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Case Title:

P&G in Mexico: Profiting from Product and Marketing Innovations?

Publication Year : 2007

Authors: Anuradha Donepudi, Mercy Mathew

Industry: Home Appliances and Personal Care Products

Region:Mexico

Case Code: MKS0089

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Leading consumer packaged goods manufacturer Procter & Gamble (P&G) has an impressive history of successfully launching a vast array of new products. With developed world markets becoming increasingly saturated, multinational corporations have turned to emerging markets like India, China, and Mexico. Realising the potential of consumers in the emerging markets, major MNCs are penetrating the growing low-income segments. But the dynamics and the consumer behaviour in these markets are quite different from the developed markets. According to many experts, the strategies that hold well in developed markets fail in developing markets. However, P&G, with its long presence, has had tremendous success in Mexico through its product and marketing innovations.

Pedagogical Objectives:

  • To discuss product profile and segmentation statistics of P&G
  • To discuss P&G's shift in its business model from serving wealthiest customers in developed countries to low-income consumers in emerging markets
  • To identify various opportunities and challenges for companies in emerging markets
  • To discuss the product and marketing innovation strategies of P&G in Mexico
  • To debate on the sustainability of P&G's strategy of serving low-income consumers in the long run.

Keywords : Population and Income levels of People in Latin America; Fortune at the Bottom of the Pyramid; Mexican Retailing Industry; Potential and Challenges from Emerging Markets; Consumer Behaviour in Mexico; Innovation Management Case Study; Strategies of P&G in Mexico; Innovation in Emerging Markets

Contents:

  • Emerging Markets: The Latin America Perspective
  • Surging the Mexican Retail Industry
  • P&G in Mexico: Profits at the Bottom of the Pyramind

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