UNIVERSITY OF WATERLOO
Faculty of Arts
HERBAL ESSENCES: REBRANDING SUCCESS
ECON 344: Marketing & Consumer Economics
Waterloo, Ontario
Prepared for
Professor Harp Arora
Prepared by Team P:
Gurnit Bhatti ID 20234629
Kieng Iv ID 20233702
Matthew Lowe ID 20246814
Alice Lu ID 20238191
Tara Mathanda ID 20224148
Carmen Ka Yan Wong ID 20228731
Sherina Hsuan Yang ID 20247975
March 26th, 2009
TABLE OF CONTENTS
Executive Summary.................................................................................................................................i
1.0 Current Marketing Situation/Environmental Scan.............................................................1
1.1 Introduction................................................................................................................................................15
1.2 Product Review..........................................................................................................................................15
1.3 Market Description..................................................................................................................................25
1.4 Competition................................................................................................................................................25
1.5 Distribution Channels.............................................................................................................................35
2.0 Threats and Opportunities Analysis.........................................................................................4
2.1 External Threats Description...............................................................................................................45
2.2 External Opportunities Description.....................................................................................................5
3.0 Objectives and Issues...................................................................................................................64
3.1 Marketing Objectives..............................................................................................................................65
3.2 Issues Impacting the Attainment of Objectives.............................................................................75
4.0 Marketing Strategy.......................................................................................................................84
4.1 Achieving Objectives................................................................................................................................85
4.2 Growth and Targeting Strategy...........................................................................................................85
4.3 Target Market and Segmentation.......................................................................................................85
4.4 Product Strategy........................................................................................................................................95
4.5 Promotional Strategy..............................................................................................................................95
4.6 Pricing Strategy.......................................................................................................................................105
4.7 Distribution Strategy............................................................................................................................115
4.8 Attractiveness of Target Market.......................................................................................................115
4.10 Areas of Improvement.......................................................................................................................125
5.0 Action Programs.........................................................................................................................124
5.1 What and When was it Done?............................................................................................................125
5.2 Who was Responsible?.........................................................................................................................145
5.3 How Much Did It Cost?..........................................................................................................................155
5.4 What Could the Company Have Done Differently?....................................................................155
6.0 Financials......................................................................................................................................164
7.0 Controls..........................................................................................................................................174
8.0 Conclusion.......................................................................................................................................17
EXECUTIVE SUMMARY
Herbal Essences was originally aimed at all women who wanted natural and holistic hair care
products. This was a strategy that worked for Herbal Essences until most of their competitors also
started producing organic hair care products. Proctor and Gamble revamped the brand, giving it a
new youthful and vibrant look and targeted it towards the Generation Y market. Herbal Essences’
range of relatively inexpensive products designed to treat all sorts of hair types helped the company
successfully compete with their main competitors Pantene and Garnier Fructis by coming in at the
number two spot.
Based on a threats and opportunities analysis conducted, a few of the external threats
identified were: rising competition from lower priced store brands, illegal distribution of look-a-like
products, product cannibalism, past animal testing and Internet bashing sites. A few external
opportunities recognized were: exploring a new hydrating swirl technology, unique packaging
relative to competitors and product line expansion prospects.
The main objective Herbal Essences is trying to achieve is to revive their brand within the
shampoo industry. In hopes to accomplish this goal, their new campaign aimed to differentiate their
product from their competitors, increase awareness among their target audience and to offer
incentives for customers to choose their brand of products. However, some problems that may arise
which might have hindered their repositioning include:s customers attitudes, if they were unable to
respond positively to the new brand, and as well as competitors vying for the same target market.
Herbal Essences streamlined their marketing mix to appeal to their new target market,
Generation Y, through a newly formulated product, reaching the target audience through Internet
communication channels, and both competitor and value-based pricing. With a stronger promotional
pull strategy compared to their competitors, their newly rebranded image now appeal to Generation
Y's youthful self-concept as well as targets their need for many hair problem solutions.
The action plan is a continued implementation success. Promotions through electronic
mediums such as Facebook and YouTube, contests paired with MTV, and product tie-ins and content
wraps with popular television shows, work to create a cohesive promotional mix aimed at their target
market.
Herbal Essences spent 37.8 million on advertising expenditure to fund its rebranding and
increased its sales figures to 154 million. Measuring its success through brand awareness and market
share, Herbal Essence was awarded top rebranding in 2007 by rebrand.com indicating how
successful it was it was successful in rebuilding its brand equity. Herbal Essences success is also
evident through its 30 million increase sales within the first year of rebranding.
i
1.0 CURRENT MARKETING SITUATION/ENVIRONMENTAL SCAN
1.1 Introduction
According to Proctor and Gamble’s Annual Report their hair care lines are their core
business, leading the market with approximately a 20% share of the global hair care market.1 One of
these hair product lines includes the successfully revamped Herbal Essences. Herbal Essences started
off in the 1960’s as a brand of hair care products that included shampoos, conditioners, and hair
colour. This brand was first aimed at attracting people who wanted holistic and natural products,
having almost a hippie like image. It was later targeted mainly just to women. The brand was initially
under the control of the company Clairol. In 2001, when the brand was about 40 years old it was
acquired by Proctor and Gamble. By 2004, however, the brand was in “long term decline”. The main
problems causing the decline in sales were that the brands target market was too broad and the fact
that there was very little distinguishing it from the numerous other competitors in the market that also
emphasized organic and natural products.2 From the early 1990’s to the early 2000’s the ad campaign
for Herbal Essences mainly featured a woman washing her hair in the shower shouting “Yes, Yess”.
The advertisements played upon the words from their former tagline which was “totally organic” by
portraying women users having “orgasmic” experiences with the use of the product.3 This campaign
soon lost its appeal and Proctor and Gamble decided they hadit was necessary to revive the brand.
Through there own research such as, consumer questionnaires and observing the buying patterns of
young consumers, Proctor and Gamble discovered it would be best to focus their efforts on the
Generation Y market since there were no competitors targeting them specifically.4 Herbal Essences
products are still natural but they now have a more exciting, youthful, and luscious twist to them.
1.2 Product Review
Herbal Essences has a variety of hair care and colour products ranging from their 14fourteen
lines of shampoos, conditioners, and 2-1’s to styling products that include mousse, spray gels, and
hairspray. Each collection in the line has been specifically designed to meet different hair needs. This
includes products made particularly to treat items such as split ends, frizz, oily hair, dry/damaged
hair, coloured hair, curly hair and fine/limp hair. Consumer also haveConsumers also have the choice
of picking a conditioning formula as light or as intense as they would like.5 The brand is considered
to be a mid-level line of hair care products and is priced at approximately $3.99 per bottle of
shampoo and conditioner with styling products ranging between $4.00 to and $8.00.6 Proctor and
Gamble does not break down sales figures for specific products, however the company did report
1
after the re-launch of the Herbal Essences line that the brand had increasing sales growth rates in the
high single digits and reported $154 million is sales for the brand in 2006.7 In terms of distribution,
Herbal Essences products are sold at most major retailers, drug stores, and grocery stores. Since it is
a mid-level product it is not sold in salons.
1.3 Market Description
The new Herbal Essences brand strategy is aimed at the target market of, “spontaneous,
optimistic, altruistic, and experiential” Generation Y women, mostly ranging between the ages of 1834. Proctor and Gamble decided to target this particular market because they discovered that there
was no current hair care brand addressing the needs of this age group, and that this market wanted
new products to meet their specific hair needs. The women in this target market are individualistic
and like to have fun.8 This is reflected in the names of their products such as “Hydralicious,”
“Ttotally twistedTwisted,” “set Set me Me up Sstylers,” and “Ddrama Cclean.” They like to be aware
of the latest trends such as what hairstyles are in, and how they can obtain the latest looks using
effective styling products.9 The 18-24 age demographic of female users of the shampoo and
conditioner was the highest with usage per week being 5-7 times, representing 29.3% of the users of
Herbal Essences shampoos and conditioners. In terms of income, research shows that females with
an individual income between $10,000 and $45,000 are 57% more likely to be users of Herbal
Essences shampoos or conditioners. As individual income goes up there is a steady decrease in the
number of female users.10
1.4 Competition
Herbal Essences is the second best selling brand of shampoos and conditioners in North
America. In 2003 Herbal Essences had shampoo sales of $42.3 million and conditioner sales of $21
million. In 2006, Herbal Essences had overall product sales totalingtotalling $154 million. Their
biggest competition is Pantene, also a product of Proctor and Gamble. Pantene is the number one
selling brand of shampoos and conditioners having 2003 shampoo sales of $62.8 million and
conditioner sales of $48.6 million. In 2006 overall sales of all Pantene products were $249 million.
Other key brands competing in the shampoo and conditioner market include Garnier Fructis, Dove,
Head and Shoulders, and Suave.11
Pantene’s target market is young to middle aged women. As seen through their slogan “the
beauty of health” they mainly attempt to attract their target audience by producing a brand image of
2
improving the quality and strength of hair. Just like Herbal Essences, Pantene products also include
shampoos, conditioners, 2-in-1’s and various different styling products for different hair types such
as dry/damaged and flat. The focus of many of their products such as their restoratives line is geared
towards making hair as healthy as possible. These products moisturize the hair, defend against
breakage and strengthen and thicken the hair.12 Unlike the flashy, playful, colourful, and youthful
appearance of the website, commercials and print ads for Herbal Essences, Pantene’s website,
commercials, and ads are simple and informative. Their main point is to stress stronger and healthier
hair.13 Pantene is also relatively inexpensive but costs more then similar Herbal Essence products
(Refer to Appendix A). Patene'sPantene’s main channels of distribution include drug stores and
grocery stores. Although Pantene is a mass-market product it promises salon quality without the
salon price.
Another one of Herbal Essences top competitors is the L’Oreal line Garnier Fructis. In 2003
Garnier Fructis was the third best-selling brand of hair care products coming in after Herbal
Essences. In 2006 its overall product sales totaledtotalled $78 million (Different figure mentioned in
SWOT - we are using the 2006 $78 million, this is okay now - Carmen).14 78 .million. GGarnier has
the same target audience as Herbal Essences which consists of young womenEssences that consists
of young women aged 18-25. Just as Herbal Essences and Pantene Garnier Fructis’ line of products
also includes shampoos, conditioners, treatments, and styling products. Garnier focuses more on
using organic ingredients in their products to get hair looking its best. Each of the Garnier products
contain active natural ingredients that nourish the hair and make it look healthy. The products also
contain active fruit concentrate that acts to strengthen and smooth each strand of hair. Garnier goes
after their target market by using spokespeople that are the main characters of television shows aimed
at teens and young women. It is also involved in sponsoring shows watched most by their target
audience such as American Idol.15 Their website, commercials, and print ads are fun and exciting
with loud music. The Garnier products are very inexpensive costing just a little bit less then the
Herbal Essences products (Refer to Appendix A). These products are available at most mass retail
outlets, drug stores, supermarkets, and through some online websites. Garnier’s strategy for product
quality is using the best natural ingredients that will reverse signs of damaged hair such as the fruit
micro-oils apricot, avocado, and ceramide reconstructor.16 Garnier's main channels of distribution
also include drug store and grocery stores.
1.5 Distribution Channels citation for statistic??
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In terms of distribution, Herbal Essences and their competitors' products are sold at most
major retailers, drug stores, and grocery stores. Since these products are targeted to a wide audience
and are positioned as mid-level products, they not distributed to salons. Herbal Essences also
increased its distribution by over 25%. Distribution will be discussed further in the Marketing
Strategies section of this report.
(Distribution strategy will be further analyzed in Marketing Strategies discussion)
2.0 THREATS AND OPPORTUNITIES ANALYSIS
Although the Herbal Essences marketing campaign has generated a great deal of success, the
next two sections outline the major threats and opportunities that still exist.
2.1 External Threats Description
Intense competition globally. As mentioned in the previous section, Herbal Essences operates in a
very competitive market with main competitors Pantene and L'Oreal Garnier Fructis. In 2007,
L'Oreal achieved a 34.4% growth rate in Eastern Europe (an emerging market).17 Establishing
growth in emerging markets is vital as hair and beauty product sales have been declining for several
years in North America and Western Europe.18 With competitors of Herbal Essences increasing sales
in emerging markets, Herbal Essences must keep pace or risk losing market share on a global basis.
Rising competition from lower priced private label or store brands. Private label “copy cat”
products often sell at lower price points and earn higher margins because the retailers can control the
cost of their production.19 These me too items attract customers by offering a very similar product at
a lower price. Based on the recent economic downturn, cost conscious customers may opt for a
cheaper Herbal Essences imitation product. To compete, Herbal Essences can show more innovation
by continuously investing in Research and Development to show the distinction between a no-name
product and aan Herbal Essences product. This abundance of hair care products at lower prices is
expected to threaten Herbal Essences sales.
Illegal distribution of look-a-like products. In December 2008, Proctor and GambleP&G filed a
lawsuit against Blue Cross Laboratories (distributors of “Herbal Passions”) for copying the Herbal
Essences packaging to take advantage of customer awareness of the brand.20 Look-a-like products
can cause consumers confusion; should a customer buy the look-a-like and believe it to be Herbal
Essences, customer loyalty towards Herbal Essences would be damaged.
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Product cannibalism. Pantene is noted as one of Herbal Essences competitors, yet both fall under the
Proctor and Gamble (P&G) product line.21 With Proctor and GambleP&G having 5 different haircare brands in their US product offering alone, Herbal Essences has a risk of losing or taking away
sales from an existing Proctor and Gamble&G product line item.
Increase in prices of raw materials. As commodity prices have soared in recent years Herbal
Essences’ parent company Proctor and GambleP&G is currently witnessing significant increases in
its cost of goods sold. Nearly half of the company's cost of goods is directly related to commodity
goods.22 In August 2008, P&G indicated that their 2009 raw-material costs willwould probably
likely increase by $3 billion; these higher prices will add 3% to sales costs.23 Thus high commodity
prices are expected to hurt the company’s sales. Even in spite of the late 2008 declining commodity
prices, Proctor and GambleP&G has not rescinded its earlier cost estimates and increases in sales
costs.
Maintaining a low price strategy. Herbal Essences competes with a value proposition of offering a
quality product at a low price, relative to most brand name hair care products. However, Professor
Harp Arora argues that competing based on a low price strategy is the most difficult strategy to
maintain.24 Thus, Herbal Essences current low price offering poses a threat for the future.
Past animal testing and related bashing websites. Once upon a time, Herbal Essences tested its
products on animals. Although research involving animals has ended, except when required by law,
Herbal Essences maintains that animal testing will be used when there are no reasonable options.25
This has created a backlash in the form of a multitude of hate websites such as
www.hurtfulessences.org and a Hurtful Essences Facebook Group with over 4000 supporters (see
Appendix B).
2.2 External Opportunities Description
New hydrating swirl technology. In February 2009, P&G introduced a new a two-in-one "swirl"
technology in six of its Herbal Essences shampoos and conditioners, being marketed as Hydralicious.
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Herbal Essences marketing director Chris Keith, who was BrandWweek's 2008 Marketer of the
Year says that “It's the only leading shampoo with hydrating swirls." Swirl technology combines two
shampoos together to create a better hydrating formula; the moisturizers are released upon contact
with water.27 As this is a technology unique to Herbal Essences, a combination of TV, print and
online efforts, as well as a sweepstakes is being implemented to help boost Hydralicious sales and
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popularity. Should this patent-pending technology be approved, Herbal Essences could establish a
little monopoly in swirl technology hair care products.
Unique packaging relative to competitors. Herbal Essences redesigned packaging was completed in
18 months and exceeded expectations for effectiveness.28 Design managers at P&G noted that shape
catches the eye more than colorcolour, thus the way upright shampoo bottles and inverted conditioner
bottle shapes nest together visually instruct consumers that these are complementary products. Also,
consumers perceive that the new bottle shapes hold as much as 30% more product.29 These radical
changes to packaging design has led to increasing dollar share of the brand by 9% versus competing
brands and raising purchase intent by 20%.30
Memorable product names relative to competitors. Herbal Essences boasts 14 uniquely different
product names for each type of hair care product they produce (refer to appendix A). Product names
range from “long term relationship” meant for long hair, to “body envy” meant for voluminous hair.
No other hair-care line offers such charming names. Most companies such as Pantene opt for simple,
boring names such as “volume” meant for voluminous hair.31 Herbal Essences' appealing names
make its products stand out on shelves and difficult for consumers to forget about the brand.
Product line expansion prospects. With a product breadth of 14 different products targeting Gen Y
females, Herbal Essences has the potential to expand their product line into targeting men and
children. Following the suit of competitors Pantene and L'Oreal (who developed products specially
for men and children), Herbal Essences has excellent opportunities to learn from their
competitorscompetitors’ mistakes and successes when expanding to target different genders and
generational cohorts.
3.0 OBJECTIVES AND ISSUES ANALYSIS
3.1 Marketing Objectives
The main marketing objective that Herbal Essences wanted to achieve when repositioning
their product is to revive their brand within the shampoo industry. Hence, they wanted to “re-invent”
the brand and market towards a more youthful audience. Rather than targeting their previous market,
which was focused on an older target market, as well as focused mainly on the herbal and organic
aspect of the product, Herbal Essences wanted to reposition their hair products with a fun and
spontaneous appeal to Generation Y women, mostly ranging from teens to early thirties.32
In order to achieve their main objective to revive their brand within the shampoo industry,33
Herbal Essences broke down the objective into smaller goals. With their main competitors being
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Garnier Fructis and Pantene, Herbal Essences needed a marketing plan to differentiate their product
from the rest of the industry. They needed to offer an incentive for women to use their products
relative to their competition. This is the reason behind the entire re-branding scheme. Thus another
objective was to differentiate themselves from their competitors through their successful rebranding
launch. This gave way to another objective to increase product awareness among women and
associate the product with the sense of confidence that comes with using their products. Through
mass advertising on channels such as magazines, websites and television shows that were targeted for
younger women, Herbal Essences was able to achieve their underlying goals.
3.2 Issues Impacting the Attainment of Objectives
With such an idealistic and optimistic objective, it is without doubt that Herbal Essences
faces some difficult issues in making their product a success. Getting customers to accept their new
image is one of the biggest obstacles associated with rebranding. Because of the success they had
with their old campaign, which involved sensuous commercials with women in the shower,
customers may be confused with Herbal’s new image and what it aims to achieve. It is a very
difficult task to re-brand the as they were also known as the organic shampoo with the luscious smell.
That is the image Herbal needs to eradicate and replace. This is why Proctor Gamble spent over
$37.8 million alone in re-branding in 2007. They wanted to send out a clear message to audiences
and offer an appeal to buy their shampoo. Although their efforts have proven to be successful, it is
difficult to say how long this success will sustain as the campaign is relatively new. This leads also to
the issue of damaging their brand equity. If customers are not aware or cannot associate themselves
to with the new Herbal image, they may turn away from the brand and Herbal will lose potential
customers and future sales altogether. This is why it is important to ensure the brand is marketed to
fit customer ideals and needs. They need to be able to relate to the brand as a whole to accept it and
respond positively.
Another key issue arises from their competition within their industry. As Herbal Essences
faces a saturated market with competitors including Pantene and Garnier Fructis, they already have a
steady market share within their primary target audience. Therefore, consumers may be reluctant to
switch over. Regardless of Herbal Essences' best campaign efforts,; their marketing strategy just may
not be able to capture existing customers from their competition. For example, the Garnier Fructis
brand is well known in the industry with revenues over 78 million in 2006.34 and as their target
market is identical to Herbal, they are one of Herbal's biggest competition. SimiliarlySimilarly,
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Fructis' ad campaigns consistscampaigns consist of beautiful women with healthy hair and boasts of
organic ingredients in their shampoo. Hence, to ensure their marketing efforts are successful, Herbal
need to be able to differentiate and counteract by offering incentives for customers to choose their
products.
Ultimately, Herbal Essences faced numerous issues that could have potentially hindered their
success, but Herbal was able to overcome and diminish many of these issues from the start with their
unique product and marketing strategy.
4.0 MARKETING STRATEGY
4.1 Achieving Objectives
The objectives of Herbal Essences' new marketing plan were accomplished by changing its
target market, refreshing their marketing mix and repositioning itself within the hair care industry.
The target market was shifted to focus primarily on the Generation Y generational cohort, which led
to redeveloping and creating product value, utilizing both competitive and value based pricing,
requiring significant advertising expenditures and repositioning itself as the most unique and vibrant
brand in the industry.
4.2 Growth and Targeting Strategy
Proctor & Gamble's objective in revitalizing the struggling Herbal Essences brand was to
utilize a market development growth strategy. Herbal Essences took action(action (discussed in
Action Programs) to redevelop their product categories in order to cater to the specific needs of their
new target segment and to introduce these new products to a new market.35 Proctor & Gamble’s three
prongedthree-pronged growth strategy used to re-launch their other hair-care brands such as Head &
Shoulders and Aussie involved, “trading shoppers up via innovation; bringing in new shoppers,
especially premium/salon shoppers; and boosting the market basket.”36
4.3 Target Market and Segmentation
Aside from the general characteristics of Generation Y, Herbal Essences' further segments
their target market by focusing on specific hair-care values. One of the most important things that
women in these age groups require from hair products is a wide-variety of products that perform as
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expected and that meet their wide range of hair care needs. With 40% of consumers purchasing
shampoo to solve a specific problem, this research has shown that a one-size-fits-all approach is
ineffective at capturing this market.37 Women in this target market are also concerned about the
abrasiveness of hair products, with 60% of consumers avoiding daily hair washing due to the fear of
damage. Other values of the target market related specifically to hair-products include ethnic-specific
products, more specialized products targeting other aspects of hair care such as colouring and the
inclusion of natural ingredients.
In order for Herbal Essences to communicate their product messages to their new target
market, the a younger tone of voice was consistently used throughout their product packaging and
promotions.38 For example, product titles with relaxed names such as, “None of Your Frizzness” and
“No Flakin’ Way” appeal to their target market.(. (Appendix) This strategy of using youthful
language also appeals to female Baby Boomers who may be buying this product for their children, by
creating the sense of nostalgia. This strategy of using an informal tone of voice to reach their target
segment is both effective and appropriate, and avoids the mistake of using mature advertising to
target a young demographic.39 With its youthful advertising message, Herbal Essences’ main focus
was on younger girls who did not currently have a brand addressing their needs. Its strategy of
targeting the older part of the demographic segment was intended for mothers who would purchase
the products for their daughters. Herbal Essences’ conveniently used the youthful advertising
message to appeal to the older segment who would also buy the product for themselvesthemselves, as
they are tempted to “buy down” to feel younger.40
4.4 Product Strategy
Prior to the repositioning of the Herbal Essences, the brand's product lines were in the decline
stage of the product life cycle. In order to extend the product life cycle, the product was modified to
include newer technology aimed to solve more specialized problems and the products were marketed
to appeal to more users. Herbal Essences has now increased its category breadth to include fourteen
different customized collections of hair products, each designed to target a specific hair type or
problem.41 With market research conducted by Unilever showing that women want products that will
solve their specific hair problems, Herbal Essences' decision to increase their product line to cater to
a broader assortment of hair problems was effective at meeting the needs of their target market. In
addition, many consumers do not always purchase the same brand of shampoo and conditioner,
rather they opting to purchase conditioners from different brands that have added conditioning
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properties, specifically to complement their stand alone shampoos. Herbal Essences’ new shampoo
bottles are designed in a curvy shape to nest together whichtogether that entices consumers to buy in
tandem.42
4.5 Promotional Strategy
Due to Herbal Essences’ change in target market, from all women to Generation Y women,
the promotional aspect of the marketing mix had to be tailored to capture the attention of this
segment. In addition to building awareness in this segment, other short-term promotional objectives
used to increase sales include prompting trial and educating benefits, while working towards longterm objectives of increasing market share, customer loyalty and overall sales. The current
promotions being run by Herbal Essences include online promotional campaigns such as online
sweepstakes and ePrizes where customers can enter codes from Herbal Essences’ bottles to earn
reward points that can be exchanged for vouchers for free haircuts, providing incentives for their
target market to make recurring purchases.43 These incentives for repeat purchases improve customer
loyalty and are an effective pull strategy to increase consumer demand for their product. Herbal
Essences also utilizes the Internet to communicate with their target market by advertising on Internet
websites, social networking sites such as Facebook and Internet television. In addition to this, the
pull strategy is used in more traditional promotional methods such as television commercials and
magazine advertisements. With consumers being aware of the new rebranded Herbal Essences'
products, the promotional strategies definitely attracted the interest of the Generation Y population.
The collection names used such as "totally twisted", "dangerously straight", and "color me happy",
meant to appeal to the youthful and energetic personalities of Generation Y girls also appeals to their
self-concept as they choose the collection which best matches their hair type as well as the one that
best matches their personality and image. With the fourteen customized collections appealing both to
the hair problem needs and to the self-concept of Generation Y girls at the same time, this inevitably
results in their desire for the product, and ultimately in the action to purchase the product, as
consistent with the AIDA model.
This promotional strategy is effective at reaching the target market due to the use of their
communication channels, specifically their use of technology and social networking services.44 With
the target age demographic relying heavily on the experience of friends and family, Herbal Essences’
decision to use Facebook allows them to build this close relationship by creating an environment for
their target audience to discuss styles and relationships. In addition, offering online promotions,
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discussions as well as instructional videos that promote their product line adds value to the overall
experience for their target consumer while increasing brand exposure. To further appeal to the techsavvy characteristics of Generation Y, Proctor & Gamble started utilizing mobile technology to reach
their target demographics, increase interactions with the Herbal Essences brand through music,
images, and messages, and strengthen the relationship between the Herbal Essences brand and their
target market.45 As the "sender" of their promotional messages, Proctor & Gamble made an excellent
choice of communication media channels as they have been very effective in connecting with their
Generation Y target market (the receivers).
4.6 Pricing Strategy
Herbal Essences establishes the prices of their products by using elements of both valuebased and competitor-based strategies. Customers feel that they are receiving good value for the
$3.99 per bottle of Herbal Essences shampoo or conditioner because the product works well and is
relatively inexpensive. In addition, although Herbal Essences did not raise their prices, they used the
improvement value method by improving several aspects of their brand and product such as vibrant
scents and unique collection names (mentioned in Marketing Product Strategy) to increase
customers’ perceived value. This resulted in an increase of $30 million in sales for Herbal Essences.
(Sales orientation & Customer orientation). Herbal Essences also utilizes a competitor-based pricing
strategy by pricing their products less than its main competitor Pantene which sells their shampoo
and conditioner for $5.99CAD/bottle and Garnier Fructis at $3.79CAD.46 In the hair products
industry, prices are relatively elastic, and as Herbal Essences is priced reasonably, if customers were
looking for a new brand to try, they would be more likely purchase one of the new and enticing
Herbal Essences collection, resulting in an increase of sales and market share.47
4.7 Distribution Strategy
Herbal Essences uses a push strategy through indirect distribution where its products are
easily accessible to all consumers with intensive distribution at major retailers, grocery stores, and
drug stores.48 In addition to these bricks & mortar retailers, Herbal Essences provides it's target
segment who are accustomed to using technology and purchasing it's products online by connecting
these users with third-party online retailers.49
4.8 Attractiveness of Target Market proper citations/endnotes needed
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Herbal Essences’ shift in targeting Generation Y cohorts is beneficial due to the attractive
characteristics of this large and lucrative target segments. This target cohort exceeds the Baby
Boomer cohort in population and has a strong influence on the family’s purchasing decisions
(http://www.usatoday.com/money/advertising/2006-10-11-retail-teens-usat_x.htm). This significant
population also has large disposable incomes, with Generation Y spending $172 billion a year in the
U.S. (http://www.theventurecatalysts.net/files/Download/TVC_Newsletter_Gen_Y.pdf) and has a
strong potential to grow financially with personal earnings close to $3 trillion by 2017.50 With the
large amount of alternative products competing for this target market, Herbal Essences marketing
mix will be crucial in creating a strong brand perception, delivering value and connecting with this
segment.
4.9 Positioning
The positioning of Herbal Essences within the hair care industry is important in aligning their
product with the needs of their customers and differentiating themselves from their competitors.
Consumers seeking hair care products perceive Herbal Essences as a young, hip and vibrant brand,
offering a wide range of products that target common hair problems. They perceive it as having more
value and having superior quality as Herbal Essences now places more emphasis on the
customization aspect of the brand such as the unique names for each collection, the scents, and the
new packaging.51 However, from P&G’s overall standpoint, increasing the product line depth of
Herbal Essences creates the possible drawbacks of cannibalization (as mentioned in Threats &
Opportunities section). Therefore, in comparison with their competitors, Herbal Essences
differentiates itself through its colourful packaging, vibrant scents and focus on hydration. Other
competitors in the hair care industry include Fructis, Pantene and Sunsilk. Pantene, their closest
competitor, positions themselves as a more mature product, focusing the restorative properties of
their shampoos and conditioners with a duller scent and more conservative packaging.5253 By using
more mature language and conservative packaging and advertising, Pantene targets a separate target
demographic that would not be attracted to Herbal Essences advertising methods. Although Herbal
Essences does not publish their positioning statement, based on the research available on their brand
and industry it may read:
For young women and teens who want a healthy, hydrated and personalized hair style, Herbal
Essences hair-care products will make you stand out more than any other brand because it has been
12
designed and formulated specifically for your personal needs. With Herbal Essences you can match
your unique personality with a fun style and vibrant scent.
4.10 Areas of Improvement
Although the use of the Internet is an effective medium to specifically target and reach the
intended target audience, Herbal Essences' will need to increasingly differentiate themselves due to
the rising clutter in this channel. In addition, this medium requires continuous maintenance and
updating, and it will be important for Herbal Essences to utilize technological innovations and shifts
in social media trends.
Other areas Herbal Essences’ may want to analyze include their use of the television
medium. Due to the high costs of using this medium, an appropriate cost-benefit analysis needs to be
conducted to determine its effect on Generation Y. With television being a much less important
medium for this target market, Herbal Essences may want to scale back their television expenditures
in order to refocus their advertising budget to other mediums. With this being said however, Herbal
Essences should continue to have at least some presence in the television medium due to it’s widereaching characteristic.
5.0 ACTION PROGRAMS
5.1 What was done & When was it done
In order to achieve the market growth strategy, Herbal Essences under went a complete rebranding in May 2006. They changed their logo from a clipart picture of a rose to a modernized
circle with a “feminine flourish”54. They also redesigned the packaging to make the each shampoo
bottle into a curvy shape that fit together with the conditioner bottle. This promotes the sale of both
their shampoo and conditioner as a tandem buy. The bottles nesting together on the shelf works to
encourage customers to purchase the complete delivery system55. They also changed the colour
scheme of the products to create a more fun and fresh look, with one colour representing each
product collection.56 The new colours were selected based on their ability to catch the eye of
prospective customers and direct them easily to the product that would suit their needs. Other
changes from the re-branding were the names of its products as well as the copy that was written for
the back of the bottle, website, and advertisement campaigns. The copy is now written with a more
creative, fresher, younger outlook. Using a more youthful tone allowed Herbal Essences to appeal
both to the nostalgic boomer who would be willing to buy it for their daughters, and the Ggeneration
13
y daughters themselves.57 The re-design of their website was complimentary to the logo, packaging,
and copy changes from the re-branding. The new website works to promote Herbal Essences
cohesively. It also continues the youthful motif by showcasing various ways to achieve Ggeneration
Y specific hairstyles (i.ei.e. casual sexy, just out of bed look).58
To help promote the new brand, Herbal Essences used various techniques to inform and
persuade potential buyers of all that the hair care line had to offer to their target
market. Social networking mediums that they got involved in were the creation of a YouTube page,
which was created in August 2006 right after their re-launch.59 It features videos on how to style
your hair, as well as advertisements. Correspondingly a Facebook page has also been created, which
features current promotions, contents, new products, and promotional videos. There is currently a
Ffacebook-based contest, in which people vote on entrants fantasy inspired hairstyles, with the best
hairstyle winning a set of stylish Heys luggage.60 Both YouTube and Facebook compliment the
Herbal Essences website and serves to further expose their target market to the product through a
familiar platform. Generation Y consumers were early adopters of sites like Facebook and YouTube,
which makes both websites ideal promotional tools. Two other constant promotional tools used by
Herbal Essences are sweepstakes and premiums. Sweepstakes include the Great Escape, Little
Escape, Beauty Must-Haves, and current Hydralicious campaigns.61 Premiums include getting a free
manicure and pedicure, or getting a free haircut with purchase.62 The sweepstakes are used to
encourage consumers to consume more of the product, while the premiums work to create goodwill
for the brand.63
Another promotional tool used was content wraps on the CW channel during America’s Next
Top Model in 2006. Content wraps blend entertainment and advertisements to keep the viewer from
changing the channel. The first content wrap aired integrated news on New York’s fashion week
with fashion tips surrounding Herbal Essences styling.64 As America’s Next Top Model dominates
among women viewers 18 – 34 it is an optimal way to promote directly to Herbal Essences target
market.65 The format of advertising was also aimed at the skepticalsceptical, media weary
Generation Y audience.66 By not bombarding the viewers with obvious constant advertisements, they
are more willing to listen to the segment. Fashion, style, and reality TV combined to give Herbal
Essences the perfect venue to advertise in.
Specific campaigns they employed to help spread promotion of their new youthful brand and
its product collections include their “Great Escapes” sweepstakes. Herbal Essences used on-pack
promotions to entice customers to visit a promotional Herbal Essences site on mtv.com for a chance
14
to attend the 2007 MTV Video Music Awards (“VMAs”), party with the MTV talent, and have it all
captured in a 30- minute reality TV program.67 The fact that the VMAs were held in Las Vegas, a
21-plus vacation spot, helped to focus the appeal toward their target market of young adults, rather
than tweens, who also are viewers of MTV. They also further partnered with MTV in 2007 to create
a free ringtone program.68 The nature of both of these promotions appeals to the target markets
interests and depends on their internet-and-technology-savvy nature.69 The free ringtone adds much
more value to the Herbal Essences products for a Generation Y consumer who loves digital
electronics such as cell phones,70 than a baby boomer who might not even know how to change their
ringtone.
Another avenue through which Herbal Essences has done a promotional tie-in with was in
March 2008 with CBS’s Survivor. Herbal Essences provided a “Great Escapes Spa” to reward
challenge winners by supplying them with fresh food, a shower stocked with Herbal Essences
shampoos and conditioners.71 Even more recently in 2009, Herbal Essences has adopted Misha
Barton as a spokesperson for their product. She is already being featured on the Herbal Essences
Saudi Arabia website.72
5.2 Who was Responsible for Doing It
The idea to resuscitate Herbal Essences with a complete re-branding was lead by Proctor and
Gamble Beauty Business Chief, Susan Arnold. She took on the task of finding a way to revive the
dying brand with a small group of people from R&D, marketing, and design.73 The team collaborated
with LPK branding agency through 18 months of extensive consumer research, to re-focus the Herbal
Essences brand toward an untapped niche market.74 Specific people at LPK that were responsible for
the re-branding were Nathan Hendricks, lead creative director; Amy Steinmetz, brand account leader;
Matt Moses, lead senior copy writer; and Paul Mason, lead production director.75
The promotions such as the setting up of a Facebook and YouTube page, the website, as well as the
content wraps were probably done by Proctor and& Gamble’s in-house marketing department in
order to update them efficiently without having to go through a third party. The premiums are
handled by TLC Marketing,76 a company that specializes in the acquisition of goods with a high
perceived value at a low costsat a low cost in order to provide them to clients to use in rewards
campaigns.77 The online sweepstakes campaigns are handled by Eprize, an interactive promotion
company.78
15
Specific campaigns also had staff held responsible from each company that Herbal Essences was
working with, as well as staff from Herbal Essences itself. The contest surrounding the VMAs, was
handled in part by Mediavest, a media-specialist company, as well as MTV.79 The free ringtone
promotion was a joint responsibility between MTV and Herbal Essences. The Survivor tie-in was
also a joint responsibility between Survivor representatives and Herbal Essences.
5.3 How Much Did it Cost?
Much of the cost figures for the promotional activities are unavailable, as the Proctor and&
Gamble does not separate expenses for each hair care line on its financial statements. It is known,
however, that $37.8 million was spent on advertisement and promotional expenditures in 2006 for
the re-branding alone.
5.4 What Could the Company Have Done Differently?
Although the marketing through YouTube works to create a cohesive look with the website,
it lacks the proverbially “punch” that a promotion should have. The page has not been recently
updated, and showcases the same videos as the website. It does not leave the customer wanting to
visit those pages more than once. The page needs activities that will keep consumers coming back to
the page and spreading the word to their friends. Herbal Essences should be more creative with the
content that they post to YouTube. For instance, when the brand was re-launched Herbal Essences
could have had a contest of consumers posting their own videos to the YouTube page of how-to
create their favourite hairstyles using the Herbal Essences products. Although their target market
frequents YouTube, Herbal Essences is not one of the pages they visit.
In terms of specific promotions that Herbal Essences were engaged in, the Survivor tie-in
does not follow the theme of Generation Y targeted activities. Survivor has male and female viewers
aged 18 – 49,80 while Herbal Essences target market are females in the Generation Y cohort.81 The
tie-in seems odd and forced. The awkward tie-in creates a disconnect between the other promotions
and targets a much broader market that the product is not aimed at. Herbal Essences should not have
done this tie-in, and opted to do a tie-in with a show which has a strong following of females aged 18
– 34, such as Grey’s Anatomy.82
Finally, although Misha Barton is a young fun 24 year old, in the Herbal Essences target
market, she may have not been the best choice for as a spokesperson for the brand. Since her
departure from the extremely popular television show The O.C in 2006, her popularity has
16
decreased. As well, she has been hospitalized for mixing alcohol and antibiotics and charged with a
DUI and possession of pot in 2007.83 This is not the kind of image with which Herbal Essences want
to be associated. A spokesperson that would have been more appropriate would be Blake Lively or
Katherine Heigl. Blake Lively is a new fresh face, and stars in the popular Gossip Girls.84 Katherine
Heigl stars in the popular Grey’s Anatomy, and has starred in many hit romantic-comedies such as 27
Dresses and Knocked Up.85 Both these women appeal to the Herbal Essences target market.
Although, the cost of retaining them as a spokesperson for Herbal Essences would probably be much
higher than Misha Barton. To Herbal Essences credit, Barton is set to star in a new series entitled
Beautiful Girls on the CW network. The show follows the exciting lives of models living together in
New York City.86 If it turns out to be a hit, Barton may be catapulted back to her former fame and
Herbal Essences will be able to tag along for the ride. Especially since the show’s premise would
seem to draw in a majority female audience, the brand would be reaching their target market. Only
time will be able to reveal if Barton is the kind of young, fresh, fun Herbal Essences needs.
The few things mentioned above that Herbal Essences should have done differently hardly
serves to diminish the success that the re-branding and subsequent promotions had. This success is
demonstrated by Herbal Essences winning the 2007 Best Of Rebrand award,87 and the Buzz award in
the Reality TV category from Adweek for the VMA sweepstake.88 Overall, the promotions used by
Herbal Essences with their re-branding were wellperfectly suited to their target market and can be
considered to have been very effective. change to “well suited” because if Micha Barton may not
be a perfect spokesperson, the promotions can arguably be not “perfectly suited”
6.0 FINANCIALS
After years of decline in sales, Herbal Essence rebranding strategy, starting in 2006, has
increased revenue dramatically. Last year’s sales figures were approximately $154
million.89 Proctor and Gamble has continually noted that the increase in sales for Herbal Essence is a
main driver in the growth of Proctor and Gamble’s hair products sector.
Herbal Essence has increased its advertising expenditure to focus its effort to increase its
brand awareness. In 2007 alone, Proctor and Gamble spent $37.8 million in ad expenditures in major
media compared to $18.7 million for the brand in 2005. There was a strong emphasis on the "Totally
Twisted" and "Hello Hydration" product line, with $15.3 million and $7 million of the total ad
expenditures spent.90 Ad expenditure increased over 100% from 2005 to 2007 to support the 18
month rebranding project.91
17
The overall profitability of Herbal Essence is largely unknown due to the fact that Proctor
and Gamble does not disclose this information. But the dramatic increase in sales would indicate that
profitability has increased for the Herbal Essence line.
7.0 CONTROLS
Proctor and Gamble had to address two main issues during their rebranding campaign,
declining sales and stale branding for their Herbal Essence product. They measured their success by
leading indicators such as increase market share and increased brand power within their target
market.
Although sales figures are not released for Herbal Essence every year, within a 12 month
period from the beginning of rebranding process, Herbal Essence sales increased by 30 million when
compared to the 12 months prior to rebranding.92 During a span of the first three months, many of
Herbal Essence’s top distribution channels saw dramatic increase in sales, as high as 9% sales
increase.93
It was noted that the large increases in profits for Proctor and Gamble were partly contributed
by Herbal Essence’s successful revitalization. From Proctor and Gamble 2008 annual report, “Hair
care volume grew mid-single digits as a result of product initiatives on Pantene, Head & Shoulders
and Herbal Essences and continued expansion in developing regions.”94 Herbal Essence played a
significant role in the growth of Proctor and Gamble’s hair care volume product line. In terms of
increasing sales, Herbal Essence has been very successful in accomplishing its short termshort-term
goals.
For years, Herbal Essence had been losing brand equity because previous advertisements had
become overused and anti-climactic and there was little hope for the brand if nothing was
done.95 One of the main objectives in the rebranding mission was to revive Herbal Essence from the
stale perception it was receiving from the public. Proctor and Gamble ultimately knew it had
successfully revived its product when it started to win numerous awards including best rebranding in
2007 by www.rebrand.com. The brand equity of Herbal Essence is increasing as they continue to
obtain loyalty from their consumers and boardenbroaden brand awareness through increased
distribution channels, as mentioned earlier in the report.
8.0 CONCLUSION
18
Based on our in-depth analysis, we have concluded that Herbal Essences’ has
successfully implemented their rebranding strategy. This strategy in response to their shift in
target market to Generation Y, required a change in product packaging and design, pricing
strategy and promotional strategy. As a result they have captured a greater market share,
increased sales, brand equity and visibility.
19
APPENDIX A
APPENDIX B
1 Clairol Herbal Essences. 14 Nov. 2004. University of North Carolina. 13 Mar. 2009
<http://www.unc.edu/~celinev/Clairol%20Herbal%20Essences%20project-%20FINAL%20VERSION.pdf>.
2 Moving the Target to Gen Y. 30 June 2008. Voodoo. 11 Mar. 2009
<http://www.genyvoodoo.com/labels/Herbal%20Essences.html>.
3 Nature Boy. 07 Sept. 2008. BrandWeek. 13 Mar. 2009
<http://www.technologymarketing.com/bw/content_display/news-andfeatures/direct/e3id9a975e26c8545c52ce79831e4289c81>.
4 Millenial Marketing. 19 June 2008. 13 Mar. 2009
<http://millennialmarketing.blogspot.com/2008/06/targeting-millennials-herbal-essences.html>.
5 Herbal Essences. 2009. Proctor and Gamble. 12 Mar. 2009
<http://www.herbalessences.ca/en_CA/default.jsp>.
6 Clairol Herbal Essences. 14 Nov. 2004. University of North Carolina. 13 Mar. 2009
<http://www.unc.edu/~celinev/Clairol%20Herbal%20Essences%20project-%20FINAL%20VERSION.pdf>.
7 Nature Boy. 07 Sept. 2008. BrandWeek. 13 Mar. 2009
<http://www.technologymarketing.com/bw/content_display/news-andfeatures/direct/e3id9a975e26c8545c52ce79831e4289c81>.
8 The Issue: How P&G Brought Back Herbal Essences. 17 June 2008. BusinessWeek. 13 Mar. 2009
<http://www.businessweek.com/managing/content/jun2008/ca20080617_465490.htm>.
9 Herbal Essences. 2009. Proctor and Gamble. 12 Mar. 2009
<http://www.herbalessences.ca/en_CA/default.jsp>.
10 Clairol Herbal Essences. 14 Nov. 2004. University of North Carolina. 13 Mar. 2009
<http://www.unc.edu/~celinev/Clairol%20Herbal%20Essences%20project-%20FINAL%20VERSION.pdf>.
11 Ibid.
12 Pantene Pro-V. 2008. Proctor and Gamble. 12 Mar. 2009 <http://www.pantene.com/en-CA/index.jspx>.
13 Clairol Herbal Essences. 14 Nov. 2004. University of North Carolina. 13 Mar. 2009
<http://www.unc.edu/~celinev/Clairol%20Herbal%20Essences%20project-%20FINAL%20VERSION.pdf>.
14 Nature Boy. 07 Sept. 2008. BrandWeek. 13 Mar. 2009
<http://www.technologymarketing.com/bw/content_display/news-andfeatures/direct/e3id9a975e26c8545c52ce79831e4289c81>.
15 Garnier Fructis, Take Care. 2008. L'Oreal. 13 Mar. 2009
<http://www.garnierusa.com/_en/_us/our_products/products_trade.aspx?
tpcode=OUR_PRODUCTS^PRD_HAIRCARE^FRUCTIS^FRUCTIS_BENEFITS>.
16 Ibid.
17
2007 Full Annual Report. 30 Mar. 2007. Loreal Finance. 10 Mar. 2009 <http://www.lorealfinance.eloreal.com/site/us/contenu/rapport/rapport2007/pdf/2007_Full_Annual_Report.pdf>.
18
"L'oreal (LRLCY)." Investing Wiki with Research about Companies, Investment Concepts, and more...
10 Mar. 2009 <http://www.wikinvest.com/stock/L%27oreal_(LRLCY)>.
19
"US Consumer Companies, Retailers Revisit Cheap Brands - Food Industry News." Global Food
Industry and Business News - FLEXNEWS. 10 Mar. 2009 <http://www.flex-newsfood.com/pages/20328/Retail/USA/us-consumer-companies-retailers-revisit-cheap-brands.html>.
20
"P&G files lawsuit to protect Herbal Essences." Cosmetics Design North America - Cosmetics
Packaging, Industry, Manufacturers - Cosmetics Ingredients, Supply. 10 Mar. 2009
21 "US Products by Category." PG.com. 10 Mar. 2009 <http://www.pg.com/common/product_sitemap.shtml>.
22
"Procter & Gamble Profit Beats Estimate as Prices Rise (Update2) -." Bloomberg.com. 10 Mar. 2009
<http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=ased_GT5nTVk#>.
23 Ibid.
24 Arora, Harp. "Pricing Concepts and Strategies." AL 211, Waterloo. 24 Feb. 2009.
25
"Herbal Essences: Takes Hair All the Way to Luscious -- HerbalEssences.com." Herbal Essences hair
products: shampoos, conditioners, styling products and hair colour. 10 Mar. 2009
<http://www.herbalessences.ca/en_CA/faq/index.jsp#8>.
26
"P&G Rehydrates Product Line with Hydralicious." Brand Professionals count on Brandweek.com for
Online Access to Branding News and Analysis. 10 Mar. 2009
<http://www.brandweek.com/bw/content_display/news-and-features/packagedgoods/e3i947d7121b176518a4405b177e9dcab7b>.
27 Ibid.
28
"Shelf Impact: "Visual Fusions capture the essence of the “Herbal Girlâ€" Filed In: Package
redesigns." Shelf Impact: The digital-only publication for marketers of consumer packaged goods. 10
Mar. 2009 <http://www.shelfimpact.com/archives/2007/07/visual_fusions_capture_the_ess_1.php>.
29 Ibid.
30 Ibid.
31
Pantene: Hair Care Products, Expert Tips & Information for Healthy Hair. 10 Mar. 2009
<http://www.pantene.com/en-US/collectionMain.jspx>.
32 Phillips, Carol. "Targeting Millenials: Herbal Essences." Millenial Marketing 19 June 2008. 24 Mar. 2009
<http://millennialmarketing.blogspot.com/2008/06/targeting-millennials-herbal-essences.html>.
33 Ibid.
34 Nature Boy. 07 Sept. 2008. BrandWeek. 13 Mar. 2009
<http://www.technologymarketing.com/bw/content_display/news-andfeatures/direct/e3id9a975e26c8545c52ce79831e4289c81>.
35Lukovitz, Karlene. "Herbal Essence Snags 2007 ReBrand 100 Global Award." Marketing Daily. 11 June
2007. Media Post News. 10 Mar. 2008 <http://www.mediapost.com/publications/index.cfm?
fa=Articles.showArticle&art_aid=63833>.
36 Alexander, Antoinette. "P&G gives Pantene a makeover."
Http://www.drugstorenews.com/archive_page.aspx?content=72382&type=web. 14 May 2007. 13 Mar. 2008.
37 MMR. "Shampoo and Conditioners." BNET. 20 Feb. 2006. Racher Press, Inc. 15 Mar. 2009
<http://findarticles.com/p/articles/mi_hb3235/is_4_23/ai_n29249024?tag=content;col1>.
38 Lukovitz, Karlene. "Herbal Essence Snags 2007 ReBrand 100 Global Award." Marketing Daily. 11 June
2007. Media Post News. 10 Mar. 2008 <http://www.mediapost.com/publications/index.cfm?
fa=Articles.showArticle&art_aid=63833>.
39 Ibid.
40 Ibid.
41 "Site Map." Herbal Essences: Takes Hair All the Way to Luscious. 2009. Proctor & Gamble. 15 Mar. 2009
<http://www.herbalessences.ca/en_CA/sitemap.jsp>.
42 Lukovitz, Karlene. "Herbal Essence Snags 2007 ReBrand 100 Global Award." Marketing Daily. 11 June
2007. Media Post News. 10 Mar. 2008 <http://www.mediapost.com/publications/index.cfm?
fa=Articles.showArticle&art_aid=63833>.
43 Johannes, Amy. "Herbal Essences Launches Hydralicious Promo." 16 Mar. 2009. PROMO Xtra. 20 Jan.
2009 <http://promomagazine.com/contests/news/herbal-essences-launches-promo-012109/>.
44 Tekin, Jenn. "The Adults of Generation Y: 40 Million Strong and Worth Over $3 Trillion by Middle-Age."
Market Wire. 4 Dec. 2008. Packaged Facts. 14 Mar. 2009 <http://www.marketwire.com/press-release/PackagedFacts-926880.html>.
45 Mobile Marketing Association. "Procter & Gamble/ Herbal Essences." MMA Global. 14 Mar. 2009
<http://www.mmaglobal.com/studies/procter-gamble-herbal-essences>.
46 Males, Dyana. "Proctor & Gamble's Pantene Pro-V." 4 Dec. 2003. 14 Mar. 2009
<http://dyanamales.com/panteenanalysis.pdf>.
47 Wong, Elaine. "P&G Rehydrates Product Line with Hydralicious." 9 Jan. 2009. Brand Week. 14 Mar. 2009
<http://www.brandweek.com/bw/content_display/news-and-features/packagedgoods/e3i947d7121b176518a4405b177e9dcab7b>.
48 "Frequently Asked Questions." Herbal Essences: Takes Hair All the Way to Luscious. Proctor & Gamble. 14
Mar. 2009 <http://www.herbalessences.ca/en_CA/faq/index.jsp#>.
49 "Shop Herbal Essences Online Now." 2009. Proctor & Gamble. 14 Mar. 2009
<http://www.herbalessences.ca/en_CA/buy_it_now/product_locator.jsp>.
50 Tekin, Jenn. "The Adults of Generation Y: 40 Million Strong and Worth Over $3 Trillion by Middle-Age."
Market Wire. 4 Dec. 2008. Packaged Facts. 14 Mar. 2009 <http://www.marketwire.com/press-release/PackagedFacts-926880.html>.
51 "The Issue: How P&G Brought Back Herbal Essences." Business Week. Ed. McGregor. 17 June 2008. The
McGraw-Hill Companies Inc. 12 Mar. 2009
<http://www.businessweek.com/managing/content/jun2008/ca20080617_465490.htm>.
52 Gilman, Stephanie. "Hair Care: Pantene Versus Herbal Essences Shampoos and Conditioners." Associated
Content. 9 May 2007. Associated Content, Inc. 14 Mar. 2009
<http://www.associatedcontent.com/article/236902/hair_care_pantene_versus_herbal_essences_pg2.html?
cat=69>.
53 "The Issue: How P&G Brought Back Herbal Essences." Business Week. Ed. McGregor. 17 June 2008. The
McGraw-Hill Companies Inc. 12 Mar. 2009
<http://www.businessweek.com/managing/content/jun2008/ca20080617_465490.htm>.
54 Lukovitz, Karlene. "Herbal Essence Snags 2007 ReBrand 100 Global Award." Marketing Daily. 11 June
2007. Media Post News. 10 Mar. 2008 <http://www.mediapost.com/publications/index.cfm?
fa=Articles.showArticle&art_aid=63833>.
55Ibid.
56Ibid.
57Ibid.
58Phillips, Carol. "Targeting Millenials: Herbal Essences." Millenial Marketing 19 June 2008. 24 Mar. 2009
<http://millennialmarketing.blogspot.com/2008/06/targeting-millennials-herbal-essences.html>.
59“YouTube – herbalessences’s Channel.” YouTube - Broadcast Yourself. 26 Aug. 2006. 23 Mar. 2009
<http://www.youtube.com/herbalessences>.
60 “Herbal Essences on Facebook.” 2006. Facebook. 23 Mar. 2009
<http://www.facebook.com/home.php#/herbalessences?sid=d9401bdc7e4b05c20d508c83ca058acf&ref=s>.
61“Herbal Essences | Sweepstakes Forager.” Sweepstakes Forager | Daily Sweepstakes : Great Prizes : No
Scams! 23 Mar. 2009 <http://sweepstakesforager.com/tags/herbal-essences>.
62“Herbal News & Extras.” Herbal Essences hair products: shampoos, conditioners, styling products and hair
colour. 2009. Herbal Essences. 23 Mar. 2009 <http://www.herbalessences.ca/en_CA/offers/news.jsp>.
63 Grewal, Dhruv, Micheal Levy, Ajax Persaud, and Shirley Lichti. Marketing. 1st ed. Toronto: McGraw Hill
Irwin, 2009. 462-463
64Consoli. John. "CW Wraps Draw Strong Retention." All Business 28 Sept. 2006. 23 Mar. 2009
<http://www.allbusiness.com/services/business-services-miscellaneous-business/4786092-1.html>.
65“Rating Report.” America’s Next Top Model Scores Largest Audience of the Season." Reality TV Fans 23
Oct. 2008. 23 Mar. 2009 <http://www.realitytvfans.com/2008/10/23/ratings-report-americas-next-top-modelscores-largest-audience-of-the-season.html>.
66Grewal, Dhruv, Micheal Levy, Ajax Persaud, and Shirley Lichti. Marketing. 1st ed. Toronto: McGraw Hill
Irwin, 2009. 92.
67“The Buzzing Winning Campaigns” Adweek 1 Dec. 2008. 23 Mar. 2009
<http://www.adweekmedia.com/aw/content_display/customreports/buzzawards/e3ia1bfbded847c1263aeb2b34f1f55e186>.
68Mahmud, Shahnaz. "Urban Pioneers." Adweek 25 Feb. 2007. 23 Mar. 2009
<http://www.adweek.com/aw/content_display/news/media/e3ic1abd1883d21563714c79575c3dcd505?pn=2>.
69Grewal, Dhruv, Micheal Levy, Ajax Persaud, and Shirley Lichti. Marketing. 1st ed. Toronto: McGraw Hill
Irwin, 2009. 92.
70Ibid.
71“Joint the Scent-sation” Facebook | Videos Posted by Herbal Essences. 2007. Facebook. 23 Mar. 2009
<http://www.facebook.com/video/video.php?v=9566033465>.
72“Mischa Barton and Herbal Essences – The Perfect Match” Herbal Essences hair products: shampoos,
conditioners and intensive treatments. 2009. 23 Mar. 2009
<http://www.herbalessencesarabia.com/mischa/index.php>.
73 "The Issue: How P&G Brought Back Herbal Essences." Business Week. Ed. McGregor. 17 June 2008. The
McGraw-Hill Companies Inc. 12 Mar. 2009
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