Group 7

Veron
M987Z210
Yoseph
M987Z213
Bee
M987Z220
Ken
M9870114
Duy
M987Z218
Moon
M987Z241
Outline

Introduction
BC-18 in USA Market
The situation in Europe in 1988
What is Roll out Launch?
Pricing and Packaging Strategies
SWOT Analysis
Long term marketing objective
in EU Market
Answering Questions
Conclusion

Procter & Gamble touches peoples lives over two
billion times every day!

INTRODUCTION
P&G History: A Legend of Firsts
1837 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 I vory 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.
Product
Ariel 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 Kingdom
Braun 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.
PRODUCT
Ivory Olay
Target market is families
Products: Body soap, body
washes, dish soap,
Sold in Grocery stores,
Costco, Walgreens etc.
Priced low
Target Market is Women
Products: 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 Segment
Part of the Personal &
Beauty line of products
Earliest products of P&G was
soaps
Had 50 different types of
soaps at one time
Now has a select few brands

Family of Products
Personal & Beauty
- Cosmetics, Oral Care, Hair Care
House & Home
- Laundry care, Dish Soap, Snacks &
Coffee
Health & Wellness
- Prescription drugs, Health Care
Baby & Family
Pet 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 Market
Pert 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 1988
Steady growth of shampoo market & conditioner
also
Europe 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
70
75
80
85
90
95
E
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r
o
p
e
A
l
l
e
m
a
g
n
e
E
s
p
a
g
n
e
Srie1
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 Data
Consumer research on 4 products

Vidal Sasson: US & some European markets
Pert Plus: unknown in Europe
Pantene
Shamtu

There were no significant differences between
countries.

PRODUCT

Compliment the new BC_18 product
with high quality concept

Easy, time-saving, everyday use

PRICE

Premium-priced segment -> to keep up
the image of the shampoo as a high
quality and innovative product
1/ 4.99 DM for the 200 ml bottle
2/ 5.99 DM for the 250 ml bottle
PLACE
Department stores - supermarkets, with
a special decoration.

Hairdressers - beauty salons - personal
care shops (directly and effectively
impact on clients)
PROMOTION
- Promoted in a homogeneous way and
conduct promotion campaign and
advertising campaign
- A TV ads underline the easy way to use
and the perfect hair; besides, explaining
the effect of shampoo and conditioner on
your hair scientifically and
understandably.
4Ps
HOW TO PRICE A NEW 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

Restriction
Production Capacity
Get an extra 500 MSU capacity
2DM/SU higher production costs
1MSU = 1,000SU (statistical units)
1,000 x 500 x 2 = 1,000,000DM

Lead times for alternative pack sizes and designs
For a 250ml bottle, take 6 months to develop
For a new 200ml bottle, need to spend 12
months.
Marketing Strategy
1. Positioning:





2. Pricing: the premium price segment
3. Target group: all people in Europe
Pan European
4. Source of business: new and old
users
Time-saving
Easy to use
Use everyday
Convenient


Pricing 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 (%)
Vidal
Sassoon
Wash & Go
Shamtu 2 in 1
silkiness and bounce
Pantene
Perfect care
Pert Plus
Wash & Go
Product
concepts
4.99DM/200
ml
4.99DM/200
ml

4.99DM/25
0 ml

4.99DM/200
ml

5.99DM/200
ml

4.99DM/200
ml

Would
definitely
buy
29 20 27 28 17 28
Is very
new
41 40 41 39 40 40
Is very
convincin
g and
relevant
70 73 72 73 72 70
Media Plan
Targeted on West Germany and Great Britain

Media Plan for 1
st
year
Strongly 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 year
Media Plan for Following Years
Introduce the product to other European
countries with using the same activities as
West Germany and Great Britain.
Create a new TVC and Print Ad
Create a special activities for brand awareness
Promotional Discount on product and give
premium goods with reasonable prices.
SWOT 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&Gs
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.)
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
companys 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.


?