Executive Summary
This research examines some practical approaches companies employ to sustain their business advantage in the competitive market. The methods employed for this search are literature search and critical analysis of primary and secondary sources to determine what other researchers have uncovered as the business strategies for Procter & Gamble (P&G) and L’Oréal in promoting shampoo products in the UK market. The results obtained indicate that strategic use of place through online and in-store dominance enhances the visibility and credibility of organizations. Similarly, the price can be valued based on convenience and target specific demographics to expand the market. Therefore, the marketing mix is an integral business model that can be used to enhance the performance of businesses in local and global markets.
Introduction
This report aims to establish the most viable marketing mix strategies employed by two organizations producing shampoos in the United Kingdom (UK). Head & Shoulders is a subsidiary of the Procter & Gamble (P&G) brand, creating hair and skin products, including the Head & shoulder shampoo and conditioner (Head & Shoulder, 2023). L’Oréal Elvive is a company that offers a wide range of shampoos developed to address different hair and skin concerns (L’Oréal UK, 2023).
As Appendix One of this paper demonstrates, the Head & shoulder products account for 16% of the shampoo market share in the UK (Mintel, 2023). Similarly, the L’Oréal company controls approximately 21.9% of the UK shampoo market (Mintel, 2023). Therefore, this paper explores the different marketing mix strategies adopted by the companies, including strategic client targeting, online presence, value-based pricing, and other approaches to determine the best and recommend future practices that enhance competitive edge.
Findings
Comparison of Target Market
The target market for products made by companies can be designed to fit different aspects, including gender, age group, personal disposable income, social class, education, family cycle, and lifestyle. The Head & Shoulders Shampoo is designed by Procter & Gamble (P&G) for a wider audience, considering that it can be used by clients of both genders and children (L’Oréal UK, 2023).
This authentication age is supported by the Seattle Children’s Hospital, which approves Head & Shoulders Shampoo for children’s hair from 24 months (Seattle’s Children Hospital, 2023). On the other hand, the L’Oréal Elvive Shampoo is designed for women’s hair only and cannot be used by men or children, and the minimum age for use is set at 15 years. All these approaches illustrate the distinct approach in market segmentation to ensure each company has its clients.
In addition, the two companies focused on individuals from different economic standpoints to attract their clients. The Head & Shoulders Shampoo targets low-income earners and middle-class individuals due to their pricing strategy based on value. On the other hand, the L’Oréal Elvive Shampoo is a luxury hair soap targeted at financially capable clients who are at the top level in financial security (L’Oréal UK, 2023). The similarity in their clientele base is equalized by their educational status, as both target academically inclined individuals. The P&G company boasts paraben, phosphate, and paraffin-free Head & shoulder shampoo (Head & Shoulder, 2023).
This information only benefits individuals in understanding the negative consequences of having the listed ingredients in their soap (Head & Shoulder, 2023). Likewise, the L’Oreal company targets intellects because they emphasize sophisticated components such as adding hyaluronic acid to their L’Oréal Elvive Shampoo to ensure hydration to their hair strands. All these attributes illustrate the distinct approaches used to entice a specific population to the products to achieve a competitive balance.
Product
Companies follow Levitt’s model of customer-value hierarchy to ensure that their goods satisfy the core benefits. Both companies ensure that the core benefit is achieved, but the companies focus on different levels of consumer satisfaction. For instance, in the value hierarchy, Head & Shoulders Shampoo achieves the expected phase whereby their product has all the essential attributes, including anti-dandruff cleansing properties, which are characteristics the client would typically expect (Head & Shoulder, 2023).
However, the L’Oréal hair product achieved the potential level, which includes the original characteristics, such as the cleansing and hydrating properties, and other attributes, such as the biodegradable packaging strategy that distinguishes the offering from other products (Calderón et al., 2023). Therefore, the Head & Shoulders Shampoo appeals to the client’s functional needs, considering its performance Is not defective as the products have a four-star rating on Amazon (Amazon, 2023a).
Similarly, the L’Oréal Elvive Shampoo satisfies both the functional and emotional impression due to its efficacy in meeting the intended purpose (Kato, 2021). The organization also appeals to emotional requirements through a positive connection to saving the environment through a product packaged in a recyclable bottle. These psychological approaches help convince the client of the relevance of the products based on their personalized needs.
The Aaker’s brand personality scale for Head & Shoulders Shampoo is sincerity, which is a plea that focuses on establishing a trustful, cheerful, and honest rapport. The company’s personality is established by the sincerity approach, considering that their advertisements on Head & Shoulders Shampoo emphasize the dermatological impacts and the additional components in their products that answer the consumer’s concerns (Head & Shoulder, 2023). On the other hand, the L’Oréal Elvive Shampoo values sophistication, which advocates for glamour and premium quality (L’Oréal UK, 2023). These personality traits classify the brand by associating each with its objectives to the consumer.
Evaluation of the Pricing Strategies Used
Table 1: Pricing lists for P&G and L’Oreal.
The two companies used different pricing approaches to entice their clients online and in-store. The Head and shoulder shampoo at the Amazon online platform costs (£) 6.99, while the L’Oreal shampoo costs (£) 13.02 (Amazon, 2023). The difference in pricing is determined by the brand, considering that Head and Shoulder is convenient while the L’Oreal company is a luxury brand (Wu et al., 2022).
However, each company follows a distinct approach, with the head and shoulders following the reasonable pricing approach, while L’Oreal focuses on value pricing. The head and shoulder products are affordable and standardized to ensure access to most of the population. As highlighted, their hair conditioner only costs about (£) 8.50 while L’Oreal’s costs (£) 17.65 illustrating a significant difference (Amazon, 2023b). L’Oreal’s Scalp Treatment costs (£)30.5, which is close to double the price of head and shoulder treatment (Amazon, 2023c). This treatment contains additional ingredients, including lipid, which restores damaged hair and illustrates value and luxury.
Place
The distribution strategy for Head and shoulder shampoo and L’Oreal is based on mass-market products. The L’Oreal approach is similar to P&G’s mass-market product due to its extensive client search (L’Oréal UK, 2023). This approach involves stocking products widely through various mediums to ensure expansive outreach; the P&G company ensures accessibility of their products through retail shops such as Walmart stores (Head & Shoulder, 2023). The L’Oreal company has multiple stores, including the L’Oreal Luxe, a high-end store for clients looking for premium products.
The advantages of using retailers are that products sell in large quantities to various clients due to the retailer’s bulk purchasing power. The P&G products are also distributed in MX Wholesale UK, a wholesale supplier. Likewise, JNI Wholesale provides L’Oreal products in bulk to retailers who can sell the products in single pieces (L’Oréal UK, 2023). In addition, the company operates the Head & shoulder official UK website, which provides an online purchase platform and information about its products. The company’s products can be accessible through its official UK website, L’Oreal Paris, an online store where clients can purchase them.
Promotion
P&G and L’Oreal have exhausted their online marketing strategies, including televised and social media website adverts. The companies have initially endorsed social media influencers, including Richard Ayoade, a British comedian campaigning for Head & shoulder, while Gemma Chan supports the L’Oreal company (Li, 2022). The communication channels for both companies are infused with different methods, including television and radio advertisements. The companies also invest in annual magazines to help increase visibility (Globočnik Žunac et al., 2021).
In the company’s communication mediums, the organizations brand themselves distinctively, creating a unique brand positioning (Globočnik Žunac et al., 2021). The approaches help the companies position themselves distinctively by championing different agendas, considering that Heads & shoulder markets itself as a value-for-money entity while L’Oreal positions itself as a high-quality brand solving complex skin and hair issues.
Conclusion and Recommendations
P&G and L’Oreal have employed the 4Ps strategically to appeal to their diverse audiences and meet the consumer’s needs. The 4Ps help an organization position itself on a broader marketplace and identify. For instance, through value-based pricing, L’Oreal can sell products at premium prices due to the intensive appeal of the product’s value to the consumer’s hair and skin. On the other hand, affordable pricing is adopted by P&G on their Head & shoulder shampoo to ensure everyone can access the products despite the difference in purchasing power.
Therefore, the best-performing brand in sales is the L’Oreal company, which indicates a successful application of the 4P of marketing. However, they can improve their pricing strategy to ensure that it is more affordable and everyone can access it, considering that the appeal of the impact of the product is already sealed. Likewise, P&G should improve its product appeal to ensure that clients see value in purchasing their products, and this will improve its sales and relevance in the competitive market.
Reference List
Amazon (2023a) Head & Shoulders anti-dandruff shampoo 3×400 ml. Web.
Amazon. (2023b) L’Oreal elvive extraordinary oil shampoo, 400ml. Web.
Amazon (2023c) Head & Shoulders dermaxpro anti-dandruff scalp treatment, 145ml, with aloe vera & hyaluronic acid, hydrating scalp balm, 72h lasting hydration for dry scalp. Web.
Amazon (2023d) L’Oréal professional scalp advanced anti-discomfort professional hair treatment, for sensitive scalps, serieexpert. Web.
Calderón-Fajardo, V., Molinillo, S., Anaya-Sánchez, R. and Ekinci, Y., (2023) ‘Brand personality: Current insights and future research directions ‘. Journal of Business Research, (5)166, p.114062. Web.
Globočnik Žunac, A., Kocijan, S. and Martinčević, I., (2021) ‘Impact of modern communication channels on business processes. Entrenova-Enterprise Research Innovation, 7(1), pp.44-52. Web.
Head & Shoulder. (2023) Our ingredients. Web.
Kato, T. (2021) ‘Functional value vs emotional value: A comparative study of the values that contribute to a preference for a corporate brand’. International Journal of Information Management Data Insights, 1(2). Web.
Li, S. (2022) ‘The influence and enlightenment of live streaming on sales channel management of beauty brands Take L’OrealGroup as an example. In 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022’ pp. 139-145. Web.
Mintel. (2023) UK women’s haircare market report 2023. Web.
L’Oréal UK. (2023). Our history. Web.
Seattle’s Children Hospital (2023) Cradle cap. Web.
Walmat. (2023a) Head & Shoulders dermaxpro anti-dandruff scalp treatment. Web.
Walmat. (2023b) L’Oreal Paris elvive shine enhancing extraordinary oil deep nourishing treatment. Web.
Wu, M., Ran, Y., and Zhu, S. X. (2022) ‘Optimal pricing strategy: How to sell to strategic consumers?’ International Journal of Production Economics, 244. Web.
Appendix
