1. Problem Statement:
Pantene suffered from a loss of market share and wanted to know whether the cause of the
problem was due to the lack of distribution intensity, heavy promotions by competitors, or
unfavorable consumer perceptions. Garnier had recently emerged and instantly gained
5.1% market share. Pantene needed to develop a marketing strategy in order to achieve is
long-term growth target of five share points.
2. Situation Analysis
Customers
•Consumers were highly involved and experimental
•Drivers of consumer brand equity include: awareness, purchase consideration, and
associations
•Customers faced choice overload and used simple rules of thumb to make everyday
decisions called, “Omega Rules”
•Once rules formed, they turned to habitual auto-pilot shopping mode
•Customers had “Delta Moments” and were forced to re-evaluate rules
occasionally
•Delta consumers have a higher percentage of colored, frizzy, and thick hair,
as well as mediocre and poor condition hair
•Omega consumers had a higher percentage (than Deltas) of healthy and
good condition, thinning, and straight hair; they also had high percentages
of colored and wavy hair
•Consumers were willing to pay higher price for Pantene, Head & Shoulders,
and Garnier
•Most important driver: associations, followed by awareness
Competition
•In terms of the general brand equity index, Sunsilk, Garnier, Well, and VO5 were
the main competitors
•Brand equity by rate of adoption: [Trend Setters] Sunsilk and Garnier;
[Mainstream] Sunsilk and Garnier; [Stragglers] Sunsilk, Well, and VO5
•Brand Relationship Hierarchy: [Garnier]: 88% aware, 68% considerers, 34%
trialists; [Palmolive]: 89% aware, 57% considerers, 61% trialists; [Sunsilk]: 98%
aware, 80% considerers, 82% trialists
•Dove and Garnier had highest affinity, (184) and (127), respectively
•Consumer Perception: [Garnier]: Young, Feminine, Fashionable, and Fun
•Packaging: [Garnier]: Modern Pack, Attractive Shape, Easy to hold/use in shower,
Bright Colors on Pack Label; [Sunsilk]: Easy to open, Pastel Colors on Pack Label,
Easy to hold/use in shower, Durable Pack
•Purchase Triggers for: [Sunsilk]: Auto pilot—same one (47); Checked Prices (30);
Browsed Through Several (24); [Garnier]: Auto-pilot—same one (32); Checked
Prices (31); Browsed Through Several (25); [VO5]: Auto-pilot—same one (38);
Checked Prices (44); Promotion (33); [Palmolive]: Checked Prices (44); Auto pilot
—same one (37); Promotion (26)
•More price-sensitive consumers purchase VO5 and Palmolive
•Consumers were also willing to pay higher price for Head & Shoulders and Garnier
•Garnier not promotion-driven
•Advertising Activation Index: [Sunsilk]: 115, ad recall 18, and brand recall was 16;
[Garnier]: 143 (the second highest), ad recall was 15, and brand recall was 11;
[VO5]: 35, with an ad recall of 4 and a brand recall of 12; [Palmolive]: 51, with an
