2022

Brand and Branding Strategy and the

Table of Contents

Introduction..............................................................................................................................2

Brand’s Evolution....................................................................................................................2

Brand’s Positioning and Strategy...........................................................................................3

Segmentation........................................................................................................................3

Geographical.....................................................................................................................4

Demographical..................................................................................................................4

Psychographic...................................................................................................................4

Behavioral.........................................................................................................................4

Target Market......................................................................................................................4

Positioning.............................................................................................................................5

Pressing Environmental Challenges.......................................................................................5

Political and Legal................................................................................................................5

Economic Challenges...........................................................................................................5

Social and Technological Challenges..................................................................................5

Rivalry...................................................................................................................................6

New Competitors..................................................................................................................6

The Threat of Substitutes....................................................................................................6

Buying Power........................................................................................................................6

Supplier Power.....................................................................................................................7

Brand Activism.........................................................................................................................7

Why is it necessary?.................................................................................................................8

References.................................................................................................................................9

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Introduction

The major purpose of this report is to study a global brand, its history, brand positioning, and
strategy, as well as the elements that influence it. I’ve picked a brand from Proctor &
Gamble, a large FMCG corporation. The business is included in the Fortune 500 list of the
world’s most successful businesses. The Center is located in the city of Cincinnati, Ohio, in
the United States. Procter & Gamble has roughly 300 brands across a variety of sectors, and
the company has one of the largest and most powerful branded product portfolio management
systems in the world. The brand I’ve picked is Head & Shoulders, which is a haircare brand.

Brand’s Evolution

Proctor & Gamble’s Head & Shoulders anti-dandruff shampoo is a popular brand. The
concept for Head & Shoulders began about 1950 when research conducted by Procter &
Gamble revealed that consumers were dissatisfied with current anti-dandruff shampoos. After
ten years of study, P&G scientists discovered Pyrithione Zinc, a novel and potent anti-
dandruff chemical that worked. P&G began testing the product in 1960, and by the spring of
1961, the shampoo had been given the name Head & Shoulders, and Procter & Gamble began
working on packaging, displays, advertising, and marketing initiatives. The initial Head &
Shoulders product, a blue-green cream shampoo in a white glass container that was
“clinically proven to treat dandruff,” was launched to the public. Head & Shoulders has
changed greatly over the previous 50 years, now offering a wide range of shampoos and
conditioners to fulfill the demands of consumers’ hair and scalp (Pitman, 2015).

In 1949, Procter & Gamble hired John Parran Jr, a bacteriologist and chemical engineer from
the University of Tennessee. His objective was simple: rid the world of dandruff. The
dandruff-removal solutions of the day, such as coal tar and egg oil, were unappealing, and
even though they performed, they were damaging to the hair. Dr. Parran aimed to create a
dandruff-fighting solution that was less damaging to the hair and more fun to be using. After
10 years of clinical research, Head & Shoulders was born. Following ten years of clinical
trials, Dr. Parran and his group of specialists developed a powerful chemical that was
effective in eliminating dandruff in 1961 (Sabahat, 2018).

Their product, codenamed Head & Shoulders, was now ready for commercial testing. It was
so effective that it was rolled out across the US the next year. It was a cream formula when it
first came out, but it felt that they could make it even easier and more enjoyable to use. As a

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result, it returned to the laboratory and they consumed years refining the merchandise. P&G
transformed its recipe into a shampoo in 1975. It was not only clinically proven to combat
dandruff, but it also smelled great! By 1975, the business had developed a dandruff-removing
shampoo with a pleasant aroma that had been clinically validated. It was so efficient and
enjoyable to be using that it immediately became – and continues to be – the world's most
popular shampoo (Pitman, 2015).

In its attempts to eradicate dandruff, P&G has always valued scientific study, but new
technologies have allowed them to go much further than Dr. Parran could have imagined. In
2002, P&G deciphered the genetic coding of Malassezia globosa, the fungus that causes
dandruff. That meant we could address the underlying cause of dandruff as well as flakes. Its
objectives have grown since then. Rather than only treating dandruff, it now aims to give
everyone a healthy scalp and great-looking hair. However, the story does not finish there.
With over 500 professionals worldwide, they are as committed as ever to improving our
shampoos and conditioners to make them the best they can be.

Even now, they are trying to improve their formula because they are devoted to developing it
superior with each major scientific advancement - which P&G feels Dr. Parran and his
pioneering team would've been tremendously pleased with (Pitman, 2015).

Brand’s Positioning and Strategy

Head & Shoulders sectors are divided depending on demographics, location, psychography,
and lifestyle. Notwithstanding the above-mentioned categorization, a shampoo label like
Head & Shoulders, as an FMCG commodity, places a greater focus on lifestyles and
customer choices than on demographic and geographical segmentation (Sabahat, 2018).

Head & Shoulders was the first to enter the anti-dandruff market. As an added advantage, it
emphasized smooth hair. Head & Shoulders' target market is middle-class consumers who are
brand aware, trendsetters, and sensitive regarding the overall condition of their hair (Hasib,
2015).

Segmentation

Segmentation helps the company to better serve its potential consumers’ demands. Once the
market has been divided, companies can establish advertising plans for each part, focus

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advertising on one or two segments or niches, or manufacture new items to appeal to one or
more of the categories.

Four “segmentation bases” may be used to split the market into segments: psychographic,
behavioral, geographic, and demographic. Customer demands are the most basic criteria for
segmenting a market. To determine the market’s client requirements (Hasib, 2015).

Geographical

Head & Shoulders is geographically split all around the world. Head & Shoulders is
nowadays present in more than 180 countries, including the United Kingdom. The head and
shoulder are commonly used in urban and semi-urban regions of the country. All cities and
counties have access to Head & Shoulders (Hasib, 2015).

Demographical

The younger age is the usual market segment for Head & Shoulders. They do, however, cover
a lot of ground in this case. They divide the market into high-income and upper-class
households that can afford the highest-quality products (Hasib, 2015).

Psychographic

People with a positive attitude toward beauty, particularly upper-status regulars, potential
users, and non-users are included in the psychographic segmentation of the head and
shoulders (Hasib, 2015).

Behavioral

The behavioral segment of Head & Shoulders is made up of people who enjoy spending
money on high-quality goods. As a result, Head & Shoulders is England’s most popular
shampoo brand, with a 65-percent market share in anti-dandruff shampoo (Hasib, 2015).

Target Market

Head & Shoulders first targets middle-aged guys with hairline and flaking issues. In the early
phases of its marketing strategy, it aired advertising showing that the shampoo delivers nearly
100 percent respite from dandruff after only one use. For young people and young
professionals who are worried about their hair, it also features menthol, volume increase, and

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hair-fall therapy. Head & Shoulders capitalizes on this customer group's psychological
approach by using famous athletes in their commercials (Hasib, 2015).

Positioning

Head & Shoulders is marketed as an anti-dandruff shampoo that removes flakes in only one
wash. It has effectively grabbed the anti-dandruff niche market as the market leader. The
company’s sales have increased in the past year as a result of its excellent distribution system
and significant penetration in the rural market, making it a market leader. According to the
Head & Shoulders 2011 annual report, the remark reads: “A decade ago, Head & Shoulders
was a modest, predominantly North American brand. We began to extend the brand
internationally by investing in a combination of marketing and product advancements. Since
then, sales have more than quadrupled, and Head & Shoulders is now the world’s largest
shampoo brand.” (Hasib, 2015)

Pressing Environmental Challenges

Political and Legal

Swift changes in the nation’s political landscape, combined with the administration’s
ambiguous intentions, have left the entire business sector in limbo. Violence is also prevalent
in the country’s major cities, and some conflicts like Brexit are hampering commercial
activity. Because of the shifting administration, tax plans are always changing (Sabahat,
2018).

Economic Challenges

Rising inflationary pressure, diminishing people’s buying power and driving them from high-
priced shampoo to low-priced shampoo, and giving more fuel for local manufacturers to
expand.

Increased import levies on completed goods and raw materials have raised the price of the
product, and rising inflation has made it impossible for the shampoo sector to pass on the
whole cost rise to consumers, requiring the business to run at a very low margin (Sabahat,
2018).

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Social and Technological Challenges

Sanctions placed by industrialized countries on England as a result of nuclear testing have

created uncertainties in corporate activity. The higher the trend towards urbanization in
England, the lower the living level, causing individuals to utilize quality goods and switch
from beauty shampoo to specialty shampoo.

There have been several big and quick breakthroughs in shampoo technology and production
processes, but further innovation is needed to keep the product from becoming outdated
(Sabahat, 2018).

Rivalry

The degree of rivalry within an industry is referred to as competition. When competitors are
of comparable scale, the likelihood of competition increases. The other competitors are:

 Sunsilk
 Lifebuoy
 Pantene
 Care
 Dove

As a result, the competition is fierce. Due to their similar sizes, these three companies are
more competitive. The shampoo industry is growing at a pace of 9.9% each year. It appears
to have provided highly profitable commercial opportunities, but these opportunities come
with risks (Pitman, 2015).

New Competitors

In England, P&G holds a considerable part of the market. It is commonly assumed that a
sector is secure and appealing if the danger of new entrants is low. Large initial capital needs,
as well as product differentiation, are impediments to new competitors in the shampoo
market. Also, customers have a strong opinion about the existing shampoos, and it is quite
difficult for newcomers to change that opinion. The threat of new entrants is minimal, but not
nil, as a result of these factors (Pitman, 2015).

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The Threat of Substitutes

Dove and Clear & Clean shampoo are good substitutes for head and shoulder anti-dandruff
shampoo. As the country’s inflation rate rises, the prospect of a cheaper alternative to high-
priced shampoos like Head & Shoulders grows (Kelly, 2021).

Buying Power

When a small number of purchasers buys a substantial part of a company’s sale, they have
the most authority. In the shampoo industry, however, the customers are distributors to whom
a huge number of items are sold, and this transaction is typically made in cash. As a result,
buyers in the Shampoo industry lack sufficient ability to disrupt or interfere (Kelly, 2021).

Supplier Power

Since they receive material and technological aid from their parent corporation, suppliers
have less influence. P&G’s suppliers will have minimal bargaining leverage since they rely
on major customers for profitability and revenue development (Kelly, 2021).

Brand Activism

Brand activism is a campaign to get a brand to do more than only proclaim the benefits of a
product or service, or even highlight some value or values that the firm has and cares about.
“It was P&G and Unilever that developed a distinction between sales and the notion of
marketing,” says Dr. Kotler. “I conduct marketing because I have a salesforce and I
advertise,” a corporation would claim. That isn’t marketing at all. That’s just having two
resources within the marketing framework; it’s not the same as developing a strong and
successful overall plan that will keep a company alive and thriving for years to come
(Intermite, 2019).

In recent years, the trend of purpose-driven marketing has transitioned to a greater emphasis
on brand activism, as businesses weigh in on usually difficult and political matters at the
forefront of cultural discourse. When implemented well, it is a method that connects with
customers: According to a recent Piplsay survey, more than half of respondents believe the
trend is positive, a third believe it may help produce genuine change, and more than half
believe brand activism affects purchasing behavior or brand impression (Caroll, 2021).

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Nevertheless, executives from Procter & Gamble said during the MMA Global’s virtual
Impact conference this week that getting brand advocacy correct by continuing to support
serious reform and trying to connect with customers is not simple and takes a considerate,
genuine strategy and buy-in all through corporate entities.

“Internally, we have a slogan that says, “The customer is in charge.” We put the customer
first in everything we do, which means we do a lot of listening and research “P&G’s senior
director of global brand creation and media innovation, Eric Austin, stated. “When customers
make the link of why it makes sense for your organization and then have the insight to be
genuine, that is when authenticity is created.” (Kelly, 2021)

“These days’ consumers are well-informed. They can spot things that aren’t genuine, and
that’s when companies get into trouble: when they lack the necessary insight. Before they
start going large and broad, they haven’t done the roll-up-your-sleeves job in the
neighborhood,” said Austin (Caroll, 2021).

Why is it necessary?

A factor for the increase of brand activism is the rise of social media. Societies are beset by
societal issues, and governments appear split or powerless to address them. Business is the
most powerful entity with the resources to act and improve people’s lives. A company’s
assertion of social duty to achieve the Common Good is known as brand activism (Intermite,
2019).

The failures that we are currently witnessing in the globe are failures of the imagination. Data
is vital, but the meaning is much more so. Customers and workers want meaningful
experiences, not technology for the sake of technology. The reduction of our connections to
simple transactions has resulted in the loss of human identity.

For years, P&G has prioritized diversity and inclusion. The new “Widen the Screen”
program, which focuses on the inclusion of Black artists throughout the advertising, film, and
television sectors has lately broadened the company’s long-running efforts to eliminate racial
prejudice and misrepresentation in the marketing business. According to Austin, the
campaign stemmed from P&G’s standing as an “advertising machine.” (Intermite, 2019)

“We want to make sure it’s woven into the company’s fabric rather than bolted on,” Eric
Austin says.

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“We put a lot of stuff into the ecosystem, and a lot of that content impacts people’s
perceptions of other groups, so we must make sure we depict those individuals accurately.
Also, given the amount of money we spend on this, we can have a significant influence on
the creative ecosystem’s representation,” Austin added.

Brand activism isn’t a one-size-fits-all solution for meeting customer requirements.

According to Austin, P&G has a “very senior staff” that decides what makes sense for the
brand to engage in and what to avoid, noting that the business has avoided the topic of police,
which is typically linked to racial equality advocacy. However, by incorporating activism into
the company’s broader strategy and receiving buy-in and guidance from senior executives,
activism may become more authentic and successful.

“We want to make sure it’s woven into the company’s fabric rather than bolted on,” Austin
added. (Intermite, 2019)

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References

1) Bhasin, H. (2018). SWOT analysis of Head & Shoulders - Head & Shoulders SWOT
analysis. [online] Marketing91. Available at: https://www.marketing91.com/swot-
analysis-of-head-shoulders/.
2) Caroll, B. (2021). Brand Activism and Modern Marketing - markempa. [online]
https://www.markempa.com/. Available at: https://www.markempa.com/brand-
activism/.
3) Hasib, M. (2015). Brand Positioning of Head & Shoulders. [online] Available at:
http://mehedihasib.blogspot.com/2015/04/.
4) Intermite, S. (2019). Brand Activism: An Interview with Philip Kotler and Christian
Sarkar. [online] The Marketing Journal. Available at:
https://www.marketingjournal.org/brand-activism-an-interview-with-philip-kotler-
and-christian-sarkar/.
5) Kelly, C. (2021). How P&G and Lush pursue brand activism with authenticity.
[online] Marketing Dive. Available at: https://www.marketingdive.com/news/how-pg-
and-lush-pursue-brand-activism-with-authenticity/598010/.
6) Pitman, S. (2015). How P&G continues to advance its Head & Shoulders formulation.
[online] cosmeticsdesign.com. Available at:
https://www.cosmeticsdesign.com/Article/2015/04/15/How-P-G-continues-to-
advance-its-Head-Shoulders-formulation.
7) Sabahat, F. (2018). Head Shoulder Pakistan | PDF | Procter & Gamble | Brand.
[online] Scribd. Available at:
https://www.scribd.com/document/379905901/188634030-Head-Shoulder-England
[Accessed 23 Jan. 2022].

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