You are on page 1of 1

1. What strategy was Procter & Gamble pursuing when it first entered foreign markets?

Why do
you think this strategy became less viable later on?

Initially, Procter & Gamble used a specialized marketing strategy as referenced in the opening
sentence. The business created fresh items in Cincinnati then utilized international companies
with some degree of autonomy to These goods are produced, marketed, and distributed
internationally. in some instances, overseas subsidiaries established their own manufacturing
plants and customized the marketing message, brand name, and packaging according to
regional tastes and preferences.

The third paragraph contains the response to the second question. Since the 1980s, when tariffs
and other trade obstacles were loosened or removed, this technique has been less effective.
Because some versions are more efficient or, in the case of food goods, more delectable than
the local version of the P&G product initially made for them, consumers sometimes demand the
imported version.

2. What strategy does P&G appear to be moving toward?

The P&G strategy may be summed up in one word: globalization. As the business has
streamlined its activities into several brands rather than using a geographical department, it
improves resource efficiency in its operations. It allows P&G will focus on buying certain raw
materials from specific seeking for places that provide them for less money and specialized
skilled where labor is less expensive. However, this places certain local jobs in danger. P&G has
reduced its employment, as noted in nations at risk, and the article contains two instances.

3. Recommend a different strategy that you think is better suited for Procter & Gamble. Justify.

It would be recommendable if P&G adopted its strategy once more, but on a newer, larger scale:
on a continental or regional level rather than a national or territorial level. Even for small-scale
goods, various regional economic and political groups have varying technical and safety criteria.
As evidenced by the fact that Kinder Joy from another company was outlawed in the US and
Marmite spreads from the UK were prohibited from being sold in Canada, what may be deemed
safe for the Chinese market may not be safe enough for the American (NAFTA) market or even
the European market where strict EU regulations apply.

On the other hand, it still gives regional departments the authority to modify a global product
for local markets, at least in terms of marketing strategy, even if the product's formulation and
ingredients are the same worldwide. It gives the regional brand departments some latitude to
continue connecting with their local consumers about global brands.

You might also like