Salient) combined in
different ways. All are validated to in-market results.
PREMIUM is the ability of a brand to command a price premium relative to the category average,
based purely on perceptions.
We report the Premium score as an index because we want to reflect the relationship it has with
in-market Price Index.
Source: Shopcom panel data merged with equity survey responses. Based on comparing Power and Premium scores to shopping habits of 1600 consumers. Analysis includes 65 brands in 4 categories.
Low = bottom 25%, Medium = middle 50%, High = top 25%
5
We have learned brands that are Meaningfully Different are the ones that generate greater volume share and can
command premiums.
Brands with high Power drive market share and brands
with high Premium can charge more
0.44 0.68 2.2
LOW MEDIUM HIGH
0.93 1.00 1.06
LOW MEDIUM HIGH
VOLUME BOUGHT
(index to average)
PRICE PAID
(index to average)
PREMIUM POWER
6
The strong predisposition that consumers have for Pantene translates into a willingness for consumers to pay more for that
brand. Meanwhile, the Matrix brand may not generate massive volume, but consumers are willing to pay a high price for it.
Pantene is the strongest brand in the market in terms of brand equity
118 83 108 104 101 104 96 111 117 102 105 103 117 83 90 59
16.4
10.6 9.3
8.7
7.0 6.8 6.5 5.5 5.4 4.9 4.8
3.9 3.0 2.6 2.6
1.9
0.0
10.0
20.0
Pantene Pro V
Suave Fructis Clairol Herbal
Essences
Dove Tresemmé Head & Shoulders
Nexxus John Frieda Aussie L'Oreal Neutrogena Matrix Johnson's Thermasilk Store brand
Brands with high Power AND Premium
Brands with high Power OR Premium
Brands with low Power AND Premium
KEY POWER
Are consumers
predisposed to
choose you?
PREMIUM
Are they willing to
pay more for you?
7
Matrix sits in a clear niche, premium position along with its close competitors: John Frieda and Nexxus
A quadrant map of Power and Premium shows the strength of
Pantene even more clearly, leaving its competitors far behind
JOHN FRIEDA MATRIX
AUSSIE
FRUCTIS
CLAIROL HERBAL ESSENCES
THERMASILK
NEXXUS
NEUTROGENA
STORE BRAND
L’OREAL
DOVE TRESEMME
SUAVE
HEAD & SHOULDERS
JOHNSON’S
PANTENE PRO V
POWER PREMIUM BRANDS PREMIUM BRANDS
VALUE BRANDS UNDERPERFORMING BRANDS POWER - Are consumers predisposed to choose you?
PR
EM
IUM
- A
re t
hey
will
ing
to p
ay m
ore
fo
r yo
u?
2
60
110
100
90
80
70
4 6 8 10 12 14
Brands with high Power AND Premium
Brands with high Power OR Premium
Brands with low Power AND Premium
KEY
8
Pantene chooses to build market volume power and strong relationships, rather than trade on the opportunity they have to
charge more. Although expensive Matrix is worth every penny.
By looking at actual price compared with Premium we can
understand whether brands have the opportunity to charge more
JOHN FRIEDA MATRIX
AUSSIE
FRUCTIS
CLAIROL HERBAL ESSENCES
NEXXUS
NEUTROGENA
L’OREAL
SUAVE
HEAD & SHOULDERS
JOHNSON’S
PANTENE PRO V
ACTUAL PRICE INDEX (Shopcom)
PR
EM
IUM
- A
re t
hey
will
ing
to p
ay m
ore
fo
r yo
u?
85
110
105
100
95
90
1.2 0.9 1 1.1
115
TRESEMME
DOVE
9
BEING MEANINGFUL, DIFFERENT AND SALIENT
Where does the
equity for Pantene and
Matrix come from?
10
To understand equity - we need to look at whether brands are
meaningful, different and salient
Being Meaningful, Different and Salient is the foundation for creating a strong brand. Using these foundations we can
combine the measures to understand how predisposed consumers are to a brand.
11
In the Haircare category POWER or Volume is
driven by ‘Meaningful’ and ‘Salient’.
Depending on the objectives for your brand - growing Premium or Potential
- being Meaningful, Different or Salient may become more important
However if brands want to charge a PREMIUM,
they need to be ‘Meaningful’ and ‘Different’.
PREMIUM POWER
14%
47%
38%
48%
50%
3%
Index 100
12
1. First we plot how important Meaningful, Different and Salient are in explaining Power within the
category, as in a pie chart.
Understanding how Meaningful, Different and Salient
your brand is: The Propeller
2. We then add how strong your brand performs on each of Meaningful, Different and Salient.
The numbers are indexed against the category average.
3. We overlay an ‘average’ circle (100) so you can see how your brand is performing compared
with the category.
4. The final red circle in the centre indicates your brand’s Power, the likely share of market of
your brand based purely on predisposition.
Meaningful Different Salient Power
Index 100
13
With its strong Power score, it is unsurprising that Pantene is both ‘Meaningful’ and ‘Salient’. But unlike immediate competitors, it
also manages to be ‘Different’. This above average level of ‘Different’ for Pantene means that although a mass market brand,
consumers would be willing to pay a premium. This puts it in a strong position in comparison with close competitors.
Understanding Meaningful, Different and Salient in the
Haircare market
Meaningful Different Salient Power
114
84
119 8.7 102
104
124 9.3 168
129
152 16.4 165
50
107 10.6
Fructis Suave Herbal Essences
Index 100
14
Looking at the smaller, more niche brands, Matrix and direct competitors are also viewed as being ‘Different’ and ‘Meaningful’
- but are, of course, weak for ‘Salient’. The weak level of ‘Salient’ is causing Matrix to have a low Power score. However these
small, specialist brands are ‘Different’ and ultimately worth more because of their exclusivity.
Understanding Meaningful, Different and Salient in the
Haircare market
168
129
152 16.4 71
145
100
3.0 79
156
99
5.4 70
129
93
5.5
Meaningful Different Salient Power
Nexxus John Frieda Pantene Pro V
15
BRANDDYNAMICS™ DIAGNOSIS AND IN MARKET ACTIVATION
What are the steps to
take to improve?
How can equity for
Pantene and Matrix
be leveraged?
16
Image associations drive the components of equity
Look really good
Care for your hair Functional
Salient
Different
Meaningful
Feel confident
Makes you feel happy Emotional
Make lives better
Values you can connect with Purpose / Ideal
Is the most famous
Unmistakeable look Fame
Feel a connection to others
Values that you identify with Affiliation
Good deals / price discounts
More acceptable price Value
Heard a lot about
Have great advertising Buzz
Like to post or read Community Would follow
Are fun to talk about POWER
We build models for each study which help us identify how image associations group together to drive the components of equity.
17
Using the Image Diagnosis we are able to simulate the best way
forward for brands
+5% +3%
+1%
+3%
+1%
+3%
+2%
• Our simulator is designed to help clients optimise investments for better returns
• It will simulate what might occur in different scenarios for the brand
• It provides a simplified representation of marketing processes used to understand how to predict or control
18
Make your hair look really good
Care for your hair better than others
Are always trying to improve their products
For the US Shampoo data there are 11 independent ‘levers’
that we can pull to influence brand predisposition
Functional
Associations
Make you feel confident
You have a higher opinion of than others
You would be proud to use
You trust more than others
Using them makes you feel happy
You want to be seen using
Understand what is important to you
Are a part of you and who you are
Emotional
Associations
Always offer good deals or price discounts
Are at a more acceptable price than other similar shampoos Value/Price
You have heard a lot about recently
Have great advertising Buzz
Is the most famous brand of shampoo
Easier to find than others
Have an unmistakable look
Fame
You would like to post or read about online
Are fun to talk about
Feel a connection with other users
Like to follow on social networking sites
Listen to you don’t just talk at you
Empower you
Community
Committed to make the world a better place
Are trying to make people’s lives better
Improve people's lives
Have values you can identify or connect with
Would make world worse if they did not exist
Are authentic
Would deserve a second chance if they made a mistake
Purpose/Ideal
Feel a connection to others
Have values you identify with Affiliation
Contain more natural ingredients than others
Are more environmentally friendly than others Environmental
/Natural
Stand for something unique
Offer something different to others
Are different in a good way
Distinctive
Cost more than you are prepared to pay
Are Glamorous brands
Are difficult to find
Only appeal to specific type of people
(Too) Exclusive
Don’t care for hair well enough
Don’t make hair look good enough
Are too cheap to be of an acceptable quality
Contain too many artificial ingredients
Quality Barrier
NOTE: Value and Environmental / Natural make small positive contributions
19
Building Power in Haircare is about balancing emotional and
functional characteristics, with value
Power: Emotional benefits at a good price, built on strong functional foundations.
34%
15%
10%
7% 7%
-6%
6%
-6%
5%
4%
Functional
Emotional
Associations
Value/Price Buzz
Fame
Community
Purpose /
Ideal
Exclusivity
Barrier
Distinctive Quality
Barrier
POWER
Associations that have a negative contribution
Associations that have a positive contribution
20
The mass market Pantene performs well on emotional
and functional values. It is also thought of as ‘famous’
Pantene should continue to appeal to consumers at both an emotional and functional level. Because they are stronger
on functional values they could consider building emotional associations (especially given its importance to Power).
44
-23
64
-30
-13
-16
34
-23
11
-13
-35
Emotion
Value environment
CSR/Affiliation
Buzz
Exclusive
Fame
Quality barrier
Community
Distinctive
Function
Price value
Importance to Power Pantene Pro V
• Make you feel confident
• Higher opinion
• Proud to use
• Trust more
• Make you feel happy
• Want to be seen using
• Understand what is important to you
• A part of who you are
• Make your hair look good
• Care for your hair better
• Always trying to improve their products
• Most famous brand
• Easier to find
• Have an unmistakable look
= Correlation < 0.50
Bi-plot analysis
21
Looking at how the emotional and functional associations group together will help direct recommendations for Pantene.
But which emotional associations to build?
Axis 2 23.7%
Axis 1 48.6%
THERMASILK
NEUTROGENA
TRESEMME
MATRIX L’OREAL
You have a higher opinion of than others
JOHN FRIEDA NEXXUS
Care for hair better than others
You would be proud to use
You would want to be seen using
Make hair look really good
Make you feel confident about yourself
AUSSIE
SUAVE
FRUCTIS
CLAIROL HERBAL ESSENCES
DOVE
HEAD AND SHOULDERS
You trust more than others
Understand what is important to you
Are always trying to improve their products
Using them makes you feel happy
Are part of you and who you are
PANTENE PRO V
22
From the positioning map we see that in the Haircare market some functional benefits are clearly related to more emotional
associations. Pantene has particularly strong Functional associations. They could leverage these in an emotional way to help
build strength in ‘understand what is important’, ‘proud to use’, ‘want to be seen using’ and ‘confidence’.
Leveraging Functional Associations
Always trying to improve their products Understand what is important to you
Care for your hair better than others You would be proud to use
Make hair look really good
You want to be seen using
Make you feel confident about yourself
FUNCTIONAL ASSOCIATIONS EMOTIONAL ASSOCIATIONS
Relate to…
* Value and Environmental / Natural make small positive contributions
23
To justify a Premium for Haircare brands the most important thing
is to avoid perceptions of poor quality...
…strong Emotional and Functional associations are also key, but the offer has to be Distinctive and preferably
supported by some Buzz.
Associations that have a negative contribution
Associations that have a positive contribution
-28%
17%
14%
11% 7%
5%
5%
6%
4%
3%
Functional
Emotional
Associations
Others*
Buzz
Fame
Community
Purpose /
Ideal
Exclusivity
Distinctive
Quality Barrier
PREMIUM
QUALITY BARRIER…
Doesn’t care for hair well enough
Doesn’t make hair look good enough
Is too cheap to be of an
acceptable quality
Contains too many artificial
ingredients
24
In addition to emotional and functional associations, which are important in explaining Premium, they have strong exclusivity
associations.
For Matrix, we need to understand what helps drive
their strong Premium score
Negative Contribution
CSR/AFFILIATION
HOT HEATING UP
100
MATRIX
IMP
OR
TA
NC
E T
O P
RE
MIU
M
-20 80 60 40 20 0
25
5
20
15
10
DISTINCTIVE
BUZZ
COMMUNITY
FAME
VALUE ENVIRONMENT
FUNCTION
EMOTION
PRICE VALUE
QUALITY BARRIER
EXCLUSIVE
Positive Contribution
They are not considered to be
particularly ‘distinctive’ and
this is important for Premium.
Something they could try to
build in the future.
25
Matrix makes consumers feel ‘proud’ and they ‘want to be
seen using’ it. It’s also glamorous and expensive
These are key strengths for Matrix to leverage
9
12
13
4
4
12
2
3
56
51
25
22
Make you feel confident
You have a higher opinion of than others
You would be proud to use
You trust more than others
Using them makes you feel happy
Want to be seen using
Understand what is important to you
Part of you and who you are
Cost more
Only appeals to specific people
Glamorous
Difficult to find
EMOTION EXCLUSIVE
+28 +102
26
Understanding how Volume flows between the brands and what happens in-market enables us to link brand predisposition to
volume share and completes the pieces of the consumer decision making model
Understanding In-market Barriers and Facilitators
Bridging the gap between intent and action
27
The framework allows us to assess inherent brand strength but to also break out volume opportunity and risk.
The Volume Flow analysis is anchored in the linkage between
Predisposition and Volume
% of market which is FULFILLED for you
% of market which is
CONVERTED to you at
the point of purchase
% of market which is
DIVERTED away from you
% of market who is
buying you
% of market who is
predisposed to choosing you
In-Survey
Volume
POWER
28
Volume Flow analysis
Around 40% of Pantene’s volume share is not due to its strong levels of equity. It is thanks to the sheer in-store
presence of a brand of its size. More than half of Matrix’s equity is not translated into sales = a huge opportunity for
them to leverage on the strength of their brand in store.
Predisposition/ equity that
doesn’t translate to Volume Diverted
Volume not due to
predisposition/ equity Converted
Volume due to
predisposition/ equity Fulfilled
8.0%
11.4%
5.5%
1.1%
1.3%
1.8%
Total
Volume
19.4%
Total
Volume
2.4%
29
Pantene leverages its strong distribution in-store using deals and packaging to encourage those who have no predisposition for
the brand to choose them.
In Market Barriers and Facilitators: Pantene
Volume due to predisposition/ equity
Volume not due to predisposition/ equity
Predisposition/ equity that doesn’t translate to Volume Diverted
Converted
Fulfilled
Diverted
Converted
Fulfilled
0.6
Unmistakeable
look
(packaging)
Deals and
promo
Competitors
cost too much
Good price Power Share Total share of
volume
Competitors
hard to find
Easy to find
0.8 0.3 0.0
0.2
19.4 16.9
8.0%
11.4%
5.5%
-0.1
30
Matrix does not activate well in-store. It should consider improving its packaging to leverage its ‘exclusive’ associations with the
aim of becoming unique, easy to find and unmistakeable.
In Market Barriers and Facilitators: Matrix
Volume due to predisposition/ equity
Volume not due to predisposition/ equity
Predisposition/ equity that doesn’t translate to Volume Diverted
Converted
Fulfilled
Diverted
Converted
Fulfilled
-0.1
Unmistakeable
look
(packaging)
Deals and
promo
Competitors
cost too much
Good price Power Share Total share of
volume
Competitors
hard to find
Easy to find
-0.2 -0.1
0.0
-0.1
19.4 2.9
1.3%
1.1%
1.8%
0.0
2.4
31
POTENTIAL
What is the future
potential for
Matrix and Pantene?
Source: Millward Brown’s validation dataset, including 350 brands from diverse categories (CPGs and non CPGs). Lose/Gain 0.2 points of market share.
Low = bottom 25%, Medium = middle 50%, High = top 25%
32
Consumers are predisposed to stick with the brand in the future, or try it.
This will prime the brand for future value share growth.
We assess future brand equity using our final
predisposition metric: Potential
LOW MEDIUM HIGH LOW MEDIUM HIGH
AVERAGE VALUE SHARE CHANGE
(%)
POTENTIAL
% Brands Gaining Share
vs.
% Losing Share
-4.9 -1.4
+6.9
19%
33%
47%
52%
37%
25%
% brands
gaining
share
% brands
losing
share
33
As a result of its inherent brand strength Pantene is likely to hold its value market share in the future. Matrix; a strong little brand
that’s going place is also primed to grow.
Plotting Potential against Power allows us to sort brands
into simple typologies
JOHN FRIEDA
MATRIX
AUSSIE
FRUCTIS
CLAIROL HERBAL ESSENCES
THERMASILK NEXXUS
NEUTROGENA
STORE BRAND L’OREAL DOVE
TRESEMME
SUAVE HEAD & SHOULDERS
JOHNSON’S
PANTENE PRO V
HOT HEATING UP
COOLING OFF COLD POWER - Are consumers predisposed to choose you?
PO
TE
NT
IAL
- Is
yo
ur
bra
nd
set
to
gro
w in
th
e fu
ture
?
34
With a strong Power and Premium score, Pantene has great predisposition which
translates into a willingness for consumers to buy more and pay more for the brand.
Understanding Pantene brand equity
Pantene has a broad base of functional associations and could use these to help
build stronger emotional associations for the brand.
Pantene has good in-store presence. Which means it gains a significant amount of
sales not due to equity (rather good distribution). Pantene leverages this distribution
using deals and packaging.
Pantene is such a strong brand because it is thought of as being ‘Meaningful’,
‘Different’ – something that is not a strength for its near competitors - and Salient’
35
Recommendations for Pantene
Pantene is a very strong brand with a range of emotional and functional strengths.
These associations translate into Pantene being Meaningful, Different and Salient.
They should use these strengths to continue to create a ‘buzz’ around the brand and
be on the look out for emerging trends.
Pantene should leverage their functional associations in an emotional way to help
build strength in ‘understand what is important’, ‘proud to use’, ‘want to be seen
using’ and ‘confidence’.
Pantene does not translate all of its strong equity into sales. It could leverage its
current in-store strengths (packaging and deals) even further to turn this ‘opportunity’
into volume.
36
Understanding Matrix brand equity
Because Matrix is ‘Meaningful’ and ‘Different’, consumers think of it as being worth
more – despite the fact that amongst the total sample, it has low levels of ‘Power’.
Matrix does not activate well in-store and more than half of Matrix’s equity is not
translated into sales.
Matrix is thought of being ‘worth more’ because of associations with ‘exclusivity’.
The brand makes consumers feel ‘proud’ and they ‘want to be seen using it’.
37
Recommendations for Matrix
Given Matrix’s position in the market, it should consider growing levels of ‘unique’
– standing for something unique or being different in a good way. We know that this
could help them grow levels of ‘Premium’ which will help overcome the price barrier
and ultimately grow share.
There is a huge opportunity for Matrix to leverage on the strength of their brand in
store. It should consider improving its packaging to leverage its ‘exclusive’
associations with the aim of becoming unique, easy to find and unmistakeable.
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