P&G’s Marketing Strategy By : Insan Maulana 8215123463 Management Regular A Page | 1
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P&G’s Marketing Strategy
By :Insan Maulana8215123463
Management Regular A
Page | 1
Economy Faculty, Building R State University Of Jakarta,Rawamangun Muka street, Jakarta 13220
Acknowledgment
First of all we are much thankful to almighty Allah who
blessed us with knowledge like blessing, which is undesirable
gift of Allah .to humanity, this is the real gift due to which
man has been created and honored with such glossary.
After this we would also like to mention his last
prophet (Muhammad peace be upon him), the shear love of whom
guide us at every dear step. Thanks to my parent, my friends
and also my lecture which is guiding me to solve the
challenges and barriers for accomplish this. Therefore, we
thank profusely to all those who have helped in the
preparation of this paper.
In this paper we will discuss about "marketing strategy of P &
G". This is made to fulfill the task of marketing management.
We realize that there are still many fundamental flaws in this
paper. Therefore we invite readers to give suggestions and
criticisms which we can build. Constructive criticism from
readers so we expect to improve further papers.
Hopefully, this paper can provide a benefit to us all.
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Author
Table of Content
Acknowledgment...................................................1Table of Content.................................................2
Preface...........................................................3
Background....................................................3Purposes......................................................3
Problem.......................................................3Content..........................................................4
1. Company Profile of P&G.....................................42. Marketing opportunities and issues.........................6
3. Objectives and goals.......................................74. Targets markets............................................7
5. Product....................................................86. Positioning................................................9
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7. SWOT Analysis..............................................97.1 SWOT analysis of P&G...................................9
7.2 SWOT Analysis compared with competitor (Unilever)......108. MARKETING MIX.............................................12
8.1 Product................................................128.2 Pricing................................................12
8.3 Place..................................................138.4 Promotion..............................................14
9. Distribution Strategy.....................................1510. Contingency plan.........................................16
11. Review and control.......................................1712. Observations.............................................17
Closed............................................................18
Conclusion...................................................18Bibliography....................................................19
PrefaceBackground
The Procter & Gamble Company, also known as P&G, is an
American multinational consumer goods company headquartered
in downtown Cincinnati, Ohio, United States. Its products
include pet foods, cleaning agents, and personal care
products. Prior to the sale of Pringles to the Kellogg
Company, its product line included foods and beverages.
In 2012, P&G recorded $83.68 billion in
sales. Fortune magazine awarded P&G a top spot on its list
of "Global Top Companies for Leaders", and ranked the company
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at fifteenth place of the "World's Most Admired Companies"
list. Chief Executive Magazine named P&G the best overall
company for leadership development in its list of the "40 Best
Companies for Leaders.
Purposes
1. To know what is the strategy marketing of P&G company.
2. To analyze how was the effectiveness of their marketing
strategy
3. To analyze position of P&G against their competitor.
ProblemCompanies like P&G are a force in the world. Their market
capitalization is greater than the GDP of many countries, and
the market of their products in more than 180 countries. But
problem arise when comsumer begin too differ and more unique.
P&G must keep in top, survive and hold their consumer with
various strategy market. This company must tink carefully to
fullfil consuemers need.
Content
1. Company Profile of P&G
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In 1837, Procter and Gamble was founded in Cincinnati by
William Procter, a candle maker, and brother-in-law Gamble, a
soap maker. Their joint venture started one of the most
influential companies in all American industry. The company's
first product was Ivory soap, introduced in 1879.
For generations, Procter and Gamble has been built by
scientists and consumer researchers; the latter finding out
what the public wants and needs, and the former improving upon
old products or inventing new ones to match these needs and
desires.
Three billion times a day, P&G brands touch the lives of
people around the world. The company has one of the strongest
portfolios of trusted, quality, leadership brands, including
Pampers, Tide, Ariel, Always, Whisper, Pantene, Mach3, Bounty,
Dawn, Gain, Pringles, Folgers, Charmin, Downy, Lenore, Iamb,
Crest, Oral-B, Atonal, Duracell, Olay, Head & Shoulders,
Walla, Gillette, and Braun. The P&G community consists of
126,000 employees working in over 80 countries worldwide.
P&G’s company condition are following :
Type Public
Traded as NYSE: PGDow Jones Industrial AveragecomponentS&P 500 component
Industry Consumer goods
Founded 1837
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Founder(s) William Procter and James Gamble
Headquarters
Cincinnati, Ohio, U.S.
Area served
Worldwide
Key people A.G. LafleyChairman, President and CEO
Products Foods, beverages, cleaning agents and personal care products
Revenue US$ 84.17 billion (2013)
Operating income
US$ 14.48 billion (2013)
Net income US$ 11.31 billion (2013)
Total assets
US$ 139.26 billion (2013)
Total equity
US$ 68.06 billion (2013)
Employees 126,000 (2012)
Website www.pg.com
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2. Marketing opportunities and issues
Procter and gamble has more than half of the world's 6.7
billion consumers. They want to reach another billion in the
next 2-3 years, and much of that growth is going to be in the
emerging markets, where most babies are being born and where
most families are being formed. We see growth across our
entire portfolio.
It creates new categories that are a source of sales and
profit growth in the future. It brings consumers into their
stores to try new products, and it brings consumers back to
their stores, where they can get products they trust.
Issues:
a. For Sales growth they need highly intensive distribution
and strong promotions
b. P and G is facing competition from unilever as on the
base of different brands market share
c. P and G has to maintain its difference from other brands
as creating unique values that others are not giving with
core product.Page | 8
d. Sales growth is possible when product remain at fixed
price for a specific time period and this depend on
cheapest raw material handling and its transporting
3. Objectives and goals
Insert for growth improve competitive position
Selling existing product into new market
New product into existing market
To increase sales of the product by sale market share 30%
real terms coming 3 years.
Sale volume will be increase at 5% discount to customer.
Build existing core business into stronger global leaders
Develop faster growing, higher margin with potential.
Improve sales growth of top line brands
Drive growth in key developing markets.
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4. Targets markets
Target market of P&G mostly like the following :
Procter and gamble targets the middle up class customer
Procter and gamble targets especially women and children
Company will use about 10% cost to retain its customer
And to retain the existing customers company will use
following tactics.
Improve contracts with existing customers.
Will use frequency program.
Identify and more contact with new potential customers.
Objection handling will be encouraged become campanile
constraint that 2/3 ideas come from over customers.
Will concert profiteer customers will more pollinate
customers.
Company considered that “customer is always the king of
the market” and more sensitive to quality and prices at a
time.
5. Product
Generaly, P&G devine their procuct in two type.
1. Beauty and Grooming
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007 Men's FragrancesAlwaysAnna SuiAussieBraunChristina Aguilera PerfumesClairol ProfessionalCoverGirlCrestDDFDolce&Gabbana FragrancesDolce&Gabbana Make UpDunhill Fragrances
Escada FragrancesFekkaiFusionGhostGilletteGucci FragrancesHUGO BOSS FragrancesHead & ShouldersHerbal EssencesIvoryLacoste FragrancesMACH3Naomi CampbellNatural InstinctsNice 'n EasyNioxinOlay
Old SpiceOral-BPantenePertPrestobarba/BluePumaRejoiceSK-IISafeguardScopeSebastian ProfessionalSecretTampaxVenusVidal Sassoon
2. Household care
WellaAceArielBoldBounceBountyCascadeCharminCheerComet
DashDawnDownyDreft LaundryDuracellEraEukanubaFebrezeGainIams
JoyLuvsMr. CleanPampersPrilosec OTCPuffsSwifferTideVicks
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6. Positioning
Company will position itself as a value for money brand .Its
appeal will be “where your dreams come true” with touching
life, improving life.
7. SWOT Analysis
7.1 SWOT analysis of P&GStrengths:
Diversified brand portfolio
Research and Development
Global Operation
Strong Distribution Network
Weakness: Online media & Leadership
Dependency
Missing Opportunity
Opportunity: Diversification
Capitalizing on online media
Growth in Indian FMCG market
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Environment concern
Threats: Competition
No new product innovation
Government regulation
7.2 SWOT Analysis compared with competitor(Unilever)Strength
Enjoying economies of scale
Strong financial position
Well-known brand name
Well brand image
Committed employees
Good Resources
Relative large market shows
Large captive customers in same group
Good quality Suitable Prices
Strong sale force
Weaknesses Still manual system
Less qualified staff
Weak communication skills
Internal operating problems
No one to one marketing
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Opportunities (For us) Our new product can gain market share at their expense.
We can expand over distribution area.
Threats (To us) They have the resource to Develop product quickly of
sales increase more they will above to support back up
science. They have resource for large per motional
campaign
Wider range of product line.
Grater market share
Large number of distributers
Large budgeting for advertisement
Smuggled brands of CHINA
New competition in the market
Increases in taxes
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8. MARKETING MIX
8.1 ProductStrategy Change product
Tactics
Change product port folio.
Expand product line to cover a wider market.
Develop separate products for different markets.
Acquire new products that complement existing products
through the acquisition of new companies.
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Strategy Drop, add or modify products
Tactics
Drop marginal products.
Launch a modified product.
Develop new products to supersede old products.
Strategy Change, design, quality or performance
Tactics
Establish a quality image through the development of
quality products.
Distinguish your product from your competitor’s products
in the eye of your customers.
Establish a permutation for innovation.
Create new uses for your existing products by adding
exclusive features.
8.2 PricingStrategy Change price terms or conditions for particular
products
Tactics
Product price low and obtain maximum profit on spare
parts.
Use different prices and different price lists for
different markets.
Set price at 10% below market leader.
Reduce price of product to maximize sales (to allow
increased production and reduce unit production cost).
Strategy Skimming policy
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Tactics
Set price of new product at level 30% about previous
products.
Sell on new revolutionary design features and benefits.
Be prepared to reduce price as volume if competitors
enter into the market.
Strategy Penetration policy
Tactics
Set low price for new product to discourage competitors
from entering market.
Increase turnover to level where product become
profitable at this price level.
Strategy Discount policy
Tactics
Offer quantity discount to encourage large purchases.
Offer discount level for next year.
8.3 PlaceStrategy change channels
Tactics
Set own distribution direct to stores
Change distribution for area
Increase number of warehouses for product.
Strategy improve services
Tactics
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Set up national service network.
8.4 PromotionStrategy change selling/sale force organization
Tactics
Strengthen sales force organization.
Reorganize sale force for particular area.
Introduce performance related bonus scheme for sale
force.
Recruit additional sales personnel.
Increase sales effort to increase sale to major
customers.
Increase sales efforts for most profitable products.
Strategy Change advertising/ sale promotion
Tactics
Start new advertising campaign.
Increase company image advertisement.
Increase advertising for the product in specific market.
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9. Distribution Strategy
There are 3 types of distribution which being followed :
Intensive distribution
Is a distribution strategy which a company sells through
as many outlets as possible.
Extensive distribution
Is a distribution strategy that utilizes multiple
delivery channels and high distribution volume to reach
as many potential customer as possible.
Specialty distribution
The company tend to use intensive distribution in several
region like India because for several reason :
PGHH Ltd, is following this strategy in india.
As the company manufactures the FMCG (fast moving
consumer goods) convenience/ necessity goods.
As these serve the necessity goods hence there is
lesser/no brand loyalty from the customers side, so the
distribution network of the company needs to be very
strong and proactive.
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P&G use a simple distribution channel to deliver their
product to the consumer.
1. Manufacture
2. Marketing Agent
3. Wholesaler / distributor
4. Retailer
5. Consumer
This channel has purposes to attain and maximize several
criteria. Such as :
Ordering Speed: It is the time taken after the
manufacturing of product and the time till it reaches the
consumer.
Delivery Flexibility: How easy to distribute the product.
Personal Selection And Customization: Which distribution
channel to select.
10. Contingency plan
Company is much afraid of current global economic condition
as the company is willing to increase its market share and
sales.
Solution: Company should contact the head office in each region for
the strategic support to achieve its goal.
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Company should make huge expense on advertising to retain
and create new customer.
Company should held maximum seminars and meeting for the
promotions and products of the company,
Company should cut the allowances and should accommodate
for the important designations.
11. Review and controlCompany will have simple friendly decision weekly monthly
quarterly and annual reports focusing on
Revenues and unit sales
ExpensesPage | 21
Customer feedback
Stock
Market share
Discounts
Advertising budget
Employee recruitment and termination.
12. Observations Communication skills are strong.
More concentration on marketing concept.
Cooperative employees.
Strong management.
Attractive packages.
Positive attitudes towards outsiders.
Strong DMBS.
Maximum career opportunities for employees.
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ClosedConclusion
Company‘s strategies are very suitable. Company should
invest more on advertising to retain its customer and pay
more attention to its issues and should review very well.
Procter and gamble using the tool of depositioning very well
to attain its customers and a part of preparation against
their competitor like Unilever.
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Bibliography
http://en.wikipedia.org/wiki/Procter_&_Gamble
http://www.pg.com
http://www.slideshare.net/ritulakhotia/pg-marketing-strategies
http://www.marketingweek.co.uk/brands/procter-gamble/
http://www.authorstream.com/Presentation/anuj.jimj-1317718-
procter-gamble-marketing-strategy/
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