PRODUCT LIFE CYCLE

A new product progresses through a series of stages starting from introduction, growth, maturity and end by decline of the product. This sequence is known as Product Life Cycle. And the factors that influence the PLC of a product are changing marketing situations which in turn affects the marketing strategy and marketing mix

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1. Introduction- In this stage company launches its product in the market and introduces it to the customers.

Head & Shoulders came into Indian shampoo industry in 1997 during that time it had many competitors. When the brand was launched it was in the nascent stage and was dominated by Clinic All Clear. With a hyped launch of Head & Shoulder help it in gaining the popularity and growth in the anti dandruff shampoo market. In total shampoo market, anti dandruff shampoos constitutes about 15%of the market shares, and Head & Shoulders leads this segment.

 2.  Growth- The second stage of a product life cycle is Growth. In order to survive in the market a product has to keep growing. It is point where brand is built and shares are increased. At this stage the product gain recognition and buyers also repeat the purchase pattern. For sustaining in the market Head & Shoulders had to come up with different marketing strategy like it has different variety, quantity and prices. And was distributed to all the possible area so as to reach to its target customers.

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        3.  Maturity- The third stage of the product life cycle is maturity. In this stage focus is on enhancing the quality of the product and promotion. The price of the product is kept low because of new competition and more incentives are given so as to increase the sales. Head & Shoulders in the PLC is at the maturity stage because at this time the company sale is slow down and it is trying to attract the potential buyers. But the different new brand of the Head & Shoulders which the company started is on the first or the second stage.

·     4.   Decline- The fourth stage of the product life cycle is decline. In this stage the product start phasing out, prices of the product is cut down, the distribution is also limited, advertisement is reduced and sales promotion is also reduced to minimal level. In case of Head & Shoulders it has not reached its decline stage yet as it is still in its maturity stage. And it is trying to revive its product with new innovative strategies and ideas

                                                        Competition

Porter’s model is a powerful tool to understand the model of an industry and how it is influenced by five key factors. A business manager should always an edge over its competition so as to sustain in the industry.

                                                         Porter’s Five Force Model

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•       Segment Rivalry- A manager should always know who all are his competitors and what are their capabilities. If a brand has tough competition and they have good product and services to offer then its little harder for the band to make its mark. Head & Shoulders strong competitors are Clear, Sunsilk, Pantene, L’Oreal, Nizoral, Palmovile, Vasiline.
•      New entrant- The entry of a new entrant can wobble your product position in the industry. It takes only little time or money to enter the industry and to compete effectively. If the new competition is good enough then it can hamper your product demand in the industry and can give a tough competition
•          Threat of Substitution- According to this model a threat of substitute exists when the demand of the product is affected by varying the price of the substitute product and by providing good quality with more quantity. Head & Shoulders was affected by those shampoos which are more beneficial and cost effective. In that ways L’Oreal total repair five, Clear, Pantene and Sunsilk was its competition
•       Buying Power – It is the power that a consumer has so that it can drive the price down. It is affected by the number of buyer, importance of each individual buyer to your product, the cost to them of switching from one product and services to someone else
•         Supplier Power- Power which a supplier has in order to drive the prices up. It is affected by number of the suppliers for a particular product, kind of services and good provided by them, the control of switching from you to some other company and the control over you. Fewer the suppliers you have fewer the choices and more powerful the suppliers.

                               Consumer buying decision

It is a process of selecting, purchasing and consuming of goods and services so as to satisfy their wants and desires.

Qualities a product should have in order to satisfy consumer needs:

•     Product that is of great utility
•  Should be cost effective
• Should satisfy the consumer

There are various factors which influences a consumer’s buying decision

1.      Cultural Factors- Consumer buying decision is influenced by cultural factors and it is an important cause of a person’s wants and behavior. The effect of culture can vary from place to place, country to country and a marketer should be able to analyze this thing before introducing the product in a particular region or country, where there is demand of that product. Likewise, Head & Shoulders will be distributed in those area where people are concern about their hair health and places where people are facing hair problems.

2.      Social Factor- Society plays an important role in influencing the decision of a buyer.  This factor will include references group, family role and status. A reference group have potential role to play in making a decision or opinion about a certain product. For example- Somebody will recommend Head and shoulders because of the result they get after using it.

Family also plays a major role in influencing buyer’s behavior. In this it depends upon the group, family financial status that can affect the decision. And different perception and opinion different family members have like wife in the family is using Head & Shoulders, so she can influence her husband and kids to use the same shampoo as she will be a reliable source in making a right decision. And the marketer will also try to target those members who can influence the decision.

3.      Personal Factors- the personal factors that influences the buying behavior are:- lifesyle, economic situation, occupation, age, personality and self concept.

4.      Psychological Factor- these factors which affects our purchasing decision includes motivation, perception, learning, belief and attitude.

                                                            

                                                                   Five Stage Model

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•   Problem Recognition- Procter & Gamble formulated Head & shoulders not only for dandruff. But also for all the hair related problems which other shampoos were not able to cater. A shampoo which can control dandruff, oiliness, manages frizzy hair and hair fall etc. And Head & Shoulders was able to provide all these benefits in on bottle.
•   Information Search- In this stage consumer tries to gather all the product related information required to make the right buying decision. And the source of information includes family, friend, advertisements, wholeseller, dealers etc. Generally people got to know about Head & Shoulders through advertisements, shopkeepers, family and friends etc.
•    Evaluation of Alternatives-Head & Shoulders has provided its customers with variety of shampoos depending upon the hair problem and hair type as compare to other shampoo brand. And it also checks that the product they are buying is cost effective or not. Different varieties are classic clean, citrus breeze, ocean lift, refresh, extra volume, dry scalp, sensitive care, hair endurance, clinical strength and itchy scalp.
• Purchase Decision- After evaluating the alternatives the consumer buy the suitable product.  Head & Shoulders promises its customer a quality shampoo which can solve all hair related problem and also which is light on their pocket. Available in different sizes and prices.
•  Post Purchase Behavior- After buying the product, a consumer will have an opinion about the product, whether the buyer is satisfied with the product or not. A consumer will go for Head & Shoulders only if he/she is able to get all the benefits they are looking for.

                       Customer value

Customer value is meeting the customer demands and requirements to deliver the quality product and services so as to give the customers variety, quality and value for money.

Value for customer

Head & Shoulder is a well known brand in the anti dandruff shampoo market with 20% market share. It has been providing its customer with product of range that suits hair and scalp need. Head & Shoulders grew in the market by understanding the problems and requirements of the consumer

The benefits that customers will acquire from a product is also of great importance

•     Popularity of the endorsers
• Credibility of the manufacturing company
•   Brand name
• Price (cost effectiveness)
• Packaging
•   Product awareness
•  Dandruff elimination
•  Revitalize scalp
•   Remove itching scalp
•   Stop root cause of dandruff
• Stop dandruff from coming back
•        Cool and refreshes the scalp    
• Healthy hair & scalp
•     Remove flakes
•  Control oiliness
•     Relieves irritation
• Provide the customer variety of shampoos- different scents
•    Available in different size and prices.

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  With all these things to offer, Head & Shoulders still have tough competition to fight. Some of its key competitors are Clean N Clear, Palmolive, Vaseline, Sunsilk, Pantene, L’oreal etc.
  Other anti dandruff shampoo mainly focused on improving hair conditions like silky smooth, soft & manageable hair, to moisturize dry and frizzy hair, address hair fall, add volume etc. whereas Head & Shoulders studied the market, understands consumer requirement by taking polls, surveys and interviews to get loyal and satisfied customers
  
  

                                                             Marketing Definition

Marketing is the process of selling of an idea in the form of goods and services, in order to generate revenue, to get satisfied and loyal customers. Marketing also involves reaching out to the target audience, providing the customers with cost effective product and development & implementation of strategies which are beneficial for the business promotion.

 STP- Segmentation, targeting and positioning     KPI- key performance Indicator

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•   In a market, with so many anti-dandruff shampoos which is already dominating the market, it was a tough fight to win for Head & Shoulders. But with its quality and service given it has managed to make its mark in the shampoo industry. And have loyal customers to its service.  
•  Head & Shoulders marketing strategy was to aim at getting customer trust by understanding the consumer problems and requirements (what are their expectation from an anti dandruff shampoo)
• What helped Head & Shoulders grow was that it bridged the gap which other shampoos ignored by meeting the demands of the consumers like it focuses on enhancing and improving hair condition (unmanageable hair, oily hair, dry hair, hair fall)
•  It considered all kind of hair problems faced by the customers, from proper hygiene, maintaining a healthy scalp and hair to gain right confidence

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•  Providing customers with various product range to suit individual scalp type and specific needs and with the amalgam of all these qualities Head & Shoulders tried reaching to the target audience
•  Its primary goal is to create awareness and to solidify itself as the No.1 anti dandruff shampoo in the country
• Head & Shoulders is spread in all major towns and cities across India, almost 2400 distributors reaching out to 5.8 lakh retailers in all over the country
•  Head & Shoulder is being promoting through Campaign and TV advertisement. It is found in every Grocery Shops, Medical Shops as well as Stationary Shops
• During the launch Head & Shoulders used price-quality interference strategy, but currently its using reference pricing as well as value pricing
•  Head & shoulders uses different sales promotion schemes like hair saloons, TV advertisements, sports events, road shows, etc
•   One of its marketing strategies was the social responsibility program. In 2005, P&G launched SHIKSHA, program through which consumer can contribute for the education of unprivileged children
• These marketing plans helped It to grow and survive in an anti dandruff shampoo market and boost its market position versus the competitors