Group 1 Presentation
Group One
Members
Hello Europe, meet Pert Plus
 This case is about Proctor & Gamble’s plan to
introduce their new shampoo + conditioner into the
European market
 This shampoo blend found quick success in America
after being launched in 1986
 Rapid success of the product led P&G to launch the
product into the European market
Hello Europe, meet Pert Plus
 Launching the product in Europe would require more
than just placing the product on store shelves
 Close co-ordination was required to launch new brands
to ensure they reached the market-place first
 Competition were close on their heels
 A European perspective would be required to meet the
diverse needs of cosumers
Hello Europe, meet Pert Plus
 P&G would use the concept of “Euro-balancing”
 Rather than Europe wide standardization, this concept
would allow for some localization when necessary.
 As market conditions vary widely within Europe, this
was a major concern for the Euro-Brand Team
American market vs. Europe
American Hair care Market
Europe Hair care Market
 America
 90% of people use shampoo
 Highly fragmented market
with many suppliers and
brands
 Large price differences
between premium and value
brands
 Europe
 Steady growth of market
with increased hair washing
 44% of shampoo users also
used conditioner
 South European countries
showed the most promise





Great Britian
West Germany
France
Scandinavia
Benelux
European Market
 The European market was even more crowded than
the US market when considering the number of
suppliers and brands available.
 Price differentials between the premium and value
based market segments were extreme, placing extra
importance on the value-based market segment.
European Market Testing
 Initial testing in the European market showed a
positive response to the time saving attribute of Pert
Plus.
 The high quality brand concept would allow the product
to command a premium price.
 An opportunity existed to use an established brand, so
research was done to compare positioning statements of
Pert vs. existing brands like Pantene and Shamtu
 Consumer testing showed no significant difference
between the brands, allowing for the Pert brand to be
introduced, thereby reducing the cost.
The following five questions are selected from the case study.
As instructed, these questions will help with the roll out
strategy recommendations.
What are the main issue to be considered in balancing a
Pan-European introduction strategy with local market
needs?
Should BC-18 technology be introduced with a pan-European name, or
with local brand names, or even with a mixture of both approaches?
Should a new brand be created, or should an existing brand be relaunched in a new quality? What are possible criteria for that decision?
Our group recommends using Pert Plus brand as the product name of
BC-18 in pan-European market.
With consideration :
 Product Identification
Customer can easily indentify the brand if they happen to know Pert Plus
brand before.
 Product Acceptance
New product under a known brand name are accepted
and adopted more easily.
 Shopping Efficiency
Speeds up the buying process and make repeat
purchases easier by reducing search time and effort.
( Ferrell and Hartline ; 2008 )
What is the longer-term marketing
objective?
 Reduced Costs
Heavy promotion by the manufacture reduces the marketing costs of
the merchant that carries the brand.
 Build-In Loyalty
Manufacturer brands come with their own cadre of loyal cutomers.
 Less Risk
With an established brand it makes easier to penetrate a new market,
since it proven in previous market and has became one of the leading
shampoo product in US market.
( Ferrell and Hartline ; 2008 )
What are the alternatives possibilities in relation to
issues of positioning, target groups, source of business,
pricing strategy and packaging?
 Positioning : Pert Plus will provide great-looking hair
in a convenient way.
 Target Group : All people.
 Source of Business : New users and loyal consumers.
 Pricing : slightly higher than premium price product
in Europe ( higher than US 5.99 / 250 ml ).
 Packaging : provides 400 ml and 250 ml to give
option to the customer based on their needs.
How would you specify the first-year marketing objective? How
does this relate to the longer-term marketing objective?
First year objective
 The first-year marketing objective is to establish the
brand identity in European countries. Additionaly,
European customers should also be introduced to
conditioner as a benefit of the Pert Plus product.
Long-term marketing objective
 Open the new markets as the shampoo that offered
attractive hair in a convenient way. It’s Pert Plus
formula that combined a mild shampoo with a fully
effective conditioner and decide to introduce BC-18 to
the people in the European market.
 Continue to build on the time saving benefit to the
product and participate in field marketing to bring the
product directly to the consumer.
Would you undertake a ‘roll-out’ launch, and if so in what
country order? What are the decision criteria for this order? In
answering this question you should take into account the
expected sales volumes as well as the given capacity restrictions.
 Our group roll-out plan will be launched in West
Germany, Great Britain and France.
The decision criteria :
• Three Big market size : Shampoo and conditioner
awareness countries in Europe
• The size of population
In Germany: 82,329,758
In Great Britain: 61,612,300.
In France: 65,073,482
The European market was even more crowded than
U.S. market , undoubtedly the function of different
nationalities.
 Speaking English countries
The advertising can be well promoted through region to
region, city to city.
Save lead times: With the same language, we can use the
exiting packages and designs.
Taking the country with the highest priority, which principles would
you use in order to budget media spending? Set out a rough media
plan for the first twelve months, with proposals for promotion
activities in the first year. How should media and promotion activities
be budgeted for the following years?
Taking the country with the highest priority, which
principles would you use in order to budget media
spending?
Set out a rough media plan for the first twelve months,
with proposals for promotion activities in the first year
Media Plan
 Advertising is the best tool to give information about your product but
the media plans for the different years show a higher media spending
on sampling and TV advertising in the year of introduction to convince
customers of the superiority of the new product and to explain its new
technology.
 Over the following two years, sampling will go down to 10% but should
be raised again for the new marketing cycle when decline begins.
 TV advertising should be used in the same way, at the beginning to
introduce the product and to gain a significant market share in the first
year. It should also be used to maintain the growth of market share in
the second year but can be reduced in the third year when the product
reaches its mature stage
Media Plan for
st
1
 Strongly using TVC and Print Ad
focus on the benefit of “2 in 1
formula” and the convenience to
use the shampoo
 Give sampling and make
activities at public places such
as subway station, central park
and a big hypermarket
 Using the testimonial of people
who use “2 in 1 formula”
shampoo on Special Ad (in
woman magazine)
year
Media Plan for Following Years
 Introduce the product to other European countries
such as France ,Scandinavian and Benelux with using
the same activities as West Germany and Great Britain
(TVC, Print Ad, Sampling)
• Create a new TVC and
Print Ad
• Create a special activities
for brand awareness
• Promotional – Discount
on product and give
premium goods
How should media and promotion activities
be budgeted for the following years?
As can be seen in the expected sales exhibit and in
the media plans, P&G has losses over the first two
years. Great Britain and Germany are already
profitable after the first year but with the
introduction in the other countries. In the second
year, the gain in Great Britain and Germany will
not compensate the losses of the first year and the
losses due to the introduction in those countries.
How should media and promotion activities be
budgeted for the following years?
In the third year, all countries will make profits and the
company will break even with a total profit of
16.248.900 DM. In France P&G should try to increase
the use of conditioner in general to generate a bigger
market and to gain a higher market share. France has
the potential and the profits could be higher then
shown in the 3th year media plan. The fourth year will
also be profitable but it remains to be seen if the
extension of the life cycle in Great Britain and
Germany will be successful or not.
Examine the cost and revenue implications of the Europewide introduction program. Is there any loss to be expected
in the first years? Does this require a modification of the
order of local market entries?
Because the European market was even more
crowded than the US market. In Exhibit 12, we can
easily recognize , Vidal Sassoon in West Germany,
Great Britain and Scandinavia budget for
advertising and sale promotion are higher than
other (14.00 in England compare with 6.00 in
France). However, it can not make profit (-0,25 in
Great Britain compare with 1.00 in France).
Overview economic/ profit
Manufacture’s
net price
Production cost
Budget for
advertising and
promotion
Profit
Great Britain
France
(Vidal Sassoon) (Pantene)
50.65
36.00
28.00
22.00
2.80
2.00
-0.25
1.00
Overview economic/ profit
60
50
40
30
Great Britain (Vidal Sassoon)
France (Pantene)
20
10
0
-10
Manufacture’s Production cost Budget for
net price
advertising and
promotion
Profit
 It was assumed that working at higher capacity would
not generate lower costs because of the special
production technology.
 To determine total costs it was necessary to consider
also advertising and sales support budgets, which
depended on the individual countries and their chosen
introduction program.
Strategy Recommendations
 P&G should build upon their brand management
competence to improve recognition and awareness of
the Pert Plus brand.
 As seen in Asia, this brand may not always be the
appropriate name or image necessary for success.
 Pert Plus is marketed as Rejoice shampoo plus
conditioner in most Asian countries – where it also
enjoys success and market share.
Thank You!
Q&A