Proctor & Gamble Mr. Clean Magic Eraser

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A strategic product analysis of the Mr. Clean Magic Eraser.

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Proctor & Gamble Mr. Clean Magic Eraser

  1. 1. Proctor & Gamble Mr. Clean Magic Eraser Mindy Siade 4/1/2009
  2. 2. I. Executive Summary Proctor & Gamble is the leader in Beauty, health/well-being, and household care products. By creating innovative products they are able to keep this lead over competition. They have gotten ahead of the competition by generating something groundbreaking and new to the market. Something that is one-of-a-kind; The Magic Eraser. By creating a product that can get out any scratch, scuff, or dirt mark off any hard surface has made that groundbreaking mark on the industry. By increasing their research and development department, they are able create or improve a more environmental friendly product. As well as a more durable product. Once they have developed these products better, they need to get them onto the market ahead of their competition. This company already has a great amount of brand loyalty. They need to find a way to get Unilever and Johnson & Johnson’s loyal customers, to cross over to Proctor & Gamble. This can be a hard job, which is why they created a new and totally different product, Magic Eraser. By creating this new product they have increased their profit share greatly. However they also need to reach untapped international markets, and get their ahead of the competition. They have to make sure they take the correct steps, as well as maintain quality and price.II. Situation Analysis A. The Internal Environment Proctor & Gambles marketing goals and objectives is to tailoring the marketing and communications to specific consumer needs. Its marketing objectives are current with the developing customer trends. It is also current with it the firms mission statement that is focused around the consumer. The mission statement of Proctor & Gamble Co. is to provide branded products and services of superior quality and value that improve the lives of the worlds consumers. Proctor & Gamble is focused in 3 major industries: Beauty, household care, health and well-being. Proctor & Gamble defines business not in terms of products/services or the customers’ needs, but rather the innovation to succeed their needs, to an extent that at the time of innovation it is more a want, due to the fact that the innovation of developing the product[s] in more ahead than the need. The want becomes the need. Siade, 2
  3. 3. Review of current marketing strategy and performance P&G current marketing strategy in respect to 4 Ps is focused around innovation. Withits Always product offers an education program that teaches young girls about goingthrough their puberty stages. P&G also offers a safe, discreet environment that allowsthem to interact with other peers facing similar life-stage issues through a website calledbeinggirl.com. The part of this strategy that is working well for them is the innovations tomake the lives easier and more adjustable for it consumers. P&G current performance compared to the rest of the industry is relatively high. Itsbrand awareness is still very high; with its ability to keep innovating they keep consumersconscience about the products. The net sales for 2008 increased 9% to $83.5 billion.Proctor & Gamble carries several products in three major product categories: Beauty,Health/Well-Being, Household care. Within these three categories there are six sub-categories consisting of beauty, grooming, health care, snacks/coffee/pet care,fabric/home care, and baby/family care. Most of the products that are carried by Proctor & Gamble are between the prices of$5.oo to $5o.oo. Most of the standard products such as household care range from $7.ooto $12.oo. Proctor & Gamble have several distribution centers worldwide which allowsthem to have a long well established distribution channel as well as strong relationshipswith its dealers. Proctor & Gamble has several various promotions going all year round,due to the line of products and categories it carries. Several promotions involve UNICEFand Pampers, and Tide and disaster victims. Along with brand awareness is extremelyhigh. P&Gs mission statement can translated into operational terms. The stated objectivesare as follows: 1) Organic sales growth of 4% to 6%. 2) Diluted net earnings per share(EPS) growth of 10% or better. 3) Free cash flow productivity of 90% or greater. Theseare clearly stated on page 41 of its 2008 Annual Report. These objectives are clearly leadto the understanding of its marketing objective which is as follows: 1) Grow our leadingbrands in our biggest markets and with our winning customers. 2) Shift our portfolio mixto faster-growing businesses with higher gross margins that are less asset-intensive. 3)Grow disproportionately in developing markets and with value conscious consumers. Siade, 3
  4. 4. The objectives that are put forth by P&G are however, from reading the AnnualReport is based on both profits and its customers alike. With what P&G wants toaccomplish in regards to its marketing objectives there is no one way to accomplish in acertain order. However, these objectives are specific enough so that its progress can bemeasured to reaching its targets. The objective that has been stated prior, want toaccomplished within one fiscal years time. P&G main objective is to maximize customer satisfaction rather than getting asmany customers as possible. With satisfaction being there major objective it can alsocoincide with getting more customers. Because its focus is based on satisfaction,customers are loyal and keep repeating their business. With that being said customers arelikely to spread the word about how good P&G products are, in return giving P&G morecustomers. This then also leads to the brand preference within their loyal to P&G they arealso demonstrating preference for the brand. Despite the US being in an economicrecession P&G is still improving its performance.Review of current and anticipated organizational resources The most utilized resource is its suppliers. Its relationships with them must becharacterized by honesty and fairness. Suppliers are selected on a competitive basis basedon total value, which includes quality, service, technology and price. Terms andconditions defining its relationship with suppliers are communicated early in the supplierselection process. The relationship that it keeps with its key suppliers is on a strict andprofessional basis. Its business with key suppliers in regards to receiving gifts,entertainment or other gratuities from whom it does business with is generally notacceptable, because doing so could imply an obligation on the part of the Company andpotentially pose a conflict of interest. This being one of P&G strong core values this isnot expected to anytime in the future. Proctor & Gamble shows respect for all individuals’ customers and employeesalike. They are honest with people about their performance. They inspire and enablepeople to achieve high expectations, standards and challenging goals. They value thedifferences people bring to the company. They also believe that all individuals can andwant to contribute to their fullest potential. Proctor & Gamble works together with Siade, 4
  5. 5. confidence and trust across business units, functions, categories and geographies. Theytake pride in results from reapplying others ideas. They also build superior relationshipswith all the parties who contribute to fulfilling our Corporate Purpose, including itscustomers and suppliers, universities and governments. Proctor & Gamble has an organizational structure that works together to leveragetheir knowledge and scale at the global level with a deep understanding of the consumerand customer at the local level. The Global Business Unit (GBU) organizations leveragetheir consumer understanding to develop the overall strategy for our brands. Theyidentify common consumer needs, develop new products and build our brands througheffective marketing innovations and product upgrades. The GBU is focused on winningthe “second moment of truth” — when the consumer uses the product and evaluates howwell the product meets his or her expectations. The Market Development Organization(MDO) develops go-to-market plans at the local level, leveraging their understanding ofthe local consumers and customers. The MDO is focused on winning the “first momentof truth” — when a consumer stands in front of the shelf and chooses a product fromamong many competitive offerings.Review of current and anticipated culture and structural issues Employee satisfaction is a key part to the success of Proctor & Gamble. Theybelieve that the employees are just as important as the customers. They sponsor variouspost-employment benefits throughout the world. These include pension plans, bothdefined contribution plans and defined benefit plans, and other post-employment benefitplans. Which consist primarily of health care and life insurance for retirees. Procter &Gamble takes pride in it employees and customers. If they are in need of disaster reliefProctor & Gamble is there to help such issues. In 2005, Proctor & Gamble increased itscontribution to Hurricane Katrina aid from $700,000 to $1 million in product and cashdonations to The American Red Cross and America’s Second Harvest. Proctor &Gamble also made assisting employees impacted by the disaster a priority. They had setup a special fund to assist its roughly 550 employees at four coffee production andstorage facilities in the New Orleans region, as well as sales employees in the affectedareas. Siade, 5
  6. 6. B. The customers Environment Current and potential customers Proctor & Gamble operate in a geographic region that consists of 180 countries. Demographic ages range anywhere within the ages of 12 to 80+, depending on the use of the product. Product usage varies from consumer to consumer. Since P&G manufacturer’s product in several product categories such as Beauty, health care, and home care. Psychographic consists of those that are organized, and care about cleanliness, and health and well-being. The average ages of purchasers ranges from early 20s to mid- late 50s. The average users are the same as the average purchasers. The one that influence the purchase of the product is the ones who use the product on a very regular basis. Purchase Most of the consumers purchase the purchase the product in quantities that can be used within months to a year. They generally purchase products in combination in which the products can used after another. For example, Head and shoulders shampoo. Consumer would purchase the conditioner to use in conjunction with the shampoo. Consumption The characteristics of heavy users would be those of industry. Such industries include restaurants, hotels, and airlines, and health and beauty suppliers. The characteristic of light users is your everyday consumer. The use the home care lines to keep things clean and organized. While, the health and beauty lines are for those users that might use the products a bit more; on a daily basis. Most consumption that takes place is in the consumers home or within the place of industry. Siade, 6
  7. 7. Disposition In 1983 Proctor & Gamble introduced triple concentrated downy. This was one ofthe first P&G products that reduced packaging and water waste. This was the start ofthe development of producing products that reduced these concerns. In 2003 Proctor& Gamble led the guidelines for flushable products which were published by thewater environment resource foundation. In 2012 they have set a goal to deliver anadditional 10% reduction (per unit of production) in CO2 emissions, energyconsumption, water consumption and disposed waste from P&G plants, leading to atotal reduction over the decade of at least 40%. Proctor & Gamble also had reductionsin July 2007; Energy Usage -6%, CO2 Emissions -8%, Waste Disposal -21%, WaterUsage -7%Purchasing the products Most of the products that one purchases come from many different venues.Depending on the purpose of use. Most customers purchase P&G products from suchstores as:  Meijer  Wal-mart  target  home-depot  Menards  any home improvement centers  any beauty stores  also directly from P&G Other products for the commercial industry however cannot be bought in a storesetting. The commercial industry generally buys product in larger quantities then theaverage consumer. A site called, "Proctor & Gamble Professional" makes this apossible option. On this site professional can find Distributor locations and programs.Procter & Gamble Professional is the business-to-business resource for Cleaners,Laundry, Snacks, and Health and Beauty supplies. Siade, 7
  8. 8. Most of the customers purchase P&G products in convenience stores and supermarkets. The average sales take place during the hours of 12 pm and 7 pm. Along with these hours of operations sales are mostly increased during promotional events, such as an extension of product lines or price dropping.C. The External Environment Competition Proctor & Gamble has three Major Competitors. The First is Johnson & Johnson. Their total employment is 118,700 employees. They have a total of $63 million profit. The categories of their target market that they produce in are; Pharmaceuticals division; Medical Devices and Diagnostics division. The products that they product range from Risperdal and Remicade medications, to surgical equipment, monitoring devices, orthopedic products, and contact lenses. Along with Pledge, Fantastik, Scrubbing Bubbles, Glade, Raid, OFF! and Ziploc. They have several strengths. The first is that they are the world’s largest and most diverse medical devices and diagnostics company. They are also the world’s premier consumer health company. And lastly, the world’s third-largest biologics company. Along with these strengths they possess a few weaknesses. The first is industry competition; they pose a direct threat to Proctor & Gamble. Another threat is internal theft of drug products The second company that is in competition with them is Kimberly-Clark. They have a total of 53,000 employees. They average $18 million in profit. The markets that they target are; personal care, consumer tissue, K-C Professional, and health care. The products that they carry are Cottonelle, Kleenex, Scott, Huggies, Kotex, Depend, and WypAll/Kimwipes commercial wipes. Kimberly-Clark posses a few strengths that could be potentially harmful for Proctor & Gamble. The first threat to them is their strong retailer relationship. Proctor & Gamble has a better relationship with its suppliers. The second is global company recognition, and lastly great international involvement to better the world. However there are a few weaknesses that can be a positive for Proctor & Gamble. They consist of direct connections with the consumers, under one Siade, 8
  9. 9. leadership and the reduction on spending in the research and developmentdepartment. Unilever is the last company that poses a threat to Proctor & Gamble.Their total employee consists of 175,000 employees. Their annual profit is $59million. The markets that are currently targeted are dressings and spreads; icecream and beverages; personal care; and home care. The products that theycurrently produce are Axe, Dove, Ponds, Suave, Vaseline, Signal, Slim Fast,Lipton, Ben & Jerrys, Breyers, and Country Crock. The biggest strength thatcould weaken Proctor & Gamble is their Lifebuoys hand washing awarenessprogram. It is now the largest private hygiene education initiative in the world.They are also global market leader in all the Food categories: Savory Dressings,Spreads, Weight Management, Tea, and Ice Cream. As well as global marketleader in Skin and Deodorants. The biggest weakness that proves to be a hugestrength for Proctor & Gamble its lack of global consumer recognition. The firm that is in the most direct competition with P&G is Johnson &Johnson; they offer most of the same products that P&G does. Such as beautycare and house care. Indirectly Unilever is competing with P&G in regards to commitment andtime. They are more internationally committed to improving the lives of under-developed countries. A great example of this is the Lifebuoy program. In times ofgreat turmoil Unilever has been there for countries in need with its Lifebuoyprogram. In the aftermath of the Tsunami in Asia in December 2004, Lifebuoybars were a key element in the relief packages distributed in Southern India, SriLanka and Indonesia to help prevent the spread of infectious diseases so endemicin the aftermath of such disasters.Economic Growth and Stability P&G operates on over 150 countries world-wide. The economic growthand stability varies from country to country. Such countries in which it operatesare: United States, United Kingdom, Germany, France, Italy, etc. The economic Siade, 9
  10. 10. growth and revenue in the United States have been steadily increasing year byyear, even with the economic turmoil the Unites States is in.Political Trends In terms of politics P&G is very involved. There is not one specificactivity that affects the company. It is very active in the political environment ofthe world. P&G has developed a team called Global Government Relations(P&G GGR) which is comprised of representatives from Global GovernmentRelations, Legal, Human Resources, and Corporate Communications. P&G GGRrepresents the Company’s point of view in Washington, DC, in U.S. state capitolsas well as in key country capitols around the world. Working with the businesses,P&G GGR focuses on legislative and public policy issues that impact theCompany’s bottom line and long-term business interests. Where permitted by law,P&G GGR: engages and educates policy makers and key stakeholders on issuesthat impact its business; facilitates the exchange of information between keydecision-makers and public policy organizations in the U.S. and abroad.Legal and Regulatory Issues With nearly 300 brands sold throughout the world, Proctor & Gamblesbusiness is influenced by a wide variety of government policies, laws andregulations. Procter & Gambles business is influenced by numerous policies,laws, and regulations regarding the safety and sustainability of its products andoperations. They cooperatively with government and other stakeholders todevelop policies that help ensure consumer products are safe. Proctor & Gambleis also affected by new scientific developments that can influence how the safetyof its products for the people and the environment is evaluated. Approximately500 professionals are responsible for implementing the environment policy, usingrisk assessment and risk management. Procter & Gamble has used risk assessmentas the basis of its safety evaluations for many years. Like all scientific methods,risk assessment is constantly evolving as new knowledge becomes available. Suchexamples of new knowledge to better help ensure the safety of its products is a Siade, 10
  11. 11. new scientific method, called genomics. This now enable scientists to evaluate how chemicals could affect the expression of genes in our bodies. Technological Advancements External collaboration plays a key role in nearly 50 percent of P&Gs products. They have collaborated with outside partners for generations but the importance of these alliances has never been greater. Their vision is simple. Proctor & Gamble wants to be known as the company that collaborates — inside and out — better than any other company in the world. They offer several opportunities for anyone to help out their products. They have several products that need new and innovative ideas online and waiting for someone to have that great idea.III. SWOT Analysis A. Strengths Strength 1: Unique Formula Proctor & Gamble is the first in the industry to develop many new formulas that make certain products one-of-a-kind. Such as the Mr. Clean Magic Eraser. The unique formula that it has developed is one of many that have separated themselves from its competitors. Strength 2: Brand Awareness Proctor & Gamble is established in over 180 + countries. With this wide spread recognition it is easier for Proctor & Gamble to introduce new products in different global markets. They could also expand American products into different global markets because of the brand awareness that Proctor & Gamble has. Strength 3: Multi-purpose Proctor & Gamble offers many products. Some of these products offer more than one purpose. This is very beneficial for those consumer that on the go most of the time, and may not have the time to spare to keep switching from one product to other to complete one or two tasks. With most of its products being mutli-purposal, they can clean the bathroom, kitchen, and walls with one type of cleaner, as opposed to several. The Siade, 11
  12. 12. other benefit to this is that it cuts down the time of completion of these tasks to what could take you a few hours to several minutes.1) Weaknesses Weakness 1: Product Durability The biggest drawback to this is, is cost to the consumer. Some of the product that Proctor & Gamble offers does not have the product life the consumers have come to expect of Proctor & Gamble. Weakness 2: Product Packaging The Package that is the Eraser is in only contains 2 erasers per package. For some consumers that use this product on a daily basis this can be expensive and in convenient if they use more than 2 in a short period of time.2) Opportunities Opportunity 1: Lasting Durability One of the biggest drawbacks to using the Magic Eraser is durability it proves. They have been known to be a one use type of product. This being a drawback as well as a weakness, they have the ability to use it as an opportunity to give the Magic Eraser longer lasting life. Opportunity 2: Product Expansion There are a few different types of the Magic Eraser on the market today. There is one for everyday use, Kitchen/Stove, Bathroom and your Grill. Currently there are no other products out there that can be used in conjunction with the Eraser. Proctor & Gamble could expand the Mr. Clean Magic Eraser line to include such products. Examples of the kinds of additions to the line that they could add are; A hardwood floor cleaner to use with the eraser to get up scuff marks up without harming the wood or finish. Another addition that they could develop is using the same type of technology from the eraser to develop a carpet cleaner that gets out the toughest of stains. Siade, 12
  13. 13. Opportunity 3: Global product recognition Even though that P&G is in more than 180 countries there are many countries that have not ever heard of the Magic Eraser. This poses a problem because they are unaware of the great benefits that it offers it consumers.3) Threats Threat 1: International competition With the Magic Eraser being only available/ known to the consumers of the United States. P&G other global customers are unaware that this exists. That being said, they are most likely going to buy from another company that they might not trust as well as P&G. Threat 2: New Product development from competitors With this being the only product of its kind on the market today, P&G is going to have a tough time with its competitors coming out with similar products. One of the biggest threats with this is that the competitors can offer cheaper prices, regular discounts and better quantity packaging.E. The SWOT MatrixStrengths: Weaknesses:· Unique formula · Global recognition· Brand awareness · Product durability· Multi purpose · Product packagingOpportunities: Threats:· Global recognition · International competition· Product expansion · New product development· Lasting durability from competitors Siade, 13
  14. 14. IV. Developing a Strategic Focus (Thrust) 1) Attain Cost Leadership Definition: Mr. Clean Magic Eraser Products to achieve lowest delivered costs relative to Johnson & Johnson and Unilever with acceptable quality levels. Objective: For Mr. Clean Magic Eraser Products to increase freedom to defend against powerful entries, strong customer blocks, vigorous competitors, or potential substitute products. Requirements: For Mr. Clean Magic Eraser Products to achieve relatively high market share; disciplined, persistent management efforts; favorable access to its raw materials; substantial capital expenditures; and aggressive pricing. Expected Results: Mr. Clean Magic Eraser Products may result in start-up losses to build share; ultimately, high margin; and relatively low capital turnover rates. 2) Differentiate Definition: Mr. Clean Magic Eraser Products to achieve the highest degree of product/quality/service difference (as it is perceived by customers) in the industry with acceptable costs. Objective: For Mr. Clean Magic Eraser Products to insulate Proctor & Gamble from switching, substitution, price competition, and strong blocks of customers/suppliers. Requirements: Mr. Clean Magic Eraser Products to have the willingness to sacrifice high market share; careful target marketing; focused technological and market research; strong brand loyalty. Expected Results: Mr. Clean Magic Eraser Products to possibly have lowered market shares; high margins; above-average earnings; highly defensible position. 3) Focus Definition: For Mr. Clean to select a particular segment of the market/product line more narrow in scope than competing firms. Objective: For Mr. Clean to serve the strategic target area (geographic, product, or market) more efficiently, fully, and profitably than it can be served by broad-line competitors. Siade, 14
  15. 15. Requirements: Mr. Clean to have a disciplined management; persistent pursuit of well- defined scope and mission; premium pricing; careful target selection. Expected Results: For Mr. Clean to achieve above-average earning; may be low-cost producer in its area; may attain differentiation. 4) Defend Position Definition: to ensure that Mr. Cleans’ relative competitive position is stable or improved. Objective: Mr. Clean to create barriers that make it difficult, costly and risky for competitors, suppliers, customer blocks, or new entries to erode Proctor & Gamble’s market share, profitability, and growth. Requirements: Mr. Cleans establishment of one or more of the following: proprietary, technology, strong brand, protected resourcing, favorable locations, economies of scale, government protection, exclusive distribution or customer loyalty. Expected Results: Mr. Clean to have stable or increasing market share.V. Marketing Goals and Objects A. Marketing Goal A: Market a. Market-Scope Objectives Multimarket Objective Definition: Mr. Clean needs to serve more than just one distinct market. Objective: Mr. Clean needs to expand its marketing to overcome the risk of serving just one market Requirements: Mr. Clean needs combine Marketing research with focus groups to precisely select the exact market that it needs to serve. Mr. Clean also needs to be careful to avoid confrontation with competing companies. Expected Results: To generate higher sales and market share b. Market-Geography Objective International-Market Objective Definition: Continue marketing operations outside the United States, as well as target specific locations that have profit potential. Siade, 15
  16. 16. Objective: To grow within their current market and reach untargeted areas aboard. Requirements: Use current untapped sales profits to reach these areas. Second, find out where there is for the Magic Eraser. Third, understanding the cultural boundaries that are different than that of the United States. Example: The size of a consumer’s home/Kitchen/Bathroom. Expected Results: To increase growth in foreign markets. Also to gain a higher market share and profits from those new found markets.c. Market-Entry Objective First-In Objective Definition: To enter markets that Johnson & Johnson and Unilever have not entered yet. Also, try to dominate these markets before the competition has to enter with force. Objective: Get the Mr. Clean name out to untapped nations before the other leaders in its category. Along with having the cheapest and most innovative products as opposed to the competition. Requirements: Willingness to take the risks necessary to make the objective happen. Have the most advanced Eraser formula that brings the highest quality, while still maintaining low prices. Expected Results: The creation of a competitive advantage over the competition by reaching this goal first. This then will bring increased growth, profits, and market share.d. Market-Commitment Objective Strong-Commitment Objective Definition: To devoted to our current and potential customers. By being more committed, we should offer more “deals” to our customers. Objective: To create a stronger more personal relationship with our customers, help to realize we are more than a product, which will encourage loyalty. Siade, 16
  17. 17. Requirements: Be intelligent with our decisions. Establish an unsatisfactory mental state, without over steps our bounds. Avoid neglect of current relationships we have. Expected Results: Increased brand awareness, generate customer loyalty. We will gain increased profits, market shares, as well as growth. e. Market-Dilution Objective Key-Markets Objective Definition: Concentrate our efforts to keep focus on our selected few markets. Reinvent the products to reflect these efforts. Objective: Extremely high priority in bringing the best service that Mr. Clean offers these markets, while maintain consistency. Requirements: Develop a focus group and marketing research to gain the most knowledge of what customers in these markets are looking for in an innovative product. Expected Results: To gain more customer loyalty in the selected markets while increasing profits and market shares.B. Marketing Goal B: Product a. Product- Positioning Objective Definition: Create an innovative product that beats the competition, and then place that product in a market the competition hasn’t tapped into yet. Objective: To position in a market that the leading competition has not entered, with our product being an innovative first, we will remain the number one competitor. Requirements: Create an innovative and effective product line that will reach the specific market (as mention above). Find a market where our product line fits that need before the competition does. Become successful internally as well as externally. Expected Results: Create a new market for the Mr. Clean Magic Eraser line, as well as improving sales. Siade, 17
  18. 18. b. Product-Design Objective Definition: customizing the Magic Eraser line to fit the desired needs of each chosen market. Objective: To customize the Magic Eraser with the latest technologies to develop a formula that put Mr. Clean head of the competition. Design more than one Eraser to fit all the selected markets. Example: Erasers for the kitchen/bathroom/walls. Requirements: Product testing before it hits the market to analyze how it affects the chosen areas of use, in regards to environmental and technological changes. Expected Results: Maintain close connections with the markets and gain experience in future development of the product line. Increasing growth, market share, and profits should also be gained with this maintenance. c. Value-Marketing Objective Definition: Making/keeping a commitment of excellence for our consumers. Objectives: Find what suits our customers. Making customers our key focus. Create that 100% needs satisfied factor. Requirements: Create a product that meets the needs/wants of current and future markets. Expected Results: Ultimate customer satisfaction, customer supreme loyalty, awareness that Mr. Clean is striving for product excellence in all areas.C. Marketing Goal C: Distribution a. Distribution-Scope Objective Definition: supplying to many but not all retail outlets for the Magic Eraser product line. Objective: Provide the best service to the markets with minimal costs, while still maintaining the Mr. Clean image. Siade, 18
  19. 19. Requirements: conduct research to target the customer buying habits. Choosing the right retail outlets to distribute Magic Eraser, with regards to reputation, and customer service, and ability to carry the whole Eraser line. Expected Results: establish selective distribution with the selected dealers. Creating, extreme competition in the market place.D. Marketing Goal D: Promotion a. Promotion-Expenditure Objective Definition: The creation of a new product in the Magic Eraser line. Then market them appropriately with the retailers. With the creation of the new products, it is essential to get the awareness of them out to the consumers. Objective: Making sure the new product in the line will generate enough profits to increase advertisement; therefore funds are secure from prior sales to implement this. Requirements: Look at the budget depth fully to see where there is money for this type of process. In order for this to happen to has to be the appropriate budget allotted. Expected Results: Sell enough of the product line to make this budget allocation possible for the advertising. b. Media-Selection Objective Definition: The ad placements will be through commercials, print ads, billboards, demonstrations, and product displays. The commercials will run in the mornings Prime time hours (6am to 10am) and the afternoon hours (12pm to 6pm). Focused on Women and housekeeping channels such as; TLC, Lifetime, HGtv, etc. The print ad will run in housekeeping, and health magazines. Billboards will be on major roads leading to the major retail outlets, and on highways with high traffic rates. The demonstrations and displays will be in-store. Objective: Generate awareness of Proctor & Gamble as well as the Mr. Clean name and product line. Siade, 19
  20. 20. Requirements: Advertise more than the other leading competitors. Achieve high eye traffic with colorful and unique ad placements that stand out from others. Expected Results: Creation of the desired path of purchase in which you want customers to follow.E. Marketing Goal E: Price a. Pricing Objectives for Established Products i. Maintaining the Price Objective Objectives: To maintain the position in the market that Mr. Clean possesses while enhancing the public image. Requirements: Decrease uncertainty of whether the product is meeting the results that the customers are in need of. Using customer input/suggestions to help better enhance the product to better meet the specific needs of the customers, while maintaining the low prices. Expected Results: Maintaining the status quo of Proctor & Gamble’s market position with the Mr. Clean product line. Along with enhancement of Proctor & Gamble/ Mr. Cleans’ public image. b. Price-Flexibility Objectives i. One-Price Objectives Definition: Charging all customers in the given market the same price for all products in the given Mr. Clean line. Objectives: To maintain the goodwill among the customers, and make pricing more simple for retailers. Requirements: Having the right information to implement this given strategy. Implementation will be done the timing and product. Expected Results: being able to tackle legal attacks on price discrimination. Increase sales, while will lead to a greater market share. Siade, 20
  21. 21. VI. Marketing Strategies A. Primary Target Market and Marketing Mix 1. Primary target market: The primary target market will be the New Mom who is still getting a grip on raising her first child, while still trying to keep the home in a good clean living condition. Most of them have ages ranging from the age group of early 20s to even 40s. Considering this will be a completely new product to the market, we need to focus on Mothers who have some severe cleaning needs that require little time. In the beginning stages of advertising, we will focus in the United States. Mainly, because this product will be widely known to consumer of the United States. If this product is successful in targeting the New Mom market in the United States, and continues to be ahead of the competition. If this proves to be successful, then we would create the same product with different markets of other countries. Such markets would be; The single person(s) and working families. We will expand to include other countries within a close geographic range of the Unites States. Such countries consist of Canada, Mexico and maybe Russia. 2. Product: The Magic Eraser offers one feature that gives several great benefits. The special patented formula is water-activated. Once the micro-scrubbers have been activated it reaches into the grooves of the surface to lift and remove dirt with water alone. Mr. Clean Magic Eraser has been proven by self-test to remove everything you can think would stain a solid hard surface. Since they are the first company to create and distribute this product, it can only help improve their brand name for a period of time. This is such a unique product, that it saves people time and money. Where the Magic Eraser consumers wont have to spend hundreds of dollars on expensive cleaning companies. Most of the erasers are recommended to be changed once it becomes frail and brittle. This product will allow you to keep your home and surfaces clean, as if it were brand new again. With the help of technology, research/development, we will be able to create a special components that can be used in conjunction with the eraser. Also improve the erasers to be more Eco-friendly and more durable. By creating an Siade, 21
  22. 22. eraser that would last longer, it would save the consumer money. Making Eco-friendly eraser will also attract a new market segment of the earth conscience type.3. Distribution: As was stated previously, we would keep the same distribution methods we arecurrently using. We distribute our products through several different Medias. Wecurrently distribute though supercenters, grocery stores, home improvement centers,and discount stores. Along with these distribution centers we also sell our productsthrough our websites, both our consumers and industrial sites. Once we advertise ourproducts a bit more, and increase our sales, we might add on more distributors.4. Integrated Marketing Communications (Promotion): Our customers will find out about the products that we offer through theadvertisements that we broadcast and print. These advertisements will reach all theUnited States. Once people see the ads that we place or hear from friends how greatthe magic eraser truly is, they will be intrigued to go out and buy the product to seejust how well it works for them. Once word-of-mouth is achieved we are certain thatthis product will sell. Some people might not believe that this product will be true itsname; Magic Eraser, and erase anything that scratches, scuffs or leaves a mark.Some people may be skeptical at first, but once they try the product we are certain themagic eraser will live up its name. They will be saving themselves money and time.They will be saving money because they dont have to pay for expensive cleaningcompanies or cleaning products. Also, we will encourage a promotional strategythrough the distributors. They will also save time, because they dont have to spendhours trying to get the scratch out, when there is no guarantee that it will come out.Proctor and Gamble along with other distributors, have weekly/monthly/yearlypromotions for certain product lines with the company. This would obviously be agood place to start because it would be a current product with a great reputation. Siade, 22
  23. 23. 5. Pricing: Considering the price of this product is the same for all the erasers in the productline. Since this is the only product of its kind. As stated before, we are the first toenter the market. Because of this we can keep the price of the erasers fairlyreasonable, but still a little high. Then once the competition enters the field, we willhave to remain competitive. To maintain competitiveness, we need to be able to lowerthe pricing however once the competition enters the market. Also, the promotionalstrategy. We will do a different promotional strategy for each distributor. There willbe a buy once get one free. That will be one of the strategies that we wouldimplement. Also, we need to do a strategy with the distributor. As in, buy the newMagic Eraser, and enter to win a dream kitchen. There are many promotionalstrategies that can take place. After competition enters, we would like to see at leastthe prices and sales remain consist. Siade, 23

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