MARKETING IN ADVERSE ECONOMIC CLIMATES

 MARKETING IN ADVERSE ECONOMIC CLIMATES

In 1837 William Procter and James Gamble, two innovative businessmen set out to make candles and soap out of hog tallow from Cincinnati' s meat packing industry. In 1915, the company began its international thrust when it built a manufacturing facility outside the United States, in Canada. In 1948, the company began its first Latin American subsidiary with a plant in Mexico and in 1954, it expanded into Europe.

Today, P&G estimates that its products already can be found in more than 90 percent of all U.S. homes, and more than 20 percent of all homes in the world. The company's list of soap and laundry products includes: Bold, Dreft, Bounce, Cheer, Era, Tide, Downy, and Gain laundry products; Dawn, Ivory, Joy and Cascade dish soaps; and Mr. Clean, Comet, and Spic & Span cleansers. P&G's paper products division peddles such mainstays as Charmin toilet tissue and Pampers diapers. The health care divi

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be deciding product range. 2. CASH FLOW ISSUES -- Extending commercial credit is risky enough in a stable economy, but in one where the value of a currency changes throughout the day, credit presented some major transaction and translation exposures. 3. REPUTATION ISSUES -- P & G was known to have good products -- its detergent Ace Lemon for instance, was a market leader -- but situations beyond its control were threatening P & G's good name. Alternatives The P & G strategy team had four main alternatives. 1. SHUT DOWN STRATEGY -- This would involve sacrificing market share, losing customers and causing ill-will. However, it would cut the losses from the operation and have a minor (at the time) impact on P & G's profits. 2. GENGHIS KHAN STRATEGY -- This strategy, attributed to a Harvard Professor, refers to the technique of the "home office warriors" invading a "settlement," and setting up new and alien rule. This is a dangerous strategy since it alienates many management levels and governments (Hoffman, 1994, 69). 3. HOME RULE STRATEGY -- Defer all decisions to the home office. One management consultant for P & G explains it like this. "P&G must guard against losing its grip as it expands overseas. It's different aroun
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Some common words found in the essay are:
Titanic Hoffman, Exporting OPEC, G'S Decision, Latin America, Raphael Henao, RULE STRATEGY, Spic Span, Internal Operations, MATURITY ISSUES, John Pepper, strategy team, hoffman 1994 69, home office, 1994 69, strategy --, hoffman 1994, issues --, cash flow, g's strategies, o'hanlon 1997, latin america, home rule strategy, genghis khan strategy, product maturity issues, cash flow issues,
Approximate Word count = 1862
Approximate Pages = 7 (250 words per page)