Chapter 1: Company profile

1.1. Introduction company:

- Company name: Procter & Gamble (P&G)

- Headquarters (city, state, country): Cincinnati, Ohio, United States

- Year founded: 1837

- Number of employees: 99,000+

- Annual revenue (estimate): $76.1 billion (2022)

- Link to website: - Company: https://vn.pg.com/

- Product: https://downy.com/en-us

1.2. Purpose and scope of the report:

With an increasingly competitive fabric softener market, building a marketing strategy for
fabric softener products is extremely important. The research goal of this report is that we
will build a comprehensive marketing plan for Downy products for busy housewives and
people with sensitive skin (both adults and children). The research scope of this article is our
research in the Vietnamese market itself.

Chapter 2: Mission Statament

"The Downy fragrance brings new inspiration every day for you and the whole family”.
Busy families with young children are always served by Downy, especially mothers. Downy
is constantly working to give families with the best fabric softeners possible, ones that not
only offer exceptional softness but also prevent static cling, maintain a long-lasting aroma,
safeguard clothes, and soothe young children's skin. With just one rinse, gives them a lovely
smell. In contrast to its rivals, Downy will set itself apart with a cutting-edge formula that
prolongs aroma retention for up to 7 days, individualized fragrance selections, and
hypoallergenic variations.

Chapter 3: SWOT analysis

Strengths Weaknesses

- Brand reputation: In the laundry care - Price: Product prices mainly target urban
sector, Downy is a well-known and environments and mid-range customer
reputable brand that is renowned for its segments. (Most fabric softener products cost
premium fabric softeners and enduring 100,000 VND or more. If it's below, the capacity
fragrance. will be quite small.)(BachHoaXanh 2023).

- Product quality: Due to its innovative - Dependency on External Factors: The success
formulae, which deliver exceptional of Downy is dependent on outside variables like
results and safeguard fabrics, Downy monetary conditions, disposable income, and
offers superior softness and freshness, customer buying patterns. (The average income
successfully researched on scent transfer per person in 2022 at current prices will reach
technology in the Downy perfume 4.67 million VND, an increase of 11.1
collection, the perfume helps bring out a percentage points compared to 2021. The
seductive scent after every gentle touch average monthly spending per capita will be
on clothes with diverse designs and a full approximately 2.8 million VND, down 3 .3
range of capacities, volumes, and percentage points compared to 2020.)(Vietnam
packaging for customers to choose from 2021).
to suit their consumer need(Downy
2023).

- Innovation: In order to introduce new

and improved products and maintain a
technological edge over rivals in terms of
product characteristics, Downy
consistently invests in research and
development. (Baby conditioners are
increasingly being improved to help
soothe your baby's skin. Softens fabrics
and preserves long-lasting fragrance on
clothes. With WrinkleGuard technology,
clothes are less wrinkled after washing
and easily brightened with the dryer)
(Downy 2023).

- Wide Product Range: Fabric softeners

from Downy come in a variety of scents,
hypoallergenic varieties, and tailored
versions for different types of materials.
Downy is popular, widely distributed, can
be easily found in all grocery stores,
convenience stores, markets. (According
to a survey in Vietnam, there are 10 most
popular types of Downy fabric softener
sold in almost every place such as
markets, supermarkets, Bach Hoa Xanh,
e-commerce platforms,...)(Downy 2023).

- Advertising: Promoted very strongly on

television, newspapers, mass media and
has discount programs, sponsorship of
contests, free trial samples,…

Threats Opportunities

- Intense Competition: The fabric softener - Advertising: Advertise products campaigns

market is fiercely competitive, with many with the participation of leading KOLs. Increase
distinct brands providing products at advertising on social media sites like Facebook,
various price points. Vietnamese people Tik Tok, and others, along with encouraging
today have the tendency of "Vietnamese messaging, to win over customers.
people use Vietnamese products", so there
- Sustainability and Eco-Friendly Practices:
will be many Vietnamese fabric softener
Products that are environmentally friendly are in
brands that compete directly with Downy.
more demand. By highlighting its eco-friendly
(number and market share of discussions
about brands on social media: packaging options and sustainable business
Downy:7%, Comfort:22%; and other methods, Downy may profit from this trend.
brands: 71%)(Buzzmetrics 2023).
- Expansion into New Markets: Downy can
- Changing Consumer Preferences: investigate new markets and areas where the
Downy must adapt and develop to keep brand is underrepresented in order to take
up with shifting consumer expectations advantage of growth and market share
because trends and tastes can change expansion potential.
quickly. (The publicity of the two product
lines focuses on the two elements of
perfume and baby safety: Downy
perfume series: 6,750; Downey baby soft
drinks: 4,630) (Buzzmetrics 2023).

- Economic: Consumer expenditure on

non-essential items, such as fabric
softeners, can be impacted by economic
downturns or variations in disposable
income. (In 2022, the average spending
per capita per month will be
approximately 2.8 million VND, down
3.3 percentage points compared to 2020.
It can be seen that under the impact of the
Covid-19 epidemic, households tend to
tighten spending. , especially households
living in urban areas.) (Vietnam 2021).

Chapter 10: Marketing Strategy: Pricing

 Downy

Pricing Objectives Brings high quality products at reasonable prices to meet their needs.
Downy provides a variety of product lines at reasonable prices, from
products in the mid-range price range to more high-end products with
commensurate prices. By providing many choices of fragrance and
antibacterial and anti-allergic properties for babies, Downy will meet the
diverse needs and budgets of housewives.

Price flexibility

2.6l bag costs 190,000VND

3l bag costs 241,000VND

3.5l bag costs 275,000VND

10 pack x 21ml string costs 21,000VND (BachHoaXanh 2023)

Downy provides baby fabric softener product lines with a variety of

prices. Products can range in price from affordable to high-end, allowing
housewives to choose based on their budget. At the same time, Downy
always strives to provide excellent quality and maximum effectiveness of
fabric softener to ensure the health and comfort of your baby.

Price of Other Comfort: Quite similar

Products in the Line
10 pack x 21ml/21,000VND

1.8l/149,000VND

2.8l/219,000VND (BachHoaXanh 2023)

Price Sensitivity They are housewives in their own homes, so their income may not be
high. Above all, being a mother is not easy, and daily expenses need to be
managed carefully. They need to calculate and spend on other issues but
still have to ensure the health of their children and families, so price
changes will be extremely sensitive to them. To meet the needs of this
 target customer, we have a flexible and appropriate pricing system. We
often have promotions and special offers specifically for stay-at-home
mothers with young children.

10.1.Pricing

Combine both pricing methods to increase sales.

10.1.1.Penatration pricing:

Penetration pricing is a marketing strategy used by businesses to attract customers to a new

product or service by offering a lower price during its initial offering. The lower price helps
a new product or service penetrate the market and attract customers away from competitors.
Market penetration pricing relies on the strategy of using low prices initially to make a wide
number of customers aware of a new product(Penetration Pricing 2023).

The company still needs to attract new customers to increase increase sales volume. With the
goal of attracting customers, the company decided to reduce product prices (10% price
reduction compared to the average price of similar products on the market within 1-2
months). After the marketing campaign is successfully implemented and puts the product in
a new position in the market, the company will adjust the price to match the product value.

10.2.1. Bundle Pricing:

Bundle pricing is a pricing strategy that implies selling multiple items at a more appealing
cost rather than selling them separately at a higher individual price. This approach is widely
used in the e-commerce niche, as well as by service providers. Bundling helps companies
increase sales volume and promote particular products (Price Bundling 2023).

+ Sold in packs of 10 packs 21,000VND; 20 packs 40,000VND

+ Sold in combos of 1 packs of 3l 241,000VND; 2 packs of 3 liters 480,000VND

This price will not be higher than the price of similar products on the market, but customers
will get a more economical price when buying in packs. This form of pricing is used to
attract new customers and retain old customers, increasing revenue.
10.2.Pricing strategies

10.2.1. Pricing strategy when first introducing the Downy baby product

The goal in this stage is to increase product sales:

- Introductory discount: Set an attractive discount for the first products of Donwy baby baby
to attract new customers.

- Co-purchase promotion program: Create product packages sold at preferential prices so

that customers have more choices and feel that Donwy baby's products are of outstanding
value.

- Develop a membership card program: Implement a membership card program to give

discounts to customers who regularly buy from Donwy baby or when reaching a certain
amount in orders.

- Offer incentive programs for the whole family: Support customers when shopping at
Donwy baby with gift promotions and product package discounts for mothers and babies.

- Give gifts to the first customers: Make customers feel special by giving gifts when
purchasing Donwy baby products for the first milestones.

10.2.2.Price adjustment strategy:

- Discount price

+ According to purchase quantity: promotion buy 2 get 1 free; If you buy a lot, you will get a
gift for the baby;

-Discount when buying in large quantities psychological pricing: Will focus on the
customer's preference for cheap, for example in the market 3l/242,000VND is
3l/241,000VND