The Light Duty Liquid Detergents (Ldl) Market

1428 Words6 Pages
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
Get Access
Related

  • Case Study About Procter and Gamble Company

    1228 Words  | 5 Pages

    Procter and Gamble Company Case Analysis This case study analysis focused on Procter and Gamble Company’s marketing plans and strategic options on its light-duty liquid brands (LDL). Procter & Gamble is the world’s largest producer of household and hygiene products. By 1981 P&G operated in 26 countries and sales totaled $11.4 billion with 90 consumer and industrial products manufactured in the United States. The case study provided some very detailed data analysis and reports in terms of

    Read More

  • P&G, Light Duty Liquid Detergents

    2266 Words  | 10 Pages

    Advertising & Promotion Spring 2009 Procter & Gamble (B) Light Duty Liquid Detergents May 16, 2009 Amanda Barraza Ted Chiang Olga Shipilo Clare Tan 1.What factors and policies guide promotion planning for the LDL’s? i)Budget Allocation: The LDL managers of Ivory Liquid, Dawn, and Joy spend about half of their marketing budget in advertising and with a lower share on promotion. This is different from the strategy of Colgate & Lever, who spends a higher percentage on promotion. The marketing

    Read More

  • Value Pricing at Procter & Gamble

    2562 Words  | 11 Pages

    EBS Business School EBS Universität für Wirtschaft und Recht Case Study Price Management (Managing Market Offerings) Fall Term 2012 Value Pricing at Procter & Gamble (A) Group Members: Abhir Bhomavat Akash Singh Amar Deep Singh Bin Zhang Pranaykumar Mahendra Jain Submitted to: Submission Date: Prof. Dr. Alexander Pohl 10 October 10, 2012                        Value Pricing At Procter & Gamble (A)     1    Table of Contents List of Tables and Figures ..................

    Read More

More about The Light Duty Liquid Detergents (Ldl) Market

Get Access