PROCTOR & GAMBLE

COMPANY
Case analysis

INTRODUCTION

This case study analysis focused on Procter and Gamble Companys marketing
plans and strategic options on its light-duty liquid brands (LDL). Procter & Gamble
is the worlds largest producer of household and hygiene products. By 1981 P&G
operated in 26 countries and sales totaled $11.4 billion with 90 consumer and
industrial products manufactured in the United States. The case study provided
some very detailed data analysis and reports in terms of the company history and
background, organizational structure, key factors to its success in the
marketplace, the relationship among advertising, sales, product development
(PDD), manufacturing, and finance departments, and its light-duty liquid brands
(LDL). Highlight of Company History, Organization, and Key Success Factors * In
1890, Procter & Gamble Company was incorporated with a capital stock value of
$4,500,000. The capital allowed the company to build plans, buy new equipment,
and develop new products. * Sales volume doubles every 10 years.

PROCTOR & GAMBLE : THE

COMPANY

Consumer Goods company operating 140+ countries

Consumer brands leads the market in most categories

STATEMENT OF PURPOSE &

STRATEGY

Provide product of superior quality and value that best fill the needs of
consumers

Dedicated and talented human resources,

A reputation for honesty and trust,

Prudent and conservative management philosophy

Innovation in superior quality of products at competitive prices,

Substantial marketing expertise.

SITUATION ANALYSES

Customer Segmentation

Market Size/Share
Competitors
Major Brands
Brand Value Preposition

P&G BRAND CATEGORIES

Factors

IVORY Liquid

DAWN

JOY

Segment

Mildness

Performance

Performance

Market Share

12.1%

15.5%

14.1%

Attributes

Best for Mildness

Makes the longest
lasting suds

OPPORTUNITIES

EVALUATION OF OPTIONS

Option1 : New Product Offering

Option2 : Product Improvement

Option3 : Increase marketing Expenditure

ARGUMENTS FOR NEW

PRODUCT LAUNCH

Underlying Case Facts

REASONS FOR P&Gs SUCCESS

(4) Innovative product offerings with superior benefits at competitive prices.

In 1981,President : John Smale quoted importance in R&D

Brand Managers were evaluated on their ability to build brand business

UNDERLYING NUMBERS
PS&D Division spent $30 million on R&D in 1981
PS&D Division spent $20 million on Consumer and Market Research

CONSUME
R
DYNAMICS

MARKET
DYNAMICS
Market
Indicators
Market Value
($)
Market
Volume
(ounce)
Market
Volume
(cases)
Category
Growth by
Volume
Segment
House
Hold
Indicators
Growth

Mildness
Performance
Price

1981
$850 million
18290000000

COMPETIT
OR
DYNAMICS

59 million
1%

1.50%
CAGR(
1981 %)
21.83
-2.21
20.65
7.02
16.52
-3.05

House-hold
indicators

Average brand/HH
Average annual
consumption
(ounce)
Average annual
frequency of
purchase

1.5
374.4
13

Lever

Phoenix

1980Gained 10% MS in test

Colgate

Dermassage

1974

ARGUMENTS FOR
PRODUCT IMPROVEMENT

Ex19 The majority consumers find that cleaning grease is the

toughest job.
Only 4% consumers find price (expensive) as a pain point
Even tough mildness is desired, this segment shows decline in
projected growth. (2%)

QUALITATIVE INDICATORS

PROS

Help in increasing market share for performance based category which is

already growing with 7% (highest among all the categories)
As per the case data 80 % of US Households scour their dishes atleast once a
week, by improving the Dawn Brand to offer advanced performance benefit
As Dawns market share is projected to increase to 16.5 % over the next five
years, thus giving the company a competitive edge for expanding the market
effectively
Helps us save in marketing and advertising cost over offering a new product

CONS

Company contemplating the idea to relaunch JOY brand with a new no spot
formula which will create a conflict in case another performance based brand
is relaunched

P&G Brands
Ivory Liquid

Year of launch
1957

Current MS

Positioning

Promotions

Other

Mildness LDL,
15.50% Value

Consumer
promotions

Highest ever tried

Dawn

1976

14.10% Performance

Highest
Emphasized trials conversion rate

Joy

1949

12.10% Performance

Emphasized trials

P&GS CURRENT PORTFOLIO

SWOT Analysis

EVALUATION