...As a trainee working for the laundry detergent brand manager at P&G France, you are being asked the following questions in order to prepare a brand review. Question1: What have been the main changes on that market during the past year? Whatever the financial context in France, we can observe that customers are staying loyal to their own brand. The three major leaders, which are P&G, Henkel and Unilever, are keeping their leading position (respectively 27.2%, 20.7%, and 20.3% volume share in June 2011) and the other brands are fighting at the bottom of the graph. However since last year a new competitor is emerging in the laundry industry. As the first graph shows, Henkel is the challenger that have win market share, in December 2010, Henkel have increase his volume to 24.3% rivalling with P&G (26%) and leaving Unilever (17.7). How can we understand the rise of Henkel last year? We will try to explain this main change by comparing data from value share related to the distribution laundry in France. On graph 1 (figure 1), we can find the laundry market represented by curves. In the past (until 2010) the laundry market was largely dominated by our brand P&G, but during the past year (June 2010 to June 2011), the volume of sales has undergone an earthquake. By analysing this graph we can find an emerging challenger to P&G, which is Henkel. On the second wave we can see a conglomerate of minor challengers that are Colgate, NLN, Reckitt Benckiser and other...
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...P & G Value Pricing Nearly a year after value pricing was transplanted to Europe from the U.S. by Procter & Gamble and Barilla, this strategy of eschewing price promotions in favor of offering shoppers consistently lower prices has been followed by a drop in sales and market share for both companies. A similar thing happened in the U.S. in 1991 when value pricing, or every day low pricing as it is also known, was introduced by P&G. Although sales initially flagged, the packaged goods giant's overall volume market share has for the past three years either held its ground or advanced. But conservative European retailers still need to be convinced. P&G brought 'Every Day Low Pricing' (EDLP) to Germany in early 1996. In response, Rewe, the country's largest retailer, and major supermarket chain Spar have now delisted P&G brands, including its Ariel, Vizir and Lenor laundry products, Bess toilet paper and Tempo tissues. Both retailers continue to order the popular Pampers disposable diaper and Always feminine product brands. According to P&G Germany's annual report for the year to June 30, 1996, sales declined 2% to $4.48 billion, compared with the same period a year earlier, while profit rose by 77% to $72 million. The report noted that sales were down for detergents and cleaning products, but were up for Pampers, Fairy dishwash ing liquid, Always and Tempo. "The development starting this summer shows that the losses we had by launching the EDLP system...
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