Pringles Expansion Into Israel

This presentation explores the possibility of Pringles establishing a factory in Israel. All Hypothetical of course. Before Procotor and Gamble dumped them.

1. Procter & Gamble Pringles Expansion to Israel Sonya Barker Ryan Huelsmann

2. Founded 1837 (173 years in business) Serve 4.2 Billion Customers Worldwide Employ 127,000 People Worldwide NYSE: PG Consumer Goods Industry Revenue $78.9 Billion Net Income $12.74 Billion Total Assets $134.83 Billion Procter & Gamble:

3. Product Focus: Beauty & Grooming Health and Well-Being Household Care 50 Leader Brands Driving Force Billion Dollar Brands: Bounty, Cover Girl, Crest, Dawn, Downy, Duracell, Gain, Gillette, Head & Shoulders, Olay, Pampers, Pantene, Pringles, Tide, Always, Mister Clean Procter & Gamble:

4. Brands Sold in 180 Countries with Operations in 80 Countries Global Organization with Local Focus Manufacturing Operations Based In: United States Canada Mexico Latin America Europe China and other parts of Asia (31 wholly-owned factories) Africa Australia Procter & Gamble:

5. Introduced in 1968 Stackable, Fun-Shaped Potato Crisp P&G Health and Well-Being Business Unit, Snack Food Category Multitude of Flavors to Appeal to Regional Tastes Pringles Sticks Spin-off Pringles:

6. Standard of Living Expansion High Consumer Interest in New Products Potato Chips Led the Savory Snack Market in Israel, Accounting for a Share of 38.1% Pro-American Business Sentiment Population 7.2 million, Diversity Gaza Strip Embargo Lifted for Certain Products, Includes Potato Chips Purchasing Power $1 US = 3.67841 Israeli New Shekel Member World Trade Organization Opportunities in Israel:

7. Unrest in Israel Unrest in Middle East Culture Distribution Local Competitors Barriers to Entry into Israel:

8. Issue: Political/Religious Unrest in Israel, partition of Palestine, creation of a Jewish state, an Arab state, and an UN-administered Jerusalem Ongoing Political/Religious Unrest in the Middle East Strategy: On-Going Risk Assessments to Determine if Benefits Outweigh Risk Constantly Monitor New Developments Maintain Open Dialog with Government Officials/Agencies Neutral Status Overcoming Unrest in Middle East:

9. Map of Israel

10. Issue: Cultural Kosher Preference Language Strategy: Research and Development to Focus on Local Preferences Develop Flavors to Cater to Preferences Hire Local Talent who have the Expertise and Knowledge to Assist Overcoming Cultural Barrier:

11. Issue: Two Primary Grocery Store Chains in Israel Few Mom & Pop Small Community Stores Open Air Markets Strategy: Focus on Developing Solid Relationship with two Primary Grocery Store Chains Hire Local Talent who have the Expertise and Knowledge to Assist Marketing Blast to Get Customers Excited about Product Research Vending Machine Sales as an Opportunity for Open Air Markets Overcoming Distribution Barrier:

12. Issue: Local Competitors Utilize Nationalism as a Means to Gain Competitive Advantage Strategy: Analyze Strengths and Weaknesses of Competitors and Capitalize on Lessons Learned Analyze Local Competitor Strategies and Implementation Create a Tactical Plan to Compete Overcoming Local Competitors

13. Willingness to Expand Diversified Product Products Altered to Local Preferences Snack Food Consumption Growing Worldwide Environment for Global Growth/Trade Barriers Lifting Internet Marketing Sales Trends Competition Substitutes/Cheaper Products Available Global Economic Downturn Negative Press Related to Snack Foods/Health Concerns Workforce Spread Over a Wide Geographic Area Spoilage Rate S W T O Macro Snack Food Industry SWOT ANALYSIS Opportunities Strength Threats Weaknesses

14. Branding Financial Global Organizational Structure Pringles Flavors Easily Altered for Local Preferences Ingredients Available Locally Israeli/Hebrew Website in Place Environment for Global Growth/Trade Barriers Lifting On-Line Social Network & Internet Marketing Techniques Environmental Goals Doubled for 2012 2010 Unemployment Rate 8.3% in Israel Volatility of US Dollar Middle East/Israel Unrest & Government Volatility Competition with Diverse Product Portfolios Substitutes Available/Cheaper Due to Economy, Consumer Spending Decreases Globally Limited Snack Food Industry Presence Kosher Food Development Significant Capital Outlay Packaging/Labeling Requirements More Strict S W T O Micro Proctor & Gamble/Pringles SWOT ANALYSIS Opportunities Strength Threats Weaknesses

15. Standard of Living Expanding Consumer Interest in New Foods/Products Snack Growth Rate Increasing Extensive Transportation Network/Energy Infrastructure World Trade Org Member/US Government Support Hi-Tech Pro-American Population: 7.2 million Gaza Strip Embargo Lifted Purchasing Power $1:3.67841 Shekel Education Level on the Rise Israel Unrest/Government Volatility Middle East Unrest Uncertainty Consumer Spending Decreases Security/Terrorism Remains Precarious Kosher Requirements Import Requirements Strict Traditional Business Week Sunday through Thursday Distribution Barrier 2010 Unemployment Rate 8.3% S W T O Macro Israel SWOT ANALYSIS Opportunities Strength Threats Weaknesses

16. P&G Strategy Built Around Core Competencies:

17. Short Term: Brand Building Develop a Winning Team Utilizing Local and Global Talent Consumer Understanding-Uncover the Unarticulated Needs of Consumers Go-to-Market Capability-reach retailers and consumers at the right place and time Long Term: Brand Building Innovation-Translate Consumer Desires into New Products Scale-Drives Efficiency and Consumer Value International Strategy:

18. Global Structure:

19. Operations: Locate in Beersheba Manage Locally Local CEO Yossi Yitzhak Former Executive at Osem - Nestle Israel Education LLB, MBA Staff Rabbi for Kosher Expertise P&G Israel Liaison

20. Map of Israel

21. Products: Current Products for Israel Potato Crisps in Snack Packs and Large Containers Original, Sour Cream & Onion, Jalapenos, and Barbeque Pringles Snack Stix Possible New Products Packaged Latkes for Hanukkah shallow-fried pancakes of grated potato, flour and egg, often flavored with grated onion or garlic and seasoning

22. Potential Opportunities Outweigh Risks Proceed with Manufacturing Operation/Sales Expansion into Israel Recommendations:

23. THE END QUESTIONS ?

24. Procter & Gamble Corporate Website http://www.pg.com Pringles website http://www.pringles.com Reuters Business & Financial News, by Nidal al-Mughrabi, Israel Eases Gaza Embargo to Allow Snack Food In 9 June 2010 http://www.reuters.com Market Report, Savory Snacks in Israel to 2014, http://www.pr-inside.com Doing Business in Israel—U.S. Commercial Service Israel http://www.buyusa.gov/israel/en/doing_business_in_israel.html USDA Foreign Agricultural Service GAIN Report, Global Agricultural Information Network, 23 Nov 2009. Mehadrin Tnuport Export, Israel: Potato and carrot season started. By: Wim Geurts 2 March 2010. http://www.freshplaza.com Linked In, Yossi Yitzhak personal page Alacra Store, Premium Business Information Source http://www.alacrastore.com/research/d-and-b/Israel/Snack+Foods_potato+chip Sources: