2 min script and power point slides for marketing plan on P&GMust have a 2 minute script from the information included… Make the power point slides from the information in the paper included. please make minimum 5 slides … with a script per slide … i have to be talking for at least two minutes…thank youI will be doing the video and reading the script myself.(this is just what the teacher wrote )this week your group will create a PowerPoint presentation to present the research findings. You will evenly divide the slides/material between all group members and each member will create their own PowerPoint video presentation .. All group members will do this individually (2 minutes minimum each), but the submission will be made in a group submission folder so everyone has access to review the submission. Please ensure you do not overlap slides, I would like to be able to combine all submissions for one document of your presentation
group_7__marketing_plan_section_2__procter___gamble.pdf
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Running head: A Marketing Analysis of Procter & Gamble
A Marketing Analysis of Procter & Gamble
Procter & Gamble
Members: Christian Bautista, Shimmeri Selph, Abdulelah Altorki
Due: March 17, 2019
Running head: A Marketing Analysis of Procter & Gamble
4.0 Differentiation & Positioning
One of the key testaments taken from Chapter 4 of the text reflects on a company’s
product range, “We stressed the shortcomings of a too-narrow, product-oriented view of
markets and explained why it’s better to take a broader view that also includes consideration
of customer needs, the product type, the customer type, and the geographic area” (108).
Procter & Gamble certainly accomplishes this by featuring a wide range of companies that
produce some of the most recognizable everyday consumer brands and products.
But being a consumer goods corporation, like many other competitors, often comes with the
benefit of owning many recognizable brands. So what defines and sets Procter & Gamble
apart from the competition? As soon in the figure below, what differentiates Procter &
Gamble in order to have such a disproportionate advantage in their market?
(Figure 1: PatSnap 2016)
Running head: A Marketing Analysis of Procter & Gamble
One simple yet key feature of Procter & Gamble resides in its history. Procter & Gamble is
one of the oldest companies in its competitive history — established in 1837. In comparison,
many competitors in their market such as Unilever, Kimberly-Clark, and General-Mills were
established much later in 1929, 1872, and 1928 respectively. Understably, from the content
covered in BMKT 325 — this is undoubtedly a huge competitive advantage. Another key
piece of information that sets Procter & Gamble apart from the competition lies in dissecting
the company’s financial ratios compared to competitors.
(Figure 2: Forbes 2016)
As referenced from the above graph, Procter & Gamble is overall stronger financially and
thus as a business (Forbes 2016). According to the graph, Procter & Gamble has the lowest
debt-to-equity ratio among its peers — meaning it has incredibly low risk for any debt crisis
in the foreseeable; other competitors with a higher debt-to-equity ratio symbolize a more
risky financial situation for the future. Another key financial metric showcasing Procter &
Gamble’s differentiation from market resides in its low price-to-book ratio. Generally, a low
price-to-book ratio is beneficial to the overall success of a public company because it signals
to investors an undervalued company with larger potential (Investopedia 2019). Procter &
Gamble has been priced the least in accordance with its competition indicating an upper edge,
certainly differentiating it from peers with Unilever and Kimberly-Clark’s values resting at a
high 7.4 and 137 respectively. Another key piece of information that will position Procter &
Gamble far apart from competition is its aggressive saving strategy which will complement
its already strong and superior debt-to-equity ratio,
the company has set a target of saving $10 billion by FY’21 through increase
in the production efficiency, the benefits of which might trickle down to the
bottom-line. The company has successfully managed to save $10 billion in the
last 5 fiscal years (Forbes 2016).
Running head: A Marketing Analysis of Procter & Gamble
Overall, what differentiates Procter & Gamble is its financial structure and history. Their
incredible strength derived from their financial numbers show a company that is persevering
as an industry leader.
5.0 Marketing Strategy
Behind the success of Procter & Gamble, one major factor is its strong marketing strategy.
Marketing objective of Procter & Gamble is very clear and sound that it want its products to
reach every part of the world by putting special focus on target market and acquisition (P&G,
2019). The company is employing successful marketing strategies according to situation and
geographic location. It keeps on updating its strategies considering trends in consumer
markets. In its marketing strategy it not only utilize its global presence but also put great
focus on every market segment. It markets its products by emphasizing on needs of the target
markets. Marketing strategies used by P&G include market penetration, market development
and diversification strategy.
While making marketing strategies, Procter & Gamble do care for geographic, demographic
and psychographic factors. Its strong product line is the source of its strong presence, thus
competitive advantage over others. The most significant categories in which Procter &
Gamble fulfills needs of target market include baby care, fabric care, family care, feminine
care, hair care, home care, grooming, personal health care, oral care, skin and personal care
(P&G, 2019). In more than 180 countries, P&G is selling its products. Mostly it is reaching to
its customers through fully owned business units. However it is also utilizing joint ventures
option at some place. Due to such a large distribution network, it is able to make its products
available to it target market even in the remotest places of various regions. Its distribution
network includes resellers, distributors, retailers and e-commerce platforms.
As a part of its marketing strategy, P&G has successfully created brand awareness among its
target markets worldwide through advertisements, CSR initiatives, positive word of mouth
and digital marketing. Although the industry, in which P&G is operating, is highly
competitive but P&G has attained a superior position based on quality of its products, product
portfolio and wide distribution reach.
5.1 Target Market
From the text, successful marketing strategies are ones that “constantly study the
market environment—seeking attractive opportunities and planning new strategies” (53).
Procter & Gamble executes just that. Procter & Gamble’s primary market, secondary market,
and tertiary market will be defined by both geographic region as well as by corresponding
business segments. Procter & Gamble’s primary market by geographic region is North
America where approximately 45% of its revenue is generated (PG Investor 2019). Procter &
Gamble’s second largest market is Europe — consisting of 24% of it’s business (PG Investor
2019). Procter & Gamble’s tertiary market resides in “developing markets” which consist of
Running head: A Marketing Analysis of Procter & Gamble
35% of its overall business; broken down the tertiary markets consist primarily of Latin
America, China, and the Middle East which constitute 7%, 9%, 7% of Procter & Gamble’s
business respectively (PG Investor 2019). Furthermore, in respect to all these regions
(Primary, Secondary, and Tertiary) Procter & Gamble segments its overall target markets by
business segment percentages as well. Fabric & Health Care products consist of 32% of their
business, Baby & Feminine products consist of 27% of their products, Beauty products
consist of 19% of their business, Health products consist of 12%, and Grooming consists of
10% of their business (PG Investor 2019).
5.2 Product
All products of the company are consumer products. It means company is addressing the
needs of large number people to make their lives easy. Its products are not used by other
manufacturers to produce something else or it can be claimed that its goods are not capital
goods. For example Tide is one of the famous brands of Procter & Gamble. It falls under the
category of “Fabric care”. It was developed by P&G as an innovation to make the life of
women easier. It was further developed and more features were included in the product to
make it more effective and serve larger set of needs in fabric care category. It strong point
which is emphasized in marketing is that Tide is strong in stain removal but it is gentle on
clothes. Moreover its ingredients are eco-friendly (Tide, 2019). Such products are assisting
P&G to enhance its customer base by fulfilling diverse needs of users.
●
Stage of the product life cycle
Although Tide was introduced 70 years ago and it generated huge sales a long time. It has
passed the introduction and growth stage. Now it is at maturity stage where the aim is to
reduce the impact of competition from other brands like RIN. In order to handle competition,
Tide is continuously being promoted and advertised.
● Product developments constraints
Continuous development in the products by of Procter & Gamble through research and
development is the key factor behind high quality products. Although P&G is a multinational
and well financed company but still it faces some constraints. For example focusing on
improving Tide features means P&G is bearing opportunity cost. As in that time and budget,
P&G can work on some new and innovative product. So in the development of product like
Tide, company has to make some trade-offs (Cooper & Mills, 2005). Further company has to
face pressure not only due to intense competition from external environment but also from
fear of failure in the internal environment.
● Branding for the product
Running head: A Marketing Analysis of Procter & Gamble
Tide brand logo is made up of three circles enclosed in another with tilted “Tide” name on
these circles. These circles may represent laundry wash cycle or circular movement of
machine. P&G has successfully established a strong image from its beginning and this strong
image has helped it to strengthen its all brands. However strong image of P&G is not the only
source of success for Tide. Quality of Tide products has established a unique goodwill among
consumers. Great response from consumers pumped the management of Tide to conduct
research and development in order to improve product and enhance product line.
5.3 Place
The mixture of different types of markets has brought the option to make multiple
different placement strategies. The P&G company’s mission statement is “improve the lives
of the world’s consumers” (P&G, 2003). The products that P&G distributes are provided
worldwide in over 180 countries. P&G operates through a single channel system. The
structure of the distribution chain is as follows:
You
Running head: A Marketing Analysis of Procter & Gamble
The marketing functions that are shared within the Selling and Market Operations
(SMOs) of P&G. The SMO is “responsible for developing and executing go-to-market plans
at the local level- and includes dedicated retail customer, trade channel, and country-specific
teams”(P&G, 2019). The marketing is not only shared within the SMO, but within the Global
Business Services (GBS) that operates and supports the operations, infrastructure, systems,
and shared services that keep P&G running. GBS also creates, discovers, and executes
technologies to help P&G grow.
5.4 Promotion
P&G’s promotional strategy is to create a competitive advantage over the entire
consumer goods industry across the globe. The major theme of marketing that P&G focus on
is providing the consumer with reliable and innovative products. The brand awareness is
promoted by word-of-mouth and the overall presence in the market. The promotion blean that
is being utilized are the advertising, sales promotion, personal selling, public relations, and
direct marketing of their products. The marketing strategies are all communicated to their
target markets. All of the target markets will receive different information based on their
location, demographics, and other criteria. P&G uses the pull strategy to promote its
products. By having a large amount of different products and distribution channels, P&G
promotes largely through mass media, advertisements, coupons, and word-of-mouth through
customers.
5.5 Price
The pricing philosophy of Procter & Gamble, and any company for that matter,
fluctuates based on production, labor, and advertising expenses. Recently, Procter & Gamble
has shifted their pricing strategy dramatically considering a number of external parameters
influencing the profit of the company. In recent years, labor costs have increased sharply,
“the Labor Department said the employment-cost index, a measure of wages and benefits for
civilian workers, increased 2.8% in the year to June, which marked the strongest gain since
the third quarter of 2008” (Wall Street Journal 2018). That signals an increased pressure on
the companies’ labor costs. In addition, in regard to Procter & Gamble’s pricing strategy shift
the Wall Street Journal notes that for the company “commodity costs have been on the rise
since last year” (2018). With increased costs Procter & Gamble has shifted to “increase prices
on its Pampers brand in North America by 4% on average and by 5% on its Bounty, Charmin
and Puffs brands. The increases go into effect later this year or in early 2019” (Wall Street
Journal 2018). Procter & Gamble will likely succeed in increasing their overall prices, but the
price change decision must be taken with extreme care, for if shoppers reduce their buying
behavior for any unforeseen reason, Procter & Gamble will likely have to rely on promotions
in their marketing and pricing philosophy to maintain sales.
Running head: A Marketing Analysis of Procter & Gamble
References
Cooper, R. G., & Mills, M. S. (2005, October). How P & G achieves such stellar NPD
results. Retrieved from Stage Gate:
http://www.five-is.com/wp-content/uploads/2013/12/Cooper_Mills_2005_Suc
ceeding_at_New_Product_Development_the_PG_way.pdf
Gallaway Safety & Supply. (2017). History of Kimberly-Clark. Retrieved March 12, 2019,
from http://www.gallawaysafety.com/History-of-Kimberly-Clark
General Mills. (2019). General Mills 150 — Making Food People Love.
Retrieved March 12, 2019, from https://history.generalmills.com/
Investopedia. (2019, March 12). Who Are Procter & Gamble’s Main
Competitors? Retrieved March 16, 2019, from
https://www.investopedia.com/ask/answers/120114/who-are-proctor-gamblespg-main-competitors.asp
PatSnap, T. (2016, October 10). Unilever vs P&G-Reacting to changing
consumer needs. Retrieved March 16, 2019, from
https://www.patsnap.com/blog/unilever-vs-pg
PG Investor. (2019). P&G. Retrieved March 13, 2019, from
http://www.pginvestor.com/PG-at-a-Glance/Index?KeyGenPage=1073748355
P&G. (2019) Structure and Governance. Retrieved from:
https://us.pg.com/structure-and-governance/corporate-structure/
P&G. (2019). Iconic brands you can trust in your home. Retrieved from us.pg:
https://us.pg.com/brands/
P&G. (2019). POLICIES & PRACTICES. Retrieved from us.pg:
https://us.pg.com/policies-and-practices/purpose-values-and-principles/
P&G. (2003). Our Purpose, Values, and Principles. Retrieved from:
https://www.pg.com/translations/pvp_pdf/english_PVP.pdf
Terlep, S. (2018, July 31). Procter & Gamble, in a Strategy Shift, Moves to
Raise Prices. Retrieved March 11, 2019, from
https://www.wsj.com/articles/procter-gamble-reports-slightly-higher-sales-dro
p-in-prices-1533040191
Tide. (2019). About Tide. Retrieved from tide.com: https://tide.com/en-us/about-tide
Trefis Team. (2016, December 29). By The Numbers: Procter & Gamble Is A
Better Buy Than Its Peers. Retrieved March 15, 2019, from
https://www.forbes.com/sites/greatspeculations/2016/12/29/by-the-numbers-pr
octer-gamble-is-a-better-buy-than-its-peers/#2334f1614d1e
Unilever. (2019). Our history. Retrieved from
https://www.unilever.com/about/who-we-are/our-history/
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