The Brand – An Introduction

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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.
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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.
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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.
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Brand Dossier on Clinic Plus Shampoo
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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.
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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.
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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:
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
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.
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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:




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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.
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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
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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.






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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
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