A roll-out launch

Victor Marbun (victor) M987Z259

Li Merlina (Merlin) M987Z246

Thidarat Prasitpornphakdee

(Nok) M987Z245

Huynh Than Phong (phong) M987Z242 Nguyen Thi Thanh Nhan

(Nhan)M987Z232

GROUP 2 MEMBERS

Content

• Introduction• Brand strategy for Europe• Marketing objective (first-yr and long-term)• SWOT analysis• BC-18 position statement• Questions• Conclusion

• Procter & Gamble Co is a Fortune 500, American multinational corporation headquartered in Downtown Cincinnati, Ohio, that manufactures a wide range of consumer goods.

• As of 2008, P&G is the 8th largest corporation in the world by market capitalization and 14th largest US company by profit.

• P&G is credited with many business innovations including brand management and the soap opera.

• Effective July 1, 2007, the company's operations are categorized into three "Global Business Units" with each Global Business Unit divided into "Business Segments" according to the company's March 2009 earnings release.

Beauty Care-Beauty segment-Grooming segment

Household Care-Baby Care and Family

Care segment-Fabric Care and Home

Care segmentHealth and Well-Being

-Health Care segment-Snacks, Coffee, and

Pet Care segment

• P&G's presence in the hair care market in the U.S has been strengthened by innovative technology BC-18 and the replacement of an old brand 'Pert' with 'Pert Plus'- a mild shampoo with a fully effective conditioner.

• P&G decided to introduce BC-18 in Europe. Traditionally, the 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).

1. Brand name: • The European market is heterogeneous, multicultural and

multilingual; the brand name should have to no connotations in a particular language's history or religion. The name should be easily pronounceable in each culture.

• The company is able to use the brand name of "Vidal Sassoon", similar to"Pert Plus", the European name could be "Vidal Sassoon Plus",

– already well-known brand name in the United Kingdom, West Germany and Scandinavia

– fits to the criteria mentioned above. – It is in the upper market segment with image of a high quality

product.

2. Positioning:Vidal Sassoon Plus combines a mild shampoo with a fully

effective conditioner for a attrative hair in a convenient way

3. Pricing: Vidal Sassoon Plus will be priced within the premium-priced segment with 4.99 DM for the 200 ml bottle and for 5.99 DM for the 250 ml bottle

4. Packaging– Using the existing US bottle (200 ml) in the 1st year

would not take lead time– Using the new bigger bottle (250 ml) in the 2nd year,

because it save time and money for the company– New package will give a new image and benefit to

customers

5. Roll-out launch• Target 2 European countries: West Germany

and Great Britain• It is advisable to firstly introduce new product in

these 2 countries, because of their big markets and people awareness about

conditioner•Because of the limitation in capacity in 1st year, P&G cannot focus on so many countries

6. Media Plan• In the introduction phase (1st year), we make

intensive TV ad and giving sample of the product• Newspaper ad• Two part in TV ad introduction

– Underline the easy way to use and the perfect hair the people will have

– Explain about the way of the effects shampoo and conditioner have on your hair

7. Budget• In 1st year, planning to gain profit from Great Britain

and West Germany• In 2nd year, introducing the product to other European

countries, expecting to gain losses in 1 year period of introduction

• In 3rd year planning to gain profit from all European countries, expecting there will be a break even point because the high profit in big market countries

• Specific long term• Short term objective (establish a market share

that will expand and gain brand recognition)• Use for 1 year• Use to evaluate long term• Evaluate: after 1 year

The Long Term Marketing Objective

• Continued of the short term objective (establish a market share that will expand and gain brand recognition)

• Expand the market by doing penetration into new territories • Ensure the company have higher profit and strengthens the

position as the market leader

• Drive for 1st year• Use for a long period• Hard to set up• Evaluate: long time

Strengths• Global leader in health and beauty care products, detergents and

food.• P&G has a lot of experience in international operations.• The new acquisitions of companies that are leader in the market of

health and beauty care products in Europe.• They know more about their product that any one else.• They have a specific brand management team; this team assumes the

responsibilities for its brand. Weakness• Production cost• Production capacity for the demand on the first years.• Leads times for alternative pack sizes and designs.• Work capacity.• Different culture, wants and needs of customers

Opportunities• The growth of the shampoo and conditioner market.• The increase of hair washing.• The undeveloped conditioner market in Europe.• The experience and the leader positioning of the new companies

that P&G bought.• The Know-how of the success of Pert Plus in the US market. Threats• The number of suppliers and brands, the European market was

even more crowed as US.• The top and bottom price classes was even bigger than

the US.• Difference between prices for the same quality.• Many important competitors.

• BC-18 in the US market -P&G's presence in the hair care market in the U.S has been strengthened by innovative technology BC-18.-To introduce the BC-18 technology in the US market at the beginning of 1986 by replacing the old brand 'Pert' with 'Pert Plus.-Pert Plus was positioned as the shampoo that offered attractive hair in a convenient way.-Result of Pert Plus in the US market-In 1987: Volume: 4.0% Value share: 6.0% -In 1988: Volume: 4.5% Value share: 6.3%

• BC-18 Europe market-Steady market growth.-Share of shampoo users in Southern Europe who also use conditioner was below 44%.

1. What are the main issues to be considered in balancing a pan European introduction strategy with local market needs?

The most important things to be consideredIn balancing the pan European is how theP&G standardize its product to the localmarket. This is very important to control thequality of product and brand image,becauseP&G product is a global product and thepremium product. That is the productPositioning that differentiate P&G with itscompetitor. One way to implement theStandardization strategy is by make BC-18become the European name to the local

market.

To specify the first year marketingobjective and how this related tothe longer term marketing objectiveis when we make marketingstrategy as a long term marketingstrategy, we make the objective orspecific goal for the short time. Thespecific objective should consists ofsome part like positioning, targetgroup, source of business and alsopricing. The short time strategyshould represent the long termstrategy, support the long termmarketing objective.

2. How would you specify the first-year marketing objective? How does this relate to the long-term marketing objective?

3. Would you undertake a “roll-out” launch, and if so in what country order? What are the decision criteria for this order?

We would under take a “roll out”launch in France, because the marketshare as shown in exhibit 7 is stillpotential, the competitors not getmuch market share and somecompetitors not on offer in thiscountry. So it is still feasible to enterThe market. And it is still possible toget market share from the competitor.And we also have to look are thecompetition in the country is quitetight or not. If our competitor is tostrong, we have to think twice to enterthe market.

4. Taking the country with the highest priority, which principles would you use in order to budget media spending? Set out a rough media plan for the first twelve months, with proposals for promotion activities in the first year. How should media and promotion activities be budgeted for the following years?

Media plan following years:– Introduce the product to the

country that we want to enter with the same concept especially in European country such us France, Benelux, Scandinavian, using the same activity with Germany and great Britain, (Print Ad, sampling, TVC)

– Promotional, discount and product and give premium goods as the identity of the P&G.

– Create special activities for brand awareness.

5. Is there any loss to be expected in the first year? Does this require a modification of the order of local market entries?

Economics matter : – Cost structure of existing

of P&G shampoo brand in the case of BC-18 cost planning.

– Cost of producing for a new product + average transport cost –because easy to estimate (production in England, 200 ml or 250 ml bottle, work capacity of 50 %)

• P&G have strong side of the spectrum with its large portfolio of consumer product brand. The launch of BC-18 should be through adoption of more than one more name to reflect local market needs.

• Market researches play an important role in new product development.

• Brand affect price strategy of company especially in manufacturing package on consumer goods.

• In the first stage of the product, it is crucial to introduce the product through the media in order to make brand awareness, customer recognize and finally to boost the product sales.

Thank you