Question
P&G used a unique strategy to expand Pampers into the Asian market. Instead of the typical 'trickle-down' or 'bare-bones' approach, P&G decided to innovate. The 'trickle-down' approach involves introducing product innovations to emerging markets after their technology had become outdated elsewhere. The 'bare-bones' method involves stripping away many of the premium product attributes to leave an affordable yet subpar product. P&G, however, decided to take a different route for diapers in Asia, although the specific strategy is not detailed in the content.
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Gain is an example of invigorating a stagnant brand by analyzing "how to win" in a specific consumer segment. Pampers diapers are another example of how P&G discovered how to win, but this time, in a new geography. Executives had decided to expand Pampers into Asia but struggled with how to feasibly sell the product at a price point that would resonate with consumers there. Typically, when entering an emerging market, executives would decide on one of two approaches to product design, both strategies aimed at keeping product costs low to make selling at a lower price feasible. The first is the "trickle-down" approach, whereby product innovations are only introduced to emerging markets after their distinguishing technology had grown stale elsewhere. The second tactic was a "bare-bones" method in which designers strip away many of the premium product attributes, leaving an affordable yet subpar product. But P&G had a different idea for diapers in Asia.
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