Name : - Apurv Toppo

Section:- C

Decision Sheet of Proctor and Gamble

1. What should P&G do with H-80?
Ans:- In my opinion, P&G should incorporate the H-80 formula with the Dawn brand. Dawn is a LDL
in the performance segment and incorporating the formula will enhance the capability of the brand,
which is something the consumers are willing for. It also focuses more on the performance than the
mildness quotient, which is generally favourable in this type of segment. Also the future prospects for
Dawn looks good as it is expected to take over the leading share position from Ivory by 1985
( Referring to Exhibit 16). Seeing the consumer's preference of performance over the mildness, this
move could be strategically beneficial for the Dawn.
Another thing that P&G could do with the H-80 formula is to come up with a new brand having this
as the main factor of promotion. This could place the product on a new segment that would focus on
the problems of scrubbing thereby providing superior cleaning. Referring to Exhibit 19, we can see
that scrubbing has been one of the factors that consumers have with the dishes they clean (around
14% of the total consumers) and this product could solve one of the toughest task in the dishwashing
segment.
2.How is the LDL market segmented? What is the logic underlying the positioning of P&G's existing
brands?
Ans:- At present, the LDL market is segmented as(Referring to Exhibit 6):
i)
Performance segment - 35% of category volume (cleaning benefit)
ii)
Mildness segment - 37% of category volume (gentle to hands)
iii)
Price segment - 28% of category volume (low cost)
The existing brands of Proctor &Gamble in the LDL segment are Ivory, Dawn and Joy. Ivory is a
performance as well as it promotes mildness message along with unique product aesthetics, having a
market share of 15.5%. It is perceived to be the highest sudsing brand.
Dawn is a brand in the performance segment. It is positioned based on its grease-cutting, supported by
its patented formula which has proven to be much superior. It is also expected to take over from Ivory
as the leading LDL product in terms of market share by 1985. It has a 14.1% market share, of which it
got 30% due to cannibalising equally from the brands of Ivory and Joy.
Joy is the oldest product introduced in LDL category by Proctor &Gamble. Its value proposition is its
lemon based formula, lemon fragrance which is highlighted by the yellow package. It had the lowest
trial levels, and had been rebranded twice already. First it was introduced as a performance brand ,
which was later restaged with a mildness benefit. It had a market share of 12.1%.
3. In the light of your understanding of consumer behaviour pertaining to LDL, is there a case for
fourth brand?
Ans:- Yes, there is a scenario for a launch of a fourth brand, which can be based on the H- 80 formula.
It provides a superior cleaning experience at full strength and when diluted it is as good as other parity
products. Also, there is a strong need for a product which can remove baked/burnt/fried cooked foods
among customers (39% of customers feel that is the toughest dishwashing job as per Exhibit 19 ). As
mentioned earlier, H-80 is based on these parameters. At the same time, it is rated to be less mild
compared with the competing brands, (55% vs. 63% as per Exhibit 18), but mildness as a complaint is
comparable (16% to 14% as per Exhibit 18) and can hence be ignored as an issue about H-80.