The Challenge
As new opportunities were emerging after the demise of the Soviet Union, Procter & Gamble (P&G) chose to invest in a Russian chemical plant located in the Tula Region. In doing so, P&G had to consider the sensitivities of the local population and authorities. The public had apprehensions about an American company taking over a local production facility, despite the positive impact such an investment could have on the community's development and local economy.
The Solution
APCO assisted P&G in targeting Tula authorities and the local community to educate those audiences on the benefits of P&G's investment in the region. APCO also developed close contacts with Tula's regional media and worked closely with journalists to ensure their coverage would highlight P&G's commitment to improving the local production facility and investing in the community. In addition, APCO assisted with managing media coverage of targeted philanthropic programs that raised P&G's profile among Tula Region residents and government officials alike. While P&G restructured the production facility and increased its investment over time, APCO nurtured local contacts and provided support to ensure media coverage was ongoing and positive.
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The Result
Over the years, P&G's investments in the Tula Region facility have enabled the company to increase its stake from a small percentage to full ownership. P&G's presence has served as an engine of economic growth in the Tula Region, creating jobs for the local community and improving labor conditions through the implementation of policies that meet international standards. With APCO's assistance, P&G has built and maintained a positive image. In addition, the company has preempted and neutralized crisis situations by engaging regional media with whom APCO and P&G have developed strong relationships.
Services Provided
- Community affairs & strategic philanthropy
- Crisis management
- Media relations
- Positioning
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Working with regional media on P&G's behalf, APCO helped develop a favorable investment climate in the Tula Region and demonstrated a high level of professionalism in the process.
