Case Pantene

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IMB 419
SEEMA GUPTA
NIELSEN: MARKET RESEARCH FOR PANTENE
Garnier was launched in the United States in 2003 and within a year it gained 5.1% market share. During the same
period, the share of Pantene, the market leader declined from 22.5% to 20% (Exhibit 1). This was a steep fall which
worried Procter & Gamble (P&G), the owner of Pantene brand. P&G wondered what caused the decline lack of
distribution intensity or heavy promotions by competitors or unfavorable consumer perception. P&G hired Nielsen
to conduct market research to identify the cause of decline and suggest a marketing strategy.
NIELSEN
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Nielsen, headquartered in the United States and Diemen, the Netherlands was the market leader of the $31 billion
global market research (MR) industry in 2010. Nielsen provided solutions to clients marketing problems with its
single-minded focus on consumers. While certain research needs were common across businesses, others were
idiosyncratic depending upon the strategic goals of the business. For common research needs, Nielsen offered a suite
of internationally recognized proprietary products providing powerful normative data. Termed as Syndicated
Research, it was Nielsen who decided the population, questions to be asked, and intervals between studies. The
research results were often purchased by multiple clients, who then shared results and costs. For specific needs,
Nielsen tailored research solutions. Termed as customized research, only that client had access to the results of the
research. Often a combination of both syndicated and customized research was necessary.
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Nielsen was founded in 1923 by Arthur Charles Nielsen for conducting quality tests and offering consulting for
industrial products. In 1933, it commenced measurement of consumer sales in retail stores. It went beyond
conventional consumer questionnaires and instructed auditors to actually survey store shelves and accounting books
to determine sales patterns. It thus pioneered the concept of PDUNHW VKDUH The 1940s witnessed the growth of
radio and in 1942 Nielsen began measurement of radio listenership across the United States. In the 1950s, television
became widespread and Nielsen started rating the programs by measuring viewership with the help of installed
meters. The media rating services were managed under a separate division 1LHOVHQ0HGLD5HVHDUFK In 1977,
Nielsen introduced scanning of universal product codes at retail stores, thus collecting accurate and instantaneous
data on consumer purchases as they occurred. The scanning service named 6FDQ 7UDFN also served as a
foundation on which diagnostic and analytical applications could be performed.
No
Nielsen emerged as the market leader, which drew the attention of The Dun & Bradstreet Corporation which
acquired Nielsen in 1984. Nielsen entered into an alliance with The NPD Group (National Purchase Diary) to
establish household panel services, which measured the marketing stimuli received by member households (such as
advertisements and promotions), and their response to them in the form of purchases; thus providing single source
UHVHDUFK 7KH 'XQ %UDGVWUHHWV DFTXLVLWLRQ RI ,QIRrmation Resources Inc. (IRI) in 1987 gave it ownership of
%HKDYLRU6FDQ ,5,V IODJVKLS SURGXFW IRU DQDO\]LQJ WKH HIIHFWLYHQHVV RI 79 FRPPHUFLDOV ,Q , Dun &
Bradstreet acquired /RJLVWLFV 'DWD 6\VWHPV whose flagship product 6SDFHPDQ helped retailers profitably
manage shelf space and display. These acquisitions enabled Nielsen to offer a bouquet of services and increase its
revenues from new product development instead of engaging in competitive battles.
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Over the years, competition intensified in the market research industry. In 1997, A. C. Nielsen merged with
Entertainment Data Inc. to provide box office returns to the motion picture industry. In 1998 it acquired 7KH
%$6(6 *URXS a leading provider of simulated test marketing services for new product launch. To measure the
ever-increasing audiences on the internet, in 1999, the company entered into an alliance with NetRatings to form
Nieslen eRatings. The continued growth of A. C. Nielsen sparked the interest of Dutch company VNU, which
acquired it in 2000. In 2006, VNU was acquired by a group of six private equity firms. The company was renamed
Seema Gupta, Assistant Professor of Marketing prepared this case for class discussion. This case is not intended to serve as an endorsement,
source of primary data, or to show effective or inefficient handling of decision or business processes.
Copyright 2013 by the Indian Institute of Management Bangalore. No part of the publication may be reproduced or transmitted in any form or
by any means electronic, mechanical, photocopying, recording, or otherwise (including internet) without the permission of Indian Institute of
Management Bangalore.
This document is authorized for educator review use only by Fahim Syed Muhammad, HE OTHER until February 2016. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860
Nielsen: Market Research for Pantene
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MARKET RESEARCH INDUSTRY
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as The Nielsen Company. In 2011, Nielsen went public and was listed on the New York Stock Exchange under the
name of Nielsen Holdings.
The top five companies accounted for 49% of the global market research industry in 2010. Nielsen was the market
leader with 16% market share, followed by Kantar (12%), IMS Health (7%), GfK (6%) and Ipsos (5%) (see
Exhibit 2 for key financials of top companies). 1 As clients expanded their businesses across the globe, market
research companies followed them. The need for a global footprint led to rampant mergers and acquisitions leading
to the consolidation of the industry. The top five markets the United States, the United Kingdom, Germany,
France, and Japan accounted for two-thirds of the total market turnover (see Exhibit 3 for country-wise MR spends).
However, emerging markets were growing faster than developed markets.
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Although, quantitative research accounted for 76% of the global research spend, qualitative research accounted for
17%. Online and telephone methods accounted for the largest spends by research method. Worldwide, research was
moving away from face to face to other methods such as telephone and online. The major industries for market
research were FMCG, Health care, Financial services, Automotive, and Durables. The industry attempted to reduce
its costs by outsourcing the non-core functions. Clients increasingly demanded actionable insights and were not
content with data. They expected research companies to provide modeling and prediction, which were earlier
considered the domain of consulting companies. Piyush Mathur, President, Nielsen India Region said:
The dominant business model is low-cost high-volume. We are disciplined in the cost of our
operations, but we need to move up in the value chain. We can do this only when we stop looking
at research from the rear view mirror and instead predict future trends for our clients.
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MR companies increasingly hired senior leaders from client side or consulting companies or technology domain.
The industry saw the emergence of new players in fields such as analytics and data mining. Many IT companies
were expanding their research divisions for providing inputs to their strategic group. Consulting firms such as Price
Waterhouse Coopers, KPMG, and Ernst &Young had started providing end-to-end solutions to their clients.
Although traditional MR firms enjoyed strong relationship with clients, particularly in FMCG and consumer
durables, these new genre of companies were giving them competition.
Indian MR Industry was Rs. 8.9 billion in 2009 (1 $ = Rs. 55.6, in May 2013). Similar to the global trends,
quantitative research accounted for the bulk of research spends. Manufacturing sector accounted for the majority of
the research revenues followed by services sector. The emergence of new sectors such as telecom, digital media, and
insurance gave fillip to the MR industry. Attracting and retaining talent was a business challenge and many
companies set up their own training centers to upgrade the skills of employees.
No
Nielsen dominated the Indian market as well. It started its operations in India in 1995. Other major players were
Hansa Research, Indian Market Research Bureau (IMRB), iMrs, and Ipos. Multinational companies acquired Indian
research companies leading to globalization of the Indian MR industry. For instance, Nielsen acquired ORGMARG, Kantar acquired IMRB and TNS acquired MODE. 2 ORG was founded in 1961 and was the pioneer of retail
audit and readership surveys in India. Upon acquisition, ORG-MARG was renamed as AC Nielsen ORG-MARG
and subsequently Nielsen.
NIELSEN SOLUTIONS
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Worldwide, Nielsen specialized in consumer products and services. Its key offers included UHWDLO PHDVXUHPHQW
VHUYLFH (RMS), PHGLDPHDVXUHPHQWVHUYLFH (MMS), FRQVXPHUSDQHOVHUYLFH, and FXVWRPL]HGUHVHDUFK
Retail and media measurement were two of its core businesses. It was the global leader in both of them. RMS
solution 6FDQ7UDFN provided clients detailed information on sales, market shares, distribution, pricing,
1
Source: Global Market Research 2010, ESOMAR Industry Report Note: Based on KPMG analysis
,05%ZDVSURPRWHGE\+7$WKHFRXQWU\VODUJHVWDGYHUWLVLQJDJHQF\,05%ZDVODWHUDFTXLUHGE\.DQWDUZKLFKEHORQJHGWRWKH:PP group.
Marketing Operations Design and Enquiry Service (MODE) had been a major research agency in India when it was acquired by Taylor Nelson
Sofres (TNS), one of the one of the top five MR groups worldwide. Its key offerings were brand equity research and advertising evaluation.
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merchandising, and promotions for various product categories across all retail formats supermarkets,
hypermarkets, mass merchandisers, convenience stores, small independent stores, drug stores, and liquor stores.
Nielsen was the sole provider of RMS in India. A team of its dedicated auditors visited 16,000 stores every month
with hand-held scanners to collect information about price and promotion across 78 product categories. Sales
volume was derived by deducting closing stock from the opening stock of each retailer. Auditors also observed
compliance by retailers of agreement with manufacturers regarding brand display, inventory, etc. Nielsen sold
annual subscriptions of the entire category for $4,000$20,000 depending on the category. To attain greater
accuracy in extrapolation, Nielsen planned to increase the sample size to 48,000 stores by 2013. Justin Sargent,
Managing Director Consumer, Nielsen India Region said:
From RMS, we get data on sales, distribution, promotions, market share, etc. Analytics sits on top
of it. It builds models to answer questions about managing the marketing mix should the client
spend money on advertising or expand distribution or alter pricing?
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1LHOVHQV006PHDVXUHGQDWLRQDO79YLHZHUVKLSE\LQVWDOOLQJSHRSOHPHWHUVLQULJRURXVO\ selected representative

sample households. In real time, Nielsen captured electronically which channels, programs, and commercials were
being watched and by whom and when. Nielsen was the only company worldwide which could research both what
consumers EX\ as well as what they ZDWFK In India, MMS were provided by 7HOHYLVLRQ $XGLHQFH
0HDVXUHPHQW (TAM), which was a joint venture with IMRB (Exhibit 4).
Consumer panel research +RPHVFDQ tracked the purchasing behavior of over 125,000 statistically representative
households in 24 countries through the use of in-home scanners. It revealed consumer purchases from all outlets
they visited. The purchase information was linked with demographic characteristics, media consumption, and
purchasing history of the household. It gave insights regarding penetration, buying rates, loyalty, purchase
frequency, demographics, inter-purchase intervals, repeat buying, and brand switching for the product categories.
Sargent said:
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In India, we do not have consumer panel research as competition has it. In syndicated services like
these, there is no room for multiple services to coexist. Clients will not buy two reports. There can
only be one currency!
Customized research offered some of the most creative and cutting-edge products which integrated well with
1LHOVHQV V\QGLFDWHG VHUYLFHV ,W RIIHUHG FOLHQWV VROXWLRQV LQ PDUNHWLQJ VWUDWHJ\ FRPPXQLFDWLRQ HIIHFWLYHQHVV
consumer attitudes, customer satisfaction, and brand equity. Rajiv Bagayatkar, Director Customized Research,
Nielsen India explained the research process:
No
After the client servicing team gets the project it designs the research including the questionnaire
which is then handed over to the data collection team. The filled questionnaires then go to data
processing team for analysis. It then comes back to the client servicing team that converts analysis
into insights for the client.
Sapna Shetty, Executive Director Global Business Services said:

Credibility is the key in our business. We have enough processes and systems in place to do the
back check of the data that is collected. We also standardize research across markets so that clients
get the same look and feel.
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Another key driver of business was cycle time. In 2008 Nielsen introduced Business Process Improvement (BPI) to
reduce cycle time. Rajshree Dave, Director BPI said:
It is an ongoing exercise to identify areas of improvement in our business processes. For instance,
we removed the need for manual entry of data by launching Computer-Aided Personal Interview
(CAPI) that recorded interviews directly on computer thus reducing cycle time.
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To reduce multiple touch points for the clients, Nielsen introduced &OLHQW %XVLQHVV 3DUWQHUV Vijay Udasi,
Executive Director, Client Business Partner said:
For our key clients, we have appointed senior people as &OLHQW %XVLQHVV 3DUWQHUV who work
with clients, identify their business problems and offer integrated solutions. This is a departure
from selling singular products to solving problems holistically.
CUSTOMIZED RESEARCH FOR PANTENE
The fall in market share of Pantene required a holistic approach. Nielsen decided to apply one of its comprehensive
solutions :LQQLQJ %UDQGV which analyzed the brand from multiple perspectives category issues; brand
challenges equity, loyalty, personality; marketing mix price, promotion, distribution; and consumer behavior
(Figure 1). Further, Nielsen combined :LQQLQJ EUDQGV with its syndicated research 5HWDLO 0HDVXUHPHQW
and &RQVXPHU3DQHO to recommend integrated marketing strategy for stemming the decline in market share.
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Figure 1
Source: Nielsen
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Winning Brands
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Nielsen started off by analyzing the shampoo category. The category had market penetration of 98% and was
growing at the rate of 2.8% annually. Nielsen analyzed the category on two dimensions involvement and
experimentation (Figure 2). It found that consumers were highly involved with shampoos and purchased multiple
brands experimentally.
Involvement
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Figure 2
Category Typology
Traction
Super Slippery
Shampoo
Super
Traction
Slippery
Experimentation
Source: Winning Brands
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Nielsen then measured equity of different shampoo brands using its proprietary Brand Equity (BE) model
(Figure 3). The BE model formed the core of :LQQLQJ %UDQGV and was developed by Nielsen in 1997 with
Professor Kevin Keller of Tuck School of Business. According to the model, DZDUHQHVV SXUFKDVH
FRQVLGHUDWLRQ, and DVVRFLDWLRQV were the drivers of brand equity, which determined the extent to which
consumers SUHIHU UHFRPPHQG, and pay SULFH SUHPLXP for the brand. The BE score ranged from 010,
wherein 0 indicated that the brand was a commodity and 10 implied that the brand could charge any price premium
and still retain customers.
Figure 3
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Brand Equity Model
Figure 4
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Nielsen identified the relative importance of drivers of equity in the shampoo category and compared them with its
normative data base for FMCG (Figures 4 & 5). It found that DVVRFLDWLRQV was the most important driver
followed by DZDUHQHVV
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Drivers of equity in the Shampoo category compared with FMCG
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$VVRFLDWLRQV in shampoos could be divided into four categories health/shiny, premium quality, emotive and
family. Out of these, health/shiny was the most important followed by premium quality and emotive appeal.
Figure 5
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Associations as drivers of equity in the Shampoo category
Brand-wise analysis of associations revealed that Pantene was rated very high on VRIWDQGVLON\ and TXDOLW\
whereas Garnier was rated high on PDNHV RQH IHHO DWWUDFWLYH and Palmolive as VXLWDEOH IRU ZKROH IDPLO\
(Figure 6).
Figure 6
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Brand-wise brand associations
Imp
Pantene
VO5
Sunsilk
Clairol
Garnier
Palmolive
Wella
H&S
Healthy/Shiny/Fragrance
0.48
13
0.48
12
0.45
14
Makes hair shiny
0.41
12
Range of hair
0.41
12
10
0.41
Soft/Silky/
Fragrance
No
Makes hair soft

and smooth
Gives hair body

and vitality
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care products
Cleans gently
Cares for colored

hair
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Figure 6 (Contd.)
Leaves hair
0.37
0.31
smelling lovely
Has attractive
packaging
Premium Quality
Technologically
0.35
10
0.30
0.26
advanced
Is a salon quality
Specialist hair
care brand
21
10
10
16
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brand
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Emotive (Attractive)
Makes you feel
0.35
0.35
0.20
-2
pampered
Makes you feel
attractive
Uses natural
ingredients
10
22
For family
family
0.15
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Is for the whole
No
,PS was the importance of the parameter for brand equity. It was the correlation of the parameter with Brand
Equity Index. Higher correlation meant higher importance of the parameter. Consumers were asked about each
brand, the extent to which they agreed on the parameter on a scale of 5. Positive score indicated differentiation
opportunities for the brand. Negative scores were not used for interpretation.
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Nielsen then calculated equity of different brands and found that Pantene had the highest equity (3.5) followed by
Sunsilk (1.9) and Garnier (1.4). Its FMCG normative database showed that Pantene was among the top 15%
shampoo brands and had VWURQJ equity, Sunsilk and Garnier were among the 1649% brands and had
PRGHUDWH equity and the rest had ZHDN equity (Figure 7).
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Figure 7
Brand equity
4
3.5
3.5
Brand Equity Index
3
2.5
1.9
1.4
1.5
Wella
VO5
0.5
0
Pantene
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Sunsilk
Garnier
0.8
0.8
Palmolive
Clairol
Head &
Shoulders
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0.9
Nielsen also calculated brand equity according to age and rate of adoption and found that Pantene had higher equity
among higher age groups and mainstream people (Tables 1 & 2).
Table 1
Brand equity by age
Target Group by Age
Brand
21-30
31-40
40 +
Pantene
2.7
3.4
3.7
3.5
Garnier
2.1
1.8
1.3
1.2
Sunsilk
2.3
2.0
1.9
1.8
0.5
0.9
0.8
0.8
0.5
0.6
0.9
1.2
Head & Shoulders
1.3
1.0
0.6
0.6
VO5
1.0
0.9
1.2
0.8
0.9
0.7
1.0
1.1
Clairol
Wella
No
Palmolive
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18-20
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Table 2
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Brand equity by rate of adoption

Brand
Trend Setters
3.40
Garnier
1.80
Sunsilk
1.95
Clairol
0.95
Wella
1.00
Head and Shoulders
1.00
VO5
1.00
Palmolive
0.90
Stragglers
3.60
3.15
1.70
0.80
2.00
1.85
0.85
0.65
1.00
0.90
0.80
0.85
0.95
0.90
0.85
1.30
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Pantene
Mainstream
The normative database of Nielsen showed linear relationship between brand equity and market share. Nielsen
IRXQGWKDW3DQWHQHVEUDQGHTXLW\ZDVLQSURSRUWLRQWRLWVPDUNHWVKDUHFigure 8).
Figure 8
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No
Brand Equity
Relationship between brand equity and market share
Market Share
Source: Scan track & Winning Brands
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Nielsen believed that not only behavioral loyalty but emotional loyalty was also important. Consumers may be using
the brand but the usage may be transient triggered by promotion, etc. Emotional affinity on the other hand was more
enduring and was manifested when consumer recommended the brand. Nielsen found that Pantene had strong
emotive loyalty (Figure 9).
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Figure 9
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Brand relationship hierarchy
Each stage was calculated as percent of total respondents. Nielsen does not calculate trialists
from only among considerers or considerers from only among those aware of the brand.
Nielsen wanted to identify the brands that Pantene was likely to face threat from. It identified brands having strong
affinity to each other in the consumers mind. It found that consumers who rated Pantene highly also rated Garnier
and Dove high (Table 3).
Table 3
Cross brand affinity
Pantene
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Pantene
Sunsilk
Garnier
VO5
Palmolive
98
113
100
87
142
104
143
154
94
Garnier
127
73
V05
52
168
37
Palmolive
26
117
45
99
Clairol
74
106
261
72
118
Dove
184
106
81
45
147
Wella
53
121
47
51
168
No
Sunsilk
167
Do
a Is an index number base is 100. To be read by column. To be read as among those

who have high equity for Pantene what was the relative endorsement for other brands.
Indices of 120 and above generally indicate above-average skews and 80 and below
indicate below-average skews.
Nielsen then identified how consumers perceived brands on various personality dimensions by drawing a perceptual
map (Figure 10; see Appendix A for details on perceptual map).
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Figure 10
Brand personality
Family-oriented
Palmolive
Garnier
Friendly
Traditional
Fun
Sunsilk
Down to earth
Genuine Caring
Confident
Elegant
Shy
Wella
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Mature
Pantene
Young
Feminine
Fashionable
ModernTrend setter
Attractive
V05
Knowledgeable
Professional
Clairol
Head & Shoulders
It also drew a perceptual map for packaging of different brands (see Figure 11 for packaging and Figure 12 for
perceptual map).
Figure 11
No
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Packaging of various brands
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Figure 12
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Perceptual map of packaging

Pantene
Opaque bottle
Pack can stand on its lid

Modern pack
Attractive shape
Garnier
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Lid does not break off Durable pack

Head & Shoulders
Easy to hold/use in shower
Pastel colors on pack label
Easy to open
Sunsilk
V05
Bright colors on pack label
Old fashioned pack
Wella
Palmolive
27.5%
Clear bottle
49.5%
Clairol
No
Table 4
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Nielsen believed that consumers were faced with choice overload and did not spend much time on making everyday
product decisions. Instead, they used simple rules of thumb that Nielsen called 2PHJD UXOHV to make choices.
Once the rules were formed, they switched over to habitual auto-pilot shopping mode. Occasionally, the auto-pilot
mode got disrupted and consumers reevaluated their rules. They were called 'HOWD0RPHQWV By understanding
how they occurred in a category, a brand could activate change by triggering Delta Moments. 3 These delta moments
could be in-store or pre-store. Nielsen found that switching over in the shampoo category was largely triggered by
browsing through several packs, promotion, and new brand variants and advertising (Table 4).
Switch triggers
Omegas (A)
Deltas (B)
Switch Triggers (BA)
IN-STORE
10
30
20
Checked prices
20
34
14
Choose from special display
10
Browsed through several packs
32
26
Read several packs
22
18
Attractive packaging
New brand/Variant
20
20
Out of stock. Bought another
Do
Promotion
For instance, to open a bank account, the Omega rule could be that the bank should be close to home or it should be a salary account. Delta
moment could be a competing bank offering higher interest rates on savings.
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Table 4 (Contd.)
Bought one at random
PRE-STORE
Auto pilot same one
100
Advertising
External regulator friend
External regulator family
15
External regulator daughter
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15
14
15
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a To be read as 10% of auto-pilot consumers checked promotion, whereas 30% of experimenters checked
promotion. Consumers could tick multiple triggers.
Nielsen then researched if the W\SH RI KDLU and FRQGLWLRQ RI KDLU had any correlation with the tendency to
experiment and found that greater percent of Delta consumers had colored, frizzy, and thick hair. Similarly, greater
percent of Delta consumers had mediocre and poor condition hair (Figures 13 & 14).
Figure 13
Shopping modality hair type
Frizzy
Fine
Thick
Wavy
Lifeless/flat
No
Curly
Permed/Straightened
Thinning
Straight
39
46
34
36
60
39
39
16
14
13
11
Dry
Coarse
20
33
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Colored
13
Deltas
Omegas
6
4
3
2
5
6
40
42
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a To be read as 13% of the Omegas had frizzy hair, and 33% had fine hair. Hair types were not
mutually exclusive.
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Figure 14
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Shopping modality hair condition
56
Healthy/Good Condition
66
39
Mediocre condition
31
5
Poor Condition
3
10
20
30
40
50
60
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Deltas
70
Omegas
To be read as 66% of the Omegas had hair in healthy condition, 31% in

mediocre condition, and 3% in poor condition.
Nielsen then
(Table 5).
investigated
Table 5
the
Omega
and
Delta
profile
of
customers
of
different
brands
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Brand-wise shopping modality
Pantene
Sunsilk
Garnier
V05
Palmolive
Omegas :
121
98
92
80
99
Deltas '
90
101
104
110
101
No
Source: Winning Brands. It is an indexed score which is the average for shampoo categories
across all brands.
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Nielsen then looked at the triggers that activated the purchase of Pantene (Table 6).
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Table 6
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Purchase triggers for brands

Pantene
Sunsilk
IN-STORE
14
17
Checked Prices
21
30
Choose from special display
Browsed through several
21
24
Read several packs
15
13
Attractive packaging
New brand/variant
Out of stock, bought another
Bought one at random
PRE-STORE
Auto pilot - same one
Advertising
External regulator-- friend
External regulator
- --family
External regulator
- -daughter
VO5
16
33
26
31
44
44
25
17
21
20
12
15
11
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Promotion
Garnier
Palmolive
14
11
64
47
32
38
37
18
12
18
11
27
21
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a To be read as 14% of those who bought Pantene were triggered by promotion.

Q: Here are some things that people do when choosing shampoos (17 statements were given): I bought a
brand on a special promotion; I read the labels; I was in rush so I grabbed one at random; I decide to try one
that had attractive packaging. The last time you bought Pantene, which of these things do you recall
happening? Pick as many or as few as you recall.
No
Do
Nielsen then studied the appropriateness of the pricing strategy of Pantene. It mapped the actual retail price against
the consumer willingness to pay (Figure 15).
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Figure 15
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Price appropriateness
5HWDLO SULFH LQGH[ ZDV FDOFXODWHG IURP 506 VWXG\ DQG ZLOOLQJQHVV WR SD\ SULFH SUHPLXP
from winning brand questionnaire. Q: Please indicate which of these statements best describe how
much you would be willing to pay for Pantene (asked for brands the respondent would buy
regularly or would consider)? 1 - Whatever it costs; 2 - Even if it costs more than any other brand;
3 - I would buy even if it costs much more than the cheapest brand; 4 - Even if it costs a little more
than the cheapest brand; 5 - Only if it costs the same as the cheapest brand; 6 - I would not buy it
at all; 7 - 'RQWNQRZ
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Source: Scan Track & Winning Brands
It then looked at the impact of promotional activity of Pantene. Pantene and Garnier were not promotion-driven,
whereas Palmolive and VO5 were (Figure 16).
Figure 16
Do
Promotion led purchase triggers
No
Impact of promotional activity
Source: Scan Track and Winning Brands. The relationship is linear. So, brands lying below the line
indicate that they are not promotion-driven. 3URPRWLRQ-OHGSXUFKDVHWULJJHUV is the percent
of consumers reporting that the purchase is triggered by promotion.
Page 17 of 21
Table 7
Activation
Sunsilk
Garnier
VO5
Palmolive
143
35
51
15
11
12
12
op
yo
Pantene
rP
os
t
Nielsen also analyzed advertising (see video ads http://hrm.iimb.ernet.in/iimb/advertisement/ of Pantene and
Garnier) and new variant activity of brands (Table 7).
45
36
Advertising activation index
167
115
Ad recall
37
18
Brand Recall
22
16
Brand Cardio (% of new SKUs)
46
16
Advertising Activation Index was obtained by dividing ad recall share by brand recall. Brand cardio was
the percent of new stock keeping units (SKUs) introduced in the last 2 years.
Source: Scan track & Winning Brands & NMR
WHAT SHOULD PANTENE DO?
Do
No
tC
Based on the market research findings, Nielsen wondered what marketing strategy should be recommended to
Pantene. What changes should be made in the marketing mix to reverse the decline in the market share of Pantene?
More so, the client had set an aggressive long-term growth target of five share points. How could Pantene achieve its
targets?
Page 18 of 21
Exhibit 1
rP
os
t
Market shares of brands

25
22.5
20
20
15
11 10.4
8.9 9
10
7.6 6.4
7.5 7.1
5.9
5.8
5.3 4.2
Arbitron Inc. ($
Ipsos
(Euro
million)
million)
3.9
0.8
op
yo
2004
Source: Scan track
Exhibit 2
2005
Key financials of select companies 2009

Nielsen
($
millions)
USA
2010
2009
tC
2009
Health
Inc. ($ million)
USA
Parent Country
IMS
USA
2010
2009
2010
(Euro
million)
FRANCE
2009
GfK
GERMANY
2010
2009
2010
4808
5126
2190
2212
385
395
944
1141
1165
1294
2023
2129
1257
196
215
354
418
813
872
1523
1648
662
82
75
501
603
250
268
1146
619
52
52
36
37
116
730
271
55
66
87
117
89
137
644
660
23
28
427
154
Net Income/loss
488
132
260
43
45
58
73
61
84
Equity/Liability
0.2
0.3
0.0
0.2
0.5
0.9
0.9
0.6
0.7
10.1
2.6
11.9
11.2
11.4
6.1
6.4
5.2
6.5
34,000
34,000
7250
971
951
8,761
9,498
10,058
10,377
4,353
3,882
35,862
44,284
47,319
6,620
7,686
6,065
8,095
Revenues
Cost of revenues
SGA
Other expenses
No
Operating Profit
Interest expenses
Loss
from
continuing
operations
Net income as % of
Do
Revenues
No.
of
full
time
employees
Net income/Employee
Source: Global Market Research 2010 and 2011, ESOMAR Industry Report
Page 19 of 21
Exhibit 3
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os
t
Country-wise market research spends

Country
Turnover ($ million)
MR spend per capita
Ad spend per capita
2009
2009
2009
2010
2010
2010
9,462
9,915
27.84
31.98
515.8
447.64
UK
3,248
3,185
52.55
51.19
433.71
354.80
Germany
2,897
2,889
35.32
35.40
348.30
291.00
France
2500
2533
42.94
40.24
272.55
253.91
Japan
1,769
1916
13.87
15.03
328.49
334.85
China
974
1,114
0.69
0.83
42.76
15.64
Italy
757
771
12.66
12.77
225.85
193.53
540
815
3.07
4.22
59.75
54.48
576
657
18.76
29.56
525.87
542.62
295
338
6.05
6.90
95.30
258
315
1.83
2.24
73.26
55.86
174
197
0.16
0.16
6.27
3.78
114
135
1.70
2.11
48.79
op
yo
USA
Brazil
Australia
South Korea
Russia
India
Thailand
Do
No
tC
Source: Global Market Research 2010, ESOMAR Industry Report
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os
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Exhibit 4
Page 20 of 21
op
yo
Organization chart of Nielsen India
Do
No
tC
Source: Nielsen
Page 21 of 21
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os
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Appendix A
A perceptual map, such as shown in Figures 10 and 12 depicts how consumers VHH brands on various
dimensions. For Exhibit 10, consumers were asked to rate each of the 8 brands on 19 personality dimensions on a
scale of 110. Rating 8 brands on 19 dimensions yields 152 numbers. Perceptual mapping finds the best way to
show in two dimensions the information content of the 152 numbers. It uses the statistical techniques of factor
analysis or multi-dimensional scaling. Arrows pointing in the same general direction show attributes that are highly
correlated with one another.
To see where a brand lies on a given attribute, one must envision a line from the brand perpendicular to the attribute.
For example, consider the attribute )DPLO\-RULHQWHG DQG3DOPROLYHIURPFigure 10.
op
yo
Palmolive
Family-Oriented
Palmolive
No
tC
The dotted line projects Palmolive back on to the )DPLO\-RULHQWHG attribute. To see where Head and Shoulders
lies on Family-oriented attribute, we have to extend the )DPLO\-RULHQWHG vector back through the origin and then
drop the line perpendicular to the vector. Perceptual maps usually extend a vector from the origin in only one
direction, so that the map does not become too cluttered.
Head and Shoulders
Do
7KXVZHVHHWKDW3DOPROLYHLVUDWHGKLJKHURQWKHGLPHQVLRQ)DPLO\-RULHQWHGWKDQ+HDGDQG6KRXOGHUV

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rP

NIELSEN: MARKET RESEARCH FOR PANTENE

Nielsen: Market Research for Pantene

MARKET RESEARCH INDUSTRY

Nielsen: Market Research for Pantene

1LHOVHQV006PHDVXUHGQDWLRQDO79YLHZHUVKLSE\LQVWDOOLQJSHRSOHPHWHUVLQULJRURXVO\ selected representative

Sapna Shetty, Executive Director Global Business Services said:

Nielsen: Market Research for Pantene

CUSTOMIZED RESEARCH FOR PANTENE

Source: Winning Brands

Nielsen: Market Research for Pantene

Source: Winning Brands

Brand Equity Model

Drivers of equity in the Shampoo category compared with FMCG

Source: Winning Brands

Nielsen: Market Research for Pantene

Associations as drivers of equity in the Shampoo category

Source: Winning Brands

Brand-wise brand associations

Makes hair shiny

Makes hair soft

Gives hair body

Cares for colored

Nielsen: Market Research for Pantene

Makes you feel

Is for the whole

Source: Winning Brands

Brand Equity Index

Nielsen: Market Research for Pantene

Source: Winning Brands

Brand equity by age

Target Group by Age

Head & Shoulders

Source: Winning Brands

Nielsen: Market Research for Pantene

Brand equity by rate of adoption

Head and Shoulders

Source: Winning Brands

Relationship between brand equity and market share

Source: Scan track & Winning Brands

Nielsen: Market Research for Pantene

Brand relationship hierarchy

Cross brand affinity

a Is an index number base is 100. To be read by column. To be read as among those

Source: Winning Brands

Nielsen: Market Research for Pantene

Head & Shoulders

Source: Winning Brands

Packaging of various brands

Source: Winning Brands

Nielsen: Market Research for Pantene

Perceptual map of packaging

Pack can stand on its lid

Lid does not break off Durable pack

Old fashioned pack

Source: Winning Brands

Switch Triggers (BA)

Choose from special display

Browsed through several packs

Read several packs

Out of stock. Bought another

External regulator friend

External regulator family

External regulator daughter