Pringles Launch Case Study Analysis
Translated by
ScribdTranslationsPringles Launch Case Study Analysis
Translated by
ScribdTranslationsUniversity Corporation of Asturias
WORK
PRACTICAL CASE 3
NOMBRE DEL CASO: PAPAS PRINGLES
Presented by
ATALO DAVID MENDOZA DÍAZ
TARAIRA–VAUPÉS 2019
University Corporation of Asturias
Statement
According to experts, only 1% of new product launches that
they are carried out throughout the year successfully arriving in the market. Above all because
two reasons: on one hand, because in many cases the product does not contribute anything
new to the market; and, on the other hand, because it does not meet the created expectations
at its launch.
One of the cases that is often mentioned within that 1% is the launch
from Procter & Gamble's Pringles chips in the Continente chain. The chips
Pringles are an innovative product, among other reasons, because of their can packaging.
Initially the brand belonged to Procter & Gamble, but in 2012,
Kellogg's bought it for 2 billion euros, with the aim of conquering the
snack market. Therefore, when the launch took place that is discussed
in this case, Pringles belonged to Procter&Gamble.
At first glance, the Pringles product had characteristics that made it attractive.
to introduce it into the shelves of different establishments. First of all,
Pringles potato chips had already been introduced in some markets where
had considerably grown the category, due to its premium
Price, twice that of other brands. Secondly, the idea of the product and
its packaging helped to optimize the shelf, because a can of Pringles potatoes
takes up half the space of a bag of chips from another brand. This
made Pringles' efficiency on the shelf four times greater than
other products.
It should be added that the product was not completely unknown. Already
it was included in the assortment of some Continente hypermarkets located
in tourist areas. In 3 of those establishments, the participation of Pringles
it reached up to 5% of the total potatoes. All that with a price 40% higher
that Procter&Gamble suggested for its mass sale in all
Continente hypermarkets.
Furthermore, Pringles was a new product halfway between chips and
snacks.
Taking into account all these backgrounds, and that it is a product
completely innovative and knowing its superior profitability, the chain of
Continent distribution bet decisively on its launch.
To coordinate the launch, multifunctional teams were created, and planning was carried out.
to the slightest detail and monitoring of the action was carried out.
A ten-point code of principles was developed, based on the positive experience of
launch of Pringles.
University Corporation of Asturias
1. Compare the Pringles product with the appropriate brands and products.
2. Involve the entire organization.
3. Plan the launch between manufacturer and distributor.
The launch is the starting point.
5. Make the Pringles product accessible to the customer from the very first moment.
6. Communicate the news to all customers through point-of-sale advertising.
sale.
7. What matters is not what is said, but what is done.
8. Consumption is elastic, one must think about the total of the category.
Every month is launch month.
10. Continuously monitor the brand and the category.
The potato category usually experiences significant growth, but
With the introduction of Pringles, not only did the trend not decrease, but it
multiplied. Pringles contributed an incremental sale that accounted for 93% of the growth
of the category.
An efficient launch is not a project, it is a process, and it is important that
It should be monitored over time. It is key to carry it out by a team.
multifunctional, where anyone can contribute original ideas
regarding the product launch.
Questions:
What prerequisites must a product meet for its launch
be successful?
The Pringles case presents two conditions for a product to be successful.
1. Different proposal: it consists of assessing whether the product actually occupies a
differential niche in the market, whether it is a real innovation and whether people will embrace it
to want.
2. Capture of attention: no matter how innovative or useful a product is, if it
if you want to sell, you have to grab attention. Therefore, you must focus on the
interest and recognition.
University Corporation of Asturias
List the three main reasons that motivated the success of this.
launch.
When all chip brands had a bag packaging strategy
25-gram snack type, Pringles decided to present its product in a packaging
metal cylindrical that then migrated to cardboard. This genius allowed not only
a significant differentiation in the market and the best strategies of
merchandising, but also the optimal protection of the product, thus preventing that
the chips break.
Pringles was an innovative product between chips and snacks, which fell
very good among consumers
3. in addition to the eye-catching and innovative packaging, how tasty they turned out to be
enjoy the Pringles chips, a coordinated launch was also carried out,
planned down to the smallest detail, a marketing project that in every
I was checking the actions taken.
In your opinion, what should be the phases for launching a
product?
1. Before any product launch we would have to verify what it is
the capacity of the industry we want to enter, if the competition is tough
or on the contrary, the entry barriers are flexible.
2. create a different proposal with new or innovated products, that
offer more advantages for the client-consumer, so that they feel that by acquiring
our product will be a different experience
3. Create a concise message: people are not going to spend much time reading a
label, so it is important to create a short, kind, and direct message.
4. Point of Sale Stage: Ease of finding it: no matter how much a...
A product may be the best or the most innovative, but if the consumer does not see it, they will not know.
Therefore, it is necessary to determine its visibility, who its audience is, and what is the best
way for him to see it. Distributors play an important role in this.
what we will use.
5. offer a product at a good price and if the price is above the
competitor products, make the customer feel that this is their field
better purchase option.
conclusion:
Any product that wants to be launched to the market must first carry out a
University Corporation of Asturias
marketing study, it should be something novel at a good price and above all
that potential customers identify with the product.
Bibliography.
JOAN MAGRETTA, TO UNDERSTAND MICHAEL PORTER, PUBLISHING
HOMELAND.
[Link] EXPERTS