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Case #9
Procter and Gamble In
Europe
Group#6
Group 6 Members
Ha Phuoc Vu
M997Z244
Nguyen Tran Thao Bien
M997Z213
Patlada Sae-Ching (Nan) Nuntanut Sae-Ching (Vee)
M997Z240
M997Z236
Bui Duy Duc
M997Z202
Thai Luong Thu
M997Z221
Outline
1/ Introduction
2/ SWOT Analysis
3/ Marketing Strategies
4/ Conclusion
GROUP#6
INTRODUCTION
GROUP#6
Introduction
Started in 1837 by
William Procter and
James Gamble as a
manufacture to produce
soap and candles now is
one of the largest global
companies in the world
which produces
consumer products and
aims at improving the
lives of people over the
world as today same in
the future
Introduction
P&G OF THE 21st CENTURY IS:
• one of the biggest transnational
companies in the world,
• a perfectly managed business in retail
environment,
• he company with its strong presence in
the countries on all the continents,
Introduction
300 different
brands
around 5 billion
customers around
the world
138,000 employees
in more than eighty
countries
Introduction
P&G OF THE 21st
CENTURY IS:
• the 8th largest
corporation in the
world by market
capitalization,
• the14th largest US
company by profit.
SWOT ANALYSIS
GROUP#6
Strengths
• Strength from its brand.
• Strength from the team of researchers
• Invest a lot of resources into R&D
Strengths (cont’d)
• Heavy investment in technology, product
design and human resources
• It has large market shares in the market
• Strength in the advertising, promotion
Weaknesses
• The competition on prices with local brands
• not create the differences in the
identification of its product lines.
• no significant difference with the products of
competitors
Opportunities
•
•
•
•
Well defined market niche
just in time manufacturing technology
wide range of demography
the removal of trade barriers in some
foreign countries.
Threats
• New entry into the household product industry
• Use of substitute products.
• Unfavorable business laws and political
instability
• Investors do not like uncertainty
MARKETING STRATEGIES
GROUP#6
Marketing Strategies
Launch product in European Market
• To be success in European market requires :
- Greater co-ordination was needed between
local markets in Europe.
- Maximizing efficiency across countries.
- Pooling know how and manufacturing with
better economies of scale.
Marketing Strategies
Launch product in European Market (cont.)
• P&G introduce concept “Euro-balancing”.
• Euro-balancing:
– As much standardization as possible, as little
localization as necessary.
– Still need some localization due to market
conditions still vary widely within Europe.
Marketing Strategies
Launch product in European Market (cont.)
• Marketing objectives :
– To compete with important competitors like
Unilever, Colgate and L’Oreal.
– Gain recognition and increase its market share
and revenues in European market.
– Strengthen their position in European market to
be a market leader.
Marketing Strategies
Launch product in European Market (cont.)
• P&G introduce a new hair care technology
(BC-18) to the European market.
• This product was previously introduced in
USA.
• BC-18, a technology enables a combination of
a shampoo and conditioner in one product.
Marketing Strategies
Launch product in European Market (cont.)
• Shampoo and conditioner segment in European
market:
– Steady growth of the shampoo and conditioner in
European market.
– Less people use conditioner when compare with
USA.
– The number of suppliers and brands was even
more crowded than the US market.
Marketing Strategies
Launch product in European Market (cont.)
• Position product as a time-saving, easy to use
product.
• Placing product in the premium-priced
segment.
• Conduct consumer research to figure out
following questions :
Marketing Strategies
Launch product in European Market (cont.)
• Conduct consumer research to figure out
following questions (cont.):
– What brand name to introduce in the individual
European markets.
– Whether a 200ml bottle, used in the USA, would
be accepted by the European consumer.
– Price sensitivity at premium pricing.
Marketing Strategies
Launch product in European Market (cont.)
• The result is there were no significant
differences between countries.
• Then P&G can launch standardize product to
European countries follow P&G’s concept
“Euro-balancing”.
CONCLUSION
GROUP#6
Conclusion
• From the given data, the
consumer test in Europe showed
that European countries are not
that different from each other.
This means that P&G can
implement their homogeneous
concept of “Euro-balancing” (less
localization and more
standardization for the European
region).
Conclusion
• The consumer test data is very important
since it has indicated that there is a market
for a shampoo and conditioner in the whole
European region. And analysis showed that
the countries did not differ much, therefore
we can generalized the product (eg, bottle,
name, volume, fragrance) and this would
mean economies of scale thus reducing
cost.
Conclusion
• We have concluded that for P&G to enter
the market in Europe it should first analyze
carefully if the market is ready. And as we
saw from the data, we can say that P&G
found that the markets in Europe is
fragmented by cultural differences and
geographically but we think that, as
consumers, they the European population
has the same taste and preferences.
Conclusion
• This would mean that P&G
should introduce their products
with less localization and more
standardization to maximize
income, minimize add-on cost
due to differing product
preferences and popularize its
brand name in the European
Union.
Thank you for your attention!