Procter and Gamble

The Procter & Gamble Company, incorporated in 1890, has continued to be one of the leading manufacturers in the consumer home goods industry. A large portion of their success is attributed to the sales of their light-duty liquid detergents (LDLs) in the Packaged Soap & Detergent Division (PS&D). Procter & Gamble’s three main LDLs, Ivory, Dawn, and Joy, maintain a 42% market share in the industry. As consultants, we will explore new growth opportunities to increase profits and consumer satisfaction through product improvements on an existing brand. The LDL market segmentation for Procter & Gamble is based on three main product attributes. Performance describes the product’s primary cleaning benefit, mildness describes the gentleness on hands, and price provides the benefit of low cost. P&G positioned its three LDL brands very differently. Ivory is positioned to appeal to females, primarily middle-class mothers, who enjoy the benefit of younger looking hands. Advertisements depict a mother/daughter comparison to illustrate this youthful appeal. Its creamy-white color and light scent relates this LDL to the Ivory bar soap, which consumers recognize for its mildness. Dawn is positioned purely as a performance LDL for those who seek superior grease-cutting abilities. By allocating most of the marketing budget towards coupons, this brand seeks early-adoption by new customers in hopes of promoting brand loyalty among households. Joy is the original LDL manufactured by P&G, and is positioned as a reliable and recognizable option due to its unique yellow color and fresh lemon scent. Average LDL users consume one bottle every three to four weeks, amounting to roughly one case per year. On average, these consumers had one and a half LDL brands in their household at any given time. Consumers are fairly loyal to LDL brands, with 60-80% of total brand volume attributed to usual brand users. Usual brand users consistently rate their