Marketing Analysis Of P&G For Ohio And Procter & Gamble

Market Strategy

Discuss about he Marketing Analysis of P&G for Ohio and Procter & Gamble.

A business strategy can be defined as the ways by which the organizations can aim at achieving the objectives that are set for them in the market. This process can also be defined as the long-term business process that is followed by the companies for the purpose of achieving success in the industry. The business strategies are developed based on the operations of the company over a period of three to five years (Andreeva & Kianto, 2016). The business strategy is thereby based on the major resources that are which are required for the achievement of the organizational goals. The strategies are also based on the decisions that need to be taken related to the resources that need to be allocated to the products and services offered to the customers. The scope of various business activities is based on the ways by which they produce (Chen, Delmas, & Lieberman, 2015).

The concept of strategic thrusts can be defined as the ways with the help of which the high-level initiatives that can arise from the strategic vision of the company and they are able to guide various action plans for the achievement of the goals. This process thereby helps in obtaining maximum amount of information from various resources in the firm for the competitive advantage. This is a broad statement that is based on the intended actions based on the strategy of the company. The strategic thrusts of the company help in the creation of the competitive advantage for an organization in the industry (Durand, Grant, & Madsen, 2017).

The organization which has been considered for this analysis is Procter & Gamble Co. which is an American multinational organization that has operates in the sector of consumer goods retailing. The headquarter of the company is located in Ohio and Procter & Gamble was founded in the year 1837. The company mainly specializes in a large range of personal care and hygiene based products along with cleaning agents. The product portfolio of Procter & Gamble in the different areas of its operations include, beverages, snacks and foods as well. The organization has recorded sales of 83.1 billion dollars in the year 2014. The analysis in the report will be based on the skincare based segment of the company in its operations in Australia.

The craze of retail industry in the soil of Australia is undoubtedly high. Procter & Gamble would have to face immense competitors’ market threat while establishing their business in Australian market (Dalken, 2014). However, Procter & Gamble would have to make effective industry analysis to get in-depth overview about the competitors’ power.

Industry analysis

Table 1: Industry analysis for entering in Australian market

(Source: (Dobbs, 2014)

An organization needs to segregate the target customers before positioning the brand amidst large number of competitors (Wang, 2016). Target market segmentation and positioning is one of the most significance business strategies and policies for getting in-depth overview about the target customers of the brand and its suitable channels for reaching the target customers. Competitive positioning is primarily constituted with four major steps which includes

• Market profile
• Customer segment
• Competitive analysis
• Selecting proper channel for positioning the brand

As already stated the market profile of FMCG industry in Australia is larger which is surrounded with recognizable brands like Blackmores, GrainCrops and Wesfarmers. Therefore, in order to segment the target market Procter & Gamble would have to focus on segregating the target consumers as per geographic, demographic and psychographic perspective.

Competitive analysis is one of the most significant strategies before positioning the brand in market. Based on the marketing strategies and policies of competitors Procter & Gamble would have to make their marketing positioning plan. For an example, Wesfarmers being one of the most prestigious brands of Australia depends on digital media marketing for introducing their brands in global market (Sanfelice, 2014). Based on their positioning strategy Procter & Gamble would have to select the proper media vehicle so that their products can easily draw customers’ attention amidst large number of competitors.

In order to position the brand Procter & Gamble would like to select social media challenges to draw the attention of customers belonging to various geographical boundaries of Australia. In addition, Australia is out an out advanced in technology. As a result, people belonging to this country get constant update regarding new brands and products by using advanced technology. Traditional media platform is not very compatible for drawing the attention of target customers (Wang, 2016). Therefore, Procter & Gamble would have to select new media for positioning the brand in Australian market.  

The Procter & Gamble Company has a huge experience of operating in an effective manner in the global market areas. The company has its successful operations in several areas around the world. The operations of the company and its product offerings are based on several areas which include, personal hygiene, home care and beauty. The analysis in the report is mainly based on the skincare based products that are offered by the company in Australia (Meyer, Neck, & Meeks, 2017). The four segments that are used for the analysis of the company are as follows,

• Cash Cows– The products that are a part of this category are able to provide sustainable sources of income to the company and the financial stability of the company is also ensured with the help of these products. The market presence of these products is also quite strong which helps the company to further increase its shares in the market with the success of the products. The financial support and the strong share in the market thereby help these products to provide maximum amount of benefits to the company (Michael, Storey, & Thomas, 2017). The cash cows are further able to provide support in increasing the strength of the company in the industry. The cash cows of the Procter & Gamble company also include the products like, Fairy and Gillette. These two products of the company have a huge share in the market which has helped in the creation of a stable financial position of P & G in the market (Morschett, Schramm-Klein, & Zentes, 2015). The economic slowdown in different countries and in Australia has slowed down the growth of Procter & Gamble. However, due to the huge market presence of these products the company has been successful in maintaining its competitive position in the industry. Gillette not only has a huge market presence in Australia, the product has a huge market base all over the world. This quality has enabled these two products to provide the maximum profits to Procter & Gamble over the years of its operations in the market (Popkova, Abramov, Ermolina, & Gandin, 2015).
• Stars– The products of the company which have a strong financial position and also have further potential of growth in the market. These products are able to gain share in the market with the help of various qualities that are present. The products that belong to the segment of stars have the ability to turn into cash cows in the future. These are products offered by the company which have shown the potential of huge amount of growth in the future (Sakas, Vlachos, & Nasiopoulos, 2014). The products of Procter & Gamble which can be easily placed under this category are, Downy and Herbal Essences. These two products have been offered by the company in Australia. They have shown huge potential of growth in the market which has been a positive point for the operations of Procter & Gamble in the country (Shah, Jamil, Shah, & Kazmi, 2015).
• Dogs – The products of the companies that can be placed under the category of Dogs are those which have a huge potential for growth in the future. These products are not able to add any financial value to the company in the process. The products belonging to this category are thereby not able to add value to the company. The market presence of these products is also quite low as compared to the other products that are offered by the company in the portfolio (Simon, Fischbach, & Schoder, 2014). The decision makers of the company are thereby most likely to remove these products from the portfolio of the organization. The resources of the company are invested in the development of the products so the decision makers of organization need to take decisions regarding the continuation of the products. The products of Procter & Gamble that belong to the dogs based segment of the company are, SK-II, Olay (Slater, 2015). These products are not able to the create a strong financial base of the company in the industry. Olay belongs to the premium products range of the company and the investment on resources is also high. The returns that are expected by P & G from this product is thereby high.
• Question Mark – The products offered by the company which belong to this segment are those which are based on uncertainties. These products can drop rise to become a star and on the other there are chances of the products to drop to the dog segment. The products thereby are needed to be kept under constant analysis which will help the company to decide their future. The product of P & G is quite strong and none of the products belonging to this range can be placed under this quadrant (Simon, Fischbach, & Schoder, 2014).

Competitive positioning

The BCG matrix is a major tool that can be used for the purpose of business portfolio analysis. The major benefits that are provided to the analysts by the BCG matrix are as follows,

• The tool is quite simple in using and further explaining the various parts of the business that fall under the different categories.
• This model has a strong reputation in the industry and is quite robust in nature as well. This has also helped in causing some significant changes in the environment.
• The BCG model has proved to be important for the allocation of resources and the ways by which the organization is able to pursue the goals.
• The organizations are provided with a base with the help of which they are able to allocate the resources in a proper manner (Morschett, Schramm-Klein, & Zentes, 2015).
• The matric is usually developed with the help of previous information that is available to the analysts. However, this method helps the company in taking important decisions based on the future of the company.
• This matric has thereby proved to be much more beneficial for the companies which have production on a large scale basis (Hubbard, Rice, & Galvin, 2014).

The BCG analysis of the skincare range of Procter & Gamble has thereby proved that the company was successful in creating a different position in the market with the help of the products that belong to different groups or quadrants. The difference in the quadrants has thereby been able to depict the position of the particular products in the portfolio of the company (Sakas, Vlachos, & Nasiopoulos, 2014).

The first tool that has been discussed in this case is the experience curve concept. This tool cam be used for the purpose of analysing the experience of the companies. The main advantage that has been provided by this tool is based on the ways by which the organization can use the huge amounts of data that is available for the analysis by the company and the formation of decisions based on this data. The profit impact of marketing strategy is another tool that can be used by the company for the purpose if studying the strategic experience that is provided by the profit based organizations (Michael, Storey, & Thomas, 2017). This framework is quite beneficial for the organization as it is able to provide consistent and realistic method based on the returns that are received by the company. The process of value based planning helps the organizations to measure the actual worth of various marketing strategies. The strategies are judged for enhancement of the values of the shareholders. The game theory is mainly used by the companies so that they are able to respond rapidly to the changes that have taken place in the technologies, the prices and the products (Chen, Delmas, & Lieberman, 2015). The Delphi technique on the other hand is used by the companies for the purpose of creating expert opinions. The trend impact analysis provides the major benefit to the company based on the ways by which the future trends of the company can be proposed with the help of the past behaviour and data that is present. The process of cross impact analysis is also beneficial for the organizations so that they are able to examine the impacts of various future trends on each other (Popkova, Abramov, Ermolina, & Gandin, 2015).

Benchmarking is a strategy tool that marketers used to compare the performance of the processes in the business and developed in for comparing the best performances of other companies internally and externally (Dobbs, 2014). Benchmarking used by the companies are of three types- strategic, performance and process and the approach to accomplish the same approach is done through internal analysis, competitive, external, functional and generic (Dalken, 2014).

Portfolio Analysis

Strategic Benchmarking- P&G should utilize the strategic benchmarking for targeting different products according to the age group of the people so that all the consumers can get their products in order to give competition to Colgate-Palmolive (CL), Elizabeth Arden (RDEN), Estee Lauder and Revlon (REV).

Performance Benchmarking- In this aspect P&G should enhance the range of the products that they offer to Australian consumers. The marketers can formulate herbal range of the products especially for the people, who are more concerned to the skin. Through this approach, P&G can focus on the quality, features and innovation of the products.   

Process Benchmarking- In order to carry out the process benchmarking, the company need to identify their weak aspect. P&G currently lacks the research team, who can develop the herbal range products that uses less use of chemicals. Moreover, in order to reduce the production costs, the company can also target to develop a team to find the raw materials for manufacturing the products.

Moreover, there are four types of approaches through which benchmarking can be obtained through internal benchmarking, external or competitive benchmarking, functional benchmarking and generic benchmarking (Meyer, Neck, & Meeks, 2017). However the company should choose the most optimal benchmarking approach. In this case, P&G can implement generic benchmarking, where the marketer compare their abilities with generally accepted best standards and also adopt some of the best strategies that other rivalry are using. Taken for instance, REVLON utilizes modern technology of Big Data analytics that P&G should also obtained for managing the huge data for their brand across many geographic regions.

The main benefits of utilizing the strategic tools benchmarking are to implement low cost activity that offers huge gains, enhances innovative ideas to the company, insight of how other companies operates, facilitates cooperation between teams and develop awareness of the company’s costs.

Total quality management illustrates an approach that can ensure long–term success through customer satisfaction (Popkova, Abramov, Ermolina, & Gandin, 2015). Thus, improvements in processes, products, services along with the culture of the working environment need to be included by the P&G in developing their business in Australian Market. TQM also includes seven key elements that can help an organization to maintain the quality of their brand- ethics, integrity, training, teamwork, leadership, recognition and communication.  

Ethics- P&G should adopt business code of ethics outlines the guidelines that all the employees have to follow. The ethics should related in using genuine products in developing products, maintaining business legislation of Fair Pay Act, Anti-Discrimination Act and Workplace health and safety policies.

Strategic Development Tools

Integrity- P&G should avoid duplicity and maintain the integrity of the business. All the ingredients used for developing the products need to be written on the packaging. Image representation of should also be provided for depicting the product use to develop the packaging and whether or not it is recyclable.

Training- P&G should also offer training to their employee regarding the philosophies of TQM. The training should also offer for problem solving, decision making, business economics and technical skills. The training should also be provided to the suppliers so that all their business objectives can be aligned.

Teamwork- Different team should be assigned for department to develop the quality of the product and bring innovation. This will help the collaborative nature of the employees and they can fulfil the organizational goals efficiently (Popkova, Abramov, Ermolina, & Gandin, 2015). P&G can implement Natural Work Teams (NWTs) where skilled workers share their tasks and responsibilities.

Leadership- P&G leaders should demonstrate their belief and commitment to the employees through their daily TQM practices and also evaluate the performances of the employees regularly. The managers should also provide challenging roles and responsibilities to the employees for utilizing their exceptional talent in achieving company’s objectives.

Recognition- P&G can implement process like sending personal letter from top management, appreciating good performing people in front of departments and making everyone learn about the special talent of outperformers in team meeting, group discussions and annual award banquets.

Communication- TQM can also be obtained by maintaining transparency of the business progress and upcoming plans (Popkova, Abramov, Ermolina, & Gandin, 2015). P&G hence should also communicate all their data with organization members, suppliers and customers on a regular basis through different media like e-mails, news bulletins and social media or personally through the messages.

The traditional organizations are able to adapt to the increasing complexities that can occur in the external environment. The organizations in the modern business environment need to be highly responsive in nature. This helps the companies to create a different position in the industry. The corporate boundaries of the company also need to be created for the purpose of determining the changes that need to be made in the various processes. The reward systems play an important role in the proper functioning of the companies in the industry (Frynas & Mellahi, 2015). The leadership style that is followed by the managers in the organization help in the proper management of the strategies that are to be implemented for the future operations of the company in the industry. The analysis of Procter & Gamble with the help of different strategic tools have depicted that the company has been successful in maintaining the topmost position in the market. The company has a wide range of products which have been major reason behind the huge success of Procter & Gamble all over the world (Slater, 2015). The various strategic tools have thereby proved to be effective for the successful operations of the company in the industry. The various strategic tools play an important role in the ways by which the companies operate in the external environment. The position of the company in the market can be easily detected with the effective implementation of the different strategic tools in the various parts and operations in the modern business environment. Procter & Gamble has also been able to make perfect use of the tools.

Reference List

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