assP&G1

AssP&G1

revised Aug 31, 1999

Babson College
FW Olin Graduate School of Management

MARKETS & MARKETING
MARKETING SYSTEMS STREAM

Topic: Market Segmentation and Product Differentiation
Case: Proctor and Gamble (A)

Over many years, Proctor & Gamble has repeatedly proven itself one of the most successful marketers of consumer products. P&G succeeds because they develop processes and people that are directed at doing the basics extremely well – in very competitive industries where their rivals are also very astute. In this case we will examine the logic and processes that drive its new product development and marketing efforts by putting ourselves into the middle of the development process for one of their new products.

As you prepare this case, please consider these issues:

What is the LDL opportunity that P&G sees?
How does P&G segment this market? Is there reason to re-conceptualize this segmentation?
What do you think the supply and demend curves for LDLs look like? Try ti draw them.
How can the "Product Attribute Model" help you determine the best segmentation?
What marketing mix will be required to back each option? What are P&G’s product and promotion options? Which option do you like best?
What are the economics of this option? Will it make money?

Please come to class prepared to present the positioning option you like best -- and a plan for its implementation – including its profit economics. Be sure to include consideration of cannibalization of sales of existing products.

In preparation for this class please try to participate in the e-campus on-line discussion of of case issues and and to "vote".