Neilson Market Research On Pantene

IMB 419
SEEMA GUPTA
NIELSEN: MARKET RESEARCH FOR PANTENE

Garnier was launched in the United States in 2003 and within a year it gained 5.1% market share. During the same
period, the share of Pantene, the market leader declined from 22.5% to 20% (Exhibit 1). This was a steep fall which
worried Procter & Gamble (P&G), the owner of Pantene brand. P&G wondered what caused the decline ± lack of
distribution intensity or heavy promotions by competitors or unfavorable consumer perception. P&G hired Nielsen
to conduct market research to identify the cause of decline and suggest a marketing strategy.
NIELSEN
Nielsen, headquartered in the United States and Diemen, the Netherlands was the market leader of the $31 billion
global market research (MR) industry in 2010. Nielsen provided solutions to clients¶ marketing problems with its
single-minded focus on consumers. While certain research needs were common across businesses, others were
idiosyncratic depending upon the strategic goals of the business. For common research needs, Nielsen offered a suite
of internationally recognized proprietary products providing powerful normative data. Termed as Syndicated
Research, it was Nielsen who decided the population, questions to be asked, and intervals between studies. The
research results were often purchased by multiple clients, who then shared results and costs. For specific needs,
Nielsen tailored research solutions. Termed as customized research, only that client had access to the results of the
research. Often a combination of both syndicated and customized research was necessary.
Nielsen was founded in 1923 by Arthur Charles Nielsen for conducting quality tests and offering consulting for
industrial products. In 1933, it commenced measurement of consumer sales in retail stores. It went beyond
conventional consumer questionnaires and instructed auditors to actually survey store shelves and accounting books
to determine sales patterns. It thus pioneered the concept of µµPDUNHW VKDUH¶¶ The 1940s witnessed the growth of
radio and in 1942 Nielsen began measurement of radio listenership across the United States. In the 1950s, television
became widespread and Nielsen started rating the programs by measuring viewership with the help of installed
meters. The media rating services were managed under a separate division ± µµ1LHOVHQ0HGLD5HVHDUFK¶¶ In 1977,
Nielsen introduced scanning of universal product codes at retail stores, thus collecting accurate and instantaneous
data on consumer purchases as they occurred. The scanning service named µµ6FDQ 7UDFN¶¶ also served as a
foundation on which diagnostic and analytical applications could be performed.
Nielsen emerged as the market leader, which drew the attention of The Dun & Bradstreet Corporation which
acquired Nielsen in 1984. Nielsen entered into an alliance with The NPD Group (National Purchase Diary) to
establish household panel services, which measured the marketing stimuli received by member households (such as
advertisements and promotions), and their response to them in the form of purchases; thus providing single source
UHVHDUFK 7KH 'XQ %UDGVWUHHW¶V DFTXLVLWLRQ RI ,QIRrmation Resources Inc. (IRI) in 1987 gave it ownership of
µµ%HKDYLRU6FDQ¶¶ ± ,5,¶V IODJVKLS SURGXFW IRU DQDO\]LQJ WKH HIIHFWLYHQHVV RI 79 FRPPHUFLDOV ,Q , Dun &
Bradstreet acquired µµ/RJLVWLFV 'DWD 6\VWHPV¶¶ whose flagship product µµ6SDFHPDQ¶¶ helped retailers profitably
manage shelf space and display. These acquisitions enabled Nielsen to offer a bouquet of services and increase its
revenues from new product development instead of engaging in competitive battles.
Over the years, competition intensified in the market research industry. In 1997, A. C. Nielsen merged with
Entertainment Data Inc. to provide box office returns to the motion picture industry. In 1998 it acquired µµ7KH
%$6(6 *URXS¶¶ a leading provider of simulated test marketing services for new product launch. To measure the
ever-increasing audiences on the internet, in 1999, the company entered into an alliance with NetRatings to form
Nieslen eRatings. The continued growth of A. C. Nielsen sparked the interest of Dutch company VNU, which
acquired it in 2000. In 2006, VNU was acquired by a group of six private equity firms. The company was renamed
Seema Gupta, Assistant Professor of Marketing prepared this case for class discussion. This case is not intended to serve as an endorsement,
source of primary data, or to show effective or inefficient handling of decision or business processes.
Copyright © 2013 by the Indian Institute of Management Bangalore. No part of the publication may be reproduced or transmitted in any form or
by any means ± electronic, mechanical, photocopying, recording, or otherwise (including internet) ± without the permission of Indian Institute of
Management Bangalore.
This document is authorized for use only in Prof. Narasimhan Raj Kumar's Principles of Marketing, Term - I, BM[D] 2021-23 at Xavier Labour Relations Institute (XLRI) from Jun 2021 to Oct
2021.
Nielsen: Market Research for Pantene Page 2 of 21
as The Nielsen Company. In 2011, Nielsen went public and was listed on the New York Stock Exchange under the
name of Nielsen Holdings.
MARKET RESEARCH INDUSTRY

The top five companies accounted for 49% of the global market research industry in 2010. Nielsen was the market
leader with 16% market share, followed by Kantar (12%), IMS Health (7%), GfK (6%) and Ipsos (5%) (see
Exhibit 2 for key financials of top companies). 1 As clients expanded their businesses across the globe, market
research companies followed them. The need for a global footprint led to rampant mergers and acquisitions leading
to the consolidation of the industry. The top five markets ± the United States, the United Kingdom, Germany,
France, and Japan accounted for two-thirds of the total market turnover (see Exhibit 3 for country-wise MR spends).
However, emerging markets were growing faster than developed markets.
Although, quantitative research accounted for 76% of the global research spend, qualitative research accounted for
17%. Online and telephone methods accounted for the largest spends by research method. Worldwide, research was
moving away from face to face to other methods such as telephone and online. The major industries for market
research were FMCG, Health care, Financial services, Automotive, and Durables. The industry attempted to reduce
its costs by outsourcing the non-core functions. Clients increasingly demanded actionable insights and were not
content with data. They expected research companies to provide modeling and prediction, which were earlier
considered the domain of consulting companies. Piyush Mathur, President, Nielsen India Region said:
The dominant business model is low-cost high-volume. We are disciplined in the cost of our
operations, but we need to move up in the value chain. We can do this only when we stop looking
at research from the rear view mirror and instead predict future trends for our clients.
MR companies increasingly hired senior leaders from client side or consulting companies or technology domain.
The industry saw the emergence of new players in fields such as analytics and data mining. Many IT companies
were expanding their research divisions for providing inputs to their strategic group. Consulting firms such as Price
Waterhouse Coopers, KPMG, and Ernst &Young had started providing end-to-end solutions to their clients.
Although traditional MR firms enjoyed strong relationship with clients, particularly in FMCG and consumer
durables, these new genre of companies were giving them competition.
Indian MR Industry was Rs. 8.9 billion in 2009 (1 $ = Rs. 55.6, in May 2013). Similar to the global trends,
quantitative research accounted for the bulk of research spends. Manufacturing sector accounted for the majority of
the research revenues followed by services sector. The emergence of new sectors such as telecom, digital media, and
insurance gave fillip to the MR industry. Attracting and retaining talent was a business challenge and many
companies set up their own training centers to upgrade the skills of employees.
Nielsen dominated the Indian market as well. It started its operations in India in 1995. Other major players were
Hansa Research, Indian Market Research Bureau (IMRB), iMrs, and Ipos. Multinational companies acquired Indian
research companies leading to globalization of the Indian MR industry. For instance, Nielsen acquired ORG-
MARG, Kantar acquired IMRB and TNS acquired MODE. 2 ORG was founded in 1961 and was the pioneer of retail
audit and readership surveys in India. Upon acquisition, ORG-MARG was renamed as AC Nielsen ORG-MARG
and subsequently Nielsen.
NIELSEN SOLUTIONS
Worldwide, Nielsen specialized in consumer products and services. Its key offers included µµUHWDLO PHDVXUHPHQW
VHUYLFH¶¶ (RMS), µµPHGLDPHDVXUHPHQWVHUYLFH¶¶ (MMS), µµFRQVXPHUSDQHOVHUYLFH¶¶, and µµFXVWRPL]HGUHVHDUFK¶¶
Retail and media measurement were two of its core businesses. It was the global leader in both of them. RMS
solution µµ6FDQ7UDFN¶¶ provided clients detailed information on sales, market shares, distribution, pricing,
1
Source: Global Market Research 2010, ESOMAR Industry Report Note: Based on KPMG analysis
2
,05%ZDVSURPRWHGE\+7$WKHFRXQWU\¶VODUJHVWDGYHUWLVLQJDJHQF\,05%ZDVODWHUDFTXLUHGE\.DQWDUZKLFKEHORQJHGWRWKH:PP group.
Marketing Operations Design and Enquiry Service (MODE) had been a major research agency in India when it was acquired by Taylor Nelson
Sofres (TNS), one of the one of the top five MR groups worldwide. Its key offerings were brand equity research and advertising evaluation.
2021.
merchandising, and promotions for various product categories across all retail formats ± supermarkets,
hypermarkets, mass merchandisers, convenience stores, small independent stores, drug stores, and liquor stores.
Nielsen was the sole provider of RMS in India. A team of its dedicated auditors visited 16,000 stores every month
with hand-held scanners to collect information about price and promotion across 78 product categories. Sales
volume was derived by deducting closing stock from the opening stock of each retailer. Auditors also observed
compliance by retailers of agreement with manufacturers regarding brand display, inventory, etc. Nielsen sold
annual subscriptions of the entire category for $4,000±$20,000 depending on the category. To attain greater
accuracy in extrapolation, Nielsen planned to increase the sample size to 48,000 stores by 2013. Justin Sargent,
Managing Director ± Consumer, Nielsen India Region said:
From RMS, we get data on sales, distribution, promotions, market share, etc. Analytics sits on top
of it. It builds models to answer questions about managing the marketing mix ± should the client
spend money on advertising or expand distribution or alter pricing?
1LHOVHQ¶V006PHDVXUHGQDWLRQDO79YLHZHUVKLSE\LQVWDOOLQJSHRSOHPHWHUVLQULJRURXVO\ selected representative

sample households. In real time, Nielsen captured electronically which channels, programs, and commercials were
being watched and by whom and when. Nielsen was the only company worldwide which could research both what
consumers µµEX\¶¶ as well as what they µµZDWFK¶¶ In India, MMS were provided by µµ7HOHYLVLRQ $XGLHQFH
0HDVXUHPHQW¶¶ (TAM), which was a joint venture with IMRB (Exhibit 4).
Consumer panel research µµ+RPHVFDQ¶¶ tracked the purchasing behavior of over 125,000 statistically representative
households in 24 countries through the use of in-home scanners. It revealed consumer purchases from all outlets
they visited. The purchase information was linked with demographic characteristics, media consumption, and
purchasing history of the household. It gave insights regarding penetration, buying rates, loyalty, purchase
frequency, demographics, inter-purchase intervals, repeat buying, and brand switching for the product categories.
Sargent said:
In India, we do not have consumer panel research as competition has it. In syndicated services like
these, there is no room for multiple services to coexist. Clients will not buy two reports. There can
only be one currency!
Customized research offered some of the most creative and cutting-edge products which integrated well with
1LHOVHQ¶V V\QGLFDWHG VHUYLFHV ,W RIIHUHG FOLHQWV VROXWLRQV LQ PDUNHWLQJ VWUDWHJ\ FRPPXQLFDWLRQ HIIHFWLYHQHVV
consumer attitudes, customer satisfaction, and brand equity. Rajiv Bagayatkar, Director ± Customized Research,
Nielsen India explained the research process:
After the client servicing team gets the project it designs the research including the questionnaire
which is then handed over to the data collection team. The filled questionnaires then go to data
processing team for analysis. It then comes back to the client servicing team that converts analysis
into insights for the client.
Sapna Shetty, Executive Director ± Global Business Services said:
Credibility is the key in our business. We have enough processes and systems in place to do the
back check of the data that is collected. We also standardize research across markets so that clients
get the same look and feel.
Another key driver of business was cycle time. In 2008 Nielsen introduced Business Process Improvement (BPI) to
reduce cycle time. Rajshree Dave, Director ± BPI said:
It is an ongoing exercise to identify areas of improvement in our business processes. For instance,
we removed the need for manual entry of data by launching Computer-Aided Personal Interview
(CAPI) that recorded interviews directly on computer thus reducing cycle time.
2021.
To reduce multiple touch points for the clients, Nielsen introduced µµ&OLHQW %XVLQHVV 3DUWQHUV¶¶ Vijay Udasi,
Executive Director, Client Business Partner said:
For our key clients, we have appointed senior people as µµ&OLHQW %XVLQHVV 3DUWQHUV¶¶ who work
with clients, identify their business problems and offer integrated solutions. This is a departure
from selling singular products to solving problems holistically.
CUSTOMIZED RESEARCH FOR PANTENE

The fall in market share of Pantene required a holistic approach. Nielsen decided to apply one of its comprehensive
solutions µµ:LQQLQJ %UDQGV¶¶ which analyzed the brand from multiple perspectives ± category issues; brand
challenges ± equity, loyalty, personality; marketing mix ± price, promotion, distribution; and consumer behavior
(Figure 1). Further, Nielsen combined µµ:LQQLQJ EUDQGV¶¶ with its syndicated research ± µµ5HWDLO 0HDVXUHPHQW¶¶
and µµ&RQVXPHU3DQHO¶¶ to recommend integrated marketing strategy for stemming the decline in market share.
Figure 1
Winning Brands
Source: Nielsen
Nielsen started off by analyzing the shampoo category. The category had market penetration of 98% and was
growing at the rate of 2.8% annually. Nielsen analyzed the category on two dimensions ± involvement and
experimentation (Figure 2). It found that consumers were highly involved with shampoos and purchased multiple
brands experimentally.
Figure 2
Category Typology
Traction Super Slippery
Shampoo
Involvement
Super
Traction Slippery
Experimentation
Source: Winning Brands
2021.
Nielsen then measured equity of different shampoo brands using its proprietary Brand Equity (BE) model
(Figure 3). The BE model formed the core of µµ:LQQLQJ %UDQGV¶¶ and was developed by Nielsen in 1997 with
Professor Kevin Keller of Tuck School of Business. According to the model, µµDZDUHQHVV¶¶ µµSXUFKDVH
FRQVLGHUDWLRQ¶¶, and µµDVVRFLDWLRQV¶¶ were the drivers of brand equity, which determined the extent to which
consumers µµSUHIHU¶¶ µµUHFRPPHQG¶¶, and pay µµSULFH SUHPLXP¶ µfor the brand. The BE score ranged from 0±10,
wherein 0 indicated that the brand was a commodity and 10 implied that the brand could charge any price premium
and still retain customers.
Figure 3
Brand Equity Model
Nielsen identified the relative importance of drivers of equity in the shampoo category and compared them with its
normative data base for FMCG (Figures 4 & 5). It found that µµDVVRFLDWLRQV¶¶ was the most important driver
followed by µµDZDUHQHVV¶¶
Figure 4
Drivers of equity in the Shampoo category compared with FMCG
2021.
µµ$VVRFLDWLRQV¶¶ in shampoos could be divided into four categories ± health/shiny, premium quality, emotive and
family. Out of these, health/shiny was the most important followed by premium quality and emotive appeal.
Figure 5
Associations as drivers of equity in the Shampoo category
Brand-wise analysis of associations revealed that Pantene was rated very high on µµVRIWDQGVLON\¶¶ and µµTXDOLW\¶¶
whereas Garnier was rated high on µµPDNHV RQH IHHO DWWUDFWLYH¶¶ and Palmolive as µµVXLWDEOH IRU ZKROH IDPLO\¶¶
(Figure 6).
Figure 6
Brand-wise brand associations
Imp Pantene VO5 Sunsilk Clairol Garnier Palmolive Wella H&S
Healthy/Shiny/Fragrance
Soft/Silky/ 0.48 13 ±2 0 2 7 ±5 ±1 ±4
Fragrance
Makes hair soft 0.48 12 ±4 ±2 3 6 ±4 ±1 ±3
and smooth
Gives hair body 0.45 14 ±3 0 1 6 ±6 ±1 ±3
and vitality
Makes hair shiny 0.41 12 ±3 0 1 6 ±6 ±1 ±5
Range of hair 0.41 12 ±3 1 2 10 ±8 4 ±9
care products
Cleans gently 0.41 4 ±1 ±1 2 6 ±2 ±1 ±1
Cares for colored
hair
2021.
Figure 6 (Contd.)
Leaves hair 0.37 8 ±1 1 4 7 ±7 2 ±8

smelling lovely
Has attractive 0.31 2 ±5 ±1 4 21 ±4 ±3 ±6
packaging
Premium Quality
Technologically 0.35 10 ±5 ±6 ±3 6 ±7 ±2 10
advanced
Is a salon quality 0.30 6 ±3 ±4 5 6 ±6 5 ±5
brand
Specialist hair 0.26 7 ±5 ±7 0 3 ±10 0 16
care brand
Emotive (Attractive)
Makes you feel 0.35 8 ±2 ±3 2 8 ±4 ±2 ±3
pampered
Makes you feel 0.35 6 ±2 ±3 2 10 ±4 ±1 ±3
attractive
Uses natural 0.20 -2 ±3 ±3 7 8 1 0 ±2
ingredients
For family
Is for the whole 0.15 ±5 ±5 7 ±4 ±5 22 1 ±7
family
µµ,PS¶¶ was the importance of the parameter for brand equity. It was the correlation of the parameter with Brand
Equity Index. Higher correlation meant higher importance of the parameter. Consumers were asked about each
brand, the extent to which they agreed on the parameter on a scale of 5. Positive score indicated differentiation
opportunities for the brand. Negative scores were not used for interpretation.
Nielsen then calculated equity of different brands and found that Pantene had the highest equity (3.5) followed by
Sunsilk (1.9) and Garnier (1.4). Its FMCG normative database showed that Pantene was among the top 15%
shampoo brands and had µµVWURQJ¶¶ equity, Sunsilk and Garnier were among the 16±49% brands and had
µµPRGHUDWH¶¶ equity and the rest had µµZHDN¶¶ equity (Figure 7).
2021.
Figure 7
Brand equity
4
3.5 Brand Equity Index
3.5
3
2.5
1.9
2
1.4
1.5
1 1 0.9
1 0.8 0.8
0.5
0
Pantene Sunsilk Garnier Wella VO5 Palmolive Clairol Head &
Shoulders
Nielsen also calculated brand equity according to age and rate of adoption and found that Pantene had higher equity
among higher age groups and mainstream people (Tables 1 & 2).
Table 1
Brand equity by age
Target Group by Age

Brand 18-20 21-30 31-40 40 +
Pantene 2.7 3.4 3.7 3.5
Garnier 2.1 1.8 1.3 1.2
Sunsilk 2.3 2.0 1.9 1.8
Clairol 0.5 0.9 0.8 0.8
Wella 0.5 0.6 0.9 1.2
Head & Shoulders 1.3 1.0 0.6 0.6
VO5 1.0 0.9 1.2 0.8
Palmolive 0.9 0.7 1.0 1.1
2021.
Table 2
Brand equity by rate of adoption
Brand Trend Setters Mainstream Stragglers
Pantene 3.40 3.60 3.15
Garnier 1.80 1.70 0.80
Sunsilk 1.95 2.00 1.85
Clairol 0.95 0.85 0.65
Wella 1.00 1.00 0.90
Head and Shoulders 1.00 0.80 0.85
VO5 1.00 0.95 0.90
Palmolive 0.90 0.85 1.30
The normative database of Nielsen showed linear relationship between brand equity and market share. Nielsen
IRXQGWKDW3DQWHQH¶VEUDQGHTXLW\ZDVLQSURSRUWLRQWRLWVPDUNHWVKDUHFigure 8).
Figure 8
Relationship between brand equity and market share
Brand Equity
Market Share
Source: Scan track & Winning Brands
Nielsen believed that not only behavioral loyalty but emotional loyalty was also important. Consumers may be using
the brand but the usage may be transient triggered by promotion, etc. Emotional affinity on the other hand was more
enduring and was manifested when consumer recommended the brand. Nielsen found that Pantene had strong
emotive loyalty (Figure 9).
2021.
Figure 9
Brand relationship hierarchy
Each stage was calculated as percent of total respondents. Nielsen does not calculate trialists
from only among considerers or considerers from only among those aware of the brand.
Nielsen wanted to identify the brands that Pantene was likely to face threat from. It identified brands having strong
affinity to each other in the consumers mind. It found that consumers who rated Pantene highly also rated Garnier
and Dove high (Table 3).
Table 3
Cross brand affinity
Pantene Sunsilk Garnier VO5 Palmolive

Pantene 98 113 100 87
Sunsilk 94ª 142 104 143
Garnier 127 73 154 0
V05 52 168 37 167
Palmolive 26 117 45 99
Clairol 74 106 261 72 118
Dove 184 106 81 45 147
Wella 53 121 47 51 168

a Is an index number ± base is 100. To be read by column. To be read as among those
who have high equity for Pantene what was the relative endorsement for other brands.
Indices of 120 and above generally indicate above-average skews and 80 and below
indicate below-average skews.
Nielsen then identified how consumers perceived brands on various personality dimensions by drawing a perceptual
map (Figure 10; see Appendix A for details on perceptual map).
2021.
Figure 10
Brand personality
Family-oriented
Palmolive
Garnier
Friendly
Traditional Fun
Sunsilk
Young
Feminine Fashionable
Down to earth ModernTrend setter
Genuine Caring Attractive
Pantene
Confident
Shy Elegant
Mature Wella
Knowledgeable
V05 Professional
Clairol
Head & Shoulders
It also drew a perceptual map for packaging of different brands (see Figure 11 for packaging and Figure 12 for
perceptual map).
Figure 11
Packaging of various brands
2021.
Figure 12
Perceptual map of packaging
Pantene
Opaque bottle
Pack can stand on its lid
Modern pack
Attractive shape
Garnier
Lid does not break off Durable pack Head & Shoulders
Easy to hold/use in shower
Pastel colors on pack label
Easy to open
Sunsilk
Bright colors on pack label V05
Old fashioned pack
Wella
Palmolive
27.5%
Clear bottle
49.5% Clairol
Nielsen believed that consumers were faced with choice overload and did not spend much time on making everyday
product decisions. Instead, they used simple rules of thumb that Nielsen called µµ2PHJD UXOHV¶¶ to make choices.
Once the rules were formed, they switched over to habitual auto-pilot shopping mode. Occasionally, the auto-pilot
mode got disrupted and consumers reevaluated their rules. They were called µµ'HOWD0RPHQWV¶¶ By understanding
how they occurred in a category, a brand could activate change by triggering Delta Moments. 3 These delta moments
could be in-store or pre-store. Nielsen found that switching over in the shampoo category was largely triggered by
browsing through several packs, promotion, and new brand variants and advertising (Table 4).
Table 4
Switch triggers
Omegas (A) Deltas (B) Switch Triggers (B±A)
IN-STORE
Promotion 10ª 30 20
Checked prices 20 34 14
Choose from special display 3 10 7
Browsed through several packs 6 32 26
Read several packs 4 22 18
Attractive packaging 1 5 4
New brand/Variant 0 20 20
Out of stock. Bought another 1 3 2
3
For instance, to open a bank account, the Omega rule could be that the bank should be close to home or it should be a salary account. Delta
moment could be a competing bank offering higher interest rates on savings.
2021.
Table 4 (Contd.)
Bought one at random 1 2 1

PRE-STORE
Auto pilot ± same one 100 0
Advertising 1 15 14
External regulator ± friend 1 4 3
External regulator ± family 15 15 0
External regulator ± daughter 1 5 4
a To be read as 10% of auto-pilot consumers checked promotion, whereas 30% of experimenters checked
promotion. Consumers could tick multiple triggers.
Nielsen then researched if the µµW\SH RI KDLU¶¶ and µµFRQGLWLRQ RI KDLU¶¶ had any correlation with the tendency to
experiment and found that greater percent of Delta consumers had colored, frizzy, and thick hair. Similarly, greater
percent of Delta consumers had mediocre and poor condition hair (Figures 13 & 14).
Figure 13
Shopping modality ± hair type
Frizzy 20
13
Fine 39
33
Colored 60
46
Thick 39
34
Wavy 39
36
Lifeless/flat 9
6
Dry 16
14
Curly 13 Deltas Omegas
11
Coarse 6
4
Permed/Straightened 3
2
Thinning 5
6
Straight 40
42
a To be read as 13% of the Omegas had frizzy hair, and 33% had fine hair. Hair types were not
mutually exclusive.
2021.
Figure 14
Shopping modality ± hair condition
56
Healthy/Good Condition
66
39
Mediocre condition
31
5
Poor Condition
3
0 10 20 30 40 50 60 70
Deltas Omegas
To be read as 66% of the Omegas had hair in healthy condition, 31% in
mediocre condition, and 3% in poor condition.
Nielsen then investigated the Omega and Delta profile of customers of different brands
(Table 5).
Table 5
Brand-wise shopping modality
Pantene Sunsilk Garnier V05 Palmolive
Omegas : 121 98 92 80 99
Deltas ' 90 101 104 110 101
Source: Winning Brands. It is an indexed score which is the average for shampoo categories
across all brands.
Nielsen then looked at the triggers that activated the purchase of Pantene (Table 6).
2021.
Table 6
Purchase triggers for brands

IN-STORE
Promotion 14ª 17 16 33 26
Checked Prices 21 30 31 44 44
Choose from special display 7 4 4 2 5
Browsed through several 21 24 25 17 21
Read several packs 15 13 20 12 15
Attractive packaging 0 1 11 1 7
New brand/variant 5 7 14 6 11
Out of stock, bought another 2 4 1 0 3
Bought one at random 1 1 2 0 1
PRE-STORE
Auto pilot - same one 64 47 32 38 37
Advertising 5 7 18 0 4
External regulator--
- friend 2 1 4 0 0
External regulator
- --family 12 18 11 27 21
External regulator
- -daughter 7 0 8 2 1
a To be read as 14% of those who bought Pantene were triggered by promotion.

Q: Here are some things that people do when choosing shampoos (17 statements were given): I bought a
brand on a special promotion; I read the labels; I was in rush so I grabbed one at random; I decide to try one
that had attractive packaging. The last time you bought Pantene, which of these things do you recall
happening? Pick as many or as few as you recall.
Nielsen then studied the appropriateness of the pricing strategy of Pantene. It mapped the actual retail price against
the consumer willingness to pay (Figure 15).
2021.
Figure 15
Price appropriateness
µµ5HWDLO SULFH LQGH[¶ ZDV FDOFXODWHG IURP 506 VWXG\ DQG µµZLOOLQJQHVV WR SD\ SULFH SUHPLXP¶¶
from winning brand questionnaire. Q: Please indicate which of these statements best describe how
much you would be willing to pay for Pantene (asked for brands the respondent would buy
regularly or would consider)? 1 - Whatever it costs; 2 - Even if it costs more than any other brand;
3 - I would buy even if it costs much more than the cheapest brand; 4 - Even if it costs a little more
than the cheapest brand; 5 - Only if it costs the same as the cheapest brand; 6 - I would not buy it
at all; 7 - 'RQ¶WNQRZ
Source: Scan Track & Winning Brands
It then looked at the impact of promotional activity of Pantene. Pantene and Garnier were not promotion-driven,
whereas Palmolive and VO5 were (Figure 16).
Figure 16
Impact of promotional activity
Promotion led purchase triggers
Source: Scan Track and Winning Brands. The relationship is linear. So, brands lying below the line
indicate that they are not promotion-driven. µµ3URPRWLRQ-OHGSXUFKDVHWULJJHUV¶¶ is the percent
of consumers reporting that the purchase is triggered by promotion.
2021.
Nielsen also analyzed advertising (see video ads http://hrm.iimb.ernet.in/iimb/advertisement/ of Pantene and
Garnier) and new variant activity of brands (Table 7).
Table 7
Activation
Advertising activation index 167 115 143 35 51

Ad recall 37 18 15 4 6
Brand Recall 22 16 11 12 12
Brand Cardio (% of new SKUs) 0 46 16 45 36
Advertising Activation Index was obtained by dividing ad recall share by brand recall. Brand cardio was
the percent of new stock keeping units (SKUs) introduced in the last 2 years.
Source: Scan track & Winning Brands & NMR
WHAT SHOULD PANTENE DO?

Based on the market research findings, Nielsen wondered what marketing strategy should be recommended to
Pantene. What changes should be made in the marketing mix to reverse the decline in the market share of Pantene?
More so, the client had set an aggressive long-term growth target of five share points. How could Pantene achieve its
targets?
2021.
Exhibit 1
Market shares of brands
25 22.5
20
20
15 11 10.4
8.9 9 7.5 7.1 7.6 6.4
10 5.9 5.8
3.9 5.3 4.2
5 0.8
0
2004 2005
Source: Scan track
Exhibit 2
Key financials of select companies ± 2009
Nielsen ($ IMS Health Arbitron Inc. ($ Ipsos (Euro GfK (Euro
millions) Inc. ($ million) million) million) million)
Parent Country USA USA USA FRANCE GERMANY
2009 2010 2009 2010 2009 2010 2009 2010 2009 2010
Revenues 4808 5126 2190 2212 385 395 944 1141 1165 1294
Cost of revenues 2023 2129 1257 - 196 215 354 418 813 872
SGA 1523 1648 662 - 82 75 501 603 250 268
Other expenses 1146 619 - - 52 52 2 3 36 37
Operating Profit 116 730 271 - 55 66 87 117 89 137
Interest expenses 644 660 - - 1 1 - - 23 28
Loss from continuing ±427 154 - - - - - - - -
operations
Net Income/loss ±488 132 260 - 43 45 58 73 61 84
Equity/Liability 0.2 0.3 0.0 - 0.2 0.5 0.9 0.9 0.6 0.7
Net income as % of ±10.1 2.6 11.9 - 11.2 11.4 6.1 6.4 5.2 6.5
Revenues
No. of full time 34,000 34,000 7250 - 971 951 8,761 9,498 10,058 10,377
employees
Net income/Employee 4,353 3,882 35,862 - 44,284 47,319 6,620 7,686 6,065 8,095
Source: Global Market Research 2010 and 2011, ESOMAR Industry Report
2021.
Exhibit 3
Country-wise market research spends
Country Turnover ($ million) MR spend per capita Ad spend per capita
2009 2010 2009 2010 2009 2010
USA 9,462 9,915 27.84 31.98 515.8 447.64
UK 3,248 3,185 52.55 51.19 433.71 354.80
Germany 2,897 2,889 35.32 35.40 348.30 291.00
France 2500 2533 42.94 40.24 272.55 253.91
Japan 1,769 1916 13.87 15.03 328.49 334.85
China 974 1,114 0.69 0.83 42.76 15.64
Italy 757 771 12.66 12.77 225.85 193.53
Brazil 540 815 3.07 4.22 59.75 54.48
Australia 576 657 18.76 29.56 525.87 542.62
South Korea 295 338 6.05 6.90 - 95.30
Russia 258 315 1.83 2.24 73.26 55.86
India 174 197 0.16 0.16 6.27 3.78
Thailand 114 135 1.70 2.11 - 48.79
Source: Global Market Research 2010, ESOMAR Industry Report
2021.
Exhibit 4
Organization chart of Nielsen India
Source: Nielsen
2021.
Appendix A
A perceptual map, such as shown in Figures 10 and 12 depicts how consumers µµVHH¶¶ brands on various
dimensions. For Exhibit 10, consumers were asked to rate each of the 8 brands on 19 personality dimensions on a
scale of 1±10. Rating 8 brands on 19 dimensions yields 152 numbers. Perceptual mapping finds the best way to
show in two dimensions the information content of the 152 numbers. It uses the statistical techniques of factor
analysis or multi-dimensional scaling. Arrows pointing in the same general direction show attributes that are highly
correlated with one another.
To see where a brand lies on a given attribute, one must envision a line from the brand perpendicular to the attribute.
For example, consider the attribute µµ)DPLO\-RULHQWHG¶¶ DQGµ3DOPROLYH¶IURPFigure 10.
Palmolive
Family-Oriented
The dotted line projects Palmolive back on to the µµ)DPLO\-RULHQWHG¶¶ attribute. To see where Head and Shoulders
lies on Family-oriented attribute, we have to extend the µµ)DPLO\-RULHQWHG¶¶ vector back through the origin and then
drop the line perpendicular to the vector. Perceptual maps usually extend a vector from the origin in only one
direction, so that the map does not become too cluttered.
Palmolive
Head and Shoulders
7KXVZHVHHWKDW3DOPROLYHLVUDWHGKLJKHURQWKHGLPHQVLRQ³)DPLO\-RULHQWHG´WKDQ+HDGDQG6KRXOGHUV
2021.

Neilson Market Research On Pantene

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IMB 419

NIELSEN: MARKET RESEARCH FOR PANTENE

MARKET RESEARCH INDUSTRY

1LHOVHQ¶V006PHDVXUHGQDWLRQDO79YLHZHUVKLSE\LQVWDOOLQJSHRSOHPHWHUVLQULJRURXVO\ selected representative

Sapna Shetty, Executive Director ± Global Business Services said:

CUSTOMIZED RESEARCH FOR PANTENE

Source: Winning Brands

Source: Winning Brands

Source: Winning Brands

Leaves hair 0.37 8 ±1 1 4 7 ±7 2 ±8

Source: Winning Brands

Source: Winning Brands

Target Group by Age

Source: Winning Brands

Source: Winning Brands

Source: Scan track & Winning Brands

Source: Winning Brands

Pantene Sunsilk Garnier VO5 Palmolive

Clairol 74 106 261 72 118

Dove 184 106 81 45 147

Wella 53 121 47 51 168

Source: Winning Brands

Source: Winning Brands

Source: Winning Brands

Source: Winning Brands

Bought one at random 1 2 1

Source: Winning Brands

Source: Winning Brands

Source: Winning Brands

Deltas ' 90 101 104 110 101

Pantene Sunsilk Garnier VO5 Palmolive

a To be read as 14% of those who bought Pantene were triggered by promotion.

Source: Winning Brands

Pantene Sunsilk Garnier VO5 Palmolive

Advertising activation index 167 115 143 35 51

Brand Cardio (% of new SKUs) 0 46 16 45 36

Source: Scan track & Winning Brands & NMR

WHAT SHOULD PANTENE DO?

Source: Scan track

Source: Global Market Research 2010, ESOMAR Industry Report

Head and Shoulders

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