The problem? La Shampoo’s ability to keep up to date with the demands of the market. La Shampoo failed to comply with the principle component of brand sustainability and growth; the brands need to stay relevant, and what defines relevance changes over time.
La Shampoo had lost its relevance to the market, and as a result customer loyalty was declining. The failure to address the problem earlier also suggests that managerial issues were present. On a more positive note, La Shampoo still has a core group of customers that are loyal. In its efforts to increase market share and boost sales, two radically different recommendations were constructed and presented. One recommendation put forward was Eric’s proposal to compete on price.
Pros Re-launching the brand can give the brand a new spin, meaning it can potentially attract a new customer base. Taking advantage of the current confusion in the market, which relates to the brand loyalty. It could recapture lost position in the market by ensuring their place in the market Give La shampoo the opportunity to reposition itself within the market Cons It takes time and effort, which the company’s resources are dwindling already. Therefore it is a huge risk to the company in terms of financial success.
Due to the problem of a decline in customer loyalty, which in effect lead to a decline in sales of la shampoo, Caroline has to introduce a new campaign that has a sharp enough cutting edge in order to retain pervious customers and attract newcomers. The target market in this case is women aged 15-30 years old.
The strategies that the company needs to implement are; firstly, it needs to eposition La Shampoo into this target segment as a contemporary, high in quality, more valued and a stylish brand. Secondly, as the image of European mystique was no longer relevant in today’s trend thus, the company needs to make an innovation by introducing a new packaging. Thirdly, La Shampoo needs to convey their campaign message by highlighting the product benefits and nutrient in order to represent the customer needs and relevance. This task cannot be achieved in a short time frame in order to form natural part of the consumer’s behaviour over the long term.
Hence the campaign needs to focus on retaining their existing customer by intensively promoting the product benefits along with their closest relationship between their company and customer. The new campaign has to change the former image and adapt to today’s environmental trend. The campaign should highlight the new look of La Shampoo whilst emphasising a better quality and attributes of the product. The message should promote a variety of benefits and nutrients that are contained in the shampoo, and how it still effectively provides remarkable result to the users.
