英國的頭發護理行業的市場集中度較高，是一種典型的壟斷競爭市場。有一定的差異，不同的產品特性的存在，他們每個人都有不同的消費群體和市場空間。以洗發水市場為例，寶潔的四大品牌：飄柔，海飛絲，潘婷形成集團優勢，他們已經采取了市場的第一級和占領市場份額的50%左右。聯合利華、絲寶集團的品牌如夏士蓮力士，在二級市場，占約20%的市場份額。一些英國的國內品牌在第三級。這一級市場呈現品牌、實力較弱的大量的一個突出特點，和當地的競爭是非常激烈的（P & G的年度報告，2010）。基于市場結構，寶潔的產品差異化的戰略選擇。以頭發護理產品市場為例，寶潔在頭發護理產品市場領域的突出，其產品銷售超過50%的總的國內市場份額。寶潔對消費者需求的洗發水市場調查，它填充不同性能的產品，進行營銷推廣的成功。飄柔集錦，產品能給頭發光滑的感覺；潘婷注重營養與保健功能；海飛絲定位是其強大的抗頭皮屑功能；對主要消費群體是年輕白領。
Procter & Gamble (P & G for short) was founded in 1837, during 2010-2011 financial years, the company’s annual sales was 79600000000 dollars. During the ten years when P & G entered into Chinese market, through the implementation of product differentiation strategy, P & G occupied half of Chinese hair care industry (as shown in Figure 1) (Ming, 2011). The concentration rate of the market of China’s hair care industry is higher, it is a typical monopolistic competition market. There is certain difference existing in characteristics of different products, each of them have different consumer groups and market space. Taking shampoo market as an example, P & G’s four brands: Rejoice, Head & shoulders, Pantene form group advantage, they have taken the first level of the market and occupied the market share of 50% or so. Unilever’s and C-BONS Group’s brands such as Hazeline, Lux are in the second level of the market, occupying around 20% of the market share. Some China’s domestic brands are in the third level. Market of this level shows an outstanding characteristic of a large number of brands and weak strength, and the local competition is very intense (P&G Annual Report, 2010). Based on the market structure, P & G selects product differentiation strategy. Taking hair care product market as an example, P &G is outstanding in the field of hair care product market, its product sales exceeds 50% of total domestic market share.  P & G undertook careful market research on consumer demand for shampoo, it packed products of different performance and carried out marketing promotion to achieve a success. Rejoice highlights the smooth feeling that products can bring hair; Pantene focuses on nutrition and health care function; Head & shoulders positioning is its powerful anti-dandruff function; VS’s main consumer groups are young white-collar workers.  http://www.ttc-switch.com/thesis_sample/guanlileizuoye/
  

飄柔的定位是提供一種柔順的感覺，其銷量在全國排名第1，它屬于典型的大型產品，飄柔具有較高的性價比，它也具有品牌優勢和龐大的銷售，限制利潤其他大多數國產品牌在這一領域，P＆G的空間，利用其規模優勢的領域迅速占據了很大一部分市場。頭和肩膀，并潘婷屬于以利潤為基礎的產品，抗-頭屑，頭和肩膀的利潤和銷售領域是最高的，但其整體的銷售是不會飄柔一樣大，但它的利潤空間遠遠大于飄柔的。
Rejoice’s positioning is to offer a pliancy feeling, its sales volume ranks No. 1 in the country, it belongs to the typical large scale products, Rejoice has a high performance-price ratio, it also has brand advantage and large sales, limiting the profits of space of most other domestic brands in this field , and P & G uses its size advantage to occupy a large part market of the field rapidly. Head & shoulders and Pantene belong to profit-based products, in the field of anti-dandruff, Head & shoulders’ profits and sales are the highest, but its overall sales is not as large as Rejoice’s, but its profit space is far greater than Rejoice’s. Similarly, Pantene is also outstanding in hair protection and has enormous profit margin. P & G’s takes VS as its representative, its main positioning is fashion and trend, it is clearly positioned in the high-end consumer groups (China Hair Care Market Report, 2009). Judging from P & G’s existing products, they are distributed reasonably, each of them take the leading position in their respective fields, it is difficult for them to have a rival.  Although it is the enterprise’s overall strength which leads to the situation, its product differentiation strategy including precise positioning, effectively playing advantages of its various products to avoid strife among its brands and defeat competitors effectively is also an important factor for the success .

Therefore, the study of P & G’s product differentiation strategy's success is propitious to promoting its successful experience to help other enterprises which get into a price war to find out coup to go out of the quagmire, which is also the realistic significance of this study. In addition, P & G has achieved great success in Chinese market, it does not mean that there is no potential rivals, it also has its competitors such as Unilever, C-BONS Group, etc., these groups also take the product differentiation strategies which are similar to P & G’ strategy, in hair care industry, they have also launched many products to meet consumers’ personalized demand, their product differentiation strategies also have unique characteristics when they compare with P & G’s strategy, which has caused great shock in P & G's market share. In 2011, although the sales of P & G’ hair care products still ranked the first in Chinese market, but its profit growth rate was lower than the other two groups, during the latest three years, the average growth rate of P& G’s market profit in China was about 5%, Unilever’s and C-BONS Group’s profit growth rate have reached 15% and 20% (Ming, 2011). This indicates that the competitive advantage that P & G’ product differentiation strategy brings may be offset by its competitor, it must modify the content in its product differentiation strategy which does not have the unique to maintain and consolidate its leading market position (Williams and Jone, 2012). Thus the practical significance of this paper also lies in that it is through this study to investigate the deficiency in P & G's product differentiation strategy to put forward recommendations on its product differentiation strategy.