P&G CASE STUDY

FEELING THE HEAT

Presented By:

Priyanka Chopra (09 PG 162)

Jishnu.S (09 PG 142)

P&G CASE STUDY

A company that improves hygiene, health and development

Four billion times a day, P&G brands touch the lives of people around the world.

HQ : -USA

P&G

P&G

A leading consumer goods company with $39 billion sales.

Marketing approximately 250 brands

In over 130 countries.

P&G Brands

Fabric & Home care

Ariel

Tide

Fairy

Dash

Bonux

Lenor

MR Clean

Food & Beverages

Nutristar

Sunny Delight

Pringles

Crisco

Jif

Olean

Folgers

Health care

Actonel

Didronel

Metamucil

Peptobismol

Vicks

Crest

Blend-a-mend

PUR

Baby care

Pampers

Dodot

Luvs

Feminine care

Always

Alldays

Tampax

Whisper

Beauty care

Olay

Safeguard

Pantene

Pert Plus

Max Factor

Cover Girl

Camay

Zest

Case Summary

Shareholders and stock-market analyst pressed P&G to produce new products.

Products like Dryel & Fit failed.

Crest Whitestrips reached $200 million Product Goal.

Growth Goal of P & G: 4-6% Annual Sales growth & Double digit earnings growth.

Case Summary

New-ventures unit

Examined $3.3 billion pain-relief market.

P&G : Well aware of pain relief market– Aleve Pain Reliever (Sold to Bayer)– Excellent Knowledge in Paper technology (Pampers,

Charmin, Bounty)

“External analgesic” – Long lasting warmth

7 years of Consumer & Scientific testing

Year 2002 - Thermacare heat wraps.

THERMACARE

Cure for:

Minor muscle and joint aches.

Overexertion

Strains

Sprains

Arthritis

Menstrual Cramping

Back pain

Features:

Portable

Air activated- Self heating

Disposable & Hygiene

Low- therapeutic heat

(400 C) for 8 hours.

Shape : Small pad/Diaper Lower & Upper Back Neck/Arm Abdomen

Biodegradable

MUSCLE AND JOINT RELIEFLower Back & Hip Heat WrapsNeck, Shoulder, & Wrist Heat WrapsARTHRITIS RELIEFArthritis Heat WrapsArthritis Hand & WristHeat WrapsArthritis Knee & Elbow Heat WrapsArthritis Neck & Shoulder Heat Wraps

MENSTRUAL RELIEFMenstrual Patches

Functioning of thermacare

Work when consumer Open the Package

Series of Oval shaped heat disc

Heat generating materials: Iron, carbon sodium chloride, sodium thiosulfate & water

Iron oxidizes, Chemical heat generation.

Paper technology to sustain and control heat-generating reaction.

Recommendations

By doctors:

Ice pack for 20 minutes, 3-4 times a day, for few days

Accompanied with Pain reliever drugs/Tabs

Eg: Aspirin

Heat therapy.

By P&G

Wear heat-wrap for 3 hours to 8 hours

Not with lotions and ointments.

Wrapping it upPlanned price $6.99, 25% profit margin to retailers.

Pack : 2 wraps in Back size or

3 Wraps in Neck, Arm / Abdomen Size

Integrated promotion campaign budget $90 million

Hired D’Arcy Masius Benton & Bowls

CHALLENGES

To prevent customers from taking another pill

Educate customers about thermacare and its operation and benefits.

Different from pain relief strategies

P&G

What are possible target audiences for Thermacare? In what buyer readiness stages will these target audiences be?

Question # 1

POTENTIAL BUYERS• Arthritis Patients• Women• Groups –Sports Teams• General public

CURRENT USERS• New Product• Established

Unaware

Create awareness

UnawarePromotions & reminder advertisements

DECIDERS & INFLUENCERSDoctorsPharmacist

Unaware / awareComprehensionConviction

What issues will the advertising agency face in designing messages for the selected target audiences?

What message “Theme” or “Headline” Summarizes the positioning that you would recommend for ThermaCare?

Question # 2

1. Consumer Value Proposition Positioning as better than alternatives available.

P&G is renowned for paper technology- Sustained & Controlled Heat Generation.

Focusing on target audience & convincing them about the Value of Product.

2. Calibrate consumer Knowledge Educate consumer with marketing message.

Eg : Ecofriendly Product Product is framed to meet consumer needs

Eg : Permits easy movement to users

3. Highlight the POD Product is capable of fulfilling the desirability of

target audienceRelevanceDistinctiveness &Believability

Example : Convenient use (3-8 Hrs / day)

Mobility.

4. Credibility of Consumer Benefit ClaimSpecificMeaningfulUnpretentiousQualified compared to alternatives

Eg : Eco certification – Educate consumer about the meaning of it.

5. Encourage consumer Evangelism via Consumers Social & Internet Communication Networks.

Theme : “ LIVE GREEN , KEEP MOVING ”

“WRAP YOURSELF IN RELIEF”

What recommendations would you make to P&G and D’Arcy to help them develop an integrated promotion Strategy for Thermacare?

Question # 3

1. Promotion Mix2. Message Source3. Feed Back Mechanism

Advertising Sales Promotion Events & Experience PR & Publicity Direct Marketing Interactive Marketing WOM Marketing Personal Selling

PROMOTION MIXPROMOTION MIX

Brand Endorser Testimonial Advertisement

Expertise Trustworthiness Likeability

Eg : Dr. Robert Jarvik for Cholesterol lowering Lipitor drug

MESSAGE SOURCEMESSAGE SOURCE

Qualities Candor Humor Naturalness

Online customer feed back system Toll free Phone numbers & IVRS Sales & Medical representatives Intermediaries Market Survey

FEED BACK SYSTEMFEED BACK SYSTEM

THANK YOU