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, (2) product improvement of an existing brand and/or (3) increased marketing expenditures on existing brands. Ultimately he must make recommendations on the above. The problem facing PS&D is how to retain its dominant competitive position while at the same time increase volume share and profits. II.Introduction
The Light Duty Liquid Detergents (LDL) Market:
For the year 1981, the total market sales for LDL have been $850 million and volume of 59 million cases. The most popular sizes are the 32 oz and 22 oz. LDLs have penetrated 90% of the US households and expected to grow to 92% by 1990 . The market is witnessing saturation in the growth for LDLs. The sales of LDLs have been affected by the penetration of automatic dishwashers; the detergents for this market have doubled in the last 10 years indicating the increase in daily use of dishwashers The LDL market is divided into 3 major segments: (1) the performance brands which provide better cleaning benefits (35% volume/42% sales), (2) the mildness segment which are gentle to the hand (37% volume/ 44% sales) and (3) the price segment which are primarily low cost with no brand loyalty (28% volume/14% sales) . The LDL market is relatively stable with the introduction of a new brand every 2½ years and an average of 2 price 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 Products
In the LDL segment P&G manufactures 3 products, Joy and Dawn in the performance segment and...