1.0 Executive Summary Firstly, we will look onto Pantene, the first brand. Pantene is a very popular brand in Asian countries. Most of the people in Asian countries knew about this brand although some may not use it because of the benefits that can be gained as solution for different hair problems among potential users. Practically, this brand positioned itself as a hair care product in the market where different potential user are being targeted.
Beside, we will get to know the history behind this Pantene. Next, we will discuss further on the knowledge we gained based on our research after a survey being carried out with a questionnaires with 30 respondents onto this Pantene brand. We also will look further into the way on how we do the application and analyze the information we get from the research we had conducted that touches on the four popular marketing mix, which also known as the Four P’s (4P’s) which consists of Product, Price, Promotion and Place Distribution. Here, we will have some journals to strengthen our knowledge in the application and analysis part. However, we also would like to make some suggestion based on the survey we had conducted with 30 respondents on how to make this brand to improvise their position better.
Secondly, we will look onto Sunsilk. Sunsilk is also a very popular brand in Asian countries. Most of the people in Asian countries also knew about this brand although some may not use it because of the benefits that can be gained as solution for different hair problems among potential users. Practically, this brand also positioned themselves as a hair care product in the market where different potential user are being segmented and targeted.
Additionally, we will look onto the background of Sunsilk brand while w will discuss further on the knowledge we gained based on our research after a survey being carried out with a questionnaires with 30 respondents onto this brand. Moreover, we will also look onto how we apply the knowledge we gained in the application and analysis part based on the survey we conducted with 30 respondents. We will discuss on the suitable theories and models that are chosen to explain further of the relation of this two popular brands that were well positioned in Asian Market from different perspectives, plus journals to support. Lastly, we also would like to make some recommendation based on the survey we had conducted with 30 respondents on as an idea for this Sunsilk product.
2.0 Introduction 2.1 Pantene by Procter & Gamble Company Procter and Gamble (P & G) was founded in1837 by William Procter and James Gamble. P & G is a manufacturing conglomerate which is a public company, manufactures a wide range of consumer goods, household goods. The company is headquartered in Cincinnati, Ohio, but has regional headquarters located in Singapore, Panama and Switzerland. (Procter & Gamble, 2012)
Pantene is a hair care product and was first introduced in Europe in 1947 by Hoffman-LaRoche of Switzerland. It was named Pantene in which was inspired by the ingredients, panthenol. In 1985, Pantene was purchased by Procter & Gamble (P & G) in order to compete in the beauty product market rather than only functional products. Now, Pantene makes its way across the globe, launching in Australia, New Zealand, Central and Eastern Europe, the Middle East, North Africa, Latin America, Korea and Japan. A staggering array of hair care and hairstyling product offerings and a stronger focus on hair health make the Pantene Pro-V tagline “hair so healthy it shines” recognizable all over the world. Refer Appendix A (History of Pantene, 2012) 2.2 Sunsilk by Unilever Company
Unilever is a British-Dutch public limited company and was founded in 1930 by Antonius Johannes Jurgens, Samuel van den Bergh and William Hulme Lever the 2nd Viscount Leverhulme. The company’s products include foods, beverages, cleaning agents and personal care products. The company actually has two parent companies: Unilever PLC, based in the United Kindgom, and Unilever N.V., based in the Netherlands. The two companies, which operate virtually as a single corporation, are run by a single group of directors and are linked by a number of agreements. (Unilever Company History, 2012) Sunsilk was launched in United Kingdom in 1954.
It is a hair care brand product, primarily aimed at women and was produced by the Unilever group. Sunsilk is Unilever’s leading hair care brand, and is sold under a variety of different names in markets around the world including Elidor, Seda and Sedal. The brand is strongest in Asia, Latin America and the Middle East and is the number one hair care brand in India, Brazil, Argentina, Bolivia, Bangladesh, Sri Lanka and Thailand. Refer Appendix A (Sunsilk, 2012) 3.0 Knowledge and Content/ Application and Analysis
3.1 Target Market
Figure 3.1: The Age Group of Respondents. According to our survey on questionnaire (shown in appendix B) which distribute to 30 respondents, the target market of Sunsilk and Pantene are respondents from age group 20 to 29 years old, 90% while age group 10 to 19 years old are 10%. We also distribute our questionnaire to 30 respondents which included 15 males and 15 females in University Tunku Abdul Rahman. The results are shown as below:
Figure 3.2: Product Preference of Respondents. As the result, 8 out of 15 male respondents choose Pantene, while 7 male respondents choose Sunsilk as their preference shampoo. For the female respondents, 13 out of 15 respondents choose Sunsilk, while 2 female respondents choose Pantene.
3.2.1 Product (Sunsilk)
Figure 3.3: Influences on Purchase Decision of Sunsilk. This survey takes an overview to identify the customer preference level towards Sunsilk shampoo. From the result gathered, 20 out of 30 respondents choose Sunsilk as their preferred brand. Many of the selected shampoo users from our survey agreed that they preferred the quality of Sunsilk. As shown in the bar chart above, 10 respondents would purchase Sunsilk in term of their quality. This is clearly shown that the customers are aware of the quality of the product and they will prefer brand with higher quality ingredients. On the other hand, pricing has less effect on customer preference level, which only involved 2 respondents because customer is willing to pay more for higher quality product.
According to Ness and Gerhardy (1994), it evaluates customer preferences for quality and freshness attributes of eggs. Qualitative research has revealed several quality and freshness of eggs which buyers evaluate. Based on the questionnaire designed of 20 egg buyers from varied lifestyles and eggs, most of the buyers reviewed that they are always concerned with the freshness information about the date of the eggs were laid than the packing date or sell by date.
This is to optimize calcium and sufficient vitamin D3 provided by the fresh eggs purchased. Besides that, it is clearly emphasized that consumers would prefer products which confer higher quality, freshness, safety and environmental friendliness than cost consideration. They are willing to pay more for healthier food than buy the low quality food in low price. As a result, quality is obviously the most significant viable affect for the level of preference brand in a particular product.
3.2.2 Product (Pantene)
Figure 3.4: Influences on Purchase Decision of Pantene. Based on the result gathered, only 10 out 30 respondents from the survey would prefer to buy Pantene Shampoo. From the total of 10 respondents, 6 of them agreed that the factor that influence them the most in buying Pantene is the influential from family and friends. Consumers always influenced by their family and friends on making buying decisions through their daily interaction and communication. As such, they will desire more to try on the product after recommending by friends with its effectiveness and benefits.
As we can see from the bar chart above, 4 respondents had chosen quality as the influence on their purchase decision. According to He and Yang (2010), it is believed that consumers’ purchase decisions are influenced by family and friends. The purchase of products such as cellular phones, which are used publicly, is strongly influenced by the consumer’s reference groups. The buying behaviour of consumers on cell phones is believed to be influence by reference because they have similar lifestyles, learning environment, perception and motivation.
Consumers often decide to buy goods and services based on what they believe others expect of them. They may want to project positive images to peers or satisfy the expectations of family members. Family seem to exert strong influence in consumer buying behaviour as they are the closest person to them. This is because the child is always affected by what their parents buy in 21st century and would like to follow the technology trend of the society.
3.3.1 Price (Sunsilk)
Figure 3.5: Consumers’ Price Perception toward Sunsilk. The pie chart above shows the perception of respondents toward Sunsilk shampoo. According to the pie chart, 67% of them feel that Sunsilk’s price is reasonable, while 33% of them disagree toward Sunsilk’s price is reasonable.
The number of respondents who choose Sunsilk is same as the numbers of respondents who agree that Sunsilk’s price is reasonable. This means that price have influences toward purchase decision of Sunsilk.
Based on our market survey in Jusco (as shown in appendix C), the price of Sunsilk for 700ml is RM26.40, which is reasonable in the minds of 20 respondents. According to Kenesei and Todd (2003), price is the cost that consumers can best determine, thus plays an important role in consumers’ purchase decision. When consumers examine on product features, they also consider the price during the process, the more products they examine, the more prices they check. According to their observation, 50% of shoppers fail to check the price of the product, 66% of shoppers claimed that they checked the price of the item selected, while 46% of shoppers even checked the price of competing products.
Thus, when consumers want to purchase Sunsilk, they will look at the price of Sunsilk after they determine which shampoo’s function they want.
3.3.2 Price (Pantene)
Figure 3.6: Consumers’ Price Perception Toward Pantene. The pie chart above shows consumers’ perception toward Pantene. Based on our surveys, 67% of our respondents disagree about Pantene’s price is reasonable, while 33% of them agree about it. The number of respondents who feel Pantene’s price is reasonable is same as the number of respondents who choose Pantene. This means that price do influence the purchase decision of Pantene. Based on our market survey in Jusco (as shown in appendix C), the price of Pantene for 700ml is RM28.90, which will lead our respondents to purchase Sunsilk.
According to Kenesei and Todd (2003), price plays an important role in consumers’ purchase decision. When consumers examine on product features, they also consider the price during the process, the more products they examine, the more prices they check. According to their observation, 50% of shoppers fail to check the price of the product, 66% of shoppers claimed that they checked the price of the item selected, while 46% of shoppers even checked the price of competing products.
Thus, after consumers determine what shampoo’s function they want, they will check on the price and consider that whether the product’s price is worthy for they to purchase.
3.5.1 Place (Sunsilk)
Figure 3.11: Distribution Location for Sunsilk. Based on the survey conducted and result gathered from 30 respondents, there are 20 out of 30 respondents prefer to purchase Sunsilk. From the 20 Sunsilk preference users, 13 of them will choose to buy Sunsilk from hypermarket. This is mainly because large varieties of goods are available under one roof, making it a one stop shop for the consumers. Besides that, products in the hypermarket are generally always fresh because there is a rapid turnover compare to grocery shop.
On the other hand, grocery shop is the less common place for the customer which is only chosen by 1 respondent. Reason being there is always lack of product variety in the grocery shop and the price is unreasonable. According to the journal of Barry and Howard (1977), hypermarket is their first choice on purchasing daily products due to the unavailability and over pricing rates in the low income areas. The variety of products available in grocery shop is always limited and the consumers have less choice on the selection of products.
Besides that, the price of an item will be generally high or sometimes low than stated in the advertisement. The respondents from the survey conducted stated that they would be more confident on the product quality from the hypermarket as the management in hypermarket will be more aware and have strong control on the product quality before selling to the consumers. Therefore, hypermarket will be the preference place for the consumers to buy products.
3.5.2 Place (Pantene)
Figure 3.12: Distribution Location of Pantene. Based on the result obtained, there is in total 10 out of 30 respondents would prefer to buy Pantene. 6 respondents would prefer to buy Pantene in Hypermarket. This is due to the perception of customers that hypermarkets sell good quality products compare to grocery shops. There is only 1 respondent chosen grocery shop as their preference place. Besides that, 3 respondents will get Pantene shampoo from supermarket. Therefore, hypermarket would be the most preference place of customer to buy shampoos.
Both of the respondents on the survey on Sunsilk and Pantene Shampoos agreed that hypermarket is the preference place of them to get the product. Based on the research of Barry and Howard (1977), the grocery shops located in low income areas had unavailability and over pricing rates averaging twice as high as stores located in higher income areas. The main factor was the scarcity of hypermarket in the inner city low income areas which caused lack of competition. According to the respondents based on the survey conducted, they always facing the situations where the price on the item was generally high, lower or both than stated in the advertisement.
Besides that, the quality of the products purchased from the grocery shops is always different compares to the hypermarket. Therefore, it is to believe that hypermarket will be the most suitable place for product purchasing.
3.4.1 Advertising Tools for Sunsilk
Figure 3.7: Advertising Tools for Sunsilk. To investigate the most useful advertising tool used by the company, we have conducted a survey of 30 selected shampoo users by disseminating survey questionnaire forms. Based on the result obtained, there are 20 Sunsilk users out of 30 respondents. 17 of the Sunsilk users able to get know of Sunsilk through TV advertisement. TV advertisement able to capture consumer’s attention and make them have the intention to purchase and try. 2 out of 30 respondents narrate that they are able to know about Sunsilk through social media. Public relations play very important roles in promoting the products. 1 of the respondent able to get know of Sunsilk through other factor.
Therefore, TV advertising is the most effective advertising tool which able to reach large number of audience. According to Chan, Su, and Huang (2010), research shows that Television advertising plays very important roles to attract audience attention. Taiwan Super Basketball League able to establish the bridge for communication with audience through television advertising. TV advertisements are visual descriptions, which mean more attractive, flashes and voices, impressive, high effectiveness, adaptability, retransmission possibility and improvement on recognition ratings. Therefore, TV advertisements have highly sale impact on SBL development.
3.4.2 Advertising tools for Pantene
Figure 3.8: Advertising Tools for Pantene. Based on the result obtained, there are 10 Pantene users out of 30 respondents. 10 of the Pantene users able to get know of Pantene through TV advertisement. TV advertisement can emotionally motivate the consumers and they will easily get inspired to purchase. This will remind consumers of their desire to possess what are you offering. It can instantly give the product the prominence it needs. According to Chan, Su, and Huang (2010), Taiwan Super Basketball League focuses on television advertisements because television advertisements are the most effective tools to capture consumer’s recognition about the league.
Television advertisement able to catch consumer attention and they will have the intention to try. Television advertisements are fast spread speed, vivid and impressive, dynamic and widest involvement. Visual description is more attractive compare to radio and magazine. Consumers will easily recall of television advertisement more than other advertising tool because television advertisement are visual descriptions. Therefore, TV advertisements have highly impact on SBL development.
3.4.3 Promotional Methods for Sunsilk
Figure 3.9: Promotional Methods for Sunsilk. Based on the result obtained from 30 surveys, 18 Sunsilk users prefer buy 1 free 1 promotion. Besides that, 1 Sunsilk users prefer cash rebate which able customer’s loyalty and repurchase. Besides that, 1 Sunsilk respondent prefers promotional strategy of coupon. From this result, we can conclude that respondents believe that buy 1 free 1 promotion able to save more than cash rebate and coupon. Promotion of buy 1 free 1 encourages consumers to buy more which enable the company to increase their short term sales, revenue and profits.
Based on the journal of Bridges, Briesch and Yim (2006), consumers will be motivated to process information that has greater personal relevance. Thus, cognitive elaboration is much richer to product categories which consumers have more extensive usage in historical contexts. In turn, promotional activities are more likely to be mentally processed and influence the choice of consumers. Therefore, due to the increased sensitivity of price and promotional activities, consumers are more likely to purchase low priced or promoted brands when they want to make subsequent consumption. Therefore, consumers will tend to buy Sunsilk’s shampoo when there is a buy 1 free 1 promotion.
3.4.4 Promotional Methods for Pantene
Figure 3.10: Promotional Methods for Pantene. Based on the result obtained, 8 out of 10 Pantene users desire more for buy 1 free 1 promotion compare to other. 1 Pantene respondent prefers cash rebate and 1 Pantene user prefer coupon promotion. Therefore, majority of both product users prefer buy 1 free1 promotion which give more value for them. According to Darke and Chung (2005), there is a negative impact on discount price. Consumers will tend to have a negative perception on undermining the perceived quality of the discounted item and lower the probability of future purchase. Discount price will produce negative price-quality inferences which consumer will use the lower selling price to infer the quality of the price is also lower.
Therefore, consumers do not like cash rebate as promotional method because it will lead them to perceive the quality of the product negatively.
4.1 Sunsilk Based on our surveys, respondents have given some recommendation about how to increase customer’s awareness of Sunsilk. Some respondents recommended that Sunsilk should come out with hair-fall control and hair growing product. It is because the middle-aged groups are very concerned about hair fall problem. Hair fall problem causes decrease in self-esteem and confidence and also affect people in different way including emotion, physiological and etc. It is a very big market for Sunsilk.
Sunsilk should also come out with male oriented shampoo product to acquire men market. Sunsilk can position itself as a product that can be used by both genders so that customers won’t be confuse when there is a new product target at men.
Some respondents suggested that Sunsilk should provide some free samples for the customers to test so that they can try and experience it themselves. Customers are not willing to buy a whole bottle of Sunsilk if they face uncertainty, so by give sample for them to test, it will attract more customers and increase awareness of Sunsilk.
4.2 Pantene Respondents recommended that Pantene should do more promotion. Pantene always lack of promotion, even there is promotion, the customer do not know until they see it in the shopping mall. Pantene should do more promotion such as discount, coupon and etc.
In addition, respondents recommended that Pantene should create small package size shampoo to customers. It will be convenient to the customers who want to go travel. No one would like to bring a bottle of shampoo just for a few days trip. And it also can be a sample for the customers to try whether they like it or not.
Change the packaging of Pantene would be something new to customers. It can be in term of design, colour and etc. Design of a product can attract customers to buy because the design can give a perception that this shampoo has more inside or bigger in size but it is still 350ml. Colour can be an attraction too because it is personal preference , just like some people like pink, some like blue colour.
In conclusion, 20 out of 30 respondents have chosen Sunsilk.50% of the Sunsilk respondents choose Sunsilk for its quality. It is because customers are willing to pay for higher quality, freshness, safety, environmental friendly than cost consideration. 67% of the Sunsilk respondents think that the price is reasonable while 33% of the Sunsilk respondents feel unreasonable. This proves that Price has influence toward decision making. Most of the Sunsilk respondents prefer to buy Sunsilk from Hypermarket because of large varieties of goods are available in there.Besides, most of the Sunsilk respondents aware of Sunsilk because of their TV advertisement. It proves TV advertisement able to attract customer’s attention. Most of the Sunsilk respondents prefer buy 1 free 1 promotion rather than other promotions. It encourages the customers to buy more and increase Sunsilk’s profit in short-term.
As for Pantene, there are 10 respondents out of 30 respondents. 6 of them agreed that family and friends influence the most to buy Pantene product. Customers desire to buy after getting knows benefits and effectiveness from family and friends which is word to mouth. 67% of the Pantene respondents feel reasonable on Pantene’s price. 6 of the Pantene Respondents prefer to buy Pantene from Hypermarket because Hypermarket sells good quality product compare to grocery shop. Besides, the grocery shops which are located in low income area have unavailability and in high income area, the products are overpriced. All the Pantene respondents get to know Pantene through TV advertisement. It is because it captured customers’ recognition and emotionally motivates them. 80% of the Pantene respondents also prefer buy 1 free 1 just like Sunsilk. It is because the word “free” gives a strong impression on the customer’s mind and able to create brand loyalty.