PROCTER & GAMBLE
Marketing Management
GROUP’S MEMBERS
.
Mamunur
Rahsid
Betty
Group 8 – Case 2 - IBM
Nguyen Tan
Nhat Duy
Do Nguyen Yen
Nhi
Huynh Tan Tai
ViVi
OUTLINE
1. Introduction
2. Europe Market
3. America Market
4. Four Ps
5. Customer Behavior
6. Conclusion
INTRODUCTION
The Procter & Gamble Company is primarily a
manufacturer and distributor of household products.
Its products are sold throughout the United States
and abroad. The Company is a corporation that was
incorporated under the laws of Ohio in 1905 and
was the outgrowth of a business founded in 1837 by
William Procter and James Gamble. The
company’s principal executive offices are located at
One Procter & Gamble Plaza, Cincinnati, Ohio
45202, USA.
BACKGROUND
• 1837: WilliamProcter and James Gamble start
making and selling their soap and candles
• 1878:Procter&Gamble first WHITE SHOP hit the
market.
• Renamed as Ivory soap(Accidental DevelopmentSoap Mixer+More Air)
BACKGROUND
• 1890:P&G sets up an analytical lab at Ivory dale to
study and improve the soap-making process.
• 1962:Distribution of CAMAY Soap by Rei-Werke.
• 1980:China Established special economic zones to
promote free trade and opened local markets to
foreign investments.
BACKGROUND
• 1985:Proter&Gamble lost $40 million Dollars as 3
major Japanese firms Dominated in disposable
products.
• 2005:P&G and Gillette merge into one company
and add five more billion dollar brands to our
product portfolio, including Gillette and Braun‘s
shaving and grooming products, the Oral-B dental
care line and Duracell batteries.
BACKGROUND
• 2007:The company’s operations are categorized
into three “Global Business Units” Beauty Care,
Household Care, Health & Well-Being.
EUROPE MARKET
• In the beginning of the 1980s it became more and
more obvious that greater co-ordination was needed
between local market in Europe.
• Marketing strategies had to be thought through
from a European perspective.
• In Europe a steady growth of the shampoo market
and the conditioner market could also be seen.
EUROPE MARKET
• The shares of shampoo users who also used
conditioner was still below the 44% which had
been reached in the U.S.A. (Particularly true of
Southern European countries.)
• An underdeveloped conditioner market was,
however, also evident in French. (only 10% of
shampoo consumption )
EUROPE MARKET
• Among the considered European countries, Great
British, with 42%, had the strongest user share.
• With respect to the number of suppliers and brands,
the European market was even more crowed then
the U.S.A market, undoubtedly a function of the
different nationalities.
AMERICA MARKET
• Hair care market-sub markets
• Relevant market are 1.shampoo:increased in
hair-washing and 2.conditioner:by new user
• High fragmented-large supplier and brands.
• Market shares have signs of movement.
AMERICA MARKET
• 1.volume and 2.value-based market: considerable
difference
• Example: P&G-losing market share in 1986, then
introducing BC18 for replacing with Pert Plus.
MARKET – PERT PLUS: BC18
• Marketing goal: leasing value position/ market
share 10% minimize.
• (first year: market share value of 5%)
• Position shampoo which offer attractive hair in a
convenient way.-by unique formula. (with mild
shampoo and effective conditioner)
MARKET – PERT PLUS: BC18
•
•
•
•
Target market: all public
Source: come from people who didn’t use before.
Pert Plus was introduced by US$3.20
Marketing strategy: Pricing premium-priced
segment (up to 100% of the low price market)
MARKET – PERT PLUS: BC18
• Introducing plan:1.first 12months-TV ad, Sample,
Listed fund.
• 2.following 12months-Display activities in
hypermarkets.
PRODUCT
• No connotation in a particular language’s history or
region
• Should be easily pronounceable in each country
• Vidal Sassoon is an already well-known brand name
in US and several European countries
• Compliment the new BC_18 product with high
quality
PRICE
• Premium-priced segment -> to keep up the image of
the shampoo as a high quality and innovative
product
• There are many prices/package depend on each
brand and market
1/ 4.99 DM for the 200 ml bottle
2/ 5.99 DM for the 250 ml bottle
PLACE
Department stores - supermarkets,
with a special decoration.
Hairdressers - beauty salons personal care shops (directly and
effectively impact on clients)
PROMOTION
Link
Promoted in a homogeneous way and conduct
promotion campaign and advertising campaign
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.
SHORT – TERM OBJECTIVES
• To attract new European customers who never used
conditioners and customers from competing brands.
• Encourage people to use the new the new BC-18
• Compete with the different national brands which
are established.
• Have a plan to take Vidal Sassoon out of the market
and try to convince the remaining Vidal Sassoon
customers to use Vidal Sassoon Plus.
SHORT – TERM OBJECTIVES
• To establish brand loyalty
• Enable customers to become more familiar with the
range of products available at P&G
• Have a plan to take Vidal Sassoon out of the market
and try to convince the remaining Vidal Sassoon
customers to use Vidal Sassoon Plus.
• To establish brand loyalty
• Enable customers to become more familiar with the
range of products available at P&G
MARKETING OBJECTIVES OF EACH
COUNTRY
Scandinavi
a
• Vidal
Sassoon was
used and
conditioner
market is
good
• 4 – 4.5%
market share
can be gained
Benelux
France
• Conditioner
market is
bigger than
France market
• Gain 3.5%
market share
in the 1st year
and 4% in the
2nd year
• Very difficult to
introduce a
new
completely
product into a
small market
• 2.5% market
share can be
expected in
the 1st year
and 3% in the
2nd year
West
Germany
- Attract
consumer by
conditioner
component
- Get 3%
conditioner
market share in
the 1st year and
3.5% in the 2nd
year
Great
Britain
- Attack Timotei’s
leader position
and maintain
Head &
Shoulders
- Try to gain 4%
volume market
share in the 1st
year and increase
5% in the 2nd year
LONG – TERM OBJECTIVES
Establish a market share that will expand
and gain in recognition.
Increase steadily the market share of the
market in Europe.
Strengthen company position as a market
leader.
Get more benefits from revenues
CONSUMER BEHAVIOR
In USA Market
• Have many groups as an subculture. There is
Hispanic consumer, black consumer others than
white
• Common American Consumer: easy to except new
things, and price conscious.
• Hispanic: tend to buy more branded, higher-quality
products, but they also very loyal customer.
• Black Consumer: More price conscious, but
strongly motivated by quality and selection.
CONSUMER BEHAVIOR
• In the late 1980’s health care and beauty care
products were one of the fastest growing market as
the US population grew both older and more health
conscious.
• The growth of conditioner market are slow because
is driven only by the new customer .
CONSUMER BEHAVIOR
In Europe Market
• The European market is heterogeneous, multicultural
and multilingual; therefore, the name chosen for the
shampoo should have to no connotations in a
particular language's history or religion.
• Moreover, the name should be easily pronounceable in
each culture.
CONSUMER BEHAVIOR
• The share for people who use shampoo and
conditioner are low comparing with US market
• 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)
CONCLUSION
At present , Procter&Gamble brands touch the
lives of people around the world.The company has
one of the strongest portfolios of trusted,
quality ,leadership brands.SO the company
manufactured and marketed nearly 300 brands to
consumers in over 160 countries across the globe.
CONCLUSION
Procter and Gamble 's historical growth has been
mainly driven by its strategy of global
conglomeration through diversification and
acquisitions . For this reasons the company to
easily establish its global operations and to
continue penetrating new markets.