Case Study: Procter & Gamble Company

P & G Ldl Case

Case Study: Procter & Gamble Company (A)

Assigned By. : Prof. Ruppal W Sharma

Dated: 10th December 2010

Submitted By. :

Name: Roll No.:37 Manoj Kumar Jha

Name: Roll No.:35 Manish Ranjan

Final Strategy

P & G should go ahead with launching a new brand of LDL having H-80 formula targeting the segment emphasizing upon enhanced performance.

Reasons:

* Population shows increasing trend from 70 to 95 million and with that the penetration of ADW is expected to grow by 8% in next decade. Thus it will throw up new lot of consumers. Also, with the prevalent use of ADW, mildness may not remain key criteria for choosing an LDL product. (Table B)

* "Performance" category shows increasing trend where as "mildness" category shows declining trend. (Exhibit 1)

* As per attribute importance Ratings, highest rating has been given to LDL, capable of giving long lasting suds (83%), making dishes shine (64%) and with abilities to cut grease (87%). (Exhibit 2)

* There is scope

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of dislodging competitors in market up to 9%. (Exhibit no.3)

* The trend is that one premium brand gets introduced every two and half years and if P & G misses out, other players may take a lead (Main narration)

* Even though the initial cost of entry would be quite high, by current market estimates that is likely to be recovered within 4 years of launch. (Main narration & exhibit 4)

* LDL user/Non-user attribute association exhibit also shows that consumers have laid emphasis on performance. (Exhibit 5)

* About 20-40% of consumers may be willing to try brands other than their usual brands (Exhibit 6)

* LDL Category (Test of H-80) assessment also shows consumers higher preference for performance criteria. (Exhibit 9)

*

Likely outcome:

Even though the newly launched product may eat into the volumes of the other LDLs within P & G, it will help to create a lively & positive buzz around the brand with potential to sway the loyal yet adventurous lot of competitor's customers. It will be...

Procter And Gamble

Group 2 Section C 5th Oct 2010

Procter & Gamble Company

Situation Analysis: P&G is strongly positioned Light-Duty liquid detergent(LDLs)category. The LDL market can be segments on the basis of 3 benefits performance, mildness and price sensitivity. P&G has 3 products: Joy (Performance,12.1%),Ivory(Mildness,15.5%)and Dawn(Performance,14.1%). Wright is looking into the possibility of volume growth in terms of one of the three options: a)Introduction of a new brand (b)product improvement on existing brand (c)increased market expenditure on existing brand.

Market opportunity:

The table shows the existing players and their market share in million cases.

Per unit revenue of case is 850 million / 59 million cases: $14.4 per case.

ProductSegment Vol | Mildness | Performance | Price Sen |

P&G Joy | | 7.139 | |

P&G Ivory | 9.145 |