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Procter & Gamble Brazil A 2 1 2 Turnarounds Case Solution

Solution Id Length Case Author Case Publisher
1088 583 Words (3 Pages) Rosabeth Moss Kanter, Matthew Bird Harvard Business School : 308081
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Juliana and Tarek were the minds behind the success of two Basico products i.e. always and Pampers. They achieved this through the creation of lower-cost versions of these two premium products that would cater to the lower low-income consumers by appealing to the BOP. It was made possible because of P&G values of providing its employees with trust, decision making. At the beginning of their venture, P&G tried utmost to capture the market share, but they were at loss. For instance, even with the successive innovation and price increase, their market share was less than 10%. Tarek and Juliana identified the opportunity since Brazil has a rapid growth in its population, especially the lower tier. This strategy was considered as “not the company strategy," yet, they had a strong determination and superior imagination and anticipation. These qualities led to the creation of the concept of Basico. This idea was a result of P&G’s policy to motivate employees and provide them an environment for freedom to operate. Initially, they kept working on this idea, and later on, they sold this idea to the management. They identified every opportunity and capitalized over that; like the creation of the HFS team, which leads to the design of the product and eventual launch. The technology, though old and doubted, made it possible to strike to idea of Obelisk. The commitment and motivation to make successful were unprecedented, they made above 200 presentations in a day in fare. Last, but not the least, it was the design and advertisement, that made it possible to create hype despite the lower advertisement budget.

Following questions are answered in this case study solution

  1. What facilitating conditions (enablers) made the first two Básico innovations possible and successful including people, processes, corporate culture, and values? How were the enablers drawn on and used by Tarek and Juliana to move their changes through the system?

  2. The Ace Básico innovation is stalled and might not get off the ground. What lessons from previous innovations might help?

Case Analysis for Procter & Gamble Brazil A 2 1 2 Turnarounds

2. The Ace Básico innovation is stalled and might not get off the ground. What lessons from previous innovations might help?

As there are many similarities to the situation, there are many lessons that can be learned from the previous success of Always Basico and Pampers Basico. Those two products started with superior marketing research; so, Ace Basico should focus more on R&D and research more about the consumers, their values and their expectations. This is exactly like the development of an idea of the obelisk. If they did so, they could extend the product line, catering to the consumer needs and customize it accordingly. For instance, if low tire consumers were using soap, they can add soap flake to it. Addition to that, again they are facing the problem of low marketing budget and promotion of the product, Moreover, like in the previous case; the product is again the lower tier, so they need to create a label those appeals to consumers. They should design products, like orange color in the previous case, which is catchy and easy to recall. They should price in such a way that it should be higher than the Pop but lower than the mid-tier brand, Ace. Like in the previous case, Ace Basico is again facing the problem of the low budget for the advertisement campaigns. They should capitalize on their product design and create an advertisement campaign based on their R&D and market research. Last, but not the least, Ace is a potential brand; it will need committed individuals as Tarek and Juliana; who, working on the company’s PVP brought a revolution into the organization.

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