2. Dr. Hans-Willi Schroiff, vice president of market research at Henkel, a Germa

Question

2. Dr. Hans-Willi Schroiff, vice president of market research at Henkel, a German company, made the following observation about P&G’s multinational marketing strategy: “A strict globalization strategy like P&G’s [will not be] successful if ‘meaningful’ local brands are corpses on the battlefield. It caused severe share looses for P&G here in Europe. Consumers do not switch to the global brand but to another brand that looks more like ‘home’ to them.” Comment on this statement. Do you agree or disagree (and why)?

Textbook: Global Marketing Management Seventh Edition Kotabe and Helsen CH 11 DQ# 2

Explanation / Answer

Procter & Gamble I.e. P & G is originated company from Cincinnati, Ohio, United States.

Whenever any multinational company makes its presence in the global market then it has to first prove itself with the market strategy and product quality. If the company does not have a strategic marketing plan then it is very difficult to reach out at home of the consumers in that country.

Brands which are originated at home county are likely to reach to its consumers more easily because people feel it as a home product.

Big companies like P & G has entered into the different diverse markets in the world mark its footprints with unmatched quality products. Once the company has good products then it gets mouth publicity and reaches to many more consumers day by day.

Market of any country is bound to the cultural and social boundaries and people living in the country are also bound to such diversities. Whatever has said by the Dr. Hans-Willi Schroiff in his home country has reached easily to the people living in that country. Once person belong to the home nation says something about (weather good or bad, correct or not) which does not belong to the home country then it creates an impact and the same happened with the P&G also and as result It caused severe share looses for P&G in Europe therefore consumers switched to another brand that looks more like ‘home’ to them” instead of to the global brands.

In my opinion there is no agreement or disagreement with respect to the statement as given by Dr. Hans-Willi Schroiff because whatever he said was affected to the home country people and not as a whole world affected by what he said.

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