p & g case study
TRANSCRIPT
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P&G CASE STUDY
FEELING THE HEAT
Presented By:
Priyanka Chopra (09 PG 162)
Jishnu.S (09 PG 142)
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P&G CASE STUDY
A company that improves hygiene, health and development
Four billion times a day, P&G brands touch the lives of people around the world.
HQ : -USA
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P&G
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P&G
A leading consumer goods company with $39 billion sales.
Marketing approximately 250 brands
In over 130 countries.
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P&G Brands
Fabric & Home care
Ariel
Tide
Fairy
Dash
Bonux
Lenor
MR Clean
Food & Beverages
Nutristar
Sunny Delight
Pringles
Crisco
Jif
Olean
Folgers
Health care
Actonel
Didronel
Metamucil
Peptobismol
Vicks
Crest
Blend-a-mend
PUR
Baby care
Pampers
Dodot
Luvs
Feminine care
Always
Alldays
Tampax
Whisper
Beauty care
Olay
Safeguard
Pantene
Pert Plus
Max Factor
Cover Girl
Camay
Zest
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Case Summary
Shareholders and stock-market analyst pressed P&G to produce new products.
Products like Dryel & Fit failed.
Crest Whitestrips reached $200 million Product Goal.
Growth Goal of P & G: 4-6% Annual Sales growth & Double digit earnings growth.
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Case Summary
New-ventures unit
Examined $3.3 billion pain-relief market.
P&G : Well aware of pain relief market– Aleve Pain Reliever (Sold to Bayer)– Excellent Knowledge in Paper technology (Pampers,
Charmin, Bounty)
“External analgesic” – Long lasting warmth
7 years of Consumer & Scientific testing
Year 2002 - Thermacare heat wraps.
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THERMACARE
Cure for:
Minor muscle and joint aches.
Overexertion
Strains
Sprains
Arthritis
Menstrual Cramping
Back pain
Features:
Portable
Air activated- Self heating
Disposable & Hygiene
Low- therapeutic heat
(400 C) for 8 hours.
Shape : Small pad/Diaper Lower & Upper Back Neck/Arm Abdomen
Biodegradable
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MUSCLE AND JOINT RELIEFLower Back & Hip Heat WrapsNeck, Shoulder, & Wrist Heat WrapsARTHRITIS RELIEFArthritis Heat WrapsArthritis Hand & WristHeat WrapsArthritis Knee & Elbow Heat WrapsArthritis Neck & Shoulder Heat Wraps
MENSTRUAL RELIEFMenstrual Patches
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Functioning of thermacare
Work when consumer Open the Package
Series of Oval shaped heat disc
Heat generating materials: Iron, carbon sodium chloride, sodium thiosulfate & water
Iron oxidizes, Chemical heat generation.
Paper technology to sustain and control heat-generating reaction.
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Recommendations
By doctors:
Ice pack for 20 minutes, 3-4 times a day, for few days
Accompanied with Pain reliever drugs/Tabs
Eg: Aspirin
Heat therapy.
By P&G
Wear heat-wrap for 3 hours to 8 hours
Not with lotions and ointments.
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Wrapping it upPlanned price $6.99, 25% profit margin to retailers.
Pack : 2 wraps in Back size or
3 Wraps in Neck, Arm / Abdomen Size
Integrated promotion campaign budget $90 million
Hired D’Arcy Masius Benton & Bowls
CHALLENGES
To prevent customers from taking another pill
Educate customers about thermacare and its operation and benefits.
Different from pain relief strategies
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P&G
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What are possible target audiences for Thermacare? In what buyer readiness stages will these target audiences be?
Question # 1
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POTENTIAL BUYERS• Arthritis Patients• Women• Groups –Sports Teams• General public
CURRENT USERS• New Product• Established
Unaware
Create awareness
UnawarePromotions & reminder advertisements
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DECIDERS & INFLUENCERSDoctorsPharmacist
Unaware / awareComprehensionConviction
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What issues will the advertising agency face in designing messages for the selected target audiences?
What message “Theme” or “Headline” Summarizes the positioning that you would recommend for ThermaCare?
Question # 2
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1. Consumer Value Proposition Positioning as better than alternatives available.
P&G is renowned for paper technology- Sustained & Controlled Heat Generation.
Focusing on target audience & convincing them about the Value of Product.
2. Calibrate consumer Knowledge Educate consumer with marketing message.
Eg : Ecofriendly Product Product is framed to meet consumer needs
Eg : Permits easy movement to users
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3. Highlight the POD Product is capable of fulfilling the desirability of
target audienceRelevanceDistinctiveness &Believability
Example : Convenient use (3-8 Hrs / day)
Mobility.
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4. Credibility of Consumer Benefit ClaimSpecificMeaningfulUnpretentiousQualified compared to alternatives
Eg : Eco certification – Educate consumer about the meaning of it.
5. Encourage consumer Evangelism via Consumers Social & Internet Communication Networks.
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Theme : “ LIVE GREEN , KEEP MOVING ”
“WRAP YOURSELF IN RELIEF”
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What recommendations would you make to P&G and D’Arcy to help them develop an integrated promotion Strategy for Thermacare?
Question # 3
1. Promotion Mix2. Message Source3. Feed Back Mechanism
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Advertising Sales Promotion Events & Experience PR & Publicity Direct Marketing Interactive Marketing WOM Marketing Personal Selling
PROMOTION MIXPROMOTION MIX
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Brand Endorser Testimonial Advertisement
Expertise Trustworthiness Likeability
Eg : Dr. Robert Jarvik for Cholesterol lowering Lipitor drug
MESSAGE SOURCEMESSAGE SOURCE
Qualities Candor Humor Naturalness
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Online customer feed back system Toll free Phone numbers & IVRS Sales & Medical representatives Intermediaries Market Survey
FEED BACK SYSTEMFEED BACK SYSTEM
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THANK YOU