Brands and Products in the UK Shampoo Market
Overview of the Shampoo Market
The Shampoo and Hair colorants are among the largest hair products selling at higher rate in UK, constituting more than half of the market value. Given that shampoo and conditioner are mostly designed to go together, manufacturers and suppliers have been forced to develop marketing strategies that encourages shared consumption among the two products, thus increasing the conditioner market value. Styling agents and conditioners have constituted the largest markets while Relaxers and perms have the least market share.
A recent report on the UK Shampoo market indicates that, this market has remained to be consistently stagnant for over ten years. On the other hand, it has significantly added its market value through the consistent segmentation of product brands. The aspect of segmentation as Pitman (2006) observes, has been used by manufactures and traders in maintaining a market value for this products. This aspect has subsequently led to establishment of the new products in the market in an attempt `to dealing with issues related to Shampoo products.
In dealing with these problems, shampoos, styling products, colorants and conditioners are being developed with an increased range of ingredients that are active. For instance, those which aim to make the frizz hair become straight, moisturized or increased, or rejuvenating the tired looking hair. Apparently, there is a diversion concerning the marketing criteria for these shampoo products in UK perspective. Some individuals or organizations base their assumptions on scientific evidence, bringing attention on novel evidence derived from studies and modern development, which has brought with it the aspect of functionality, which had not been incorporated before, in shampoo product and brands (Thomson, 2011, p16).
On the other hand, there are a section of marketers, which have preferred to work on innate aspects of the brand formulation in the hair care products, thus tapping in to increased rate of users who are oriented towards those ingredients, which are organic based as part of the rising trend on fitness and health. Market researchers have referred to this form of division as “hyper segmentation”. This trend goes in line with the currently observable aspect in the cultural and social spheres that are geared towards individualism as reflected in the cosmetic and toiletry brands across the board. Market analysts posts that this aspects of “hyper segmentation” are driven by giant corporate brands in the shampoo industry such as Sunsilk and Shoulders, Head, and Timotheo.
Brands that formally represented only conditioners and shampoos have now come to incorporate other brands that are aimed at tackling a broad range of hair related problems. Proctor and Gambler brand is a good example of such brands that has incorporated other ingredients such as the stylistic products, which tackled the frizz problem. On the same note, Sunsilk, a Unilever brand has been extended to incorporate a winter intensive conditioner. This company has also emphasized on increasing demand for the natural ingredients by incorporating amber extracts and ginseng. It has also come to target a specific hair condition (static hair) that is more common on winter.
There is likelihood for the trend on the segmentation of shampoo market in UK perspective to continue as it is at present. This is because it is one of the major means of acquiring increased market share and value in this highly congested and mature market sphere. Consequently, there is likelihood of hair formulators to be kept busy (Pitman, 2006).
The Segmentation of the Shampoo Market
The UK shampoo market is considered as one of the largest in Europe. Although this market has seen a substantial growth decline over the recent years, this market has consistently attracted new entrants in this sphere. A market research conducted by Dublin, (2013) found out that many consumers are now turning to personal and organic products owing to the concerns raised on synthetic chemicals and toiletries (P2). The study further found out that although standard interest keeps on increasing, the rate of adoption remains to be down with less than half of organic and natural personal care products approved.
Shampoo and Hair colorants are among the largest hair products selling at higher rate in UK. Moreover, they constitute more than half of the market value. Given that shampoos and conditioners are mostly designed to go together, manufacturers and suppliers have been forced to develop marketing strategies that encourages shared consumption, thus increasing the conditioner market value. Styling agents and conditioners have constituted the largest markets while Relaxers and perms have the least market share (Shelly, 2012, 19).
In the present perspective, the shampoo market has been weathering the worldwide recession. Reinhold (2012) observes that these brands ought to be concerned on the spending habits of their clients adapt themselves to that perspective (p223). Nonetheless, the worldwide recession had influenced the sales of most of the consumer products over the last few years. In spite of the hair care products being regarded as basic commodities, they have also been not spared by this worldwide recession.
Following this, Mintel’s study reports that almost a quarter of women using shampoo products in UK have decreased their expenditure on shampoo products. This contributed to a £15m decline in market value in 2008-2012. Mintel analysis forecasted the UK conditioner market segment to a further decline well into 2014 as the consumers in UK continue cutting costs on their expenditures. The market segment for conditioners and shampoos in UK has recently witnessed a decreased trend in the treatment of hair. Conditioners have more especially been affected by these decreased cut of expenditures by consumers. A lot of users who used to buy specific salon shampoo brands for instance have opted to turning into cheaper ones with private label products. Some of the brands have reacted to this aspect with budget values products that are sized in an endeavor to drawing more than estimated 3.5 ladies that are identified as the buying value sized hair care products.
There is also an improved activity on those products developed by colored hair. The development of new technologies has facilitated greater segmentation in this aspect whereby, shampoo products have been intensified with new colors and hair lightening properties. Market segmentation in the sector of the hair care has assisted a lot in encouraging new consumers in recent times to investing in the hair care. Majority of consumers are now interested for added value in this type of market and therefore, the specific products are much assisting with this. There has developed a trend of the use of the prescriptive approach to hair products which are more of targeted to customer requirements (Shelly, 2012).
Ways in Which the Sampoo Market could be segmented in UK Perspective
The term market segmentation is a concept which refers to the subdivision of a market a longsome similarity, or kinship. Members of a market segment share common elements. The objective of market segmentation is the focusing of marketing force and energy on a specific market sphere so as to realize a competitive advantage with the segment so selected. This principle is derived from the military use of a “concentration force” so as to overwhelm their opponents. The focusing of the market force is the goal of almost all marketing strategies and marketing segmentation is a concept that should be employed in realizing such a focus. The following are some of the ways in which the shampoo market could be segmented in UK perspective.
This form of market segmentation, which is most common among markets, is focused on companies concentrating their brands on a particular area. The markers should conduct market surveys on the product that are most favorable to particular group of people and concentrate such products to that area. For instance, organizations dealing with this kind of brands should just decide to market their products in particular areas leaving out others because of low customer level. In essence, there is no use for companies to use a lot of energy and resources marketing products in areas with low rate of customers. In UK perspective, many of these firms dealing with shampoo or hair products are seen to be concentrating their forces in areas that have potential of high sales. Moreover, the firms consider the regional differences with regard to consumer preferences. This geographical segmentation could take different angles such as urban based, leaving out rural areas, south verses north, interior verses sea cost, cold areas verses warm areas, dry areas verses high humidity areas, low elevation verses high elevation and so on.
Psychographic or Lifestyle Segmentation
Psychographics or Lifestyle Segmentation is based upon analyses that are multivariate in consumer beliefs, attitudes, perceptions, emotions and interests. This form of segmentation is normally considered as the legitimate way of segmenting markets such as those of hair products. In identifying proper segmentation variables under this perspective, such as pictures, words and statements should be employed. At this phase, the companies should deploy qualitative research techniques, which could provide insights and knowledge regarding the consumer’s tastes and preferences. The market analysis for such companies should also deploy verbatim comments from consumers to find out their perception or their way of life and determine the kind of products that are suitable for their case.
Although many companies do not prefer time segmentation as a strategy, market analysts and researchers have found it to be highly effective tool (Jerry, 2007). This is whereby some stores are kept open until late in the day, or staying open on weekends. Department stores may opt to schedule midnight promotional events. In addition to those aspects, these companies may opt to segment shampoo markets by political affiliation, hobbies, religion, sports team, religion, colleges and universities, loyalties and so on.
Firms dealing with shampoo products can reach various markets through different distribution avenues. For instance, a particular company may opt to sell their particular products towards supermarkets under a single brand name, to merchandisers under another name, to pet store using another brand name and so on. This has been a common method of distribution segmentation especially for small firms, which grant every channel a superb brand in acquiring distribution within that particular channel. For instance, the distribution channel could be a hair shampoo that is only sold through upscale beauty salons (Ferrer, 2012)
While this may not be a common phenomenon among other market segments, it may a very effective marketing tool for shampoo products. This is based on the assumption that various media tend to reach differences audiences. If a particular brand puts its entire budget in a single media, there is a possibility that it might dominate the market segment that listens to that station or reads that particular magazine.
Price segmentation is a common phenomena widely practiced by companies dealing with shampoos and hair related problems. The differences in house hold income leads to an opportunity for companies to segments some of the markets alongside the dimension of price. If individual income is ranging from low to high in particular areas, then there is a notion that these firms should bring to such market cheap products, medium priced and expensive ones depending on the level of incomes of the inhabitants of that place.
Age, gender, type of housing, income and level of education are some of the common demographic variables. While some of the products may be targeted to older women, there are those which may be specifically directed to teenagers or youths. Demographic segmentation has a function in the strategy of segmentation.
Behavioral segmentation includes sub diving the market segments into groups on the basis of consumer attitude, knowledge or response to a particular product. There is segmentation advantage for instance with regard to those products which are geared towards human health. You may go back to some two years ago where there were no shampoos. A t this time, people used normal soaps instead. The shampoo subsequently entered the market and was segmented by the general hair type of people such as thin, thick and using shampoo types as in either daily or weekly treatment, type of facility such as purity clarifying, and clean.
Weleda Shampoo and Body Wash
Description of the Product
Weleda Shampoo and Body wash is very important for babies. By use of this product, the baby’s tender and delicate skin and hair obtains a good balance of cleansing moisture in the baby’s skin and hair. Its gentle wash retains the moisture in the baby’s skin and hair. The purpose of this product is to retain the moisture in the baby’s skin and hair and to leave them feeling smooth and protected from dry skin. The product is formulated with mild natural and organic based cleansers. It consists of tear free biodynamic and organic calendula flower extract. The purpose of this flower extract is to soften and sooth the baby’s skin and hair. The sweet almond oil ingredient in this product is aimed at absorbing easily and fast in preventing the loss of moisture in the hair and skin of the baby. The formula is gentle, light and delicate fragrance, which can make the baby enjoy his or her bath (Weleda, 2013).
Weleda baby Wash has been among the first comers in many business areas. It has also continued to exhibit great attributes among parents. It gives assurance to these parents that they use the product to meet their children’s’ hair and skin needs. Another benefit of the product is that it could tailor to meet the needs of these children. The high quality of the Walade shampoo is also a crucial aspect since have continued to trust the product that it will work for their children’s well being. Therefore, the management has continued to stress on the aspect of quality of Walade products both at present and in future. It should also not be forgotten that the packaging for this product is unique. It is done in a manner that makes it conspicuous in a group of other products across the street. Another note is that the instructions on the covers level can be easily followed by customers. In fact, it is right in the size of the ATM. In addition, another note that is taken very seriously is the pricing strategy. The marketers have a tendency of employing promotional pricing aspect in the first time they enter a particular market segment. With this strategy, clients will establish a prototype of what they require and will undertake a survey to a certain their perception concerning this pricing strategy (Çankaya, 2012, 27)
In UK shampoo market; this product is conspicuous among others due to its fancy packaging style. There are bouncy, luxurious and long stresses that easily catch the eyes every mother in UK. The Weleda products alongside other shampoo products have recently become very essential products for ladies and children alike. Mothers have come to view this product as one that could make difference in the way there children smells, looks feels and the general condition of their skin and hair. Under the new weight of increased demand for these goods, the distributors for these products have began a campaign of positioning mothers as being responsible for the health and well being of their children.
Unlike many other beauty products, Weleda is made in such away that experiments could be done with, because it less costly and therefore, avoiding purchase risk. This means that these products depended on an effective marketing strategy to make them stand out from abroad range of almost similar items. The markers have come to appeal basically to the user’s vanity. It has tried to position itself as the shampoo that can make the children’s hair become smooth, moisturized and feels better and enjoy their baths. The main object for these marketers is to portray this product as attractive and health for children. Both print advertisements and commercials in UK have exhibited at some point attractive, clean models with enviable lifestyle and locks for.
Another aspect that have been use by the marketing professionals of this shampoo product is appealing to the customer’s environmental sensitivities by differentiating themselves though the ingredients they employ and attractive packaging systems. Until recently, Weleda and the shampoo products in general were not explain what ingredients they were using the manufacture of their products. However, the reaction unexplained chemical compounds have resulted into a wave of consumers turning to “natural” shampoo products against artificial ones. Those with ingredients such as lavender oils, honey and vitamins other than man made artificial compounds.
The Weleda Shampoo Market has recently acquired new importance to UK homes since 1970s. The market has been dominated by the major firms in the hair care industry such Procter and Gamble company. Analysts are anticipating that the market for Weleda product will continue to steadily rise with increased market players. The changing dynamics of rural dwellers have subsequently led the increased penetration market level for both the new and existing players (UK Cosmetic Sector Analysis, 2012, P17). The urban market segment
Urban markets account for 80% of the total Weleda shampoo market. The product’s usage is increasing steadily owing to the reduction of the excise duty and sachet packaging. The sachet packaging consequently led to the sampoo increase owing to their attractiveness. Acquiring a competitive advantage is the main strategy used by markers of this shampoo product. This has been equally the same with Weleda products with its reliable competitive advantage. The challenge for these markers has however been establishing the right image in the minds of these selected client segment. The marketing officials have been deploying brand positioning in trying to create the right identity in their market segment. They also endeavor to conduct marketing research so as to obtain the right picture concerning the customer’s attitudes and perceptions towards these products, similarities and differences in the range of products. The marketing managers have employed this strategy in order to affect changes in product positioning. The industry has endeavored to take care of the hair and skin care, value for money, and safeguarding the brand image.
The rising concern on ecological issues and also the global warming have prompted customers of Weleda products to seek out products that are natural and at the same time environmentally free. This has subsequently necessitated the reform of the shampoo and cosmetic industry in general. Customers in cosmetic and beauty products in this part of the world have tended to be so concerned on environmental issues and their effects to their own or children’s well being. The management at Weleda has opted to respond to these client’s needs (Montague, 2007, 1). The reason why the management at Weleda has opted to act so strongly is that their customers of cosmetic products such as Weleda baby have tended to be shoppers that are more ethical.
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