Head and shoulder incorporation strategies

Head and Shoulders

Head & Shoulders has proved itself to be a highly valued product by consumers throughout the world. The company has used advertising and brand growth to create an environment where the product's strengths and opportunities are effectively used to secure its position in an increasingly competitive market.

Created by Proctor & Gamble, the product has become iconic of a dandruff shampoo that also serves the purpose of an agent towards beautiful and healthy hair. The product's current success rate and popularity across the world proves the success of the strategy to reach a market that stretches across cultures and genders.

Since its entry into the U.S. market in the 1960s, the Head & Shoulders shampoo brand has grown to be a worldwide icon of a shampoo that does not only fight dandruff, but that also provides the user with shiny, healthy hair. Created by Proctor & Gamble, the product has become iconic of a dandruff shampoo that also serves the purpose of an agent towards beautiful and healthy hair. The product's current success rate and popularity across the world proves the success of the strategy to reach a market that stretches across cultures and genders. The shampoo is currently in the peak of its life cycle, having reached this spot as a result of effective market segmenting, growth strategies, and advertising aims.

Market and Strategy

According to Dasgupta (2011), Head & Shoulders could have focused on market segments derived from factors such as demography, geography, psychography and lifestyle. Because of the nature of the product, being focused on beauty and hair care, the most viable segment was lifestyle, as well as customer preference regardless of their demography or geography. Specifically, the core segments therefore including shiny hair, black hair, anti-dandruff, and low price. The first chosen segment was then anti-dandruff, with an emphasis on the resulting smoothness of hair after using the product.

The target market for the brand at its inception was the higher middle class of customers, who are brand conscious, as well as early adaptors who are brand conscious and c are about the health of their hair.

As a result, the brand has established itself successfully as one of the strongest in the shampoo market. Under the umbrella of Proctor & Gamble, the product's brand strategy has been differentiation by introducing the ZPT element, which was not part of any other anti-dandruff brands at the time. Another strategy has been to base the creation of its product upon consumer needs and requirements. The strongest appeal of the brand has been its mild, caring nature, combined with its function as an anti-dandruff shampoo. A third strength of the brand is its association with the Proctor & Gamble label, which makes it highly estimated in consumer minds. Finally, the company has energized innovative campaigns and promotions to encourage consumer awareness of the brand and its innovative functions.

One of these campaigns has focused on three new scalp collections to address itchiness, dryness and sensitivity (Gold, 2011). The three products would include naturally inspired ingredients, in which the HydraZinc formula would fight flakes, while mental and eucalyptus would soothe itching, with dryness and sensitivity being addressed by almond oil and aloe respectively. The brand has also undergone a package redesign to create a better-looking shape, while the scent has also been updated to meet customer demands.

SWOT Analysis

When considering the product in terms of its strengths, several very strong points come to light. It is an international company, for example, with products that are well-known across the world. Its umbrella company, Proctor & Gamble, is extremely strong in terms of finance. The duration of the brand's existence, as well as the quality and effective pricing of the product has created strong brand loyalty among customers. The product is available in a variety of sizes, creating the ability to cater to more than one requirement; people who buy shampoo for travel purposes would, for example, prefer a smaller bottle. Over its years of existence, the company has also created a large network for distribution, while building consumer trust in the process.

One of the weaknesses of the company is created by its competition with another significant brand, Clinic All Clear, whose creative campaign has put it in a favorable position as compared with Head & Shoulders. In countries like India, the product's popularity is lower in rural areas.

In terms of opportunities, the company has great potential to develop not only into untapped markets, but also in terms of product development and differentiation. Consumer loyalty towards this brand provides a good platform for future product development opportunities. Because of higher consumer awareness, there has also been a higher investment in shampoo research, providing an opportunity for further product development.

Threats include a high level of competition in the shampoo market across the world, and particularly in terms of anti-dandruff formulas. Furthermore, uncertain economic conditions have affected all businesses negatively, including the shampoo market. This creates a financial threat not only to the current product, but also to future brand developments. These conditions have also led to rapid and steep price fluctuations in the raw material market, which in turn could affect the supply chain and pricing of the end product. Because the shampoo market is relatively easy to enter, the threat from new entrants is significant. Current competition in the market also poses a threat.

When comparing the components of the SWOT analysis, it appears that the strengths section is particularly strong, with the weakness section containing the fewest elements. The company's strengths along with its opportunities can then be used in combination to create a growing, strong brand upon which the company's future can thrive. Indeed, the company is making significant progress in all its decision processes to serve customers in such a way that new customers are gained and existing ones retained.

One such strategy is by means of packaging, which has, as mentioned above, undergone a recent transformation.

Packaging and Advertising

As mentioned, the product provides convenience for customers by offering a variety of packaging and size options, from small portion sachets to bottles. The product's base packaging is the white and royal blue combination bottle. The freshness of the scent when opening the bottle or pack also creates a positive impression when consumers use the product for the first time. This promotes customer loyalty.