Case 5- Tambrands Overcoming Cultural Resistance
Lydia Fontanez
MGMT-539
Dr. Kay Green
February 10, 2018
Summary
In this case scenario the company Tambrands’s only sell Tampax, which is the best-selling tampon in the world, with 44 percent of the global market. However, the company got concern when its earnings dropped 12 percent accounting for $82.8 million of revenues. According to the article 45 percent of the sales were attributed to the United States market, which was considered closed to its main competitor Playtex. In the western market the company it was already hard to attract more consumers, since 70 percent of women were already using the product.
At this point, the company wanted to try to gain a new market of 1.7 billion …show more content…
On the other hand, the company realized that additionally from the cost of advertising the product globally, which was estimated to be $65 million they would also need a to establish a distribution network.
To that end, the company opt to approach Procter and Gamble to buyout the company, which after negotiations the two companies announced a $1.8 billion deal. Tambrands decision to approach P&G was a smart choice because not only P&G had a good reputation but also had an already established global distribution network and already was operating worldwide. If Tambrands had gone the other route and decided to invest in launching a global campaign and initiating a global distribution network the company would risk losing more earnings and fail.
On the other hand, P&G had benefited from this deal because the company had acquired a solid product that had an established market in the western market, and a good reputation, but also would give P&G the opportunity to add the tampon product, which was already a name brand to their line of products, which in the past was unsuccessful.
List and Analyze …show more content…
The lack of clean water doesn’t allow them to clean their bodies properly and most of the time they miss school, at an average of 4 days each month. This problem affects school attendance, which leads to lower grades, deficient education. P&G supports this program and had helped over 50 million children worldwide. Ono 1997 suggests, “Working with HERO, the Protecting Futures is a comprehensive care program which brings puberty education, a traveling healthcare provider for all the children at these schools, nutritious feeding programs, educational support services, a pad distribution program, and significant construction projects to add restrooms and upgrade the school buildings” (Ono
Lydia Fontanez
MGMT-539
Dr. Kay Green
February 10, 2018
Summary
In this case scenario the company Tambrands’s only sell Tampax, which is the best-selling tampon in the world, with 44 percent of the global market. However, the company got concern when its earnings dropped 12 percent accounting for $82.8 million of revenues. According to the article 45 percent of the sales were attributed to the United States market, which was considered closed to its main competitor Playtex. In the western market the company it was already hard to attract more consumers, since 70 percent of women were already using the product.
At this point, the company wanted to try to gain a new market of 1.7 billion …show more content…
On the other hand, the company realized that additionally from the cost of advertising the product globally, which was estimated to be $65 million they would also need a to establish a distribution network.
To that end, the company opt to approach Procter and Gamble to buyout the company, which after negotiations the two companies announced a $1.8 billion deal. Tambrands decision to approach P&G was a smart choice because not only P&G had a good reputation but also had an already established global distribution network and already was operating worldwide. If Tambrands had gone the other route and decided to invest in launching a global campaign and initiating a global distribution network the company would risk losing more earnings and fail.
On the other hand, P&G had benefited from this deal because the company had acquired a solid product that had an established market in the western market, and a good reputation, but also would give P&G the opportunity to add the tampon product, which was already a name brand to their line of products, which in the past was unsuccessful.
List and Analyze …show more content…
The lack of clean water doesn’t allow them to clean their bodies properly and most of the time they miss school, at an average of 4 days each month. This problem affects school attendance, which leads to lower grades, deficient education. P&G supports this program and had helped over 50 million children worldwide. Ono 1997 suggests, “Working with HERO, the Protecting Futures is a comprehensive care program which brings puberty education, a traveling healthcare provider for all the children at these schools, nutritious feeding programs, educational support services, a pad distribution program, and significant construction projects to add restrooms and upgrade the school buildings” (Ono