International Marketing
Proctor & Gamble originated in 1837, when William Proctor and James Gamble formed a partnership in Cincinnati, Ohio. The partnership flourished making the company a gaining name as principled manufacturer of high quality consumer goods sold at competitive prices. By 1992 Proctor & Gamble was a multinational company with annual sales of almost $30 billion profits exceeding $1.8 billion, and a reputation for quality products, high integrity, strong marketing, and conservative management. When P&G grew they became more and more interested in foreign markets. In 1992 they had sold their products in more than 140 countries around the world.
In 1991 P&G after being satisfied with their success with Charmin Bounty and Puffs they decided they wanted to expand their business to foreign lands. They decided that Canada was the best and most logical choice to make that first step because of its location and free trade between Canada and the U.S. In 1991 P&G found that Canadian Pacific Product Company, a large paper company was prepared to see Facelle Paper Products, it’s tissue division. Facelle was a medium sized manufacturer and marketer of tissue, towel and sanitary products. So for 185 million P&G bought the Facelle Co.
Proctor & Gamble had to consider many things when entering the market in Canada. Tissue products were inexpensive, widely used and were frequently purchased (on average once every two weeks.) Brand swi...
Unilever was formed in 1930 when British soap maker Lever Brothers merged with the Dutch company Margarine Unie. This merger “allowed both companies to benefit from many raw materials and resources that they had in common” (Kerin and Robertson 600). Unilever Canada is a division of the international Unilever group, headed by two paren...
P&G was founded in 1837 by William Procter and James Gamble as a maker of soaps and candles. P&G was known in Corporate America as a company to be admired and imitated. In addition, it was envied for its profitability as well as strong brand name. P&G has a long standing reputation as having life long employees. This dedication and loyalty by P&G's employees created the notion that outside sources were unwelcome and all products and ideas must come from within, however, this is not the way of the future.
It’s interesting reading about large consumer brands and their various methodologies for consumer research as it relates to new product development. In the consumables business, P&G is the heavyweight and is the pinnacle of research with their expertise in identifying the products that resonate with consumers. They also have manufacturing and distribution dialed in which makes them the “ideal” that many manufacturing-driven organizations aspire to be like.
Proctor and Gamble was founded in Cincinnati, OH, by William Proctor and James Gamble in 1837. Initially the company was started to compete with the 14 other soap and candle makers already established in Cincinnati, but around the end of the century, Proctor and Gamble dropped candle manufacturing altogether to focus on soap production. By 1890, Proctor and Gamble had increased their production to over 30 different types of soap.
Procter and Gamble (P&G) and Colgate-Palmolive (C-P) are two of the largest consumer goods company in the world and have been in the industry since the 80s. The companies manufacture and market fast moving consumer goods (FMCG) such as household products, personal care and hygiene, targeting at various segments of consumers. Among the brands carried by P&G are Downy, Olay, Tide, Clairol and Bounty. Popular brands under C-P are Palmolive, Kleenex, and Colgate.
The man behind the company is Milton S. Hershey. Hershey’s and his incredible story; he went from being in formally educated and almost bankrupt by he was thirty to one of the most successful and wealthiest entrepreneur. He started his career in the candy business with a four year apprenticeship with a candy-maker in Lancaster, Pennsylvania. Next, Hershey wanted to start his own company and from here on it wasn't an easy journey for Hershey; he faced many obstacles during his climb to success. In 1876, he ventured off to Philadelphia to start his own candy business which ultimately failed. After this failure he found himself in Denver working with a confectioner. It was here that Hershey learned how to make the caramels using milk. Afterwards, Hershey decided to give it another go at starting his own business in New York City, but again he attempt ended in failure and he moved back to Lanchester. Here he began selling his car...
In 1991, CP launched new products in the U.S market CP and held 43% of the world toothpaste market and 16% of the world toothbrush market. Other oral care products included dental floss and mouth rinses. In 1991, worldwide sales of CP's oral care products increased 12% to $1.3 billion, accounting for 22% of CP's total sales.
The international business development has heightened the importance of international market selection (IMS) of companies, especially for their exporting strategy. However, not many companies really comprehend the geographical, social, economic characteristics of foreign countries in comparison with their home countries (Cavusgil, 1985). This fact has challenged many studies to create the optimal approach for IMS. The major question is: Which foreign market should a company enter? Thus, this report focuses on providing a practical consultancy to evaluate and determine its most appropriate foreign markets.
Relationships have been in place with two main groups in Singapore long before Proctor and Gamble ever decided to build a plant. The Economic Development Board and A*Star’s Institute for Materials Research and Engineering are the two main groups they have been involved with. Since Proctor and Gamble built these relationships before building a plant in Singapore they have thus established a strategic alliance with Singapore. The Economic Development Board and A*Star’s Institute for Materials Research and Engineering have come together with Proctor and Gamble to share resources and complete a project. Proctor and Gamble benefit from setting up a strategic alliance with A*Star by getting the privilege of looking at IMRE’s innovative research (Moneycontrol.com, 2008). In return for this preferential treatment, P&G shares its new innovations with A*Star’s IMRE (Moneycontrol.com, 2008).
Once America’s most innovative consumer products company, Procter and Gamble (P&G) started by selling soaps and candles in a small Cincinnati storefront in 1837 (Procter and Gamble, 2008). After a hundred and seventy-one years P&G has grown to over one hundred household brands in over eighty countries (Markels 2006). Their products range from air fresheners to prescription drugs. However, as P&G headed into the twenty-first century they announced that they would not be meeting their 1st quarter earnings forecast [Lafley, 2003]. Revenue margins were dropping and P&G was quickly losing market share to Kimberly Clark and Johnson & Johnson. After missed earnings P&G’s stock price fell from $59.18 to $26.50 between January 2000 and March 2000 (PG). Upset, the board of directors pressured then CEO Durk Jager to resign after a lack luster attempt at turning P&G around and replaced him A.G Lafley, an unproven CEO, whom analysts felt lacked the experience to give P&G a much needed clean up (Lafley, 2003).
L’Oreal was started in 1907 by French chemist, Eugene Schueller, who developed the world’s first synthetic hair-color product, L’Aureole. By 1912 his hair products were sold in France, Netherlands, Austria and Italy. In the mid-1930s, Schueller moved into the hygiene and toiletry sectors of the cosmetic market with great success. L’Oreal soon earned the reputation as the leader in European hair coloring and skin care products.
Colgate is a high ranked oral hygiene company that produces toothpastes, mouthwashes, toothbrushes and dental floss that was founded in 1807 by William Colgate in New York City. In 1820, Colgate built their first starch factory in New Jersey. Years later, in 1857, the founder William Colgate death resulted in the company being passed down to his son Samuel Colgate. In 1864, Colgate collaborated with B.J. Johnson who founded the Palmolive Company. The Colgate-Palmolive Company began having much success in the late 1800’s with all of their new products such as hand soaps and the many different appearances of toothpaste from glass jars to collapsible tubes. In 1900, Colgate won top honors in Paris at the World’s Fair for their soaps and perfumes. Colgate was very successful internationally that they came established in Europe, Canada, Asia, Latin America, and Africa. After so many accomplishments internationally and locally, “Colgate-Palmolive Company” was officially the company’s name in 1953. By the late 1900’s, Colgate sold over 1.6 million toothbrushes annually and was serving over 56 countries and hits the $5 billion mark in sales. The company began initiating an Oral Care program after collaborating up Kolynos in Latin America. The oral care program, which is called Bright Smiles, Bright Futures that is established to 50 countries and serves over 50 million children a year. Today, the CEO of Colgate is Ian M. Cook & Colgate’s focuses are Oral Care, Personal Care, Pet Nutrition, and Home Care and provides in over 200 countries and have numerous awards including 2013 World’s Most Ethical Companies from Ethisphere Magazine. In my research, based on preliminary information, I will find evidence that will attempt to pro...
As part of its innovation strategy, Colgate Palmolive (CP) decided to manufacture a new product-toothbrush in the early 90s. This was after some extensive research was done to determine consumer purchase behavior and the extent of competitive rivalry in the industry. According to Allprojectsmba.com (2010), research can be done by using a number of methods to collect the data that are analyzed to draw conclusions. Such methods include interviews, focus group, questionnaires and online research. Interviews can be done either one on one or via the telephone where the researcher/interviewer selects a sample that is representative of the whole consumer population. The interviewer asks and interacts with each person in the sample to pick up the information he needs. Alternatively, questionnaires can be produced and mailed to respondents who fill them and ...
Regardless of the success of your company on a national scale, to engage yourself in a successful venture outside of your borders requires several critical elements that one must acknowledge and apply with great care. One of those requirements would be to thoroughly research the cultural environment in which you wish to launch your product no matter how popular and indispensable you believe it might be. In the past, many national giants have hit the wall when introducing a foreign market or launching a new marketing campaign because of the cultural gap they encountered on the other side of their borders. Another way of preventing a flop on an international market is to carefully study the economical past of this country, which might differ quite a bit from the one the company flourished in. In addition to the previous precautions, it Would be advise to make sure that your product will blend seamlessly within the spending habits of the consumers. Overall, meticulous market studies and patience often constitute the way to success on a foreign soil.