Proctor & Gamble Case Assignment on launching of new brand Answer: If P&G were to go ahead with the launch of a new brand then it has to focus on Performance Segment over the mildness segment and price segments. P&G has about 42% share in LDL market, while his competitors Colgate-Palmolive and Lever Brothers has market share of 23. 6 and 6. 9% respectively. In total LDL market about 72% share by these three companies while only 28% share by small brands and private labels.
As we see from Exhibit-1 & 7 the estimated projection of Performance segment for next 5 years is going to increase from 35% to 37% while mildness segment is going to decrease from 37% to 35%. The price segment is more or less in declining phase and going to stabilize near 29% in next 5 years. Also as per the exhibit -3 & 7 the performance segment brand Dawn of P&G is showing expected growth in the market share. As attribute importance rating in the exhibit-3 , most of the consumers have indicated that performance attributes in the LDL product have more importance than other attributes like mildness to hand and price.
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Also as per market research by PS&D, the most of the consumers are giving more importance to performance attribute of the brands rather than price & other features. Exhibit -9 results shows that 4 weeks blind in-house use test of H-80 new brand , performance attribute rating was highest. The projected growth rate in nest 5 years is highest in performance segment (exhibit-1 & 7 ) and this segment is going to capture it’s volume from non-P brands and price/generic/private labels. Hence P should target Performance Segment to introduce new brand.