Procter & Gamble in Russia

Paper Summary:

This paper takes a look at the success of Procter & Gamble in the Russian Market. According to the paper Procter & Gamble, the world's leader of feminine protection disposable pads, entered the Russian market in October 1995 and by the end of 1997 it had succeeded in achieving leadership. The paper goes on to say that this success was short lived. The paper then provides a SWOT analysis and then provides potential solutions to the problems that Procter & Gamble is experiencing in Russia.

Outline:
Problem Definition
Situation Analysis
Identifying, Evaluating, and Choosing Alternatives

From the Paper:

"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."

Sample of Sources Used:

• Arnold, David. "Procter & Gamble: Always Russia." Harvard Business School, 2001.

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