A strategic product analysis of the Mr. Clean Magic Eraser.

1. Proctor & Gamble
Mr. Clean Magic Eraser
Mindy Siade
4/1/2009

2. I. Executive Summary
Proctor & Gamble is the leader in Beauty, health/well-being, and household care
products. By creating innovative products they are able to keep this lead over competition.
They have gotten ahead of the competition by generating something groundbreaking and new
to the market. Something that is one-of-a-kind; The Magic Eraser. By creating a product that
can get out any scratch, scuff, or dirt mark off any hard surface has made that groundbreaking
mark on the industry. By increasing their research and development department, they are able
create or improve a more environmental friendly product. As well as a more durable product.
Once they have developed these products better, they need to get them onto the market ahead
of their competition. This company already has a great amount of brand loyalty. They need to
find a way to get Unilever and Johnson & Johnson’s loyal customers, to cross over to Proctor
& Gamble. This can be a hard job, which is why they created a new and totally different
product, Magic Eraser. By creating this new product they have increased their profit share
greatly. However they also need to reach untapped international markets, and get their ahead
of the competition. They have to make sure they take the correct steps, as well as maintain
quality and price.
II. Situation Analysis
A. The Internal Environment
Proctor & Gamble's marketing goals and objectives is to tailoring the marketing and
communications to specific consumer needs. Its marketing objectives are current with the
developing customer trends. It is also current with it the firms mission statement that is
focused around the consumer. The mission statement of Proctor & Gamble Co. is to
provide branded products and services of superior quality and value that improve the
lives of the world's consumers. Proctor & Gamble is focused in 3 major industries:
Beauty, household care, health and well-being. Proctor & Gamble defines business not in
terms of products/services or the customers’ needs, but rather the innovation to succeed
their needs, to an extent that at the time of innovation it is more a want, due to the fact
that the innovation of developing the product[s] in more ahead than the need. The want
becomes the need.
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3. Review of current marketing strategy and performance
P&G current marketing strategy in respect to 4 P's is focused around innovation. With
its Always product offers an education program that teaches young girls about going
through their puberty stages. P&G also offers a safe, discreet environment that allows
them to interact with other peers facing similar life-stage issues through a website called
beinggirl.com. The part of this strategy that is working well for them is the innovations to
make the lives easier and more adjustable for it consumers.
P&G current performance compared to the rest of the industry is relatively high. Its
brand awareness is still very high; with its ability to keep innovating they keep consumers
conscience about the products. The net sales for 2008 increased 9% to $83.5 billion.
Proctor & Gamble carries several products in three major product categories: Beauty,
Health/Well-Being, Household care. Within these three categories there are six sub-
categories consisting of beauty, grooming, health care, snacks/coffee/pet care,
fabric/home care, and baby/family care.
Most of the products that are carried by Proctor & Gamble are between the prices of
$5.oo to $5o.oo. Most of the standard products such as household care range from $7.oo
to $12.oo. Proctor & Gamble have several distribution centers worldwide which allows
them to have a long well established distribution channel as well as strong relationships
with its dealers. Proctor & Gamble has several various promotions going all year round,
due to the line of products and categories it carries. Several promotions involve UNICEF
and Pampers, and Tide and disaster victims. Along with brand awareness is extremely
high.
P&G's mission statement can translated into operational terms. The stated objectives
are as follows: 1) Organic sales growth of 4% to 6%. 2) Diluted net earnings per share
(EPS) growth of 10% or better. 3) Free cash flow productivity of 90% or greater. These
are clearly stated on page 41 of its 2008 Annual Report. These objectives are clearly lead
to the understanding of its marketing objective which is as follows: 1) Grow our leading
brands in our biggest markets and with our winning customers. 2) Shift our portfolio mix
to faster-growing businesses with higher gross margins that are less asset-intensive. 3)
Grow disproportionately in developing markets and with value conscious consumers.
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4. The objectives that are put forth by P&G are however, from reading the Annual
Report is based on both profits and its customers alike. With what P&G wants to
accomplish in regards to its marketing objectives there is no one way to accomplish in a
certain order. However, these objectives are specific enough so that its progress can be
measured to reaching its targets. The objective that has been stated prior, want to
accomplished within one fiscal years time.
P&G main objective is to maximize customer satisfaction rather than getting as
many customers as possible. With satisfaction being there major objective it can also
coincide with getting more customers. Because its focus is based on satisfaction,
customers are loyal and keep repeating their business. With that being said customers are
likely to spread the 'word' about how good P&G products are, in return giving P&G more
customers. This then also leads to the brand preference within their loyal to P&G they are
also demonstrating preference for the brand. Despite the US being in an economic
recession P&G is still improving its performance.
Review of current and anticipated organizational resources
The most utilized resource is its suppliers. Its relationships with them must be
characterized by honesty and fairness. Suppliers are selected on a competitive basis based
on total value, which includes quality, service, technology and price. Terms and
conditions defining its relationship with suppliers are communicated early in the supplier
selection process. The relationship that it keeps with its key suppliers is on a strict and
professional basis. Its business with key suppliers in regards to receiving gifts,
entertainment or other gratuities from whom it does business with is generally not
acceptable, because doing so could imply an obligation on the part of the Company and
potentially pose a conflict of interest. This being one of P&G strong core values this is
not expected to anytime in the future.
Proctor & Gamble shows respect for all individuals’ customers and employees
alike. They are honest with people about their performance. They inspire and enable
people to achieve high expectations, standards and challenging goals. They value the
differences people bring to the company. They also believe that all individuals can and
want to contribute to their fullest potential. Proctor & Gamble works together with
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5. confidence and trust across business units, functions, categories and geographies. They
take pride in results from reapplying others' ideas. They also build superior relationships
with all the parties who contribute to fulfilling our Corporate Purpose, including its
customers and suppliers, universities and governments.
Proctor & Gamble has an organizational structure that works together to leverage
their knowledge and scale at the global level with a deep understanding of the consumer
and customer at the local level. The Global Business Unit (GBU) organizations leverage
their consumer understanding to develop the overall strategy for our brands. They
identify common consumer needs, develop new products and build our brands through
effective marketing innovations and product upgrades. The GBU is focused on winning
the “second moment of truth” — when the consumer uses the product and evaluates how
well the product meets his or her expectations. The Market Development Organization
(MDO) develops 'go-to-market' plans at the local level, leveraging their understanding of
the local consumers and customers. The MDO is focused on winning the “first moment
of truth” — when a consumer stands in front of the shelf and chooses a product from
among many competitive offerings.
Review of current and anticipated culture and structural issues
Employee satisfaction is a key part to the success of Proctor & Gamble. They
believe that the employees are just as important as the customers. They sponsor various
post-employment benefits throughout the world. These include pension plans, both
defined contribution plans and defined benefit plans, and other post-employment benefit
plans. Which consist primarily of health care and life insurance for retirees. Procter &
Gamble takes pride in it employees and customers. If they are in need of disaster relief
Proctor & Gamble is there to help such issues. In 2005, Proctor & Gamble increased its
contribution to Hurricane Katrina aid from $700,000 to $1 million in product and cash
donations to The American Red Cross and America’s Second Harvest. Proctor &
Gamble also made assisting employees impacted by the disaster a priority. They had set
up a special fund to assist its roughly 550 employees at four coffee production and
storage facilities in the New Orleans region, as well as sales employees in the affected
areas.
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6. B. The customers Environment
Current and potential customers
Proctor & Gamble operate in a geographic region that consists of 180
countries. Demographic ages range anywhere within the ages of 12 to 80+, depending
on the use of the product. Product usage varies from consumer to consumer. Since
P&G manufacturer’s product in several product categories such as Beauty, health
care, and home care.
Psychographic consists of those that are organized, and care about cleanliness, and
health and well-being. The average ages of purchasers ranges from early 20's to mid-
late 50's. The average users are the same as the average purchasers. The one that
influence the purchase of the product is the ones who use the product on a very
regular basis.
Purchase
Most of the consumers purchase the purchase the product in quantities that can be
used within months to a year. They generally purchase products in combination in
which the products can used after another. For example, Head and shoulders
shampoo. Consumer would purchase the conditioner to use in conjunction with the
shampoo.
Consumption
The characteristics of heavy users would be those of industry. Such industries
include restaurants, hotels, and airlines, and health and beauty suppliers. The
characteristic of light users is your everyday consumer. The use the home care lines
to keep things clean and organized. While, the health and beauty lines are for those
users that might use the products a bit more; on a daily basis. Most consumption that
takes place is in the consumer's home or within the place of industry.
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7. Disposition
In 1983 Proctor & Gamble introduced triple concentrated downy. This was one of
the first P&G products that reduced packaging and water waste. This was the start of
the development of producing products that reduced these concerns. In 2003 Proctor
& Gamble led the guidelines for flushable products which were published by the
water environment resource foundation. In 2012 they have set a goal to deliver an
additional 10% reduction (per unit of production) in CO2 emissions, energy
consumption, water consumption and disposed waste from P&G plants, leading to a
total reduction over the decade of at least 40%. Proctor & Gamble also had reductions
in July 2007; Energy Usage -6%, CO2 Emissions -8%, Waste Disposal -21%, Water
Usage -7%
Purchasing the products
Most of the products that one purchases come from many different venues.
Depending on the purpose of use. Most customers purchase P&G products from such
stores as:
 Meijer
 Wal-mart
 target
 home-depot
 Menards
 any home improvement centers
 any beauty stores
 also directly from P&G
Other products for the commercial industry however cannot be bought in a store
setting. The commercial industry generally buys product in larger quantities then the
average consumer. A site called, "Proctor & Gamble Professional" makes this a
possible option. On this site professional can find Distributor locations and programs.
Procter & Gamble Professional is the business-to-business resource for Cleaners,
Laundry, Snacks, and Health and Beauty supplies.
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8. Most of the customers purchase P&G products in convenience stores and
supermarkets. The average sales take place during the hours of 12 pm and 7 pm.
Along with these hours of operations sales are mostly increased during promotional
events, such as an extension of product lines or price dropping.
C. The External Environment
Competition
Proctor & Gamble has three Major Competitors. The First is Johnson &
Johnson. Their total employment is 118,700 employees. They have a total of $63
million profit. The categories of their target market that they produce in are;
Pharmaceuticals division; Medical Devices and Diagnostics division. The
products that they product range from Risperdal and Remicade medications, to
surgical equipment, monitoring devices, orthopedic products, and contact lenses.
Along with Pledge, Fantastik, Scrubbing Bubbles, Glade, Raid, OFF! and Ziploc.
They have several strengths. The first is that they are the world’s largest
and most diverse medical devices and diagnostics company. They are also the
world’s premier consumer health company. And lastly, the world’s third-largest
biologics company. Along with these strengths they possess a few weaknesses.
The first is industry competition; they pose a direct threat to Proctor & Gamble.
Another threat is internal theft of drug products
The second company that is in competition with them is Kimberly-Clark.
They have a total of 53,000 employees. They average $18 million in profit. The
markets that they target are; personal care, consumer tissue, K-C Professional, and
health care. The products that they carry are Cottonelle, Kleenex, Scott, Huggies,
Kotex, Depend, and WypAll/Kimwipes commercial wipes.
Kimberly-Clark posses a few strengths that could be potentially harmful
for Proctor & Gamble. The first threat to them is their strong retailer relationship.
Proctor & Gamble has a better relationship with its suppliers. The second is global
company recognition, and lastly great international involvement to better the
world. However there are a few weaknesses that can be a positive for Proctor &
Gamble. They consist of direct connections with the consumers, under one
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9. leadership and the reduction on spending in the research and development
department.
Unilever is the last company that poses a threat to Proctor & Gamble.
Their total employee consists of 175,000 employees. Their annual profit is $59
million. The markets that are currently targeted are dressings and spreads; ice
cream and beverages; personal care; and home care. The products that they
currently produce are Axe, Dove, Pond's, Suave, Vaseline, Signal, Slim Fast,
Lipton, Ben & Jerry's, Breyers, and Country Crock. The biggest strength that
could weaken Proctor & Gamble is their Lifebuoy's hand washing awareness
program. It is now the largest private hygiene education initiative in the world.
They are also global market leader in all the Food categories: Savory Dressings,
Spreads, Weight Management, Tea, and Ice Cream. As well as global market
leader in Skin and Deodorants. The biggest weakness that proves to be a huge
strength for Proctor & Gamble its lack of global consumer recognition.
The firm that is in the most direct competition with P&G is Johnson &
Johnson; they offer most of the same products that P&G does. Such as beauty
care and house care.
Indirectly Unilever is competing with P&G in regards to commitment and
time. They are more internationally committed to improving the lives of under-
developed countries. A great example of this is the Lifebuoy program. In times of
great turmoil Unilever has been there for countries in need with its Lifebuoy
program. In the aftermath of the Tsunami in Asia in December 2004, Lifebuoy
bars were a key element in the relief packages distributed in Southern India, Sri
Lanka and Indonesia to help prevent the spread of infectious diseases so endemic
in the aftermath of such disasters.
Economic Growth and Stability
P&G operates on over 150 countries world-wide. The economic growth
and stability varies from country to country. Such countries in which it operates
are: United States, United Kingdom, Germany, France, Italy, etc. The economic
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10. growth and revenue in the United States have been steadily increasing year by
year, even with the economic turmoil the Unites States is in.
Political Trends
In terms of politics P&G is very involved. There is not one specific
activity that affects the company. It is very active in the political environment of
the world. P&G has developed a team called 'Global Government Relations'
(P&G GGR) which is comprised of representatives from Global Government
Relations, Legal, Human Resources, and Corporate Communications. P&G GGR
represents the Company’s point of view in Washington, DC, in U.S. state capitols
as well as in key country capitols around the world. Working with the businesses,
P&G GGR focuses on legislative and public policy issues that impact the
Company’s bottom line and long-term business interests. Where permitted by law,
P&G GGR: engages and educates policy makers and key stakeholders on issues
that impact its business; facilitates the exchange of information between key
decision-makers and public policy organizations in the U.S. and abroad.
Legal and Regulatory Issues
With nearly 300 brands sold throughout the world, Proctor & Gamble's
business is influenced by a wide variety of government policies, laws and
regulations. Procter & Gamble's business is influenced by numerous policies,
laws, and regulations regarding the safety and sustainability of its products and
operations. They cooperatively with government and other stakeholders to
develop policies that help ensure consumer products are safe. Proctor & Gamble
is also affected by new scientific developments that can influence how the safety
of its products for the people and the environment is evaluated. Approximately
500 professionals are responsible for implementing the environment policy, using
risk assessment and risk management. Procter & Gamble has used risk assessment
as the basis of its safety evaluations for many years. Like all scientific methods,
risk assessment is constantly evolving as new knowledge becomes available. Such
examples of new knowledge to better help ensure the safety of its products is a
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11. new scientific method, called genomics. This now enable scientists to evaluate
how chemicals could affect the expression of genes in our bodies.
Technological Advancements
External collaboration plays a key role in nearly 50 percent of P&G's
products. They have collaborated with outside partners for generations but the
importance of these alliances has never been greater. Their vision is simple.
Proctor & Gamble wants to be known as the company that collaborates — inside
and out — better than any other company in the world. They offer several
opportunities for anyone to help out their products. They have several products
that need new and innovative ideas online and waiting for someone to have that
great idea.
III. SWOT Analysis
A. Strengths
Strength 1: Unique Formula
Proctor & Gamble is the first in the industry to develop many new formulas that
make certain products one-of-a-kind. Such as the Mr. Clean Magic Eraser. The unique
formula that it has developed is one of many that have separated themselves from its
competitors.
Strength 2: Brand Awareness
Proctor & Gamble is established in over 180 + countries. With this wide spread
recognition it is easier for Proctor & Gamble to introduce new products in different
global markets. They could also expand American products into different global markets
because of the brand awareness that Proctor & Gamble has.
Strength 3: Multi-purpose
Proctor & Gamble offers many products. Some of these products offer more than
one purpose. This is very beneficial for those consumer that on the go most of the time,
and may not have the time to spare to keep switching from one product to other to
complete one or two tasks. With most of its products being mutli-purposal, they can clean
the bathroom, kitchen, and walls with one type of cleaner, as opposed to several. The
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12. other benefit to this is that it cuts down the time of completion of these tasks to what
could take you a few hours to several minutes.
1) Weaknesses
Weakness 1: Product Durability
The biggest drawback to this is, is cost to the consumer. Some of the product that
Proctor & Gamble offers does not have the product life the consumers have come to
expect of Proctor & Gamble.
Weakness 2: Product Packaging
The Package that is the Eraser is in only contains 2 erasers per package. For some
consumers that use this product on a daily basis this can be expensive and in convenient
if they use more than 2 in a short period of time.
2) Opportunities
Opportunity 1: Lasting Durability
One of the biggest drawbacks to using the Magic Eraser is durability it proves.
They have been known to be a 'one use' type of product. This being a drawback as well as
a weakness, they have the ability to use it as an opportunity to give the Magic Eraser
longer lasting life.
Opportunity 2: Product Expansion
There are a few different types of the Magic Eraser on the market today. There is
one for everyday use, Kitchen/Stove, Bathroom and your Grill. Currently there are no
other products out there that can be used in conjunction with the Eraser. Proctor &
Gamble could expand the Mr. Clean Magic Eraser line to include such products.
Examples of the kinds of additions to the line that they could add are; A hardwood floor
cleaner to use with the eraser to get up scuff marks up without harming the wood or
finish. Another addition that they could develop is using the same type of technology
from the eraser to develop a carpet cleaner that gets out the toughest of stains.
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13. Opportunity 3: Global product recognition
Even though that P&G is in more than 180 countries there are many countries that
have not ever heard of the Magic Eraser. This poses a problem because they are unaware
of the great benefits that it offers it consumers.
3) Threats
Threat 1: International competition
With the Magic Eraser being only available/ known to the consumers of the
United States. P&G other global customers are unaware that this exists. That being said,
they are most likely going to buy from another company that they might not trust as well
as P&G.
Threat 2: New Product development from competitors
With this being the only product of its kind on the market today, P&G is going to
have a tough time with its competitors coming out with similar products. One of the
biggest threats with this is that the competitors can offer cheaper prices, regular discounts
and better quantity packaging.
E. The SWOT Matrix
Strengths: Weaknesses:
· Unique formula · Global recognition
· Brand awareness · Product durability
· Multi purpose · Product packaging
Opportunities: Threats:
· Global recognition · International competition
· Product expansion · New product development
· Lasting durability from competitors
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14. IV. Developing a Strategic Focus (Thrust)
1) Attain Cost Leadership
Definition: Mr. Clean Magic Eraser Products to achieve lowest delivered costs relative to
Johnson & Johnson and Unilever with acceptable quality levels.
Objective: For Mr. Clean Magic Eraser Products to increase freedom to defend against
powerful entries, strong customer blocks, vigorous competitors, or potential substitute
products.
Requirements: For Mr. Clean Magic Eraser Products to achieve relatively high market
share; disciplined, persistent management efforts; favorable access to its raw materials;
substantial capital expenditures; and aggressive pricing.
Expected Results: Mr. Clean Magic Eraser Products may result in start-up losses to build
share; ultimately, high margin; and relatively low capital turnover rates.
2) Differentiate
Definition: Mr. Clean Magic Eraser Products to achieve the highest degree of
product/quality/service difference (as it is perceived by customers) in the industry with
acceptable costs.
Objective: For Mr. Clean Magic Eraser Products to insulate Proctor & Gamble from
switching, substitution, price competition, and strong blocks of customers/suppliers.
Requirements: Mr. Clean Magic Eraser Products to have the willingness to sacrifice high
market share; careful target marketing; focused technological and market research; strong
brand loyalty.
Expected Results: Mr. Clean Magic Eraser Products to possibly have lowered market
shares; high margins; above-average earnings; highly defensible position.
3) Focus
Definition: For Mr. Clean to select a particular segment of the market/product line more
narrow in scope than competing firms.
Objective: For Mr. Clean to serve the strategic target area (geographic, product, or
market) more efficiently, fully, and profitably than it can be served by broad-line
competitors.
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15. Requirements: Mr. Clean to have a disciplined management; persistent pursuit of well-
defined scope and mission; premium pricing; careful target selection.
Expected Results: For Mr. Clean to achieve above-average earning; may be low-cost
producer in its area; may attain differentiation.
4) Defend Position
Definition: to ensure that Mr. Cleans’ relative competitive position is stable or improved.
Objective: Mr. Clean to create barriers that make it difficult, costly and risky for
competitors, suppliers, customer blocks, or new entries to erode Proctor & Gamble’s
market share, profitability, and growth.
Requirements: Mr. Cleans establishment of one or more of the following: proprietary,
technology, strong brand, protected resourcing, favorable locations, economies of scale,
government protection, exclusive distribution or customer loyalty.
Expected Results: Mr. Clean to have stable or increasing market share.
V. Marketing Goals and Objects
A. Marketing Goal A: Market
a. Market-Scope Objectives
Multimarket Objective
Definition: Mr. Clean needs to serve more than just one distinct market.
Objective: Mr. Clean needs to expand its marketing to overcome the risk of
serving just one market
Requirements: Mr. Clean needs combine Marketing research with focus
groups to precisely select the exact market that it needs to serve. Mr. Clean
also needs to be careful to avoid confrontation with competing companies.
Expected Results: To generate higher sales and market share
b. Market-Geography Objective
International-Market Objective
Definition: Continue marketing operations outside the United States, as well
as target specific locations that have profit potential.
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16. Objective: To grow within their current market and reach untargeted areas
aboard.
Requirements: Use current untapped sales profits to reach these areas. Second,
find out where there is for the Magic Eraser. Third, understanding the cultural
boundaries that are different than that of the United States. Example: The size
of a consumer’s home/Kitchen/Bathroom.
Expected Results: To increase growth in foreign markets. Also to gain a
higher market share and profits from those new found markets.
c. Market-Entry Objective
First-In Objective
Definition: To enter markets that Johnson & Johnson and Unilever have not
entered yet. Also, try to dominate these markets before the competition has to
enter with force.
Objective: Get the Mr. Clean name out to untapped nations before the other
leaders in its category. Along with having the cheapest and most innovative
products as opposed to the competition.
Requirements: Willingness to take the risks necessary to make the objective
happen. Have the most advanced Eraser formula that brings the highest
quality, while still maintaining low prices.
Expected Results: The creation of a competitive advantage over the
competition by reaching this goal first. This then will bring increased growth,
profits, and market share.
d. Market-Commitment Objective
Strong-Commitment Objective
Definition: To devoted to our current and potential customers. By being more
committed, we should offer more “deals” to our customers.
Objective: To create a stronger more personal relationship with our customers,
help to realize we are more than a product, which will encourage loyalty.
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17. Requirements: Be intelligent with our decisions. Establish an unsatisfactory
mental state, without over steps our bounds. Avoid neglect of current
relationships we have.
Expected Results: Increased brand awareness, generate customer loyalty. We
will gain increased profits, market shares, as well as growth.
e. Market-Dilution Objective
Key-Markets Objective
Definition: Concentrate our efforts to keep focus on our selected few markets.
Reinvent the products to reflect these efforts.
Objective: Extremely high priority in bringing the best service that Mr. Clean
offers these markets, while maintain consistency.
Requirements: Develop a focus group and marketing research to gain the most
knowledge of what customers in these markets are looking for in an
innovative product.
Expected Results: To gain more customer loyalty in the selected markets
while increasing profits and market shares.
B. Marketing Goal B: Product
a. Product- Positioning Objective
Definition: Create an innovative product that beats the competition, and then
place that product in a market the competition hasn’t tapped into yet.
Objective: To position in a market that the leading competition has not
entered, with our product being an innovative first, we will remain the number
one competitor.
Requirements: Create an innovative and effective product line that will reach
the specific market (as mention above). Find a market where our product line
fits that need before the competition does. Become successful internally as
well as externally.
Expected Results: Create a new market for the Mr. Clean Magic Eraser line,
as well as improving sales.
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18. b. Product-Design Objective
Definition: customizing the Magic Eraser line to fit the desired needs of each
chosen market.
Objective: To customize the Magic Eraser with the latest technologies to
develop a formula that put Mr. Clean head of the competition. Design more
than one Eraser to fit all the selected markets. Example: Erasers for the
kitchen/bathroom/walls.
Requirements: Product testing before it hits the market to analyze how it
affects the chosen areas of use, in regards to environmental and technological
changes.
Expected Results: Maintain close connections with the markets and gain
experience in future development of the product line. Increasing growth,
market share, and profits should also be gained with this maintenance.
c. Value-Marketing Objective
Definition: Making/keeping a commitment of excellence for our consumers.
Objectives: Find what suits our customers. Making customers our key focus.
Create that 100% needs satisfied factor.
Requirements: Create a product that meets the needs/wants of current and
future markets.
Expected Results: Ultimate customer satisfaction, customer supreme loyalty,
awareness that Mr. Clean is striving for product excellence in all areas.
C. Marketing Goal C: Distribution
a. Distribution-Scope Objective
Definition: supplying to many but not all retail outlets for the Magic Eraser
product line.
Objective: Provide the best service to the markets with minimal costs, while
still maintaining the Mr. Clean image.
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19. Requirements: conduct research to target the customer buying habits.
Choosing the right retail outlets to distribute Magic Eraser, with regards to
reputation, and customer service, and ability to carry the whole Eraser line.
Expected Results: establish selective distribution with the selected dealers.
Creating, extreme competition in the market place.
D. Marketing Goal D: Promotion
a. Promotion-Expenditure Objective
Definition: The creation of a new product in the Magic Eraser line. Then
market them appropriately with the retailers. With the creation of the new
products, it is essential to get the awareness of them out to the consumers.
Objective: Making sure the new product in the line will generate enough
profits to increase advertisement; therefore funds are secure from prior sales
to implement this.
Requirements: Look at the budget depth fully to see where there is money for
this type of process. In order for this to happen to has to be the appropriate
budget allotted.
Expected Results: Sell enough of the product line to make this budget
allocation possible for the advertising.
b. Media-Selection Objective
Definition: The ad placements will be through commercials, print ads,
billboards, demonstrations, and product displays. The commercials will run in
the mornings Prime time hours (6am to 10am) and the afternoon hours (12pm
to 6pm). Focused on Women and housekeeping channels such as; TLC,
Lifetime, HGtv, etc. The print ad will run in housekeeping, and health
magazines. Billboards will be on major roads leading to the major retail
outlets, and on highways with high traffic rates. The demonstrations and
displays will be in-store.
Objective: Generate awareness of Proctor & Gamble as well as the Mr. Clean
name and product line.
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20. Requirements: Advertise more than the other leading competitors. Achieve
high eye traffic with colorful and unique ad placements that stand out from
others.
Expected Results: Creation of the desired path of purchase in which you want
customers to follow.
E. Marketing Goal E: Price
a. Pricing Objectives for Established Products
i. Maintaining the Price Objective
Objectives: To maintain the position in the market that Mr. Clean
possesses while enhancing the public image.
Requirements: Decrease uncertainty of whether the product is meeting
the results that the customers are in need of. Using customer
input/suggestions to help better enhance the product to better meet the
specific needs of the customers, while maintaining the low prices.
Expected Results: Maintaining the status quo of Proctor & Gamble’s
market position with the Mr. Clean product line. Along with
enhancement of Proctor & Gamble/ Mr. Cleans’ public image.
b. Price-Flexibility Objectives
i. One-Price Objectives
Definition: Charging all customers in the given market the same price
for all products in the given Mr. Clean line.
Objectives: To maintain the goodwill among the customers, and make
pricing more simple for retailers.
Requirements: Having the right information to implement this given
strategy. Implementation will be done the timing and product.
Expected Results: being able to tackle legal attacks on price
discrimination. Increase sales, while will lead to a greater market
share.
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21. VI. Marketing Strategies
A. Primary Target Market and Marketing Mix
1. Primary target market:
The primary target market will be the 'New Mom' who is still getting a
grip on raising her first child, while still trying to keep the home in a good clean
living condition. Most of them have ages ranging from the age group of early 20's
to even 40's. Considering this will be a completely new product to the market, we
need to focus on Mothers who have some severe cleaning needs that require little
time. In the beginning stages of advertising, we will focus in the United States.
Mainly, because this product will be widely known to consumer of the United
States. If this product is successful in targeting the 'New Mom' market in the
United States, and continues to be ahead of the competition. If this proves to be
successful, then we would create the same product with different markets of other
countries. Such markets would be; The single person(s) and working families. We
will expand to include other countries within a close geographic range of the
Unites States. Such countries consist of Canada, Mexico and maybe Russia.
2. Product:
The Magic Eraser offers one feature that gives several great benefits. The special
patented formula is water-activated. Once the micro-scrubbers have been activated it
reaches into the grooves of the surface to lift and remove dirt with water alone. Mr.
Clean Magic Eraser has been proven by self-test to remove everything you can think
would stain a solid hard surface. Since they are the first company to create and
distribute this product, it can only help improve their brand name for a period of time.
This is such a unique product, that it saves people time and money. Where the Magic
Eraser consumers won't have to spend hundreds of dollars on expensive cleaning
companies. Most of the erasers are recommended to be changed once it becomes frail
and brittle. This product will allow you to keep your home and surfaces clean, as if it
were brand new again. With the help of technology, research/development, we will be
able to create a special components that can be used in conjunction with the eraser.
Also improve the erasers to be more Eco-friendly and more durable. By creating an
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22. eraser that would last longer, it would save the consumer money. Making Eco-
friendly eraser will also attract a new market segment of the earth conscience type.
3. Distribution:
As was stated previously, we would keep the same distribution methods we are
currently using. We distribute our products through several different Medias. We
currently distribute though supercenters, grocery stores, home improvement centers,
and discount stores. Along with these distribution centers we also sell our products
through our websites, both our consumers and industrial sites. Once we advertise our
products a bit more, and increase our sales, we might add on more distributors.
4. Integrated Marketing Communications (Promotion):
Our customers will find out about the products that we offer through the
advertisements that we broadcast and print. These advertisements will reach all the
United States. Once people see the ads that we place or hear from friends how great
the magic eraser truly is, they will be intrigued to go out and buy the product to see
just how well it works for them. Once word-of-mouth is achieved we are certain that
this product will sell. Some people might not believe that this product will be true its
name; 'Magic Eraser', and 'erase' anything that scratches, scuffs or leaves a mark.
Some people may be skeptical at first, but once they try the product we are certain the
magic eraser will live up its name. They will be saving themselves money and time.
They will be saving money because they don't have to pay for expensive cleaning
companies or cleaning products. Also, we will encourage a promotional strategy
through the distributors. They will also save time, because they don't have to spend
hours trying to get the scratch out, when there is no guarantee that it will come out.
Proctor and Gamble along with other distributors, have weekly/monthly/yearly
promotions for certain product lines with the company. This would obviously be a
good place to start because it would be a current product with a great reputation.
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23. 5. Pricing:
Considering the price of this product is the same for all the erasers in the product
line. Since this is the only product of its kind. As stated before, we are the first to
enter the market. Because of this we can keep the price of the erasers fairly
reasonable, but still a little high. Then once the competition enters the field, we will
have to remain competitive. To maintain competitiveness, we need to be able to lower
the pricing however once the competition enters the market. Also, the promotional
strategy. We will do a different promotional strategy for each distributor. There will
be a buy once get one free. That will be one of the strategies that we would
implement. Also, we need to do a strategy with the distributor. As in, buy the new
Magic Eraser, and enter to win a dream kitchen. There are many promotional
strategies that can take place. After competition enters, we would like to see at least
the prices and sales remain consist.
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