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Case analysis
INTRODUCTION
This case study analysis focused on Procter and Gamble Companys marketing
plans and strategic options on its light-duty liquid brands (LDL). Procter & Gamble
is the worlds largest producer of household and hygiene products. By 1981 P&G
operated in 26 countries and sales totaled $11.4 billion with 90 consumer and
industrial products manufactured in the United States. The case study provided
some very detailed data analysis and reports in terms of the company history and
background, organizational structure, key factors to its success in the
marketplace, the relationship among advertising, sales, product development
(PDD), manufacturing, and finance departments, and its light-duty liquid brands
(LDL). Highlight of Company History, Organization, and Key Success Factors * In
1890, Procter & Gamble Company was incorporated with a capital stock value of
$4,500,000. The capital allowed the company to build plans, buy new equipment,
and develop new products. * Sales volume doubles every 10 years.
Provide product of superior quality and value that best fill the needs of
consumers
SITUATION ANALYSES
Customer Segmentation
Market Size/Share
Competitors
Major Brands
Brand Value Preposition
IVORY Liquid
DAWN
JOY
Segment
Mildness
Performance
Performance
Market Share
12.1%
15.5%
14.1%
Attributes
OPPORTUNITIES
EVALUATION OF OPTIONS
UNDERLYING NUMBERS
PS&D Division spent $30 million on R&D in 1981
PS&D Division spent $20 million on Consumer and Market Research
CONSUME
R
DYNAMICS
MARKET
DYNAMICS
Market
Indicators
Market Value
($)
Market
Volume
(ounce)
Market
Volume
(cases)
Category
Growth by
Volume
Segment
House
Hold
Indicators
Growth
Mildness
Performance
Price
1981
$850 million
18290000000
COMPETIT
OR
DYNAMICS
59 million
1%
1.50%
CAGR(
1981 %)
21.83
-2.21
20.65
7.02
16.52
-3.05
House-hold
indicators
Average brand/HH
Average annual
consumption
(ounce)
Average annual
frequency of
purchase
1.5
374.4
13
Lever
Phoenix
Colgate
Dermassage
1974
ARGUMENTS FOR
PRODUCT IMPROVEMENT
QUALITATIVE INDICATORS
PROS
CONS
Company contemplating the idea to relaunch JOY brand with a new no spot
formula which will create a conflict in case another performance based brand
is relaunched
P&G Brands
Ivory Liquid
Year of launch
1957
Current MS
Positioning
Promotions
Other
Mildness LDL,
15.50% Value
Consumer
promotions
Dawn
1976
14.10% Performance
Highest
Emphasized trials conversion rate
Joy
1949
12.10% Performance
Emphasized trials
SWOT Analysis
EVALUATION