Proctor & Gamble

1. In our opinion, we think the answer about product life cycle is not absolutely correct. It is depend on product’s characteristic. 3C product such as eeepc (asus’s product, netbook) have quite short product life cycle; Rolex watch have been established more than 200 years. So if marketers want to extend product life cycle, they have to do more afford on survey to realize consumer behavior and satisfy their really needs and wants.

When the product’s sales shows that it is on the decline stage, marketers should find the new desire on consumers and reposition, modify their product or marketing strategy, It is gain brand loyalty and equity to extend brands or products life cycle. Consequently, the “brand” makes its product life cycle prolong and maintain the product in the market. 2. Before we start to reposition, we must know the environment situation, such as industry, competitive, and consumer analysis.

We use five forces analysis to analyze industry, and conclude that the competition is fierce. After that, we analyze competitive situation, through perceptual map we find that Kimberly-Clark is P&G biggest competitor. The price of Huggies is between Pampers and Luvs, and with the same function of Luvs. Consumers were willing to pay more than Pampers to buy Huggies. Form consumer analysis, we find that consumers are sensitive to quality. Because there were many double-income families, consumers are afford to pay high price for diapers.

To regain the status of market share, P&G repositioned Pampers as high price brand, and changed some marketing strategies. Pampers has repositioned its products from “providing the most comfortable diapers” to “assisting mothers in bringing up children”. Therefore, it has come up with some concepts and ways to meet the purpose of the repositioning, such as the concept of Baby Stage of Development, the use of step-by-step toys, the consultation of experts, and establishment of Pampers parenting network.

The concept of Baby Stage of Development is based on the babies various needs at various stages. As a result, P&G provides suitable diapers products for babies, including new babies, babies, toddlers and preschoolers. With the concepts of BSOD, Pampers has further introduced the step-by-step toy system. In the course of playing, the toys function as children friends. Besides changing the products, Pampers also establishes Pampers Parenting Network. On the websites, some experts have written professional articles on how to breed babies, how to help babies grow healthy, and so on.

And all these articles are posted on the website as references for parents. Besides, the experts also provide professional responses to the problems parents have in the process of bringing up children. (2) We think that P&G can use the same way to reposition Crest’s brand image to differ from its competitors, and let it have room for progress. For instance, P&G can reposition Crest as a product for healthy and beautiful smile, not just for the purpose of cleaning.

In this way, consumers can have better looks and fulfill their mental needs by using the repositioned products. 3. To realize consumers’ needs, P&G has a consumer relationship management system. In the system, there are three key points of customer relationship management. One is to understand consumers’ need deeply, second is to build consumer service center, third is to value consumers’ suggestions. To understand consumer’s need deeply, P&G through depth interviews, focus group, questionnaire survey, visit shop, trace system, e-mail, and telephone to attain this goal.

Finally, value consumer’s suggestion is according to consumer’s feedback to improve product continuously. For example, there are colorful designs on the Pampers, because the babies’ clothes are light colors in summer, the picture color can be seen easily. Thus, P&G adopt the mothers’ advice to redesign the color. The above is how P&G to manage their customer relationship. Through the customer relationship management system, we can realize what consumers’ needs are.

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