Procter and Gamble- Intoduction of new a shampoo on the European market

Essay by M_VB, January 2003

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Procter and Gamble in Europe


Procter and Gamble (henceforth to be called P&G) is an international supplier of consumer goods it is a "global leader in health and beauty care products, detergents, diapers and food" . P&G's presence in the hair care market in the U.S has been strengthened by innovative technology BC-18 and the replacement of an old brand 'Pert' with 'Pert Plus'- a mild shampoo with a fully effective conditioner. P&G decided to introduce BC-18 in Europe. Traditionally, the European market is highly competitive the main rivals are Colgate, Unileaver, and L'Oreal. The European market is segmented (i.e. value based) and sensitive to price changes (i.e. elastic demand).

The introduction of the new product BC-18 brings with it a new marketing strategy for the company. In order to make a valued choice the 4P's of marketing have to be considered. At present, the company must pose and assess several questions:

·What name to use for the new product.

·Bottle size to be used.

·To market the brand as Pan European or regional.

·How to price the product.

·Where to produce and production capacity.


Marketing Mix


BC-18 technology would offer the European consumers 'Great looking hair in a convenient way'. Currently P&G are practicing a strategy called "Euro-Balancing" , it entails the concept of standardising to the maximum and implementing localisation only where necessary. By introducing a single brand name for its potential market, P&G does not have to create new marketing campaigns for targeted countries. The European market is heterogeneous, multicultural and multilingual; therefore, the name chosen for the shampoo should have to no connotations in a particular language's history or religion. Moreover, the name should be easily pronounceable in each culture.

The company is able to use the brand name of "...