P&G Case Presentation [Elegant (VII)]


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This is a case presentation on the Marketing Research course. It is prepared by the group Elegant (VII).

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P&G Case Presentation [Elegant (VII)]

  1. 1. We are… Elegant (VII)
  2. 2. Topic of Presentation
  3. 3. Chowdhury Omor Faruque ID NO. 173
  4. 4. About the case • • • • • • • • • As of 2006, Proctor & Gamble delivered products under 300 brands to nearly five billion consumers in more than 140 countries around the world. P&G employed about 110,000 employees in approximately 80 countries worldwide. P&G is the number one U.S. maker of household products, with nearly 300 brands in five main categories: Baby, Feminine & family care, Fabric & home care, Beauty care, Health care and food & beverage. Overtime P&G has proven to be an innovator in creating brands and understanding consumers by making extensive use of marketing research. Building brands has been a cornerstone of P&G’s success. In the early days P&G would mass market through television and other sources because this was effective at the time. They have charged their key strategy from mass marketing to consumer targeting. Their market research is so extensive that they even develop new product based on research to meet the demands of consumer. P&G’s innovative approach puts the consumer at the centre of everything they do. P&G marketing has been innovative and pioneering over the years and one would expect the same from them in the future they are constantly using marketing to solve the problem of today and to build brands that will be continue to be leader tomorrow.
  5. 5. P&G (Procter & Gamble)- At a Glance Origin: William Procter, a candlemaker, and James Gamble, a soapmaker, immigrated from England and Ireland respectively. They settled in Cincinnati initially and met when they married sisters, Olivia and Elizabeth Norris. Alexander Norris, their father-in-law, called a meeting in which he persuaded his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born. Logo: Procter & Gamble (P&G) is a Fortune 500 American MNC headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods. • In 2011, P&G made $82.6 billion dollars in sales. Fortune magazine ranked P&G at fifth place of the "World's Most Admired Companies" list, which was up from sixth place in 2010. Procter & Gamble is the only Fortune 500 company to issue C Share common stock.
  6. 6. Continued… • Focused on providing branded customer goods. Its goal is to provide products of superior quality & improve the lives of the world’s consumer. • Its products are sold in more than 180 countries primarily through merchandisers, grocery stores, membership club stores, drug stores and high frequency stores. It also focuses on the expansion of department stores, perfumeries, pharmacies, saloons & ecommerce. • In 2007, it established five sustainability strategies and goals for 2012. In March 2009, it increased its goals to reflect our progress and to demonstrate our ongoing commitment to sustainable, responsible growth. Strategies followed by P&G are: Products Operations Social Responsibility Employees Stakeholders
  7. 7. P&G Products
  8. 8. Md. Moben Ahmed ID NO. 151
  9. 9. Question Use the internet to determine the market shares of the major toothpaste brands for the last calendar year.
  10. 10. Answer • For decades Crest toothpaste was the leading brand in the market. When Crest was launched in 1955 it was a revolutionary brand—it was the first brand that would fight cavities. Such a USP gave it a significant advantage over all other brands. Since that time, however, Crest has stayed with pretty much the same story. But a few years ago Crest lost its leadership position to Colgate. Crest did not keep pace with changes in the marketplace. Sitting on its laurels and relying on past reputation is not a practice a brand leader should follow. Such a practice was permeating Procter & Gamble, and consequently many of its big brands were suffering. Bad breath, stained teeth, and sensitive gums have been issues in recent years. While other toothpaste makers moved in to cater to these needs, Crest kept on fighting cavities. Arm & Hammer launched a baking soda formula, Rembrandt Between 1987 and 1997, Crest’s market share dropped from 39 percent to 27 percent. In 1997, Colgate launched an innovative toothpaste product that seemed to do everything: it fought cavities, tartar, plaque, bad breath, and introduced anti-aging and whitening formulas, and Aqua Fresh offered a fresh breath formula. most importantly, gingivitis. Gingivitis is a gum disease that all dentists harp about. By the end of 1998, Colgate had grabbed 30 percent of the market, mainly due to the popularity of its Total brand. Crest’s share stood at 26 percent. • Market shares of the major toothpaste brands are given below:
  11. 11. Market Share Brand Company Market Share 2010 Market Share 2009 Colgate Colgate-Palmolive 32.1 30.1 Crest Procter & Gamble 27.4 27.3 Aquafresh GlaxoSmithKline 10.5 10.9 Arm & Hammer Church & Dwight 8.3 6.6 Mentadent Unilever 5.7 6.6 Sensodyne Block Drug 4.2 4.1 Rembrandt Gillette 3.1 2.8 Close Up Unilever 1.6 1.7 Ultra Brite Colgate-Palmolive 1.3 1.3 Pepsodent Unilever 1.0 1.1
  12. 12. Rumana ID NO. O87
  13. 13. Question What type of syndicate data will be useful in addressing the marketing research problem?
  14. 14. Answer  Syndicated data are not collected for the purpose of marketing research problems specific to individual clients, but the data and report supplied to client companies can be personalized to fit particular needs.  Syndicated data offered by marketing research organizations that provide information from a common database to different firms that subscribe to their services. Household/consumer data will be useful in addressing the marketing research problem because we can directly collect information from consumer and we will obtain exact & specific information that reduces the error of marketing research problem.  Household data may be obtained from survey, purchase & media panels & electronic scanner services.  Survey mainly conducted at regular intervals. it is the most flexible way to obtaining data. It is mainly uses in the sector of market segmentation, advertising theme selection advertising effectiveness.  In case of purchase panels households provide specific information regularly over an extended period of time. Record purchase behavior can be linked to the demographic, psychographic characteristics. It’s helpful to forecasting sales, market share & trends, brand loyalty & switching, packaging & distribution.
  15. 15. Continued… • In case of media panels electronic devices automatically recording behavior supplemented by a diary. It helps to establishing advertising rates, selecting media programs establishing viewer profile. • In case of scanner volume tracking data household purchases recorded through electronic scanners in supermarket. Data reflect actuapurchases, timely data, less expensive. It is helpful in price tracking, modeling, and effectiveness of instore promotion. • In case of scanner panels with cable TV scanner panels of households that subscribe to cable TV. Data reflect actual purchases, link panel data to household characteristics. It is helpful to copy testing, new product testing & positioning. • At last we say household data will be useful in addressing the marketing research problem because it provides specific information & reliable, accurate information it is also time consuming& less expensive that is helpful to reduce the error of marketing research problem.
  16. 16. Md. Al Amin ID NO. 089
  17. 17. Question Discuss the role of qualitative research in helping P&G to increase its share of the Toothpaste market.
  18. 18. Answer Role of qualitative research to increase market share: • Market share can be increased by the following way: • Attractive advertisement. • Promotion and campaign. • Appropriate segmentation of market. • Customized product solution. • Focusing on consumer’s interest and preference on product. • Increasing breadth & depth of the product in the market. • Understanding consumers need and developing product to satisfy that need in the best possible way. • Attractive & affordable packaging. • Linking cultural background with the product. • Making product available to consumer with great efficiency but not increasing the price. • Continuous research of consumers need and continuous development of product according to the need. • Surveillance on competitor’s activities on the market and taking appropriate action. • Providing consumers value added service related to use and consumption of product.
  19. 19. Continued… • Now let’s consider the role of qualitative research to increase the market share of P & G in Toothpaste market. • Qualitative research is used to gain qualitative understanding of the values lying reasons and motivations. • There are several reasons to use qualitative research. It is not always possible or desirable, to use fully structured or formal methods to obtain information from respondents. People may be unwilling or unable to answer certain questions. People are unwilling to give thoughtful answers to the questions that invade their privacy, embarrass them or have a negative impact on their ego or status. • Second, people may be unable to provide accurate answer to questions that tap their subconscious mind. The value, emotional drives and emotional drives at the subconscious level and disguised from the outer world by rationalization and other ego defense. • To overcome this problem qualitative research is more effective to find accurate information. • Qualitative research will help P & G to identify the customs preference customs need cultural combination of toothpaste and them segmenting the market with appropriate base. For example marketing executives can identify some of the following qualitative variable to identify consumer preference on tooth paste market: 1. Cavity & Gum protection 2. Whiteness of teeth. 3. Taste 4. Fresh breath 5. Price
  20. 20. Continued… • Based on this variable he/she will design product with minimum appeal to consume • Then he will develop advertising strategy by conducting research on the following qualitative variable • Preference of color &contrast on add. • Preference of advertising medium ( TV/ News paper) • Preference of cultural elements. • Preference of quality, quantity, fragrance, or other variable. • Focus of consumer attention. • By developing appropriate advertising strategy, he will be able to communicate the presence of the product on the market place. Then if these efforts are integrated with other marketing program, toothpaste market share is likely to increase.
  21. 21. Md. Abdur Rakib ID NO. 041
  22. 22. Question P & G has developed new toothpaste that provide tooth and gum protection from 24 hours after each brushing. It would like to determine consumer’s response to this new toothpaste before introducing it in the market place. If a survey is to be conducted to determine consumers preferences, which survey method should be used and why?
  23. 23. Answer For determining consumer’s preference to new toothpaste, it is better to use personal interviewing method. Personal interviewing: • In case of personal interviewing, it is more effective to use in Home personal interview. Personal interviewing 1. In Home 2. Mall intercept 3. Computer assisted Why: • In personal in Home interviews, respondents are interviewed face to face in their home. The interviewer’s task is to contract the responder. Ask the questions and record the responses. By personal interviewing consumer’s preferences on different variable like color, fragrance etc. can be determined. It is also important to specify how they prefer tooth and gum protection in their consideration.
  24. 24. Anjuman Ara ID NO. 139
  25. 25. Question What sampling plan should be adopted for the survey of tooth paste brand? How should the sample size be determined?
  26. 26. Answer • Sampling plan to be adopted: Sampling Design Process Define the target population Determine the sampling frame Select a sampling technology Determine the sample size Execute the sampling process
  27. 27. Continued… • Target population: Middle class and high class people who used branded toothpaste. • Sampling frame: Sampling frame is the representation of the elements of the target populations. Hence sampling frame includes people with different profession, like teacher, doctor, engineer etc. • Sampling techniques: sampling technique should be sampling without replacement. Sampling technique in which an element can not be included in the sample more than once. • Here probability sampling technique is likely to be included. It is possible to pre specify every potential sample of a given size that could be drawn from the population. • In this case simple random sampling is likely to be selected. It is a probability sampling technique in which each element in the population has a known and equal probability of selector. Every element is selected independently of every other element and the sample is drawn by a random procedure from a sampling frame.
  28. 28. Md. Shajahan Sarkar ID NO. 145
  29. 29. Question What charts would be useful in presenting your results to P&G management?
  30. 30. Answer – Round or Pie charts: In a pie chart the area of each section, as a percentage of the total area of the circle, reflects the percentage associated with the value of a specific variable. – Pictograph: Pictograph uses small picture or symbols to display the data. – Histogram & Bar chart: A bar chart display data in various bars that may be positioned horizontally or vertically. A histogram is a vertical bar chart in which the height of the bar represents the relative or cumulative frequency variable. of occurrence of a specific
  31. 31. Any Question???