Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
Marketing, Supply and Equilibrium: Head and Shoulders by Proctor and Gamble
The Head and Shoulders product of Proctor and Gamble is price inelastic for those who have brand loyalty and will buy the product no matter what the price is. For those who like the product but will go with a cheaper off-brand if the option is available, so long as the off-brand is as effective, will do so causing the product to be price elastic for this group of people. As technology changes over time, the supply is impacted as the means of production make it easier to produce. Likewise, as competitors come into the market, the product can be supplanted by others in the industry that cultivate greater brand loyalty or offer better quality or better price.
Two non-price factors that impact the demand of Head and Shoulders are quality of the product and marketing of the product. Quality (effectiveness of the shampoo to stop dandruff) is the number one reason it is purchased, as it is a specialty shampoo that is used for this explicit purpose. If the quality is high, the demand increases. Marketing is the other factor: if it is marketed well, the quality does not have to be superior to its competitors; it merely has to achieve place within the consumer consciousness. When the consumer sees the product on the shelves, he will recognize it as the one he should be because he has been subject to an extensive marketing campaign (Head and Shoulders: The World Leaders in Dandruff and Scalp Care, 2015).
The industry associated with Head and Shoulders is the health and grooming industry and specifically the dandruff shampoo sector of the market (though Head and Shoulders does offer a variety of shampoos and conditioners that have a broad range of appeal). The market equilibrium associated with this product can be found at the point where the supply and demand curves intersect.
The effect of changes in the supply and demand on the market equilibrium of this product depends on the direction of those changes. If supply increases without demand, the market equilibrium will fall to a lower point on the curve. If demand increases with supply, the point will remain at the same constant level. If demand increases and supply does not, the point will likely rise and the price of the product will increase. If…
References
FAQ. (2015). Head and Shoulders. Retrieved from http://www.headandshoulders.com/en-us/about/faq
Head and Shoulders: World Leaders in Dandruff and Scalp Care. (2015). Head and Shoulders. Retrieved from http://www.headandshoulders.com/en-us/about/about-head-and-shoulders
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
Head and Shoulders: Inputs, Factors, and Decisions Inputs One fixed input for P&G's Head and Shoulders would be the machines and CAD used to create the packaging of the product and the computer-aided-design (CAD) used to generate the packaging features. Both are aspects of the same fixed cost because the machines and the designs used to steer them in production do not change with rises and falls in production (neither more nor
Macroeconomic Policies The current monetary and fiscal policies in the United States are controlled and levered by the Federal Reserve which has recently announced that it will incrementally raise interest rates over the next course of the year by 25 basis points on a quarterly basis. However, with the economic tailspin being demonstrated on a global scale and the topic of negative interest rates being floated on the international level, the
Macroeconomic Variables of Interest to Proctor & Gamble's Head & Shoulders Shampoo Founded in the 1830s by William Procter and James Gamble, Proctor & Gamble (P&G) has become a global leader in the consumer products industry today (P&G history, 2016). One of this company's best-selling and well-known products is its anti-dandruff shampoo, Head and Shoulders. This paper reviews the relevant literature to identify three macroeconomic variables, the consumer price index (CPI),
Proctor & Gamble- Milestone Head & Shoulders remain one of the most celebrated and recognized names in the hair care market for over fifty years. This renowned global brand was launched by Proctor & Gamble (P&G). The company is the leading producer of hair care products across the world, with their Head & Shoulders product securing over 20% market share. Recently, P&G's beauty unit made 30% in net sales and 30%
Management of Stress and Tension Goals-- What do you wish to complete? The answer to attain a postgraduate degree can develop into a very long journey. For me, the contending aspects of time and financial resources constantly appeared to present problems and control the situation. In truth, it would be considerably much easier to provide every single argument present against returning to institution at this time. One can say that numerous considerable