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Procter and Gamble in China, 2022

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In early 2022, new CEO Jon Moeller had to decide how P&G should navigate the Chinese market, a market that had completely transformed since P&G entered in the 1980s. Rising affluence, changing consumer behavior, changing market segmentation, increasing competition, and the rise of digital channels and marketing had created a dynamic and challenging environment. As a result, P&G’s traditional leadership position in many of its product areas in China was under increasing threat. In addition, the US market, which had always been P&G’s main focus, was in many respects no longer the touchstone that it once was, particularly in e-commerce, digital marketing, and serving evolving customer tastes in China. P&G had been initially slow to recognise the changes in China, but was now responding to the new challenges and opportunities. The question was whether it would or could move far and fast enough.

This case can be used on a standalone basis, but is best used following the “Procter and Gamble in China” case, ACRC reference 12/524C, which focuses on the 1980s through 2010.

Learning Objective:

Strategy in dynamic market settings, Generic strategies (cost leadership, differentiation, focus), Advantages and disadvantages of broadline versus focused competitors, Advantages and disadvantages of global scope versus local knowledge, Global integration versus local responsiveness in international business, China business environment and strategy, Importance and opportunities associated with e-commerce

Year of Publication: 2022
Ref. No.: 22/732C
Discipline: Strategy & General Management
Industry: Household Products, Personal products
Country: China (People's Rep. of), United States of America
Company: Procter & Gamble
Languages: English
Pages of Text: 13