US Shampoo:
A Tale of Two Brands
MATRIX AND PANTENE
1
Our model of consumer decision making
– is your brand Meaningfully Different?
Successful brands are Meaningful, Different and Salient
Predisposition and in-market activation allow us to determine what drives your financial performance and the best way
for you to leverage volume share and/or to justify your price point now and in the future.
2
What is the overall
current equity for
Matrix and Pantene?
POWER AND PREMIUM
3
We assess current brand equity using two of our
key predisposition metrics
POWER is a prediction of the brand’s volume share based purely on perception, absent of
activation factors.
We report the Power score as a percentage share because we want to reflect the relationship it has
with Volume Share.
PREMIUM is the ability of a brand to command a price premium relative to the category average,
based purely on perceptions.
We report the Premium score as an index because we want to reflect the relationship it has with
in-market Price Index.
All the predisposition metrics are based on the same foundations (Meaningful, Different and Salient) combined in
different ways. All are validated to in-market results.
4
Brands with high Power drive market share and brands
with high Premium can charge more
We have learned brands that are Meaningfully Different are the ones that generate greater volume share and can
command premiums.
VOLUME BOUGHT
(index to average)
PRICE PAID
(index to average)
POWER
PREMIUM
0.44
0.68
2.2
0.93
1.00
1.06
LOW
MEDIUM
HIGH
LOW
MEDIUM
HIGH
Source: Shopcom panel data merged with equity survey responses. Based on comparing Power and Premium scores to shopping habits of 1600 consumers. Analysis includes 65 brands in 4 categories.
Low = bottom 25%, Medium = middle 50%, High = top 25%
5
Pantene is the strongest brand in the market in terms of brand equity
The strong predisposition that consumers have for Pantene translates into a willingness for consumers to pay more for that
brand. Meanwhile, the Matrix brand may not generate massive volume, but consumers are willing to pay a high price for it.
POWER
Are consumers
predisposed to
choose you?
KEY
20.0
Brands with high Power AND Premium
16.4
Brands with high Power OR Premium
Brands with low Power AND Premium
10.6
10.0
9.3
8.7
7.0
6.8
6.5
5.5
5.4
4.9
4.8
3.9
3.0
2.6
2.6
1.9
0.0
PREMIUM
Are they willing to
pay more for you?
6
Pantene Pro
V
Suave
Fructis
Clairol
Herbal
Essences
Dove
Tresemmé
Head &
Shoulders
Nexxus
John Frieda
Aussie
L'Oreal
Neutrogena
Matrix
Johnson's
118
83
108
104
101
104
96
111
117
102
105
103
117
83
Thermasilk Store brand
90
59
A quadrant map of Power and Premium shows the strength of
Pantene even more clearly, leaving its competitors far behind
Matrix sits in a clear niche, premium position along with its close competitors: John Frieda and Nexxus
PREMIUM BRANDS
MATRIX
POWER PREMIUM BRANDS
JOHN FRIEDA
NEXXUS
PREMIUM - Are they willing to pay more for you?
110
NEUTROGENA
100
L’OREAL
AUSSIE
PANTENE PRO V
FRUCTIS
TRESEMME
DOVE
CLAIROL HERBAL ESSENCES
HEAD & SHOULDERS
90
THERMASILK
SUAVE
JOHNSON’S
80
70
KEY
Brands with high Power AND Premium
60
2
4
UNDERPERFORMING BRANDS
7
Brands with high Power OR Premium
STORE BRAND
Brands with low Power AND Premium
6
8
10
12
POWER - Are consumers predisposed to choose you?
14
VALUE BRANDS
By looking at actual price compared with Premium we can
understand whether brands have the opportunity to charge more
Pantene chooses to build market volume power and strong relationships, rather than trade on the opportunity they have to
charge more. Although expensive Matrix is worth every penny.
PANTENE PRO V
JOHN FRIEDA
MATRIX
PREMIUM - Are they willing to pay more for you?
115
NEXXUS
110
FRUCTIS
105
TRESEMME
DOVE
100
NEUTROGENA
AUSSIE
HEAD & SHOULDERS
95
90
85
JOHNSON’S
SUAVE
0.9
8
L’OREAL
CLAIROL HERBAL ESSENCES
1
1.1
ACTUAL PRICE INDEX (Shopcom)
1.2
Where does the
equity for Pantene and
Matrix come from?
BEING MEANINGFUL, DIFFERENT AND SALIENT
9
To understand equity - we need to look at whether brands are
meaningful, different and salient
Being Meaningful, Different and Salient is the foundation for creating a strong brand. Using these foundations we can
combine the measures to understand how predisposed consumers are to a brand.
10
Depending on the objectives for your brand - growing Premium or Potential
- being Meaningful, Different or Salient may become more important
47%
50%
14%
48%
POWER
38%
In the Haircare category POWER or Volume is
driven by ‘Meaningful’ and ‘Salient’.
11
PREMIUM
3%
However if brands want to charge a PREMIUM,
they need to be ‘Meaningful’ and ‘Different’.
Understanding how Meaningful, Different and Salient
your brand is: The Propeller
1. First we plot how important Meaningful, Different and Salient are in explaining Power within the
category, as in a pie chart.
2.
We then add how strong your brand performs on each of Meaningful, Different and Salient.
The numbers are indexed against the category average.
3.
We overlay an ‘average’ circle (100) so you can see how your brand is performing compared
with the category.
4.
The final red circle in the centre indicates your brand’s Power, the likely share of market of
your brand based purely on predisposition.
Meaningful
Different
Index 100
12
Salient
Power
Understanding Meaningful, Different and Salient in the
Haircare market
With its strong Power score, it is unsurprising that Pantene is both ‘Meaningful’ and ‘Salient’. But unlike immediate competitors, it
also manages to be ‘Different’. This above average level of ‘Different’ for Pantene means that although a mass market brand,
consumers would be willing to pay a premium. This puts it in a strong position in comparison with close competitors.
Fructis
152
168
16.4
Suave
124 9.3 102
107 10.6
Herbal Essences
165
119 8.7
114
50
84
104
129
Meaningful
Different
Index 100
13
Salient
Power
Understanding Meaningful, Different and Salient in the
Haircare market
Looking at the smaller, more niche brands, Matrix and direct competitors are also viewed as being ‘Different’ and ‘Meaningful’
- but are, of course, weak for ‘Salient’. The weak level of ‘Salient’ is causing Matrix to have a low Power score. However these
small, specialist brands are ‘Different’ and ultimately worth more because of their exclusivity.
3.0
100
71
Nexxus
John Frieda
5.5
5.4
93
70
99
129
145
Meaningful
152
79
Different
Salient
168
16.4
129
156
Index 100
14
Pantene Pro V
Power
How can equity for
Pantene and Matrix
be leveraged?
What are the steps to
take to improve?
BRANDDYNAMICS™ DIAGNOSIS AND IN MARKET ACTIVATION
15
Image associations drive the components of equity
We build models for each study which help us identify how image associations group together to drive the components of equity.
Look really good
Care for your hair
Feel confident
Makes you feel happy
Good deals / price discounts
More acceptable price
Heard a lot about
Have great advertising
Is the most famous
Unmistakeable look
Are fun to talk about
Like to post or read
Would follow
Feel a connection to others
Values that you identify with
Make lives better
Values you can connect with
16
Functional
Emotional
Value
Meaningful
Buzz
Different
Fame
Community
Affiliation
Purpose / Ideal
Salient
POWER
Using the Image Diagnosis we are able to simulate the best way
forward for brands
•
•
•
Our simulator is designed to help clients optimise investments for better returns
It will simulate what might occur in different scenarios for the brand
It provides a simplified representation of marketing processes used to understand how to predict or control
+1%
+5%
+3%
+3%
+2%
+1%
+3%
17
For the US Shampoo data there are 11 independent ‘levers’
that we can pull to influence brand predisposition
Functional
Associations
Make your hair look really good
Care for your hair better than others
Are always trying to improve their products
Emotional
Associations
Make you feel confident
You have a higher opinion of than others
You would be proud to use
You trust more than others
Using them makes you feel happy
You want to be seen using
Understand what is important to you
Are a part of you and who you are
Value/Price
Buzz
You have heard a lot about recently
Have great advertising
Fame
Is the most famous brand of shampoo
Easier to find than others
Have an unmistakable look
Community
18
Always offer good deals or price discounts
Are at a more acceptable price than other similar shampoos
You would like to post or read about online
Are fun to talk about
Feel a connection with other users
Like to follow on social networking sites
Listen to you don’t just talk at you
Empower you
Purpose/Ideal
Affiliation
Environmental
/Natural
Distinctive
Committed to make the world a better place
Are trying to make people’s lives better
Improve people's lives
Have values you can identify or connect with
Would make world worse if they did not exist
Are authentic
Would deserve a second chance if they made a mistake
Feel a connection to others
Have values you identify with
Contain more natural ingredients than others
Are more environmentally friendly than others
Stand for something unique
Offer something different to others
Are different in a good way
(Too) Exclusive
Cost more than you are prepared to pay
Are Glamorous brands
Are difficult to find
Only appeal to specific type of people
Quality Barrier
Don’t care for hair well enough
Don’t make hair look good enough
Are too cheap to be of an acceptable quality
Contain too many artificial ingredients
Building Power in Haircare is about balancing emotional and
functional characteristics, with value
Associations that have a negative contribution
Emotional
Associations
Associations that have a positive contribution
34%
Purpose /
Ideal
Buzz
Exclusivity
Barrier
4%
5%
15%
-6%
POWER
6%
Fame
10%
Functional
-6%
Quality
Barrier
7%
Community
7%
Distinctive
Power: Emotional benefits at a good price, built on strong functional foundations.
NOTE: Value and Environmental / Natural make small positive contributions
19
Value/Price
The mass market Pantene performs well on emotional
and functional values. It is also thought of as ‘famous’
Importance to Power
Pantene Pro V
Emotion
Price value
44
-23
Function
Distinctive
64
-30
Community
-13
Quality barrier
-16
Fame
Exclusive
34
-23
Buzz
CSR/Affiliation
Value environment
11
-13
-35
•
•
•
•
•
•
•
•
Make you feel confident
Higher opinion
Proud to use
Trust more
Make you feel happy
Want to be seen using
Understand what is important to you
A part of who you are
• Make your hair look good
• Care for your hair better
• Always trying to improve their products
• Most famous brand
• Easier to find
• Have an unmistakable look
Pantene should continue to appeal to consumers at both an emotional and functional level. Because they are stronger
on functional values they could consider building emotional associations (especially given its importance to Power).
20
But which emotional associations to build?
Looking at how the emotional and functional associations group together will help direct recommendations for Pantene.
You trust more than others
NEUTROGENA
HEAD AND SHOULDERS
THERMASILK
NEXXUS
Care for hair better than others
You would be proud to use
JOHN FRIEDA
DOVE
Understand what is important to you
Are always trying to improve their products
You have a higher opinion of than others
Axis 1 48.6%
MATRIX
L’OREAL
TRESEMME
You would want to be seen using
PANTENE PRO V
Make hair look really good
SUAVE
AUSSIE
Make you feel confident about yourself
FRUCTIS
CLAIROL HERBAL ESSENCES
Are part of you and who you are
Using them makes you feel happy
Axis 2 23.7%
= Correlation < 0.50
Bi-plot analysis
21
Leveraging Functional Associations
From the positioning map we see that in the Haircare market some functional benefits are clearly related to more emotional
associations. Pantene has particularly strong Functional associations. They could leverage these in an emotional way to help
build strength in ‘understand what is important’, ‘proud to use’, ‘want to be seen using’ and ‘confidence’.
FUNCTIONAL ASSOCIATIONS
Always trying to improve their products
Care for your hair better than others
EMOTIONAL ASSOCIATIONS
Relate to…
Understand what is important to you
You would be proud to use
You want to be seen using
Make hair look really good
Make you feel confident about yourself
22
To justify a Premium for Haircare brands the most important thing
is to avoid perceptions of poor quality...
Quality Barrier
QUALITY BARRIER…
-28%
Doesn’t care for hair well enough
Doesn’t make hair look good enough
Others*
3%
Fame
4%
Exclusivity
6%
Community
17%
Contains too many artificial
ingredients
PREMIUM
5%
14%
5%
Purpose /
Ideal
Emotional
Associations
Is too cheap to be of an
acceptable quality
Distinctive
7%
Buzz
11%
Functional
Associations that have a negative contribution
Associations that have a positive contribution
…strong Emotional and Functional associations are also key, but the offer has to be Distinctive and preferably
supported by some Buzz.
* Value and Environmental / Natural make small positive contributions
23
For Matrix, we need to understand what helps drive
their strong Premium score
In addition to emotional and functional associations, which are important in explaining Premium, they have strong exclusivity
associations.
HEATING UP
HOT
QUALITY BARRIER
Negative Contribution
Positive Contribution
IMPORTANCE TO PREMIUM
25
20
They are not considered to be
particularly ‘distinctive’ and
this is important for Premium.
Something they could try to
build in the future.
EMOTION
15
DISTINCTIVE
FUNCTION
10
BUZZ
5
CSR/AFFILIATION
COMMUNITY
EXCLUSIVE
FAME
PRICE VALUE
-20
VALUE ENVIRONMENT
0
20
40
MATRIX
24
60
80
100
Matrix makes consumers feel ‘proud’ and they ‘want to be
seen using’ it. It’s also glamorous and expensive
EMOTION
EXCLUSIVE
+28
+102
Make you feel confident
9
Cost more
You have a higher opinion of than others
12
You would be proud to use
13
Glamorous
You trust more than others
4
Using them makes you feel happy
4
Difficult to find
Want to be seen using
Understand what is important to you
Part of you and who you are
These are key strengths for Matrix to leverage
25
56
51
25
12
2
Only appeals to specific people
3
22
Understanding In-market Barriers and Facilitators
Understanding how Volume flows between the brands and what happens in-market enables us to link brand predisposition to
volume share and completes the pieces of the consumer decision making model
Bridging the gap between intent and action
26
The Volume Flow analysis is anchored in the linkage between
Predisposition and Volume
The framework allows us to assess inherent brand strength but to also break out volume opportunity and risk.
% of market which is
DIVERTED away from you
% of market which is
CONVERTED to you at
the point of purchase
% of market who is
predisposed to choosing you
% of market who is
buying you
In-Survey
Volume
POWER
% of market which is FULFILLED for you
27
Volume Flow analysis
5.5%
1.8%
Diverted
Converted
Volume not due to
predisposition/ equity
Fulfilled
Volume due to
predisposition/ equity
8.0%
Total
Volume
19.4%
Predisposition/ equity that
doesn’t translate to Volume
11.4%
1.3%
1.1%
Total
Volume
2.4%
Around 40% of Pantene’s volume share is not due to its strong levels of equity. It is thanks to the sheer in-store
presence of a brand of its size. More than half of Matrix’s equity is not translated into sales = a huge opportunity for
them to leverage on the strength of their brand in store.
28
In Market Barriers and Facilitators: Pantene
Pantene leverages its strong distribution in-store using deals and packaging to encourage those who have no predisposition for
the brand to choose them.
5.5%
0.0
0.3
0.8
Diverted
0.2
0.6
-0.1
8.0%
Converted
19.4
16.9
11.4%
Fulfilled
Power Share
Good price
Diverted
Converted
Fulfilled
29
Competitors
cost too much
Deals and
promo
Unmistakeable
look
(packaging)
Easy to find
Predisposition/ equity that doesn’t translate to Volume
Volume not due to predisposition/ equity
Volume due to predisposition/ equity
Competitors
hard to find
Total share of
volume
In Market Barriers and Facilitators: Matrix
Matrix does not activate well in-store. It should consider improving its packaging to leverage its ‘exclusive’ associations with the
aim of becoming unique, easy to find and unmistakeable.
0.0
-0.1
2.9
Power Share
Good price
Diverted
Converted
Fulfilled
30
Competitors
cost too much
0.0
-0.2
Deals and
promo
-0.1
Unmistakeable
look
(packaging)
Predisposition/ equity that doesn’t translate to Volume
Volume not due to predisposition/ equity
Volume due to predisposition/ equity
Diverted
1.3%
Converted
1.1%
Fulfilled
19.4
-0.1
Easy to find
1.8%
Competitors
hard to find
2.4
Total share of
volume
What is the future
potential for
Matrix and Pantene?
POTENTIAL
31
We assess future brand equity using our final
predisposition metric: Potential
Consumers are predisposed to stick with the brand in the future, or try it.
This will prime the brand for future value share growth.
POTENTIAL
% Brands Gaining Share
vs.
% Losing Share
AVERAGE VALUE SHARE CHANGE
(%)
47%
33%
19%
+6.9
-4.9
-1.4
% brands
losing
share
25%
37%
52%
LOW
MEDIUM
HIGH
LOW
Source: Millward Brown’s validation dataset, including 350 brands from diverse categories (CPGs and non CPGs). Lose/Gain 0.2 points of market share.
Low = bottom 25%, Medium = middle 50%, High = top 25%
32
MEDIUM
HIGH
% brands
gaining
share
Plotting Potential against Power allows us to sort brands
into simple typologies
As a result of its inherent brand strength Pantene is likely to hold its value market share in the future. Matrix; a strong little brand
that’s going place is also primed to grow.
HEATING UP
HOT
POTENTIAL - Is your brand set to grow in the future?
PANTENE PRO V
MATRIX
JOHN FRIEDA
THERMASILK
FRUCTIS
NEUTROGENA
CLAIROL HERBAL ESSENCES
STORE BRAND
JOHNSON’S
COLD
33
NEXXUS
L’OREAL
DOVE
TRESEMME
AUSSIE
HEAD & SHOULDERS
SUAVE
POWER - Are consumers predisposed to choose you?
COOLING OFF
Understanding Pantene brand equity
With a strong Power and Premium score, Pantene has great predisposition which
translates into a willingness for consumers to buy more and pay more for the brand.
Pantene is such a strong brand because it is thought of as being ‘Meaningful’,
‘Different’ – something that is not a strength for its near competitors - and Salient’
Pantene has a broad base of functional associations and could use these to help
build stronger emotional associations for the brand.
Pantene has good in-store presence. Which means it gains a significant amount of
sales not due to equity (rather good distribution). Pantene leverages this distribution
using deals and packaging.
34
Recommendations for Pantene
Pantene is a very strong brand with a range of emotional and functional strengths.
These associations translate into Pantene being Meaningful, Different and Salient.
They should use these strengths to continue to create a ‘buzz’ around the brand and
be on the look out for emerging trends.
Pantene does not translate all of its strong equity into sales. It could leverage its
current in-store strengths (packaging and deals) even further to turn this ‘opportunity’
into volume.
Pantene should leverage their functional associations in an emotional way to help
build strength in ‘understand what is important’, ‘proud to use’, ‘want to be seen
using’ and ‘confidence’.
35
Understanding Matrix brand equity
Because Matrix is ‘Meaningful’ and ‘Different’, consumers think of it as being worth
more – despite the fact that amongst the total sample, it has low levels of ‘Power’.
Matrix is thought of being ‘worth more’ because of associations with ‘exclusivity’.
The brand makes consumers feel ‘proud’ and they ‘want to be seen using it’.
Matrix does not activate well in-store and more than half of Matrix’s equity is not
translated into sales.
36
Recommendations for Matrix
Given Matrix’s position in the market, it should consider growing levels of ‘unique’
– standing for something unique or being different in a good way. We know that this
could help them grow levels of ‘Premium’ which will help overcome the price barrier
and ultimately grow share.
There is a huge opportunity for Matrix to leverage on the strength of their brand in
store. It should consider improving its packaging to leverage its ‘exclusive’
associations with the aim of becoming unique, easy to find and unmistakeable.
37