This case study examines P&G's entry and operations in foreign markets like Japan, India, and China. P&G stormed the Japanese market but incurred heavy losses for 14 years. In India, P&G entered with high expectations but faced strong competition. P&G's first entry into China was successful in gaining market share. However, P&G faced issues with cultural differences, currency devaluation, and applying similar strategies across different countries, which led to failures. The case study identifies lack of marketing, competitive factors, and not adapting to local cultures as key problems faced by P&G.
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P&G INDIA
1. Case study
Presented by:-
Ajit Bhura
Ashish Buchha
Leeladhar Upadhyay
Nikunj Chandak
Yogesh Duggar
Zeshan Mirza
Batch :-
MBA (1st Sem)
2. Founder - William Procter & James Gamble
Founded - 31 October 1837, United States
CEO David Taylor
Products Home care products & Personal
products
3. Introduction
P & G stormed Japanese market with American
products and American style
Occurs heavy losses for 14 years
Entered India with high expectations with huge
market share
4. Launched various products like home products and
personal products
Various competitors emerges their dominance against
P & G
Cut throat competition leads to negative returns
Entered in China with focus of huge market share
5. First MNC to enter in China leads to success in
capturing market share
Faced issues related to cultural environment, rupees
devaluation etc., leads to losses
Change in strategy and by promoting the products
increases the share in market
6. Findings-Problems
HLL, Johnson & Johnson, Nirma were the various
competitors
Import of ingredients become costly due to heavy
custom duty
Devaluation of rupees resulted to increase in prices
of the products
7. Similar policies for different countries resulted to
companys failure
Could not successfully implemented the compact
technology adopted by KAO in Japan
High prices of the products compared to competitors
product
9. 1. Cultural Environment
Analysis
Different countries have different form of tastes,
preferences and environment
Company should adopt changes according to
suitable environment as per the needs of the
countrys culture
10. Proper promotion should be needed to compete in
market
Marketing should be attractive
2. Lack of marketing
3. Competitive factors
Proper check of competitors and their products
Prices should be competitive as per market
11. 4. Other factors
Should have appropriate knowledge of economy
Proper survey is required to be done before
entering to market
12. Conclusion
Detailed knowledge of the environment of the country
Proper marketing strategies should be adopted to
develop and promote the product
Proper investigation before making investment
Proper alternative plans for any discrepancies
Detailed knowledge of taste & preferences of the
target consumers