Procter and Gamble Decision Sheet - Ldl Market

P & G (A) decision sheet

LDL market is a mature market with the introduction of a new brand every 2½years and an average of 2 price brands introduced and discontinued per year. P&G has 42% market share, followed by Colgate-Palmolive with 24% share and Lever brothers with 7% market share. The remaining 27% market consists of mainly generic and private label brands. The market has been segmented based on features of performance, mildness and price.

o Performance Segment:

 35% of category volume.

 Provided primarily a cleaning benefit.

 Greatest growth in the past 10 years.

 Expected to continue to grow at the expense of mildness segment.

o Mildness Segment:

 37% of category volume.

 Provided primarily the benefit of being gentle to hands.

o Price segment:

 28% of category volume.

 Provided primarily the benefit of low cost.

 In decline, but expected to stabilize at its current share level due to increasing consumer price sensitivity resulting from the depressed state of the economy.

 However not expected to grow because most price brands not a good value.

• Case for a fourth brand?

o A new brand is worth consideration considering the success of the performance of brand Dawn which in two years rose to the number two position in LDL category. Also the fact that a new technology for a high performance product had been invented by PDD, a new brand does make sense. However, the new product is estimated to grow at .5% per year