How To Avoid Detergent Overdose
Few purchases of any kind are made for entirely rational reasons. Even a purely functional product such as laundry detergent may offer what is now called an emotional benefit say, the satisfaction of seeing one's children in bright, clean clothes. In some product categories the rational element is small. These include soft drinks, beer, cosmetics, certain personal care products, and most old-fashioned products. And who hasn't experienced the surge of joy that accompanies the purchase of a new car 11
'Mv GOD THEY'RE REALLY GOING to use it ' Nabil Sakkab. Procter & Gamble's European head of laundry products development, exclaimed to colleagues as he looked closely at the myriad, tiny pink crystals scattered among a heap of detergent he'd just poured on to his desk. It was mid-March 1994 - the beginning of a protracted nightmare for Unilever, when arch rival P & G discovered the secret ingredient in its super-concentrated Power, a new, revolutionary washing powder Omo Power in the Netherlands, Persil Power in the United Kingdom and Skip Power in France. Power was the biggest advance in fabric detergents in 15 years, and sales of Power were leaping in the three European countries where it had been launched. It
Physical products vary in their potential for differentiation. At one extreme we find products that allow little variation chicken, steel, aspirin. Yet even here, some differentiation is possible Starbucks brands its coffee, and P&G offers several brands of laundry detergent, each with a separate brand identity. At the other extreme are products that are capable of high differentiation, such as automobiles and furniture. Here the seller faces an abundance of design parameters, including 31
PROCTER & GAMBIA is THE market leader in the United States and the European detergent markets. In the United Ktat.es it markets nine brands of laundry detergent (Tide, Cheer, Gain, Dasb, Bold 3, Dreft, Ivory Snow, Oxydol and Era). The cultural and competitive diversity in Europe means that even more brands, such as Ariel, are used to serve that market. Why so many These P & G brands compete with one another on the same supermarket shelves. Why would P & G introduce several brands in one category instead of concentrating its resources on a single leading brand The answer lies in different people wanting different mixes of benefits from the products they buy. Take laundry detergents as an example. People use laundry detergents to get their clothes clean. They also want other things from their detergents - such as economy, bleaching powder, fabric softening, fresh smell, strength or mildness and suds. We all want some of every one of these benefits from our detergent, but we may have...
Responding to a cattle call is expensive. It takes time and effort to supply the laundry lists of detailed project specifications and consultant qualifications that most RFPs require. And, if you make the first cut, you usually have to get through a labyrinth of additional qualifying steps before the final decision is made. If you do win the project, a formal protest by a defeated consultant could delay the project and add to your costs.
Unilever has twice the world-wide sales of P & G and five times the sales of Colgate-Palmolive, hut its American subsidiary trails P & G by a wide margin in the United States. Unilever launched a full frontal assault against P & G in the detergent market while Unilever's Wisk was already the leading liquid detergent. In quick succession, it added a barrage of new products - Sunlight dishwashing detergent, Snuggle fabric softener, Surf laundry powder - and hacked them with aggressive promotion and distribution efforts, P & G spent heavily to defend its brands and held on to most of its business. It counterattacked with Liquid Tide, which came from nowhere in just 17 months to run neck-and-neek with Wisk. Unilever did gain market share, but most of it came from smaller competitors.22
US firms, for example, hold leading market shares Coke leads in soft drinks (60 per cent share), Schick in razors (71 per cent), Polaroid in instant cameras (66 per cent), and McDonald's in fast food. Procter & Gamble markets the leading brand in several categories, ranging from disposable nappies and liquid laundry detergents to acne treatments.
It must maintain a constant watch. Other firms keep challenging its strengths or trying to take advantage of its weaknesses. The market leader can easily miss a turn in the market and plunge into second or third place. A product innovation may come along and hurt the leader - as when Tylenol's non-aspirin painkiller took the lead from Bayer Aspirin or when P & G's Tide, the first synthetic laundry detergent, beat Unilever's leading brands. Sometimes leading firms grow fat and slow, losing out against new and more energetic rivals - Xerox's share of the world copier market fell from over 80 per cent to
The legendary Hotel Delmon-ico, a fine example of New York's pre-war architecture, was converted into the Trump Park Avenue in 2005. The 120 ultra-luxury condominiums range from one to seven bedrooms and are described as having solid oak floors and majestic crown moldings . . . opulent layouts and traditional New York City views. The kitchen and bathrooms make lavish use of marble and the doorknobs are hand-crafted Italian brass. The penthouse has two outdoor terraces, a double staircase, and a huge space for entertaining. The residents' daily needs are served by an attentive staff, including 24-hour hotel-style concierge service. The building has a fitness center and valet laundry service, and is wired for advanced telecommunications.
Protecting market share In the face of market leader P&G's relentless assault in the laundry war, Unilever recently threw in the towel by putting its U.S. detergents business up for sale. Protecting market share In the face of market leader P&G's relentless assault in the laundry war, Unilever recently threw in the towel by putting its U.S. detergents business up for sale.
Distributing flyers can be done by children or teenagers - or anyone looking to make a few extra dollars on a long afternoon. Even nonprofit groups, such as the Boy Scouts or ball clubs looking to raise money to support their team can be enlisted to be your personal 'flyer distribution army.' Just put up an ad in a coin operated laundry, the free ads magazine or local circular and you'll find a lot of takers to handle the foot work.
A brand-extension (or brand-stretching) strategy is any effort to use a successful brand name to launch new or modified products in a new category. Procter & Gamble put its Fairy name on laundry powder and dishwashing detergent with effective results. Swatch spread from watches into telephones. And Honda stretched its company name to cover such different products as its cars, motorcycles, snowblowers, lawn mowers, marine engines and snowmobiles. This allows Honda to advertise that it can fit 'six Hondas in a two-car garage'. MULTIBHANDS, Companies such as Lever Brothers, Mars and Procter & Gamble create individual brand identities for each of their products. Lever's line of laundry detergents - Persil, Wisk, Surf, Radion, etc. - have distinct labels, with the corporate name hardly featured. Similarly, Procter & Gamble produces at least nine brands of laundry products. These manufacturers argue that a multibrand strategy - managing a stable of brand names within the...
MANUFACTURERS1 BRANDS VERSUS PRIVATE BRANDS. Manufacturers' brands have long dominated the retail scene. In recent times, however, an increasing number of supermarkets, department and discount stores, and appliance dealers have developed their own private brands. These private brands are often hard to establish and costly to stock and promote. However, intermediaries develop private labels because they can be profitable. They can often locate manufacturers with excess capacity that will produce the private label at a low cost, resulting in a higher profit margin for the intermediary. Private brands also give intermediaries exclusive products that cannot be bought from competitors, resulting in higher store traffic and loyalty. A good example of a retailer that has created and maintained a successful private brand is Marks & Spencer, with its St Michael label. In Sainsbury's supermarkets, the store's own brand of laundry detergents, called Novon, is marketed alongside products produced...
In July 1995, Mondex International, a consortium of 17 international banks and telecommunication companies from the United Kingdom, Asia, Australasia and North America, pilot tested Mondex - a 'smart card' that acts as a replica of cash - in Swindon, some 100 km west of London, with some 10,000 people, mainly participating NatWest Bank and Midland Rank customers. A second test site - Exeter University, in the west of England -was later added to assess students' and staffs use of the card as a university identification card, library and building security card as well as a payment card for everything from meals to laundry. Mondex officials say the card will be launched nationwide in the UK in 1998. Meanwhile, tests are under way in other consortia members' home countries to assess the international acceptance of the card.ls Whether or not a company decides to test-market, and the amount of testing it does, depends on the cost and risk of introducing the product...
In aider to increase its safes reps1 understanding el its appliances. Whirlpool rented an eight-bedrtwm farmhouse near its headquarters in Benton Harbor, Michigan, and outlined it v.'itfi Whirlpool dtshwashers, microwaves, washers, dryers, and refrigerators. It sent eight new salespeople to live in the house, to cook and do laundry and tiwjsehald chores. When they emerged, ttiey knew a great cleat about WfrripOOJ appliances and gained mere confidence than if they had taken Hie traditional two-week classroom training course.* *
The GREEN product line, consisting of about 60 products, was launched on June 3, 1989. Initial GREEN products included phosphate-free laundry detergent, low-acid coffee, pet foods, and biodegradable garbage bags. (See Exhibit 2.) A holistic approach was taken in selecting these initial products for example, the pet food products were included because they provided a more healthful blend of ingredients for cats and dogs. The GREEN products were offered in a distinctively designed package with vivid green coloring. When the package design decisions were being made, it was learned that 20 percent of the Canadian population is functionally illiterate. Management felt that the distinct design would give these consumers a chance to readily identify these brands.
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