P&Gs Marketing Strategy

By :
Insan Maulana
8215123463
Management Regular A

Economy Faculty, Building R State University Of Jakarta, Rawamangun Muka street,

Jakarta 13220

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 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 ....................................................................................................................12
8.1 Product ...........................................................................................................................12
8.2 Pricing .............................................................................................................................13
8.3 Place................................................................................................................................13
8.4 Promotion .......................................................................................................................14
9. Distribution Strategy..............................................................................................................15
10. Contingency plan .................................................................................................................16
11. Review and control ..............................................................................................................17
12. Observations ........................................................................................................................17
Closed ..............................................................................................................................................18
Conclusion .................................................................................................................................18
Bibliography ......................................................................................................................................19

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 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

Headquarters Cincinnati, Ohio, U.S.

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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 US$ 14.48 billion (2013)

income

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 Escada Fragrances Olay

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

2. Household care

Wella Dash Joy

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

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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 taxe

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.

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 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.

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

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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.

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://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/

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