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Herbal Essences Marketing Plan

1. Summary

1.1. This report was conducted to reevaluate the Herbal Essences range and success in the market today. From questionnaire results it was concluded that there is a need for a redesign of the current Herbal Essences packaging. The Herbal Essences bottle is to be changed to a double ended bottle to allow maximum usage of the contents of either shampoo or conditioner. The bottle shape will be distinctively curved to allow easier grip in the shower or bath. The marketing online will be used to attract a wider target audience of women and a new video advertisement will be produced to promote the packaging’s benefits to the customer and will steer away from the previous focus on the user. The new packaging design will be launched across the entire ranges of Herbal Essences on 25 May 2010 and reviewed six months later on 25 November 2010. This review will access the sales success online and in stores since the launch of the new packaging. Leading up to the launch date there will be advertising for the new improved packaging design across the internet on social networking websites and supermarket websites where Herbal Essences is sold.

2. Terms of Reference

2.1. This is an internal report that has been commissioned by the Managing Director of Herbal Essences, Mr Smith.

2.2. This report is a new packaging idea for the production of Herbal Essences shampoo and conditioner.

2.3. The aim of this report is to provide the Managing Director with a new marketing plan for the improved packaging of Herbal Essences shampoo and conditioner range. New marketing strategy reports are a requirement of the company, to be written quarterly to identify potential development for Herbal Essences.

3. Introduction

3.1. This report is a company policy requirement to be completed every three months to access Herbal Essences’ products and the need for a new product. The target audience for Herbal Essences is women and a questionnaire was conducted (via the internet and post) between 1 January and 18 March 2010 which identified that the current Herbal Essences packaging needs to be redesigned. See Appendix A for questionnaire and results.

4. Methodology

4.1. A questionnaire was conducted to determine what improvements need to be made to meet customer’s needs and wants with the Herbal Essences range. Customers were emailed and posted questionnaires to be completed. Tesco’s, Sainsbury’s and Somerfield stores had questionnaires positioned beside the Herbal Essences range for customers to complete. To ensure feedback was given the chance to win a years supply of Herbal Essences products was the reward to five randomly selected customers. Questions were used to identify how the customer felt about the pricing of Herbal Essences’s products, the availability and locations of where Herbal Essences products could be purchased and the overall communication of the brand.

4.2. A SWOT analysis was conducted to identify the potential of this new adapted packaging design within the internal and external marketing environment. See Appendix B for new design.

4.3. Internal research was conducted into previous promotional online strategies of Herbal Essences and the level of success. Forums discussing Herbal Essences were viewed to gain an understanding into customer’s thoughts and feelings on an informal level. The website http://www.YouTube.com was used as a researching website to determine the number of viewings of Herbal Essences advertisements and the public’s thoughts. Women’s magazine websites were randomly selected and researched to determine how competitive companies use current communication on the internet to advertise and promote women’s hair products.

4.4. A PESTEL analysis of the new packaging design for Herbal Essences was conducted.

5. Findings

5.1. After conducting a questionnaire the results showed that the Herbal Essences bottle design needed to be improved. Customers stated that they could not retrieve all of the contents of either the shampoo or the conditioner. The curvy shape was an appropriate shape for the showering environment as it reduced dropping the bottle however it was suggested the curviness should be increased. The packaging product the customer wanted was a beneficial bottle that allowed maximum usage of the shampoo/conditioner contents. This was found to be made possible with a double ended shampoo/conditioner bottle design. The pricing was found to be affordable by the majority of customers and the availability in supermarkets and pharmacies fulfilled people’s routines and lifestyles. It was found that customers felt the product was too focused on the image of a middle-aged woman with connotations of sex and attractiveness. See Appendix A for questionnaire and results.

5.2. The SWOT analysis identified the following:

5.2.1     Strengths

5.2.2     Herbal Essences is a well established hair product company and was launched in the 1970’s. P and G (global manufacturer) of Herbal Essences supply to over 160 countries worldwide which gives the company a significant advantage in the market.

5.2.3      The redesigned packaging is new and innovative and there is not a hair packaged product available with a two ended shampoo/conditioner bottle. This renovated design reflects the ethos of Herbal Essences which is not just about the products content but the experience.

5.2.4     P and G are dedicated to consumer research and quality is always ensured in the products. P and G have worked with well-known brands such as Pampers, Clairol e.t.c

5.2.5     Opportunities

5.2.6     P and G can use direct marketing strategies can be used to attract a wider female audience worldwide through emails, podcasts, webcasts and pop up advertisements.

5.2.7     P and G current products can advertise the new and improved design of Herbal Essences. New products can successfully achieve revenue generation amongst established products.

5.2.8     The expansion of promotion within the developing market of the internet with websites such as MySpace and Facebook. The curvy design of the bottle can be adapted and redesigned in the future offering opportunities for expansion of a broader target audience for Herbal Essences; children and men. The double ended design can be expanded in the future into splitting the bottle into two sections; shampoo and conditioner. It would be an all in one bottle made simple for the user.

5.2.9     The use of a viral advertisement for Herbal Essences on YouTube is a strength as this website is used by the public to watch banned advertisements. This form of online advertising will be powerful as it can reach a global world and creates word of mouth about the brand.

5.2.10  Weaknesses

5.2.11  Competition in the market from other hair companies. There is a need to stand out from other brands be a new innovative product.

5.2.12  The pricing is affected due to the production process being altered. The cost of the product is always threatened by lower costing products such as different brands or supermarket’s own brand of shampoo or conditioner.

5.2.13  The online advertising on the Herbal Essences website is relying on customers dedicated to Herbal Essences and does not seek to attract non-buyers of the brand.

Threats

5.2.14  Price competition with supermarket own brands for shampoo and conditioner.

5.3. Internal research conducted found Herbal Essences’ previous online strategies have caused controversy. Online forums have discussed the negative impact of the sexual content and connotations of the television advertisements (http://www.canadiancontent.net/commtr/herbal-Essencess-brings-stir_650.html) accessed 20 March 2010 and www.YouTube.com has Herbal Essences advertisements (the most viewed advertisement has 48,756 views) with comments about the negative sexual references of the advertisements. This research proved that the advertisements online and on television failed to attract the target audience of business women living fast lives and students with little money or time. The marketing online was found to be failing to meet the needs of the female target audience.  It was found from the data collected from the questionnaire and research that marketing on social networking sites is needed and wanted; such as MySpace and Facebook. Pages and groups will be set up on Myspace, Facebook and Twitter and will offer all fans or subscribers a free sample to each email address. This promotion will create customer loyalty and will inform the viewer about Herbal Essences and the benefits about the new packaging design.

5.4. It was suggested that the Herbal Essences website should use a new and improved video advertisement to promote the new packaging in an innovative and fun way to attract a broader female audience. To create a wide demographic the advertisement features women of all ages and from different cultures. The target audience is females of all ages.

5.5. A PEST Analysis was conducted for the new packaging design:

5.5.1.   Political

5.5.2.   P and G have established laws in place with the government to regulate the Herbal Essences corporation.

5.5.3.   P and G comply with the country data protection laws.

5.5.4.   P and G participate in the Better Business Bureau’s (BBB) Accredited Business Program

5.5.5.   Environmental

5.5.6.   To educate consumers Green Peace and Friends of the Earth will be incorporated within the new packaging design. On these websites Herbal Essences’ new packaging will be advertised and this form of synergy will promote both companies.

5.5.7.   The packaging is recyclable. The packaging features icons to promote recycling and saving the environment.

5.5.8.   The production of the packaging uses raw materials to be environmentally friendly. Fair trade is promoted over the Herbal Essences website in regard to the production process of the new packaging.

5.5.9.   Social

5.5.10. The change of packaging is to attract the widest possible women audience, attracting a large demographic from a teenage woman to an elderly woman which is reflected in the advertising.

5.5.11. Culturally, the packaging is aimed to accommodate all types of lifestyles. The double ended bottle makes the task easier and improving the overall ‘washing your hair’ experience The emphasis is on our modern day culture of hair care and having a beauty regime.

5.5.12. The advertisements online (Herbal Essences Website and Social Networking) are used to promote the USP of the packaging as the focus is primarily on the time efficiency of the design and how it benefits the user. To promote the packaging to be used for all the advertisements will feature women of all ages and cultures. This meets the social trend of being equal and universal.

5.5.13. Technological

5.5.14. The manufacturers and the cost of production remain the same as the bottle size is not being altered only the shape and with the feature of a two ended bottle. The Herbal Essences’ ranges prices will not be affected ensuring current buyers of the brand remain faithful.

5.5.15. Economic

5.5.16. The price of the Herbal Essences’ ranges remains the same, so people’s money expenses or allowance on shampoo and conditioner will not be affected.

5.5.17. Legal

5.5.18. Copyright law of the new design of Herbal Essences packaging has been issued.

6. Conclusion

6.1. It has been concluded:

• There is a need for Herbal Essences’ products to be redesigned. See Appendix B for new design.
• The new Herbal Essences design needs to be promoted through the online supermarket websites where it can be purchased (Tesco’s, Sainsbury’s, Somerfield e.t.c) as store and brand loyalty is already secured and the revamped line of Herbal Essences needs to be in the limelight of the public. The new packaging will be promoted on the supermarket’s website as new and revamped. See Appendix C.
• Social networking sites need to promote the advertisement for the new packaging design through banners, pop ups, groups, posters and videos. The new packaging and advertisement is to attract a wider demographic of females.
• YouTube should be used to upload a viral advertisement as this is a fast way to gain publicity and this form of promotion creates word of mouth about the new packaging for Herbal Essences. See Appendix E for advertisement idea.

7. Recommendations

It is recommended that:

7.1. The new packaging design is used for all the lines of the Herbal Essences range and is to be launched 25 May 2010.

7.2. The packaging design will be on a six month probation period to be able to monitor the sales. Launched on 25 May 2010 and reviewed on 25 November 2010.

7.3. After six months the sales of the new product will be compared to the previous six months before the packaging had been changed. If sales have decreased the new packaging idea will be reconsidered.

7.4. Online promotion on social networking sites, Facebook and MySpace, to gain publicity about the new packaging design. See Appendix C for advertisement ideas.

7.5. A new advertisement video will be uploaded to the Herbal Essences website to appeal to all ages of women. The benefits of a two ended shampoo/conditioner will be the focus of the advertisement. See Appendix D for advertisement.

7.6. A viral advertisement will be uploaded on YouTube to gain publicity quickly, see Appendix E.

Read full report (with appendix) Big Idea Report