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,...
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.
In terms of advertising, attractive images and sounds are used in both the print and television media. Head & Shoulders introduces itself as a premium brand and provides "evidence" in the form of models with beautiful, long, shiny hair, which is dandruff free. In television and film advertising, a contrast is made between "before" and "after," where hair is flaky, or the scalp dry or itchy before using the brand. After washing, the hair is transformed to a shiny and long beauty.
Pricing
The pricing strategy is based upon a price-quality inference strategy. This strategy is based upon the assumption that it is not necessarily best to price a product at the lowest possible in the market. Such a strategy might create the impression that the product is of a low quality. Consumers expect to pay a particular price for high quality products. This ideal is then what drives the pricing strategy for Head & Shoulder, which hit has done effectively.
Conclusion
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.
References
Dasgupta, S. (2011). Head and Shoulders. Retrieved from: http://www.slideshare.net/november2nd.1984/head-shoulders
Gold, G. (2011). Head & Shoulders Launches New Scalp Solution Shampoo Collections. StyleList. Retrieved from:
