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a description of how the management decision was taken to change brand name of sunsilk to sedal
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Arkaprava Ghosh
HAIR CARE CATEGORY IN CENTRAL AMERICA
24%
23%21%
15%
9%8%
total hair care sales(%)costa ricael salvadorguatemalanicarguahonduraspanama
Consumers were mainly women between 18-50 years of age
Decision on type of product and brand purchase attributed to women
Within the category , associations of consumers were mainly with
Shampoo & conditioner
Extensions like gel , hair spray , fixatives found a very low association
CONSUMER PULL
•Defined by “look beautiful” , “feel good”Association with principal benefits
Association with product specifications
CONSUMER INSIGHTS: CENTRAL AMERICA
SEC A (annual income > US$ 57000)
SEC B (annual income > US$ 29000
SEC C+(annual income > US$ 15000
SEC C- (annual income > US$9000)
SEC D (annual income> US$2000)
Consumer segmentation : based on “socioeconomic groups” determined by annual income of people
Consumer insight
Cosmetic imagery was of great importance in “central America” ; hence hair care was of great influence herePeople belief: important to look good to leave an impression
This class is more focused on the emotional connect
that the brand provides
Associated with the most basic need of cleansing
Tap on factors like “softness” , “silky” , “healthy” etc. more
focused on the ingredient factor
Category influence people belief saw a gradual shift in the product offerings by leading brands
Basic shampoo & conditioner
Hair type- normal , oily , dry
Hair characteristics- straight , curls, color
6%
25%
34%
10%
16%
10%
MARKET SHARE (%)SUNSILK PANTENE HEAD&SHOULDERSPERT PLUS NATURALS OPTIMUS
Source: Latin American journal , really information center
6%10%
16%
6%33%
29%
MARKET SHARE(%)
SUNSILKPANTENEHEAD&SHOULDERSPERT PLUSNATURALSOPTIMUS
Source: Latin American journal , really information center
12%
29%
24%5%
24%
7%
MARKET SHARE (%)SUNSILK PANTENEHEAD&SHOULDERS PERT PLUSNATURALS OPTIMUS
Source: Latin American journal , really information center
11%3%
32%
15%
26%
12%
MARKET SHARE (%)
SUNSILKPANTENEHEAD&SHOULDERSPERT PLUSNATURALSOPTIMUS
Source: Latin American journal , really information center
41%
9%13%
5%
28%
4%
MARKET SHARE (%)SUNSILK PANTENE HEAD&SHOULDERSPERT PLUS NATURALS OPTIMUS
Source: Latin American journal , really information center
22%
28%
21%
8%
10%
11%
MARKET SHARE (%)SUNSILK PANTENE HEAD&SHOULDERSPERT PLUS NATURALS OPTIMUS
BRAND OVERVIEWKey consumer segments : B , C & D ; C & D accounted for 70% of brand sales
Product portfolio :•Shampoos•Conditioners•2 in 1
Bottles accounted for 80% of the sales throughout Central America
Single pricing strategy was followed for all channels but in general sunsilk prices were 15% above the average market price
Traditionally sunsilk had been considered innovative with the introduction of 2in 1 shampoo+conditioner
•Rate of subsequent innovations was low
•Competitors had extended their lines to styling creams while sunsilk still remained in the shampoo-conditioner category
Presence since ages
Perceived to be Traditional
Brand sales were mainly attributed to the older female consumersTop of the mind recall in the youth segment was found to be very low (2001 brand equity studies)
glamorous Low in hair care expertise
Basic product specifications ;Low in innovation
Can be used only for basic cleansing
Connotation : sunsilk
Brand sunsilk was present for over 10 years and had a strong market share in SEC C&DSUNSILK WAS THE MARKET LEADERFocus groups showed outright resistance towards any change in brand communication
Failure by sunsilk to establish market shareTop of the mind recall by customers was in the range of 3-8%Prominence & brand loyalty both had taken a dip in these countries
At the end of 2001, a managerial team from Unilever Central America, decided to undertake a brand, image and formula change of Sunsilk hair care products
SUNSILK was to be changed to SEDAL
Pais Translation: country
2 different concepts were proposed for the change
•In Nicaragua, Honduras, Guatemala and Panama, the change consisted in the removal of the Sunsilk range from the market, replaced by the Sedal range, accompanied by an advertising campaign for launching the new product
•In Costa Rica and El Salvador, one product gradually replaced the other due to the strong imagery of sunsilk in those countries
MAKING CHANGE: SUNSILK TO SEDAL
Increase the rate of innovation in terms of specifications
Extend product lines to hair treatment creams , hair styling gel , hair fixatives etc.
Introduction of new variants to capture the market , specially the A & B socioeconomic class
Change in communication
•Sedal brand hair care expert in the world•Sedal understands what your hair means•Targeting the Youth
MAKING CHANGE: SUNSILK TO SEDAL
Increase the rate of innovation in terms of specifications
Extend product lines to hair treatment creams , hair styling gel , hair fixatives etc.
Introduction of new variants to capture the market , specially the A & B socioeconomic class
Change in communication
Sedal now launched their brands on 3 platforms:
•hair repair & care platform
•Pharmaceutical platform
•Color protect platform – a new innovation in the hair care category .
Sedal realized that natural hair color differed person to person so sedal launched a new line for “protecting your natural color”
One of its kind combing cream to give instant style and look to your hair
REPAIR & CARE PLATFORMVARIANT SPECIFICATION BENEFITControlhumect
Zinc pyrithione Complex moisturizer
Zinc pyrithione : dandruff controlLys amino acid moisturizes
ceramidas Vitamin a repairs the hair shaft, strengthens intercellular cohesion stimulates cell renewal
guarana Guarana extract Properties to stimulate and fortify capillariesActive hair shine
Miely germen de trigo
Wheat extractFor dry hair only
Moisturizes and nourishes dry hair
PHARMACEUTICAL PLATFORMVARIANT SPECIFICATIONS BENEFITS
lissage hydrolyzed protein, hydrolyzed wheat glucose capalimero
Nourishing and relaxing each fiber helping in nourishing & easy combing
hidraloe Natural essences For long hair volume control by nourishing and moisturizing
antisponge With hydrolyzers Prevents dehydrations and prevents hairfall while combing
COLOUR CARE PLATFORMVARIANT SPECIFICATION BENEFIT
Castanos intensos Jojoba oil Removes hair grease
Rubios radiantes
Chamomile extract Free radical scavenger (for external factors) preventing hair rust
Rojo vibrantes Red fruit extracts Increased recirculation of proteins through capillary resistance thus preventing hairfall
Negros lumioscs
melanin Maintains the black lustre of hair
MAKING CHANGE: SUNSILK TO SEDALIncrease the rate of innovation in terms of
specifications
Extend product lines to hair treatment creams , hair styling gel , hair fixatives etc.
Introduction of new variants & products to capture the market , specially the A & B socioeconomic class
Change in communication
Research revealed two of the most pressing needs of consumers in Mexico: HAIR FLUFF & HAIR LOSS
Sedal “anti-sponge” has an essential ingredient avocado which is a hydrating complex to hydrate hair fibres and prevent them from refluffing all day long
Sedal ”Caida Defense” is enriched with vitamins A & E which strengthens the hair fiber, making it more resistant to attacks , preventing the hair to weaken, crack and facilitating the hair both wet and dry
MAKING CHANGE: SUNSILK TO SEDAL
Increase the rate of innovation in terms of specifications
Extend product lines to hair treatment creams , hair styling gel , hair fixatives etc.
Introduction of new variants to capture the market , specially the A & B socioeconomic class
Change in communication
Global campaign “life cannoit wait” by sedal highlighting Marilyn Monroe, Madonna and Shakira the three most iconic women inThe history of the entertainment world showcasing their attitude and how their hair identified them in every stage of their career
The goal of this campaign was to inspire women to take advantage of opportunities presented to them, to live today and make life happen to them now, using, among other things, their hair as a vehicle to transform their look and assert their identity
Source: Latin American journal , really information center ; mexico teen magazine cutout
SEDAL-SUNSILK MIGRATION
El Salvador & Costa Rica
Stage 1: Through change in presentation of labels
•Concept of rebranding was carried out usingDouble label concept
•The goal was to get consumers to see the brand “sunsilk” on the packs but when they removed the superimposing flap they could observe “sedal” on the same pack
Source: Latin American journal , really information center
SEDAL-SUNSILK MIGRATIONEl Salvador & Costa Rica
Stage 2: Introduction of new formulation
•Research had revealed that around 63% of consumers dye their hair; so a new variety in the form of color protect shampoo was launched specially for El Salvador & Costa Rica
•It was hoped that the consumers will notice the new look and feel of the new “sunsilk” or “sedal” as the removable stickers revealed
Launch of new range
New innovative formula
Extra conditioning
Essential point of sale activities were undertaken to communicate the brand change & variety launch
“Islands of change sedal” were introduced in major supermarket chains to ensure that consumers could see for themselves that the product had improved
ICS were exhibitors with beauty lounge area that analyzed hair charecteristics of participants & demonstrated the efficiency of sedal products on them for free on presentation of double label
Source: Latin American journal , really information center
SEDAL-SUNSILK MIGRATIONEl Salvador & Costa Rica
Stage 3 : continuous innovations & commercial variety
Campaigns were marked by commercials both based on emotion
•Around this time , packaging was also changed from 400& 250 ml varieties to 300& 200 ml varieties
•The change was mainly due to the closure of manufacturing plant in El Salvador & productsHad to be imported from Argentina & Brazil
•A 80 ml package was also introduced for all varieties
Source: Latin American journal , really information center
SEDAL-SUNSILK MIGRATION:Nicargua , Honduras , Guatemala , Panama
Having not a very good hold in these markets ; it was decided to replace “sunsilk” with the “sedal” brand completely
Before the launch of “sedal” ; inventory levels of “sunsilk” were gradually reduced at the point of sale so that it was economically feasible to withdaw SKU’s of “sunsilk” and replace them with “sedal”
STRATEGY:
Emphasis on international look & packaging
Launch of various variants at once to prove their expertise in hair care
Launch was geared up with the introduction of “vital color” and “islands of change sedal” campaign were all over these countries to support the launch Source: Latin American journal , really information center
SEDAL-SUNSILK MIGRATION:Nicargua , Honduras , Guatemala , Panama
Logistics carefully evaluated to minimize losses whilst total removal of “sunsilk” brand
Relaunch of the sunsilk line like“aloe” for dry hairUV melanin protectDNA for long hairWith new wording”sedal” and new package with new etiquette of the brand
Launch of new varieties began with “hindraloe” for people with wavy & curly hair2 months later saw the launch of “vital color” designed for colored hair
Advertising in mass media & Point of sale promotions continued for 5 months till the mark established itself
Line extension for allVarieties to•Styling cream•Treatment cream•Lotion treatment•Combing sprays & creams
Timeline : 2001-2003
Source: Latin American journal , really information center
sedal
pantene
head &
shoulders Har
savita
lan
ua
herbal
essence
sdove
others
0%
10%
20%
30%
40%
50%
60%
20032004200520062007
Sedal – the market leader
Market share in Central America (%)
Source : graduation thesis by yessica paola , ICHE