Market Structure of Procter and Gamble

Management
Economics-
Assessment 2

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Description of company and its products...............................................................................1
Analysis of market in which Procter and Gamble operate.....................................................2
Different market structures in which company operated along with its characteristics.........4
Nature of the industry in which company operates................................................................6
Conclusion.......................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Economic management refers a process of management of resources, income and
expenditures of community and business enterprises (Burkaltseva, Dudin and Reutov, 2018).
Current study will discuss the type of market structure in which Procter and Gamble operate. It is
an American multinational consumer goods, founded in the year of 1837 by William Procter. It
offers wide variety of products and services such as: personal care, hygiene products and baby
care products. This current study is about to discuss effectiveness and reasons of analysing
company to the great extent in order to make them able to identify their current situation and
position as where they stand in the market. It will also show different types of market structure in
which companies operate such as monopoly, oligopoly and others. The type of product decides
the type of market structure as whether they are unique or not. Lastly, it will show effectiveness
of operating in different market structures as well as government interventions.
MAIN BODY
Description of company and its products
In the context of Procter and Gamble it can be said that it is one of the well-known,
effective American consumer goods company with headquarter in US.
Products and services: It provides wide range of personal care, consumer health and hygiene
products. For knowing more about its effectiveness it is important to analyse its one of products
ranges and making it able to know its actual position in the market as it can allow it to take
competitive advantages. Its different products include: health care, beauty grooming, baby wipes
and other products. It is found that Pamper is one of the biggest brands of Procter and Gamble
and in this it has launched new baby diaper which has around 360 fit a stretch waistband. It is
comfy and make baby move easily without making them feel irritation and according to the P&G
it feels like they are wearing a yoga pant. Before launching it, they tested on some toddlers in
order to see if they can move, stretch, climb by wearing it or not. It is also found that around 25
million babies in 100 countries wear pampers which means it is being liked by them (Allen,
Procter and Gamble Co, 2019).
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History: Founder, James Gamble of this company settled in Cincinnati and after his
marriage his father in law helped him out and made him business partner Hence, Procter and
Gamble created in the year of 1837. In the year of 1880, it started marketing a new product an
inexpensive soap which floated in water. By doing so, it succeeds and started marketing new
categories of products. In 1930, it expanded its business internationally with acquisition of
Thomas hedley.
Analysis of market in which Procter and Gamble operate
It is found that P&G operates and provides its products and services worldwide excluding
North Korea and Cuba. It operates in the fastest growing economies in the world, Asia which has
more than half of the world’s population. One of the main reasons of success of this company
and development of business in such countries is its marketing strategy. It makes use of market
penetration strategy in which it focuses on selling its existing range of products in existing
markets by using unique features and using attractive promotional strategies in order to gain
market share and making them profitable.
Different companies operate in different types of market structure and it depends upon
their nature of products as whether they have monopoly, oligopoly and others. The type of
market structure states effectiveness of products and company of taking competitive advantages.
For example:
Monopoly: It is the type of market structure in which there is only a single seller of a unique
product. There is no competition in such market because seller in this market for their unique
product is called a solo seller. It is highly effective marketing structure in which customers do
not have option of going and switching shop and all profit is being captured by the solo seller
(Manna, 2017).
Oligopoly: It refers a structure where markets are dominated by small number of firms. Or it can
be said that this type of market is being shared by small as well as many producers and sellers so,
there is a state of limited competition and few firms in this type of market have high chances of
taking competitive advantages and attracting customers. But prices are being kept competitive
(Geras’kin and Chkhartishvili, 2017).
In the context of P&G it can be said that P&G operates in Oligopoly market structure
because there are few firms who sell similar products and services. But there are some products
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