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Consumer products giant, The Procter & Gamble Company (PG - Analyst Report) recently launched two lines of premium hair care products, Pantene: AgeDefy and Advanced+ Keratin Repair, under its famous Pantene Expert Collection. The company also announced that, from October 2012, the brand Pantene will be endorsed by Courteney Cox, the famous actor who portrayed Monica Geller in the award winning comedy “Friends.”

The new products have been developed using Pantene’s advanced technology and ingredients. Pantene AgeDefy consists of shampoo, conditioner, masque and thickening treatment. The products are meant to address seven hair problems that come with ageing: breakage, split ends, frizz, unmanageable grays, lackluster or dull hair; lack of volume and dryness.

On the other hand, Pantene Advanced+ Keratin Repair line is meant to tackle the problem of extreme hair damage caused by chemical processing and styling. Keratin is a very important hair protein, loss of which leads to weak and damaged hair. With the Triple Blend technology, Pantene Advanced+ Keratin Repair products help to repair damaged hair and protect it from any further damage. The Triple Blend technology contains three polymers, which improve the health of the hair.

Pantene Advanced+ Keratin Repair product line consist of shampoo, conditioner, Pantene Advanced+ Keratin Split End Fuser, and Pantene Advanced+ Keratin Repair 60-Second Therapy Ampoules.

The Procter & Gamble Company is known for its impressive product development capabilities and marketing prowess. Innovation is the driving force behind the company and it has had a strong tradition of not only introducing new products but also creating entirely new categories.

In the recent times, medical advancements have increased life expectancy. However, people are not willing to accept the consequences of ageing. As such, with the growing number of middle aged consumers in the market, there is a huge demand for age defying products.

On the other hand, there is a constant pressure to look good and as a result of pollution and constant use of chemicals for coloring and styling, hair tends to get damaged easily. The latest line of products addresses these issues and caters to the growing demand for age defying and damage control products. The company has also maintained strong marketing strategies by engaging Courteney Cox as the face of the brand.

We appreciate the company’s strategy of product innovation and its strong market share. However, we are concerned about the company’s performance in the near future, owing to high commodity costs and sluggish growth in the developed nations due to weak economic conditions. The Procter & Gamble Company carries a Zacks #3 Rank that translates into a short-term ‘Hold’ rating.
 

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