Presentation on Different for Gamble case study

Submitted to: Prof. Pragya Keshari

Submitted by: Suyash Chaturvedi Avinash Astya Siddharth Arya

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

Japanese market with American products and initially were unsuccessful. Until 1991 when it turned out for then second most favorable market after they adapted to Japanese marketing culture. It entered Indian market in 1985 were HLL and Johnson & Johnson already had strong presence. P&G restructured themselves after suffering lower revenues in India but did not leave operations. Meanwhile they were also operating in China which was a favorable territory for them.

 There premium brand was Ariel which was propagated

by lower cost per wash. P&G had to import certain ingredient which made Ariel 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 popular either. BY 1996 Ariel's equity as high performance was effected and its equity was also getting eroded.

SWOT Analysis
Strengths

P&G was globally Known as most admired marketing machine.

Showed its adaptation capabilities in Japanese market were it suffered loss initially but converted it into profitable market in 1991.
Established it self in Chinese market with the help of proper penetration plan. Introduced innovative compact technology.

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.

Opportunity Being an MNC company has operated convincingly in several locations, Company can use its previous adaptation knowledge in Indian context as well and can get good sales figure.

Threats Indian environment was not favorable for P&G and they had to import material to India which increased cost of products. Local players like HLL were operating nicely in Indian market and were giving good competition in each segment of detergent.

Questions and Answers

Q1 Discuss the reasons for the initial failure of P&G in Japan. 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 managers for the task. P&G failed to study and adapt according to Japanese market. It failed to study Japanese consumer behavior which was done nicely by local players.

Q2. Where did P&G go wrong (if it did) in the evaluation of Indian 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 disposable

income group.

They did not pay much attention to competitors marketing

strategy in Indian market .

Q3. Discuss the reason for the difference in performance of P&G in India and China.
Ans. P&G was one of the first entrant after Chinese liberalization policies while in India they had to face stiff competition from already 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.