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Report On a New Packaging Design

And Marketing Plan For Herbal Essences

Date of Submission: 22 March 2010

Compiled by: Rebecca Craft, Head of Marketing and Advertising at Herbal Essences

For Attention of: Managing Director of Herbal Essences, Mr Smith

1. Summary

1. This report was conducted to revaluate the Herbal Essences range and success in the market today. From questionnaire results it was concluded that there is a need for a redesign of the current Herbal Essences packaging. The Herbal Essences bottle is to be changed to a double ended bottle to allow maximum usage of the contents of either shampoo or conditioner. The bottle shape will be distinctively curved to allow easier grip in the shower or bath. The marketing online will be used to attract a wider target audience of women and a new video advertisement has been produced to promote the packaging’s benefits to the customer and will steer away from the previous focus on the user. The new packaging design will be launched across the entire ranges of Herbal Essences on 25 May 2010 and reviewed six months later on 25 November 2010. This review will access the sales success online and in stores since the launch of the new packaging and advertising. Leading up to the launch date there will be advertising for the new improved packaging design across the internet on social networking websites and supermarket websites where Herbal Essences is sold. Free samples will be given as an incentive to the public on these mediums.

Contents

|Page |Page Number |

|Summary |2 |

|Terms Of Reference |4 |

|Introduction |4 |

|Methodology |4 |

|Findings |5-9 |

|Conclusion |9 |

|Recommendations |10 |

|Appendix |11-14 |

2. Terms of Reference

1. This is an internal report that has been commissioned by the Managing Director of Herbal Essences, Mr Smith.

2. This report is a new packaging idea for the production of Herbal Essences shampoo and conditioner.

3. The aim of this report is to provide the Managing Director with a new marketing plan for the improved packaging of Herbal Essences shampoo and conditioner range. New marketing strategy reports are required to be written quarterly to identify potential development for the company; Herbal Essences.

3. Introduction

1. This report is a company policy requirement to be completed every three months to access Herbal Essences’ products and the need for a new product. P and G are the manufacturers of Herbal Essences and are always expanding with new ideas and companies. Herbal Essence is target at all females. To assess the current needs and desires of females a questionnaire was issued (via the internet and post) to Herbal Essence customers between 1 January and 18 March 2010. The results identified that the current Herbal Essences packaging needs to be redesigned and advertising updated. See Appendix A for questionnaire and results.

4. Methodology

1. Marketing Mix

2. People, Product and Place

3. A questionnaire was conducted to determine what improvements need to be made to meet customer’s needs and wants with the Herbal Essences range. Customers were emailed and posted questionnaires to be completed. Tesco’s, Sainsbury’s and Somerfield stores had questionnaires positioned beside the Herbal Essences range for customers to complete. To ensure feedback was given the chance to win a years supply of Herbal Essences products was the reward to five randomly selected customers. The questionnaire was used to identify how the customers felt about the pricing of Herbal Essences’ products, the communication of the brand and the availability.

4. A SWOT analysis was conducted to identify the potential of a new adapted packaging design within the internal and external marketing environment. See Appendix B for new design.

5. Promotion

6. Internal research was conducted into the success of previous online strategies promoting Herbal Essences. Forums discussing Herbal Essences were viewed to gain an understanding into customer’s thoughts and feelings on an informal level. The website was used as a researching website to determine the number of viewings of Herbal Essences advertisements and the public’s thoughts. Women’s magazine websites were randomly selected and researched to determine how competition from other hair companies are using advertising and the internet.

7. A PESTEL analysis of the new packaging design for Herbal Essences was conducted.

5. Findings

1. After conducting a questionnaire the results showed that the Herbal Essences bottle design needed to be improved. Customers stated that they could not retrieve all of the contents of either the shampoo or the conditioner. The current curvy shape was enhanced as this shape reduced the frequency the bottle was dropped. The packaging the customer desired was a beneficial bottle that offered the ability to be able to retrieve the maximum amount shampoo or conditioner. Researcher designers found this could be achieved with a double ended shampoo or conditioner bottle design. The current pricing of Herbal Essences’ products was described as affordable by the majority of customers and the availability in supermarkets and pharmacies fulfilled people’s routines and lifestyles. It was found that customers felt the products advertisements were too focused on sexual connotations and the attractiveness of the female rather than the product. See Appendix A for questionnaire and summarised results.

2. The SWOT analysis identified the following:

1. Strengths

2. Herbal Essences is a well established hair product company and was launched in the 1970’s. P and G (global manufacturer) of Herbal Essences supply to over 160 countries worldwide which gives the company a significant advantage in the market as they are well established and financially secure.

3. The redesigned packaging is new and innovative and there is a gap in the market for a two ended shampoo or conditioner bottle. This design reinforces the ethos of Herbal Essences to provide the customer with a product and an experience.

4. P and G are dedicated to consumer research and quality is always ensured in the products. P and G have worked with well known brands such as Pampers, Clairol e.t.c

5. Opportunities

6. P and G can use direct marketing strategies to reach a wider female audience worldwide on the internet using emails, podcasts, webcasts and pop up advertisements.

7. P and G’s current products can be used to advertise the new and improved Herbal Essences design. New products can achieve revenue generation quickly by promotion of already established products.

8. Promotion within the developing market of the internet with social networking websites, Twitter, MySpace and Facebook.

9. The design offers the opportunity in the future to broaden the target audience to children and men. The curvy and double ended design can be expanded in the future to create a new line of ranges of Herbal Essences.

10. The use of a viral advertisement for Herbal Essences on YouTube is a strength as YouTube is a popular website to view banned advertisements. This form of online advertising is powerful as it can reach a global audience and promotes word of mouth about the brand.

11. Weaknesses

12. Competition in the market from other hair companies. There is a need to stand out from other hair brands.

13. The pricing is of the product. The cost of the product is always threatened by lower costing hair products such as competitive brands or a supermarket’s own brand of shampoo or conditioner.

14. The Herbal Essences website’s new advertisement relies on loyal customers dedicated to purchasing Herbal Essences and is exclusive to those who do not view the Herbal Essences website.

Threats

15. Price competition with supermarket own brands for shampoo and conditioner.

3. Internal research conducted found Herbal Essences’ previous online strategies have caused controversy amongst the public. Online forums have discussed the negative impact of the sexual content and connotations of the television advertisements () accessed 20 March 2010 and has uploaded Herbal Essences advertisements (the most viewed advertisement has 48,756 views); with comments about the negative sexual euphemisms within the advertisements. This research found that the advertisements online and on television failed to attract a large target audience of women. From the questionnaire results there is a need and gap in the market to target customers on thriving social networks; Twitter, MySpace and Facebook. Pages and groups will be set up on Myspace, Facebook and Twitter to offer subscribers a free sample to each email address. This promotion will sustain interest, create customer loyalty and will inform the viewer about Herbal Essences and the benefits about the new packaging design.

4. Results from the questionnaire suggested that the Herbal Essences website should use an improved video advertisement to promote the new packaging in an innovative and fun way to attract a broader female audience. To create the widest demographic the advertisement features women of all ages and from different cultures.

5. A PEST Analysis was conducted for the new packaging design:

1. Political

2. P and G have established laws in place with the government to regulate the Herbal Essences corporation.

3. P and G comply with the country data protection laws.

4. P and G participate in the Better Business Bureau's (BBB) Accredited Business Program

5. Environmental

6. Green Peace and Friends of the Earth are incorporated within the new packaging design. On these environmental websites Herbal Essences’ new packaging will be advertised with banners and poppers. This form of synergy will promote both companies.

7. The packaging is recyclable. The packaging features icons to promote recycling and saving the environment.

8. The production of the packaging uses raw materials to be environmentally friendly. Fair trade is promoted over the Herbal Essences website in regard to the production process of the new packaging.

9. Social

10. The change of packaging is to attract the widest possible women audience, attracting a large demographic from a teenage woman to an elderly woman which is reflected in the advertising.

11. To accept the different cultures in the United Kingdom the packaging is aimed to accommodate all types of lifestyles. The double ended bottle makes the task easier and improving the overall ‘washing your hair’ experience The emphasis is on our modern day culture of looking after your hair condition regardless of your status in society and the ability of every individual female having a unique beauty regime.

12. The advertisements online (Herbal Essences Website and Social Networking) are used to promote the USP of the packaging - the ease and time efficiency of the design and how it ensures full usage of the product. To meet the social trend of being equal and universal the advertisements will feature women of all ages and cultures.

13. Technological

14. The manufacturers and the cost of production remain the same as the bottle size is not being altered but the shape and creating a two ended bottle. The Herbal Essences’ ranges prices will not be affected ensuring current buyers of the brand remain faithful.

15. Economic

16. The price of the Herbal Essences’ ranges remains the same, so people’s money expenses or allowance on shampoo and conditioner will not be affected.

17. Legal

18. Copyright law of the new design of Herbal Essences packaging has been issued.

6. Conclusion

1. It has been concluded:

• There is a need for Herbal Essences’ products to be redesigned. See Appendix B for new design.

• The new Herbal Essences design will be promoted through the online supermarket websites where it can be purchased (Tesco’s, Sainsbury’s, Somerfield e.t.c) by banners, pop ups and if agreed, a video advertisement. The store and brand loyalty is already secured and the revamped line of Herbal Essences needs to be promoted to the public. See Appendix C for further details.

• Social networking sites will advertise the new packaging design through banners, pop ups and videos on group pages. The new packaging will be offered as samples through these social networking sites.

• YouTube will be used to upload a viral advertisement a fast globally reaching method and this promotion creates word of mouth about the new packaging for Herbal Essences. See Appendix E for advertisement idea.

7. Recommendations

It is recommended that:

Immediate action to be taken

1. Online promotional pages are created on social networking sites; Twitter Facebook and MySpace, to gain publicity about the new packaging design before 30 March 2010. To ensure the pages remain active free samples are given to each email address registered. See Appendix C for advertisement ideas.

2. A new advertisement video has been created and should be uploaded to the Herbal Essences website to inform the users about the new design and the content will appeal to all ages of women. The benefits of a two ended shampoo/conditioner will be the main focus of the advertisement. See Appendix D for advertisement details.

3. The viral advertisement (See Appendix E) is uploaded on YouTube before 30 March 2010 to gain publicity quickly about the new Herbal Essences packaging.

4. The new packaging design is used for all Herbal Essences’ ranges and is to be launched 25 May 2010.

Action to be monitored

5. The packaging design will be on a six month probation period to be able to monitor the sales. Launched on 25 May 2010 and reviewed on 25 November 2010.

6. After six months the sales of the new product will be compared to the previous six months before the packaging had been changed. If sales have decreased the new packaging idea will be reconsidered.

8. Appendices

A- Questionnaire and results

How old are you?

16-20

21-28

29-40

41+

Do you find Herbal Essences Prices reasonable?

Yes

No

What do you think about the advertisements for Herbal Essences on...

- Television........................................................................................................... ................................................................................................................ ........................................................................................................................................

- Radio ........................................................................................................... ................................................................................................................ ........................................................................................................................................

- Internet (including advertisements, pop ups, banners .e.t.c) ........................................................................................................... ................................................................................................................ ........................................................................................................................................

Tick the most important improvement that could be made to the Herbal Essences products/range?

Price □

Shape □

Size □

Quantity □

Results

After gathering and recording all of the data we had an even amount of females from each age band. The results showed females felt that the television advertisements were strongly focused on connotations of physical beauty and sex and a new packaging design was needed to improve the Herbal Essences range. The shape and size of the Herbal Essencess products need to be changed.

B- Visuals of the product

This is a rough template of the image of the new Herbal Essencess packaging. The design is curved in shape and double ended so the user can choose which end to retrieve their shampoo/bottle. The colours will remain the same for the range colours that are current (for example purple- curly hair).

DOUBLE ENDED BOTTLE

HERBAL

ESSENCESS

LOGO

CURVY DESIGN

C- Advertisements Online for Social Networking Websites (MySpace and Facebook)

The banner of a new packaging design for Herbal Essences will be featured on the following supermarket websites:

D- Herbal Essences Website Advertisement

The advertisement will feature different types of women; age, race, size and overall appearance and they will be explaining the benefits of the new packaging design. It will make the product appeal to a universal audience of women and will be a new area of marketing for Herbal Essences.

E- Viral Advertisement for Herbal Essences

The advertisement will be in the location of a bathroom with a woman and a man showering. The scene of the couple showering will be masked with the steam of the hot shower. The audience will hear banging and the phrase, “I can’t get it out”. This phrase has connotations of sex and is an embarrassing scene. The sex connotations are a familiar theme associated with Herbal Essences. The last shot will be the resolution of the scene displaying the double ended, curvy shampoo/conditioner bottle. This will be uploaded onto YouTube to gain maximum views and this will promote the new product due to the explicit advertisement.

References

[accessed 10 March 2010]

accessed 10 March 2010]

accessed 13March 2010]

accessed 15 March 2010]

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