P&G, Light Duty Liquid Detergents
2280 words 10 pagesAdvertising & Promotion
Procter & Gamble (B)
Light Duty Liquid Detergents
May 16, 2009
1.What factors and policies guide promotion planning for the LDL’s?
i)Budget Allocation: The LDL managers of Ivory Liquid, Dawn, and Joy spend about half of their marketing budget in advertising and with a lower share on promotion. This is different from the strategy of Colgate & Lever, who spends a higher percentage on promotion. The marketing budget for H-80 is $60 million for the first year, which includes $18 million on advertising, $37 million on promotion, and $5 million of miscellaneous marketing expenses. ii)Scheduling of LDL Promotional Events: The groups generally …show more content…
c.Couponing: As more and more consumer begin using coupons, Garner must also include the use of this promotion vehicle in the first year. The type of coupon program that offers the cheapest cost per case moved and the largest number of total cases moved is the extended co-op program of mail-in coupons. It is, however, only available to H-80 in the test market 3 months and seven months following introduction; this is a problem for H-80 and other LDL brands because Ivory will be conducting a price-pack promotion while Dawn will be running a FSI coupon promotion plus trade allowance in July. Arrangements must be made in July with these 2 brands in order to reduce the effect of canalization.
d.Special Pack Promotions There are 4 types of special packs available to Garner. Trial size should only be considered for the purpose of encouraging trail usage, because 4.7 million bottles is equivalent to only 15,161 cases and would cost more than $1 million at the low value level. Bonus packs should not be used for the introductory year because this type of promotion will decrease the value of the brand perceived by the customer, and is generally used to promote continuity of usage. Given that the results of the 3 different values of price packs lead to the same amount of promoted volume sold per event for each size, it would be in Garner’s interest to select the cheapest option – 10% of normal retail price – at the