Assignment 1 Procter and Gamble Company Case

2245 Words Mar 21st, 2012 9 Pages
Assignment 1: Procter & Gamble Company (A) Case Analysis

(Submitted in fulfillment of the assignments for Marketing Management)

Indian Institute of Foreign Trade, Delhi

Table of Contents

Assignment ..................................................................................4
Executive Summary .....................................................................4
2.Analysis ......................................................................................6
Recommendations ......................................................................13

Assignment

To analyze the Procter & Gamble Company (A) Case to take decision related to LDL brands from the available options. What effect would each option have on each of the
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Analysis

Procter & Gamble Company Situation Analysis:
P&G is strongly positioned in Light-Duty liquid detergent (LDLs) category. The LDL market can be segments on the basis of 3 benefits performance, mildness and price sensitivity. P&G has 3 products: Joy (Performance, 12.1%), Ivory (Mildness, 15.5%) and Dawn (Performance, 14.1%).
Wright is looking into the possibility of volume growth in terms of one of the three options:
(a) Introduction of a new brand
(b) Product improvement on existing brand
(c) Increased market expenditure on existing brand

Major Issues: In 1981, the Packages Soap and Detergent division of Procter and Gamble held 42% of light-duty liquid detergent industry sales. The market became quite static with limited growth forecasted in the future.
Growth opportunities included the following:
(a) Brand introductions (price, mildness or performance)
(b) Performance product improvements to all LDL’s (Ivory, Dawn or Joy)
(c) Increased marketing expenditures on a current brand

New Brand Introduction issues: • A new brand is an appealing idea considering the success of the performance of brand Dawn. In two years, it rose to the number two position in the LDL category. Thus, the introduction of the higher performance product with formula H-80 was an important consideration. • The addition of H-80 would also mean PS&D division would sell three performance brands. If the brand is introduced, it can be reasoned that an initial

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