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Transcript of Marketing Presentation
P&G and Unilever have invested in teams to do extensive lifestyle research in emerging markets. P&G invested in a regional research and development facility in Beijing so that they can do research and develop products in Beijing instead of having to do it in the company’s Cincinnati, Ohio headquarters. Answer (cont.) The End Answer Cont. Unilever invested in a division in India that developed Pureit, a $43 battery-powered water purification system. However, direct investments have high rewards and high risks.
One of the major risks is that due to how difficult and time consuming lifestyle research and product development is for poor, rural customers, it will take years before the companies make a profit from their investments. Established in the 1980s
Over 400 brands (health and well being)
Sales growth of 6.5% (2011)
Worldwide turnover $61.8 billion
Dove, Degree, Ben & Jerry's
$1.3 billion R&D Goal to provide branded products and services of superior quality to improve lives
Crest, Tide, Bounty
Established in 1837
$83.7 billion sales (2012) Established in 1918
Among the largest Japanese electronics producers
$83.8 billion sales (2012)
Global marketing mix
Blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges worldwide
Standardization: single product for all markets
Example: Head & Shoulders
Product invention: Creating a new product or drastically changing an existing one
Example: Tide Naturals (free of chemical irritants) Product adaption: slightly alter existing products
Example: Increased package size
Promotion adaption: maintain same product but alter promotional strategy
Example: Demonstrators in India for disposable diapers
Increasing the awareness of their products to population (disposable diapers)
Are not just diluting the top-tier products
Innovating to cut costs
$70 million for R&D facility
Larger package sizes with same price