Behavioral Drivers of Brand Equity - Head & Shoulders in India SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study SWOT Analysis Solution
Case Study Description of Behavioral Drivers of Brand Equity - Head & Shoulders in India
"What are the nuances that link brand positioning, brand associations and brand equity related aspects of a brand performing successfully in the market?" especially in an emerging market such as India is a question that triggers many approaches among academics and practitioners. Head &Shoulders brand from Procter and Gamble is a multinational brand that had grown rapidly in the Indian context after displacing a well-entrenched brand of shampoo. The brand's effective positioning had struck a chord with consumers and had sustained its success over a period of time. With several competitive brands entering the well-advertised category of shampoos, the brand manager for Head &Shoulders felt that its positioning though effective cannot last forever and wanted to find out if the brand's positioning could be strengthened. Besides the analysis of thr regular brand positioning strategies, the company felt that a study on consumer behavior could provide useful pointers to the alternatives of brand positioning with respect to Head &Shoulders when studied with its competitive brands. The results of the study provided interesting but challenging results that made brand repositioning more complex than what the brand manager had assessed. The case study highlights the importance of consumer behavior when brands decide to reposition themselves in a dynamic environment. Furthermore, the case also draws on the implications of brand positioning and consumer behavior on the qualitative dimensions of brand equity.
Swot Analysis of "Behavioral Drivers of Brand Equity - Head & Shoulders in India" written by Loveneet Tyagi, S. Ramesh Kumar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Brand Shoulders facing as an external strategic factors. Some of the topics covered in Behavioral Drivers of Brand Equity - Head & Shoulders in India case study are - Strategic Management Strategies, Customers, Emerging markets, Market research and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Behavioral Drivers of Brand Equity - Head & Shoulders in India casestudy better are - – increasing household debt because of falling income levels, increasing transportation and logistics costs, there is increasing trade war between United States & China, there is backlash against globalization, cloud computing is disrupting traditional business models, digital marketing is dominated by two big players Facebook and Google, supply chains are disrupted by pandemic ,
competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Behavioral Drivers of Brand Equity - Head & Shoulders in India
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Behavioral Drivers of Brand Equity - Head & Shoulders in India case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Brand Shoulders, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Brand Shoulders operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Behavioral Drivers of Brand Equity - Head & Shoulders in India can be done for the following purposes –
1. Strategic planning using facts provided in Behavioral Drivers of Brand Equity - Head & Shoulders in India case study
2. Improving business portfolio management of Brand Shoulders
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Brand Shoulders
Strengths Behavioral Drivers of Brand Equity - Head & Shoulders in India | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Brand Shoulders in Behavioral Drivers of Brand Equity - Head & Shoulders in India Harvard Business Review case study are -
Training and development
– Brand Shoulders has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Behavioral Drivers of Brand Equity - Head & Shoulders in India Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– Brand Shoulders is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Loveneet Tyagi, S. Ramesh Kumar can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Sales & Marketing industry
– Behavioral Drivers of Brand Equity - Head & Shoulders in India firm has clearly differentiated products in the market place. This has enabled Brand Shoulders to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Brand Shoulders to invest into research and development (R&D) and innovation.
Ability to recruit top talent
– Brand Shoulders is one of the leading recruiters in the industry. Managers in the Behavioral Drivers of Brand Equity - Head & Shoulders in India are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Brand Shoulders digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Brand Shoulders has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Successful track record of launching new products
– Brand Shoulders has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Brand Shoulders has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Organizational Resilience of Brand Shoulders
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Brand Shoulders does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Brand Shoulders is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Brand Shoulders is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Behavioral Drivers of Brand Equity - Head & Shoulders in India Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Brand Shoulders in the sector have low bargaining power. Behavioral Drivers of Brand Equity - Head & Shoulders in India has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Brand Shoulders to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Brand Shoulders has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Behavioral Drivers of Brand Equity - Head & Shoulders in India HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Effective Research and Development (R&D)
– Brand Shoulders has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Behavioral Drivers of Brand Equity - Head & Shoulders in India - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
High switching costs
– The high switching costs that Brand Shoulders has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Weaknesses Behavioral Drivers of Brand Equity - Head & Shoulders in India | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Behavioral Drivers of Brand Equity - Head & Shoulders in India are -
Need for greater diversity
– Brand Shoulders has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Interest costs
– Compare to the competition, Brand Shoulders has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Aligning sales with marketing
– It come across in the case study Behavioral Drivers of Brand Equity - Head & Shoulders in India that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Behavioral Drivers of Brand Equity - Head & Shoulders in India can leverage the sales team experience to cultivate customer relationships as Brand Shoulders is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Behavioral Drivers of Brand Equity - Head & Shoulders in India, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Low market penetration in new markets
– Outside its home market of Brand Shoulders, firm in the HBR case study Behavioral Drivers of Brand Equity - Head & Shoulders in India needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Brand Shoulders supply chain. Even after few cautionary changes mentioned in the HBR case study - Behavioral Drivers of Brand Equity - Head & Shoulders in India, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Brand Shoulders vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Brand Shoulders has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Workers concerns about automation
– As automation is fast increasing in the segment, Brand Shoulders needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Behavioral Drivers of Brand Equity - Head & Shoulders in India, in the dynamic environment Brand Shoulders has struggled to respond to the nimble upstart competition. Brand Shoulders has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, Loveneet Tyagi, S. Ramesh Kumar suggests that, Brand Shoulders is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Lack of clear differentiation of Brand Shoulders products
– To increase the profitability and margins on the products, Brand Shoulders needs to provide more differentiated products than what it is currently offering in the marketplace.
Opportunities Behavioral Drivers of Brand Equity - Head & Shoulders in India | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Behavioral Drivers of Brand Equity - Head & Shoulders in India are -
Better consumer reach
– The expansion of the 5G network will help Brand Shoulders to increase its market reach. Brand Shoulders will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Brand Shoulders to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Brand Shoulders can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Brand Shoulders can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Brand Shoulders can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Brand Shoulders can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Behavioral Drivers of Brand Equity - Head & Shoulders in India, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Buying journey improvements
– Brand Shoulders can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Behavioral Drivers of Brand Equity - Head & Shoulders in India suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Learning at scale
– Online learning technologies has now opened space for Brand Shoulders to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Loyalty marketing
– Brand Shoulders has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Using analytics as competitive advantage
– Brand Shoulders has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Behavioral Drivers of Brand Equity - Head & Shoulders in India - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Brand Shoulders to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Creating value in data economy
– The success of analytics program of Brand Shoulders has opened avenues for new revenue streams for the organization in the industry. This can help Brand Shoulders to build a more holistic ecosystem as suggested in the Behavioral Drivers of Brand Equity - Head & Shoulders in India case study. Brand Shoulders can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Brand Shoulders can use these opportunities to build new business models that can help the communities that Brand Shoulders operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Manufacturing automation
– Brand Shoulders can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Brand Shoulders can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Threats Behavioral Drivers of Brand Equity - Head & Shoulders in India External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Behavioral Drivers of Brand Equity - Head & Shoulders in India are -
Environmental challenges
– Brand Shoulders needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Brand Shoulders can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Brand Shoulders will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Brand Shoulders.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Behavioral Drivers of Brand Equity - Head & Shoulders in India, Brand Shoulders may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Brand Shoulders needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Brand Shoulders is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Brand Shoulders business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Brand Shoulders has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Brand Shoulders needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Stagnating economy with rate increase
– Brand Shoulders can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Brand Shoulders demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Brand Shoulders
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Brand Shoulders.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Brand Shoulders can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Behavioral Drivers of Brand Equity - Head & Shoulders in India .
Weighted SWOT Analysis of Behavioral Drivers of Brand Equity - Head & Shoulders in India Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Behavioral Drivers of Brand Equity - Head & Shoulders in India needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Behavioral Drivers of Brand Equity - Head & Shoulders in India is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Behavioral Drivers of Brand Equity - Head & Shoulders in India is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Behavioral Drivers of Brand Equity - Head & Shoulders in India is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Brand Shoulders needs to make to build a sustainable competitive advantage.