论文总字数：35100字

摘 要

截至今日，宝洁已经进入中国近28年。

宝洁（PG）是美国乃至世界最庞大的日化企业之一。与其他外企相比，宝洁对于中国有着更为深远的影响。它的产品潜移默化地改变了一代又一代中国人的生活方式和水平，而它一系列的营销策略，也一直是中国经济学家研究的重点。在本文中，作者将选取宝洁洗发水的营销策略为小切入点，以小见大，进而来分析宝洁28年来在中国的营销策略。

本文将以本土化策略和特劳特定论（杰克 特劳特 1989）为理论基础，主要利用案例分析法进行分析研究。

首先，作者会对本次研究的背景、目的意义和研究现状做以阐述。其次，作者将通过案例分析法得出宝洁洗发水20多年来在中国日化市场来一直保持领头羊身份的原因。接着，作者会根据最新经济数据和报告总结出宝洁洗发水当下困境及其原因，并结合其最新营销案例分析宝洁正在做出的相关策略调整和改进。最后，作者将根据自己的认知，对宝洁洗发水未来营销策略发展做出预测。与此同时，作者希望通过此次对宝洁洗发水营销策略的研究，总结得出一些对中国跨国企业未来发展有益的经验之策。

关键词：宝洁洗发水；营销策略

Table of Contents

Acknowledgements i

English Abstract ii

Chinese Abstract iii

Table of Contents iv

Chapter One Introduction 1

1.1 The background information of the research 1

1.2 The Purpose and Significance of the Research 2

1.3 Literature Review 2

Chapter PG’s Successful Marketing Strategies 4

2.1 Localization Strategy 4

2.1.1 Local Price Strategy 5

2.1.2 Local Product Strategy 6

2.2 Positioning Strategy 6

2.2.1 Multi-brand Strategy 7

2.2.2 Advertising Strategy 8

Chapter PG’s Current Predicament and its Countermeasures 10

3.1 Reasons for PG Shampoo’s Current Predicament 10

3.1.1 Outdated Brands 10

3.1.2 Single Advertising Channel 11

3.2 The Improvement of Marketing Strategies 12

Chapter Four PG’s Future Development and Implications for Chinese Enterprises 15

4.1 The Future of PG Shampoo’s Marketing Strategies 15

4.2 Implications for Chinese Transnational Enterprises 16

Chapter Five Conclusion 17

Appendix I 19

Chapter One Introduction

Before I begin my research on PG’s marketing strategies in China, firstly, I should get to know the background information, clarify the researching purpose and significance, and learn about the current status of my research

1.1 The background information of the research

PG officially went in Chinese market in 1988. In the 1990s, when some cheap local brands, such as Fenghua and Maxam, flooded Chinese daily consumer goods market, it was a proud thing for Chinese to afford to use Head-shoulders (one of the star brands of PG Shampoo). In addition, a large number of undergraduates tired their best to gain an offer from PG Chinese enterprise, because, at that time, working in PG was considered as holding a “Golden Bowl” – a well-paid occupation. Later, during a long period of the first ten-year in 21^st century, PG sustained its fast development and was on a road to becoming the most powerful and competitive company in our Chinese daily consumer goods market.

However, this leader – PG – now is showing its sign of weakness in the Chinese market, according to latest economic researches and data. Known as an enlightener for Chinese daily consumer goods market, PG now faces plenty of unprecedented challenges and difficulties in the increasingly complicated and sophisticated Chinese market.

Based on PG’s current situation, I cannot help raising the following questions? What kind of marketing strategies contribute to PG’s incredible achievements in the past Chinese daily consumer goods market? What are the main challenges and difficulties are PG facing now in China, and where do these challenges and difficulties come from? Has PG already started with reformation and innovation on its own marketing strategies? What is PG’s future in China? In order to deal with all the questions above, therefore, I would like to study the development of PG’s marketing strategies in China in my thesis, and owing to my desire to a more specific study, I choose a small pointcut – PG shampoo – to concentrate on. Moreover, in my opinion, the development marketing strategies of a multinational enterprise is not only an economic issue, but also a process of culture exchange between countries in essence. Thus, as a student of English major, it is worth studying more about PG’s marketing strategies in China.

1.2 The Purpose and Significance of the Research

With the further development of Chinese reform and opening and the acceleration and economic globalization, more and more foreign companies have stationed in China, and at the same time, a large number of Chinese enterprises are going out toward the world market. Compared to some large international enterprises, how could our younger and inexperienced Chinese enterprises find feet and even stand out on the global competition platform is a significant issue. As a result, this thesis will mainly study the marketing strategies of PG – the leader of the daily cosmetics company – in China, aiming at learning advanced and effective marketing strategies, understanding current challenges for transnational enterprises, and trying to come up with the most suitable marketing strategy for our Chinese transnational enterprises. Moreover, the development marketing strategies of a multinational enterprise is not only an economic issue, but also a process of culture exchange in essence. So, this thesis can also help people to obtain more knowledge about the similarities and differences between east and west culture.

1.3 Literature Review

Procter amp; Gamble, as an internationally famous enterprise, is always a focus in the field of the world economy, and its special and effective marketing strategies are also the research priorities for many economists, both at home and abroad.

Studies made by Chinese scholars mainly focused on PG’s Marketing Strategies in China. Many researches were done from the perspective of the “Marketing Mix Strategy” – product strategy, pricing strategy, channel strategy and promotional strategy (Sun amp; Sun, 2008; Zhang, Huang amp; Duan, 2011; Li, 2013). In addition to the 4P strategy, some researchers also put forward PG’s successful “internal competition strategy” (Zhou, 2003), “brand strategy” (Ma, 2010), “word of mouth marketing strategy” (Ren, 2013), etc.

Studies made by foreign scholars mainly focused on PG’s Marketing Strategies in America and around the world. Some foreign researchers cited two important aspects of PG’s Marketing Strategies: innovation and the capacity that ties to the consumer trends which distinguished their go-to-market strategy (Jack, 1999; Michael, 2008). Others mainly contributed PG’s successful marketing to its “brand strategy” (Jack, 2004) which was also mentioned above in Chinese scholars’ researches.Generally speaking, the majority of the studies on PG’s Marketing Strategies are too broad. Only a few chose to make detailed analysis on one specific product field of PG. Therefore, it is worth choosing one product to explore PG’s marketing strategies in China thoroughly.

Chapter Two PG’s Successful Marketing Strategies

In 1988, PG succeeded in breaking into our Chinese daily consumer goods market with its 19-yuan Head and Shoulders shampoos. After that, many other shampoo brands of PG, such as Rejoice, Pantene, and Vidal Sassoon, entered the Chinese market in succession. During a long period of the first ten-year in 21^st century, PG had maintained rapid development in China and its shampoo brands accounted for half of the Chinese daily consumer goods market. According to the Chinese Shampoo Industry Survey Report in 2008, PG occupied over 60% of market share (Mai amp; Zhu, 2011). All the above incredible achievements which PG shampoos gained should be due to their effective and special marketing strategies -- “Localization Strategy” and “Trout’s Positioning Strategy”.

2.1 Localization Strategy

Localization strategy is a process, not a result, of adjusting a product’s functional properties and characteristics to accommodate the language, cultural, political and legal differences of a foreign market or country. The key to localization strategy is that all the business activities should be based on the local consumers.

China is a country with over 5000 years history, profound cultural heritage and a large number of populations. As a result, if a transnational company wants to win the initiative in the highly competitive Chinese market, it must know how to take advantage of localization strategy. The marketing model of PG shampoos is a very typical and successful example of practical use of localization strategy, and PG’s localization strategy mainly reflects in two aspects: local product strategy and local price strategy.

2.1.1 Local Product Strategy

Before being ready to enter a new foreign market, transnational companies will do a lot of long-term researches on the local marketing environment and consuming psychology and behavior, and then grasp consumer demands and trends, thus introducing or producing a series of specific products. This is what we called the local product strategy.

In 1988, firstly, PG used its own brand -- Head and Shoulders to open our Chinese market. During that period, due to the implementation of reform and opening policy, life of Chinese went back in order. But the living standard of people was still comparative low. So, Chinese consumers’ demands for shampoos at that time are not very high. On account of that condition, PG launched the Head and Shoulders shampoo which aimed at helping Chinese to deal with the basic bad dandruff problems, making a great hit on Chinese daily consumer goods market. Soon afterwards, Rejoice appeared in the Chinese market. Like its old brother Head and Shoulders, Rejoice also followed the principle of simplicity and convenience and pushed out the particular all-in-one shampoo according to the hair quality of Chinese people. In 2000, combining the traditional culture of China and the modern culture of American, PG created its most Chinese-featured shampoo called Ascend. It is well known that, since ancient times, Chinese have regarded black hair as beauty. In consequence, Ascend took advantage of this point and emphasized the dark hair theme of its shampoos, thus receiving much support and praise from Chinese consumers.

In addition to realizing localization in the function of its products, the PG shampoo also paid much attention to other aspects, such as the package of products and the name of products. For example, the Chinese names of Head and Shoulders, Rejoice, Pantene, and Vidal Sassoon are Hai Feisi, Piaorou, Panting and Shaxuan respectively. Compared to the stiff word-for-word translation, this kind of free translation from English to Chinese demonstrates PG’s study and understanding of Chinese consumers’ characters, and I think those Chinese-style names are easier to remember and accepted by native Chinese consumers.

2.1.2 Local Price Strategy

Price is one of the most significant elements in marketing strategy, and also what consumers always think about when they go shopping. As a result, local price strategy cannot be ignored by transnational companies.

In the early 1990s, PG shampoos had just come into the Chinese market. During that time, our domestic shampoos such as Fenghua and Haiou often used low price strategy to attract Chinese consumers. However, the package and quality of their products were uncompetitive at all. Faced with that situation in Chinese daily consumer goods market, PG did not choose to wage a price war. Instead, PG caught Chinese consumers’ purchasing psychology at that time – blindly advocating international brands, and used “skimming pricing strategy” – also known as “high pricing strategy” – to sell its shampoo products. This original price strategy helped PG shampoos to take up the Chinese high-end market of shampoos quickly and promised the high-speed development of PG shampoos in the next ten years.

As time moved to the late 1990s, oversupply began to occur in the Chinese daily consumer goods market. Meanwhile, PG high-end market became saturated and was difficult to have further development. Therefore, PG shampoos’ local price strategy in China reached its turning point. Besides maintaining “high pricing strategy”, PG determined to start reducing price of some specific products. For example, in 2001, PG pushed out 9.9-yuan Rejoice 200ml which previous market price was 13.5 Yuan, for preparing to make way into Chinese low-end market. A series of flexible adjustment in price strategy helped to fill PG shampoos’ vacancy in low-end market in China and occupy more market share, thus PG gained more profits.

2.2 Positioning Strategy

Jack Trout, a top marketing strategist and the father of “positioning strategy”, always emphasizes one fact that “the commercial war is not the battle of products, but the battle of mind resources.” (Jack Trout, 1989) So what is “mind resources”? “Mind resources” means consumers’ recognition of products (Jack Trout, 1989). In Trout’s positioning strategy, “mind resources” plays a very important role, and the definition of the so-called positioning strategy is to let your brand occupy the most vantage point in consumers’ minds, and also become the leading brand among the certain kind of products. To sum up, I think, the reason why PG shampoos can dominate Chinese shampoos market is that PG shampoos monopolize almost all mind resources in the industry, and Multi-brand Strategy and Advertising Strategy, which are all under the guidance of Trout’s positioning strategy, are two main methods PG shampoos used to successfully dominating Chinese mind resources.

2.2.1 Multi-brand Strategy

Multi-brand strategy refers to marketing of two or more similar and competing products by the same firm under different and unrelated brands (BusinessDictionary.com), and PG is the developer and the propagandist of this strategy. The true meaning of multi-brand strategy which PG sticks to for years is not just to put different trademarks on similar kinds of products, but to pursue each brand’s distinct characteristic among products of the same category, so that each independent brand will have its own space for development.

Head and Shoulders, Rejoice and Pantene are the “three musketeers” of PG shampoos in China. Although all these three brands specialized in the production of shampoos, I found that they aimed at different segment markets of shampoos. For example, Head and Shoulders shampoos focused on hair dandruff problems of Chinese, whereas the major function of Rejoice shampoos is to make people’s hair gentle and shinning. In addition, Pantene shampoos mainly solved the problems of hair nutrition. Those three different brands of PG Shampoos respectively created their own marketing ideas and management measures at the beginning, trying their best to avoid the coincidence in each different segment market. Over the past 20 years, Head and Shoulders, Rejoice and Pantene went hand in hand in China and firmly occupied consumers mind resources in their own segment market under the direction of Trout’s positioning strategy. For instance, the mind resource that Head and Shoulders shampoos capture was getting rid of dandruff. As a result, all of the operative activities related to this brand for years centered on dandruff problems. The long-term constant reinforcement forced the Chinese consumers to think about Head and Shoulders firstly when they wanted to buy an anti-dandruff shampoo. Meanwhile, I find that consumers also unconsciously added some additional benefits which are usually called “hallo effects”, on Head and Shoulders shampoos. In consumers’ minds, Head and Shoulders shampoos, good at dealing with hair dandruff problems, may be along with other advantages such as good quality, fashion, famous brand, etc. Like Head and Shoulders, Rejoice and Pantene also captured their own consumers’ mind resources. This multi-brand strategy, hardly with market niche, tightly covered all the consumer groups to the utmost extent, thus bringing excellent achievement to PG.

2.2.2 Advertising Strategy

One of PG most used ways to win the market is advertising, and in China, PG have pumped much money in advertising of shampoos because PG clearly knows that the effective promotion of products is essential for raising public awareness and boosting sales. The annual advertising fee of PG shampoos seemed far beyond reach for any other companies in China. Let me take Rejoice as an example. “You can be more confident if you use Rejoice to wash your hair.” Most Chinese were very familiar with this ad slogan because every day we could see about three to four advertisements of Rejoice. It is said that every time when Rejoice launched a new product, it would invite hundreds of national media to attend its press conference. Then its advertisements would be put on influential TV channels including CCTV and go round during the prime time. Such great efforts in propaganda for years have deeply rooted Rejoice in Chinese consumers’ hearts.

The “wild bombing” alone cannot be the key to PG shampoos’ successful advertising in China. Through analysis, I find that all the advertisements of PG shampoos in the past contained cultural connotations of their brands, and PG often combined consumers’ interest appeals and emotional appeals in order to continuously improve its brands’ cultural connotations. Also let me take Rejoice as an example. The interest appeal of Rejoice was “gentle and smooth hair” and the emotional appeal of it was “being confident”. No matter how the expression means of advertising changed, the central point was always connected with these two appeals of consumers. Moreover, Rejoice choice of young and energetic star poster and its various interactive activities stroke a chord with consumers, thus safely controlling its own mind resources.

Chapter PG’s Current Predicament and its Countermeasures

To date, PG has been in China for 28 years. Through observation and analysis, I find that the “former giant” in Chinese daily consumer goods market begins to show a sign of fatigue. It was reported that the sales of PG in China slipped high single digit according to PG latest quarter. The Wall Street Journal revealed that PG new CEO David S. Taylor openly used the word “inacceptable” to describe Chinese market performance, and the market share of PG shampoos has been down from 60% to nearly 50% (Tan, 2016). To sum up, PG is experiencing its toughest time in the Chinese market.

3.1 Reasons for PG Shampoo’s Current Predicament

Faced with this kind of tough situation in Chinese market, PG first needs to know reasons for its current difficulty. Below I will continue to discuss the issue from the perspective of PG shampoos and mainly point two factors -- Outdated Brands and Single Advertising Channel – which in my opinion are two main reasons for PG shampoos current predicament in China.

3.1.1 Outdated Brands

Chinese cosmetic expert Feng Jianjun once said in an interview by China Economic Weekly “PG is facing a crisis of brand aging, and its brands are consider as brands for mother generations by those post 80 and post 90 consumers.” (Hou, 2014) Over the past five years, in the field of hair lotions, PG only launched six new products in Chinese market. While some data shows that in today’s increasingly competitive Chinese market, approximately two new products are pushed out every two hours, and at the same time, two existed products are driven out (Hou, 2014).

Let’s look at a specific example. Rejoice, the first one to produce all-in-one shampoos in Chinese, had received a great success in the past. However, in the 21^st century, the Chinese consumption structure has been upgraded quickly due to the economic development. The pursuit of the convenient and simple all-in-one products has become out of date. More and more consumers begin to look for new derivative products of shampoos such as Hair conditioners, hair essences and hair masks. Although now Rejoice has updated its products, it fails to capture the market opportunities because of its slow response to the market changes. Besides, due to the lack of enough innovation in its products and ways of marketing, Rejoice seems to be uncompetitive compared to the shampoos from Paris L'Oreal and Unilever which currently have strong momentum in Chinese market.

3.1.2 Single Advertising Channel

As I have mentioned in the previous part of this paper, PG shampoos are always known for their heavy investment on traditional media advertising such as television adverting. However, accompanied with the development of new media and the presentence of new promoting forms, the effect of PG shampoos previous advertising has been weakened. According to a survey, in 2013, the time that Chinese consumers spent on digital media exceeded that on televisions for the first time (Zhang, 2014). In other words, more and more people, especially those young generations with great potential purchasing power to PG shampoos, depend on new digital media to get information. But the latest PG annual report shows that only 5% of its advertising cost was spent on the Internet (Shanghai Economy, 2015).

Furthermore, over recent years, there has been a long lack of devotion to the research and innovation on star products of PG shampoos. Under this circumstance, PG shampoos could hardly achieve their expected sales targets by just spending a huge sum of money on TV advertising.

3.2 The Improvement of Marketing Strategies

Facing the present predicament, PG shampoos has already started to make a series of readjustments. According to some latest reports and data of PG shampoos, I think that the key to PG shampoos current readjustment is “innovation”, and this so-called “innovation” can be divided into two parts. One is innovation on new products and brands. PG promises a massive input of manpower and material on the research and development of new products and brands. But this is a long process, and it is difficult to achieve a lot in a short term.

The other is innovation on the existing products and brands, and this part of innovation mainly refers to the improvement of marketing strategies of shampoos. Next, I would like to choose a promotional activity of Rejoice on last Chinese Valentines Day as an example to analyze PG improvement of marketing strategies under the current predicament of Outdated Brands and Single Advertising Channel.

Rejoice is one of the earliest international brands entering the Chinese market. On Chinese Valentines Day, how to stand out among other brands and attract more customers was an important issue that Rejoice should think about. As we all know, Valentines Day is a festival that young people love most, so rejoice must deal with the problem of its solidified image of “a brand for mother generations” and gain appreciation from the young, especially those young girls, who were the target customers in this marketing activity.

After indentifying target customers, Rejoice first made a survey on what current young girls think about and demand. In daily life, all young girls are eager for romantic love. But being limited by the Chinese traditions, they may be not so active in a relationship and prefer an implicit expression of love, such a slight body touch. Therefore, based on the features of its shampoo products, Rejoice raised an idea that touching hair is a new way of showing love and different ways of touching represent different kinds of love. Moreover, the theme – called “Chu Fa Mo Mo Da” (触发摸摸哒) in Chinese -- Rejoice created for this Valentines Day activity is easily accepted by the young because “Mo Mo Da” is harmonic to a popular cyber word in China “Mo Mo Da” (么么哒).

Then, Rejoice changed its single advertising channel and took full advantage of the online channels. On the day before Chinese Valentines Day, Rejoice advertised on the four major online media in China – Iqiyi, Tencent, Sohu and PPTV – in order to arouse netizens’ interest. At the same time, together with yihaodian.com and tmall.com, Rejoice launched a series of activities on the theme of “I want to be on the homepage with my prince”. All these efforts showed that Rejoice tried to make the best use of the communicability of social media to improve the conversion rate of E-commerce and motivate target customers to do the purchase.

In addition, Rejoice took advantage of the popular “fan economy” in the current Chinese market. Rejoice invited a popular star William Chan, to act in the advertising film of this promoting activity. William Chan, a tall, handsome guy with good figure and warm-hearted characteristics, meets all the requirements of a perfect Mr. Right in many young girls’ deep minds. Nowadays, with the popularity of fan economy, it was very sensible for Rejoice to invite William Chan to participate its promoting activity. What’s more, Rejoice set simulating interactive scenario for young customers to communicate with their dreaming price William Chan and used many peripheral products, such as signed postcards as free gifts for customers, for the sake of better marketing effects and lasting publicity of its promotional activity. With the further development of this advertising campaign, a large amount of promotional soft articles created by Internet users appeared on MicroBlog and Wechat. In other words, network users even advertised Rejoice shampoos for free.

With Rejoice hundredfold efforts of improving its marketing strategies, the promotional activity on last Chinese Valentines Day achieved great success. Shampoos on the yihaodian.com store sold out in just one hour, creating a miracle of rapid conversion from social communication to real sales volumes. During the promotional activity, the daily averaged sales volumes of tmall.com store was 400,000 RMB, compared to 80,000 RMB in ordinary days, increasing by 500%, and the daily averaged sales volumes of yihaodian.com store was 400,000 RMB, compared to 13,000 RMB in ordinary days, increasing by 310%. (TMA, 2015) Meanwhile, the CTR (click-through rate) of its special-designed advertising film and the PV (page view) set a new record in market.

Through the above case, I think that although faced with difficulties, PG is struggling to make innovations in every aspect of its marketing strategies and trying to keep up with the pace of Chinese consumers.

Chapter Four PG’s Future Development and Implications for Chinese Enterprises

In the face of both internal problems and external pressure, nowadays, PG shampoos are in a transitional period in China. What the future holds for PG shampoos? In this chapter, I will make my prediction on the development trend of PG shampoos future marketing strategies based on PG’s current predicaments and its countermeasures. What’s more, I want to make some beneficial advice for our Chinese multinational companies from the 28-year development history of PG’s marketing strategies in China.

4.1 The Future of PG Shampoo’s Marketing Strategies

In accordance with the direction of PG shampoos’ reform and recent marketing activities, I think PG shampoos’ future marketing strategies can be divided into following points.

Firstly, PG Shampoos will insist on innovation to cater to target Chinese consumers, and this so-called innovation focuses not only on developing new products or brands, but also bringing fresh energy to the existing old brands by the way of improving marketing strategies.

Secondly, PG shampoos will strive to develop online digital marketing. In an era of the boom of digital wave, more and more Chinese will depend on new social media. Considering PG Shampoos’ correlative investment in today’s market, I believe PG shampoos will have tremendous development space in digital marketing.

Thirdly, PG shampoos will pay more attention to social responsibility such as environmental protection, sustainable development or poverty, thus endowing their brands with new culture relating to Chinese people’s lives.

4.2 Implications for Chinese Transnational Enterprises

From PG shampoos’ marketing strategies in China, what could our Chinese transnational enterprises learn? In my opinion, there are two main points.

Firstly, we should adhere to the local consumer-oriented strategy, or localization strategy. In marketing, target consumers are always of uppermost priority. In order to satisfy the demand of foreign target consumers, localization strategy is an inevitable choice. So far as the status, our transnational operation is still in its fancy. As a result, we have large room for improvement of localization strategy which includes local product strategy, local pricing strategy, local channel strategy and local promotional strategy.

Secondly, we should insist that relentless innovation is the fountain of corporation dynamics. PG shampoos’ successful development in China largely depends on innovation, and their current development bottleneck much owes to the lack of innovation. Therefore, our enterprises mush keep with market changes and have the ability of rapid reform and constant innovation.

Chapter Five Conclusion

The development of PG shampoos in China is a real miracle and has great influence on Chinese people’s lives. The classical ways of PG’s marketing such as localization strategy and positioning strategy have already been written into Chinese marketing textbooks. Particularly worth mentioning is that PG shampoos’ original marketing strategy -- multi-brand strategy, has been labeled as one of the essential rules to successful marketing.

However, the glorious past has become history. In today’s rapidly changing Chinese market, in addition to paying attention to the external pressure coming from other foreign transnational companies and Chinese domestic companies, PG still cannot ignore its inner problems. As far as I am concerned, how to establish new images of PG shampoos’ outdated brands and broaden marketing channels should be seen as the priority in PG’s later improvement process.

Now, PG is in a period of great change in China. Taking the word “innovation” as core, I can see that PG is trying its best to keep pace with Chinese economic development and making continuous improvements in its marketing strategies.

So what is the future of PG in China? Can PG maintain its unshakable market dominance in Chinese daily consumer goods market? I will wait and see.

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