Two to Tango

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Future Outlook

The acquisition deal by P&G will help the combined company in becoming the second largest consumer products company in the world. Adding the best shaving products to its portfolio, will give P&G many added advantages such as brand name and technological edge. The deal is going to throw open many challenges to P&G . The challenge lies in giving Gillette's products the same treatment in terms of marketing and merchandizing; the challenge of creating successful brands and further building the same faith with customers. P&G has to rethink of its strategies in markets like India where Gillette has already had its presence. Marketing the same products with a different name won't serve the purpose. Handling the overlap of brands is also a major concern for the new company.

Analysts all over the world term this deal as the next big step in the consumer goods business. Of course Gillette's brand name and reach will give a start-up kick but P&G's long-term success will depend a lot on its execution-use of technology, advertising strategies, ability to create a common culture and manage such a long portfolio. According to Al Ries, "mergers that broadens a company's product line just makes the company bigger without producing any marketing advantages". Earlier big corporate marriages failed to live a happy and lengthy life, but P&G has survived all its past acquisitions. Will P&G will be lucky this time in turning the tables and rewriting a new era in corporate marriages and consumer markets? Only time can answer this question. Let us wish them very happy and prosperous married life.