Case 4: P&G PuR
The problem that P&G faces with entering the water purification market is whether or not to continue trying to enter it. Proctor and Gamble saw less than favorable returns on attempting to enter the Pakistan market. They had invested in developing the product and researching how to market the product. However, their launch of the product was ultimately a failure. It was clear to P&G that they would not have commercial success entering this market. So they are left with the decision of cutting their losses and abandoning this initiative or trying to figure out some other way of marketing this product to deliver some value for their investment.
The analysis of the market shows several signs that it is a great market to enter. Not only in simply gaining a share of this market’s huge potential but the side philanthropy effects of being a success with introducing this product was very large. Global access to safe drinking water was very bad in 2002 1.1 billion people did not have access to safe drinking water and that number was expected to rise. Supplying adequate drinking water would prevent an estimate of 1.6 million deaths a year. Providing safe drinking water that was more accessible would allow more time for cultural activities instead of time consuming techniques currently used to disinfect drinking water.
The strengths for P&G’s PuR are:
* P&G is a well known well respected company
* P&G has a focus on health and hygiene markets, they have a strong knowledge of it.
* They invested significantly in research and development
* They strongly support their products through marketing and advertising
* Low cost for the product
The Weaknesses for P&G’s PuR are:
* Their stocks were losing market share
* Employee morale was low due to repeated internal restricting
* Internal divisions arose within the company on whether to continue with product
The opportunities for P&G’s PuR are:...