Procter Procter && Gamble Gamble Detergent Case StudyDetergent Case Study
TEREZA Bártová
STANISLAV Krupa
JIŘÍ Tabáček
PETR Weida
LENKA Adámková
STAINFIGHTERSSTAINFIGHTERS
Strategic Marketing & InnovationNov 25, 2010
19.3.2015
• OGSM Sheet• Target Audience• Product formula• Sizing strategy• Pricing strategy• Media strategy• Copy strategy
• Promotion strategy• Trade• Selling tools for
traditional trade• Shop in shop• Future plan• Back-up
219.3.2015
Outline
Objective Goals
Ensure P&G market leadership in the field of detergents by maintaining MAXX on the market and launching BRISK as a new detergent
at the same time. Our aim is to avoid cannibalization of the current brand MAXX and achieve at least a neutral profit for the new
brand BRISK in the first two years.
Volume: 760 MSU / 6 080 000 kg Volume share: 8%
Strategies Measures Action Plans Timing
Make customers try out BRISK for the first time in order to get new experience with the product and subsequently
switch to bigger and more expensive sizes.
Number of customers who try out the brand BRISK.
Steps in terms of trial strategy, focus on
introductory price reduction.Mar -> Apr 05
Convince customers who have used MOMO so far that BRISK can offer them better
features regarding bleaching effect and freshness and is for a comparable
price at the same time.
Number of customers who switch from our competitor
MOMO to our new brand BRISK.
Communication campaign, emphasis of better quality,
comparable price, attainable in the same sizes.
Mar -> Jun 05
Build a brand awareness among customers.
Number of customers who can spontaneously name
our brand.
Complex communication campaign (TV spots, ads).
Mar -> Dec 05
Build a loyalty among recently gained customers.
Number of customers who consider BRISK as the first choice.
Steps in terms of loyalty strategy, drawing
promotion.Nov -> Dec 05
OGSM Sheet
• Women– Housewives– Students– Women on maternity leave
• 22 – 34 years
• Lower incomes (less than 185 000 HUF)
19.3.2015 4
Target Audience
• Chosen product formula – Option III - BRISK
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Product formula
19.3.2015
Comparison with the biggest competitor
BRISK MOMO
Cleaning Base Equal
Whiteness Base Slightly poorer
Freshness Base Poorer
Residues Base Equal
• Low-tier product• Competition for the brand Momo• Avoidance of cannibalization of our current brand Maxx
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Sizing strategy
19.3.2015
Size 2 kg 3 kg 4 kg 6 kg 1,5 l 3 l
BRISK x x x x x -
• Powder/liquid form• To address as a large group of consumers with
different purchase habits as possible
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Pricing strategy I
19.3.2015
Pricing (HUF)
BRISK MOMO Difference
2 kg 999 949 + 5,3%
3 kg 1 299 1 249 + 4,0%
4 kg 1 699 1 699 -
6 kg 2 299 2 299 -
1,5 l 999 949 + 5,3%
• Vision: „To provide consumers with a better quality for a comparable price“
• Preference: High-low pricing (our TA is sensitive to promo actions connected with a price cut-down)
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Pricing strategy II
19.3.2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
H H L L H L H H H L H H• Price
(Hi-Lo)
Reduced price (HUF)
Size BRISK
2 kg 899
3 kg 1 199
4 kg 1 499
6 kg 1 999
1,5 l 899 • Applied only for hyper/supermarkets
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Media strategy
19.3.2015
New TV spot
New TV spot
New TV spot
Introductory campaign
Product reminder
Loyalty building
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0 0 600 600 250 400 0 600 250 400 400 400
• TV Performance (beginning in March 05)
• Magazines for women: • Jun 05 -> Aug 05: On holiday people usually read mag. more • Nov 05 -> Dec 05: Mag. bought because of recipes for X-mas cookies
• Internet: Time parallel with TV campaign, websites for women
Month/GRPs
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Copy strategy
19.3.2015
“To all women who must fight with irresistible stains on everyday basis we introduce a new detergent on the market – BRISK – that brings a quality of more luxurious detergents at a very reasonable price. Thanks to a new applied technology that consists in higher concentration of bleach and stuff that subsequently releases a fresh scent, your garment will look cleaner and smell fresher than before.”
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Promotion strategy
19.3.2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• Trial strategy• Introductory price reduction• No sampling
• Loyalty strategy• Drawing promotion• 4 kg, 6 kg + gift
• Loading/stocking strategy• Bonus pack • 1+1 free: 6 kg + 1,5 l
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Trade I
19.3.2015
Distribution Merchandising
Hypermarkets Full (all sizes) Selected materials
Supermarkets Full (all sizes) Selected materials
Small food Limited (2+3kg)
Special tools(see slide 16)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
x x Leaflets
Pyramids
Leaflets
Racks
Shelf flags
x Leaflets
Racks
Shelf flags
x Leaflets
Pyramids
x Leaflets
Racks
Shelf flags
Leaflets
Pyramids
Posters
Leaflets
Pyramids
Posters
Summary
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Trade II
19.3.2015
• Shelf management (hypermarket)
Purchase direction
others others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 3 l 3 l 1, 5 l 1, 5 l 3 l 3 l others others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg others others others others Momo Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Citron Maxx Maxx Maxx Maxx 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Citron Maxx Maxx Maxx Maxx 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg
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Trade III
19.3.2015
• Shelf management (supermarket)
Purchase direction
Eye level
Waist level
Floor level
Stretch level
others others others others others others others Citron Citron Citron Citron Citron
4 kg 4 kg 3 kg 2 kg 1,5 l
Maxx Maxx Maxx Maxx Maxx Maxx Maxx Maxx Citron Citron Citron Citron
6 kg 4 kg 4 kg 3 kg 3 kg 2kg 2 kg 1,5 l 4 kg 3 kg 2 kg 1,5 l
Brisk Brisk Brisk Brisk Brisk Momo Momo Momo Momo Momo Momo Momo
6 kg 4 kg 3 kg 2 kg 1,5 l 4 kg 4 kg 4 kg 3 kg 3 kg 2 kg 1,5 l
others others others others others others others Momo Momo Momo Momo Momo
6 kg 6 kg 3 kg 2 kg 1,5 l
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Trade IV
19.3.2015
• Shelf management (small food)
Purchase direction
Eye level
Waist level
Floor level
Maxx Maxx Maxx Maxx Citron Citron Citron Citron3 kg 3 kg 2 kg 2 kg 3 kg 3 kg 2 kg 2 kg
Brisk Brisk Momo Momo Momo Momo Momo Momo3 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 1,5 l
others others others others others others Momo Momo 3 kg 3 kg
1) Own displays directly in a shop• Distinction• Problems with placing of detergents on shelves solved
1) Higher value gifts for a shop owner• Better motivated to refill displays with P&G detergents regularly and
place them in very well visible places -> „1st moment of truth“• Reward for a shopkeeper: system of points + gift catalogue
1) POS materials, leaflets in shops• Racks with flyers at cash desks
1) Promo actions• Lower prices (time parallel with hyper/supermarkets)
1) Local sales teams• Care only about traditional shops• Personal relationship with owners
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Traditional tradeSet of tools
19.3.2015
17
Shop in shop
19.3.2015 Purchase direction
fabric
softenersstain
removers
Maxx Professional
detergents
Softy
house cleaning
Brisk
Maxx
• Total MS after the 2nd year– 13% (average) but at the end of the 2nd year MS should
approach 15%
• Profit margin after the 2nd year– 8,5%
• Innovations at the end of the 2nd year– e.g. more intensive fresh scent
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Future plan
19.3.2015
Strategic Marketing & InnovationNov 25, 2010
19.3.2015
THANK YOU THANK YOU FOR YOUR ATTENTION!FOR YOUR ATTENTION!
….and
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Back-upFinancial chart
19.3.2015
• Consumer promotion (Cost $M)
• 1: Cost of studies• 2: Internet + Introductory Price Reduction
(snížení výnosu za prodaný kilogram * počet prodaných kil v daném měsíci * podíl hypermarketů a supermarketů)
• 3: Internet + Introductory Price Reduction (vysvětlení viz 2)
• 4: Internet• 5: Internet + Discount
(snížení výnosu za prodaný kilogram * počet prodaných kil v daném měsíci * podíl hypermarketů a supermarketů)
1 2 3 4 5 6 7 8 9 10
JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC TOTAL
30 0 56 102 10 102 0 105 10 118 197 197 926
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Back-upFinancial chart
19.3.2015
1 2 3 4 5 6 7 8 9 10
JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC TOTAL
30 0 56 102 10 102 0 105 10 118 197 197 926
• Consumer promotion (Cost $M)
• 6: Internet + Bonus Pack(počet prodaný kil v měsíci * očekávaný podíl 6 kg balení / počtem kilogramů v balení (6) * cena přibaleného gelu * podíl hypermarketů a supermarketů)
• 7: Internet• 8: Internet + Discount
(vysvětlení viz 5)
• 9: Internet + Drawing Promotion (počet prodaný kil v měsíci * cena dárku * podíl hypermarketů a supermarketů * (očekávaný podíl 4KG balení/počtem kilogramů v tomto balení (4) + očekávaný podíl 6KG balení/počtem kilogramů v tomto balení (6)))
• 10: Internet + Drawing Promotion (vysvětlení viz 9)
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Back-upGoals
19.3.2015
* Brands belonging to this category are not so well-established, they have less loyalConsumers, it could be easier to get the required MS.
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Back-upTA – Sizing - Price
19.3.2015
• TA - reasons why?– Mainly women buy detergents– Detergents of a lower quality are mainly bought by people
with lower incomes– Younger people have lower incomes
• Why to offer the size of 2 kg?– Goes round 1 month on average– People buy this size just for trial first– Complete competition for Momo (also in all sizes)
• Price - reasons why?– In the sizes of 4 kg and 6 kg consumers from a low- and mid-
tier category buy approximately 65% of the total volume -> suitable to try to gain MS with a lower price
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Back-upMedia
19.3.2015
• TV Performance– Jan 05 + Jun 05 + Sep 05: Production of a new TV spot
(supposed that it will take 2 months)– Mar 05 + Apr 05: Product launch campaign– May 05: Competition for Momo, brand awareness– Jun 05: Lower price support– July 05: People on holiday, they usually do not watch TV in this period– Aug 05: Our campaign overtakes Momo´s campaign – consumers stock
up with our new detergent on the basis of our TV campaign and consequently they will not respond to Momo´s campaign
– Sep 05: Competition for Momo, brand awareness– Oct 05: Lower price support– Nov 05 + Dec 05: X-mas advertisement – the aim is to attract people
to come and buy our new detergent and they will get a special present
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Back-upPromotion
19.3.2015
• NO SAMPLING (Mar -> Apr 05: trial strategy)• Ineffective• Useless for our detergent (it doesn´t try to be the best
on the market)• More advantageous to make consumers buy 2 kg size directly
because our new detergent will be sold for a really low price
• NO GIFT AT 1,5 l PACKAGE (Nov 05 + Dec 05: loyalty strategy)• The exceptional reward for consumers who are willing to buy
a bigger package• Our aim is to make consumers buy a bigger package
• NO RETRIAL STRATEGY• Left out because the period is too short• Basically the same process as a trail strategy• It´s just about naming
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Back-upShelving I
19.3.2015
Old share New share
Momo 28 25
Citron 21 19
Maxx 17 17
Brisk 0 10
Others 34 29
Old share New share
Momo 30 26
Citron 25 22
Maxx 20 20
Brisk 0 10
Others 25 22
• Hypermarket
• Supermarket
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Back-upShelving II
19.3.2015
Old share New share
Momo 38 32
Citron 17 16
Maxx 15 15
Brisk 0 12
Others 30 25
• Small food
• NO 1,5 l PACKAGE ON SHELVES• People usually don´t look for news in traditional shops• Esp. small village shops where older people usually do their shopping
but they probably won´t buy a liquid form• People from our TA who come home late could be interested but the
percentage of such convenience stores (only 15%) is so low that it wouldn´t be worth placing a liquid form there
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Back-upMerchandising I
19.3.2015
• Leaflets – timing:– Mar 05 + Apr 05: information about introductory price
reduction (4 rounds)• 2nd + 3rd week• 1st + 4th week
– June 05: information about lower price (1 round)
– Aug 05: information about bonus pack (2 rounds)• 2nd + 3rd week
– Oct 05: information about lower price (1 round)
– Nov 05 + Dec 05: information about drawing promotion (4 rounds)• 2nd + 3rd week• 2nd + 3rd week
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Back-upMerchandising II
19.3.2015
• Pyramids – timing:– Mar 05: 2nd + 3rd week: pyramids reflected new product launch– Aug 05: 2nd + 3rd week: pyramids highlighting bonus pack– Nov 05 + Dec 05: 2nd + 3rd week: pyramids highlighting drawing
promotion (4 kg, 6 kg + gift)+ special Christmas poster to attract more people
• Racks, shelf flags – timing:– June + Oct 05: lower price highlighted– Apr 05 – 1st + 4th week: new product launch reminded
On display only for a period when the appropriate leaflet is valid!!!On display only for a period when the appropriate leaflet is valid!!!
• Ad 2) System of rewarding:– Points gained for successful sales, further evaluation with
respect to stock, mark and exposure:• Displays regularly refilled, no empty space on shelves• Displays (+shelves and detergents themselves) duly labeled• Displays placed in, for consumers, very well visible places
– Evaluation carefully carried out by sales reps– Points regularly recorded– Depending how many points an owner gets during a certain
period (3-5 years), he´ll be free to pick a gift from a catalogue• Holiday• Luxurious pen• Bicycle• …
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Back-upTraditiona trade
19.3.2015
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Back-upShop in shop
19.3.2015
• Detergents (6/7)– The biggest category– On the right side because most of people are right-handed, plus they
subconsciously respect “traffic rules” (driving on the right side)
• Stain removers (1/7)– The closest category to detergents– It mustn’t optically push out detergents
• Fabric softeners (3/7)– Suppose that when a consumer needs to buy a detergent, once he gets to
the end of the shelf with detergents, he realizes that he needs to buy a fabric softener as well, he doesn´t have to go back at the beginning of the aisle, he can just cross the aisle and gain its softener quickly
• House cleaning (4/7)– It fits in very well with the 3 previous categories– It belongs to cleaning stuff