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Medium Product Launch Profitability Pricing

Cups

#Consumer Goods #Consumer Packaged Goods
ProHub Comment

This is a comprehensive product launch case that integrates market sizing, pricing strategy, and cannibalization analysis. The case structure builds sequentially, requiring candidates to synthesize insights from multiple exhibits and calculations to reach a final recommendation on whether P&G should enter the menstrual cup market at a calculated break-even price point.

Estimated Time 15 minutes
Difficulty Medium
Source NYU
50 / 100
Your client is Proctor & Gamble, which owns Tampax and Always, leading menstrual product brands in the US. With the rise in sustainability focused products, P&G’s in-house R&D team has developed a hypoallergenic and eco-friendly high-grade silicone material for use in upcoming products launches. They are interested in using the material to make menstrual cups to add to their line of consumer care products. Should they sell the silicone menstrual cups?

Clarifying Information

  1. P&G will manufacture and sell the product if at least 10% of customers willing to purchase menstrual cups are willing to pay for it, and the inherent cannibalization doesn’t negatively impact sales
  2. Stand alone brands such as Diva Cup, Softcup, Blossom, Saalt, and Lena are competitors
  3. Product is environmentally friendly with an average 5 year lifespan before recycling
  4. R&D investment costs of $12M
  5. Compound discount rate for a 5 year period is 10%
  6. P&G is a large CPG company that owns other menstrual product brands like Tampax (tampons) and Always (pads)