The Management Desriptive

Procter and Gamble

Hervé-Alykhan Ladak

Marketing Management

Geneva, the 11.11.2011

Procter and Gamble: Always Russia

Introduction

The Procter & Gamble Company was founded in 1837 and is based in Cincinnati, Ohio. The Company provides consumer packaged goods in the United States and internationally. With 1.6 million shareholders around the globe, P&G operates in more than 160 countries and employs around 135,000 (including the Gillette business).

Operating in Russia since 1991, P&G Russia is now one of the fastest developing subsidiaries of the Procter & Gamble Company. It has in Russia a solid portfolio of over 70 P&G brands, the key of them are Ariel, Tide and many other brand such as Pampers, Pantene. In this case study, we will focus on Always, a leading brand of feminine protection disposal pads launched in 1995, which is part of the paper division, trying to expand its brand and gain a maximum market share and enhance its market penetration.

Strategic and Tactical Problems

Always was the world-leading brand of feminine protection disposal pads, a market worth some USD 7 billion at retail in 1997, of which P&G hold 25% worldwide. This market has been growing steadily at 5%-10% in the previous decade.

In order to increase its market share (by increasing usage) and expand its market penetration, P&G should establish some analysis such as identifying the issues.

1. Macro-economic situation: The economic situation in Russia, after the fall the Soviet regime, has not been very economic friendly to support any flawless market penetration. A persistent macroeconomic uncertainty has been reducing growth in this part of the world.

2. In Russia, not more than 17 % of women subject to use feminine protection pads, uses Always. The Russian global market represents 78%. There is a gap of 61% to cover. On top of that, many women do not use protection pads due to several factors such as being in remote areas where education is...

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