Sean Zhen Kwong
Procter & Gamble Inc. (P & G) is an American multinational consumer goods company. They are a leading manufacturer and marketer of hair care products industry including Tide, Ivory, Head & Shoulders, along with other popular brands.
Moreover, P& G‘s current objective is to obtain market shares by successfully introducing new formulation products to the consumers in Canada. However, ‘Pert’ is a conditioning shampoo product that was launched successfully in Canada in 1981, but did not gain the 6% share which was anticipated after being in the market for a year. Later, In 1983 P&G decided to rebrand their product and change their advertising and package graphics. However, it still did not meet their expectations.
In order to grow in the Canadian market, P& G is concerned about pricing and the re-launch of the existing Pert product. In addition a situation analysis, marketing analysis and financial analysis gave a clearl picture on the alternative decisions that P&G should take:
1. Offer a more generous trade promotion program in its first year of launching Pert Plus
2. Pert Plus parity pricing with Finesse
3. Pert Plus pricing at a Premium
4. Offer a trade pricing promotion that is less than 20% “off invoice”
5. Status Quo – ‘Pert Plus’ doesn’t launch in Canada, stays in the U.S.
Finally, we would consider all findings resulting from the market, competitive, and financial research, and make a recommendation of by choosing alternative two . However, if recommended alternative fails; then we will implement Alternative one which is offering a more...