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Pantene in Asia


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A presentation on Pantene\'s marketing strategy in Asia. Members: Ravinder Dosangh, Llewellyn D\'Souza, Gabriel Lam, Keith Loo, Sen Quach

Published in: Lifestyle, Business
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Pantene in Asia

  2. 2. <ul><li>First introduced in Europe in 1947 by Hoffman-LaRoche of Switzerland, purchased in 1985 by Procter & Gamble </li></ul><ul><li>Pantene focus – “ Shine Through Health ” </li></ul><ul><li>Asian haircare market: </li></ul><ul><ul><li>Japan: 36.7%, </li></ul></ul><ul><ul><li>China: 20.1% </li></ul></ul><ul><ul><li>India: 16.1% </li></ul></ul><ul><ul><li>South Korea: 16.1% </li></ul></ul><ul><ul><li>Rest of Asia-Pacific: 10.9% </li></ul></ul><ul><li>Japanese haircare market: </li></ul><ul><ul><li>Hair colorants: 31.8% </li></ul></ul><ul><ul><li>Shampoo: 26.2% </li></ul></ul><ul><ul><li>Conditioner 22.1% </li></ul></ul><ul><ul><li>Styling agents: 18.9% </li></ul></ul><ul><ul><li>Perms & relaxers: 1.0% </li></ul></ul><ul><li>Chinese haircare market: </li></ul><ul><ul><li>Shampoo: 78.9% </li></ul></ul><ul><ul><li>Conditioner: 11.6% </li></ul></ul><ul><ul><li>Styling agents: 4.3% </li></ul></ul><ul><ul><li>Perms & relaxers: 3.3% </li></ul></ul><ul><ul><li>Hair colorants: 1.9% </li></ul></ul><ul><li>Indian haircare market: </li></ul><ul><ul><li>Conditioner: 48.6% </li></ul></ul><ul><ul><li>Shampoo: 38.0% </li></ul></ul><ul><ul><li>Hair colorants: 11.5% </li></ul></ul><ul><ul><li>Styling agents: 1.4% </li></ul></ul><ul><ul><li>Perms & relaxers: 0.5% </li></ul></ul><ul><li>Market share: </li></ul><ul><ul><li>Kao Corporation: 27.8% </li></ul></ul><ul><ul><li>Shisheido Company, Limited: 12.3% </li></ul></ul><ul><ul><li>Hoy Co., Ltd.: 12.0% </li></ul></ul><ul><ul><li>Others: 47.9% </li></ul></ul><ul><li>Market share: </li></ul><ul><ul><li>Procter & Gamble Company, The: 43.7% </li></ul></ul><ul><ul><li>Unilever: 12.4% </li></ul></ul><ul><ul><li>Beirsdorf AG: 8.3% </li></ul></ul><ul><ul><li>Others: 35.6% </li></ul></ul><ul><li>Market share: </li></ul><ul><ul><li>Marico Limited: 18.4% </li></ul></ul><ul><ul><li>Unilever: 16.7% </li></ul></ul><ul><ul><li>Dabur India Limited: 10.5% </li></ul></ul><ul><ul><li>Others: 54.5% </li></ul></ul>
  3. 3. <ul><li>Product development </li></ul><ul><li>“ Travel well” to other countries </li></ul><ul><li>Avoid the “not invented here syndrome” </li></ul><ul><li>Time to market </li></ul><ul><li>Development of a communication network </li></ul>
  4. 4. <ul><li>Low wash frequency in Asia </li></ul><ul><li>Female-centric targeting </li></ul><ul><li>Pantene has low market share in Asia </li></ul>
  5. 5. <ul><li>Question: How many times a week do you wash your hair? </li></ul><ul><li>Average wash frequency is 3.5 times a week </li></ul><ul><li>This is not a Taiwanese phenomenon; 2-4 washes a week is common around the world </li></ul><ul><li>To prevent drying/damaging your hair; belief is to retain the natural oils in the hair </li></ul>
  6. 6. <ul><li>Promote the necessity to increase wash frequency due to the climate and poor air quality (pollution) in this region </li></ul><ul><ul><li>An increase from 3.5 to 4 washes a year will translate to a 14% increase in sales </li></ul></ul><ul><ul><li>Easier to increase churn by 14% than to convert 14% of a competitor’s customer base to the Pantene line of products </li></ul></ul>
  7. 7. <ul><li>Introduce the treatment line of products -- lead with the conditioner line </li></ul><ul><ul><li>Introduce other Pantene hair care line of products </li></ul></ul><ul><ul><li>Promote the line as complements </li></ul></ul><ul><ul><li>If 2 or more Pantene products are being used, higher chance of brand loyalty </li></ul></ul><ul><ul><li>Promotional activity via door-to-door sampling: sachets </li></ul></ul><ul><ul><li>Continue to advocate the “ Shine through Health ” positioning </li></ul></ul>
  8. 8. <ul><li>Currently target female buyers </li></ul><ul><li>Most advertisements use female models </li></ul><ul><li>Male focus hygiene products is a growing market </li></ul><ul><li>In 2008, men's grooming (including hair care products) was worth $26 billion globally, accounting for 8% of the total global cosmetics and toiletries market </li></ul><ul><li>Men’s hair care was a US $677.7 million market in 2008, it is expected to reach $1.5 billion by 2012 in United States alone. </li></ul>
  9. 9. <ul><li>70% of men say their primary physical preoccupation is their hair </li></ul><ul><li>62% want hair care specifically designed for them </li></ul><ul><li>41% buy their shampoo themselves </li></ul><ul><li>67.5% go to hair salons </li></ul><ul><li>On average, men frequent hair salons 6.5 times per year </li></ul><ul><li>A P&G survey of men found that 59% were experiencing thinning hair or were concerned about it </li></ul><ul><li>Men's hair is different from women's, and requires its own products. &quot;Men's hair is shorter, so oil covers it more quickly, making it more prone to look dirty&quot; says Mike Jutt, P&G's associate director of hair-care research and development. &quot;And men don't typically color their hair or use heated styling products,&quot; as women do. </li></ul>
  10. 11. <ul><li>Introduce new product line – Pantene for Men, to focus on male market </li></ul><ul><li>Use similar positioning – “ Shine through Strength ” to promote the new products – targeting hair loss and thinning of hair issues faced by most males </li></ul><ul><li>Can utilize Government PX channels in Taiwan (12 months military requirement for males) </li></ul>
  11. 12. <ul><li>P&G has a large presence in China – 43.7% share </li></ul><ul><li>Accounts for 20.1% of Asia-Pacific market </li></ul><ul><li>Japan accounts for 36.7% of Asia-Pacific haircare market – P&G not a major player </li></ul>
  12. 13. <ul><li>Top 3 players enjoy over 50% of market share – all Japanese </li></ul><ul><li>Largest segment is hair colorants (31.8%) followed by shampoo (26.2%) </li></ul><ul><li>High usage of dye and styling products may leave hair damaged and brittle </li></ul>
  13. 14. <ul><li>Pantene has several lines that can sell well in Japan – hair gels, mousse, spray </li></ul><ul><li>High usage of dye and styling products may leave hair damaged and brittle </li></ul><ul><ul><li>Potential to capture some market share by emphasizing health and shine aspects of Pantene to repair damaged hair </li></ul></ul><ul><li>Emulate the idea of Shiseido’s ads “Japanese women are beautiful” - Use Japanese models </li></ul>
  14. 15. <ul><li>16.1% of the Asia-Pacific haircare market </li></ul><ul><li>Revenues of $1.4 billion in 2009 </li></ul><ul><li>Growth rate of 15.4% </li></ul><ul><li>Only 40% of urban homes and 16% of rural homes use shampoos </li></ul>
  15. 16. <ul><li>Top 3 players enjoy over 45% of market share - All localized. P&G not in top 3 </li></ul><ul><li>Largest segment is hair oil (72%), shampoo still in infancy </li></ul><ul><li>Many competing natural hair care products & hair oil </li></ul><ul><li>Perception of nutrient loss through shampoo usage </li></ul>
  16. 17. <ul><li>Leverage 2 in 1 philosophy to include hair oil </li></ul><ul><li>Emphasize shine through health philosophy to dispel misconceptions </li></ul><ul><li>Target conditioner market (Largest market after hair oil) </li></ul><ul><li>Use celebrities to promote brand and usage </li></ul>