International Marketing Research And Analysis For Head & Shoulders Shampoo

Introduction to International Marketing

International marketing is making products available in the foreign market. It is marketing of products to more than one countries. Products that Crossing domestic boundaries and marketing principles are applied to two or more countries.  In order to fulfill the needs of customer residing in other countries companies enter into another country in different ways (businessjargons, 2018). Marketing at an international level involves selling and buying of products across domestic boundaries and making marketing mix decisions for that country. This could be done by manufacturing goods in home country and marketing through different channels in a foreign market or by manufacturing goods in other countries and marketing them to the third country. Marketing in other countries is quite challenging, due to a different culture, education system, languages, values, ethics and believes and mostly, different government laws and regulations (Craig & Douglas, 2005).

In this report, International marketing research will be discussed in detail. The product chosen for this report is “head & shoulder shampoo.”  This report will consist of the brief of international marketing, and research, its importance, process. Further, Head & Shoulders shampoo international marketing and research will be part of the discussion.  

Reasons for companies to go international are as follows:

• Economies of scale are increasing: reducing cost by large production for a large number of customers
• Increase market share: selling product  internationally will gradually increase market share of the company in the industry
• Profit opportunities: it is an opportunity for the company to increase sales in the foreign market and earn more profits.
• The life cycle of the product: when a product is a maturity or decline stage of life cycle, it is advisable to increase growth through investment in the foreign market.
• Untapped market: to grow either a company needs to go for diversification in the product line or cover the untapped market in order to deliver goods and services to new customers(Dickmann, Doherty, Mills, & Brewster, 2008).

Ways through which a company can enter cross-national boundaries. Some ways are as follows:

• Exports: exports are the simplest way to enter a foreign market. There are two ways to export, direct and indirect exports. Direct export is when company market or sells its goods and services by itself in the foreign market. In indirect exports, the company sells its products through channels that involve trading companies.
• Direct investment: firms establishing their own business facilities abroad or to facilitate the sale, it owns a part of the local company. The objective to go international in this case is increasing the market share of the company.
• Joint ventures: joining hands with companies that are host country based is another way of entering another country. Marketing becomes easy due to the existing relationship of other company with local customers.
• Licensing and franchising: franchising contract occurs when a company gives the franchise to someone in a foreign country but the higher control is in hands of the domestic company, for example, McDonald’s. While Licensing is when a domestic company provides a license to a foreign company and allows them to use patents, trademarks, and the name of the domestic company and allow the sale of products cross-border. Here, the control of the licensee is very low.
• Global web strategy: the internet is one short solution to the problem of consumer awareness in the foreign market. Through electronic media creating brand awareness has become very easy across the globe without physically present at that place (Mühlbacher, Leihs, & Dahringer, 2006).

International marketing research is systematic designing, collecting, recording, analyzing, interpreting, and reporting information needed for a specific marketing decision of company operating internationally (Rialp & Rialp, 2007).

• Research of Industry, market characteristics, and trends: this will include analysis of market share, acquisition analysis, diversification analysis, and export research.
• Buyer behavior research: this will consider buyer purchase behavior; brand awareness, attitudes, and preferences, studying consumer segmentation.
• Product research: in international marketing, the company need to do concept development testing, product testing, competitive products, packaging designing, and test marketing.
• Distribution research: analyzing import & export procedure, distribution channels in the international market, and search for warehouse location.
• Promotion research: studies advertising effectiveness, study related to coupons and deals in that country, local media research, studies related to personal selling.
• Pricing research: projecting demand, study currency, & counter trades, study inflation rates, and negotiation tactics as per foreign country are studied.(Mora, 2015)

• In order to understand consumer behavior and consumer demand and translate that behavior into the company’s marketing strategies. Choices are increasing rapidly for customers due to market research and development of internet communication.
• In case of lack of international research, many companies had failed in marketing their products internationally. Therefore, good international marketing research is necessary.

Head & Shoulders is an American brand. Parent company of Head & Shoulders is “Procter & Gamble”, introduced in year 1961. It produces Anti-dandruff shampoos. By 1982, it was number one brand, it was 20 years brand, and no other brand could match its sales. Procter & Gamble (P&G) is an American based company. Its headquarters are in Ohio, USA. The company’s products include food, personal care products, beverages,  and cleaning products (Dalzell, Dyer, & Olegario, 2004).

Matt Elliott made P&G researchers initiate a new anti-dandruff shampoo that was Head & Shoulders in the year 1950. With many years of research, the latest formula was found, pyrithione zinc in the range of shampoo. With blue-green formula, a shampoo was introduced to the U.S in the year 1961 (headandshoulders, Head & Shoulders , the world leaders in dandruff and calp care, 2018).

• Latin America
• North America
• Asia
• Middle East
• Africa
• Australia
• New Zealand
• Europe

• Products: Head & shoulder is the number one brand in shampoos. It was one of the most popular products listed in P&G. It claims to remove dandruff, and give soft manageable hair after using this product(headandshoulders, All Head & Shoulders Products , 2018).
• Price: products prices were reasonable for all customer segments and within the reach of people. Internal factors affecting prices of this product were the company’s goals and objectives were to maintain market share of the shampoo and for the existence of the product in the competitive market.

External factors affecting the Head & Shoulder’s price were ‘market and demand’. There are many competitors in the market due to which head & Shoulder had faced tough competition. Promotional price strategy according to the season was followed by the company.

• Place: Head & Shoulders Anti-dandruff shampoo is available in country’s leading stores. Head & Shoulder shampoo was distributed in the city by main supplier and some small distributers. It was made available in most of the shops in all countries.
• Promotion: In order to promote Head & Shoulders, P&G uses expensive promotional tools. Some of these tools are through television, internet(online marketing), radio channels, top magazines, printing pamphlets, bill boards, posters, journals, and through sales promotion.

Head & Shoulder’s global branding: P&G has the strongest and largest portfolios of the trusted brands in the world. To increase purchase intent and drive awareness, P&G ran a brand campaign for Head & Shoulders. Benefits of product’s global branding: future adoption worldwide; Economies of scale; maintaining brand image; decrease in marketing costs.

For every product division, market researchers were employed. For advertising and market testing, two formal research teams were responsible.

For product and market development, new ideas were to be generated. Customers were engaged in discussions over different features of the products. This would also increase consumer and researchers personal interaction. Focus-group discussions, in-store interview, in-home visits were some major qualitative research tools. The company used surveys through practical or wed approach in the market (businesswire, 2013).

Why Companies Go International

In order to get feedback from customers, P&G conducted online concepts tests. It helped in introducing new product and improving versions of old products. These online surveys were very helpful to the company, as it saves lots of time and costs for the company.

Internal sources for the company were financial aspects, machinery since the cost of the machine effects decision-making, check of raw materials availability, personnel resources.

External sources include:

• social forces like the population of the countries, their culture, and income
• economic forces, general economic conditions of countries, GDP, interest rate level, inflation rate, the unemployment level
• demographic forces, growth rate, population size, age distribution, and education levels
• technological forces
• regulatory forces, a legal framework by government legislation, patent laws in order to protect firms
• competitive forces, evaluation of the industry in that country, P&G used Michael Porter’s five force of competition.

                                                                                                   (Source: insidemug, 2016)

In Australia, head and shoulders were in the second position when a survey conducted for the purchase of shampoos in the last six months. Alverto and Head and Shoulders are best selling shampoos targeting different segments of consumers. Alberto being more natural product gain advantage and is at number one in Australia (insidefmcg, 2016).

Conclusion 

To conclude this report, international marketing is selling goods and services in one or more countries or even across the globe. International marketing research is an important aspect of international marketing as it is not advisable to enter a foreign market without knowing your target audience. Thus, a detailed research on international customer segment, pricing, products is must before deciding on company strategies for international marketing.

P&G is one of the largest FMCG Company in the world. Head and shoulders are one of the products of P&G. they offer Head &Shoulders for different segments of customers. Providing super quality branded products was their major purpose. Serving products that will improve the lives of the consumers worldwide. They gave decades in market research in all the countries form both the internal and external environment. P&G invests a lot in promotion of head and shoulders so as to create brand awareness. The online market research survey was also held for improving existing products, packaging. Head and shoulder shampoo are available in many countries like New Zealand, America, Europe, North America, the Middle East, and Australia.

References

businessjargons. (2018). International Marketing. Retrieved from businessjargons: https://businessjargons.com/international-marketing.html

businesswire. (2013). Research and Markets: Head & Shoulders: Establishing a mass consumer brand . Retrieved from businesswire: https://www.businesswire.com/news/home/20130308005235/en/Research-Markets-Head-Shoulders-Establishing-mass-consumer

Craig, C., & Douglas, S. (2005). International Marketing Research. Chichester: John wiley & sons.

Dalzell, F., Dyer, D., & Olegario, R. (2004). Rising Tide: Lessons from 165 Years of Brand Building at Procter & Gamble. Harvard Business press, 423.

Dickmann, M., Doherty, N., Mills, T., & Brewster, C. (2008). Why do they go? Individual and corporate perspectives on the factors influencing the decision to accept an international assignment. The International Journal of Human Resource Management, 731-751.

headandshoulders. (2018). All Head & Shoulders Products . Retrieved from headandshoulders: https://www.headandshoulders.com.au/en-au/shop-products

headandshoulders. (2018). Head & Shoulders , the world leaders in dandruff and calp care. Retrieved from Head & Shoulders : https://www.headandshoulders.com.au/en-au/about/about-head-and-shoulders

insidefmcg. (2016). Australia’s best selling shampoo brands. Retrieved from insidefmcg: https://insidefmcg.com.au/2016/11/04/australias-best-selling-shampoo-brands/

Mora, M. (2015, november 18). Types of Market Research and Their Differences. Retrieved from surveygizmo: https://www.surveygizmo.com/resources/blog/market-research-types/

Mühlbacher, H., Leihs, H., & Dahringer, L. (2006). nternational marketing: A global perspective. London: Thomson learning.

Rialp, A., & Rialp, J. (2007). International Marketing Research: Opportunities and Challenges in the 21st Century. Emerald group publishing limited.

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