Group 7

Veron M987Z210

YosephM987Z213

Bee

M987Z220

Ken

M9870114

DuyM987Z218

Moon M987Z241

OutlineOutlineIntroductionBC-18 in USA MarketThe situation in Europe in

1988What is ‘Roll out’ Launch?Pricing and Packaging

StrategiesSWOT AnalysisLong term marketing

objective in EU MarketAnswering QuestionsConclusion

Procter & Gamble touches people’s lives over two billion times every day!

INTRODUCTION

P&G History: A Legend of Firsts1837 Brothers-in-law William Procter and James Gamble start a partnership,

making and selling candles and soap in Cincinnati

1859 P&G sales reach $1 million

1879 The inexpensive, but high-quality Ivory soap is introduced

1924 P&G is one of the first to create a market research department to study consumer preferences and buying habits

1955 Crest, the first toothpaste with fluoride clinically proven to fight cavities, is introduced

1961 Pampers is introduced and eventually replaces cloth diapers

1980 Sales reach $10 billion

2002 P&G develops Naturally feminine pads specifically to meet the needs of low-income women in Latin America.

2005 High Frequency Stores, Consisting of nearly 20 million stores across the world, FS represents a particular opportunity in fast-growing low income markets.

Today P&G operates in 80 countries worldwide, employing more than 100,000.Has 13 billion dollar brands in its portfolio: Charmin, Tide, Pantene, Iams, Folgers, Crest, Olay, Always, Ariel, Bounty, Downy, Pringles, Pampers.

ProductAriel  is a brand of laundry detergent. Actonel is a brand of osteoporosis drug.Bounty (paper towel) sold in the United

States, Canada, and the United KingdomBraun is a small-appliances manufacturer

specializing in electric razors, coffeemakers, toasters, and blenders.

Crest is a brand of toothpaste.Dawn is a brand of dishwashing detergent.Downy/Lenor is a brand of fabric softener.

Product (Cont)Duracell is a brand of batteries and flashlights.Fusion is a brand of men's wet shave razors and

is the quickest P&G brand to have reached $1 billion in annual sales.

Gain is a brand of laundry detergent and fabric softeners.

Gillette is a safety razor manufacturer.Head & Shoulders is a brand of shampoo body

wash, and deodorant.Old Spice is a brand of aftershave and shaving

cream.

Product (Cont)Ivory is a soap.Nice 'n Easy is a hair coloring product.Olay is a brand of women's skin care products.Oral-B is a brand of toothbrush.Pampers is a brand of disposable diaper.Pantene is a brand of hair care products

(conditioners/styling aids).Prilosec OTC is a brand of heartburn medicine

co-marketed by AstraZeneca.Pringles is a brand of potato chips.

Product (Cont)Puffs is a brand of facial tissue.Secret is a brand of antiperspirant and

deodorant.TAG is a deodorant and body spray.Tide is a brand of laundry detergent.Vicks is a brand name of over-the-counter

medicines (Formula 44, Sinex, NyQuil/DayQuil)Wella is a brand name of hair care products

(shampoo, conditioner, styling, and hair color).Whisper is a brand of pantyliners sold primarily

in Asian markets.

PRODUCTIvory Olay

Target market is familiesProducts: Body soap,

body washes, dish soap, Sold in Grocery stores,

Costco, Walgreens etc.Priced low

Target Market is WomenProducts: face washes

and lotions, sunless tanners, anti-aging products, body lotions, body washes

Sold in grocery stores, Target, Wal-Mart, etc.

Little higher priced compared to similar products

PRODUCT (Cont)

Zest Noxzema

Target market is young adults who are active and on the go

Products: Scented bars of soap and body washes

Sold in again Grocery stores, Costco, Wal-mart, Target etc.

Priced low

Target Market is teenagers and young adults

Products: deep cleansing face pads, astringents, face wash, face lotions, deep cleaning masks

Sold similar stores as Olay products

Price low

Body Wash and Soap SegmentPart of the Personal &

Beauty line of productsEarliest products of

P&G was soapsHad 50 different types

of soaps at one timeNow has a select few

brands

Family of ProductsPersonal & Beauty

- Cosmetics, Oral Care, Hair Care

House & Home- Laundry care, Dish Soap, Snacks & Coffee

Health & Wellness- Prescription drugs, Health Care

Baby & FamilyPet Care & Nutrition

BC-18 in USA Market

In 1986 The Company develops a new technology that enables consumers to wash and condition their hair using only one product. Pert Plus/Rejoice shampoo quickly becomes one of the leading worldwide shampoo brands. (BC-18)

Pert Plus was to take over the leading value position in the US shampoo market, with market share at least 10% by the end of fiscal year 1989.

BC-18 in USA MarketBC-18 in USA MarketPert Plus was positioned

as the shampoo that offered attractive hair in a convenient way.

Long-term Marketing goal: to take over the leading value position in the USA shampoo market.

The situation in Europe in 1988The situation in Europe in 1988Steady growth of shampoo market &

conditioner alsoEurope 44% USA

New potential: more crowed and many different countries than US

There were price different between brands with the same quatity value based market share was very important

Great Britain and Germany : use the most shampoos.

Italy: weakest rate with 77% of users

The European market & shampoo users

707580859095

Eu

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Alle

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Esp

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Série1

Europe France Germany Italy Spain Great Britain

The number of shampoo users in the European countries (in %)

Main competitors

ISSUES

What brand name should be introduced in individual European markets?

Is the 200ml bottle suitable in Europe?

Price sensitivity if applying premium pricing?

How to price product?

Market Research DataMarket Research DataConsumer research on 4 products

Vidal Sasson: US & some European marketsPert Plus: unknown in EuropePanteneShamtu

There were no significant differences between countries. 

HHOWOW TO PRICE A NE TO PRICE A NEWW PRODUCT? PRODUCT?

Criterion for cost planning based on:

Existing cost structure of P&G shampoo

The profitability of brand tested in the consumer test

The cost of producing new product: transport, packing…

Advertising and sales support budgets which depend on individual countries and chosen introduction programe

RestrictionRestrictionProduction Capacity

Get an extra 500 MSU capacity2DM/SU higher production costs1MSU = 1,000SU (statistical units)1,000 x 500 x 2 = 1,000,000DM

Lead times for alternative pack sizes and designsFor a 250ml bottle, take 6 months to

developFor a new 200ml bottle, need to spend 12

months.

Marketing StrategyMarketing Strategy1. Positioning:

2. Pricing: the premium price segment

3. Target group: all people in Europe – Pan European

4. Source of business: new and old users

Pricing and Packaging StrategyPricing and Packaging Strategy

Placing product in the premium priced segment.

There are many prices and many kind of packages depend on each brand and market all over the world

Consumer Test results (%)Consumer Test results (%)

Vidal Sassoon Wash &

Go

Shamtu 2 in 1 “silkiness and

bounce”

Pantene “Perfect care”

Pert Plus Wash &

Go

Product concepts

4.99DM/200ml

4.99DM/200ml

4.99DM/250 ml

4.99DM/200ml

5.99DM/200ml

4.99DM/200ml

“Would definitely buy”

29 20 27 28 17 28

“Is very new”

41 40 41 39 40 40

“Is very convincing and relevant”

70 73 72 73 72 70

Media PlanMedia PlanT argeted on West Germany and Great Bri

tain

Media Plan for 1st yearStrongly using TVC and Print Ad focus on

the benefit of “2 in 1 formula” and the convenience to use the shampoo

Give sampling and make activities at public places such as subway station, central park and a big hypermarket

Using the testimonial of people who use “2 in 1 formula” shampoo on Special Ad.

Quarter 1 Quarter 2 Quarter 3 Quarter 4•TVC in prime time•Print Ad (Newspapers and Magazines)•Give sampling in public places and big hypermarket •Display activities

•TVC in prime time•Print Ad (Newspapers and Magazines)•Give sampling in public places and big hypermarket •Display activities

•TVC •Print Ad in Magazines•Special Ad•Give sampling at hypermarket

•TVC •Print Ad in Magazines•Special Ad•Give sampling at hypermarket

Media Plan for 1st yearMedia Plan for 1st year

Media Plan for Following YearsMedia Plan for Following Years

I ntroduce the product to other Europea n countries with using the same

activities as West Germany and Great Britain.

Create a new TVC and Print AdCreate a special activities for brand

awarenessPromotional – Discount on product and

give premium goods with reasonable prices.

SWOT ANALYSISSWOT ANALYSIS Strengths

Global leader in health and beauty care products, detergents, diapers and food.

P&G has over than 170-year industry experience and over than 25-year international operations.

The new acquisitions of companies that are leader in the market of health and beauty care products in Europe.

Effective brand management system and brand management team for its brand to plan, develop, direct their brand in its market.

Weakness Production cost Production capacity for the

demand on the first years. Leads times for alternative

pack sizes and designs. Work capacity. Different culture, wants

and needs of customers. Unable to protect imitation

P&G’s innovative products and marketing strategies of competition

Competitors had pre-empted them in national markets where the local subsidiary was constrained by budget or organizational limitations.

SWOT ANALYSIS (cont.)SWOT ANALYSIS (cont.) Opportunities

The growth of the shampoo and conditioner market.

The increase of hair washing products.

The undeveloped conditioner market in Europe.

The experience and the leader positioning of the new companies that P&G bought.

The Know-how of the success of Pert Plus in the US market.

Threats The number of suppliers

and brands, the European market was even more crowed as US.

The top and bottom price classes was even bigger than the US.

Difference between prices for the same quality.

Many important competitors.

Long term Marketing Objective in Europe market

The situation in Europe

In Europe a steady grow of shampoo market and the conditioner market could also be seen.This was particularly true for Southern European countries.

How did P&G do ?

because the European market was even more crowed than the US market.Also, the gap between the top and bottom price classes was bigger than in US market.Between brands there were price differences of over five times for same quantity.

Add more brands with BC 18 Technology.

Media

In order to carry through the brand message, media support was a key driving force.

Advertising is the art of arresting the human intelligence just long enough to get money from it.Ever since mass media became mass media, companies have naturally used this means of communications to let a large number of people know about their products. There is nothing wrong with that, as it allows innovative ideas and concepts to be shared with others.

QUESTION AND ANSWER

ROLL-OUT LAUNCH?What is roll-out?

“The process by which a company introduces a new product or service to different geographical markets or consumer segments”

“Would I undertake a ‘roll-out’ launch?” The answer will always be yes, of course all depending on the PEST analysis (Political, Economical, Social and Technological Factor Analysis)

In what country order? That would also be determined by our company’s objectives. But these are the steps I would look at for my roll-out launch;

Examine the cost and revenue implications of Europe-wide introduction

programme. Is there any loss to be expected in the first years Does this require a modification of the order of

local market entries?

Answer,there is some loss might be expected in first year, due to the fact that, they pay huge number of money to advertise and the affection and result could not be see at short term.also, we believe that, any company might have some modification to adapt different countries’ market, in this case, P%G add more brand to cater the consumer who has difference budget.

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