Procter and Gamble marketing strategy

Résumé du document

We chose Procter and Gamble because it's a huge company, which is established in different sectors and owns a multitude of products. It acts internationally and has a good place and a good experience in the market.

After a successful start, P&G is now an international company which owns more than 250 different brands and is established in more than 35 countries worldwide. One of its major missions is to respond to consumers' desires in terms of quality and innovation and also to respect the local environment as much as it can. This will not be realized if the company will not do well financially. In fact, P&G has an important free cash flow that helps it to develop and invest in new technologies. Added to sales that are rising up, we obtain a multinational company that has an insurance to be sustained by its shareholders for a long time. The firm has a good predictable future.

To analyze the environmental analysis, we have conducted the PEST analysis of four main factors. We chose an area first: Europe, for the political aspect: environment is stable and governments of different countries don't act alone. They should respect the directives of the European authorities. Relating to economical factors in Europe, each country doesn't have a lot of power; the European organizations take care of the economy notably the laws, directives, etc. For socio-cultural aspects, Europe is an area that blends in the society quite well. Birth rate isn't really high but life expectation keeps growing. Culture doesn't change a lot between countries. Finally, concerning technology, it offers a new way to communicate (internet, customer relationship management) and it improves the supply chain for distribution.

P&G is the market leader in the majority of its segments. To make the difference, it spends $5 million per day for R&D. Product technology and innovation is the task of the company. High barriers to entry are erected because new entrants have to succeed in being a reference in the market. Buyers are the retail establishments such as grocery stores, discount chains, and warehouse stores that purchase P&G products for resale to consumers.

Extraits

[...] From now on the company's future was designated to change radically because of the enormous demand of this magical product and all other related products. Now was time for this small company to grow because of the enhanced demand the products they were selling had reached. Thus, the symbol of P&G was created in1961 with the apparition of Pampers, a worldwide-designated product. Then, came the coffee in 1963 and the toothpaste. By 1980, sales had reached 10 billion dollars who made of P&G one of the biggest multinational company of the United States of America. [...]

[...] From chemicals to software, packaging to paper, innovation is the heart of all they do. P&G has already licensed a number of technologies. They acquire Technologies They are interested in exploring the technologies of small and large companies, start-ups, universities, and individuals that have potential product applications. To share a technology, product, package, or process with you just need to go to their web site Condition of employee: To their employees, they provide safe working conditions, an environment based on respect for the individuality and capability of each employee, the opportunity and encouragement to contribute their ideas and develop their careers as far as possible, and wages and benefits that enable them and their families to live in a sustained and healthful manner. [...]

[...] (In case of delayed shipments or too high prices.) T4 W2: a slow down in cash flow could affect P&G's innovating strategy which could be a handicap in those days of hard competition. V. Swot analysis As we have seen before, Procter and Gamble is a global company offering various products. It operates in five core businesses that we have already mentioned before. Most of its different brands are leader in there respective segments but P&G must face an important competition from other well-known multinational companies. [...]

[...] New strategies 1. Built existing core businesses into stronger global leaders. Procter and Gamble is a company that has multiple activities but only four are core businesses: baby care, fabric care, feminine care and hair care. These four core businesses generate more than half of the total company profit. But in fact, we know that they are categories in which we can maintain and extend the leadership of P&G. Since three years P&G has increased the share of these core businesses. [...]

[...] Overexposure to mature markets For categories such as laundry detergents and paper, European and US markets are saturated. Since these two markets are highly developed, P&G has decided to expand its activities to developing and emerging countries, which already regroups 35% of the sales. But its market share is estimated to be fewer than 20% as compared with 27% for Unilever, its main competitor. Opportunities Emerging market Even if P&G is not as active as its competitors in developing markets, it stays an opportunity for the company to increase his volume of sales because these markets grow 50% faster than developed markets. [...]