In early 2022, new CEO Jon Moeller had to decide how P&G should navigate the Chinese market, a market that had completely transformed since P&G entered in the 1980s. Rising affluence, changing consumer behavior, changing market segmentation, increasing competition, and the rise of digital channels and marketing had created a dynamic and challenging environment. As a result, P&Gs traditional leadership position in many of its product areas in China was under increasing threat. In addition, the US market, which had always been P&Gs main focus, was in many respects no longer the touchstone that it once was, particularly in e-commerce, digital marketing, and serving evolving customer tastes in China. P&G had been initially slow to recognize the changes in China but was now responding to the new challenges and opportunities. The question was whether it would or could move far and fast enough. Your team has been hired by Mr. Moeller to analyze the situation and make a set of recommendations for P&G to help them to catch up with the times.

Lead Questions

What impact has rapid growth, e-commerce development, and digital advertising had on the viability of broad-line versus narrow-scope strategies in Chinas FMCG sector?

What impact has rapid growth, e-commerce development, and digital advertising had on the viability of different generic strategies (cost leader, differentiation, focus) in Chinas FMCG sector?