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P&G, Unilever, Panasonic: the $2-a-Day Initiative

In: Business and Management

Submitted By iap1218
Words 615
Pages 3
Arelys Perez
Instructor Nicole LaPointe
9 February 2014
P&G, Unilever, Panasonic: The $2-a-Day Initiative
The method used by Procter & Gamble (P&G), Unilever, and Panasonic entering into foreign markets was direct investments. The fact that places like China and India have income disparity makes this market very challenging. In other words, in some areas there are rich whereas others are very poor. The direct invest method is the highest risk method, but it counts with the highest return. Panasonic’s used their lifestyle research to create and market specific products that are produce locally. Panasonic base their product design in demographic makeup. The key was understanding the needs and purchasing power of the region. Also, P& G and Unilever invest in a research team to do an extensive lifestyle research in these markets. Furthermore, P&G invested 70 million in these research and develop a facility in Beijing in order to research, source, and develop products for the region without relying on any other company’s location in the globe. The development of new product and lifestyle research for these demographics are very difficult and time consuming.
It can be inferred that they used applied research because the companies make several changes in the existing products and design new products. These companies study carefully the economic factor of these regions. For example, the consumers’ income, the companies find out consumers’ income in these regions; therefore, they were able to know the consumers’ purchasing power. Unilever used multidomestic strategy with the creation of Pureit. Multidomestic strategy is when multinational firms enable individual subsidiaries to compete independently in domestic markets. Pureit is a custom made product for India market. Pureit is a $43 battery-powered water purification system. This system is…...

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