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
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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
Executive Summary: Decreasing revenue for our Green Works product line puts us in a conundrum. Do we continue pouring advertising dollars into a product with a majority market share but unimpressive returns, or should we stop, thus sacrificing our desirable position in a market with massive growth potential?
In order to gain market shares through the low-income segment of the Brazilian market, Unilever should launch a new Detergent Powder brand at an affordable price, which could replace in the long-run Campeiro, its cheapest brand. However this strategy is not without any risks, since it can lead to the cannibalization of Minerva.
In a hurry to bring new products they are forced to sell off old products at discount. They are in a way cannibalizing their own products.
Financial Position: Currently, Fantastik has a 37.9% dollar share in the all-purpose cleaner market in Canada which amounts to $12,128,000 (Figure 2). Using the current retailer mark-up of 23%, we can find Fantastik’s sales which are 9,860,162.60 (Figure 2). Overall it is difficult to gauge how well Fantastik is doing. Its gross profit after costs of goods sold and discounts is $3,544,065. Since fixed costs are not known, we do not know if Fantastik is
Increasing international growth and commitment to the environment and their employees are major strengths for the company. Growth opportunities are present in the organic market, which is projected to grow 9% (Scott-Thomas, 2012), and the smoothie market, which will see a potential growth of 1.6% through 2013 (Technomic, 2012). Some of the weaknesses facing the company are its narrow target market in the organic product industry and lack of traditional advertising. Major competition from Odwalla and Naked Juice are threats to growth and the volatile market for fruit and other natural ingredients may cause unpredictable price increases and as well as an unpredictable future. Also, shifts in popularity of the trendy organic product movement may cause a decline in future revenues. However, both the smoothie and the organic/health food markets are growing rapidly and Clif Bar can secure a larger share in these markets with the introduction of Simply Clif.
Mountain Man Brewing Company is considering an expansion of its product line due to declining revenues. The family owned beer producer has built a strong brand around its prize product, Mountain Man Lager, over its last 70+ years of operation. Due to its highly valued brand, the organization is particularly fearful of the negative effect alternating its product mix could have on its reputation and image and the potential for customer alienation.
Proctor and Gamble-Scope is faced with a very important decision, they need to prepare a marketing plan for P&G’s mouthwash business for the next three years. They want to know how they are going to be able to
The main issue of the P&G Korea case is centered around the question of market share. P&G and Unilever are the two major market shareholders in the Korean detergent industry holding 80-85% of the total market share. The remaining 15-20% of the market is held by low-priced local Korean brands. There are no new markets either company can tap for further market share since most Korean households already use laundry detergent, making the market saturated. Other than peripheral chemical changes claimed to be “improvements”, there are no major innovations to be explored for product development or diversification. Per Ansoff’s strategic opportunities matrix, P&G and Unilever are both focused on Market Penetration,
Strengths of this brand include: it is the 4th largest marketer, brand longevity, and it has a large/high awareness in big cities. Its’ weaknesses are: low market share, low market coverage, limited bottlers’ network, relatively low advertising
Our value proposition to this segment will be: An affordable detergent powder with a “special touch.”
This case explains the challenges of newly promoted Domestic Brand Director, Anne Regnante, as she explores different options to increasing profits by 10% for Stewart’s household product division. Regnante’s primary concern is generating growth for its outdated and stagnant product, Reliance Baking Soda (RBS).
This market study was based on the well-established Clorox Company which had originally started in 1913. In 2006, after the placement of the new CEO, the company had developed a strategic plan to position them for their 100th anniversary in 2013. The plan was titled “The Centennial Strategy” which focused on long-term accelerated growth and developed metrics to measure the success of the plan. The plan focused on accelerated sales growth which would come from extending existing brands to adjacent categories, entering new sales channels with its existing brands and increasing penetration in countries where Clorox already did business. The Clorox Company developed a “3D” structure consisting of desire, decide and delight. This
Neutrogena uses a slow, more expensive manufacturing process to mold its fragile soap. In choosing this position, Neutrogena said no to the deodorants and skin softeners that many customers desire in their soap. It gave up the large-volume potential of selling through supermarkets and using price promotions. It sacrificed manufacturing efficiencies to achieve the soap’s desired attributes. (trade-offs that protected the company from imitators)
Dove was developed in the United States as a non-irritating skin cleaner for pre-treatment use on burns and wounds during World War II. In 1957, Dove bar reformulated as a beauty soap bar. In 1970s, the company launched promotional campaign for shop’s mildness as found in the study that Dove to be milder than 17 leading bar soaps. Through the years, Dove has expanded its product line to body wash, facial cleansers, moisturizers, deodorants and hair care products. In 2005, Unilever’s Dove product line revenue reached $3 billion. However, even though these events make Dove appear as a flawless brand, both Dove’s sales and market share were dwindling and the competition remains on the rise. Thus, under the management of
It is the leading hand dishwashing product in United States with a market share of 54% and is also trusted in major parts of the world. Hand dishwashing is very famous across India and a new liquid format of Dawn can help P&G increase their market share in the dishwashing liquid segment. (& Gamble n.d.)