Procter & Gamble Italy: The Pringles Launch
1. A brief introduction of the situation presented in the case
Procter and Gamble (P&G) was founded in 1837 in Cincinnati, Ohio, USA. The innovative strategy & intimate understanding of consumer needs, made this small family-run to become one of the world´s most important consumer goods businesses. In 1980 became a truly global company investing in news companies and expanding its presence internationally. Around 1999 more than 300 brands in 140 countries generating total sales more than 38 billion dollars and provide jobs to 110,000 employees, investing two billion dollars (4.5% of total sales) to research and development. The company is the leader in numerous market sectors which major capabilities was its ability to link multiple technologies in order to create innovative, highly original products. P&G serves approximately 4.4 billion people around the world with its brands. The company has one of the strongest portfolios of trusted, quality, leadership brands (see chart 1).
Chart 1 – P&G Brands
P&G started up business in Europe in 1924 with the acquisition of Thomas Hedley in Great Britain. In 1957 when American snack market promised a great growth potential, born Pringles. After 13 years P&G finally created a winning product. In 1999 the European market was 30% of P&G´s total sales, with more 28,000 employees, 35 manufacturing plants and 06 technical research and planning centers and 100 brands in 31 countries. In Italy, P&G´s employed 2,000 people and it’s headquarter is located in Rome with fourth factories and two research centers. In 1998 the brand manager of Pringles in P&G Italy, Emanuele Carando, believed in the ideas that the team had developed but is necessary to apply the strategy of GBU would mean a major change in