P&G

• Brand
Professor Carl Mela Management
System
Marketing 460 • On Building A
Product Management Brand
• Managing
Fuqua School of Business Across Brands

P&G–1
 P&G Options
• New Brand
– Niche
– Performance
– Mild
• Reformulate
– Ivory
– Dawn
– Joy
• Reposition Joy
• Increase Advertising for Ivory
P&G–2
 P&G - What Happened?

• H80 test marketed as Cinch

• Results short of expectation
– Fell 25% short of share objectives
• Lack of follow up support
• Overly harsh, not sudsy, “liquid sandpaper”

P&G–3
 P&G - What Happened?

• Modified in revised test market

– Ad copy focused on tough jobs
– Package from green to white
– Lighter color, more suds
– Endorsement from Corning - would not
scratch
– Volume objectives cut 33%

P&G–4
 P&G What Happened

• Trial 40% greater than 1st test market

• Never reached 11% sales goal
• Reasons
– Growth of Dawn and Sunlight
– Consumer attitudes highly polarized

P&G–5
 P&G What Happened
• Organization 2005
– Much like 1981 with
• Global regions folded into product organization
• Yet sales department by region
– Matrix failed, regional failed
• Issues of coordination and silos
• Committees coordinate now
– Contrast with Samsung
• Region like MDO
• Product like GBU (however, central global brand)
P&G–6
 P&G Take Aways

• Product manager’s role and logic for

that role
– Importance of marketing
– Accountability
• Decisions brand managers make
– P&L
– Marketing plan

P&G–7
How Has P&G LDL Changed?

• Org structure very similar

• Business Review => Marketing Plans
process
• P&G brand portfolio has dramatically
shifted to HABA
• P&G LDL portfolio unchanged

P&G–8
How Has the LDL Market Changed?

• Category continues to shrink

• Consumer pref. roughly same
• Competitive set has shrunk
• Adjacency launches have failed
• Price pressures are intense

P&G–9
 Current Strategy

• Dawn – 3 Tiers of Performance

• Joy – Value Clean
• Ivory – Hand Mildness

P&G–10
Dawn

P&G–11
P&G–12
P&G Performance

New Wal-mart
Inventory Policy

P&G–13
 Exercise

• What are key challenges related to

regionalization facing P&G today?
• Then, let’s hear directly from P&G!

P&G–14
Pantene Relaxed & Natural Packaging

Issue:
The North America Pantene Brand is planning to
introduce a line of products targeted to African-
American women. This collection will be called
Relaxed & Natural. As you (ABM) develop the
proposition, you are faced with a packaging decision.
Should you use the base Pantene (pearl white) package
color or design a different package color (tbd)?

P&G–15
 Discussion Questions

• How would you (as an ABM) approach this

decision?
• What are some of the questions you would ask?
• Any thoughts on how you would come to a
decision?
• Who do you think should have the final say?

P&G–16
 What Happened?
• ABM and team conducted research /
obtained input
– consumer groups
– customer calls
– copy testing (via the verbatims)
– internet package design assessment test
– shelf tests
• BM and Marketing Director consulted and
managed the GM and Global Franchise
Leader’s expectations
P&G–17
 What Happened?

• ABM presented the recommendation to GM

• GM aligned the Global Franchise Leader to the
recommendation
• The GM and Global Franchise Leader
presented the recommendation to the Hair Care
President for final approval as a part of the
launch plan agreement (LPA)

P&G–18