Introduction
Procter & Gamble is a widely famous company whose values have been created over the years. One of the most debated parts of the company’s activity is the launch of the Vizir. As a result, the company faced three critical issues while presenting the product in the German market.
The first issue is the timeframes of launching a product on the German market, which should be analyzed to achieve success. The second issue is whether Vizir should be launched as a Eurobrand. The third concern is that the structural aspects of the launch strategy should be considered. The decisions about timeframes of launching the product, the direction of its spread, and organizational implications should be carefully examined and analyzed to demonstrate significant performance of the Vizir launch.
Market Entry Timing: Introducing Vizir in Germany
The immediate launch of the product on the German market creates significant commercial opportunities for the company’s revenue growth. Overall, the decision to introduce a product on the German market has potential risks and rewards. The product has been tested for four months, and the test results are reliable enough due to the company’s corporate values (Harvard Business School Case 2). For instance, all workers of the company are chosen from people with the most appropriate characteristics and with the same views and beliefs as the company has. As a result, a stable, reliable, and loyal working environment is ensured, which positively influences the product testing process (Harvard Business School Case 3).
Moreover, such a rapid launch of the product would help P&G to remain competitive in the German market and increase the company’s sales. In addition, the immediate launch of the product can help P&G earn a first-mover advantage and establish a strong presence. Therefore, the rapid introduction of the Vizir to the German market, based on the four months of testing, would create opportunities for the commercial success of P&G.
Nevertheless, deciding to present Vizir in the German market is challenging due to timeframes and product launch speed. The immediate launch of the product poses a threat to long-term product outcomes. Four months is not enough to prove that the product is carefully tested and that no adverse outcomes are observed. For example, unfavorable outcomes can be seen when the final test-market results occur.
Moreover, the rapid launch of the Vizir in Germany could lead to premature entry (Harvard Business School Case 4). As a result, the company’s aim to spread the product might fail. In addition, the company, for a long time, did not expand its activity, and the attempt to enter the European market, mainly the German market, should be carefully analyzed and implemented.
In this case, waiting for the final results gives the company an accurate and more informed decision. However, this carefulness can result in lost opportunities and potential threats to the company’s competitiveness. Therefore, the pros and cons should be accurately weighed so as not to face failure and loss of growth opportunities, but to launch the product as soon as possible.
European Branding Strategy: Launching Vizir as a Eurobrand
On the one hand, positioning Vizir as a European product and making it a Eurobrand creates many advantages for the economic and professional development of the company. The coordinated European rollout creates opportunities to leverage economies of scale, improve brand positioning, and boost marketing efforts across multiple states (Harvard Business School Case 5). This approach provides a deep understanding of European markets and trade trends. As a result, excellent opportunities for a wider spread of the Vizir would be created, and the company could spread its goods to other European countries, increasing its competitiveness and accessibility.
In addition, Eurobrand requires standardization of the product formulation, advertising, and packaging. In this case, such steps promote the product and ensure the cost-efficiency and general effectiveness of the launch. Hence, launching the product as a Eurobrand would create various opportunities for P&G to fulfill the European market, and the general standards would enhance brand efficiency and promotion, creating many economic advantages for P&G.
On the other hand, the decision to launch Vizir as a German product allows P&G to accurately analyze the specific German markets, leading to a better understanding of the customer’s needs in their influence. Launching the product as a German brand would ensure that the company did not overlook the country-specific preferences and market features. Moreover, the company can implement various market trends based on German needs, so the sales in that region would increase, which ensures revenue growth (Harvard Business School Case 4).
In addition, the product launch under German rollouts can allow the company to increase its competitiveness in the German market. However, Vizir’s acceptance in the other European markets would be limited. That is why Procter & Gamble should consider the trade-off efficiency in the German and European markets to define the most suitable level of the product launch. Thus, presenting the Vizir as a German product would ensure a deep understanding of that market’s needs, but the opportunities to expand production and sales could be limited.
Structural Considerations for Vizir’s Market Launch
There are positive organizational implications of the strategy of launching Vizir on the German market, which is mainly based on the independence of the decision-making process. The decision on Vizir’s launch strategy grants the country’s subsidiary managers freedom in their decision about different features of the launching process (Harvard Business School Case 6). For example, managers can decide how and when the product will be presented. As a result, the opportunities for autonomy and adaptation to local market demands are ensured.
In this case, Procter & Gamble can fully control Vizir’s launch process and directly influence its positive outcomes, leading to great commercial success. Nevertheless, a coordinated launch strategy should ensure the product is equally launched in all directions. Hence, the favorable organizational implication of the P&G product consists of its workers’ independent decision-making from the country where the product will be launched.
On the contrary, the decentralized decision-making approach can create obstacles in the qualified launch of the product. A decentralized approach results in fragmentation, lack of coordination, potential loss of direction, and consistency. Centralized decision-making ensures coordination and consistency. In addition, centralized decisions are the most appropriate to ensure the coordinated launch strategy. For example, all decisions would be planned in the same way for each subsidiary, which would enhance the most efficient results of the launch.
However, a slower response time is observed, and rigidity is created, negatively influencing the Vizir launch’s overall outcomes and P&G image, causing opportunities to effectively launch the product to decrease (Harvard Business School Case 7). In this case, P&G should balance decentralization and centralization to maintain the launching process effectively. In addition, the fit between structure and strategy in the European context should be considered to address all issues arising during the launching process. Therefore, all organizational implications should be considered, and the best way of coordinating the launch should be chosen to increase the positive outcome of the realization of the product on the German market.
Conclusion
Procter & Gamble’s actions during the introduction of Vizir in Germany should be carefully implemented, and all scenarios should be considered to ensure the most significant launch of the product. Especially great attention should be paid to the potential risks and benefits. Timing, the area of launching, and organizational structure are the most critical factors during the decision-making process. The analysis of potential consequences provides P&G with the ability to make informed decisions to minimize risks and ensure the launch’s success.
Work Cited
Harvard Business School Case. “Procter & Gamble Europe: Vizir Launch.” Case No. 9-384-139, 1989.