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Medium Product Launch Profitability Pricing

Cups

#Consumer 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 26 minutes
Difficulty Medium
Source NYU
10 / 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)
Mock Interview
Interviewer

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?

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
Practicing...
Score coming soon
Practice this case with AI Mock Interview

P&G seeks to launch a sustainable menstrual cup using new silicone material. Candidates must assess market size, analyze customer willingness to switch via survey data, calculate an optimal price that offsets cannibalization of existing products (tampons/pads), and determine if the product is feasible to launch based on pricing demand.

Key Insights:

  1. Market sizing requires top-down approach considering addressable population (menstruating women ages 10-50), willingness to use (initially 10%, adjusted to 20% based on survey), and comparable pricing ($40)
  2. Cannibalization analysis is critical—the menstrual cup will cannibalize existing Tampax and Always sales ($675M PV over 5 years), but complementary products (discs, wash, wipes) will generate offsetting revenue ($637.5M PV)
  3. Break-even pricing calculated at ~$30/cup accounts for cannibalization, complementary revenue, and R&D costs ($12M), with launch decision contingent on whether sufficient customer demand exists at this price point across willingness-to-pay segments