P&G, Light Duty Liquid Detergents
Advertising & Promotion
Spring 2009
Procter & Gamble (B)
Light Duty Liquid Detergents
May 16, 2009
Amanda Barraza
Ted Chiang
Olga Shipilo
Clare Tan
1.What factors and policies guide promotion planning for the LDL’s?
i)Budget Allocation: The LDL managers of Ivory Liquid, Dawn, and Joy spend about half of their marketing budget in advertising and with a lower share on promotion. This is different from the strategy of Colgate & Lever, who spends a higher percentage on promotion. The marketing budget for H-80 is $60 million for the first year, which includes $18 million on advertising, $37 million on promotion, and $5 million of miscellaneous marketing expenses. ii)Scheduling of LDL Promotional Events: The groups generally work together to avoid simultaneous promotion of 2 or more of the company’s LDLs to maintain sufficient level of attention of the sales force and the trade. Each brand participated in at least 5 events annually. Exhibit 1 lists the number of planned promotions by type for the 3 brands in 1983.
iii) Advertisement for New Brands: P&G generally does not advertise a new brand until it had achieved 70% distribution, which the H-80 group expected to be 6 weeks after introduction. Exhibit 2 in the appendix illustrates the media weight for H-80 in its initial year.
iv)History, Experience, & Sales Advice: The sales department at P&G had provided several guidelines in the areas of trade allowance, timing of special packs promotions, and methods to maintain distribution level in stores.
2.What factors must Mr. Garner consider in developing the H80 promotional program?
i)Goals & Constraints First and foremost, Garner must select the promotional mix that would:
1)Remain within its budget of $37 million.
2)Satisfy the estimated market share of 7% (4.2 million cases).
3)Allow some degree of scheduling flexibility with other LDLs of P&G.
ii)Positioning: The product benefit offered by H-80 belongs
Spring 2009
Procter & Gamble (B)
Light Duty Liquid Detergents
May 16, 2009
Amanda Barraza
Ted Chiang
Olga Shipilo
Clare Tan
1.What factors and policies guide promotion planning for the LDL’s?
i)Budget Allocation: The LDL managers of Ivory Liquid, Dawn, and Joy spend about half of their marketing budget in advertising and with a lower share on promotion. This is different from the strategy of Colgate & Lever, who spends a higher percentage on promotion. The marketing budget for H-80 is $60 million for the first year, which includes $18 million on advertising, $37 million on promotion, and $5 million of miscellaneous marketing expenses. ii)Scheduling of LDL Promotional Events: The groups generally work together to avoid simultaneous promotion of 2 or more of the company’s LDLs to maintain sufficient level of attention of the sales force and the trade. Each brand participated in at least 5 events annually. Exhibit 1 lists the number of planned promotions by type for the 3 brands in 1983.
iii) Advertisement for New Brands: P&G generally does not advertise a new brand until it had achieved 70% distribution, which the H-80 group expected to be 6 weeks after introduction. Exhibit 2 in the appendix illustrates the media weight for H-80 in its initial year.
iv)History, Experience, & Sales Advice: The sales department at P&G had provided several guidelines in the areas of trade allowance, timing of special packs promotions, and methods to maintain distribution level in stores.
2.What factors must Mr. Garner consider in developing the H80 promotional program?
i)Goals & Constraints First and foremost, Garner must select the promotional mix that would:
1)Remain within its budget of $37 million.
2)Satisfy the estimated market share of 7% (4.2 million cases).
3)Allow some degree of scheduling flexibility with other LDLs of P&G.
ii)Positioning: The product benefit offered by H-80 belongs