Procter and Gamble Case Study free essay sample

1.) LAUNDRY PG: 46.0% Tide (33.2%) Mr. Clean (7.9%) Unilever Phils.: 32.5% Surf (19.2%) Breeze (10.7%) Peerless: 5.6% Champion (5.6%) 2.) FABRIC CONDITIONERS PG: 63.9% Downy (63.9%) Unilever Phils.: 27.7% Comfort (27.72%) Henkel Phils.: 4.8% Vernell (4.8%) 3.) TOILET SOAPS PG: 63.9% Safeguard (57.0%) Ivory (5.0%) CPP: 13.4% Palmolive Naturals (8.3%) Tender Care (3.8%) JJ Phils.: 4.6% 4.) HAIR CONDITIONER Unilever: 82.5% Creamsilk (82.5%) PG: 11.0% Pantene (7.5%) Ivory (3.5%) Bristol-Myers: 4.9% Herbal Essence (4.9%) 5.) SHAMPOOS PG: 41.0% Rejoice (16.9%) Pantene (9.1%) HeadShoulders (8.9%) Ivory (6.0%) Unilever: 11.0% Sunsilk (23.5%) Lux (6.8%) CPP: 23.1% Palmolive (16.5%) Optima (3.3%) 6.) BABY DIAPERS PG: 41.0% Pampers Comfort (29.2%) Pampers Dry (12.6%) Kimberly-Clark Phils.: 37.5% Huggies (21.4%) Kimbies (16.1%) Unitrade: 12.7% Prokids (9.4%) Lovesome (1.1%) 7.) CATAMENIALS JJ Phils.: 52.9% Modess (36.8%) Carefree (16.0%) PG: 25.6% Whisper (25.6%) Kimberly-Clark Phils.: 18.5% Newtex (18.5%) Objectives To increase market share of hair conditioner category from 11% with 10% progressive increase in every quarter. To increase market share of catamenials category from 25% to 50%. To develop a better product differentiation for catamenials and hair conditioner portfolio to compete with the leading competitors. External Environment THREATS: Continuing decline of the Philippines economy and political instability The product of competitors has already established a loyal market that PG might find it difficult to penetrate the target market The competitors are multinational company too that maintains an aggressive marketing strategies There is an emergence of cheap private-label brands of retailers like the SM bonus There is lowering of prices of competitors due to increasing inter-Asian interdependence (AFTA) There is an influx of merger-fever of big competitors OPPORTUNITIES: Significant increase in population which gives an opportunity for a larger market Growth in the industrial and service sector There is a wide array of market in Hair Conditioner category since anybody young and old can use it People are becoming more conscious of personal care that opens to a vast market. Internal Environment WEAKNESSES: Maintains wide variety of products resulting to some products seem to be unnoticed by the consumers Skills, training and development at times deprioritized/delayed No real conscious effort to search for cost reduction opportunities in areas of: OPERATING EXPENSES, ASSETS UTILIZATION, MARKETING, CONSUMER RESEARCH, TECHNICAL TESTING, MERCHANDISING, ETC., STRENGTHS: One of the top companies in the country Has established brand names and considered as market leader in household necessities and personal care Maintains high integrity in terms of product quality and looks forward always to win in the marketplace Vicious in building superior relationships with the target market including customers, suppliers, the private and government sectors. Alternative Courses of Action ACTION ADVANTAGES DISADVANTAGES Focus on Product Development -Will improve customer satisfaction and maintain product loyalty among consumer -Create product differentiation and develop a better product image -Efficient utilization of gathered data -Additional cost -Focus on Research and Development (RD) Penetrate the market through massive tri-media campaign (print, broadcast, television) with focusing on consumer satisfaction -Promote product and become a household name among consumers -Vast resources of P G could be put to use with an aggressive marketing strategy that is aimed of maintaining its competitive edge over other companies. -Additional cost -Would face stiff competition with other multinational companies that provide hair conditioner and catamenials product. Establish a well-planned management of product distribution in all areas of the country -Increase market share through making the product conveniently available in all areas of distribution outlets -This will improve the marketing of the product Systematize the flow of the distribution of products -Additional workforce means additional expense Strategies Need to strengthen the marketability of both products by developing our value proposition plus a massive advertising and promotional campaigns as well as developing distribution coverage to reach product maturity. CUSTOMER SATISFACTION Enhancement of product quality to come up with the best product differentiation to be offered to the consumer on which the R D will be tasked to execute. COMMUNICATION TO CONSUMERS 1. Advertising Comprehensive advertising campaign using print ad, TV/Radio media, billboard, flyers, banners etc. Will commission top advertising agency to create a new face to the brands. 2. Image Models Each product line would have a model that would epitomize the product differentiation. In catamenial category, the endorser should represent credible talent like popular star that exhibits glamour, beauty and elegance in all aspects. For hair conditioner category, the image model should be a popular star that is being adored both by young and old. 3. Budget A. Catamenial Category ( Whisper ) Initial budget for year is P100,000,000.00 Covers Production, TV ads, radio and print B.Hair Conditioner ( Pantene ) Initial Budget for the year is P130,000,000.00 Covers all tri-media expenses Covers also talent fee as well as production of ads CONVENIENCE A. Sales Force: Strengthen its sales force by giving enough commissions to encourage them to cover nationwide distribution Trainings and seminars will be conducted regularly to sales people in order to attain product knowledge and how to close a deal. B. Distributors / Dealers We will be giving better margin of discounts for major distributor as well as dealers to carry the products Would extend a good credit line to big distributors C. Local Satellites Establish a branch in Luzon, Visayas and Mindanao to manage properly the distribution of stocks available anytime needed by the distributors Action Plans/Programs A.Launching of new ads promotions (tri-media) Key Dates:1st Quarter of the Year (January – March) Re-launching of the product of its new ads and a fresh endorser via formal product advertisements through the media – radio, TV, and print. The promotional campaign for the product will be in full blast Holding of press-conference and issue press releases with its new endorser Nationwide tour will be done to be covered by a major TV station B.Summer Special Big Event Key Dates:2nd Quarter (April June) Continuous tri-media advertisement Monitor market acceptance Sponsor major summer activities like beauty pageants, sports activities, etc. Designing new concept on ads and promotion Deployment of trained sales force C.Introduction of New Ads thru TV stations Key Dates:3rd Quarter (July September) Introduction of new ads in all TV stations Create a jingle in thru TV ads that any person would enjoy to emulate Continuous print ads and radio placements Evaluation of each distribution centers nationwide D.Year End Special Key Dates:4th Quarter (October December) Assessment of 3 quarters performance Conduct an inventory audit and product evaluation movement versus the budget Sustain its advertisements to ensure continued product patronage Culmination of the strategic plans thru a Christmas special such as party, cash bonus or any incentives for top performing employees. Recognition of consumer of its continued patronage of product through raffle draw. Potential Problem Implementation of the above-mentioned strategies and plans will encourage the competing companies to focus also on how to maintain its market leadership in catamenials and hair conditioner category. They would address too the delivery of the desired satisfaction of consumers more effectively and efficiently than what they did in the usual marketing practice. The challenges that would emerge will be a dilemma on consumer’s response and how to adjust to the various marketing offerings of each competing companies. Contingency Plan Each product line managers of catamenials and hair conditioner category will be very active in the monthly assessment and interpretation of the financial data based on sales/market response. Rigorous research surveys and distribution centers checking will be undertaken. This will provide measurement as to the effectiveness of the plans implemented and the output would tell what necessary and immediate modification or improvement steps to be carried out.