Holistic Marketing

                                 Holistic Marketing
The holistic marketing concept looks at marketing as a complex activity and acknowledges that everything matters in marketing. The Holistic viewpoint follows that system in this case marketing somehow functions as wholes and that their functioning cannot be fully understood solely in terms of their component parts. Therefore, a broad and integrated perspective is necessary in developing, designing, and implementing programs and activities.
There are four components that characterize Holistic marketing:-

1. Relationship Marketing- It emphasizes on customer retention, customer loyalty and satisfaction rather than a dominant focus on sales transactions.
2. Internal Marketing- It is a process that occur within a company or organization whereby the functional process align, encourage, and empowers employees at all management levels to deliver a satisfying customer experience.
3. Integrated Marketing- It is an approach to brand communication where the different modes work together to create a seamless experience for the customer and are presented with a similar tone and style that reinforces the brand's core message.
4. Socially Responsible Marketing- It is a marketing that states a company should take into account what is in the best interest of society in the present and long term.

Head & Shoulders is a leading anti dandruff shampoo which has grown for nine straight year, including 20 percent recently.The market share of Head & Shoulders is 38% in comparision other shampoo brands. It has tried reaching every kind of customer from higher middle class to the lower class catering to their hair problems.It also aims at increasing the market space, sales and growth of the product. Head & Shoulder is a niche brand to a global beauty care franchisee. Within next few years it could become one of P&G's brand  with annual sales upto $ 1 billion .It ensure that the consumer gets a better product in a cost effective  manner.In a way Head & Shoulder practice holistic marketing.

Segmenting, Targeting and Positioning

                                              STP          

Segmentation
Market Segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications for the relevant goods and services. Depending on the specific characteristics of the product, these subsets may be divided by criteria such as age and gender, or other distinctions, like location or income. Marketing campaigns can then be designed and implemented to target these specific customer segment. Segmentation is mainly done to understand the basic needs of a customer and to cater them in a better manner.

Segmentation stratgies have different criteria:-

• It should be possible to identify and measure
• It should be big enough to be worth the effort
• It should be easy to reach it
• It should not change quickly
• And it should be responsive

Segmentation of  Head & Shoulders
Head & Shoulders came up with variety of shampoos and conditioner in order to solve their consumer's hair related problem. The market segment of Head & Shoulders are men and women aged 18 to 40 years, single and married located on the urban side of the region. The product is designed for the people who work 24 hours a day and are related to several people at work, in addition to their personal appearance need to have their hair clean, fresh and no traces of dandruff. And it also offer different shampoos for different hair problem depending upon the consumer like shampoo for oily scalp, dry scalp, for men, anti-dandruff, hair fall, etc.

Targeting

Target market is a specific group of consumer that a business wishes to attract and sell its line of goods or service to. A target market may be defined in terms of age, gender, sexual orientation, economic class, ethnicity, religion, or location. This process of socio-economic grouping allow business to create profiles of typical customer who is likely to purchase products from the company, which in turn provide the basis for the creation of marketing and sales initiative that allow the business to build a clientele within that customer demographic.

Target Market of Head & Shoulders
Basically the target market of Head & Shoulders would be men and women between the age of 15 to 45 years. They are targeting all the classes of society like high middle class which will include doctors, accounting, middle class which include teachers, nurses, lower middle class,training class, working class and , lower class .

Positioning

Positioning helps establish your product's or service's identity within the eye of the purchaser. A company's positioning strategy is affected by a number of variables related to customers' motivations and requirements, as well as by its competitors' actions. This is created through the use of promotion, price, place and product. The more intense a positioning strategy, typically the more effective the marketing strategy is for a company. A good positioning strategy elevates the marketing efforts and helps a buyer move from knowledge of a product or service to it purchase.

 Positioning of Heads & Shoulders
Head & Shoulder is positioned in the market as a shampoo which gives 7 scalp and hair benefits such as

• Fight Dryness
• Calms itch
• Relieves Irritation
• Reduce Redness
• Control Oiliness
• Remove Flakes 
• Leaves Beautiful hair

                                

Organizational Buying Behaviour

                                             Organizational Buying Behaviour

Organization Buying is the decision making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and supplies.
Organizational buying is very similar to individual buying with some contextual differences. Organizations Buy in furtherance of organisational objectives, such as manufacture and deliver goods and services to the members, customers and community. Organisational Buying is heavily influenced by derived demand, it demand for the end product or the product or services demanded by the customers from the buyers. Overall customer demand is impacted by economic, social, political and technological factors in the environment.

                                                    Organizational Buying Process

Three types of buying situation:

1. New Task- In this situation organisation is the first time buyer of the product or service. This involve great risks, so the buying center is enlarged to include all who have a stake in new buy.
2. Modified Rebuy- In this situation users, influencers, or deciders in the buying centers want to change the product specifications, price, delivery,schedule or supplier.
3. Straight Rebuy- In this situation buyers reorder an existing product or services from the list of acceptable suppliers.

For Heads & Shoulders the buyer would be the retailers,market stalls,personal care stores, convenience stores,medical stores,Utilize P&G distribution leverage or the franchisees or the mom and pop stores that buy Head & Shoulders in bulk to sell in their shops. Bulk buyers helps in getting the buyer better and cheap prices for that product.

Sales Management

                                     Sales Management

Sales Management is the discipline of maximizing the benefits a company and its customer receive from the efforts of its sales force. It is also the attainment of sales force goals in a effective and efficient manner through planning, staffing, training, directing, and evaluating organizational resources. And every business has some goals to achieve.

The typical sales management goals are

• Profitability
• Sales volume
• Market share
• Growth
• Corporate image\

Elements of Sales Management

• Planning
• Co-ordination/ Recruiting/ Training
• Controlling
• Evaluating
• Effectiveness
• Motivating

Sales Management Of Head & Shoulders
By the end of 2000 Head & Shoulders started to loose its market share due to the launch of All Clear. Then Head & Shoulders came up with its new strategies in order to regain the market share, to increase its sales and to fight back the competition. Head & Shoulders maintain its quality with consistent improvement, it came up with new varieties according to the market needs, promotion in rural area and semi urban area, came up with special offers and discounts to consumers as well as to the distributors, also used innovative means of promotion like forming a special association or group.  These methods helped Head & Shoulder trigger their sales and promotions.

Distribution Decisions

                                       Distribution

It is a process of delivering the product to the end user by the manufacturer in a cost effective manner. A distribution channel consists of a producers, consumers or users and the various middlemen like wholesaler, selling agents and retailers(dealers) who intervene between the producers and consumers.Therefore, the channel serves to bridge the gap between the point of production and the point of consumption thereby creating time, place and possession utilities. For example, if you're a detergent manufacturer, it doesn't make sense to ask your customers to drive to your factory in order to buy their washing machine soap. Instead, it make much more sense to use distribution channels like supermarket chains.

There are certain factors which should be kept in mind before choosing a distribution channel

• Nature of the product
• The market
• The business
• Legal issues

Type of distribution channels are broadly classified as

1. Direct Channel or Zero Level Channels- In this type of channel the manufacturer sell the product directly to the customer instead of selling it to the intermediary. Direct Channels includes retail outlet, mail order selling, internet selling, etc.
2. Indirect Channels- The channel through which the manufacturer takes help of one or more middle man to transfer the product to the consumer then that channel is called Indirect Channel. Indirect Channels have been classified into 3 type

• One Level Channel- In this method intermediary is used.In this method the product or goods are directly sold to the retailers instead of selling it to the wholesaler or agents. For example-used to sell expensive watches. This method is used to sell FMGC (Fast Moving Consumer Goods).
• Two Level Channel- In this method the products or goods are sell to the wholesaler first, then the wholesaler sell it to the retailer and then the retailer sell it to the end user or consumer.In this the wholesaler buy the goods in large quantity from the manufacturer who sell it to the retailer in small quantity. This method is used to sell tea, soap, sugar, ghee, etc.
• Three Level Channel- In this method an agent is added between the manufacturer and the wholesaler. The agent helps in reducing the distance manufacturer and the wholesaler. Some big companies who can not directly contact the wholesaler take the help of agent to reach to them.  And such companies send their agents to all the regions and sell  the product to them.It is nothing but the addition of an agent to a two  level channel.

Distribution Channel Of Head & Shoulders

Integrating Marketing communication, ATL and BTL

       Integrating Marketing Communication (IMC)

Integrating Marketing communications (IMC) is an approach used by organizations to brand and coordinate their communication efforts. IMC can also be defined as "a concept that recognizes the added value of a comprehensive plan that evaluates the strategic role of a variety of communication disciplines to provide clarity. consistency and maximum communication impact". The primary idea behind an IMC strategy is to create a seamless experience for consumer across different aspects of the marketing mix. The brand's core image and messaging are reinforced as each marketing communication channel works together in unity, rather than in isolation. Their sum is greater than their part providing they speak consistently with one voice all the time, every time. this is enhanced when integration goes beyond just the basic communication tools. There are other levels of integration such as horizontal, vertical, internal, external and data integration. And hence these tools help strengthening integrated communications. 
Today, corporate marketing budget are allocated towards trade promotions, consumer promotions, branding public relations, and advertising. The allocation of communication budget away from mass media and traditional advertising has raised IMC's importance for effective marketing. Now, marketing is viewed more as a two-way conversation between marketers and consumers. This transition in the advertising and media industries can be summarized by the following market trends: 

• A shift from mass media advertising to multiple forms of communication
• The growing popularity of more specialized (niche) media, which consider individualized patterns of consumption and increased segmentation of consumer tastes and preferences
• The move from a manufacturer-dominated market to a retailer-dominated, consumer-controlled market
• The growing use of data-based marketing versus general-focus advertising and marketing
• Greater business accountability, particularly in advertising
• Performance-based compensation within organizations, which helps increase sales and benefits in companies
• Unlimited Internet access and greater availability of inline goods and services
• A larger focus on developing marketing communications activities that produce value for target audiences, while raising benefits and reducing costs

Benefits for IMC

With so many product and services to choose from, consumer are often overwhelmed by the vast number of advertisements flooding both online and offline communication channels. Marketing message run the risk of being overlooked and ignores if they are not relevant to consumer needs and wants.

One of the major benefits of integrated marketing communications is that marketers can clearly and effectively communicate their brand’s story and messaging across several communication channels to create brand awareness. IMC is also viewed as more cost-effective than mass media, since consumers are likely to interact with brands across various mediums and digital interfaces. As consumers spend more time on computers and mobile devices, marketers seek to weave together multiple exposures to their brands using different touchpoints. Companies can then view the performance of their communication tactics as a whole instead of as fragmented piece

The other obvious benefit of integrated marketing communications is that it creates a competitive advantage for companies looking to boost their sales and profits. This is especially useful for small- or mid-sized firms that have limited people resources and marketing budgets. IMC wraps communications around customers and helps them move through the various stages of the buying process. The organization simultaneously consolidates its image, develops a dialogue, and nurtures its relationship with customers throughout the exchange. 

Furthermore, IMC can be instrumental to creating a seamless purchasing experience that spurs customers to become loyal, lifelong customers.

Above the line (ATL)

ATL is one of the way in which promotions are targeted. It is the cost incurred during the production of an advertisement commercial for the large audience. It basically uses mass media method for its promotion that includes print, online media, television and cinema advertising. ATL tries to reach a larger audience.Making a message memorable to a large audience is not always easy. It is difficult to tailor a promotion to a specific group of consumers through above-the-line promotions. This is because it is viewed by a mass audience with different tastes and needs. Above-the-line promotion is also very expensive but quite creative. the main aims of above- the- line promotion are to inform customer, raise  awareness and build  brand positioning.

Ways in which ATL promotion is done

• Television and radio can reach a wide range of consumers. 
• The national press and consumer magazines are aimed mainly at consumers
• Trade journals target a business audience

Below the Line (BTL)

Below the line methods are very specific, memorable activities focused on targeted groups of consumers. They are under the control of the organisation.The purpose of these activities has been to develop the brand by creating awareness and building a brand profile. Below-the-line methods include:

• sponsorship
• sales promotions
• public relations
• personal selling
• direct marketing.
• BTL involves the distribution of pamphlets, handbills, stickers, promotions, brochures placed at point of sale, on the roads through banners and placards. It could also involve product demos and samplings at busy places like malls and market places or residential complexes. 

Other BTL activities could include roadshows, or moving hoardings with the ad of the product, and vehicles with promotional staff interacting with people demonstrating the product and distributing  literature on the product.  BTL advertising is advertising that uses less conventional methods of advertising that the specific channels of advertising that may or may not be used by ATL advertising to promote products and services.

BTL Promotion

BTL promotion might include direct mail promotional campaigns, PR and sales promotions which are handled directly by the company itself or outsourced to specifically PR agencies and sales promotion agencies and may or not be related to the advertising campaign. BTL advertising might include email campaigns, telemarketing, etc with targeted groups of potential clients.“BTL is preferred on several occasions but the foremost would be when you need to have a personal interaction with the consumer.”

Head & Shoulders basically uses ATL promotion Techniques.

Pricing Decision

Pricing
Pricing is the process in which we figure out what amount to attach to each unit. Everything that a customer has to pay in order to acquire goods and services. Pricing should also be consistent with the other elements of marketing mix, since it contribute to the perception of a product or a service by a consumer.
Price of a product or service influence the buying decision of a consumer

Consumer Buying Psychology:

Reference Price- A reference price is a price which a customer think is reasonable for a certain type of product or service. The reference price depends upon several factors like

•  Memory of the past price,
•  Competitive frame of reference,
•  Price of other product in the same shelf, in the same category or in the same product line,
•  The way the price is presented for instance absolute numbers verses per quarter, per pound, per hour of use, per application, etc
• The order in which people see a range of price

For example- For 80 ml Pantene shampoo bottle the price is Rs 64 and for a 80 ml Head & Shoulders bottle it is Rs 69. So the consumer will have a price range for a 80 ml shampoo bottle in between  Rs 65 and 70. Hence the company has to keep its product price in this range only in order to take care of the competition and profit.

Price-Quality Inference- Consumer develop belief about the correlation between price and quality from their own consumption experiences. For a given product category, some consumers believe that price and quality are highly correlated whereas other consumer believe that price and quality are not highly correlated. Furthermore, the inferences of quality  they make on the basis of price can influence their actual pricing decision. For example- Perfumes, Watches etc

Price cue- It is defined as any marketing strategies used by the firm or the company to create the perception that the current price offer good value compared to competitor's price, past price and future price. Some of the pricing tactics are placing a  sign at the point of purchase claiming an item is on "SALE", and quoting a price that will end at "9", Pricing Guarantees etc.

 Pricing For Head & Shoulders

Initially when Head & Shoulder were formed it used to come in bottle and it increase in sales it initially reduced its market price and also started making shampoo sachet which helped them gain profit. There were number of advantages of using sachet was you get to use variety of product, you don't have to worry about unsealed products. Despite of having so many competition in the same category Head & Shoulders make sure it live up to its brand name with affordable prices and better quality that will appeal large masses.

The current price of Head & Shoulders Shampoos:-

• 90 ml- Rs 69
• 170 ml-Rs 135
• 375 ml-Rs 254
• 675 ml-Rs 399