Company Background History In the 19th century, William Procter and James Gamble emigrated to America and both settled down in Cincinnati. In 1837 the candle-maker Procter and the soap-producer Gamble founded a new enterprise: Procter & Gamble. After the 2nd world war, Procter & Gamble changed from a mainly North America oriented company to a real global player. Due to the rapidly changing environment, the new focus is put on emerging markets (like India) and totally new markets (e.g. China). Today, Procter & Gamble operates in the sectors: Laundry & Cleaning, Paper Products, Tissue & Towels, Health & Beauty Care, Cosmetics & Fragrances, Pharmaceuticals, and Food & Beverages. This includes leading brands like Ariel, Rejoice, Crest, Pampers, Olay, and . . . Pantene. In 1995, P&G's products were sold in more than 150 countries and total sales exceeded 33 Billion USD. Functions P&G distinguishes amongst different functions like Research&Development, Marketing, Finance etc. All these functions have to work together to make a product-launch a success: Marketing Starting point of an initiative is the work of Research & Development and Market Research. If there is a product that meets consumers' needs, the Marketing department contacts the consumers and makes them aware of the product. Therefore, Marketing develops a Marketing concept and evaluates market potential. Key marketing figures are awareness, trial, and repurchase: 1) Awareness is the first step of selling a product. Only if consumers are aware of a product they might buy it. The awareness rate is the percentage of the target group who are aware of the new product. 2) The trial rate is the percentage of awared consumers, who buy the product. 3) The repurchase rate is the percentage of consumers who, after having tried the product, continue to purchase it. By applying different instruments, Marketing creates awareness of Procter & Gamble's product, generates trial in a first step and maintains awareness and cements loyalty (i.e.repurchase) thereafter. Media is the most important marketing tool. Main purpose of media is to create and maintain awareness. TV has the advantage that the message which should be transmitted can be more complicated. By using pictures, the benefits of a new product are conveyed best. Moreover, this media instrument is very successful in building up a special image associated with the product. Another instrument is a sampling campaign. Small sizes combined with an information leaflet are distributed to households. This method of creating trial is more effective as you contact the consumers directly. In order to build and stabilize volume the consumers have to purchase the product again. Whether the consumers buy the product again depends on a lot of different factors, for example: Are the expectations associated with the product fulfilled? Is the product available in the stores the consumer goes shopping to? Is the price acceptable?
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