BRM PRESENTATION

MARKET RESEARCH FOR

• Customized research offered clients complete solution in marketing strategy, communication effectiveness, consumer attitudes,
customer satisfaction, and brand equity which was apt for Pantene’s scenario in 2003 because with the launch of Garnier,
Pantene’s sales declined from 22.5% to 20% even after being the market leader. Pantene needed an integrated market research
comprising of all the components responsible behind the reduction in sales and customized research was most suited.

• “Winning Brands” was a comprehensive solution which analysed Pantene from multiple perspectives – category issues; brand
challenges – equity, loyalty, personality; marketing mix – price, promotion, distribution; and consumer behaviour.

• “Winning Brands” was combined with syndicated research like ‘Retail Measurement’ and ‘Consumer Panel’ to recommend
integrated marketing strategy for stemming the decline in market share for Pantene.

• Equity of different shampoo was measured using the Brand equity model which was developed by Nielsen in 1997 with
Professor Kevin Keller.

• Integrated services of winning brands which measure equity, purchase behaviour, brand associations, market share, cross brand
affinity, brand personality, shopping modality and switch triggers gives a complete understanding to Pantene about the
scenario and options available to overcome it.
 Evolution of Market Research and that of Nielsen
• Nielsen was founded in 1923 by Arthur Charles Nielsen and offered consulting for industrial products

• In 1933, it commenced measurement of consumer sales in retail stores

• In 1942 Nielsen began measurement of radio listenership and rating television programs in the 1950s

• Nielsen started scanning of universal product codes at retail stores in 1977

• Nielsen after emerging as the market leader was acquired by The Dun & Bradstreet Corporation in 1984

• C. Nielsen merged with Entertainment Data Inc. to provide box office returns to the motion picture industry

• In 1999, Nielsen formed an alliance with NetRatings to form Nielsen eRatings

• Nielsen was acquired by VNU in 2000 subsequently acquired by a group of six equity firms in 2006 to form The Nielsen
Company

• In 2011, Nielsen went public and was listed on the New York Stock Exchange under the name of Nielsen Holdings

Contd.
 Evolution of Market Research and that of Nielsen
• Market research Industry was dominated by five companies having a share of 49% in 2010

• Nielsen was the market leader with 16% market share, followed by Kantar (12%), IMS Health (7%), Gfk (6%) and Ipsos (5%)

• The top five markets were the United States, the United Kingdom, Germany, France, and Japan accounted for 66% of the total
market turnover

• Emerging Markets were growing faster than developed markets

• Research was moving from F2F to CATI and CAWI and the major industries for market research were FMCG, Health care,
Financial Services, Automotive, and Durables

• Market Research Industry attempted to reduce costs by outsourcing the non-core functions

• The dominant business model was low-cost high-volume and their was a need to move up the value chain by predicting future
trends for clients

• This industry saw emergence of analytics and data mining along with technology and saw challenge from consulting firms who
were providing end-to-end solutions to their clients

• Indian MR industry was 8.9 billion in 2009 dominated by Nielsen followed by IMRB, iMrs and Ipos which were eventually
acquired by multinationals
Types of Market Research Solution offered by Nielsen

 Provides qualitative (17%) and quantitative data(76%) to its customers, mainly in:

 Retail Management services(Scan Track provided information on sales, market shares, distribution, pricing, merchandising

 Media Measurement services(measured national TV viewership by installing people meters determining which channels, programs
were being watched by whom and when

 Consumer panel services(Homescan tracked the purchasing behaviours linking it to demographics, media consumption and
purchase history)

 Customized research(Solutions in marketing strategy, communication effectiveness, consumer attitudes, and brand equity)

 Nielsen introduced “Business Process Improvement” to reduce cycle time and also introduced “Client Business Partners” to reduce
multiple touch points

 For PANTENE it carried out two types of research Diagnostic study( for recommendation of solution and possible causes).
 Cause for decline in market share of Pantene

 Market share of Pantene declined from 22.5% and 20% due to following reasons
as perceived by Nielsen:

 Garnier as new entrant was the major reason for the loss of market share

 Garnier targeted youth and trendsetter segment and rapidly occupied it

 Heavy promotion and advertisement impulse Garnier in the gaining market share

 Low price of Garnier and high willingness

 The shampoo category has enjoyed 98% of market penentration and growth at 2.8% annual
growth. This is due to involvement with shampoo and experimentation positivity in this
category.

 Pantene has done segmentation on the basis of age, gender, income level and geography.

 Their main target market is high age group people, female, families in middle and higher
income group and resides in urban region.

 Positioning: It is positioned as anti hairfall and damage control shampoo, with fragrance to
provide healthy and silky hair.
 Consumer behavior for shampoo Category

• Consumers are highly involved with this category and often do experiments
and try new shampoos .i.e. super slippery.

• According to BE model, association (41%) constitutes the major share of

• Association driver has sub divisions namely Fragrance, Premium quality,

• People are more concerned for soft/smooth hair, shine, Fragrance, attractive
packs (21%) followed by technological advancement salon quality and
brand (13%) and lastly emotional appeal and attractiveness (5%).

• Promotion (20), browsing through several packages (26), new brand (20),
several packages (18) & advertising are major switch triggers for one brand
to other.
 Consumer Behavior for Pantene & Garnier

 Association wise Pantene is highly rated on soft & silky, premium quality while Garnier makes one
feel attractive but neither of them seem suitable for whole family.

 Pantene has a brand equity of 3.5 and Garnier indexed at 1.4.

 Pantene is mostly liked by higher aged group people indexed 3.7 (31-40 years) and 3.5 (40+ years).
Garnier is able to attract young generation indexed 2.1 (18-20 years), however, lower than Pantene.

 Pantene is mainly adopted by mainstream people and Garnier has early adopters.

 Emotional affinity is an enduring factor & is manifested when consumer recommended brand.
 Consumer Behavior for Pantene & Garnier

 Pantene had strongest emotive loyalty followed by Sunsilk, Palmotive and Garnier.

 In terms of cross brand affinity , people having brand affinity for Pantene also have higher affinity for
Garnier, hence, some differentiation should be created for Pantene to disrupt cross brand affinity.

 In terms of modality, Pantene scores better (121) in omega so it has better retention power of
consumers and its delta is also low (90). Garnier has high delta rate (104) and low omega (92) so it
needs to think how it should increase its customers retention power.

 Pantene has higher retail price index of 180 and people are only willing to pay 160 leading to one of
the reasons for its lowering share in market.
 Customized Market Research Report
 Nielsen applied winning brand model. This brand analyse brand from different perspective like equity, personality,
marketing mix and consumer behaviour
 Association is major equity driver i.e. 41% (fig.4)
 Fig 6 states that consumers associate Pantene more with soft, silky and quality parameters where as Garnier
with attractiveness.
 Table 1 and 2 says Pantene enjoy higher equity in mainstream category.
 Fig 8 says that although Pantene’s brand equity is in line with market share but Garnier has gained more brand
equity than the corresponding market share, which is a desired characteristic.
 From table 3, Garnier enjoy more cross brand affinity (127) than Pantene (113) in each other’s customer view
 Fig. 10 on Brand Personality says that Pantene is considered more confident, elegant, attractive on perceptual
map while Garnier is more perceived for fun, and young
 Table 4 clarify that promotion (20), browsing several packs (26), and trying new brand in market (20) are the
biggest triggers for moving to new brands.
 Table 6 says that promotion, advertisement, and price are major reasons for lag of Pantene compared to
Garnier in market share.
 Fig. 15 : Pantene is priced very high than appropriate willingness to pay on price appropriateness scale
 Market Research Report: Solution

 The rise of market share of Garnier is triggered by heavy promotion and low price. Also Garnier
target youth and trendsetter segment, consumer behaviour of whose is uncertain and flexible.
 Pantene needs to expand its promotions.
 New product variants with new packaging can help in retaining the flexible segment.
 New product with ingredients appealing to young customer like natural herbs, flavour and
fragrance
 New attractive design and packaging
 Adjustment in price with slightly lower than retail should be done
THANK YOU