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P&Gs Marketing Strategy

By :
Insan Maulana
8215123463
Management Regular A




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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.








Author
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Table of Content

Acknowledgment ................................................................................................................................ 1
Table of Content ................................................................................................................................. 3
Preface ................................................................................................................................................ 4
Background .................................................................................................................................. 4
Purposes ...................................................................................................................................... 4
Problem ....................................................................................................................................... 4
Content ............................................................................................................................................... 5
1. Company Profile of P&G .......................................................................................................... 5
2. Marketing opportunities and issues ........................................................................................ 7
3. Objectives and goals ................................................................................................................ 8
4. Targets markets ....................................................................................................................... 8
5. Product .................................................................................................................................... 9
6. Positioning ............................................................................................................................. 10
7. SWOT Analysis ....................................................................................................................... 10
7.1 SWOT analysis of P&G ................................................................................................... 10
7.2 SWOT Analysis compared with competitor (Unilever) ................................................... 11
8. MARKETING MIX .................................................................................................................... 13
8.1 Product ........................................................................................................................... 13
8.2 Pricing ............................................................................................................................. 13
8.3 Place ................................................................................................................................ 14
8.4 Promotion ....................................................................................................................... 15
9. Distribution Strategy.............................................................................................................. 16
10. Contingency plan ................................................................................................................. 17
11. Review and control .............................................................................................................. 18
12. Observations ........................................................................................................................ 18
Closed .............................................................................................................................................. 19
Conclusion ................................................................................................................................. 19
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Bibliography ...................................................................................................................................... 20

Preface

Background

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 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.

Problem
Companies 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.


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Content

1. Company Profile of P&G

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&Gs company condition are following :
Type Public
Traded as NYSE: PG
Dow Jones Industrial Averagecomponent
S&P 500 component
Industry Consumer goods
Founded 1837
Founder(s) William Procter and James Gamble
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Headquarters Cincinnati, Ohio, U.S.
Area served Worldwide
Key people A.G. Lafley
Chairman, 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.
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








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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.


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.


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5. Product

Generaly, P&G devine their procuct in two type.

1. Beauty and Grooming

007 Men's Fragrances
Always
Anna Sui
Aussie
Braun
Christina Aguilera
Perfumes
Clairol Professional
CoverGirl
Crest
DDF
Dolce&Gabbana
Fragrances
Dolce&Gabbana Make
Up
Dunhill Fragrances
Escada Fragrances
Fekkai
Fusion
Ghost
Gillette
Gucci Fragrances
HUGO BOSS Fragrances
Head & Shoulders
Herbal Essences
Ivory
Lacoste Fragrances
MACH3
Naomi Campbell
Natural Instincts
Nice 'n Easy
Nioxin
Olay
Old Spice
Oral-B
Pantene
Pert
Prestobarba/Blue
Puma
Rejoice
SK-II
Safeguard
Scope
Sebastian Professional
Secret
Tampax
Venus
Vidal Sassoon


2. Household care

Wella
Ace
Ariel
Bold
Bounce
Bounty
Cascade
Charmin
Cheer
Comet
Dash
Dawn
Downy
Dreft Laundry
Duracell
Era
Eukanuba
Febreze
Gain
Iams
Joy
Luvs
Mr. Clean
Pampers
Prilosec OTC
Puffs
Swiffer
Tide
Vicks





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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&G
Strengths:
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
Environment concern

Threats:
Competition
No new product innovation
Government regulation

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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

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
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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 Product
Strategy 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.

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 competitors 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 Pricing
Strategy 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.
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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
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 Place
Strategy change channels
Tactics
Set own distribution direct to stores
Change distribution for area
Increase number of warehouses for product.

Strategy improve services
Tactics
Set up national service network.

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8.4 Promotion
Strategy 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.

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.


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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.
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.












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11. Review and control
Company will have simple friendly decision weekly monthly quarterly and annual reports
focusing on
Revenues and unit sales
Expenses
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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Closed
Conclusion

Companys 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/