In EuropeA roll-out launch

Group 3

Yao Ju M99Y0206

Ninh M997Z211

Nancy M997Z228

James

M99Z0216

Melva M997Z227

Allison

M99Y0105

Outline

About P&G SWOT analysis Questions

About P&GProfile

Four billion times a day, P&G brands touch the lives of people around the world. This happens because P&G provides branded products of superior quality and value to improve the lives of the world's consumers. This results in leadership sales, profits and value creation, allowing employees, shareholders and the communities in which we operate to prosper.

The P&G community consists of over 135,000 employees working in over 80 countries worldwide. What began as a small, family-operated soap and candle company now provides products and services of superior quality and value to consumers in over 180 countries.

About P&GProducts

Slogan: Touching lives, improving life Products: • Personal & Beauty• House & home• Baby & Family• Health & Wellbeing• Pet nutrition & Care Brands with net sales of more than US$1 billion annually

About P&GCore Strengths

P&G focuses on five core strengths required to win in the consumer products industry. We are designed to lead in each of these areas.

SWOT ANALYSIS

P & G is a global leader for different product categories like fabric, home, baby, beauty, health and personal care in many countries. Its three hundred products are sold in over one hundred and eighty countries.

The strong branding of P & G makes it one of the most successful brands in the world.

The company has a vast experience in oral and personal hygiene products.

P & G has an extensive experience in marketing in different market segments and is one of the best marketers in the world.

SWOT ANALYSIS

P & G is tightly integrated with some of the largest retailers in United States of America as well as world around. and around the world Distribution channels all over the world. Gross profit margin of the company is 15 times the industry average.

Gross profit margin of the company is 15 times the industry average.

P & G invests greatly in its research and development to. About $2 billion are invested every year by P & G for improving and introducing new products. The end-consumer understanding of P & G and its large database of consumers make its research and development strong.

SWOT ANALYSIS

P & G is known for its diverse brand portfolio. The company is able to customize its global products and brands according to the local preferences.

P & G has accumulate a broad base of industry experience and business knowledge.

P & G has legendary brand management system who know more about their products than anyone else and they feel a real sense of ownership as they strive to develop business opportunities in their local market.

Strong Finances in past years.

SWOT ANALYSIS

Many of the top brands of P & G are losing their market share rapidly. In online media leadership and presence P & G is lagging behind.

The beauty and health products by P & G are mostly for women.

P & G does not make and offer any private label products for the retail customers and is, missing an opportunity.

The large scale operation of the company makes the culture heavy and processes slow. This also leads to quality control problems.

P & G does not divest its weak or poor brands.

SWOT ANALYSIS

The major customers of P & G are located at some of the places and it concentrates heavily as them.

When P & G acquired Clairol business in year 2001, it was unable to grow this business. The Clairol Herbal Essence brand failed to enter new markets as the market had access to better and innovative products. This shows weakness of P & G in the beauty care division.

SWOT ANALYSIS

Health and beauty products for men: with the acquisition of Gillette, the company now has several growth opportunities in this market segment.

P & G has doubled its Environmental Goals for the year 2012 and thus, promises more value for the environment concerned customers today.

Using the online social networks and internet marketing techniques.

Divest brands that are not in accordance or do not meet P & G’s long-term goals.

Company is constantly trying to pursue growth overseas. Market conditions is still vary widely in Europe

SWOT ANALYSIS

There is a increasingly competitors in the fast moving consumer’s goods markets today. Companies like Kimberly Clark, Unilever, Johnsons & Johnsons and Colgate-Palmolive etc.

The competitors are making their product portfolios diverse day by day and using different marketing and promotional strategies to increase their market share.

In the market many substitutes are available for P & G products at cheaper prices.

The private label growth is also a serious threat to the P & G’s market share.

Due to recession, the consumer spending has decreased globally. Also, the prices for raw materials are increasing so cost to the company is increasing.

Rising cost of energy prices. Economic slowdown in the US and Eurozone

① Q & A

Q: What are the main issues to be considered in balancing a panEuropean introduction strategy with local market needs?

① Q & A

For example –

Q:What are the possible alternative brand name strategies?

A:P&G basically use the “individual brand” as their brand name strategy. Every single product has own brand name. The best thing about “individual brand” is even one product is not acceptable or has some image problems; it won’t affect other products or the company.

① Q & A

Q:Should the BC-18 technology be introduced with a panEuropean name, or with local brand names, or even with a mixture of both approaches?

A: It depend on whether the local people’s acceptance for the new brand. As for P&G, they think the market conditions still vary widely within Europe. So their concept is that “Euro-balancing”, that means as much standardization as possible, as little localization as necessary. Also they used the “soap opera” to introduce their product to housewives. They basically create the term soap opera. It is the most efficient way to do the promotion. And then comes with the distribution line. It places in almost every retail stores.

① Q & A

Q:Should a new brand be created, or should an existing brand be relaunched in a new quality?

A: P&G usually using their existing brand but relaunching in a new quality. For example, they change Pert into Pert Plus. To make the customer know it is still the same brand but with higher quality.

① Q & A

Q:What are possible criteria for that decision?

A: P&G’s criteria for all these decisions mostly are base on their research for the market. Once they decide to develop a new site, they will do the market research to learn the consumers’’ buying habit and preference.

① Q & A

Q:What is the long-term marketing objective?• P&G target group is mainly to all people. So P&G believe

s that through continual product development brands could remain healthy and profitable in the long term.

① Q & A

Q:What are the alternative possibilities in relation to issue of positioning, target groups, sources of business, pricing strategy and packaging?

① Q & A

• Positioning: The easy, time-saving, everyday use of the product is essential. Therefore Pert Plus provides a new way of having great-looking hair in a convenient way. They are the first company that combines a mild shampoo with a fully effective conditioner.

• Target groups: All people.• Sources of business: New users. Because in the Souther

n European countries the share of conditioner was still below the 44%. So there’s still many undeveloped markets.

① Q & A

• Pricing: Between brands there were price differences of over five times for the same quantity.

• Packaging: They offer two different volumes to the customer-the 12oz and 15oz.

② Q & A

Q: How would you specify the first-year marketing objective? How does this relate to the longer-term marketing objective?

② Q & A

First year marketing objective• As a new formula product, the objective may be:1. Branding the name and identity of the roll-out launch.2. Developing the conditioner market in Europe counties is priority that wo

uld be introduced by the function of Pert Plus.

For long term marketing objective• Base on the concept of Euro-balancing• Long term objective may be as similar as USplan(Exhibit 4)

Europe perspective• However, the conditioner market, compared with the USA was relatively

undeveloped, so the brand should still focus on developing this market.

③ Q & A

Q: Would you undertake a ‘roll-out’ launch, and if so in what country order?

• Yes• The order is in West Germany, Great Britain, France,

Scandinavia and Benelux.

③ Q & A

Q: What are the decision criteria for this order? In answering this question you should take into account the expected sales volumes as well as the given capacity restrictions.

③ Q & A

The decision criteria• P&G’s statement in p125, line 7• Exhibit 6

The market sizes of southern Europeancountries • Exhibit7

The European market was even more crowded than U.S. market , undoubtedly the function of different nationalities.

③ Q & A

Expected sales volumes and the given capacity restrictions

• Capacity:First year : 2000MSUSecond year : 4000MSUThird year : 8000MSUExtra 500MSU by costing 2DM/SU

• Pack size、 designs、 lead time New 200 ml bottle : 1 year lead time New 250 ml bottle : 6 months Old US bottle : do need any lead time

③ Q & A

Therefore: The first year of a roll-out launch would be restricted by those conditions, so using US bottle may be more efficient for P&G in the first year in order to take the first mover advantage.

④ Q & A

Q:Taking the country with the highest priority, which principles would you use in order to budget media spending?

④ Q & A

do promotion through means media in all the stage of product’s

life cycle.

0 t1 t2 t3 t (time)

Benefit

Sale

Sales and benefits

Introduction Stage

Growth Stage

Maturity Stage

Decline Stage

PRODUCT’S LIFE CYCLE

④ Q & A

Q:Set out a rough media plan for the first twelve months, with proposals for promotion activities in the first year.

Media Plan • Information advertising is priority in the first stage to give

information about your product.• Television would be considered an effective means for a

dvertisement.

④ Q & A

Media Plan for 1st year• Emphasize the benefit of the shampoo through advertise

ment. • Panel with the eye – catch picture of product is also a go

od way to promote.• Give free sample for customer to try Media Plan for Following Years

• Distribute and advertisement through some famous sell channels

• Build a good awareness in customers’ mind • Promotional – Discount on product in special day.

④ Q & A

Q:How should media and promotion activities be budgeted for the following years?

Media and promotion activities are very important nowadays, but they are should be saved.

The budget for media and promotion activities can be planed based on the revenue.

⑤ Q & A

Q:Examine the cost and revenue implications of the Europe-wide introduction program. Is there any loss to be expected in the first years? Does this require a modification of the order of local market entries?

⑤ Q & A

In Exhibit 12, Vidal Sassoon in West Germany, Great Britain and Scandinavia budget for advertising and sale promotion are higher than other. However, the revenue is not able to exceed the cost to create the benefit.

⑤ Q & A

Great Britain(Vidal Sassoon)

France (Pantene)

Manufacture’s net price

50.65 36.00

Production cost

28.00 22.00

Budget for advertising and promotion

2.80 2.00

Profit -0.25 1.00

Thank You!