Procter & Gamble (P&G)‚ a multinational corporation‚ known for its products that include diapers‚ shampoo‚ soap‚ and tooth-paste‚ was committed to improve value to the customer. Its products were sold through various chanels such as grocery retailers‚ wholesalers‚ mass merchandisers‚ and club stores. The flow of goods in the retail grocery channel was from the factory’s warehouse to the distributor’s warehouses‚ to the stores where the grocery stores where customers selected the merchandise from
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division had to compete in the market place. The problem was that with the advances in technology and the growing consumption capacity of the middle class‚ the number of brands was growing too fast to maintain that level of resources for each brand. The Matrix organization gave a greater focus on product division rather than individual brands‚ and centralized functions like sales and R&D which would give a better support to products categories without cannibalizing their own business. The European Shift
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Case Questions 1.Evaluate the wisdom of Tambrands becoming part of Procter & Gamble. Tambrands becoming part of Procter & Gamble was a wise decision because Tambrands‚ being that is was a single-product company‚ would be risky to pursue in a global campaign and to build a global distribution network all at the same time. Tambrands could not continue to be profitable if it were to launch this global marketing program was alone. The decision to become apart of P&G benefited both sides by putting
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Group 2 Section C 5th Oct 2010 Procter & Gamble Company Situation Analysis: P&G is strongly positioned Light-Duty liquid detergent(LDLs)category. The LDL market can be segments on the basis of 3 benefits performance‚ mildness and price sensitivity. P&G has 3 products: Joy (Performance‚12.1%)‚Ivory(Mildness‚15.5%)and Dawn(Performance‚14.1%). Wright is looking into the possibility of volume growth in terms of one of the three options: a)Introduction of a new brand (b)product improvement
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top-line growth and cost savings‚ but this has often been restricted by companies’ business models and culture. Most companies have contained innovation within their direct circle of influence (apart from some well-known examples such as Procter & Gamble and Philips). But as competition intensifies and existing models of innovation are not enough of a differentiator‚ the way to build market share and create sustainable top-line growth in the future will be through a new‚ alternative approach
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Boston Consultancy Group (BCG Matrix) This product portfolio matrix classifies product lines into four categories. The BCG models suggests that organisations should have a healthy balance of products within their range. The Boston Consultancy Group classified these products as following: Dogs These are products which have low market shares and low market growth rates. The options for many companies is to phase these products out‚ however some organisation do go for the strategy of
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The BCG Matrix is a method used by businesses to identify market growth and market shares for organizations. It was developed by Bruce Henderson of the Boston Consultant’s Group in the early 1970s. To establish long term value creation‚ a company should have a portfolio of products that contain both high growth products in need of cash inputs and low growth products that generate a lot of cash and use this information to improve it. The basic idea behind it is that the bigger the market share a product
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A STUDY OF THE CONSTRUCTION OF BCG MATRIX FOR NESTLE INDIA Tarun Jain1 TABLE OF CONTENTS Executive Summary Objectives Research Methodology Introduction Studying the construction of BCG matrix for Nestle Conclusion Suggestions Limitations Bibliography Annexure – I (The BCG Matrix explained) Annexure – II (List of Nestle Products worldwide) Annexure – III (List of Nestle Products offered in India) Annexure – IV (List of provisional stores surveyed for the study) 1 For details‚ visit http://ssrn
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What is BCG matrix? The BCG matrix is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing‚ product management‚ strategic management‚ and portfolio analysis. Analysis of market performance by firms using its principles has called its usefulness into question‚ and it has been removed from some major
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Target marketing includes three activities: market segmentation‚ market targeting and market positioning. We can target markets at four levels: segment‚ niche‚ local area and individual. Market segments are large‚ identifiable groups within a market. A niche is a more narrowly defined group. Globalisation and the Internet have made niche marketing more feasible to many. Marketers appeal to local markets through grassroots marketing for trading areas‚ neighbourhoods and even individual stores
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