Assignment

3

Sunsilks competitors analysis

Sunsilk is one of the products of Unilever group and it is a hair care brand that
focuses on the women of the society. Sunsilk is now known worldwide and
stands as worlds leading company in hair care conditioning and the second
largest in shampoo market, which are available in about 69 countries. The main
market for the brand is Asia followed by Latin America and the Middle East. In
Asia the main industry is in India followed by Bangladesh, Sri Lanka and
Thailand.

Competition is the rivalry in which every seller tries to get what
other sellers are seeking at the same time such as sales, profit and market share
by offering the best practicable combination of price, quality, and service. Where
the market information flows freely, competition plays a regulatory function in
balancing demand and supply.
Knowing who the competitors are, and what they are offering, can help to make
the products, services and marketing stand out. It will enable to set your prices
competitively and help to respond to rival marketing campaigns with their own
initiatives.

Sunsilk competitors in Market are categorized differently as:

A Direct Competitors: is another company that offers the same products and
services aimed at the same target market and customer base, with the same goal
of profit and market-share growth.
Sunsilk faces cutthroat competition with P&G products such as Head and
shoulders and Pantene. In urban areas, Sunsilk is acting as a market challenger
against P&G. Sunsilk has got the advantage of keeping their prices lower than
P&G shampoos but P&G has captured a bigger share of the market due to its
intense promotional activities.

An Indirect competitor: is another company that offers the same products and
services, much like direct competitors; however, the same end goals are
different. These competitors are seeking to grow revenue with a different
strategy. Nearly every company is involved with some form of indirect
competition. Indirect competitors of Sunsilk are clear, rejoice, clinic plus.

A replacement competitor: is something someone could do instead of chooses
your product. But theyre using the same resources they could have committed
to your product. Sunsilks replacement competitors are Chick shampoo and
shampoo bars.

Sunsilk strive to increase sales volume by utilizing the 4 components of the
marketing mix, also referred to as the 4P's: product, place, promotion, and place.
Sunsilk being launched in 1954 in the U.K has target market of females in 16-40
age group but in their promotions they target the entire market. Its main
objective is to grab the market and to be a superior in the market therefore it


focuses on the lower income group as it comprises of the major chunk of the
population. It uses innovative techniques and pervasive ways to establish a
position and make people aware of the product.
The success of Sunsilk emulated which captured the rural market by two
strategies: Develop strong distribution structure and Adopting packaging and
pricing. Sunsilk increase buying of raw material so that it does not have to suffer
devolution and continuously increase in tariff rates. They introduced a smaller
100ml pack of Sunsilk in order to capture lower income segment. Sunsilk enter
into web marketing. They should increase frequencies of advertising by
electronic and print media. They should introduce 2 in 1 shampoo plus
conditioner that demand huge potential market. Finally, taking everything in
account we can say that if Sunsilk emphasize more on social responsibility and
create more attractive marketing programs, they can grab huge number of
customers

Sunsilk and its competitors Market segmentation, Target customer group,
positioning and SWOT analysis are as below:
(Sources are derived from http://www.mbaskool.com/brandguide/fmcg/1005-
sunsilk.html)

Sunsilk
Parent Company

HUL (Unilever)

Category

Personal Care Hair Care

Sector

FMCG

Tagline/ Slogan

For Expert Touched Hair; Life Cant Wait; All you need is
Sunsilk

USP (Unique
selling
proposition)

Popular hair care brand having product for all types of hair
STP

Segment

Personal Hair Care Shampoo available in multiple variants

Target Group

Girls in the age group of 20s

Positioning

The Sunsilk hair care range provides a complete hair care

solution and functions as a 3-step combination of cleansing,
nourishing and manageability
SWOT Analysis

Strength

1. Launched in 1964, with a presence of over 80 countries

2. Available in various variants to suite every type of hair
need (Anti Dandruff, Hair Fall etc)
3. Number 1 in Asia, Latin America and the Middle East,
with sales of more than 1 billion a year


4. The brand is strongest in Asia, Latin America and the
Middle East and is the number one hair care brand in India,
Brazil, Argentina, Bolivia, Bangladesh, Sri Lanka and
Thailand.
5. Madonna, Shakira, Marilyn Monroe, Priyanka Chopra etc
are brand ambassadors lead to excellent branding and
advertising
Weakness

1. Poor penetration in semi urban and rural market

2. Target market limited to just teens and 20s age group
3.Competition intense in the hair care segment

Opportunity

1. Improve their community for Indian girls which is

sunsilkgangofgirls.com
2. Sunsilk Co-Creations Partnering with 7 of the worlds
best hair experts for new and improved products

Threats

1. Multiple competitors with similar offerings and lower

price range
2. Not prevalent in the rural markets
3. Competition from in-house brands like Clear, Clinic Plus
Competition

Competitors

1. Garnier Fructis
2. Head and Shoulders
3. Pantene

Garnier Fructis
Parent Company

L'Oral

Category

Personal Care brands - Hair care

Sector

FMCG

Tagline/ Slogan

No One makes your hair stronger

USP (Unique selling

proposition)

Shampoo + Oil eliminates need of two separate hair

care routine /
Long and strong hair
STP

Segment

Upper middle class and affluent segment

Target Group

High Income and middle income group of all

ages(includes all variants of fructis shampoo)

Positioning

Fortifies your hair and gives them shine

SWOT Analysis

Strength

1. Presence in Developed Emerging Markets

2. Strong R&D capability
3. High number of Variants Available
4. Excellent distribution network
5. Highly popular brand due to advertising and
marketing

Weakness

1. Higher Price as compared to other brands

2.Late entry into Asian markets, hence lesser market
share

Opportunity

1. Demand for natural cosmetics

2.Changing consumer lifestyles
3.Beauty products market growing with a significant
rate
4. Tie-ups with corporates, hotel chains and penetrate
rural markets

Threats

1.Existing Competition
2.Price Competition among Branded Manufacturers
Competition

Competitors

1.Pantene
2.Head&Shoulders
3.Dove
4.Sunsilk

Pantene Pro V
Parent Company

Procter and Gamble

Category

Personal Care brands- Hair care

Sector

FMCG

Tagline/ Slogan

For hair so healthy it shines

USP (Unique selling

proposition)

One of the premium and popular variant of pantene

shampoo
STP

Segment
Target Group

Variants of the products for people with different

hair texture and needs
Women who are concerned about the beauty and
health of hair and are ready to spend for it

Positioning

Takes care of different types of hair and is satisfies

basic needs of hair care
SWOT Analysis

Strength

1. Billion-dollar leading brand for P&G

2. Strong advertising campaigns & innovative
promotion strategies
3. Largest share of voice in industry
4. Recognizable brand image and strong brand equity
5. Extensive product line that meets consumer needs
and answers trend
6. Strongly preferred among the competition

Weakness

1. Lack of brand loyalty

2. Mid-priced brand presents vulnerability
3. Stagnant sales
4. Majority of products in saturated markets
5. Lack of a variety of distribution channel

Opportunity

1. Product extensions focusing on segmentation of

consumer needs
2. Consistency in product use for daily cleanliness
3. Untapped target markets that have loyalty traits
and growing populations
4. Advertising money allotted by P&G continues to
increase.
5.Innovative marketing techniques

Threats

1. Newcomer salon brands creating products for

retail stores
2. Low switching cost
3.Salon-purchased products take away from minority
market share
4. Flooding of market with new products
5. Competitor innovation and technology
6. Market inundated with advertisement campaigns
from competition
7.Lack of product differentiation between
competitors
Competition

Competitors

1.Sunsilk
2.Clinic Plus
3.Dove

Head & Shoulders
Parent Company

Procter and Gamble


Category

Personal Care brands- Haircare

Sector

FMCG

Tagline/ Slogan

Dandruff care for great looking hair

USP

One of the strongest contenders in dandruff

shampoo market
STP

Segment

Anti dandruff segment with smooth hair

Target Group

Higher middle class people who are brand conscious,

early adaptors and who care about the overall health
of their hair

Positioning

Removing dandruff and nourishing hair

SWOT Analysis

Strength

1. Strong Financial position of P & G

2. Brand Loyalty
3. High Quality Products
4. Well known brand
5. Availability of Products in Different Sizes
6. Large Network for Distribution
7. Consumer Trust

Weakness

1.Strong competition with clinic all clear

2.Lagging behind Clinic all clear in terms of creative
campaign
3. Less popularity in rural areas compare to urban
areas in India
4.Higher price than other brands makes it less
popular with lower income classes

Opportunity

1. Have a Great Opportunity in New developing areas

of India.
2. Consumer behavior towards brand loyalty
3. High Rates of Imported Shampoos
4. Increase in the Shampoo consumption due to
awareness
5. Heavy investment in the research of Shampoo

Threats

1. High Competition in Indian Market

2. Threats from new entrants
3. Threats from plenty other options available to


consumers
Competition
Competitors

1.Clinic All Clear

2.Unilevers clear
3.Sunsilk

Sources:

http://www.unilever.pk/aboutus/introductiontounilever/
http://www.unilever.pk/aboutus/introductiontounilever/UPLfoofs/default.asp
x
http://download-reports.blogspot.com/2009/10/report-on-strategic-
management-of.html
http://www.ukessays.com/essays/business/unilever-swot-and-pestle-
analysis.php
http://www.codewit.com/Pestel_Analysis.pdf
http://www.scribd.com/doc/62676330/57150749-Sun-Silk
http://www.marketwire.com/press-release/unilever-announces-final-results-
nyse-ul-1748595.htm
www.unilever.com/ourcompany/investorcentre/results/quarterlyresults/defau
lt.asp
http://itunes.apple.com/us/app/unilever-investor-centre-
app/id483403509?mt=8&;ign-mpt=uo%3D4
http://www.rns-pdf.londonstockexchange.com/rns/1433W_1-2013-1-22.pdf
http://www.awaztoday.com/News_Evolving-advertising_3_12499_Showbiz-
News.aspx