Herbal Essences Vs Pantene (Strategic Marketing)

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Introduction Of the two products:

Herbal Essence:

A products part of Clairol brands, made its new coming in the Lebanese market in 1995, introducing a new concept of shampoos for men and women, this product claims that it leaves "Gorgeous, luxuriously soft hair."

Pantene:

A product that joined the Lebanese market in 1984, he brought the revolution of the shampoo industry, with their new pro-v formulas that revitalizes the hair, their main logo was a "serious care for beautiful hair", they promised to keep the hair "Shiny and Bouncy."

Situation Analysis:

The situation analysis usually covers external environmental forces and internal no marketing resources.

It considers the groups of consumers, the strategies used to satisfy them, and key measures of marketing performance.

The Lebanese economic and political situation can not be envied by any other country, the economy crises that it is currently facing is the major cause for the lack of investment and the search for the lowest prices by the consumers.

So when a consumer goes shopping and according to his real income, which is in general, very low, he finds himself in the obligation to search for the lowest prices in the market and acceptable quality not the best one for every product he is buying.

As Pantene and Herbal Essence, are two imported products, they are facing a big threat that every other imported product is facing because of the low price and the acceptable quality of the local products.

SWOT Analysis for both products:

Table 1 Shows a SWOT analysis for Herbal Essence.

Strength - Effective Team work

- Employees Highly motivated

Weakness - High operating expenses difficult to compete with the low prices of the market.

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... know that Lebanon economy is unstable and the country is still financially under construction.

The profit forecast will be as follows:

And the table of this forecast will be as follows:

Pantene 2004 Herbal Essence 2004

Net Sales 1,530,000 Net Sales 1154000

Cost of goods sold 535,666 Cost of goods sold 580000

Gross Profit 994,334 Gross profit 574000

Net Profit 575,300 Net Profit 442800

The budget needed to establish this forecast, is minimal compared to the unrealistic high advertisement costs made in the past years and that didn't have that expected effect for both products a budget of 3 to 5 hundred thousands dollars should be enough for both products, this project can not have a negative effect it a bit costly and can not be particularly specific and accurate but they can at least try it instead, and see if it has a positive turn over.

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