On The Fall Of The Procter & Gamble China's Domestic Brands, "yun Yan"

In 1997, with the decline of ChongQing AoNi , the introducer of vegetable and black-hair shampoo, a large vacant market of this field remained. P&G found this chance and spent three- years for R&D, and then launched the first local brand in China in December 1999, named "Ascend". Out of expectation, "Acend" quitted the stage at most three years later. This brought broad attention from the scopes. What made the leader of daily and chemical product company to suffer such a fiasco? Through detail reference and deeper consideration, the writer summed up the failing factors as following : (1) Losing the basis of needs owing to inaccurate brand position (2) Too high price (3) Rigescent channel relationship (4) Missing the best opportunity for launching the new product due to too long time for R&D (5) Not enough time to develop and to grow up for "Ascend" due to conflict and contradiction between territorial demands and global strategy. By analyzing the failing reason and combining the IMC theory, the writer did the risk analysis and indicated company should carefully deal with new product development, and then listed some suggestions on how to promote the successful probability of developing new products: (1) Carefully choosing the project to develop by considering the impact of all factors. (2) Assuring the consistency between the plan of new Integrated Marketing Communicationsproduct developing and the total strategy frame to give new product develop enough support by effectively allocating the limited resource. (3) Exploding the positivity of each department, keeping sufficient communication and harmony to reduce the cost of product developing and promote the efficiency. (4) Giving sufficient cognition to operation management of new product launch, skillfully handling IMC theory so as to launch new product in right opportunity, at right place, to provide right product for right consumer. (5) Building up company's ability of meeting an emergency, being good to hold market change and make the reasonable adjustment according to actual situation.