PROCTER & GAMBLE

The Procter & Gamble Company is an American multinational consumer goods

corporation headquartered in Cincinnati, Ohio, founded in 1837 by William
Procter and James Gamble.
The Procter & Gamble Company is focused on providing branded consumer
packaged goods to the consumers across the world. They know people care
about what goes into the products they use every day, and we want consumers
to be informed and confident in their choice to place P&G product in their
basket. The Company operates through some segments: Beauty; Grooming;
Health & Oral Care; Fabric & Home Care, and Baby, Feminine & Family
Care.
P&G serves consumers around the world with one of the strongest portfolios of
trusted, quality, leadership brands, including Pampers, Ariel, Tide, Whisper,
Gillette, Pantene, Head & Shoulder, Herbal, Ambi Pur, Oral-B, Vicks, and
Olay...
TYPES OF CONSUMER BUYING BEHAVIOUR AND THE
CONCEPT OF INVOLVEMENT:-
Here we are taking a product of P&G i.e. HEAD AND SHOULDER for
explaining the topic.

The Management of PROCTER & GAMBLE once stated:"

Our business is based on understanding the consumer and providing the kind of
products that the consumer wants. We place enormous emphasis on our product
development area and our marketing area, and on our people knowing the
consumer." The human mind is the most complex entity in the whole universe
as it is very unpredictable how a person would behave in or react in a particular
situation. A person's behaviour changes from place to place and situation to
situation or, says it is very inconsistent. The person when has a need, is willing
and able to satisfy the need is called a CONSUMER. The consumer would go
different ways to satisfy its needs depending on his social, cultural, family,
economic and educational background. Consumer is the principle a priori of
business. The efficiency with which a free market system of enterprise operates,
depends upon the extent of consumer understanding possessed by the business
community. A business community that is ignorant of consumer preferences
cannot possibly fulfil its obligations in a meaningful and responsive manner. So
here comes the need to study CONSUMER BEHAVIOUR. Consumer
Behaviour is broadly defined as "the behaviour the consumer displays in
searching for, purchasing, using and evaluating products, services, and ideas
which they expect will satisfy their needs." Consumer Behaviour is not only the
study of what people consume, but is also the study of who the consumers are,
why they consume, how often they consume, and under what conditions they
consume. CONSUMER BEHAVIOUR refers to the buying behaviour of
ultimate consumers, those persons who purchase products for personal or
household use, not for business purpose.

This report provides an analysis and evaluation of P&G’s

hair care line, 'Head & Shoulders'. With 'Head & Shoulders' new marketing
campaign, this report analyses the effectiveness of this campaign in comparison
to the ever growing competition of other anti-dandruff hair care products in the
United Kingdom (UK). The report also provides recommendations for
increasing awareness of the 'Head & Shoulders' brand and how it could stand
out among competitors. The research draws attention to the fact that 'Head &
Shoulders' is a low involvement product that deals with a problem (anti-
dandruff) that is embarrassing for consumers. In the focus groups held for the
analysis, 75% of the participants answered "Head & Shoulders", when asked "if
you were looking to buy an anti-dandruff shampoo, which brand would you
purchase?” It was also found that in comparison to three other popular anti-
dandruff brands, 'Head & Shoulders' ranked the first among the consumers
surveyed. In addition, 'Head & Shoulders' is easily identified by consumers in
terms of physical attributes and function of the product. Plus, 90% of one of the
focus groups had a positive impression of 'Head & Shoulders' products.

It could be found in the world that about 50 per cent of the people suffer from
dandruff once in their lifetime and the brand Head and Shoulders has able to
improve their marketing strategy by providing proper care to their customers.
The main thing for head and shoulders is the brand endorsement with associated
and robust names that helped them to penetrate the market more easily for
extended and new brands. In India, the hair care industry is gaining the massive
amount of growth, and for this reason, the competition has become much stiffer
than the previous time.
LATEST MARKETING RESEARCH/TRENDS HAPPENING INTHE P
& G INDUSTRY:-
STP- SEGMENTATION, TARGETING AND POSITIONING
OF HEAD & SHOULDER:-
SEGMENTATION TARGETING POSITIONING

Geography- Targeting involves communicating how

counttry, state,city deciding which of youe brand is
Demoghrphy-age, the segments you different from the
gender,income group have idetified is competing brands.
psychographic- themost attractive.
personality,attitude,opi Identify target
nions,activities,lifestyle audience with the
interest help of our unique
Behavioral- selling point.
loyal,festival,occasiona
lly

STP OF HEAD & SHOULDER:-

TARGET GROUP

SEGMENT higher middle class POSITIONING

Anti dandruff segment
with smooth hair
people who are brand Removing dandruff
conscious, early and nourishing hair
adaptors and who care
about the overalln
healthof their hair

There are Psychological Theories that help us to understand and predict the
effect of all external and internal factors on a consumer. External factors include
Culture, Society, Reference group and family etc. Internal factors comprise in a
consumer mind and how consumers leaning, memory, attitude, personality,
lifestyle and motivation levels effect consumer behaviour. What would initiate a
buying process and how a buying decision would end is all covered under the
study of consumer behaviour. This all further helps relate product / service,
price and promotion etc. with consumer behaviour. Thus organisation can place
marketing mix so as to propagate their product/services. The present study on
SHAMPOO is also trying to find Consumer Perception about different features
of Shampoos and how Price, Environment, Packaging. Quantity, Easy
Availability and Variety are affecting the sale of Shampoo's.

 Segmentation, Targeting and Positioning of Head & Shoulders

Head & Shoulders is implemented on a niche market. Therefore, the company

cannot reach all the consumers on the shampoo market, and convey its
marketing message to all consumers with the same efficiency. It is in the brand
best interest to identify the consumers that are the most likely to buy the product
and generate the maximum profit. Therefore, the marketers identify and select
several market segments in order to develop adapted marketing campaigns for
each of them. The consumer’s segmentation groups the consumers according to
specific criteria’s (demographic and economic criteria’s, preferences and
consumption habits.) Thus, four types of segmentation can be distinguished:
Geographic, Psychographic, Demographic and Behavioural.

Segmentation -

Geographic : The first segmentation type is geographic. Geographic

segmentation is a process of making groups of customers based on where they
are located in the world. Head and Shoulders created geographic segments in
order to focus on a specific area. The marketers can improve the rent ability of
the marketing campaign and product features by matching the strategies to the
customers of different regions, cities and countries. Moreover, the segmentation
of the target market geographically helps to identify where the consumers or
more buyers of a specific product are located. It also allows the company to
adapt their promotion to different scale of population such as local, national and
international customers according to their preferences. The geographic
segmentation also allows differentiating the specific needs of rural and urban
customer towards the same product.

DEMOGHRPHY- Adults and children up to 2 years of age—Use once a day

as a shampoo on the scalp at least two times a week; however, may be used
every day. Apply to wet hair and leave on the scalp for several minutes or
massage into scalp vigorously before rinsing. People exhibit many more
lifestyles than are suggested by the seven social classes. People's product
interests are influenced by their lifestyles. In fact the goods they consume
express their lifestyles. Marketers are increasingly segmenting their markets by
consumer lifestyles. Companies making cosmetics, alcoholic beverages, and
furniture are always seeking opportunities in lifestyle and income segmentation.
Its available in market easily and in a reasonable price and on3 can buy it easily.

 PSYCHOGRAPHIC- In psychographic segmentation buyers are divided into

different groups on the basis of lifestyle and \ or personality. People within the
same demographic group can exhibit very different psychographic profiles.
These psychographic bases are often difficult to measure, but they offer
potential rewards in terms of providing management with a more relevant basis
for differentiating between segments of a market.

TARGETING:-

The target market for H&S are the higher middle class people who are brand
conscious, early adopter and who care about the overall health of their hair.
H&S targets the people of middle age men (in the beginning) having scalp and
dandruff problems. At the initial period of its marketing strategy, it showed
advertisement which shows the facts with only one use of the product, the
shampoo gives almost 100% relief from shampoo. It introduced many other
features like menthol, volume boost, and hair-fall therapy for the college going
youth and young professional with hair conscious. H&S took the advantage of
physiological mentality of this user group with adopting ads where prominent
actors were used.

POSITIONING:-

H&S is positioned as anti-dandruff product which clear flakes with one wash.
As the market leader it has successfully acquired the niche market of anti-
dandruff segment. The effective distribution channel and deep penetration in the
rural market has boosted up the sales in past year making it a leader. According
to annual report of H&S 2011 the quote states "H&S was relatively small,
primarily north American brand a decade ago. We invested in combination of
marketing and product innovations and began to expand the brand globally.
Since then we have more than tripled sales and H&S is now the largest shampoo
brand in the world.