Proctor & Gamble Case Assignment on Launching of New Brand
Proctor & Gamble Case Assignment on launching of new brand Answer: If P&G were to go ahead with the launch of a new brand then it has to focus on Performance Segment over the mildness segment and price segments.
P&G has about 42% share in LDL market, while his competitors Colgate-Palmolive and Lever Brothers has market share of 23. 6 and 6. 9% respectively. In total LDL market about 72% share by these three companies while only 28% share by small brands and private labels.As we see from Exhibit-1 & 7 the estimated projection of Performance segment for next 5 years is going to increase from 35% to 37% while mildness segment is going to decrease from 37% to 35%.
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The price segment is more or less in declining phase and going to stabilize near 29% in next 5 years. Also as per the exhibit -3 & 7 the performance segment brand Dawn of P&G is showing expected growth in the market share. As attribute importance rating in the exhibit-3 , most of the consumers have indicated that performance attributes in the LDL product have more importance than other attributes like mildness to hand and price.Also as per market research by PS&D, the most of the consumers are giving more importance to performance attribute of the brands rather than price & other features. Exhibit -9 results shows that 4 weeks blind in-house use test of H-80 new brand , performance attribute rating was highest. The projected growth rate in nest 5 years is highest in performance segment (exhibit-1 & 7 ) and this segment is going to capture it’s volume from non-P brands and price/generic/private labels.
Hence P should target Performance Segment to introduce new brand.