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The Light Duty Liquid Detergents (Ldl) Market

Decent Essays

I. Executive Summary
Chris Wright, associate advertising manager of Packaged Soaps and Detergents (PS&D) division at Procter and Gamble (P&G) needs to evaluate how to increase the volume of its light duty liquid (LDLs). 3 alternatives for volume growth are considered for analysis based on the market segment (price/ performance/ mildness): (1) introduction of a new brand, (2) product improvement of an existing brand and/or (3) increased marketing expenditures on existing brands. Ultimately he must make recommendations on the above. The problem facing PS&D is how to retain its dominant competitive position while at the same time increase volume share and profits.
II. Introduction
The Light Duty Liquid Detergents (LDL) Market: For the …show more content…

Sunlight success can be attributed to its being a new product.
2) Joy brand eager to restage the brand with new “no-spot” formula. This would reduce its COGS by $3 million.
3) New product introduction in this market will result in cannibalization of customers from Joy and Dawn in this segment.
4) Development of a new technology for a high performance product. The formula called H-80, combined suspended non abrasive scrubbers with highly effective detergent system provides superior cleaning versus other LDLs
5) The industry average per caseload is $17.5; P&G commands $19.8 per caseload for all its products.
In light of the competitive threat, the focus in this segment should be to maintain and gain market share. Introducing a new product in this segment is likely to lead to cannibalization of consumers from the Joy and Dawn brands. With the success of Sunlight in the Phoenix market the segment should be monitored closely not to loose any market share. Marketing promotions (coupons, bundling pads with LDL, targeted commercials) should be made to reduce the competitive threat. Introduction of a third brand is likely to lead to reduction of the marketing budgets for each brand.

Restaging the Joy brand requires no additional capital investment and saves $3 million in cost of

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