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P&G CASE STUDY

FEELING THE HEAT

Presented By:
Priyanka Chopra (09 PG 162)
Jishnu.S (09 PG 142)
P&G CASE STUDY

A company that improves hygiene, health and


development
Four billion times a day, P&G brands touch the
lives of people around the world.

HQ : -USA
P&G
P&G

A leading consumer goods company


with $39 billion sales.
Marketing approximately 250 brands
In over 130 countries.
P&G Brands
Fabric & Food & Health care Baby care Feminine Beauty
Home care Beverages care care
Ariel Nutristar Actonel Always Olay
Pampers
Alldays
Tide Sunny Didronel Dodot Safeguard
Delight Tampax
Fairy Metamucil Luvs Pantene
Whisper
Dash Pringles Peptobismol Pert Plus
Bonux Crisco Vicks Max Factor
Lenor Jif Crest Cover Girl
MR Clean Olean Blend-a-mend Camay
Folgers PUR Zest
Case Summary

Shareholders and stock-market analyst


pressed P&G to produce new products.

Products like Dryel & Fit failed.

Crest Whitestrips reached $200 million


Product Goal.

Growth Goal of P & G: 4-6% Annual Sales


growth & Double digit earnings growth.
Case Summary

New-ventures unit
Examined $3.3 billion pain-relief market.
P&G : Well aware of pain relief market
– Aleve Pain Reliever (Sold to Bayer)
– Excellent Knowledge in Paper technology (Pampers,
Charmin, Bounty)
“External analgesic” – Long lasting warmth
7 years of Consumer & Scientific testing
Year 2002 - Thermacare heat wraps.
THERMACARE
Cure for: Features:
Portable
Minor muscle and
Air activated- Self heating
joint aches.
Disposable & Hygiene
Overexertion
Low- therapeutic heat
Strains (400 C) for 8 hours.
Sprains Shape : Small pad/Diaper
Arthritis  Lower & Upper Back
 Neck/Arm
Menstrual Cramping  Abdomen
Back pain Biodegradable
MUSCLE AND JOINT
RELIEF
Lower
Back & Hip Heat Wraps
Neck, Shoulder, & Wrist
Heat Wraps
ARTHRITIS RELIEF
Arthritis Heat Wraps
Arthritis Hand & Wrist
Heat Wraps
Arthritis Knee & Elbow
Heat Wraps
Arthritis
Neck & Shoulder
Heat Wraps

MENSTRUAL RELIEF
Menstrual Patches
Functioning of thermacare
Work when consumer Open the Package
Series of Oval shaped heat disc
Heat generating materials: Iron, carbon
sodium chloride, sodium thiosulfate & water
Iron oxidizes, Chemical heat generation.
Paper technology to sustain and control heat-
generating reaction.
Recommendations
By doctors:
Ice pack for 20 minutes, 3-4 times a day, for
few days
Accompanied with Pain reliever drugs/Tabs
Eg: Aspirin
Heat therapy.
By P&G
Wear heat-wrap for 3 hours to 8 hours
Not with lotions and ointments.
Wrapping it up
Planned price $6.99, 25% profit margin to retailers.
Pack : 2 wraps in Back size or
3 Wraps in Neck, Arm / Abdomen Size
Integrated promotion campaign budget $90 million
Hired D’Arcy Masius Benton & Bowls

CHALLENGES
To prevent customers from taking another pill
Educate customers about thermacare and its operation
and benefits.
Different from pain relief strategies
P&G
Question # 1

What are possible target audiences for


Thermacare?
In what buyer readiness stages will these target
audiences be?
POTENTIAL BUYERS
• Arthritis Patients Unaware
• Women
• Groups –Sports Teams Create awareness
• General public

CURRENT USERS
Unaware
• New Product
Promotions & reminder
• Established advertisements
DECIDERS & INFLUENCERS Unaware / aware
Doctors Comprehension
Pharmacist Conviction
Question # 2

What issues will the advertising agency face in


designing messages for the selected target
audiences?

What message “Theme” or “Headline”


Summarizes the positioning that you would
recommend for ThermaCare?
1. Consumer Value Proposition
 Positioning as better than alternatives available.
P&G is renowned for paper technology
- Sustained & Controlled Heat Generation.
 Focusing on target audience & convincing them about the Value
of Product.

2. Calibrate consumer Knowledge


 Educate consumer with marketing message.
Eg : Ecofriendly Product
 Product is framed to meet consumer needs
Eg : Permits easy movement to users
3. Highlight the POD
 Product is capable of fulfilling the desirability of
target audience
Relevance
Distinctiveness &
Believability
Example : Convenient use (3-8 Hrs / day)
Mobility.
4. Credibility of Consumer Benefit Claim
Specific
Meaningful
Unpretentious
Qualified compared to alternatives

Eg : Eco certification – Educate consumer about the meaning of


it.

5. Encourage consumer Evangelism via Consumers Social &


Internet Communication Networks.
Theme :
“ LIVE GREEN , KEEP MOVING ”

“WRAP YOURSELF IN RELIEF”


Question # 3

What recommendations would you make to


P&G and D’Arcy to help them develop an
integrated promotion Strategy for Thermacare?

1. Promotion Mix
2. Message Source
3. Feed Back Mechanism
PROMOTION MIX
 Advertising
 Sales Promotion
 Events & Experience
 PR & Publicity
 Direct Marketing
 Interactive Marketing
 WOM Marketing
 Personal Selling
MESSAGE SOURCE
 Brand Endorser
 Testimonial Advertisement

 Expertise Qualities
 Trustworthiness  Candor

 Likeability  Humor
 Naturalness

 Eg : Dr. Robert Jarvik for Cholesterol


lowering Lipitor drug
FEED BACK SYSTEM

 Online customer feed back system


 Toll free Phone numbers & IVRS
 Sales & Medical representatives
 Intermediaries
 Market Survey
 THANK YOU

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