Caso P&G Año: 2013 What principles guide promotion planning at P&G for the light duty liquid detergent category (LDL)? Before analyzing H80‚ it is important to study the broader picture. First of all‚ America’s Light-Duty Liquid Detergent (LDL) is a very mature and steady market. The market’s annual growth is forecasted at a very low 1%. The market has already grown‚ it is highly competitive and product offers are saturated. This means there’s a low maneuvering angle for an out-of-the-box
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full potential. In order for Precision to be a successful product in the toothbrush market the following two objectives must be met: * Increase market share by 8% within 2 years (3% in year 1 and 5% increase in year 2). * Decrease the risk of cannibalization of the Colgate Plus market. * Expand into new geographic markets. II. Situation Colgate Palmolive is a global leader in household and personal care products. The strengths of CP include the following: * Colgate is a well-known brand name in
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1- Introduction Developed and commercialized by Merck‚ Pepcid is a prescription drug for treatment of heartburn. Different from regular antacids that just neutralize acids in the stomach‚ Pepcid belongs to a class of drugs known as H2 receptor antagonists‚ which reduce stomach acid secretion by blocking the histamine H2-receptor on the cells producing gastric acid. Third in the H2’s class to enter the prescription drugs market‚ Pepcid was never able to reverse course and take market leadership from
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BIT HuangFei (Tracy) Zara: a Spanish retailer goes to the top of world fashion Answer1: The international expansion of Zara started with the opening of a store in Portugal in 1988. Through establishment in Portugal Zara acquired international market experience and knowledge and realized that it would have to adjust its business model to suit the new international markets. International sales accounted for 69 percent of its total turnover in 2005‚ with Europe being its largest market by far
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Natural food’s sales expected to grow by 20% Opportunity for lowering customer cost Threats Lack of capital Main competitor (Horizon) is getting stronger No expertise in supermarket channel Company may have to reposition Risk Inter Product cannibalization Problem definition Its problem is that they have to make strategic marketing decisions to grow revenues to $20M from their current $13M before the end of the 2001 fiscal year. Market Topology The Yogurt Market 8 Oz cups and smaller : 74%
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Financial Analysis Launching Clean Edge as a niche product would require significantly less ad expense compared to attempting a mainstream positioning‚ $15 million compared to $42 million‚ respectively. Furthermore‚ there would be significant cannibalization of sales to our current product offerings if Clean Edge were positioned as a mainstream product. 60% of Clean Edge sales would come from Paramount Pro and Avail sales if launched in a mainstream position. While 35% of Clean Edge sales would come
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firm realistically Ans: c Section: Net present value Level: Easy 17.3 When the introduction of a new product takes sales away from the firm’s existing products‚ it is known as _______. a) cannibalization b) sales creation c) transfer pricing d) opportunity cost Ans: a Section: Cannibalization Level: Easy 17.4 When evaluating an investment‚ the MNC should consider the _______ cash flows generated by the project. a) total b) variable c) incremental d) fixed Ans: c Section: Incremental
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Memorandum Date: To: From: Subject: Recommendation: Frito-Lay Sun Chips In conclusion of the ten month test market trial that Sun Chip conducted‚ there at several options are available to the Sun Chip project: Continue in the current test market. Expand to other regional markets. Launch the product nationally. Making adjustments to the marketing mix Abandon the Sun Chip product altogether. Frito-Lay has a benchmark of $100 million in first-year sales for new products. During
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Due to about 90 percent of them being in supermarkets and convenience stores. It is also a pro that they have determined what percentage of each size package and flavor they are selling. In addition they have also determined the percentage of cannibalization that will happen. Another pro is that the cumulative repeat percentage steadily rose every week. Cons A con to these test market results would be that they have only been run for ten months. The results could be ballooned considering that
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cost of production‚ impact of cannibalization and advertisement cost. Alternatives available Niche product • This will increase the diversity of the portfolio. • Less cannibalization of sales from existing products. Mainstream product • Sales volumes for the product will be high. • Existing sales and distribution suitable for this segment. • 60% cannibalization of sales of the existing products
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