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Suave

Suave originated as a men's hair product in the 1950s and became highly successful as an affordable shampoo brand, but faced challenges of market saturation and low customer loyalty over time. The document examines Suave's marketing research into consumer purchasing patterns

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0% found this document useful (0 votes)
208 views18 pages

Suave

Suave originated as a men's hair product in the 1950s and became highly successful as an affordable shampoo brand, but faced challenges of market saturation and low customer loyalty over time. The document examines Suave's marketing research into consumer purchasing patterns

Uploaded by

ARPIT GILRA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SUAVE

ABOUT
SUAVE
⊹ Suave was a men’s hairdressing in the 1950 s the first shampoo &
under the name Suave was launched in 1962
⊹ Suave products were used in 16 million homes more than 90 %
shampoos .
⊹ Finesse was launched with a $ 20million in advertising was one of &
the heavily promoted hair care brands in the industry Finesse had a
much higher gross margin due to the price differential generated &
twice the dollar profit per case as compared to suave Hence Suave
had taken a back seat to Finesse .
⊹ Yet suave had the longest line of shampoos in the industry with a
total of 40 SKU s average of 12 in any grocery store New product ’ &
variations were constantly introduced to maintain brand s vitality ’ &
to allow suave users to switch within the suave line . 2
RVIE
W
3
Discuss importance of
understanding consumer
1 behavior in designing
communications programs,
in light of the case
“ The Shampoo Market

⊹ Highly fragmented market.

⊹ Matured Market.

⊹ Low Brand Loyalty.

⊹ Highly Competitive.

5
Understanding the consumer behaviour
⊹ Market Research

“ ⊹ Large Scale Interviews

⊹ Hired Independent Market Research Organization.

⊹ Focus Group Interviews

⊹ Analysis of Psychographic Profiles

⊹ Statistical Analysis (To profile “Suave Users” vs “Trier Rejectors”)

⊹ Understanding the Purchasing Patterns 6


“ Designing Communication
Programs

7
Discuss the importance of
good marketing research in
consumer behavior
2 considering the case
information
“ ⊹ Consumer differentiation

⊹ Demographic & psychographic differentiation.

⊹ Evaluating the size of market.

⊹ Building a picture of consumer behaviour.

⊹ Devising a Marketing Strategy

9
3 Pull vs Push Strategies
“ Push Marketing Strategy
⊹ The brand was commonly sold to retailers at a discount,
approximately 60% of the marketing budget was for trade
promotions.

⊹ To retain the market positions and develop loyalty, companies


had accelerated new-product development, appealing to
specialized consumer needs.

⊹ New-product variations were constantly introduced to maintain


the brand's vitality and to allow Suave customers to switch

11
“ Pull Marketing Strategy
⊹ Tom Kuykendall believed that Suave had reached a plateau and
there was an opportunity to increase all of the awareness and
usage measures.

⊹ Through prime time, it was believed that more current and


potential consumers could be reached, particularly working
women.

⊹ Ellen Vallera suggested that Prime time can be used in the first
half and Print can be used in the second half.

12
Media Mix Decision
4 Criteria & Ways
“ Ellen Vallera’s $7.8 million Plan

⊹ $7.1 million would be allocated between day time & prime


time television & $ 700,000 to the print campaign.

⊹ Out of $7.1 million, approximately 43% was allocated to


prime time & 47% was allocated to day time network & the
remaining to the print campaign.

14
“ Tom Kuykendall’s $10.2 million
plan

⊹ $ 9.5 million was allocated to the prime time network &


nothing during the day time.

⊹ The rest $700,000 approximately was allocated to the print


campaign

15
5 TEAM INTERPRETATION
Accepting Ellen Vallera’s $7.8
“ million plan

⊹ Helps maintain profit margins.

⊹ Increase in expenditure could not be justified.

⊹ Provides a wider reach.

⊹ Only daytime television could provide continuity


throughout the year.

17
“ Recommendation

⊹ Communication

⊹ Product

⊹ Product Development

18

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