Procter & Gamble Package Soap and Detergent Quarterly Marketing Review July 18, 2002.

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Presentation transcript:

Procter & Gamble Package Soap and Detergent Quarterly Marketing Review July 18, 2002

The Marketers Consulting Dursun Nas - Executive Director Barry Luong - Program Executive Erguen Aldeniz - Finance Director Richard Ching - Graphics Director Ann Smalley - Sales Director Lily Cooc - Consumer Analyst Juny Kim - Marketing Director

Chris Wright Dilemma Introduction of a new brand Product Improvement Increased marketing expenditures

Product Improvement Add H-80 to Dawn Liquid - Customer preference - High NPV - Low Cannibalization Restage Joy with the new “no-spot” formula - Customer preference - Quick return of investment

Procter & Gamble Quality Goods Honesty New-product development Dedicated and talented resources Prudent and conservative management Innovative products Marketing expertise

Consumer Preference Top five attributes Feelings on dishwashing Wants and Needs

Initial capital investment and cost Time to introduction to marketplace Cannibalization Net present value Why Not a New Product?

Net Present Value of a New Product ($12)

Why Not More Marketing? Cannibalization Break Even Analysis

Break-Even Analysis

Why Product Improvement Why Product Improvement H-80 Formula $20 Million Initial Investment $10 Million Incremental Marketing Time To Market

Which Product to Improve Upon I VORY LIQUID DAWN

Financial Analysis – Ivory Liquid Consumer preferenceConsumer preference Thrill Thrill

Joy No-Spot Formula Financial Analysis

Financial Analysis - Joy $70

Dawn Performance Enhancement Consumer Preference Financial Analysis

Financial Analysis - Dawn

Implementation Plan Commercial campaigns on day-time and prime-time television Publications Rebates/coupons Direct mailer

Conclusion Combined NPV Consumer preference maximized Continuity of Procter & Gamble corporate philosophy