The company is permanently spending considerable amounts on R&D to innovate its products and on advertising to maintain the brands awareness high. Shareholders are more satisfied than ever after Procter's recovery in the late 1990s, early 2000. But they did not encourage much the recovery process because it took almost two years and they were expecting a fast recovery process.
Pantene
Currently there are over 100 Pantene products. Pantene shampoo has 25 products in the supermarket shelves to cover all types of customer needs. In terms of sales, the brand has had a "blockbuster" evolution. It was introduced in the market about 10 years ago and it has been reinvented since maintaining a top market share. Pantene, the shampoo is actually the leader in this market, followed by Elseve from L'oreal. Overall, Elseve product line is better positioned in the market, having a larger market share for all hair care products: shampoo, conditioner, 2 in 1, treatment and hair styling.
A recent study (Mediapost, 2007) shows that Pantene's market share in the 18-24 age group is 23%, in the 25-34 age group is 25% and in the 35-44 age group is 22%. Pantene shampoo is doing very well in all age segments, including that of 65 and above.
Its permanent repositioning is based on global market studies about consumer behavior. The results pointed out that most women think they have hair problems and they associated hair health with shine. Pantene Pro-V products are advertising shine as their strong point and all Pantene hair products are preoccupied with getting a healthy hair aspect.
SWOT Analysis
Two competing products from the same market have been chosen to compare them with Pantene and determine its strong points, weakness points, opportunities and threats: Dove and Elseve.
Strong Points
Weakness points
Pantene is the market leader in the shampoo market by the sales volume ($ and units). The hair care line sales value is over $3bn/year and 2000 bottles are sold every hour;
The product line is very diversified covering all types of hair;
The shampoos are complemented by conditioners, just as diversified;
The consumer has a high brand awareness
The product reached its maturity stage, so the average manufacturing costs are decreasing;
P&G suppliers are distributing the products to a large number of supermarkets, which means that the products have a wide coverage.
P&G has not entered the professional hair care market, as opposed to L'Oreal. Because of that Elseve enjoys more credibility than Pantene from the customer;
Innovation rhythm is slowing down because the product reached the maturity level;
Elseve's products line covers both Pantene and Head & Shoulders products. Customers that are attached to Pantene brand may find their shampoo choice narrower because of that.
The product offer for low income consumer is quite reduced
Opportunities
Threats
Enter the professional hair care market, like L'Oreal with its product line L'Oreal Professional;
Innovate products for low income consumers.
Supermarkets developing their own brands similar to Procter's, but a considerably lower price;
Tough advertising competition,...
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