ANDY
MARTIN
MARY
RINKA
NAN
CATHY
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Procter and Gamble Company (P&G) was founded
by William Procter and James Gamble, in April
1837 to manufacture soap and candles in the U.S
With the increase of production demands, the
company began to investigate more productive
and less time-consuming ways to make soap.
That eventually led the firm to many more
innovative ideas and many more lines of soap,
for hair, laundry, and eventually dish washers.
Other kinds of products would be born as well
P&G brands are inspired to understand the needs,
desires and aspirations of men and women and by
their commitment to R&D and collaborative
external research
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By 1978, Procter and Gamble seemed to have covered
all bases in household product. From "Tide" laundry
detergent to feminine products, P&G dominated the
industry with company expansions throughout Japan,
China, Europe, and other parts of the world
In 1986, The company developed a new technology
That enabled consumers to wash and condition their
hair using only one product. Pert Plus/Rejoice shampoo
quickly became one of the leading worldwide shampoo
brands.
In1987, P&G celebrated its 150th anniversary. The company ranked as
the second-oldest company among the 50 largest Fortune 500
companies.
In 1988, The market of the shampoo and conditioner in Europe was
growing; there was an evidence of increase hair washing
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In fiscal year 2007, it had annual revenue of US $ 68.2 billion, and ranked
74th on Fortune 500 list of the world's largest corporations
P&G has operations in more than 80 countries, with more than 300 brands
on market in 160 countries. These include beauty care, household care and
Gillette products. Three billion times a day, P&G brands touch the lives of
people around the world
Today it is a $83,503 milion personal care and health and wellness company
manufacturing a broad range of products anh employing 140,000 people all
over the world
Personal and beauty:
Antiperspirants/Deodorants,
Colognes, Cosmetics, Feminine
protection, Hair care, Hair color,
Personal cleansing, fragrances, skin
care
House and home: Batteries, Dish
care, Household cleaners, Laundry,
snacks and beverages, special fabric
care
Health and wellness: Health care,
Oral care, Prescription drugs
Baby and family: Baby care, Paper
products
Introduction of the BC-18 technology in U
-Long-term marketing goal of Pert
Plus through
- Set the clearing objective to achieve as
follow
- Targeting : all people
- Positioning : offer attractive hair in a convenient way
- Source of business : New user
- Pricing : within premium-price with a price premium up to
100% of the low-price market leader
High Quality product concept
In the 1st
• Strong TV advertising,
12 months
• Listing fund $4 million
In the
Following
12 Months
Result
• Sample distribution 60% of household
• 10 Normal TV advertising
• Sample distribution 10% of households
• Display activities in hypermarket
• In 1987 Vol share 4 % and value share
6.0 %.
• In 1988 Vol share 4.5 % and value share
6.3 %.
Analyze for their facing problems
 National
brand firmly established in
domestic market.
 How
to
make
European
recognize their brand.
 Gap
between price classes
market
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Target group: All people
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esp. West Germany
Great Britain
France
Scandinavia
Benelux
Price : premium price segment
Positioning : offer attractive hair in a convenient way
Source of business : New user
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What are the main issues to be considered in balancing a
pan-European introduction strategy with local market
needs?
◦ For example, what are the possible alternative brand name
strategies? Should the 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?
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Proctor and Gamble has established a name in the
European Market. But statistics shows that its market
share is still small as compared to European Brands. With
the P&G development of a new haircare technology it
would be a lot better to launch it in a new brand name so
as to avoid it from being associated with other P&G
products. Being the first product offering the new
technology in a new brand name would surely catch the
attention of the Europeans.
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What is the longer-term marketing
objective?
To be able to improve the image of company and
its products, and to increase market share in
Europe being nearly equal to the competing
European companies though the success of Pert
Plus.
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What are the alternative possibilities in relation to
issues of positioning, target groups, sources of
business, pricing strategy and packaging?
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Positioning: To position the product as unique - the only one
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Target Group: All people especially European consumerists
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Source of business: All people
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Pricing: Pert Price Plus will cost 40% higher than than the low
that could give the maximum cleaning and moisturizing
effect of a shampoo and conditioner respectively in one bottle.
price market leader – Suave during the first year after
launching. Eventually, it would increase its price by 60 % for
the next year, with a 30% increase every after 6 months.
Answer:
1st year marketing objectives in EU market
Increase market share in:
High share of conditioner market: West Germany,
Great Britain, Scandinavia & Benelux
 Underdeveloped conditioner market: France (sale
volume: 10% of shampoo consumption) & Southern
European countries
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Long-term marketing objectives in EU market
Take over the European market
 Increase brand identity of P&G because the valuebased market share of a shampoo brand is very
important
 Add more brands with BC18 Technology
 Understand well the EU market & competitors
1ST YEAR
MARKETING
OBJECTIVES
• Specific long term
• Use for 1 year
• Use to evaluate long
term
• Evaluate: after 1 year
LONG TERM
MARKETING
OBJECTVES
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Drive for 1st year
Use for a long period
Hard to set up
Evaluate: long time
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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.
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We would first go to Great Britain because out of 5
biggest competitor brand, only 2 are there and
their market share is only 13%.
After that France because 3 of the company’s
shampoos are already there and competition is not
big
Next would be West Germany due to the biggest
market
Benelux would be next because marketing is the
cheapest, but the competition is highest
The last place would take Scandinavia because the
market is not too big and because TV and radio
advertising are not possible for legal reasons
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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?
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For the first 6 months advertising would be
strong, everything would be in use – TV,
radio, print, sample distribution in markets
and door-to-door…
For the next 6 months there would be less
advertising but it would still be present
everywhere
For the following years, media and promotion
activities should be less present or if the
results are bad, they should still be on the
same level
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Examine the cost and revenue implications of
the Europe-wide introduction programme. Is
there any loss to be expected in the first
years? Does this require a modification of the
order of local market entries?
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Loss is expected in the first few years but it is
nothing P&G can’t take because they are a big
company
We wouldn’t change order of entries in any
case except Vidal Sassoon in West Germany