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Proctor & Gamble Company

By Saloni Kapil (PGP 15300)


Evaluation of Options:
Option

Pros

Cons

Using
H80
to
launch
a
new
Performan
ce Brand.

- Likely to capture 60% from


competitors
- Scores better on performance
parameters than established LDL
competitor in blind consumer
study

Using
H80
to
launch
a
Specialty
brand.

- Can be positioned on customer


need of better action on tough
stains coupled with parity cleaning
in general dishwashing; thus
differentiating with respect to
other performance competitors
- May not compete with Dawn, the
market leader in performance
segment
- Less marketing expenditure
compared to launching a new
brand
- Lead time to market lower (1-2
years) as compared to new
product launch
- Can leverage P&Gs reputation
and expertise in mildness segment
after Ivory
- In sync with customer need of
product improvement In mildness
as per research data

- Launch can take place only after 3


years
- High capital investment of $20
million plus additional $60 million
marketing expenses
- Will cannibalize Dawn, P&Gs own
product in the competitive space of
performance
- Launch can take place only after 3
years
- Capital investment in excess of $20
million will be required to develop
proper segmentation and targeting

Using
H80
to
enhance a
current
Performan
ce Brand.
Consider
launching
a
new
brand
in
the
Mildness
segment.
Consider
launching
a brand in
the Price
segment.
Increasing
advertisin
g spends
for
current
brands.

- No current products in the price


segment; simple parity product
may work in market

- Better as low growth potential of


LDL category suggests low capital
investment
and
introductory
marketing expense
- Immediate implementation
- Can be used to better promote
our best-seller Ivory

Recommendation:

- Capital investment similar to that of


a new brand ($20 million)
- Existing brand Dawn is already doing
well; no immediate need to improve it
- Large number of competitors,
including in-house brand Ivory already
exist
- Mildness may not be important for
ADW users
- Mildness as a segment is very
mature
- Percentage of sales available for
marketing expenditure goes down
from 32% to 14%;
- Segment characterized by low-share,
low-quality, less brand loyalty;
- Low expected growth of segment
- Maintain profitability, not a high
growth strategy
- Short term measure

Reposition Joy with no-spot formula (not evaluated above) with zero
capital investment and only $10 million marketing expenses.
Increase advertising spend for current brand Ivory effective
immediately (using $3 million reduction in COGS due to repositioned Joy)
to encourage repurchase amongst consumers so that the market
leadership position is maintained.
Introduce an enhanced Dawn brand using H-80 after 3 years, while in the
meantime allowing the current Dawn to drive the sales in the
performance segment.

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