Procter & Gamble plans to raise its number of global customers to 5 billion. Two countries integral to P&G’s success is China and India. Some of the challenges companies face in international markets could be socio-cultural, economic, competitive, or political/legal in nature. Look at the examples below and describe which barrier(s)/ challenge(s) P&G faced with expansion into these two countries.
a. In China, parents use cloth diapers on their babies and toilet train them early. P&G therefore marketed studies to show that babies wearing Pampers fall asleep faster.
b. Chinese and Indian consumers cannot afford P&G’s products. P&G found a way to lower the prices of their products by offering single-serve, no-frills packaging.
c. P&G faces a stiff rivalry with Hindustan Unilever in India, which is the market leader in consumer goods.
d. Since most Indian men go to the barber to get a shave, P&G promoted the convenience of its Gillette razors and emphasized that women prefer clean shaves.