- Byoung-hun Beak - Brittany Jiang - Elizabeth Chan - Min-kyung Kim - Eddie Chu - Steven Lin - Winni Hung

Planning for the future

OutlineIntroductionAbout P&GProblem StatementRecommendation Recommendation(1).. Why Add H-80 to Dawn? Recommendation(2).. Why improve Joy with No Spot Formula?Discussion and analysis SWOT analysis Break-even analysisImplementation &Conclusion

P&Gs CommitmentTo improve everyones quality of lifeInnovative products with superior benefitsEarning trust of suppliers and customers

Market ShareNow, in 1981, one or more of P&Gs products are used in 95% of U.S. homes.

Market Share:Ivory: 15.5%Dawn: 14.1%Joy: 12.1%

*Our performance brands are projected for greater growth within the next 5 years.

Problem statementProjected light duty liquid detergents (LDL) category volume growth is only 1% per year over the next five years.

To increase market share: Introduce a new product Improve an existing one Expand marketing expenditures on current products.

Volume Growth Proposals1) Improve Dawn by adding H-80 formula.2) Improve Joy by adding a new no-spot formula.

Recommendation (1)Add H-80 to Dawn (graph: LDL market growth trends)

Give me H-80 only!

LDL market growth trends

Chart1

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Years

Percentage

LDL Market Historic Growth Trends and Projections

Chart2

441937

452035

442135

432235

402832

403030

393229

383329

373528

373528

363529

363529

353629

353629

Mildness

Performance

Price

years

percentages

LDL Market Historic Growth Trends and Projections

Sheet1

1973441937

1974452035

1975442135

1976432235

1977402832

1978403030

1979393229

1980383329

1981373528

1982373528

1983363529

1984363529

1985353629

1986353629

Sheet2

Sheet3

Recommendation (1) Why Add H-80 to Dawn?Performance segment projected to be dominant segment in 5 years (Exhibit 6,P35)P&G spends 200 million dollars on research and developmentNo changes to product benefits since 1976Blind Tests Positive (Exhibit 18 ,P46)New Dawn can battle two toughest dishwashing jobs (Exhibit 19)

Recommendation (1) Other Benefits of Adding H-80 to DawnConsumers have voiced their opinion that performance qualities are most important (Exhibit 7)P&G can further distinguish Dawn as the best performance brand on the market in the eyes of consumers (Exhibit 10)

Recommendation (1) Possible Concerns about adding H-80 to DawnCannibalizationConsumers like original Dawn better30 million dollars too much? -Break Even AnalysisDawn already has a strong image, why spend more money?Competitors response?

Future ConsiderationsResearch and develop a detergent for the automatic dishwashers (ADW) marketGrowing household penetration for ADWsDecrease amount of time needed to do dishesKeep on top of technological advancementsFind a way to implement H-80 to the ADW product

Recommendation (2) Restage Joy With a new no-spot formula.

Recommendation (2)Joys history. First introduced as performanceDuring 1960s, restaged as mildnessDuring 1970s, reformulated as performance

Recommendation (2)Current issuesJoy & ConsumerChart. Preference trendsAttribution AssociationB. Joys Attribute TableStrength-weaknessChart.Share of MarketC. Potential Chart.Current Product UsageShipment and Share Data for LDL Brands.

Recommendation (2) Why improve Joy with No Spot Formula?ProsAdding no-spot would differentiate Joy as a new aesthetics segmentAccelerate market share growthFast breakeven time and help save GOGS by 3 millions/year Superior technology than competitor.ConsIs the investment profitable?Competitor reaction

Recommendation (2)Product differentiation and restage Break-even analysis

SWOT analysis

The pro and cons of each decision

Develop new productProduct ImprovementMarketing expenditureStrengthCan satisfy customers various needs1.low cost2.short time frameWill not harm for the current LDLs marketWeakness1.long time frame2.large investmentThe customers may not be aware of changes madeNo real product improvements madeOpportunityIncrease the market shareReposition the productsGive products more exposure ThreatsThey are not sure the new brand will succeed or notCustomers may like original product betterCompetitors may improve products , increase volume

Possible Concerns1.Why not introduce a new brand?2.Why not introduce a new mildness brand?3. Why not introduce a price brand?4. Why not add H-80 to Ivory? 5. Why not add H-80 to Joy?6. Why not advertise more for Ivory? (Exhibit 10, Exhibit 14, Exhibit 6)

LDL market growth trends

Chart1

44

45

44

43

40

40

39

38

37

37

36

36

35

35

Years

Percentage

LDL Market Historic Growth Trends and Projections

Chart2

441937

452035

442135

432235

402832

403030

393229

383329

373528

373528

363529

363529

353629

353629

Mildness

Performance

Price

years

percentages

LDL Market Historic Growth Trends and Projections

Sheet1

1973441937

1974452035

1975442135

1976432235

1977402832

1978403030

1979393229

1980383329

1981373528

1982373528

1983363529

1984363529

1985353629

1986353629

Sheet2

Sheet3

Implementation

Recap of Proposal:1)Improving Dawn by adding H-80 formula.2)Improving Joy by adding a new no-spot formula.

May we continue to improve everyones quality of life. May we strive to be the brand that consumers trust most.May we continue to have superior product performance.

Commercial StoryboardJoy_ commercial. JPG

Q &A SO FAR!ANY COMMENTS!

Exhibit 10

Exhibit 14. Current Product Usage(%)