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COMPANY ANALYSIS REP

MARKETING MANAGEMENT

SANDHIA HARANI
ZUHAIB KHOKHAR
SALMAN BHUGIO
DANISH JUNEJO

MARKETING MANAGEMENT
TABLE OF CONTENTS

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Topics
Introduction
Vision, mission & core values
Corporate social responsibility
Product line of P&G
Product strategy
Promotion strategy
Pricing strategy
Place strategy
Packaging
Competitive Analysis
Target market
Organizational culture
Business to business market
Supply chain management
SWOT & PEST analysis
Core competencies
BCG Matrix
Recommendations

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INTRODUCTION:
P&G was founded in 1837, by two men, WILLIAM PROCTER and JAMES GAMBLE. P&G is
global company that deals with consumer products in the category of pharmaceuticals, cleaning,
supplies, and personal care and pet supplies. P&G has 300 brand portfolios in more than 160
countries. It has itsheadquarter in downtown Cincinnati, Ohio, United States.

VISION:
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Be, and be recognized as best consumer products and services company in the world

MISSION:
We will provide branded products and services of superior quality and value that improve the
lives of the world's consumers. As a result, consumers will reward us with leadership sales,
profit, and value creation, allowing our people, our shareholders, and the communities in which
we live and work to prosper.

CORE VALUES:
PEOPLE:
We attract and recruit the finest people in the world. We build our organization from within,
promoting and rewarding people without regard to any difference unrelated to performance.

LEADERSHIP:
We are all leaders in our area of responsibility, with a deep commitment to deliver leadership
results. We focus our goals to achieve leadership objectives and strategies.

OWNERSHIP:
We accept personal accountability to meet the business needs, improve our systems, and help
others improve their effectiveness.

TRUST:
We are determined to be the best at doing what matters most. We have a compelling desire to
improve and to win in the marketplace.

PASSION FOR WINNING


P&G has been determined to be the best at doing what matters them most. It has a healthy
dissatisfaction with the status quo and it has a compelling desire to improve and to win in the
marketplace.

MARKETING MANAGEMENT
CORPORATE SOCIAL RESPONSIBILTY:
Shiksha (Education): Padhega India. Badhega India.
P&Gs flagship Corporate Social Responsibility Program Shiksha is an integral part of our global
philanthropy program - Live, Learn & Thrive. Now in its 8th year, Shiksha has till date helped
280,000 underprivileged children access their right to education. The program has built &
supported over 140 schools across India, in partnership with NGOs like Round Table India
(RTI), Save the Children (STC), Army Wives Welfare Association (AWWA) and Navy Wives
Welfare Association (NWWA), amongst others.
Since its inception, Shiksha has made a cumulative donation of over Rs. 22 crores towards
helping children on the path to better education.

Disaster Relief
India has braved several natural disasters in the recent past, such as the Tsunami in South India,
floods in Bihar or earthquakes in J&K and Gujarat. P&G has stepped forward in each of these
calamities and helped communities get back on their feet. Most recently we helped rebuild the
Army School in Ladakh, located in one of the most challenging Himalayan Terrains, which was
wrecked by the Flash Floods in 2010.

Procter & Gambles My Black is Beautiful Continues to Imagine Beautiful


Futures at the 2015 BLACK GIRLS ROCK! Awards on BET Networks:
My Black is Beautiful and P&G Brands - COVERGIRL, Pantene and Olay - share powerful
commitment to help Black girls be their best selves.
P&Gs My Black is Beautiful (MBIB) continues to inspire Black girls to be their best selves.
MBIB maintains its momentum towards its goal of reaching and teaching one million girls and
young women to believe their Black is beautiful as part of its Imagine A Future (IAF) program.
Together, with P&G brands, COVERGIRL, Pantene and Olay, and retail partner Target, MBIB
will celebrate girls who are making a positive difference, and will invite the community to

MARKETING MANAGEMENT
change the beauty conversation by joining the IAF movement during the 2015 BLACK GIRLS
ROCK! Awards on Sunday, April 5 on BET Networks.

PRODUCT LINE OF P&G:


1.

Beauty and Grooming Brands


Olay, Sk-2, Venus, Pantene, Ella, Head n shoulder, Rejoice, Dolce n gabbana make up,
Safeguard,

2.

Hugo boss,braun

Health and wellbeing brands


Eukanuba, Always, Pringles, Vicks, Oral-b, Lams, Tampax, Crest, Prilosec otc,
Nuturella, Whisper, Ausonia

3.

Household care brands


Tide, Bold, Dawn, Dash, Charmin, Downy, Febreze, Pamper, Duracell, Mr. clean, Ace,
Ariel

HUGE MARKET SHARE PRODUCTS:


P&G is the largest producer of revenue with the help of household and personal products that its
products reach almost to 4 billion of people and that products are: Tide detergent, Pampers and
Gillette razors that create over $1 billion revenue annually.

PRODUCTS STRATEGY:
P&G has provided many brands to make life better for the words consumers.
Constantly they are making innovations and adding value to the products. Product strategy is
based on following:

Product classification:

MARKETING MANAGEMENT
P&G classified their product according to the nature and usage of product and
buying buyer for clearly defining their target market, on the other hand many of the P&Gs
product have been classified into convenience good, shopping goods as well

Product differentiation: (form, features, performance, reliability)


P&G has distinguished its product through innovative feature, high performance

and reliability.

Attractive packaging:
You would found a unique fragrance in different P&Gs product along with that

attractive packaging also one of its product feature, not only that P&G always keep changing
their products packaging in order to attract many consumers.

PROMOTIONS STRATEGY:
They promote their brands through following:

Media

Radio

Newspaper

P&G spend its 30-35% of its sales in advertisements and promotions which is highest in

the industry.

PRICING STRATEGY:
Understand how company finds a set of prices that maximizes the profit from the
total product mix.
Learn how companies adjust their prices to take into account different types of customers and
situations.

MARKETING MANAGEMENT
The following strategies were adopted by P&G:

1.

Optional-features pricing strategy:


It offers the optional features and services along with main product. This strategy is mostly

notable in the marketing of cell phones & computer printer that often have a very low initial
entry price, while the cost of accessories like AC adaptors and printer ink cartridges is
substantial.

2.

Product line pricing:


Companies normally make the different products to extend their product line and

develop different prices.


Effective product line pricing by a business will usually involve putting sufficient price gaps
between categories to inform prospective buyers of quality differentials. Also called price lining.

3.

Cost-plus pricing:
Cost-plus pricing is a straight-forward and effective strategy because it ensures that all

costs are covered before profits are calculated. Setting the right price is a big part of the
marketing of any product or service. The exact strategy used depends on your company's
marketing and profit objectives. Cost-plus pricing is useful when the production costs of a
product, or the costs of providing a service, are not clear in advance.

4.

Competitive pricing:
Setting the price of a product or service based on what the competition is charging.

Competitive pricing is used more often by businesses selling similar products, since services can
vary from business to business while the attributes of a product remain similar.

5.

Distribution pricing:
Most manufacturing companies have connections with wholesale distributors to see

their products and commodities. Now, when a manufacturing company is dealing with a

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distributor, the prices have to be set and this price would be present in their dealings from that
time onwards.

PLACE STRATEGY:

In store placement strategy

Increase in wholesale dealers in small towns so that they can reach nearby villages

Rural penetration

Already existing in urban areas

PACKAGING:
For high income group they go for expensive packaging to cater elite class. For middle
income group they go for little budget for packaging because the products price is not too high
and not too low. For low income group there will be low budget allocated because the products
price is low.

COMPETITIVE ANALYSIS:
The major competitor of P&G is Unilever.The other competitors are Johnson &
Johnson and Kimberly-Clark Corporation.Loreal is the competitor of P&G in beauty products.

TARGET MARKET:
The target market of P&G is upper class, middle class and lower class. They advertise their
products according to the target market for the particular product.
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.
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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.

Organization culture
P&Gs unique culture is a mixture of its Purpose, Values and its Principals.
Throughout history of P&G of over 170 years (80 in the UK), the business has grown and
changed while these elements have endured, and will continue to be passed down to generations
of P&G.
The Purpose unifies P&G in common cause and the growth strategy of improving
more consumers lives in a small but meaningful ways every day, for which they arrange
different events like seminars, trainings, workshops, etc, and inspires P&G people to make
positive contribution as well. The Values are what reflect the behaviors that shape the tone of
how P&G works with its employees and also with its partners. Finally the principals articulate
P&Gs unique approach to conduct work.
The culture in addition is also designed to be flexible. Members of P&G work as
groups and teams, and are told that they work to live, not live to work, and relaxes with time and
if they want to work from home. In addition employees are also forced to follow the dress code
as in order to maintain and promote the culture (dress codes are not for every 1, they are only for
people who have need of dress code in his job).

BUSINESS TO BUSINESS MARKET:8

MARKETING MANAGEMENT
P&G wants to be business partners of choice as they believe more value can be
created in effective collaboration with the right partners than they could achieve alone. In efforts
to foster effective collaborations, they seek to understand how needs and capabilities can be
aligned with their partners to build business altogether.
P&G is interested in talking to any company that offers innovation and delivers
greater value for consumers and retail partners, achieves great cost efficiencies, facilitates
environmental and sustainability goals or helps to reach and serve more of the worlds
consumers.

SUPPLY CHAIN MANAGEMENT OF P&G:


Proctor and Gamble previously used Supply chain mastery to pare out strong,
long-term competitive advantage. The companys strategic focus towards supply chain based
service modernization transformed both the consumer products and retail industries. The method
required direct distribution to major accounts. This channel made P&G to gain high degree of
customer confidence. Simultaneously, P&G quietly moved to end its direct relationships with
many smaller accounts, setting up a set of master distributors to service them. In turn the
distributors grew enough volume to sustain direct value-added relationships with P&G.
P&G has focused on the business strategy of business partners diversity since the
mid-1970s when they invested with diverse suppliers and not only strengthen our innovation and
go-to-market capabilities, but also touch and improve lives of the women and men who work in
these companies, and to their families, and communities they live in through them. Finally on
December 2, 2013, P&G was honored to receive the distinguishing supplier diversity award from
the U.S. Department of Commerces Minority Business Development Agency (MBDA).

SWOT ANALYSIS OF P&G:


STRENGTHS:

Heavy and impressive promotional plan for safeguard.

MARKETING MANAGEMENT

P&G is dedicated to understanding its consumers, spending $350m annually on market

research.
Invests heavily in R&D for product innovation.
Its core business is in Home Care and Fabric Care which constitutes 32% of Net Sales
and 26% of Net Earnings (P&G, 2012) e.g. Febreeze, Tide, and Duracell. These products

are non-cyclical consumer goods; the price elasticity of demand is consistently high.
Leading market position.
Strong brand portfolio.
Strong corporate social responsibility
The acquisitions of leading of beauty and health care companies in the products in
Europe.

WEAKNESSES:

Declining expenditure on innovation, one of P&Gs core competencies.


Health and beauty products produced by P&G mainly focused and geared towards the

female audience.
Less BTL (below the line) advertisement.
Less focus on social media marketing
Depending on wal-mart stores for majority of its revenue. It seems that P&G depends too
much on the Wal-Mart in terms of sales revenue and distribution channel. Since 2006,
around 15% of P&Gs revenue derived from Wal-Mart and its affiliates (Data monitor,
2010). Hence, any declines of Wal-Marts revenue or market share will inevitable trigger
loss for P&G. Furthermore, over dependence could lead to loss of bargain power against
the Wal-Mart. Peng (2009) doubt that the purpose of acquisition of Gillette by P&G in

2005 was enhancing its size to gain bargain power over the Wal-Mart.
stores are not situated in the center of the town but out of it.

OPPORTUNITIES:

Tap to Rural market


Merger and acquisition
Bring health and beauty products foe male audience
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Capitalizing on online media

THREATS:

The fast moving consumer good market today


Increasing availability of generics store brands of consumer products, making it harder

for P&Gs brands to compete.


Rising commodity prices and costs of production.
Key competitors expanding their product portfolios through acquisitions.
Many cheaper substitutes available in the market available for P & G products.

PEST analysis:
POLITICAL:
As P&G running its operations in different countries so it must take care of
political scenario of each country, P&G has to deal with distinctive political patterns influencing
its business operations, It has to manage different political pressure and along with that P&G has
it conduct its business in different countries under boundaries of different policies.
Changes in both foreign and local political activities have significant effect on
companies and group businesses. P&G has developed different strategies over the years which it
uses to survive in different political environments and issues.
The nationalization of foreign companies by most countries in 1960s affected P&G as
it market shares where reduced in the affected areas. This means that companies were subject to
local control on import, export, price and employment conditions. P&G uses it goodwill and
experience to bargain with the government in many countries to modify their policies and
regulations. Till date, P&G is a member of many organizations worldwide and has expanded its
political ground using it experience and tactical strategy. It aim is to develop a favorable business
community and enhance corporate reputation management. P&G also uses advertisement
campaign to raise awareness of national or issues, gain public support and sustain favorable
political-legal environments.
ECONOMIC:
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MARKETING MANAGEMENT
P&Gs market environment is highly competitive globally and locally especially in
Asia and Europe. It competes with other brands, and Unilever is one of the main competitors in
the Europe. The European free trade policy has major effect on P&G market share as cheaper
brands are emerging in European countries. Consumers have wide varieties of products to choose
from and will choose based on product quality, brand strength, price and eco-friendly product.
This is a moderate treat to P&G because of its brand equity in its products
The recent economic recession has changed the spending pattern of consumers,
making consumers reluctant in purchase expensive products. This is putting a lot of pressure for
on Fast Moving Consumer Goods (FMCG) produces to cut the prices of products.

SOCIAL CULTURE SEGMENT:


The main target group of most personal, household product and consumer goods manufacturing
company

ies are women. A lot of P&Gs hygiene, beauty, skin, and hair care products are focused mainly
on women. Products like beverages, pets and human food, detergent and home cleaning products
are addressed to women as the decision influencers. P&G has been using sponsored programs
attract the attention of its target audience. It is also using marketing and advertisement to
establish brand loyalty and persuading customers to purchase their products over other brands. In
2010, P&G spent $9.3 billion on marketing $1 billion more than Unilever its closest competitor
(Wikiinvest, 2011).
P&G is focused on embracing different cultures, languages and ethnicity which results in high
market share and increase demand in developing countries.

TECHNOLGY:

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P&G has continued to develop since 1920s. It uses new technologies to invent
new products, increase production and improve the quality of product. This has led to the
continuous increase in market shares since 1950s. P&G set a record of spending spent $2 billion
dollars on research and development in two consecutive years (Dan, 2011). P&G is trying to
minimize cost to the use of efficient technology. Continuous investment in technological research
and development is a very important factor of the macro environment as important and market
leading discoveries are made during this process.
CORE COMPETENCY:
Acquisition is one of the factors that give P&Gs more market share and high
competitive advantage. Over the years, P&G has acquired different companies and has turn
acquisition into core competencies. P&Gs first acquisition was in 1930 when it acquired
Thomas Hedley Co an England Based company. This first acquisition made P&G become an
international corporation and helped it maintain a strong connection in England. It introduces
several new brand names and products like Tide detergent in 1946 and Prell Shampoo in 1946.
P&G acquired another company Charmin paper mill in 1957 and started marking products paper
products like toilet rolls (Charming). It has acquired numerous companies like Norwich Eaton
Pharmaceuticals, Richardson-Vicks, Folgers Coffee, Shultons Old Spice and Lams.
Research and development is also one of P&G core competencies. It has invested a lot in this are
for decades. This has led to the development of superior quality products. Pampers the first
popular disposable diaper amongst many others.
As a result in investment in R&D, P&G remains the number one leader in consumer goods
products.

BCG MATRIX:
STARS:
Gillete, Pantene, Head & Shoulders, Pamper & Whisper
These products for P&G are cash generators and cash users and company is
investing money on this product to turn them into cash cows for generating positive cash flows.
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Strategic choices are vertical and horizontal integration, market penetration,
product development and market development.

QUESTION MARK:
OLAY
P&G consuming heavy cash on that product but are bringing little return However, since
these business units are growing rapidly, they do have the potential to turn into stars. Companies
are advised to invest in question marks if the product has potential for growth, or to sell if it does
not.

CASH COWS:
Ariel, Tide, Vicks, Oral-B
Since these four bands are most profitable brands, P&G generate enough cash
from these products and that cash is invested by P&G into stars to support their future growth
The strategic choice here is product development and diversification

DOGS:
Ambi-pure:
For P&G AMBI-PUR have low market share product as compared to competitors, for P&G
this product is not worth investing because they generate negative cash flows.
In this scenario for P&G strategic choice is Retrenchment, in order to be financial stable p&g has
to reduce its expenditure on this product and discontinue of selling this product.

RECOMMENDATION:
As the worlds largest personal product producer, P&G should geared
towards man category product, in order to cater that market P&G need to use its core
competency of research and development, even though it has to make more efficient its R&D.

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On the other hand, P&G should pay enough attention to cope with
external environmentThe company devoted outstanding investment and effort to obtain
consumer understanding. This is also one of the companys core strengths. It already performed
much better than competitors but continuous searching for more efficient and appropriate
consumer interaction methods should be stock to as well. Facing the new development pattern in
the world market, the BCGs growth matrix might be helpful for P&G to manage products and
regional markets. For instance, the company should identify cash cow markets (might be
Europe and the US) to support further development in rising star (might be China and India).
Similarly, in terms of products, dog brands should be abandoned while cash cow brands
supporting rising star brands.
As P&G is dealing with personal care products, so it should more focus
on Below the line promotion technique so that consumer make their preferences even more
stronger.
Last but not the least P&G should also focus on most pervasive medium of
advertisement named social media

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