Procter And Gamble Essay

3254 words - 14 pages

As a trainee working for the laundry detergent brand manager at P&G France, you are being asked the following questions in order to prepare a brand review.

Question1: What have been the main changes on that market during the past year?
Whatever the financial context in France, we can observe that customers are staying loyal to their own brand. The three major leaders, which are P&G, Henkel and Unilever, are keeping their leading position (respectively 27.2%, 20.7%, and 20.3% volume share in June 2011) and the other brands are fighting at the bottom of the graph. However since last year a new competitor is emerging in the laundry industry. As the first graph shows, Henkel is the ...view middle of the document...

1% to June2011: 22.5%). We deduce that promotion have affected sales.
In order to understand how Henkel have succeeded to go over Unilever, we can analyse the distribution in France of the laundry market. The figure 3 shows a very sluggish Weighted Distribution, so we can not consider this point, the figure 4 shows the impact of the promotion, we see that the evolution of the brands are closely related, but we can note that Unilever do a lot of promotion but they are staying third in the past years. So maybe if we do not do too much promotion we can win share value. The graph 4 shows also a counter-weight between the 3 leaders-challengers and the minor brand. We can suppose that during the period of Christmas, laundry detergent are less important purchase for family-customers so the leaders decrease their promotion (November 33.8% to 22.5% in December 2010 for P&G, 35.6% to 21.6% on the same period for Henkel and 39.7% to 22.3% for Unilever) , at the same time the minor brands increase their promotion, maybe they have enjoyed the decrease of the majors aiming to take majors’ market shares. Just after December in January the 3 leaders-challengers reengage a lot of money in order to recuperate their market share. But this change does not explain the evolution of Henkel.
The figure 5 is really interesting because it shows that last year Henkel have set up an action to increase his share of shelf (23.6% July 2010 to 26% august 2011).We have overlooked this point (P&G, share of shelf 28% July to 25.5% in august 2011), so we need to review this point in order to take back and increase our market share. This way, we have brought P&G sales volume closer to Henkel sales volume. This should explain the main change on the laundry market share.
The last figure, figure 6 is interesting too, since one year Henkel have increase his SKU per distribution point, this should lead them to increase the volume share.
We can conclude that the market is very competitive and we need to focus on the next steps in order to keep our market share. The main change is the rise of Henkel but without that the market seems to be very constant.
Question 2: What is your analysis on your brands performance on that period?
We produce 5 laundry brands, each has its own particularities and its own potential customers. For example, Ariel and Dash2en1 are both for customers with a low sensitivity to prices, the first one emphasizes its efficiency and the other one the good sent it lets on clothes, whereas Vizir, Bonus and Gama target customer with a high sensitivity to prices. Each brand has its own proprieties and thus its own strategies.
No doubts that Ariel is the leader brand of P&G. For the last FY1011, Ariel represents 69,25% of the P&G laundry value. Ariel is the brand most represented in stores with an average number of sku’s per distribution point around 22,43, higher than all the other brands. What is important to notice with this brand is...

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