International Marketing Strategy for P&G's Ariel in Kuwait Market

The report analyzes the marketing strategies used by P&G to launch Ariel product in Kuwait market. It discusses pestle analysis, marketing mix, STP analysis, and promotional activities. The report recommends that P&G should focus on improving the retail infrastructure and e-commerce facilities in Kuwait to increase consumer confidence and attract more customers.

International marketing strategy

International marketing strategy
Executive summary
Marketing strategies are significant and vital to grow and flourish the business internationally.
P&G which is well known FMCG brand has been chosen in the report. The main vision of the
company is to be leader in FMCG sector. Along with this, the firm wants to uplift and augment
revenue and returns by offering excellent products and services to the customers. Ariel which is
popular bran of P&G has been taken in the task. The paper highlights how P&G uses innovative
strategies and approaches to launch product in Kuwait market. Pestle analysis, marketing mix
and consumer behavior have been discussed in the report briefly.
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Table of Contents
Introduction.................................................................................................................................................4
Environmental analysis in two countries.....................................................................................................4
Pestle analysis of UK and Kuwait...........................................................................................................5
Industry analysis in the two countries..........................................................................................................6
Key Industrial Factors (Competitive analysis and buyer behavior)..........................................................6
Marketing strategy analysis: STP................................................................................................................7
Critical evaluation of brand, resources and capabilities...........................................................................7
Segmentation, targeting and positioning..................................................................................................7
Marketing strategy analysis: Promotional activities....................................................................................8
Marketing mix.........................................................................................................................................8
Conclusion and recommendations...............................................................................................................9
References.................................................................................................................................................10
Appendices................................................................................................................................................12
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International marketing strategy
Introduction
The primary purpose of this study is to depict the information about the marketing strategies that
help in boosting revenue and returns in the global market. P&G Company has been taken in the
task as an example to expand activities and operations globally. The brand or product which has
been chosen in the task is Ariel. P&G is popular consumer goods company that wants to be a
leader in FMCG industry. The paper further outlines that how the organization uses marketing
strategies, Pestle analysis and resources and capabilities to build and develop a dynamic image
and position in the global market. A brief overview about marketing mix that helps in selling the
Ariel product in Kuwait has been discussed in the task. Kuwait country has been taken to explore
the business activities and actions globally. More detail of the task has been presented below.
Procter & Gamble Company is an American multinational Corporation which was formulated in
1837 in downtown Cincinnati, Ohio United States (Pginvestor, 2018). The company provides
consumer goods like consumer health and personal care products, hygiene products, home care
products and baby products. P&G is one of the biggest and leading consumer goods companies
across the world. The main purpose of P&G is to touch and enhance the lives of consumers now
and for generations for attaining competitive benefits globally. The passion, insight and
innovation of talented teams has helped P&G grow into a global company that is governed
ethically, responsibly that is transparent, effective and open (Pginvestor, 2018).
Environmental analysis in two countries
Environmental analysis plays a significant and crucial role in analyzing and identifying the
challenges, threats and risks of the market. Without analyzing and measuring the opportunities
and threats of the market, the company cannot expand and flourish the business actions and
activities internationally (Radojevic and Bashkin, 2007). SWOT analysis and pestle analysis are
done to measure the threats and obstacles of the market.
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International marketing strategy
Pestle analysis of UK and Kuwait
There are enormous factors that can affect the profitability and revenue of P&G Company in
Kuwait while conducting business activities to a large extent. Macro environment consists
various external factors such as political, economic, environmental, social, technological and
legal factors. Thus, pestle analysis is done to overcome and manage these factors and challenges.
The pestle analysis of both the countries is elaborated below.
Political factors: UK is considered political stable country as it is one of the biggest strengths of
the company. Along with this, it is a well known and popular destination for FDI hence, P&G
takes ample of benefits while functioning (David, 2018). On the other hand, political condition
of Kuwait is not stable and effective thus, various challenges can be faced by P&G for
introducing Ariel product in such market. Their economy is not as vibrant as Saudi Arab’s and it
is extremely dependent on export of oil (Adamkasi, 2015).
Economy factors: It is studied that UK is 5th biggest economy across the world measured by
nominal GDP. The current minimum wage for people aged 25 and over is £7.50 per hour and
inflation rate was 3.1% measured in November 2017 (David, 2018). Along with this, exchange
rate and employment rate also affect the progress of P&G in home country. In Kuwait, the
government supported maximizes and improve in life style through infrastructure investment and
increase is salaries. In addition, growth rate would also increase from 0.8 to 3% per year. Thus,
the company will have to face ample of issues and challenges while functioning (Adamkasi,
2015).
Social factors: It is noted that UK has a biggest consumer market across the world. P&G has
developed variety of new products. The income level and education of the customers in UK are
high and strong. Therefore, the firm takes plenty of benefits. On the other hand, Kuwait is
considered hub for expatriates who come from foreign countries to earn and maximize their
living in this region of the world where salaries are extremely high and unique. Thus, the
company lures more and more customers in the competitive market (Adamkasi, 2015).
Technological factors: It is investigated that UK uses advanced and innovative technology for
conducing the business operations and functions. Technology sector is a primary participator to
the UK economy along with this, huge investment is done by the country to use advanced
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technology. Hence, P&G takes ample of benefits while working at international level. On the
other hand, Kuwait is also using innovative strategies and technology to attract more companies
for entering into the market. Certain incentives are also rendered by the government for
establishing industries in government suggested fields like import free duties, tax holidays, ease
of financing and security of investment etc. Therefore, the sale of Ariel products can be
increased in Kuwait market by using advanced technology (Adamkasi, 2015).
Environmental factors: UK is reducing negative impact of environmental factors to increase
and enhance the sale of the products. Although, UK sometimes faces challenging weather
conditions and climate change issue but the government is making unique policies and strategies
to overcome the environmental issues (Thompson, 2017). On the other hand, Kuwait is facing
various environment issues such as air pollution, weather, climate change and water pollution
issues. P&G needs to focus on the environment issues to launch Ariel product in such country.
Legal factors: The employment act 1996, minimum wage, sick pay and maternity and paternity
leave are legally protected in UK (David, 2018). It helps the company to maximize market share
and profitability in the global market whereas in Kuwait, there are no taxes on wages and salary.
However, other acts and rules have to be strictly abided. P&G can attract and retain majority of
customers by offering Ariel product in this market.
Industry analysis in the two countries
Key Industrial Factors (Competitive analysis and buyer behavior)
The micro environment analysis for P&G has been discussed below.
Consumers: The performance in the consumer goods sector is highly dependent upon the
behavior and the lifestyle of the consumers. Among 67 percent of the population is young in the
Middle East region and inclined towards hygiene (Oxford Business Group, 2018). Therefore, the
product Ariel is a good pick to expand beyond the existing boundaries.
Suppliers: There is quite low switching cost for the suppliers both globally and locally and
therefore it is a key industrial factor (Fleisher and Bensoussan, 2015).
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International marketing strategy
Media: Positive media capturing about the events like revamping the old products; focus on
health and wellness, crowd sourcing and partnerships with the consumers, and more, are some of
the news through which the entity engages with media (Dixon et al, 2013).
Competitors: The entity has global competitors like Unilever, Amazon and the local players.
Thus, theexpansion in form of the partnerships and merger activities with the local producers is
the key to grow and get par the competition. The most recent acquisition of the entity is of the
First Aid Beauty products (Robin, 2018).
Employees: Just like the suppliers, the employees have also low switch cost and high turnover
because of the number of opportunities. There is a recent restructuring in the organisation, which
is aimed at prompt response to the industry and less bureaucratic burdens (Monk, 2018).
Marketing strategy analysis: STP
Critical evaluation of brand, resources and capabilities
The resources and the capabilities of the company include dedicated employees (around 95000 in
2017), efficient financial resources, and the umbrella of leading brands. In addition, the entity
has wide presence in UK. Thus, the introduction or growth of the products like Ariel is relatively
easy in terms of the economies of scale and brandname. The entity has strong share in terms of
the products like diapers and the shampoo, however, the new market entrants and the global
competitors in the consumer goods sector is posing a tough competition (Coleman Lochner,
2018). In terms of the Kuwait set in the Middle East region, in order to achieve the sustainable
growth rate for the company P&G, the entity must improvise the return policies to increase
consumer confidence. In addition, retail infrastructure and e-commerce facilities must be
improved.
Segmentation, targeting and positioning
Segmentation strategy is essential to divide the entire market into the different units on the basis
of geographic, demographic, psychographic and behavioral basis. By using this strategy, the
company is able to identify and analyze the needs, choices and preferences of the customers.
Along with this, it uses targeting strategy to penetrate the entire target audience (Bailey, 2014).
P&G targets the every households especially the upper and middle class and women who prefer
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to buy Ariel products to a large extent. In addition, the firm uses value based and product based
positioning strategy to create the right and unique set of imagery stimulus in the minds of the
customers (Mbaskool, 2018).
Marketing strategy analysis: Promotional activities
Marketing mix
The marketing mix for P&G has been discussed below.
Product: P&G is one of the growing and leading corporations across the world. It is a global
leader rendering various beauty products, personal care, grooming and healthcare products. In
home market UK, the company is providing various innovative products. Now the company is
making planning to start launch Ariel product in Kuwait market (Mbsskool, 2018).
Price: P&G follows different pricing approach for multiple brands under it. The price of P&G
products mainly depend on the quality and quantity of the products and its brand value. In
domestic market, the company uses three types of pricing, premium pricing and penetrating
pricing strategy. If the company initiates its business activities in Kuwait then it needs to lower
pricing strategy to increase and enhance the sale of Ariel product in such market. By using this
strategy, the company can attract lower and middle class people in Kuwait (Mbsskool,2018).
Place: P&G has a significant and effective distribution system and therefore is able to reach a
larger consumer requirements and needs. It sells its products through retailer outlets, stores
chemist shops and super markets. It uses unique and effective place strategy in home country to
improve the productivity and efficiency. On the other hand, P&G needs to deals with authorized
dealers that cater to the requirements and need of these business and offers them Ariel product in
a large quantity. The products can be sold through company’s website but this service is only
available in few countries (Schlegelmilch, 2016).
Promotions: It is studied that P&G promotes its products and brands through various sources
like digital marketing, direct marketing, advertising, personal selling and public relations. Online
channels are also used by P&G in home country while functioning. The company needs to use
celebrity endorsements for advertisements in the international market for promoting the Ariel
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products. Direct marketing, TV and social media channels can also be used to launch new
product in the new market (Mbsskool, 2018).
Process: It has been investigated that P&G uses innovative and unique process, strategies and
policies in home country as well as international market. It will focus on the leadership style and
management to compete with rivals in the international market.
Physical evidence: Physical evidence is collected by the firm while selling the Ariel product in
the home country. Some specific policies related physical evidence need to be made by P&G to
overcome the competitors in Kuwait market (Baker, 2014).
People: The employees are considered as lifeblood for any company. Therefore, the organization
focuses on the management team to conduct business activities at international level. By
focusing on the leaders and employees, P&G could able to beat the competitors in the new
country Kuwait (Mbsskool, 2018).
For customer acquisition and retention, the company uses innovation strategies in the
international market. Some of the strategies are discussed below.
 Inspire employees with setting mission and vision
 Empower and attract customers with convenience
 Leverage personalization
 Use referral and gamification programs
 Educate and aware the customers
 Apologize for any misconduct and misbehavior
Conclusion and recommendations
It is concluded from the above mentioned discussion that P&G is one of the biggest brands in
UK that offers consumer products and services to the customers. The paper analyzes that pestle
analysis, marketing strategies, resources and capabilities play a major role in expanding and
exploring the business activities in the international market. By focusing on these factors, the
firm can further achieve desired targets and goals at minimum cost. Along with this, marketing
mix strategies are used by the firm to grow and flourish the business internationally. It is
recommended that P&G should focus on the market development and product development
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International marketing strategy
strategy to differentiate its products from the competitors. Moreover, Market penetration strategy
shall be used by P&G to grab the entire market internationally.
References
Adamkasi.2015. PESTLE analysis of Kuwait [Online]. Available from
https://freepestelanalysis.com/pestel-analysis-of-kuwait/ [Accessed as on 18th November 2018].
Bailey, C., 2014. Competing in low-income markets using dynamic and adaptive market sensing
capabilities (Doctoral dissertation, University of Pretoria).
Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Coleman Lochner, L. (2018) P&G Languishes as New Rivals Amazon, Kroger Hurt Momentum.
[online] Available from: https://www.bloomberg.com/news/articles/2018-07-31/p-g-falters-as-
relentless-competition-hurts-its-sales-momentum [Accessed on: 18/11/2018].
David.Jo.2018. PESTLE analysis of the UK [Online]. Available from
https://www.howandwhat.net/pestel-analysis-uk/ [Accessed as on 18th November 2018].
Dixon, J., Scura, L., Carpenter, R. and Sherman, P., 2013. Economic analysis of environmental
impacts. Routledge.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective
application of new and classic methods. FT Press.
Mbaskool.2018. Procter and Gamble SWOT analysis, competitors & USP [Online]. Available
from https://www.mbaskool.com/brandguide/fmcg/1517-procter-and-gamble.html [Accessed as
on 18th November 2018].
Mbsskool.2018. Procter and Gamble (P&G ) Marketing mix (4Ps) strategy [Online]. Available
from https://www.mbaskool.com/marketing-mix/products/17250-procter-and-gamble-pag.html
[Accessed as on 18th November 2018].
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Monk, D. (2018) Procter & Gamble Co. shakes up management structure, CEO promises 'a
more engaged, agile' organization. [online] Available
from:https://www.wcpo.com/news/insider/procter-gamble-co-shakes-up-management-
structure[Accessed on: 18/11/2018].
Oxford Business Group. (2018) Mohamed Samir, President for India, Middle East & Africa
(IMEA), P&G: On regional factors contributing to consumer goods growth. [online] Available
from:https://oxfordbusinessgroup.com/views/mohamed-samir-president-india-middle-east-
africa-imea-pg[Accessed on: 18/11/2018].
Pginvestor.2018. Company strategy [Online]. Available from
http://www.pginvestor.com/Company-Strategy/Index?KeyGenPage=208821 [Accessed as on
18th November 2018].
Radojevic, M. and Bashkin, V., 2007. Practical environmental analysis. Royal society of
chemistry.
Robin, M. (2018) P&G Reportedly Bought First Aid Beauty for $250 Million. [online] Available
from:https://www.allure.com/story/procter-gamble-buys-first-aid-beauty[Accessed on:
18/11/2018].
Schlegelmilch, B.B., 2016. Global Marketing Strategy. Switzerland.
Thompson.A.2017. Procter & Gamble PESTLE/PESTLE analysis & Recommendations
[Online]. Available from http://panmore.com/procter-gamble-pestel-pestle-analysis-
recommendations [Accessed as on 18th November 2018].
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Appendices
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