Promotions

Tresemme is heavily promoted through brand activations and a strong online presence, along with traditional forms of advertising such as print and TV advertisements. Tresemme has managed to strike a chord with its audience with its affordable price-points. Tresemme is available between Rs 68 to Rs 1,000 at beauty stores, pharmacies and modern-trade outlets.
Here are some ways in which it has marketed itself to become such a hugely popular in the high-end shampoo category:

This was one of the first TVCs that was launched in India for the introduction of its Smooth and Shine Range of shampoos. 

This advertisement kicked off the Campaign for "Ramp Ready Hair" .
'Get side braids, salon-style hair at home, everyday,' scream advertorials for Hindustan Unilever's haircare brand Tresemme. A link to DIYs (do-it-yourself) tutorials for low buns, ponytails and bouffants beckon consumers, albeit with a bit of help from Tresemme. This was the beginning of a YouTube advertorial series of "Do-it-Yourself" tutorials. 

Do it yourself (DIY) Playlists teaching women how to make "Ramp-Ready"/"Red-carpet" Ready hairstyles using Tresemme with Marcus Francis.

For this reason, they hired Marcus Francis (A French celebrity hairstylist) to give the Indian consumer the confidence that it is a product adhering to international standards in terms of its efficacy (which justified the price as well). The advertising/ marketing was done keeping in mind that the product is priced at par with the competitors (Compeititve-Parity) like L'Oreal and Pantene. 
Tresemme has a very little presence in the OOH advertising space but advertises in print, majorly in newspapers such as Times of India (Mumbai/Pune/Delhi Times), HT, magazines like Femina, Harper's Bazaar, Good Housekeeping, Cosmopolitan etc. 

A PR tactic used by Tresemme to influence consumer purchase, getting the product endorsed by a leading women's magazine, Cosmopolitan.

Here, they had an activation in collaboration with the magazine. It was a fashion show followed by a backstage party in Mumbai, which was again heavily highlighted through the magazine as well as other newspapers such as Times of India, Mumbai Mirror, Bombay Times etc. (Another activation + PR gimmick) 

A snapshot of the Tresemme Cosmopolitan backstage party.

They chose "Cocktail" Fame actress Diana Penty as their brand ambassador which was a clever move, considering the fact that the actor was already very popular with the success of her debut movie, which coincided with the shampoo's launch in India. It became a very big opportunity for Tresemme to encash upon Diana's image of a beautiful girl-next-door but with a unique sex appeal to her.

They tied up with a blog site called "Indiblogger", and launched "Ramp Ready Hair" Blogging contest (A sales promotion strategy) 

Prizes as big as  Galaxy tablets were given away and this also created an online community and generated a huge feedback for the shampoo. 

Tresemme also initiated a Twitter discussion through the hashtag "#TRESemmeRampReady" which created further "word of mouth" marketing.

Tresemme also collaborates with various fashion designers (Rocky Star for LFW '14) and fashion weeks (Lakme Fashion Week 2012-14), Beauty pageants (Miss India- it sponsors a title called "Miss Stylish Hair"), Tresemme Couture Fashion Weekend for brand building opportunities.  It also launched its TV film on MTV called "Picture Perfect" which would be aired on MTV as well as on YouTube. It starred former Femina Miss India Simran Kaur Mundi and was directed by notable film director Rohan Sippy.

Collaboration with Rocky Star, Celebrity designer to launch a collection inspired by Tresemme Hair Spa Rejuvenation.

Femina Miss Stylish Hair being given to a contestant in the state level selection for contestants.

Lakme fashion Week 2014 news feature.

Snapshots of the Facebook, Twitter and Youtube pages of Tresemme:

Facebook Page (Not so frequently updated)

Facebook Page promoting a new TV series to be aired on MTV and Youtube. 

Description of the Youtube channel

Twitter profile of Tresemme India. 

A still from MTV Picture Perfect (title sponsor: Tresemme) Director: Rohan Sippy.

All of the above  activities, using different media to create a full-fledged communications scheme cater to one goal:
To create awareness; To give knowledge; To induce liking; To create preference; Communicating with conviction; In order to cause purchase!

Tresemme has broken the clutter through innovative techniques of communicating. As we can see, Tresemme has a healthy mix of all activities (Advertising, PR, events, Branding, Word of Mouth, Sales Promotion)but in a minimal way to create a strong overall image that doesn't confuse the consumer and creates a strong impact. It has done great to the brand as the sales are constantly growing. It has succeeded in putting forth an image that is consistent with international standards.

Pricing

Price is the key deciding factor in the customer's purchase process. This is why it is the second most important P in the four Ps of marketing. 
There are six different types of pricing generally available to the marketer while setting prices in the product mix: 

Does not contain Two Part Pricing

PRODUCT LINE PRICING: 

HUL is one of those companies that have product line pricing. Every line of product/Brand is priced differently to suit different target customer segment. 
For example, a Clinic Plus will cost lesser than a Dove which costs lesser than a Tresemme. 
Even within the product line, there exist different price points for each SKU. 

For Tresemme, the pricing is as follows:
8 ML - Rs. 3
100 ML - Rs. 68
200 ML- Rs. 135
600 ML- Rs. 295
The quality of the brand, the positioning along with product benefits, as well as the packaging should justify the pricing differences.

OPTIONAL FEATURE PRICING will not exist for Tresemme as it is a FMCG good.  
Optional Feature pricing is widely used in consumer durable segments, the automobile industry and the entertainment and hospitality/travel industry. They come with a base fare and upon that, on availing of an optional feature/benefit, the company charges extra price.

CAPTIVE PRODUCT PRICING is mostly followed in those products which are initially sold at a lower rate, but their additional and essential components are priced at a premium which have to be purchased by the customer since he would not be able to use the product without them. Examples of captive product pricing are: Printers (Cost of the cartridge), Razor blades (Cost of the blade is higher than the stick but the blade is an important part) and cameras (the lenses, stands and other necessary equipment cost much more than the camera itself).

TWO-PART PRICING is essentially a pricing where there is a fixed price as well as a variable price. Mobile operators use this commonly. The fixed fees is the price of the SIM card or registration fees and the variable usage fees is the amount of calls one makes, the data (2G/3G) used. Higher-end pubs and restaurants charge an admission/reservation fee and the usage cost is the quantity of food/drinks ordered. 

BY-PRODUCT PRICING is done in those cases where the manufacture of one product causes manufacture of by-products and these are then priced according to their usability. For example, in a petroleum refinery, there are many by-products at different stages of the process (petrol, diesel, kerosene, naphtha etc). These are then priced according to their usage and demand.  

PRODUCT-BUNDLING PRICING happens at most promotional schemes. You would have seen the deodorants/soaps/toothpastes bundled together and sold at a much reasonable price than if you would have purchased them separately. A bundled data package in a mobile plan is a monthly/annual scheme wherein one gets all benefits at a comparatively lower price than if these were purchased separately. 

In the case of Tresemme, the pricing can be as a Product Line pricing and/or the Product-Bundling. But it would be sold as a bundle only during special offers or when a new variant is being launched in the market, to generate more initial consumption (Penetrative Pricing).
Otherwise, usually premium shampoos such as this are priced using the Product Line pricing to distinguish themselves from the crowd and connote high quality. 

The Product-Brand Relationship

The Product Hierarchy

The product hierarchy transitions from basic customer requirements (needs) to an individual item that a customer finally picks up from the store to fulfill that need.

There are six levels in the product hierarchy from which we derive the product system and mix.

The Need family: This stems from basic human psychological needs as advocated by Maslow. For hair, the need is to have healthy, good looking and manageable hair. Therefore, the need family of Tresemme will be Hygiene and Beauty.  
(CORE BENEFIT)
The Product Family (Category): After detemining the need, the next thing which is important is to identify where the product lies. Here, Tresemme will lie in the category of Personal Care.

The Product Class/ Sub Category: The category gives rise to further sub categories which, in the case of Tresemme, is Hair Care. 
(BASIC PRODUCT)
The Product Line/Brand: Now, the brands start coming into action. Tresemme along with all its variants in all sizes come under the Product Line/ Brand.
(BASIC + EXPECTED + AUGMENTED PRODUCT)
The Product Type/Brand Variant: Tresemme Hair Fall Defense Shampoo is the variant of Tresemme as a brand, is a distinct product from all its other variants and thus will compete with all the variants (Keratin Smooth, Split Remedy, Climate Control and Smooth and Shine), All the brands under the parent HUL (Clear, Clinic Plus, Sunsilk, Dove) as well as the competitors from other companies. 
(BASIC + EXPECTED+ AUGMENTED)
Item/Brand SKU (Stock Keeping Unit): A Brand SKU will be the preference of the customer. It is the final product variant with all the sizes available. Thus, Tresemme Hair Fall Defense  Shampoo will have SKUs in the form of an 8 ML sachet and 100, 200, 600 ML Bottles and colour of the packaging is black and purple. 

From the understanding of the above product hierarchy, we can infer the Product Systems and Mixes:

The above diagram makes it clear that the Product width is the sum total of all sub-categories that come under that category, Product Depth is the number of brands in the particular category, Product line is the various brands, their variants and SKUs respectively in each sub category, and Product Line Length is the number of variants, SKUs, that a particular brand offers. 

All these product systems and mixes linked with product levels (the core benefit, basic product, expected product, augmented product and the potential product) give customers the best possible choices for deriving value. 

The above diagram also makes it quite evident that HUL has a very large product width and a larger product depth that make it the Leader in the hair care segment.

Setting Product Strategy - The Product Hierarchy

There are five levels in the customer value hierarchy. These are illustrated as follows:

These are placed in the 3C Model (See above) by Kenichi Ohmae,

 In the below mentioned manner:

1. Customer: The customer is the dominant factor in marketing activities, as all activities are directed towards the customer only. Therefore, the core benefits lie in the mind of the

 customer. The marketing definition also clearly emphasises that all the activities are directed for the customer only.
Also, the expected product also lies in the customer domain, since the customer requires some features in a product that match the expectation.

In Tresemme shampoo, the core benefit is that it will reduce hair fall which is a problem faced by the customer/consumer. Also, an expectation from the consumer is that it will give him/her great looking hair everyday that are manageable. This is the expected product.

2. Company: The company offers the basic product. The basic product is the fulfilling of basic requirements of the customer. Basic product is also provided by the competition, if the product is at par with the competition, as is the case with FMCG products. Also, the potential product is within the company domain. In future, the company can launch a newer version of the product, or a new product altogether, to fight the competition and stay alive in the product life cycle.
Tresemme as a basic product is a shampoo that cleans dirt off hair and makes hair look good and smell good.

3.Competition: The basic product, the augmented product and the potential product lie in the competition. It is the competition that will try to cut through the clutter with matching customer expectation, bringing out newer versions and variations in their products as well as creating avenues for potential marketing success. 

With Tresemme, the expectation is that it will reduce hairfall and save the cost of going to a salon to get hair treated. As an augmented product, there are four variants of the brand Tresemme - Smooth & Shine, Climate Control, Split Remedy and Keratin Smooth.
In this way it has an edge over the competitors. But since it is a FMCG product, most of the products are at par (Eg L'Oreal, Pantene, Fiama Di Wills, Garnier) with it in features as well. 

Thus, the potential product could be launching of  a new hair care line altogether with oils, protein revitalizers and many improved variants of shampoos. 

The Expected Product and the Augmented Product are key differentiators for the company from the competition which highlight the brand as "unique" in the industry.

Arriving at the Marketing Mix

The above five concepts are interlinked and hence give rise to the marketing mix which consists of the four “Ps” of marketing viz. Product, Price, Place and Promotion.

These four Ps stem from the customer value construct, encompassing the cost-benefit analysis and also give a fairly clear picture of where the product/service stands in the context of market, industry and also in its life cycle (within the brand as well as the category). It helps the marketer to understand the key areas where the product needs to improve and assess the strengths of the promotional schemes employed.  The 4 Ps help answer the following questions precisely:

In the context of Tresemme, the four Ps answer these questions as follows:

PRODUCT:

Customer Requirements:Reduce hair fall, salon styled hair

Features: Free from harmful chemicals

How and where will customer use it? To wash hair

What does it look like? Sachet/Bottle

Colour: Black and purple look (connotes luxury)

Size: 8 ML, 100 ML, 200 ML, 600 ML

What is it called? Tresemme Hair Fall Defense

How is it branded? A different product, professional quality

Differentiated as: HUL Promise to deliver exceptional quality as always

PRICE:

Monetary value: 8 ML - Rs. 3, 100 ML - Rs. 68, 200 ML- Rs. 135, 600 ML- Rs. 295

Price Point: Price at par with nearest competitors (L'Oreal, Pantene) otherwise it is in the premium hair care category

Discounts to traders/retailers: Attractive trade discounts to retailers 

Price Sensitivity: Product caters to high-end customer- therefore lesser price sensitivity.

PLACE:

Location of product: Mom-and-pop stores in locality, Large retail stores (Big Bazaar, Reliance, DMart)

Distribution Channels: Distribution Channels include wholesalers, agents

Sales force used or not? Sales force not used to reach the customer but aggressive sales promotion in the context of retail stores (pushing for maximum shelf space)

Competitor Strategy: Competitors follow more or less the same distribution channels.

PROMOTION:

Where to promote? Promotion on TV, Print (magazines like Cosmopolitan, Good Housekeeping, Femina), PoP display and persuasion,  sampling, some PR activities like sponsored events, hair styling fests.

Best time to promote- all through the year as it is a daily use product. Cannot be promoted seasonally, but special occasions like Valentine's Day, New Year etc can be tapped

Competitors' strategy: Neck to neck. Similar strategy. Key differentator is that Tresemme positions itself as a professional quality shampoo giving a salon styled look everyday. 

Here we can see an integration of the earlier concepts of customer perceived value, elements of the consumer decision making process, the overall market, competition and industry as well as the analysis of where the product currently stands in the PLC curve.

As in case of Tresemme, it is a new product in the Indian market, therefore, in the growth stage. 

However, the 4 Ps are an incomplete picture of the ever changing marketing domain. One needs to delve deeper into the trenches. But for the sake of a basic understanding, the 4 Ps give us a rough idea of the product and the dimensions associated with it at grassroots’ level. 

The Product Life Cycle

Product Life Cycle

Generally, there are four stages in a product’s life cycle: i) Introduction- the product is introduced, slow sales, no profits at this stage; ii) Growth- rapid market acceptance and substantial profit improvement; iii) Maturity- slowdown in sales growth because of widespread acceptance, stabilization/decline in     profits and; iv) Decline- downward drift in sales, erosion of profits. A sample PLC curve is shown above

Here, the PLC shall be explained in terms of a category (hair care), a product (shampoo) and a brand (Tresemme).

         

       1. Hair care as a category is constantly in a maturity stage for a very long period of time.  Consumers constantly buy newer and more advanced forms of hair care products as they move forward in life- factors such as age, lifestyle, income, gender, socio-economic strata play a crucial role in determining which kind of hair care product one uses. Eg: A rural household might use Parachute/Navratna/traditional mustard oil for massaging the scalp and Nyle/Superia/Clinic Plus as a shampoo, while an urban; SEC A household prefers Dove Elixir/Parachute Advansed as hair oil and an L’Oreal/Tresemme for shampooing. Some brands, however, are facing decline in their respective life cycles. Examples: Nyle

      2. Shampoo as a product is also in the same phase of maturity as the overall hair care category. It is also continuously experiencing growth as newer variants of shampoos for every class are available and are being developed.

      3. Tresemme as a brand has recently been launched in India. So, being a relatively newer player in the shampoo category, it is on the growth phase. It has already become a Rs. 1 billion brand in terms of the sales turnover.

Tresemme is launched by HUL in the premium range shampoos category.  The price of the shampoo is as follows:
8 ml – Rs. 3
100 ml – Rs. 68
200 ml – Rs. 135
600 ml – Rs. 315

The name Tresemme resonates professional quality and that is how they position themselves in the mind of the consumer. For this sole reason, they hired “Cocktail” fame Diana Penty and French hair expert and fashion circuit celebrity Marcus Francis (http://www.marcusfrancis.com/) as brand ambassadors for the shampoo.

The urban middle class and the high-end customers were apprehensive to buy it first but they then felt that it is a better deal than having to spend a few thousand rupees at a salon every month, when a shampoo can provide a similar benefit for under Rs. 500.

A large chunk of the product’s sales can be attributed to the very fact that Tresemme provides superior quality for the price that it comes.  Also, word-of-mouth and huge promotional campaigns (TVCs, PoP Displays, BTL advertising, PR campaigns etc) helped leverage the sales.

After that people started overlooking the price point and bought it for the salon-like experience it gives them.  Thereafter, high prices meant high quality.
In spite of entering the Indian market in 2012, Tresemme has already become the preferred choice of Indian women and has become one of the best international hair care brands in India. Increasing product depth (variants like smooth & shine, keratin smooth, split remedy and climate control), standing by its commitment to give a professionally styled look to the hair, a varied promotional mix and huge sales numbers are making it a truly aspirational and successful brand, which shall thrive even further.  

Competition and Industry- Where we stand?

There is fierce competition in the FMCG goods industry. The hair care brands like Dove, Pantene, L’Oreal, Tresemme etc are trying to outdo each other by innovating their sales and marketing programmes, getting maximum shelf space in the retail outlets and doing aggressive advertising. Tresemme, as a relatively new entrant in the Indian FMCG industry, has already outdone many competitors in the segment of premium shampoos.

 Many consumers have shifted from using Pantene to Tresemme. The major reason for it is that Tresemme has positioned itself as “salon style” and roped in a young face like Diana Penty and a renowned hair stylist for its television commercials.

HUL wanted to cut competition from brands like L’Oreal and Pantene by providing a strong and effective competitor to them and to increase the product line length of the hair care category- by adding one renowned name in addition to Sunsilk, Clinic Plus and Clear.

The product depth of Tresemme has Tresemme Hair Fall Defense, Tresemme Keratin Smooth, Tresemme Split Remedy, Tresemme Smooth and Shine and Tresemme Climate Control shampoo and a similar range of conditioners and serums.

Tresemme, in 2013, became the most valued brand of HUL after Clinic Plus registering Rs 1 billion as annual turnover within just a year of its launch in 2012, thereby creating a successful place for itself in the hair care products industry.


Classification of different brands( along with the parent companies) in the Hair Care segment is shown below:

HUL
Toni & Guy
Ayush
Tresemme
Dove
Sunsilk
Clear
Clinic Plus

P&G
Pantene
Head & Shoulders

ITC:
Essenza Di Wills
Fiama Di Wills
Vivel
Superia

L'Oreal
L'Oreal Total Repair 5
L'Oreal Fall Repair
Garnier Ultra DoUX
Garnier Fructis

Others include Himalaya’s, Nyle, Halo, Wipro, and some other ones like Kesh King, Trichup, CHIK etc.

The third level: Decision time!

The consumer goes through five stages before deciding to purchase the product- Problem recognition, information search, evaluation of alternatives, purchase decision and post-purchase behaviour.   For tresemme shampoo, the consumer buying construct is as follows:

1. Problem Recognition: Hair fall, hair not lustrous. Salon treatment is very expensive

from there the customer goes on to the second step i.e., 

2. Information Search: Seeking solutions for the problem faced by you, looking for home remedies, treatments, asking family members and friends for solutions. Getting options for solving hair loss problems.

3. The third stage is that of Evaluation of Alternatives. Whether to get professional salon treatment or to buy a bottle of shampoo. And if buying a shampoo, then comparing the various brands of shampoos (Tresemme, Dove, Pantene, L'Oreal, Head & Shoulders, Clear, Clinic Plus etc). The customer will test the efficiency of the shampoos that he/she has chosen.

4. Now the consumer will finally purchase the shampoo which is Tresemme. It is called Purchase decision.
5. Post Purchase Behaviour is also important. The consumer will either be satisfied (he/she believes that Tresemme as a shampoo brand has succeeded in creating value for him/her) or will be dissatisfied (If it has failed in any of the attributes).

A sub component of this five-stage model is the choice sets involved in the decision making process. The choice sets occur one after the other and finally the consumer makes the final decision.

The total set includes all brands that are available to the consumer for his choice. The awareness set comprises of all brands that the consumer is aware of. The consideration set further narrows down the person’s alternatives based on the exact requirements and features of the product. The choice set gives the consumer only two options from which he/she picks up one which is in the final decision set.

In addition to this, there are six key questions that a marketer has to ask in order to deliver perfect customer satisfaction. These are:

a.       Who all buy Tresemme?
Answer: Males/Females (mostly females) in the age group of 16-35 who live in tier-1 and 2 cities, SEC AB and whose monthly household income is Rs. 30,000 and above.

b.      What problem will Tresemme solve?
Tresemme Hair Fall Defense shampoo will solve the problem of hair fall, having frizzy hair and of having to spend money at a salon to get professionally styled hair, all this at a reasonable price.

c.       In the FMCG category (Hair care products), what attributes are important and why?
The attributes that are most important are: product efficacy, free from harmful chemicals like parabens, suitability for daily use, gentle on hair and scalp, tested for effectiveness, not tested on animals and other secondary attributes like price, easy availability, a good fragrance, oil removal and that which gives a professionally styled look. These attributes are important because these become the parameters for purchasing the product.

d.      If this decision is the first, how is it likely to turn out? If repeat, then how?
If this decision is the first, then the consumer can: either be satisfied, neutral about his/her experience or be dissatisfied. Satisfaction can lead to repeat of the purchase while a dissatisfied consumer will not buy the product again, provided his/her grievance is addressed and he/she is given another option depending on the type of hair or scalp problem faced by the consumer. If this is a repeat purchase, chances are more that the consumer is going to purchase it the next time as well, since it is given that he/she is an existing consumer.

e.      How was the deliberation in making this decision? What was the trigger?
The trigger was that the consumer faced a problem for which he/she wanted an optimal solution. He/she saw Tresemme as a potential solution provider and purchased it. The deliberation was that the consumer weighed down all possible alternatives before arriving to this single choice.

f.        How were these performed?
See the explanation of the 5-stage model of buying decision model and the successive sets involved in customer decision making.

Deciphering Value: The Second Stage

The Customer Value Construct       

There are three kinds of people for whom value is created: The Customer, The Consumer and The Retailer. Tresemme, as a product, creates value to these three parties as follows:

Value Creation by Tresemme 

1.        Customer:Easy Availability,Affordability,Economical, Not difficult to carry, handy (in sachets,plastic bottles)
2.     Consumer:Effective in controlling hair fall, gives a salon styled look, great fragrance, gentle on hair, free from harmful chemicals (parabens), contains dimethicone which is good for hair. 
3. Retailer: Attractive trade discounts, Incentives on putting Point-of-Purchase advertisements, Commissions on boosting sales at their personal level.

Customer Perceived value for Tresemme is shown as below: 

Customer Value: Great value offered by Tresemme, which consists of two major elements, the costs associated with it and the benefits derived from the corresponding cost:

      Total Customer Benefit: More than the cost that the customer incurs

      Total Customer Cost: Very less, except for the money which is the sole deciding factor for purchase.

         The benefits of the shampoo are as follows:

•Product: Effective, Lessens Hair fall, Keeps hair smooth, Salon like feel.

•Services Benefit: Does not exist as product is an FMCG good

•Personnel Benefit: The shopkeeper/retail store assistant gives the customer the right bottle.

•Image Benefit: A big brand with a parent like HUL, trustworthy and reliable.

The costs that the customer incurs to get these benefits are as follows:

•Monetary Cost: Not too costly, a premium product. Affordable styling solutions (ranges from Rs 68-275) 

•Time Cost: It doesn't take time to obtain the product-readily available at small mom-and-pop stores as well as large retail outlets.

•Energy Cost: One doesn't have to travel a lot to purchase the product, and do a lot of research and comparisons before buying the product

•Psychological Cost*: Less psychological effort in buying the product

*Risk: No risk is involved with product usage. The product is easy on the eyes, scalp and a very smooth shampoo to use (No Tangles). Therefore, Tresemme is lessening the psychological cost on its purchase.