PG Ldl Case - 5558 Words

Procter Gamble Company (A) In November 1981, Mr. Chris Wright, Associate Advertising Manager of the Packaged Soap Detergent Division (PSD) of the Procter Gamble Co. (PG) was evaluating how the division could increase volume of its light-duty liquid detergents (LDLs). 1 The excellent growth of Dawn dishwashing liquid since its national introduction in 1976 meant that PG now manufactured and sold three leading LDL brands, holding a 42% share (by weight) of the industry’s $850 million in factory sales. Based on input from the three LDL brand managers who reported to him, as well as his own knowledge of the LDL category, Wright believed there were three major opportunities for volume growth: (1) the introduction of a new brand, (2) a†¦show more content†¦This information was key in helping the brand groups to recommend action which would maximize volume and profit growth. Advertising services department. Within the department, there were nine staff groups which serviced the advertising department . These were market research, art and package design, TV commercial production, media, copy services, field advertising, marketing systems and computer services, promotion and marketing services, and advertising personnel. PSD market research included the following: 1. Market analysis, including bimonthly syndicated market data that PG purchased from A.C. Nielsen Co., as well as selected data purchased from Nielsen, Selling Areas Marketing, Inc. (SAMI) and other suppliers for test markets. 2. Consumer research, including studies to: a. monitor how consumers used products and track consumer usage of, attitude towards, and image of PG and competitive brands; b. test the performance of current products and possible product modifications under in-home usage conditions; and c. evaluate the advertising, packaging, promotion and pricing of PG brands; also, to evaluate the potential of new-product ideas, using such techniques as concept research and simulated test markets. Light-Duty Liquid Detergents During the 1940s, most U.S. consumers used powdered laundry detergents to wash their dishes. Research indicated, however, that consumers foundShow MoreRelatedThe Light Duty Liquid Detergents (Ldl) Market1428 Words   |  6 PagesI. Executive Summary Chris Wright, associate advertising manager of Packaged Soaps and Detergents (PSD) division at Procter and Gamble (PG) needs to evaluate how to increase the volume of its light duty liquid (LDLs). 3 alternatives for volume growth are considered for analysis based on the market segment (price/ performance/ mildness): (1) introduction of a new brand, (2) product improvement of an existing brand and/or (3) increased marketing expenditures on existing brands. Ultimately he mustRead MorePG, Light Duty Liquid Detergents2257 Words   |  10 Pagesi)Budget Allocation: The LDL managers of Ivory Liquid, Dawn, and Joy spend about half of their marketing budget in advertising and with a lower share on promotion. This is different from the strategy of Colgate Lever, who spends a higher percentage on promotion. The marketing budget for H-80 is $60 million for the first year, which includes $18 million on advertising, $37 million on promotion, and $5 million of miscellaneous marketing expenses. ii)Scheduling of LDL Promotional Events: TheRead MorePG, Light Duty Liquid Detergents2266 Words   |  10 Pagesi)Budget Allocation: The LDL managers of Ivory Liquid, Dawn, and Joy spend about half of their marketing budget in advertising and with a lower share on promotion. This is different from the strategy of Colgate Lever, who spends a higher percentage on promotion. The marketing budget for H-80 is $60 million for the first year, which includes $18 million on advertising, $37 million on promotion, and $5 million of miscellaneous marketing expenses. ii)Scheduling of LDL Promotional Events: TheRead MoreCase Study About Procter and Gamble Company1228 Words   |  5 PagesProcter and Gamble Company Case Analysis This case study analysis focused on Procter and Gamble Company’s marketing plans and strategic options on its light-duty liquid brands (LDL). Procter amp; Gamble is the world’s largest producer of household and hygiene products. By 1981 Pamp;G operated in 26 countries and sales totaled $11.4 billion with 90 consumer and industrial products manufactured in the United States. 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