Procter & Gamble Company Essay Example

that produces a variety of consumer and household goods. The company's main office is in Cincinnati, Ohio, with regional offices in Singapore, Panama, and Switzerland. Pantene, a hair care product, was initially launched in Europe by Hoffman-LaRoche of Switzerland in 1947. It acquired its name from the ingredient panthenol and has since become a popular brand.

In 1985, Procter ; Gamble (P ; G) acquired Pantene as part of their expansion into the beauty product market. Since then, Pantene has been launched in various countries worldwide, including Australia, New Zealand, Central and Eastern Europe, the Middle East, North Africa, Latin America, Korea, and Japan. With a wide range of hair care and hairstyling products and a focus on hair health, Pantene has gained global recognition for its tagline "hair so healthy it shines." (History of Pantene, 2012)

Sunsilk by Unilever Company was established in 1930 by Antonius Johannes Jurgens,
Samuel van den Bergh,and William Hulme Lever (the 2nd Viscount Leverhulme). It is a British-Dutch public limited company.

The company, Unilever PLC and Unilever N.V., offers a range of products including food, beverages, cleaning agents, and personal care items. Despite being located in the United Kingdom and the Netherlands respectively, these two parent companies work together with a shared group of directors and various agreements connecting them (Unilever Company History, 2012). Sunsilk was introduced in the United Kingdom in 1954.

The Unilever group is the producer of Sunsilk, a hair care product primarily aimed at women. Sunsilk is Unilever's leading brand in the hair care category and it is sold under different names globally, including Elidor, Seda, and Sedal. This brand has significant market dominance in Asia, Latin America, and the

Middle East. It holds the top position in countries such as India, Brazil, Argentina, Bolivia, Bangladesh, Sri Lanka, and Thailand.

Based on our survey questionnaire (refer to appendix B) which was distributed to 30 respondents; 90% of them fall within the age range of 20 to 29 years old—the primary target for Sunsilk and Pantene. The remaining 10% were between the ages of 10 and 19 years old. Additionally, we distributed the same questionnaire to 30 respondents at University Tunku Abdul Rahman with an equal split of 15 males and females.

The results are displayed below:

Product Preference of Respondents

According to the results, out of 15 male respondents, 8 chose Pantene as their preferred shampoo, while 7 male respondents chose Sunsilk. For the female respondents, out of 15, 13 chose Sunsilk as their preferred brand, while 2 chose Pantene.

Product (Sunsilk)

Influences on Purchase Decision of Sunsilk

This survey provides an overview of customer preferences for Sunsilk shampoo. Out of the total 30 respondents, a majority of 20 indicated a preference for Sunsilk as their brand choice. Many participants in our survey agreed that they favored the quality of Sunsilk. As shown in the bar chart above, 10 individuals expressed their intention to purchase Sunsilk based on its quality.

The text emphasizes that customers prioritize products with higher quality ingredients over pricing. Only 2 respondents mentioned pricing as a factor in their preference, as they are willing to pay more for a higher quality product. Ness and Gerhardy (1994) assessed customer preferences for the quality and freshness of eggs, revealing various attributes that buyers consider in their evaluation.

Based on a survey of 20 egg buyers with

diverse lifestyles and preferences, it is clear that the majority prioritize the freshness information of the eggs' lay date rather than the packing or sell-by date. This focus on freshness stems from their desire for optimal amounts of calcium and vitamin D3 from the eggs they purchase. Additionally, consumers place greater importance on factors such as quality, freshness, safety, and environmental friendliness when selecting products over cost considerations. They are willing to pay more for healthier food instead of settling for lower-quality items at a lower price. As a result, quality plays a significant role in determining consumer preference for a specific product brand.

Product (Pantene)

Factors Influencing Purchase Decision for Pantene

The collected data shows that out of the 30 respondents surveyed, only 10 expressed a preference for purchasing Pantene Shampoo.

Among 10 respondents, 6 agreed that the main factor affecting their decision to buy Pantene is the influence from family and friends. Consumers tend to be influenced by their loved ones in making purchasing decisions because of regular interaction and communication. This results in a stronger inclination to try the product after receiving recommendations from friends who have personally experienced its effectiveness and benefits. The bar chart above indicates that quality was chosen as the influencing factor for purchase decision by 4 respondents. He and Yang (2010) widely assert that consumers' decisions in buying publicly used products, such as cell phones, are heavily influenced by their reference groups.

The purchasing habits of consumers in relation to cell phones are believed to be influenced by reference, which includes factors such as lifestyle, learning environment, perception, and motivation. Consumers often make buying decisions based on the

perceived expectations of others. This may involve wanting to project a positive image to peers or fulfill the expectations of family members. The impact of family is particularly significant on consumer behavior since they are closest to individuals. In today's modern society, children are frequently influenced by their parents' purchases and strive to keep up with technological trends.

Price (Sunsilk)

Consumers’ Price Perception toward Sunsilk

The pie chart above displays the respondents' perception of Sunsilk shampoo's price. It shows that 67% of respondents find the price reasonable, while 33% disagree. Notably, the number of respondents who choose Sunsilk is equal to those who consider the price reasonable. This suggests that price greatly influences their decision to purchase Sunsilk. Our market survey in Jusco (refer to appendix C) confirms that a 700ml bottle of Sunsilk is priced at RM26.40, which is considered reasonable by 20 respondents.

According to Kenesei and Todd (2003), the cost or price of a product is an important factor in consumers' decision-making process. Consumers evaluate product features and compare prices for different products. Research shows that 50% of shoppers do not check the price of a product, but 66% claim to have checked the price of the item they chose, with 46% even comparing prices of competing products. Therefore, when considering purchasing Sunsilk shampoo, consumers will take into account the price after determining its desired function.

Price (Pantene)

Consumers' Price Perception Toward Pantene

The above pie chart illustrates how consumers perceive Pantene based on its price.

Based on our surveys, the majority of respondents (67%) find Pantene's price unreasonable, while 33% agree. It

is important to mention that the number of individuals who consider the price reasonable is the same as those who choose Pantene, indicating that price influences purchasing decisions. Our market survey at Jusco (referenced in appendix C) shows that a 700ml bottle of Pantene costs RM28.90, leading our respondents to prefer Sunsilk instead.

Kenesei and Todd (2003) found that the price of a product is an important factor in consumers' purchasing decisions. Consumers consider both the features and price when evaluating products, with the number of prices they consider increasing as they examine more products. In their study, it was discovered that 50% of shoppers do not check product prices, while 66% claimed to have checked the price of the chosen item and 46% even compared prices of competing products. Therefore, once consumers identify the desired function of a shampoo, they will check its price and assess if it is worth buying.

Place (Sunsilk)

Distribution Location for Sunsilk

A survey conducted with 30 respondents revealed that out of all respondents surveyed, 20 preferred to purchase Sunsilk. Among these 20 Sunsilk preference users, 13 opted to buy it from a hypermarket.

In terms of convenience and product variety, hypermarkets offer a wide range of goods, making them a convenient one-stop shop for consumers. Their high turnover rate ensures that the products are always fresh compared to grocery shops. However, grocery shops are not commonly preferred by customers due to their limited product variety and unreasonably high prices. According to Barry and Howard's (1977) journal, hypermarkets are favored by consumers in low-income areas where there is a lack of availability and higher prices. In contrast, grocery

shops have a limited selection of products, offering consumers fewer choices.

Besides that, the price of an item may vary from what is stated in the advertisement. Respondents from a survey express more confidence in the product quality at hypermarkets because their management is more vigilant and has better control over product quality before selling to consumers. Therefore, hypermarkets are the preferred place for consumers to purchase products.

Place (Pantene)

Distribution Location of Pantene

Out of 30 respondents, 10 prefer to buy Pantene.

Out of the respondents, 6 stated a preference for purchasing Pantene from Hypermarkets. This preference is attributed to the perception that hypermarkets offer higher quality products compared to grocery stores. Only 1 respondent chose a grocery store as their preferred place to buy Pantene. Additionally, 3 respondents indicated that they would purchase Pantene shampoo from a supermarket. Thus, it can be concluded that hypermarkets are the preferred choice among customers for purchasing shampoos.

Based on the survey, respondents showed a preference for buying Sunsilk and Pantene Shampoos from hypermarkets. Previous research conducted by Barry and Howard (1977) discovered that grocery stores in low income areas faced higher rates of unavailability and overpricing, with prices averaging twice as high compared to stores in higher income areas. The scarcity of hypermarkets in these lower income areas resulted in a lack of competition, contributing to these issues. Survey participants frequently experienced situations where prices on items were either higher or lower than advertised. Furthermore, they observed differences in product quality between grocery shops and hypermarkets.

It is believed that the hypermarket will be the most suitable place for product purchasing.

Promotion

Advertising

Tools for Sunsilk

To determine the most effective advertising tool used by Sunsilk, questionnaire forms were distributed to 30 shampoo users. Out of these respondents, 20 were Sunsilk users and 17 of them became aware of Sunsilk through TV advertisement.

TV advertisement is effective at capturing consumers' attention and influencing their intention to purchase and try products. Out of the 30 respondents, 2 stated that they learned about Sunsilk through social media, while 1 respondent discovered it through another factor. Public relations also play a crucial role in promoting products. However, according to Chan, Su, and Huang (2010), research indicates that television advertising is the most effective tool for reaching a large audience and attracting their attention.

The Taiwan Super Basketball League uses television advertising as a means of communication with its audience. TV advertisements are visually appealing with attractive visuals, quick flashes, and impactful voices. They leave a lasting impression and are highly effective in promoting the SBL. Additionally, TV advertisements have the advantage of adaptability, the possibility of retransmission, and improvement in recognition ratings. Therefore, TV advertisements have a significant impact on the development of the SBL.

Advertising tools for Pantene

Based on the obtained result, out of the 30 respondents, 10 of them are Pantene users who became aware of Pantene through TV advertisement.

According to Chan, Su, and Huang (2010), television advertisements have the power to emotionally motivate consumers and inspire them to make purchases. These ads serve as reminders of consumers' desire to possess what is being offered and can give the product instant prominence. The effectiveness of television advertisements in capturing consumer recognition about the Taiwan Super Basketball League is emphasized, as these

ads are able to grab consumer attention and generate intention to try.

Television advertisements are rapidly broadcasted, captivating, vibrant, and engaging, making them the most dynamic and all-encompassing form of advertising. Compared to radio and magazine, visual descriptions in TV advertisements are especially appealing. This makes it easier for consumers to remember TV advertisements more than other advertising methods. Consequently, TV advertisements greatly influence the development of SBL.

Promotional Methods for Sunsilk

According to the findings of 30 surveys, 18 Sunsilk users favor the buy 1 free 1 promotion. Additionally, one Sunsilk user favors cash rebate as it enhances customer loyalty and encourages repurchase. Furthermore, another Sunsilk respondent prefers the promotional strategy of using coupons. Therefore, it can be concluded from these results that respondents believe that the buy 1 free 1 promotion saves more compared to cash rebates and coupons.

The promotion of buy 1 free 1 is a strategy that encourages consumers to make more purchases. This strategy allows the company to increase their short term sales, revenue, and profits. According to the journal of Bridges, Briesch, and Yim (2006), consumers are more motivated to process information that is personally relevant to them. As a result, they engage in cognitive elaboration, particularly when it comes to product categories that they have a long history of using. Consequently, promotional activities are more likely to be mentally processed by consumers and influence their purchasing decisions. Due to this increased sensitivity to price and promotions, consumers are more inclined to buy brands that are low priced or being promoted when they intend to make future purchases. Therefore, when Sunsilk's shampoo is offered as

a buy 1 free 1 promotion, consumers are more likely to choose it.

Promotional Methods for Pantene

According to the obtained result, 8 out of 10 Pantene users prefer the buy 1 free 1 promotion over others. One respondent of Pantene prefers cash rebate and one user prefers coupon promotion. Thus, a majority of Pantene users prefer the buy 1 free 1 promotion as it provides more value for them. Darke and Chung (2005) state that there is a negative impact on discount prices. Consumers tend to perceive discounted items as lower in quality and are less likely to make future purchases. Discount prices create negative price-quality inferences, where consumers use the lower selling price to judge the lower quality of the product.

Therefore, consumers are not fond of cash rebates as a promotional method because it leads to a negative perception of the product's quality.

Recommendation

Sunsilk

Based on our surveys, respondents have made recommendations on how to increase customer awareness of Sunsilk. Some respondents suggest that Sunsilk should release hair-fall control and hair growth products. This is because the middle-aged group is particularly concerned about hair fall issues. Hair fall problems can lead to a decrease in self-esteem, confidence, and affect people emotionally and physiologically.

Sunsilk has a huge market and should consider introducing a shampoo specifically for men in order to tap into that segment. To avoid confusion among customers when a new product targeting men is launched, Sunsilk can position itself as a brand that can be used by both genders. In addition, some respondents suggested giving out free samples for customers to try and experience the

product themselves. This way, customers who are uncertain about purchasing a full bottle of Sunsilk will be more inclined to try it, leading to increased awareness and attracting more customers.

Pantene

Respondents suggested that more promotion should be done by Pantene. The lack of promotion has often left customers unaware until they stumble upon it in the shopping mall. Therefore, Pantene should engage in more promotional activities, like offering discounts, coupons, and so on. Additionally, respondents suggested that Pantene should introduce smaller-sized shampoo packages for customer convenience, especially for those who travel and do not wish to carry a full bottle of shampoo for just a few days.

Changing the packaging of Pantene can provide customers with a sample to determine if they like it or not. The new packaging can include different designs, colors, and more. The design of a product can attract customers by creating the perception that the shampoo has more inside or is larger in size, even though it remains at 350ml. Additionally, the color of the packaging can be an attraction as it caters to personal preferences. For example, some people may prefer pink while others prefer blue.

Conclusion

In conclusion, out of 30 respondents, 20 chose Sunsilk. Among the Sunsilk respondents, 50% selected the brand for its quality.

Customers are willing to pay for higher quality, freshness, safety, and environmental friendliness rather than just considering cost. Among respondents of Sunsilk, 67% believe the price is reasonable while 33% find it unreasonable, indicating that price influences decision making. The majority of Sunsilk

respondents choose to purchase from Hypermarket due to the wide range of available products. Furthermore, TV advertisements have successfully raised awareness among Sunsilk respondents. Lastly, a majority of Sunsilk respondents prefer the "buy 1 free 1" promotion over other promotions.

It incentivizes customers to make more purchases, thereby boosting Sunsilk's short-term profit. In the case of Pantene, out of the 30 respondents, 10 agreed that family and friends have the most influence on their decision to buy Pantene products. Customers tend to buy Pantene after receiving positive feedback and recommendations from their loved ones, through word of mouth.

67% of the Pantene respondents find the price of Pantene reasonable. Six of them prefer to purchase Pantene from Hypermarket as it offers a comparably better quality product compared to grocery shops. Additionally, the grocery shops in low-income areas often have supply issues, while those in high-income areas tend to overprice the products. All the Pantene respondents were introduced to the brand through TV advertisements.

Customers are attracted to Pantene because it captures their recognition and motivates them emotionally. Like Sunsilk, 80% of Pantene respondents also prefer buy 1 free 1. This is because the word "free" leaves a strong impression on customers' minds and helps to build brand loyalty.