BRAND DOSSIER - CLINIC PLUS Faculty in Charge: Prof. Srinivas Govindrajan Submitted By: Karan Singh Nagra Gaurav Bhattacherjee Dipika Agarwal Mukund Ramasubramanian [B13027] [B13026] [B13025] [B13035] Brand Dossier on Clinic Plus Shampoo Phase One – Literature Review PHASE ONE LITERATURE REVIEW 2|P age Brand Dossier on Clinic Plus Shampoo Phase One – Literature Review TABLE OF CONTENTS Title Page No. 1.0. The Unilever Group…………………………………………………………………………………………04 2.0. The Brand – An Introduction…………………………………………………………………………..04 3.0. Brand History & Evolution……………………………………………………………………………...06 4.0. Brand Positioning…………………………………………………………………………………………...09 5.0. Brand Repositioning……………………………………………………………………………………….09 6.0. Advertising……………………………………………………………………………….......................09 7.0. Sales Promotion……………………………………………………………………….......................11 8.0. Brand Segmentation………………………………………………………………………………..…….12 9.0. Product Analysis & Competition…………………………………………………………….………13 10.0. Competition Tackling Strategy…………………………………………………………………..…..14 11.0. Distribution Strategy………………………………………………………………………………..…….15 12.0. Future Directions…………………………………………………………………………………..……….16 13.0. References……………………………………………………………………………………………………..17 3|P age Brand Dossier on Clinic Plus Shampoo 1.0. Phase One – Literature Review THE HINDUSTAN UNILEVER GROUP Hindustan Unilever Limited (HUL) is an Indian consumer goods company based in Mumbai, Maharashtra. It is owned by Anglo-Dutch Company Unilever which owns a 67% controlling share in HUL. HUL's products include foods, beverages, cleaning agents and personal care products. HUL was established in 1933 as Lever Brothers India Limited and, in 1956, became known as Hindustan Lever Limited, as a result of a merger between Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and employs over 16,500 workers, whilst also indirectly helping to facilitate the employment of over 65,000 people. The company was renamed in June 2007 as “Hindustan Unilever Limited. Lever Brothers first commenced operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG). Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products. 2.0. THE BRAND – AN INTRODUCTION Clinic plus is a hair care brand, primarily aimed at women and produced by the Unilever Group. Clinic plus is Unilever's leading hair care brand, and ranks as one of the Anglo-Dutch conglomerate's "billion dollar brands". Clinic plus shampoos, conditioners and other hair care products are available in the markets of around sixty nine countries in the world. Clinic plus is sold under a variety of different names in markets around the world such as Elidor, Seda and Sedal. The brand is strongest in Asia, Latin America and the Middle East and is the number one hair care brand in Brazil, Argentina, Bolivia, Sri Lanka and Thailand. 4|P age Brand Dossier on Clinic Plus Shampoo 5|P age Phase One – Literature Review Brand Dossier on Clinic Plus Shampoo 3.0. Phase One – Literature Review BRAND HISTORY & SUBSEQUENT EVOLUTION Clinic Plus was launched in 1987. It was launched in the UK in 1954, and by 1959 it was available in 18 different countries worldwide. At the time, Clinic plus had an advantage over other shampoos in the market as it only needed one application, and so meant washing less natural oils from the hair. Clinic plus cream shampoo for dry hair was launched in 1956. In 1958, a new transparent polythene tube for the liquid shampoo was introduced as an alternative large size pack to the bottle. Clinic plus was also available in the new transparent polythene tubes. In 1960, Clinic plus Tonic shampoo was launched, containing skin healing ingredient Allantoin- designed to help keep the scalp free from infection. In 1961, Clinic plus Liquid shampoo was re-launched as Clinic plus Beauty, because 'Liquid' in the name, which was originally used to distinguish the product from powdered shampoos had become meaningless as the majority of shampoos were now in liquid form. Clinic plus significantly improved product formula and launched new variants in 1966: the first major shampoo to contain olive oil, which acted as conditioner to make hair soft and manageable; shampoo for dull hair, which restored hair's natural shine; lemon shampoo for greasy hair. Clinic plus hair spray was first launched in 1964 to enter an expanding hairspray market, but in 1966 a new product formula was developed which gave hold, even in damp weather whilst still caring for hair. The hair spray contained a French perfume and could be easily removed by brushing In 1969, all Clinic plus shampoo was re-packaged in new PVC bottles, which were larger than traditional glass bottles for the same price. Clinic plus conditioner was launched in 1971 with three variants for dry, normal and greasy hair. In 1973, Clinic plus launched an aerosol dispensed setting lotion. An economy size shampoo bottle was introduced for Clinic plus in 1974. In 1975, Clinic plus became the biggest name in hair care with 1,000,000 packs being sold every week. In 1980, the whole Clinic plus range was re-launched, with improved formulations and packaging design to bring the brand into the 1980s. 6|P age Brand Dossier on Clinic Plus Shampoo Phase One – Literature Review In 2001, Clinic plus moved into the hair colorant market for Asian-type dark hair, offering a range of seven permanent colors from natural black to copper with purple, red and gold tints. In 2003, Clinic plus launched a new range of shampoos and conditioners, which were developed to meet women's hair needs and reflect the way women think about their hair. The fake institute (a trademark by Sedal) "Elida Hair Institute" developed the products in response to market research. Each product contained a unique formulation of ingredients, combining the best from natural and scientific worlds to help combat common hair problems. 7|P age Brand Dossier on Clinic Plus Shampoo 8|P age Phase One – Literature Review Brand Dossier on Clinic Plus Shampoo 4.0. Phase One – Literature Review BRAND POSITIONING In marketing, positioning is an organization’s attempt to have its products/services perceived by customers as superior to those of competitors, and by inference, to be able to protect that position against competitive inroads. In simple terms, positioning is creating an image of the company’s brand in the eyes of the consumer as better than the competitors. INITIAL POSITIONING: The initial positioning stance adopted by Clinic Plus was that of a shampoo offering five hair health benefits, which were strengthening weak hair, preventing hair breakage, softening rough and dry hair, shine for thick and healthy hair and possessing anti-dandruff capabilities. 5.0. BRAND REPOSITIONING Repositioning refers to changing the place an offering occupies in a consumer’s mind relative to competitive offerings. The brand has repositioned itself from ' No Dandruff ' to “Soft and Silky Hair " which is a major change in its positioning. However, the brand retains its core positioning of no-dandruff but is adding additional benefits of soft and silky hair. Clinic is now a standalone brand with the positioning of a Health shampoo. 6.0. ADVERTISING Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertisers include not only business firms but also charitable, nonprofit, and government agencies. 9|P age Brand Dossier on Clinic Plus Shampoo Phase One – Literature Review The Clinic Plus advertisement campaign focuses on the following: Increasing the usage. Conditioning benefits. Making the hair appear clean and shiny. Imparting a feeling of freshness-due to fragrance. Easy to manage, silky, soft hair. Unique shampoo for every hair type. Effectively communicate brand promise. Clinic Plus also roped in several celebrities as a part of their promotional campaign in order to increase the brand presence across the country. For example, Asin was the brand ambassador and this helped in creating the customer base in South India. Shahid Kapoor has been roped in to attract the youth. These promotional campaigns have really helped Clinic Plus to establish a strong customer base in India. 10 | P a g e Brand Dossier on Clinic Plus Shampoo 7.0. Phase One – Literature Review SALES PROMOTION Sales Promotions are inducements or gimmicks whose purpose is to encourage the purchase of a product/service immediately. Unlike advertising, where the objective is usually to influence long-term buying behaviour, sales promotions are concerned with the short-term. A problem with promotions is that they sometimes cause consumers to focus more on the promotion than the product. In fact, sometimes consumers are not at all loyal to the product but are attracted to the coupon, gift, or rebate. Some examples of sales promotions aimed at consumers (consumer promotions): (a) coupons (b) free samples (c) refunds and rebates (d) demonstrations (e) premiums (gift for purchasing a product) (f) contests and sweepstakes (g) advertising specialties (some common ones are calendars, caps, refrigerator magnets, and pens with the name of the product or company) (h) point-ofpurchase displays (displays in stores that are often used for impulse items such as magazines and candy) (i) shows or exhibits for consumers (J) special events (k) frequent-shopper gifts. The promotional activities carried out by Clinic plus include: 11 | P a g e Tie ups with television shows and effective use of Brand Ambassador: HUL had a Tie up with SONY Entertainment Television. The commercial brings the key attribute `Confidence' to the forefront. Shahid Kapoor highlights the importance of confidence when, one is in the spotlight by saying “Jo spotlight mein All Clear, Wo Fame ke Near”, followed by an appearance of Ila Arun promising “Jo All Clear hain, Use Fame hum denge”. Promotion Through Television Shows: -'Clinic All Clear Dream Job' talent hunt Campaign: ESPN Star Sports (ESS), the leading sports broadcaster has launched the 'Clinic All Clear Dream Job' a national level talent hunt for a sports presenter. Brand Dossier on Clinic Plus Shampoo 8.0. Phase One – Literature Review SEGMENTATION Segmented Marketing is a form of market segmentation in which the total market is divided into sub-groups of consumers who exhibit differing sensitivities to one or more marketing mix variables and for whom a unique marketing program is developed. In simple terms, it refers to targeting a set of customers with similar needs and wants. Clinic is the popular shampoo brand from HUL for primarily the men. The key positioning of the brand revolves around the theme of anti-dandruff. Clinic has two main sub-brands under it: Clinic Plus was launched in 1987, it is for the ‘Striving’ or mass-segment. It promises to offer five-fold benefits: strengthens weak hair, prevents hair breakage, softens rough dry hair, shine for thick and healthy hair, and contains anti-dandruff ingredient. Normal Indian family being the target segment ads of this brand shows people in common day situations having great hair by using the brand. To change the typical Indian mind-set of using Shampoo only once or twice in a week and to promote use of shampoo – latest Clinic ads focus on using shampoo every day. Clinic All Clear was launched in 1996, it is for the ‘Affluent’ or class-segment. It is positioned as ‘dandruff solution for everyday use’. The two key benefits that this brand promises are: no dandruff and less hair fall. The target segment of the brand being the premium class – to project that premium image the brand ads uses celebrities like Shahid Kapoor, John Abraham and Bipasha Basu solving their hair problem using Clinic All Clear. One variant of this brand ‘Ice Cool’ provides the added benefit of cool feeling. Similar to Sunsilk – this brand has also lately tried its hand at online viral marketing to engage users through its website using the contest named ‘Make Your Own Movie Challenge’. Of late Unilever wants to have a uniform brand image for its anti-dandruff shampoo across the world. As a result, they ran a transition campaign to slowly convert Clinic All Clear to just Clear. Clear is the international Unilever shampoo brand. For this transition first they made the ‘Clear’ part in ‘Clinic All Clear’ prominent and then slowly removing the Clinic name to settle for just CLEAR. 12 | P a g e Brand Dossier on Clinic Plus Shampoo 9.0. Phase One – Literature Review PRODUCT ANALYSIS & COMPETITON Strengths: The largest selling Shampoo brand in India launched in 1971. The most widely distributed Shampoo brand in India. Good advertising and brand presence along with celebrity tie-ups. Weakness: Some Consumers are reluctant to use shampoos with chemicals. Dominance only in the anti-dandruff shampoo segment, no variants available for normal shampoo usage. Low market share even in the anti-dandruff shampoo segment as compared to competitors like Head & Shoulders. Opportunity: Aggressive Advertisement in Rural Markets Rural penetration through sale of sachets High untapped market in the rural segment Threats: Brand loyalty in shampoo is very low Frequency of shampoo usage is low Presence of international players and brands Competition: 13 | P a g e Pantene Rejoice (Procter & Gamble) Chik (Cavin Care) Head & Shoulders (Procter & Gamble) Brand Dossier on Clinic Plus Shampoo Phase One – Literature Review 10.0. COMPETITION TACKLING STRATEGY Clinic Plus adopted three ways through which they were able to successfully tackle competition. The strategy adopted by Clinic plus is as explained below: 1. Position Defense Strategy: Clinic Plus is a brand marketed by Hindustan Unilever Limited. HUL has a strong market presence in India and has good ties with retailers and distributors. This was an advantageous position which acted as a barrier for new entrants as this restricted their shelf space. 2. Counter Offensive Strategy: The major competitor and threat as far as HUL was concerned was Procter and Gamble. P& G introduced shampoos like Chik and Rejoice to eat into the market share of Clinic Plus. P&G tried to make inroads by reducing the price of the shampoos marketed by them. In return, HUL offered one bottle of Clinic Plus free with every bottle purchased. HUL has always believed that it can increase the market share by driving up the consumption rates and frequency of usage. This plan was aimed to do just that. Moreover, it helped HUL to make people migrate from sachets to bottled packs quite easily. 3. Low Pricing Strategy: The net worth of the Indian shampoo market is about 1000 crores. HUL holds around 65% of the market share out of which 31% is held by Clinic Plus. HUL also enjoys a price advantage over its competitors. With low pricing strategy, HUL was able to increase the purchasing frequency of shampoo, thereby fortifying its market position. 14 | P a g e Brand Dossier on Clinic Plus Shampoo Phase One – Literature Review 11.0. DISTRIBUTION STRATEGY HINDUSTAN UNILEVER LTD CARRYING AND FORWARDING AGENTS MODERN TRADE _ SUPERMARKETS REDISTRIBUTION / STOCKIST / DISTRIBUTION SALESMEN WHOLESALERS KIRANA STORES SUPER VALUE STORES Figure – Distribution Channel 15 | P a g e Brand Dossier on Clinic Plus Shampoo Phase One – Literature Review Distribution Objective: “To reach as many towns and villages as we can” Hindustan Unilever Limited has 150 distributors whose function is to sell to wholesalers directly. There are different distributors for different areas. They are carefully selected and their performance is constantly evaluated. Unilever have their own logistic to distribute their product to the entire retailer, reseller. We can find these entire products at supermarket, hypermarket, grocer shop and many of those home based grocer shops. 12.0. FUTURE DIRECTIONS Clinic Plus currently holds 31% out of the 65% market share of Hindustan Unilever Limited. This is a sizeable number. In order to increase its market share and popularity, the brand needs to focus on people who do not use shampoos. They need to reposition Clinic Plus as a shampoo which has a lot of goodness in it when compared to chemicals. Some of the measures that can be taken in order to increase the growth rate and find a place in the minds of people are as mentioned below. 16 | P a g e Bring out herbal shampoos Create awareness in the minds of people who do not use shampoos. Take measures such as offering freebies to increase the frequency of purchase. Bring the rural markets into the marketing map of the product. Create an efficient distribution system that will cater to the needs of the rural customers. Clinic plus should try to expand their business on a global level. Brand Dossier on Clinic Plus Shampoo 13.0 Phase One – Literature Review References: www.hul.co.in http://www.mbaskool.com/brandguide/fmcg/844-clinic-plus.html http://seminarprojects.com/showthread.php?mode=linear&tid=87135 http://www.google.co.in 17 | P a g e