Marketing Simulator data.

1. the effectiveness co.
ethoslondon.com

2. Marketing Effectiveness Simulation Game
1. You are the new marketing team for Dave Shampoo with a £10m marketing budget (plus £2m to invest in NPD).
2. In this deck you will find data/insight to review
3. Based on your analysis (as well as your own marketing knowledge), you must make a series of marketing strategy
decisions for your 3 year marketing plan. These are submitted via the online questionnaire.
4. Read each question carefully. For each strategic decision you will have a number of options. For most decisions
you must allocate your budget as a percentage across the options. The total allocation must add up to 100%.
You are free to ignore some options (i.e. 0% allocation).
5. For each question, based on the allocation of your budget, you will receive an ROI. You will also be asked to
provide a reasoning for your answer. There are additional ROI multipliers available for providing good reasoning.
6. Complete and submit the questionnaire.
7. Tomorrow we will review the questions, the data and the key marketing science.
8. The winning team is the one with the highest overall ROI.
2

3. Insight Deck
3

4. 4 Background
Dave Shampoo has a somewhat topsy-turvy history. Dave (to this day his birthplace and surname remains a mystery) gained a
reputation as “hairdresser to the stars” during the late 1940s and was renowned for making his clients feel totally at ease, irrespective of
the subsequent haircut. Dave opened a series of salons in upmarket locations and subsequently Dave Shampoo was launched in 1948
through his salons and upmarket outlets, gaining a fervent following amongst those ‘in the know’.
Driven by the simple truth “great hair means great confidence”, the brand continued to grow through the following decades, becoming
increasingly popular across the country. In the early 1980s it became brand leader and at the height of its power was purchased by the
consumer good giant G&P. Unfortunately the purchase also coincided with an economic downturn and rather than continuing to invest
in the brand, G&P took the decision to view the brand as a ‘cash-cow’. This lack of investment has seen the stature of the brand
diminish, allowing other newer brands to overtake Dave over the subsequent decades.
However, in the last year a new management team at G&P have undertaken a thorough audit of their portfolio and identified Dave as a
sleeping giant. As G&P’s CEO stated in a recent interview “Dave was built on the values that defined it’s founder – independence, self-
reliance & confidence. A brand with this heritage deserves to be number 1”.
You are part of the new marketing team brought in with the objective of reinstating Dave to its former glory. There are rich rewards for
success and inevitable humiliation for failure. Good luck.

5. 5
Shampoo Brands Market share % Annual market penetration
Purchase frequency
(average)
Shoulders & Heads
11 13 2.3
Panteno 9 11 2.3
Herbal Nub 5 9 1.8
L’Oreal Elvivo 5 8 1.9
Dave 5 8 1.6
Moonsilk 5 6 1.7
Share/penetration/frequency

6. 6
Shampoo Brands Market share New innovations
Shoulders & Heads
Stable Introduced a new ‘best ever’ formulation
Panteno Stable None
Herbal Nub Signs of growth
Introduced a new natural variant
Introduced a new “sports range”
L’Oreal Elvivo Signs of decline
Introduced a new formulation
New advertising designed to appeal to younger audience
Dave Steady None
Moonsilk Steady
Introduced a new “sports range”
New more modern advertising
Market context

7. Household Penetration
12.0
11.0
7.8
8.8
8.0
7.0
13.0
11.0
9.0
8.0 8.0
6.0
0.00
5.00
10.00
15.00
Shoulders & Head Panetno Herbal Nub L'Oreal Elvivo Dave Moonsilk
Last year This year
7

8. 8
66%
21%
7%
3%
2%
1% 1%
62%
21%
8%
4%
2% 1% 2%
57%
20%
9%
4%
3%
2%
5%
$0.00 to < $10.00 $10.00 to < $15.00 £15.00 to < $20.00 $20.00 to < $25.00 $25.00 to < $30.00 $30.00 to < $35.00 $35.00 or More
Shoulders & Head Panteno Herbal Nub L'Oreal Elvivo Dave Moonsilk
Buy-rate distribution
(for previous year)

9. 9
Switchers
46%
Loyals
38%
One-time
buyers
16%
Switchers
74%
Loyals
18%
One-time
buyers
8%
Shoulders & Head Dave
Loyals: People who bought the brand for the majority of their shampoo purchasing
Switchers: People who bought the brand at least once

10. 10
Agree
68%
Disagree
32%
Shoulders & Head switchers rating of S&H Dave switchers rating of Dave
My preferred Brand
Agree
35%
Disagree
65%

11. 11
Heavy
20%
Middle
40%
Lightest
40%
42%
47% 47%
48%
46%
45%
43%
0.375
0.5
Category Shoulders &
Head
Pateno Herbal Nub L'Oreal Elvivo Dave Moonsilk
Volume of sales accounted for
by top 20% of users

12. 12
Perceptions of “this is a quality product”
95
82
70
80
0
25
50
75
100
Shoulders & Head switchers Dave switchers
Shoulders & Head Dave

13. 13
Buyers of brand
% of buyers who also bought
Shoulders &
Heads
Panteno Herbal Nub L’Aureal Elvivo Dave Moonsilk
Shoulders & Heads - 10 5 6 5 5
Panteno 11 - 5 5 5 4
Herbal Nub 12 9 - 5 6 8
L’Aureal Elvivo 11 11 6 - 4 5
Dave 10 9 4 4 - 4
Moonsilk 10 9 9 5 5 -
Buying behaviour

14. 14
Demographic Profile
Total % Shoulders & Heads Pateno Herbal E Elvive Dove Sunsilk
Age 19-24 7 6 10 6 6 6 6
25-34 17 18 18 18 18 18 18
25-44 18 18 18 18 18 18 18
45-55 21 23 21 23 23 23 23
56-64 16 14 13 14 14 14 14
65+ 17 17 16 17 17 17 17
Male
40 45 33 45 45 45 45
Female
60 55 77 55 55 55 55
Pre-family 13 13 18 15 15 15 15
Family 47 53 49 49 49 49 49
Empty nesters
20 17 16 18 18 18 18
Retired
15 14 12 14 14 14 14
Age of head of HH 100 100 100 100 100 100 100
Millennials (up to 34) 29 28 35 28 35 28 28
Gen X (35-54)
39 40 40 40 37 40 40
Gen S (55+) 33 32 32 32 29 32 32
ABC1 57 60 60 60 60 60 60
C2DE 43 41 41 41 41 41 41

15. 15
Brand Profile
Brand Perception
Shoulders &
Head
Panteno Herbal Nub L’Oreal Elvivo Dave Moonsilk
Is a brand I trust 20 21 15 14 15 13
Worth paying more for 19 20 14 15 15 12
Makes my hair look beautiful 18 18 14 20 14 13
Looks after my hair 25 17 14 13 13 10
Makes cleaning my hair easy 17 16 13 12 12 9
Smells great 18 25 13 13 12 9
Makes me feel confident 18 18 14 13 13 8
Is good for damaged hair 26 17 15 13 13 8
Looks after all types of hair 17 16 12 12 11 7
Are Hair Experts 25 16 12 16 13 9
Has attractive packaging 16 15 11 11 9 9
Have a convenient pack to use 15 20 9 8 9 11
Are good for the environment 6 5 15 3 8 8
Are made of natural ingredients 6 4 15 3 8 8
Driversrankedinorderofimportance

16. 16 Brand Power Index
Meaningful Different Salient Power
Shoulders & Head Panteno Herbal Nub L"Oreal Elvivo Dave
41 124 81
64
Moonsilk
7880
92
90 120
92
88 124
77
70 76
60
70
75 65
58
65
64 65
58

17. 17 Penetration by Generation
2%
26% 26%
33%
13%
2%
25%
27%
34%
12%
1%
26%
25%
35%
13%
2%
29%
26%
32%
11%
1%
23% 23%
38%
15%
2%
24%
25%
35%
14%
3%
29%
25%
32%
11%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Gen Z Millennials Gen X Boomers Seniors
Households Shoulders & Heads Panteno Herbal Nub L'Oreal Elvivo Dave Moonsilk

18. 18 Retail e-commerce sales growth
15%
16%
15%
13%
11%
8%
6%
This year -2 This year -1 This year This year +1 This year +2 This year +3 This year +4
E-commerce sales represent 16% of total sales

19. 19 Dave sales
20%
80%
E-commerce Bricks & Mortar

20. 20 Sales by Channel
Market
Share (%)
Shoulders &
Heads Sales (%)
Panteno Sales
(%)
Herbal Nub Sales
(%)
L’Oreal Elvivo
Sales (%)
Dave Sales (%)
Moonsilk Sales
(%)
1. Brickmart 20 22 21 21 15 10 17
2. Croger Co. 12 12 13 11 20 10 13
3. Nile 9 9 8 7 0 0 0
4. Costcow 8 9 9 9 3 9 6
5. House Depot 7 6 8 0 12 9 7
6. Walblues 7 7 6 7 11 10 7
7. LOL Health 6 6 6 5 8 8 0
8. Bullseye 5 4 3 6 6 0 6
9. Beholds 5 5 6 9 6 8 11
10. Franksons 5 5 2 7 0 5 5
11. Best Sell 4 4 5 6 7 8 2
12. Nublix 4 4 5 4 7 7 7
13. XFD Companies 3 3 3 0 5 5 5
14. Maldi 3 3 4 5 0 5 6
15. Stacey’s 2 1 1 3 0 6 8

21. Key trends in Haircare
•58% of shoppers say they would choose a brand with “natural
ingredients”
•60% of shoppers say they want the brands they buy to have a
meaningful role in the world
•48% of shoppers say they would choose a brand with local provenance
over a global brand
•65% of consumers say the “biodegradable properties” of their haircare
products are of key importance
21
Source: Canter Research

22. Segmentation – executive summary
•Recommendation to focus on the “progressive” segment
•Segment over-indexes on environmental & health concerns
•Span different age-groups but over-index on millennials
•Make up 31% of households, but 54% of spend on Dave
22
Source: Canter Research

23. Equity Review – executive summary
•Haircare category undergoing some significant changes, with growing
importance of “naturals” segment
•Dave needs to stand-out in a ever more competitive category and
improve equity
•Importance of becoming more “meaningful” in eyes of consumers
•Those who trust Dave more are more loyal. Drive loyalty through
increasing trust in the brand
23
Source: Canter Research

24. 24 Regional Distribution
11.6 13 12.3 12 10.4 10.6 10.5
23.2
24.5
23.2 24.5
21.1 21.3 23.5
9.6
10.8
10.4 9.8
9 7.6
9.7
16.4
15.9
16.5 16.5
17.1 17.1
16.6
24.6
22.5
23.4 23.7
26.7 26.4
25.4
5.2 4.2 5.1 4.7
6 6.5
5.1
9.4 9.1 9.1 8.8 9.7 10.5 9.2
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Category Shoulders & Head Panteno Herbal Nub L'Oreal Elvivo Dave Moonsilk
Metropolis East Coast East Central West Central West Coast North South

25. 25 Brand Awareness
38
32
25
15
13
8
94 93
95
90
85
80
Shoulders & Head Panteno Herbal Nub L'Oreal Elvivo Dave Moonsilk
Total Unaided Awareness Total Aided Awareness

26. 26 Unprompted/Prompted Awareness by Region
Shoulders &
Heads (%)
Panteno (%) Herbal Nub (%)
L’Oreal Elvivo
(%)
Dave (%) Moonsilk (%)
Metropolis 38/95 33/95 27/93 11/91 13/86 7/78
East Coast 35/93 36/95 26/94 13/92 14/87 7/78
East Central 36/93 32/92 24/94 15/88 15/85 7/77
West Central 40/95 33/93 27/95 16/89 14/84 8/81
West Coast 41/96 38/95 23/95 16/90 12/85 9/81
North 36/95 29/90 23/96 17/87 13/86 8/79
South 38/94 35/94 23/93 11/86 13/86 9/81

27. 27
dan@ethoslondon.com
ethoslondon.com