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Comprehensive SWOT Analysis of Sunsilk – One of World’s Largest FMCG Brand

by | Case Studies | 0 comments

In our previous blog, we did an End-to-End SWOT Analysis of one of the top 10 US Hair Care Brands, Pantene. Here we will be doing a Comprehensive SWOT Analysis of Sunsilk.

Sunsilk is one of the largest FMCG brands in the world. It is also one of the best shampoo brands in the world.

Sunsilk has gained such large success in the market. It has marketed its brand with some unique marketing strategies. As most people are on digital platforms it is essential for every business to take its business online. If you want to know what is digital marketing and how to use it to your advantage  – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Thus this makes us eager to know how Sunsilk gained such large success in the industry, here we have done a Comprehensive SWOT Analysis of Sunsilk. Before we start with its SWOT Analysis let us know about Sunsilk as a company, its products, competitors, and its financials.

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About Sunsilk

Sunsilk is a well-known brand in the fast-moving consumer goods industry. Frоm the hоuse оf Hindustаn Unilever, it is the рорulаr brаnd in the hair саre segment like hаir shаmрооs аnd wоrks with vаriоus brаnd nаmes аll оver the wоrld.

Sunsilk was first launched in the U.K. in 1954. In 1955 Sunsilk did his first advertising campaign on television and later on, now Sunsilk uses various new means for promotion like TV, Social Media, etc. 

It has also launched an online campaign for the all-girls community (named Gangs of Girls) to create awareness among the target audience.

Sunsilk is a well-known multinational brand whose products are designed to address problems and satisfy the needs of customers. As a result, it offers a diverse selection of products, primarily Shampoos, and Hair Conditioners, to cater to the various demands of different hair types.

 

Quick Stats About Sunsilk
Founder NA
Year Founded 1954
Origin United Kingdom
No. of Employees 100
Company Type Subsidiary
Market Cap NA
Annual Revenue $13.6 Million (2020)
Net Loss NA

 

Products of Sunsilk

Sunsilk has a large audience in the market thus to keep them attracted they provide them with different products. Following are some of the products that Sunsilk provides:

  • Shampoo
  • Conditioner

SWOT Analysis of Sunsilk | IIDE

Close competitors of Sunsilk

Sunsilk is a widespread company all over the world thus it faces large competition in the market. Following are some of the competitors that Sunsilk faces:

  • Pantene.
  • Dove.
  • L’Oreal.
  • Neutrogena.
  • Garnier.
  • Kerastase.
  • Head and Shoulders.
  • Tresemme.

 

Now that we got a brief about it as a company let us start with the SWOT Analysis of Sunsilk.

 

SWOT Analysis of Sunsilk

SWOT analysis is the best way for a company to know what it can improve in the business and what it needs to take care of. With the SWOT analysis, we can come to know the Strengths, weaknesses, opportunities, and threats of Sunsilk. 

Let us start with its SWOT Analysis by first looking at the Strengths of Sunsilk.

 

Strengths

Strengths are the factors that help Sunsilp grow in the market. These are the positive factors of the company. Following are the Strengths of Sunsilk:

  • Unique – Sunsilk uses the unique strategy of bringing the hair care experts to design out the hair shampoo and uses the Global hair expert to endorse the product. By using this strategy Sunsilk naturally becomes the hair care expert in the world. And by using the word “expert” in their products, which carries the weight, people positively look forward to the product.
  • Market Leader – Sunsilk is the market leader in various countries across the globe. And it is the number one hair shampoo in countries like India, Pakistan, Bangladesh, Brazil, Argentina, Bolivia, Sri Lanka, Indonesia, Thailand. In essence, it has created a very strong network in Asia, the Middle East, and Latin America, also capturing the markets by selling its products on e-commerce platforms, websites, and social media platforms.
  • Endorsement and Brand Ambassadors – Sunsilk uses many top celebrities like Priyanka Chopra, Madona as Brand Ambassadors. Apart from celebrity brand ambassadors, they now employ hair experts as Brand Endorsers, who use testimonial marketing to testify that the product is best. It never ceases to gain and maintain brand awareness through efficient marketing initiatives.

 

Weaknesses

Weaknesses are those aspects that make Sunsilk lose its lead in the market. These problems need to be addressed as soon as possible so that it doesn’t cause trouble in the future. Following are some of the weaknesses of Sunsilk.

  • Competition – Sunsilk is one of the top brands in the hair care segment. For maintaining the majority part of the vast market area in the hair care segment, Sunsilk needs to keep advertising and that is where the major expenses occur and besides advertising, distribution is the second cost that eats up margins a lot.
  • Differentiation – The differentiation of the product is the most problematic thing, because of the numerous product in the Hair Care segment. There is a consumer choice because many brands offer shampoo and other care and beauty products. When there are so many other strong competitors, it can be difficult to distinguish one brand from another.
  • Brand Switching – Due to differentiation, the number of people switching brands is increasing day by day, resulting in the cost of acquisition remaining higher. Because once you acquire a customer, the customer might shift to another brand quickly. Differentiation also causes a drop in Brand Loyalty.

 

Opportunities

Opportunities are the factors that create an opening for Sunsilk to grow in the market. It needs to find out these opportunities in the market and try to capture them and make them their advantage. Following are some of the advantages of Sunsilk:

  1. Men’s Segment – Sunsilk is a brand meant for women, and with the fastest growing men’s care segment there are great opportunities and a lot more to explore on with shampoos for men as it will open a new market for Sunsilk.
  2. Geographic Expansion – As new countries are growing there is an opportunity for brands to move from saturated economies to developing economies. This will keep the brand in the growing stage and also help in minimizing the risk. 
  3. Social Media – To build brand awareness and prominence, one must be active on social media platforms, as practically everyone is drawn to the freshness that comes from there. Sunsilk can use intriguing campaigns and commercials to attract more potential customers using social media platforms such as Instagram, Facebook, and YouTube.
  4. Development and Cooperations – The beauty and cosmetics sector is always in the midst of a rapidly, ever-changing environment. Every shampoo and hair care product has been updated. This enables Sunsilk to continually expand and upgrade its product portfolio in order to stay up with the quick speed of change and consumer entertainment.

Making new partnerships with organizations and industries like hotels, beauty centers, fashion, and educational institutions, among others, is a tremendous opportunity for Sunsilk shampoos. This will improve the company’s brand awareness and have a beneficial impact on annual revenue.

 

Threats

Threats are the factors that create a hazard for a company in the future if proper precautions are not taken. Sunsilk needs to be aware of such events and take proper measures to tackle them in the future. Following are some of the threats that Sunsilk may face:

  1. Rising costs – Due to the outbreak of Covid-19 almost every country was thrown into chaos. On the one hand, concerns relating to inflation rates are likely to arise, causing the costs of raw materials is rising it also affects other operations of the brand. New conditions and laws are applied differently in different nations, posing additional barriers to the company’s operation. As the cost rises, the cost of distribution and marketing also rises.
  2. External and Internal competition – Many Brands have to face this type of competition, just as Sunsilk has a dilemma internally within Hindustan Unilever, it has competition from Dove, Clear, and Clinic Plus, and externally it has competition with Pantene and Head & Shoulders.
  3. Distribution – Sunsilk Shampoos are available in many countries, but they are primarily available in urban areas. Rural distribution routes are underdeveloped, which could pose a threat to the brand if other branded rivals’ items are discovered.

 

With this, we come to an end of the SWOT Analysis of Sunsilk. This study helps the brand to analyze its position in the market and help them understand what it should improve.

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Conclusion

On the study of the SWOT Analysis of Sunsilk, we have known that it is one of the top brands in its industry. It provides unique products and is the market leader in some of the countries. It can expand its business in other geographical locations and also enter the men’s segment. Even with these strong points, it lags in some places.

It should increase the frequency of marketing digitally with the campaigns globally to create a better digital presence and to cut off the competition by influencing the minds of consumers by frequent advertisement. As most people are using digital media, it is essential for every business to make a strong digital presence of its business thus digital marketing is very essential. If you are interested in learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

If you would like to read such detailed analyses of companies, find more such insightful case studies on our IIDE Knowledge portal.

Thank you for taking the time to read this, and do share your thoughts on this case study in the comments section below.

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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