Case #9 Procter and Gamble

In Europe

Group#6

Group 6 Members

Ha Phuoc VuM997Z244

Nguyen Tran Thao BienM997Z213

Bui Duy DucM997Z202

Patlada Sae-Ching (Nan)M997Z240

Nuntanut Sae-Ching (Vee)M997Z236

Thai Luong ThuM997Z221

GROUP#6

1/ Introduction

2/ SWOT Analysis

3/ Marketing Strategies

4/ Conclusion

Outline

INTRODUCTION

GROUP#6

Started in 1837 by William Procter and James Gamble as a manufacture to produce soap and candles now is one of the largest global companies in the world which produces consumer products andaims at improving the lives of people over theworld as today same in the future

Introduction

Introduction

P&G OF THE 21st CENTURY IS:P&G OF THE 21st CENTURY IS: • one of the biggest transnational

companies in the world, • a perfectly managed business in retail

environment, • he company with its strong presence in

the countries on all the continents,

Introduction

300 different brands

around 5 billion customers around

the world

138,000 employees in more than eighty

countries

Introduction

P&G OF THE 21st P&G OF THE 21st CENTURY IS:CENTURY IS:

• the 8th largest corporation in the world by market capitalization,

• the14th largest US company by profit.

SWOT ANALYSIS

GROUP#6

• Strength from its brand.

• Strength from the team of researchers

• Invest a lot of resources into R&D

Strengths

• Heavy investment in technology, product design and human resources

• It has large market shares in the market

• Strength in the advertising, promotion

Strengths (cont’d)

Weaknesses

• The competition on prices with local brands

• not create the differences in the identification of its product lines.

• no significant difference with the products of competitors

Opportunities

• Well defined market niche

• just in time manufacturing technology

• wide range of demography

• the removal of trade barriers in some foreign countries.

Threats

• New entry into the household product industry

• Use of substitute products.

• Unfavorable business laws and political instability

• Investors do not like uncertainty

MARKETING STRATEGIES

GROUP#6

Marketing Strategies

Launch product in European Market

• To be success in European market requires :

- Greater co-ordination was needed between local markets in Europe.

- Maximizing efficiency across countries.

- Pooling know how and manufacturing with better economies of scale.

Marketing Strategies

Launch product in European Market (cont.)

• P&G introduce concept “Euro-balancing”.

• Euro-balancing:– As much standardization as possible, as little

localization as necessary.– Still need some localization due to market

conditions still vary widely within Europe.

Marketing Strategies

Launch product in European Market (cont.)

• Marketing objectives :– To compete with important competitors like

Unilever, Colgate and L’Oreal.– Gain recognition and increase its market share and

revenues in European market.– Strengthen their position in European market to be a

market leader.

Marketing Strategies

Launch product in European Market (cont.)

• P&G introduce a new hair care technology (BC-18) to the European market.

• This product was previously introduced in USA.

• BC-18, a technology enables a combination of a shampoo and conditioner in one product.

Marketing Strategies

Launch product in European Market (cont.)• Shampoo and conditioner segment in European

market:– Steady growth of the shampoo and conditioner in

European market.– Less people use conditioner when compare with

USA.– The number of suppliers and brands was even

more crowded than the US market.

Marketing Strategies

Launch product in European Market (cont.)

• Position product as a time-saving, easy to use product.

• Placing product in the premium-priced segment.

• Conduct consumer research to figure out following questions :

Marketing Strategies

Launch product in European Market (cont.)

• Conduct consumer research to figure out following questions (cont.):– What brand name to introduce in the individual

European markets.– Whether a 200ml bottle, used in the USA, would be

accepted by the European consumer.– Price sensitivity at premium pricing.

Marketing Strategies

Launch product in European Market (cont.)

• The result is there were no significant differences between countries.

• Then P&G can launch standardize product to European countries follow P&G’s concept “Euro-balancing”.

CONCLUSION

GROUP#6

Conclusion

• From the given data, the consumer test in Europe showed that European countries are not that different from each other. This means that P&G can implement their homogeneous concept of “Euro-balancing” (less localization and more standardization for the European region).

Conclusion

• The consumer test data is very important since it has indicated that there is a market for a shampoo and conditioner in the whole European region. And analysis showed that the countries did not differ much, therefore we can generalized the product (eg, bottle, name, volume, fragrance) and this would mean economies of scale thus reducing cost.

Conclusion

• We have concluded that for P&G to enter the market in Europe it should first analyze carefully if the market is ready. And as we saw from the data, we can say that P&G found that the markets in Europe is fragmented by cultural differences and geographically but we think that, as consumers, they the European population has the same taste and preferences.

Conclusion

• This would mean that P&G should introduce their products with less localization and more standardization to maximize income, minimize add-on cost due to differing product preferences and popularize its brand name in the European Union.

Thank you for your attention!