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P&G Analysis

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Submitted By ryq0831
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There are several disadvantage if we launch a new product:
1 High cost
1.1 The PDD people concerned Hearst’s idea of launching a line extension because it was a product only equal in efficacy to Plax and placebo(安慰剂) rinses for plaque reduction, which means even if we finally create a new product, we can not have any advantage in functional value.
1.2 The sales people concerned that if they launched a product without enough difference from other products, retailers would replacing units within the existing line. The sale of Scope may decline, or P&G may pay 50000 per stock-keeping unit in listing fees to add the new brand. Either way was costly.
1.3 The Market Research people concerned that Adding reassurances to a product often takes time before consumer accepts the idea.
1.4 The Market Research people concerned that if they launched new products, the new one might cannibalize a large amount of Scope’s sales.(Like warner-lambert, they launched listermint but listermint’s market share "primarily at the expense of listerine and smaller brands")
1.5 The Finance people concerned that launching a line extension would cost a large amount of money.
1.6 The Purchasing people concerned that when P&G launched new product the price of ingredients would increased by 50% and the packaging costs would increase by 0.3 USD per unit.

2 High risk
2.1 The PDD people though it was not easy to replicate Plax’s clinical results with P&G’s stringent test methodology.
2.2 Market Research people concerned that the launch of new product might not increase competitive users’ desire to purchase Scope.
2.3 If P&g launched new product, other companies would also do the same thing.(Game

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