P&G Ldl Case
Procter & Gamble Company (A)
In November 1981, Mr. Chris Wright, Associate Advertising Manager of the Packaged Soap & Detergent Division (PS&D) of the Procter & Gamble Co. (P&G) 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 P&G 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 product improvement on an existing brand, and/or (3) increased marketing expenditures on existing brands. In preparation for an upcoming meeting with Bruce Demill,, PS&D advertising manager, Wright began evaluating the volume and profit potential of the three options. Company Organization The company comprised eight major operating divisions organized by type of product: Packaged Soap & Detergents, Bar Soap & Household Cleaning Products, Toilet Goods, Paper Products, Food Products, Coffee, Food Service & Lodging Products, and Special Products. Each division had its own brand management, sales, finance, manufacturing and product development line management groups. One of the most important responsibilities of the brand group was the development of the annual marketing plan, which established volume objectives, marketing support levels, strategies and tactics for the coming year. The brand manager promoted the interests of his brand while the associate advertising manager assumed responsibility for building the business of all P&G brands in his or her category. The brand groups worked closely with the following four line departments in both the development and the implementation of their marketing plans: Sales: The brand groups and
In November 1981, Mr. Chris Wright, Associate Advertising Manager of the Packaged Soap & Detergent Division (PS&D) of the Procter & Gamble Co. (P&G) 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 P&G 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 product improvement on an existing brand, and/or (3) increased marketing expenditures on existing brands. In preparation for an upcoming meeting with Bruce Demill,, PS&D advertising manager, Wright began evaluating the volume and profit potential of the three options. Company Organization The company comprised eight major operating divisions organized by type of product: Packaged Soap & Detergents, Bar Soap & Household Cleaning Products, Toilet Goods, Paper Products, Food Products, Coffee, Food Service & Lodging Products, and Special Products. Each division had its own brand management, sales, finance, manufacturing and product development line management groups. One of the most important responsibilities of the brand group was the development of the annual marketing plan, which established volume objectives, marketing support levels, strategies and tactics for the coming year. The brand manager promoted the interests of his brand while the associate advertising manager assumed responsibility for building the business of all P&G brands in his or her category. The brand groups worked closely with the following four line departments in both the development and the implementation of their marketing plans: Sales: The brand groups and