123 School Work

P G fabric softener

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  Executive summery
  
  In 1987, P&G Germany had to face the problem of eroding sales volume and market share for Lenor fabric softener. In order to deal with the problem, an innovative idea as refill package was discussed. The issues concerning the new product were how to launch the product to fit best the German market and its growing concern to environmental protection; How to apply P&G's philosophy of superior quality and doing the right thing with the new product. Conflicting idea raised by senior management was whether P&G should not react at all and choose the 'do nothing' approach.
  In case of launching the new refill package, several issues need to be discussed:
       To what extent should P&G take environmental issues under consideration
       Whether to launch new product or to aggressively promote an existing one
       Which package design answers best the consumers needs
       Should P&G create new line under one brand name to deal with environmental issues
       How to deal with government regulations
  
  According to our analysis of the current market (consumer behavior, competitors' conditions, risks, stakeholders' reaction etc.) and according to our financial analysis, as will be discussed extensively in the next chapters, we recommend:
       P&G should launch the new refill package instead of aggressively promote the existing concentrated formula.
       The design P&G should use for the new product is the laminated carton (Ecopack should be considered only on later stage)
       P&G should advertise and promote the refill package aggressively through a package of marketing communications with P.R. efforts to seize the opportunity for strengthening both brand and company image.
  
  
  
  
  
  
  
  
  
  
  
  To Do or Not to do the Refill Package Launch -- Risks Assessment
  
  "Do Nothing"
  Though the German market is the largest one fabric softener market in Europe, the local pie is shrinking due to the ascending concern of consumers for environment safety, indicated by the declined trend of fabric softener users by almost 6% annually...