Proctor & Gamble: Vizir Launch

Proctor & Gamble: Vizir Launch

Problem

Proctor and Gamble is planning to launch Vizir, the new HDL only in Germany or as a “Eurobrand”.

Issues

• Germany or Europe: Should P&G launch the product only in Germany or make it a “Eurobrand”

• Market dominated by powdered detergents. Thus, selling a liquid detergent would mean changing the washing habits of the consumer.

• Coordinating the activities between different subsidies.

• High competition from multinational and local firms.

• Appropriately positioning the Vizir so that it does not hamper the sales of its sister product Ariel

• Since a liquid formula is easy to copy, it’s very easy for competitors to enter this market segment. Thus, the decision to launch the product should be made soon.

• Different washing habits of consumers across different countries.

Market/Industry Analysis

The washing habits in European market were not only different from the ones in America, they differed from one country to another in Europe itself. Similarly the market structure was also very diverse within Europe.

• Top 5 grocery stores accounted for 65% of total retail volume in Germany, where as the corner shops in Italy were still very important

• Access to television was another point of contract in European countries. On one hand there was unlimited access in UK on the other hand, in countries like Germany, Italy and Holland only a very limited access was provided to companies to air their commercials.

• Several laws prevailed in European countries with affected the market.

Though in 1970s the washing machines almost reached their saturation point and with market going with merely 2%, Proctor & Gamble, enjoyed a market share of close to 21% in countries like Germany, France and Italy, where as in UK it had the market share of 33% and 19% in Italy. Lastly, with European powder detergents being superior along with different washing habits of...