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Procter & Gamble in Europe A roll-out launch. Group 1. GROUP MEMBER. Damar M997Z229. Binh M997Z248. Chayaporn M997Z224. My M997Z222. Hanh M997Z220. Outline. Introduction BC-18 in USA Market The situation in Europe in 1988 What is ‘Roll out’ Launch?
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GROUP MEMBER Damar M997Z229 Binh M997Z248 Chayaporn M997Z224 My M997Z222 Hanh M997Z220
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
INTRODUCTION Procter & Gamble touches people’s lives over two billion times every day!
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 co-marketed 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.
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 alsoEurope 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 Great Britain Europe France Germany Italy Spain 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
Market Research Data • Consumer research on 4 products Vidal Sasson: US & some European marketsPert Plus: unknown in EuropePanteneShamtu • There were no significant differences between countries.
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: 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
Media Plan • Targeted on West Germany and Great Britain
Media Plan for 1st 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 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 • 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. • 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.
SWOT ANALYSIS (cont.) • 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. • 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.
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.
