_GROUP 7_

Procter & Gamble in Europe

A roll-out launch

I. COMPANY BACKGROUND

IV. BRANDING,MEDIA PLAN

V. POSITIONNING, TARGET GROUPS

VII. PRICING AND PACKAGING STRATEGY

VIII. CONCLUSION

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COMPANY BACKGROUND

• P&G wasfounded by William Procter and James Gamble in the USA in October 1837.

• An international supplier in consumer goods.

• A global leader in health, and beauty care products, detergents and food.

• Pioneer in introducing a formalized BRM.

• In 2005, P&G operated on the market of more than 160 countries, and market leader in consumer goods company.

BMS (BRAND MANAGEMENT SYSTEM)

• The legendary organisational characteristic of the company3 or 4 people in each BM team

• As the CEO , John Lafley says: « Our brand is our bond with consumers. When we succeed, we convert a trademark into a trust mark  »

• A marketing organisation based competing brand managed by dedicating groups of people

• Objective: planning, developing and directing their brand in its market

GOALS

P&G's goal is simple - "To create the most successful global brands in every category everywhere we compete. And we have the strength to do it"

PURPOSE, VALUES & PRINCIPLES

Our core values and principles guide us in everything we do. Learn more about what drives our purpose of providing products and services of superior quality and value to the world's consumers.

OPERATIONS• As of 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 & Grooming

+ Beauty segment

+ Grooming segment

• Household Care

+ Baby Care and Family Care segment

+ Fabric Care and Home Care segment

• Health and Well-Being

+ Health Care segment

+ Snacks and Pet Care segment

GLOBAL BUSINESS

• The P&G community consists of nearly 98,000 people working in almost 80 countries worldwide. What began as a small, family-operated soap and Candle Company now provides products and services of superior quality and value to consumers in 140 countries.

STRONG BRANDS

Our company has one of the largest and strongest portfolios of trusted brands, including Pampers, Tide, Ariel, Always, Pantene, Bounty, Folgers, Pringles, Charmin, Downy, Iams, Crest, Actonel and Olay.

23 of P&G's brands have more than a billion dollars in net annual sales, and another 18 have sales between $500 million and $1 billion.

MANAGEMENT AND STAFFCurrent members of the board of directors of Procter & Gamble are:

Norman Augustine, Bruce Byrnes, Scott D. Cook, Joseph Gorman, A.G. Lafley, Charles R. Lee, Lynn M. Martin, W. James McNerney, Jr., Johnathan Rodgers, John F. Smith, Jr., Ralph Snyderman, Richard Dearlove, Margaret Whitman, and Brian Bowns. Norman Augustine will be retiring from the Board following the Company's October 2007 meeting.

• In 2007, the P&G's Canadian division was named one of Canada's Top 100 Employers, as published in Maclean's magazine, the only consumer products company to receive this honor.

• In October 2008, P&G was named one of "Canada's Top 100 Employers" by Mediacorp Canada Inc., and was featured in Maclean's newsmagazine. Later that month, P&G was also named one of Greater Toronto's Top Employers, which was announced by the Toronto Star newspaper.

BUILDING P&G BRAND

Companies must work hard to build brands.

The sign of a great brand is how much loyalty or preference it commands.

A brand saves people time. The user knows by the brand name the product quality and features to expect and the services that will be rendered

MEDIA PLAN

Advertising is the best tool to give information about your product but the media plans for the different years show a higher media spending on sampling and TV advertising in the year of introduction to convince customers of the superiority of the new product and to explain its new technology.

Over the following two years, sampling will go down to 10% but should be raised again for the new marketing cycle when decline begins.

TV advertising should be used in the same way, at the beginning to introduce the product and to gain a significant market share in the first year. It should also be used to maintain the growth of market share in the second year but can be reduced in the third year when the product reaches its mature stage.

MEDIA PLAN FOR FIRST YEAR

• Strongly using TVC and Print Ad focus on the benefit of “2 in 1 formula” and the convenience to use the shampoo.

Give sampling and make activities at public places such as subway station, central park and a big hypermarket.

Using the testimonial of people who use “2 in 1 formula” shampoo on Special Ad (in woman magazine).

MEDIA PLAN FOR FOLLOWING YEARS Introduce the product to other European countries such as

France ,Scandinavian and Benelux with using the same activities as West Germany and Great Britain (TVC, Print Ad, Sampling)

Create a new TVC and Print Ad

Create a special activities for brand awareness

Promotional – Discount on product and give premium goods

POSITIONING• In every segment of the business P&G is leader or in the top 3 companies.

• P&G offer multiple products in different regional markets and one positioning formula simply cannot account for all of the factors that differentiate all of the competitors in those markets.

P&G competes in multiple markets and if those markets all have different competitors then you are going to need positioning matrices for each

market.

If the competition changes then the positioning aims must change too

TARGET GROUPS

• P&G target family-oriented consumers with traditional values.

• Part of P&G’s target market is middle to upper class consumers who desire quality products.

A decision by Wal-Mart not to sell a particular P&G consumer product would prevent P&G from reaching its entire target market. In addition, many retailers have pushed their own higher margin private label brands in competition with P&G

PRICING & PACKAGING STRATAGIES1. Pricing

- Providing the premium-priced Strategy which is related with the

quality product concept.

- Trade Allowance : Providing the discount to grocery by manufacturers ,

allowing grocers to sell basic items such as toilet paper, soap, shampoo

and detergent at reduced prices for a specific time period

2. Packaging– Still using the existing bottle for 200 ml. wouldn’t take lead time

– New packaging would attract the emotional perception

http://www.zibs.com/neslin.shtmlZIBSForum: Scott Neslin on Procter & Gamble's Value Pricing Strategyby Jenn Bollen and Greg Thomas

CONCLUSION

P&G have strong side of Brand name which can

reinforce the consumer’s trustworthy.

R&D now become the important role in current

competitive market.

Brand name should be easy to remember, not conflict

with certain culture

In term of IMC planning, 1st part is to create brand

Awareness by advertising, 2nd, create activity and make

consumer remember our brand and lastly, finish the

story by stimulating customer to buy the product.