Pantene PESTLE Analysis

Published by MBA Skool Team, Last Updated: January 26, 2020

PESTLE Analysis of Pantene analyses the brand on its business tactics. Pantene PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as Pantene, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the Pantene PESTLE Analysis:

Political Factors:

The political factors in the Pantene PESTLE Analysis can be explained as follows:

Pantene is a product owned by Proctor and Gamble and since the company operates across various countries it is bound to follow the rules and regulations that are relevant to trading in these territories. Political factors influence the day to day operations of the company, and the stability that extends in these regions also matters. A recent example of instability caused by politics is the Brexit. There have been speculations related to the policy change and the dilemma still persists with continuing delay in the result. The new regulations post the result of Brexit may cause a decrease or increase in sale of the product. The change in tax policies, among the various supply countries will affect the profitability of the company. The reduction in the corporate tax, especially in India has opened up a chance for Pantene to increase its production capacity, in order to produce at lower rates and increase its profitability. The more the stability of the government, the higher is the ease of working in that region.


Image: Wikimedia


Economic Factors:

Below are the economic factors in the PESTLE Analysis of Pantene:

The Pantene product ranges from regular to professional range and targets different segments of the society. The regular products get affected by various factors such as the increase or reduce in the disposable income of the individual, whereas the premium products are less affected by the change in pricing since the customer base for these products is more affluent. The increase in production and penetration of the market in a more aggressive manner has led to an overall increase in the profitability of the company. The diverse markets that the company operates in, has led to development of new products that fall under different economic categories, thus giving Pantene an opportunity to capture a larger market. The requirement for more organic products has opened up the gates for expansion, and with the future generations moving towards a more sustainable and green future, these products may give the company an opportunity that it can leverage to expand and increase profitability.


Social Factors:

Following are the social factors impacting Pantene PESTLE Analysis:

Pantene produces many products that relate to different customers differently. It claims to have something to satisfy everyone’s needs. Pantene has always proven to be the best in understanding the needs of the various customers. Based on the insights provided by its customers, it works towards developing new products to satisfy these needs. These gaps that are identified in the market by this customer driven organization, enable it to compete better. There are various new products launched by the company over the past decade, prove the company’s competency in identifying the needs of the consumer. The trends among the youth have been changing every day, but some issues remain constant. Picking up on these trends Pantene has launched a campaign recently that puts emphasis on freedom for women in choosing a life for themselves. The company through the campaign has tried to empower women and change the status quo of men dominating women in the certain parts of the society. The company has been working on creating sustainable packaging to accommodate the needs of the modern customer, that are linked to cleaner and greener planet. With these advances already undertaken, the company yet has some areas that may explore, to keep competing strongly.


Technological Factors:

The technological factors in the PESTLE Analysis of Pantene are mentioned below:

Pantene believes in utilizing technology for efficient its operations, marketing and consumer sales. Analytics has been a major game changer in the industry, and Pantene has made sure that it utilizes this trend to the fullest in order to reap higher benefits through sales. The company has been able to better forecast the demands of the consumers in different regions and streamline their distribution channels accordingly. With increase in online market, the need for analytics has further enhanced and the future seems to hold tremendous potential for analytics in predicting the trends. The company has adopted new technology that allows it to utilize plant based plastic bottles for its shampoo and conditioner products. Along with sustainability, Pantene has managed to make a mark on the society as a responsible brand. With continuous efforts, research and development, the company can make a bigger difference to the society.


Legal Factors:

Following are the legal factors in the Pantene PESTLE Analysis:

Avoiding lawsuits is a major concern for a company of this scale. Once the brand name is tarnished, a lot of money gets invested in improving the standards back to normal. The company also needs to comply with the various labor laws that prevail across the various countries, where it operates. There are various obligations related to the product composition that need to follow, especially in the US and the European countries. The company needs to keep a constant tab on all its products to avoid lawsuits. A recent example is when a customer took up social media to claim that her Pantene shampoo had been contaminated with Nair and was losing hair. Walmart refused to take any responsibility for the same, and this raised questions on Pantene as a product. Earlier in 2016, a salon expert complained that her client had a hair burn during her coloring treatment. Though these case may have gone viral on social media, they have been forgotten about, but the time period in which these cases were active, they tarnished the name of the product and thus the company should keep a constant tab on the quality of its products to avoid future lawsuits.


Environmental Factors:

In the Pantene PESTLE Analysis, the environmental elements affecting its business are as below:

Pantene has undertaken various initiatives to make an impact on the society by trying to be more sustainable and efficient. They wish to establish a cyclical process for all their products, such that waste generated is minimal. In order to do so, P&G has joined hands with other firms to use recycled products. The once pilot project has now turned into a reality, and P&G has managed to convert 9 of its products including Pantene, into the refillable and reusable container category. This helps the company reduce waste by recycling the used containers. Pantene has become the first mover for plant-based plastic. It has employed this new packaging material in order to preserve the environment, while abiding by the UN goals that state a reduction in the use of plastic.

To conclude, the above Pantene PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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