Management

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Management
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Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................3
Section 1: Situational analysis.........................................................................................................3
Section 3: Strategy...........................................................................................................................4
Section 4: Tactics.............................................................................................................................5
Section 5: Action..............................................................................................................................5
Responsibilities/departments.......................................................................................................5
Internal staff v agencies...............................................................................................................5
Plan of action:..............................................................................................................................6
Section 6: Control............................................................................................................................6
KPI’s/Balanced Scorecard –SMART..........................................................................................6
Conclusion.......................................................................................................................................6
REFERENCES................................................................................................................................8
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Executive Summary
In a competitive world, every business organization wants to expand their operation in
over the world with the aim of establishing its positive and famous brand image. For better
understanding, this report is also focus on developing as well as producing a new market plan to
introduce their new products in market so that large number of customers get easily attracted and
increase its profitability as well. This report is going to discuss about P&G (Procter & Gamble),
is a famous American multinational consumer good corporation that focus on satisfying
customers demand by providing them better quality of services. Company prepares a marketing
plan that is based on introducing skin moisturizer cream and gel for18-45 age group of women.
Mainly, this plan is based on the concept and various strategies that directly contributes in
attaining success in market place and at the same time also established its competitive image in
over the world.
Introduction
Marketing plan introduces as an operational document that outlines a promotional and
advertising strategy that a company will develop to reach its target market. For this, SOSTAC
model will be used that constrains a general marketing strategy (SOSTAC marketing planning
model, 2020). This model has six sections including situation, objectives, strategy, tactics and
control. All these sections include in this project for completing marketing plan of company in
systematic manner. For this project, P&G is a given multinational consumer goods cooperation.
It was founded in 1837 by William Procter and James Gamble. Company specialise in selling of
wide range of products including personal care products, personal healthcare products, beauty
care products and many others. Along with this, company decide to develop new product which
is “Skin Moistening cream and gel”. Main purpose of development this product is to increase
their sales and maintain good brand reputation in marketplace.
Section 1: Situational analysis
Company manufacture goods so that it could be sold to customers directly this can further be
classified into three categories i.e. personal, corporate use and recreational. The Procter &
Gamble Company (P&G), is an American multinational company operates its business in all
around the world. Mainly P&G has segmented its business into five categories i.e. first: Fabric
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and home care, second: baby, Feminine and Family care, third: beauty, fourth: grooming and
lastly, health care (Thomas and Obal, 2018).
In relation to this assignment, company is wants to deals in skin moisturizing cream and gel
and it comes under the segment of The Beauty Care because in the year 2019, percentage of net
sales was around 19% and from this earning percentage was 22% which was great. Company’s
market like is positive because several billion-dollar brands, megabrands along with 180 brand
portfolios are included in this. In United Kingdom itself value share of new product variants
were increased by more than 7% which was in terms of growth as faster than usual.
As company provides its products for customers who are from all over the world whether
males, females, children or old aged people. For their new manufacturing products company has
focused female customers aged between 18 – 45. So, male customers will be excluded from this
and this will be the reason why they will not buy this product. In context with skin moisturizing
cream and gel, female customers want that company should use natural ingredients which are
safe for skins. Along with this, customer believe that product price must be reasonable so that
every individual can buy. In order to reach to its customers P&G is using all its services whether
social media or online handles, retail markets¸ company’s outlets etc.,
In the global market P&G’s major competitors are Unilever, Colgate-Palmolive etc., and
because of this in Europe company’s revenue was around 23%. Therefore, to be in the
competition P&G are introducing new products according to the need and wants of customers.
Markets with around 300 brands in almost 180 countries is their key strengths and competences.
It is enabling them in holding a better leading position.
Section 2: Objectives
This is the section that includes the information about the main mission and objectives of an
organisation that they want to achieve from the performance of business functions in market. In
the current project, P&G an international organisation wants to produce the new product known
as skin moisturising cream and gel for the women belongs from the age group of 18 to 45. The
contribution of this part is high towards performance all different functions within an
organisation related to new project (Aikhuele and Turan, 2018). This will enable in development
of effective strategies, tactics and actions along with controlling upon performance of all these
attributes. This further aid the management in allocation of duties to the different teams
according to the nature of work they performing within different departments. This is considered
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as the core aspect from where nature of success is determined in relation to the particular project.
The goal or mission and objectives of P&G in relation to the new project of product development
are presented below:
Mission: The main mission of P&G is providence of solution centred signage product to
nurture and maintain lifetime value synergies with women consumers present in worldwide
market.
Objectives
 To improve market share by 20% within 1 year of time period.
 To increase sales revenue by 30% within 2 years of time period.
 To improve consumer retention rate by 40% within 1 year of time period.
 To improve the number of customer solution centres by 20% within 6 months of
time period.
Section 3: Strategy
This section covers the information regarding the aspects that help to ascertain that how an
organisation is going to accomplish desired targets within stipulated period of time. This includes
the implementation of effective strategies and tactics upon organisational project for attaining
possible results.
STP: This is the effective strategy used by the organisation for the purpose of selecting right
target consumers, adopting accurate attraction techniques and improving organisational image.
This is known segmentation, targeting and positioning (Bouncken and et. al., 2018). All the three
in relation to new product of P&G is presented below with proper implementation;
Segmentation: This is the strategy to divide the market on the basis of different factors.
This is basically used by the organisation to select consumers for selling of their produced
products. This is done on the basis of identifying the similarities between the product and
consumer features. Normally, there are four different types of segmentation. Here, the one used
by P&G for new product is demographic where women are targeted whom aged between 18 to
45.
Targeting: This includes selection of the best strategy for attraction of consumers. Here,
P&G decides about usage of digital marketing and discount benefits to online consumers
(Thomas and Obal, 2018).
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Positioning: This is about organisation positioning to create distinct image. Here, they
present the product as separate brand where it has own existence associated with P&G.
Tactics: The tactic going to be use will be digital marketing through use of Omni channels.
Also, discount and coups are provided for attraction and retention of online customers. This will
help to create demand at global platform.
Section 4: Tactics
It is important for business organization to implement an effective tactics at the time of
producing an innovative product in market place (Cheng and Krumwiede, 2018). As it is
beneficial for company in attaining competitive advantage for its competitors by inviting more
and more consumers over its new products. In context of this, P&G (Procter & Gamble)
introduce a skin moisturizer cream and gel that is differentiate in nature as it offers at premium to
selected target market. For attaining success, company use different strategies like Marketing
Mix, competitive strategy and digital strategy with the hope of making its products more popular
at market place.
Marketing Mix:
It is referring to the model that includes set of actions or tactics that used by company to
promote their new product in market place. With the help of this strategy company can easily
attain all the set market objectives in a stipulated time frame. In context of this, P&G (Procter &
Gamble) introduce a marketing plan that focus in promoting their new product i.e. skin
moisturizer cream and gel. The main purpose of this plan is to enhance their competitive image.
For promoting the new product P&G use marketing mix that includes different tools are as
follows:
Product: P&G is famous for consumer goods in the world in which company focus on
serving best quality products to its customers in order to keep them satisfied. For attaining the
same, firm introduce skin moisturizer cream and gel for its women customers. This can be
effective for increasing their profitability level at market place.
Price: In market place, P&G set their pricing strategy on the basis of condition of the
consumers good market so that they can easily maximising their profitability level. Mainly, it
includes various strategies in context of pricing such as market oriented, product bundle and
premium pricing strategy. It may support them in developing its competitive image by generating
larger profits.
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Place: Company offer its products in around the world so that each and every customer can
easily buy its services as per their requirements. In this context, P&G includes some main place
to distributes its new product such as retailers, Authorized distributors and various P&G shops in
over the world. Apart from this, company also offer their products through online platform so
that they can increase their strong customers base.
Promotion: It is important for P&G to promote their new products in market place so that large
number of customers get easily attracted (Cooper, 2018). For promoting its skin moisturizer
cream and gel, company use various promotional tactics such as advertising, direct marketing,
sales promotion, personal selling and many more. Along with this, firm also use online platform
and another way like television, print media, radio, online media to promote its products in
market place.
Competitive strategy:
It is crucial for P&G (Procter & Gamble) to attain competitive advantage at market place
from its competitors by satisfying customers needs. For this company is responsible for
introducing different and unique products so that they compete their competitors to attain
competitive image in market place. In this regards, P&G offer skin moisturizer cream and gel
which is quite innovative and different from others. This will assist in inviting more and more
customers towards its products and increase its market share.
Digital strategy:
It is also considered as an important strategy as it helps in communicating as well as
interacting large number of customers at a time. In this P&G (Procter & Gamble) also use online
or digital marketing wherein they promote their products through online platform such as
Facebook, Twitter, YouTube, Linked In and many more. All these are beneficial in providing
necessary information about the products and services. When company offer skin moisturizer
cream and gel to women customers, they also give them free sample and coupons for their online
customers. This can be beneficial in attaining consumers trust towards the company and its new
products as well. With the help of this, firm can easily improve their customers base and at the
same time also established its competitive image at market place (Nafisi and et. al., 2019). Apart
from this, P&G is also responsible for analysing taste and requirements of its female customers
towards the skin moisturizer cream and gel so that they can easily provide them same and attain
their higher satisfaction as well.
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Section 5: Action
Responsibilities/departments
In order to develop “Skin Moistening cream and gel” product in marketplace, there is
requirement for different departments. In P&G, there are different departments that play an
important role in development new product in marketplace. Some departments and their
responsibilities will be explained as below:
 Production department: Main responsibility of this department in development of Skin
Moistening cream and gel is designing and testing of product type and process.
 Finance department: This department plays a significant role in arranging accurate
amount of fund for developing new product in marketplace (Cooper, 2019) (Darawong,
2018).
 Research and development department: This department of P&G have biggest role in
identifying needs and wants of customers and market conditions towards new product.
 Marketing department: After researching customer’s needs, P&G become able to market
their new product successfully.
Internal staff v agencies
Basis of differences Internal Staff Agencies
Role Main role of internal staff to
help an organisation in
designing and developing of
Skin Moistening cream and
gel within a limited time
period.
Main role of agencies in new
product development is they
help P&G by promoting and
advertising their product in
marketplace.
Objective Main objective of internal
staff is to increase sales of
company by launching Skin
Moistening cream and gel.
Main aim of agencies is to
attract large number of
customers towards Skin
Moistening cream and gel.
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Plan of action:
This is an important part for development Skin Moistening cream and gel in marketplace.
Plan of action is depend of roles and responsibilities of different department and time duration
for implementing product in marketplace. There are different activities of developing new
product and in this role of department with accurate time will be shown as below:
New product development Responsibilities of department Time
duration
Idea generation Research and development department 10 Days
Idea screening Research and development department 5 Days
Concept testing Production department 10 Days
Business analysis Marketing department 7 Days
Product development Production department 3 Days
Test marketing Finance and marketing department 2 Days
Commercialisation Marketing department 2 Days
Review of market performance Sales department 4 Days
Section 6: Control
KPI’s/Balanced Scorecard –SMART
KPI’s: Product Development KPIs support P&G in assessing its ability to develop Skin
Moistening cream and gel. These KPIs determine key product planning areas such as product
ideation and innovation, engineering and design, research and development and quality control
(Lee and Ram, 2018). With the help of these planning company can easily get its SMART
objectives that are mentions in section 2.
Conclusion
From the above mentioned marketing plan, it has been concluded that SOSTAC model
helped an organisation in development of new product in marketplace. With the helped of six
sections of SOSTAC model, company easily implement its objectives, strategies, action and also
analysed their capabilities and skills. 7P’S of marketing mix supported an organisation in
development of its new product. As it helped them by providing information about the
promotional channels, place, people etc.
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REFERENCES
Books and Journals
Aikhuele, D. and Turan, F., 2018. A conceptual model for the implementation of lean product
development. International Journal of Service Science, Management, Engineering,
and Technology (IJSSMET). 9(1). pp.1-9.
Bouncken, R. B., Fredrich, V., Ritala, P. and Kraus, S., 2018. Coopetition in new product
development alliances: advantages and tensions for incremental and radical
innovation. British Journal of Management. 29(3). pp.391-410.
Cheng, C. C. and Krumwiede, D., 2018. Enhancing the performance of supplier involvement in
new product development: the enabling roles of social media and firm
capabilities. Supply Chain Management: An International Journal.
Cooper, R. G., 2018. Best practices and success drivers in new product development.
In Handbook of research on new product development. Edward Elgar Publishing.
Cooper, R. G., 2019. The drivers of success in new-product development. Industrial Marketing
Management. 76. pp.36-47.
Darawong, C., 2018. Dynamic capabilities of new product development teams in performing
radical innovation projects. International Journal of Innovation Science.
Lee, N. S. and Ram, J., 2018. New product development processes and knowledge transfer in
automotive projects: An empirical study. Knowledge and Process Management..5(4),
pp.279-291.
Nafisi, M., Wiktorsson, M., Rösiö, C. and Granlund, A., 2019. Manufacturing engineering
requirements in the early stages of new product development—A case study in two
assembly plants. In Advanced Applications in Manufacturing Enginering (pp. 141-
167). Woodhead Publishing.
Thomas, E. and Obal, M., 2018. Type of knowledge sharing and its impact on collaborative new
product development. International Journal of Innovation Management. 22(02).
p.1850020.
Online
SOSTAC marketing planning model. 2020. [Online]. Available through:<
https://www.smartinsights.com/digital-marketing-strategy/sostac-model/>
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