1. WE’RE ALSO CHINESE
Global Marketing SWU Fall 2010, Prof. Lee Presenter: Tim Wilson 20082901
12-1-10 Seoul
http://en.wikipedia.org/wiki/File:Procter_and_Gamble_Logo.svg

2. In the last 50 years MNCs have focused on
China, India, and other currently emerging
economies as cheep sources of labor.
More recently the MNCs have notices the
fast growing number of consumers in these
same countries, who's spending power is
rapidly increasing along with their appetite for
consumer goods.
Focus China and Proctor & Gamble Corporation

3. Focus: 
China 1.3 Billion
USA 300 Million
EU 500 Million
Japan 127 Million
Korea 48 Million
http://2.bp.blogspot.com/_pCDyiFUv9XU/ShMlMINkgWI/AAAAAAAAED8/6nj6yabIBpE/s400/800px-World_population_pie_chart.png

4. 2008
Focus: 
China 7%
USA 23%
EU 29%
Japan 8%
Korea 2%
http://www.greenfaucet.com/system/files/517/global_GDP.png

5. http://www.ritholtz.com/blog/wp-content/uploads/2010/08/GDP-History.gif

6. How an American
Company from
Cincinnati, Ohio
founded in 1837,
expanded into
China and took on a
Chinese Identity and
Local Product Mix
Founded by Two Immigrants:
William Procter (from England):
candlemaker, and
James Gamble (from Ireland):
soapmaker http://bglhonline.com/wp-content/uploads/2010/07/Cincinnati-procter-and-gamble-headquarters.jpg,
http://en.wikipedia.org/wiki/Proctor_and_Gamble

7. How to make an International
American, European, & Japanese Brand…
Proctor & Gamble
Into a Chinese Brand
Product Recognition: “Isn’t P & G a Chinese Brand?” 
http://www.couponingtodisney.com/wp-content/uploads/2010/07/brands.jpg

8.  China has huge income disparities and
product expectations between the
rural, urban, and semi-urban populations.
 P & G divided the market segment of China
into three areas of income and unit volume:
top 15%, middle 30%, and bottom 55%
 Revenues are divided at 30% premium, 40%
mid-priced, and 30% in the low end segment

9.  Low income consumers in China often buy
single use packages of
shampoo, medicine, and other products.
 Urban Chinese customers are willing to pay
$1 USD for a tube of exotic flavored
toothpaste. While rural customers will pay
50cents (1/2 USD) for a tube of Crest Salt
White toothpaste, because rural customers
believe salt whitens teeth.

10.  “…Create different value offerings superior to
those of the local competitors but at an equal
or even lower manufacturing cost.”
 P & G used customer research teams to find
out customers needs and product desires, by
even living with potential customers for
several days.

11.  Domestic Chinese Firms are growing fast and they
are well informed about their local market
 High end Foreign originated consumable products
can have little lasting permanent penetration into
an emerging market
 Huge disparity in emerging market people’s
income levels can be growth opportunities.
 Know local product expectations and then use
readily available local ingredients to manufacture
and produce locally superior quality Chinese
friendly Proctor & Gamble products for each
population and income segment

12. How to make an International
American, European, & Japanese Brand…
Proctor & Gamble
Into a Chinese Brand
Questions Please? 
Product Recognition: “Isn’t P & G a Chinese Brand?” 
http://www.couponingtodisney.com/wp-content/uploads/2010/07/brands.jpg

13.  How does China’s entry into the World Trade
Organization (WTO) in 2001 affect
multinational firms’ outlook toward China
and their future investment in the country?
 What are the drawbacks of P & G’s strategy
for the Chinese market?
 What other marketing strategy could P & G
have adopted for the Chinese market as an
alternative to the tier system one?