Tresemme Marketing Strategy free essay sample

At the very first time TRESemme was only intended to be distributed within salon for professional hairstylist. But, with the increasing demand from salon and expanded market scope, TRESemme realized their potential market and re-launch as the home haircare product that provided professional salon quality without the salon price. Unlike other affordable haircare product that sells their product in a mainstream way, like having brand ambassador and so forth, TRESemme choose to build partnership with prestigious event and competition to gain the brand awareness from all form of society. TRESemme believe that through making partnership with prestigious events and competition like Asia’s Next Top Model and Mercedes-Benz Fashion Week, customer will believe their quality without worrying the high price. After taken over by Unilever in 2011, TRESemme even gain more success. Their market scope is expanded to Asia and some other countries. They are now competing with various international products, like Pantene, Garnier and so forth. We will write a custom essay sample on Tresemme Marketing Strategy or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In 2011, they are having the biggest market share for the shampoo. Realizing that they still have many weaknesses regarding the product range and somehow intimidating bottle size, TRESemme is still having their own spotlight. II. COMPANY BACKGROUND amp; OBJECTIVES TRESemme’s Profile This brand starts of on St. Louis, Missouri on 1974 to be distributed within salon. As time goes by, the product became more popular and realizing the truth that every woman deserves a beautiful hair with affordable price, TRESemme launched their product for public with affordable price. They commit to have a salon quality product that tested by professional stylist but still affordable for everyone. The name â€Å"TRESemme† itself is a wordplay that referred to Edna L. Emme as the spokeperson in haircare industry. Some people also said that â€Å"TRESemme† is a wordplay from â€Å"tres aime† which means â€Å"very liked† in French. In 2011, TRESemme is taken over by Unilever for $3. 7 Billion. After it has taken over, TRESemme expand their range of market to Asia and some other country surrounding. They believe that TRESemme can gain success. Unilever see potentiality in their product and could inline with Unilever’s mission to provide customer’s goods with affordable price. Though TRESemme build partnership with prestigious events and competition, they do not give their customer a high price. The partnership built to prove how qualified they are as a haircare product and to prove that customer can get salon quality hair without going there. The partnership has proven to increase their sales and brand awareness. People like TRESemme and they keep buying it due to its affordable price. TRESemme Mission Statement As a product with a professional stylist’s standard, TRESemme’s mission is to provide the best haircare product that can be afforded by anyone. They believe that everyone deserve the best product that fit their economical ability. Upholding their mission, there are 3 (three) missions that brought by TRESemme, Professional, Affordable, Salon Standard. In the first time of their launching, TRESemme’s tagline is â€Å"Used by Professional†. The tagline is intended to convince customer that TRESemme is not just an ordinary haircare product, but a professional product that can be used at home. It has proven that over 60 years of TRESemme’s existence, there are many professional hairstylist has used it in their salon and satisfied their customer Within their mission, TRESemme also included â€Å"affordable† as one of them. As they believe that every women deserve to have a salon inspired hairstyle, TRESemme also consider the economic ability of each countries and set the most suitable price that can be afforded by everyone and still competitive to compete with their competitor. With such quality and price, TRESemme can gain lots of customer and take over the market really soon. The last mission stated by TRESemme is salon standard. As we know that in 1974 TRESemme start their business as a haircare product for salon. The standard that they uphold of course not a usual standard to make people’s hair look more gorgeous, but to make people’s hair more beautiful and look expensive. Until now that they become a customer goods product, TRESemme still uphold the standard to make their product prestigious for everyone. From customer’s point of view, TRESemme is a success. They fulfilled their mission to provide a qualified haircare product that affordable for everyone. Some hair problem like frizz, hairfall and dandruff can also be treated well by the product. With their salon standard, TRESemme has successed to fulfilled customer’s expectation and gain a big success. III. MARKETING STRATEGY Market Environment According to the Foundation of Marketing book from Pearson, Marketing Environment is the actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationship with target customers. In the marketing environment we should analyze and consider the Strenghts, Weaknesses, Opportunities, and Threats (SWOT). Four key components considered in improving the marketing strategy for TRESemme include: PRODUCT TRESemme create a new product which is distinct line of mens haircare, this company also design medium-sized shampoo amp; conditioner bottles to meet the product mix of the competitors, they provide money-back guarantee if the consumer is not satisfied with the product including the Salon Standard tag line in addition to professional. Affordable Salon standard will replace the existing used by professionals and the last that TRESemme used is they allow for products to be purchased on the official TRESemme website salon standard PRICE For the price they maintain competitive prices for consumers (in Indonesia it’s only 16k for 220ml). This is in keeping with the affordable aspect of our brand. Another strategy is TRESemme promote online or instore discounts for consumers who view particular advertisements, and they also provide clearly list prices of products their website PLACE Maintain the availability of the product in salons, pharmacies, department stores amp; supermarkets around the world. TRESemme also provide consumers with a convenient online method of purchasing products to make the customer of TRESemme feel practise, simple, and easy to buy. PROMOTION To promote, the strategy that TRESemme use id first create television commercials that are made in Australia Engage in more frequent celebrity endorsement establish a name for the brand Build relationships with salons in Australia to promote the hair products Include a complementary pump for consumers who buy the large shampoo and conditioner bottles. In Asia they make the promotion by sponsoring the prestige event like Asia Top Model. SWOT ANALYSIS Strengths 1. Professional Products at an affordable price, TREsemme offers high quality but lower in price 2. Used commonly by hair case professional 3. Products are available in large bottle providing value for money 4. Convenient to purchase 5. Large captive target audienceThreaths 1. Other competitors in the market creating more awareness through their advertising 2. Competitors with a greater product mix 3. Constant threat of new competitors 4. Advancement of scientific technology allowing competitors to promote their products as more efffective, or even environmentally friendly| Weaknesses 1. Limited range of products available for men 2. Size of bottles are commented to be intimidatingly large for individual use 3. Breadth and length of TRESemmes product line is not as expansive as other competitors in the market 4. Minimal advertisements online, in magazines, on television and other promotional outlets advertising the brandOpportunities 1. Opportunity to expand the product line and create a men range 2. Sell mid-range sized shampoo and conditioner bottles rather than only 1L and travel sizes 3. Create more awareness of the brand through more advertisements 4. Promote TRESemme through celebrity endorsements| Analyzing Competitors of TRESemme Tresemme is used around the world since 1947, but have recently been present in Indonesia in 2012. For two years establish, the growth of TRESemme has significant increase. It became evident through online research that TRESemme only ever releases television commercials from America. The celebrities and countless other women featured in the commercials are all American. Strategy of TREsemme suggested by Alberto Culver International would be to create television commercials in Indonesia. In anaylsing the Indonesian consumer market, it is evident that the brands who are competing with TRESemme are based in Australia. Subsequently, it would be effective to promote the brand alongside a relatable celebrity. Comparison| TRESemme| L’oreal| Dove| Pantene| Product| Shampoos amp; Conditioners (Gentle, Cleansing, Moisturizing, Naturals, Smoothing, Strength, Volumizing, Waterless, Curls, Color Protection, Deep Cleansing)Hairstyles (Cream amp; Milk, Curls, Hairspray, mousse)| Consumer (skin care, make-up, hair color, hair care), Professional, Luxury Product| Hair care (Shampoo, Conditionare, Treatment Conditionare, Styling Aids)Bar/Body washDeodorantLotion| ShampooConditionareDaily Rinse-off TreatmentLeave-on Treatment| Benefits| Give any tips how to make a beauty hair look like, problem solution of hair, new updated trend hair model, styling tips, forecast beautiful hair in any weather, help women step out with style (community of TREsemme)| make a trend about color id as a their main key, create media center of hair, innovating to reduce the environmental footprint, offer career, have many foundation (the community of L’oreal can join)| Provide article and advice, dove science, social mission, dove offers become a dove insider for their consumer| Providing personal consultaton, Give any tips how to make a beauty hair look and updated trend, offer satisfaction guarantee, have a social events for their consumer and around itself| Price| Start from Rp. 16. 000 for 220ml | Rp 30 000 for 220ml | Rp 24. 000 for 220ml| Rp. 24. 000 for 220ml| IV. CUSTOMER ANALYSIS Unilever customer spending chart Amsterdam Unilever, the worlds second-largest consumer goods company, posted third quarter results that beat analysts estimates, due to higher prices and higher sales in emerging markets, mainly in Brazil, the company reported on Thursday. Unilever, with its strong position in home and personal care, reported that its sales rose 10. 3% to â‚ ¬13. 4 billion in the quarter ended September, compared with the same period last year. As much as 4. 1% of it was created on foreign exchange transactions. The British-Dutch company also reported that its underlying sales grew 5. 9% in the third quarter, while it was up 12. % in emerging markets when compared with the same period a year ago. Revenue in emerging markets delivered another quarter of double-digit growth, taking year-to-date growth to 11. 7%, while developed markets declined in the quarter but are still up 0. 8% year-to-date. Regarding hair cosmetics, TREsemme did well in its traditional markets, made strong headway in Brazil, and has been launched in Indonesia and India. The company also reported that strong growth in laundry reflected volume growth ahead of its markets due to sustained innovation delivery and effective brand communication. Shares of Unilever rose 2. 91% to ? 23. 31 as of 8:41am GMT in London trading. Unilever gain in London is due to purchasing power the high, especially in the home and personal care products. This is due unilever always improve the quality of the product and sell them with a fairly competitive with the famous product. Such as Tresemme, this is hair care product is designed professional, but unilever could sell at affordable prices, so many people are interested in the lower middle class to upper middle class and the purchasing power of these product can be said to soar Indonesian market, because the average Indonesian people already believe that unilever has never issued low-quality product. The Tresemme product can thrive in the Indonesian market. TRESemmes marketing strategy is a success. These days, following the trend many urban female likes to experiencing with their hair styles and the desire of having a salon quality hair treatment product to be use at home every day is increasing. TRESemme is dedicated to creating salon-inspired, and allows the customers to create their own style and experience that salon feeling every day. One of the reasons TRESemmes marketing strategy is working is because of the customers value and money value from their product. They offer a complete line of salon products quality for the customer with an affordable price. Its priced between the entry level bargain brands, such as Unilevers Suave or Albertos own declining VO5, and premium brands Pantene and Fructis. The products that they offer such as shampoo, conditioners, hairspray gels, dry shampoos, mousses, and many more for every type of hair and style such as hair repair for damaged hair, shampoo for colored hair, climate control, etc. Not only providing products for hair treatment, they also have their expertise available online for customers that need help with hair style, and they are also giving tips and advice for instance star hairdressing tips, advice from their stylists, and recommendations. The brand awareness of their product is pretty success. In every advertisement and even in the products they use the line of used by professionals as their tagline or slogan. The professional hair stylish used TRESemmes products in famous fashion shows, photo shoots, and other entertainments shows or events such as Australia’s Next Top Model, Project Runway, and Mercedes Fashion Week in New York that pretty much is the center of fashion world and these deal has big role on the success of TRESemme. In Asia, recently TRESemme were choosen as the product to produce good quality hair for the contestants of fashion reality show, that is Asia’s Next Top Model 2012. Through these kind of shows and professionals using their products the people awareness of the brand is highly increase especially those of them who follow or always watching these kind of fashion reality shows. In Indonesia alone TRESemme just recently got in the country brought by Unilever and they got good responds and feedback from the people. In less than a year they swept other competitors such as Dove. Their products is available in more than 20 countries such as America, Brazil, Spain, Thailand, and Australia, and all give positive enthusiasm. TRESemme blew away the competition in organic sales growth last quarter at 12. 7%, backed by a 20% increase in ad spending. The brand received $56 million in measured media support lin 2010 and $32 million through May of 2011, according to Kantar Media. Mass hair care Brand| Sales| Pantene| $436 million| Garnier Fructis| $221 million| TRESemme| $211 million| Source: SymphonyIRI| TRESemme remained around $10 million behind Garnier in the 52 weeks ended July 11 and had less than half the sales of Pantene. But its been growing faster than either. TRESemme is already the clear leader in hair spray and styling products and was the only of the leading brands to gain share in all four major segments of mass hair care, also including shampoo and conditioner, in the past year in SymphonyIRI data. Market share movement (in percentage points)* 52 weeks ended July Hair spray| Styling| Shampoo| Conditioner| Pantene| -1. 0| -0. 7| +0. 2| +0. 1| Garnier Fructis| +1. 0| -0. 4| -0. 6| -0. 3| TRESemme| +1. 5| +0. 4| +0. 7| +0. 4| Four weeks ended July 11 | Hair spray| Styling| Shampoo| Conditioner| Pantene| -0. 2| +0. 7| +0. 1| +1. 6| Garnier Fructis| +1. 3| +0. 3| -0. 3| -0. 1| TRESemme| +0. 2| Flat| +1. 1| +0. 6| *For daily hair-care categories Shampoo category excludes dandruff shampoo Source: SymphonyIRI| Another story behind the success of TRESemme is because of strategic partnership. TRESemme formed a partnership with ELLE, the number one global fashion magazine. Through the partnership, ELLE and TRESemme, along with CAA Marketing, a division of the leading entertainment and sports agency, will launch Dirty Little Secret a print and digital graphic novel series, which follows the lives of savvy, stylish and single women living in NYC. Through this series people awareness of the brand, again, highly increased. Moreover, the story of the drama is about fashion world, follows new girl in town an aspiring hairstylist and her encounters with some of the most stylish and chic women in the fashion and beauty worlds. The compelling drama also features real life TRESemmes celebrity stylist, Jeanie Syfu. TRESemmes marketing strategy is a success. However, they have weaknesses. They do not have wide range of product line, that is not as expansive in the market as other competitors. The products that are available for men use is also limited. Many people are pleased with the giant size of TRESemme products bottle, but if it is for an individual use purpose the bottle can be intimidating. V. CONCLUSION In summary, Alberto Culver International Corporated has been highly successful in promoting the brand TRESemme. Subsequently its product line has maintained a strong position within the Australian and Indonesia consumer market. Implementation of minor marketing strategical changes suggested from our research will only further provide a successful outlook for professional affordable salon standard. Refrences List http://www. tresemme. com/ http://www. unilever. com/brands-in-action/detail/TRESemm-/292124/ http://www. telegraph. co. uk/finance/newsbysector/retailandconsumer/8028641/Unilever-buys-TRESemme-maker-Alberto-Culver-for-3. 7bn. html http://adage. com/article/news/marketing-tiny-tresemme-rising-top-hair-care-heap/145573/pn. newsblaze. com/story/2010052515400200001. pnw/topstory. html http://www. prnewswire. com/news-releases/tresemme-and-elle-form-strategic-partnership-for-the-innovative-new-series-dirty-little-secret-95315739. html http://www. loreal. com/_en/_ww/index. aspx?