Case Study of P&G (Marketing Issues) Essays

924 Words Mar 16th, 2013 4 Pages
| Case 5: P&G | |

Company Background
Porter and Gamble (P&G), founded in 1837, is one of the biggest consumer goods company over the world. P&G sells shampoos, baby care products, medicine and food etc. It not only diversified the product range but also the product width. Therefore, P&G has several brands under one single category but aimed with different customer segments. P&G is also famous for its innovative and customer-oriented approaches. For example, it designed one kind of shampoo which is suitable for Japanese.
With the competitive advantages above, P&G was developing with an appealing growth rate and became one of the top 500 companies
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Moreover, P&G had to spend time on building mutual trust relationship with Chinese local parties as Chinese culture highly emphasized the importance of “Guanxi”.

To attack all these challenges, P&G changed the method of packaging and developed “road shows” instead of its traditions TV advertisements to promote.

* Packaging and prices of the products
Since the new target customers only earned around $2 a day, they could not afford the normal price of its consumer goods. To solve this problem, P&G modified the packages to be used only for once in order to make the price of the products affordable for the new potential customers.

* Road Shows
P&G used its own promotion teams to penetrate the rural areas. It had its own transportation team which decorated with its posters so that people could see the advertisements whenever the cars passed by the villages. Besides, P&G held many activities which attract people to know more about the products. In the activities, the promoters showed how to use the products to the residents. In addition, free samples would be distributed in order to attract the residents to try the products.

It seemed that the marketing strategies were simple to implement but indeed, it spent P&G several years before it gained significant market shares in the new market segments.

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