PROCTER & GAMBLE Company

The segmentation of the market is in the following categories:

SUBMITTED BY Dr. Punit G. Section D

Performance based- This is a sector which has shown greatest growth for the past ten years and comprises 35% of category volume. It is mainly used because it provides cleaning benefit. Mildness based- This segment comprises 37% category by volume but was not expected to grow at a high rate as people were giving more importance to performance and mildness segment gave primarily the benefit of being gentle on hands Price segment- This segment contributed 28% category by volume and was expected to increase because of the increased price sensitivity because of depression. Otherwise it had been on a decline for the past years and it also needed two to three times , the volume in the other segments to create same amount of profit.

LDL market is a mature market with the introduction of a new brand every 2years and an average of 2 price brands introduced and discontinued per year. P&G has 42% market share, followed by Colgate-Palmolive with 24% share and Lever brothers with 7% market share. The remaining 27% market consists of mainly generic and private label brands. Options: New brand introduction along the lines of Dawn with a distinct benefit Product improvement on a brand like joy which is expecting a growth of mere 1% for the next 5years Increasing marketing expenditure on an existing brand because of the low growth potential of LDL to build volume. Recommendations: Continue with the existing practice do not reposition/restructure any of the brands. Trial (test market) - Additional variety of the existing Dawn brand. A new product should be introduced to leverage the automatic dishwashers(ADW) Category of products

Rationale: There is no need to re-launch Joy or do anything in the Mildness segment as P&G has 75% market share in the category. Also the category has been growing at an average pace of 0.41% (average of 1971 to 81). Any change in Joy can lead to the cannibalization of the Ivory brand. The growth of the Performance segment is the only reason for the growth in the category at large. But P&Gs DAWN enjoys a 40% market leadership closely followed by Pamolives labels in this segment. Any improvement, if any needs to be added as an additional variety in the DAWN brand as it is a leader in the category and is ranked highest in the attributes awarded by the consumer. A test-marketing of the DAWN with improved benefits need to be assessed before going ahead with any improved changes in the brand. Rather than using the R&D development immediately, options should be explored to gain an entry into the ADW market, for e.g. detergents used with washing machines. A similar R&D exercise needs to be carried out for such a new product, thereby also gaining a first mover advantage.

Date 03-10-2011