Procter And Gamble Intoduction Of New A Shampoo On The European Market

2421 words - 10 pages

Procter and Gamble in EuropeIntroductionProcter and Gamble (henceforth to be called P&G) is an international supplier of consumer goods it is a "global leader in health and beauty care products, detergents, diapers and food" . 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, Unileaver, and L'Oreal. The European market is segmented (i.e. value based) and sensitive to price changes (i.e. elastic demand).The introduction of the new product BC-18 brings with it a new marketing strategy for the company. In order to make a valued choice the 4P's of marketing have to be considered. At present, the company must pose and assess several questions:·What name to use for the new product.·Bottle size to be used.·To market the brand as Pan European or regional.·How to price the product.·Where to produce and production capacity.·Promotion.Marketing MixProductBC-18 technology would offer the European consumers 'Great looking hair in a convenient way'. Currently P&G are practicing a strategy called "Euro-Balancing" , it entails the concept of standardising to the maximum and implementing localisation only where necessary. By introducing a single brand name for its potential market, P&G does not have to create new marketing campaigns for targeted countries. The European market is heterogeneous, multicultural and multilingual; therefore, the name chosen for the shampoo should have to no connotations in a particular language's history or religion. Moreover, the name should be easily pronounceable in each culture.The company is able to use the brand name of "Vidal Sassoon", which is an already well-known brand name in the United Kingdom, West Germany and Scandinavia and fits to the criteria mentioned above. It is in the upper market segment and has the established image of a high quality product; it would compliment the new BC-18 product. In instead of "Pert Plus", the European name could be "Vidal Sassoon Plus", the logo could look like the image bellow.P&G is able to start selling its product right away if it uses the U.S. bottle size of 200ml. This is a good opportunity for the company as it will be able to see how the market is reacting to the new product and whether sales are reaching expectations. Design a construction of a new 250ml bottle should nevertheless start right away and it should be introduced as soon as possible to be able to reap in the benefits of economies of scale.This is constructive as once the new bigger bottles (250ml) are designed P&G can run a promotion campaign for Great Britain and West Germany indicating that consumers can now get 50ml or 25% more. This method not only has the...

Find Another Essay On Procter and Gamble- Intoduction of new a shampoo on the European market

Procter and Gamble Essay

1280 words - 5 pages institutionalized as management principles and policies. Procter and Gamble accomplishes its basic policy of providing superior value and meeting basic consumer needs could be accomplished by strong commitment in research to create better products than competitors' and provide continual product development, extensive product and market testing, and close tracking of consumer needs and preferences.While P&G started to expand to Europe, the

An analysis of Procter & Gamble equity, cash flow, and notes

1982 words - 8 pages would need to preserve cash capital.There are numerous notes to financial statements that could help management and investor make good business decisions. The Procter & Gamble Company's business is focused on providing consumer branded products of superior quality and value. An important note would be in regards to their restructuring program, which started a few years back and was completed at the beginning of 2004 fiscal year. This

Company Selection Paper: The Procter & Gamble Company

1263 words - 5 pages "The Procter & Gamble Company (P&G) is a brand behemoth. The world's #1 maker of household products courts market share and billion-dollar brands. P&G's products fall into three categories: global beauty care; global health, baby, and family care; and global household care. It also makes pet food and water filters and produces soap operas (As the World Turns). More than 20 of P&G's brands are billion-dollar sellers (including

The chemistry of shampoo

1583 words - 6 pages perform all the necessary reactions that the surfactants cannot provide. The following are different additives that are usually found on shampoo labels. They include their names and what they do.AQUA- while this sounds important, this is just a way for the companies to formally write water. Water just helps the shampoo obtain liquid form and nothing more.SODIUM LAURETH SULFATE- This is a soap like chemical made from chemicals extracted from a type of

The Role of Music in Branding and Familiarity of Shampoo Products

768 words - 4 pages to give the verbal message brought widespread success and familiarity of their brands. But the question is, did music really play a role in the success of these shampoo products? Music as everyone might already have experienced, is very moving, it stays on one’s mind even if it is bad music or extremely good music, it lingers. Music has that type of power, this is why marketers and promoters use music in such ways. It is the most effective tool

The Cold War: A Gamble of the Ages

1241 words - 5 pages Union of Soviet Socialists (U.S.S.R) wanted to invade Turkey. They were demanding to be allowed to establish naval and army bases. The gamble was taking form. On March 5, 1962 in the small town of Fulton, Missouri, “Winston Churchill gave his now famous "Iron Curtain" speech to a crowd of 40,000.” (qtd. in Rosenberg). According to the web article by Jennifer Rosenberg (Rosenberg), before Churchill had given his speech the U.S. and

The crucible - theme on social harmony and representation of community John Procter - Brisbane Gramma school - Analytical essay

609 words - 3 pages Use of power, authority and status Personal motivations of individuals in the community Sources and consequences of social harmony Representation of community and social context Introduction: The Crucible by Arthur Miller depicts a conflict between individualism and community, with a single conscience pitted against the weight of social authority that has been corrupted by selfishness and hypocrisy. The play features the Salem witch trials

This essay discusses some of the aspects as to whether or not it would be wise for Proctor and Gamble to enter the Asian market

1411 words - 6 pages company.When entering into the Asian market, there are many important factors that Procter and Gamble had to take into consideration. I will discuss a few of the factors that, in my opinion, were major factors in the decision to enter this market. These factors are the monetary policy, the economic environment, and cultural issues. First of all, I will focus on the monetary policy in China. The People's Bank of China is the key monetary policy

The Single European Market

2289 words - 9 pages barriers, as well as the liberalization of internal competition through strict competition policies possible. In other words, the Single Market serves as a base for the freedom of goods, services, people, establishment and capital.2. The Five European Freedoms of Movement2.1 Free Movement of GoodsThe Treaty on European Union deals with five different types of freedom in the EU.First of all, there is the free movement of goods. The term implies

The Influence of Religion on European Politics and Human Culture

1015 words - 4 pages Man has consistently feared two things throughout history: change and the unknown. During the 16th century the church became the direct and indirect authority on multiple levels affecting the everyday lives of all citizens. So in a strange way for all the good religion is responsible for such as stability, cohesiveness, harmony, uniformity and overall guidance; the same could be said concerning all of the misery created. It is fair to

History and Overview of Proctor and Gamble

3098 words - 12 pages innovative work is one of the fundamental elements for expansion development of the organization. The new marketing procedure for the organization has focused on the developing markets. This shows an enormous potential and demographic movement in these businesses, including urbanization, and age structure, and gives a vital business sector to the organization. Proctor& Gamble have entered these businesses more effortlessly than their rivals

Similar Essays

Procter & Gamble And The China Market

1407 words - 6 pages The Chinese market today is one of the hottest emerging markets in the world. After many years of isolation, China has finally decided to open up to the world and let foreign investors in. Inspired by the new opportunities in China and the tremendous growth of China's economy during the last few years, investors from U.S. and other countries are rushing to take positions in the Chinese markets.China has become a mass market, and Procter &amp

Stock Market: Procter And Gamble And The Coca Cola Company

738 words - 3 pages products. When I checked the prices of the stocks five days after I first recorded the prices, I found that both prices have increased! I would've made money on both the KO and PG stocks. Some things that have been in the news for Procter & Gamble that could of sparked this rise in their stock prices is that the Procter & Gamble Company "starts a Patent War with Target","The Clorox Company Vs. The Procter and Gamble Company:Which is better?" These

Study Of Procter And Gamble Essay

2389 words - 10 pages then respect all individuals; consumers and their human resources, and offer them their trust, on condition that they treat them similarly. Furthermore, P & G's main target is to focus on work in order to be the best seller in this global market. Leadership, which is applied in the areas of responsibility and commitment, is a factor that enables Procter and Gamble to accomplish their target. In case of ownership, they let the employees behave

Business Inspection On Procter And Gamble

2103 words - 9 pages channels it is doing this. For example, in its sponsorship of the London Olympic Games 2012 it used the tag line “Proud Sponsor of Mums” which refers to the mothers of the athletes but is aimed at mothers all over the world. • Technological: Technological factors include new discoveries and technology developments, ICT innovations, rates of obsolescence and increased spending on research and development (R&D). P&G has a dedicated R&D department