Question: What is Luvs role in P&G’s current product mix?Why this is useful: Knowing the role of the single brand helps to establish how it helps the company as a whole.Notes: None.
Question: What is the target demographic for the Luvs brand?Why this is useful: To be able to focus marketing efforts towards one group of consumers.Notes: These are based off of my own observations and research.
Question: What is the key benefit that Luvs offers?Why this is useful: To focus marketing efforts on specific features that help to differentiate the Luvs brand.Notes: Derived from my own observations of the brand.
Question: What is the reason that consumers will believe Luvs will perform as well as marketing messages claim?Why this is useful: Consumers need a real reason to believe (RTB) what they see and hear in advertisements. Without a credible RTB, consumers may disbelieve advertisements and purchase competing brands.Notes: Derived from my own observations of the brand. Image comes from the Luvs.com website (http://www.luvsdiapers.com/diaper-size-and-reviews, click on the magnifying glass next to a diaper size).
Question: What is the brand positioning statement?Why this is useful: The brand positioning statement is what will drive marketing efforts.Notes: Derived from my own observations of the brand.
Question: What is Luvs current product offering?Why this is useful: Knowing what products are offered in the U.S. helps in deciding what can be offered in the new market.Notes: This is what can be found on the Luvs website. Other Luvs products could not be found elsewhere in my search.
Question: What is Luvs current market share in the U.S.?Why this is useful: It is important to remember Luvs place among other major diaper brands before making any decisions.Notes: Data loosely based on a 2008 market research report.
Question: What is Luvs current revenue?Why this is useful: It is important to know how Luvs compares to and supports the overall growth of Procter & Gamble.Notes: I could not find data on Luvs revenue. I did find this quote from the 2010 Annual Report.
Question: What is Luvs’ current advertising?Why this is useful: Current and past advertising efforts can help drive future advertising by knowing what does and does not work.Notes: Some ads listed here may be out of date. Primary competitors use the same mediums.
Question: What is Luvs’ current distribution?Why this is useful: Knowing how distribution works in the US can help determine how it could be done in the new market.Notes: Because Pampers and other P&G products are currently offered in Canada, distribution logistics should be simpler.
Question: What data should be gathered to assist in the decision of entering the new market or not?Why this is useful: There are certain criteria that should be researched when planning the launch of a product in a new market, such as those listed in this slide. All necessary data, positive and negative, should be gathered to make informed decisions. If data does not support a particular marketing tactic, the tactic should be reconsidered.Notes: This is not meant to be an exhaustive list but it does highlight many of the major market entry questions relevant to the Luvs brand.
Question: What are the current retail sales levels for disposable diapers in Canada?Why this is useful: Knowing the direction of the sales trend helps to determine product viability in the new market.Notes: I was unable to find data to answer this question. However, I know that if I had the resources of a company like Procter & Gamble, I would likely be able to get this information through Nielsen or similar market research platforms. This is a topic that I wanted to have data for in this presentation so I chose to base the numbers off data for U.S. retail sales of disposable diapers. If this were a real presentation, I would have gotten the exact information I needed or reported that I could not find the information. That being said, years 2003-2007 are actual U.S. values taken from a report entitled "Caring for Baby: The U.S. Market for Diapers, Bottles, Wipes and More" (Packaged Facts, 3rd Edition, March 2008, p. 44). Because Canada has a smaller population than the U.S., I decreased the U.S. values by 30% and created a graph from the new data.
Question:What does the recent disposable diaper use in Canada look like?Why this is useful: Knowing the trend and percentage of disposable diaper use helps in making decisions regarding advertising/promotion and long-term product success of the product in this market.Notes: I was unable to find actual data. However, according to a market research report I read, the use of cloth diapers is on a slow but steady rise. For this reason, I built the graph to reflect that information by way of a gradual decline in disposable diaper usage. I could not find data to support the projected degree of decline in this slide.
Question: Is the birth rate increasing, decreasing, or remaining steady?Why this is useful: A steady or growing birth rate indicates a need for diapers. A declining birth rate might be an indication that the market cannot sustain another brand.Notes: Data obtained from the 2010 Canadian census. Depending on the forecasting method, the projected birth rate is either steadily increasing or declining. A linear forecasting method projects a slow and steady growth rate. However, when a polynomial trendline (order 2) is applied to the values and forecasted out 10 periods, it shows the growth rate climaxing in early 2010 and then declining gradually for a few years before declining rapidly in the years following. (This data is also graphed inside the embedded Excel spreadsheet to this chart.) Population growth rates in the US and many other first-world countries (including Canada) are declining. Natural growth (that which comes from native births) is being supplemented more and more by immigration. Immigrants do not have as great a need for diapers unless their children were born in the new country. For this reason, immigration data was ignored for this slide.
Question: Is the average family income increasing, decreasing, or remaining constant?Why this is useful: If the average family income level was decreasing, that might signify a shift toward a lower-priced diaper. However, if it was increasing, that might create more incentive for value-brand consumers to shift their preference to a higher quality diaper, thus making Luvs more desirable.Notes: Data gathered from the 2010 Canadian census.
Question: (a would-be survey question) Given the choice between brand name products and comparable private label products, how likely are you to choose the brand name product over the private label at a reasonable price?Why this is useful: This question assesses the likelihood that people would buy Luvs because of its brand name status and quality versus comparably priced private label brands.Notes: I could not find data to support the information in this slide.
Question: Which Canadian tastes and cultural aspects are important to consider before entering the market?Why this is useful: It is important to know about tastes cultural differences that could affect the consumer attitude toward a product, especially one from another country. This information can also help drive marketing ideas.Notes: I could not find data to answer these questions.
Question: Which criteria for market entry were met according to the market research?Why this is useful: If a majority of the criteria were met, this could justify market entry. However, if a majority are not met, market entry should be seriously reconsidered or avoided completely.Notes: In my opinion, the data, taken as a whole, does not justify entering the Canadian diaper market with the Luvs brand. I believe this is why P&G does not sell Luvs in Canada already.
Question: How are all the major diaper brands categorized?Why this is useful: It is important to know in which categories are the different brands competing.Notes: This list of products comes from the U.S. and is meant to represent Canadian offerings. This is not a comprehensive list.
Question: How do all the major disposable diaper brands compare to one another along the axes of average price per diaper and leakage protection (two of the most important factors affecting consumer purchase)?Why this is useful: A positioning map can help determine holes in the consumer’s perception of current market offerings. These holes can help in the positioning of a new product.Notes: This map was created using the following criteria:Avg. price per diaper based on advertised prices from the following websites: Diapers.com, Walmart.com, Target.com, Walgreens.com- Compared packs of size 2 diapers onlyLeakage protection determined through personal observation and assumptions10 point scale (10 = perfect protection, 0 = no protection)3) These are brands sold in the U.S.
Question: Of the brands that will be represented in this presentation, where do they fit on the positioning map?Why this is useful: It is necessary to have a clear picture where each of these brands fit without the distraction of other brands that are primarily sold online and on small, regional scales.Notes: None.
Question: Which brands are the most significant in major stores around the country?Why this is useful: Focusing on the in-store brands helps to focus marketing efforts.Notes: Earth’s Best is meant to be a representation of the one or two other brand(s) that are sold alongside the top market leaders but maintain a much smaller presence on the shelves. Earth’s Best was chosen arbitrarily.
Question: What are the competitors’ margins on their products?Why this is useful: Knowing competitor margins can help determine pricing, promotion, etc. as well as get a glimpse into competitor spending abilities.Notes: This data is artificial. This is data that I would like to have found but couldn’t. I still wanted to show this type of table so I artificially created the data based on my own opinions. This table is also an abbreviated version of a table that would contain much more detail and information including each brand’s products and diaper sizes.
Question: Which advertising mediums are being used by competing brands?Why this is useful: It helps to know where consumers come in contact with competitor advertising.Notes: This information is based on my own observation and research.
Question: What are the brand positions of the other major competitors?Why this is useful: This could help in positioning Luvs to take advantage of a possible market need that is not already being filled.Notes: Table would be much larger to include all the different products within each brand group. This information is based on my own observations.======================Supreme Diapers by Babies R UsDiapers by Kroger
Question: What is the current market share of the other major diaper brands?Why this is useful: Knowing the current market share of major diaper brands can help to know which brands pose the greatest threats and command the most market attention.Notes: I could not find actual numbers to create this graph but wanted this slide to have data in it. I know that if I worked for P&G, I would have access to this data and could therefore create a real pie graph.
Question: What are possible barriers to entry that should be considered?Why this is useful: Knowing the barriers to entry beforehand can help the marketing team make more informed decisions and brainstorm ideas to overcome them.Notes: This is not an exhaustive list but it does highlight a few significant barriers.
Question: Where should Luvs be introduced first?Why this is useful: If resources were limited, a new product launch might be more successful if the reach were controlled. If the goal is ultimately to penetrate most of, if not all of Canada, then launching in phases could prove beneficial.Notes:These areas of Canada were chosen using two criteria:Population sizeRelative geographic proximity for ease of distribution
Question: Where should Luvs be introduced second?Why this is useful: Once the product has been introduced in the largest population centers in Eastern Canada and momentum picks up, the product would be launched in the remaining populations centers with more than 200,000 residents.Notes:These areas of Canada were chosen based on population size.
Question: Where should Luvs be introduced third?Why this is useful: Now that the product has momentum and advertising messages are being disseminated more broadly, the brand can be introduced into the remaining areas of the country with populations in excess of 30,000.Notes:Populations under 30,000 people are:Harder to reach at this pointMay not be able to carry enough buying power to cover the extra distribution costs
Question: What product line-up should be used when entering the Canadianmarket?Why this is useful: It is necessary to know which products and sizes would be most successful in introducing the Luvs brand.Notes: I reasoned that all diaper sizes should be included as well as both small and large packs. More package counts could be offered later.
Question: What is the current pricing mix of the competing brands at various retail chains?Why this is useful: It is necessary to know how competitors are pricing their products. Knowing the pricing mix can help in setting the price of the product and positioning it correctly according to the brand’s position in the mind of the consumers.Notes: For reason of simplicity, prices are for packs of approx. 42 count, size 2. The suggested prices for Luvs are 77.8% of the price of Pampers at each retail chain. If I had more access to data such as manufacturing costs, competitor costs, regional socioeconomic levels, and retail chain demographics, I would be able to develop more competitive pricing for each chain. I gathered this pricing information from 5 major chains near me that sold diapers. This pricing is given in American dollars. I would like to have put it in Canadian dollars but I didn’t feel that multiplying these values by the current exchange rate would accurately reflect the actual price of diapers in Canada. Furthermore, in a real report, I would have gathered all the pricing for:Each diaper sizeEach package countAt all the major Canadian retail chainsAt more locations of each retail chain
Question: What is one really good promotional idea that can be explained further?Why this is useful: Although there are many promotional ideas that would be good, it helps when they can be thought out further in an effort to see all the possible advantages and disadvantages.Notes: Although not mentioned on the slide, one of the disadvantages of this promotional campaign is the possibility that the expense for such an endeavor could outweigh the benefit of it. The upfront cost would be quite high unless other partnerships were involved to reduce the cost of the kit (partnerships such as one with a publishing company for the book, national retailers to provide other coupons, etc.). This idea is currently being done in at least one hospital in the US, the University Hospital at the University of Utah. The kit comes with a small pack of diapers from Huggies, coupons, wipes, etc. It is given by the hospital to the mother soon after she delivers her baby.
Question: What other promotional ideas can be considered for the product launch?Why this is useful:Having promotional options allows managers to make better decisions when deciding what promotional tactic to utilize.Notes: None.
Question: Which distribution channels should be utilized for the Luvs brand?Why this is useful: For certain products such as high-end products, distribution can either sustain or diminish the perceived quality of the product. However, when a product is meant to be purchased anywhere and everywhere, especially in moments of great need, distribution should be widespread. Implementing the correct distribution strategy is essential for the viability of a product.Notes: With the successful performance of the Pampers brand in Canada, P&G would be able to reduce costs through shared use of resources when distributing Luvs products. This will also facilitate an easier transition into the Canadian diaper market.
Question: What creative direction should be given to the ad agency and which agency should be chosen?Why this is useful: Working with creative talent such as Saatchi & Saatchi greatly improves the quality of the message and its deliverance to the audience. However, a brand manager must be assured that the correct message is being delivered to the consumer. For this reason, it is essential to give creative direction to ad agencies. This also helps them craft appropriate ideas.Notes: I know that Saatchi & Saatchi has been the ad agency for Pampers and that they are one of the premier ad agencies in the world. They also have the full resources of PublicisGroupe which may be beneficial when advertising to Canadians.
Question: What is the proposed marketing spend and allocation?Why this is useful: The total expected marketing cost and allocation is necessary to know in order to make informed decisions regarding market entry.Notes: These values are based on my own opinions. I am aware that P&G does not pay market prices for advertising and other expenses. I could not find relevant data for actual marketing costs so I chose to leave that out of this slide.
Question: What is the expected long-term growth of Luvs in Canada?Why this is useful: To help determine whether or not the financial gain is worth the cost of implementing the launch and using company resources.Notes: If I had access to better data, I would be able to develop a more accurate growth model in Excel. These fictional values, however, are based on the following assumptions:First year would experience slower growthGrowth would pick up quickly in the following years as people become more familiar with the brand name and are exposed to more advertising and promotional campaignsAs the product matures, growth rate will decline but continued advertising/marketing efforts would help the brand maintain a near-double-digit growth rate
Entering a New Market - Example PowerPoint presentation
“Just One More”<br />Aaron Fisher<br />MBA, David Eccles School of Business<br />firstname.lastname@example.org<br />
Purpose<br />INTRODUCTION<br />To show thought process.<br />Each slide<br />answers a question.<br />The question and an explanation as to<br />why it is useful are presented in the<br />slide notes.<br />“A successful marketer is someone who can socratically reason through a challenge and find a solution through creativity and teamwork.”<br />
disclaimer<br />INTRODUCTION<br />This presentation is not meant to be a recommendation for the Luvs® brand.<br />This presentation is not meant to show anything more than my thought process.<br />On slides where data has been significantly altered or fabricated, two red triangles appear at the bottom of the slide such as those below.<br />This author would NEVER include altered or fabricated information in a real report.<br />See<br />Notes<br />Artificial<br />Values<br />
Company strategy and Goal<br />INTRODUCTION<br />STRATEGY: GOAL:<br />- More Consumers - Just One More<br />- In More Parts of the World<br />- More Completely<br />
Objective: “Just One More”<br />INTRODUCTION<br />To assess the landscape for and viability of a successful launch of the Luvs® brand into the Canadian market.<br />“Just One More”<br />The Luvs® Direction:<br />Just One More Country<br />By launching into Canada, the Luvs® brand will <br />be able to support the company’s strategy and goal.<br />
Target demographic<br />THE LUVS® BRAND<br />Moms age 18-45<br />Household Income under $45K<br />Education: High School+<br />
Key Benefit<br />THE LUVS® BRAND<br />Leak<br />Luvs® Ultra Leakguards help lock away wetness and stop leaks, day and night.<br />
Reason to Believe<br />THE LUVS® BRAND<br />Luvs® Ultra Leakguards have an ultra-absorbent core, stretch sides, and leak barrier leg gathers.<br />
Brand Positioning Statement<br />THE LUVS® BRAND<br />From newborn babies to toddlers, Luvs® Ultra Leakguards help lock away wetness and stop leaks, day and night. That’s because Luvs® Ultra Leakguards have an ultra absorbent core, stretch sides, and leak barrier leg gathers.<br />
household income<br />THE CANADIAN MARKET<br />PROJECTION<br />Average annual income change = 2.39%<br />
Preference for brand nameover private label<br />THE CANADIAN MARKET<br />Brand Name<br />Private Label<br />See<br />Notes<br />Artificial<br />Values<br />
Canada: The People<br />Cultural Values<br />What cultural values do they hold that would be relevant in making brand decisions?<br />What religious influences are there?<br />Entertainment<br />What do they do for fun?<br />What forms of entertainment do they like?<br />Which televisions shows do they watch?<br />What type of movies do they like to see?<br />Which celebrities or personalities do they like/relate to the most?<br />Household<br />What is their household size?<br />What is their source of income?<br />What is their education level?<br />Where do they live (urban, suburban, rural)?<br />What types of homes do they live in?<br />Buying Habits<br />Where do they shop?<br />What do they buy?<br />How do they pay for it?<br />How much do they spend at a time?<br />THE CANADIAN MARKET<br />
Criteria for Market Entry<br />THE CANADIAN MARKET<br />See<br />Notes<br />Artificial<br />Values<br />
Barriers to entry<br />Possible barriers to entry could include:<br />Strong loyalty to other brands will make it difficult for people to try the new diaper<br />Insufficient demand from the target market<br />Insufficient marketing/advertising funds may make it difficult to penetrate the market as far and as deeply as desired<br />COMPETITIVE LANDSCAPE<br />
The Objective Revisited<br />THE RECOMMENDATION<br />To assess the landscape for and viability of a successful launch of the Luvs® brand into the Canadian market.<br />“Just One More”<br />The Luvs® Direction:<br />Just One More Country<br />By launching into Canada, the Luvs® brand will <br />be able to support the company’s strategy and goal.<br />
Launch or not?<br />THE RECOMMENDATION<br />No. Do not launch at this time.<br />The cost to successfully penetrate the Canadian market is too high to provide a reasonable return on investment.<br />My recommendation is to wait for conditions to become more favorable.<br />However, had conditions been different… (next slide)<br />
Brand Launch<br />(If conditions had been more favorable to a successful launch, here are a few of the ideas I had.)<br />
Launch: Phase 1<br />THE LAUNCH<br />Population Map of Canada<br />Quebec, Hamilton, London, Kitchener, Windsor, St. Catherines-Niagara, Oshawa<br />11%<br />Target Metropolitan Areas<br />Data obtained from the 2006 Canadian Census and Encyclopedia Britannica (ed. 2002)<br />
Launch: Phase 2<br />THE LAUNCH<br />Population Map of Canada<br />Target Metropolitan Areas<br />Data obtained from the 2006 Canadian Census and Encyclopedia Britannica (ed. 2002)<br />
Launch: Phase 3<br />THE LAUNCH<br />Population Map of Canada<br />Target Metropolitan Areas<br />Data obtained from the 2006 Canadian Census and Encyclopedia Britannica (ed. 2002)<br />
Hospital Partnership<br />THE LAUNCH<br />Partner with Hospital networks<br />Distribute newborn baby kits free to moms<br />Kit includes things such as a starter pack of newborn diapers, wipes, board book, coupons, etc.<br />Include offer for one free pack of diapers after they register on the new Luvs® Canada website<br />Extend further promotional offers via email at pre-determined intervals matching the baby’s development.<br />
Other Promotional IDEAS<br />Find an event to sponsor that takes place nationally that corresponds with the brand.<br />Provide educational and training programs for mothers.<br />Partnerships with local/regional maternity organizations.<br />THE LAUNCH<br />
Creative direction<br />THE LAUNCH<br />Use the brand position as the guiding force behind all advertisements.<br />Furthermore, create commercials and ads that evoke an emotional attachment to the brand<br />Talent and Resources of:<br />
Positioning Statement Revisited<br />THE LAUNCH<br />From newborn babies to toddlers, Luvs® Ultra Leakguards help lock away wetness and stop leaks, day and night. That’s because Luvs® Ultra Leakguards have an ultra absorbent core, stretch sides, and leak barrier leg gathers.<br />