Procter Procter && Gamble Gamble Detergent Case StudyDetergent Case Study

TEREZA Bártová

STANISLAV Krupa

JIŘÍ Tabáček

PETR Weida

LENKA Adámková

STAINFIGHTERSSTAINFIGHTERS

Strategic Marketing & InnovationNov 25, 2010

19.3.2015

• OGSM Sheet• Target Audience• Product formula• Sizing strategy• Pricing strategy• Media strategy• Copy strategy

• Promotion strategy• Trade• Selling tools for

traditional trade• Shop in shop• Future plan• Back-up

219.3.2015

Outline

Objective Goals

Ensure P&G market leadership in the field of detergents by maintaining MAXX on the market and launching BRISK as a new detergent

at the same time. Our aim is to avoid cannibalization of the current brand MAXX and achieve at least a neutral profit for the new

brand BRISK in the first two years.

Volume: 760 MSU / 6 080 000 kg Volume share: 8%

Strategies Measures Action Plans Timing

Make customers try out BRISK for the first time in order to get new experience with the product and subsequently

switch to bigger and more expensive sizes.

Number of customers who try out the brand BRISK.

Steps in terms of trial strategy, focus on

introductory price reduction.Mar -> Apr 05

Convince customers who have used MOMO so far that BRISK can offer them better

features regarding bleaching effect and freshness and is for a comparable

price at the same time.

Number of customers who switch from our competitor

MOMO to our new brand BRISK.

Communication campaign, emphasis of better quality,

comparable price, attainable in the same sizes.

Mar -> Jun 05

Build a brand awareness among customers.

Number of customers who can spontaneously name

our brand.

Complex communication campaign (TV spots, ads).

Mar -> Dec 05

Build a loyalty among recently gained customers.

Number of customers who consider BRISK as the first choice.

Steps in terms of loyalty strategy, drawing

promotion.Nov -> Dec 05

OGSM Sheet

• Women– Housewives– Students– Women on maternity leave

• 22 – 34 years

• Lower incomes (less than 185 000 HUF)

19.3.2015 4

Target Audience

• Chosen product formula – Option III - BRISK

5

Product formula

19.3.2015

Comparison with the biggest competitor

BRISK MOMO

Cleaning Base Equal

Whiteness Base Slightly poorer

Freshness Base Poorer

Residues Base Equal

• Low-tier product• Competition for the brand Momo• Avoidance of cannibalization of our current brand Maxx

6

Sizing strategy

19.3.2015

Size 2 kg 3 kg 4 kg 6 kg 1,5 l 3 l

BRISK x x x x x -

• Powder/liquid form• To address as a large group of consumers with

different purchase habits as possible

7

Pricing strategy I

19.3.2015

Pricing (HUF)

BRISK MOMO Difference

2 kg 999 949 + 5,3%

3 kg 1 299 1 249 + 4,0%

4 kg 1 699 1 699 -

6 kg 2 299 2 299 -

1,5 l 999 949 + 5,3%

• Vision: „To provide consumers with a better quality for a comparable price“

• Preference: High-low pricing (our TA is sensitive to promo actions connected with a price cut-down)

8

Pricing strategy II

19.3.2015

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

H H L L H L H H H L H H• Price

(Hi-Lo)

Reduced price (HUF)

Size BRISK

2 kg 899

3 kg 1 199

4 kg 1 499

6 kg 1 999

1,5 l 899 • Applied only for hyper/supermarkets

9

Media strategy

19.3.2015

New TV spot

New TV spot

New TV spot

Introductory campaign

Product reminder

Loyalty building

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0 0 600 600 250 400 0 600 250 400 400 400

• TV Performance (beginning in March 05)

• Magazines for women: • Jun 05 -> Aug 05: On holiday people usually read mag. more • Nov 05 -> Dec 05: Mag. bought because of recipes for X-mas cookies

• Internet: Time parallel with TV campaign, websites for women

Month/GRPs

10

Copy strategy

19.3.2015

“To all women who must fight with irresistible stains on everyday basis we introduce a new detergent on the market – BRISK – that brings a quality of more luxurious detergents at a very reasonable price. Thanks to a new applied technology that consists in higher concentration of bleach and stuff that subsequently releases a fresh scent, your garment will look cleaner and smell fresher than before.”

11

Promotion strategy

19.3.2015

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

• Trial strategy• Introductory price reduction• No sampling

• Loyalty strategy• Drawing promotion• 4 kg, 6 kg + gift

• Loading/stocking strategy• Bonus pack • 1+1 free: 6 kg + 1,5 l

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Trade I

19.3.2015

Distribution Merchandising

Hypermarkets Full (all sizes) Selected materials

Supermarkets Full (all sizes) Selected materials

Small food Limited (2+3kg)

Special tools(see slide 16)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

x x Leaflets

Pyramids

Leaflets

Racks

Shelf flags

x Leaflets

Racks

Shelf flags

x Leaflets

Pyramids

x Leaflets

Racks

Shelf flags

Leaflets

Pyramids

Posters

Leaflets

Pyramids

Posters

Summary

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Trade II

19.3.2015

• Shelf management (hypermarket)

Purchase direction

                                       others others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx          1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 3 l 3 l 1, 5 l 1, 5 l 3 l 3 l                                                                              others others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx          2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg                                                                              others others others others Momo Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx        3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg                                                                                                                     others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Citron Maxx Maxx Maxx Maxx        4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg                                                                                                                     others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Citron Maxx Maxx Maxx Maxx        6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg                                       

14

Trade III

19.3.2015

• Shelf management (supermarket)

Purchase direction

Eye level

Waist level

Floor level

Stretch level

                       

others others others others others others others Citron Citron Citron Citron Citron

              4 kg 4 kg 3 kg 2 kg 1,5 l                       

                       

Maxx Maxx Maxx Maxx Maxx Maxx Maxx Maxx Citron Citron Citron Citron

6 kg 4 kg 4 kg 3 kg 3 kg 2kg 2 kg 1,5 l 4 kg 3 kg 2 kg 1,5 l                       

                       

Brisk Brisk Brisk Brisk Brisk Momo Momo Momo Momo Momo Momo Momo

6 kg 4 kg 3 kg 2 kg 1,5 l 4 kg 4 kg 4 kg 3 kg 3 kg 2 kg 1,5 l                       

                       

others others others others others others others Momo Momo Momo Momo Momo

              6 kg 6 kg 3 kg 2 kg 1,5 l                       

15

Trade IV

19.3.2015

• Shelf management (small food)

Purchase direction

Eye level

Waist level

Floor level

               Maxx Maxx Maxx Maxx Citron Citron Citron Citron3 kg 3 kg 2 kg 2 kg 3 kg 3 kg 2 kg 2 kg

                              

Brisk Brisk Momo Momo Momo Momo Momo Momo3 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 1,5 l

                              

others others others others others others Momo Momo            3 kg 3 kg               

1) Own displays directly in a shop• Distinction• Problems with placing of detergents on shelves solved

1) Higher value gifts for a shop owner• Better motivated to refill displays with P&G detergents regularly and

place them in very well visible places -> „1st moment of truth“• Reward for a shopkeeper: system of points + gift catalogue

1) POS materials, leaflets in shops• Racks with flyers at cash desks

1) Promo actions• Lower prices (time parallel with hyper/supermarkets)

1) Local sales teams• Care only about traditional shops• Personal relationship with owners

16

Traditional tradeSet of tools

19.3.2015

17

Shop in shop

19.3.2015 Purchase direction

fabric

softenersstain

removers

  

Maxx Professional

detergents

   

Softy   

 

house cleaning

   

Brisk      

Maxx 

• Total MS after the 2nd year– 13% (average) but at the end of the 2nd year MS should

approach 15%

• Profit margin after the 2nd year– 8,5%

• Innovations at the end of the 2nd year– e.g. more intensive fresh scent

18

Future plan

19.3.2015

Strategic Marketing & InnovationNov 25, 2010

19.3.2015

THANK YOU THANK YOU FOR YOUR ATTENTION!FOR YOUR ATTENTION!

….and

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Back-upFinancial chart

19.3.2015

• Consumer promotion (Cost $M)

• 1: Cost of studies• 2: Internet + Introductory Price Reduction

(snížení výnosu za prodaný kilogram * počet prodaných kil v daném měsíci * podíl hypermarketů a supermarketů)

• 3: Internet + Introductory Price Reduction (vysvětlení viz 2)

• 4: Internet• 5: Internet + Discount

(snížení výnosu za prodaný kilogram * počet prodaných kil v daném měsíci * podíl hypermarketů a supermarketů)

1 2 3 4 5 6 7 8 9 10

JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC  TOTAL

30 0 56 102 10 102 0 105 10 118 197 197   926

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Back-upFinancial chart

19.3.2015

1 2 3 4 5 6 7 8 9 10

JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC  TOTAL

30 0 56 102 10 102 0 105 10 118 197 197   926

• Consumer promotion (Cost $M)

• 6: Internet + Bonus Pack(počet prodaný kil v měsíci * očekávaný podíl 6 kg balení / počtem kilogramů v balení (6) * cena přibaleného gelu * podíl hypermarketů a supermarketů)

• 7: Internet• 8: Internet + Discount

(vysvětlení viz 5)

• 9: Internet + Drawing Promotion (počet prodaný kil v měsíci * cena dárku * podíl hypermarketů a supermarketů * (očekávaný podíl 4KG balení/počtem kilogramů v tomto balení (4) + očekávaný podíl 6KG balení/počtem kilogramů v tomto balení (6)))

• 10: Internet + Drawing Promotion (vysvětlení viz 9)

22

Back-upGoals

19.3.2015

* Brands belonging to this category are not so well-established, they have less loyalConsumers, it could be easier to get the required MS.

23

Back-upTA – Sizing - Price

19.3.2015

• TA - reasons why?– Mainly women buy detergents– Detergents of a lower quality are mainly bought by people

with lower incomes– Younger people have lower incomes

• Why to offer the size of 2 kg?– Goes round 1 month on average– People buy this size just for trial first– Complete competition for Momo (also in all sizes)

• Price - reasons why?– In the sizes of 4 kg and 6 kg consumers from a low- and mid-

tier category buy approximately 65% of the total volume -> suitable to try to gain MS with a lower price

24

Back-upMedia

19.3.2015

• TV Performance– Jan 05 + Jun 05 + Sep 05: Production of a new TV spot

(supposed that it will take 2 months)– Mar 05 + Apr 05: Product launch campaign– May 05: Competition for Momo, brand awareness– Jun 05: Lower price support– July 05: People on holiday, they usually do not watch TV in this period– Aug 05: Our campaign overtakes Momo´s campaign – consumers stock

up with our new detergent on the basis of our TV campaign and consequently they will not respond to Momo´s campaign

– Sep 05: Competition for Momo, brand awareness– Oct 05: Lower price support– Nov 05 + Dec 05: X-mas advertisement – the aim is to attract people

to come and buy our new detergent and they will get a special present

25

Back-upPromotion

19.3.2015

• NO SAMPLING (Mar -> Apr 05: trial strategy)• Ineffective• Useless for our detergent (it doesn´t try to be the best

on the market)• More advantageous to make consumers buy 2 kg size directly

because our new detergent will be sold for a really low price

• NO GIFT AT 1,5 l PACKAGE (Nov 05 + Dec 05: loyalty strategy)• The exceptional reward for consumers who are willing to buy

a bigger package• Our aim is to make consumers buy a bigger package

• NO RETRIAL STRATEGY• Left out because the period is too short• Basically the same process as a trail strategy• It´s just about naming

26

Back-upShelving I

19.3.2015

Old share New share

Momo 28 25

Citron 21 19

Maxx 17 17

Brisk 0 10

Others 34 29

Old share New share

Momo 30 26

Citron 25 22

Maxx 20 20

Brisk 0 10

Others 25 22

• Hypermarket

• Supermarket

27

Back-upShelving II

19.3.2015

Old share New share

Momo 38 32

Citron 17 16

Maxx 15 15

Brisk 0 12

Others 30 25

• Small food

• NO 1,5 l PACKAGE ON SHELVES• People usually don´t look for news in traditional shops• Esp. small village shops where older people usually do their shopping

but they probably won´t buy a liquid form• People from our TA who come home late could be interested but the

percentage of such convenience stores (only 15%) is so low that it wouldn´t be worth placing a liquid form there

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Back-upMerchandising I

19.3.2015

• Leaflets – timing:– Mar 05 + Apr 05: information about introductory price

reduction (4 rounds)• 2nd + 3rd week• 1st + 4th week

– June 05: information about lower price (1 round)

– Aug 05: information about bonus pack (2 rounds)• 2nd + 3rd week

– Oct 05: information about lower price (1 round)

– Nov 05 + Dec 05: information about drawing promotion (4 rounds)• 2nd + 3rd week• 2nd + 3rd week

29

Back-upMerchandising II

19.3.2015

• Pyramids – timing:– Mar 05: 2nd + 3rd week: pyramids reflected new product launch– Aug 05: 2nd + 3rd week: pyramids highlighting bonus pack– Nov 05 + Dec 05: 2nd + 3rd week: pyramids highlighting drawing

promotion (4 kg, 6 kg + gift)+ special Christmas poster to attract more people

• Racks, shelf flags – timing:– June + Oct 05: lower price highlighted– Apr 05 – 1st + 4th week: new product launch reminded

On display only for a period when the appropriate leaflet is valid!!!On display only for a period when the appropriate leaflet is valid!!!

• Ad 2) System of rewarding:– Points gained for successful sales, further evaluation with

respect to stock, mark and exposure:• Displays regularly refilled, no empty space on shelves• Displays (+shelves and detergents themselves) duly labeled• Displays placed in, for consumers, very well visible places

– Evaluation carefully carried out by sales reps– Points regularly recorded– Depending how many points an owner gets during a certain

period (3-5 years), he´ll be free to pick a gift from a catalogue• Holiday• Luxurious pen• Bicycle• …

30

Back-upTraditiona trade

19.3.2015

31

Back-upShop in shop

19.3.2015

• Detergents (6/7)– The biggest category– On the right side because most of people are right-handed, plus they

subconsciously respect “traffic rules” (driving on the right side)

• Stain removers (1/7)– The closest category to detergents– It mustn’t optically push out detergents

• Fabric softeners (3/7)– Suppose that when a consumer needs to buy a detergent, once he gets to

the end of the shelf with detergents, he realizes that he needs to buy a fabric softener as well, he doesn´t have to go back at the beginning of the aisle, he can just cross the aisle and gain its softener quickly

• House cleaning (4/7)– It fits in very well with the 3 previous categories– It belongs to cleaning stuff