Procter & Gamble: The Starting Line Behind The Makeup

Compared to L'Oreal Maybelline back in 1997 about the introduction of China, Procter & Gamble Cosmetics brand has now introduced a full 8 years later?? In 8 years, Maybelline has successfully educated the Chinese consumer ...

2005 7 months, P & G spent three years, invested 1 billion advertising cultivated specifically for the Chinese market, the first local brand shock cool bath to stop production.

2002, P & G after three years of careful preparation for the launch of the first local brand in China?? Yun Yan shampoo anything, less than a year will come out of the market.

Two brands specifically for the Chinese market, has actually suffered, "Waterloo", will inevitably provoke some consultation-style war of words.

Victory or defeat is standard issue for a large P & G, the Yun-Yan, Shuang shock has died, is not entirely a bad thing. Mixed blessing, given up to P & G also has more room to choose. P & G has experienced two consecutive defeat on the Chinese market has not discouraged, but placed greater expectations.

2005, P & G will be Max Factor (MaxFactor) and Cover Girl (Covergirl) are two well-known make-up brands into China: Max Factor make-up of high-end positioning in the market, with sales of SK-II and cabinet; Covergirl prominence to mid-range market cosmetics, L'Oreal and Maybelline price between between Paris.

"50 SK- Olay counters counter = 500 = 500 Rejoice shampoo city sold the company's profit contribution", the P & G profit equation clearly demonstrates the value of skin care products. Using Run-yan, stimulated the market for honey cool silk Buddha and Cover Girl will get the market, this is the most cost-effective transaction.

Relative to European and American markets account for cosmetics sales make up 60% or more of the situation, the consumer make up the Chinese market has just started, the outlook is not any one day enterprise ignored. To seize the space for the huge and more profits to make up the market's P & G, to give up a brand and a bath shampoo brand, then what of it?

Profit research, stimulated Shuang failure, and the local day of competition in the market situation have indicated that P & G product structure adjustment is a bit wise.

Traditional P & G's focus on the market?? Shampoo and shower gel, actually become the Chinese daily chemical industry, the hardest hit by new entrants in this field a lot of people were driven to the wall of. Segmentation strategy by positioning the introduction of a new bath products, like the grain of rice on to write more words, as there is no substantive significance. No matter how in-depth segments and then play superb position "acrobatics", and will not cut out a piece of cake, a lot of resources into a war of attrition in which the play can only be a thankless job

The terminal mode of large circulation pattern is difficult to have a devastating threat to China's cosmetic market, spend too much energy to invest in developing bath brand with not much meaning. P & G and if so, to the local daily chemical enterprise Jieru is.

Remove a shampoo brand, pulled a bath brand, while the introduction of two make-up brand?? P & G China's future strategy has undoubtedly been a clear highlight. Those who are complacent in the washing powder, shower gel, shampoo and other fields on the P & G formed a "encirclement" of the local daily chemical enterprise NOTE: the strive and work hard you force it, to those who profit low toiletries fight to the bitter right, P & G does not accompany you to play. Competition in the local daily chemical enterprises lack technique, people are useless naval war with the price of high-end cosmetics market, P & G will be massive lineup.

Do not doubt the possibility of taking this strategic approach?? Not to do so, Procter & Gamble's China Road will become narrower and narrower. Game in the market access to sustainable competitive advantage, strategic distribution of P & G is bound to operate along this line: from starting the trend of consumption structure and commanded the troops into the industry "incremental market" for consumption of first new military and the leader. I think back to P & G to enter the Chinese market is just how successful it: When the Chinese people still use soap and shampoo when P & G began to educate the consumer concept of shampooing every day, enlightenment role for the market to develop a great convenience . The next decade, P & G should continue to be a major success in China, is also bound to serve in certain areas of the emerging consumer educator and pioneer role: Let a man learn to "smug", old habits and maintenance, outdoor activities to pay attention to skin care .

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