Strategic 8

A Marketing Plan for Procter and Gamble Company

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Introduction

Procter and Gamble Company famously known with the abbreviations P&G is an American corporation with its root in Ohio. This paper access P&G’s marketing plan given that it’s one of the biggest and largest corporations in the consumer goods industry. A marketing plan is a blueprint that comprises the overall marketing efforts of a company and ways that the marketing strategies of a particular company are to be implemented (Cohen, 2018). This paper is provides Procter and Gamble’s marketing plan.

Executive summary

P&G is a company that functions through several divisions. Some of these divisions include healthcare and home care (Duddy et al., 2018). The fact that P&G operates in more than 180 nations and more than seven billion people in the world use the company’s products makes it an international corporation.

Since this company has a competitive environment, it adopts a number of strategies that help it reach its goals. The company has also been devising new ways that have helped it cope with change as well as maximize its productivity

Situational analysis

This particular company has its roots in Cincinnati, Ohio in the US where it was founded 183 years ago. P&G has its main focus on both societal and environmental feasibility. To show its friendliness with the environment, it has been focusing on producing products that are less harmful to the environment.

Market summary

P&G has been operating in more than six continents including North and Latin America, Africa, India, Asia and Europe. Most of this company’s revenue is derived from North America where it makes up to 45% while the least of its revenue is from Africa. Much of the company’s revenues come from developed areas such as America and Europe.

The consumer goods industry comprises of many entities and this means that P&G has to face stiff competition. Some of P&G rivals include Colgate-Palmolive and Unilever which have taken over emerging markets. The economic environment has been friendly to this company.

SWOT analysis

Some of P&G’s strengths include having more than 300 brands globally and its well-trained staff that is good based on how it relates with customers. The company has also had a high profit margin. One of the main weaknesses that has been ragging this company behind is because it doesn’t practice e-commerce. The company has been losing on product choice because it mostly targets women.

There are several opportunities that this company can scheme into including venturing into male brands. Also, because the world has been changing, the company has the chance to adopt e-commerce. Competition is the main threat P&G is facing and this has been caused by the low prices offered by its rivals.

Competition

P&G operates through different products under different categories. In each of these segments, the company has been battling with various rivals. For instance, in the home care segment, the company sells products such as bounce and downy which makes a 33% of the net sales. Colgate-Palmolive, a major rival under the home care and fabric segment has been producing cleaning products.

In other segments such as the healthcare there has been stiff competition from Ecolab while in the grooming, Gillette a dominant player has made it hard for P&G to prevail. Price reductions and promotions are the most used forms of marketing strategies by P&G’s rivals.

Product offerings

There are several bench making products for this company including the most appealing male product; Gillette heated raze. Other ground-breaking products include the joy razors and the oral-B genius X.

The above-listed products have the best features and they bring in the most revenues. They are considered iconic because of their features (Procter and Gamble, 2020). These products are the best valued, because they can be services and that’s why they are priced.

Distribution

P&G is known for its distribution channel that is used for running all the operations. Distribution at this company comprises of three ways namely intensive, extensive and specialty. The company is guided by its mission and vision statements.

Distribution centers are used as modes of distribution in the US while tractor trailers are used to transport products (Haddad, 2017). Because it’s an international company, it ships its products using containers and boats.

Marketing strategy

Different marketing budgets are used by this company to draw a marketing strategy. Through the use of the 4Ps the company is able to achieve its objectives and goals (Hanssens et al., 2016). P&G uses market infiltration as the primary development method.

The company has market penetration has its central intensive growth strategy. By using market penetration, the company can easily upsurge its market share. Marketing campaigns are also used to escalate customer cognizance about the products offered (Kotler & Kotler, 2017). 

Objectives

The main objective of P&G are providing branded products which are of high quality and value. Also, these products should be able to improve the world lived by consumers forever.

Some other objectives for the company are doing what is right and using all present opportunities to change that what has existed (Procter and Gamble, 2020). The company tends to be a force that provides what’s good.

Target markets

The company has been used to target all genders, all ages and everyone in whole but as of now the targeting is based on demographic targeting where 350 smart customers are the target.

According to the company, this has turned out to be the case because as stated earlier it’s one way to reach the right audience (Procter and Gamble, 2020). Some of these targeted audience will include first-time mums and people who have just owned washing machines for the first time.

Positioning

Most of the products this company has been paying attention to so that they can yield it more revenue include Always and Olay products. This products are the most highly-produced and that’s why they were re-positioned.

Additionally, the presence of more than 300 brands has helped the company’s products stand out through targeting the right consumer with the finest message.

Strategies

Through integrating and jointly buttressing its strategies, P&G has built a strong and balanced growth as well as created value. The productivity strategy has helped in fueling investments.

Some other strategies include portfolio that includes the choice of brand, organization which is empowered and agile and superiority strategy that is based on winning with customers.

Marketing mix

Marketing mix includes the 4Ps which are used by this company to attain goals (Goi, 2019). Due to diversity of products in the global market, the marketing mix strategy must ensure such an issue is addressed.

Because consumer goods are highly vibrant, the marketing mix has to match global market challenges with opportunities (Bahadir et al., 2015). The purpose of the P&G’s products under the marketing mix is to ensure organizational output provided to consumers are identifiable.

Marketing research

This company evaluation is based on marketing research given that it operates through different segments (Piercy & Morgan, 2018). The recent marketing research is based on online market.

The company has been employing internet to research and this has helped it save time and money. The company relied mostly on surveys which were too much costly

Financials

In the year 2020, the net sales of this company were at $70,950 compared to those of 2019 which were $67,684. The operating income for the year 2020 was $15,706 while that of 2019 was $5,487.

Other financials include net earnings which were $13,103 in 2020 while in 2019 they were $3,966. Net earnings attributable to P&G in 2019 were $3,897 while those of 2020 were $13,027.

Controls and implementation

This company has been making movements on e-commerce and most of its sales have grown with about 10%. This control has helped the company not lose its customers especially in the 21st century. The company has already put its e-commerce into practice

Also, as a way of ensuring it preserves the environment, the company has make controls of not producing products that are likely to harm the environment. Also, this control of producing environmental-friendly products has been going on and the company is ready to implement it.

Marketing organization

The organizational structure at Procter & Gamble is a product-type divisional one. This type of marketing organization stimulates the company’s choices as well as internal commercial practices conducted by the company

This kind of structure is also grounded on the merchandise selection for this company. The management uses it because it addresses all corporate requirements based on structural occupations and the market geography of customer goods

References

Cohen, W. A. (2018). The marketing plan. John Wiley & Sons.