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Arkaprava Ghosh

HAIR CARE CATEGORY IN CENTRAL AMERICA


total hair care sales(%)
Consumers were mainly women
between 18-50 years of age 8% costa rica
9% el salvador
24%
guatemala
Decision on type of product and brand
15% nicargua
purchase attributed to women
honduras
23%
21% panama
Within the category , associations of
consumers were mainly with
Shampoo & conditioner
•Defined by “look beautiful” , “feel good”
Association with
CONSUMER PULL principal benefits

Association with
product specifications
Extensions like gel , hair spray ,
fixatives found a very low association
CONSUMER INSIGHTS: CENTRAL AMERICA
Consumer segmentation : based on “socioeconomic groups” determined
by annual income of people
This class is more focused
SEC A (annual income > US$ 57000) on the emotional connect
that the brand provides
SEC B (annual income > US$ 29000
Tap on factors like “softness” ,
SEC C+(annual income > US$ 15000
“silky” , “healthy” etc. more
SEC C- (annual income > US$9000) focused on the ingredient factor

SEC D (annual income> US$2000) Associated with the most


basic need of cleansing

Consumer Cosmetic imagery was of great importance in


insight “central America” ; hence hair care was of great influence here
People belief: important to look good to leave an impression

Category influence people belief saw a gradual shift in the product offerings by leading brands

Basic shampoo & Hair type- normal , Hair characteristics-


conditioner oily , dry straight , curls, color
MARKET SHARE (%)
SUNSILK PANTENE HEAD&SHOULDERS
PERT PLUS NATURALS OPTIMUS

10% 6%

16% 25%

10%

34%

Source: Latin American journal , really information center


MARKET SHARE(%)
SUNSILK
PANTENE
HEAD&SHOULDERS
PERT PLUS
NATURALS
OPTIMUS
6%
10%
29%
16%

33% 6%

Source: Latin American journal , really information center


MARKET SHARE (%)
SUNSILK PANTENE
HEAD&SHOULDERS PERT PLUS
NATURALS OPTIMUS

7% 12%
24%

29%

24%
5%

Source: Latin American journal , really information center


MARKET SHARE (%)

12% 11% SUNSILK


3% PANTENE
HEAD&SHOULDERS
26% PERT PLUS
NATURALS
32%
OPTIMUS
15%

Source: Latin American journal , really information center


MARKET SHARE (%)
SUNSILK PANTENE HEAD&SHOULDERS
PERT PLUS NATURALS OPTIMUS
4%

28%
41%

5%

13%
9%

Source: Latin American journal , really information center


MARKET SHARE (%)
SUNSILK PANTENE HEAD&SHOULDERS
PERT PLUS NATURALS OPTIMUS

11%
22%

10%

8%

28%
21%
Product portfolio :
•Shampoos
•Conditioners
BRAND OVERVIEW •2 in 1

Key consumer segments : B , C & D ; C & D accounted for 70% of brand sales

Bottles accounted for 80% of the sales Single pricing strategy was followed for all
throughout Central America channels but in general sunsilk prices were
15% above the average market price
Brand sales were mainly attributed to the older female consumers
Top of the mind recall in the youth segment
Presence since ages
was found to be very low (2001 brand equity studies)
•Rate of subsequent innovations was low
Perceived to be Traditional
•Competitors had extended their lines to
Traditionally sunsilk had been considered styling creams while sunsilk still remained
innovative with the introduction of 2in 1 in the shampoo-conditioner category
shampoo+conditioner

glamorous Low in hair care expertise


Connotation
: sunsilk
Basic product specifications ; Can be used only for basic
Low in innovation cleansing
Failure by sunsilk to establish market
share
Top of the mind recall by customers
was in the range of 3-8%
Prominence & brand loyalty both had
taken a dip in these countries

Brand sunsilk was present for over


10 years and had a strong market
share in SEC C&D
SUNSILK WAS THE MARKET
LEADER
Focus groups showed outright
resistance towards any change in
brand communication
At the end of 2001, a managerial team from Unilever Central America, decided to undertake a
brand, image and formula change of Sunsilk hair care products

SUNSILK was to be changed to SEDAL


2 different concepts were proposed for the change

•In Nicaragua, Honduras, Guatemala


and Panama, the change consisted in
the removal of the Sunsilk range from
the market, replaced by the Sedal range,
accompanied by an advertising
campaign for launching the new product

•In Costa Rica and El Salvador, one Pais


Translation: country
product gradually replaced the other
due to the strong imagery of sunsilk in
those countries
MAKING CHANGE: SUNSILK TO SEDAL
Increase the rate of innovation in terms of
specifications

Extend product lines to hair treatment


creams , hair styling gel , hair fixatives
etc.

Introduction of new variants to capture


the market , specially the A & B
socioeconomic class

Change in
communication
•Sedal brand hair care expert in the world
•Sedal understands what your hair means
•Targeting the Youth
Sedal now launched their brands on 3
MAKING CHANGE: platforms:
SUNSILK TO SEDAL
•hair repair & care platform
Increase the rate of innovation in terms of
specifications •Pharmaceutical platform

Extend product lines to hair treatment •Color protect platform – a new


creams , hair styling gel , hair fixatives innovation in the hair care category .
etc.
Sedal realized that natural hair color
Introduction of new variants to capture differed person to person so sedal
the market , specially the A & B launched a new line for “protecting your
socioeconomic class natural color”

Change in
communication

One of its kind combing cream to give instant style and


look to your hair
REPAIR & CARE PLATFORM
VARIANT SPECIFICATION BENEFIT
Control Zinc pyrithione Zinc pyrithione
humect Complex moisturizer : dandruff control
Lys amino acid moisturizes

ceramidas Vitamin a repairs the hair


shaft, strengthens intercellular cohesio
n stimulates cell renewal

guarana Guarana extract Properties to stimulate and fortify


capillaries
Active hair shine

Miely germen Wheat extract Moisturizes and nourishes dry hair


de trigo For dry hair only
PHARMACEUTICAL PLATFORM
VARIANT SPECIFICATIONS BENEFITS

lissage hydrolyzed protein, hydroly Nourishing and relaxing


zed wheat glucose  each fiber helping in
capalimero nourishing & easy combing

hidraloe Natural essences For long hair volume


control by nourishing and
moisturizing

antisponge With hydrolyzers Prevents dehydrations and


prevents hairfall while
combing
COLOUR CARE PLATFORM
VARIANT SPECIFICATION BENEFIT
Castanos intensos Jojoba oil Removes hair grease

Rubios Chamomile extract Free radical scavenger (for external


radiantes factors) preventing hair rust

Rojo vibrantes Red fruit extracts Increased recirculation of proteins


through capillary resistance thus
preventing hairfall

Negros melanin Maintains the black lustre of hair


lumioscs
MAKING CHANGE: SUNSILK TO SEDAL
Increase the rate of innovation in terms of Research revealed two of the most pressing
specifications needs of consumers in Mexico:
 HAIR FLUFF  & HAIR LOSS
Extend product lines to hair treatment
creams , hair styling gel , hair fixatives
etc. Sedal “anti-sponge” has
an essential ingredient
Introduction of new variants & avocado which is a
products to capture the market , hydrating complex to
specially the A & B socioeconomic class hydrate hair fibres and
prevent them from
Change in refluffing all day long
communication

Sedal ”Caida Defense” is enriched with vitamins
 A & E which strengthens the hair fiber, making
it more resistant to attacks ,
preventing the hair to weaken, crack
and facilitating the hair both wet and dry
MAKING CHANGE: SUNSILK TO
SEDAL
Increase the rate of innovation in terms of
specifications

Global campaign “life cannoit wait” by sedal


Extend product lines to hair treatment
highlighting Marilyn Monroe, Madonna and
creams , hair styling gel , hair fixatives
Shakira the three most iconic women in
etc.
The history of the entertainment world
showcasing their attitude and how their hair
Introduction of new variants to capture identified them in every stage of their career
the market , specially the A & B
socioeconomic class The goal of this campaign was to inspire women
to take advantage of opportunities presented to
Change in them, to live today and make life happen to
communication them now, using, among other things, their hair
as a vehicle to transform their look and assert
their identity

Source: Latin American journal , really information center ; mexico teen magazine cutout
SEDAL-SUNSILK
MIGRATION
El Salvador & Costa Rica

Stage 1: Through change in


presentation of labels

•Concept of rebranding was


carried out using
Double label concept

•The goal was to get consumers


to see the brand “sunsilk” on the
packs but when they removed
the superimposing flap they
could observe “sedal” on the
same pack

Source: Latin American journal , really information center


SEDAL-SUNSILK MIGRATION
El Salvador & Costa Rica
Stage 2: Introduction of new formulation

Launch of new range


•Research had revealed that around 63% of consumers dye
their hair; so a new variety in the form of color protect
shampoo was launched specially for El Salvador & Costa Rica New innovative
formula
•It was hoped that the consumers will notice the new look and Extra
feel of the new “sunsilk” or “sedal” as the removable stickers conditioning
revealed

“Islands of change sedal” were introduced in


Essential point of sale activities were major supermarket chains to ensure that
undertaken to communicate the brand change consumers could see for themselves that the
& variety launch product had improved

ICS were exhibitors with beauty lounge area that analyzed hair charecteristics of
participants & demonstrated the efficiency of sedal products on them for free on
presentation of double label
Source: Latin American journal , really information center
SEDAL-SUNSILK MIGRATION
El Salvador & Costa Rica
Stage 3 : continuous innovations &
commercial variety

Campaigns were marked by commercials


both based on emotion

•Around this time , packaging was also


changed from 400& 250 ml varieties
to 300& 200 ml varieties

•The change was mainly due to the closure of


manufacturing plant in El Salvador & products
Had to be imported from Argentina & Brazil

•A 80 ml package was also introduced for all


varieties

Source: Latin American journal , really information center


SEDAL-SUNSILK MIGRATION:
Nicargua , Honduras , Guatemala , Panama
Having not a very good hold in these markets ; it was decided to replace “sunsilk” with
the “sedal” brand completely

Before the launch of “sedal” ;


STRATEGY:
inventory levels of “sunsilk”
were gradually reduced at the
point of sale so that it was
economically feasible to
withdaw SKU’s of “sunsilk” and
replace them with “sedal”

Emphasis on international look & packaging

Launch of various variants at once to prove their


expertise in hair care

Launch was geared up with the introduction of


“vital color” and “islands of change sedal”
campaign were all over these countries to
support the launch Source: Latin American journal , really information center
SEDAL-SUNSILK MIGRATION:
Nicargua , Honduras , Guatemala , Panama
Relaunch of the sunsilk Launch of new varieties began with
line like “hindraloe” for people with wavy &
“aloe” for dry hair curly hair
UV melanin protect 2 months later saw the launch of
“vital color” designed for colored hair
DNA for long hair
With new
Line extension for all
wording”sedal” and
new package with new Varieties to
etiquette of the brand •Styling cream
Advertising in mass •Treatment cream
media & Point of sale •Lotion treatment
promotions continued •Combing sprays &
for 5 months till the creams
mark established itself

Logistics carefully evaluated


to minimize losses whilst Timeline : 2001-2003
total removal of “sunsilk”
brand
Source: Latin American journal , really information center
Sedal – the market leader
60%

Market share in Central America (%)


50%

40%

30% 2003
2004
20% 2005
2006
2007
10%

0%
al ne rs ar
iv ta
l
ua es e rs
se
d e d e H n c ov h e
ant u l sa a
sen d ot
p sh
o es
& b al
e ad h er
h Source : graduation thesis by yessica paola , ICHE

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