Report On

Consumer Behavior and PONDs

Subject:
Consumer Behavior
Submitted to:
Maam Rabia Khand
Submitted by:
Aneeka Niaz
MBK-M-12-04
MBA (B&F) Morning
3rd Semester
Date of submission:
17-12-2013

ALFALLAH INSTITUTE OF BANKING AND FINANCE
BAHAUDDIN ZAKARIYA UNIVERSITY
MULTAN


PONDs
Pond's makes sure that you don't forget to smile at the mirror every day and praise your own
beauty!
PONDs promise:
The PONDs promise has remained the same across 58 countries for over 167 years:
To deliver beauty transformations through revolutionary product innovations that make
a real difference to women's skin and the way they live their lives.
A rich heritage:
CARING FOR YOUR SKIN SINCE 1846
PONDS HISTORY:
PONDs Cream was invented in the United States as a patent medicine by pharmacist Theron T.
Pond (18001852) of Utica, New York, in 1846. Mr. Pond extracted a healing tea from witch
hazel which he discovered could heal small cuts and other ailments. The product was named
"Golden Treasure." After Theron died, it would be known as "PONDs Extract."
In 1846, the "T.T. Pond Company" was formed with Pond and other investors. Soon after, he
sold his portion of the company because of failing health. He died in 1852. In 1914, the company
was incorporated under the name "PONDs Extract Company".
In 1886, PONDs began to advertise nationally. They advertised under the name of PONDs
Healing until 1910.
1910s:
By 1910, PONDs was a well-established brand among Americans. Concentrating mostly on
their vanishing cream, the PONDs company began an ad campaign that would become
notorious because of the celebrities involved in it. "PONDs Healing" took a back seat to
"PONDs Vanishing Cream", as "PONDs Healing" and "PONDs Cold Cream" would be
announced in small print under the "PONDs Vanishing Cream" advertisements.
By 1914, mentions of "PONDs Healing" were taken off the ads, and the PONDs company
began to advertise "PONDs Vanishing Cream" and "PONDs Cold Cream" together, making
sure to explain each cream's different purposes on the new ads. One particular ad line read
"Every normal skin needs these two creams". As a result of the new campaign, "PONDs
Vanishing Cream" had a 60% increase in sales during 1915, and "PONDs Cold Cream" had a
27% increase.
1920s
By 1922, sales of the products had gone down, as many believed that such an easily available
product could not perform as well as other, "designer" products. Because of this, the PONDs


Company then targeted royalty, politicians and people of high class stature to become advertisers
for the company. In addition, these ads were printed in magazines to give customers a feeling
that they really were getting a quality product for a fair price.
In 1923, Queen Marie of Romania visited the United States, and she enjoyed the product so
much that in 1925 she wrote to the PONDs Company requesting more supplies. Her letter was,
in turn, used for advertisement, and Her Majesty joined the list of celebrities who had previously
sponsored the products.
Around the time of Queen Marie's visit to the United States, the PONDs Company began to
place samples of their products at their magazine ads, and the characters of "Peter" and "Polly
PONDs" were created, as part of their campaign to induce normal people into buying their
cream again. The marketing strategies proved successful, as sales of the PONDs facial creams
went up again.
Now PONDs is a brand of beauty and health care products, owned by the multinational
company Unilever.

UNILEVER MISSION STATEMENT:
Vitality is at the heart of everything we do. It's in our brands, our people and our
approach to business.
PONDS IN PAKISTAN:
Over the years no one has cared for women skin more than PONDs. Since 1991, UPL extended
its brand portfolio to serve better. No wonder it has been passed on from generations to
generations with the same affection that the product stands for.
However, with time PONDs has evolved according to your changing needs thanks to the
PONDs Institute a state of the art research center. Inspired by women needs, the PONDs
Institute over the years has undertaken several research projects with women to better understand
of what they think and want for their skin.

PRODUCT VARIETY RANGE AND ITS CHARACTERISTICS:
PONDs Gold Radiance:

The rich and luxurious lather of the Radiance Revealed Facial Foam
gently clean your skin while restoring its natural, youthful glow.




PONDs Age Miracle:
Deeply cleanses skin to remove dead skin cells and impurities
Thing of beauty is a joy forever: its loveliness increases; it will
never pass into nothingness.
A woman can surely keep one secret the secret of her age

PONDs Flawless White Range:


With PONDs Flawless White range, skin will become radiantly
white and clear of spots and blemishes. Flawless White delivers
fairness in just few days.

PONDs Flawless White Naturals:
Containing the extraordinary Camellia Leaf Extract, this foaming
cleanser deeply cleanses the skin to wash away dirt and oil. Use
every morning and evening as the first step to the skin care
routine.

PONDs Flawless White Natural day cream:

Reveals your natural fairness! Your natural fairness is hidden by a layer
of dark skin cells - PONDs White Beauty cream helps to remove these
cells to give your complexion a pinkish white glow.


PONDs moisturizing cold cream:

Moisturize with PONDs to keep your skin from getting dry.



PONDs face wash range

EVALUATION OF CONSUMER BEHAVIOR:
Ponds are making new differences by introducing products which meets high customer
expectations. PONDs, has been listening to womens needs and desires for 150 years and
delivering new products customized to their needs
PONDs facial skin care product line has been designed so that there is something for every
woman, whether she is 20 or 60 years old. PONDs facial skin care products include such as Day
and night creams, special treatments, eye creams, and facial masks, exfoliating cream, facial
Cleansers, make-up removers and toners. PONDs has different product lines for both young
women whose skin needs a lot of moisture and also older women who are concerned with aging.
PONDs is moving towards molding consumer behavior and making sustainability, a driver of
everything, so that each time a consumer chooses one of PONDs products, it improves their life,
their community and the world we all share.
Their innovations build leading brands and develop capacity to meet consumer needs for
nutrition, hygiene and personal care and Building better lives for sustainable future.
RESEARCH METHODS AND PROCESS:
A combination of qualitative and quantitative approaches was pursued. In-depth interviews with
consumers were used to discover relevant attributes of PONDs skincare products. A consumer
survey was employed to measure relative importance and relative performance of the identified
attributes a basis for determining PONDs customer perceived value.
CONSUMER NEEDS AND WANTS:
Products survival, profitability and growth in a highly competitive market depends upon its
ability to identify and satisfy unfulfilled consumer needs better and sooner than competitors.


By innovations in its product range PONDs is trying their best to fulfill consumer needs.
Women of modern world are greatly conscious about their beauty and their age, by introducing
PONDs age miracle range and other beauty products PONDs made a distinctive image in the
minds of women as a product which fulfill women beauty needs better and sooner than others.
SEGMENTATION OF PONDS:
One of the methods to have deeper understanding on consumer behavior is by using market
Segmentation. PONDs has large market segment as it targets housewives, students, professionals with
its extensive care and treatment products. It has earned huge reputation because of the results it is
delivering. In the early 1950s the target group that PONDs was aiming are the ladies above 30yrs of age.
PONDs is aiming at the super premium segment. Currently PONDs target ladies above 20 years
TARGETING OF CUSTOMERS:
The next challenge for the marketer is to select one or more segments to target with an
appropriate marketing mix.
PONDS TARGETED DEMOGRAPHICS:
Gender: Women Age Group: 25-65
Location: Metros, Cities & Larger towns
Income Slab: 50 thousand and above.
Psychographics: Confident decision makers Love to socialize, go outdoors and enjoy life.
BRAND POSITIONING:
To pull the emotional connect of the PONDs and promote PONDs Age Miracle as the best
choice for Anti-Ageing cream among women and other beauty products as a products which
cares for women beauty PONDs build a distinctive image in the minds of women. Pond's uses
the baseline "As beautiful as you want to be It is one of the best baselines currently on air. It
tries to redefine beauty as something more than superficial. Today Ponds has spread its wings to
cover anti- ageing, skin lightening, oil-control, moisturizing and other skin requirements and
used as a synonym for skin care made for the beauty conscious well grounded, self-assured, and
confident women.
PROMOTIONAL ACTIVITIES:
The baseline of PONDs cold cream quote; Googly Woogly Woosh.
PONDs have used campaigns and events.
The song 'Roop ki Dhoop' has been created as the beauty anthem
PONDs uses the baseline quote; as beautiful as you want to be .
Conduct different events to create and capture the beautiful moments in the life of the


Women.
Another strategy is surprise gifts i.e.
Buy any 100 gm. or 400 gm. PONDs talc pack, tear off the contest strip and see what luck has
in store for you.
CONSUMER PERCEPTION ABOUT PONDS:
The beauty practices have changed over time. Earlier hygiene was only an issue with common
woman, beauty reasons were limited to royalty and super stars. Today, women are becoming
increasingly conscious about their beauty. Women are becoming increasingly conscious about
their personality in society and thus, inclination towards beauty and wellness products.
PONDs philosophy depicted through advertisements have generated immense confidence
among women. Many popular advertisements such as googly woogly woosh show people
seeing innocence and having close moments by pinching cheeks. The important aspect of their
marketing agenda is that they meet the goals in practical way by celebrating womanhood. It
depicts its products as instrumental in making people happier, contented. It energizes to create
and see surprises again in life.
BRAND EXTENSION:
Brand extension strategies are used largely by companies because they believed that the brand
extension strengthens the brand positioning improves the brand awareness and enhances the
quality associations and increases the trial rate by reducing the perceived risk involved in the
new product. It is reported that more than 80% of new products additions are using brand
extensions strategies. A brand extension into same product and new product category enhances
and improves their market share and brand equity in the long run. New products are getting
relatively easy acceptance among the target audience. A good brand association reduces the
chances of failure of new product launch.
GROWTH STRATEGY:
PONDs brand is operating in premium product segment so it is targeting particularly
premium customers who are ready to pay for quality.
Widening product range under PONDs brand.
Engaging in building brand loyalty by various promotional programs.
A good research and development center in place which is constantly trying to innovate
new products.
BRAND EXTENSION OPPORTUNITIES FOR PONDS:
Started off with creams.
The evolution of skin care market gave them an opportunity to stretch into:-


Talcum powder
Lotion
Face wash
Black head remover strips
FUTURE BRAND EXTENSION OPPORTUNITIES OF PONDs
1. Beauty Soaps:
Ponds as an established skin care brand have an opportunity to expand itself in the field of
beauty soaps. Many other established brands like Dove have been successful with such extension
in their product portfolio. Ponds also have a benefit of its umbrella brand of Unilever Pakistan
Limited for marketing their products.
2. Perfumes/ Deodorants:
Ponds can also enter into the category of body sprays like perfumes and deodorants. Pond
products are well known for its fragrance. They have a nice opportunity to establish as a brand
through extension into the category of body sprays.
3. Hair Care :
Brands like Dove, LOreal, Lakme, etc. are some examples of brands that have been successful
in extension of their brand in the category of hair care products.
4) Foot care:
They also have an opportunity to win a market share by introducing foot care products for
women especially in winter season.
BRAND INNOVATIONS:
PONDs new products meet advanced requirements of women in India which include fairness,
anti-aging and skin rejuvenation. As compared to many other beauty products, PONDs has
continued its research and brought scientific and advanced skin solutions. Their continued
journey shows rapid innovations from cold cream, vanishing cream to wrinkle free creams, skin
lightening, skin glowing and brightening creams.
Their products are free from any dye, harmful chemicals, bleach agents and use nutritional,
therapeutic and cool agents to provide us exceptional results as promised. Their cleaners, also
signifying their horizon not limited to beauty externally, give hygiene a priority. It is now easy to
remove dirt and pollutants with antibacterial face wash.
LATEST INNOVATIONS:


PONDs Men is the latest innovation of PONDs Institute, as a result of a series of research
about mens skin and consumer research regarding the needs of modern men.
As a brand that always prioritize scientific research and consumer needs, PONDs found out that
men and womens skin difference are not only from the skin anatomy. The main problems are
the tired and dull looking face, so they need different face skin care with women. They want to
look both bright and energized. The modern men needs are different due to their lifestyle, which
demand them to look best and energized every time. These are why PONDs Men develop
PONDs Men Energy Charge as the top variant, which makes their face both bright and
energized to help men in creating maximum first impression at all time.
LAUNCHING OF NEW PRODUCTS BY PONDS:
Following are the points considered by PONDs while launching new Products:
Meet a genuine consumer need:
Products that meet a genuine consumer need have a basis for long-term consumer interest and
purchase. Sometimes those needs are latent and are created with an innovation in the market. As
PONDs create a need for aged women by launching its new product with the name of PONDs
AGE MERICAL RANGE and new beauty products for men.
Strong price-value relationship:
Consumers generally want to make the best buying decision possible for the money. If the
product solves a need and performs well but the cost is too high, the customer will look
elsewhere. That is why the price of the PONDs new products are in proportion to the problem or
need it meets.
Proper positioning and differentiation:
Many times there is a great product that performs well, but the message to the customer is
wrong. Precise positioning of the product to the customer can make the difference between
success and failure. PONDs products have a unique positioning in customers minds that
differentiate it from other products.
Carefully targeted advertising.
Once the proper message is determined and to whom it should be communicated, sometimes the
media used doesn't communicate the message well, doesn't reach the target market, or is too
poorly targeted to reach the target economically. The message and the media need to be carefully
planned.
CUSTOMER RETENTION STRATEGY:
Their products on the go helped women and girls around world to keep clean of dirt, cleanse it,
and get rid of oil.


There is also emergence in trend of beauty regimen practices which made people opt for their
specific products. PONDs diverse solutions are perfect for different skin types and each woman
can find consultant online to seek personal solutions for the skin of her type.
Their websites are developed for different countries to signifying different needs and comes with
online help guidance. In social sync, they have around 700 beauty experts around the world on
Facebook and Twitter to raise awareness about their brand and beauty practices.
BRAND PERSONALITY:
Beauty is not only about skin but celebrating a persona. This persona is identified as loving wife,
doting daughter, caring mother, strong boss and helpful friend in society. Women in Pakistan
choosing PONDs products have come a long way in reflecting these qualities and thus,
associated with brand image of themselves. It is a brand that has tried to evolve with the
changing persona of Pakistani Women.
Due to ever-increasing demands, PONDs has emerged as trusted leader by creating innovative
scientific product so that women can lead and build better world.
BRAND IMAGE IN CUSTOMER MIND:
PONDs have a strong image in customers mind with following characteristics:
Consistent Quality.
Constantly Improving.
Changing with times.
Latest technologies.
Effective ingredients.
Unique fragrances.
Reasonable Price.
BRAND LOGO:
In 1960s the distinctive PONDs Tulip logo is born, and has stayed with PONDs ever since.

PONDs Tulip Logo



PONDS COMPETITORS ANALYSIS:
PONDs has competitions from,
1. Johnson & Johnson
2. LOreal
3. Garnier
4. Olay
Regarding cosmetic products, consumers often associate price with high quality and safety.
Therefore, price is important to the image of the product and perception of consumers toward the
brand. As a result, the actual competition happens among products belonging to the same range
of price. Because of time and resource limit, we only select Olay UV Whitening Cream UV and
Ever soft White Effects as two main direct competitor of PONDs Flawless White since they are
premium but attainable products belonging to the medium price range (Rs.1000 to 1500).
SOME FUN FACTS OF PONDS:
A brand that has tried to evolve with the changing persona of Women.
This is a brand that has celebrated Women's courage and personality.
PONDs also became a generic name in the winter care market.
PONDs is one of the most trusted brands among the women.
MARKETING MIX FOR PONDS:
THE PLACE:
'Place' is concerned with various methods of transporting and storing goods, and then making
them available for the customer. Getting the right product to the right place at the right time
involves the distribution system
With distribution being restricted to specialty beauty and wellness chains (which are very few in
number) and through lifestyle stores, the PONDs premium products are being made available at
100 distributor outlets, which should go up to 200 by the year end, across the top 30 cities.
THE PRICE:
Pricing is the most important factor in our marketing mix. Price is really determined by the
discovery of what customers perceive is the value of the item on sale. Researching consumers
opinions about pricing is important as it indicates how they value what they are looking for as
well as what they want to pay. PONDs pricing strategy will be such that is fair to the
customers, as its objective is to attain customer loyalty.
Objective is to attain customer loyalty.
Fair to the customer.


Price ranges from 400-500.
Acceptable by customer.

PROMOTION STRATEGY:
A sales promotion strategy is an activity that is designed to help boost the sales of a product or
service. It includes,
Advertising campaign,
Public relation activities,
A free sampling campaign,
A gift campaign,
Demonstrations and exhibitions,
Prize giving competitions,
Temporary price cuts, and
Through door-to-door sales, telemarketing, personal sales letters, and emails.
FACTORS EFFECT SALE PROMOTION STRATEGY:
A sales promotion strategy is important to a business boosting its sales. While developing a sales
promotion strategy for the product it is important to keep the following points in mind.
Consumer attitudes and buying patterns,
Brand strategy,
Competitive strategy,
Advertising strategy, and
Other external factors that can influence your products availability and pricing.
STRATEGY USED BY PONDS
A 'pull' sales promotion strategy:
This strategy focuses more on the consumer instead of the reseller or distributor. This strategy
involves getting the consumer to 'pull' or purchase the product/services directly from the
company itself. This strategy targets its marketing efforts directly on the consumers with the
hope that it will stimulate interest and demand for the product. This pull strategy is often used
when distributors are reluctant to carry or distribute a product.
For Example: Ponds offer low introductory prices to the customers like in case of their new
product AGE MIRACLE, They give some complementary gifts.


THE PRODUCT:
The product is the central point on which marketing energy must focus. Finding out how to make
the product, setting up the production line, providing the finance and manufacturing the product
are not the responsibility of the marketing function. However, PONDs is concerned with what
the product means to the customer. Marketing therefore plays a key role in determining such
aspects as:
The function of the product - products must address the needs of customers as
identified through market research.
Product sizes - 20 Grams 50 Grams 100 Grams 400 Grams.
Appearance of the Product - in line with the requirements of the market firstly the
PONDs cream bottles consisted of small, glass bottles with a round cap. The bottles
could be recognized by their distinctive colors, usually in green, blue or white and red.
That bottle design is still in use by the PONDs brand.
Product range - The product range and how it is used is a function of the marketing mix.
The range of PONDs products is broadened or extended for tactical reasons, such as
matching competition or catering for seasonal fluctuations. Alternatively, it is also
repositioned to make it more acceptable for a new group of consumers as part of a long-
term plan.
PONDS FLAWLESS WHITE PRODUCT LIFE CYCLE:
On the introduction stage and during its first launching, PONDS only product was PONDS
Cleansing Face Soap. Along with its progress, in growth stage up till maturity stage, PONDS
has created innovation in producing night cream and fleck remover cream which has succeeded
in the market, called: PONDS FLAWLESS WHITE.

The new flawless Radiance Range


PONDS FLAWLESS WHITE PROMOTIONAL STRATEGIES &
TACTICS:
1
st
Strategy:
Enhance PONDS brand loyalty and trustworthiness amongst its customers and new customers.
Tactics:
1. Promotion: Creating events based on customer care. For example: skin tests in various
department stores attended by public figures. These events should be made as astonishing
as possible to attract attention.
2. People: These events should be served by beautiful SPGs (Sales Promotion Girl) who
have adequate knowledge in PONDS products.
3. Physical Evidence: The set building and decoration of the events should be made
suitable for PONDS target market. Mostly with the colour of pink, red, and white;
similar to the packaging of PONDS products.
2
nd
Strategy:
Increase in sales to a great extent.
Tactics:
1. Price: With the exact same price, PONDS should make a BUY 2 GET 1 FREE
promo. This would make the customers purchase not only one single product, but two at
the same time.
2. Distribution: Broaden the distribution of PONDS products also in less popular towns
and in smaller cities throughout the country by building sales agents.
3. People: Because PONDS is new to these cities, the sales agents and also the new
customers should be provided with product-trainings. This would make the products
become user-friendly and create a bond between PONDS and its customers.
3
rd
Strategy:
Increase the brand image of PONDS as well as to increase sales by creating the extravagant
event of Miss PONDS 2014.
Tactics:
1. Promotion: This event of the year should be made extravagant and shown live on
television stations. The registries could only enter into the competition by filling a form
attached to PONDS products. This aim to increase sales.
2. People: The public figures who have starred in various PONDS advertisements should
be brought together in this event. The winner of Miss PONDS 2014 would be the
ambassador of PONDS of the year.


ADVERTISEMENT:
Advertising is the means of informing as well as influencing the general public to buy products
or services through visual or oral messages. A product or service is advertised to create
awareness in the minds of potential buyers. Advertising is actually brand-building through
effective communication and is essentially a service industry. It helps to create demand, promote
marketing system and boost economic growth. Thus advertising forms the basis of marketing
PONDS ADVERTISEMENT CAMPAIGNS:
By 1910 the PONDs company began an ad campaign under the name "PONDs Vanishing
Cream", as "PONDs Healing" and "PONDs Cold Cream" would be announced in small print
under the "PONDs Vanishing Cream" advertisements. By 1914, mentions of "PONDs Healing"
were taken off the ads, and the PONDs company began to advertise "PONDs Vanishing
Cream" and "PONDs Cold Cream" together, making sure to explain each cream's different
purposes on the new ads.

PONDs print ad for vanishing cream, 1910 1917 advertisement

CONCLUSION:
After analyzing all the things have conclude that the promotional strategy is very important tool
of marketing in todays market scenario. It is very helpful to improve the image of
company/product in the eyes of customers. Promotional strategy is a best medium to send the
message to the customers by advertisement. Advertisement is important to build the image of
product in the eyes of customers. Without advertisement or sales promotion we cannot reach the
customers and send them to message. These strategies are also important to increase the sale of
products of any company.


MAJOR METHODS FOR ADVERTISING USED BY PONDS:
E-mail messages
Magazines
Newspapers
Television ads
FIGURE AND GROUNDS:
To boost Sales across Metros, cities and larger town.
To acquire higher market share PONDs is using advertisements with effective figures and
grounds which prove helpful to get advertising Objectives.
For example advertisement for PONDs age miracle with effective figure and ground plays a role
in increasing the sale of the product.
Scene 1: Two couples sitting in a house & talking about their NGO 1st Guy: We need two
young face to represent our NGO, kyun k logo ko aaj kl sirf youth hi chahiye. 2nd Guy:
Actually people only listen to the young & only understand their language. Both wives look to
each other & one of the wife say that you dont need to worry about young face, soon you will
get them bas hum dono pe chhor do. (After a month) Creative Storyboard
Creative Storyboard Scene 2: (Written below the video After a month): Both the couples
represent their NGO in a college with full enthusiasm Husband of 1st lady to the other husband:
Confidence dekh rahe ho in dono mein. 2nd husband: Age ke saath confidence bhi wapis aa
gaya. (Both smile looking to each other)
SWOT ANALYSIS OF PONDs:
A SWOT analysis determines a ptoducts position by examining 4 factors Strengths
Weaknesses Opportunities Threats Strengths and weaknesses are said to be internal, that is,
controlled by the company. Opportunities and Threats are outside the company's control and are
therefore said external.
STRENGTH:
PONDS has many good quality products which care for and restore the skins natural
balance. The varieties include Cleanser Shaker, Facial Foam, and Night Cream.
PONDs products are free from toxic and mercury.
PONDs products are easy to be found in department stores.
The packaging of PONDS products are eye-catching, suitable for its target market who
are feminine and place beauty in priorities.
Excellent advertising and branding as PONDs is one of the most recognized brands


WEAKNESS:
PONDS FLAWLESS WHITE only has one size of packaging. This may trouble the
consumers who would like to buy a bigger size one, and the new consumers who would
like trials.
It has only one fragrance.
The distribution of PONDS FLAWLESS WHITE is not quite well-spread. It has not
reached traditional shops in the remote villages of the country.
The price of PONDS FLAWLESS WHITE is quite high.
Intense competition in the cosmetics industry from international brands
OPPORTUNITIES:
PONDS is popular in customers which would bring trustworthiness if PONDS is to
launch another chain of its products.
PONDS still has a large opportunity to market its products to areas and countries
throughout the world.
Expansion of cosmetics industry into semi-urban and rural areas of the country
Targeting audience from all age groups
THREATS:
Affordable price of internationally well-known cosmetics.
There is a growth in the number of people who put their trust more on skin-care doctors.
There are people who misuse the packaging of PONDs to be exchanged with other
products with less quality.
High price for the products can limit potential consumers
Cosmetic Care still not a market in rural parts of the country
Availability of cheaper products from other brands in the market
Conclusion:
With these developments, there is no surprise in fact that there is an increase in share value of
Ponds in market. The story that started earlier than 167 years by introducing first-ever skin cream
has seen tremendous growth. It is exceptional in way that it has continued its well-marked niche
in the cosmetic line by adding new smiles every day.