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Procter Gamble in Europe A roll-out launch

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Procter Gamble in Europe A roll-out launch

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    1. Procter & Gamble in Europe A roll-out launch Group Two

    2. Group Two Members

    3. Contents

    4. Company Logo COMPANY & BACKGROUND

    5. Background P&G is the world’s biggest manufacturer of packaged consumer goods and a global leader in health and beauty care products, detergents, diapers and food. P&G was founded in the USA in 1837 In 1985 P&G bought the Richardson-Vicks company (Head&Shouders, Vidal Saaaoon, Pantene) In 1987 P&G bought the German Blendax Group (Dental-care products)

    6. Also, P&G celebrated its 150th anniversary. The company ranked as the second-oldest company among the 50 largest Fortune 500 companies. Moreover, The company increased its presence in the European personal care category with the acquisition of the Blendax line of products. It was the largest international acquisition in company history. In January 2005 P&G announced an acquisition of Gillette. In 2005 Procter & Gamble operated on the markets of more than 160 countries and become the market leader in consumer goods company.

    7. THE SITUATION IN THE USA

    8. The situation in the USA The USA shampoo market is highly fragmented, with a large number of suppliers and brands. P&G was decided to introduce the BC-18 technology in the US market at the beginning of 1986 by replacing the brand Pert Plus. Long-term Marketing goal: to take over the leading value position in the USA shampoo market.

    9. Pert Plus was positioned as the shampoo that offered attractive hair in the convenient way. The target group was to be all people. The source of business would also come from the group of people who did not use Pert or conditioner before. Constant growth of the shampoo market is due to the increase in hair-washing ( out of the total population, 90% use shampoo). Large price differences between premium and value brands.

    10. Market share value in the first year is 5%. Market share in the long-term is at least 10%. It was positioned as the shampoo that offered attractive hair in a convenient way.

    11. Marketing objective of Pert Plus: achieve a long-term 10% value share market leadership in the US shampoo market. For first year of lauch is a 5% value share.

    12. Pert Plus Introductory Activities

    13. THE SITUATION IN THE EUROPE

    14. There was a steady increase in the shampoo market and the conditioner market. But still below the 44% (had been reached in the USA) in the share of shampoo users who also used conditioner. South European countries showed the most potential area like Great Britian, West Germany, France, Scandinavia, Benelux. With Great Britation was a country having the strongest user share (42%).

    15. Sizes and Shelf Prices, Shampoo, Europe, 1988 (DM)

    16. European Market The European market was even more crowded than the US market in terms of the number of suppliers and brands available. The differences of price between brands were well over 5 times for the same quantity.

    17. Market Shares, Shampoo, Key Brands, Europe, 1988 (volume (value) share in %)

    18. The Challenges In European Market In 1988, BC-18 decided to introduce in European Market. But there were 3 questions need to deal: - The first question was that “what brand name to introduce the product in the individual European Market”. - The second question was that “whether a 200 ml bottle would be accepted by European Market like in the USA”. - The third question was about price at premium pricing.

    19. Products Used for European Market Testing European potential product: Vidal Sassoon. US brand: Pert Plus. Two national brands established in their domestic market: Pantene and Shamtu.

    20. Price And Packaging Just tested on only two brands: - One from the lower price segment. - Another brand from high-quality product concept.

    21. Consumer Test, Europe, Results (%)

    22. Results The high quality brand concept would allow the product to command a premium price. An opportunity existed to use an established brand. Consumer testing showed no significant difference between the brands, allowing for the Pert Plus brand to be introduced.

    23. Media Plan Targeted on West Germany and Great Britain. Because of the market sizes of using shampoo and conditioner and awareness of the consumers.

    24. Media Plan for 1st Year Strongly using TV 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, etc.

    25. Media Plan for Following Years Introduce the product to other European countries such as France ,Scandinavian and Benelux 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.

    26. ECONOMIC and RESTRICTIONS

    27. Economic Cost structure of existing P&G shampoo brands as a template for BC-18 cost planning. Producing the new product were relatively easy to estimate: - Whole European market in England. - Use the available 200ml or 250ml bottle. - Work capacity of 50%.

    28. Restrictions To determine costs it was necessary to consider the varying advertising and support budgets in the individual countries. The available production capacity. Lead times for alternative pack sizes and designs. - The development of a new 200 ml bottle would take a lead time of 12 months. - Using the existing US bottle for Pert Plus would not require any lead time.

    29. CONCLUSION

    30. Conclusion Creating and launching new brands at record pace; establishing leadership positions in the more important developing markets of the world. Strengthening its relationship with the retail customers; and use of information technology as a strategic tool. Establish collaborative relationships like strategic alliances with key material suppliers.

    31. In P&G's business technical know-how is changing rapidly. Therefore, strategy-critical activities are R&D, marketing and product innovation and getting new products onto the market quickly. P&G should focus in strengthen its core competencies in marketing and R&D to sharpen its performance and rises them to the rank of distinctive competence in order to get competitive advantage over competitors.

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