Procter and Gamble (henceforth P & G) is one of the largest manufacturers and distributors of consumer products in the world with a global reach for it 300+ brands of 180 countries. During the 1990’s the company made some significant alterations to its corporate strategy; it aimed to reduce its cost structure and develop its differentiated business-level strategy, in an attempt to increase revenues and profits. The rapid development of international markets and globalisation demanded a corporate “shake up”. Moreover, the reduction of trade barriers and tariffs indicated that to retain a competitive advantage globally the company had to develop an effective International strategy, whilst benefitting from economies of scale. Cross-functional integration and speed of innovation increasingly became imperative to corporate strategy. In this article I will look at the key development that took place in thus process and turned P&G into such a powerhouse. Continue reading
How the luxury brand Nespresso managed to tie an impressive number of over 10 million customers with a concept of club membership and its “belonging to an elite group” approach.
Launched in 1986, Nespresso is the worldwide pioneer and market leader in high-quality portioned coffee offering innovative coffee machines and 16 flavours of “Grand Cru” capsules. It is an autonomous global business unit of Nestlé, the world’s largest consumer goods company. Nespresso caters to both private consumers and the business segment. The latter generates the lion’s share of Nespresso’s turnover and has grown impressively. With its 20% annual growth rate and double-digit sales increases in world markets; Nespresso is Nestlé’s fastest growing operating unit. It also belongs to Nestlé’s famous billion dollar brands with a turnover of CHF 3.2 billion in 2010. Continue reading
The evolution of the Indian FMCG market has forced local companies to adapt their strategies in order to ‘survive’ ferocious competition against international big players
In recent years, the economic environment in Western Europe and North America has become increasingly challenging. A saturated market in the FMCG sector and a multitude of competitors has left companies with little headroom for growth. Consequently, many multinational corporations (MNCs) have changed their focus to emerging countries and have demonstrated creativity when dealing with impediments like the complexity of varying customer needs or cumbersome distribution conditions.