Procter and Gamble

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Procter and Gamble

HISTORY
American multinational consumer goods co.
Headquarters: Cincinnati, OH
Founded 1839
2012 $83.68B dollars in sales

High 3Q 2010 earnings made analysts question if it was attributed to P&G lowering product prices. There are consistent price increases and decreases within the markets of Procter and Gamble. Reverts to pre-crisis 2008 when in inflation in central and Eastern Europe was still climbing. P&G raised prices during this time to off-set inflation

LOWER PRICES? YES. PRICE CUTS? NO.

July of 2009 – P&G reduced prices in some markets to account for currency changes. Third Quarter of 2010 results reflected $200M price cuts.
CEO Bob McDonald, executed this plan to bring a wider range of consumers to P&G products at lower prices

TIDE NATURALS CHEAPER than TIDE
Tide Natural was created to compete with emerging markets and companies such as Unilever and Colgate-Palmolive Strategy: Create a wide variety of branded products at a variety of price points Product affordability for everyone!

TIERS ARENT JUST FOR TRADE-UPS ANYMORE
"Touching more consumers is not just marketing jargon, Procter & Gamble needs to broaden its product portfolio to reach lower-income consumers. Trade-up can exist going forward, but off a much lower base." - JPMorgan Chase analyst John Faucher

Going Global with P&G “Tide Naturals” strategy by launching; Lower-priced Pampers diapers in Europe
Naturella feminine products in China
Oral care in Latin America
Gillette shaving products in India

Price Cuts in North America?
Analysts believe it is nearly impossible to determine whether retail prices are being adjusted by P&G or by the stores themselves. Retailers are willing to take a hit on Tide prices of it gets consumers to buy other goods. Big box items (i.e. Costco and BJ’s Wholesale Club) prices have decreased across the board.

CONCLUSION
This strategy isn’t only to gain market share it is to gain a wider range of...
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