Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Different for Gamble Business Environment Assignment Submitted to: Dr. Vinay Sharma Submitted by: Abhimanyu Yadav (03) Anu...
Agenda <ul><li>History of P&G </li></ul><ul><li>Introduction to Case Study </li></ul><ul><li>Issues faced in India </li></...
P&G <ul><li>Fortune 500, American multinational corporation headquartered in Ohio, USA. </li></ul><ul><li>As of 2008, P&G ...
P&G in India - History <ul><li>Entered in India in 1985 through P&G India. </li></ul><ul><li>Ariel brand was launched thro...
Introduction to Case Study <ul><li>Stormed the Japanese market with American Products in American Way. </li></ul><ul><li>E...
Issues faced by P&G in India <ul><li>HLL , Johnson & Johnson, Nirma – Major Competitors for it. </li></ul><ul><li>Ingredie...
P&G in China <ul><li>First MNC to enter in China in 1988. </li></ul><ul><li>Chinese economy was growing rapidly. </li></ul...
Culture <ul><li>“ it is that complex whole which includes knowledge, belief, art, morals, law, custom and other capabiliti...
Elements of Culture <ul><li>Knowledge and Beliefs </li></ul><ul><ul><li>It refer to a people’s prevailing notions of reali...
Cultural Adaptation <ul><li>It refers to the manner in which a social system or an individual fits into the physical or so...
Cultural Conformity <ul><li>Individuals in a culture tend either to conform to the cultural norms or to deviate from them....
Cultural lag <ul><li>It places constraints on the scope of social change through technological development. </li></ul><ul>...
Cultural Traits <ul><li>Low-Context and High-Context Cultures </li></ul><ul><li>Masculine and Feminine Cultures </li></ul>...
Other Cultural factors <ul><li>Religion </li></ul><ul><ul><li>Different people have their own religious convictions, belie...
Other Cultural factors contd. <ul><li>Ethnodomination </li></ul><ul><ul><li>It is a situation where an ethnic group occupi...
Other Cultural factors contd. <ul><li>Language </li></ul><ul><ul><li>Differences in the language is a very important probl...
Other Cultural factors contd. <ul><li>Consumer Preferences ,Habits and Beliefs </li></ul><ul><ul><li>Significant differenc...
Questions <ul><li>Discuss the reasons for the initial failure of P&G in Japan. </li></ul><ul><li>Where did P&G go wrong in...
Upcoming SlideShare
Loading in …5
×

P&g 2003

3,954 views

Published on

Published in: Business
  • Be the first to comment

P&g 2003

  1. 1. Different for Gamble Business Environment Assignment Submitted to: Dr. Vinay Sharma Submitted by: Abhimanyu Yadav (03) Anupam Singh (14) Arpit Agrawal (15) Mayank Jain (39) Milind Ramteke (56) Rishikesh Kaushik (57)
  2. 2. Agenda <ul><li>History of P&G </li></ul><ul><li>Introduction to Case Study </li></ul><ul><li>Issues faced in India </li></ul><ul><li>P&G in China </li></ul><ul><li>Culture and its elements </li></ul><ul><li>Cultural Adaptation </li></ul><ul><li>Cultural Conformity and Cultural Lag </li></ul><ul><li>Cultural Traits </li></ul><ul><li>Other Cultural Factors </li></ul><ul><li>Questions </li></ul>
  3. 3. P&G <ul><li>Fortune 500, American multinational corporation headquartered in Ohio, USA. </li></ul><ul><li>As of 2008, P&G is the 8th largest corporation in the world by market capitalization. </li></ul><ul><li>14th largest US company by profit. </li></ul><ul><li>It is 10th in Fortune's Most Admired Companies list. </li></ul><ul><li>Global sales of P&G was higher than Unilever but its Indian sales was less than half of Unilever in FY ’09. </li></ul>
  4. 4. P&G in India - History <ul><li>Entered in India in 1985 through P&G India. </li></ul><ul><li>Ariel brand was launched through this. </li></ul><ul><li>In 1993, Ariel was transferred to P&G Home Products, a 100% subsidiary of P&G. </li></ul><ul><li>Enters Hair care industry in 1995 with Pantene Pro-V. </li></ul><ul><li>In 2003, launched Pampers. </li></ul><ul><li>Total revenue at $79 billion in 2009. </li></ul>
  5. 5. Introduction to Case Study <ul><li>Stormed the Japanese market with American Products in American Way. </li></ul><ul><li>Entered India as most admired marketing company in early 90s. </li></ul><ul><li>P&G India with 51% stake launched Ariel Brand. Later raised its stake to 65%. </li></ul><ul><li>P&G established P&G Home Products and transferred Ariel to it. </li></ul>
  6. 6. Issues faced by P&G in India <ul><li>HLL , Johnson & Johnson, Nirma – Major Competitors for it. </li></ul><ul><li>Ingredients imported by P&G were costly due to heavy custom duty. </li></ul><ul><li>Rupee devaluation in 1991 further aggravated the problem </li></ul><ul><li>Could not successfully implement the ‘Compact’ technology adopted by KAO in Japan. </li></ul>
  7. 7. P&G in China <ul><li>First MNC to enter in China in 1988. </li></ul><ul><li>Chinese economy was growing rapidly. </li></ul><ul><li>High disposable income of Chinese. </li></ul><ul><li>P&G offered high quality products over shoddy government products. </li></ul><ul><li>Chinese culture was easier to understand. </li></ul>
  8. 8. Culture <ul><li>“ it is that complex whole which includes knowledge, belief, art, morals, law, custom and other capabilities and habits acquired by man as a member of society.”- E.B. Taylor </li></ul><ul><li>“ the total life way of people”- Kluckhohn </li></ul>
  9. 9. Elements of Culture <ul><li>Knowledge and Beliefs </li></ul><ul><ul><li>It refer to a people’s prevailing notions of reality. </li></ul></ul><ul><li>Ideals </li></ul><ul><ul><li>It refer to the societal norms which define what is expected customary right or proper in a given situation. </li></ul></ul><ul><li>Preferences </li></ul><ul><ul><li>It refers to societies definition of those things in life which are attractive or unattractive as objects of desire. </li></ul></ul>
  10. 10. Cultural Adaptation <ul><li>It refers to the manner in which a social system or an individual fits into the physical or social environment. </li></ul><ul><li>The firm and its people will have to adapt to the environment of the different markets. </li></ul><ul><li>Every difference of environment means a difference in our habits, our ways of living. </li></ul>
  11. 11. Cultural Conformity <ul><li>Individuals in a culture tend either to conform to the cultural norms or to deviate from them. </li></ul><ul><li>If a society is characterized by blind conformity, it would be very difficult to market new revolutionary ideas. </li></ul>
  12. 12. Cultural lag <ul><li>It places constraints on the scope of social change through technological development. </li></ul><ul><li>It indicates that different markets may be in a different levels of readiness to accept a new product or idea. </li></ul><ul><li>It would be a blunder to introduce a product to market which is not ready to adopt it. </li></ul>
  13. 13. Cultural Traits <ul><li>Low-Context and High-Context Cultures </li></ul><ul><li>Masculine and Feminine Cultures </li></ul><ul><li>Monochronic and PolyChronic Societies </li></ul><ul><li>Universalism vs. Particularism </li></ul><ul><li>Individualism vs. Communitarism </li></ul><ul><li>Neutral vs. emotional </li></ul><ul><li>Specific vs. Diffuse </li></ul><ul><li>Achievement vs. Ascription </li></ul>
  14. 14. Other Cultural factors <ul><li>Religion </li></ul><ul><ul><li>Different people have their own religious convictions, beliefs, sentiments, customs, rituals, festivals etc. The cost of ignoring certain religious aspects could be very high in business. </li></ul></ul><ul><ul><li>E.g. American fast food chain serving beef in India. </li></ul></ul>
  15. 15. Other Cultural factors contd. <ul><li>Ethnodomination </li></ul><ul><ul><li>It is a situation where an ethnic group occupies a majority position in a channel of distribution with respect to the ownership and control of physical and financial resources. </li></ul></ul><ul><ul><li>E.g. Banks in Kerala </li></ul></ul>
  16. 16. Other Cultural factors contd. <ul><li>Language </li></ul><ul><ul><li>Differences in the language is a very important problem area in business. </li></ul></ul><ul><ul><li>India has 18 officially recognized languages and 1652 mother tongues listed by census of India. </li></ul></ul><ul><ul><li>E.g. The term ‘the project went bomb’ in USA and UK. </li></ul></ul><ul><ul><li>Ford’s world truck ‘fierra’ in Spain. </li></ul></ul>
  17. 17. Other Cultural factors contd. <ul><li>Consumer Preferences ,Habits and Beliefs </li></ul><ul><ul><li>Significant differences in the tastes and preferences may exists within the same country. Eg:- Nescafe share in Mumbai and Bangalore and Chennai. </li></ul></ul><ul><ul><li>Difference in the attitude towards packaging between the American and Japanese. </li></ul></ul><ul><ul><li>Nature of use of products. Eg:- Cola drinks in USA and India. </li></ul></ul>
  18. 18. Questions <ul><li>Discuss the reasons for the initial failure of P&G in Japan. </li></ul><ul><li>Where did P&G go wrong in the evaluation of Indian market and its strategy? </li></ul><ul><li>Discuss the reasons for the differences in the performance of P&G in India and China. </li></ul>

×