A roll-out launch
GROUP 2 MEMBERS
Li Merlina (Merlin)
M987Z246
Huynh Than Phong
(phong) M987Z242
Victor Marbun
(victor) M987Z259
Nguyen Thi Thanh Nhan
(Nhan)M987Z232
Thidarat
Prasitpornphakdee
(Nok) M987Z245
江孟唐
Chiang Meng-Tang
(Johnson) M98C0242
Content
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Introduction
Brand strategy for Europe
Marketing objective (first-yr and long-term)
SWOT analysis
BC-18 position statement
Questions
Conclusion
• Procter & Gamble Co is a Fortune 500, American
multinational corporation headquartered in
Downtown Cincinnati, Ohio, that manufactures a
wide range of consumer goods.
• As of 2008, P&G is the 8th largest corporation in the
world by market capitalization and 14th largest US
company by profit.
• P&G is credited with many business innovations
including brand management and the soap opera.
• Effective July 1, 2007, the company's operations are categorized
into three "Global Business Units" with each Global Business Unit
divided into "Business Segments" according to the company's
March 2009 earnings release.
Beauty Care
-Beauty segment
-Grooming segment
Household Care
-Baby Care and Family Care
segment
-Fabric Care and Home Care
segment
Health and Well-Being
-Health Care segment
• P&G's presence in the hair care market in the U.S has
been strengthened by innovative technology BC-18
and the replacement of an old brand 'Pert' with 'Pert
Plus'- a mild shampoo with a fully effective
conditioner.
• P&G decided to introduce BC-18 in Europe.
Traditionally, the European market is highly
competitive the main rivals are Colgate, Unilever,
and L'Oreal. The European market is segmented (i.e.
value based) and sensitive to price changes (i.e.
elastic demand).
1. Brand name:
• The European market is heterogeneous, multicultural and
multilingual;  the brand name should have to no
connotations in a particular language's history or religion.
The name should be easily pronounceable in each culture.
• The company is able to use the brand name of "Vidal
Sassoon", similar to"Pert Plus", the European name could
be "Vidal Sassoon Plus",
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–
–
already well-known brand name in the United Kingdom, West
Germany and Scandinavia
fits to the criteria mentioned above.
It is in the upper market segment with image of a high quality
product.
2. Positioning:
Vidal Sassoon Plus combines a mild shampoo with a fully
effective conditioner for a attrative hair in a convenient
way
3. Pricing: Vidal Sassoon Plus will be priced within the
premium-priced segment with 4.99 DM for the 200 ml
bottle and for 5.99 DM for the 250 ml bottle
4. Packaging
– Using the existing US bottle (200 ml) in the 1st year
would not take lead time
– Using the new bigger bottle (250 ml) in the 2nd year,
because it save time and money for the company
– New package will give a new image and benefit to
customers
5. Roll-out launch
• Target 2 European countries: West Germany
and Great Britain
• It is advisable to firstly introduce new product in
these 2 countries, because of their big markets
and people awareness about conditioner
•Because of the limitation in capacity
in 1st year, P&G cannot focus on so
many countries
6. Media Plan
• In the introduction phase (1st year), we make
intensive TV ad and giving sample of the product
• Newspaper ad
• Two part in TV ad introduction
– Underline the easy way to use and the perfect hair
the people will have
– Explain about the way of the effects shampoo and
conditioner have on your hair
7. Budget
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In 1st year, planning to gain profit from Great Britain
and West Germany
In 2nd year, introducing the product to other European
countries, expecting to gain losses in 1 year period of
introduction
In 3rd year planning to gain profit
from all European countries,
expecting there will be a break
even point because the high
profit in big market countries
• Specific long term
• Short term objective (establish a market share
that will expand and gain brand recognition)
• Use for 1 year
• Use to evaluate long term
• Evaluate: after 1 year
The Long Term Marketing Objective
• Continued of the short term objective (establish a market share
that will expand and gain brand recognition)
• Expand the market by doing penetration into new territories
• Ensure the company have higher profit and strengthens the
position as the market leader
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Drive for 1st year
Use for a long period
Hard to set up
Evaluate: long time
Strengths
• Global leader in health and beauty care products, detergents and food.
• P&G has a lot of experience in international operations.
• The new acquisitions of companies that are leader in the market of
health and beauty care products in Europe.
• They know more about their product that any one else.
• They have a specific brand management team; this team assumes the
responsibilities for its brand.
Weakness
• Production cost
• Production capacity for the demand on the first years.
• Leads times for alternative pack sizes and designs.
• Work capacity.
• Different culture, wants and needs of customers
Opportunities
• The growth of the shampoo and conditioner market.
• The increase of hair washing.
• The undeveloped conditioner market in Europe.
• The experience and the leader positioning of the new companies
that P&G bought.
• The Know-how of the success of Pert Plus in the US market.
Threats
• The number of suppliers and brands, the European market was
even more crowed as US.
• The top and bottom price classes was even bigger than
the US.
• Difference between prices for the same quality.
• Many important competitors.
• BC-18 in the US market
-P&G's presence in the hair care market in the U.S has been
strengthened by innovative technology BC-18.
-To introduce the BC-18 technology in the US market at the
beginning of 1986 by replacing the old brand 'Pert' with 'Pert
Plus.
-Pert Plus was positioned as the shampoo that offered
attractive hair in a convenient way.
-Result of Pert Plus in the US market
-In 1987:
Volume: 4.0%
Value share: 6.0%
-In 1988:
Volume: 4.5%
Value share: 6.3%
• BC-18 Europe market
-Steady market growth.
-Share of shampoo users in
Southern Europe who also
use conditioner was below
44%.
1. What are the
main issues to
be considered
in balancing a
pan European
introduction
strategy with
local market
needs?
The most important things to be considered
In balancing the pan European is how the
P&G standardize its product to the local
market. This is very important to control the
quality of product and brand image,because
P&G product is a global product and the
premium product. That is the product
Positioning that differentiate P&G with its
competitor. One way to implement the
Standardization strategy is by make BC-18
become the European name to the local
market.
2. How would you
specify the
first-year
marketing
objective? How
does this relate
to the longterm marketing
objective?
To specify the first year marketing
objective and how this related to
the longer term marketing objective
is when we make marketing
strategy as a long term marketing
strategy, we make the objective or
specific goal for the short time. The
specific objective should consists of
some part like positioning, target
group, source of business and also
pricing. The short time strategy
should represent the long term
strategy, support the long term
marketing objective.
3. Would you
undertake a
“roll-out”
launch, and if
so in what
country order?
What are the
decision
criteria for this
order?
We would under take a “roll out”
launch in France, because the market
share as shown in exhibit 7 is still
potential, the competitors not get
much market share and some
competitors not on offer in this
country. So it is still feasible to enter
The market. And it is still possible to
get market share from the competitor.
And we also have to look are the
competition in the country is quite
tight or not. If our competitor is to
strong, we have to think twice to enter
the market.
4. Taking the country with
Media plan following years:
the highest priority, which
– Introduce the product to the
principles would you use in
country that we want to enter
with the same concept especially
order to budget media
in European country such us
spending? Set out a rough
France, Benelux, Scandinavian,
media plan for the first
using the same activity with
twelve months, with
Germany and great Britain, (Print
proposals for promotion
Ad, sampling, TVC)
activities in the first year.
– Promotional, discount and
How should media and
product and give premium goods
promotion activities be
as the identity of the P&G.
budgeted for the following
– Create special activities for brand
years?
awareness.
5. Is there any
loss to be
expected in the
first year? Does
this require a
modification of
the order of
local market
entries?
Economics matter :
– Cost structure of existing
of P&G shampoo brand in
the case of BC-18 cost
planning.
– Cost of producing for a
new product + average
transport cost –because
easy to estimate
(production in England,
200 ml or 250 ml bottle,
work capacity of 50 %)
• P&G have strong side of the spectrum with its large
portfolio of consumer product brand. The launch of
BC-18 should be through adoption of more than one
more name to reflect local market needs.
• Market researches play an important role in new
product development.
• Brand affect price strategy of company especially in
manufacturing package on consumer goods.
• In the first stage of the product, it is crucial to
introduce the product through the media in order to
make brand awareness, customer recognize and
finally to boost the product sales.
Thank
you