Segmentation, Targeting, and Positioning: P&G
Procter & Gamble, one of the world's premier consumer goods companies. Some 99 percent of all U.S. households use at least one of P&G's more than 300 brands, and the typical household regularly buys and uses from one to two dozen P&G brands. How many P&G products can you name? Why does this superb marketer compete with itself on supermarket shelves by marketing seven different brands of laundry detergent? The P&G story provides a great example of how smart marketers use segmentation, targeting, and positioning. PROCTER & GAMBLE Procter & Gamble (P&G) sells seven brands of laundry detergent in the United States (Tide, Cheer, Bold, Gain, Era, Dreft, Febreze, and Ivory Snow). It also sells six brands of hand soap (Ivory, Safeguard, Camay, Olay, Zest, and Old Spice); five brands of shampoo (Pantene, Head & Shoulders, Pert, Physique, and Vidal Sassoon); four brands of dishwashing detergent (Dawn, Ivory, Joy, and Cascade); three brands each of tissues and towels (Charmin, Bounty, Puffs), and deodorant (Secret, Sure, and Old Spice); and two brands each of fabric softener (Downy and Bounce), cosmetics (Cover Girl and Max Factor), skin care potions (Olay and Noxema), and disposable diapers (Pampers and Luvs). Moreover, P&G has many additional brands in each category for different international markets. For example, it sells 16 different laundry product brands in Latin America and 19 in Europe, the Middle East, and Africa. (See Procter & Gamble's Web site at www.pg.com for a full glimpse of the company's impressive lineup of familiar brands.) These P&G brands compete with one another on the same supermarket shelves. But why would P&G introduce several brands in one category instead of concentrating its resources on a single leading brand? The answer lies in the fact that different people want different mixes of benefits from the products they buy. Take...
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