Table A Sizes of Dishwashing Liquid Used in Past Seven Days 48 oz. 32 oz. 22 oz. 12 oz.

% Respondents Source: Company research.

13%

30%

42%

15%

Table B U.S. LDL Market Influences 1960 LDL Household Penetration ADW Household Penetration Total Households (millions) a Company estimates 1970 1980 1990a

53% 5% 53

83% 18% 63

90% 36% 79

92% 44% 91

Table C Ivory, Dawn and Joy Pricing Manufacturer’s Size Items/Case Carload Case Price Carlo ad Item Price $2.53 1.77 1.2 $0.67 Avera ge Retail Price $2.99 2.04 1.46 $0.84

48 oz. 32 oz. 22 oz. 12 oz.

9 12 16 24

$22.77 21.24 19.2 $16.08

08 $7.416 83 11.746 1.186 518 668 438 640 -75 $593 — $640 $8.772 52 10.078 Earnings from operations before income taxes Income taxes Net earnings from operations Extraordinary charge: costs associated with the suspension of sale of Rely tampons (less applicable tax relief of $58) Net earnings Per common share Net earnings from operations 1.178 98 10.361 7.824 7.854 2.313 97 9.499 1980 $10.74 .471 2. administrative. and other expenses Interest expense $11.Exhibit 1 Consolidated Statement of Earnings ($ in millions except per share amounts) Fiscal Year Ending June 30 1981 Income Net sales Interest and other income Costs and expenses Cost of products sold Marketing.

40 .91 $7.17 — $7.80 $3.Extraordinary charge Net earnings Average shares outstanding 1980—82.861 Dividends Source: Company records -0.74 $3.659 .

4 59.1 37% 36 36 35 35% 35% 35 35 36 36% 28% 29 29 29 29% . Projected 1982 1983 1984 1985 1986 56.1 57.8 60.7 59 44% 45 44 43 40 40 39 38 37% 19% 20 21 22 28 30 32 33 35% 37% 35 35 35 32 30 29 29 28% 59.Exhibit 6 LDL Market Historic Growth Trends and Projections Fiscal Year Ending June 30 Volume (millions cases) % of Category Volume Mildness Performance Price A.8 56.4 57 56.4 56.1 60.8 57 58. Actual 1973 1974 1975 1976 1977 1978 1979 1980 1981 B.8 61.

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.Exhibit 7 Attribute Importance Ratings % of Res Attribute a* Makes dishes shine Pleasant odor or perfume Don‘t have to use much Doesn‘t make skin rough Is low-priced Good for hand-washing laundry Does a good job on pots and pans Does not spot or streak glasses or dishes Is mild to hands Makes long-lasting suds Cuts grease Is economical to use Soaks off baked-on or burnt-on food Good for tough cleaning jobs Source: Company research 6 64% 40 70 65 50 29 75 67 68 83 87 72 60 52% 5 16% 17 13 12 19 14 13 15 13 12 6 13 17 13% a* Respondents were asked to rate the importance to them of LDL attributes on a 6-point scale. with 6 being ‗‘want To be read. for example: 64% of respondents claimed ―Makes dishes shine‖ as one of the attributes they wanted m of respondents claimed this attribute as the one they wanted least.

.

80% oint scale.2 5.2 5. while 2% .Ratings % of Respondents 4 7% 11 6 7 10 9 4 8 5 7 2 6 7 8% 3 6% 10 5 5 9 11 2 3 5 2 1 4 5 9% 2 2% 7 1 4 3 9 1 2 3 2 – 1 2 4% 1 2% 10 2 3 4 23 1 2 3 2 1 1 4 9% No Answer 3% 5 3 4 5 5 4 3 3 2 3 3 5 5% Average Rating 5.5 5.5 5.7 5.6 5. with 6 being ‗‘want the most‖ and 1 being ‗‗want the least.30% 4.‖ the attributes they wanted most in a dishwashing liquid.8 5.2 4.5 5 5 3.4 5.

.

.2 — — 5.9 100.9 23. The brand ultimately proved not to provide a needed product benefit and discontinued in 1975 because of faltering volume.5 — — 32.5 5.90% 17.00% Mildness Mildness Performance Price Mildness Mildness Price/performance Mainly price/generics and private labels Source: Company records a* Thrill was introduced by P&G in 1969. 5 38.Exhibit 8 LDL Market Shares by Brand and Company (shares of statistical cases) Share of Market Brand P&G Joy Ivory Dawn Thrill a* Lever Brothers Lux Dove Sunlight All others Colgate-Palmolive Palmolive Liquid Dermassage All others All other LDLs Total LDLs Segment 1961 Performance Mildness Performance Mildness/performance 14.4 17.3 — — 5.

1 15.statistical cases) Share of Market 1971 1981 12.5 8.5 14.3 4.1 0.1 3.6 21.8 100.3 35.00% 14.9 29.7 — 9.00% 12.8 3.1 — 41.9 — 2.8 100.8 7. 3 23.8 — 1 13.7 3.9 11.00% e a needed product benefit and was .7 — 6.6 27.1 11.

Exhibit 9 Cost Structure for an Established LDL Brand Cost of goods Distribution Selling and general administration Marketing expenditures Profit Total 51% 7 10 20 * 12 100% Source: Company records * Includes advertising. trade and consumer promotion expenditures. .

* A brand user was defined as a respondent who reported that brand as the usual brand used over the .Exhibit 10 LDL User/Non-User Attribute Association (%) Usual Brand * Joy Dawn Yes No Yes No 53% 12% 41% 7% 78 14 88 15 49 7 96 45 55 10 88 28 81 45 59 5 60 4 65 6 60 10 67 11 64% 35% 39% 9% Attribute Best for mildness Best overall for getting dishes clean Best for cutting grease Best for removing tough. 51 % of people who did not claim Ivory Liquid as their usual brand indicated it was best for being mild to your hands. cooked-on foods Best for leaving dishes shiny Gives the best value for your money Makes the longest-lasting suds Has the most pleasant fragrance Source: Company research Ivory Liquid Yes No 89% 51% 64 9 41 6 47 7 44 10 74 24 79 29 43% 11% Note: Respondents were asked to indicate which one brand was best described by each attribute phrase. To be read. for example: 89% of respondents who claimed Ivory Liquid as their usual brand indicated that it was best for being mild to your hands.

.

%) ual Brand * Palmolive Yes No 71% 27% 61 5 35 4 41 6 40 4 55 5 50 5 35% 11% Price Brands Yes No 13% 2% 18 1 16 1 19 2 14 1 40 7 12 1 14% 1% y each attribute s their usual brand t claim Ivory Liquid as brand used over the .

.

.Exhibit 14 Current Product Usage (%) Ivory Joy Dawn 23% 13% 25% 35 30 29 58% 43% 54% Usual brand Past 12-month trial Ever tried Source: Company research Note: An estimated 60%–80% of total brand volume was consumed by usual brand users for each brand.

and users for each brand. .

50% Dawn 11.Exhibit 16 Shipment and Share Data for LDL Brands Factory Shipments (millions of cases) Market Share (% of LDL category) Ivory Dawn Actual 1977 1978 1979 1980 1981 Estimated 1982 1983 1984 1985 1986 9.5 15.9 16.4 9.20% 12.50% 12.2 14 14.2 9.10% Joy 11.6 7.8 6.3 9.1 9.7 13.9 7.1 Ivory 16.8 15.3 9.7 10.30% 15.3 Joy 6.1 9 9.5 8.2 7.70% Source: Company records Note: Projections are based on each brand manager‘s judgment.7 9 9.7 7.1 7.6 12 11.7 6.7 12.3 7.5 15.50% 15.10% 9.5 8.1 9.3 12.3 9.90% 11.5 7.50% 14.5 15.5 12. .7 6.5 15.2 8.4 12.5 15.4 7.90% 12.1 6.70% 15 15.5 16 15.

000 41 No Name/ Users * Liquid Joy Dawn Palmoli Plain ve Label 9% 90 48% 51 49% 51 51% 49 48% 42 47% 53 Heavy LDL Ivory 46 29 25 28 27 45 32 26 42 35 29 36 30 27 43 36 29 35 Population Density (000/sq.999 45 2.000 32 $15.000–25.Exhibit 17 LDL-User Demographic Profile (% of total responding households) Usual Brand Total LDL Households ADW Usage—Past 7 Days Yes 36% No 64 Yearly Income Under $15.000 and over 23 Geographic Area Northeast North Central South West Employment** Employed Not employed Age*** Under 35 35–50 51–59 60+ Number in Family 1–2 3–4 5+ 39 40 21 30 45 25 33 44 23 38 43 19 28 46 26 20 48 32 22 28 33 17 26 28 35 11 22 26 34 18 23 27 37 13 19 31 35 15 24 27 33 16 36 31 16 17 48 52 37 63 48 52 50 59 49 51 49 51 55 45 33 30 16 21 39 25 15 30c 31 29 17 23 34 31 16 19 38 30 15 17 39 30 16 24 35 37 12 16 40 44 16% 41 41 18% 43 42 15% 38 45 17% 38 46 16% 42 44 14% 28 50 22% . Under 50 32 50–1.000 27 Over $25.

**Female head of household. P&G management believed that. though users was .Source: Company research Note: To be read. *** The heavy LDL-user skew toward older respondents may be misleading. for example: 48% of respondents who claimed Ivory Liquid as their usual brand had used an automatic dishw * Defined as +15 sinksful per week.

Exhibit 18 LDL Category Assessment (4-week blind in-home use test of H-80 in 45 Attribute Ratings (%) Overall Cleaning Removing baked/burned/dried-on food Grease Removal Amount of suds made Mildness Amount of suds made Mildness Mildness Odor of product Color of product Favorable Comments (%) Unduplicated cleaning Cleans well Cleans hard-to-remove food Cuts grease Unduplicated sudsing Product color Mildness Unduplicated odor Unduplicated sudsing Product color Mildness Unduplicated odor Product color Mildness Unduplicated odor Unduplicated cap/container Unduplicated consistency Like scrubbing particles/abrasives Unfavorable Comments (%) Unduplicated cleaning Not clean well Not clean hard-to-remove food Not cut grease Unduplicated sudsing Product color Mildness Unduplicated odor Unduplicated cap/container Unduplicated consistency Not like abrasive/gritty feel Dishwashing Information Used product full strength for scrubbing Used scrubbing implement for tough jobs .

Both brands were accompanied by instructions suggesting the product be diluted for general dishwashing but used full strength for tough dishwashing jobs. Note: To be read. for example: 77% of the 425 households who used H-80 rated it as 4 or above on a 5-point scale on overall performance. * Unmarked bottles of H-80 were given to one of two representative samples of LDL users. The other sample group received unmarked bottles of an established competitive brand.Source: Company research. .

bit 18 n-home use test of H-80 in 45 households) Established Competitive LDL with Scrubbing Instructions * 71 73 61 72 69 63 68 69 65 29 15 32 45 5 34 40 2 2 — 9 1 5 8 17 3 14 9 2 1 1 52 85 H-80 with Scrubbing Instructions * 77 79 73 77 73 55 70 72 73 36 25 34 49 6 25 45 8 12 12 4 — 1 3 9 1 16 10 2 12 11 61 79 .

. What is the worst thing about doing dishes? The time it takes Having to do them Cleaning pots and pans Scrubbing/scouring Cleaning greasy items Hard on hands 2. What is the toughest dishwashing job? Removal of baked/burnt/fried/cooked foods Removal of greasy foods Cleaning of pots and pans Cleaning of skillets Cleaning of casseroles Cleaning of dishes 3. What improvement do you want the most in a dishwashing liquid? Milder to hands Do it by magic/itself Eliminate scouring or soaking Cut grease Soak dishes clean Suds never vanish Nothing/satisfied Source: Company research.Exhibit 19 Selected Research Data: Personal Feelings Concerning Dishwashing 1. What is most disappointing about your current dishwashing liquid? Nothing Suds disappear Leaves grease Odor Hard on hands Price/expensive Have to use too much 4.

Dishwashing % of Consumers 24% 22 15 14 6 4 39 32 22 16 7 3 51 12 8 6 2 4 4 11 10 9 9 9 6 9% .

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8.37080.9810/ $4:7.                           .7.0425.

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