Proctor & Gamble and Unilever Operation in India and Pakistan - Essay Example

Proctor & Gamble, a company founded in the United States by two British men around 150 years ago, aims to provide products and services of superior quality and value. What began as a family-oriented business then became a multi-national in no time. It is today one of the leading firms worldwide which cater to providing consumer goods.

Unilever, founded in 1890, started off by making a soap that helped popularize cleanliness and hygiene. Today, it has grown in the same way as P & G and has similar goals and likewise, faces similar problems.

As the firms are now multi-nationals and have large operating units in different parts of the world, different cultures give them different challenges which should be met tactfully so as to avoid controversies.

Procter & Gamble, India, has a diverse range of popular products, for example, Pantene shampoo, Ariel washing detergent, Pampers baby diapers, etc. P & G has now settled into the country but faced several problems in the beginning. One example is that of promoting Pampers. Indian Women preferred cloth nappies to diapers and the women who did shift to Pampers were often referred to as lazy or did not give their babies enough attention. With such cultural walls, Pampers found it difficult to break into the industry, its strongest competitor being the common nappies. Thus, P & G promoted the campaign by pointing out that Pampers keep the baby dry, preventing it from catching a cold or flu. The medical side was such widely advertised that women gradually let go of their insecurities and today Pampers is the largest selling brand of diapers in India.

Unilever, similarly, has a production line of Lux beauty soap, Vaseline petroleum jelly, Surf excel detergent, etc. Pakistani women, when introduced products like Surf excel, did not let go of their traditional ways of washing clothes. The competition was tough as the local soap was cheaper and had been there for a long time. Unilever's effort to boost sales was to advertise using women models, advertising for women. This helped boost sales to the highest as the marketing heads at Unilever realized that "It is women who need to be influenced because ironically in Pakistan, they make the grocery lists."

P & G and Unilever collectively have reached the conclusion that in order to survive in these countries and get hold of a significant market share, the differences in the culture should be kept in mind. It is in the firms' best interest to provide the employees with an environment that makes them feel that the companies are a part of their country, molding with their traditions. Advertising campaigns, discounts, and perks are given in accordance with what the respective country's social and economic situation is and firms make a huge contribution in the local events so as to show their existence and that they accept the rituals and take pride in celebrating them.