Monday, March 28, 2005

P&G Respones To Tsunami Disaster

P&G spent four years and $10 million for research and development befor launching Pur in September 2002. By November 2003, however, Pur still hadn't caught on as a profitable venture. The tsunami revived it. In order to gain a large market share in those countries effected by the disaster, the company designed three pricing structures for the water purifier: selling the small packets at a retail price about nine cents to ten cents each, selling it through not-for-profit organizations for eight or nine cents, and selling it at cost, about 3 1/2 cents, to emergency relief agencies, which distribute it for free. With the large number of population and serious problem with drinking water, the amount of Pur sales is bound to be big. With low price but big sales, Pur is being steadly established with P&G.

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