Wednesday, March 19, 2008

What went wrong at P&G?

For Strategist prepared by: Anand Mohan Sharma [pg07anand_s@mdi.ac.in]

P&G found out that main problem the people had while taking chips on picnics/outings or having them for long storage for long distance market catering was that they would 'perish'. And hence chips manufacturers catered to only local customers. There was no big brand. So it decided to make them with a special coating so that they remain fresh for long time and packaged them in a strong cylindrical box to bear transportation jerks. Thinking it would soon make itself as the first real chip brand, P&G was saddened to find that the sales were very low, and only few people that too many of them old were buying it.
Being a manager, now how would you analyze the case and help P&G out?

1 comment:

elbereth_dg said...

In this case it is better to make a comparison between the product of PG and similar products in the market, ie Pringles vs. Ruffles/Doritos etc. This comparison should be in terms of price, quality, packaging, and so on - by considering the consumer preferences (what the customers pay for while buying chips).
From my point of view, the main problem about Pringles is that it is much more expensive than it substitues. Most preobably, it is because people pay for the package rather than the product itself. This is the main issue to be taken into consideration while developing a marketing strategy about the product.