PROCTER & GAMBLE

GROUP’S MEMBERS. Marketing Management Mamunur Rahsid Nguyen Tan Nhat Duy Do Nguyen Yen Nhi Huynh Tan Tai Betty ViVi Group 8 – Case 2 - IBM

OUTLINE 1. Introduction 2. Europe Market 3. America Market 4. Four Ps 5. Customer Behavior 6. Conclusion

INTRODUCTION The Procter & Gamble Company is primarily a manufacturer and distributor of household products. Its products are sold throughout the United States and abroad. The Company is a corporation that was incorporated under the laws of Ohio in 1905 and was the outgrowth of a business founded in 1837 by William Procter and James Gamble. The company’s principal executive offices are located at One Procter & Gamble Plaza, Cincinnati, Ohio 45202, USA.

BACKGROUND 1837: WilliamProcter and James Gamble start making and selling their soap and candles 1878:Procter&Gamble first WHITE SHOP hit the market. Renamed as Ivory soap(Accidental Development- Soap Mixer+More Air)

1890:P&G sets up an analytical lab at Ivory dale to study and improve the soap-making process. 1962:Distribution of CAMAY Soap by Rei-Werke. 1980:China Established special economic zones to promote free trade and opened local markets to foreign investments. BACKGROUND

1985:Proter&Gamble lost $40 million Dollars as 3 major Japanese firms Dominated in disposable products. 2005:P&G and Gillette merge into one company and add five more billion dollar brands to our product portfolio, including Gillette and Braun‘s shaving and grooming products, the Oral-B dental care line and Duracell batteries. BACKGROUND

2007:The company’s operations are categorized into three “Global Business Units” Beauty Care, Household Care, Health & Well-Being. BACKGROUND

EUROPE MARKET In the beginning of the 1980s it became more and more obvious that greater co-ordination was needed between local market in Europe. Marketing strategies had to be thought through from a European perspective. In Europe a steady growth of the shampoo market and the conditioner market could also be seen.

The shares of shampoo users who also used conditioner was still below the 44% which had been reached in the U.S.A. (Particularly true of Southern European countries.) An underdeveloped conditioner market was, however, also evident in French. (only 10% of shampoo consumption ) EUROPE MARKET

Among the considered European countries, Great British, with 42%, had the strongest user share. With respect to the number of suppliers and brands, the European market was even more crowed then the U.S.A market, undoubtedly a function of the different nationalities. EUROPE MARKET

AMERICA MARKET Hair care market-sub markets Relevant market are 1.shampoo:increased in hair-washing and 2.conditioner:by new user High fragmented-large supplier and brands. Market shares have signs of movement.

1.volume and 2.value-based market: considerable difference Example: P&G-losing market share in 1986, then introducing BC18 for replacing with Pert Plus. AMERICA MARKET

MARKET – PERT PLUS: BC18 Marketing goal: leasing value position/ market share 10% minimize. (first year: market share value of 5%) Position shampoo which offer attractive hair in a convenient way.-by unique formula. (with mild shampoo and effective conditioner)

MARKET – PERT PLUS: BC18 Target market: all public Source: come from people who didn’t use before. Pert Plus was introduced by US$3.20 Marketing strategy: Pricing premium-priced segment (up to 100% of the low price market)

Introducing plan:1.first 12months-TV ad, Sample, Listed fund. 2.following 12months-Display activities in hypermarkets. MARKET – PERT PLUS: BC18

PRODUCT No connotation in a particular language’s history or region Should be easily pronounceable in each country Vidal Sassoon is an already well-known brand name in US and several European countries Compliment the new BC_18 product with high quality

PRICE Premium-priced segment -> to keep up the image of the shampoo as a high quality and innovative product There are many prices/package depend on each brand and market 1/ 4.99 DM for the 200 ml bottle 2/ 5.99 DM for the 250 ml bottle

PLACE Department stores - supermarkets, with a special decoration. Hairdressers - beauty salons - personal care shops (directly and effectively impact on clients)

PROMOTION Promoted in a homogeneous way and conduct promotion campaign and advertising campaign A TV ads underline the easy way to use and the perfect hair; besides, explaining the effect of shampoo and conditioner on your hair scientifically and understandably. Link

SHORT – TERM OBJECTIVES To attract new European customers who never used conditioners and customers from competing brands. Encourage people to use the new the new BC-18 Compete with the different national brands which are established. Have a plan to take Vidal Sassoon out of the market and try to convince the remaining Vidal Sassoon customers to use Vidal Sassoon Plus.

To establish brand loyalty Enable customers to become more familiar with the range of products available at P&G Have a plan to take Vidal Sassoon out of the market and try to convince the remaining Vidal Sassoon customers to use Vidal Sassoon Plus. To establish brand loyalty Enable customers to become more familiar with the range of products available at P&G SHORT – TERM OBJECTIVES

MARKETING OBJECTIVES OF EACH COUNTRY Scandinavi a Vidal Sassoon was used and conditioner market is good 4 – 4.5% market share can be gained Benelux Conditioner market is bigger than France market Gain 3.5% market share in the 1 st year and 4% in the 2 nd year France Very difficult to introduce a new completely product into a small market 2.5% market share can be expected in the 1 st year and 3% in the 2 nd year West Germany - Attract consumer by conditioner component - Get 3% conditioner market share in the 1 st year and 3.5% in the 2 nd year Great Britain - Attack Timotei’s leader position and maintain Head & Shoulders - Try to gain 4% volume market share in the 1 st year and increase 5% in the 2 nd year

LONG – TERM OBJECTIVES Establish a market share that will expand and gain in recognition. Increase steadily the market share of the market in Europe. Strengthen company position as a market leader. Get more benefits from revenues

CONSUMER BEHAVIOR In USA Market Have many groups as an subculture. There is Hispanic consumer, black consumer others than white Common American Consumer: easy to except new things, and price conscious. Hispanic: tend to buy more branded, higher-quality products, but they also very loyal customer. Black Consumer: More price conscious, but strongly motivated by quality and selection.

CONSUMER BEHAVIOR In the late 1980’s health care and beauty care products were one of the fastest growing market as the US population grew both older and more health conscious. The growth of conditioner market are slow because is driven only by the new customer.

CONSUMER BEHAVIOR In Europe Market The European market is heterogeneous, multicultural and multilingual; therefore, the name chosen for the shampoo should have to no connotations in a particular language's history or religion. Moreover, the name should be easily pronounceable in each culture.

CONSUMER BEHAVIOR The share for people who use shampoo and conditioner are low comparing with US market European market is highly competitive the main rivals are Colgate, Unilever, and L'Oreal. The European market is segmented (i.e. value based) and Sensitive to price changes (i.e. elastic demand)

CONCLUSION At present, Procter&Gamble brands touch the lives of people around the world.The company has one of the strongest portfolios of trusted, quality,leadership brands.SO the company manufactured and marketed nearly 300 brands to consumers in over 160 countries across the globe.

Procter and Gamble 's historical growth has been mainly driven by its strategy of global conglomeration through diversification and acquisitions. For this reasons the company to easily establish its global operations and to continue penetrating new markets. CONCLUSION