28-08-2012, 01:54 PM
Procter and Gamble Case Study
Procter and Gamble Case Study.ppt (Size: 93.5 KB / Downloads: 53)
ETC of Today
Local GM’s Report to Regional VPs that are in the ETC
VPs are largely US expatriates
Local GM’s, who have been accustomed to having a large amount of power before the reorganization of the ETC no longer have the same control as before
Why Form an ETC
Create a united European front
Lower costs by ordering in bulk
Standardize prices
Turn the European system into something similar to the American system, which has worked well for P&G for years
Problems With ETC
GM’s have diminished power and thus diminished roles in the company
GM’s have less of a voice in the decision making process
Such perceptions lead to lowered motivation, and thus less commitment to the P&G cause
Effects on P&G
Create the united European front the ETC was designed to achieve
Develop an awards system to reward the GM’s of profitable countries while motivating the GM’s of less profitable countries to work harder
Give GM’s a voice in the European decision making process
Current Skip Micro Situation
Unilever is releasing Skip Micro in France before our Ariel Ultra
The Skip Micro product is inferior to Ariel Ultra as well as the non-compact detergents
Skip Micro has a better promise: “2=5,” something that we cannot hope to match since our product is “2.2=5”
Two Theories
Destroying the compact market
Skip Micro’s poor performance may deter potential customers from buying compact detergents altogether, thus protecting their own regular detergent and destroying Ariel Ultra’s chances at success
First Mover
Take the first mover advantage and then develop a better product later
Conclusion
Our plans integrate local GMs into the decision making process
Our product is superior to Skip Micro and thus should have no problem competing when we launch later than planned
The United European Front shall bring greater cohesiveness and expansion to the European market