MARKETING PLAN PROCTER & GAMBLE ARIEL

ALEJANDRA VARGAS PEDRAZA

BUSINESS ADMINISTRATION

COUNTRY INFORMATION

GDP
120.000.000

100.000.000

80.000.000

60.000.000

40.000.000

20.000.000

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

SOURCE: GRAPHIC BY ALEJANDRA VARGAS, DANE.

2006

INFLATION
25,00%

20,00%

15,00%

10,00%

5,00%

0,00% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

PRECIOS AL CONSUMIDOR
SOURCE: GRAPHIC BY ALEJANDRA VARGAS, DANE.

PRECIOS AL PRODUCTOR

INFLATION OF THE SECTOR OF CLEANLINESS PRODUCTS

155

151,86

150

145

140,32

140

135

130 2003 2004

SOURCE: GRAPHIC BY ALEJANDRA VARGAS, http://www.colombiaempresarial.com/estadisticas/RADAR/ABRIL/

$ 3.700

EXCHANGE RATE

$ 3.200

$ 2.700

$ 2.200

$ 1.700

$ 1.200

$ 700

$ 200 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

SOURCE: GRAPHIC BY ALEJANDRA VARGAS, DANE.

COLOMBIAN POPULATION
50.000.000

45.000.000

40.000.000

35.000.000

30.000.000

25.000.000

20.000.000

15.000.000

10.000.000

5.000.000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

SOURCE: GRAPHIC BY ALEJANDRA VARGAS, DANE.

SECTOR OF CLEANLINESS PRODUCTS

13% 3% 4% 40%

SOAP IN PASTE TO WASH DETERGENTS IN POWDER SOLID DETERGENTS BITUMENS

11%

DESMANCHADORES OTHERS

29%

SOURCE: GRAPHIC BY ALEJANDRA VARGAS, http://www.andi.com.co/camaras/cosmeticos/default.htm

EXPORTATIONS OF THE SECTOR 2004

10% 4% 5%

21%

60%

LIMPIADORES DE VIDRIOS DETERGENTES EN POLVO

JABONES INDUSTRIALES OTROS

CHAMP PARA ALFOMBRA

SOURCE:GRAPHIC BY ALEJANDRA VARGAS, http://www.andi.com.co/camaras/cosmeticos/default.htm

SECTORS OF MINOR GROWTH

CATEGORY OF MINOR GROWTH
Facsimile of video and image Sevice of parking Dress Shod for women Trousers Others articles of clothing Blouse

GROWTH APRIL 04/05

-6,24% -6,52% -7,13% -7,55% -7,90% -9,25% -9,43%

Detergent
Articles of culture and enjoy Carrots Onion

-10,56%
-12,27% -15,73% -19,53%

SOURCE:http://www.colombiaempresarial.com/estadisticas/RADAR/ABRIL

BRANDS

MARKET SHARE

5,8% 15,8% 3,6%

11,8%
RINDEX ARIEL

23,9%

BOLD FAB LAVOMATIC TOP

7,4% 3,4% 28,3%

AS MARCAS PRIVADAS

SOURCE: GRAPHIC BY ALEJANDRA VARGAS, REVISTA DINERO #208.

MARKET SIZE IN UNITS

RINDEX ARIEL

7.047.000 19.197.000 4.374.000

14.337.000

BOLD FAB

29.038.500

LAVOMATIC TOP

8.991.000 34.384.500 4.131.000

AS MARCAS PRIVADAS

TOTAL UNITS: 121.500.000 IN 1000 gr

SOURCE: BY ALEJANDRA VARGAS

MARKET IN VALUES
RINDEX ARIEL

17.265.150.000 55.191.375.000 15.851.376.000 42.230.727.000 147.922.119.000 145.583.973.000 19.721.394.000 50.724.306.000

BOLD FAB LAVOMATIC TOP AS MARCAS PRIVADAS

TOTAL: 494.490.420.000 IN 1000 gr SOURCE: BY ALEJANDRA VARGAS

TOM

3% 6%

2% 2%

9%
FAB ARIEL

48%

TOP LAVOMATIC RINDEX DERSA/AS OTROS

30%

SOURCE: REVISTA DINERO #228, GRAPHIC BY ALEJANDRA VARGAS.

TOM 2000 AND 2005

60%

56%

50%

48%

40%

2000 30%
30%

23%
20%

2005

10%

0% FAB ARIEL

SOURCE: REVISTA DINERO #228, GRAPHIC BY ALEJANDRA VARGAS

STRATEGIC MAP
H I G H

P R M E D I I U C M EL
O W

LOW

MEDIUM

HIGH

QUALITY

BACKGROUNDS
Procter and Gamble is the result of a tradition of more
than 160 years. In 1837, William Procter and James Gamble founded a small company for the production of candles and soaps in Cincinnati's city, Ohio. In 1859 the sales of Procter and Gamble reached one million dollars and in that moment the company had 80 employees. In 1937 was celebrated its 100 Anniversary and the sales were reaching 230 million dollars. Procter and Gamble threw its first spot of the soap "Ivory" during the retransfer of the first game of league of baseball. In 1980 the company reached sales of 10 trillions of dollars and in 1991 the company renewed its corporate image.

 The acquisitions of "Max Factor" and "Betrix" increased

the presence of Procter and Gamble worldwide in the category of cosmetics and perfumery. In 1993 the sales of the company were exceeding 30 trillions of dollars. Nowadays the sales of the company worldwide exceed 40 billion dollars. Procter and Gamble has operations in 80 countries and sells more than 300 brands of products in more than 140 nations. In 1968, the company introduced Ariel. It was the first detergent with enzymes biological and with a notable superiority respect to any other competitor on the market. During the decades of the 70s and 80s Ariel began a long career of development of the product across constant innovation, searching always to satisfy the needs of the consumers

STRENGTHS Variety of presentations.

SWOT

WEAKNESSES

The support that Ariel has for belonging to P&G.

High quality of the product. It has been for many years in the market (tradition). The brand has positioning in the market. OPPORTUNITIES High volume of purchase in homes. The consumers expect and require a major number of atributes so P&G can increase its briefcase.

Vulnerability of the prices because it can affect the profitability. Ariel has the highest price of the market.

THREATS The sector presents a negative growth. Great variety of brands on the market. Variation of the economic situation of the country.

FINANCIAL ANALISYS
DOLARS IN MILLIONS

2004 NET SALES COST OF SALES MARGIN 1 EXPENDITURE (ADVERTISING INCLUDED IN EXPENDITURE) MARGIN 2 7403 3611 3792 2377 0,246 1415

% 100% 49%

32% 0,0033%

SOURCE: http://www.pg.com/annualreports/2004/pdf/PG2004AnnualReport_Online.pdf, BY ALEJANDRA VARGAS.

TARGET
THE PRODUCT IS FOCUSED TO FAMILIES WHICH ARE WORRIED FOR HAVING THE CLOTHES CLEAN AND TO TAKE CARE OF THE ENVIRONMENT OF STRATUMS 3,4,5 and 6.

QUANTITATIVE OBJECTIVES
TO INCREASE THE TOM FROM 23% TO
25%. TO INCREASE THE PARTICIPATION FROM 23.9% TO 24.9%. TO INCREASE THE SALES IN 3%.

QUALITATIVE OBJECTIVES
TO CREATE CONSCIENCE ABOUT
THE CARE OF THE ENVIRONMENT. TO SUPPORT THE QUALITY OF THE PRODUCT.

PRODUCT STRATEGY
TO MAKE A LINE EXTENSION LAUNCHING A BIODEGRADABLE DETERGENT WITH PARTICLES THAT CLEAN THE WATER. TACTICS: THE DETERGENT IS GOING TO FULFILL THE SAME FUNCTIONS OF OTHER DETERGENTS BUT AT THE SAME TIME IS GOING TO CLEAN THE WATER.

INITIALLY WILL BE IN POUCHES OF 500 GR.

DISTRIBUTION STRATEGY
TO USE A SELECTIVE DISTRIBUTION FOR ARRIVING TO THE TARGET PROPOSED. TACTIC: TO DISTRIBUTE IN SUPERMARKETS, CONVENIENCE STORES, SMALL RETAILERS, CHAIN STORES.

PRICE STRATEGY
TO ESTABLISH PRICE IN ACCORDANCE WITH TO PRODUCT MORE REPRESENTATIVE. TACTIC: THE PRICE WILL BE 1.5% MORE HIGH THAN THE PRODUCT MORE REPRESENTATIVE BECAUSE IS A PRODUCT THE MAJOR TECHNOLOGY. DURING THE FIRST MONTH OF LAUNCHING.

CONSUMER COMUNICATION STRATEGY

SHOWING THE BENEFITS OF THE PRODUCT THROUGH MASS MEDIA. TACTICS: THROUGH PUBLICITY IN MAGAZINES THROUGH PUBLICITY IN BIG POSTERS (VALLAS) THROUGH PUBLICITY ON TV IN PRIME TIME.

TRADE COMUNICATION STRATEGY

SHOWING TO THE TRADE THE CHARACTERISTICS OF THE NEW PRODUCT THROUGH CATALOGUES. TACTIC: TO SEND THROUGH THE MAIL THE CATALOGUE WITH THE DESCRIPTION OF THE NEW DETERGENT.

CONSUMER PROMOTION STRATEGY

TO GENERATE PRODUCT TRIAL AND TO INCREASE THE NUMBER OF CONSUMERS THROUGH COUPON OF DISCOUNTS. TACTICS:

TO GIVE A SAMPLE OF THE PRODUCT FOR THE

PURCHASE OF TRADITIONAL ARIEL. THE COUPON OF DISCOUNTS WILL BE OF 10% IN THE NEXT PURCHASE OF THE NEW PRODUCT.

TRADE PROMOTION STRETEGY

TO DO VOLUME DISCOUNTS IN THE MOMENT OF THE ORDER. TACTIC: THE DISCOUNT WILL BE OF 7% OVER THE ORDER AND IT IS DURING TWO MONTHS.

ADVERTISING AND PROMOTION FLOW CHART

ACTIVITY PUBLICITY TRADE COMUNICATION CONSUMER PROMOTION TRADE PROMOTION JUNE
BIG POSTERS ADVERTISING (5) CATALOGUE SAMPLE OF THE COUPONS PRODUCT DISCOUNTS DISCOUNTS 7% 7% COUPONS ADVERTISING (3) ADVERTISING (4)

JULY

AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MRCH APRIL MAY
MAGAZINES BIG POSTERS ADVERTISING (3) MAGAZINES BIG POSTERS

MAGAZINES MAGAZINES

ADVERTISING AND PROMOTION SPENDING

IN MILLON PESOS

ACTIVITY PUBLICITY

JUNE JULY AUGUST SEPTEMBEROCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MRCH APRIL MAY TOTAL $ 1$1 $ 1 $ 1 $ 4 $ 15 $ 15 $ 15 $ 45 $ 125 $ 75 $ 100 $ 75 $ 375 $ 50 100 $ 1 $ 15 $ 75 $ 16 $ 474

TRADE $ 50 COMUNICATION TOTAL $ 191 $ 1 $ 75 $

CONCLUTIONS
The detergents and soaps have a major
demand because it are products of the basket family. Ariel has many competitors. Ariel is the second brand in TOM and participation. P &G supports the brand. The sector presents a negative growth.

BACK UP

SOURCE: http://www.pg.com/annualreports/2004/pdf/PG2004AnnualReport_Online.pdf

SOURCE: http://www.pg.com/annualreports/2004/pdf/PG2004AnnualReport_Online.pdf

2004 Results

For the fiscal year ended June 30, 2004, our sales, earnings and free cash flow grew above our long-term targets. Every business segment and, within the MDO, every geographic region posted volume growth. We increased our overall market share, with share growth in categories representing approximately 70% of the Companys net sales. We increased market share in each of our core businesses of Baby Care, Fabric Care, Feminine Care and Hair Care. Net sales increased 19%, including the impact of the Wella acquisition that was completed in September 2003. Organic sales increased 8%. Net earnings increased 25% behind higher volume and the completion of the Companys restructuring program, which reduced earnings by $538 million in 2003. Operating cash flows were $9.36 billion. Free cash flow productivity was 113%.

SOURCE: http://www.pg.com/annualreports/2004/pdf/PG2004AnnualReport_Online.pdf

SOURCE: http://www.pg.com/annualreports/2004/pdf/PG2004AnnualReport_Online.pdf

FABRIC AND HOME CARE

The Fabric and Home Care business unit delivered another year of solid results. Volume increased 9%, sales grew 10% and net earnings grew 7%.

SOURCE: http://www.pg.com/annualreports/2004/pdf/PG2004AnnualReport_Online.pdf