Hey!

Welcome to P&G! I'm so glad that more and more young and ambitious people like you are joining our
team!
My name is Sam, and I will be your mentor during your internship. I'm so excited that you're joining
our Hair Care team! You can ask me any questions concerning working at P&G in general and the
work we do in Hair Care, which is one of the Beauty and Personal Care categories and one of the
highest revenue generating segments of the company.
The plan is that you'll join the Pantene team and will help your colleagues work on a significant
marketing challenge to reposition Pantene in order to attract a younger audience (15-25 years old)
and therefore increase the sales value by 2020. I do hope that you'll enjoy it.
Unfortunately, I'm out of office today because I'm taking part in a major International Brand
Management conference. But please don't worry! I've got some really exciting tasks planned for you,
which will allow you to immerse yourself into our world and get prepared for the big challenge we must
handle at Pantene. Meanwhile, you can dive into the topic and look through some market insights.
You certainly know that Procter & Gamble is the world's second largest Beauty and Personal Care
company, accounting for 8% of the global market value share. Beauty is the company's second
leading business portfolio after Fabric and Home Care. You may also know that P&G has the largest
lineup of leading brands in its industry, with 23 brands with over $1 billion in annual sales (our so-
called “billion-dollar brands”). There are 2 “billion-dollar brands” that belong to the Hair Care portfolio.
Those are Head & Shoulders and Pantene.
P&G reshaped its global Beauty and Personal Care landscape when it divested more than 40 brands
to a rival group in 2016. Two years later, P&G is rationalizing its portfolio by capitalizing on its major
brands and acquiring niche challengers, thus increasing the sales growth rate. But its market share is
still falling in some categories.
Expanding is a daunting task when one is already a major player. Procter & Gamble is currently
experiencing this challenge in its pursuit of a new growth dynamic. Developed markets with slow
growth are still the company's key markets. P&G's BPC1 share in North America and Europe has
reduced from 27.4% to 25.5%, mainly due to slowing sales in the US. P&G's share in developed
markets tends to rely on well-established brands with high unit prices, giving few immediate
opportunities for growth to the company.
The Beauty segment of the Company is currently facing strong competition from indie (independently
funded) brands. Young consumers are not loyal, they want a more personalized approach, which
indie brands can provide since they have more possibilities to launch new and expensive products
with higher speed of market entry. Indie brands make more use of social media, while Pantene and
other more traditional hair care brands' preferred advertising channel is TV. For indie brands this
choice is also influenced by budget whilst TV for established brands ensures high reach in the total
population. Finally, Pantene relies on traditional offline sales channels.
With this in mind, what I'd like you to do is to review the data and find possible solutions for the
challenges the company, and the Pantene brand in particular, are currently facing. On Monday, we
will have a team meeting where we will discuss findings, and I'm looking forward to hearing your
ideas.
In order to immerse you in the subject, I'd like to share some information on the key market trends
and the Pantene brand's key strengths and current challenges. Please email me if you have any
questions!
See you!
Sam Miles
Pantene Regional Sales Manager

Question 1 (Sales): According to Sam’s letter, which assumption is definitely right for P&G? Choose
all answers that apply.
(Required)
Acquiring niche brands is a winning strategy in terms of boosting sales
The company has chosen a strategy to shift from developed markets to emerging markets because
they have more potential
P&G's traditional hair care brands lack a personalized approach that young consumers want
P&G has more billion-dollar brands than any FMCG company in the industry

About P&G
The Procter & Gamble Company is focused on providing branded consumer packaged goods of
superior quality and value to improve the lives of the world's consumers. The company was
incorporated in Ohio in 1905, having been built from a business founded in 1837 by William Procter
and James Gamble.
The company's purpose to improve the lives of its consumers today delivers this for 5 billion
consumers in 180 countries through its leading, billion-dollar brands.
The company's 65 individual brands are organized into 5 business segments:
 Fabric & Home Care
 Baby, Feminine, and Family Care
 Beauty
 Health Care
 Grooming
The business model relies on the continued growth and success of existing brands and products, as
well as the creation of new innovative products. The markets and industry segments in which P&G
offers products are highly competitive. P&G products are sold in more than 180 countries and
territories primarily through mass merchandisers, e-commerce, grocery stores, membership club
stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores,
high-frequency stores and pharmacies. P&G's top ten customers accounted for approximately 36% of
total sales in 2018 and 35% in both 2017 and 2016. Its growth strategy is to deliver meaningful and
noticeable superiority in all elements of P&G's value proposition - product, packaging, brand
communication, retail execution and value equation.
P&G Today
The 2019 fiscal year met or exceeded each of the core financial goals — organic sales growth, core
earnings per share growth and adjusted free cash flow productivity. Organic sales grew 5% which was
above expectations.
The company focused on growing where consumers shop — whether that's in-store or online. This
year, P&G grew its organic sales by 25% in e-commerce, the fastest-growing retail channel around
the world. Online sales now account for about 8% of P&G total sales.
P&G also provides a superior experience in-store. An independent benchmarking survey that
measures retailer perceptions of manufacturers across seven key focus areas ranked P&G #1 for the
fourth year in a row.In 2019 core earnings per share were $4.52, a 7% increase and toward the high
end of the target range.
P&G delivered strong free cash flow results, generating $15.2 billion of operating cash flow. All six of
P&G regions had organic sales growth. In the US, sales grew 4%, including 7% in the last quarter,
after averaging about 1% over the past three fiscal years. In Greater China, the company grew 10%
with double-digit across Fabric Care, Feminine Care, and Skin & Personal Care categories.
The company improved market share trends in eight of 10 global product categories throughout the
year.
P&G is one of only 10 US companies to pay a dividend for more than 120 consecutive years. The
company had 63 years of dividend increases.
P&G makes major investments to ensure its supply chain remains a competitive advantage. A
synchronized network based on real-time demand signals is serving the evolving needs of consumers
and customers.
To deliver productivity across supply chain P&G makes improvements in four ways:
Multi-Category Manufacturing Sites. P&G plants supply several categories of goods, in accordance
with the demand for them. Consumer purchases trigger updates to our manufacturing schedules in
plants and orders of materials to suppliers. Robotics and digitization make savings. For example,
automated loading and unloading enables lower inventory. All these technologies used at the newest
P&G plants are globally scalable.
Digitized Planning. P&G reduced the number of planning sites to eight vs. 300 sites eight years ago.
They become much more effective and now can support a new request from a customer for an
incremental order in less than one hour, which once required 24 hours or more.
Supplier Integration. Co-locating suppliers in plants reduces truck traffic and distribution cost.
Increased synchronization of P&G's operations with our suppliers leads to lower inventory and other
costs.
Customer Collaboration. The newest U.S. mixing centers put 80% of shipments within 24 hours of
retailers. It leads to higher in-stock levels and lower cost of goods.
Question 2 (Finance): What is TRUE about P&G sales in 2019?
(Required)
Sales in Asia Pacific were 2% lower than sales in IMEA (India, Middle East & Africa)
Sales in North America were almost equal to sales in Europe, Asia Pacific and Greater China together
Net Sales of Europe in 2019 were about $18 billion
Regardless of the similar number of brands, Net Sales in the Beauty segment for 2019 were 7% lower
than that of Baby, Feminine & Family Care

Question 3 (Finance): Which segment accounted for the biggest % of Net Sales?
(Required)
 Fabric & Home Care
 Beauty
 Baby, Feminine and Family Care
 Hair Care
Question 4 (Logistics): Which of the following is TRUE about P&G's distribution model?
(Required)
The company is planning to get rid of the intermediaries and gradually shift to direct-to-consumer
model in e-commerce 
Customers such as mass merchandisers, grocery stores, drug stores carry the shipping and handling
costs when purchasing goods from P&G, since P&G is their #1 manufacturer
Customers can get finished goods for sale directly from the manufacturing site
Consumers bring revenue streams both to customers and P&G

Question 5 (Logistics): Which of these statements is TRUE about P&G Supply Chain?
(Required)
Multi-Category Manufacturing Sites are top notch technologies developed by P&G and are scalable
for other regions
Even though the number of planning sites has grown over the past two years, digitized planning
technology has helped the company optimize its usability
Lower cost of goods has been achieved through the implementation of digitized planning
Consumer purchases trigger updates to P&G manufacturing schedules in plants and orders of
materials to suppliers. Used at its Multi-Category Manufacturing Sites it helps the company supply
goods according to actual demand

P&G Major Hair Care Brands

P&G is the global market leader in the retail hair care market with almost 15% of the global market
share, primarily through the Pantene and Head & Shoulders brands.
Pantene
Pantene is a global hair care brand, which includes a full line of protein-enriched hair products.
Pantene got its name from “panthenol” (pro-vitamin B-5), which was developed in 1940 in Switzerland
and was used to treat burns during WWII. Pantene shampoo first launched in Europe in 1945.
Pantene provides one-stop service offerings for all issues related to hair. Pantene recognizes that the
hair shampoo market is crowded so it differentiates by investing in consumer satisfaction by providing
professional care solutions.
Pantene is sold in around 100 countries all over the globe and wherever it's sold, the brand features a
different product depending on the needs of that specific consumer base. Pantene also has a money-
back guarantee, offering refunds to those consumers who are not satisfied with the product.
Pantene targets people looking for affordable hair care and has product offerings for the middle and
upper-class groups. It also has come up with products using behavioral segmentation with the
benefits sought, for instance, they have created a product range known as “oil replacement” for the
segment of people who find importance in oiling their hair and it is exclusively targeted towards the
Indian market.
Also, shampoo ranges like Deep Cleanse, Curl Perfection, and Repair & Protect have been created
through the understanding of different buyer types. Pantene's current target audience is women from
20 to 49 years old who are proactive in living a healthy lifestyle and also feel confident when their hair
looks good. It positions itself as a product that is an affordable alternative to salon brands. In 2006, it
repositioned itself as a brand that helps women 'shine'. A Product that helps bring out a woman's
inner shine, with the help of her outer shine that the shampoo provides. Over the years Pantene has
launched many specialized product series like Intense Rescue Shots, Pro-V Blends, Waterless
collection, etc.
Pantene aims at superior retail execution. With the store coverage, right product forms, sizes, price
points, shelving and merchandising Pantene wins offline, and with the right content, assortment,
ratings, reviews, search and subscription offerings Pantene wins online. In 2019, Pantene was
leveraging shelf sets that have been successful in Latin America, featuring hair treatments and
conditioners in golden bottles to encourage a regimen. Where executed, category growth has nearly
doubled.
Currently, Pantene is widely available in much of the world. Priyanka Chopra and Selena Gomez are
the current global ambassadors for Pantene. There are Pantene ambassadors for specific countries
like France, India, Thailand, Korea, Russia, etc.
Head & Shoulders
Head & Shoulders launched in 1961 with a proprietary formula clinically proven to reduce dandruff.
Head & Shoulders has been able to gain consumer trust due to the quality of its products. The brand
deals in products targeted at the anti-dandruff segment keeping smooth and beautiful hair. It offers
products for men, women and products that can be used by everyone irrespective of gender. These
are for dry, itchy and sensitive scalps, for relief against dandruff and also for severe scalp conditions.
Head & Shoulders has always been on the brink of a price war with rival companies. It faces stiff
competition with several competitors and hence has kept its prices on par through adopting a
competitive pricing strategy. It has also kept a penetration policy so that it can reach towards new
markets and gain further consumers. Head & Shoulders relies on its reasonable pricing strategy to
attract and maintain the loyalty of its consumers as its products are affordable. Moreover, they are
available in different sizes so that a person can easily make purchases according to their personal
needs. The brand also advocates a promotional pricing strategy during the summer season by
offering discounts and incentives. As sales during that time are higher, it results in larger volumes and
greater revenues.

Question 6 (Marketing): According to the data above, which idea will be the MOST appealing to
Head & Shoulders team in terms of strategic development?
(Required)
 Increase the prices and reposition the brand as premium
 Introduce a product for shiny hair 
 Optimize the shipping costs
 Switch to men as primary target audience

Question 7 (CMK): You have several consumer profiles. Whom would you choose to target Pantene
ads? You can choose several answers.
(Required)
 An active, looks-conscious 55-year old woman suffering from dandruff 
 A 25-year old man suffering from oily scalp 
 An active, looks-conscious 30-year old man who needs to have his hair shiny and smooth
 A 40-year old woman who wants to recover her damaged hair

Global Hair Care Market

Market Dynamics
The hair care market is part of the Beauty and Personal Care market. It contains such segments as
shampoos, conditioners, oils, sprays, hair colors, etc.
Since its products are always in high demand, Hair Care remains one of the most competitive
segments of the Beauty and Personal Care market. Characterized by the significant role of minor
players (companies with less than 1% of total sales), it is  very volatile. The considerable number of
players that enter and leave the market every year, combined with the dependence on health issues
and regional conditions, contribute a lot to heavy fluctuations – especially regarding non-premium
segments.
An example is the mass segment plunge that took place in 2015. Primarily due to the unstable
environment in Latin America (where sales in one year have reduced by 20% over one year), this fall
was also an aftermath of the European consumers' changing attitudes towards hair care. These
reasons were widely different, but they both had a strong influence on the market, triggering a $7.7
billion slump.
Source: Euromonitor International
In 2018, the value of sales reached $77.3 billion. The market is rapidly gaining momentum, which
converts into positive forecasts for the nearest five years. Market analysts predict that during this
period, global sales of hair care products will rise by 5% every year (given the current situation), which
roughly matches the current rate of recovery.
Market Trends
Among the main trends observed in the hair care market over recent years, three tendencies may be
distinguished: a growing share of the premium segment, the increasing popularity of indie brands, and
the rising number of products sold online.
It is easy to agree that the diminished sales of mass products observed in 2015 became the main
driver of the premium segment's enlarging market share. Still, it is not the only reason why premium
hair care started to prevail over mass products. Above all, it is strongly connected with the modern
lifestyle. People are starting to pay more attention to their health and to put a lot of money towards
making themselves feel and look good. As proof, in the past four years, sales of hair care products
generated through health and beauty retailers (drugstores, pharmacies, etc.) have been on the rise
and amounted to $22.3 billion in 2018, while in 2015, it was $20.9 billion. This increase, together with
the rising number of sales through grocery channels, may be considered as indirect evidence of the
fact that people try to use more sophisticated, non-supermarket offered, hair care products. Apart
from health-consciousness, the rising share of premium products can be explained as a consequence
of a sustainable increase in global welfare, which provides people with money to buy products that are
more expensive. Therefore, hair care market forecasts predict a steady development of the premium
segment.
Source: Euromonitor International
The next two trends are highly interconnected. From the definition, indie brands are small
independently funded enterprises, which concentrate on one specific segment of a particular market.
Due to financial limitations, indie brands often look for innovations – whether they are in
manufacturing or any other field of operation. As for marketing, such companies target the audience
via the internet, mostly using advertising on social networks. Hence, they have a significant reason to
sell their products online – as their prospective consumers are online too.

Source: Euromonitor International

It is easy to notice that between 2014 and 2016 indie brands' share of the global market was
reducing, so it may appear that there was no indication that these smaller brands would gain
popularity. However, the market decline in 2015 in fact had a much worse influence on indie brands
than on major market players – mainly because of their undiversified portfolio and the impossibility of
benefiting from the economy of scale. The number of companies plummeted, and it took some time
for the indie segment to recover.

Source: Euromonitor International

As indie brands mostly work online, they have a competitive advantage when compared to other
market players. The fact is that online sales have become the only distribution channel to show stable
annual growth. Over six years, they have risen from $2.2 billion in 2013 to $5.7 billion in 2018.
Nevertheless, for some products the online channel is not very convenient. For example, not many
people will purchase premium hair care products from internet retailers, as they are not able to check
the product before delivery.

Question 8 (Sales): Approximate the difference between the global sales volumes of premium hair
care in 2013 and 2018.
(Required)
 $0.5 billion
 $0.8 billion
 $1.1 billion
 $1.4 billion

Question 9 (Marketing): Given the data, calculate the forecasted value for the size of hair care
market in 2020 in $ billion. Round it off to one decimal place.
(Required)

Question 10 (Logistics): Regarding the global hair care market for the period 2013-2018, which of
the following facts are true? You can choose either one or several answers.
(Required)
 The online channel is possibly the best option for small brands
 Sales through grocery channels increased by 4–7%
 Traditional sales showed better results than e-commerce
 Pharmacies improved their sales performance

Question 11 (CMK): Market analysts enlisted the grounds for enhancing the market share of
premium hair care. Find a logical mistake they made.
(Required)
 People have purchased fewer mass products
 People began to take control of their health
 People bought more from indie brands
 People started to earn and spend more money

Regional Hair Care Markets

There are different approaches for distinguishing particular regional markets. As for P&G, the
company operates in six regions, which are: Asia Pacific, IMEA, Europe, Greater China, Latin
America, and North America.

Source: Euromonitor International

Source: Euromonitor International

Asia Pacific includes big Asian markets such as Japan, South Korea, etc., along with Australia and
New Zealand. With $13.8 billion generated in sales through the hair care market in 2018, it holds a
leading position on the global hair care market. As grocery retailers are still the dominating power on
the market, with lesser influence from other channels, Asia Pacific stands out as a region where large
companies prevail over small businesses due to well-developed distribution networks.  
IMEA, is a region that has a fast-growing hair care market. Although it currently has the second
smallest sales value out of all the regions ($9.1 billion in 2018), it has a lot of potential and, according
to forecasts, by 2023 it may have almost doubled and become equal to the North American market.
One interesting feature of IMEA is that seasoned companies are less competitive in the region, since
local conditions require market players to provide personalized services. For instance, this is relevant
to the Middle East and Africa where consumers need products designed for harsh weather conditions.
Therefore, this market is more suitable for smaller manufacturers, giving them almost 1/3 of the whole
market. This is the best result globally. 
Europe includes both Western and Eastern Europe, with the largest markets being Germany, France,
the United Kingdom, Russia, Italy and Spain. Once the perfect place for the promotion of hair care
products, the region is now experiencing issues with shifts in consumer preferences. The trend for
natural ingredients has sparked arguments about the chemical components used in hair care
manufacturing and has made people refuse some mass products such as low- and medium-priced
shampoos. As a result, sales in the region dropped from $22.3 billion in 2013 to $17.6 billion in 2016.
In 2018, sales amounted to $18.9 billion. 
Greater China includes China and some neighboring territories. China is such a large market that it is
comparable to whole regions made up of several countries. However, it is the smallest of all in terms
of market sales with $8.8 billion in 2018, though it is projected to grow faster over the next 5 years. A
characteristic of this market is premiumization: along with growing income, consumers are showing
higher interest in premium products and salon professional hair care. Chinese consumers are
increasing their hair routine and the product range for them is extending.  
Latin America is the most mysterious region in terms of market dynamics. In spite of a clear tendency
to deal with large corporations, consumers are often disappointed with their services and may turn to
local manufacturers. Therefore, the ratio between locals (especially, indie brands) and multinationals
is highly volatile. As for actual values, the market has not recovered from the crash of 2015 when
sales collapsed from $16.5 billion to $12.9 billion. The recent figures (2018) are $12.1 billion.
North America, with its sales volume of $14.4 billion, remains the most stable market out of all six. It
slightly grows almost every year, with rare declines not exceeding 1-2% of total sales. This region is
particularly interesting, as consumers' preference for natural components goes hand in hand with their
craving for technological innovations. As not many small enterprises can meet both needs, the market
is mostly loyal to major players.
Question 12 (Sales): Based on the provided data, choose the region where P&G had the lowest
market share in 2018.
(Required)
 Latin America
 IMEA
 North America
 Europe

Question 13 (CMK): Choose all true statements from the list below, based on the text.
(Required)
 Asia Pacific and North America provide the best market conditions for large companies
 In the next 5 years, IMEA will be the fastest-growing market in the world
 Consumers in Europe and North America have the same requirements for hair care products
 The markets in both Latin America and Europe suffered from drastic falls and still cannot recover

Question 14 (Marketing): Select the market with the lowest growth rate for 2019–2023, based on the
forecasts.
(Required)
 Greater China
 Europe
 Latin America
 North America
Question 15 (Logistics): Imagine you are making a strategic decision for the construction of a new
Pantene plant. Based on the data above, where would it be?
(Required)
 IMEA
 Latin America
 North America
 Europe

*Question 16 (Tự luận) Suggestion on how P&G can win back competitiveness, especially in the Hair
Care segment?

*Question 17 (Tự luận): Không nhớ :/