Always Russia
PROBLEM STATEMENT
Procter & Gamble which launched its Always brand in Russian market in October 1995 achieved the market leadership in early 1998. In May 1998, P&G was considering 3 important issues. First of all, P&G needs to decide whether it should continue pricing Always at the same level as Western Europe or make it as a mid-priced brand . Second issue was the sustainability of the different marketing strategies in Russia. Finally Procter & Gamble has to decide whether to extend its portfolio by launching Alldays or Tampax.
SITUATION ANALYSIS
Always is the current market leader in Russia with its premium positioning. According to the researches, Russian consumers have a very rational approach towards products and their decisions about the brands are not affected by the emotional attributes. Therefore, it is important to have high quality and convey the correct message to the Russian consumers.
Advertising has a great importance in Russian market. Therefore, P&G needs to try to maintain its share of voice while deciding its marketing strategy.
ALTERNATIVES
Pricing
In terms of pricing, one alternative would be decreasing the prices of Always and position it as a mid-priced brand. This action may make them gain more market share and since the prices won’t be much higher than Poland, wholesalers will stop buying from Poland and start buying from P&G Russia again. However, decreasing prices may have some drawbacks. It is likely that consumers perceive this action as a decrease in the quality. Since Russian consumers are quality conscious, this perception will cause a decrease in the sales.
The other alternative is to create another brand and position it as a mid-priced brand by keeping the Always brand as premium. Since the two major competitors have prices higher than Always, it is possible to increase the prices of all types of products 5%. By this way, P&G will be able to compete in two different segments which will enable them to gain more market
Procter & Gamble which launched its Always brand in Russian market in October 1995 achieved the market leadership in early 1998. In May 1998, P&G was considering 3 important issues. First of all, P&G needs to decide whether it should continue pricing Always at the same level as Western Europe or make it as a mid-priced brand . Second issue was the sustainability of the different marketing strategies in Russia. Finally Procter & Gamble has to decide whether to extend its portfolio by launching Alldays or Tampax.
SITUATION ANALYSIS
Always is the current market leader in Russia with its premium positioning. According to the researches, Russian consumers have a very rational approach towards products and their decisions about the brands are not affected by the emotional attributes. Therefore, it is important to have high quality and convey the correct message to the Russian consumers.
Advertising has a great importance in Russian market. Therefore, P&G needs to try to maintain its share of voice while deciding its marketing strategy.
ALTERNATIVES
Pricing
In terms of pricing, one alternative would be decreasing the prices of Always and position it as a mid-priced brand. This action may make them gain more market share and since the prices won’t be much higher than Poland, wholesalers will stop buying from Poland and start buying from P&G Russia again. However, decreasing prices may have some drawbacks. It is likely that consumers perceive this action as a decrease in the quality. Since Russian consumers are quality conscious, this perception will cause a decrease in the sales.
The other alternative is to create another brand and position it as a mid-priced brand by keeping the Always brand as premium. Since the two major competitors have prices higher than Always, it is possible to increase the prices of all types of products 5%. By this way, P&G will be able to compete in two different segments which will enable them to gain more market