THE MARKETING MIX: PRICING STRATEGIES

The Marketing Mix: Pricing Strategies

The Marketing Mix: Pricing Strategies

Introduction

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.

Marketing Mix

Product

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 standardizing to the maximum and implementing localization 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 "Vidal Sassoon", which is an already well-known brand name in the United Kingdom, West Germany and Scandinavia and fits to the criteria mentioned above. It is in the upper market segment and has the established image of a high quality product; it would compliment the new BC-18 product. In instead of "Pert Plus", the European name could be "Vidal Sassoon Plus".

P&G is able to start selling its product right away if it uses the U.S. bottle size of 200ml. This is a good opportunity for the company as it will be able to see how the market is reacting to the new product and whether sales are reaching expectations. Design a construction of a new 250ml bottle should ...