Group 1

Damar M997Z229 Binh M997Z248 Hanh M997Z220 My M997Z222 Chayaporn M997Z224

 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

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

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.

 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.

 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.

 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.

 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.

 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.

 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.

 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

 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 %)

 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 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

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

 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.

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

 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

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” “Is very new” “Is very convincin g and relevant”

 Targeted on West Germany and Great Britain

 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.

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

 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.

 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.

 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.

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 ? 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.

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.

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