CHIK SHAMPOO
INTRODUCTION
Covey Corporation is established in
January 2000. This company’s first
product is shampoo and this shampoo is
Chik Advanced Shampoo Jasmine. It
helps to prevent hair fall and frizzy
hair.Chik Advance Shampoo goes beyond
to leave hair stronger & less tangled,
resulting in less hair fall even when hair is
wet or it is being combed.
PORTER’S FIVE FORCES ANALYISIS
• Bargaining power of suppliers: low
• Bargaining power of buyers: low to moderate
• Level of competitive rivalry: Strong
• Threat of substitutes: Strong
• Threat of new entrants: Low to Moderate
Bargaining power of suppliers: low
6 out of 10 teens used our product which is Chik
Advanced Jasmine Shampoo.
Bargaining power of buyers: low to moderate
There are 20 suppliers of Chik Advanced Jasmine Shampoo
The uniqueness of our product is still gives them a bolder
hair that other shampoo don’t have.
Consumers needs product that are reliable and less
expensive that are useful to their daily lives that’s why
markets had sustain their needs or else they may look
another product from competitors that is better than yours.
Threat of Substitutes Products:
Cost differences
The price of Chik Advanced Shampoo is more expensive than Sunsilk and
Pantene. Chik Advanced Shampoo is ₱10.00 while the others are only ₱5.00 SRP.
Availability of Substitute Products
Costumer can buy other shampoo if Chik Advanced Shampoo is not available but
costumer will also make sure that they will buy a shampoo with similar benefits to
Chik Advanced Jasmine Shampoo.
Convenience of buying substitute products
Costumers still feel comfortable with the substitute products because they have the
same benefits.
Threat of new entrants: Low to Medium
The threat of new entrants for Chik Advanced Jasmine
Shampoo can considered as low to medium because it takes time
to think what kind of shampoo is to produce because most of the
shampoo products has the same ingredients. It needs more capital
of doing a shampoo products and other also the other
qualifications are not easy to obtain when you are new to the
business industry like shampoo.
Level of competitive rivalry: Strong
Currently, the main competitors are Sunsilk and Pantene which
also has a wide range of hair care products under its brand. Both
products are formulated with advanced oil as main ingredient
resulting the hair to be strong and healthy looking.Customer
loyalty for the Chik brand is strong. For years, the Chik
Shampoo inhabited the hair care industry which stepped up the
game of the company. Many consumers gave their testimony after using the product,
many of them claimed to have bolder hair. Luckily, the company haven’t received any
displeasing feedbacks up to this day.
There is a quality difference between the brand Chik and other brands. The Chik
Shampoo is formulated with Amla and Sadam Oil for thick, strong and healthy hair.
No customers have reported any hair damages after using the product. While others
like sunsilk are claimed to have the natural oil called Sakura which is a primary
ingredient for scented hair that last throughout the day. Unfortunately, customers
have claimed to have heavy dandruff and hair frizzing after using the product.
PEST ANALYSIS
Political Factors Economic Factors Social/Sociocultural Technological
Affecting Chik Important to Chik Factors Influencing Factors in Chik
Shampoo’s Shampoo’s Chik Shampoo’s Shampoo’s
Business Business Environment. Business
Political factors play a Currently, our country is
experiencing a high inflation Technology is a factor
meaningful role in
rate that results to a very high whose value cannot be
determining the factors that prices of commodities including Chik Advanced Jasmine ignored. Technology vary
can affect the Chik personal hygiene products. Shampoo has an Eco- with the passage of time
Shampoo’s long term profit Example of it is shampoo which
in different markets. Chik is mostly used by men and
Friendly ingredient and in all industries and so
Advanced Jasmine Shampoo women for hygiene purposes. uses natural ingredients we made our techniques
is a hair care product used So our company developed a without any harmful and methodologies up to
by many people and open very affordable but highly chemicals that can affect
effective product called the the date for keeping our
itself to different types of our loyal customers
Chik Advanced Jasmine product preferable in the
political environment and Shampoo to address the
political system risk.
market.
problem.
COMPETITORS
ADVANTAGES
Strong Player in the hair care segment- Pantene is the
fourth strongest player in the US and is a billion dollar
revenue contributor to P&G. It is present in more than
100 countries and has a fantastic product line with
above 100 product in its portfolio. Distribution is one
of the strongest points in the SWOT analysis of
Pantene.
Fantastic brand equity- Pantene is known
for its brand equity and excellent brand
recall in hair care segment. As of 2016, it is
the 29th ranked brand in the world overall.
Continous improvement in product line- Pantene keeps
improving its product line with some fresh products which
will ensure movement off the shelves. It is not easy to
introduce a 100 variants of shampoos and hair conditioners
and still impart value from the products to the consumers,
but Pantene manages to do with smart products like
Hairspray, Gels, shampoos, so on and so forth.
WEAKNESSES
Costumer dissatisfaction on the rise- If we check
online, several online forums are filled with
dissatisfaction against Pantene Shampoos saying
that the shampoos are too strong or that they
react sometimes causing hair loss. Pantene needs
to have an online team handling such complaints
to reassure such costumers. Mind you, the
complaints are on the rise and have not dropped.
Sunsilk has a stronger strategy- Sunsilk has to be
appreciated for the fact that it has a far stronger mass
market strategy then Pantene. Where Pantene is
operating through the age old strategy of brand
ambassadors, Sunsilk has brought in hair experts as
well as Brand ambassadors and both endorse their
individual style and products. Thus, this makes a
higher impact on the consumer thereby affecting the
sale of Pantene.
Brand switching is high- Naturally with the
saturation of market and the high number of
alternatives available, brand switching is high,
which is a cost to the brand acquisition of a
costumer is always costlier then retention.
FEATURES
Pantene 3 minute miracle conditioner- Contains the
highest ever level of advanced Terminal Amino-
Silicones (TAS), which flatten and smoothen the
outer layer or the cuticle cells on the hair surface.
Pantene 3 minute miracle conditioner transforms
brittle, rigid and damaged hair to touchable, soft
and beautiful hair
ADVANTAGES
Unique Marketing Strategy- One of the key
takeaways of the marketing strategy of the Sunsilk is
the fact they brought in Hair care experts to design
each type of hair shampoos and each one of their
shampoos is endorsed by a Global hair care expert.
Known as the hair Care Expert- Naturally, because
they have used a unique marketing strategy, they are
known as the hair care experts across the globe. The
word ‘Expert” carries a weight and therefore people
really look forward to a positive experience when they
wash their hair with Sunsilk Shampoo.
Fantastic Brand Recall- Due to its repetitive
advertising and glitz and glamour in its
advertising. Sunsilk has bright packaging
which is attractive and it comes out with
various price advantages which gets it off
the shelves quicker.
WEAKNESSES
Competition Resulting in erosion of bottom line-
Although revenue is very good for sunsilk,
competition and the constant need for creating
noise is eroding the bottom line of all brands in
the skin Care Segment.
Brand Switching- There is high switching in
the hair care segment therefore resulting in
the cost of costumer acquisition to remain
higher. Because once you acquire a costumer
might quickly shift to another brand. Brand
loyalty is dropping as differentiation is
difficult.
Differentiation becoming difficult- Due to the
numerous products line present from HUL,
P&G, Godrej and other brands, the
differentiation in the hair care segment is
becoming difficult. Sunsilk still owns its own
because of its co creation concept and due to
owning novelty of using hair care experts.
FEATURES
Sunsilk Stunning Black Shine Shampoo
- Enriched with five natural oils that
protects hair from sun damage and
gives hair a long lasting shine
Sunsilk Conditioner- The lower part
of your hair is older and rougher, so it
is prone to lose shine. Enriched with
Sunsilk Conditioner helps smoothens
and maintain its natural shine.
TARGET MARKET
Chik Advanced Shampoo’s aims to enhance
the hairs of teenagers to resolve frizzy hair and
prevent hair fall because we believe they need
the best quality of shampoo. Thus, Chik
Advance Shampoo is for teenagers especially for
experiencing frizzy hair and hair fall.
THANK YOU !
GROUP 2
STEPHEN COVEY
MEMBERS:
Cabbellon, Aireen
Genciane, Erano Jay
Gallemit, Cherry Gal
Calma, Maria Lyzza Jane
Manlangit, Laila Marie
Kong, Krishna
Dumalagan, Krisha Mae
Joe, Ramil
Magno, Daryl
Malantig, Renelyn
GROUP 2
STEPHEN COVEY
