Procter And Gamble Company Marketing Assessment Paper

Marketing Assessment Paper
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Procter and Gamble company marketing assessment
Procter &Gamble is the second largest beauty and personal care Company with 8 percent of global market share value. The company has vast business experience of over 170 years, and its 300 brands are spread over 180 countries (P&G, 2015). Procter & Gamble Company provides branded consumer goods operating in five major segments of health care and beauty, grooming, fabric and home care, baby, feminine and family products (P&G, 2015).
Procter & Gamble products are easily accessible, its large distribution network includes mass merchandisers, grocery stores, drug store, departmental store, baby distributor, specialty beauty stores, e-commerce, and pharmacies. Protocol and gamble operate 20 manufacturing sites in the US with 100 sites in 40 countries (P&G, 2015). The company's mission and vision are to be recognized as the best consumer product and Service Company in the world (P&G, 2015) .Its mission is to offer leading brands that improve the lives of its consumers. Its core values include value creation and prosperity (P&G, 2015).
Company description
Procter & Gamble came into existence in 1937 after William Procter and James Gamble became partners. Today the company is the second most profitable consumer good company after Nestle(P&G, 2015). Procter and Gamble company' competitive advantage is its fast moving consumer goods generating $ 11.6 billion annually with an increased dividends for the 59 year. The company in 2014 generated a return of investment of 11.9billion to its shareholders(P&G, 2015). The company's value is at 191.47 billion with 300 strong brands distributed in 180 countries and 125,000 employees (P&G, 2015). The company offers multiple products in each of its five categories with most of its revenues channeled towards research and development (P&G, 2015).
Even though Procter and Gamble Company is one of the leading consumer goods company, P& G has recently faced stiff competition both locally and international losing its market share. The beauty and health products are limited to specific groups, mostly targeting children and women. Besides, the increased number of fake products sold under their brand name has affected its market operations (Bahadir, Bharadwaj & Srivastava, 2015). P & G profit margin had reduced in the recent years, however, the company has maintained its market position by addressing some of the above concerns (Bahadir, Bharadwaj & Srivastava, 2015).
Using SWOT analysis, this paper analyzes how Procter and Gamble have tried to counteract some of the negative effects of competition and other marketing challenges, the company is trying to adopt more capabilities to further strengthen the business (West, Ford & Ibrahim, 2015). Using SWOT analysis, we will identify some of its internal strategies factors like its strength and weakness, opportunities and threat in the consumer product market (West, Ford & Ibrahim, 2015). Like other companies, Procter and Gamble need to capitalize on its strengths and exploit the many available opportunities while addressing its threats and weakness to remain competitive(West, Ford & Ibrahim, 2015).
Strengths.
Despite high levels of competition and the changing market trend, Procter & Gamble have maintained its market position some of its strength lies in having a strong brand due to a stable economies of scale and an effective product distribution network spread all over the world (Dalal & Malik, 2015). P& G is the leading brand because of its strong consumer brands that give it is a competitive advantage. For instance, its Tide and Pampers are household names that have given the company a stable market share (Dalal & Malik, 2015). The company has increased its product categories to 10 products with more than 65 brands. With ten categories of products. P& G has 21 brands that provide an annual sale of $ 1 billion to $ 10 billion and 11 brands with $ 500 million to $ 1 billion sales annually (Dalal & Malik, 2015). It has economies of scale are strengthened by its global operations. Procter and Gamble net worth in the market makes (Dalal & Malik, 2015).
To improve its market position, P & G have implemented several cost saving initiatives. These processes are meant to lower the costs by reducing overhead, lowering material costs from its product designs and formulation and also increases manufacturing and marketing productivity (P&G, 2015). For instance, in 2014 the company reduced its footprint of the technical centers at the same time improved its network by providing enhanced scale in fast-emerging markets (P&G, 2015). The company doubled its presence in places like China, Indonesia, and Brazil. With stable brands, P& G invests in adverting its products in 2016 the company spent $ 7.2 billion in advertising compared to other years (P&G, 2015).
Advertising is the key communication tactic the company uses to deliver its product detail to the target market. P& G is not only known for its aggressive marketing strategies, including the use of pulls marketing in some of leading brands like Tide, Ariel, and Olay the company also offers affordable prices to maximize revenue and profits. P&G analyzes the market trends to determine its prices(P&G, 2015). Its integrated marketing communication of its brands is an excellent way that the company has employed, P& G use multiple channels to reach out to its consumers. Procter and Gamble marketing mixes that use various channels enables them to penetrate the markets (P&G, 2015).
One of its notable strengths is its distribution network, the company network in includes company wound facilities and third party service providers. P&G covers all distribution channels be it in rural, urban or modern forms of marketing. The demand for their products makes than increase their presence in the market by managing their inventories and deliveries using advanced systems (Haile & Krupka, 2016). Like its competitors, P& G has kept its supply chain competiti...