PROCTER & GAMBLE INC.: DOWNY ENVIRO-PAK 【第二組】 102363046黃盈智 102363078李季格
102363110施智明 102363114容嘉麗 102363117黃柏儒
1. Grad Schnurr是否應該推出新產品Enviro-Pak? 零售價和批發價應該訂在何水準?
2. 競爭者可能會有何反應?
The main competitor of P&G has always been Colgate-Palmolive, which forces P&G to be number two in the Canadian market with its Downy fabric softener that obtain 12% market share. After the success of the introduction of Downy Enviro-Pak in the Europe, P&G’s 3 main competitors has also done the same by introduce refill versions of fabric softeners in the Europe.
Canada is the next target market of P&G in trying to introduce the Downy Enviro-Pak to, with concerns from the brand manager Grad Schnurr. There has also been a rumor that Colgate-Palmolive has already been planning to launch their refill packs to the Canadian market before P&G take places. In such a competitive market, “the brand that was able to introduce its environmental package first would gain an enviable reputation as a leading force in fighting the war on solid waste (page.6)”.
3. 新產品和原有產品之間,互相侵蝕的情形是否嚴重?是否會影響Grad Schnurr的底線?
The introduction of the Downy Enviro-Pak has successfully bring up the market share to an excellent 11% while obtaining an significant 26% in the whole Downy business, at the same time, cannibalization occurred because consumers who were originally purchasing the 4-litre bottle has chosen the Enviro-Pak as a substitute, forcing the sale of the 4-litre bottle Downy fabric softeners decline.
At the same time, the overall market share of Downy business has actually grown from 20% to 25% regardless of the decline of sales of the 4-litre bottles, therefore the cannibalization effect of the new introduced Enviro-Pak have on the whole Downy’s business is not a serious one, yet the establishment of the new Enviro-Pak has helped Downy as a whole in gaining more market share.
Achieving a target of obtaining more market share, Grad Schnurr is definitely pleased about the