THE PROCTER

THE PROCTER - Transcript

THE PROCTER GAMBLE CANADA A
THE FEBREZE DECISION
HISTORY OF PROCTER GAMBLE
Procter and gamble P G company started as a family partnership in the year 1837 which was emerging as a multinational company with US438billion in sales in 1999 With 300 well known brands such as Tide Crest and the list of the products goes on These products are present over 140 countries enjoying the royality
PROBLEM STATEMENT
As P G Company was restructuring that has been organized in seven Global Business Unit GBUs each representing the brand category and eight Market Development Organization MDOs
P G was thinking of launching a cleaning product called FEBREZE in mid march 1999 but there were some problems regarding the launch of Febreze product in Canada which are stated below
Lynn Mepham the marketing director of new business development coming from a sound background was unable to decide whether to launch the product or not
Procter Gamble had not launched a new product for the past ten years but still it was enjoying a good revenue in the market
P G Canada was not very excited about this project with fewer resources because Febreze seems small when compared or contrasted with volumes of brands
Lenn Mepham was confusing about should she launch the product or not due to internal conflicts
MDO Market Development Organizations statics were not infavour of Febreze to be launched as it seemed to be a small business opportunity The cost of launching the product was higher than the model volume predicted
The Canadian marketing research tool MRD was not able to predict the correct product success rate As the model was old
As per US statistical data the predicted revenue was only Cdn 5 5 million which was not sufficient to pay back the investment in said period of 42 months
As it would not be a great idea to launch this product because there should be a minimum revenue of 10 1 million to be raised out of the investment but the maximum predicted revenue per annum is only Cdn 7million
Young Quek had announced that he would be stepping down as P G Canada s president on July 31 1999
It would be an expensive process for the organization to do the product research and grass root promotion which they have never done before
SWOT ANALYSIS
STRENGTHS
Febreze is one of its kind of product first to be launched in Canada
Since febreze is going to be launched by P G which has a very good for the household product in the market
WEAKNESS
Information got from the us market is not sufficient to know if it is right to launch in Canada or not
For Febreze product only two people were assigned to work on the product
P G Canada were not interested to launch the product because whatever resources they were possessing they wanted it to be used in bigger projects
OPPORTUNITIES
No comparable product in Canadian market
THREATS
Febreze was small in volume in comparison to another product of P G
As technology is growing competitors will come up with new innovative products
SOLUTION OF THE CASE STUDY
After going through the case study there were three solutions suggested by P G Canada team I would go for the third option as per they decided Wait another four to six months for the U S launch giving Canada the opportunity to asses U S results and better evaluate the opportunity for Febreze in Canada
This is because M D O was unable to find out the enough statically data for the better launching of the product As if we wait for the U S result and can get a clear picture whether the product is doing good or not and on the basis of the information which will help Procter Gamble Canada A to decide to launch the Fabreeez will be success or not compare to the other products of Procter Gamble