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ANJALI TYAGI

RAGHAVSOOD
SAMIR GANDHI
INDEX
Overview 1
Helene Curtis, Inc 2
Suave 3
Shampoo Market 4
Competitive Environment 5
Brand Loyalty 6
Trade Promotion & Advertising 7
Advertising Debate – The Two Alternatives 8
SWOT Analysis of the Two Plans 9
Marketing Mix of Suave 10
Market Segmentation & Targeting 11
Positioning of Suave 12
Recommendations 13
OBJECTIVE
To determine the two-advertising media plans for Suave shampoo &
analyze which is a better alternative for the shampoo which would
help the company:

•To fight the current & upcoming competition

•Help them in their fight to maintain their retail shelf-space.


OVERVIEW
•Tom Kuykendall, group manager of suave had different views for the
fiscal 1985 advertising campaign of Suave as compared to Ellen
Vallera, the brand manager.

•Ellen Valleraproposed the $7.8 million plan which focused on day time
& prime time television, whereas, Kuykendall proposed a $ 10.2
million plan focused entirely on prime time television.

•Competitors like Gillette with brand White Rain & Procter & Gamble
with brand Ivory, were soon planning to introduce a new low priced
shampoo & others were also planning a flood of new products.

•With such competition, the fight for retail shelf space would be
fierce & suave had to come up with a different advertising strategy
to maintain its position.

HELENE CURTIS INDUSTRIES INC.

•Created, manufactured and marketed hair-care and other personal care


products.

•Four marketing divisions; Suave being a part of the largest division,
Consumer Products.

•In fiscal 1984, it generated $10.4 million in net earnings on$330
million in sales.

•Leading marketer in conditioners and second largest in shampoos in
U.S.


SUAVE
•Suave was a men’s hairdressing in the 1950’s & the first shampoo
under the name “Suave” was launched in 1962

•Suave products were used in 16 million homes, more than 90% shampoos.

•Finesse was launched with a $ 20million in advertising & was one of
the heavily promoted hair care brands in the industry. Finesse had a
much higher gross margin due to the price differential & generated
twice the dollar profit per case as compared to suave. Hence, Suave
had taken a back seat to Finesse.

•Yet, suave had the longest line of shampoos in the industry, with a
total of 40 SKU’s & average of 12 in any grocery store. New product
variations were constantly introduced to maintain brand’s vitality &
to allow suave users to switch within the suave line.

THE SHAMPOO MARKET

•Shampoo market was highly fragmented.



•Sales had been relatively flat in recent years.

•The market was considered mature, industry experts predicted slow
growth in coming five years.

•Firms sought untapped consumer segments to sustain growth.

COMPETITIVE ENVIRONMENT
•Shampoo market is loaded with new products supported by heavy
advertising and promotion.

•New shampoos were introduced catering to the specialized needs of
the consumers.

•Five major competitors were to launch new brands with unprecedented
marketing support.

•The industry advertising to sales ratio declined from 13.2% to 10.1%.

•The action in the business is taking place in high and low end of
the price spectrum, middle being squeezed.
BRAND LOYALTY
•Brand Loyalty was not very evident in the shampoo industry as the
industry was filled with fickle consumers.

•To develop & maintain loyalty, longer shampoo product lines were
marketed to allow consumers to switch among the types of shampoo, but
remain in the same shampoo family.

•The reason for such low brand loyalty in the industry was because
consumers preferred having number of brands on their shelves since
they get bored with shampoos easily.

•Also, they had the tendency to try different brands & types of
shampoo.

•However, suave yet had the highest loyalty levels in the industry. But,
these customers were very fickle & could switch loyalties easily
irrespective of any advertising techniques.
TRADE PROMOTION & ADVERTISING
•Trade Promotion has been allocated higher budgets in the past compared
to advertising. (Ex-2)

•This was due to the fact that retail support was critical to stimulate
growth & to satisfy retailers, trade promotion was given higher budget.

•For fiscal 1985, Ellen Vallera’s plan allocates 60% of total spending
to trade promotions & 28% to advertising. This follows the previous
trend where suave has been successful .

•So, this plan gives adequate attention to advertising & trade
promotion. Trade promotion should not be increased more than the
allocated 60% which should be sufficient.
ADVERTISING DEBATE
Suave had two advertising media plans for the fiscal 1985:

1.Ellen Vallera’s $7.8 million plan:


2.
•$7.1 million would be allocated between day time & prime time
television & $ 700,000 to the print campaign
•Out of $7.1 million, approximately 43% was allocated to prime time &
47% was allocated to day time network & the remaining to the
print campaign.

2.Tom Kuykendall’s $10.2 million plan:
3.
•$ 9.5 million was allocated to the prime time network & nothing
during the day time.
•The rest $700,000 approximately was allocated to the print campaign


ELLEN VALLERA $7.8 MILLION PLAN

STRENG

Heavily
Catering day ti
Suave co
Less costly a
with Perceptio
almost
Wider reach equ
Prime(day
tim
TOM KYUYKENDALL $ 10.2 MILLION
PLAN

STRENG

It
Estimated would
Audie
Brand awareness
Suave co
number
time is majority
MARKETING MIX

Hu
SUAVE’S PRODUCT WIDTH & LENGTH
PRODUCT
Suave’s line of products for hair care:
SUAVE NATURALS SHAMPOO
H
SUAVE PROFESSIONALS CONDITIONER
SUAVE NATURALS CONDITIONER
SUAVE 2 IN 1
MARKETING MIX

PR
Huge W
PRICE
Suave positioning & USP was it low pricing strategy. (per ounce)

9 cents 22 cents

13 cents
32 cents
MARKETING MIX

TARGET
PRO
MARKET
Huge Wi
PROMOTION
PROMOTION
MARKETING MIX

PR
Huge W
& dept
TARGE
produc
PLACE
SEGMENTATION &TARGETING
•Heavy shampoo users (more than 144 ounce/ year)
•Household women between age 18-45
•Large families with young children ( family of 5+)
•Middle level income earning who have a preference for low price
•On the basis of price compared with its competitors
•Men between age 18-45 also have been segmented with different variety
of products


Market Segmentation


POSITIONING OF SUAVE
•“Suave makes you look as if you spent a fortune on your
hair”
•“Salon hair-Suave Price”
•“Beautiful hair does not have to cost a fortune”
•“Say yes to beautiful hair without paying the price”
BCG MATRIX
PRODUCT LIFE CYCLE
RECOMMENDATION:
RECOMMENDATION:
THANK YOU
PRODU
Huge Width,