Assignment 1 Procter and Gamble Company Case

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Assignment 1: Procter & Gamble Company (A) Case Analysis

(Submitted in fulfillment of the assignments for Marketing Management)

Indian Institute of Foreign Trade, Delhi

Table of Contents

Assignment ..................................................................................4 Executive Summary .....................................................................4 2.Analysis ......................................................................................6 Recommendations ......................................................................13

Assignment

To analyze the Procter & Gamble Company (A) Case to take decision related to LDL brands from the available options. What effect would each option have on each of the existing LDL brands? To make recommendations based on understanding of the long- and short-term profit and volume implications of each of the options.

Executive Summary

Chris Wright, associate advertising manager of Packaged Soaps and Detergents(PS&D) division at Procter and Gamble (P&G) needs to evaluate how to increase the volume of its light duty liquid (LDLs). 3 alternatives for volume growth are considered for analysis based on the market segment (price/ performance/mildness): (1) Introduction of a new brand like converting H-80 a research development into a product (2) Product improvement of an existing brand

(3) Increased marketing expenditures on existing brands.

Ultimately he must make recommendations on the above. Packaged Soap & Detergent Division (PS&D) is facing an issue on how to retain its brand position while at the same time increase volume share and profits.

1. Introduction

The Light Duty Liquid Detergents (LDL) Market:
Market Statistics (1981):
- Market Size:$ 850 Million
- Volume:59 million cases
- Packaging:Popular 32 oz and 22 oz1,
Medium Size Packages were beneficial.
May be because of the consumption pattern
- Market Penetration: 90 % Of US household in 1980 to rise to 92% by1990. 1) Not much growth opportunity in market
2) Brand Association / Loyalty.
3) Products are in maturity phase.
4) Price completion high.
5) Key driver is volume
6) New entry by new player is though

LDL Market Segments:
Performance brands: which provide better cleaning benefits (35% volume) Mildness segment: which are gentle to the hand (37% volume /44% sales) Price segment: which are primarily low cost with no brand loyalty (28%volume)

The LDL market is a mature market with the introduction of a new brand every 2½years and an average of 2 price brands (which were sold to retailers for an average of $7.5 per statistical case versus $17 per statistical case for premium priced mildness & performance brands) introduced and discontinued per year. P&G has 42% market share, followed by Colgate-Palmolive with a 24% share and Unilever with a 7% market share. The remaining 27% market is mainly generic and private labels.

P&G LDL Brand: In the LDL segment P&G manufactures mainly 3 products i.e. Joy and Dawn in the performance segment and Ivory in Mildness Segment

|Performance |Mildness |Brand |Effect | |High |Medium |Dawn |Growth Opportunity | | | |(performance) | | |Medium |Medium |Joy |Unable to place the product as 2| | | |(performance) |times re-branding was done | |Medium |High |Ivory...
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