Proctor & Gamble
One of the world´s leading companies in consumer products (In 1997, with 300 brands in over 140 countries and with sales of $37 billon). Focused onproducts with functional superiority with a high investment in R&D.
Five product divisions: Laundry and Cleaning, Paper, Food and Beverages, Beauty Care and Health Care.
Feminine protectionproducts belong to the Paper Division (30% of total sales in 1997). In 1997, feminine protection disposable pads were a $7 billion market, growing steadily at 5%-10% rate.
Always was the world´sleading feminine protection disposable pads brand, with 25% of market share worldwide.
P&G acquired Tampax (1997), the world´s leading tampon brand. P&G also markets Alldays pantiliners brand.
P&G entered Poland, Hungary and Czechoslovakia in 1990. One year after the company entered Russia via a joint venture with University of St. Petersburg. P&G entered these markets with their premiumbrands.
P&G Russia is part of the Central and Eastern Europe (CEE) unit. This unit was the fastest growing territory in the EMEA region, with volume increase of 25% vs. previous year.
In theperiod 1990 to 1995, the Russian market registered small growth when compared to other Eastern European countries like Poland and Hungary, due to economic recession and less developed distributioninfrastructure.
Always was launched in Russia in 1995. P&G initially marketed 3 sku´s in this category - Classic and Plus in regular pad and Ultra Plus. The Always brand was recognized as apremium brand and, it achieved market leadership in Nov-Dec 1997, reaching 16.9% of market share.
Unlike in other CEE markets, P&G choose to implement in Russia a price strategy similar to the one it hasin Western European countries: Always had a 30% increase for each upgrade in category.
Russia´s GDP increased by 0.4%, industrial production by 1.9% and inflation went down by 11% in...
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