P’s Pert Plus: a Pan- European Brand?
Q1. How attractive is the Pan- European market for pert plus in terms of demand potential? Competition? Pan- European market is quite attractive for pert plus in terms of demand as the consumers test results showed that the product concept of ‘wash & go’ their (time-saving benefits) 28% consumers said that they would definalty buy the product that was only 1 percent less then already established bran there Vidal Sasson. Also because they are gradually accepting the idea of 2-in-1 shampoo more and thus it would be beneficial to launch in European market.
P&G’s competitors there are Unilever, Colgate and Lo ‘Oreal. P&Gs own competitor brands are heavily advertised there by European standards. Therefore launch of the product need to illustrate quality and time- saving benefits and also need to educate the market in the use of conditioners further. Q2. What competitive advantages does Pert Plus have? Disadvantages? Competitive advantage for pert plus is the benefits of time-saving and convenient everyday use of the product. Thos benefit is very essential and thus required right positioning.
Inadequate availability of production capacity was a disadvantage for pert plus. Also lead times for alternative pack sizes and designs (250ml preferred size) were also a restriction for them as it would take six months lead time. Q3. Which countries would be the leading markets in Europe? What are the advantages and disadvantages of entering a leading market first? The countries that could be leading markets are Great Britain as it has a high market size for usage of conditioners and shampoos, especially conditioners that is the highest rate among the other 4 countries given.
Therefore they would not have to educate them much about the usage of conditioners but can face tough competition. West Germany has highest rate of value of shampoos and 2nd highest in conditioners (Exhibit 1). Therefore has the potential of being a leading market but would require an innovative marketing campaign and emphasis on pert plus’s competitive advantages. Entering a leading market first has both advantages and disadvantages. Market segmentation is usually a must as competition is intense.
New entrant will have to use niche strategies, positioning their product not in the core of the market but in specialty area. As the product is new it has the chance to develop a new market and gain favorable first mover advantages, something that takes resources, focus and continuous monitoring of penetration. Q4. What does marketing research tell about the price and positioning decision for Europe? Brand choice? Should the BC-18 technology be introduced with a pan-European name, or with local brand names, or even with a mixture of both approaches?
Price and packaging alternatives were tested on only two brands: one brand from the lower-price segment and another brand that had a high quality product concept that is product concepts where possible price sensitivity would be easily detected. According to the market research the consumer were willing to pay the equal price for the selected product (Vidal Sassoon, Shamtu, Pantene, Pert Plus). The new technology “2-in-1” for shampoo and conditioner in one wash, its positioning was same as Vidal Sassoon Shampoo “for great-looking hair in a convenient way”.
The brand choice would be highly not so easy because all the brands are providing the same technology 2-in-1 formula. The BC-18 technology would be introduced with a mixture of both approaches, because P was the first packaged goods companies to go to pan-European. The American company had established a pan-European focus in its R-effort and a system of “lead countries” for pan-European product roll-outs. And plus with a local brand name customer would easily recognized the brand globally.