Professional Documents
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Launch Refill
2.Refill
Carton;Sept
3.Eco-Pak
4.Eco-Pak
Carton;Dec Doypack;Sept
4.Eco-Pak
Doypack;Dec
COMPETITIVE FACTORS:
Share & category volume decline means something (anything) new is needed.
Low differentiation means high (short-run) returns for uniqueness.
Henkel was positioning for eco-friendliness (R&D; acquisition of Lesieur-Cotelle).
What Happened??
Germany's retail grocers name Lenor's refill pouch the inventionof the year.
Two years later the doypack was 60% of Lenor volume (25% concentrate,
15% dilute).
The refill package spread to other European countries, other P&G
products, and competitors copied it. Eventually, Canada launched EnviroPak and US launched cartons.
emphasis.
RELAUNCH CONCENTRATE
Brand Mgt.
Finance Dept.
Do Nothing
Volume Predictions
Concentrate
Dilute
Refill
Total
Change from base
Adjustments
1,721
4,015
780
400
5,736
-
Adjustments
2,501
3,615
780
480
REFILL CARTON
Brand Mgt.
Adjustments
2,501
3,535
6,116
380
6,036
300
60%
Finance Dept.
Adjustments
1,721
3,115
1,500
6,336
600
80%
REFILL DOYPAK
Brand Mgt.
Adjustments
1,721
3,415
750
5,886
150
Adjustments
1,721
3,115
1,500
6,336
600
60%
Finance Dept.
80%
1,721
3,415
750
5,886
150
Revenues
Concentrate
Dilute
Refill
35.64
34.06
35.64
34.06
35.64
34.06
35.64
34.06
29.65
35.64
34.06
29.65
35.64
34.06
29.65
35.64
34.06
29.65
Costs
Concentrate
Dilute
Refill
11.10
12.81
11.10
12.81
11.10
12.81
11.10
12.81
12.15
11.10
12.81
12.15
11.10
12.81
11.02
11.10
12.81
11.02
24.54
21.25
0.00
24.54
21.25
0.00
24.54
21.25
0.00
24.54
21.25
17.50
24.54
21.25
17.50
24.54
21.25
18.63
24.54
21.25
18.63
Contribution
Concentrate
Dilute
Refill
Total (before fixed costs)
Change from base
127,552
-
138,193
10,641
136,493
8,941
Additional Costs
Startup for 400 MSUs
Promotion Budget
Allocated Fixed Costs
Total
45,182
68,000
113,182
48,082
68,000
116,082
48,082
68,000
116,082
Profit
Net Profit
Net Profit per MSU
Change from base
%change from base
Adjustments:
14,370
2.51
0%
2,900
22,111
3.62
7,741
54%
2,900
20,411
3.38
6,041
42%
134,677
7,125
33%
6.5%
1,604
48,119
68,000
117,723
16,954
2.68
2,584
18%
127,927
375
33%
6.5%
1,604
48,119
68,000
117,723
136,372
8,820
41%
6.5%
1,807
48,119
68,000
117,926
10,204
1.73
(4,166)
-29%
Volume predictions adjust the "Do Nothing" (based on a 7.5% decline from 1987) according to data and predcitions given in the case. Similarly,
startup and promotional costs are adjustments of the "Do Nothing" costs.
18,446
2.91
4,076
28%
128,775
1,223
41%
6.5%
1,807
48,119
68,000
117,926
10,848
1.84
(3,522)
-25%
127,552
127,552
Volume
- - Predictions
Concentrate
Dilute
Refill
Total
Change from base
138,193
138,193
Do Nothing
10,641
10,641
Adjustments
1,721
4,015
780
400
5,736
-
- - Revenues
Concentrate
35.64
45,182 2,900
2,900 48,082
48,082
45,182
Dilute
34.06
Refill
68,000Net Profit 68,000
68,000
68,000
Costs
113,182
116,082
113,182
116,082
Concentrate
11.10
2,900
2,900
Dilute
Refill
12.81
Contribution
Concentrate
Dilute
Refill
14,370
14,370
2.512.51
Total (before
fixed costs)
Change from base
0%0%
Additional Costs
Startup for 400 MSUs
Promotion Budget
Allocated Fixed Costs
Total
136,493
136,493
8,941
Adjustments
8,941
RELAUNCH CONCENTRATE
Brand Mgt.
Finance Dept.
2,501
3,615
780
480
2,501
3,535
6,116
380
6,036
300
12.81
12.81
60%
80%
1,721
3,415
750
5,886
150
60%
20,411
20,411
3.383.38
138,193
6,041
6,041
10,641
42%42%
16,954
16,954
2.682.68
136,493
2,5842,584
8,941
18%18%
45,182
68,000
113,182
48,082
68,000
116,082
48,082
68,000
116,082
24.54
21.25
0.00
2,900
24.54
21.25
0.00
33%
6.5%
12.81
12.15
12.81
12.15
12.81
11.02
24.54
21.25
17.50
10,204 24.54
10,204
21.25
1.731.73 17.50
(4,166) 127,927375
(4,166)
-29%-29%
18,446 24.54
18,446
21.25
2.912.9118.63
136,372
4,0764,076
8,820
28%28%
134,677
7,125
1,604
48,119
68,000
117,723
33%
6.5%
1,604
48,119
68,000
117,723
41%
6.5%
olVol
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Profit
Net Profit
Net Profit per MSU
Change from base
%change from base
Adjustments:
14,370
2.51
0%
1,721
3,115
1,500
6,336
600
80%
1,721
3,415
750
5,886
150
24.54
22,111
22,111
21.25
0.003.62
3.62
127,552
7,741
7,741
54%54%
2,900
1,721
3,115
1,500
6,336
600
22,111
3.62
7,741
54%
20,411
3.38
6,041
42%
16,954
2.68
2,584
18%
1,807
48,119
68,000
117,926
10,204
1.73
(4,166)
-29%
Volume predictions adjust the "Do Nothing" (based on a 7.5% decline from 1987) according to data and predcitions given in the case. Similarly,
startup and promotional costs are adjustments of the "Do Nothing" costs.
18,446
2.91
4,076
28%
12.81
11.02
24.54
10,848
10,848
21.25
1.84
1.8418.63
128,775
(3,522)
(3,522)
1,223
-25%-25%
41%
6.5%
1,807
48,119
68,000
117,926
10,848
1.84
(3,522)
-25%