Pan- European market is quite attractive for pert plus in terms of demand as the consumers test results showed that the product concept of 'wash & go' their (time-saving benefits) 28% consumers said that they would definalty buy the product that was only 1 percent less then already established bran there Vidal Sasson. Also because they are gradually accepting the idea of 2-in-1 shampoo more and thus it would be beneficial to launch in European market.
P&G's competitors there are Unilever, Colgate and Lo 'Oreal. P&Gs own competitor brands are heavily advertised there by European standards. Therefore launch of the product need to illustrate quality and time- saving benefits and also need to educate the market in the use of conditioners further.
Q2. What competitive advantages does Pert Plus have? Disadvantages?
Competitive advantage for pert plus is the benefits of time-saving and convenient everyday use of the product. Thos benefit is very essential and thus required right positioning. Inadequate availability of production capacity was a disadvantage for pert plus. Also lead times for alternative pack sizes and designs (250ml preferred size) were also a restriction for them as it would take six months lead time.
Q3. Which countries would be the leading markets in Europe? What are the advantages and disadvantages of entering a leading market first?
The countries that could be leading markets are Great Britain as it has a high market size for usage of conditioners and shampoos, especially conditioners that is the highest rate among the other 4 countries given. Therefore they would not have to educate them much about the usage of conditioners but can face tough competition. West Germany has highest rate of value of shampoos and 2nd highest in conditioners (Exhibit 1). Therefore has the potential of being a leading market but would require an...