Different for Gamble

8/2/2019 Different for Gamble

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Presentation on Different for Gamble case study

Submitted to: Submitted by:

Prof. Pragya Keshari Suyash ChaturvediAvinash AstyaSiddharthArya


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Summary P&G is a global consumer product giant, it entered in

Japanese market with American products and initiallywere unsuccessful. Until 1991 when it turned out for

then second most favorable market after they adaptedto Japanese marketing culture.

It entered Indian market in 1985 were HLL andJohnson & Johnson already had strong presence.

P&G restructured themselves after suffering lowerrevenues in India but did not leave operations.

Meanwhile they were also operating in China whichwas a favorable territory for them.


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There premium brand was Ariel which was propagatedby lower cost per wash.

P&G had to import certain ingredient which madeAriel costlier than competitors products in detergent.

HLL fought back with its premium brand Surf Excel.

There compact technology was not a success in India.

There low cost per wash concept wasnt populareither.

BY 1996 Ariel's equity as high performance waseffected and its equity was also getting eroded.


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SWOT AnalysisStrengths

P&G was globally Known as most admired

marketing machine. Showed its adaptation capabilities in Japanese

market were it suffered loss initially but convertedit into profitable market in 1991.

Established it self in Chinese market with the helpof proper penetration plan.

Introduced innovative compact technology.


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Weaknesses

Made several investments in India which did not paid

of convincingly. Did not adapted according to price sensitive Indian

market.

Couldnt promote its low cost per wash concept

properly. Couldnt perform well in target segment of high

disposable income group.


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Opportunity

Being an MNC company has operated convincingly in

several locations, Company can use its previousadaptation knowledge in Indian context as well andcan get good sales figure.


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Threats

Indian environment was not favorable for P&G and

they had to import material to India which increasedcost of products.

Local players like HLL were operating nicely in Indianmarket and were giving good competition in each

segment of detergent.


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Questions and AnswersQ1 Discuss the reasons for the initial failure of P&G inJapan.

Ans. Following are the reasons of initial failure of P&G in

Japan. IT entered Japanese market selling American products ,used American sales methods and also American managersfor the task.

P&G failed to study and adapt according to Japanese

market. It failed to study Japanese consumer behavior which wasdone nicely by local players.


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Q2. Where did P&G go wrong (if it did) in the evaluation ofIndian market and its strategy?

Ans. Following are situations where P&G went wrong. Did not scan Indian market environment properly.

Did not adapted according to price sensitive Indian market.

Couldnt promote its low cost per wash concept properly.

Couldnt perform well in targeted segment of high disposableincome group.

They did not pay much attention to competitors marketingstrategy in Indian market .


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Q3. Discuss the reason for the difference inperformance of P&G in India and China.

Ans.

P&G was one of the first entrant after Chinese liberalizationpolicies while in India they had to face stiff competition fromalready present HLL

Par capita income in China was competitively higher than India

therefore it was easier to operate in Chinese market. China was growing faster than India.

There was more disposable income available to Chinese .

P&G understood Chinese culture better than Indian culture.

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Different for Gamble