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Suave(C) Case Analysis - Simple

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Assignment : Case Analysis

Background Analysis
Shampoo market was highly fragmented with lots of competitors and Suave’s Sales had been relatively flat in last few years. Shampoo market was considered mature. Slow growth was predicted in coming five years. This market is taking pace in high and low end products while middle one being squeezed. Retail relationship is constantly important to boost its sales with trade promotion. Despite the highest loyalty for Suave in the past, it got reduced to be just comparable to others.
|Category |Suave |Low-end|
|[pic] |[pic] | |

Target decision
Suave already established firmly low-price brand image on customor’s mind through being $100 million selling brand for last 10 years. Whatever new products named in Suave is hardly repositioned to higher price product and it should be used as strength of Suave. Low-price does not mean low quality. It is just economic and current target, who are 18-49 aged working women, middle income and blue collar occupation, may concern this mostly. (Suave consumers prefered to buying heavy package one) Rather, trier rejectors mainly seemed to worry more about qualtity so it is uneasy to satisfy them by increase in quality of shampoo. For example, their colored hair might need special ingredient to manage it. Segment size itself is smaller than current ont. Thus, keeping current target for Suave is suggested.

Budget decision

$10.2M is prefered. As known in Q3, more advertising expenditure tends to increase profit for low priced product like Suave. Consultants mention that brand awareness for Suave is less than other competitors and Suave

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