Procter &Gamble business & marketing strategies

Thèmes abordés

Procter & Gamble - consumer products - Russia - economic growth

Résumé du document

Procter & Gamble is a famous leading consumer products corporation that manufactures a wide range of products worldwide (300 brands, 140 countries). Among its brands portfolio, “Always” is a brand of feminine hygiene products, including maxi pads, pantiliners, and feminine wipes. It was released in 1983 and became the industry leading brand by 1985.

Russia emerged from 1989, but the real economic growth began in 1997. The main risk out there is instability (political, economical…) but opportunities exist as the country is now really moving fast and going ahead towards a brighter future (significant, rising average income per citizen…) P&G first entered Russia in late 1991 (joint venture with the University of St. Petersburg), and Always was introduced four years later.

Extraits

[...] Potential Solutions: Standardize prices and convince Russian suppliers to allow special conditions (Discounts, payment delays General Conclusion: To sum up, P&G must consider Russian customers (rational approach anticipate changes and cope with uncertainty. Future FemPro strategies must take into consideration the specificity of the rapidly developing Russian market. For this purpose, decisions on products' portfolio, prices and positioning are key success factors. REFERENCES: Official P&G Website World: http://www.pg.com Official P&G Website Russia: http://www.pg.com/ru_RU/ Financial Report: http://www.scribd.com/doc/281845/Procter-Gamble-2000-Annual-Report Main Reading : Procter & Gamble: Always Russia by David J. [...]

[...] Macro Environment of Russia and P&G strategy. Russia emerged from 1989, but the real economic growth began in 1997. The main risk out there is instability (political, economical ) but opportunities exist as the country is now really moving fast and going ahead towards a brighter future (significant, rising average income per citizen ) P&G first entered Russia in late 1991 (joint venture with the University of St. Petersburg), and Always was introduced four years later. Procter &Gamble strategy in Russia is quite different from its usual practices in other emerging markets. [...]

[...] Strategic options for P&G and the Always brand In planning further market development, the management team faces three decisions: Should they maintain the premium price of Always or attempt to develop the mid-market through lower priced brands? It's a key choice of positioning and targeting. It might result in the conquest of a new market which would be a major success. However, we must stay careful because it could also make the brand loose its premium image in Russia. Should they harmonize the different marketing strategies employed in Central and Eastern countries? It's difficult to know how to act on varied markets in different countries. [...]