Case Study About Procter and Gamble Company Essay

1236 Words Sep 22nd, 2013 5 Pages
Procter and Gamble Company Case Analysis
This case study analysis focused on Procter and Gamble Company’s marketing plans and strategic options on its light-duty liquid brands (LDL). Procter & Gamble is the world’s largest producer of household and hygiene products. By 1981 P&G operated in 26 countries and sales totaled $11.4 billion with 90 consumer and industrial products manufactured in the United States. The case study provided some very detailed data analysis and reports in terms of the company history and background, organizational structure, key factors to its success in the marketplace, the relationship among advertising, sales, product development (PDD), manufacturing, and finance departments, and its light-duty liquid
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Their interaction was crucial to new product development process. * Based on the volume and marketing expenditure forecasts provided by the brand groups, financial/cost analyst developed and fed back brand profit and pricing analyses as well as profit and rate of return forecasts on new products and promotion.
Using the information, Mr. Chris Wright, associate advertising manager of the Packaged Soap and Detergent Division (PS&D) of the Procter & Gamble Co., was trying to determine how the division could increase volume of its light-duty liquid detergents (LDLs), capture more shares from the market, and increase long-term or short-term profit.
The three options that Wright considered are new brand introduction, product improvement on an existing brand, and an increase in marketing expenditures on existing brands. Each option is analyzed as follows:
New Brand Introduction:
* P&G’s current LDL played a leading role in the market place. The success of its Dawn brand clearly indicated a likelihood of another new brand with a distinctive benefit could increase further P&G’s LDL Volume. * Wright saw new product potential in all three market segments (performance, mildness, and price brands) * For performance brand, market research indicated that 80% of U.S. households scour and scrub their dishes at least once a week. H-80 invented by new technology as a

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