International Marketing Essays (944 words) - Marketing,

International Marketing International Marketing Proctor & Gamble originated in 1837, when William Proctor and James Gamble formed a partnership in Cincinnati, Ohio. The partnership flourished making the company a gaining name as principled manufacturer of high quality consumer goods sold at competitive prices. By 1992 Proctor & Gamble was a multinational company with annual sales of almost $30 billion profits exceeding $1.8 billion, and a reputation for quality products, high integrity, strong marketing, and conservative management. When P&G grew they became more and more interested in foreign markets. In 1992 they had sold their products in more than 140 countries around the world. In 1991 Ps tissue division. Facelle was a medium sized manufacturer and marketer of tissue, towel and sanitary products. So for 185 million P&G bought the Facelle Co. Proctor & Gamble had to consider many things when entering the market in Canada. Tissue products were inexpensive, widely used and were frequently purchased (on average once every two weeks.) Brand switching was high and the risks with product failure were low. The only thing that manufacturers had to worry about was to differentiate their products on performance to build loyalty. Retailers felt that the paper was a low profit, low loyalty category. They used it primarily to draw consumers into their stores. Royale had been the only 3ply tissue on the market, and was viewed as the traditional strong, premium quality facial tissue. Florelle was a 2ply tissue that had received little promotional attention. It lost most of its market share in 1991 and was down 5.8% at the beginning of 92. Other competing brands of tissue were Kimberly Clark with their Kleenex brand, which had a very good year in 1991. Scott tissue who at first fell a few shares due to loss of trade support, but relaunched their brand in September 1991, positioning it as a product with high content of recycle material, and supporting it with heavy advertising. Irving and all others had average an average year. Brand Image for Royale based upon its premium positioning, historically unique 3ply product design and its softness claim, and had built the leading brand image in the product category. Brand users gave Royale an overall score of 85 on a scale of 100, marginally superior to Kleenex. Even though Royal enjoyed a very favorable overall brand image, they were lacking on thing that would make their product do even better. Knowledge about the brand was not as high as they would have liked. Many people who used it didnt even know that it was a 3ply tissue rather than a 2ply. This brand image did not translate to market share. Royale was used as a part-time brand that was bought on feature or specifically for cold care, but seldom for regular usage around the household. Also Royales price exceeded Kleenexs by more than $.20 when Kleenex dropped to $0.79 after the introduction of Kleenexs 150s. Florelle a standard 2ply tissue brand offered specialty sizes (pocket packs, man-size, and cube format). P&G felt the need to upgrade the softness of Facelle tissue by adding eucalyptus fibre and sacrificing some tissue strength since Facelle was one of the strongest tissues on the market. The one problem with the upgrade was deciding whether to keep the product name of Facelle and just say it is better, or change it to Royal some how distinguishing the 3ply from the 2ply. They decided to introduce the product under the name Puffs. Puffs, which had been successfully launched in the U.S twenty years ago, not yet introduced in Canada, would still do well due to Advertising spills from the U.S. Proctor and Gambles results to the research regarding consumer perception of Royale and Facelle were not good. Even though Royale was one of the leading brands in