Note: Sample below may appear distorted but all corresponding word document files contain proper formattingExcerpt from Term Paper:
a) the fast growth specific to the Russian market - if only 53% of women reported using regular pads in 1996, a year later, the percentage of women stating the same thing increased to 78% (i.e. A 47% increase) b) the negative perception of tampons allowing a generous market share for pads - if in 1996, 37% of women reported using tampons on a regular basis, in 1997, only 20% of them continued to use such products c) the Russian women's tendency to move from traditional pads to the more sophisticated ones using Ultra technology and having wings (Plus) - in 1997, Always Plus registered a 5.2% unit share compared with Always Classic which reported a 2.9% unit share for the same year while Always Ultra reported a unit share five times higher that the one in the previous year.
a) the high uncertainty of the Russian market due to unpredictable political, economic or social maneuvers b) the low level of income reaching a monthly average of $220 per household c) the unfair distribution of income between Moscow and the regions, negatively impacting on P&G sales as the adherence on the Russian capital's market is more fragile because of not reaching the pharmaceutical channel d) the irregular payment that Russian employees receive makes them give up brand preferences and choose cheaper products fitting their income level e) the considerable growth (88%) that the Polish brand, Bella, achieved in 1997 f) parallel imports which consist of fuelling the Russian market with products bought at lower prices in neighbor countries.
Identifying, evaluating, and choosing alternatives
In order to ban parallel imports, P&G Russia may consider the following alternatives:
1) reducing prices for the Always pads offered on the Russian market in order to line up this outlet to the neighboring ones
2) offering major discounts to wholesalers who buy large quantities of merchandise
3) compelling the P&G warehouses from the neighbor countries to sell products only to wholesalers from the respective countries.
The first alternative will contradict the general policy that has been applied to the Russian market so far. Thus, the corporate image might receive a major shock because Always will not be perceived as a premium brand anymore. Being given Russians' skepticism to sudden maneuvers, most consumers will probably think that the price decrease is a result of lower quality or less sophisticated technologies. Certainly, the company could try to prevent such negative consequences by organizing an advertising campaign emphasizing that the lower price is a reward for the consumers' loyalty to the brand or is the natural result of more advanced technologies that allowed the company to reduce its costs. Still, considering the rational profile of Russians and their negative experiences from the Soviet Era, the campaign above will probably have poor results.
The second alternative is much more viable because it allows the Always brand to preserve its price. And here is why: the large or small stores directly fuelled by P&G and having an exclusivity contract with the American company as result of the McVan method will continue to sell products at the same price while wholesalers will increase their revenues by buying at a cheaper price and selling at the price used before. Undoubtedly, there may exist temporary falls in the open-street market price but these will not be significant as wholesalers aim at increasing profits.
Moreover, the alternative will determine wholesalers to buy higher quantities and to strive to sell them to consumers.
The third alternative implies giving up local autonomy. Thus, P&G will act as an entity whose worldwide tentacles function according to what the center dictates. Therefore, for positive overall results P&G may compel its subsidiaries from Poland, Hungary, and other Eastern countries to sell their merchandise only to wholesalers from those countries. Yet, such a decision could be blamed for its totalitarian profile as it breaks the rules of free, competitive markets. Consequently, the most appropriate solution is the second one as it manages to precisely target the segment causing problems: wholesalers. Thus, no advertising campaigns will be needed in order to defeat Russians' skepticism and no totalitarian light risk to fall over the company's image.
1. Arnold, David. "Procter & Gamble: Always Russia." Harvard Business School, 2001.[continue]
"Global Pricing Decisions II Proctor" (2007, March 08) Retrieved December 5, 2016, from http://www.paperdue.com/essay/global-pricing-decisions-ii-proctor-39550
"Global Pricing Decisions II Proctor" 08 March 2007. Web.5 December. 2016. <http://www.paperdue.com/essay/global-pricing-decisions-ii-proctor-39550>
"Global Pricing Decisions II Proctor", 08 March 2007, Accessed.5 December. 2016, http://www.paperdue.com/essay/global-pricing-decisions-ii-proctor-39550
At the time of Organization 2005, P&G did not have the ability to report to this specific level, and instead focused purely on geographies first, product area second, and functional areas the last. This clearly made execution of marketing strategies extremely difficult, as in the old organizational structure, country-based marketing managers could decline to sell a specific product or an entire brand. Jager, who had extensive experience in Asia-pacific prior to
His ideas are not important for their uniqueness (though they are singular), but because of the essential similarities between his conservative business utopia and other versions of collectivism" (Gilbert, p. 12). This biographer reports that King Camp Gillette was born in January 1855, the fifth of seven children, to George Wolcott Gillette and Fanny Camp Gillette, in Fond du Lac, Wisconsin; when King was four years old, the family
Theodore Levitt, the world and consumers in particular are moving towards having similar likes, preferences, and tastes and these have caused people to prefer the same products the world over. These products that are given preference are those that are liked by everyone else. "Everyone in the increasingly homogenized world market wants products and features that everybody else wants." Levitt, 1984. This statement is true in the world that we
Technology is helping in the globalization of world economy in more ways than one with the effect that consumers almost everywhere want global products regardless of whether they live in Los Angeles or remote Africa. The forces driving globalization are (i) flow of information (ii) flow of people (iii) Technology: helping economies of scale with cheaper transportation makes global sourcing possible (iv) Globalization is helping attain lower cost as
The deal was immediately criticized as anti-competitive by William Kennard, the chairman of the Federal Communications Commission, and by the Communications Workers of America, which represents some workers at both of the merged companies. But neither government regulators nor union bureaucrats will have the slightest impact on the latest merger. They have neither the power nor the desire to oppose the plans of the giant telecommunications monopolies. More substantial opposition
The corporation or seller could benefit by developing marketing strategies prior to consumer reviews being available online. Seller Response to Novice and Expert Consumers Before allowing consumers to post product reviews on a corporations or sellers website, the seller should consider the size of the segments of expert consumers and novice consumers. For example, the seller may benefit from selling certain products if a significant number of expert consumers exist, especially