Global Markets Final Exam: The Pringles Launch
Introduction to Italy
In order to ensure a successful launch for Pringles in Italy, Proctor and Gamble (P&G) needs to tailor their marketing strategies to the culture of Italy. While experiences from Pringles launches throughout the world can be helpful, there is no guarantee that Pringles can achieve the same level of success in Italy. P&G has a very unique and popular product in Pringles, but it will require a correct marketing strategy focusing on Italian consumers in order to be successful. Italy is clearly different from other European countries. Some large brands that are popular throughout Europe, such as Nike, have become extremely popular in Italy. Certain brands such as Nutella and Vespa have achieved this level of success only in Italy. On the other hand, some U.S. leading products such as Kellogg cereals and Pepsi-cola sodas achieved success throughout Europe, but not in Italy. This demonstrates that just because P&G’s marketing strategy has worked in other European countries, it doesn’t mean that its current strategy will work in Italy. Italy vs. Europe
P&G’s management should look at Pringles launches in other European countries to help prepare for the Italian launch. At the same time, they need to recognize that Italy is very different from these other countries. P&G first achieved success in the U.K. and Germany, countries where consumption patterns were similar to those in the North American market. Pringles began to expand into the southern European market as well, where launches in Spain and Greece both achieved success. In southern Europe, consumption patterns were entirely different. Rather than grabbing market share for the snack market, these countries required Pringles to try to modify the consumption habits of consumers. For example, Italy eats a larger percentage of their meals at home (77% for lunch, 90% for dinner) compared to the US (< 50%). This clearly translates into less snack food consumption and an immediate less favorable outcome for Pringles. Another issue with Italian consumption habits is the widespread perception that potato chips are unhealthy. These cultural differences must be addressed to a greater degree than elsewhere. In Pringles ads, P&G should attempt to emphasize the benefits and fun associated with snacking (as done in the current ads), because the Italian market is not necessarily familiar with these concepts. In the future, P&G may also consider marketing Low-Fat/Healthier brands of Pringles in Italy, to deal with the health-conscious consumers. Test launches have been run in other European countries such as Spain and Germany before their launches of Pringles. Both Spain and Germany have experienced success with Pringles. The market test results of Italy can be compared to those of Spain and Germany to gain projections on future outcomes. The market tests results came out very favorably for Pringles (See Exhibit 24). Results from purchase intention, value rating, and likeability were all at least as good as those in Spain and Germany. Given that Pringles was very successful in both of these countries, it looks like it is definitely possible for the same to occur in Italy. Market tests revealed that Italian consumers did think that Pringles were unique and a good product. In terms of the flavors to launch initially, both BBQ and Paprika were successful, with BBQ seeming more innovative and Paprika seeming more reassuring for regular consumption. P&G should definitely attempt to expand flavors in Italy over time, but if the added costs of expanding flavor lines is too high initially (additional fixed costs > additional demand generated), Paprika may be the safest initial flavor because it will generate repeat purchases, which will aid in building the brand and reputation of Pringles in Italy. Consumption Trend
While the amount of potato chip consumption in Italy may be lower than that of other...
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