ICA: Global Marketing Environment I. Procter & Gamble in Asia Procter & Gamble p
ID: 381969 • Letter: I
Question
ICA: Global Marketing Environment
I.Procter & Gamble in Asia
Procter & Gamble plans to raise its number of global customers to 5 billion. Two countries integral to P&G’s success is China and India. Some of the challenges companies face in international markets could be socio-cultural, economic, competitive, or political/legal in nature. Look at the examples below and describe which barrier(s)/ challenge(s) P&G faced with expansion into these two countries.
1.In China, parents use cloth diapers on their babies and toilet train them early. P&G therefore marketed studies to show that babies wearing Pampers fall asleep faster.
2.Chinese and Indian consumers cannot afford P&G’s products. P&G found a way to lower the prices of their products by offering single-serve, no-frills packaging.
3.P&G faces a stiff rivalry with Hindustan Unilever in India, which is the market leader in consumer goods.
4.Since most Indian men go to the barber to get a shave, P&G promoted the convenience of its Gillette razors and emphasized that women prefer clean shaves.
Explanation / Answer
1.In China, parents use cloth diapers on their babies and toilet train them early. P&G therefore marketed studies to show that babies wearing Pampers fall asleep faster.
In the above case P&G faced socio-cultural challenges
- Socio cultural includes set of social and cultural behaviours which is followed in a society
- any organisation inorder to enter into an international market would first look at the social cultural barriers they would face.
- In the above case it is the culture of the country to potty train babies early
- Hence P&G had to concentrate on some other marketing techniques to convenience the customer and catch their market share.
-So they marketed by showing studies of babies wearing Pampers falling asleep faster.
2.Chinese and Indian consumers cannot afford P&G’s products. P&G found a way to lower the prices of their products by offering single-serve, no-frills packaging.
In the above case P&G faced
economic challenges
- Economic challenges means taking the economic and financial condition or situation of a country into account while marketing
- a country's economic condition may boost or lower the sales and hence local economies has to be considered
- China is a developing country and same pricing strategy which may work at developed countries may not work here and affordability may be a problem
- hence P&G had to reduce its prices
3.P&G faces a stiff rivalry with Hindustan Unilever in India, which is the market leader in consumer goods.
In the above case P&G faced
competative challenges
- Competative challenges means facing challenges from competitors who provides same kind of products, with quality and at an affordable price
- Hindustan Unilever is a renowned brand in India and it had built its brand loyalty over period of time
- again Hindustan Unilever is into consumer goods and provide quality stuff at affordable prices and hence a strong rivalry for P&G
4.Since most Indian men go to the barber to get a shave, P&G promoted the convenience of its Gillette razors and emphasized that women prefer clean shaves.
In the above case P&G faced
socio cultural challenges
- Socio cultural includes set of social and cultural behaviours which is followed in a society
- the culture and practice in India is that men grow beard and most Indian men go to the barber to get a shave. But P&G tried changing it by showing that ladies prefer a clean shaved men.'