P & G CASE STUDY
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Transcript of P & G CASE STUDY
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