Caso P&G
Caso P&G
Año: 2013
What principles guide promotion planning at P&G for the light duty liquid detergent category (LDL)?
Before analyzing H80, it is important to study the broader picture. First of all, America’s Light-Duty Liquid Detergent (LDL) is a very mature and steady market. The market’s annual growth is forecasted at a very low 1%. The market has already grown, it is highly competitive and product offers are saturated. This means there’s a low maneuvering angle for an out-of-the-box brand. The product is a necessity due the natural need for detergent for daily dish washing, except for those who use automatic dish washers. The purchasing cycle is quite low between three and four weeks: the customer has a frequent need to replenish this product at least once per month. The case doesn’t specify much about customer loyalty, but it is very common to stick to one brand and keep repurchasing it. There is also no comment on price oriented customers and product switching, which pose a threat on product continuity.
P&G is the dominant brand and boasts a very solid 42% market share and has stronger competitive advantages. Another difference with its competitors is that P&G invests mor resources in advertising and less in promotions than its competitors. While P&G sells 50% of its products with some kind of deal, competition has 75%. Although P&G has the biggest share in the market, it manages three different brands in LDL trade. Each brand has satisfies a specific customer need, hence having a deeper reach. Ivory
Dawn
Joy
Market Share (%)
15,5
14,1
12,1
Market Position
1 (leader)
2
3
Customer Need
Regular detergent. Market Leader
Performance (superior grease-cutting)
Shiny dishes and fewer specs after dish washing
Promotion strategy
Build loyalty (continuity) and trial among younger population
Trial and coupons
Has the lowest trial budget, but it will suffer a moderate increase
What factors should Garner consider when
Año: 2013
What principles guide promotion planning at P&G for the light duty liquid detergent category (LDL)?
Before analyzing H80, it is important to study the broader picture. First of all, America’s Light-Duty Liquid Detergent (LDL) is a very mature and steady market. The market’s annual growth is forecasted at a very low 1%. The market has already grown, it is highly competitive and product offers are saturated. This means there’s a low maneuvering angle for an out-of-the-box brand. The product is a necessity due the natural need for detergent for daily dish washing, except for those who use automatic dish washers. The purchasing cycle is quite low between three and four weeks: the customer has a frequent need to replenish this product at least once per month. The case doesn’t specify much about customer loyalty, but it is very common to stick to one brand and keep repurchasing it. There is also no comment on price oriented customers and product switching, which pose a threat on product continuity.
P&G is the dominant brand and boasts a very solid 42% market share and has stronger competitive advantages. Another difference with its competitors is that P&G invests mor resources in advertising and less in promotions than its competitors. While P&G sells 50% of its products with some kind of deal, competition has 75%. Although P&G has the biggest share in the market, it manages three different brands in LDL trade. Each brand has satisfies a specific customer need, hence having a deeper reach. Ivory
Dawn
Joy
Market Share (%)
15,5
14,1
12,1
Market Position
1 (leader)
2
3
Customer Need
Regular detergent. Market Leader
Performance (superior grease-cutting)
Shiny dishes and fewer specs after dish washing
Promotion strategy
Build loyalty (continuity) and trial among younger population
Trial and coupons
Has the lowest trial budget, but it will suffer a moderate increase
What factors should Garner consider when