Head &Shoulder is one of the reputed products that is produced and distributed by the P&G, which is one of the largest household and personal care companies in the world. It was first introduced to the U.S. market in November 1961 as a blue-green shampoo formula, and currently, the brand generates revenue over one billion dollars. The extensive research of Procter and Gamble on making anti-dandruff shampoo for more than a decade eventually stumbled on Head & Shoulder. Procter and Gamble, the largest household and personal care Company in the world by revenue, is the owner of this opulent brand and is solely responsible for the production, marketing, and distribution of the products. In recent days, Head & Shoulder has been widely available in United States, Brazil, China, Japan, European counties, and the Indian subcontinent. P&G has maintained a strong binding between the manager, marketer, and financer. P&G, one of the largest listed companies of household and personal care, has been currently managed by a number of BODs, headed by the Chairman as well as CEO A.G. Lafley.
Head & Shoulder has been one of the popular household brands among Nepalese people. The growing Nepalese economy and blooming business activities have proliferated import, marketing and distribution of this product. Now, it’s quite hard to find the person who has never acknowledged this brand before. In Nepal, Head & Shoulder was first imported, marketed and distributed by United Distributors Nepal in 2001. The product got positive reviews from customers in the local market. Despite the high price of the product, most people were captivated towards the product because of its admirable quality. Head & Shoulder has become a popular household product in Nepal. The popularity of head & shoulder in Nepal is persistently growing, leaving no any cosmetic shops, departmental stores, and supermarkets devoid of it. Nowadays, the increasingly growing demand for the product has made it compulsory to increase the number of distributors. Amazon Pvt. Ltd, and Nepal Cosmetics Product Pvt. Ltd is some emerging distributors of this products. However, United Distributors Nepal acts as a main marketer and distributors of Head & Shoulder.
Head & Shoulder is the popular brand of Procter & Gamble. Unlike Coca-Cola company, the giant company exercises flat structure in the divisional offices, however, in the global organizational structure, it is continuously practising matrix structure. The use of telepresence, one of the techniques of video conferencing, has made matrix structure to flourish within larger Procter and Gamble making it the most collaborative management company in the world. There is no any division office of P&G within the political boundary of Nepal. Consequently, there is no any manufacturing plant of P&G products in Nepal, thus Head & Shoulder is the imported product and is generally imported from Malaysia, and some Gulf countries. The product features high price in the local market because of import tax, excise duty, insurance, ordering cost and so on incurred while importing it. P&G is vigilant towards the brand image, publicity, and advertisement. P&G instantly curbs any incongruous advertisement that has a detrimental impact on its brand value. P&G previously focused on the established market, but due to intense competition by Unilever Company, it has decided to enter to emerging markets such as India. Therefore, the company had provided scheme and discount on its products including Head & Shoulder in Nepal too. In Nepal, the marketers and distributors of P&G products are focusing on aggressive selling to clear up the market. They have introduced a discount policy on the bulk purchase of P&G products, exceeding the invoice amount of five thousand rupees per order.
The intensive insight on key corporate assets has made P&G, one of the splendid companies. The strategic planning is changed over time, but some of the content of the plans and policies remain unaltered. The targeted topic of strategic planning traces the following agenda: emphasis on key corporate assets such as core competencies, human resource, and finance; strong, dependable, high-quality product; regular contemplation on the expansion of R&D activities; and brand differentiation. However, there is a contrast between P&G and P&G product distributors in Nepal. The company focuses on holistic marketing and invested the hefty amount in strengthening marketing activities, but in contrary, the Nepali distributors basically focus on selling the concept, being primary agenda to merely sell the product. Some of the strategic goals of the companies engaged in importing, marketing and distributing the product includes the following objectives: to act as the hub between P&G company and the Nepalese local market, to make P&G product easily available elsewhere in the market, to adopt acute customer response system and maintain better supply chain management system, to identify market opportunities and distribute product through proper market segmentation, and to continuously improve customer services.
Head & Shoulder, the branded product of P&G, is the renowned household brand. Many Nepalese people who give emphasis on product quality generally prefer P&G products, nevertheless, products of L`Oreal and Unilever are also equally qualitative and competitive in the global and Nepalese market. The rivalry between Unilever and P&G is the biggest rivalry in the realm of household and personal care products. However, P&G has been continuously gaining over Unilever because of the maintenance of strengths, minimization of weaknesses, proper anticipation and addressing of opportunities and threats.
· An established company with very high brand value
· Indubitable trust of customers; increasingly growing numbers of brand loyal
· Very advance Research & Development Plant; nearly 13% of net income invested in R&D
· Superior product with outstanding quality.
· Intensive focus on health and hygiene
· Fake products sold under the name of their brands
· Its products have stiff competition from big domestic players and international brands
· Less experienced marketing personnel
· Relatively poor supply chain management within the Nepali distributors.
· Relatively less focus on publicity (egoism that product sells automatically)
· Growing concern of Nepalese people towards quality
· Growing demand for shampoos and conditioners in the market
· Increasing Nepalese business sector; establishment of supermarkets and mini-marts
· Influence of opulent Indian advertisement of product on Nepalese people
· Intense rivalry with Unilever
· Rapid capturing of emerging market by competitive firms
· Demand might lessen due to high price in Nepalese local market (due to less purchasing power of Nepalese)
· Rapid publicity of Ayurvedic Products, and increasing numbers of customer shifting towards Ayurvedic shampoos.
Head & Shoulder has been a popular culture in many countries. The brand is known for removing dandruff through its anti-dandruff solutions. P&G has been involved in awareness programs regarding health, sanitation, and personal care for the benefit of society. Technologically advanced techniques adopted by P&G ensued superior product such as Head & Shoulder. The techno-friendliness of P&G has made it ‘the aspiring company’ and the company of worth. Though the brand has a high reputation and customer loyalty, P&G has been charged for fixing the price by the European Commission and Head & Shoulder and other P&G products were demotivated for charging high charges and fixing prices of the product. However, P&G has not been noticed engaged in violating the business law in Nepal, and in other South Asian counties. The company has not encountered any sort of scandal in SAARC countries, however, the rivalry is fierce and intense.