MKT 600 Chapter Notes -Hair Care, Procter & Gamble, Pantene

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7 Mar 2013
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MKT600 Weekly Critique Notes
Global Introduction of the “New” Pantene Shampoo: Success in Taiwan
Case highlights
- Working to globalize products in the following ways:
o Develop products that have global potential
o Strategize for the product to “travel well
o When a product is successful in one country and pushed to another, avoid the “not
invented here syndrome”
o Shorten the time period in which a successful product gets introduced across all
operations
o Development of communication network which enables sharing for successful
marketing innovations
History of the Pantene Brand
- Developed by Hoffman-LaRoche and first introduced in Europe
- Launched in the US in early 1960s
- Premium price even when sold in department stores
- Richardson-Vicks Inc. bought out the brand and moved the link from a high price, selective
distribution one to a lower priced mass market one
- Procter and Gamble bought out the company and phased the product into all major drug
chains, mass merchandisers, and selected food store
- Phased out of department stores
- Drug chains were successful, while mass merchandisers and food outlets were not as
successful
Procter & Gamble in Taiwan
- Joint venture with local company access to established sales and distribution network,
factories, market knowledge, and local contacts
- Operations were not profitable
- Dissolved in early 1990, and P&G Taiwan was born
Hair care market
- Very large
- 96% used shampoo to wash hair, 47% used conditioner
- Market growth at 3% per annum
- 43% of consumers bought shampoo in supermarkets and 23% in discount stores
- Retail margins were 18-19%, wholesale margins 9%
- No consumer or trade promotional activity
- Only 4 brands had more than 5% market share, very fragmented
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Document Summary

Global introduction of the new pantene shampoo: success in taiwan. Developed by hoffman-laroche and first introduced in europe. Launched in the us in early 1960s. Premium price even when sold in department stores. Richardson-vicks inc. bought out the brand and moved the link from a high price, selective distribution one to a lower priced mass market one. Procter and gamble bought out the company and phased the product into all major drug chains, mass merchandisers, and selected food store. Drug chains were successful, while mass merchandisers and food outlets were not as successful. Joint venture with local company access to established sales and distribution network, factories, market knowledge, and local contacts. Dissolved in early 1990, and p&g taiwan was born. 96% used shampoo to wash hair, 47% used conditioner. 43% of consumers bought shampoo in supermarkets and 23% in discount stores. Retail margins were 18-19%, wholesale margins 9% Only 4 brands had more than 5% market share, very fragmented.

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