About• Toni&Guy is one of the world’smost powerful hair dressingbrands• It has pioneered the concept ofprofessional hair dressingworldwide• It is the only salon brand to beawarded “SuperBrand” and“CoolBrand” status
About• Pond’s Cream is a renownedand demanded brandof beauty products producedby the Ponds Institute, ownedby Unilever.• The company combinesheritage and innovation withstate-of-the-art R&D facilitiesin Bangkok, Mumbai, NewYork and Tokyo.
Background• Toni&Guy and Ponds have joined handsto bring consumers the best of skin andhair care services.• The flagship Toni&Guy salon ANDPonds skincare centers will providehair, nail and skin services altogether tocustomers at a single location.• From hair extensions and body scrubsincluding customized facials andshowering to foot reflexology.
SWOT AnalysisStrengths• The partnership will enable Pondsto successfully position itself in theniche market.• At the same time, it will enableTony&Guy associate itself with oneof the world’s largest brands.• Enabling the salon to gain thecompetitive advantage overcompetitors and dominate themarket share.• Location of the salon is also thestrength for both Ponds andToni&Guy.
SWOT AnalysisWeakness• Both Toni&Guy and Pondshave their own productlines.• Toni&Guy won’t supportPonds huge product linecompeting with its ownproducts.• Ponds is the largestmultinational brandcompared to Toni&Guy.
SWOT AnalysisOpportunities• It provides opportunity toboth the brands benefit fromeach other’s brand equity.• Target brands like“Nabila”, “Tariq Amin” etc topromote Tony & Guy andPonds• Advertising into “Fashion”magazines read byprofessionals
SWOT AnalysisThreats• Ponds brand equity could bedamaged.• Pakistan is a conservative countrywhere certain services of Toni&Guysuch as Sauna, Jacuzzi andMassages could possibly damagethe image of Ponds as a massconsumer brand.• Conservative people might boycottusing Ponds as a cold cream byassociating it with Tony&Guymassage and sauna facilities.
PEST AnalysisPolitical• The government usuallyintroduces new policies andguidelines in the industry, whichsometimes affects the businessoperations negatively.• The government policies may becostly (taxes) and time consumingdue to the procedures andprocesses that must be followedduring implementation.
PEST AnalysisEconomic• If the firm’s returns areunstable, the company may endup making huge losses due tothe costs associated.• If Employees pressurize thecompanies to increase theemployee’s salaries and otherremunerations, the firm mayclose down if its profitability isnot stable.
PEST AnalysisSocial• Contemporary changesbrought by the fashion andtastes and preferences requirefurther training and expensesfor the employees.• Diversified expertise required
PEST AnalysisTechnological• Different hairstyles require differentequipment and machines to be used.• Technology also requires employees tobe trained on the use of newtechnologies.• In order to live up tocustomers/professionals expectations, agreater need of modern and advancedtechnology is required.
Porter Five Force AnalysisBargaining Power ofSuppliers• LowThreat of PotentialEntrants• HighIntensity of competitiverivalry• HighThreat of Substitutes• LowCustomers BargainingPower• High
Porter Five Force AnalysisBargaining Power ofSuppliers• LowThreat of Substitutes• LowCustomers BargainingPower• High
The Problem• Now of course this B2Bpartnership has bothpositive and negativepoints which we analyzedin SWOT analysis.• But the biggest threat tothis partnership is thatPonds image itself is atstake.
The Problem• Pakistan is a conservativecountry where certain servicesof Toni&Guy such asSauna, Jacuzzi and Massagescould possibly damage thereputation of Ponds as a massconsumer brand.• Conservative people mightboycott using Ponds as a coldcream by associating it withTony&Guy massage and saunafacilities.
Our Recommendation for them• Selective Marketing:i.e. Targeting specificcustomer groups.• Both Toni&Guy and Pondscan jointly target specificcustomer groups:– Through Fashion shows– Fashion Magazines