CASE: SOAP COMPANIES DO BATTLE

Quantitative Techniques Assignment-I

Name: Apeksha Dubey
Class: Alpha

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History of Leadership Position in US Soap Market

Procter & Gamble was leading soap manufacturer of US since it

introduced Ivory Soap in the year 1879 till 1991
Lever Bros (Unilever) had introduced Lifebuoy in 1895 but were
trailing.
As a part of changed strategy in 1990 Unilever introduced a new
soap Lever 2000 which was segmented as family soap.
With this Unilever overtook by grabbing 31.5% of personal soap
market. P&G share then was 30.5%
To respond to the new challenge P&G and introduced new soap
oil of Olay and repositioned Safeguard brand to regain the market
share.

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Solution 1:

Current Position of Market Share

The data here shows that Unilever is now soap market leader with
38.47% market share with Dove as leading brand.
Top three soap brands are Dove, Dial and Lever 2000, None of P&G
brand is there.

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Competitors Position

P&G is in second position with market share of 24.98%

Company 1983 (Share 1991 (Share Latest (Share

%) %) %)

P&G 37.1 31.5 24.98

Unilever 24 30.5 38.47

Dial 15 19 18.16

Colgate & 6.5 8 9.27

Pamolive

Others 17.4 11 9.12

Data Tables According to Case: Soap Companies Do battle

However dial is catching up fast it has 18.16% followed by

Colgate Palmolive with 9.27% market share.
Dial soap brand is at number two with 14.79% share.
Irish Spring of Colgate Palmolive has 9.27% share which is
higher than any brand of P&G.

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Latest Market Share:

Latest Market Share

Company Sales Market Shares
($ million) (%)
P&G 326 24.98
Zest 115 8.81
Ivory 94 7.2
Olay 69 5.29
Safeguard 48 3.68
Unilever 502 38.47
Dove 271 20.77
Lever 2000 138 10.57
Caress 93 7.13
Dial 237 18.16
Dial 193 14.79
Coast 44 3.37
C&P 121 9.27
Irish Spring 121 9.27
Others 119 9.12
Total Personal Soap Market 1305 100

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Year wise Companies Market Share Chart

Pie Charts exhibit the market shares

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 Market Share in Current Year

Unilever
Procter & Gamble
Dial
Colgate-Palmolive
Others

Year wise Companies Market Share Chart shows that

In year 1983 P& G was ruling the market

In year 1991 Unilever shows tremendous growth and establish them as

leading competitor to P & G. Latest data shows that finally Unilever left out
P&G far behind . One more thing can be observe that year by year 1983,
1991 and latest market share holding by "Dial" ,"Colgate Pamolive"
remains almost same . So Unilever is clearly affecting market of P & G as
well as Other Companies.

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Companys year wise progress:

Company's progress year wise

45
40
35
30
Market Share in 1983
25
Market Share in 1991
20
Market Share in Current Year
15
10
5
0

Company's Progress year wise chart shows that:

P&Gs market share is continuously declining and Unilever has

strengthen every year
Dial Company has maintained its share and is a consistent
performance
Colgate Pamolive is also progressing but market share is relatively
less

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Solution 2:

Average Demand per week:

Sales of bar per week

20
18
16
14
12
10
8
6
4
2
0
10 - 15 15 - 20 20 -25 25 - 30 30 - 35 35 - 40

Sales of bar per week

Graph is NOT a Normal Curve

maximum frequency lies between 15 25

Only for 3 weeks in a year sales have crossed the figure more than
30 million soaps.
If production capacity is between 20 - 25 million it can easily cop
up with the variant sales behavior.

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