P&G Grooming Performance

PENETRATION RATE OF MAIN PLAYERS IN B&R MARKET

In 2011, the whole B&R market penetration sunk into a sap situation, the penetration of the whole market by itself dropped from 43. 5to 41. 6(%). The penetration rate of P&G in year 2011 decreased by 8. 3% compared with that in 2010, and continued a downside trend by the first quarter of 2012 by 7. 5%. Compared with BIC, who increased 5. 8 % penetration in 2011 followed by a 10. 9% drop by 1st quarter of 2012, ENEGIZER first 1. 8% drop followed by a continuous 9. 8% drop, and other retailed brand which decreased by 9. % followed by another downturn of 9%, P&G in its B&R area did not do well in gaining potential customers during 2011. And looked more precisely in specific products of P&G, as the chart shows below, despite some badly performance products , there are still some products doing well in 2011, for example, the best performance products are PROGLIDE MANUAL and PROGLIDE POWER, which were newly trade-up in 2011 and caught the most new consumers during one year and still promise an increasing trend. G2 also did well in 2011, making an increase of 35 penetration points both in male system and male system blades.

Moreover, despite the penetration decrease in male system and male system blades, MACH 3 made an increase of 5 and 33 in penetration points in male razors and disposables respectively. In contrast, FUSION series were all losing power to attract new customers, substantially, FUSION MANUAL dropped 32 penetration points in male system , 27 in male sys blades , and 14 in male razors, what’s worse than that, FUSION POWER lost nearly 40 points in male system, 34 in male sys blades and almost 69 in male razors. CONTOUR also faced a 15-point- decrease, and SENSOR 3 dropped 5 points each in male system and male system blades.

Some of the products are losing attractiveness to new customers partly because the trade-up products are replacing their positions in the market, for instance, ever since BLUE 3 marched into the market, it enjoyed a 8 points’ increase in penetration while BLUE 2 faced a responding decrease of as many as 17 penetration points in the market, therefore for these products staying still may make them sifted out, either upgrade the functions or accelerate the renewal may save those products from continuing losing customers. In 2011, P&G increased 1 point and 4 points respectively in number of purchase act and the average spending per purchase act in B&R& disposables compared with that in 2010, while ENERGIZER did not generate any changes in both measurements and BIC increased 12 points in average spending per purchase act and stayed still in purchase act volume.

As we can see from the bar chart above, compared with the year before, P&G male system and male system blades both increased 2 points in number of purchase acts and 3 in average spending per purchase act(among which PROGLIDE did the best: 32 points and 34 points increase of purchase act number in male system and male sys blades, 27 point’ increase and 50 points’ increase of spending per purchase act in male system and male blades system respectively) while male disposables decreased 2 points in purchase act volume(among which G2 decrease the most: 12 points decrease) but increased 3 points spending /act(among which MACH 3 decreased 18 points while SENSOR 3 increased 12 points), and male razors did the worst performance as it dropped 2 points in purchase volume and 5 points in spending/ act, among which FUSION MANUAL did the worst(23 points decrease in spending per purchase act ).

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