This section represents the heart of the marketing plan. Here, this portion enables the marketer to create the necessary strategies for implementation. It also enables the marketer to provide the objective basis for these strategies. The format also enables the marketer to objectively describe, in detail, each section in order to give the marketer’s intended planning audience the ability to judge the soundness of the proposed strategies. It is important to be as specific and detailed as possible. It will help in judging the plan’s effectiveness and use of required resources in the next section.
In this assignment, you will research, analyze, and create the marketing plan sections described below.
- Marketing Strategy: Using the sections below, describe your selected XXXXXXXXXXcompany’s marketing strategy in sufficient and objective detail.
- Objectives: Describe, in detail, the specific elements that make up XXXXXXXXXXthe marketing strategy. This enables management to create and XXXXXXXXXXimplement XXXXXXXXXXstrategies that can be measured and corrected. If XXXXXXXXXXchallenges arise, then corrective strategies can be objectively XXXXXXXXXXcreated and promptly implemented.
- Target Markets: List the segmented target markets that align with XXXXXXXXXXyour selected company’s products. This is important as all marketing XXXXXXXXXXstrategies begin with the following: segmentation, targeting, and XXXXXXXXXXpositioning.
- Positioning: Identify your selected company’s positioning XXXXXXXXXXattributes. These would be a brand description and its benefits. In XXXXXXXXXXaddition, you will need to describe your brand’s points of difference and XXXXXXXXXXpoints of parity.
- Strategies: Describe your strategies for the following categories: XXXXXXXXXXproduct strategy, pricing strategy, distribution strategy, and XXXXXXXXXXmarketing XXXXXXXXXXcommunications strategy. Together, these strategies XXXXXXXXXXidentify decisions about product mix and brands (product strategy), setting product prices and/or adjusting prices to competitor pricing (pricing strategy), assessment of existing and potential channel value effectiveness (distribution strategy), and a communication plan to all target market audiences and channel members XXXXXXXXXXmarketing communications).
- Marketing Mix: Describe the implemented programs and/or tactics XXXXXXXXXXthat would support the product, pricing, distribution, and marketing XXXXXXXXXXcommunications strategies.
- Since this is the stage in which other departments can become XXXXXXXXXXinvolved, demonstrate the coordination needed for the XXXXXXXXXXbest XXXXXXXXXXstrategies XXXXXXXXXXimplementation.
- Marketing Research: Describe how marketing research supports the XXXXXXXXXXbasis of your created strategies and implementation XXXXXXXXXXplans. Show how the XXXXXXXXXXobjective insights gathered from marketing research add customer value for your selected company’s products.
- Ensure that you identify each section with a heading in your assignment. You should reference at least three sources to support this section of your marketing plan. All sources used, including the textbook, must be referenced and follow APA formatting, and quoted or paraphrased material must have accompanying in-text citations.
- TEXTBOOK Aaker, D. A., & Moorman, C. (2018).Strategic market management (11th ed.). Hoboken, NJ: Wiley.
- Part one of assignment attached. Company; Proctor and Gamble
A Situation Analysis of Procter and Gamble
Denise Watson
Strategic Management
Professor Angela
February 11, 2019
A Situation Analysis of Procter and Gamble
Introduction
The foundations of Procter & Gamble were laid in 1837 through the collaboration between a British American called William Procter and Irish American called James Gamble. This multinational company has since concentrated on creating excellent consumer goods revolving mainly around four segments namely healthcare, personal care, fabric care and family care. Earlier it was also involved in sale of foods and snacks (McGuigan, 2015).
Procter and Gamble has been popular for several thousands of well-known products used all over the world like Head and Shoulders Shampoo, Gillette, Pampers, Olay, etc.
The company boasts a market capitalization of around $240 billion amassing total revenue of $65 billion (P&G, 2017). Procter and Gamble has it’s headquarter in Cincinnati, Ohio with a total workforce of over 95,000 employees worldwide.
Situation Analysis
As such the competition that P&G faces is tough. Even though as a company it has been in the field of Consumer goods for several years, it faces fierce competition from many brands both local and global. P&G will have to continuously produce something striking within its products to remain of great impact.
In addition to this, it must also capitalise on its strengths and opportunities and work on its limitations while handling its threats to remain successful in the future. One measure that it can actively improve in is the use of mobile technology to create campaigns that can help increase the company’s popularity. It must also either produce something new or endorse existing products to gain an edge over its competitors.
Market Summary:
The target market of P&G is varied since it produces a number of products that range from being useful to the young as well as the old. So the target market of P&G is diverse. For example, hair care products like Head and Shoulders targets the adult population both male and female. Pampers targets children aged 0-6 years and so on. Also the target market is spread all over the world so it is ethnically varied.
The needs of each segment of this varied market are different. Due to rapid changes in demand, the company will have to be perceptive in recognizing the needs of its consumer segments. For example there has been a shift towards greener products in the recent years. So in order to gain competitive advantage P&G will have to shift focus towards creating greener products.
Since P&G has decided to concentrate on its current market without indulging in new ones, increase in life expectancy as well as spending capacity of consumers is likely to show growth within the segment itself (Payaud, 2014).
The target market of P&G is moving towards digitalization but also towards the use of natural substances. So the company needs to assess the contrast between these two opposing segments and direct both its marketing and product quality accordingly. ()
SWOT Analysis:
The SWOT Analysis of Procter and Gamble reveals a list of Strengths and Opportunities while also showing some weaknesses and Threats.
The Strengths section of Procter and Gamble include
1- Top brand Ownership- P&G’s commands the ownership of several brands that are greatly valuable in themselves. Several of these are ranked amongst the top 500 brands world over. Thus P&G has great value in its own products and is thus greatly self-dependent.
2- High R&D- The research and development sector of P&G is greatly advanced and thus constantly adds to its product list. Many of its products have taken their individual markets by storm.
3- Customer Loyalty- P&G has delivered quality products for a long time and has thus ensured customer satisfaction. This has led to on-going customer loyalty on their behalf.
4- Great marketing and distribution strategy- P&G has always maintained a great marketing strategy with an effective distribution channel. This has brought it great demand which it has backed by proper distribution (Dodgson, Gann & Salter, 2006).
Weaknesses
1- Brand closure- P&G closed many of its brands in 2014 which led to some losses. It was also a setback to the trust of consumers who had gotten used to those brands.
2- Slow Management- Since P&G is a multinational company, the management is bulky and decision-making takes a long time. This has negative impact on some opportunities for the company.
3- Lack of change- P&G has been innovative but it has been resistant to change. While it seems to have brought in innovations on its brands, it has refrained from producing anything new.
Opportunities
1- Wide market- Since P&G is a global company, it has potential to grow into rural areas and more remote areas everywhere.
2- Marketing initiative- P&G has the chance of growing further if it can channel its marketing strategies to the lesser reached areas.
3- Consumer growth- The consumer base for P&G is likely to grow as the standard of living of people in the world improves along with improvement in their purchasing powers.
Threats
1- Competition- The greatest threat to Procter and Gamble is the intense competition it faces from both large and small companies
2- Innovation- Even though P&G is considered an innovative company, its innovations are slow compared to other brands.
Competition:
Since the products of P&G span several segments, it faces competition from different brands and different companies in different fields. When it comes to personal care segment, the major competitors of Procter and Gamble are Avon Colgate-Palmolive, Estee Lauder, Revlon and Unilever. The personal care segment gathers nearly one-quarter of Procter & Gamble's earnings.
Another segment, the grooming segment is dominated by Procter & Gamble's Gillette brand. However, Bic can be considered the major competitor with a large international presence. This segment covers one-fifth of Procter & Gamble's revenues.
In the health care segment, industries like CCA Industries, Colgate-Palmolive, Church and Dwight Co. (NYSE: CHD), Ecolab (NYSE: ECL) etc. are used. This segment constitutes about one quarter of the company’s earnings.
Fabric and home care segments have, major competitors like Colgate-Palmolive, Unilever, and Church and Dwight Co. This segment accounts for a quarter of Procter & Gamble's net earnings.
Finally in the baby, feminine and family care segment, major competitors include Colgate-Palmolive, Unilever, and Church and Dwight Co. This segment also contributes for another 25% of Procter & Gamble's revenues.
In addition, Procter & Gamble also faces competition from numerous smaller companies in all its segments in which it reports revenue. The strategy of the competitors is mainly capitalized on two points. First, the competitors have adapted to change and innovation at a faster pace when compared to Procter and Gamble. Second, they have also endorsed products with strong market presence and this has given them an edge over Procter and Gamble’s strategy of capitalizing on the old.
So Procter and Gamble need to either create new products or endorse new products to keep in line with the growing competition today.
Product Offerings:
P&G has the following products offerings in its various segments-
Homecare and hygiene products
In this segment, products that are useful for daily activities like cleaning and hygiene are offered. Some of the major homecare products of P&G include Ariel laundry detergent, Charmin bathroom tissue and moist towelettes, Crest toothpaste, Gain laundry detergents, liquid fabric softener, dryer sheets etc.
Kitchen care products
This segment constitutes all kitchen care products from cutting to cleaning. Examples of these products are Clancy's Potato Chips, Stackerz, Fairy washing up liquid, Dawn dishwashing, Downy fabric softener and dryer sheets, Febreze odor eliminator and dishwashing liquid
Gillette razors, shaving soap, shaving cream, body wash, shampoo, deodorant and antiperspirant
Personal care products:
This segment deals with products used for caring for personal appearance, grooming and health. Good examples of successful personal care products of Procter and Gamble products would be Head & Shoulders shampoo, Olay personal and beauty products, Pampers, Pantene hair care products, SK-II beauty products, Vicks cough and cold products.
Distribution:
There are three types of distribution strategies, namely, intensive, extensive and specialty distribution. P&G uses the type of distribution channel demanded by place and situation.
Intensive distribution is used by the company to supply as many goods to its outlets as possible to promote the purchase of the product.
Extensive distribution relies on using massive means to make the product available to as many dealers as possible.
Specialty distribution is a strategy that delivers products according to special circumstances or orders.
The distribution channels of P&G follows a very simple structure. The first step involves innovation and manufacture. The second step involves transporting the manufactured goods to the marketing agent. This is followed by distribution to wholesalers. Finally from there on it is passed on to retailers and consumers.
Conclusion
Procter and Gamble has been the holder of several top brands in the world in the consumer goods section. Though its marketing strategy has been successful so far, it has faced some instability and narrowed its brand range. It faces severe competition from other brands, both locally and globally. In order to stay ahead of its competition, Procter and Gamble must adapt to the ever-changing consumer industry more quickly and make relevant changes to its marketing strategy.
References
Dodgson, M., Gann, D., & Salter, A. (2006). The role of technology in the shift towards open innovation: the case of Procter & Gamble. R&D Management, 36(3), 333-346.
McGuigan, L. (2015). Procter & Gamble, mass media, and the making of American life. Media, Culture & Society, 37(6), 887-903.
Payaud, M. A. (2014). Marketing strategies at the bottom of the pyramid: Examples from Nestlé, Danone, and Procter & Gamble. Global Business and Organizational Excellence, 33(2), 51-63.
P&G (2017). 2017 Annual report and proxy. P&G. Retrieved from http://www.pginvestor.com/CustomPage/Index?KeyGenPage=1073748359