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P&G's Water Market Strategy Explained

P&G entered the water market for several reasons: to help reduce infant mortality and barriers to development from unsafe drinking water, penetrate the bottom of the pyramid market, and align with their belief in philanthropic activities. They also had expertise in health and hygiene products at a lower cost suitable for developing markets, where over 5 billion people lacked access to safe drinking water by 2025.

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Supratik Datta
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81 views1 page

P&G's Water Market Strategy Explained

P&G entered the water market for several reasons: to help reduce infant mortality and barriers to development from unsafe drinking water, penetrate the bottom of the pyramid market, and align with their belief in philanthropic activities. They also had expertise in health and hygiene products at a lower cost suitable for developing markets, where over 5 billion people lacked access to safe drinking water by 2025.

Uploaded by

Supratik Datta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

What was the rationale behind P&G entry into the water market?

• Help in reduction of infant Mortality, disease and other barriers to development associated with unsafe drinking water

• Penetrate in Bottom of pyramid market

• Strong believe in philanthropic activity($105 million in 2005)-> Leads to innovation and learning about new market

• Well developed expertize in health and hygiene at lower cost to developing markets

• 18% of world population didn’t have access to safe ,affordable and sustainable source of drinking water (5 billion people by 2025)

• Accessible safe drinking water was found to be contaminated before it was consumed by 83% of world population

• Safe drinking water had the potential to prevent 1.6 million deaths every year caused by diahorea ,including cholera trachoma ,intestinal helminths, hepatitis A
and arsenic poisoning

• 90% of these deaths occurred among children younger then 5 years

• Women and children in rural Africa can spend 4-7 hours a day collecting water and additional time caring for those sick from contaminated drinking water

• Poor often receives the least reliable and lowest quality water supplies and can pay up to 12 times more per litre of water on average

• In developing countries $27-30 billion dollar is invested in the water sector every year

• Market penetration rate of 50% in Morocco and Pakistan during large scale testing of PuR sachets which were light weight small easy to transport by air or ship
even to rural area didn’t need an energy source to produce

• Effectiveness of PUR Sachets :20%-90% reduction in Diahoreal disease with an average reduction of 50% according to 5 random studies involving more then
25000 people

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