The Procter and Gamble Company

Q1 a) Characterize the behavior of consumers in the German market for fabric softener. Focus on such issues as who the customers are, what benefits they are looking for, what factors govern purchase behavior and the trends affecting that and draw the implications for Proctor and Gamble’s product, Lenor, and its market performance. Conceptualize and describe a model of buyer behavior with respect to fabric softener and discuss the implications of it for Lenor.
b) How is (can) the market for fabric softener (be) segmented? Explain.

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Q2 In addition to the behaviour of end consumers, what additional factors should P&G consider in developing a marketing strategy for Lenor? Explain using concepts / frameworks discussed in class (class slides will be provided.

Q3 Evaluate the following strategic alternatives identified in the case: 1) do nothing; 2) relaunch the 3:1 concentrate; 3) introduce the laminated carton refill package; 4) introduce the doypack pouch; and 5) the integrated marketing option. What are the pros and cons of each alternative? [Note: Use both qualitative and quantitative arguments to support your analysis. With respect to the latter, the case contains sufficient data to evaluate the financial (net margins / profit) implications of the different alternatives.

Q4 Assume you are Kathy Stadler. Prepare a management memorandum addressed to both Rolf Kunisch and Leonard Phillippe that clearly and completely summarizes your specific strategic and tactical recommendations for Lenor. Support each recommendation with a compelling rationale based on your analysis of the case facts. Indicate any significant risks or open issues that must be considered, but emphasize the action plan.

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