IQRA UNIVERSITY MAIN CAMPUS

IQRA UNIVERSITY
MAIN CAMPUS
Recession impacts on Head & Shoulder and SunSilk
Survey Report"

Introduction to the Topic

What Is Recession?

Many professionals and experts around the world believe that a true
economic recession can only be confirmed if GDP (Gross Domestic Product) growth
is negative for a period of two or more consecutive quarters.

The roots of a recession and its true starting point actually rest in the several
quarters of positive but slowing growth before the recession cycle really begins. Often
in a mild recession the first quarter of negative growth is followed by slight positive
growth, then negative growth returns and the recession trend continues.

While the "two quarter" definition is accepted globally, many economists have
trouble supporting it completely as it does not consider other important economic
change variables. For instance, current national unemployment rates or consumer
confidence and spending levels are all a part of the economic system and must to be
taken into account when defining a recession and its attributes.

The agency that is officially in charge of declaring a recession in the United

States is known as the National Bureau of Economic Research, or NBER. The NBER
defines a recession as a significant decline in economic activity lasting more than a
few months.

We often do not receive official word of an economic recession until we are

several months into it as NBER must take time to calculate the multitude of variables

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available before making their decision. While economic recessions are foreseeable,
they generally are not detected until already in motion.

It is actually more common than you might realize for countries around the
world to experience mild economic recessions. Recession (or contraction) is a natural
result of the economic cycle and will adjust for changes in consumer spending and
consumption or increasing and decreasing prices of goods and labor.

Rarely though entirely possible, experiencing a multitude of these negative

factors simultaneously can lead to a deep recession or even long economic depression.

Causes of economic recession

An economic recession is primarily attributed to the actions taken to control

the money supply in an economy. The Federal Reserve is the agency responsible for
maintaining the delicate balance between money supply, interest rates, and inflation.
When this delicate balance is tipped, the economy is forced to correct itself.

The Fed sometimes deals with these situations by dumping huge amounts of
money supply into the money market. This helps to keep interest rates low, even as
inflation rises. Inflation is the rise in the prices of goods and services over a period of
time. So, if inflation is increasing, it means that goods and services are costing more
now than they did before. The higher the level of inflation, the smaller the percentage
of goods and services is which can be bought with a certain amount of money. There
can be many contributing factors for inflation, which include but are not limited to
increased costs of production, higher costs of energy, and/or the national debt.

In an environment where inflation is prevalent, people tend to cut out things

like leisure spending. They also budget more, spend less on things they usually
indulge in, and start saving more money than they did. As people and businesses start
finding ways to cut costs and derail unneeded expenditures, the GDP begins to
decline. Then, unemployment rates will rise because companies start laying off
workers to cut more costs, because consumers are not spending like they were. It is
these combined factors that manage to drive the economy into a state of recession.

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This set of circumstances, coupled with the ability of people to get access to
greater amounts of loan money due to extremely lax loan practices, creates a cycle of
unsustainable economic activity that will eventually grind an economy to a near
halted existence. You could also say that a recession is actually caused by factors that
might stunt the growth that is available from the short term benefits to an economy
that can be brought about by such things like spiking oil prices or even war. And
while these are very short term in nature usually, they have been known to correct
themselves quicker than the full blown recessions that have happened in the past.

Effects of economic recession

Generally, an economic recession can be spotted before it actually happens.

There are ways to spot it before it actually hits by observing the changing economic
landscapes in quarters that come before the actual onset. You will still see GDP
growth, but it will be coupled with signs like high unemployment levels, housing
price declines, stock market losses, and the absence of business expansion. When an
economy sees more extended periods of economic recession, it goes beyond a
recession and is declared that the economy is in a state of depression.

The only real benefit of an economic recession is that it will help to cure
inflation. In fact, the delicate balancing act that the Fed struggles to pursue is to slow
the growth of the economy enough so that inflation will not occur, but also so that a
recession will not be triggered in the process. Now, the Fed performs this balancing
act without the help of fiscal policy. Fiscal policy is usually trying to stimulate the
economy as much as is possible through such things as lowering taxes, spending on
programs, and ignoring account deficits.

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Sunsilk Mission Statement

The New Sunsilk Shampoo aims at fulfilling the needs of its target market by
offering a high quality, assessment of the concept in terms of its acceptability,
credibility and perceived benefits, that it offers a healthy choice shampoo alternative
to the targeted consumer. The theme of the product shall be anchored around the
motto:

Softness, shine and manageability of Hair

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Introduction of Sunsilk
Product History:
Sunsilk was introduced in 1989 in Pakistan with three variants related to hair
types. Endorsement of a hair stylist was the first step in building the image of the
brand as a hair care expert.
With the competition from local and multinational companies due to
rationalization of excise duties, Sunsilk has not been able to gain the desired share in
the market. To strengthen the brand, UPL decided to re-launch Sunsilk with a
premium range consisting of four variants in January 2000. In 2001, due to the
constant research of their affiliated hair care institutes, the need of a shampoo for oily
hair was observed and they launched a new variant of Sunsilk having citrus extracts.
All Sunsilk variants have been formulated especially keeping in view the Pakistani
consumer hair composition and hair care needs so as to provide the consumer with a
complete range for all hair types.
Target Market:
Their main target market is females between the age group 16-40 belonging to
the two upper income classes. But in their promotional activities, they cover the
whole market irrespective of these classes.
Competitors Review:
The major competitor of Sunsilk in the rural areas is Bio Amla while in the
urban areas; Sunsilk faces cutthroat competition with P&G.
The main advantage of Bio Amla is its Herbal composition and low price,
which attract the rural market, but in terms of quality, they are far behind Sunsilk.
In urban areas, Sunsilk is acting as a market challenger against P&G. Sunsilk
has got the advantage of keeping their prices lower than P&G shampoos but P&G has
captured a bigger share of the market due to its intense promotional activities.

Currently, the main range consists of:

SunSilk Softening Anti-Dandruff Shampoo:

SunSilk Softening Anti-Dandruff Shampoo is a unique pearlized formulation
with Chamomile & Vitanol to drive out dandruff and nourish your hair back to its
natural beauty.

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SunSilk Black Shine Shampoo:

SunSilk Black Shine Shampoo with Henna & Cocoa naturally blackens and
smoothens your hair, so it reflects shine all day everyday.

SunSilk Long & Strong Shampoo:

SunSilk Long & Strong Shampoo with ginseng - protein nourishes and
strengthens your hair. By reinforcing the whole strand, your hair will grow beautifully
strong and long.

SunSilk Soft Touch Shampoo:

SunSilk Soft Touch will do just that, with rich almond oil & cream nutrients, it
nourishes deep inside each hair strand to bring out softness you can really feel. Soft
hair loves to be touch.

SunSilk Damage Repair Shampoo:

SunSilk Damage Repair Shampoo with Olive Oil Serum helps rebuild your
hair's natural cellular structure and seals it with a natural conditioning blanket. So
your hair's all ready for the next big style.
Customer Review of Product Usage:

36.36%

12.12%

Green

30.30%

12.12%

Black

Orange

9.09%

white

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Pricing Objectives:

Unilever claims to practice value-based pricing in which the customers

perception of the products price provides a starting point for developing the
marketing mix of the product. The research department determines this price usually
by using focus groups. The price of RS 3 for Sunsilk shampoo sachets shows how the
price also reflects a concern to make the purchase more convenient, since the rupee is
denominated in this value.

Last year P&G revised their prices which has increased the prices of their
shampoos considerably but Sunsilk has maintained its prices and their prices are much
lower than P&Gs, which is a major blow to P&G because being a poor country
people go for products which are within the range of Rs.100.

2 0 0 m l b o ttle
6 m l S ac he t

R s .1 2 0
R s .3

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Head & Shoulders Introduction

Head & Shoulders works with a panel of leading experts including scientists,
dermatologists, beauticians and stylists who really understand what individuals needs
to stand out, both on the outside as well as on the inside. With their advice, P&G has
been able to bring to its consumers, the worlds No. 1 shampoo.

P&G unveils new Head & Shoulders

The new Head & Shoulders was unveiled amidst a spectacular fireworks
display, followed by the Up Close and Confident show; showcasing everyday lifes
spotlight moments in which one needs the confidence to be at their very best. The
show was directed by leading choreographer Juni who fashioned a creative blend of
freedom and confidence.

Unveiling the new Head & Shoulders, Country Manager P&G Pakistan,
Qaisar Shareef said, Throughout its 46-year history, Head & Shoulders has been
striving to introduce new and improved products that help eliminate dandruff; giving
consumers a healthy scalp with beautiful strong hair. In Pakistan, the new Head &
Shoulders range of 5 different variants offers outstanding dandruff defense, resulting
in a scalp in excellent condition and beautiful hair.

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Brand Manager Head & Shoulders at P&G Pakistan, Saqib Zia commented,
In order to help restore the confidence of our consumers, Head & Shoulders
scientists have focused their research to better understand their needs and how best to
provide a product for an unhealthy scalp. The result is a new range of Head &
Shoulders, boosted with the Active ZPT system.

Target Market:

Their main target market is males and females between the age group 12-30
belonging to the two upper income classes. But in their promotional activities, they
cover the whole market irrespective of these classes.

Competitors Review:

The major competitor of Head & Shoulders is Pantene than it faces cutthroat
competition with Uni-livers.

There are many products against Head & Shoulders as we can name Sunsilk,
Clear, Garner, Bio Amla etc. But Head & Shoulder is unique due to have anti
Dandruff composition in every productive shampoo.

Currently, the main range consists of:

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In our everyday life we encounter a numerous spotlight moments where we
need the confidence to get close to others. With the new Head & Shoulders range, we
offer our consumers the chance to get 100% dandruff free hair, thus giving them
100% confidence to get close to others, said Assistant Brand Manager Head &
Shoulders at P&G Pakistan, Saba Malik while highlighting the consumer benefits of
the new collection.

With the 5 variants in the Head & Shoulders range in Pakistan, consumers are
sure to find the right anti-dandruff shampoo. I personally use and recommend Head &
Shoulders to patients who come to me with dandruff and other related scalp
problems, said Prof. Syed Atif Hasnain Kazmi, leading dermatologist, member of
Pakistan Association of Dermatology (PAD) and General Secretary of South Asian
Regional Association of Dermatologists (SARAD) at the Head & Shoulders Up
Close and Confident launch event.

P&G has captured a bigger share of the market due to its intense promotional
activities.

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Research overview:

Research word can be defined with simple explanation. Research; in my point

of view, Its a merger of two words which are Re and Search. Re means to do work
again or repeat the work, and on the other hand search means to explore something or
we can say find out the problem, it would rather be correct if we say that research is
made for identify errors, problems and finding the current position of objective.

How I did the research:

I have conducted this research with primary data collection. I have distributed
my survey forums into five different areas of Karachi in the retailer market. Survey
was consistent on ten different questions in which 2 open questions are being asked
and on scale and percentage point of view, rest of all questionnaire was based on
agree disagree type of views.

There were five places being marked:

A
Defense

B
Clifton

C
Malir

D
Gulshan

E
North karachi

I distributed forum among the retailers with kindness and they filled up with
my guidance and explanation. The questionnaire was so easy that an illiterate can
understand and answer easily, and finally I achieved my goal to get my info collected.

The results are compiled together and resulting as graphically presented with
the questions of survey. They were calculated by simple average method or self
admiring judgments.

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RESULTS ACHIEVED AFTER SURVEY

1)

Do you think customers go for prices?

No
24%

Yes
76%

2)

Do you agree customers from this area are quality conscious?

NO
28%
YES
72%

3)

Is Head & Shoulder sachet is easily available after increase in prices?

No
56%

Yes
44%

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4)
Due to Price Variation, What impacts the sale of both (Head & Shoulder
and Sun silk)?

5)

a) Head & Shoulder

b) Sun silk

Increase 20% Decrease 80%

Increase 80%

Decrease 20%

Which Shampoo gives you more earnings?

Other
H&D 8%
12%

Sunsilk
80%

6)

What people ask for more? Answer in percentage 1% to 100%

Others
16%
Sunsilk
47%
H&D
37%

7)
Are Head & Shoulders and Sun Silk customers loyal with their brands?
Rate your answer from 1 to 5
35
30
25

Sunsilk
Buyers

20

H&D
buyers

15
10
5
0
1

8)

Are customers diverting towards Sun Silk shampoo?

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H&D
12%

Sunsilk
88%

9)
What do you say that the increasing of prices are useful for Head &
Shoulders or not (tell in two lines)?
People answer in similar way that it doesnt impact on loyalty of H&D
because people are very much trust worthy with this product so they keep asking for
H&D although its not available in sachet packs.

10)
Do you still buy Head & Shoulders for your shop? If yes then tell the
reason.
In this thought people were totally negative but fewer were in the favor of
completing their items of shop or good will its important to keep H&D on shelf.

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