Procter & Gamble revitalizing Pantene brand

Procter & Gamble is looking to volumize sales—and drive incremental sales and higher margins—of its Pantene hair care brand by giving the mega brand a makeover with revamped packaging, enhanced formulas and new brand communication.

According to P&G, the relaunch, which kicked off in late May, is expected to deliver about $100 million in incremental sales over the next 12 months. It is projected that most retailers will see margins increase by three points to five points as a result of the relaunch.

“This brand is rocketing, and we have huge potential to continue to drive that brand even faster,” said Ron Anderskow, category sales manager for the P&G North American hair care business. According to Anderskow, Pantene is a $2 billion business on a global basis.

To achieve such success, Anderskow said the company is applying the same formula that is behind the relaunches of its Head & Shoulders, Herbal Essences and Aussie brands. According to numbers provided by P&G, in the last 12 months sales of Head & Shoulders are up more than $55 million, sales of Herbal Essences are up more than $30 million and sales of its Aussie brand are up more than $19 million.

Behind the category growth strategy is a three-pronged approach that includes trading up shoppers via innovation, bringing in new shoppers (especially premium/salon shoppers) and boosting the market basket.

“There’s an opportunity [for retailers] to continue to drive more dollars and more profitable dollars via the re-stage. Because P&G is already a premium product, this is going to deliver an incremental amount of dollars into the category,” said Anderskow.

To drive shoppers to retail and encourage them to purchase once they are in the store, P&G is boosting its marketing support by 20%. P&G already is the largest marketing spender in the category, and Pantene is the leading brand within that, Anderskow added.

Specifics of the Pantene relaunch include:

New packaging to modernize the brand and enhance shopability;

Upgraded product formulas;

New shapes and sizes of bottles;

The marketing of several different Hero collections to bring new users into the Pantene franchise; and

New “Personal Possibilities” marketing campaign, which will start this month, that aims to create an emotional connection with consumers.

“We have a 360-degree touch point plan that allows us to communicate the message and the benefits of a shopper moving into the Pantene franchise,” Anderskow said.