Professional Documents
Culture Documents
Group 13
Procter & Gamble Company
SUBMITTED BY: ABHISHEK KUMAR
NIKHIL TM
POL PRIYANKA BALASAHEB
KHYATI RAO
MRIDUSMITA SAIKIA
P&Gs leading LDL brand in terms of market share with Highest trial levels at 58%.
Major focus (2/3rd) on price packs & minor focus (1/3rd) on coupon offers
81% users and 45% non-users claimed it to be best for leaving dishes shiny.
50% promotional budget allocated to trial oriented coupon events & prepriced events
Share expected to increase by 1% per year over the next five years.
Evaluation criteria
Cost
Implementation time
Market penetration/saturation
Companys positioning
Cost analysis
Introducing a new brand would require a total of 80$ million(20$ million for capital investment
and 60$ million for first year introductory marketing expenditure). Also, looking at the
organizational structure of P&G additional recurring capital would be needed as they have a
different set of working individuals for a new brand, like a dedicated brand manager and
associate brand manager.
Introducing improvements in an existing brand would require a total of 30$ million (20$ million
for capital investment and incremental marketing expenditure of 10$ million)
This option requires a relatively lower capital, which is considerably less than the above options.
This would require capital needed for both option two and option three.
Implementation time
Market penetration/saturation
Companys positioning
Choice of option
We would recommend product improvement on the Joy brand by using H-80 technology, which combines
suspended non abrasive scrubbers with highly effective detergent to provide superior cleaning.
Also, we would suggest an increment in the marketing expenditure of the Ivory brand.
Why Joy?
Joy was predominantly a performance oriented brand which positioned itself as someone who delivers
beautiful dishes. Its focus on performance was not as strong as that of Dawn and hence it had the least
conversion rate. Adding the H-80 technology to Joy would help improve the conversion rate and hence the
market share.
Since 80% of US households scour and scrub 4 times a week on average this improved product would be
valued by significant percentage of consumers.
Potential addition of market share = 0.80 * 91,000,000 * 0.92 * 4 * 52 * 0.58 , which takes care of the 42%
market share that P&G already enjoys.
Why Ivory?
According to exhibit 19 it is clear that consumers asked for mildness in LDL the most. Looking at exhibit 14
only 58% of the total consumers have ever tried Ivory, which means that they are still unaware of the
mildness function of the Ivory. Hence the marketing budget would help us create awareness among the rest
42%, which will potentially convert 16.65% of them (according to exhibit 14 out of 58% of people who tried ,
23% are regular customers, and hence we choose the number accordingly).