The Marketing Strategy of P&G

TheMarketingStrategyofP&GContentsIntroductionP&GinChinaP&GStrategicAnalysisPESTLEAnalysisChallengeIntroductionTimeofestablishment:1837Headquarters:CincinnatiOhio,USSalesincome:51.4billiondollarsAmountofprofit:6.48billiondollarsTypesofproduct:texture,furniturecare,hairandbeauty,infantcare,homenursing,healthcare,food,etc.Globaltechnologycenters:20Numberofpatents:over29,000P&GinChinaP&GenteredMainlandChinain1988byestablishingitsfirstjointventureinGuangzhou.BeijingChengduGuangzhouDongguanTianjinShanghaiNanpingP&GinChinaComparedwithotherbrandnameproducts,P&G'ssalesvolumehasrankedfirst.Itsindependentbrands,likeSafeguard,TideandGillette,arecurrentlyNo.1brandsinpersonalcleansing,powerdetergentandmalegroomingmarketinChina.P&GStrategicAnalysisBrandStrategyP&Gdividesitsmarketfromtheperspectivesoffunctionpriceandpacking,etc.bymakinguseofthevarietybrandsstrategysoastomeetthedemandsofconsumersfromdifferentlevelandimproveconsumerloyalty.TalentStrategyRecruitundergraduatestudentsOnlyInP&G:undergraduatecanearnRMB7000,graduateRMB8200anddoctorsRMB9700.PromotefromtheshopfloorThekeytosuccessofP&Gfor160yearsisthatallseniormanagersarepromotedfromthecompanyinsteadofbeingemployedoutsidesandthestandardofthepromotionismeasuredbythestaffs’abilitiesandcontributionsnomatterwheretheycomefrom.PESTLEAnalysisThePESTLEanalysiswillbeconductedtoexaminethecurrentexternalenvironmentforP&Gintheworldmarket.PoliticalWithoperationsinmorethanahundredcountriesofdifferentcontinents,P&Ghastodealwithdistinctivepoliticalpatternsinfluencingitsbusinessoperations.EconomicTheworldeconomyispresentingapatternofrejuvenationfromtherecessionandworlddemandisforecastedtogrowinthenextyears.However,thedevelopmentindifferentmarketmayvarybecauseunbalanceddevelopmentsituationindifferentregions.SocialThecompanyhastopayattentiondifferentsocialnormsduringoverseasoperationsduetodistinguishedculturalbackgroundindifferentmarkets.TechnologicalAsthemarketsizeofpersonalproductsisverylarge,majorplayersinthisindustryinvestsignificantlytogaintechnologicaladvantageinordertomaintainandexpandmarketpositions.LegalP&Ghastocomplywithdifferentnationallegislationsonpersonalproducts,processofproduction,andbusinessoperations.●EthicalBecausepersonalproductsareessentialforpeople’sdailylife,thequalityofproductsareextremelyimportantforbrands.Challenge●ThreatofNewEntrantsInthepersonalproductsindustry,leadingcompaniesincludingP&Garealreadyenjoyingeconomiesofscaleandeconomiesofscopeintermsoftheirsize,multiplebrands,anddiversityofproductlines.Furthermore,majorcompaniesinthisindustryhaveaccumulatedconsiderableexperienceintermsofproductdevelopment,distribution,andsupplychain.Forinstance,P&Ghasestablishedandoperatedformorethan170yearsandpossesses80yearsofinternationalmarketexperience.Therefore,leadingincumbentsinthisindustryhasoccupiedthefavourableplaceonlearningcurve,whichalongwithadvantagesofeconomiesofscaleerectsbarriersforpotentialentrants.Moreover,abigamountofinvestmentisessentialinthisindustrytoimplementproduction,distribution,R&D,andmarketing.Thus,threatsofnewentrantsarerelativelylimitedforthisindustry.However,itisnotpossibleformajorplayersinthisindustrytocovereverycorner,whichstillleaveopportunitiesforsmallentrantstoservicecustomers’particularneeds.Thisalsocanresultfromthemarket’semergingdemandwhichobservedandgraspedbysmallplayersortheyhavespecificinnovationstodevelopcertainproducts.●ThreatofSubstitutesEvenmajorplayerslikeP&GandUnileverhasbeendedicatingtobuildandreinforcetheirbrandrecognitionandloyalty,thisadvantagestillmightbeerodedbypricingpowerofsubstitutions.Forinstance,retailerssuchasTescoandWilkinsonintheUKmarket,theyoffertheirprivatelabelproductswithlowerpricesthanstrongbrandones,posingsignificantchallengesforleadingcompanies.Despitesufficientavailabilityofsubstitutions,customersonlyfaceslightuncertaintyandswitchingcostsinthisindustry.Allinall,highthreatsofsubstitutesexistinpersonalproductsindustry.Thankyou