1. Group 7

2. Veron M987Z210 Yoseph M987Z213 Bee M987Z220 Ken M9870114 Duy M987Z218 Moon M987Z241

3. 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

4. Procter & Gamble touches people’s lives over two billion times every day! INTRODUCTION

5. P&G History: A Legend of Firsts 1837Brothers-in-law William Procter and James Gamble start a partnership, making and selling candles and soap in Cincinnati 1859P&G sales reach $1 million 1879The inexpensive, but high-quality Ivory soap is introduced 1924P&G is one of the first to create a market research department to study consumer preferences and buying habits 1955Crest, the first toothpaste with fluoride clinically proven to fight cavities, is introduced 1961Pampers is introduced and eventually replaces cloth diapers 1980Sales reach $10 billion 2002P&G develops Naturally feminine pads specifically to meet the needs of low- income women in Latin America. 2005High Frequency Stores, Consisting of nearly 20 million stores across the world, FS represents a particular opportunity in fast-growing low income markets. TodayP&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.

7. 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.

8. 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.

9. 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 co- marketed by AstraZeneca. Pringles is a brand of potato chips.

10. 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.

11. PRODUCT Ivory Olay Target market is families Products: Body soap, body washes, dish soap, Sold in Grocery stores, Costco, Walgreens etc. Priced low Target Market is Women Products: face washes and lotions, sunless tanners, anti- aging products, body lotions, body washes Sold in grocery stores, Target, Wal-Mart, etc. Little higher priced compared to similar products

12. PRODUCT (Cont) Zest Noxzema Target market is young adults 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 Target Market is teenagers and young adults Products: deep cleansing face pads, astringents, face wash, face lotions, deep cleaning masks Sold similar stores as Olay products Price low

13. 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

14. 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

16. 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.

17. 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.

18. 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

19.  Great Britain and Germany : use the most shampoos.  Italy: weakest rate with 77% of users The European market & shampoo users EuropeFranceGermanyItalySpain Great Britain The number of shampoo users in the European countries (in %)

20. Main competitors

21. 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?

22. 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.

23. 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 PLACE Department stores - supermarkets, with a special decoration. Hairdressers - beauty salons - personal care shops (directly and effectively impact on clients) 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. 4Ps

24. 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

25. 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.

26. Marketing Strategy 1. Positioning: 2. Pricing: the premium price segment 3. Target group: all people in Europe – Pan European 4. Source of business: new and old users Time-savingEasy to useUse everydayConvenient

27. 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

28. Consumer Test results (%) 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” 292027281728 “Is very new” 4140413940 “Is very convincin g and relevant” 707372737270

29. Media Plan Targeted on West Germany and Great Britain

30. Media Plan for 1 st 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.

31. Quarter 1Quarter 2Quarter 3Quarter 4 TVC in prime time Print Ad (Newspapers and Magazines) Give sampling in public places and big hypermarket Display activities 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 1st year

32. 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.

33. SWOT ANALYSIS 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. 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.

34. SWOT ANALYSIS (cont.) 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. 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.

35. Long term Marketing Objective in Europe market

36. 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.

37. How did P&G do ? 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. Add more brands with BC 18 Technology.

38. Media In order to carry through the brand message, media support was a key driving force. 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.

39. QUESTION AND ANSWER

40. 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 company’s objectives. But these are the steps I would look at for my roll-out launch;

41. 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?

42. 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.

43. 謝謝 有問題嗎 ?