P&G's adolescent troubles

A beautiful long hair, a familiar star, recommend a new brand of shampoo on TV, telling you that you can solve the current problems and enjoy unlimited enjoyment. In the face of such temptation, will you be tempted to generate the desire to buy immediately? Or you are hesitant, because there are too many such advertisements, or you are already numb, because they have not been able to excite any of your desires. If you tell this is this P&G product? Is it a product of P&G with Rejoice, Head & Shoulders and Pantene?

You don't have to rush to answer such questions, because even Procter & Gamble itself wants to get an answer. Following the first launch of the Run Shampoo in China, the refreshing shower gel, which was launched in July this year, also announced its full withdrawal from the Chinese market, and then look at the 9.9 resilience that has not been wavered so far, and many stores are missing. Or a few bottles of Soothing Hand Sanitizer. In addition, in addition to entering several brands launched in China, P&G has not only failed to achieve the expected goals, but also failed to achieve the desired impact on the market, or simply disappeared.

As a world-renowned daily chemical company, P&G's brand management has always been relished. In China, P&G not only brings high-quality products, but also gives its local daily chemical industry a new baptism with its advanced business philosophy. P&G’s every move has received much attention.

In recent years, local Japanese companies and important opponents have launched a full-scale siege on P&G. The pace of P&G in the Chinese market has been somewhat dignified. Will the godfather of the school send on to the disadvantages of brand promotion in the future, and what new measures will P&G take to meet the new challenges?

The secret of P&G's success

In China, P&G's success is mainly due to the following reasons:

Consumer first

The success of Procter & Gamble, the concept of the consumer first is the key, and has been implemented in every link. Procter & Gamble communicates with more than 7 million consumers every year. As early as 1934, P&G established a consumer research organization in the United States, becoming the first company in the US industry to use scientific analysis methods to understand consumer needs. By the 1970s, Procter & Gamble had earlier become a company that communicated with users on a toll-free number. To date, Procter & Gamble has used a variety of tools and technologies to communicate with more than 7 million consumers worldwide. In addition, Procter & Gamble has established a user satisfaction monitoring system to understand the feedback from consumers in various countries on the company's products.

Provide quality products

In order to study products suitable for the East, the company established Procter & Gamble's global technology center in Japan to serve Asia. Global product development and research accelerates the adoption of new technologies. Procter & Gamble also strives to satisfy consumers in terms of product quality, formulation and packaging design. Its products are to be improved and improved at least once a year. Procter & Gamble is in an invincible position in the increasingly fierce competition, thanks to continuous innovation.

Multi-brand strategy

P&G's multi-brand strategy gives it a high market share in all industries. Such as Haifeisi "to the dandruff", rejoice "floating and smooth", Pantene "healthy, shiny", all with their unique quality, establish their own brand personality. In the market, Pantene, Head & Shoulders, and Rejoice not only did not appear to eclipse each other, but instead won their own markets with their unique positioning and owned their own consumers.

Successful advertising appeal

In advertising, especially TV commercials, P&G has a set of successful formulas. First of all, P&G will first point out a problem you are facing to attract your attention. Then, the ad will tell you quickly that there is a solution that is P&G's product. This product is usually repeated several times throughout the entire ad. The focus of advertising is to clearly emphasize what benefits P&G can bring to you.

However, people often overlook the environmental factors that P&G has grown in the Chinese market, and these factors are inseparable from the success of P&G. P&G entered China in the period of great change in Chinese society. The planned economy has turned to the market economy. In the past, people did not have so many products to buy, and there were not so many varieties to choose from. In the face of the big market that broke into the market, it has been closed for a long time. Passion, purchasing power is a blowout burst because of this stimulus. Coupled with advanced promotional methods, P&G has opened up a magnificent scene in China. It should be said that the growth of P&G is accompanied by the development of China's dailyization. This kind of first-generation effect is not owned by other brands. Moreover, the Chinese media at the time were not as developed as they are now. As the main communication tool TV is only seven or eight channels, P&G's overwhelming advertising has subtly captured consumers. In fact, this factor is crucial, which also makes P&G suffer from pain during the transition.

Market transformation issues exposed

In the field of washing powder, “Qiqiang” and “Carving Brand” mainly focus on the low-end brand, and take the “rural encircling the city” route, leaving P&G’s “Bilang” and “Tide” far behind. Even in 2004, Procter & Gamble launched a massive "shooting storm action", which ended in a draw. In the field of shampoo, there is countless about the crazy siege and encroachment of P&G. From the worship of P&G to the group, this shows that local companies also recognize the lack of P&G itself.

Product increases, the marginal effect of advertising decreases

With the improvement of people's living standards, the understanding of daily-use products has become more mature from the initial ignorance, and the development of society has also made the products extremely rich, and P&G products are not likely to fully meet the needs of consumers. The market's cakes have grown larger, but there are more and more predators, and it is not surprising that P&G's market share has fallen.

Nowadays, the public has more and more channels for receiving information. In addition to TV and various advertising channels, there are dozens of channels for TV. It is not easy to get close contact with consumers in the past time, let alone There are such similar brands of advertising on the same stage. Multi-brand and a large number of advertisements have caused a lot of advertising investment. P&G has always paid a lot of money in advertising, and every product's annual advertising and promotion activities are not small expenses. The investment in the new product launch is even more unmatched by other companies. In addition, its multi-brand strategy, the competition among brands, has led to greater advertising investment. Therefore, P&G's unfavorable advertising wand is no longer tried and tested. It is not because of the huge amount of advertising that it can't reproduce the immediate effect and the hatred disappears. Tide has not been profitable so far.

Lack of low-end market

P&G's success is only a success in the urban market, and the vast rural market is difficult to reach with the reach of P&G. This market has nurtured many brands such as the brand, Lafang, etc., and this market is full of hundreds of fates or misfortunes. The product. The diversification of the brand structure in the daily market is intensifying, precisely because many local companies have found a space for survival and development in the low-end market. Although P&G's brand value is unattainable for all competitors, the concept of daily consumption is increasingly diversified, and it is developing in the direction of “good quality and low price”. P&G's brand influence is also affected in the primary market. After a severe test, the mid-to-high-end consumer groups dispersed to the “strong competing products and interfering competitive brands” at an alarming rate. As a result, the downward movement of the channel cannot be achieved. 9.9 Rejoice is a typical example.

Procter & Gamble's product profit margin is relatively small, there is no big rebate, the enthusiasm of agents and distributors can not be effectively supported, take the cool and six gods ratio, the latter profit space is relatively large, there are 5 to 8 Point, the enthusiasm of the dealers has been improved to a certain extent, the terminal operation is more flexible, and the operability is stronger. Not only is the first-line market greatly improved, but also the second- and third-line markets are penetrated, and the scope can be largely In terms of vendor support, Shanghai Jahwa pays more attention to the domestic market, one is the investment of media propaganda, and the other is the increase of terminal and circulation management, which makes the product price norm, profit The space is more reasonable, and although P&G said that the media publicity investment is great, its terminal support and circulation management are not enough, so the sales are not significantly improved.

Positioning ahead, drifting away from consumers

The refreshing delisting is the second time that P&G's second brand has withdrawn from the Chinese market after the company. Although P&G said it was out of strategic adjustment, people are more willing to think that it is a failure. In fact, if a brand sells well and contributes a lot of profits, it is believed that the product will not exit the market casually.

The product appeal of Liushen is “cool and refreshing, shared by the whole family”. In fact, this point of appeal can reflect the common business ideas of many shower gel brands: not to subdivide the products, to blur the target consumer groups, and to expand the scope of users as much as possible. The "Six Gods" approach is like this: the professional R&D department will conduct detailed market surveys, collect consumer demand information, and then conduct comparative analysis to prioritize the consumer's demand for shower gels and clear the key points. Production is based on higher-ranking demand points, so it is unlikely to take care of the needs of some niche markets. Some brands have also boldly carried out product segmentation, and there are many lessons of failure. In 1998, the United States and Japan Jiebao launched a special men's, mid-range colorful shower gel. With the words of Manager Cao of the Operation and Development Department of the US-Japan Jiebao, their marketing in the past was “very hard-hearted” and very “in place”: invited the popular star Gu Tianle to endorse and carried out a series of product promotion activities. What is frustrating is that the target consumer - the habit of fashion men using shower gel has not formed for a long time. After five or six years of hard work, the colorful brand has made a summary with “failure”, and the company is now ready to transform it. At present, in the consumption of shower gel, women, especially housewives, are the decision-makers of the purchase. Therefore, most shower gel brands will keep up with their needs and make a fuss about the fragrance and moisturizing effect of the products.

Market transformation issues exposed

In the field of washing powder, “Qiqiang” and “Carving Brand” mainly focus on the low-end brand, and take the “rural encircling the city” route, leaving P&G’s “Bilang” and “Tide” far behind. Even in 2004, Procter & Gamble launched a massive "shooting storm action", which ended in a draw. In the field of shampoo, there is countless about the crazy siege and encroachment of P&G. From the worship of P&G to the group, this shows that local companies also recognize the lack of P&G itself.

Product increases, the marginal effect of advertising decreases

With the improvement of people's living standards, the understanding of daily-use products has become more mature from the initial ignorance, and the development of society has also made the products extremely rich, and P&G products are not likely to fully meet the needs of consumers. The market's cakes have grown larger, but there are more and more predators, and it is not surprising that P&G's market share has fallen.

Nowadays, the public has more and more channels for receiving information. In addition to TV and various advertising channels, there are dozens of channels for TV. It is not easy to get close contact with consumers in the past time, let alone There are such similar brands of advertising on the same stage. Multi-brand and a large number of advertisements have caused a lot of advertising investment. P&G has always paid a lot of money in advertising, and every product's annual advertising and promotion activities are not small expenses. The investment in the new product launch is even more unmatched by other companies. In addition, its multi-brand strategy, the competition among brands, has led to greater advertising investment. Therefore, P&G's unfavorable advertising wand is no longer tried and tested. It is not because of the huge amount of advertising that it can't reproduce the immediate effect and the hatred disappears. Tide has not been profitable so far.

Lack of low-end market

P&G's success is only a success in the urban market, and the vast rural market is difficult to reach with the reach of P&G. This market has nurtured many brands such as the brand, Lafang, etc., and this market is full of hundreds of fates or misfortunes. The product. The diversification of the brand structure in the daily market is intensifying, precisely because many local companies have found a space for survival and development in the low-end market. Although P&G's brand value is unattainable for all competitors, the concept of daily consumption is increasingly diversified, and it is developing in the direction of “good quality and low price”. P&G's brand influence is also affected in the primary market. After a severe test, the mid-to-high-end consumer groups dispersed to the “strong competing products and interfering competitive brands” at an alarming rate. As a result, the downward movement of the channel cannot be achieved. 9.9 Rejoice is a typical example.

Procter & Gamble's product profit margin is relatively small, there is no big rebate, the enthusiasm of agents and distributors can not be effectively supported, take the cool and six gods ratio, the latter profit space is relatively large, there are 5 to 8 Point, the enthusiasm of the dealers has been improved to a certain extent, the terminal operation is more flexible, and the operability is stronger. Not only is the first-line market greatly improved, but also the second- and third-line markets are penetrated, and the scope can be largely In terms of vendor support, Shanghai Jahwa pays more attention to the domestic market, one is the investment of media propaganda, and the other is the increase of terminal and circulation management, which makes the product price norm, profit The space is more reasonable, and although P&G said that the media publicity investment is great, its terminal support and circulation management are not enough, so the sales are not significantly improved.

Positioning ahead, drifting away from consumers

The refreshing delisting is the second time that P&G's second brand has withdrawn from the Chinese market after the company. Although P&G said it was out of strategic adjustment, people are more willing to think that it is a failure. In fact, if a brand sells well and contributes a lot of profits, it is believed that the product will not exit the market casually.

The product appeal of Liushen is “cool and refreshing, shared by the whole family”. In fact, this point of appeal can reflect the common business ideas of many shower gel brands: not to subdivide the products, to blur the target consumer groups, and to expand the scope of users as much as possible. The "Six Gods" approach is like this: the professional R&D department will conduct detailed market surveys, collect consumer demand information, and then conduct comparative analysis to prioritize the consumer's demand for shower gels and clear the key points. Production is based on higher-ranking demand points, so it is unlikely to take care of the needs of some niche markets. Some brands have also boldly carried out product segmentation, and there are many lessons of failure. In 1998, the United States and Japan Jiebao launched a special men's, mid-range colorful shower gel. With the words of Manager Cao of the Operation and Development Department of the US-Japan Jiebao, their marketing in the past was “very hard-hearted” and very “in place”: invited the popular star Gu Tianle to endorse and carried out a series of product promotion activities. What is frustrating is that the target consumer - the habit of fashion men using shower gel has not formed for a long time. After five or six years of hard work, the colorful brand has made a summary with “failure”, and the company is now ready to transform it. At present, in the consumption of shower gel, women, especially housewives, are the decision-makers of the purchase. Therefore, most shower gel brands will keep up with their needs and make a fuss about the fragrance and moisturizing effect of the products.

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