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Brand Management

Group 13
Procter & Gamble Company
SUBMITTED BY: ABHISHEK KUMAR
NIKHIL TM
POL PRIYANKA BALASAHEB
KHYATI RAO
MRIDUSMITA SAIKIA

Evaluation of performance of each


brand of LDL.
IVORY (Mildness, 15.5%)

P&Gs leading LDL brand in terms of market share with Highest trial levels at 58%.

Good conversion ratio at 39.6%.

89% users and 51% non-users claimed it to be best for mildness

Reduced promotion frequency from eight 4 week events to 6 events in 1982

20% of promotion budget allocated to trade allowances

80% of promotion budget allocated to consumer promotion

Major focus (2/3rd) on price packs & minor focus (1/3rd) on coupon offers

Demand expected to remain stable over the next five years.

DAWN (Performance, 14.1%)

Performance brand with 14.1% market share

Good trial percentage at 54%.

Highest conversion ratio at 46.3%.

Unique benefit of superior grease cutting capability

96% users and 45% non-users claimed it to be best for cutting


grease.

2/3rd of promotional events were trial oriented coupon events


while remaining 1/3rd were price packs

Share expected to rise to 16.5% over the next five years.

JOY (Performance, 12.1%)

Ranked 3rd in LDL category with 12.1% market share

Lowest trial percentage at 43%.

Lowest conversion ratio at 30%.

Product benefit of delivering shiny dishes by using unique no spot formula

81% users and 45% non-users claimed it to be best for leaving dishes shiny.

50% promotional budget allocated to trial oriented coupon events & prepriced events

Remaining 50% was allocated to price packs.

Share expected to increase by 1% per year over the next five years.

Options facing Mr. Wright

1. New brand introduction

2. Product improvement on existing brand

3. Increase marketing expenditure on existing brand

4. Simultaneously improving existing one brand and


increasing marketing expenditure on another

Evaluation criteria

Cost

Implementation time

Market penetration/saturation

Companys positioning

Cost analysis

New brand introduction:

Introducing a new brand would require a total of 80$ million(20$ million for capital investment
and 60$ million for first year introductory marketing expenditure). Also, looking at the
organizational structure of P&G additional recurring capital would be needed as they have a
different set of working individuals for a new brand, like a dedicated brand manager and
associate brand manager.

Product improvement on existing brand:

Introducing improvements in an existing brand would require a total of 30$ million (20$ million
for capital investment and incremental marketing expenditure of 10$ million)

Increase marketing expenditure on existing brand:

This option requires a relatively lower capital, which is considerably less than the above options.

Simultaneously improving existing brand and increasing marketing expenditure on another:

This would require capital needed for both option two and option three.

Implementation time

1. New brand introduction:

Around two years (and three if test market is needed)

2. Product improvement on existing brand:

Around one year (and two years if test market is needed)

3. Increase marketing expenditure on existing brand:

Implementation can start immediately if financially attractive, and 6-12 months if


test market is needed.

4. Simultaneously improving existing brand and increasing marketing expenditure


on another:

Around one year (and two years if test market is needed)

Market penetration/saturation

Due to the market penetration of PS&D division, which is 92%


and the increasing usage of ADW machines, there is very less
potential for increasing volume of LDL.

This is because the market is almost saturated and ADW


households use one-half as much LDL which further reduces the
volume demand.

Trend suggests ADW household penetration is increasing at a


rapid pace, which poses a serious threat to the LDL demand.

Companys positioning

P&G had a reputation of a highly principled manufacturer of


quality goods.

Therefore if P&G is looking to launch a new brand it should only


launch one in the performance or mildness segment.

However if they try to launch a new branch in the price segment


it would go against there positioning of someone who provides
quality as generally a price brand requires two to three times as
much volume to create the same washing effect which might
make a consumer question the quality of the brand.

This would deteriorate P&Gs image which might affect sales of


other segments too.

Choice of option
We would recommend product improvement on the Joy brand by using H-80 technology, which combines
suspended non abrasive scrubbers with highly effective detergent to provide superior cleaning.
Also, we would suggest an increment in the marketing expenditure of the Ivory brand.

Why Joy?
Joy was predominantly a performance oriented brand which positioned itself as someone who delivers
beautiful dishes. Its focus on performance was not as strong as that of Dawn and hence it had the least
conversion rate. Adding the H-80 technology to Joy would help improve the conversion rate and hence the
market share.
Since 80% of US households scour and scrub 4 times a week on average this improved product would be
valued by significant percentage of consumers.
Potential addition of market share = 0.80 * 91,000,000 * 0.92 * 4 * 52 * 0.58 , which takes care of the 42%
market share that P&G already enjoys.

Why Ivory?
According to exhibit 19 it is clear that consumers asked for mildness in LDL the most. Looking at exhibit 14
only 58% of the total consumers have ever tried Ivory, which means that they are still unaware of the
mildness function of the Ivory. Hence the marketing budget would help us create awareness among the rest
42%, which will potentially convert 16.65% of them (according to exhibit 14 out of 58% of people who tried ,
23% are regular customers, and hence we choose the number accordingly).