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INTRODUCTION
Sunsilkis a hair care brand, primarily aimed at women, produced by the Unilevergroup,which is now considered the world's leading company in hair conditioning and the second largest
in shampoo[1]
. Sunsilk is Unilevers leading hair care brand, and ranks as one of the Anglo-Dutchconglomerate's billion dollar brands". Sunsilk shampoos, conditioners and other hair care
products are sold in 69 countries worldwide.
Sunsilk is sold under a variety of different names in markets around the world including Elidor,Seda and Sedal. The brand is strongest in Asia, Latin America and the Middle East and is the
number one hair care brand in India, Brazil, Argentina, Bolivia, Bangladesh, Sri Lanka andThailand
HISTORY
Sunsilk was launched in the UKin 1954, and by 1959 it was available in 18 different
countries worldwide. At the time, Sunsilk had an advantage over other shampoos in the marketas it only needed one application, and so meant washing less natural oils from the hair. Sunsilk
cream shampoo for dry hair was launched in 1956.
In 1958, a new transparentpolythene tube for the liquid shampoo was introduced as analternative large size pack to the bottle. Sunsilk was also available in such tubes.
In 1960, Sunsilk Tonic shampoo was launched, containing skin healing ingredient Allantoin
designed to help keep the scalp free from infection.
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In 1961, Sunsilk Liquid shampoo was re-launched to Sunsilk Beauty, because Liquid in thename, originally used to distinguish the product from powdered shampoos had become
meaningless as the majority of shampoos were now in liquid form.
In 1962, Sunsilk was marketed as a range of shampoos for different hair types.
Sunsilk significantly improved product formula and launched new variants in 1966: the firstmajor shampoo to contain olive oil, which acted as conditioner to make hair soft andmanageable; shampoo for dull hair, which restored hairs natural shine; lemon shampoo for
greasy hair with deep cleansing ingredients.
Sunsilkhair spray was first launched in 1964 to enter an expanding hair-spray market, but in1966 a new product formula was developed which gave hold, even in damp weather whilst still
caring for hair. The hair spray contained a French perfume and could easily be removed bybrushing or shampooing it out.
In 1969, all Sunsilk shampoo was re-packaged in new PVC bottles, which were larger than
traditional glass bottles for the same price.
Sunsilk conditioner was launched in 1971 with three variants for dry, normal and greasy hair. In
1973, Sunsilk launched an aerosol dispensed setting lotion. An economy size shampoo bottlewas introduced for Sunsilk in 1974.
In 1975, Sunsilk became the biggest name in hair care with 1,000,000 packs being sold every
week.
In 1980, the whole Sunsilk range was re-launched, with improved formulations andpackaging
design to bring the brand into the 1980s.
In 1985, Sunsilk styling mousse was launched and 2 years later a conditioning mousse followed.
In 2001, Sunsilk moved into the hair colourant market for Asian-type dark hair, offering a rangeof sevenpermanent colours from natural black to copper with purple, red and gold tints.
In 2003, Sunsilk launched a new range of shampoos and conditioners, which were developed tomeet womens hair needs and reflect the way women think about their hair. The fake institute (a
trademark by Sedal[2]
) "Elida Hair Institute" developed the products in response to marketresearch. Each product contained a unique formulation of ingredients, combining the best from
natural and scientific worlds to help combat common hair problems.
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Market Segmentation:
The demographic or geographic segmentation is not as important as it is based upon the life-
styleas well as customers preferences despite of their demography or geography. The coresegmentswere:
-Dream soft & Sooth
-Stunning Black Shine
-Lusciously Thick & Long
-Anti-Dandruff Solution
Hair Fall Solution Sunsilk is Co-creation formula created by exprts. They came with this idea to
grab the market and to be superior in the market. From 2009 Sunsilk started workingWith a number of professional hair "experts" to develop new and improved products.Each hair
issue"variant links to an "expertwith the relevant specialist hair knowledge. Forexample,
Dr Francesca Fusco, a New York dermatologist, co-created a hairfall variant forthe brand.
Thelineup also includes: Jamal Hammadi for Black Shine, Rita Hazan for VibrantColour,
TeddyCharles for Plumped Up Volume, Thomas Taw for Damage Reconstruction,Ouidad
for Defined Curls and Yuko Yamashita (known for Japanese hair straightening) for PerfectStraight. This is the way they are catering to people who are extremely conscious about the
product they are using and the people who make choice of product on medical terms.
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TARGET MARKET
The main target market of Sunsilk is females between the ages group 16-40 belonging to thelower
and middle income classes. But in their promotional activities, they cover the wholemarket irrespectiveof these classes.Sunsilk target its market on the basis of consumer buying behavior, income level, and
purchasingpower of people. For which quantity of the product can be changed according to the income
andpurchasing power of the consumers as in case of Sunsilk 120ml and 5ml packs are also availableto
target low income group.
STOCK KEEPING UNIT (SKUs)With quality ingredients and innovative formulations, Sunsilk are rich and Sunsilk conditioners are thick and
cream to give you simply beautiful hair with same price for each category.
Packaging and labeling:
-Effective packaging-Provide Effective and efficient information regarding usage of product.
Sachet and bottles both are sleek, stylish and compact.
Attractive packaging provide Manufacturing date, expiry date and price of the product.
Proper cutting edge is available in sachet.
Different colors are used for different variety.Family of Products
Personal & Beauty - Cosmetics, Oral Care, Hair CareHouse & Home Laundry care, Dish Soap,Snacks & CoffeeHealth & Wellness Prescription drugs, Health CareBaby & Family- Pre-care
& Nutrition
Marketing Mix (4Ps)1.PRODUCT
Currently, the range consists of:
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-Yellow Sunsilk
with Bio Proteins from Vegetable Extracts:Normal hair needs wholesome nourishment. New Sunsilk with
Bio Protein extracted from Vegetablemilk has nutrients that deeply penetrate each hair strand, to nourish it leavinghair strong and beautiful.
-Black Sunsilk
with Melanin from Plant Extracts:Dull hair needs a rich black shine. New Sunsilk with Melanin extractedfrom plants serves thispurpose very effectively. It helps in the growth and retention of the black color of hair,
giving it arich black shine
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-Green Sunsilk
with Fruitamins Vitamins from fruit Extracts:Thin and limp hair needs extra body and volume. New sunsilk with Fruitamins has natural extractsfrom fruit that
contains Vitamins. These vitamins help in giving extra body, shine and amazingmanageability to the thinning andlifeless hair.
-Pink Sunsilkwith yoghurt proteins :Dry hair needs wholesome conditioning, extra shine and style. New Sunsilk with yoghurt
proteinsmakes the dry hair full of life. Its especial ingredients moisturize each hair right to its tipsleaving itshiny and beautiful.
-orange sunsilkwith active nutrients from citrus extracts:the advanced formula of orange sunsilk is the result of the latest research.
This shampoo isespecially designed for oily hair type that looks flat and greasy due to the excess of
moisture. Newsunsilk with active ingredients from citrus extracts cleans the excess oil off hair while its
nutrientsdeeply PENETRATE EACH HAIR STRAND TO NOURISH IT CUSTOMER REVIEW OF PRODUCT USAGE
PRICE
S u n s i l k c l a i m s t o p r a c t i c e v a l u e - b a s e d p r i c i n g i n w h i c h t h e c u s t o m e r s
pe r ce pt io n of th eproducts price provides a starting point for developing the marketing mix of
th e pr oduc t. Theresearch department determines this price usually by using focus groups. The price of re 1 and
2for sunsilk shampoo sachets shows how the price also reflects a concern to make the
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purchasemore convenient, since the rupee is denoted in this value.sunsilk is also available in rs 45 and rs 169
price bottles to cater to thedemands keeping in mind the wants of this particular customer segment.the pr im ar y
importance of this value-based pricing is that the product demand will be muchhigher if its price
is in line with the customers perception of its value. one crucial concern for value-based pricing is
strict management of cost in order to be able to make a profit at the value-based pr ice .
PROM
OTION:
-Build top of the line consumers awareness.
-Creating a personality of the brand.
-Besides having these general objectives, the advertising objectives are set avoiding to
theadvertising strategy for each product, e.g. Sunsilk advertising objectives since it was beingre-launched were:
-To increase the usage.
-Conditioning benefits.
-Makes the hair appear clean and shiny.
-Imparts a feeling of freshness-due to fragrance
-Easy to manage, silky, soft hair.
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METHODS ADOPTED TO PROMOTE THE BRAND NAME
OF SUNSILK
-Actresses as spokespersons
-Co-marketing
-Some of these films were made exclusively for retailers like Wal-Mart and
-were telecast in-store
-Sponsor for fashion shows
PLACETo reach as many towns and villages as we can
There are different distributors for different areas. They are carefully selected and their performanceis constantly
evaluated.
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Identifying competitorsPure competition:
Sunsilk exists in the pure competition.Analyzing competitors:
The new Sunsilk shampoo aims to fulfilling the need of its targetmarket by offering a
high quality, assessment of concept in term of acceptability, credibility,and perceived benefitsthat it offers a healthy choice shampoo alternative to target customer.Classes of competitors:
In urban areas,Sunsilk
is acting as a market challenger againstHead & Shoulder
.Sunsilk
has got the advantage of keeping their prices lower thanHead & Shoulder
shampoos butHead & Shoulder
has captured a bigger share of the market due to its intense promotionalactivities.Competitor review:
The major competitor of Sunsilk in rural areas is BIO AMLA and in urban areasSunsilk m a i n l y c u t t h r o a t o f H e a d & S h o u l d e r . T h e m a i n
a d v a n t a g e o f B I O A m l a i s h e r b a l composition, low prices, which attract ruralmarket but in term of quality they are far behindSunsilk shampoo. In urban areas Sunsilk
act ing market challenge wit h Head & Shou lder.Sunsilk has got the advantage of keepingtheir prices lower than P&G but P&G has captured
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a l a r ge mar ke t s ha r e due t o i t s i n t ens e p r omot i ona l ac t i v i t i e s . Gener a l l y ,Cu t e wo r k as a market follower as it doesnt go for any innovative action.
Market share:Sunsilk as a market competitor, t hey are st eadily ga ining market share. At present
market situation, they capture 34% of total market share.Figure: Market ShareMind Share:
to buy a shampoo rational consumers firstly think about Sunsilk due tothe promotional strategies of Sunsilk. So that Sunsilk rapidly increase their mind share.
Figure: Mind Share
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Heart Share:Due to reach product and marketing attributes & features Sunsilks mind sharein total
competitive market is higher than any other brand. Consumer would like tochooseSunsilk as their first choice.
Figure: Heart ShareCompetitive Strategies for Sunsilk
Defining the strategic objective:The
Sunsilk Shampooaims at fulfilling the needs of its target market by offering a highquality,
assessment of the concept in terms of its acceptability, credibility andperceived benefits
,that it offers a healthy choice shampoo alternative to the targeted consumer.
Thetheme of the product shall be anchored around the motto.Expanding the total market:
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Sunsilk is very sensitive to increase its market. Its sometime very challenging for afirm toexpand its total market. Sunsilk basically wishes to increase new customer and more
usage.
New customers
:
Sunsilk trying to attract buyers who are unaware of the product or who areres ist ing it becauselack of such features. Sunsilk using market penetration strategy, newmarket segment
strategy and geographical expansion strategy for searching new consumers.Very attractiveadvertising and other propositional activities perform a vital role in this case.
More usage:Sunsilk recently increase the amount, level and frequency of consumption. Italso
improves packaging and redesigns the product. It offers larger package sizes and makestheproduct more available. They emphasize more on marketing program, which inform
theconsumer about the brand and it frequently develops the product which also spurs new uses.Choosing General Strategy:
1.Flank Attack:
Sunsilk can follow segmental strategy. In market Head & shoulderstargeting mainlyhigh and middle class people but big portion in lower class consumer could not adopt their
produc t. So , Sunslik targeting the lower class, who have lower income and launch newproduct at a lower price.2.
Frontal Attack:
Su nsi lk can laun ch new sha mpoo comb inin g co ndi t ione r , ant i -dandruff, andshinning in a one product as follow as Head & Shoulders.3.Bypass Attack:
Sunsilk can introduce anti-dandruff shampoo and provide an extraconditioner in apackage.
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Introduction
The first of the fourproduct life cycle stages is
the Introduction Stage. Any business that is launching a new product needs to appreciate that thisinitial stage could require significant investment. This isnt to say that spending a lot of money at
this stage will guarantee the products success. Any investment in research and new product
development has to be weighed up against the likely return from the new product, and aneffective marketing plan will need to be developed, in order to give the new product the bestchance of achieving this return.
Challenges of the Introduction Stage
Small or no market: When a new product is launched, there is typically no market for it, or if a
market does exist it is likely to be very small. Naturally this means that sales are going to be lowto start off with. There will be occasions where a great new product or fantastic marketing
campaign will create such a buzz that sales take off straight away, but these are generally specialcases, and it often takes time and effort before most products achieve this kind of momentum
High costs: Very few products are created without some research and development, and oncethey are created, many manufacturers will need to invest in marketing and promotion in order to
achieve the kind of demand that will make their new product a success. Both of these can cost alot of money, and in the case of some markets these costs could run into many millions of
dollars.
Losses, Not Profits: With all the costs of getting a new product to market, most companies willsee negative profits for part of the Initial Stage of the product life cycle, although the amount and
duration of these negative profits does differ from one market to another. Some manufacturerscould start showing a profit quite quickly, while for companies in other sectors it could take
years.
Benefits of the Introduction Stage
Limited competition: If the product is truly original and a business is the first to manufacture
and market it, the lack of direct competition would be a distinct advantage. Being first could helpan organisation to capture a large market share before other companies start launching competing
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products, and in some instances can enable a businesss brand name to become synonymous withthe whole range of products, like Walkman, Biro, Tannoy and Hoover.
High Price: Manufacturers that are launching a new product are often able to charge prices that
are significantly above what will eventually become the average market price. This is because
early adopters are prepared to pay this higher price to get their hands on the latest products, andit allows the company to recoup some of the costs of developing and launching the product. Insome situations however, manufacturers might do the exact opposite and offer relatively low
prices, in order to stimulate the demand.
Product Life Cycle Management
The initial stage of the product life cycle is all about building the demand for the product with
the consumer, and establishing the market for the product. The key emphasis will be onpromoting the new product, as well as making production more cost-effective and developing the
right distribution channels to get the product to market.
Growth
Growth stage is the second ofstages in the product life cycle, and for many manufacturers this is
the key stage for establishing a products position in a market, increasing sales, and improvingprofit margins. This is achieved by the continued development of consumer demand through the
use of marketing and promotional activity, combined with the reduction of manufacturing costs.How soon a product moves from the Introduction stage to the Growth stage, and how rapidly
sales increase, can vary quite a lot from one market to another.
Challenges of the Growth Stage
y Increasing Competition: When a company is the first one to introduce a product into themarket, they have the benefit of little or no competition. However, when the demand for their
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product starts to increase, and the company moves into the Growth phase of the product life
cycle, they are likely to face increased competition as new manufacturers look to benefit from a
new, developing market.
y Lower Prices: During the Introduction stage, companies can very often charge early adopters apremium price for a new product. However, in response to the growing number of competitors
that are likely to enter the market during the Growth phase, manufacturers may have to lower
their prices in order to achieve the desired increase in sales.
y Different Marketing Approach: Marketing campaigns during the Introduction stage tend tobenefit from all the buzz and hype that surrounds the launch of a new product. But once the
product becomes established and is no longer new, a more sophisticated marketing approach
is likely to be needed in order to make the most of the growth potential of this phase.
Benefits of the Growth Stage
y Costs are Reduced: With new product development and marketing, the Introductionstage is usually the most costly phase of a products life cycle. In contrast, the Growth
stage can be the most profitable part of the whole cycle for a manufacturer. As productionincreases to meet demand, manufacturers are able to reduce their costs througheconomies of scale, and established routes to market will also become a lot more
efficient.y Greater Consumer Awareness: During the Growth phase more and more consumers
will become aware of the new product. This means that the size of the market will start toincrease and there will be a greater demand for the product; all of which leads to the
relatively sharp increase in sales that is characteristic of the Growth stage.y Increase in Profits: With lower costs and a significant increase in sales, most
manufacturers will see an increase in profits during the Growth stage, both in terms of theoverall amount of profit they make and the profit margin on each product they sell.
Product Life Cycle Management
The standard Product Life Cycle Curve typically shows that profits are at their highest during theGrowth stage. But in order to try and ensure that a product has as long a life as possible, it is
often necessary for manufacturers to reinvest some of those profits in marketing and promotionalactivity during this stage, to help guarantee continued growth and reduce the threat from the
competition.
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Maturity
After the Introduction and Growth stages, aproduct passes into the Maturity stage. The third of the product life cycle stages can be quite a
challenging time for manufacturers. In the first two stages companies try to establish a marketand then grow sales of their product to achieve as large a share of that market as possible.
However, during the Maturity stage, the primary focus for most companies will be maintainingtheir market share in the face of a number of different challenges.
Challenges of the Maturity Stage
y ales Volumes Peak: After the steady increase in sales during the Growth stage, the marketstarts to become saturated as there are fewer new customers. The majority of the consumers
who are ever going to purchase the product have already done so.
y Decreasing Market Share: Another characteristic of the Maturity stage is the large volume ofmanufacturers who are all competing for a share of the market. With this stage of the product
life cycle often seeing the highest levels of competition, it becomes increasingly challenging for
companies to maintain their market share.y Profits Start toDecrease: While this stage may be when the market as a whole makes the most
profit, it is often the part of the product life cycle where a lot of manufacturers can start to see
their profits decrease. Profits will have to be shared amongst all of the competitors in the
market, and with sales likely to peak during this stage, any manufacturer that loses market
share, and experiences a fall in sales, is likely to see a subsequent fall in profits. This decrease in
profits could be compounded by the falling prices that are often seen when the sheer number of
competitors forces some of them to try attracting more customers by competing on price.
Benefits of the Maturity Stage
y Continued Reduction in Costs: Just as economies of scale in the Growth stage helped toreduce costs, developments in production can lead to more efficient ways to manufacture
high volumes of a particular product, helping to lower costs even further.y Increased Market Share Through Differentiation: While the market may reach
saturation during the Maturity stage, manufacturers might be able to grow their marketshare and increase profits in other ways. Through the use of innovative marketing
campaigns and by offering more diverse product features, companies can actually
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improve their market share through differentiation and there are plenty of product lifecycle examples of businesses being able to achieve this.
Product Life Cycle Management in the Maturity Stage
The Maturity stage of the product life cycle presents manufacturers with a wide range ofchallenges. With sales reaching their peak and the market becoming saturated, it can be very
difficult for companies to maintain their profits, let alone continue trying to increase them,especially in the face of what is usually fairly intense competition. During this stage, it is
organizations that look for innovative ways to make their product more appealing to theconsumer that will maintain, and perhaps even increase their market share.
Decline
The last of the product life cycle stages is theDecline stage, which as you might expect is often the beginning of the end for a product. When
you look at the classicproduct life cycle curve, the Decline stage is very clearly demonstrated bythe fall in both sales and profits. Despite the obvious challenges of this decline, there may still be
opportunities for manufacturers to continue making a profit from their product.
Challenges of the Decline Stage
y Market in Decline: During this final phase of the product life cycle, the market for a product willstart to decline. Consumers will typically stop buying this product in favour of something newer
and better, and theres generally not much a manufacturer will be able to do to prevent this.
y Falling Sales and Profits: As a result of the declining market, sales will start to fall, and the overallprofit that is available to the manufacturers in the market will start to decrease. One way for
companies to slow this fall in sales and profits is to try and increase their market share which,
while challenging enough during the Maturity stage of the cycle, can be even harder when a
market is in decline.
y Product Withdrawal: Ultimately, for a lot of manufacturers it could get to a point where they areno longer making a profit from their product. As there may be no way to reverse this decline,
the only option many business will have is to withdraw their product before it starts to lose
them money.
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Benefits of the Decline Stage
y Cheaper Production: Even during the Decline stage, there may be opportunities for somecompanies to continue selling their products at a profit, if they are able to reduce their costs. By
looking at alternative manufacturing options, using different techniques, or moving production
to another location, a business may be able to extend the profitable life of a product.y Cheaper Markets: For some manufacturers, another way to continue making a profit from a
product during the Decline stage may be to look to new, cheaper markets for sales. In the past,
the profit potential from these markets may not have justified the investment need to enter
them, but companies often see things differently when the only other alternative might be to
withdraw a product altogether.
Product Life Cycle Management
Many products going through the Decline stage of the product life cycle will experience a
shrinking market coupled with falling sales and profits. For some companies it will simply be acase of continuing to manufacture a product as long as it is economically viable, but withdrawing
it as soon as thats not the case. However, depending on the particular markets involved, somecompanies may be able to extend the life of their product and continue making a profit, by
looking at alternative means of production and new, cheaper markets. Even in the Decline stage,a product can still be viable, and the most successful manufacturers are those that focus oneffective product life cycle management, allowing them to make the most from the potential of
each and everyproduct the
companylaunches.
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