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UNIVERSITY OF CENTRAL PUNJAB

FALL 2024

Course Title: Marketing Management Course Code:


BAMK3113

Assignment No. 3

Course Instructor: Ibrar Mansoor

Section: I Program: BBA Date:

Submission Date: Maximum Marks: 10

TO BE FILLED IN BY THE STUDENT


Student Name: Muhammad Saad Registration No: L1F19bbam0158 Sr. No: 01

Outline:
 Company vision and mission
 Production process
 Marketing plan
Introduction: Proctor and Gamble
The Procter & Gamble Company (P&G) is an American multinational
consumer goods corporation headquartered in Cincinnati, Ohio, founded in
1837 by William Procter and James Gamble. It specializes in a wide range of
personal health, consumer health, personal care and hygiene products. These
products are organized into several segments including beauty, grooming,
health care, fabric and home care, and baby, feminine, and family care.
Respectively, its product portfolio also included food, snacks, beverages, and
batteries.

Vision Statement:
Be, and be recognized as, the best consumer products and services company in
the world.

Mission statement:
Procter & Gamble's will provide branded products and services of superior
quality and value that improve the lives of the world’s consumers, now and for
generations to come

Product Development Process:


Procter & Gamble (P&G) has a well-established Product Development
Process that ensures its products meet market needs, drive consumer loyalty,
and align with the company’s branding and innovation goals. The process
follows several stages that bridge market insights with product success, starting
from concept ideation to market launch and continuous evaluation.

Here’s an overview of the P&G Product Development Process

Market and Consumer Research:


 Understanding Consumer Needs: P&G prioritizes understanding
consumer needs and desires through extensive market research. This can
involve both quantitative (surveys, data analysis) and qualitative (focus
groups, in-depth interviews) research methods. The goal is to discover gaps
in the market and identify areas where the brand can add value.
 Trend Analysis: They also track trends and shifts in consumer behaviour,
ensuring products align with evolving lifestyles, values (e.g., sustainability,
health), and technological advancements.
Idea Generation and Screening:
 Brainstorming Ideas: Based on the research, P&G’s marketing teams,
along with R&D and product design, brainstorm new product ideas or
improvements to existing products. These ideas can come from internal
innovations, external collaborations (e.g., partnerships with tech start-ups or
universities), and crowdsourcing.
 Screening Ideas: Once ideas are gathered, they undergo a screening
process to evaluate feasibility, potential market size, alignment with P&G’s
brand strategy, and consumer appeal. This phase helps narrow down the
ideas to those that align with P&G’s long-term objectives and brand identity.
Concept Development and Testing:
 Refining the Product Concept: Selected ideas are developed into detailed
product concepts. This includes defining the target consumer segments,
potential benefits, unique selling propositions (USPs), and the brand’s
positioning strategy.
 Consumer Testing: P&G involves consumers early in the process through
concept testing. This allows them to assess potential demand, test messaging,
and refine the product or service based on real feedback.
Product Development and Marketing Strategy
Formulation
 Developing the Product: Once a concept is validated, the product
moves into development, where R&D teams create prototypes, test formulas,
and finalize the product’s features.
 Marketing Strategy Development: Simultaneously, P&G's marketing
team develops a detailed marketing strategy that includes:
 Positioning: Determining how the product will be positioned in the market
to resonate with the target audience.
 Branding: Defining how the product fits within the P&G brand portfolio,
ensuring it aligns with the brand’s core values.
 Pricing Strategy: P&G sets competitive pricing based on market
research, production costs, and the perceived value of the product to the
consumer.
 Communication Plan: Creating advertising, promotion, and social
media campaigns that convey the product’s unique value.
Business Analysis
 Financial Feasibility: P&G assesses the potential profitability of the
product. This involves estimating sales forecasts, setting pricing strategies,
and evaluating costs related to production, distribution, and promotion. The
product must meet P&G’s financial goals and expected return on investment
 Market Testing: In some cases, P&G conducts test marketing where the
product is introduced in select markets or regions to measure consumer
response, understand market conditions, and validate pricing and
promotional strategies.
Full-Scale Production and Launch:
 Manufacturing: Once the product is fully developed and tested, the
product moves to large-scale production. P&G ensures that manufacturing
processes can handle high demand while maintaining quality and cost-
efficiency.
 Launch Strategy: P&G carefully plans the product launch to maximize
impact. This involves:
 Retail Partnership: Ensuring distribution channels are ready to stock the
product across multiple platforms (brick-and-mortar, e-commerce).
 Promotion: Deploying media campaigns, influencer marketing, and retail
promotions to create buzz and awareness.
 PR: Building relationships with the media and influencers to generate
excitement and interest among target audiences.

Post-Launch Monitoring and Evaluation:


 Sales Performance: After the product is launched, P&G closely monitors
its performance in the market, analysing sales data, consumer feedback, and
brand perception. This allows them to assess whether the product meets its
targets and expectations.
 Continuous Improvement: Based on post-launch feedback, P&G
continually optimizes the product. This could mean improving the product
formulation, adjusting pricing, tweaking marketing campaigns, or enhancing
the overall customer experience.
 Brand Health Tracking: P&G also tracks how the product affects
the overall health of the brand, ensuring that it strengthens brand equity.
Sustainability and Social Impact:
 Sustainable Practices: P&G places strong emphasis on sustainability
throughout the product development process, aligning products with eco-
friendly initiatives like reducing packaging waste, using biodegradable
ingredients, and supporting social responsibility campaigns.
 Consumer Education: Marketing teams educate consumers about the
environmental benefits of the new product and how it aligns with P&G’s
commitment to sustainability, enhancing the product’s appeal in today’s eco-
conscious market.
Key Takeaways in Marketing Management:
 Consumer-Centric Approach: P&G’s product development is driven
by deep consumer understanding and a commitment to delivering value.
 Innovation and Testing: Continuous innovation and rigorous testing
ensure that new products meet or exceed expectations before full-scale
production.
 Strategic Marketing: The marketing strategy is integrated into every step,
ensuring that the product resonates with the target audience and contributes
to P&G's long-term brand objectives.
 Sustainability and Corporate Responsibility: P&G integrates
sustainability into its product development process to meet the growing
demand for eco-friendly and socially responsible products.
Through this disciplined yet flexible process, P&G consistently launches
successful products that drive both consumer satisfaction and long-term
business growth.

Marketing Plan Overview


Procter & Gamble (P&G) is known for its strategic, consumer-centric approach
to marketing. Their Marketing Plan Overview integrates extensive market
research, innovation, and sustainable practices with clear, actionable goals. The
marketing plans focus on creating strong brand equity, understanding consumer
needs, and delivering high-quality products that meet these needs. Here’s an
overview of P&G's marketing plan:
1. Defining Target Markets and Segmentation
 Consumer Segmentation: P&G segments its target audience based on
demographics, psychographics, geographic, and behavioural factors. This
allows them to develop tailored marketing messages and product offerings
for each segment.

o Demographics: Age, gender, income, family size, etc.


o Psychographics: Lifestyle, values, and buying motivations.
o Behavioural: Purchase behaviour, usage rate, and brand loyalty.

 Targeting Strategy: Based on market segmentation, P&G chooses specific


target markets to focus its marketing efforts on. They employ a mix of mass
marketing (for high-reach products like Tide, Pampers) and niche marketing
(for premium or specialized products like Olay) to cater to different
consumer needs.

3. Setting Marketing Objectives


 Brand Awareness and Equity: P&G’s primary objective is to maintain and
strengthen its brand equity across its diverse portfolio of products. They aim
for strong consumer recall and brand loyalty, leveraging trusted global
brands like Pampers, Tide, and Gillette.
 Sales Growth: P&G sets clear, measurable objectives for sales performance,
targeting both market penetration in existing markets and expansion into new
geographic regions, especially emerging markets.
 Sustainability Goals: P&G has integrated sustainability objectives into its
marketing plans, aiming to reduce its carbon footprint, increase the use of
recycled materials, and create environmentally friendly products.
 Customer Satisfaction: P&G prioritizes consumer satisfaction by delivering
high-quality, reliable, and effective products that meet their needs.

4. Marketing Strategy
 Product Strategy: P&G is committed to innovation and
continuously improving existing products. The product strategy
includes:
o Product Development: P&G invests heavily in R&D to improve
existing products and develop new ones based on consumer
feedback.
o Brand Portfolio: P&G manages a diverse portfolio of brands
across different categories (beauty, health, home care, baby care,
etc.), each with a distinct value proposition.
o Quality and Performance: Consistent focus on high-quality,
effective, and safe products.

 Pricing Strategy: P&G employs a value-based pricing strategy, where the


price is determined based on the perceived value of the product to the
consumer. They also adjust pricing based on factors like:

o Market Positioning: Premium pricing for high-end products (like


Olay) and competitive pricing for mass-market products (like
Tide).
o Promotions and Discounts: P&G uses occasional discounting,
coupons, and loyalty programs to drive short-term sales while
maintaining long-term brand value.
o Price Skimming or Penetration: For new products, they may use
penetration pricing to attract initial customers and gain market
share, followed by adjustments based on market conditions.

 Distribution Strategy (Place): P&G has a robust distribution network that


ensures its products are available across the globe. Their strategy includes:

o Multi-Channel Distribution: P&G products are available through


retailers, supermarkets, e-commerce platforms, and direct-to-
consumer channels.
o Global Reach: P&G ensures its products are accessible in both
developed and emerging markets.
o Partnerships with Retailers: Strategic partnerships with major
retailers like Walmart and Target help P&G ensure widespread
availability of their products.

 Promotion Strategy: P&G employs a comprehensive promotion strategy to


build awareness and encourage consumer engagement. This includes:
o Advertising: P&G utilizes various media channels, including
television, digital advertising, social media, and print media, to
reach diverse consumer segments. Campaigns often focus on
emotional connections and brand values.
o Social Media and Digital Marketing: With increasing reliance on
digital platforms, P&G runs campaigns on social media (Facebook,
Instagram, Twitter) and invests in online ads and influencer
marketing to target younger, tech-savvy consumers.
o In-store Promotions: P&G runs in-store displays, discounts, and
bundling offers to boost sales at retail locations.
o Public Relations: P&G also employs PR strategies, including
sponsorships, partnerships, and CSR (Corporate Social
Responsibility) initiatives, to enhance their brand image and build
goodwill.

5. Budget and Resource Allocation


 Marketing Budgeting: P&G allocates substantial budgets to their marketing
activities across different product categories. They continually assess the
ROI of their campaigns to ensure optimal resource allocation.
 Investment in Innovation: A significant portion of the budget is directed
toward research and development to foster new product innovation and
maintain market leadership.

6. Implementation and Execution


 Timeline and Project Management: Each marketing initiative is planned
with detailed timelines, roles, and responsibilities for smooth execution.
Regular meetings and progress tracking ensure that the plan stays on track.
 Cross-Functional Collaboration: P&G's marketing plan involves close
collaboration between product development, R&D, sales, finance, and
supply chain teams to ensure that products are delivered on time and meet
customer needs.
7. Monitoring and Control
 Performance Metrics: P&G uses a variety of performance metrics,
including sales figures, market share, consumer feedback, and brand equity
indicators, to measure the success of its marketing activities.

 Continuous Improvement: P&G consistently assesses the effectiveness


of its marketing plans and adjusts strategies based on real-time feedback,
market changes, and competitive activity.

Key Takeaways
a. Consumer-Centric Approach: P&G places significant emphasis on
understanding consumer insights and preferences to develop products and
marketing strategies that resonate with their target market.
b. Innovation and Brand Leadership: P&G’s marketing plans revolve around
product innovation, maintaining strong brand positioning, and creating brand
loyalty.

 Global and Local Reach: P&G balances global scale with local
customization to cater to regional tastes and preferences, especially in
emerging markets.
 Sustainability Integration: Sustainability is a key component of P&G’s
marketing strategy, appealing to eco-conscious consumers while contributing
to the company’s long-term goals.

Through this comprehensive and consumer-focused approach, P&G maintains


its position as a leader in the consumer goods industry while adapting to
changing market dynamics and consumer expectations.
UNIVERSITY OF CENTRAL PUNJAB
FALL 2024

Course Title: Marketing Management Course Code:


BAMK3113

Assignment No. 4
Course Instructor: Ibrar Mansoor

Section: I Program: BBA Date:

Submission Date: Maximum Marks: 10

TO BE FILLED IN BY THE STUDENT


Student Name: Muhammad Saad Registration No: L1F19bbam0158 Sr. No: 01

Outline:
 Marketing Strategies
 Competitive Advantages
 SWOT Analysis
Marketing Strategies
Today, P&G operates in multiple product categories, including beauty,
grooming, healthcare, fabric care, and home care. The company’s brand
portfolio encompasses iconic names such as Gillette, Pampers, Tide, Pantene,
Olay, and Crest, among many others. These brands have become household
names, trusted by consumers for their reliability, effectiveness, and superior
quality.
P&G’s success is not only reflected in its extensive brand portfolio but also in
its financial stability and market performance. The company’s strong financial
foundation enables it to invest in research and development, marketing, and
talent acquisition, supporting its continuous growth and market leadership.
Procter & Gamble (P&G) employs various marketing strategies to effectively
promote its products and connect with consumers. P&G is known for its
innovative and consumer-centric approach to marketing. Here are some key
marketing strategies used by P&G:

Consumer Understanding:
P&G places a strong emphasis on consumer understanding. Through extensive
market research, data analysis, and consumer insights, P&G strives to gain a
deep understanding of consumer needs, preferences, and behaviours. This
understanding forms the foundation for developing products and crafting
targeted marketing campaigns that resonate with consumers.

Brand Differentiation:
P&G focuses on differentiating its brands within each product category. Each
brand under P&G’s portfolio has a unique value proposition and positioning
that sets it apart from competitors. P&G invests in developing brand equity by
highlighting the unique features, benefits, and emotional appeal of each brand.
Brand differentiation helps P&G capture consumer attention and build loyalty.

Product Innovation:
P&G is renowned for its commitment to product innovation. The company
invests heavily in research and development to create breakthrough products
that meet evolving consumer needs. P&G’s marketing strategy often centres
around communicating the innovative features, technology, and benefits of its
products. Innovation serves as a key driver for market penetration and growth.

Integrated Marketing Communications:


P&G utilizes an integrated marketing communications approach to reach
consumers through various channels. This strategy combines traditional
advertising (TV, print, radio) with digital marketing, social media, influencer
marketing, public relations, and experiential marketing. P&G ensures consistent
messaging and brand visibility across different touchpoints to maximize
consumer reach and engagement.

Emotional Branding:
P&G recognizes the power of emotional connections in marketing. Many of
P&G’s campaigns focus on creating emotional resonance by telling compelling
stories that resonate with consumers’ values, aspirations, and emotions. By
evoking emotions, P&G builds brand loyalty and deepens the relationship
between consumers and its brands.

Purpose-Driven Marketing:
P&G has embraced purpose-driven marketing, aligning its brands with social
causes and initiatives that resonate with consumers. P&G’s campaigns often
promote messages of empowerment, inclusivity, sustainability, and social
responsibility. Purpose-driven marketing helps P&G connect with socially
conscious consumers and build a positive brand image.

Personalization and Targeted Marketing:


P&G leverages data-driven insights to personalize its marketing efforts. By
analysing consumer data, P&G creates targeted campaigns that address specific
consumer segments or individual preferences. This personalized approach
allows P&G to deliver relevant messages and offers, increasing the
effectiveness of its marketing efforts.

Co-Branding and Partnerships:


P&G frequently engages in co-branding initiatives and strategic partnerships.
Collaborations with other brands or organizations allow P&G to leverage
complementary strengths and reach new audiences. Co-branded campaigns or
product collaborations help create excitement, generate buzz, and extend brand
reach.

Continuous Advertising and Promotion:


P&G maintains a consistent presence in advertising and promotional activities.
The company invests substantial resources in advertising campaigns to maintain
brand visibility and awareness. P&G often sponsors major events, partners with
sports teams, and utilizes celebrity endorsements to increase brand recognition
and recall.

Digital Transformation:
P&G embraces digital marketing and e-commerce to connect with consumers in
the digital age. The company leverages social media platforms, influencer
marketing, content marketing, and targeted online advertising to engage
consumers. P&G also invests in e-commerce capabilities to provide convenient
access to its products through online channels.

These marketing strategies enable P&G to effectively promote its brands,


engage with consumers, and drive brand growth. By combining consumer
insights, innovation, emotional connections, purpose-driven messaging, and
targeted marketing approaches, P&G maintains a competitive edge in the
consumer goods industry.

Competitors of P&G:
In the rapidly changing world of consumer goods, few companies have made as
lasting an impact as Procter & Gamble (P&G). With a heritage spanning over
180 years, P&G has become synonymous with household essentials, boasting
iconic brands like Tide, Pampers, Crest, and Gillette. However, in the fiercely
competitive consumer goods sector, P&G faces challenges from other industry
players.

1. Unilever:
A significant contender in the consumer goods arena is Unilever. Unilever is a
leading global consumer goods company, known for its wide range of products
in categories like personal care, home care, food & beverages, and health &
wellness. The company’s dedication to sustainability and social responsibility
amplifies the competition with P&G.
Key aspects of Unilever’s business and competitive strategy include:

Product Categories
Personal Care: Brands like Dove, TRESemmé, and Lifebuoy.
Home Care: Includes Omo (Persil), Surf, Domestos.
Food & Beverages: Features Lipton, Hellmann’s, Knorr.
Sustainability and Social Responsibility
Sustainable Living Plan: Unilever has committed to reducing its
environmental footprint, promoting sustainable sourcing, and improving health
and well-being globally.
Focus on ethical sourcing, reducing plastic waste, and carbon neutrality.
Market Reach
Strong presence in both developed and emerging markets, particularly in Asia,
Africa, and Latin America.
Unilever’s strategy revolves around creating products that are sustainable,
inclusive, and accessible, while maintaining a strong market presence globally.

Competitive Advantages
Procter & Gamble (P&G) is one of the largest and most successful consumer
goods companies globally. Its competitive advantages stem from several factors
that have contributed to its sustained success in the market. Some key
competitive advantages of P&G include:
1. Strong Brand Portfolio
Diverse and Trusted Brands: P&G owns many well-known brands across
various product categories (e.g., Tide, Pampers, Gillette, Ariel, Olay, Head &
Shoulders). These brands are often market leaders and have a high level of
consumer loyalty and trust.
Brand Equity: P&G’s ability to maintain brand equity through consistent
quality, marketing, and customer satisfaction helps sustain long-term consumer
demand.

2. Extensive Research & Development (R&D)


Innovation Leadership: P&G invests heavily in R&D to develop new products
and improve existing ones. This focus on innovation allows P&G to stay ahead
of competitors in terms of product performance and consumer satisfaction.
Consumer Insights: P&G is known for leveraging deep consumer insights to
guide product development. This focus on understanding customer needs leads
to products that resonate well in the market.

3. Global Scale and Distribution Network


Market Reach: P&G has a strong global presence, operating in over 180
countries. This extensive distribution network ensures that its products are
available to a wide range of consumers worldwide.
Economies of Scale: The company benefits from economies of scale, which
allows it to reduce production costs and maintain profitability even in highly
competitive markets.

4. Supply Chain Excellence


Efficient Manufacturing: P&G is known for its highly efficient and flexible
supply chain. The company has optimized its manufacturing processes, enabling
it to quickly respond to changes in consumer demand.
Cost Control: P&G’s sophisticated supply chain management helps the
company to reduce costs, maintain high-quality standards, and avoid supply
disruptions, enhancing its competitive position.

5. Brand Loyalty and Customer Relationships


Customer-Centric Focus: P&G invests in creating strong relationships with its
customers. It offers loyalty programs, personalized experiences, and marketing
strategies that connect emotionally with consumers.
Product Quality and Consistency: P&G ensures its products meet the highest
quality standards, creating a sense of reliability that builds long-term customer
loyalty.

6. Marketing and Advertising Prowess


Effective Marketing Strategies: P&G is renowned for its marketing expertise,
including iconic advertising campaigns that appeal to a wide range of
consumers. The company’s marketing spends are some of the highest in the
consumer goods sector, ensuring widespread brand visibility.
Use of Digital Platforms: In recent years, P&G has successfully leveraged
digital marketing, including social media, influencer marketing, and data
analytics to enhance consumer engagement.

7. Sustainability and Corporate Responsibility


Environmental Initiatives: P&G has made significant investments in
sustainability, including reducing waste, using renewable materials, and
minimizing carbon emissions. This environmental responsibility can strengthen
its brand image and appeal to increasingly eco-conscious consumers.
Social Responsibility: The company’s commitment to social issues, such as
promoting gender equality and supporting various community programs, helps
bolster its reputation and build goodwill among consumers.

8. Financial Strength
Strong Cash Flow and Profitability: P&G’s financial strength allows it to
invest continuously in innovation, marketing, and acquisitions. The company’s
ability to generate consistent cash flow makes it resilient to market volatility.
Ability to Weather Economic Downturns: Due to the essential nature of
many of P&G’s products (e.g., household cleaning, personal care), the company
tends to perform relatively well even during economic downturns.

9. Strategic Partnerships and Acquisitions


Acquisitions: P&G has a history of acquiring companies that complement its
portfolio, further strengthening its market position. Examples include the
acquisitions of brands like Gillette, and more recently, buying part of the Merck
Consumer Health business.
Collaborations: P&G often collaborates with suppliers, retailers, and
technology partners to drive innovation and improve operational efficiency.

10. Leadership in Sustainability and Product Integrity


Sustainable Products: P&G has prioritized creating products that align with
sustainability goals. This includes using renewable resources, reducing
packaging waste, and ensuring environmental impact is minimized.
Product Integrity: P&G’s commitment to ensuring the safety and integrity of
its products is another competitive advantage, as it ensures compliance with
global safety standards and builds consumer trust.

11. Digital Transformation and Data Analytics


Use of Data and AI: P&G is increasingly leveraging digital tools, big data, and
artificial intelligence to optimize operations, improve product development, and
deliver personalized experiences to consumers.
E-commerce Growth: The company has also invested heavily in digital
platforms to enhance its direct-to-consumer model, especially in the rapidly
growing e-commerce space.
These combined advantages have positioned P&G as a leader in the consumer
goods industry, enabling it to adapt to market changes, meet consumer needs
effectively, and maintain a dominant position in the global marketplace.

SWOT ANALYSIS OF P&G


P&G Strengths:
1. Brand Equity
Procter & Gamble (P&G) has a strong portfolio of globally recognized brands.
These include well-known brands like Tide, Ariel, Pampers, Whisper, Gillette,
Head & Shoulders, Herbal Essences, Pantene, Ambi Pur, Oral-B, Vicks, Olay,
and Old Spice. This vast brand familiarity of leading brands within the P&G
umbrella adds significantly to the company’s high brand equity. In 2023,
Procter & Gamble’s net sales amounted to 82 billion U.S. dollars worldwide.

2. Brand Reputation
P&G’s reliable brand image amplifies its success. Thanks to intelligent
marketing methods and a reputation for excellence, P&G routinely achieves
high revenues and profitability, a significant accomplishment given the global
market’s increasing competition. The company’s long-standing reputation for
selling quality products and being a company built on ethics has contributed to
its enduring success and unique culture.

3. Innovation
Innovation is at the core of P&G’s business strategy. With a long history of
research and development, P&G’s incremental improvements to existing
products and the creation of new ones keep them at the forefront of the
consumer goods industry. The “P&G Good Everyday” project highlights the
company’s unique marketing approach, which rewards customers for merely
utilizing its products.

4. Automation
P&G uses automation to optimize resource allocation, save costs, and maintain
consistent product quality throughout production. It also allows P&G to change
output quickly in response to market demand.

5. Advertising and Marketing


P&G’s inventive and captivating campaigns have set industry standards. The
corporation frequently establishes marketing trends, which it supports with
significant advertising investments.
6. High Brand Awareness
Strong brand awareness is core to P&G’s success and has been deliberately
cultivated through strategic celebrity endorsements. The company leverages
celebrity partners’ extensive social reach to ensure its carefully customized
brands reach all income levels.

P&G Weaknesses:
1. Closure of brands caused the loss
While Procter & Gamble (P&G) has typically performed well, it has suffered
losses due to the closure of various subsidiary brands under its jurisdiction. One
great example is Pringles, which is now owned by Kellogg’s. This trademark
termination indicates a decline in P&G’s product diversification and a loss of
corresponding market shares, which is a significant negative.

2. Unable to keep up with the frequent change in demand


In the consumer goods industry, dynamic public demand is expected. P&G
occasionally needs help responding quickly to these consumer demands and
fluctuations. This inability to ensure product relevance exposes the organization
to risk losing favour with its target consumers, indicating a severe operational
strategy weakness.

3. Brand dilution risk


Managing a broad brand portfolio exposes P&G to the danger of brand dilution.
Efforts to promote multiple brands across various segments may limit the
attention on individual brands, reducing their competitiveness. For example, a
well-known brand may lose value if its individuality merges with other brands
in the portfolio.

4. Low organic growth


P&G is experiencing slowed organic growth due to consumer saturation and
decreased innovation rates. This vulnerability is because the development of
established brands depends primarily on acquiring new customers and retaining
existing ones, implying that P&G should reconsider its marketing strategy to
reverse this trend.
5. Dependence heavily on external vendors
P&G relies heavily on third-party vendors for raw ingredients, packaging, and
other components. This reliance exposes the corporation to supply chain
interruptions, which could harm production and sales, making it a critical flaw
in its business model.

6. Reliance on Traditional Ad Channels


P&G has typically invested significantly in television advertising. However,
overreliance on traditional platforms is risky as the world moves toward digital
ones. Therefore, P&G needs to change its marketing strategies to focus more on
digital and social media.

P&G Opportunities
1. Reach the rural market
Rural areas represent unexplored prospects for P&G, particularly in locations
where the brand has not made a substantial mark. By tailoring products and
marketing techniques to the demands of rural consumers, P&G can generate
new revenue streams and strengthen its market presence.

2. Focusing on Niche Markets and Trends


By entering niche areas such as eco-friendly, organic, or natural products, P&G
can meet the growing customer demand for sustainability. Adapting to these
developing consumer goods market trends helps differentiate P&G from
competitors and build a loyal consumer base.

3. Enhancing Digital and E-Commerce Presence


To keep up with the rise of online shopping, P&G needs to improve its internet
presence and e-commerce options. Improving online platforms can boost sales
and provide helpful consumer insights through data analysis.

4. Strengthening Innovation and Product Development


Continued investment in R&D can strengthen P&G’s commitment to
innovation. Launching innovative products that adapt to changing consumer
needs will help P&G maintain its market leadership and brand reputation.
5. Leveraging Data Analytics and Artificial Intelligence (AI)
Data analytics and artificial intelligence can help P&G gain insights into
consumer behaviour, optimize marketing activities, and increase supply chain
management efficiency. This technology-driven strategy can result in better-
informed decisions and operational efficiencies.

P&G Threats
1.Intense Competition
P&G competes in a highly competitive field, including established competitors
like Unilever and Colgate-Palmolive and smaller, more agile competitors. The
intense competition threatens to weaken P&G’s market position and pressure
the corporation to lower prices to remain competitive, perhaps reducing profit
margins.

2.Dependency on Certain Markets


Despite its global presence, P&G’s reliance on specific areas for significant
revenue leaves it susceptible to economic downturns or political instability in
these markets, which could substantially impact the company’s financial health.
3.Changing Consumer Preferences
The movement toward organic, natural, and eco-friendly products poses a
challenge to P&G. Adapting to these consumer preferences is critical since a
way needs to be found to improve product portfolio alignment, which may
reduce the company’s market relevance.
4.Economic fluctuations
Consumer items are frequently the first to feel the impact of economic shifts.
P&G is no exception, since it faces the risk of lower consumer spending and
demand for its products during economic downturns, especially in established
markets.
5.Price of Raw Material
Price fluctuations in raw materials can significantly impact P&G’s
manufacturing costs. A rise in these costs implies either an increase in product
prices or a decrease in profit margins, which could be better from a strategic
standpoint.
6.Supply Chain Disruptions
Given P&G’s global activities, the supply chain is vulnerable to disruptions
caused by international conflicts, natural disasters, health crises, or trade
restrictions. Any disruption may compromise the company’s capacity to supply
items efficiently, potentially resulting in lost sales and increased costs.

Recommendations for P&G


When considering recommendations for Procter & Gamble (P&G) based on
principles of marketing management, the following three strategies would help
the company continue to excel and adapt to changing market dynamics:

1. Strengthen Digital and Direct-to-Consumer (DTC) Marketing


Recommendation: Invest further in direct-to-consumer (DTC) channels,
leveraging digital marketing, e-commerce platforms, and data analytics to
personalize customer experiences.
Rationale: The digital transformation of consumer behaviour is accelerating,
and consumers are increasingly shopping online. P&G can capitalize on this
trend by building a stronger DTC presence, not just through traditional retail
partnerships but by offering subscription-based services, personalized product
recommendations, and exclusive online deals.

2. Enhance Sustainability and Green Product Innovation


Accelerate the development of eco-friendly products and further integrate
sustainability into product design, packaging, and supply chain processes.
Rationale: Consumers are increasingly making purchasing decisions based on
environmental and ethical considerations. Brands that align with sustainability
values gain a competitive edge, particularly among younger, environmentally-
conscious buyers.
Sustainable Packaging: Continue to innovate in sustainable packaging
solutions, such as fully recyclable materials or reduced plastic use. Transparent
communication on these efforts can further boost brand trust.
Eco-Friendly Product Lines: Develop new or enhance existing product lines
that are more eco-conscious. For example, expanding natural or organic product
offerings could resonate with the growing health and wellness trends.
3. Localized Marketing and Product Customization
Increase the focus on localized marketing strategies and product customization
to cater to diverse cultural preferences and emerging markets.
Rationale: As P&G operates in over 180 countries, adapting its products and
marketing to local tastes, habits, and preferences is essential. Localized
strategies help P&G connect with different consumer segments in more
meaningful ways.
Cultural Sensitivity: Ensure that marketing campaigns are culturally relevant
by addressing specific regional values, needs, and desires. For instance, beauty
products might need to be adapted based on local skin tones or hair textures,
and household cleaning products might vary by regional cleaning habits.
Localized Product Innovations: Customize product formulations and sizes for
specific markets. For example, P&G could develop smaller, more affordable
product sizes for emerging markets where income levels might be lower but
demand for high-quality products is rising.

By focusing on these three areas enhancing digital and DTC marketing,


strengthening sustainability efforts, and further localizing marketing and
product development. P&G can reinforce its leadership position while meeting
evolving consumer demands and navigating an increasingly complex global
marketplace.

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