Procter and Gamble
Topics: Marketing / Pages: 19 (4727 words) / Published: Mar 28th, 2011

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Established in 1837, Proctor and Gamble (P&G) had developed a holy grail of principles and practices. Its philosophy is focused on individual talents, abilities and how best to make use of them. P&G source this talent from within the organization attracting people willing to spend their entire career with the company. Proctor & Gamble has developed a reputation of caution in the industry of household 's sundries and personal care products. It 's marketing strategies and judgements towards different markets stand out to the competition. Extensive marketing research and testing are "trademarks" that distinguish P&G in the industry. "Internal operations at P&G are described as thorough, creative, and aggressive by some, and slow, risk averse, bureaucratic and rigid by others. There was probably an element of truth in both descriptions" 1. Each brand at P&G is in competition with the other. P&G entered the British market in 1926. It developed its European

foothold by acquiring local businesses or setting up sovereign operations. The European Technical Center (ETC) was established in Brussels in 1963 to provide R&D facilities and a small regional management team. By 1981, Europe

represented 15% of P&G 's market. Expansion forced P&G to lay responsibility of operations in the hands of the subsidiaries. It made sense, consumer needs, preferences and habits, technology, competition, national legislation, differed from country to country. Common practice across Europe was to favor national brands. "Each subsidiary was a miniature Proctor and Gamble, with its own brand management structure, its own product development capability, its own advertising agencies, and its own production facilities"2. Into the mid 60 's growth slowed, competition intensified and prices weakened. Management at P&G felt that slowing product innovation was to

blame. Moreover, it was believed that the ETC 's technical facilities were not being fully utilized. Subsequently, management

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