Procter Gamble P And G Marketing Essay

Procter Gamble P And G Marketing evidenceProcter and Gamble (PG) was formed by William Procter a candle maker and crowd Gamble a soap marker on the 31st of October 1837. It is an American multination consumer good manufacture and one of the largest in the world. It has its headquarters in Cincinnati, Ohio the States and manufactures products ranging from beauty and grooming, pet food and household and fabric c ar, baby and family base of operations c be products.Between 1858 and 1859, PG had astir(predicate) 80 staffs and their gross sales reached $1million. It won several(prenominal)(prenominal) contacts from the Union Army during the American Civil War to supply candles and soap. isolated from the profit it made during the civil war, it expanded it foodstuff by introducing host ad hominems entirely all over the country to PG products.Operation and brandsIn recent years, PG and fix an international flowerpot be acquiring divers(prenominal) companies.PG became an inter national corporation in 1930 after the acquisition of Thomas Hedley Co based in England.It introduces several new brand names and products the like Tide detersive in 1946, Prell Shampoo in 1946 and the first tooth paste to contain fluoride brand Crest in 1955. PG purchased Charmin news report mill in 1957 and started marking products paper products like toilet rolls (Charming).Procter and Gamble operates in about 80 countries and is wellheadspring known in about 180 countries. It has 50 brands which most of them atomic number 18 well-known products. These brands amounts more than 90% of PGs sales and profit. 26 of its leadership brands produces more than a $1billon each in net annual sales. (PG, 2012).Some of PGs strongest brands includes Always, Ariel detergent, Bounty, Charmin, Crest, Downy, Gillete, Lams, Olay, Pampers, Pantene, and Tide. It employ to produce food and beverage products prior to the sales of Pringles to Kellogg Company for $2.7 one million million million in 2012. Pringles was one of PGs major r eveningue driver with a sales of about $1.5 billion yearly. It was the only food note after the sales of Jif peanut butter and Folgers coffee to Smuckers in recent years. PG is no lifelong in the food business, it is laying more focus on personal disquiet and beauty products. (Reuters, 2012)Manufacturing OperationPG manufacturing operation spread around 5 divers(prenominal) regions. (PG, 2012)RegionsDetailsRegional HeadquarterCountriesAsiaThe world faster growing delivery and home to over 3 billion customersSingaporeChina, Japan, Korea, Hong Kong, India, Australia, New Zealand, Indonesia, Philippines, Singapore, Taiwan, Vietnam, Thailand, Sri Lanka, Malaysia, Bangladesh telephone exchange Eastern Europe, Middle East And Africa (CEEMEA).PGs largest Geographic regions.Geneva, SwitzerlandThe Balkans, of import Europe North, Central Europe South, Eastern Europe, Middle East, Sub Sahara, Turkey/Caucasia And Central Asiatic Republic.Latin AmericaWith presence dated back to 60 years. bluejacket City14 CountriesNorth AmericaCincinnati, Ohio, USAOver 25 manufacturing plantsWestern EuropeWith presence dated back to 1930. PG has presence in ever western European country.Geneva, Switzerland4 Countries.United Kingdom, Belgium, Ger galore(postnominal) and ItalyProcter Gamble record a sales of $83.68 billion in 2012 and was listed on the spot of globular Top Companies for leaders in Fortune Magazine. It is also at 5th place of the Worlds almost Admired Companies list and named the overall dress hat smart set for leadership railment on the list of the 2012s 40 Best Companies for leaders by Chief Executive Magazine. It has also received several awards which includes the Worlds Most Admired Companies and Top MBA Employers from Fortune, Worlds Most Respected Companies from Barrons, Best Place to puzzle out from Glassdoor.com, and The Worlds Most Attractive Employers from Universum. (PG, 2013).Case Study Overview.In recen t Years, PG has been us The environment is everything happening in the world outside that in that location are numerous factors that affects the decisions of managers of a telephoner. Examples of macro environments are new laws and government policies, parcel out barriers, tax changes, friendly changes.To help examine these factors, I would be utilise the most popular out-of-door environment analysing model known as PESTEL which stand for political, economic, socio-cultural, technological, legal and ecological environment (thus the acronym PESTEL).This occupationwork provide focus on the macro (external) and micro (internal) environments that have major impacts on Procter and Gamble. A PESTEL analytic thinking on PG leave alone be done to the macro environment.Analyse the macro business environment in respect of PG group and identify the factors that will have significant impact on Groups business.The conquest of any company does not reply only on the efficiency and manage ment methods of the company. There are other factors involved the market performance. The macro environment contains the external and uncontainable influence that might affect the market performance, strategies and decision reservation of the company.As Baines (2011) describe The operating environment for all organisations is never static and rarely entirely predictable, and can therefore profoundly affect a companys course of action.Strategic management experts stated that for a company to fulfill a competitive advantage, its needs to follow strategies that develops existing capabilities, resources and formulate strategies that develops extra capabilities, resources. (Hill Jones, 2010) seal AnalysisAll combined the macro environment factors analysis will be known as PESTEL. Macro environment factors are beyond the control of an organization. This is because those factors are positioned outside the organisational system. Those forces are the prime factors in incorporated strat egization i.e. determining the objectives of an organisation, its drive for profits, its projection for future sales as well as a treasureion step in preventing any losses or problems. According to Lowe and Marriott (2006,p. 181),macro factors are the major trendsStrengthsVerities of business segments (6 operating segments). hotshot of PGs major strength is the large scale on which it operates. It produces over ccc different product and leading globally in different categories of products like beauty and health, fabric, baby, personal and home care products sold in about 180 counties in the world.PG strong brand man is one of the most successful due to its solid branding.Most of PGs products are not for all seasonsLeading globally in detergent, diapers, care products.Has industry view of over 170-year, international operations for over 25 years and extensive experience in personal and oral hygiene products.PG is one of the world best marketers has it has a wide experience in mar keting in different market sectors.The acquisitions of leading of beauty and health care companies in the products in Europe.High gross profit margin. PGs profit margin is 15 multiplication the industry average.P G is known for investing greatly in research and development for improving and developing new products.WeaknessesAbility to achieve business objectives dependent on how well can respond to topical anaesthetic and global competitorsFace risks with significant international operationsA hardship of a key information technology system, process or topical anaestheticise could have a material adverse impact on our businessPrice paid for commodities and other materials subject to fluctuation 7 outturn costProduction capacity for the demand on the first years.Leads multiplication for alternative pack sizes and designs.Work capacity.Different culture, wants and needs of customers.Unable to protect imitation PGs innovative products and marketing strategies of competitionCompetit ors had pre-empted them in national markets where the local subsidiary was constrained by budget or organizational limitations. many another(prenominal) of the top brands of P G are losing their market share rapidly. In online media leadership and presence P G is lagging behind. The beauty and health products by P G are mostly for women. P G does not make and offer any private mark products for the retail customers and is, missing an opportunity. The large scale operation of the company makes the culture dangerous and processes slow. This also leads to quality control problems. P G does not leach its weak or poor brands. The major customers of P G are located at some of the places and it concentrates heavily as them. When P G acquired Clairol business in year 2001, it was unable to grow this business. The Clairol Herbal centerfield brand failed to enter new markets as the market had access to wagerer and innovative products. This shows weakness of P G in the beauty car e division.Opportunities Research and development efforts ($2001 million spent on RD in 2011) to develop technology and obtain patents Worldwide reach and potential to expand into even more countriesThe increase of the shampoo and conditioner market.The increase of hair washing products.The rudimentary conditioner market in Europe.The experience and the leader positioning of the new companies that PG bought.The Know-how of the success of Pert Plus in the US market An opportunity for P G is health and beauty products for men. With the acquisition of Gillette, the company now has several growth opportunities in this market segment. P G has doubled its environmental Goals for the year 2012 and thus, promises more value for the environment concerned customers today. Using the online social networks and internet marketing techniques is also an opportunity for P G. Divest brands that are not in accordance or do not oppose P Gs long-term goals Company is constantly trying to pursue growth overseas.Threats A material change in consumer demand for products could have a significant impact on business Business is subject to legislation, regulation, and enforcement in the U.S. and abroadThe number of suppliers and brands, the European market was even more crowed as US.The top and bottom price classes was even bigger than the US.Difference amidst prices for the same quality.Many important competitors. There is a cut throat competition in the fast moving consumers goods markets today. Companies like Kimberly Clark, Unilever, Johnsons Johnsons and Colgate-Palmolive etc pose a serious threat to itsmarket share in different countries. The competitors are making their product portfolios diverse day b day and using different marketing and promotional strategies to increase their market share. In the market many substitutes are available for P G products at cheaper prices. The private label growth is also a serious threat to the P Gs market share. Due to recession, the consumer spending has decreased globally. Also, the prices for raw materials are increasing so cost to the company is increasinghttp//www.reuters.com/article/2012/02/15/us-kellogg-pringles-idUSTRE81E0S620120215