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ProcterProcter && GambleGamble
Detergent Case StudyDetergent Case Study
TEREZA Bártová
STANISLAV Krupa
JIŘÍ Tabáček
PETR Weida
LENKA Adámková
STAINFIGHTERSSTAINFIGHTERS
Strategic Marketing & Innovation
Nov 25, 2010
19.3.2015
• OGSM Sheet
• Target Audience
• Product formula
• Sizing strategy
• Pricing strategy
• Media strategy
• Copy strategy
• Promotion strategy
• Trade
• Selling tools for
traditional trade
• Shop in shop
• Future plan
• Back-up
219.3.2015
Outline
Objective Goals
Ensure P&G market leadership in the field of detergents by maintaining
MAXX on the market and launching BRISK as a new detergent
at the same time. Our aim is to avoid cannibalization of the current
brand MAXX and achieve at least a neutral profit for the new
brand BRISK in the first two years.
Volume: 760 MSU / 6 080 000 kg
Volume share: 8%
Strategies Measures Action Plans Timing
Make customers try out BRISK for the first
time in order to get new experience
with the product and subsequently
switch to bigger and more expensive sizes.
Number of customers who
try out the brand BRISK.
Steps in terms of trial
strategy, focus on
introductory price reduction.
Mar -> Apr 05
Convince customers who have used MOMO
so far that BRISK can offer them better
features regarding bleaching effect
and freshness and is for a comparable
price at the same time.
Number of customers
who switch from our competitor
MOMO to our new brand
BRISK.
Communication campaign,
emphasis of better quality,
comparable price, attainable
in the same sizes.
Mar -> Jun 05
Build a brand awareness
among customers.
Number of customers
who can spontaneously name
our brand.
Complex communication
campaign (TV spots, ads).
Mar -> Dec 05
Build a loyalty among recently gained
customers.
Number of customers
who consider BRISK
as the first choice.
Steps in terms of loyalty
strategy, drawing
promotion.
Nov -> Dec 05
OGSM Sheet
• Women
– Housewives
– Students
– Women on maternity leave
• 22 – 34 years
• Lower incomes
(less than 185 000 HUF)
19.3.2015 4
Target Audience
• Chosen product formula – Option III - BRISK
5
Product formula
19.3.2015
Comparison with the biggest competitor
BRISK MOMO
Cleaning Base Equal
Whiteness Base Slightly poorer
Freshness Base Poorer
Residues Base Equal
• Low-tier product
• Competition for the brand Momo
• Avoidance of cannibalization of our current brand Maxx
6
Sizing strategy
19.3.2015
Size 2 kg 3 kg 4 kg 6 kg 1,5 l 3 l
BRISK x x x x x -
• Powder/liquid form
• To address as a large group of consumers with
different purchase habits as possible
7
Pricing strategy I
19.3.2015
Pricing (HUF)
BRISK MOMO Difference
2 kg 999 949 + 5,3%
3 kg 1 299 1 249 + 4,0%
4 kg 1 699 1 699 -
6 kg 2 299 2 299 -
1,5 l 999 949 + 5,3%
• Vision: „To provide consumers with a better quality for a comparable price“
• Preference: High-low pricing (our TA is sensitive to promo
actions connected with a price cut-down)
8
Pricing strategy II
19.3.2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
H H L L H L H H H L H H
• Price
(Hi-Lo)
Reduced price (HUF)
Size BRISK
2 kg 899
3 kg 1 199
4 kg 1 499
6 kg 1 999
1,5 l 899 • Applied only for hyper/supermarkets
9
Media strategy
19.3.2015
New
TV spot
New
TV spot
New
TV spot
Introductory
campaign
Product
reminder
Loyalty
building
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0 0 600 600 250 400 0 600 250 400 400 400
• TV Performance (beginning in March 05)
• Magazines for women:
• Jun 05 -> Aug 05: On holiday people usually read mag. more
• Nov 05 -> Dec 05: Mag. bought because of recipes for X-mas cookies
• Internet: Time parallel with TV campaign, websites for women
Month/GRPs
10
Copy strategy
19.3.2015
“To all women who must fight with irresistible
stains on everyday basis we introduce a new
detergent on the market – BRISK – that brings
a quality of more luxurious detergents at a very
reasonable price. Thanks to a new applied
technology that consists in higher
concentration of bleach and stuff that
subsequently releases
a fresh scent, your garment will look cleaner
and smell fresher than before.”
11
Promotion strategy
19.3.2015
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
• Trial strategy
• Introductory price reduction
• No sampling
• Loyalty strategy
• Drawing promotion
• 4 kg, 6 kg + gift
• Loading/stocking strategy
• Bonus pack
• 1+1 free: 6 kg + 1,5 l
12
Trade I
19.3.2015
Distribution Merchandising
Hypermarkets Full (all sizes) Selected materials
Supermarkets Full (all sizes) Selected materials
Small food Limited
(2+3kg)
Special tools
(see slide 16)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
x x Leaflets
Pyramids
Leaflets
Racks
Shelf flags
x Leaflets
Racks
Shelf flags
x Leaflets
Pyramids
x Leaflets
Racks
Shelf flags
Leaflets
Pyramids
Posters
Leaflets
Pyramids
Posters
Summary
13
Trade II
19.3.2015
• Shelf management (hypermarket)
Purchase direction
                                       
others others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx
          1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 3 l 3 l 1, 5 l 1, 5 l 3 l 3 l
                                       
                                       
others others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx
          2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg
                                       
                                       
others others others others Momo Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx
        3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg
                                       
                                       
                                       
others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Citron Maxx Maxx Maxx Maxx
        4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg
                                       
                                       
                                       
others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Citron Maxx Maxx Maxx Maxx
        6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg
                                       
14
Trade III
19.3.2015
• Shelf management (supermarket)
Purchase direction
Eye level
Waist level
Floor level
Stretch level
                       
others others others others others others others Citron Citron Citron Citron Citron
              4 kg 4 kg 3 kg 2 kg 1,5 l
                       
                       
Maxx Maxx Maxx Maxx Maxx Maxx Maxx Maxx Citron Citron Citron Citron
6 kg 4 kg 4 kg 3 kg 3 kg 2kg 2 kg 1,5 l 4 kg 3 kg 2 kg 1,5 l
                       
                       
Brisk Brisk Brisk Brisk Brisk Momo Momo Momo Momo Momo Momo Momo
6 kg 4 kg 3 kg 2 kg 1,5 l 4 kg 4 kg 4 kg 3 kg 3 kg 2 kg 1,5 l
                       
                       
others others others others others others others Momo Momo Momo Momo Momo
              6 kg 6 kg 3 kg 2 kg 1,5 l
                       
15
Trade IV
19.3.2015
• Shelf management (small food)
Purchase direction
Eye level
Waist level
Floor level
               
Maxx Maxx Maxx Maxx Citron Citron Citron Citron
3 kg 3 kg 2 kg 2 kg 3 kg 3 kg 2 kg 2 kg
               
               
Brisk Brisk Momo Momo Momo Momo Momo Momo
3 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 1,5 l
               
               
others others others others others others Momo Momo
            3 kg 3 kg
               
1) Own displays directly in a shop
• Distinction
• Problems with placing of detergents on shelves solved
1) Higher value gifts for a shop owner
• Better motivated to refill displays with P&G detergents regularly and
place them in very well visible places -> „1st moment of truth“
• Reward for a shopkeeper: system of points + gift catalogue
1) POS materials, leaflets in shops
• Racks with flyers at cash desks
1) Promo actions
• Lower prices (time parallel with hyper/supermarkets)
1) Local sales teams
• Care only about traditional shops
• Personal relationship with owners
16
Traditional trade
Set of tools
19.3.2015
17
Shop in shop
19.3.2015
Purchase direction
fabric
softeners
stain
removers
 
 
Maxx
Professional
detergents
 
 
 
Softy  
 
 
house
cleaning
 
 
 
Brisk
 
 
 
 
 
 
Maxx
 
• Total MS after the 2nd
year
– 13% (average) but at the end of the 2nd
year MS should
approach 15%
• Profit margin after the 2nd
year
– 8,5%
• Innovations at the end of the 2nd
year
– e.g. more intensive fresh scent
18
Future plan
19.3.2015
Strategic Marketing & Innovation
Nov 25, 2010
19.3.2015
THANK YOUTHANK YOU
FOR YOUR ATTENTION!FOR YOUR ATTENTION!
….and
20
Back-up
Financial chart
19.3.2015
• Consumer promotion (Cost $M)
• 1: Cost of studies
• 2: Internet + Introductory Price Reduction
(snížení výnosu za prodaný kilogram * počet prodaných kil v daném měsíci * podíl hypermarketů a supermarketů)
• 3: Internet + Introductory Price Reduction
(vysvětlení viz 2)
• 4: Internet
• 5: Internet + Discount
(snížení výnosu za prodaný kilogram * počet prodaných kil v daném měsíci * podíl hypermarketů a supermarketů)
1 2 3 4 5 6 7 8 9 10
JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC   TOTAL
30 0 56 102 10 102 0 105 10 118 197 197   926
21
Back-up
Financial chart
19.3.2015
1 2 3 4 5 6 7 8 9 10
JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC   TOTAL
30 0 56 102 10 102 0 105 10 118 197 197   926
• Consumer promotion (Cost $M)
• 6: Internet + Bonus Pack
(počet prodaný kil v měsíci * očekávaný podíl 6 kg balení / počtem kilogramů v balení (6) * cena přibaleného gelu * podíl
hypermarketů a supermarketů)
• 7: Internet
• 8: Internet + Discount
(vysvětlení viz 5)
• 9: Internet + Drawing Promotion
(počet prodaný kil v měsíci * cena dárku * podíl hypermarketů a supermarketů * (očekávaný podíl 4KG balení/počtem
kilogramů v tomto balení (4) + očekávaný podíl 6KG balení/počtem kilogramů v tomto balení (6)))
• 10: Internet + Drawing Promotion
(vysvětlení viz 9)
22
Back-up
Goals
19.3.2015
* Brands belonging to this category are not so well-established, they have less loyal
Consumers, it could be easier to get the required MS.
23
Back-up
TA – Sizing - Price
19.3.2015
• TA - reasons why?
– Mainly women buy detergents
– Detergents of a lower quality are mainly bought by people
with lower incomes
– Younger people have lower incomes
• Why to offer the size of 2 kg?
– Goes round 1 month on average
– People buy this size just for trial first
– Complete competition for Momo (also in all sizes)
• Price - reasons why?
– In the sizes of 4 kg and 6 kg consumers from a low- and mid-
tier category buy approximately 65% of the total volume
-> suitable to try to gain MS with a lower price
24
Back-up
Media
19.3.2015
• TV Performance
– Jan 05 + Jun 05 + Sep 05: Production of a new TV spot
(supposed that it will take 2 months)
– Mar 05 + Apr 05: Product launch campaign
– May 05: Competition for Momo, brand awareness
– Jun 05: Lower price support
– July 05: People on holiday, they usually do not watch TV in this period
– Aug 05: Our campaign overtakes Momo´s campaign – consumers stock
up with our new detergent on the basis of our TV campaign and
consequently they will not respond to Momo´s campaign
– Sep 05: Competition for Momo, brand awareness
– Oct 05: Lower price support
– Nov 05 + Dec 05: X-mas advertisement – the aim is to attract people
to come and buy our new detergent and they will get a special present
25
Back-up
Promotion
19.3.2015
• NO SAMPLING (Mar -> Apr 05: trial strategy)
• Ineffective
• Useless for our detergent (it doesn´t try to be the best
on the market)
• More advantageous to make consumers buy 2 kg size directly
because our new detergent will be sold for a really low price
• NO GIFT AT 1,5 l PACKAGE (Nov 05 + Dec 05: loyalty strategy)
• The exceptional reward for consumers who are willing to buy
a bigger package
• Our aim is to make consumers buy a bigger package
• NO RETRIAL STRATEGY
• Left out because the period is too short
• Basically the same process as a trail strategy
• It´s just about naming
26
Back-up
Shelving I
19.3.2015
Old share New share
Momo 28 25
Citron 21 19
Maxx 17 17
Brisk 0 10
Others 34 29
Old share New share
Momo 30 26
Citron 25 22
Maxx 20 20
Brisk 0 10
Others 25 22
• Hypermarket
• Supermarket
27
Back-up
Shelving II
19.3.2015
Old share New share
Momo 38 32
Citron 17 16
Maxx 15 15
Brisk 0 12
Others 30 25
• Small food
• NO 1,5 l PACKAGE ON SHELVES
• People usually don´t look for news in traditional shops
• Esp. small village shops where older people usually do their shopping
but they probably won´t buy a liquid form
• People from our TA who come home late could be interested but the
percentage of such convenience stores (only 15%) is so low that it
wouldn´t be worth placing a liquid form there
28
Back-up
Merchandising I
19.3.2015
• Leaflets – timing:
– Mar 05 + Apr 05: information about introductory price
reduction (4 rounds)
• 2nd
+ 3rd
week
• 1st
+ 4th
week
– June 05: information about lower price (1 round)
– Aug 05: information about bonus pack (2 rounds)
• 2nd
+ 3rd
week
– Oct 05: information about lower price (1 round)
– Nov 05 + Dec 05: information about drawing promotion
(4 rounds)
• 2nd
+ 3rd
week
• 2nd
+ 3rd
week
29
Back-up
Merchandising II
19.3.2015
• Pyramids – timing:
– Mar 05: 2nd
+ 3rd
week: pyramids reflected new product launch
– Aug 05: 2nd
+ 3rd
week: pyramids highlighting bonus pack
– Nov 05 + Dec 05: 2nd
+ 3rd
week: pyramids highlighting drawing
promotion (4 kg, 6 kg + gift)
+ special Christmas poster to attract more people
• Racks, shelf flags – timing:
– June + Oct 05: lower price highlighted
– Apr 05 – 1st
+ 4th
week: new product launch reminded
On display only for a period when the appropriate leaflet is valid!!!On display only for a period when the appropriate leaflet is valid!!!
• Ad 2) System of rewarding:
– Points gained for successful sales, further evaluation with
respect to stock, mark and exposure:
• Displays regularly refilled, no empty space on shelves
• Displays (+shelves and detergents themselves) duly labeled
• Displays placed in, for consumers, very well visible places
– Evaluation carefully carried out by sales reps
– Points regularly recorded
– Depending how many points an owner gets during a certain
period (3-5 years), he´ll be free to pick a gift from a catalogue
• Holiday
• Luxurious pen
• Bicycle
• …
30
Back-up
Traditiona trade
19.3.2015
31
Back-up
Shop in shop
19.3.2015
• Detergents (6/7)
– The biggest category
– On the right side because most of people are right-handed, plus they
subconsciously respect “traffic rules” (driving on the right side)
• Stain removers (1/7)
– The closest category to detergents
– It mustn’t optically push out detergents
• Fabric softeners (3/7)
– Suppose that when a consumer needs to buy a detergent, once he gets to
the end of the shelf with detergents, he realizes that he needs to buy a
fabric softener as well, he doesn´t have to go back at the beginning of the
aisle, he can just cross the aisle and gain its softener quickly
• House cleaning (4/7)
– It fits in very well with the 3 previous categories
– It belongs to cleaning stuff

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P&G_CaseStudy_STAINFIGHTERS

  • 1. ProcterProcter && GambleGamble Detergent Case StudyDetergent Case Study TEREZA Bártová STANISLAV Krupa JIŘÍ Tabáček PETR Weida LENKA Adámková STAINFIGHTERSSTAINFIGHTERS Strategic Marketing & Innovation Nov 25, 2010 19.3.2015
  • 2. • OGSM Sheet • Target Audience • Product formula • Sizing strategy • Pricing strategy • Media strategy • Copy strategy • Promotion strategy • Trade • Selling tools for traditional trade • Shop in shop • Future plan • Back-up 219.3.2015 Outline
  • 3. Objective Goals Ensure P&G market leadership in the field of detergents by maintaining MAXX on the market and launching BRISK as a new detergent at the same time. Our aim is to avoid cannibalization of the current brand MAXX and achieve at least a neutral profit for the new brand BRISK in the first two years. Volume: 760 MSU / 6 080 000 kg Volume share: 8% Strategies Measures Action Plans Timing Make customers try out BRISK for the first time in order to get new experience with the product and subsequently switch to bigger and more expensive sizes. Number of customers who try out the brand BRISK. Steps in terms of trial strategy, focus on introductory price reduction. Mar -> Apr 05 Convince customers who have used MOMO so far that BRISK can offer them better features regarding bleaching effect and freshness and is for a comparable price at the same time. Number of customers who switch from our competitor MOMO to our new brand BRISK. Communication campaign, emphasis of better quality, comparable price, attainable in the same sizes. Mar -> Jun 05 Build a brand awareness among customers. Number of customers who can spontaneously name our brand. Complex communication campaign (TV spots, ads). Mar -> Dec 05 Build a loyalty among recently gained customers. Number of customers who consider BRISK as the first choice. Steps in terms of loyalty strategy, drawing promotion. Nov -> Dec 05 OGSM Sheet
  • 4. • Women – Housewives – Students – Women on maternity leave • 22 – 34 years • Lower incomes (less than 185 000 HUF) 19.3.2015 4 Target Audience
  • 5. • Chosen product formula – Option III - BRISK 5 Product formula 19.3.2015 Comparison with the biggest competitor BRISK MOMO Cleaning Base Equal Whiteness Base Slightly poorer Freshness Base Poorer Residues Base Equal • Low-tier product • Competition for the brand Momo • Avoidance of cannibalization of our current brand Maxx
  • 6. 6 Sizing strategy 19.3.2015 Size 2 kg 3 kg 4 kg 6 kg 1,5 l 3 l BRISK x x x x x - • Powder/liquid form • To address as a large group of consumers with different purchase habits as possible
  • 7. 7 Pricing strategy I 19.3.2015 Pricing (HUF) BRISK MOMO Difference 2 kg 999 949 + 5,3% 3 kg 1 299 1 249 + 4,0% 4 kg 1 699 1 699 - 6 kg 2 299 2 299 - 1,5 l 999 949 + 5,3% • Vision: „To provide consumers with a better quality for a comparable price“ • Preference: High-low pricing (our TA is sensitive to promo actions connected with a price cut-down)
  • 8. 8 Pricing strategy II 19.3.2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec H H L L H L H H H L H H • Price (Hi-Lo) Reduced price (HUF) Size BRISK 2 kg 899 3 kg 1 199 4 kg 1 499 6 kg 1 999 1,5 l 899 • Applied only for hyper/supermarkets
  • 9. 9 Media strategy 19.3.2015 New TV spot New TV spot New TV spot Introductory campaign Product reminder Loyalty building Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0 0 600 600 250 400 0 600 250 400 400 400 • TV Performance (beginning in March 05) • Magazines for women: • Jun 05 -> Aug 05: On holiday people usually read mag. more • Nov 05 -> Dec 05: Mag. bought because of recipes for X-mas cookies • Internet: Time parallel with TV campaign, websites for women Month/GRPs
  • 10. 10 Copy strategy 19.3.2015 “To all women who must fight with irresistible stains on everyday basis we introduce a new detergent on the market – BRISK – that brings a quality of more luxurious detergents at a very reasonable price. Thanks to a new applied technology that consists in higher concentration of bleach and stuff that subsequently releases a fresh scent, your garment will look cleaner and smell fresher than before.”
  • 11. 11 Promotion strategy 19.3.2015 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • Trial strategy • Introductory price reduction • No sampling • Loyalty strategy • Drawing promotion • 4 kg, 6 kg + gift • Loading/stocking strategy • Bonus pack • 1+1 free: 6 kg + 1,5 l
  • 12. 12 Trade I 19.3.2015 Distribution Merchandising Hypermarkets Full (all sizes) Selected materials Supermarkets Full (all sizes) Selected materials Small food Limited (2+3kg) Special tools (see slide 16) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec x x Leaflets Pyramids Leaflets Racks Shelf flags x Leaflets Racks Shelf flags x Leaflets Pyramids x Leaflets Racks Shelf flags Leaflets Pyramids Posters Leaflets Pyramids Posters Summary
  • 13. 13 Trade II 19.3.2015 • Shelf management (hypermarket) Purchase direction                                         others others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx           1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 1,5 l 3 l 3 l 1, 5 l 1, 5 l 3 l 3 l                                                                                 others others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx           2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg                                                                                 others others others others Momo Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Maxx Maxx Maxx Maxx         3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg 3 kg                                                                                                                         others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Citron Maxx Maxx Maxx Maxx         4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg 4 kg                                                                                                                         others others others others Momo Momo Momo Momo Momo Brisk Brisk Citron Citron Citron Citron Citron Maxx Maxx Maxx Maxx         6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg 6 kg                                        
  • 14. 14 Trade III 19.3.2015 • Shelf management (supermarket) Purchase direction Eye level Waist level Floor level Stretch level                         others others others others others others others Citron Citron Citron Citron Citron               4 kg 4 kg 3 kg 2 kg 1,5 l                                                 Maxx Maxx Maxx Maxx Maxx Maxx Maxx Maxx Citron Citron Citron Citron 6 kg 4 kg 4 kg 3 kg 3 kg 2kg 2 kg 1,5 l 4 kg 3 kg 2 kg 1,5 l                                                 Brisk Brisk Brisk Brisk Brisk Momo Momo Momo Momo Momo Momo Momo 6 kg 4 kg 3 kg 2 kg 1,5 l 4 kg 4 kg 4 kg 3 kg 3 kg 2 kg 1,5 l                                                 others others others others others others others Momo Momo Momo Momo Momo               6 kg 6 kg 3 kg 2 kg 1,5 l                        
  • 15. 15 Trade IV 19.3.2015 • Shelf management (small food) Purchase direction Eye level Waist level Floor level                 Maxx Maxx Maxx Maxx Citron Citron Citron Citron 3 kg 3 kg 2 kg 2 kg 3 kg 3 kg 2 kg 2 kg                                 Brisk Brisk Momo Momo Momo Momo Momo Momo 3 kg 2 kg 2 kg 2 kg 2 kg 2 kg 2 kg 1,5 l                                 others others others others others others Momo Momo             3 kg 3 kg                
  • 16. 1) Own displays directly in a shop • Distinction • Problems with placing of detergents on shelves solved 1) Higher value gifts for a shop owner • Better motivated to refill displays with P&G detergents regularly and place them in very well visible places -> „1st moment of truth“ • Reward for a shopkeeper: system of points + gift catalogue 1) POS materials, leaflets in shops • Racks with flyers at cash desks 1) Promo actions • Lower prices (time parallel with hyper/supermarkets) 1) Local sales teams • Care only about traditional shops • Personal relationship with owners 16 Traditional trade Set of tools 19.3.2015
  • 17. 17 Shop in shop 19.3.2015 Purchase direction fabric softeners stain removers     Maxx Professional detergents       Softy       house cleaning       Brisk             Maxx  
  • 18. • Total MS after the 2nd year – 13% (average) but at the end of the 2nd year MS should approach 15% • Profit margin after the 2nd year – 8,5% • Innovations at the end of the 2nd year – e.g. more intensive fresh scent 18 Future plan 19.3.2015
  • 19. Strategic Marketing & Innovation Nov 25, 2010 19.3.2015 THANK YOUTHANK YOU FOR YOUR ATTENTION!FOR YOUR ATTENTION! ….and
  • 20. 20 Back-up Financial chart 19.3.2015 • Consumer promotion (Cost $M) • 1: Cost of studies • 2: Internet + Introductory Price Reduction (snížení výnosu za prodaný kilogram * počet prodaných kil v daném měsíci * podíl hypermarketů a supermarketů) • 3: Internet + Introductory Price Reduction (vysvětlení viz 2) • 4: Internet • 5: Internet + Discount (snížení výnosu za prodaný kilogram * počet prodaných kil v daném měsíci * podíl hypermarketů a supermarketů) 1 2 3 4 5 6 7 8 9 10 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC   TOTAL 30 0 56 102 10 102 0 105 10 118 197 197   926
  • 21. 21 Back-up Financial chart 19.3.2015 1 2 3 4 5 6 7 8 9 10 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC   TOTAL 30 0 56 102 10 102 0 105 10 118 197 197   926 • Consumer promotion (Cost $M) • 6: Internet + Bonus Pack (počet prodaný kil v měsíci * očekávaný podíl 6 kg balení / počtem kilogramů v balení (6) * cena přibaleného gelu * podíl hypermarketů a supermarketů) • 7: Internet • 8: Internet + Discount (vysvětlení viz 5) • 9: Internet + Drawing Promotion (počet prodaný kil v měsíci * cena dárku * podíl hypermarketů a supermarketů * (očekávaný podíl 4KG balení/počtem kilogramů v tomto balení (4) + očekávaný podíl 6KG balení/počtem kilogramů v tomto balení (6))) • 10: Internet + Drawing Promotion (vysvětlení viz 9)
  • 22. 22 Back-up Goals 19.3.2015 * Brands belonging to this category are not so well-established, they have less loyal Consumers, it could be easier to get the required MS.
  • 23. 23 Back-up TA – Sizing - Price 19.3.2015 • TA - reasons why? – Mainly women buy detergents – Detergents of a lower quality are mainly bought by people with lower incomes – Younger people have lower incomes • Why to offer the size of 2 kg? – Goes round 1 month on average – People buy this size just for trial first – Complete competition for Momo (also in all sizes) • Price - reasons why? – In the sizes of 4 kg and 6 kg consumers from a low- and mid- tier category buy approximately 65% of the total volume -> suitable to try to gain MS with a lower price
  • 24. 24 Back-up Media 19.3.2015 • TV Performance – Jan 05 + Jun 05 + Sep 05: Production of a new TV spot (supposed that it will take 2 months) – Mar 05 + Apr 05: Product launch campaign – May 05: Competition for Momo, brand awareness – Jun 05: Lower price support – July 05: People on holiday, they usually do not watch TV in this period – Aug 05: Our campaign overtakes Momo´s campaign – consumers stock up with our new detergent on the basis of our TV campaign and consequently they will not respond to Momo´s campaign – Sep 05: Competition for Momo, brand awareness – Oct 05: Lower price support – Nov 05 + Dec 05: X-mas advertisement – the aim is to attract people to come and buy our new detergent and they will get a special present
  • 25. 25 Back-up Promotion 19.3.2015 • NO SAMPLING (Mar -> Apr 05: trial strategy) • Ineffective • Useless for our detergent (it doesn´t try to be the best on the market) • More advantageous to make consumers buy 2 kg size directly because our new detergent will be sold for a really low price • NO GIFT AT 1,5 l PACKAGE (Nov 05 + Dec 05: loyalty strategy) • The exceptional reward for consumers who are willing to buy a bigger package • Our aim is to make consumers buy a bigger package • NO RETRIAL STRATEGY • Left out because the period is too short • Basically the same process as a trail strategy • It´s just about naming
  • 26. 26 Back-up Shelving I 19.3.2015 Old share New share Momo 28 25 Citron 21 19 Maxx 17 17 Brisk 0 10 Others 34 29 Old share New share Momo 30 26 Citron 25 22 Maxx 20 20 Brisk 0 10 Others 25 22 • Hypermarket • Supermarket
  • 27. 27 Back-up Shelving II 19.3.2015 Old share New share Momo 38 32 Citron 17 16 Maxx 15 15 Brisk 0 12 Others 30 25 • Small food • NO 1,5 l PACKAGE ON SHELVES • People usually don´t look for news in traditional shops • Esp. small village shops where older people usually do their shopping but they probably won´t buy a liquid form • People from our TA who come home late could be interested but the percentage of such convenience stores (only 15%) is so low that it wouldn´t be worth placing a liquid form there
  • 28. 28 Back-up Merchandising I 19.3.2015 • Leaflets – timing: – Mar 05 + Apr 05: information about introductory price reduction (4 rounds) • 2nd + 3rd week • 1st + 4th week – June 05: information about lower price (1 round) – Aug 05: information about bonus pack (2 rounds) • 2nd + 3rd week – Oct 05: information about lower price (1 round) – Nov 05 + Dec 05: information about drawing promotion (4 rounds) • 2nd + 3rd week • 2nd + 3rd week
  • 29. 29 Back-up Merchandising II 19.3.2015 • Pyramids – timing: – Mar 05: 2nd + 3rd week: pyramids reflected new product launch – Aug 05: 2nd + 3rd week: pyramids highlighting bonus pack – Nov 05 + Dec 05: 2nd + 3rd week: pyramids highlighting drawing promotion (4 kg, 6 kg + gift) + special Christmas poster to attract more people • Racks, shelf flags – timing: – June + Oct 05: lower price highlighted – Apr 05 – 1st + 4th week: new product launch reminded On display only for a period when the appropriate leaflet is valid!!!On display only for a period when the appropriate leaflet is valid!!!
  • 30. • Ad 2) System of rewarding: – Points gained for successful sales, further evaluation with respect to stock, mark and exposure: • Displays regularly refilled, no empty space on shelves • Displays (+shelves and detergents themselves) duly labeled • Displays placed in, for consumers, very well visible places – Evaluation carefully carried out by sales reps – Points regularly recorded – Depending how many points an owner gets during a certain period (3-5 years), he´ll be free to pick a gift from a catalogue • Holiday • Luxurious pen • Bicycle • … 30 Back-up Traditiona trade 19.3.2015
  • 31. 31 Back-up Shop in shop 19.3.2015 • Detergents (6/7) – The biggest category – On the right side because most of people are right-handed, plus they subconsciously respect “traffic rules” (driving on the right side) • Stain removers (1/7) – The closest category to detergents – It mustn’t optically push out detergents • Fabric softeners (3/7) – Suppose that when a consumer needs to buy a detergent, once he gets to the end of the shelf with detergents, he realizes that he needs to buy a fabric softener as well, he doesn´t have to go back at the beginning of the aisle, he can just cross the aisle and gain its softener quickly • House cleaning (4/7) – It fits in very well with the 3 previous categories – It belongs to cleaning stuff

Editor's Notes

  1. Objectives To stop the decline of the MS of the brand Maxx. To support the brand by the accompanying communication campaign. To launch a new kind of detergent that will not compete with Maxx. This means that our strategy will be to avoid cannibalization of our current brand.   Goals To keep the MS of the brand Maxx at the same level, i.e. 20%. To gain 8% MS (760 MSU/6 080 000 kg) with a new detergent from the following parts of the market: Distinguish between MS at the end of the year (Dec 05) – 12,6% - and MS/year (total) – 8%. Momo – 3% MS. Any other brand – 5% MS (brands belonging to this category are not so well-established, they have less loyal consumers so it could be easier to get the required MS).
  2. Customer strategy Women 22-34 with lower incomes (less than 185 000 HUF) Reasons why? Mainly women buy detergents. Detergents of a lower quality are mainly bought by people with lower incomes. Younger people have lower incomes.
  3. Product strategy Option III. – reasons why? With respect to the fact that our brand no. 1 Maxx belonging to a high-tier category is the biggest competitor for the brand Citron, a new detergent should be rather a competitor for the brand Momo that is currently without more significant competition. Consequently a new detergent will be launched as a low-tier product. By choosing this strategy we will not compete with our own product but on the contrary we will be trying to decrease Momo´s MS.
  4. Sizing strategy A new detergent will be available in all sizes in order to address as a large group of consumers with different purchase habits as possible. This means that it will be at disposal in a powder form in the sizes of 2 kg, 3 kg, 4 kg and 6 kg as well as in a liquid form in the size of 1,5 l. The size of 2 kg goes round for one month on average. First people buy 2/3 kg size just on trial. Competition for Momo (it is also offered in all sizes).
  5. Pricing strategy The price of a new detergent in the sizes of 2 kg and 3 kg and in a liquid form will be 4-5% higher than the price of the brand Momo. In the sizes of 4 kg and 6 kg at the same level as the price of Momo. We would like to provide our consumers with a better quality for a comparable price with respect to Momo. In the sizes of 4 kg and 6 kg consumers from a low and mid-tier category buy approximately 65% of the total volume, therefore it is suitable to try to gain a higher MS with a lower price. In a liquid form a new detergent has a quite low fixed cost which we can use for setting a lower price and introducing this form to a wider public. We will prefer high-low pricing because especially our consumers from a low-tier category are very sensitive to promo actions connected with a price cut-down.  
  6. Pricing II Hypermarket/supermarket high – low, with respect to Momo setting in respect to our media campaign and promo actions Small Food original price (see pricing strategy)
  7. Media strategy Beginning: March 05 (approx. 1,5 months after the beginning of distribution) Direct competition for Momo TV Performance Jan 05 + Jun 05 + Sep 05: Production of a new TV spot (supposed that it will take 2 months) Mar 05 + Apr 05: Product launch campaign May 05: Competition for Momo, brand awareness Jun 05: Lower price support Jul 05: People on holiday, they usually do not watch TV in this part of summer Aug 05: Our campaign overtakes Momo´s campaign – consumers stock up with our new detergent on the basis of our TV campaign and consequently they will not respond to Momo´s campaign Sep 05: Competition for Momo, brand awareness Oct 05: Lower price support Nov 05 + Dec 05: X-mas advertisement – the aim is to attract people to come and buy our new detergent and they will get a special present Internet Time parallel with TV campaign Websites for women (focused esp. on women on maternity leave, housewives), advertisement similar to TV advertizing in the form of flashbanners   Magazines for women June -> Aug 05: Holiday time, people prefer reading magazines while they are sunbathing Nov -> Dec 05: Women buy magazines due to recipes for X-mas cookies that can find inside
  8. Promotion strategy Mar -> Apr 05: trial strategy Focus on introductory price reduction No sampling – too ineffective, doesn´t pay off, it´s more advantageous to make consumers buy 2 kg size directly because our new detergent will be sold for a really low price Aug 05: loading/stocking strategy – basic explanation above (media strategy) Bonus pack (1+1 free: 6 kg + 1,5 l), it makes consumers try a liquid form, too Nov 05 + Dec 05: loyalty strategy Drawing promotion 4 kg, 6 kg + gift (price: $2) good idea because everyone expects a free gift before Christmas gift won´t be added to 1,5 l package cause its price is almost the same as the price of the size 2 kg which we don´t want to provide with a gift (a gift wouldn´t be then the exceptional thing for consumers who are willing to buy a bigger package), our aim is to make consumers buy a bigger package Retrial strategy – has been left out – the period is too short, basically the same process as trail strategy, it´s just about naming
  9. Merchandizing Hypermarket/supermarket Leaflets – timing: Mar -> Apr 05: information about introductory price reduction has to occur in the first set of flyers (in total 4 rounds) June 05: information about lower price for this month, 1 round Aug 05: information about bonus pack (1+1 free: 6 kg + 1,5 l), 2 rounds Oct 05: information about lower price for this month, 1 round Nov 05 + Dec 05: information about drawing promotion (4 kg, 6 kg + gift), in total 4 rounds Pyramids – timing: Mar 05 – 2nd + 3rd week: pyramids reflected new product launch Aug 05 - 2nd + 3rd week: pyramids highlighting bonus pack (on display only for a period when the appropriate leaflet is valid) Nov 05 - 2nd + 3rd week: pyramids highlighting drawing promotion (4 kg, 6 kg + gift) – special Christmas poster to attract more people Dec 05 – 2nd + 3rd week: pyramids highlighting drawing promotion (4 kg, 6 kg + gift) – special Christmas poster to attract more people Racks, shelf flags – timing: June + Oct 05: lower price highlighted Apr 05 – 1st + 4th week: new product launch reminded    
  10. Maxx is our priority, therefore it has to be supported by the placement on shelf. Reasons why? Once consumers enter the aisle with detergents, Maxx has to be the first detergent they meet – the best quality If consumers are about to decide between a cheaper (Brisk) and a more expensive (Citron) detergent, they will choose Brisk Brisk has to be placed next to its biggest competitor Momo on teh shelf – it enables consumers to compare both detergents MS of the particular detergents was respected while shelving management was applied The heaviest detergents at the bottom of the shelf, the lightest detergents at the top of the shelf
  11. People subconsciously look lower if they want to buy a cheaper detergent. Maxx is our priority, therefore it has to be supported by the placement on shelf. Reasons why? Horizontal brand block is typical for supermarkets Eye level – high tier Waist level – low-tier Floor + stretch level – especially private labels If they cant be in one shelf with respect to the MS -> blocks can be created
  12. Small food – sizes on shelf: 2 kg + 3kg; 1,5 l – NO (why? -> you usually don´t look for news in a small shop, this kind of shop is represented esp. by really small village shops where older people usually do their shopping but they probably won´t buy a liquid form, our possible target group could be people coming home late from work but the percentage of such shops is so low that it wouldn´t be worth placing a liquid form there) Reasons why? Horizontal brand block Eye level – high tier Waist level – low-tier Floor level – others If they cant be in one shelf with respect to the MS -> blocks can be created
  13. Modern vs. traditional trade 5 tools for introduction of a new detergent to successfully launch it at traditional trade: Own displays directly in a shop That would help us to be distinctive from our competitors. We wouldn´t have to solve any problems with placing of our detergent on shelves. Higher value gifts for a shop owner Owners of traditional shops would be motivated to refill displays with our detergents regularly. Owners of traditional shops would be motivated to place racks with our detergents in, for consumers, very well visible places. Thanks to these strategic steps consumers should notice our detergents earlier than the other detergents (1st moment of truth) What about a reward for owners of traditional shops? It would be created a sophisticated system of points. Each owner would have a possibility to gain special points for successful sales, plus he would be also evaluated with respect to stock, mark and exposure of our detergents in a shop: Displays have to be regularly refilled, no empty space on shelves Displays, particular shelves and detergents themselves have to be duly labeled. Displays have to be placed in, for consumers, very well visible places. Evaluation would be carefully carried out while sales reps were visiting shops. After each visit points would be recorded. Subsequently each owner would be able to pick a gift from our gift catalogue (holiday, luxurious pen, bicycle…). It would always depend how many points he would get during a certain period of time (rather longer, approximately 3-5 years). POS materials, leaflets in shops There would be provided the explanation why our detergent is better. Racks with flyers at cash desks. Promo actions Lower prices (time parallel with hyper/supermarkets) Local sales teams They would care about traditional shops only. Personal relationship between an owner of a traditional shop and a salesman would be developed. Owners of traditional shops would more trustworthy and approachable what concerns local salesmen.
  14. Shop in shop – why? Detergents (6/7) The biggest category On the right side cause most of people are right-handed and they subconsciously respect “traffic rules” (driving on the right side) Stain removers (1/7) The closest category to detergents It mustn’t optically push out detergents Fabric softeners (3/7) Suppose that when a consumer needs to buy a detergent, once he gets to the end of the shelf with detergents, he realizes that he needs to buy a fabric softener as well, he doesn´t have to go back at the beginning of the aisle, he can just cross the aisle and gain its softener quickly. House cleaning (4/7) It fits in very well with the 3 previous categories It belongs to cleaning stuff.