Marketing Strategy at Procter and Gamble (GC0248)

Executive Summary

This paper has conducted a marketing audit and marketing plan for the famous detergent brand, called Procter and Gamble (P&G) ARIEL brand. For conducting the external business audit, this paper has applied the PESTLE tool. On the other hand, for conducting the internal business audit, it has applied a SWOT analysis tool. Then, this paper has critically evaluated P&G position in the market.

Then, this paper has analyzed the competitive edge (STP) and competitive performance. In the second part, this paper has developed marketing strategies for the P&G ARIEL brand. First, the targeting, market segmentation, and market positioning strategies have been developed. Then, the unique selling point (STP) of the P&G  ARIEL brand has been analyzed the marketing objectives have been defined. Finally, this paper has recommended the P&G ARIEL brand applying the marketing mix (4P’s) model.

Table of content

Executive Summary.

1.0 Introduction.

1.1 Company Overview.

1.3 Situational analysis.

1.3.1 PESTLE Analysis.

1.3.2 SWOT Analysis.

1.4 P&G position in the market

1.5  Competitive Edge (USP) of P&G.

1.6 Competitive performance of P&G.

1.6.1 Sales Growth.

1.6.2 Net Income Growth.

1.6.3 Gross profit

1.6.4 Net profit of P&G and its competitors.

2.1 Segmentation, Targeting & Positioning.

2.1.1 Segmentation.

2.1.2 Targeting for the P&G ARIEL brand.

2.1.3 Positioning for the P&G ARIEL brand.

2.1.4 STP Analysis of P&G’s ARIEL brand.

2.2 Marketing objectives for the P&G ARIEL brand.

2.3. Recommended marketing strategies.

Conclusion.

References.

1.0 Introduction

The aims of this paper are to conduct a marketing audit and marketing plan for a detergent company, named Procter and Gamble (P&G). This coursework focuses on two key parts. In the first part, it conducts a marketing audit for P&G. In this case, the external business environment is analyzed using the PESTLE analytical tool, where the SWOT analysis tool is used to analyze the internal business environment including strengths, weaknesses, opportunities, and threats. Then, this section explains the P&G position in the market and provides an evaluation of the P&G competitive edge (USP).

Finally, this section gives details of P&G’s effectiveness and competitive performance. In the second part, this coursework developed a marketing plan for P&G focusing on the finding come from the analysis in the first part. Firstly, this section selects market segments, market positioning, and marketing objectives for improving market share, sales volume and brand awareness. Then, this section addresses the marketing objectives by applying the marketing mix to P&G. Finally, this section provides suggestions focusing on marketing strategies and marketing tactics.

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1.1 Company Overview

Procter and Gamble (P&G) are one of the famous brands in the detergent industry. This company was established in 1837 by William Procter (a candle maker) and James Gamble (a soap maker). Although this company was established in America, it widely operating in the UK and many other countries. It is operating in five key market segments fabric and home care, health care, baby and family care, beauty and grooming, and pet food. It has been a big corporation now, which is operating in more than 180 countries. It has now more than 100 brands, which are being serviced by about 135,000 dedicated and devoted staff.

Its own brands gain about 90% of total sales and profit, where 26 of its leading brands gain about £.78 billion in a year. The key products of P&G which attract its customers are ARIEL detergent, Tide detergent, Always detergent, Pampers, Bounty, Crest, Downy, Gillette, Lams, Pantene, and Olay. Nowadays, it is getting popular in the food and beverage sector. Selling Pringles to Kellogg is now giving about £2.3 billion in 2015, which is been a key revenue driver of P&G (P&G, 2016).

 1.3 Situational analysis

1.3.1 PESTLE Analysis

The abbreviation of PESTLE is political, economic, social, technological, legal and environmental. This means this tool analyzes these issues of the business. This tool is widely used to analyze these external business environment factors (Kotler et al., 2014).

Diagram: PESTLE Analysis Tool                                    Source: Kotler et al. (2014)

This tool is very effective to analyze the forces of business which come from the external business environment. However, organizations cannot depend only on this tool because this tool only focuses on the external business environment, it does not focus on internal business factors (Palmer, 2014).

PEST Analysis of P&G

Political factors

P&G has been operating in more than 180 countries by developing several strategies to meet the requirements of international governments and political issues. However, the decision was taken by several governments and political instability in different countries impacts the business of P&G. However, it has huge opportunities to expand its strategies with political grounds in unstable countries like Africa to improve its market share.

Economical factors

P&G is facing a highly competitive market environment in both domestic and international markets including Asia, Europe, and the Middle East. The global economic volatility, tax and VAT increased in several countries, and monetary and fiscal policies developed by different countries impact the business performance of P&G. The recent coming out of the UK from the European Union is a significant impact on the P&G business in the UK and EU. However, the economic up-turn is bringing opportunities for P&G across the world.

Social factors

As the main target customer group of P&G are household people and key products are household products, fabric, and home care products. The dramatic changes in social structure and demographic structure, the income and expenditure level of people, education, and modern lifestyle significantly impact the strategies developed by P&G. Thus, P&G needs to change its strategies and tactics very frequently, which impact its business performance. However, people are nowadays more conscious about their health. Thus, they are focusing more on a healthy lifestyle than ever before, which is providing opportunities for P&G to gain improve revenue and profits……………..

 

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