P&G Asia Pacific
by V Kumar, Jia Fan (University of Connecticut), Rohit Gulati, and P Venkat (P&G Asia Pacific)
The team worked with Proctor and Gamble in India to optimize its marketing mix for higher profits in the Indian heavy-duty detergent market. One of the biggest challenges in executing this study was to come up with a modeling framework that would not only accommodate the complexity in the data structure but also capture the uniqueness of how each SKU would respond to the marketing-mix elements over time. By understanding both the market structure (in terms of the different pricing tiers in the market) and the effect of pricing on distribution, the study provided key strategic guidelines so that Proctor and Gamble was able to increase the price and distribution of certain SKUs. Consequently, significant gains in profits were realized in this market.
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