Group 1
Damar
M997Z229
Chayaporn
M997Z224
Binh
M997Z248
My
M997Z222
Hanh
M997Z220
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Introduction
BC-18 in USA Market
The situation in Europe in 1988
What is ‘Roll out’ Launch?
Pricing and Packaging Strategies
SWOT Analysis
Long term marketing objective in EU Market
INTRODUCTION
Procter & Gamble touches people’s lives over
two billion times every day!
1837
Brothers-in-law William Procter and James Gamble start a partnership,
making and selling candles and soap in Cincinnati
1859
P&G sales reach $1 million
1879
The inexpensive, but high-quality Ivory soap is introduced
1924
P&G is one of the first to create a market research department to study
consumer preferences and buying habits
1955
Crest, the first toothpaste with fluoride clinically proven to fight cavities, is
introduced
1961
Pampers is introduced and eventually replaces cloth diapers
1980
Sales reach $10 billion
2002
P&G develops Naturally feminine pads specifically to meet the needs of lowincome women in Latin America.
2005
High Frequency Stores, Consisting of nearly 20 million stores across the
world, FS represents a particular opportunity in fast-growing low income
markets.
Today
P&G operates in 80 countries worldwide, employing more than 100,000.
Has 13 billion dollar brands in its portfolio: Charmin, Tide, Pantene, Iams,
Folgers, Crest, Olay, Always, Ariel, Bounty, Downy, Pringles, Pampers.
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Ariel is a brand of laundry detergent.
Actonel is a brand of osteoporosis drug.
Bounty (paper towel) sold in the United
States, Canada, and the United Kingdom
Braun is a small-appliances manufacturer
specializing in electric razors, coffeemakers,
toasters, and blenders.
Crest is a brand of toothpaste.
Dawn is a brand of dishwashing detergent.
Downy/Lenor is a brand of fabric softener.
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Duracell is a brand of batteries and flashlights.
Fusion is a brand of men's wet shave razors and
is the quickest P&G brand to have reached $1
billion in annual sales.
Gain is a brand of laundry detergent and fabric
softeners.
Gillette is a safety razor manufacturer.
Head & Shoulders is a brand of shampoo body
wash, and deodorant.
Old Spice is a brand of aftershave and shaving
cream.
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Ivory is a soap.
Nice 'n Easy is a hair coloring product.
Olay is a brand of women's skin care products.
Oral-B is a brand of toothbrush.
Pampers is a brand of disposable diaper.
Pantene is a brand of hair care products
(conditioners/styling aids).
Prilosec OTC is a brand of heartburn medicine
co-marketed by AstraZeneca.
Pringles is a brand of potato chips.
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Puffs is a brand of facial tissue.
Secret is a brand of antiperspirant and
deodorant.
TAG is a deodorant and body spray.
Tide is a brand of laundry detergent.
Vicks is a brand name of over-the-counter
medicines (Formula 44, Sinex, NyQuil/DayQuil)
Wella is a brand name of hair care products
(shampoo, conditioner, styling, and hair color).
Whisper is a brand of pantyliners sold primarily
in Asian markets.
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In 1986 The Company develops a new technology
that enables consumers to wash and condition
their hair using only one product. Pert
Plus/Rejoice shampoo quickly becomes one of
the leading worldwide shampoo brands. (BC-18)
Pert Plus was to take over the leading value
position in the US shampoo market, with market
share at least 10% by the end of fiscal year 1989.
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Pert Plus was positioned as the shampoo
that offered attractive hair in a convenient
way.
Long-term Marketing goal: to take over the
leading value position in the USA shampoo
market.
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Steady growth of shampoo market &
conditioner also
Europe
44%
USA
New potential: more crowed and many
different countries than US
There were price different between
brands with the same quatity  value
based market share was very important
The European market & shampoo users
95
90
85
80
75
70
France
Germany
Italy
Espagne
Europe
Allemagne
Europe
Série1
Spain
Great Britain
The number of shampoo users in the European countries
(in %)
 Great Britain and Germany : use the most shampoos.
 Italy: weakest rate with 77% of users
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Consumer research on 4 products
Vidal Sasson: US & some European markets
Pert Plus: unknown in Europe
Pantene
Shamtu
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 There were no significant differences
between countries.
PRODUCT
PRICE
Compliment the new BC_18
product with high quality concept
Premium-priced segment -> to
keep up the image of the shampoo
as a high quality and innovative
product
Easy, time-saving, everyday use
1/ 4.99 DM for the 200 ml bottle
4Ps
2/ 5.99 DM for the 250 ml bottle
PLACE
PROMOTION
Department stores - supermarkets,
with a special decoration.
- Promoted in a homogeneous way
and conduct promotion campaign
and advertising campaign
Hairdressers - beauty salons personal care shops (directly and
effectively impact on clients)
- A TV ads underline the easy way
to use and the perfect hair; besides,
explaining the effect of shampoo
and conditioner on your hair
scientifically and understandably.
HOW TO PRICE A NEW PRODUCT?
Criterion for cost planning based on:
 Existing cost structure of P&G shampoo
 The profitability of brand tested in the consumer
test
 The cost of producing new product: transport,
packing…
 Advertising and sales support budgets which
depend on individual countries and chosen
introduction programe
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Production Capacity
◦ Get an extra 500 MSU capacity
◦ 2DM/SU higher production costs
◦ 1MSU = 1,000SU (statistical units)
1,000 x 500 x 2 = 1,000,000DM
Lead times for alternative pack sizes and
designs
◦ For a 250ml bottle, take 6 months to develop
◦ For a new 200ml bottle, need to spend 12
months.
1. Positioning:
Time-saving
Easy to use
Use everyday
Convenient
2. Pricing: the premium price segment
3. Target group: all people in Europe – Pan
European
4. Source of business: new and old users
Placing product in the premium priced
segment.
 There are many prices and many kind of
packages depend on each brand and market
all over the world
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Vidal
Sassoon
Wash & Go
Shamtu 2 in 1
“silkiness and bounce”
Pantene
“Perfect care”
Pert Plus
Wash & Go
Product
concepts
4.99DM/200
ml
4.99DM/200
ml
4.99DM/25
0 ml
4.99DM/200
ml
5.99DM/200
ml
4.99DM/200
ml
“Would
definitely
buy”
29
20
27
28
17
28
“Is very
new”
41
40
41
39
40
40
“Is very
convincin
g and
relevant”
70
73
72
73
72
70
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Targeted on West Germany and Great
Britain
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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.
Media Plan for 1st year
Quarter 1
Quarter 2 Quarter 3 Quarter 4
•TVC in prime time
•TVC in prime time
•TVC
•TVC
•Print Ad (Newspapers
and Magazines)
•Give sampling in
public places and big
hypermarket
•Display activities
•Print Ad
(Newspapers and
Magazines)
•Give sampling in
public places and
big hypermarket
•Display activities
•Print Ad in
Magazines
•Special Ad
•Give sampling at
hypermarket
•Print Ad in
Magazines
•Special Ad
•Give sampling at
hypermarket
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Introduce the product to other European
countries with using the same activities
as West Germany and Great Britain.
Create a new TVC and Print Ad
Create a special activities for brand
awareness
Promotional – Discount on product and
give premium goods with reasonable
prices.
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Strengths
◦ Global leader in health and
beauty care products, detergents,
diapers and food.
◦ P&G has over than 170-year
industry experience and over than
25-year international operations.
◦ The new acquisitions of
companies that are leader in the
market of health and beauty care
products in Europe.
◦ Effective brand management
system and brand management
team for its brand to plan,
develop, direct their brand in its
market.
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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.
◦ Unable to protect imitation P&G’s
innovative products and marketing
strategies of competition
◦ Competitors had pre-empted them
in national markets where the local
subsidiary was constrained by
budget or organizational
limitations.
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Opportunities
◦ The growth of the shampoo and
conditioner market.
◦ The increase of hair washing
products.
◦ 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.
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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.
Long term Marketing Objective in
Europe market
The situation in Europe
In Europe a steady grow of shampoo
market and the conditioner market could
also be seen.
This was particularly true for Southern
European countries.
How did P&G do ?
Add more brands with BC 18 Technology.
because the European market was even more crowed
than the US market.
Also, the gap between the top and bottom price
classes was bigger than in US market.
Between brands there were price differences of over
five times for same quantity.
Media
Advertising is the art of arresting the human
intelligence just long enough to get money from it.
Ever since mass media became mass media,
companies have naturally used this means of
communications to let a large number of people know
about their products. There is nothing wrong with that,
as it allows innovative ideas and concepts to be
shared with others.
In order to carry through the
brand message, media support
was a key driving force.
THANK YOU FOR
YOUR ATTENTION