Homework Question on Procter and Gamble
- Study the attached 2015 Annual Report for Procter & Gamble and then answer the following questions:
- As best you can identify the P&G’s product hierarchy down to the level of some of their product lines like Head&Shoulders (textbook page 337). Their hierarchy is featured on page 23 of the Annual Report. To start they have 5 Need Families. (10 points)
- Identify the performance of each of the 5 reportable segments (10)
- Identify one significant change they made to their product mix in the past year. (5 points)
- Identify a UPC-A code and an EAN-13 for one of the head and shoulders products. Identify what each of the 4 different sets of numbers represents for the UPC-A code.(5 points)
- This question pertains to Chapter 13 on Managing Service Quality, a large part of the chapter. Please read the attached research article on E-Service Quality. Then answer the following questions (10 points in total).
- Why did two separate scales need to be developed to measure to measure e-service quality? How are they different? (5 points)
- Should these scales, or scales similar to these, be implemented in practice? If they should then how will you implement them so that they can have a measurable effect on delivered service quality? (5 points)
- This question is on content from Chapter 14 on pricing. This is an application of markup pricing. Labels are very, very important in answering this question. (10 points in total for this question)
- The total cost (fixed plus variable costs) for a manufacturer to produce a printer is $30. The manufacturer wants a 70% markup on total cost of production.
- What is the selling price the manufacturer should charge the wholesaler who wants to buy a printer? Show how you computed the price and show the check that it is the correct price (3 points).The wholesaler sells printers to the local retailer. The wholesaler wants a 27.5% markup on cost.
- What is the selling price the wholesaler should charge the retailer? Show how you computed this price and show how you checked your work that the price is correct. (3 points)The retailer sells printers to households. The retailer wants a 50% markup on selling price.
- What is the selling price the retailer will charge someone who wants to buy the printer? Show how you determined the price and show how you checked this selling price is correct. (4 points)
Homework Answer on Procter and Gamble
Procter and Gamble’s product hierarchy begins with general beauty products that includes, skin and personal care deodorants, personal cleaning products and that has brands such as head and shoulder, Olay and pantene. After general beauty products we have grooming products such as shave care, and electronic hair removers who possess brands such as fusion, Gillette and mach 3. There is also basic health care products for personal health care, body diagnostics and oral care whose brands include, Crest, Oral-B and Vicks.
Fabric and home care products are the other products that make the highest percentage of products in the hierarchical set up of the product. This includes laundry additives, fabric enhancers and some other products for home products. The brands for these products may include Ariel, dawn and tide. The next group making it as the second based product segment for P&G is baby, feminine and family care products. They have products for general baby care and feminine assortments.
The best performing segment among the five is the baby, feminine and family care products whose earnings account for 26% of the total sales. This also accounts for 30% of the global market share making it the number one competitor in the market. With an approximated 20% market share in the global arena, the fabric and home care segment is the second largest performer in for the company accounting for 24% of the company’s total earnings.