Group 7

Veron

Yoseph

M987Z210 M987Z213

Bee Ken Duy Moon M987Z220 M9870114 M987Z218 M987Z241

Outline
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 Answering Questions Conclusion

INTRODUCTION

Procter & Gamble touches peoples lives over two billion times every day!

P&G History: A Legend of Firsts

1837 1859 1879 1924 1955 Brothers-in-law William Procter and James Gamble start a partnership, making and selling candles and soap in Cincinnati P&G sales reach $1 million The inexpensive, but high-quality Ivory soap is introduced P&G is one of the first to create a market research department to study consumer preferences and buying habits Crest, the first toothpaste with fluoride clinically proven to fight cavities, is introduced

1961
1980

Pampers is introduced and eventually replaces cloth diapers

Sales reach $10 billion

2002
2005

P&G develops Naturally feminine pads specifically to meet the needs of lowincome women in Latin America.
High Frequency Stores, Consisting of nearly 20 million stores across the world, FS represents a particular opportunity in fast-growing low income markets. 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.

Today

Product
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.

Product (Cont)
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.

Product (Cont)
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 comarketed by AstraZeneca. Pringles is a brand of potato chips.

Product (Cont)
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.

PRODUCT
Ivory
Target market is families Products: Body soap, body

Olay
Target Market is Women Products: face washes and

washes, dish soap, Sold in Grocery stores, Costco, Walgreens etc. Priced low

lotions, sunless tanners, antiaging products, body lotions, body washes Sold in grocery stores, Target, Wal-Mart, etc. Little higher priced compared to similar products

PRODUCT (Cont)
Zest
Target market is young adults

Noxzema
Target Market is teenagers

who are active and on the go Products: Scented bars of soap and body washes Sold in again Grocery stores, Costco, Wal-mart, Target etc. Priced low

and young adults Products: deep cleansing face pads, astringents, face wash, face lotions, deep cleaning masks Sold similar stores as Olay products Price low

Body Wash and Soap Segment

Part of the Personal &

Beauty line of products Earliest products of P&G was soaps Had 50 different types of soaps at one time Now has a select few brands

Family of Products
Personal & Beauty

- Cosmetics, Oral Care, Hair Care House & Home - Laundry care, Dish Soap, Snacks & Coffee Health & Wellness - Prescription drugs, Health Care Baby & Family Pet Care & Nutrition

BC-18 in USA Market

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.

BC-18 in USA Market

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.

The situation in Europe in 1988

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

Srie1

Europe

Allemagne

Espagne

Europe

France

Germany

Italy

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

Main competitors

ISSUES
What brand name should be

introduced in individual European markets? Is the 200ml bottle suitable in Europe? Price sensitivity if applying premium pricing? How to price product?

Market Research Data

Consumer research on 4 products
Vidal Sasson: US & some European markets Pert Plus: unknown in Europe Pantene Shamtu

There were no significant differences between countries.

PRODUCT
Compliment the new BC_18 product with high quality concept Easy, time-saving, everyday use

PRICE
Premium-priced segment -> to keep up the image of the shampoo as a high quality and innovative product
1/ 4.99 DM for the 200 ml bottle 2/ 5.99 DM for the 250 ml bottle

4Ps
PLACE
Department stores - supermarkets, with a special decoration.

PROMOTION
- 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.

Hairdressers - beauty salons - personal care shops (directly and effectively impact on clients)

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

Restriction
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.

Marketing Strategy
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

Pricing and Packaging Strategy

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

Consumer Test results (%)

Vidal Sassoon Wash & Go Product concepts Would definitely buy Is very new Is very convincin g and relevant 4.99DM/200 ml 29 Shamtu 2 in 1 silkiness and bounce 4.99DM/200 ml 20 4.99DM/25 0 ml 27 Pantene Perfect care 4.99DM/200 ml 28 5.99DM/200 ml 17 Pert Plus Wash & Go 4.99DM/200 ml 28

41 70

40 73

41 72

39 73

40 72

40 70

Media Plan
Targeted on West Germany and Great Britain

Media Plan for

st 1

year

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
TVC in prime time Print Ad (Newspapers and Magazines) Give sampling in public places and big hypermarket Display activities

Quarter 2 Quarter 3 Quarter 4

TVC in prime time Print Ad (Newspapers and Magazines) Give sampling in public places and big hypermarket Display activities TVC Print Ad in Magazines Special Ad Give sampling at hypermarket TVC Print Ad in Magazines Special Ad Give sampling at hypermarket

Media Plan for Following Years

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.

SWOT ANALYSIS
Strengths
Global leader in health and

Weakness
Production cost Production capacity for the

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.

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&Gs 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.

SWOT ANALYSIS (cont.)

Opportunities
The growth of the shampoo

Threats
The number of suppliers and

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.

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.

QUESTION AND ANSWER

ROLL-OUT LAUNCH?
What is roll-out?

The process by which a company introduces a new product or service to different geographical markets or consumer segments
Would I undertake a roll-out launch? The answer will always

be yes, of course all depending on the PEST analysis (Political, Economical, Social and Technological Factor Analysis)
In what country order? That would also be determined by our

companys objectives. But these are the steps I would look at for my roll-out launch;

Examine the cost and revenue implications of 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?

Answer, there is some loss might be expected in first year, due to the fact that, they pay huge number of money to advertise and the affection and result could not be see at short term. also, we believe that, any company might have some modification to adapt different countries market, in this case, P%G add more brand to cater the consumer who has difference budget.