Harvard Case - Behavioral Drivers of Brand Equity - Head & Shoulders in India
"Behavioral Drivers of Brand Equity - Head & Shoulders in India" Harvard business case study is written by Loveneet Tyagi, S. Ramesh Kumar. It deals with the challenges in the field of Marketing. The case study is 15 page(s) long and it was first published on : Sep 1, 2017
At Fern Fort University, we recommend that Head & Shoulders leverage its strong brand equity in India by adopting a multi-pronged strategy focused on consumer behavior, digital marketing, and innovation. This strategy should prioritize customer segmentation, targeted messaging, and product development to cater to the diverse needs of the Indian market. By implementing these recommendations, Head & Shoulders can solidify its market leadership, drive growth, and maintain its position as a trusted brand in the Indian hair care market.
2. Background
Head & Shoulders, a leading anti-dandruff shampoo brand globally, has been present in India for over two decades. The case study explores the brand's journey in India, highlighting its initial success, subsequent decline, and the need for a renewed strategy to regain market dominance. The case focuses on understanding the changing consumer behavior in India, the evolving competitive landscape, and the need for Head & Shoulders to adapt its marketing and product strategy to remain relevant.The main protagonists of the case study are the marketing team at Head & Shoulders India, who are tasked with developing a strategy to revitalize the brand and regain its lost market share.
3. Analysis of the Case Study
To analyze the case, we will use a combination of frameworks:
1. SWOT Analysis:
- Strengths: Strong brand recognition, established distribution network, expertise in anti-dandruff technology, global brand image.
- Weaknesses: Perception of being outdated, lack of innovation in product offerings, limited engagement with digital channels, declining market share.
- Opportunities: Growing Indian middle class, rising demand for premium hair care products, increasing digital penetration, potential for product diversification.
- Threats: Intense competition from local and international brands, changing consumer preferences, rising input costs, potential for negative brand perception.
2. PESTEL Analysis:
- Political: Stable political environment with a focus on economic growth.
- Economic: Growing middle class with increasing disposable income, rising urbanization, potential for economic fluctuations.
- Social: Increasing awareness of health and hygiene, growing preference for natural and organic products, rising importance of social media influence.
- Technological: Rapidly evolving digital landscape, increasing smartphone penetration, growing adoption of e-commerce platforms.
- Environmental: Growing awareness of sustainability and ethical sourcing, potential for regulations on chemical ingredients.
- Legal: Stringent regulations on advertising and product claims, evolving consumer protection laws.
3. Consumer Behavior Analysis:
- Market Segmentation: The Indian hair care market is diverse, with varying needs and preferences based on age, gender, income, lifestyle, and regional differences.
- Target Market Selection: Head & Shoulders needs to identify specific target segments within the Indian market and tailor its marketing efforts accordingly.
- Consumer Psychology: Understanding the motivations, aspirations, and anxieties of Indian consumers is crucial for developing effective marketing campaigns.
4. Competitive Analysis:
- Direct Competitors: Local brands like Clinic Plus, Sunsilk, and international brands like Dove, Pantene, and L'Oreal Paris.
- Indirect Competitors: Other hair care products like hair oils, conditioners, and styling products.
- Competitive Advantage: Head & Shoulders needs to differentiate itself from competitors by focusing on its unique selling proposition (USP) of anti-dandruff efficacy, leveraging its brand heritage, and innovating to meet evolving consumer needs.
5. Product Lifecycle Management:
- Maturity Stage: Head & Shoulders in India is currently in the maturity stage of its product lifecycle, characterized by slowing growth and increased competition.
- Product Innovation: To revitalize the brand, Head & Shoulders needs to introduce new product variants, formulations, and packaging to cater to the evolving needs of Indian consumers.
6. Value Proposition Development:
- Core Value: Head & Shoulders needs to clearly articulate its core value proposition to Indian consumers, emphasizing its anti-dandruff efficacy, scalp health benefits, and brand trust.
- Value Differentiation: Head & Shoulders can differentiate itself by focusing on natural ingredients, innovative formulations, and personalized solutions for different hair types.
4. Recommendations
To revitalize the brand and regain market leadership, Head & Shoulders should implement the following recommendations:
1. Redefine Target Market Segmentation:
- Focus on Specific Segments: Identify and target specific segments within the Indian market, such as young adults, working professionals, and those with specific hair concerns like dryness or oiliness.
- Develop Customized Marketing Strategies: Tailor marketing messages, product offerings, and promotional activities to resonate with the specific needs and aspirations of each target segment.
2. Reinvent Brand Positioning:
- Modernize Brand Image: Update the brand's visual identity and messaging to appeal to a younger, more digitally-savvy audience.
- Emphasize Scalp Health: Shift the focus from just anti-dandruff to a broader message of scalp health and overall hair care.
- Highlight Natural Ingredients: Leverage consumer interest in natural and organic ingredients by introducing new product variants with natural extracts and formulations.
3. Leverage Digital Marketing:
- Invest in Social Media Marketing: Develop a strong social media presence to engage with consumers, build brand awareness, and generate buzz.
- Utilize Influencer Marketing: Partner with relevant influencers to reach target audiences and generate authentic product reviews and recommendations.
- Implement Content Marketing: Create engaging and informative content related to hair care, scalp health, and lifestyle to attract and educate consumers.
- Optimize for Search Engines: Improve website SEO to drive organic traffic and increase brand visibility.
4. Innovate Product Offerings:
- Develop New Product Variants: Introduce new product variants tailored to specific hair types, concerns, and lifestyles.
- Focus on Natural and Organic Formulations: Develop products with natural ingredients and sustainable packaging to appeal to environmentally conscious consumers.
- Explore Personalized Solutions: Offer customized solutions based on individual hair needs and preferences, such as personalized hair care routines or online scalp analysis tools.
5. Enhance Distribution Channels:
- Expand Online Presence: Increase online sales through e-commerce platforms and partnerships with online retailers.
- Strengthen Offline Distribution: Ensure wider availability of products through traditional retail channels, including supermarkets, pharmacies, and salons.
- Explore Omni-channel Marketing: Create a seamless customer experience across all channels, allowing consumers to purchase products online, offline, or through a combination of both.
6. Implement Integrated Marketing Communications:
- Create Cohesive Brand Messaging: Ensure consistent messaging across all marketing channels, from advertising to social media to in-store promotions.
- Utilize a Mix of Marketing Tactics: Employ a mix of traditional and digital marketing tactics to reach a wider audience and achieve maximum impact.
- Measure and Optimize Marketing Efforts: Track the effectiveness of marketing campaigns and make adjustments based on data insights.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with Head & Shoulders' core competency in anti-dandruff technology and its mission to provide effective and trusted hair care solutions.
- External Customers and Internal Clients: The recommendations address the evolving needs and preferences of Indian consumers, while also providing internal clients with a clear roadmap for revitalizing the brand.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate Head & Shoulders from competitors by focusing on innovation, digital marketing, and customer-centricity.
- Attractiveness: The recommendations are expected to drive growth and increase market share, leading to improved profitability and brand equity.
6. Conclusion
By implementing these recommendations, Head & Shoulders can solidify its market leadership in India, drive growth, and maintain its position as a trusted brand in the Indian hair care market. The brand needs to adapt to the changing consumer landscape, embrace innovation, and leverage digital marketing to connect with a new generation of consumers.
7. Discussion
Other alternatives not selected include:
- Focus solely on price competition: This approach could lead to a price war and erode brand equity.
- Ignore digital marketing: This would limit the brand's reach and engagement with a digitally-savvy audience.
- Delaying innovation: This could result in the brand becoming irrelevant and losing market share to competitors.
Risks associated with the recommendations include:
- High investment costs: Implementing the recommendations requires significant investment in product development, digital marketing, and brand revitalization.
- Competition: Competitors may respond aggressively, leading to increased competition and price wars.
- Changing consumer preferences: Consumer preferences are constantly evolving, and the brand needs to be agile and responsive to remain relevant.
8. Next Steps
To implement the recommendations, Head & Shoulders should follow these steps:
- Phase 1 (Short-Term):
- Conduct market research to identify specific target segments and their needs.
- Develop a digital marketing strategy and allocate resources for social media, influencer marketing, and content marketing.
- Launch a new product variant with a focus on natural ingredients and innovative formulations.
- Phase 2 (Mid-Term):
- Expand online distribution channels and partner with online retailers.
- Implement a customer relationship management (CRM) system to track customer interactions and personalize marketing efforts.
- Invest in research and development to explore new product innovations.
- Phase 3 (Long-Term):
- Develop a comprehensive brand revitalization plan that includes brand messaging, visual identity, and product portfolio.
- Establish a strong social media presence and engage with consumers on a regular basis.
- Monitor market trends and adjust marketing strategies as needed.
By implementing these recommendations and taking a proactive approach to brand management, Head & Shoulders can ensure its continued success in the dynamic Indian hair care market.
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Case Description
"What are the nuances that link brand positioning, brand associations and brand equity related aspects of a brand performing successfully in the market?" especially in an emerging market such as India is a question that triggers many approaches among academics and practitioners. Head &Shoulders brand from Procter and Gamble is a multinational brand that had grown rapidly in the Indian context after displacing a well-entrenched brand of shampoo. The brand's effective positioning had struck a chord with consumers and had sustained its success over a period of time. With several competitive brands entering the well-advertised category of shampoos, the brand manager for Head &Shoulders felt that its positioning though effective cannot last forever and wanted to find out if the brand's positioning could be strengthened. Besides the analysis of thr regular brand positioning strategies, the company felt that a study on consumer behavior could provide useful pointers to the alternatives of brand positioning with respect to Head &Shoulders when studied with its competitive brands. The results of the study provided interesting but challenging results that made brand repositioning more complex than what the brand manager had assessed. The case study highlights the importance of consumer behavior when brands decide to reposition themselves in a dynamic environment. Furthermore, the case also draws on the implications of brand positioning and consumer behavior on the qualitative dimensions of brand equity.
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