Proctor and Gamble in the Indian Market: Case Study
P&G Makes Push in India
In today’s economy, companies have found that the United States and European consumer—packaged goods industry is running dry and is lagging behind. Thus, the emerging markets have now come into play more than ever; in particular the booming economy of India. There are several opportunities for companies to contend for market share where millions upon million of people reside. One company that has somewhat recently to contend for market share in the consumer-packaged good industry is Proctor & Gamble, also known as P&G. Though they have made recent headway in acquiring market share in the emerging markets, gaining further traction in India has and will continue to prove to be a challenge.
P&G is pursuing the Indian market so aggressively for a few specific reasons. One of the most glaring reasons for P&G is that the $24 billion consumer-packaged goods industry is growing at a rate of 12% per year (Cordeiro, 2010). Not only is this an impressive growth rate, this industry growth of course comes at a time when consumer spending is majorly slumping in the U.S. and European markets. The Indian market is also extremely enticing given the fact that one-sixth of the world’s population resides solely throughout India. With this large of a population, one would certainly fathom that there is market share to be had by a given company. According to David Stone, P&G should consider the fact that “GDP per capita measurements indicate a steady rise in income levels in this newly industrialized nation” (2011). As we all know, more income usually means more disposable income to spend on additional products and services. However difficult that P&G may find it to enter the Indian market; these facts are a clear representation of why it is worth the risk for P&G to dip their hands in not just India, but emerging markets in general.
Although entering the Indian market may seem as easy as taking candy from a baby, rest assured P&G has found out very
In today’s economy, companies have found that the United States and European consumer—packaged goods industry is running dry and is lagging behind. Thus, the emerging markets have now come into play more than ever; in particular the booming economy of India. There are several opportunities for companies to contend for market share where millions upon million of people reside. One company that has somewhat recently to contend for market share in the consumer-packaged good industry is Proctor & Gamble, also known as P&G. Though they have made recent headway in acquiring market share in the emerging markets, gaining further traction in India has and will continue to prove to be a challenge.
P&G is pursuing the Indian market so aggressively for a few specific reasons. One of the most glaring reasons for P&G is that the $24 billion consumer-packaged goods industry is growing at a rate of 12% per year (Cordeiro, 2010). Not only is this an impressive growth rate, this industry growth of course comes at a time when consumer spending is majorly slumping in the U.S. and European markets. The Indian market is also extremely enticing given the fact that one-sixth of the world’s population resides solely throughout India. With this large of a population, one would certainly fathom that there is market share to be had by a given company. According to David Stone, P&G should consider the fact that “GDP per capita measurements indicate a steady rise in income levels in this newly industrialized nation” (2011). As we all know, more income usually means more disposable income to spend on additional products and services. However difficult that P&G may find it to enter the Indian market; these facts are a clear representation of why it is worth the risk for P&G to dip their hands in not just India, but emerging markets in general.
Although entering the Indian market may seem as easy as taking candy from a baby, rest assured P&G has found out very
Cited: Cordeiro, Anjali. "P&G Makes Push in India." The Wall Street Journal. Dow Jones and Company, Inc., 22 June 2010. Web. 6 May 2013. . Stone, David J. "A Strategic Game Between Unilever and Procter and Gamble in India." Ezine @rticles. SparkNET, 1 Apr. 2011. Web. 7 May 2013. .