Chapter 14 - Marketing Channels and Retailing

               A Marketing Channel is a set of interdependent organizations that eases the transfer of ownership as products move from producer to business user or consumer. This basically means that it:

• Links producers to buyers.
• Performs sales, advertising and promotion.
• Influences the firm's pricing strategy.
• Affecting product strategy through branding, policies, willingness to stock.
• Customizes profits, install, maintain, offer credit, etc.

TRESemmé has its own set of a marketing channel since they perform sales on their hair products so consumers will most likely buy it more, they make sure that their prices are reasonable so consumers won't have to question themselves as to if buying the product is worth their money, and they have their hair products stocked all the time and make sure they never run out.

                 Having Channel Members helps the company determine the goods and services that goes to the customer. In order to do this, the company needs main members which are retailers, wholesalers, and industrial distributors. TRESemmé has these main members to help distribute their hair products in the hands of their consumers, attracting more of them to buy TRESemmé's products. For example, if there is no intermediary, companies will have more transactions and if a company has intermediaries, then there will be less transactions. The retailers for TRESemmé sell mainly to the consumers, the merchant wholesalers facilitate the movement of TRESemmé's products and services from the manufacturer to producers, resellers, governments, institutions, and retailers. The agents and brokers of  TRESemmé facilitate the sale of a product from producer to end user by representing retailers, wholesales, or manufacturers.
                   The Channel Structures of  TRESemmé for consumer products is different from the industrial products. They each have their own way of determining who the products go to. In the end, TRESemmé's products from consumers will always go to the consumers and in the end, industrial products will either go to the industrial users or government buyers.

                Making Channel Strategy Decisions for TRESemmé is pretty easy. TRESemmé's managers must answer these following questions:

• Who are the potential customers?
• What do they buy?
• Where do they buy?
• When do they buy?
• How do they buy?

These answers will help them sell their hair products in a much simpler way. It is also important for TRESemmé to have a reasonable size for their market. The product's life cycle is an important factor too, TRESemmé can do this by upgrading the hair products that they have and putting the word "New" on their shampoo bottles, conditioner bottles, hairspray, gel, etc. Otherwise, consumers will look for other alternatives.

                TRESemmé's Global Marketing Channels allow the company to sell their products in different countries allowing more sales to occur. It is a good idea for TRESemmé to manufacture abroad because this way they will be able to make more money. Since people are going to be using TRESemmé's products all over the world, then their products will become more popular and be used more.

                 Retailing is basically all the activities directly related to the sale of goods and services to the ultimate consumer for personal, non-business use. When a person goes to the store to buy a hair styling product and buy the brand TRESemmé, they are then involved in retailing. In United States society, TRESemmé is the 2nd top brand for consumers so it fulfills their needs and styles.

                TRESemmé's Classification of Retail Operations would be a drugstore or a supermarket. Stores such a Rite Aid, Duane Reade, Costco, Pathmark, etc. all sell TRESemmé products where consumers can purchase them at anytime. They have a section of beauty products for hair and there will be a whole section of TRESemmé's shampoos, conditioners, hairsprays, gels, etc. This makes it easier for consumers to buy TRESemmé's products since these drugstores and supermarkets are not hard to find. There are also nonstore retailing options that consumers have when buying a TRESemmé product. Instead of going to the store, they can just order TRESemmé's products online with no hassle. This technique also makes it easy for consumers to buy and it is a smart way of retailing. 

                 There is also a Retail Marketing Strategy which allows TRESemmé to select a target market and to develop the retailing mix to successfully meet the needs of the chosen target market. They must know what the consumer wants and expects of their product in order to sell it to them successfully. The price for their products should be affordable and reasonable to the consumer. Also, the atmosphere should have a good impression for the consumers to attract them more. Odor is also very important for consumers because the better the smell of the place, the more people there will be to buy the products since it is another sense of attraction like the atmosphere. TRESemmé's retailers must always adopt new strategies to serve their customers and attract new ones at the same time. This is how they stay ahead of the game in any competition.

             

Chapter 6 - Consumer Decision Making

              Consumer Behavior is one of the most important topics a marketing manager must understand. This determines how consumers make purchase decisions and how they use and dispose of the purchased goods and services. TRESemmé achieves this by choosing the most common problems that people have with their hair and making products that can fix these problems. For example, one of the most common hair problem is frizziness; TRESemmé has products that helps tame frizziness in their gels, shampoos, hairsprays, and conditioners  This influences consumers to buy these products if they have problems with frizzy hair.

               There are 5 basic steps on how a consumer determines which product they should buy by making decisions; This process is called the Consumer Decision-Making Process. The 5 steps are: need recognition, information search, evaluation of alternatives, purchase, and postpurchase behavior. A great example will be a product from TRESemmé which are their hairsprays and gels. As a recognition, the consumer will decide to buy this product if they WANT it, it certainly is not a need but this want triggers the mind of consumers and makes them want to buy the product. It's like seeing an advertisement and wanting that certain product even if it isn't important. As an information search when the consumer recognizes their need or want, for example if a consumer sees a hair product that is very cheap but have not heard of the product before, chances are they will not buy it. TRESemmé is by far one of the most popular hair brand so if a consumer sees this product, they will most likely buy it, especially since it is a salon stylist brand. After getting information and recognition of the product, a consumer will use this information stored in their memory and obtained outside sources to develop a set criteria; This is called evaluation of alternatives and purchases. The consumer will look for more reasons to buy a certain product from TRESemmé making it as logical as possible by comparing the product to other products that are being sold. When a buyer is buying products, consumers expect certain outcomes from the purchase, this is known as the postpurchase behavior. The way these expectations are met all depends on the consumer if they are satisfied of dissatisfied by the purchase. If the consumer uses one of TRESemmé's gel products and it doesn't do what it says it does such as hold the hair throughout the whole day, then the consumers will be dissatisfied which will make them not buy this product again. The person who used this product may also pass on to their friends and families that the product doesn't do as it says, which will cause the product to have less sales. This is a type of situation that a company like TRESemmé must avoid as much as possible by giving their customers a reliable product.

                There are many Factors Influencing Consumer Buying Decisions. They are cultural, social, individual,  and psychological factors that strongly influence the decision process which has an effect on a consumer's stimulus. Cultural factors are one of the broadest and deepest influence. Marketers must understand the way people's culture and its accompanying values, as well as their subculture and social class, influence their buying behavior. TRESemmé will have to find out a consumer's culture of foreign countries and know what is more popular over there. For example, long hair is something that the Asian countries like Pakistan and India most likely strive for. TRESemmé sells a shampoo product that grows your hair faster than usual which looks like this: 

TRESemmé would most likely sell most of these products in Pakistan and India since it is most wanted there. The Social factors are mostly influenced by go social class systems. The upper class is more wealthy and are most likely going to buy more expensive products, maybe not even from TRESemmé because they may be able to afford something more expensive and better. The middle class will most likely buy products from TRESemmé because the prices for their products are very reasonable. The lower class may buy products from TRESemmé is they are able to afford it. It also depends on how each class's lifestyle is like and how each class is influenced. Also, if a family member uses products from TRESemmé, then it is most likely to pass on throughout the whole family. A consumer's buying decisions are also influenced individually, such as gender, age, and life cycle stage; Which also leads to personality, self-concept, and lifestyle. For example, a baby will most likely nice use a TRESemmé product since it is not healthy for their hair. Their products are for teens and older. There are TRESemmé products for both males and females so that is not a problem. Choosing a TRESemmé product also depends on a person's lifestyle or personality if they like their products and the smell of it is important too since it attracts buyers. Psychologically, a consumer will most likely buy a product if they hear that it is great from other people. They can also check online to see the reviews of certain products. TRESemmé has a lot of their products on the internet with reviews from people like us. You just have to be careful because not every product with reviews are a fact.

Chapter 5 - Developing a Global Vision

           Global Marketing is the process of marketing that targets markets throughout the world and has become an imperative for business. Having a Global Vision is important for a company because it's the process of recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets. TRESemmé is already on track with their global vision. They sell their products all around the world and have gained revenue from their international sales. TRESemmé has higher aspirations compared to other salon-brand companies. The owner of TRESemmé Casey Keller says, "Our positioning of professional performance at an affordable price is really hitting a sweet spot right now for women.", which is a great way of attracting more sales. TRESemmé, according to market research firm Symphony IRI, had sales of $211 million, only $10 million behind premium brand Garnier Fructis (made by L'Oreal), for a one year period from July 11, 2009 to July 11, 2010.

Citation: http://www.brandchannel.com/home/post/2010/09/01/Tresemme-Growth-Plans.aspx

              Multinational Corporations are heavily engaged in international trade, beyond exporting and importing. They move resources, goods, services, and skills across national boundaries without regard to the country in which its headquarters is located. TRESemmé is known as a multinational corporation. In fact, the company Unilever in general sells their products all around the world. They also make their products in other countries. TRESemmé's products are used in hair salons across the United States, Canada, United Kingdom, and Asia in particular to hair repair treatment that usually forms from heat damage caused by hair ironing and blowdrying. TRESemmé is actually one of the most well-known multinational corporations around the world.

           

           In order for TRESemmé to achieve a good External Environment Facing Global Market, they would need to understand what is going on around their surroundings outside of the company. This includes good customer service and competition.

           There are various ways on entering the Global Marketplace. The number one reason why companies "go global" is to earn additional profits from their products. TRESemmé is part of this technique. They are engaged in exporting, licensing, contract manufacturing, joint venture, and direct investment of their products. The least risky is the exporting of their products to different countries and the most risky is the direct investment. Since TRESemmé does all of this, they are known for entering the global marketplace.

           Being involved in a Global Marketing Mix is a must to succeed. The three P's are very important to keep in mind: Price, Place, Promotion, Product. TRESemmé sells their items in foreign countries having the prices vary depending one where the product is being sold. For example, one of TRESemmé's shampoos will cost less in the United States compared to it being sold in the United Kingdom since their currency level is higher. The place in which their selling their item effects the marketing mix too. TRESemmé will need to go through a study on what the country is most likely interested in and the type of hair problems people in the country most likely have so they can sell the right product there. If TRESemmé gets their studies on individuals right, then they will most likely get a promotion for their hard work and achievements.

            The Internet has a impact on global marketing. Just by going online, you may see ads of certain types of things which is a normal thing. This is known as internet advertisement that the company pays for their ads to go viral on the internet. They know that billions of people surf the web everyday and many will see their products posted on ads. TRESemmé has done a lot of this advertising with their hair products in several websites. This is one of the best ways to get their products to sell.

Chapter 4 - The Marketing Environment

           TRESemmé's Target Market is known to be a professional and affordable salon standard brand which tends to attract a buyer's attention, especially for those who have "damaged hair". Their goals are to build and maintain successful relationships with their customers. 

           In order for this company to plan for the future, they need to understand the way an External Environment works. TRESemmé has to collect and evaluate data from people like us. They need to know what their customers like and what they do not like and try to sell a product that people will most likely buy to make sure that they are ahead of the competition.

           There are a few Social Factors that effect this company. They know how to influence consumers to buy the products that they make and how to sell them for a great price at the same time. This brand has been gaining share for a long time that it has become the number 2 brand in a crowded $6 billion United States mass hair-care market this year. They have achieved this goal because they know the values that Americans want in order to be satisfied for what they buy. A lot of their shampoo bottles use less plastic now to help the environment since consumers are also pursing ways to become more self-sufficient.

           TRESemmé's Demographic Factors are included in many of their products. They sell products that are significant for people's statistics such as age, race, ethnicity, and location. They sell a shampoo and conditioner that is tended to make your hair stronger so it doesn't fall out easily. As you get older, your hair falls out more due to stress, etc. so consumers who are aging and stressing out are more likely to buy this shampoo. They also have a hair spray that helps tame the frizziness of a person's hair due to humidity which usually occurs during the summer time. People with frizz will most likely buy this product since it says it's salon professional.

           You may see that sometimes a product is way more expensive than a different product that is way more cheaper. If you see a shampoo that is $40 and a shampoo that is only $10 which are you most likely to get? Many will get the $10 shampoo because it is cheaper and people can afford it. This is where the term Economic Factors comes from. You have to focus on the consumers' incomes, inflation, and recession. This is another reason why TRESemmé's products are great because they are CHEAP, affordable, and they work just as likely as a professional product works. Why spend a lot of money on a product if you can but one that works just the same and the other but costs less?

           Having Technological Factors is very important for a company. In order for TRESemmé to know what is going on in our society, they would need to apply research to develop new or improved products to keep on track of the competitive advantage. They create better products this way and it may render existing products. They have already done this with many of their hair products, which explains why they are still ahead of the game.

Citation: http://adage.com/article/news/marketing-tiny-tresemme-rising-top-hair-care-heap/145573/

Chapter 3 - Ethics & Social Responsibility

           Ethical behavior is very important to have in every marketing company. It is the pure fact to what is the right thing to do and what is the wrong thing to do for a marketer. When a product is sold by Unilever, they do not lie about the reasons to why it may be good for you, that would lead them to have a bad moral and will make consumers dislike them. They are wise about selling their products to others, this company has more of a conventional mortality. Unilever's code of ethics "applies to the senior executive, financial and accounting officers, and it comprises the standards prescribed by the U.S. Securities and Exchange Commission (SEC); it provides the provisions of Unilever's code of business and the more detailed rules of conduct that goes with it." They have their own way of ethical decision making and they are pretty good at having consumers by their products. 

Quoted Citation: http://www.unilever.com/investorrelations/corp_governance/unileverspolicies/index.aspx

           Unilever has a sense of sustainability since it demands that "human resources should be managed in a way that maintains workforce capabilities and employee satisfaction and it excels in their sustainability philosophies. " (as quoted from the book on Chapter 3, page 41). Unilever's sustainability mission is to create better futures for the customers, retailers, economy, and the environment. The diagram above shows how this is possible. The critical involve process for the sustainability of Unilever has to do with raw material, manufacturing, producing, and the supplier. They also go by what the people want because they know that is how they will keep their company alive since they are listening to the people, which is a very wise thing to do.

Citation: http://prezi.com/mhd-fwgjqsqd/ethical-unethical-of-unilever/           

  

            My company's main focus is going to be on the brand TRESemmé. Unilever manufactures and sells this product. This product makes shampoos, conditioners, hairsprays, gels, etc. It is also not expensive and gives you professional hairstyle looks. The information that I have written above relates to this product because they come from the same company. They make sure that their company is satisfied and deserve the best-looking hair. Who needs to spend hundreds of dollars when you have
My company's main focus is going to be on the brand My company's main focus is going to be on the brand  My company's main focus is going to be on the brand TRESemmé?

Chapter 2 - Strategic Planning for Competitive Advantage

            Like every other Marketing company, Unilever goes through a strategic planning process in order for their products to be sold. Since this company owns many of the world's consumer products, they have to advertise their products as much as they can so people can be convinced in buying them. They are already ahead of the game since they are a very well-known brand.
        Unilever does all this in order for their company to grow and expand more throughout the world. They need to advertise in order to keep their company alive and working. This company has to have basic key components that will influence customers to buy their products more, some examples that they need to have are: vision, mission, values, and strategy. A sales person can't just go up to a customer and try to influence them to buy something that they DO NOT want to buy, which explains why they have to evaluate the situation first as if the person is interested in the product or not. Then they have to target that specific individual who is interested and try to get them to buy the product.
        Unilever's basic strategic planning is advertising, this is how they get their customers to buy products that they are selling.

Chapter 1 - Brief History and Mission Statement

           Unilever was founded in 1930 by a soapmaker named Lever Brothers and a margarine producer named Margarine Unie. This company has brought many successes in our society due to the amount of sales they have made and are still making. It is on the role of being an important listing on the London Stock Exchange. They are still continuing to achieve their goals by satisfying customers who buy their products.           
           Unilever is a multinational consumer goods company. It is in charge of many types of products such as foods, beverages, cleaning agents, and personal care products that we usually find in our local grocery stores and may use in our everyday lives. This company is also one of the world's third-largest consumer goods company and is also known as the world's largest maker of ice cream. Unilever is also part of over 400 brands; some of the high-trended and well-known brands are Ben & Jerry's (ice cream), Dove (soaps, shampoos, and chocolate) Hellmann's (mayonnaise), Knorr (food), Lipton (tea), Sunsilk (shampoo), and TRESemmé (shampoo and other hair care products). 

           
Citation: http://en.wikipedia.org/wiki/Unilever